Agile EA in Practice

Understand EA Value & Risks What is Value? EA Value Measures What are Risks? EA Risks

What is IT Generated Value? Understanding EA Value starts with understanding What is IT Generated Value? Resource Value IT as an Resource Value is: 1.Featured in its Hardware Software Supported business processes People skills 2.Measured by productivity, on-time & quality indicators business value The interaction of IT & Bus creates business value, which: 1.Is of an economic and/or strategic nature; 2.Has different facets, depending on business priorities; 3.Can be measured using different metrics (KPI + measures) relevant to the appropriate business contexts; 4.Are created via projects of BUs Adapted from: ;

Example: Business Value created by use of EA Source: Case Study – Project that aligns the ICT of USA federal, state & local governments. The cost-benefit analysis findings (business value): 1.Financial Cost Savings 2.Service Provisioning Improvements 3.Lesser Duplications & Waste 4.Higher economic growth building capacities 5.Consistent community services independent of political changes

Example: Business Value created by use of EA Same Case Study – More in-depth analysis of cost savings by each USA state Source:

EA Value Strategic elements Business elements Technology elements Better Enterprise Resource Planning Shorter planning to deployment cycles Identifies & reduces resource & work duplication  optimises staff nos. Identifies & improves resource integration & performance Better Communications between strategists, business & ICT staff: More effective meetings More shareable reference info about strategy, business & ICT matters Better Decision Making Faster decision making Value varies depending on: 1.Size & complexity of organisation 2.Type & number of IT performance issues/gaps 3.Degree of ICT resource duplication 4.How supportive are stakeholders for IT

“No such thing as a free lunch” The cost of getting value is accommodating some degree of risk WHAT IS RISK?

Managing EA Risk – What is Risk? Risk - the effect (positive or negative) of uncertainty on objectives. Risk is considered with reference to possible consequences and likelihood of occurrence (ISO definition)ISO definition The actual consequences of risks are often called problems and issues Objective Target KPI Below KPI Above KPI Aims for Over achieves Under achieves Risk Occurrence results in KPI variances & other unforseen effects Risk Assessment: 1.ID the uncertainty causes of KPI variances & other dangers 2.Measures the impacts of risks 3.ID the appropriate risk prevention, mitigation (containment) and recovery strategies If EA is to enable the creation of value adding ICT enable services, then think of what causal factors (risks) that can erode the work performance of this intent. Examine the value creation of EA in text and think of the reverse and what may cause it Strategic or operational

Managing EA Risk - Risk Management Process Concepts Example of a typical Risk Management Process Model Source: 1.Risks Prevention 2.Risks Mitigation 3.Risks Recovery

EA Value / Risk Strategic elements Business elements Technology elements Better Enterprise Resource Planning Better Communications between strategists, business & ICT staff Better Decision Making 1.Current & Future EA Planning involves more $ 2.EA as a new resource mgt method is not always accepted 3.Require specialist skills – availability issues  high salaries 4.Time to document may delay projects 5.Lack of comprehensive & integrated EA management & modelling tools EA Value EA Risks

Managing EA Risk – from a Risk Prevention Perspective 1.Don’t be first adopter of EA advances in method changes & tools dev 2.Secure executive commitment & support for EA adoption 3.Identify EA costs and allocate to project budgets  capacity to zoom in/out EA cost components 4.Have EA team succession planning – training and recruitment backup strategies 5.Integrate EA management methodology into project management methodology, as part of project governance; include EA management in corporate governance system

Deeper into EA Cost Risks Understanding the Cost Drivers of EA 1.EA Staffing & Consultant Costs 2.EA Activity Costs 3.EA Equipment/Tools’ Costs 4.Involvement of other Stakeholders – the costs of their time, resource provided, etc In Projects Cost Drivers can be potential Cost Risks – How?

