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© 2003 Strategic Architecture The Exchange - Aviara July, 2003 David C. Baker [email protected]
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Page 1: Strategic Architecture

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Strategic Architecture

The Exchange - AviaraJuly, 2003

David C. [email protected]

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Outline

What is architecture?

A call for action

Enterprise architecture in practice

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Information Technology deals with complex systems

Year Doubling of Body of Knowledge

Business Cycles Information Technology

Cycles

1800s 500-1000 years N/A N/A

1970s 100 years 7 years 2-3 years

1980s 25 years 5 years 2-3 years

1990s 10 years 12-18 months 2-3 years

2001 6 months 6 months 2-3 years

200x 3 months Near Real Time ?

Source: Meta Group, 2001

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Example of complexity

GPRS

/ GSM

BSS

OSS

BSS

OSS

Service

Platform

PSTN

/ ADSL

ISDN

GPRS

/ GSM

PSTN /

ADSL

ISDN

WAN

/ LAN

WAN

/ LAN

ISP

ISP

GPRS

/ GSM

ISDN

WAN

/ LAN

PSTN /

ADSLISP

Application 1

Application 2

Application n

Corp 1

Application 1

Application 2

Application n

Corp 1

Application 1

Application 2

Application n

Corp 3

Corp 4

Corp 2

Application 1

Application 2

Application n

Corp 5

Corp 6

Leased

line

Leased

line

Leased

line

Leased

line

Leased

line

Leased

line

Leased

line

Internet

France

Content

Partner

BSS

OSS

Service

Platform

Hungary

Internet

Content

Partner

Service

Platform

Italy

Content

Partner

Internet

Leased

line

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What is architecture?

Simple System

Part of a complex network

“Normal” System Complex System

Part of a simple

network

“You can build a doghouse out of

anything”

- Alan Kay

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Lacking architecture, your results are unlikely to meet your expectations

What you want What you have(individual systems and

components)

Your results!

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Architecture solution

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Architecture answers questions for key stakeholders

Architecture

Clientwants to know

GeneralContractor

wants to knowWhat’s the result?

How quickly can I get it?

How much does it cost / save?

What are the risks?

What’s possible?

How do we get it done?

How do I make sure it’s done correctly?

What’s possible?

Subcontractorwants to know

What do I build?

What do I build it with?

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Architecture answers questions for key stakeholders, continued

Architecture

BusinessManagers

want to know

ITManagers

want to knowWhat’s the result?

How quickly can I get it?

How much does it cost / save?

What are the risks?

What’s possible?

How do we get it done?

How do I make sure it’s done correctly?

What’s possible?

TechnicalStaff

wants to know

What do I build?

What do I build it with?

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Problems occur when architecture is executed in isolation

PepsiCo is a $25.1 billion beverage and snacks producer

Key divisions: Frito-Lay, Pepsi-Cola, Gatorade/Tropicana, Quaker Foods

Technology spend estimated at $1 billion per year

5 different mobile solutions in use across 5 different divisions

Context

Source: Baseline May 2003

Establish a common hardware platform for all divisions

Reduce the number of software solutions

Estimated that bulk buying could save 20% to 30% of current $200 million spend

Additional savings from reduced installation, service and maintenance

Opportunity

Architecture is one of the catalysts necessary to establish a common platform yet still enable innovation within each of the business units

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Where do architects come from?

Technical Specialist

Software Architect Infrastructure Architect

Enterprise Architect

Delivery (the Craft – i.e. coding)

Management, Estimation, Program Design (Technology Planning)

Theoretical / Industry Knowledge

(“art of the possible”)

Grow

Grow

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What makes an architect?

The Artist

The Guru

The Coach

The Spy

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Outline

What is architecture?

A call for action

Enterprise architecture in practice

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An enterprise architecture practice involves more than just blueprints

ArchitectureProcesses

Skills & Organization

Blueprints

Guiding Principles

Metrics

Repository / Portal

Governance

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Blueprints and Guiding Principles are the foundation of your architecture

BusinessModel

ProcessModel

ApplicationModel

Buyvs

Build

Insourcevs

OutsourceInterface

ModelInformation

ModelInfrastructure

Model

Guiding Principles

Blueprints

(Examples)

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Linking business to technology provides consolidation capabilities

Global property and casualty insurer

Lacking a linked business and systems architecture

Unable to tell how overlapping applications related to one another

Unable to tell how any application could replace another

Decided to standardize application and infrastructure architecture

Context and Approach$5.6M savings via infrastructure consolidation

$2.6M savings from centralized identification and authorization (single sign-on)

$3.3M savings from standardized operations management console and “sensors”

$1.5M in reductions and avoidance from common eCommerce architecture

Benefits Achieved

This effort required the creation of an enterprise architecture team and the recruitment of a chief architect

Source: DCI experience database

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Architecture Community

Architecture work leverages the larger IT community

The EAG organizes, manages, and drives the Architecture Community

• ApplicationArchitects

• Operators• Developers

• Testers• Project

Managers

CIOChief Architect

Application Architect

Information Architect

Business Architect

Infrastructure Architect

Security Architect

Arch Program Mgr

Architecture Processes• Blueprinting• Vendor selection & management• Project checkpoint and signoff• Standards development• Technology research and adoption• Technology investment guidance

