SOA – DOA? the

Enterprise Perspective

Gary GumbertCIO

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Fast, Good or Cheap. Pick two.

Holy Triangle When creating a project, clients

must choose only two out of the three options. They can't have it all. It's a reality of life, clients must deal

with it.

Good + Fast = Expensive Choose good and fast and we will

postpone every other job, cancel all appointments and stay up 25-hours a

day just to get your job done. But, don't expect it to be cheap.

Good + Cheap = Slow Choose good and cheap and we will do a great job for a discounted price,

but be patient until we have a free moment from paying clients.

Fast + Cheap = Inferior Choose fast and cheap and expect an

inferior job delivered on time. You truly get what you pay for, and in our

opinion this is the least favorable choice of the three

SOA – Pick 3?

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Gartner’s view of the Hype Cycle

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Gumbert’s view of the Hype Cycle

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SWOT Analysis

Strengths

• IT vision and Roadmap• SOA Architecture• Business Architecture and Requirements (IE)

Weakness

• IT Costs have continued to escalate• Access to skilled resources – Vendors and Internal• Enterpriser adoption of IT vision• Overall Performance Management (lack of metrics, visibility and decision support) across Business, IT, Operations and Vendors Management

Opportunities

• SOA Adoption across the Enterprise• Executive Decision Management• Establish performance management processes across business, IT and vendors• Shorten management cycles and increase decision making accuracy

Threats

• Legislative and Policy changes• Lack of budgets and resources• Federal Priorities• Funding streams and cycles

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Transformation Status

Integrated Eligibility and BPO

Enterprise Data Warehouse

and Business Performance Management

ERP Upgrade(Finance and

HR)

IT Outsourcing(State Wide Data Center)

Enterprise Email (Outsourcing?)

Enterprise Identity

ManagementMMIS

Business Performance Management Framework

Business Architecture

Blueprint

SOA

Project Management

Business/IT Governance Model

Medium Maturity Level - Program Specific Plan, Good Project Management, Standard Technology Implemented, Performance Measures Defined (Business, IT and Ops)

Low Maturity Level – Not Planned, Little Awareness, No Management Processes, Program Specific, Siloed Technology Effort , Little or No Performance Measurements

High Maturity Level - Part of Enterprise Plan, Technology standardized to Enterprise EA /Business Architecture blueprint, Integrated Performance Measures, Comprehensive Governance (Transition And Transformation), Vendor Management

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IE SOA and Business Performance Maturity

SOA Capability v/s

Level 1 - Tactical and Basic SOA objectives, framework

defined

Level 2 – Clear Business and IT objectives and

capabilities for SOA defined – Basic

measures to track SOA performance in

place

Level 3 – Established

capabilities based on SOA principles across business

technology, operations and IT

Level 4 – Performance

Measures defined to track SOA value across

business and IT operations

Level 5 – An Integrated Business and IT Management Process to enable accelerated SOA

adoption and hence business value

creation

IE Business Performance Framework

IE Business Architecture Blueprint (Multi-Channel)

IE Business Operations (Multi-Channel)

Application/ Functionality and Business Process

Servicification

Infrastructure

Data Center Operations Management

Business-IT Governance

Conclusion: IE SOA has successfully enabled IE Multi-Channel Business Operations Model by modernizing TIERS Platform andoperations

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Risks

• Business Value v/s IT Costs – IT costs have continued to escalate without equivalent business value delivered – Software, Hardware and Staff

• Current IT Operations model – Inefficient and takes a long time to deliver business transformations and value

• Software, Hardware and IT Vendor Management: Never seem to get out of the licensing trap put forth by the IT vendors

• Continued struggle with business-IT alignment: What is the right governance model – We don’t have the right experts in enough

quantity

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Response

CIO Strategies

OrganizationalRe-Alignment

Business PerformanceManagement

Cost Management

• Based on maturity level and initiative• Workforce changes and skills access• New Business Changes• Manage Changes in Outsourced Contractual relationships with vendors

