1. Enterprise Architecture for Business Agility Charles Stack CEO and Founder Flashline, Inc. November 18, 2004 © 2004 Flashline Inc.

2. © 2004 Flashline, Inc. Turning IT Cost into Business Value Agenda  Why Important, enduring, and complex Alignment and governance Cities, time and space  What FEA, Zachman, DoDAF, BEA, TEAF, Meta Maturity Models EA as IT Governance EA as Urban Planning  How Planning, sponsorship, implementation, metrics, controls, and common services Asset Management

3. © 2004 Flashline, Inc. Important  Direct  Phone systems  Web sites  Email  VRU  Indirect  Internal systems  Customer service  Increasingly all business rules are being embodied in our software systems  Partners  Supply chain systems  Flexible partnering systems  “We are our software” Organizations today are defined by their software.

4. © 2004 Flashline, Inc. Enduring  “Not the 90’s”  Software Asset Management  Long-lived platforms  Java .Net  Web Services  Hardware independence = Migrate forever  Software doesn’t wear out  Valuable intellectual property  Software transcends developers  Cost of duplicative systems  Cut maintenance by 20%  “Write Less Software”

5. © 2004 Flashline, Inc. Complex  Complexity as primary constraint on SD  1000x increase across 5 dimensions  Interface  Stakeholders  Size  27k vs. 39k  VisiCalc vs. eula10r.chm VisiCalc. eula10r.chm  Platforms - IBM  Network  Encapsulation  7+2 Methods and Properties  Managing complexity requires a plan

6. © 2004 Flashline, Inc. Key Challenges  Regulatory requirements  SarbOx  Risk management  True CRM  Cost reduction  IT reinvents itself daily  Rampant duplication  Agility Architecture planning and standards compliance reduce IT budget expenses by an average of 30%, META Group

7. © 2004 Flashline, Inc. Cities of Software  Building Architecture versus Urban Planning  Building = Static/waterfall  City = Dynamic/iterative  Building Standards  Arch. Review Board  Zoning – pc or mainframe  Variances  Health/Safety inspections  Common Services - Roads, utilities, birth certificates, etc

8. © 2004 Flashline, Inc. EA Definitions 1.An iterative process 1.Driven by business strategy 2.Leveraging technology trends 2.Holistic expression of enterprise’s business, information, application, and technology strategy 3.If it gets so complex, you can’t remember how it all works, you have to write it down... ARCHITECTURE 4.If you want to connect it with the work of others, they need to know how it fits... ARCHITECTURE 5.If you want to change how it works, you start with what you have written down... ARCHITECTURE

9. © 2004 Flashline, Inc. Alignment  EA governs IT alignment with business goals  Doing things that add value  Identify business goals  Require that EA elements support business goals

10. © 2004 Flashline, Inc. Governance Banking CardsCapitalFinancial Services Architecture Domain: Global Consumer Group Project Scope & Requirements Project Profile Project Portfolio Shared Services & Assets Business Projects Architecture Requirements Architecture Blueprint Doing the right things the right way… Getting things done well and deriving benefits… Feedback, Analytics & Compliance Monitoring

11. © 2004 Flashline, Inc. EA Spans Time  Without EA only short term goals are met  To the long term detriment of the enterprise  The 6:00 PM Elevator

12. © 2004 Flashline, Inc. EA Spans Space  Without EA only local concerns are met  Resulting silos reduce efficiency  EA required for distributed development teams  EA required for outsourcing  “Don’t outsource the savings”

13. © 2004 Flashline, Inc. EA Enables Agility  Web Services  EA role is to focus on interstices  Encapsulation at the LOB level  Fractal encapsulation  Spin Together/Spin Apart

14. © 2004 Flashline, Inc. EA Frameworks - Summary  A plan by any other name…  FEA  Zachman  IAA  BEA  DoDAF  TEAF  History, Goals, Outline  “But, EA is a process not a document!”

