technical architecture - platforms and technology selections in organisations - jpoutanen - jyu...

© 2009 IBM Corporation

Technology Architecture, Platforms andNew Technology Selections in Organisations

Jouko Poutanen, 23.2.2015


Content

Opening

Context–Technology’s Role in a Company

Technology Architecture–Positioning and Role Based on Enterprise Architecture Frameworks–trend : Software Defined Environment, SDE

Technology Platforms–Trend : XaaS, Buy vs. Build, Hybrid Cloud

New Technology Selections in Organisations–Selection criteria and experiences from industry–An Operations Strategy Perspective


TECHNOLOGY’S ROLE IN A COMPANY

© 2009 IBM Corporation4

Resources, Capabilities and Firm Performance

Competitive advantage

StrategyIndustry key

success factors

Organisationalcapabilities

Resources

Tangible• Financial (cash,

securities,..)• Physical (plant,

equipment,..

Human- Skills/know-how- Capacity for

communicationand collaboration

- Motivation

‘individual resources do not confer competitive advantage, they must work together to create organisational capabilities’

Intangible- Technology (patents,

copyrights, ..)- Reputation (brands,

relationships)- Culture

Source:


Interviews of 4,183 top executives covering more than 20 industries in 70 countriesRespondents represent a wide range of public and private sector organizations


CxOs World View

Most significant external pressures

CEO and Technology’s Importance

CEOs think technology will be the most important external force shaping the future of their enterprises


CIOs Perspective

Aspirations of a role change

Focus on technologiesShifting goals


Information Technology is Paramount for Leading Companies to Create Business Value

Factors impacting organizations:

Source: IBM 2013 Global C-suite Study

Impacts on Business

Increasing interactions with customer

Opportunities for greater productivity

Move to adjacent or new markets

Technology Impacts on Business Increasing interactions with customer

Opportunities for greater productivity

Move to adjacent or new markets

Massive amounts of unstructured data

Rapid product lifecycles

Changing relationships with partners

Web apps

Social data

Location based apps

Cloud apps

Mobile apps

Internet of Things

Source: “The Software Edge: How effective software development and delivery drives competitive advantage,” IBM Institute of

Business Value, March 2013


TECHNOLOGY ARCHITECTURE


Zachman Enterprise Architecture Framework

e.g. DATA

ENTERPRISE ARCHITECTURE - A FRAMEWORK

Builder

SCOPE(CONTEXTUAL)

MODEL(CONCEPTUAL)

ENTERPRISE

Designer

SYSTEM

MODEL(LOGICAL)

TECHNOLOGY

MODEL(PHYSICAL)

DETAILEDREPRESEN- TATIONS(OUT-OF- CONTEXT)

Sub-Contractor

FUNCTIONING

ENTERPRISE

DATA FUNCTION NETWORK

e.g. Data Definition

Ent = FieldReln = Address

e.g. Physical Data Model

Ent = Segment/Table/etc.

Reln = Pointer/Key/etc.

e.g. Logical Data Model

Ent = Data Entity

Reln = Data Relationship

e.g. Semantic Model

Ent = Business Entity

Reln = Business Relationship

List of Things Important

to the Business

ENTITY = Class ofBusiness Thing

List of Processes the

Business Performs

Function = Class ofBusiness Process

e.g. Application Architecture

I/O = User ViewsProc .= Application Function

e.g. System Design

I/O = Data Elements/Sets

Proc.= Computer Function

e.g. Program

I/O = Control BlockProc.= Language Stmt

e.g. FUNCTION

e.g. Business Process Model

Proc. = Business Process

I/O = Business Resources

List of Locations in which the Business Operates

Node = Major BusinessLocation

e.g. Business Logistics System

Node = Business Location

Link = Business Linkage

e.g. Distributed System

Node = I/S Function(Processor, Storage, etc)Link = Line Characteristics

e.g. Technology Architecture

Node = Hardware/SystemSoftware

Link = Line Specifications

e.g. Network Architecture

Node = AddressesLink = Protocols

e.g. NETWORK

Architecture

Planner

Owner

Builder

ENTERPRISEMODEL

(CONCEPTUAL)

