Enterprise-architecture on purpose

the futures of business

Enterprise-architecture on purpose

Tom Graves, Tetradian ConsultingTOGAF Rome, April [email protected] / www.tetradian.com

10 Apr 2023 (c) Tom Graves / Tetradian 2010 2

Architecture’s ‘one idea’Architecture’s ‘one idea’:

Things work betterwhen they work together

with claritywith elegance

on purpose


What keeps architects awake at night?

What keeps IT-architectsawake at night?


Enterprise architecture can help

band

wid

th

securit

y

cloud

business-IT alignment

single point of truth

enterprise 2.0

disaster-recover planning

system optimisation

server

failover

applications integration

Enterprise architecture

can helpwith all of these

concerns


What keeps executives awake at night?

But what about beyond IT?What keeps executives

awake at night?


Executive #1: PR disasters

Executive #1:“Will we be hit

with another PR disastertomorrow morning?”


Executive #2: loss of market respect Executive #2:

“We’ve becomethe least-respected firm

in our industry- what can we do about it?”

- how do we get our market back?”


Enterprise architecture can help here too

How do we useenterprise architecture

to help withthose urgent business concerns?


Answer: architecture of the enterprise

Answer:Extend enterprise-architecture

to the whole enterprise

Whole-of-enterprise architecture


Each EA generation has had to extend the scope:

• ‘Classic’ EA starts with IT infrastructure• IT tech-architecture depends on

applications• Applications-architecture depends on

data• Data-architecture depends on business-

info need• Information-architecture depends on

business• Business-architecture depends on

enterprise• Enterprise-architecture defines the

context

Enterprise-architecture needs whole-of-enterprise scope


Define ‘enterprise’

[An enterprise is] an organisation or cross-functional entity supporting a defined business scope and mission.

An enterprise includes interdependent resources – people, organisations and

technology – who must coordinate their functions and share information in support

of a common mission or set of related missions.

FEAF definition


Current ‘enterprise’-architecture

Current ‘enterprise’-architecture?

10 Apr 2023 (c) Tom Graves / Tetradian 2010 1310 Apr 2023 13

An unfortunate kludge...

Classic scope of IT-based ‘enterprise architecture’

RequirementsManagement

G.Governance

and Compliance

E.Opportunities

andSolutions

C.Develop

Data / Apps Architecture

A.ArchitectureScope and Purpose

Preliminary:Framework,

Principles and Core Content

H.Architecture

Change Management

B.Develop

Business Architecture

D.Develop

TechnologyArchitecture

F.Migration Planning

BusinessArchitecture

Data Architecture

ApplicationsArchitecture


IT(~3% of enterprise)

Everything not-IT ?(~97% of enterprise)


Scope of IT in enterprise context

Whole-of-enterprise scope

IT is only a small subset (not even all of Information)

– three layers: Business, Integration (Common), Detail– three columns: People, Information, physical ‘Things’


Data Architecture




InformationIntegration-Architecture

Machine / AssetIntegration-Architecture

Information-ProcessDetail-Architecture

Manual-ProcessDetail-Architecture

Machine-ProcessDetail-Architecture

PeopleIntegration-Architecture


Scope of enterprise architecture

• Big-picture: vision, strategy, overview, ‘business of business’• Common: interfaces etc common to all implementations• Detail: implementation-specific, context-specificAligns well with service-oriented architecture for the whole enterprise


Data Architecture



Big-picture / BusinessZachman rows 0-2

Common / ConnectionZachman rows 2-3

Design / DetailZachman rows 4-6

[People] [Things][Information]


Business architecture vs enterprise architecture [1]

Business-architectureis the architecture of business

Enterprise-architectureis the architecture of the enterprise

(not solely the architecture of the enterprise-IT!)