15. © 2004 Flashline, Inc. FEA – Federal Enterprise Architecture  History  1996 Clinger-Cohen  Goals  Governance and Efficiency  Taxonomic Reference Models  BRM, SRM, TRM, DRM, SRM  Enforcement  OMB Exhibit 300  GAO Maturity Audit

16. © 2004 Flashline, Inc. Zachman  History  IBM – Business Systems Planning  1987 - "A Framework for Information Systems Architecture", IBM Systems Journal  Goals  Organizational Scheme  6x6 Matrix  Why, who, what, how, where, and when  Scope, Business Model, System Model, Technology Model, Components, Working System  www.ZIFA.com

17. © 2004 Flashline, Inc.

18. BEA – U.S. Department of Defense  History  DoD Business Enterprise Architecture  Augments DoDAF  Goals  Focused on financial accountability  Eliminate duplication and redundancy  Manage knowledge as a corporate asset  Share and reuse  4,000+ Compliance Requirements  IBM Global Services

19. © 2004 Flashline, Inc. DoDAF - U.S. Department of Defense  History  C4ISR  Goals  3 Views 26 elements  Operational View  7 process groups  Systems View  Links operations to technology  Technical View  200 pp standards Operational View ‘To-Be’

20. © 2004 Flashline, Inc. TEAF - U.S. Treasury  History  2000 replaces 1997 TISAF  150 pp  Mitre Corp  Goals  4x4 grid of Views x Perspectives (roles)  Best of the Bunch  More process focused

21. © 2004 Flashline, Inc. TEAF Implementation Model

22. © 2004 Flashline, Inc. Meta Group  Meta Group, Inc.  History  Goals  Business alignment  Agility  Lower costs  Reduce duplication  Common requirements vision  Conceptual architecture  Business architecture (EBA)  Information architecture (EIA)  Solution architecture (ESA)  Technical architecture (ETA)

23. © 2004 Flashline, Inc. EA Maturity Models  CMM  Standard 0-5 Levels  Federal – GAO  116 Agencies rated and ranked  Aware, Building Program, Developing Assets, Completing Assets, Leveraging Assets  NASCIO  None, Informal, Repeatable, Defined, Managed, Continuous  META Group

24. © 2004 Flashline, Inc. Execution Planning Portfolio Management Enterprise Architecture Project Management Software Asset Management Enterprise Architecture and Governance Done Well Benefits The Right Things The Right Way

25. © 2004 Flashline, Inc. Enterprise Architecture Assets  Architectural assets  Process  RUP, CMM  Platform  Data, Application, Component  Service, Security, Interface  Goals for each asset  Benefit of establishing a standard  Glossary  Definitions of key terms

26. © 2004 Flashline, Inc. Software Coding and Software Assets Open Source Libraries Outsourcing Language Functions Web Services Components Patterns/MDA

27. © 2004 Flashline, Inc. Managing EA Assets  Publishing EA assets  Registry  Ease of access  Tracking  Managing compliance  Standards  Projects  Reviews  Measuring benefits  Quality  Value  ROI

28. © 2004 Flashline, Inc. Planning  Define goals  Establish success metrics  Implement processes  Project Plan  Stakeholders  Implement  Iterate

29. © 2004 Flashline, Inc. Executive Sponsorship  Sponsorship required for  Business goals input  Alignment  Funding  Selecting metrics  EA benefits explained  Cost reductions  Efficiency increases  New business opportunities  Marketing and PR tasks

30. © 2004 Flashline, Inc. Levels of Control  Levels of Control  No Standard  Recommended Standard  Voluntary compliance  Mandatory Standard  Degrees of compliance  Recommended Implementation  Fail/succeeds on merits  Mandatory Implementation  Compliance w/ variances  Iterative dynamic process

31. © 2004 Flashline, Inc. Common Services  Shared Services  Single most effective practice  Infrastructure  Start low and work up  Web Services  New IT plumbing  Commoditizes all hardware platforms

32. © 2004 Flashline, Inc. