Optimizing Value to the Enterprise with Integrated Enterprise Architecture

Welcome Optimizing Value to the Enterprise with

Integrated Enterprise Architecture

Brian JamesDirector of Product ManagementMetastorm

April 21-23, 2008

Renaissance Washington, DC© 2008 Metastorm Inc.

Agenda

Introduction

Building Enterprise Architecture

Using Enterprise Architecture

Getting Started

April 21-23, 2008


What is Enterprise Architecture?

“In a large modern enterprise, a rigorously defined framework is necessary to be able to capture a vision of the ‘entire system’ in all its dimensions and complexity. Enterprise Architecture (EA) is a framework which is able to coordinate the many facets that make up the fundamental essence of an enterprise. It is the master plan which ‘acts as an integrating force’ between aspects of business planning such as goals, visions, strategies and governance principles; aspects of business operations such as business terms, organisation structures, processes and data; aspects of automation such as application systems and databases; and the enabling technological infrastructure of the business such as computers, operating systems and networks.”

Dennis A. Stevenson,Senior Editor, IS World Research

April 21-23, 2008


Building Enterprise Architecture

April 21-23, 2008


Enterprise Architecture Terminology

Today’s Enterprise Architecture Frameworks

– Zachman Framework

– Enterprise-Wide IT Architecture

– The Open Group– Federal Enterprise

Architecture– DoDAF

StrategicDirection

BusinessArchitecture

SystemArchitecture

TechnologyArchitecture

April 21-23, 2008


Enterprise Architecture FrameworkStrategic Direction

Business Architecture System Architecture Technology Architecture

Data /Object

Product /Service

PeopleProcess Service /

Application Software

Hardware

Interface Network

Data Architecture

CapabilityEnvironment Goal

Application Architecture

April 21-23, 2008


Strategic Direction

Objectives•Examine the enterprise’s environment, assess internal capabilities and set direction•Validate the business principles and strategic business drivers of the organization•Create a vision for the enterprise that will guide the development of each architecture component

StrategicDirection


DataArchitecture

ApplicationArchitecture


April 21-23, 2008


StrategicDirection


DataArchitecture



Business Interaction Model

April 21-23, 2008


StrategicDirection


DataArchitecture



StrategyModel

Current Environment

Strategic Planning for Production Processes

Corporate goals, opportunity precedents, affected policies, and problemsimpeding implementation.

impedes

redu

ces

constrains

provides estimate prior to

is a requirement for




impedes

impedes

impedes

addresses

incurs

includes

takes advantage of

addresses


is rea

lized

by

P.3MaintainExisting

Equipment

Lack ofCapital

Expenditure

PoorEquipment

Maintenance

P.1RedesignProductionProcesses

E.1Entire

ProcessEducation

P.2UpdateMfg.

Equipment

P.4Acquire

NewTesting

Equipment

S.2Train

SupplierPersonnel

OutdatedTools

Poor VendorTraining

TemporaryEmployees

C.2IncreaseSales toExisting

Customers

P.2OptimizeInternal

Processes

P.2.1SupplyChain

Efficiency

EEmployeePolicies

P.1InventoryReorderPoint

P.2ProductionGuidelines

P.3ProductQuality

EPAStandard

100.33.45.A

7Production

IncreaseProductQuality

3Process

Improvement

«risk»Quality

Deviations

«cost»TrainingCosts

3.3.3Maintenance

Contracts

IncreasedNumber of

Competitors

RisingEnergyCosts

RisingInterestRates

April 21-23, 2008


StrategicDirection


DataArchitecture



Goal Model

QualityWidgetGoals

CCustomer

Goals

LLearning andGrowth Goals

FFinancial

Goals

PProcessGoals

F.2DiversifyIncomeStream

F.1Exceed

ShareholderExpectations

F.4IncreaseSales

Volumes

F.3ImproveMargins

C.2IncreaseSales toExisting

Customers

C.1DiversifyCustomer

Base

C.3Attract NewCustomers

P.3Develop

NewProducts

P.1DevelopResearch

Capabilities

P.4Target

ExpandingMarket

Segments

P.2OptimizeInternal

Processes

L.1Develop

EmployeeSkills

L.2IntegrateSystems

April 21-23, 2008


StrategicDirection


DataArchitecture



Business Architecture

Objectives•Describe the current baseline Business Architecture•Develop a target Business Architecture, describing the product and/or service strategy, and the organizational, functional, process, event, information, and geographic aspects of the business environment•Analyze the gaps between the baseline and target Business Architectures

