Enterprise Architecture Planning To Prepare for Strategic SOA ...

®

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


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?


What should your future architecture be?

Web 2.0 + BPM + SOA?

Stable Application

Services

Agile Business

Processes

Dynamic

Personalized

User Interfaces


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%


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


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


SOA by evolution

Services

ERP

CRM


Hyperion

Fusion

Siebel

SOA by evolution and revolution


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


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


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


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


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


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


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


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


3: Develop and implement architecture

• Develop to-be architecture

• Identify evolutionary steps

• Align processes and organization

Driver

Identification

Scenario

Planning

Architecture

Development

Architecture

Implementation


3: Develop to-be architecture


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


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


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


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?


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


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.


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


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


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


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?


Ian Finley

Research Director

(617) 574-5126

[email protected]

www.amrresearch.com

®

Appendix


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.


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


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


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


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


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