Designer

SYSTEMMODEL

(LOGICAL)

TECHNOLOGYMODEL

(PHYSICAL)

DETAILEDREPRESEN-

TATIONS (OUT-OF

CONTEXT)

Sub-Contractor

FUNCTIONING

MOTIVATIONTIMEPEOPLE

e.g. Rule Specification

End = Sub-condition

Means = Step

e.g. Rule Design

End = Condition

Means = Action

e.g., Business Rule Model

End = Structural AssertionMeans =Action Assertion

End = Business Objective

Means = Business Strategy

List of Business Goals/Strat

Ends/Means=Major Bus. Goal/Critical Success Factor

List of Events Significant

Time = Major Business Event

e.g. Processing Structure

Cycle = Processing CycleTime = System Event

e.g. Control Structure

Cycle = Component Cycle

Time = Execute

e.g. Timing Definition

Cycle = Machine CycleTime = Interrupt

e.g. SCHEDULE

e.g. Master Schedule

Time = Business Event

Cycle = Business Cycle

List of Organizations

People = Major Organizations

e.g. Work Flow Model

People = Organization Unit

Work = Work Product

e.g. Human Interface

People = RoleWork = Deliverable

e.g. Presentation Architecture

People = User

Work = Screen Format

e.g. Security Architecture

People = IdentityWork = Job

e.g. ORGANIZATION

Planner

Owner

to the BusinessImportant to the Business

What How Where Who When Why

John A. Zachman, Zachman International (810) 231-0531

SCOPE(CONTEXTUAL)

Architecture

e.g. STRATEGYENTERPRISE

e.g. Business Plan

TM


IBM’s EA Consulting Method

11


Example

source: Korkeakoulujen KA ohje, ICT-toimintaympäristön kuvaus, esimerkki


Architecture Layers

User interface

Application

Middleware

Servers

Network

Operating

System

© 2009 IBM Corporation1414

Future

Rapidly changing workloads, dynamic patterns

Dynamic automatic composition of heterogeneous system

Autonomic and proactive management

Current

Diverse workload, limited patterns

Homogeneous resource pooling

Expert configuration and mapping of workload

Traditional

Few, stable, and well known workloads

Fixed System hardware, manual scaling

Hardwired workload, minimal configuration

W1 W2 W3 W4

R1 R2 R3

V1 V2 V3 V4 V5 … Vn

V1 V2 V3 V4 V5 V5 ... …. Vn

C

C

Changing Business Requirements’ Impact on Technology Architecture


BEFORE

Software Defined Environment

AFTER

StorageNetwork

Compute Continuous Optimization+

+

+

++

+

++

+

++

+

Application Aware Policy

Compute

Automated IT Delivers Greater Speed, Efficiency and Simplicity

Policy Enforcement

Increasing Automation

Policy

Policy Policy

Policy

• Slow and manual

• Reactive administration

• IT silos and costly specialization

Traditional Infrastructure

• Rapid, repeatable and automated

• Proactive administration

• Fully integrated management

Infrastructure As A Service


Software

Defined

Environment

Workload

Blueprint

• Workload Blueprint describes

software solution components and

infrastructure resources required by

the solution in a industry standard format (Heat Orchestration Template)

• Infrastructure Pattern maps

software pattern to optimal infrastructure

based on business rules (polices)

• Infrastructure hosts multiple workloads

in a shared environment

• Software Defined Environments

automatically orchestrate deployment

and update of workloads

Policies

Policies

Private Clouds Hybrid Public Clouds

Infrastructure

Pattern

Policies

Software Defined Environments are Application Aware, Automating Best Practices via Patterns of Expertise