April 21-23, 2008


StrategicDirection


DataArchitecture



QualityWidgets

Production ProductDevelopment

MarketingFinance FieldOperations

ProductionControl

PackagingInventoryManagement

AssemblyOperations

AssemblyWorker

Supervisor QualityInspector

OrganizationModel

April 21-23, 2008


StrategicDirection


DataArchitecture



Workflow Model

April 21-23, 2008


StrategicDirection


DataArchitecture



Data Architecture

Objectives•Define the major types and sources of data necessary to support the business, in a way that is understandable by the stakeholders•Define the data relevant to the enterprise so that they are complete, consistent and stable

April 21-23, 2008


StrategicDirection


DataArchitecture



*

1is placed by

places

1..*

1

*

1requests

is requested by

*

1..*is shipped from

ships

Customer

Order

Order Item

Product

Warehouse

- Capacity[1] : Floating point number

- Name[1] : Text

- Address[0..1] : Text

- FAX[0..1] : Text

- Name[1] : Text

- Telephone[0..1] : Text

+ Submit Order()

- Item Price[0..1] : Number (8)

- Description[0..1] : Text

- Name[1] : Text

- Quantity On-Hand[0..1] : Integer

- Reorder Point[0..1] : Integer

+ Replenish Inventory()

- Order Date[1] : Date

- Requested Ship Date[0..1] : Date

+ Approve()

+ Cancel()

+ Hold()

+ Log()

+ Receive()

+ Reject()

+ Release()

+ Schedule Production()

+ Ship()

Class Model

April 21-23, 2008


StrategicDirection


DataArchitecture




Objectives•Define what kinds of application systems are relevant to the enterprise, and what those applications need to do in order to manage data and present information to the system users•Describe the applications as logical groups of capabilities that manage data in the Data Architecture and support the business functions in the Business Architecture

April 21-23, 2008


StrategicDirection


DataArchitecture



System Model

April 21-23, 2008



StrategicDirection

DataArchitecture



Use Case ModelComplete Order

extends

Corrections

Valid Order

Priorities

Prioritized Order Priorities

OrderValidate Order

Prioritize Order

Prioritize SpecialOrder

Order EntryClerk

OrderManager

SalesManager

OrderEntry

System

April 21-23, 2008


StrategicDirection


DataArchitecture



StoryboardModel

"New

Cus

tom

er"

"Dem

ogra

phic

s E

nter

ed"

"Custom

er Established"

"Unacceptable Credit"

"Current Customer" "Invalid Order"

"Order Created"

"Incomplete Product ID"

"Product Selected"

CustomerBilling

InformationEntry

CustomerDemographics

Entry

CustomerSelection

OrderConfirmationGeneration

OrderEntry

OrderRejection

Generation

ProductSelection

April 21-23, 2008


StrategicDirection


DataArchitecture



Technology Architecture

Objectives•Define the major kinds of technologies needed to provide an environment for the System Architecture•Identify technology principles and platforms•Define the technology platforms and the distribution of data and applications•Establish a justification for the technology platforms by relating them to the business functions that will utilize them•Support future growth

April 21-23, 2008


StrategicDirection


DataArchitecture



Location Model

April 21-23, 2008


StrategicDirection


DataArchitecture



System Interaction Model

Central OfficeSales Office

Custom

er Data

OrderOrder

Sch

edul

ed O

rder

Scheduled O

rder

CorporateWAN

OrderFulfillmentSystem

OrderScheduling

System

OrderDatabase

A p p l ica tio n P la tfo rm

A p p l ica tio nS e rv ic e s

U s e r I n te rfa c eS e rv ic e s

O p e ra ti n gS y s te m S e rvi ce s

Order EntrySystem

D a ta b a s e S e rve r

D a ta b a s eM a n a g e m e n t

S ys te m (D B M S )S e rv ic e s

O p e ra tin gS ys te m S e rvice s

CustomerDatabase

April 21-23, 2008


StrategicDirection


DataArchitecture



Deployment Model

April 21-23, 2008


Using Enterprise Architecture

April 21-23, 2008


A Pile of Documents does not Makean Enterprise Architecture

“An Enterprise Architecture is a tool to help executives think about the organization as a whole. An Enterprise Architecture captures a wide variety of information, establishes relationships among the various documents and diagrams and stores all of the information together in a single repository, so that managers can then see the relationships, ask questions, identify problems, or run simulations to help make decisions about changes they are considering.”

Developing an Enterprise ArchitecturePaul Harmon, Business Process Trends

April 21-23, 2008


The Value of Enterprise Architectureis in the Relationships

Enterprise Architecture is more than a collection of the constituent architectures (Business, Application, Technology, and Information). The interrelationships among these architectures, and their joint properties, are essential to the Enterprise Architecture.

