Asset Governance and Architecture Debt Ian Koenig July 2011

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 1 Context and Problem Reed Elsevier is the parent of LexisNexis LexisNexis is a leading global provider of content-enabled workflow solutions designed for professionals in the legal market employing 10,300 staff in 50 countries Reed Elsevier revenue in 2010 = £6.1b LexisNexis Legal and Professional contributed 28% = £1.7b 55% of the revenue comes from the U.S.

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 2 What happens if you are not careful Time Operational Expense (OpEx) Maintenance (M&R) Investment Cost Investment Architecture Debt Gartner estimates current IT Debt in the U.S at $500B and rising.

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 3 Architecture Debt – An Analogy

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 4 Highway Policies / Golden Rules

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 5 IT Debt (Maintenance Debt)

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 6 Architecture Debt – An Analogy

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 7 Architecture Debt – An Analogy

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 8 Architecture Debt – An Analogy

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 9 Architecture Debt – An Analogy Architecture Debt

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 10 Architecture Debt – An Analogy Deviation Expense

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 11 Optimal Cost: ~2.7M + 800K/year (OpEx + M&R) = $7.5M Additional cost of deviation: 2.2M + 275K/year = $3.6M 24% Cost & Payback of Infrastructure Debt / Deviation for a system

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 12 Golden Rules for Technology I.Masters of Data II.Modular III.Simple IV.Standards-based V.Compliant VI.Secure VII.Scalable VIII.Manageable IX.Reliable X.Global XI.Maintainable

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 13 Compliance to Golden Rules are measured through a scorecard The scorecard contains the detailed tests defining compliance to the Golden Rules

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 14 Debt Dashboard – Strategic Assets Debt $(000) Masters of Data Modular Simple Standards- based Compliant Secure Scalable Manageable Reliable Global Maintainable Budget (end'11) (000) Product Application Product Application ,600 Product Application Product Delivery Platform Service ,800 Service 2 9,400 Service Service ,600 Content Fabrication Platform Service ,000 Service ,300 Service 31,000 52,800 Infrastructure Service 10 1,300 Service 20 1,200

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 15 Debt Dashboard – Legacy Systems Overall Score Assets Debt $(000) Masters of Data Modular Simple Standards- based Compliant Secure Scalable Manageable Reliable Global Maintainable Legacy Platform Application Application 210,500 Application 325

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 16 Architecture Debt – Application 2 Principle Debt ('000) In Plan ('000)GapComment 1Masters of Data900 0 Some of our data will need to document and clarify organizational business ownership. 2Modular 0 A large number of waivers apply based on leveraging out of the box COTS capabilities. 3Simple 0 No concerns 4Standards Based100 Process waivers. Adoption of process and deliverables will resolve these architecture concerns. 5Compliant50 Add copyright language to source code. 6Secure 0 No concerns 7Scalable1,500 Extensive work needed to build out scalability of this Asset 8Manageable 0 Need to Implement business critical logging and component monitoring. 9Reliable4,500 0 Effort needed for DR plans. Resolve single points of failure. 10Global3,3002, Investment needed to bring asset up to global ready status. 11Maintainable50 Document schemas and firm up lifecycle processes. Golden Rule Debt 10,4007,8002,600 Infrastructure Debt 000

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 17 Corporate Impact Operating Income Time to Market Customer Care Cost Investors’ Value Market Share Brand RISK Architecture Debt

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 18 APPENDIX

Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc. 19 START Destination You arehere Death byGovernance Don’t overshoot SOA Requires Governance Asset Governance is a (1) Process with checks & balances and (2) People with defined decision rights, measuring compliance with a set of (3) Policies, producing (4) Metrics so that good business decisions can be made involving technology and full adherence may be achieved in the fullness of time SOA by its nature enables a federated development process with individual groups producing individual services relatively independently. This enables scale (supporting agility), but requires trust. Only via a well defined set of interface guidelines, policies and a Governance process can you keep complexity under control.