Software Defined Storage

physical

storage

physical

storagephysical

storagephysical

storage

virtualized storage

host host host


PLATFORMS


The challenge: Innovate while managing rapid change

200 Billion

SmarterPhysical Assets

Physical assets with IT intelligence

1.2 Billion

Boundless Infrastructures

Consumers willhave SmartPhones

67%

UnpredictableData Flows

of IT traffic will be Cloud-based

60,000

Expanding risk & cost

Cyber attacks every day

Cloud computing provides the foundation to build business opportunities


Networking Networking Networking Networking

Storage Storage Storage Storage

Servers Servers Servers Servers

Virtualization Virtualization Virtualization Virtualization

O/S O/S O/S O/S

Middleware Middleware Middleware Middleware

Runtime Runtime Runtime Runtime

Data Data Data Data

Applications Applications Applications Applications

Traditional

On-Premises

Clie

nt

Man

ages

Ve

nd

or M

an

age

s in

Clo

ud

Ve

nd

or M

an

age

s in

Clo

ud

Ve

nd

or M

an

age

s in

Clo

ud

Clie

nt M

an

age

s

Clie

nt M

an

age

s

Customization; higher cost; slower time to value

Standardization; lower cost; faster time to value

SoftLayer Bluemix

Cloud Service Models

Infrastructure as

a ServicePlatform as a

Service

Software as

a Service


IBM Next Generation Cloud Platform

External Ecosystem

MarketplaceApp

API

Services

API

Analytics

API

Commerce

API

Collaboration

API

Location

API

Data

APIAPI

Management PlatformWorkload definition, optimization and orchestration

Software-defined compute Software-defined storageSoftware-defined

networking

Resource abstraction and optimization

Traditional workloads

Services and composition patternsAPI and integration

services

Solutions

DataMobileDevelopment OperationalApplication

servicesSecurity…

Infrastructureas a Service

Platformas a Service

Softwareas a Service

API economy

Cloudoperating

environment

Software-defined

environment


OpenShift

OAuth

OSLCInfrastructure

as a Service

Platformas a Service

Softwareas a Service

API economy

Cloudoperating

environment

Software-defined

environment

TOSCA

Building the Next Generation of Cloud Architecture on Open Technologies


Automation and Analytics

Application AwareApplication Aware

ComputeCompute StorageStorage NetworkNetwork

AnalyticsPatternsDefinition

Resource SmartResource Smart

What the business wants:

•Define business needs

•Identify service opportunities and requirements

•Quickly experiment and test new services

What Software Defined Environments provides:

•Patterns of Expertise to link solution to infrastructure based on business rules

•Automated orchestration of workloads

•Analytics-based optimization of workload to maximize outcomes

Con

tin

uous O

ptim

iza

tio

n

PriorityPolicyService

PriorityPolicyService


A Typical Scenario: Create a Cloud Service to Deploy an Application


NEW TECHNOLOGY SELECTIONS IN ORGANISATIONS

An Operations Strategy Perspective


Operations Strategy

‘Operations’ is the activity of managing the resources and processes that produce and deliver goods and services

Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operation and their contribution to overall strategy, thought the reconciliation of market requirements with operations resources


Operations Strategy

Operations resources

Capacity

Supply networks

Process technology

Development and organisation

Market requirements

Quality

Speed

Dependability

Flexibility

Cost

Top - down

Corporate strategy

Business strategy

Functional strategy

Bottom - up

Emergent sense of what the strategy

should be

Operational experience

OperationsStrategy

Operations strategy must reflect four perspectives – top-down, bottom-up, market requirements, and operations resources.


Tangible and intangible resources

Operations capabilities

Operations processes

Operations strategy

decision areas

Operations strategy is the strategic reconciliation of market requirements with operations resources

Customer needs

Market positioning

Competitors’ Actions

Performance objectives

Understanding resources and processes

Strategic decisionsCapacitySupply networksProcess technologyDevelopment and organization

Required performanceQualitySpeedDependabilityFlexibilityCost

Understanding markets


Process Technology

a.k.a. production technology

Process technology strategy is ‘the set of decisions that define the strategic role that direct and indirect process technology can play in the overall operations strategy of the organisation and sets out the general characteristics that help to evaluate alternative technologies

» Slack and Lewis (2008)


Relevant Questions

What does the technology do which is different from other similar technologies?

How does it do it?

What constraint does using the technology place on the operation?

What skills will be required from the operations staff in order to install, operate and maintain the technology? How can technology vendor support implementation?

What capacity does each unit of technology have?

What is the expected useful lifetime of the technology?