Business and ITGovernance

• Institute performance mgt methodologies• Establish an integrated metrics framework• Establish decision management across initiatives• Establish strategic performance goals and metrics

• Continued build out of SOA strategy for reuse and standardization – Enterprise focus• Explore Saas as a IT delivery model to reduce costs•Continue to consolidate around data center outsourcing – Platform as a Services

• Establish governance structures and policies across the enterprise• Enable business performance outcome and IT governance interactions• Setup governance standards across assets, IT operations, vendors in context of business performance

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CIO Strategy 1: Organizational Re-Alignment

HHS CIO Structure – 2004 -2007 HHS CIO Structure – 2008 -2010

CIO Organization Redesign: Principles

• Embrace SOA knowledge across the Enterprise. Each Deputy or Director owns a strategic Enterprise application.

• Institute operations best practices and methodologies from key projects to rest of the Enterprise

• Organize around strategic Enterprise projects (EDW, Email, IDM and Telecom)

• Enforce performance management and governance across the organization – Specifically vendor management

Deputy CIO Deputy CIODirector EA

CIOCIO

Deputy CIO

EA IM&O EASM ESS ITMS

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CIO Strategy 2: Business Performance Management

Transactional Management Performance Management

Application 1 Application 2 Application 3

SOA

Business Process Management – Work Flow

Business Managers focusedon process changes

IT Managers focusedon enabling new process changes

TransactionalData Store

TransactionalData Store

TransactionalData Store

Enterprise Data Warehouse

Program Data Marts

Performance Management Applications

Business and IT Executives andMiddle Management – PerformanceVisibility and Decision Management

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CIO Strategy 3: Cost Management

Application 1 Application 2 Application 3

SOA

Business Process Management – Work Flow

HHS Enterprise ITContinue Data Center Outsourcing

• Continue to Outsource Data Center Operations

• Enable a platform as a service model

• Enforce SLA’s to mange vendor performance and cost

CIO and Staff – Cost ManagementStrategies

Continue SOA

• Standardize application portfolio based on SOA

• Improve SOA governance for reusability and lower AD costs

Expore Saas forSelect applications

• Enable Saas strategies to consolidate and manage application portfolio

• Establish Saas enablement and management processes

• Establish a Saas ROI Model through a pilot

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CIO Strategy 4: Business and IT Governance Solution

HHS Business and IT Governance Solution

Enterprise BusinessServices Model

Enterprise IntegratedBusiness Performance , Operations and Project Performance Metrics Knowledgebase

Business and IT Governance Apps

ExecutiveManagement

CIO BusinessManagers

VendorManagement

ODS

EnterpriseData Warehouse(PerformanceData Marts)

IT Systems andApplicationsMonitoringData Stores

IT OperationsData Stores(Remedy et al)

IT GovernanceData Stores(Issue, Risk andProject Mgt)

Executive Decision Support Apps

OutsourcedVendor Systems

• Business Performance Visibility• Transition and Transformation Performance Visibility and Impact Analysis• Executive Decision Support

Web Portal

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Priorities: Data Warehouse, MMIS (MITA) and Eligibility

Current MMIS Solution and MITACurrent IE Solution

Business Architecture

SOA Based Technical Architecture

IE Business Services and ProcessesCatalog

HHS Texas Business Architecture

HHS Texas TechnicalArchitecture

HHS Application and IT Asset/Services Portfolio

HHS Transition and Transformation Planning

HHS Enterprise Business and IT Assets

HHS Enterprise Data Warehouse, BI and Performance Management

Enterprise Standard Information/Data andServices Model

Business Architecture

SOA Based Technical Architecture

MMIS Business Services and Process Catalog

EnterpriseData Marts

Enterprise IntegratedBusiness Performance Metrics Knowledgebase

IE MMIS EBT Other

Program Specific Performance Mgt Apps

ExecutiveManagement

Power Users

MiddleManagers

Front LineStaff

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Take Away

With SOA you should get 3

ELSE