We definean enterprise-architecture

for an organisation

about an enterprise



An organisation is boundedby rules and responsibilities

An enterprise is boundedby values and commitments


Business architecture (Business Model Canvas)Business architecture example

Business Model Canvas (http://businessmodelgeneration.com)

CustomerRelationships

KeyPartners

KeyActivities

ValueProposition

CustomerSegments

KeyResources

Channels

RevenueStreams

CostStructure


The organisation and the business

The organisation and the business

The organisation


Value-proposition is the centreValue-proposition is the centre

We need value-propositions for every stakeholder-group

CustomerRelationships

KeyPartners

KeyActivities

Value Proposition

CustomerSegments

KeyResources

Channels

RevenueStreams

CostStructure


Who is the architecture for?

We definean enterprise-architecture

for an organisation

about an enterprise

People – the nature of enterprise

Structure of the enterprise


Stakeholders in the broader ecosystem(includes non-clients, anti-clients, government, general community)

(enterprise is bounded by shared commitment to the vision)

Prospects

ClientsPartners

(must sharesame vision)

may also beclients orprospects

ServiceProviders

(must acknowledgeand align to vision)

may also beclients orprospects

Organization(bounded by rules)

(boundaries may be partly porous)


So how does this help our executives?

So how does thishelp our executives?



Executive #1:Real (if unofficial) business metric:

Number of daysbetween bad headlines

in the newspaper


Executive #1: PR disastersReal newspaper headline:

Agency fails again!

Ten Category-1* incidentsin just one suburbstill not resolvedin two months!

*Category-1: threat to life: must be resolved within 24 hours


Executive #1: PR disastersResult of (very urgent!) review:

Agency had resolved incident,in less than one hour

butRecords could not show this,

because ofweak application/data architecture


What actually happened?What actually happened?

Report

Report

Report

ReportReport Report

Report

Report

Report

Report

Ten incident-reports

Incident-status (resolved/not-resolved) is attached to reports



Reports can only be cleared when attached to incident-record

Incident

for one incident

Key-field: Date of Birth

Report

Report

Report

ReportReport Report

Report

Report

Report

Report




Incident

for one incident

Key-field: Date of BirthIncident was threat to a pregnant woman and unborn

childChild not yet born = no date-of-birth

Report

Report

Report

ReportReport Report

Report

Report

Report

Report




Incident

for one incident

Key-field: Date of BirthNo date-of-birth = can’t auto-create record

No manual override = can’t clear reports until child is born

Report

Report

Report

ReportReport Report

Report

Report

Report

Report




Architecture moral of this story:

Every automated systemneeds an option for manual override


Executive #2: Trust-disasters

Executive #2:

Reclaim trust

(for a bank)


Executive #2: Trust-disastersExecutive #2:

Direct source of lost trust

“The only metric that mattersis shareholder-value”

(an ‘undiscussable’ policy-directive)


Executive #2: Trust-disasters

(to tackle this one,we’ll need to look at the structureof enterprise-architecture itself)


The TOGAF maturity-model

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

Prepare and maintain foundations for architecture

(Initialpilot test)







(Start EAdev’ment)


(Initialpilot test)








Level 1:Ad-hoc


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed

Level 5:Optimised


(Initialpilot test)


Executives and enterprise architecture

Executiveswant to know about

“What business are we in?”(EA stage #1)

and

Resolving ‘pain-points’(EA stage #5)

(everything else is just detail...)


The structure of enterprise-architecture

but current ‘enterprise-architecture’doesn’t serve either of those needs well


TOGAF scope in maturity-model








(Initialpilot test)









(Initialpilot test)








Level 1:Ad-hoc


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed


(Initialpilot test)








Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed

Level 5:Optimised


(Initialpilot test)

TOGAF 8(IT-architecture only)

TOGAF 9(mostly IT-architecture)

TOGAF calls this ‘business-architecture’(but doesn’t explain how to do it...)