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Use of an architecture repository enables sharing and measurement

Repository

Blueprints

Guiding Principles

% of baseline standards created & disseminated% of projects with architecture signoff% of applications fully compliant with standards% of technology in each stage of the technology lifecycle

Example Metrics

IT Community

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Architecture provides key criteria that guides annual IT planning and budgeting

Implicit IT portfolio

Distinguish categories

Measure, assess

Make decisions

Diagnose, recommend

A huge collection of projects and assets

Fact-based insight into architecture

fit

Faster / better investment decisions

Business language

Different assets

judged and managed

differently

Define criteria

Screens that

match strategic

intent

1

2

2

4

1

0

5

4

2

3

0

1

2

3

1

1

2

5

3

2

0

3

2

0

0

0

2

1

2

5

0

2

2

0

2

3

1

1

4

3

1

2

Invest

Adjust

Sunset

A

B

Current State Architecture(identifies and categorizes

current IT assets)

Future State Architecture(provides strategic criteria

for screening and assessing portfolio)

Roadmap(Result is a roadmap of IT

projects aligned with business drivers)

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Utilized blueprints in portfolio screening and diagnosis methodology

Prioritized projects, applications and platforms

Recent client example shows benefits of IT portfolio screening

Context and approach Benefits achievedNorth American division of a large European car manufacturer

Little to no integration across platforms and application

Many redundancies, conflicting objectives, unclear deliverables

No shared investment tracking tools or metrics

352 - Number of in-flight projects at start of portfolio screening effort

30 - Number of remaining high-impact, cost effective, focused initiatives

$40-50M - Savings from eliminating redundancies and projects without clear benefits

$200M - Incremental revenues from reallocating time and resources towards customer value generating initiatives

Source: DCI experience database

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Architecture also governs the most detailed IT activities

Checkpoint 0

- Assess need for new technology

- Check feasibility

EA Iteration N EA Iteration N+1

Enterprise Architecture

Software Development

Lifecycle

Checkpoint 1

- Update blueprints to meet project needs

Checkpoint 2

- Verify alignment with blueprints

Checkpoint N

- Manage architecture deviations

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Architecture drives down development time and cost

IBM developed a set of best-practices learned from it-s e-business projects

Published as IBM’s Patterns for E-Business

Utilized by Experio Solutions as reference architectures for e-business

Context and Approach

60% reduction in architecture design time

40% lower costs in systems migration

Sharply reduced risk associated with application and infrastructure upgrade

Benefits Achieved

Pattern based architectures support faster time-to-market and faster time to ROI

Source: Experio case study on IBM Patterns for e-business web site

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Architecture sets the technology agenda for vendor evaluation & selection

No, me!

Upgrade now!

Better Technology!

Pick me!

…yet you shall have to prove

yourself to me…

You are the best and brightest in all the land….

I’m NEW!

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Where are you in your architecture efforts?

Enterprise ArchitectureCapability Maturity Model

Level 3

Enterprise Architecture

is defined (written down)

Level 1Informal, ad-hoc Enterprise Architecture processes

Level 4

Enterprise Architecture is managed

and measured

(metrics and feedback)

Level 2

Enterprise Architecture

is under development

Level 5

Continuous improvement. Metrics used to optimize business linkage

Adapted from Meta Group, “Enterprise Process Maturity Model and the SEI Model”,Enterprise Architecture Strategies

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Outline

What is architecture?

A call for action

Enterprise architecture in practice

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It doesn’t matter how you start, just get going!

Type: Broad and ShallowArchitecture Blueprints

Guiding Principles

Architecture Governance

Architecture Processes

Organization & Skills

Architecture Repository

Metrics & Measurement

Breadth of Coverage (Business Unit, Applications)

Depth of Coverage

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It doesn’t matter how you start, just get going!

Type: Broad and ShallowArchitecture Blueprints

Guiding Principles

Architecture Governance

Architecture Processes

Organization & Skills

Architecture Repository

Metrics & Measurement

Type: Focused

Breadth of Coverage (Business Unit, Applications)

Depth of Coverage

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It doesn’t matter how you start, just get going!

Type: Broad and ShallowStaffing: Moderate – 4 to 6

Architecture Blueprints

Guiding Principles

Architecture Governance

Architecture Processes

Organization & Skills

Architecture Repository

Metrics & Measurement

Type: FocusedStaffing: Low – 3 to 5

Type: The Whole Enchilada

Breadth of Coverage (Business Unit, Applications)

Depth of Coverage

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I’ve heard it before

I’ve heard all the excuses:

“I can’t justify the cost of architecture”

“Architecture is too theoretical”

“I don’t see the impact of architecture”

If you are thinking the same then you can’t complain that your systems are not aligned with the business or that you cannot get to the information you need or that your systems are inflexible or that you cannot change your systems fast enough…

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The bottom line

Throwing more technology at your problems will not solve the problem

Architecture is not about the technology, it’s about how you manage the technology

The most excellent technical work, left unmanaged, is wasted work