Rethinking Enterprise and Infrastructure Architecture

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    advising on IT-business

    mwdmacehiterward-dutton

    Rethinking

    enterprise andinfrastructurearchitecture

    MicrosoftInfrastructure

    ArchitectForum

    24 October 2005

    Neil Macehiter, Partner

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    Key messages for today

    IT-business alignment has never been so important

    Alignment must be pursued in the context ofunderstanding business processes, priorities

    Service-orientation is not just for applications

    Contracts arent just about function: they encapsulateand communicate business priorities to IT deliveryorganisations

    Enterprise architecture needs to be more inclusive,sophisticated

    IT governance models must take all this into account

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    Agenda

    Business and IT: new tensions

    IT-business alignment

    Alignment principle #1: service-oriented IT

    Alignment principle #2: understandingbusiness processes and their priorities

    Enterprise architecture must reflect IT-

    business alignment principles A governance model for service-oriented IT

    Recommendations

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    A brief introduction to MWD

    Strategic advice and consulting

    Focus on issues concerning IT-business alignment

    Driving more business value out of enterprise IT

    Not about the nuts and bolts of individual technologies

    Core: two highly experienced industry analysts /practitioners

    Sun, Oracle, Sybase, Ovum, Deloitte Consulting, etc

    Based in UK, Europe-wide focus

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    advising on IT-business

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    Business and IT:

    new tensions

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    Business pressures are drivingchange in new ways

    Globalisation

    Customers, partners, suppliers and competition

    Connectedness driving sophisticated value chains

    Transparency

    Industry regulations, consumer pressure andcompetition driving openness

    Service focus

    Differentiation and shareholder value increasinglyderived from service experience

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    business/technology changeprojects/scenarios

    Managing and proving regulatorycompliance

    Refinement of approaches to business andtechnology outsourcing

    Integration of processes horizontallyacross organisations

    Integration of processes, products andofferings between organisations

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    support these types of changeseffectively

    Technology integration is costly, risky andcomplicated

    Information is everywhere, but getting access

    to the right information at the right time is verydifficult

    Modifying system behaviour takes too long andchanges are difficult to communicate andimplement effectively

    Much of IT system and operations expenditureis bloated and fixed - operations run withexcess redundant capacity

    result: IT seen as a cost centre, not a source of business va

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    Dynamic, collaborativeprocesses (productinnovation, marketing,strategy setting, etc)

    Stable, predictableprocesses (accounting,

    order fulfilment, HR,logistics, etc)

    Web user experience(increasing numbers ofERP/CRM applications,content management,etc)

    Desktop userexperience (office

    productivity,communication/

    collaboration, etc)

    Unstructuredinformation (officedocuments, web contentetc)

    Structured information(customer records, order &

    fulfilment records,accounts, etc)

    management, process support anduser experience

    Information management

    Process support

    User experience

    Strongheritage of

    management; BUT tends

    to beapplication-

    specific

    Littleheritage of

    formalmanagement; storage isfragmented

    Strongheritage of

    management; BUT tends

    to beapplication-

    specific

    Littlestructuredautomated

    supportfrom IT

    Familiar,highly

    interactiveBUT tends

    to beapplication-

    specific

    Open andaccessible

    environments but

    usability can

    be poor

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    IT-business

    alignment

    b i li l i l

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    IT-business alignment: multipleangles

    IT

    Business

    Changeimplications

    Changecapabilities,limitations

    Investmentin capability

    Deliveryof value

    not just about building stuff that the business will use

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    A common language is theessential starting point

    IT

    Business

    ?

    Investment prioritised in

    terms of business need

    Systems that delivervalue to the business

    Clear direction from thebusiness about focus,strategy

    Collaborative approachto implementing businesschange

    A common, agreedrepresentation ofbusiness activity,goals

    +A common, agreedview of how currentand future IT providesstructured support tothe business in thiscontext

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    Alignment demands that ITbecomes a service provider

    Business

    IT

    Busin

    essproce

    ss

    Busin

    essproce

    ss

    Busin

    essproce

    ss

    Busin

    essproce

    ss

    Busin

    essproce

    ss

    Managed

    IT

    serviceManage

    dIT

    service

    Managed

    IT

    serviceManage

    dIT

    service

    Managed

    IT

    service

    A P P L I C A T I O N S & I N F O R M A T I O N

    I N F R A S T R U C T U R E

    B U S I N E S S S T R A T E G Y

    Business processes

    form the foundation

    of a common

    language

    IT defines and delivers

    business level services

    which support the rightprocesses, the right way

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    Alignmentprinciple #1:

    understandingservice-oriented

    IT

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    So what is an IT service?

