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Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc.

Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

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Page 1: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

Enterprise Architecture

for Business Agility

Charles StackCEO and FounderFlashline, Inc.November 18, 2004

© 2004 Flashline Inc.

Page 2: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Turning IT Cost into Business Value

Agenda

Why

• Important, enduring, and complex

• Alignment and governance

• Cities, time and space

What

• FEA, Zachman, DoDAF, BEA, TEAF, Meta

• Maturity Models

• EA as IT Governance

• EA as Urban Planning

How

• Planning, sponsorship, implementation, metrics, controls, and common services

• Asset Management

Page 3: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Important

Direct Phone systems Web sites Email VRU

Indirect Internal systems Customer service Increasingly all business rules

are being embodied in our software systems

Partners Supply chain systems Flexible partnering systems

“We are our software”

Organizations today are defined by their software.

Page 4: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Enduring

“Not the 90’s” Software Asset Management Long-lived platforms

Java .Net Web Services

Hardware independence = Migrate forever

Software doesn’t wear out Valuable intellectual property Software transcends developers Cost of duplicative systems

Cut maintenance by 20% “Write Less Software”

Page 5: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Complex

Complexity as primary constraint on SD 1000x increase across 5

dimensions Interface Stakeholders Size

27k vs. 39k VisiCalc vs. eula10r.chm

Platforms - IBM Network

Encapsulation 7+2 Methods and Properties

Managing complexity requires a plan

Page 6: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Key Challenges

Regulatory requirements SarbOx

Risk management True CRM Cost reduction

IT reinvents itself daily Rampant duplication

AgilityArchitecture planning and standards compliance reduce IT budget expenses by an average of 30%, META Group

Page 7: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Cities of Software

Building Architecture versus Urban Planning Building = Static/waterfall City = Dynamic/iterative Building Standards Arch. Review Board Zoning – pc or mainframe Variances Health/Safety inspections Common Services - Roads,

utilities, birth certificates, etc

Page 8: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

EA Definitions

1. An iterative process1. Driven by business strategy2. Leveraging technology trends

2. Holistic expression of enterprise’s business, information, application, and technology strategy

3. If it gets so complex, you can’t remember how it all works, you have to write it down . . . ARCHITECTURE

4. If you want to connect it with the work of others, they need to know how it fits . . . ARCHITECTURE

5. If you want to change how it works, you start with what you have written down . . . ARCHITECTURE

Page 9: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Alignment

EA governs IT alignment with business goals Doing things that add value Identify business goals Require that EA elements support business goals

Page 10: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

GovernanceBa

nkin

g

Card

s

Capi

tal

Fina

ncia

l Ser

vices

ArchitectureDomain:

Global ConsumerGroup

Project Scope & RequirementsProject Profile

ProjectPortfolio

Shared Services& Assets

Business Projects

Architecture RequirementsArchitecture Blueprint

Doing the right thingsthe right way…

Getting things done well and deriving benefits…

Feedback, Analytics & Compliance Monitoring

Page 11: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

EA Spans Time

Without EA only short term goals are met To the long term detriment of the enterprise The 6:00 PM Elevator

Page 12: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

EA Spans Space

Without EA only local concerns are met Resulting silos reduce efficiency EA required for distributed development teams EA required for outsourcing

“Don’t outsource the savings”

Page 13: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

EA Enables Agility

Web Services EA role is to focus on

interstices Encapsulation at the LOB

level Fractal encapsulation

Spin Together/Spin Apart

Page 14: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

EA Frameworks - Summary

A plan by any other name… FEA Zachman IAA BEA DoDAF TEAF History, Goals, Outline “But, EA is a process not a

document!”

Page 15: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

FEA – Federal Enterprise Architecture

History 1996 Clinger-Cohen

Goals Governance and Efficiency

Taxonomic Reference Models BRM, SRM, TRM, DRM, SRM

Enforcement OMB Exhibit 300 GAO Maturity Audit

Page 16: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Zachman

History IBM – Business Systems Planning 1987 - "A Framework for Information Systems

Architecture", IBM Systems Journal Goals

Organizational Scheme 6x6 Matrix

Why, who, what, how, where, and when Scope, Business Model, System Model, Technology Model,

Components, Working System www.ZIFA.com

Page 17: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Page 18: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

BEA – U.S. Department of Defense

History DoD Business Enterprise Architecture Augments DoDAF

Goals Focused on financial accountability Eliminate duplication and redundancy Manage knowledge as a corporate asset Share and reuse

4,000+ Compliance Requirements IBM Global Services

Page 19: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

DoDAF - U.S. Department of Defense

History C4ISR

Goals 3 Views 26 elements Operational View

7 process groups Systems View

Links operations to technology

Technical View 200 pp standards

Operational View ‘To-Be’

Page 20: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

TEAF - U.S. Treasury

History 2000 replaces 1997 TISAF 150 pp Mitre Corp

Goals 4x4 grid of Views x

Perspectives (roles) Best of the Bunch More process focused

Page 21: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

TEAF Implementation Model

ObtainExecutive

Buy-In andSupport

EstablishManagement

Structure and Control

Define anArchitecture

Processand Approach

Develop Baseline Enterprise

ArchitectureDevelopTarget

EnterpriseArchitecture

Develop theSequencing Plan

Usethe

EnterpriseArchitecture

Maintain the EnterpriseArchitecture

Section 3.1

Section 3.2

Section 4

Section 5.2

Section 5.2

Section 5.3

Section 6

Section 7

Controland

Oversight

Controland

Oversight

Page 22: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Meta Group

Meta Group, Inc. History Goals

Business alignment Agility Lower costs Reduce duplication

Common requirements vision Conceptual architecture Business architecture (EBA) Information architecture (EIA) Solution architecture (ESA) Technical architecture (ETA)

Page 23: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

EA Maturity Models

CMM Standard 0-5 Levels

Federal – GAO 116 Agencies rated and

ranked Aware, Building Program,

Developing Assets, Completing Assets, Leveraging Assets

NASCIO None, Informal,

Repeatable, Defined, Managed, Continuous

META Group

Page 24: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Execution

Planning

Portfolio Management

Portfolio Management

Enterprise ArchitectureEnterprise

Architecture

Project Management

Project Management

Software Asset Management

Software Asset Management

Enterprise Architecture and Governance

Done Well

Benefits

The Right

Things

The Right Way

Page 25: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Enterprise Architecture Assets

Architectural assets Process

RUP, CMM Platform Data, Application,

Component Service, Security,

Interface Goals for each asset

Benefit of establishing a standard

Glossary Definitions of key

terms

Page 26: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Software Coding and Software Assets

0%

50%

100%

Time

Coding

Assets

Open SourceLibraries

OutsourcingLanguage Functions

Web Services

Components

Patterns/MDA

Page 27: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Managing EA Assets

Publishing EA assets Registry Ease of access Tracking

Managing compliance Standards Projects Reviews

Measuring benefits Quality Value ROI

Page 28: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Planning

Define goals Establish success

metrics Implement processes Project Plan Stakeholders Implement Iterate

Page 29: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Executive Sponsorship

Sponsorship required for Business goals input Alignment Funding Selecting metrics

EA benefits explained Cost reductions Efficiency increases New business

opportunities Marketing and PR tasks

Page 30: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Levels of Control

Levels of Control No Standard Recommended Standard

Voluntary compliance Mandatory Standard

Degrees of compliance Recommended

Implementation Fail/succeeds on merits

Mandatory Implementation Compliance w/ variances

Iterative dynamic process

Page 31: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Common Services

Shared Services Single most effective

practice Infrastructure

Start low and work up Web Services

New IT plumbing Commoditizes all hardware

platforms

Page 32: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Compliance Models

Review Architectural Board of

Review Audit

Periodic, selective, punitive

Presumptive We’re all adults here

Variance With Business Case With or without

oversight

Page 33: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Enterprise Architecture Grid

Scope Business CaseType Name Recommended Mandatory Recommended Mandatory

SD Process RUP R eview B oard Enterprise Productivity, predictabilitySecurity LDAP A udit Business Unit securityServer O/S Linux A Enterprise cost savings

Windows 2000 A Non-Critical agilityOS/390 RB Business Unit reliability

Server Platform Intel/AMD P resumed Enterprise cost savingsIBM 390 RB Enterprise reliability

Database Oracle RB Enterprise information integrityMySQL RB Non-Critical cost savings

Application Server Websphere A Business Unit reliabilityTomcat P Enterprise cost savings

Standards ImplementationsElement

Page 34: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Waivers

Some waiver process required Needs renewal process

“Waived through 11/1/2006”

Ongoing enforcement Part of Architectural Review

process

Page 35: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

EA Registry

Design then deploy Registry Benefits

Visibility Governance Analytics

“Too many EA documents end up gathering dust on a shelf”

TEAF Deployment Diagram

Page 36: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Case Study - Fortune 500 Retailer

Challenge Fast growth and acquisitions resulted in highly agile but

inefficient IT process Use EA to bring agile efficiency

Solution Creating Common Services Group Building EA Framework Using central registry to distribute framework and services

throughout enterprise Results

Agility with efficiency Stay tuned…

Page 37: Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc

© 2004 Flashline, Inc.

Case Study - Fortune 500 Financial Services

Challenge Reduce architectural complexity grown through multiple

M&A activities. Maximize scalability and interoperability, and reduce

maintenance issues through a consistent architecture. Solution

Create a single, cohesive enterprise architecture. Incorporate reuse and governance into EA and development

practices. Centrally driven software design review process.

Results EA will improve scalability, agility and interoperability. Projects $40 million savings through reuse.