® Enterprise Architecture Planning To Prepare for Strategic SOA Deployments Ian Finley, Research Director AMR Research
May 26, 2015
®
Enterprise Architecture Planning To Prepare
for Strategic SOA Deployments
Ian Finley, Research Director
AMR Research
© 2007 AMR Research, Inc. | Page 2®
Agenda
• 5 key architectural questions you have to answer
• Enterprise Architecture means …
• An EA development process
• Five key CEO questions you have to answer
© 2007 AMR Research, Inc. | Page 3®
5 key architectural questions you have to answer
• What should your future architecture be?
• How much will you buy? How much will you build?
• How will you leverage your existing enterprise applications?
• How will you handle future requirements?
• How will you do it?
© 2007 AMR Research, Inc. | Page 4®
What should your future architecture be?
Web 2.0 + BPM + SOA?
Stable Application
Services
Agile Business
Processes
Dynamic
Personalized
User Interfaces
© 2007 AMR Research, Inc. | Page 5®
Current use of SOA
We have implemented
SEVERAL projects using
SOA
20%
We have implemented
ONE project using SOA
15%
We are currently
implementing our FIRST
project using SOA
14%
We are considering
using SOA for one or
more projects within
23%
We are considering
using SOA in the next
12 to 24 months
9%
We have not
considered using SOA in
the next 24 months
19%
SOA adoption is accelerating—
81% are using or considering.
We are considering
using SOA for one or
more projects within
the next 12 months
23%
© 2007 AMR Research, Inc. | Page 6®
How much will you buy? How much will you build?
Degree of Customization
Co
mp
lex
ity
of
Sy
ste
m L
an
ds
ca
pe
Commercial Off the Shelf (COTS)
COTS andSome Custom
CustomSoftware
Single Instance of ERPSuite
EnterpriseWide
Best of Breed
Differs byBusiness
Unit
ServicesManufacturing Retail
Com
pose Differentiated
Business P
rocesses from
ER
P V
endor Provided
Services
Reduced S
oftware
Developm
ent Costs.
Use O
f Services to C
reate
Unique D
ifferentiating
Business P
rocesses
Reduced integration costs &
Com
pose/build Unique
Differentiating B
usiness
Processes across A
pplications
© 2007 AMR Research, Inc. | Page 7®
How will you leverage your enterprise applications?
Fixed
Process
Fixed
Process
Programmed Workflow
• Over 10 years of code
• Built-in fixed business processes
• Limited configuration and workflow
• APIs for common integration points
API
API
API
API
Typical
Enterprise
Application
© 2007 AMR Research, Inc. | Page 8®
SOA by evolution
Services
ERP
CRM
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Hyperion
Fusion
Siebel
SOA by evolution and revolution
© 2007 AMR Research, Inc. | Page 10®
How will you deal with the new enterprise app infrastructures?
Any Application Server(Oracle, WebLogic, WebSphere, JBoss)
Enterprise Service Bus
RoutingAdaptersUDDI
Registry
BPEL Process Manager
Native
BPELWorkflow Rules
Web Services Manager Security
BAM Monitoring
JDev
Eclipse
Oracle AQ
TIBCO
MQ Series
Oracle Directory
Active Directory
LDAP
ILOG JRulesCorticon
Virtual Content Repository
Service Assembly Framework
Portlet Framework
Collaboration Services
Process Management Services
Personalization Framework
Presence Services
© 2007 AMR Research, Inc. | Page 11®
Where are the major ERP vendors today?
New Application
• Minor Functionality Changes Since 4.6C
• Seems Mostly Rewrapped BAPI, iDoc,and RFC
• Enterprise Services Community drivingservice creation
• SAP Business By Design = full SOA
New Platform
• Still taking shape
• Complex to install and maintain today
• Applications lag the platform
Upgrade Path
• Basic upgrade to mySAP 2005 should bestraightforward
• Enhancement packages add SOAinterfaces
• ByDesign not a migration option today
New Application
• Fusion Applications = EBS 13
• SOA version of EBS code
• Apps Unlimited applications rewrapped
• New Application Integration Architecturedriving service creation
New Platform
• Solid but still evolving
• Innovative BPMN to BPEL synchronizationwith ARIS
• Applications lag the platform
Upgrade Path
• Data migration to Fusion should bestraightforward
• Functional migration for EBS users may be aswell
• Migration option for other Oracle apps
• No forced migrations
© 2007 AMR Research, Inc. | Page 12®
Enterprise architecture means…never having to say
“we’re sorry”
0 20 yr.
Today’s IT Decision
10 yr.