    CRMdatabase

    Provideautomatedsupport formy sales

    force

    Updatecustomerdetails

    Line of businessperspective

    IT operationsperspective

    Developerperspective

    d i li d i h

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    Managed IT services aligned withbusiness processes

    Lifecycle servicesManaging the lifecycles of business functions and infrastructure

    Business function servicesAutomating business functions

    Infrastructure services

    Providing the platform

    Users experiencesof managed IT service

    C b i bli i f

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    Contracts bring obligations forsuppliers and consumers

    Message FormatMessage Sequence

    Functions

    SecurityResponse TimeThroughput

    Usage CostLiability Clauses

    Trust

    FunctionalTerms

    QoS

    Terms

    Commercial

    Terms

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    Alignmentprinciple #2:

    understanding

    businessprocesses andtheir priorities

    A i f b i

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    A universe of businessprocesses [1]

    E E E E E

    M M M

    S

    Executionprocesses instanceshandle particular unitsof work withinbusiness activities

    Managementprocesses instancesoversee instances ofexecution processes

    Strategy processes instances overseeinstances ofmanagementprocesses

    hierarchy of business processes

    A i f b i

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    A universe of businessprocesses [2]

    E

    E

    E

    M

    M

    S

    ontribution to competitive differentiation

    E

    E

    E

    M

    M

    S

    Non-differentiating

    (focus should be on efficiency)

    Differentiating

    (focus should be on flexibility)

    Ob ti th t f

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    Observations on the nature ofbusiness processes

    E

    E

    E

    M

    M

    S

    E

    E

    E

    M

    M

    S

    Increasedstructure,predictability

    Increasedcollaboration,ad-hocnature

    Non-differentiating

    (focus should be on efficiency)

    Differentiating

    (focus should be on flexibility)

    I li ti f b i f ti

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    Implications for business functionservice design

    Levelof

    process

    abstr

    action

    Low

    High

    Non-differentiating(focus should be on efficiency)

    Differentiating(focus should be on flexibility)

    Business activity role

    Strategybusiness processes

    Managementbusiness processes

    Executionbusiness processes

    Activity functions

    Technical functions

    Reusabilityimportanceincreases

    Opennes

    s,flexibil

    itydema

    ndsincre

    ase

    Efficiencydem

    andincre

    ases

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    Enterprisearchitecture

    must reflect IT-

    businessalignmentprinciples

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    The real world

    From Towards

    Build, or buyvs. build

    Applicationimplementation

    Buy AND buildAND integrate

    Back officeBusiness area investment

    focusFront office and

    beyond

    Personalproductivity

    desktop

    IT access environmentProductivitydesktop +

    global access toresources

    Data processingTechnology innovation

    focus

    Communication, collaboration,

    integration

    Older approaches fail to capture reality re:

    integration, communication, collaboration,su l com lexit

    Outsourcingvs. in-house

    delivery

    Capability supply Multi-sourcing

    A t diti l i f EA [1] Th

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    A traditional view of EA [1]: TheZachman framework

    Source: John Zachman, ZIFA

    A traditional ie of EA [2]

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    A traditional view of EA [2]:TOGAF ADM

    Source: Open Group

    The good and the bad of EA

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    The good and the bad of EAframeworks

    The good The frameworks give us a

    useful language forcommunicating and sharing

    ideas about how IT systemscan/should support businessneeds

    Methodologies like theTOGAF ADM give solid

    templates for EA processwork

    Starting to consider moredynamic aspects of EA

    as-is, to-be, vision views

    The bad The roots of most

    frameworks are in thecreation or change oftransactional informationprocessing systems

    The real world of IT ismuch more ugly andcomplicated

    Still documentation-oriented not focused onthe process of architectureevolution & governance