Enterprise-Wide IT Architecture (EWITA)

April 21-23, 2008


StrategicDirection


DataArchitecture



Association Matrices

April 21-23, 2008


Navigator

StrategicDirection


DataArchitecture



StrategicDirection


DataArchitecture



P.2.1.1DecreaseMaterialHandling

AcquireRaw

MaterialsFill Order Ship Order

ProcurementSystem

ProductionScheduling

System

AccountingServices

DirectoryServices

Electronic DataInterchange

Services

ImagingFunctions

April 21-23, 2008


Enterprise ArchitectureProvides Many Possibilities

StrategyModel

GoalModel

BusinessInteraction

Model

Location ModelCorporate Strategy


State Chart

Use Case Model

Operation Model

StoryboardModel

SystemModel

Communication Model

Software Development

Tools

Organization Model

Data Architecture

Deliverable Model

Logical Data Model

Physical Data Model

Data Modeling Tools

XMI Interface


Technical Architecture Model

Deployment Model

Infrastructure Management

Tools

XML Interface

Strategic Direction


Systems Architecture


Technical Tools

EA Associations

Process Validation by Simulation

Process Architecture

Business Process

Management Tools

Process Hierarchy

Workflow Model

Business Rules

XMI Interface

The model relationships to be analyzeddepend upon your specific objectives.

BPEL Interface

April 21-23, 2008


Enterprise Architecture Benefits

Process Effectiveness

Operational Efficiency

Opportunity Creation

Automation Efficiency

Current Future

Revenue Generation

Cost Reduction

April 21-23, 2008


Different Objectives will Emphasize Different Architectures




Development Efficiency

Current Future

Revenue Generation

Cost Reduction

Strategic Direction


System Architecture


System Architecture



Strategic Direction

April 21-23, 2008


Getting Started

April 21-23, 2008


Steps to Enterprise ArchitectureStep 1: Define “Enterprise” Scope

“Enterprise” Scope,

DirectionCurrent

April 21-23, 2008


Step 2: Define Strategic Direction

Strategic DirectionFuture


DirectionCurrent

April 21-23, 2008


Step 3: Define Current Architecture


System Architecture






DirectionCurrent

April 21-23, 2008


Step 4: Define Future Architecture

System Architecture





System Architecture



Automation Efficiency

Justification


DirectionCurrent

April 21-23, 2008


???

Step 5: Gap Analysis

System Architecture



Strategic Direction

Gap Analysis

Future


System Architecture


Process Improvements

System Enhancements

Infrastructure Changes


DirectionCurrent

April 21-23, 2008


Step 6: Strategy Evaluation

System Architecture



Strategic Direction

Gap Analysis

Future


System Architecture


Process Improvements

System Enhancements

Infrastructure Changes

+ +

Cost, Timing & Resources needed to achieve Strategic Direction

=


DirectionCurrent

April 21-23, 2008


Key Planning Decisions

What are my current EA

objectives and how will my

architecture be utilized in the

future?

April 21-23, 2008


Different Objectives Emphasize Different Architectures




Development Efficiency

Current Future

Strategic Direction


System Architecture


System Architecture



Strategic Direction

Revenue Generation

Cost Reduction

April 21-23, 2008


Key Planning Decisions

What are my current EA

objectives and how will my

architecture be utilized in the

future?

How much organizational commitment is

required for success?

April 21-23, 2008


Lessons Learned

SponsorshipExecutive sponsor(s) must demonstrate commitment at the very outset, and periodically throughout the program.

Management StructureBusiness management oversight of the EA process ensures alignment with the mission, vision and business strategy of the organization.

Enterprise Architecture ScopeDon’t commit to so much detail that you get lost in the weeds, but don’t scope the architecture definition at such a high level that there is limited value to the results.

April 21-23, 2008


Lessons Learned

Communication PlanDon’t assume that all members of an architecture team and key stakeholders understand the architecture scope and products the same. Communicate, communicate, communicate!

EA and Business MetricsIdentify and collect the data that can substantiate the impact of the EA on the enterprise and its business processes.

Leverage Thought LeadersMost thought leaders are able to explain the vision and purpose of the EA to all levels of stakeholders, and “sell’ the concept. Don’t assume that the thought leaders must or will come from management.

April 21-23, 2008


44

Thank You!

Brian JamesDirector of Product ManagementMetastorm

[email protected]

Optimizing Value to the Enterprise with Integrated Enterprise Architecture

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