Business
Strategy
CEO
Possible Business Directions
IT Decision B
IT Decision A
Enterprise Application
© 2007 AMR Research, Inc. | Page 13®
An enterprise architecture development process
• Business impact driven (pragmatic)
• Inclusive
• Business strategists and owners
• IT owners
• 3-20 year time horizon
• Dynamic
• Reevaluated yearly and when significant changes occur
Driver
Identification
Scenario
Planning
Architecture
Development
Architecture
Implementation
© 2007 AMR Research, Inc. | Page 14®
1: Business driver and scenario identification
1. Gather data on drivers with business
a) Agree on the current status
b) Analyze historical trends
c) Forecast future trends
2. Understand uncertainties in each driver
3. Look for divergence and convergence in trends to identify
scenarios
4. Assign probabilities and impact to scenarios based on what-if
discussions
Driver
Identification
Scenario
Planning
Architecture
Development
Architecture
Implementation
© 2007 AMR Research, Inc. | Page 15®
2: Identify important business scenarios
Lik
elih
ood
Cost to Respond
Divest
Division
Acquire
Competitor
Outsource
Mfg.
Enter
China
Mgmt.
Change Transformational
Business Impact
Significant
Minor
© 2007 AMR Research, Inc. | Page 16®
2: Identify important technical risk scenarios
Lik
elih
ood
Cost to Respond
Software
Vendor
Bankrupt
Infrastructure
Failure
Level II
Disaster
Application
Failure
Transformational
Business Impact
Significant
Minor
© 2007 AMR Research, Inc. | Page 17®
2: Select architectural objectives
• Open up
business
options
• Mitigate
significant
technical
risks
Lik
elih
ood
Cost to Respond
Acquire
Competitor
Enter
China
Software
Vendor
Bankrupt
Level II
Disaster
© 2007 AMR Research, Inc. | Page 18®
3: Develop and implement architecture
• Develop to-be architecture
• Identify evolutionary steps
• Align processes and organization
Driver
Identification
Scenario
Planning
Architecture
Development
Architecture
Implementation
© 2007 AMR Research, Inc. | Page 19®
3: Develop to-be architecture
© 2007 AMR Research, Inc. | Page 20®
3: Chart milestones
Year 1 Q2 Year 2
Ob
jecti
ve 2
‘As-Is’
Objective 5
Year 1 Q4 Year 3 Year 4
‘To-Be’
Ob
jecti
ve 3
Ob
jecti
ve 1
Objective 6Objective 4
Measure 1
Measure 3Measure 12
Measure 7
Work completed
Current focus
Longer term objectives
Measure 5
Measure 9
Measure 13
Measure 2
Measure 10
Measure 4
Measure 6
Measure 15
Measure 13
Measure 16
Measure 14
Measure 17
Measure 19
Measure 21
Measure 20
Measure 22
Measure 23
Measure 24
Measure 22
© 2007 AMR Research, Inc. | Page 21®
3: Align organization and processes: Selling the architecture
and organizing for success
Our reasons
for existence
Our reasons
for existence
Our financial objectives
Architectural
objectives
Our value
proposition to
the client
Architecture
Initiatives
Our internal
business
processes
Our internal
business
processes
Our development
and growth
objectives
Personal development
and growth
objectives
Reason 1Reason 1
Strategy themes
Theme 1
Theme 2
Theme 3
Theme 4
Theme 5
Theme 6
EA themes
Theme 1
Theme 2
Reason 2Reason 2 Reason 3Reason 3 Reason 4Reason 4
Objective 1Objective 1 Objective 2Objective 2
Objective 3Initiative 1 Objective 4Initiative 2 Objective 5Initiative 3 Objective 6Initiative 4
Objective 7Process 1 Objective 8 Process 2 Objective 10Process 4 Objective 11Process 5Objective 9Process 3
Objective 12Team member 1 Objective 13Team member 2 Objective 14Team member 3
© 2007 AMR Research, Inc. | Page 22®
4: Implement the architecture
• Think strategically, work tactically
• Participate in Business IT/Governance Council
• Participate in IT Operations Council
• Enforce via EA Review Board
• Input into early points of key processes
• New projects
• Operations change management
RequirementsDesign/
Select
Develop/
ConfigureDeploy Fix
Upgrade/
EnhanceRetire
Solution Lifecycle
EA
Review
Board
© 2007 AMR Research, Inc. | Page 23®
Five key CEO questions you have to answer
• Why do we need an Enterprise Architecture Group?
• Why now?
• How much will it cost?
• How will we measure it?
• When will I see results?
© 2007 AMR Research, Inc. | Page 24®
Key CEO question: Why do we need an EA group?
• Information technology is a key foundational element forbusiness competitiveness
• No architecture = “the house that Jack built”
• Short-term decisions without EA create long-term liabilities,not competitive assets
Corporate Strategy
Supply Chain Processes
Product and Service Innovation
Enterprise Architecture
Human Capital
Processes
Financial
Processes
Change
ManagementCapital
Planning
© 2007 AMR Research, Inc. | Page 25®
Key CEO question: Why EA now?