EA Governance Concepts Corporate Governance & Implementation EA Governance in Projects SoA Governance Balancing SoA Agility & Quality Value/Risks

Corporate Governance Organisation’s “Rules” Expected to: 1.Be reflected in all people’s behaviours (conduct) 2.Represented in all decision making, operational & project activities 3.Check compliance & intervene to correct non compliance

Corporate Governance Implementation Organisation’s Governance Framework EA Governance Can be part of  affects all ICT enabled operational & project work Operations Projects Governance Framework Or Can be part of

EA Governance in Projects EA Governance work is about checking that people follows EA principles, policies, standards & best practices in their projects, ie compliance oversee How do you deal with non compliance? Depends on: Your management style Organisation culture  Compliance accountability behaviours & penalties  Risk taking behaviours EA Governance Styles Chiefdom IT or Business Monarchy Duopoly – some business & IT executives control Democracy Anarchy – no clear authority

EA Governance in Projects EA Governance enablers: 1.Communication effectiveness 2.Available of quality EA tools 3.Showing visibility of compliance 4.Compliance rewards / non compliance penalty 5.Change management decision evaluation & execution accountability

EA Governance & Compliance Enablers Communication Enablers EA Training Programs EA HRM Provision EA Knowledge Management Practice EA Automation Clear & common understanding Recruitment & HR Plans for EA Regular Access to EA Training Specialist Networks & Forums EA System Tools

SoA Governance – rules for exercising control over services Service Perspectives Strategic Service Business Services IT App Services Network Services 1.Design rules 2.Runtime rules 3.Change mgt rules Example: Using EA 3 Layering

SoA Agility Time Quality Balancing Quality & Agility Value/Risks in SoA Projects SoA Quality Time Cost Less time More time More qualityMore time The more agile a SOA implementation becomes, the more time is required to ensure quality, and as a result, it isn’t long until quality activities become so time-consuming that the agility of the implementation is at risk. The only way to obtain the balance between agility and quality the business requires is to take an iterative approach to a SOA initiative, where each iteration is bounded either by scope or cost Quality = More Time & Cost Agility = Quality + More Time = (More Time & Cost) + Time

Ramifications of balancing SoA Quality & Agility in Projects EA work is executing both EA Management + “analysis & design” modelling Agile iterations bounded by scope & costs executingmanaging

Some Basic SoA Concepts Service Definitions Service Design Concepts: ZAPTHINK vs Open Standards SoA Design Symbolic & Semantics Service Design Modelling ZAPTHINK – a SoA future roadmap

Classification of EA Domains Application Integration Domain Information/Data Domain Technical Infrastructure Domain Business Architecture Domain Business Architecture Domain The classification of EA documentation areas (domains) can vary across EA standards

What is a Service? ITIL DefinitionITIL Definition: “A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.“ SoA DefinitionSoA Definition: “A self-contained unit of software that performs a specific task.” Business Service Infrastructure Service 1.“Are services that perform specific business functions and are required for the successful completion of a business process” 2.Also called application services 1.“Services provide the technical functionality necessary for the implementation of business processes in SOA, but do not directly add business value” Source:

Understanding Service Concepts: ZAPthink Service Abstraction Concepts ZAPthink Service Concepts: 1.Service Abstraction reveals 1.How a service is configured & implemented 2.How a service interface with another? Via WSDL 3.What is the nature (type) of a service? Is it strategic, business, IT or deeper classification types under each of these 3 core service lines. ICT enabled Services 1, 3 2

Understanding Service Concepts: Open Standards – SoA Design Principles SoA Design Principles 1.Service Abstraction = Hiding as much details of a service as possible via using service contracts that only contain essential information about services: Uses metadata to describe services   service contract information = metadata the type of a service abstraction is related to the logic in hiding / revealing info

Understanding Service Concepts: Open Standards: SoA Service Design Principles SoA Design Principles 2.Types of Service Abstraction FunctionalTechnology Program Logic Service Quality See a_abstraction_types for details a_abstraction_types Functional abstraction  what a service is capable of doing Technology abstraction  what technologies are used to build a service Program Logic abstraction  how the functions of a service are designed & programmed Service quality abstraction  What are the runtime behavior, performance or reliability requirements, or other QoS details required of a service

Summary - Levels of Service Abstractions Service Contract defines service Type Implementation specs Service Contract defines service Type Implementation specs Service Metadata Service Contract defines service Type Implementation specs Service Contract defines service Type Implementation specs Service Interface Contract Service Interface Contract Functional Contract Functional Contract Program Logic Contract Program Logic Contract Technology Contract Technology Contract Quality Contract Quality Contract Integrating ZAPTHINK and open standards’ SoA Design concepts

