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Tuesday, May 10, 2022 1 Enterprise Architecture Implementing an effective Enterprise Architecture From C-suite to the front lines Leo Shuster Director, IT Architecture Nationwide Insurance

Implementing Effective Enterprise Architecture

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Explore and understand how to implement and sustaining an effective Enterprise Architecture program

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Page 2: Implementing Effective Enterprise Architecture

April 10, 2023 2 Enterprise Architecture

Disclaimers

Many competing perspectives and approaches to Enterprise Architecture exist – this is just one of them

There is no single, agreed upon Enterprise Architecture standard

Information presented here will not make you an instant Enterprise Architecture expert

This presenter should not be held liable for any misconceptions, misrepresentations, or mistakes you make in your organization based on the information presented here

Page 3: Implementing Effective Enterprise Architecture

April 10, 2023 3 Enterprise Architecture

The Architecture Continuum

Enterprise Architecture

(City)

Portfolio Architecture

(Street)

System Architecture

(Building)

If enterprises were cities…

Architecture Continuum

Page 4: Implementing Effective Enterprise Architecture

April 10, 2023 4 Enterprise Architecture

Enterprise Architecture & the Enterprise

Enterprise Strategy

Fire and hope!

Enterprise Architecture

Business Operating Environmentand IT Infrastructure

TransitionPlanning

Group IT Architecture Definition

Infrastructure Design & Planning

Establish IT Competency Centre

End User Infrastructure Upgrade

Inter-company WAN (imple.)

Outsource New Core systems

Outsource Helpdesk and Desktop

Outsource network

Outsourcing Initiatives

Competency Centre Initiatives

Electronic Service Delivery

Data Warehouse

Customer Service Centre

Recognise and report problem

Diagnose problem

Escalate problem

Analyse problem

Log Problem

Close problem

Update customer

Resolve problem

Bypass and/or fix

Config. Management

Operations Management

Change Management

Call management

Operations management

Update customer

Perf and Capacity management

WAN infrastructureIntranet/Mail infrastructure

Customer ServiceData Warehouse

Graphical IS

B.U.B.U.

Document Management

Systems Management

Middleware

NETWORK

Planning/Design Initiatives

Infrastructure Initiatives

OtherBusiness Unit SystemsKiosksTelemetry systemsetc

Initiatives focused on migrating to the new delivery environment

Planning/DesignInfrastructureOutsourcing

Initiatives focused on implementing the vision

Planning/designIT Competency centre

Key Group Decision Points

ArchitectureGovernance

Bus Architecture IT Architecture

AEICorporate

YankeeGroup

SaturnGroup

YarnDivision

KnitsDivision

SenecaPlant

RaleighPlant

CashManagement

Shipping

Accounting

ComponentDesign

Yarn Buying

Order Entry

ComponentScheduling

YarnDyeing

Inventory

AssortmentPlanning

ComponentKnitting

Tagging & Packing

Business Structure

Business Locations

Classically, EA is the “planning” function between strategy formulation and delivery…

Pro

gra

m

focu

sE

nte

rpri

se w

ide

focu

s

Strategy

Planning

Designand

Delivery

Change Programs

Soln Outline Macro Design Micro Design Devt, etc.

Program ArchitectureGroup IT Architecture Definition

Infrastructure Design & Planning

Establish IT Competency Centre

End User Infrastructure Upgrade

Inter-company WAN (imple.)

Outsource New Core systems

Outsource Helpdesk and Desktop

Outsource network

Outsourcing Initiatives

Competency Centre Initiatives

Electronic Service Delivery

Data Warehouse

Customer Service Centre

Recognise and report problem

Diagnose problemEscalate problemAnalyse problemLog Problem

Close problemUpdate customer Resolve problem

Bypass and/or fixConfig. Management

Operations ManagementChange Management

Call managementOperations management

Update customer

Perf and Capacity management

WAN infrastructureIntranet/Mail infrastructureCustomer ServiceData Warehouse

Graphical IS

B.U. B.U. Document Management

Systems ManagementMiddleware

N E T W O R K

Planning/Design Initiatives

Infrastructure Initiatives

OtherB u sin ess U n it

S ys tem s

K io sks

Te lem etry sys tem s

etc

Initiatives focused on migrating to the new delivery environment

P lann ing /D es ign

In fras truc tu re

O u tsou rc ing

Initiatives focused on implementing the vision

P lann ing /des ign

IT C om pe tency cen tre

Key Group Decision Points

Soln Outline Macro Design Micro Design Devt, etc.

