COST AND OPPORTUNITY COST OF ARCHITECTURAL INITIATIVES Miko Matsumura and Tim Vibbert
Oct 29, 2014
COST AND OPPORTUNITY COST OF ARCHITECTURAL INITIATIVES
Miko Matsumura and Tim Vibbert
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
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
Over 200 CentraSite customers including:
LM Global Customers
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
The State of the Union: Enterprise Architecture
Forrester Enterprise Architect Forum 2009 | Page 7
Architectural Degradation
• Architectural degradationArchitectural degradation–SlabsSlabs
–SilosSilos
–Spaghetti…Spaghetti…
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
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
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
Forrester Enterprise Architect Forum 2009 | Page 13
Human LimitsTrust, Communication,
Accountability,Visualization, Leadership
Scaling the Human: Simplicity isn’t Simple…
Forrester Enterprise Architect Forum 2009 | Page 15
From Personal Computing
Scale of one developer
Forrester Enterprise Architect Forum 2009 | Page 16
7 samurai
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…
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
Forrester Enterprise Architect Forum 2009 | Page 20
Talk to the HAND
How do we solve problems in human scaling?
The Infrastructure Scaling Pattern—IT Tribes
Visibility solution
Monitor service levels
Alert on performanceand availability issues
Snapshot individual transactions toeasily isolate the root cause of problems
Less than 1% overhead
Impacts of the Cloud
New Accounts
Finance/ Operations
CommissionCalculation
Sales
DataCleaning
Sales Order Update
SOA Cloud Resources
www.bluemountainlabs.com
The LifeCycle Pattern
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
Forrester Enterprise Architect Forum 2009 | Page 27
Federation Pattern
Business/IT Alignment Pattern
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
Forrester Enterprise Architect Forum 2009 | Page 30
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
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.
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
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Pilamaya yelo (Thank You)