Levels of Service Abstraction Two methods for modelling SoA services: 1.Symbolically – modelling the service’s structural properties for organising contents eg Entity Relationship objects 2.Semantically – modelling the service meanings of contents eg ontology objects

Symbolic & Semantic EA Modelling Examples ER Modelling: Object’s Structural Relationships mapping Ontology modelling: Object’s Structural & Contents’ Relationships mapping

Zapthink Vision - SoA development Roadmap Influencing SoA analysis & design developments

Tutorial Tasks

Tutorial Qs Q1. What are some of the areas of value that are generated by an EA program? Q2. What are some of the risks associated with implementing an EA program? Q3. How does EA help an enterprise to view its strategic direction/goals? Q4. How does EA help an enterprise to view its business services? Q5. How does EA help an enterprise to view technology resources? Q6. What is meant by managing risk? Provide two methods to manage risk. Q7. How does EA link to strategy, business and technology?

Case Study Analysis 1.What is the potential value of DMC EA proposal? 2.What are the possible risks in the DMC EA proposal? 3.How can EA can help develop views of this business’s strategic direction and goals; business services and supporting resources?

Q8 Do you agree with the need for an EA program in the case study? Kate Jarvis (COO) Sales & Inventory Tracking System (SITS) – ~2 years RoI, $3mio++ Integrate info across Sales Inventory Production Cost Accounting Module WELLCO ERP System 18 months RoI, <$600K Sam Young (CIO) Jim Gorman (CFO) Capacity to compete with competitor Mitigate production inefficiency Improve cost management Decision Options: Buy 1, Buy 2? Rob Danforth (CEO) Gerald Montes (Chief Council)

Lily Jefferson System Analyst Vince The Albright Architect Sales & Production Department Sales & Production Department Finance Department Finance Department Analyse Kate & Jim’s System Requirements Infer DMC’s Strategic Goals Eg New Custom Order Line of Business for Next Year What is the value in terms of cost savings & scalability of solution? EA will align each current & future departments, increase cost savings into the future, BUT will cost additionally $121,600 & 2 months What is DMC organisation culture? 3 Discuss the merits and limitations of the CIO’s (Sam) EA Plan for Financial and Production Segments? 2 Can you describe DMC organisation structure?

EA Team Given the mandate to develop 2 segments of DMC’s EA. First deliverable: business case & EA Dev project plan Two Critical Success Factors 1.Inclusive stakeholder involvement 2.Agreed EA Methodology Two Critical Success Factors 1.Inclusive stakeholder involvement 2.Agreed EA Methodology DMC EA Plan: Financial & Production Segments Report Produced Elaborate the EA Approach / Methodology proposed in report EA Development timeline EA modelling steps involved Planning & decision making information specs, including preferred documents’ formats Selection of EA modelling techniques & tools EA scenarios – Current & Several Future views Agreement of planning assumptions Evaluation of Kate/Jim’s systems and retrofit in EA scenarios Explanation of how the EA methodology’s framework to structure DMC EA and guide its various EA modelling/ documentation activities Meeting Discussion Highlights Meeting Outcomes: Agreed EA Methodology & EA Documentation Framework Next Meeting GoalsUnderstand how the 2 outcomes are used to document the current & future models of Jim + Kate’s business units/departments Next Meeting Goals: Understand how the 2 outcomes are used to document the current & future models of Jim + Kate’s business units/departments

EA Team Given the mandate to develop 2 segments of DMC’s EA. First deliverable: business case & EA dev project plan DMC EA Plan: Financial & Production Segments Report Produced Inferred Methodology Contents EA Development timeline EA modelling steps involved Planning & decision making information specs, including preferred documents’ formats Selection of EA modelling techniques & tools EA scenarios – Current & Several Future views Agreement of planning assumptions Evaluation of Kate/Jim’s systems and retrofit in EA scenarios Explanation of how the EA methodology’s framework to structure DMC EA and guide its various EA modelling/ documentation activities This Meeting’s Goals Achieved: To Agree the proposed EA Methodology & EA Documentation Framework Inferred Business Case Contents Chosen Jim/Kate’s areas as the 2 EA segments because they cover several lines of business (LoB) Analyse DMC’s strategic goals, business activities & technology capabilities Specified the 2 areas’ business and ICT requirements