1 The Business Value of Enterprise Architecture and SOA Brand L. Niemann Senior Enterprise Architect, US EPA, and Federal SOA CoP Co-Chair U.S. National Defense University February 5, 2007

2 Simplify at First The Business Value of Architecture –Building Architecture: Sketches and Drawings Blueprints and Scale Models Building and Service Systems: –Service systems integrate people, technology, and information resources in different proportions. As a result, each system is unique, resulting in situations in which the revenue and profits scale differently (see next slide figure).

3 Service Systems Revenues Profits Source: Figure 2 in Steps Toward a Science of Service Systems, Jim Spohrer, et al, IBM Almaden Research Center, IEEE, January 2007, pp Information Technology Software as a service Labor

4 Apply to the Federal Government Can we make this work for the Federal Government? –The verdict is out, but the Federal SOA CoP has a strategy to help lots of people do SOA! –The Architectural Principles for the Federal Government (June 23, 2006, final draft): The “enterprise” is broader than the Federal Government (global) because the “World is Flat”. –“Enterprise Architecture as Strategy” by Ross, Weill, and Robertson, 5 th Stage of Maturity (see next slides).

5 Apply to the Federal Government Dick Burk, OMB Chief Architect and Manager, Federal Enterprise Architecture Program recently spoke about: –The Federal Transition Framework (FTF). –Beyond the Reference Models. –Solving Business Problems Using Enterprise Architecture: Recommended Reading – Enterprise Architecture as Strategy by Jeanne Ross, Peter Weill, and David Robertson, Harvard Business School Press, 2006, 234 pp. (see next slide)

6 Apply to the Federal Government “When it comes to successful execution of your strategy, your operating model may matter far more than your strategy itself.” Research shows that organizations follow a consistent pattern the authors call the “Four Stages of Architecture Maturity”: –Business Silos –Standardize Technology –Optimized Core –Business Modularity The Fifth Stage of Architecture Maturity: –Dynamic Venturing (partnering) Source: Enterprise Architecture as Strategy by Jeanne Ross, Peter Weill, and David Robertson, Harvard Business School Press, 2006, 234 pp.

7 SOA CoP SOA Maturity Model The FEA focuses on the OMB budget process and project management while SOA is the actual modeling of complex IT and governance environments like GSA is doing for the Financial Management Line of Business (LoB). Both are needed and can be complimentary and the SOA CoP is about “dynamic partnering” in support of the Lines of Business (LoB), the new Federal Transition Framework (FTF), and the new Data Reference Model 2.0 (see next slide).

8 SOA CoP SOA Maturity Model This metamodel for DRM 2.0 could… This “publish catalog” could lead to… the “publish”, “find”, & “bind” of a SOA. become services layers in a SOA.

9 SOA CoP SOA Maturity Model Shared Services-to-Web Services-to-Semantic Services: –Shared: White Paper: Shared Services*, Suparno Banerjee, EDS Global Government, Exhibit at the 2 nd SOA for E-Government Conference. Best Agency SOA Application: Bob Brown (US PTO) –Web Services: SOA Lessons Learned - The Government Speaks: Dan Malks, CTO, JackBe, for DISA Best Organization SOA Application: Alan Harbitter (Nortel Government) and David Webber (AC Technologies) –Semantic Services: SOA and Semantics, Dave McComb (Semantic Arts) Outstanding Contributions to the SICoP and the SOA CoP: Arun Majumdar (Cutter Consortium/VivioMind Intelligence) –All Three Together: SOA for Information Sharing, Greg Lomow (Bearing Point) (See Next Slide) *

10 FinMgmt Services Border Surveillance Grants Services HR Services Asset Mgmt Services Tax Fraud Detection Information Bus PublishSubscribe & Notify PublishSubscribe & Notify Metadata Repository Information Broker Semantic Integration Subscription Mgmt Content Delivery & Caching Data Fusion Situational Awareness Search / Retrieval Collaboration Information Dissemination BI & Analytics Business Reporting Geospatial Services Content/ Doc Mgmt Shared Data Spaces Data Exchange Services Federal Agencies State & Local Gov’t Citizens Foreign Governments Commercial Organizations International Organizations Homeland Security National Defense Law Enforcement Counter Terrorism Public Health Public Safety Emergency Response

11 SOA CoP Demo Phase 2 The 2 nd SOA for E-Government Conference, October 30-31, 2006, SOA CoP Demo Participants (see next slide): –Data Access Technologies (Cory Casanave and Tom Digre) –Booz Allen Hamilton (Grant Boyd) –DynAccSys (Sonia Antypas) –Kapow (Kash Badami) –MetaMatrix (Chuck Mosher), and –Sun Microsystems (John Landers).