Program ArchitectureGroup IT Architecture Definition

Infrastructure Design & Planning

Establish IT Competency Centre

End User Infrastructure Upgrade

Inter-company WAN (imple.)

Outsource New Core systems

Outsource Helpdesk and Desktop

Outsource network

Outsourcing Initiatives

Competency Centre Initiatives

Electronic Service Delivery

Data Warehouse

Customer Service Centre

Recognise and report problem

Diagnose problemEscalate problemAnalyse problemLog Problem

Close problemUpdate customer Resolve problem

Bypass and/or fixConfig. Management

Operations ManagementChange Management

Call managementOperations management

Update customer

Perf and Capacity management

WAN infrastructureIntranet/Mail infrastructureCustomer ServiceData Warehouse

Graphical IS

B.U. B.U. Document Management

Systems ManagementMiddleware

N E T W O R K

Planning/Design Initiatives

Infrastructure Initiatives

OtherB u sin ess U n it

S ys tem s

K io sks

Te lem etry sys tem s

etc

Initiatives focused on migrating to the new delivery environment

P lann ing /D es ign

In fras truc tu re

O u tsou rc ing

Initiatives focused on implementing the vision

P lann ing /des ign

IT C om pe tency cen tre

Key Group Decision Points

Enterprise Architecture = “the city plan”

System Design= “the buildings”

Strategy = “the city’s purpose & goals”Technology

AvailabilityBusiness

OpportunityBus Strategy IT Strategy

“Do the Right Things”

“Do the Right Things Right”

Page 5: Implementing Effective Enterprise Architecture

April 10, 2023 5 Enterprise Architecture

What is Enterprise Architecture?

Simple definition:Enterprise Architecture is a strategy to minimize IT and business mistakes

Page 6: Implementing Effective Enterprise Architecture

April 10, 2023 6 Enterprise Architecture

Enterprise Architecture Program

Cost focus Value focus

EA is a journey, often non-linear Tactical, opportunistic Strategic, systematic

Cost Reduction What do we have? Need all of it? Consolidate to

reduce costs? Desire for impact

analysis

Standardization Develop standards

and recommended best practices (e.g. technology stacks, server platforms)

Seeking repeatability Encourage IT

evolution Focusing on IT scope

only

Broaden Scope Meet business needs

by linking IT to business

Managing architectures outside IT

Increasing focus on business architecture and business processes

Realizing Strategy Develop business

strategy Value propositions,

capabilities, resources Refine into to-be Compare to as-is Create transition plan Execute

Enterprise Architecture has to be treated as an ongoing program that continues to evolve together with the organization

Page 7: Implementing Effective Enterprise Architecture

April 10, 2023 7 Enterprise Architecture

Determining Your Path

Self awareness

Standardized technology

Optimized core

Pervasive governance

EA MaturityLow High

Str

ateg

icTa

ctic

alIT

/ B

usi

nes

s Im

pac

t

Laying out a vision of the Enterprise Architecture Program’s maturity is one of the most important first steps in ensuring its success and longevity

* Based on MIT Sloan Center for Information Systems Research EA

maturity model

• Self awareness– Recognizing the problem– IT leadership starts the

EA program• Standardized

technology– Establishing technology

standards– Moving to a shared

infrastructure model• Optimized core

– Moving from local to enterprise view of technology assets

– Standardizing core business processes

– Establishing core technology assets

• Pervasive governance– Establishing effective

centralized EA governance

– Federation of EA

Page 8: Implementing Effective Enterprise Architecture

April 10, 2023 8 Enterprise Architecture

Enterprise Architecture Maturity Model

• Stakeholder Support and Involvement– The involvement and support of the primary

stakeholders– Includes all EA stakeholders

• Team Resources– Skills and talent level of Enterprise Architects– Tools and support available

