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COST AND OPPORTUNITY COST OF ARCHITECTURAL INITIATIVES Miko Matsumura and Tim Vibbert
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Oct 29, 2014

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Page 1: Costandopportunitycostofarchitecturalinitiatives 090311132631-phpapp01

COST AND OPPORTUNITY COST OF ARCHITECTURAL INITIATIVES

Miko Matsumura and Tim Vibbert

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Miko Matsumura, VP and Deputy CTO, Software AG

• Work• Vice President INFRAVIO• Vice President webMethods• Chief Java Evangelist, Sun

Microsystems• Focus Ventures Limited Partner

• School• MS Neuroscience, Yale University• MBA, SFSU

• SOA• Co-Author SOA Adoption for

Dummies• Chair OASIS SOA Adoption Blueprints• Keynote Speaker SOA World

• Social• LinkedIN: Miko Matsumura• Blog: SOACenter.com• Twitter: Mikojava

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Tim Vibbert (SOA Chief), Enterprise Architect, Lockheed Martin

• Work• Staff Systems Engineer Lockheed Martin• Managing Partner, Oglala Innovative Solutions

• School• MS Computer Information Science, LaSalle

University• BS Computer Science, UT-Martin

• SOA• OASIS SOA-RM/RA TC• Speaker Innovation World• Keynote Speaker SOA Executive Forum• SOA Consortium

• Social•Twitter: soachief•LinkedIn: Tim Vibbert (SOA Chief)•Blogs:•Thoughts of the SOA Chief•SOA Chief in the Clouds

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Over 200 CentraSite customers including:

LM Global Customers

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Forrester Enterprise Architect Forum 2009 | Page 5

• Text on the first level – 24 point

– Text on the second level – 18 point - preferable

• Text on the third level – 16 point – this is the smallest text for a slide

Single-line Headline – 24 point

SMARTIES

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The State of the Union: Enterprise Architecture

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Forrester Enterprise Architect Forum 2009 | Page 7

Architectural Degradation

• Architectural degradationArchitectural degradation–SlabsSlabs

–SilosSilos

–Spaghetti…Spaghetti…

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B2BFinancial Institution

BankingChannels Servicing Operations Product

MgtBusinessSupport

CRM Application

Banking Applications

ERP Application

Business Intelligence

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Adhoc

Process

InsuranceChannels Servicing Operations Product

MgtBusinessSupport

CRM Application

Insurance Applications

ERP Application

Business Intelligence

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Adhoc

Process

PartnerBusiness

Unit

Application

Process

Application

Process

Application

Process

Capturing the Whole Value of the Enterprise

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B2BFinancial InstitutionBanking

Channels Servicing Operations ProductMgt

BusinessSupport

CRM Application

Banking Applications

ERP Application

Business Intelligence

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Adhoc

Process

Enterprise Business Process

Enterprise Business Process

InsuranceChannels Servicing Operations Product

MgtBusinessSupport

CRM Application

Insurance Applications

ERP Application

Business Intelligence

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Adhoc

Process

Across Divisions and Business U

nits

Across Divisions and Business U

nits

PartnerBusiness

Unit

Application

Process

Application

Process

Application

Process

Across Partners, Suppliers, & Custom

ers

Across Partners, Suppliers, & Custom

ersCapturing the Whole Value of the Enterprise

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B2BFinancial InstitutionBanking

Channels Servicing Operations ProductMgt

BusinessSupport

CRM Application

Banking Applications

ERP Application

Business Intelligence

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Adhoc

Process

Enterprise Business Process

Enterprise Business Process

InsuranceChannels Servicing Operations Product

MgtBusinessSupport

CRM Application

Insurance Applications

ERP Application

Business Intelligence

Sub-

Process

Sub-

Process

Sub-

Process

Adhoc

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Sub-

Process

Sub-

Process

Sub-

Process

Manual

Process

Adhoc

Process

Across Divisions and Business U

nits

Across Divisions and Business U

nits

PartnerBusiness

Unit

Application

Process

Application

Process

Application

Process

Repeated and Repeated and Diverging businessDiverging business

FunctionsFunctions

Repeated and Repeated and Diverging businessDiverging business

FunctionsFunctions

Costly & ineffectiveCostly & ineffectiveHandoffs betweenHandoffs between

Organisations, processes,Organisations, processes,And applicationsAnd applications

Costly & ineffectiveCostly & ineffectiveHandoffs betweenHandoffs between

Organisations, processes,Organisations, processes,And applicationsAnd applications

Across Partners, Suppliers, & Custom

ers

Across Partners, Suppliers, & Custom

ers

No Single CustomerNo Single CustomerView acrossView across

groupgroup

No Single CustomerNo Single CustomerView acrossView across

groupgroup

CustomerCustomerValue constrained by Value constrained by

Business Unit Business Unit capabilitycapability

CustomerCustomerValue constrained by Value constrained by

Business Unit Business Unit capabilitycapability

High cost of change – High cost of change – Difficulty in providingDifficulty in providingReturn-On-InvestmentReturn-On-Investment

High cost of change – High cost of change – Difficulty in providingDifficulty in providingReturn-On-InvestmentReturn-On-Investment

Inefficient Processes Inefficient Processes embeddedembedded

Within applicationsWithin applications

Inefficient Processes Inefficient Processes embeddedembedded

Within applicationsWithin applications

Operational excellenceOperational excellenceImprisoned withinImprisoned within

Single business unitSingle business unit

Operational excellenceOperational excellenceImprisoned withinImprisoned within

Single business unitSingle business unit

Poor Quality and Poor Quality and inconsistentinconsistent

ServiceService

Poor Quality and Poor Quality and inconsistentinconsistent

ServiceService

CostlyCostlyPoint-to-pointPoint-to-point

IntegrationIntegration

CostlyCostlyPoint-to-pointPoint-to-point

IntegrationIntegration

Inefficient useInefficient useOf IT systemsOf IT systems- No Re-Use!- No Re-Use!

Inefficient useInefficient useOf IT systemsOf IT systems- No Re-Use!- No Re-Use!

Limited processLimited processAutomationAutomation

Limited processLimited processAutomationAutomation

No visibility or controlNo visibility or controlOver enterprise processesOver enterprise processes

– – Compliance!Compliance!

No visibility or controlNo visibility or controlOver enterprise processesOver enterprise processes

– – Compliance!Compliance!

Capturing the Whole Value of the Enterprise

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Forrester Enterprise Architect Forum 2009 | Page 13

Human LimitsTrust, Communication,

Accountability,Visualization, Leadership

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Scaling the Human: Simplicity isn’t Simple…

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Forrester Enterprise Architect Forum 2009 | Page 15

From Personal Computing

Scale of one developer

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Forrester Enterprise Architect Forum 2009 | Page 16

7 samurai

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Tribalism within OrganizationsFragmenting by Function

By Platform

By Legacy

Geography

Mergers and Acquisitions

System Integrators

By Centralization

Business Units

Culture Tribes

Customers

Long term/short term employees

Good for Me, Bad for You…

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How did we get into this?

• Project Based Funding

• ROI Measured Per-Project

• IT Projects create messes for others

• Good for me bad for you thinking…

• Pushing cost and complexity

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Forrester Enterprise Architect Forum 2009 | Page 20

Talk to the HAND

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How do we solve problems in human scaling?

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The Infrastructure Scaling Pattern—IT Tribes

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Visibility solution

Monitor service levels

Alert on performanceand availability issues

Snapshot individual transactions toeasily isolate the root cause of problems

Less than 1% overhead

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Impacts of the Cloud

New Accounts

Finance/ Operations

CommissionCalculation

Sales

DataCleaning

Sales Order Update

SOA Cloud Resources

www.bluemountainlabs.com

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The LifeCycle Pattern

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26

ACH

Deposits

Checking Savings

MoneyMkt.

CDs

Account Mgmt

Transactions

???

CustomerView Transfer Fraud Risk CRM

Cross-ProductServices

ProductDomains

BusinessServices

Products

Consumer Lending

Account Mgmt

Origination

Servicing

Mortgage

Personal

Auto HELOC

CreditCard

CreditLine

Commercial Lending

Account Mgmt

Origination

Servicing

CapitalLease

CreditLine

CreditCard

??

WealthManagement

Account Mgmt

Transactions

Servicing

Mortgage

Insurance

EstateProperty

Mgmt.

Custody/Escrow

Trust

Securities& Brokerage

Account Mgmt

Transactions

Custody

Brokerage

Trusts

MarginMutualFunds

IRAs401-k

SharedSharedServices

EnterprisePlatforms

TechnicalServices

IMPACS FinesseBranchTeller

Weiland ACBS MPLS TransfundTrustOmni

FRM Salesforce FED

Imaging ContentMgmt

ValidationCreditCheck

GL

HRIS

HumanResources

Finance

Pricing

Portfolio Pattern

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Forrester Enterprise Architect Forum 2009 | Page 27

Federation Pattern

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Business/IT Alignment Pattern

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Forrester Enterprise Architect Forum 2009 | Page 29

• Text on the first level – 24 point

– Text on the second level – 18 point - preferable

• Text on the third level – 16 point – this is the smallest text for a slide

Single-line Headline – 24 point

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Forrester Enterprise Architect Forum 2009 | Page 30

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We’re the Leader in IC BPMS Technology

Source: Forrester Research, Inc., The Forrester Wave™: Integration-Centric Business Process Management Suites, Q4 2006, December 2006

85 criteria.13 vendors.One winner.

webMethods Fabric.

Top-ranked Integration-Centric

BPM Suite

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We’re a Leader in the 2009 Q1 ESB Wave

Source: Forrester Research, Inc., The Forrester Wave™: Integration-Centric Business Process Management Suites, Q4 2006, December 2006

Leader ESB

The standout feature of webMethods ESB is its elegant tooling. The product

has the cleanest developer abstraction among all the products, which means that

it onlyrequires developers to have minimal knowledge of the ESB’s underlying

operating principles.Software AG earned top scores for design-time support by including its

CentraSite repository.

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Don’t Miss SOA Summit 2009!May 5-6, 2009 - Scottsdale, Arizona

• World-Class Location– Scenic Camelback Inn, Spa & Resort

• World-Class Experts – John Rymer, Forrester Research

– Susan Cramm, CIO Magazine

– Ron Schmelzer, ZapThink

– Miko Matsumura, Software AG

– Joe McKendrick, ebizQ

• World-Class Trainers– ZapThink, America’s Top SOA

Certification Program

• World-Class Activities & Fun!– Golf, Spa, Desert Jeep Tour & More!

• Social Groups– Software AG’s: SOA Summit 2009

Register at

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Pilamaya yelo (Thank You)