The structure of enterprise-architecture

For this executive’s trust-problemwe need to work on EA step #1:

“Know your business”


Business architecture vs enterprise architecture [2]Quick reprise on organisation versus enterprise:

We define an enterprise-architecturefor an organisation about an enterprise

An organisation is boundedby rules and responsibilities

An enterprise is boundedby values and commitments


EA step #1: ‘Know your business’Two key themes for ‘Know your business’:

‘Get everyone on the same page’(functional business model)

and

Relationships betweenorganisation and enterprise

(vision, role, mission, goal)


Functional business modelA Functional Business Modelhelps to bring everyone

‘on the same page’

to increase trust, respectand communication

within the organisation

in this case, we created a two-tier function-modelto enhance communication

at executive/senior-management level


Functional business model (tier-1)

ContactCustomer

FulfilOrders

Manage the Business

Support the Business

AcceptOrders

DeliverOrders

ProcessOrders

Gets everyone on the same page


Bank functional model (tier-1)

ContactCustomer(channels)

Customer Relations(fees etc)

Manage the Business(strategy, planning, direction)

Support the Business(HR, facilities, IT, development)

AcceptTransactions(front-office)

VerifyTransactions

(risk, audit)

ProcessTransactions

(back-office)

Gets everyone on the same page(literally – we put the workshop participants’ photos on it)


Functional model (example tier-2)

Provide Operations Support

Manage Workforce Improve Practice

Provide Statutory Long-Term Client Services

Provide Statutory Intervention Services

Regulate NGO Provision of Services

Provide Community-Development Services

Manage Government and Public Relations

Manage Corporate Administration

Manage Resources Manage Information

Support Frontline Services

Research, Prepare, Plan

Monitor and Improve

Coordinate

Educate and Train

Fund to Deliver

Deliver

Contact

Research, Prepare, Plan

Monitor and Improve

Coordinate

Educate and Train

Fund to Deliver

Deliver

(this is for a different organisation, but it illustrates the same principles of layering)


Enterprise visionThe vision is a common themethat links everyone

in the extended-enterprise

to increase trust, respectand communication

beyond the organisation

in this case, we worked with the teamto create a preliminary vision

for the bank in relation to its enterprise

The bank and its extended-enterprise

Structure of the bank’s enterprise


extended enterprise – ‘the community’

active enterprise – ‘the market’’

Prospects

Clients

ServiceProviders

Partners

Bank

ValuePropositio

ns

KeyActivities

Customer Relations

KeyResources

Channels

Cost Structure Revenue Streams


Vision as a link to enterprise• Ends: the results we

wish to achieve• Means: the methods

and activities by which we will achieve those Ends

• Vision and Goal are Ends• Mission and day-to-day

activities are Means• Role is the chosen

bridge between Ends and Means

• Organisational roles bridge activity and Goal, or Goal and Mission

Means

Goal

Mission

Role

Vision

activity

Ends

Vision: “better financial futures”


Would make sense to every enterprise stakeholder:

• Credit-clients want better financial futures for self and/or family

• Business-clients want better financial futures for their business

• Government wants better financial futures for all

• Even the anti-clients would agree on thisand• The bank wants better financial futures

for itselfThe vision defines the enterprise – a stable

anchor


Executive #2: resolving the trust-problem This vision-phrase

“better financial futures”

was used as the key reference-anchorfor subsequent work on

organizational-development,market-developmentcommunity-relations

and internal architectures


Architecture’s ‘one idea’Architecture’s ‘one idea’:

Things work betterwhen they work together

with claritywith elegance

on purpose


Some suggested resourcesBooks by Tom Graves (www.tetradianbooks.com):• Real Enterprise Architecture: beyond IT to the whole enterprise• Bridging the Silos: enterprise architecture for IT-architects• The Service Oriented Enterprise: enterprise architecture and viable

systems• Doing Enterprise Architecture: process and practice in the real enterprise• Enterprise Architecture in Real-Time: strategy, sensemaking and

solutions• SEMPER and SCORE: enhancing enterprise effectiveness• Power and Response-ability: the human side of systems

Books by other authors:• Lost in Translation (Nigel Green et al) (www.LIThandbook.com)

– introduces ‘VPEC-T’ – a path to improved communication between business and IT

• Enterprise Architecture as Strategy (Ross, Weill et al)– describes business-oriented role for enterprise architecture

• Business Model Generation (Osterwalder et al) (www.businessmodelgeneration.com)– describes systematic TOGAF-compatible process to model business drivers etc