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    Business process

    Applications

    Data

    The challenge

    Activities, processesThe business

    real world doesnt decompose nicely and IT isjust about things you build in-house

    rov ng structure support or us ness

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    rov ng structure support or us nessprocesses means understanding scope &scale of interactions

    From

    Data design tightly coupled toapplication design, and

    application design to userrequirements very restricted

    view of process needs

    B

    us

    in

    e

    s

    s

    p

    ro

    c

    e

    s

    s

    Towards

    B

    u

    s

    in

    e

    s

    s

    pr

    o

    c

    e

    s

    s

    Loosely-coupled resourcesprovide services which are

    designed to support theinteractions that take placewithin a business process

    EA h t id b i

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    EA approaches must consider businessprocess support more broadly

    B

    u

    s

    in

    e

    s

    s

    p

    ro

    c

    e

    s

    s

    Transactionalservices

    Informationservices

    Communication& collaboration

    services

    Support scenario:a mesh of

    interactions

    e have to model more than just transactional applications

    An alternative enterprise

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    An alternative enterprisearchitecture model

    Business architecture- activities, entities- goals, strategy, differentiation

    Process architecture

    -roles, flows, resources

    Business function service architecture

    Infrastructure architecture- security, identity management- resource management

    Transactional/ information

    management

    Analytics,discovery,

    reporting

    Communication,

    collaboration

    Historically thefocus of

    architecture hasbeen here

    Historicaldisconnect here

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    Enterprise

    Architecture andIT Governance

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    Enterprise architecture

    Needs to be driven inpartnership with thebusiness

    IT

    Business

    Lifecycle

    Business function

    Infrastructure

    Functional QoS

    Commercial

    Should consider all thedifferent views ofservice provision not

    just functional

    considerations

    Should follow a service-orientedmodel but one which is aboutmore than application functionality

    These perspectives are the key

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    These perspectives are the keydimensions for IT governance, too

    Investment

    Delivery

    Change

    Func

    tional

    QoS

    Commercial

    Business function

    Infrastructure

    Lifecycle

    Contract aspects

    S

    ervice

    types

    Rela

    tionshi

    ps

    Business processes, priorities

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    governance should be consideredtogether

    Investment

    Delivery

    Change

    Func

    tional

    QoS

    Commercial

    Business function

    Infrastructure

    Lifecycle

    Contract aspects

    S

    ervice

    types

    Rela

    tionshi

    ps

    Businessarchitecture

    Process architecture

    Captures theiterative process

    of architecture change

    Infrastructurearchitecture

    Business fnarchitecture

    TX/IM A/R C/C

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    You can use the model to

    Identify strengths and weaknesses in yourcurrent IT governance approach

    Identify the contributions made byparticular technologies to businessobjectives

    As above for IT vendors

    Consider the dimensions that affectsourcing decisions

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    A worked

    example: therole of DSI

    DSI: the design for operations

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    DSI: the design for operationsapproach today

    Investment

    Delivery

    Change

    Func

    tional

    QoS

    Commercial

    Business function

    Infrastructure

    Lifecycle

    Contract aspects

    Service

    types

    Rela

    tionshi

    ps

    Capability today isin designingbusiness function

    services withexplicit referenceto runtime QoSdirectives andvalidate them

    against a staticinfrastructuremodel

    DSI: with planned Longhorn

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    DSI: with planned Longhornwave technology

    Investment

    Delivery

    Change

    Func

    tional

    QoS

    Commercial

    Business function

    Infrastructure

    Lifecycle

    Contract aspects

    Service

    types

    Rela

    tionshi

    psWith plannedfuture capabilities,design-time QoSdirectives form thebasis of a live

    model which isinterpreted andmaintained byserverinfrastructure to

    perform goal-orientedinfrastructuremonitoring andmanagement

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    A call to action

    For architecture to contribute to IT-business alignment,you have to follow a holistic approach

    Not just applications but infrastructure and lifecycle services

    Proactively consider the links between all three

    Look for technologies and patterns which support the linkages

    Set up an architecture governance practice whichdoesnt just allow change, but promotes it

    Not a project-focused approach but an ongoing process withsenior level sponsorship

    Close links to business stakeholders and their priorities

    Think about using contracts, policies and processes as thefoundation of a common language

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    mwdmacehiterward-dutton

    Thank you