• Architecture Development Method– Process to define architecture goals and outcomes– See EA Lifecycle

• Organizational Integration– Integration with other processes and

organizations• Deliverables

– Existence of actionable EA deliverables– Alignment with EA lifecycle

• EA Governance– Formally established EA Governance– Broad visibility across the organization

• Metrics– Set of clearly defined metrics– Broadly understood and communicated

• Stakeholder Perceptions– Perceived value of the EA program by the

stakeholders– Indication of success or failure

Many EA Maturity Models exist. Choose the one that works best for you and adopt it. It will provide a prescriptive guidance and define the levers you can pull to maximize EA maturity.

EA Maturity Dimensions

Page 9: Implementing Effective Enterprise Architecture

April 10, 2023 9 Enterprise Architecture

Starting the EA Journey

Strategize and plan• Gain

agreement on the major problems to be solved

• Charter the EA program

• Develop program guidelines

Assess current state• Identify

current level of organizational maturity

• Understand existing capabilities

Assess competencies• Identify

EA requirements

• Review established budgetary practices and refine them

Gain approval• Develop a

formal plan

• Perform a strategic planning exercise

• Develop the requirements, and assess the results

Implement• Analyze the

findings and prioritize the gaps

• Develop investment plans using identified business cases

• Present findings to gain funding and approval

Operate and evolve• Improve

and refine your efforts

• Continue evolving future state plans

Gartner recommends establishing and evolving the EA program via six major phases.

Page 10: Implementing Effective Enterprise Architecture

April 10, 2023 10 Enterprise Architecture

Enterprise Architecture LifecycleCreate the Enterprise Architecture vision and program structure

Document current state architecture

Develop future state architecture

Create a roadmap of transitioning from current state to future state

Establish and execute governance processes

Develop business case(s) for the initiative(s) identified on the roadmap

EA lifecycle is a series of continuous iterations

over these phases* Based on Oracle Enterprise Architecture Framework

Page 11: Implementing Effective Enterprise Architecture

April 10, 2023 11 Enterprise Architecture

EA Governance

* Based on TOGAF

Alignment

• Enterprise Architecture establishes a number of governance mechanisms

– Architecture Board serves as a governance body ensuring IT initiatives align with EA

– CTO and/or Chief Architect provide stewardship and guidance

– Enterprise Architects develop policies, practices, and processes that the Architecture Board supports

• Enterprise Architecture and IT leadership ensures alignment with business goals, strategies, and objectives

Page 12: Implementing Effective Enterprise Architecture

April 10, 2023 12 Enterprise Architecture

Recipe for EA Program Success

Show the need

Gain an executive sponsor

Formally establish the EA

program

Show value quickly

Engage all IT leaders

Institute EA governance mechanisms

Drive adoption from the top

Communicate value of EA through entire

organization

Expand to Business

Architecture

The need should be evident (IT inefficiencies, duplication of capabilities, etc.)

Ideally, this should be a C-level exec. Start with highest possible level and aim for C-level sponsorship.

Organize and announce the team. Clearly establish scope, charter, and responsibilities.

Concentrate on low hanging fruit such as cost savings, platform and capability consolidation, etc.

Make all IT leaders responsible for EA success with specific goals and objectives.

Formalize all EA governance bodies and processes. Integrate them into all aspects of IT operations.

Ensure universal adoption through executive (CIO / CTO) mandates and objectives. Incentivize positive behavior.

Make everyone aware why EA is important to them and what value it brings.

Concentrate on aligning business and IT strategy once core EA program has matured sufficiently.