Where does the technology exist in its lifecycle?

How is good is the technology vendor’s economic viability?

Are there relevant customer references available?

How much skills exist in the market for this technology?


What Kind of Technology We Need?

Source: Hayes, R.H. and Wheelwright, S.C. (1979) , Link Manufacturing Process and Product Life Cycles, Harvard Business Review, Jan-Feb, pp. 133-40

Typ

e o

f p

rod

uct

ion

pro

cess

Requirements on the production process


Effect of New Technology

Source: Hayes and Wheelwright (1979)


Evaluating Technology Strategically

Evaluating process technology means determining its value or worth

This involves exploring the strategic consequences of adopting technologies in terms of its – ‘feasibility’: the degree of difficulty in adopting it– ‘acceptability’: how far it takes a firm towards its strategic objectives– ‘vulnerability’: the extent to which the firm is exposed if things go wrong


Technology Investment Must be Feasible

If the resources required to install a piece of technology are greater than those which are either available or can be obtained, it is infeasible. Three broad questions are worth asking:

What kinds of skills, technical or human, are required? – Every investment in process technology needs a set of specific skills to cope with the

implementation – If an investment is similar to the usual activities of the organisation, these skills will

probably be present. However, with a completely novel process, novel implementation skills might be needed

What quantities of operational resources are necessary? – This involves determining the number of resources – people, facilities, space,

materials, etc. – which would be required to implement the process.

What are the funding or cash requirements? – For many decisions the major feasibility issue concerns the cash which would be

required. For some decisions this could mean simply examining a one-off cost, such as the purchase price. Other, more strategic, process investments may need an examination of their effects on the cash requirements of the whole organisation.


Technology Investment Must Give Acceptable Benefits

Process technology should provide resource capabilities which give a sustainable advantage by– being scarce, difficult to move, difficult to copy and/or difficult to substitute for

All process technology should contribute to the business in an operational context. – use operations performance objectives to assess acceptability – giving more weight

to those which contribute directly to competitiveness.

The financial impact of process technology is the comparison of the costs to which the investment commits the operation and the financial benefits which might accrue. – Ideally, both the ‘costs’ of the investment and the resulting benefits ought to include

everything which is influenced by the investment over its life. In fact, this is impossible in any absolute sense.

– The effects of any large process decision ripple out like waves in a pond, impinging on and influencing many other decisions.


Assessing the Acceptability of a Technology

Operations Resources Market Requirements

OperationsStrategy

Proposed technology

How does the technology affect• Quality?• Speed?• Dependability?• Flexibility?• Cost?

Is the technology• Scarce?• Difficult to move?• Difficult to copy?• Difficult to substitute for?

Financial evaluation

Does the technology give anacceptable ROI necessary for this adoption?

Source: Slack and Lewis, Operations Strategy (2008), Prentice Hall


Financial Evaluation Methods, examples

Payback period (PP)– Treats all technology options as same in below example – but they are not

• can’t detect how fast cash comes in, neither the cash flows after the payback period

Net present value (NPV) is the preferred method – it detects– The timing of the cash flows and time value of money– The whole of the relevant cash flows, the net benefit of investment after financing costs are met

Technology 1

Technology 2

Technology 3

100 200 300 400 500

Yr1

Yr2

Yr3

Yr4

Yr5

Yr1

Yr2

Yr3

Yr4

Yr5

Yr5

Yr4

Yr3

Yr2

Yr1

Cumulative cash flows

Payback periodThe investments withpositive NPVvalue are viable.Select technology with thehighest value (e.g. option 3 in

this example)


Technology Investment Must not Expose the Operation to Excessive Vulnerability

The risk inherent in any process investment is there because one cannot totally predict–How it will affect the performance of the whole operation–The external conditions prevailing after the investment is made – for

example, the volume of demand or the interest rate–The reaction of outside companies to the investment – for example, whether

competitors are likely to make similar investments

All these need assessing and putting in terms of the downside risk for the operation – the most pessimistic outcome possible. The key question then becomes : ‘is the downside risk worth taking?’


THANK YOU

technical architecture - platforms and technology selections in organisations - jpoutanen - jyu...

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