Until recently…
• Business viewed as stable
• Business agility now paramount
• IT viewed as local, tactical investment
• Few companies are truly global
• IT decisions based only on short term ROI
• Winning battles, losing the war
• Compliance a side show
• Now global compliance a priority
• ERP = Enterprise Architecture
• Too limited and rigid—can’t build competitive advantage in ERP
We need EA now to make sure every IT investment is creating
business options and reducing risk.
© 2007 AMR Research, Inc. | Page 26®
Key CEO question: How much will an EA group cost?
• Small senior team
• Business, service, data, application and technology
architects
• Can be part time at first
• More risky
• Better a few full-timers than many part-timers
• No delays to projects
• Just better decision-making at current decision points
• Small time requirement from business and IT leaders
• Architecture must support future business needs and
leverage existing assets and skills
© 2007 AMR Research, Inc. | Page 27®
Key CEO question: How will we measure EA?
• Architectural design
• How much potential opportunity is created and risk avoided,
and at what cost?
• Architectural implementation
• How much of that value is realized via funded projects?
Lik
elih
oo
d
Cost to Respond
Acquire
Competitor
Enter
China
Software
Vendor
Bankrupt
Level II
Disaster
‘ As - Is ’
‘To - Be ’
Measure 1
Measure 3Measure 12
Measure 7
Measure 5
Measure 9
Measure 13
Measure 2
Measure 10
Measure 4
Measure 6
Measure 15
Measure 13
Measure 16
Measure 14
Measure 17
Measure 19
Measure 21
Measure 20
Measure 22
Measure 23
Measure 24
Measure 22
© 2007 AMR Research, Inc. | Page 28®
Key CEO question: When will I see results?
• Scenario planning—6 months
• Architectural design—1 year
• Architectural implementation—Years 1-20
1. Build team
2. Assess as-is enterprise architecture
• Survey existing IT assets and models
• Identify issues with significant business impact
3. Pilot EA
• Small scope
• Areas looking for transformation and leadership
4. Demonstrate success
• Baseline and calculate benefits
5. Expand
• Prioritize based on business impact
© 2007 AMR Research, Inc. | Page 29®
More questions?
Architectural
• What should your future
architecture be?
• How much will you buy? How
much will you build?
• How will you leverage your
existing enterprise applications?
• How will you handle future
requirements?
Managerial
• How will you develop and move to
a new architecture?
• How will you sell the architecture
to the rest of IT and the business?
CEO
• Why do we need an Enterprise
Architecture Group?
• Why now?
• How much will it cost?
• How will we measure EA?
• When will I see results?
© 2007 AMR Research, Inc. | Page 30®
Ian Finley
Research Director
(617) 574-5126
www.amrresearch.com
®
Appendix
© 2007 AMR Research, Inc. | Page 32®
EA best practices
• Business driven
• Highly practical—not theoretical
• Speak business language—avoid IT jargon
• Small experienced team
• Understands application packages
• Much of your future architecture may be out of your control
• Can break down IT fiefdoms
• Facilitate tough decisions on policies, specifications, andstandards, including vendors
• Often centralizes common functions
• Business process management
• BPM, modeling, and continuous improvement teams
• SOA clearing house
• EA team helps define the most appropriate services for thecompany, with future reusability in mind.
• IT governance
• Link to standard IT governance policies.
© 2007 AMR Research, Inc. | Page 33®
EA best practices (cont.)
• EA review board
• Ensure EA input at right part in buy, build and retire processes
• Sell business benefits of architecture one project at a time to
business and IT leaders
• Focus on company benefit, not rigid rules
• EA integrated with other enterprise processes
• Corporate strategy development
• Budget/capital planning
• Procurement
• Business process management/measurement
• Business process reengineering
• Total quality management
• Enterprise risk assessment
© 2007 AMR Research, Inc. | Page 34®
EA team structure
• Full time
• Own and operate EA processes
• Participate in other processes
• Contributors
• Business strategy experts
• IT subject matter experts
• Community
• Business owners and strategists
• IT
• Finance
Business involvement creates legitimacy
IT involvement enables influence
© 2007 AMR Research, Inc. | Page 35®
EA professionals
• Chief Architect
• Enterprise architecture processes
• Management and development of other full-time EA professionals
• Business Architect
• Consistent modeling of business process, requirements process
• Service Architect
• Service framework, SOA governance
• Application Architect
• Application strategy and application lifecycle processes
• Data Architect
• Information framework, data standards, and MDM processes
• Technology Architect
• Technical framework (security, network, database, etc.)
Small experienced teams work best
© 2007 AMR Research, Inc. | Page 36®
Responsibilities
• Top-Down Value—Strategic
• Big-picture enterprise context
• Strategic alignment
• Consistent decision-making
• Multiyear value extraction
• The Needs of the Whole
• Bottom-Up Value—Applied
• Activity/asset context
• Project/initiative support
• “Practical” results
• Short-term value extraction
• Often the needs of the fewer
Think strategically, work tactically
© 2007 AMR Research, Inc. | Page 37®
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