Page 13: Implementing Effective Enterprise Architecture

April 10, 2023 13 Enterprise Architecture

Keys to Success

Start small

• Don’t try to boil the ocean• Focus on quick wins• Show results early and often

Plan big

• Start with the end in mind• Design the EA program for maximum scale and flexibility upfront• Create a maturity roadmap and follow it

Obtain executive sponsorship

• Without a C-level executive sponsor, EA program will not succeed• Ensure buy-in from all IT leaders• Drive adoption from the very top

Communicate and celebrate

• Communicate results and accomplishments often and to as wide of an audience as possible• Celebrate successes and recognize those responsible

It is very hard to sell EA on its value alone.

While there are many ways to demonstrate value, it is often not realistic enough for executives to grasp. Instead, identify real

needs to establish the EA program and focus

on showing results quickly. Once

everyone sees the value, it will be easy to

justify continuing investment.

Frequently publish metrics to

demonstrate progress.

Page 14: Implementing Effective Enterprise Architecture

April 10, 2023 14 Enterprise Architecture

Designing an Effective EA Program

From centralization to federation

• Centralize at first to accelerate maturity– Establish a central EA team– Define and enhance all the EA processes– Pragmatically and systematically drive EA

adoption• Exercise EA governance cautiously

– Establish an Architecture Review Board– Slowly increase its scope and influence

• Plan for federation– Ensure all the processes and structures can be

easily federated when needed

• Federate when enterprise is ready– Pull the trigger when the enterprise is mature enough

for federation– This typically happens when EA is universally accepted

and is not questioned• Align Enterprise Architects with business units

– Absorb Portfolio Architecture functions– Ensure clear alignment between EA and Portfolio

Architecture • Maintain governance and planning functions

centrally– Keep Architecture Review Board as a central

governance body

Page 15: Implementing Effective Enterprise Architecture

April 10, 2023 15 Enterprise Architecture

Designing an Effective EA Program

CIO

CTO / Chief Architect

EA Team

Division CIO

Division Architecture

Team

Reports to

Small / medium organizations and early in large enterprises

Influences

Influences

Reports to

CIO

CTO / Chief Architect

EA Team

Division CIO

Division CTO

Reports to

Large mature enterprises

Influences

Influences Reports to

LoB Architecture

Team

Reports to

LoB Architecture

Team

LoB Architecture

Team

Reports toInfluences

All EA functions are managed and

delivered centrally

EA functions are federated. EA owns

governance. Delivery decisions are made locally.

Architecture Board

Sponsors

Page 16: Implementing Effective Enterprise Architecture

April 10, 2023 16 Enterprise Architecture

Achieving Success

EA is universally accepted

Everyone (from executives to

developers) believe in EA vision, mission, and

purpose

EA Governance is invisible yet omnipresent

EA processes are tightly woven into the IT fabric

A system to incentivize positive behavior and

penalize negative behavior is in place

Everyone understand their role and value they

bring to EA

The success of an Enterprise Architecture program is hard to measure in objective terms. It is not just how much savings was achieved, what percentage of enterprise was modeled, how many roadmaps were created, etc. The primary indicator of success is the degree of change in the company’s culture. Below are the signs of what a successful Enterprise Architecture program looks and feels like.

Page 17: Implementing Effective Enterprise Architecture

April 10, 2023 17 Enterprise Architecture

Q & A

Page 18: Implementing Effective Enterprise Architecture

April 10, 2023 18 Enterprise Architecture

About the Author

About

•Leo Shuster directed IT Architecture, Enterprise Architecture, and SOA for a number of organizations including Nationwide Insurance, National City Corporation, and Ohio Savings Bank

•Presented on Enterprise Architecture, SOA, BPM, and related topics at a number of events and conferences

•MS in Computer Science and Engineering from Case Western Reserve University and MBA from Cleveland State University

Publicatio

ns

•Blog: http://leoshuster.blogspot.com

•SOA Governance Book with Thomas Erl: http://www.amazon.com/SOA-Governance-Governing-Premise-Service-Oriented/dp/0138156751

•Service-Driven Approaches to Architecture and Enterprise Integration Book: http://www.igi-global.com/book/service-driven-approaches-architecture-enterprise/74192

Contact Info

•E-mail: [email protected]

•LinkedIn: http://www.linkedin.com/in/leoshuster