12 SOA CoP Demo Phase 2 Business Intelligence (Reports/Dashboard) NEF Program (Manages Projects) Employee (Reports Time) Finance LoB (Calculates Costs) HR/Payroll - LoB (Allocates Time to Projects) Contractor (Produces Invoices) MetaMatrix Data Services Sun MicroSystems DynAccSys Web Service Web Service Web Service Web Service Web Service Web Form Data Access Executable Model Data Access Executable Model Dashboard Client Implementation

13 Helping with Shared Services Shared Services in the Service-Oriented Architecture Framework for the U.S. Federal Government: –Some Key Questions: 1. What are Shared Services? 2. Why are They Important to the U.S. Federal Government? 3. What are Some Best Practice Examples of Shared Services? 4. What are the Activities Related to Shared Services? 5. What are Some Suggested Next Steps for Shared Services?

14 Helping with Shared Services Suparno Banerjee, EDS Global Government. Shared Services pages

15 Helping EPA with SOA November 29, 2006, EPA/OTOP Business Intelligence and Analytics (BIA) User Group (UG) Meeting: –BIA UG, Business Objects, and Informatica. –Greatly assisted in this interactive session by Phil Magrogan (LMCO), who along with Steve Hufford, received the Special Recognition for Best Breakout Session Presentation at our recent 2nd SOA for E- Government Conference as judged by the IAC SOA Committee.

16 Helping EPA with SOA 1. Educate and empower the three user groups using common tools (BIA, SAS, and Statistics) to produce and register their applications as standard web services, otherwise they are not really useable/reusable in an agency SOA. We can and will pilot this to provide examples. 2. Maintain competition among the tools vendors to support open standards for metadata so the tools produce interoperable metadata, not proprietary metadata (e.g. Business Objects demonstrated their new product LiveOffice that takes Microsoft Office proprietary formats and puts them into another proprietary format!) I have already spoken with senior management at Business Objects about this because they want to participate in one of our SICoP pilots on semantic interoperability of person data and we told them what they need to do to be interoperable with the other vendors in the pilot. 3. Add semantic interoperability to what Informatica does for us. SICoP already has several pilots that demonstrate this.

17 Conclusions and Recommendations US Government…SOA To the Rescue?, David Linthicum, Closing Keynote at the 2nd SOA for E-Government Conference, October 30-31, 2007: –5 Ways to Make Your SOA a Success: Understand the pain. Define the value. Focus on understanding (Steps to SOA). Remember the people. Focus longer term.

18 Conclusions and Recommendations The Value Proposition of a SOA: –We implement SOA for two major reasons. First is the ability to save development dollars through reuse of services. Second is the ability to change the IT infrastructure faster to adapt to changing needs of the business, or agility. Value = (NSR*DR) * C, where the Number of Services available for Reuse (NSR), the Degree of Reuse (DR) from system to system, as well as the Complexity (C) of each service: –For example, if you have 100 services available for reuse (NSR=100), and the degree of reuse is at 50 percent (DR=.50), and complexity of each service is, on average, at 300 function points, the value would look like this: Value = (100*.5) * 300 Or Value = 15,000, in terms of reuse.

19 Conclusions and Recommendations A Way to See If SOA Has Business Value for Your Organization: –Learn more about SOA by working on the Practical Guide to Federal SOA (PGFSOA). –Participate in the Phase 3 Super-pilot built on Open Source SOA Infrastructure. –Participate in the 3 rd SOA for E-Government Conference (May 1-2, 2007, MITRE - subject to final budget approval). ACT/IAC SOA Committee Survey: –

20 Conclusions and Recommendations Next Stops on the SOA CoP Tour: –March 29-30, 2007, NCOIC Meeting in Virginia Beach, VA. –April 30 – May 3, 2007, DISA Customer Partnership Conference 2007, Gaylord Opryland Convention Center in Nashville, TN. –May 2007, Association of Government Accountants DC Chapter Conference, Washington, DC. –May 1-2, 2007, 3 rd SOA for E-Government Conference, Washington, DC Area (MITRE – subject to final budget approval).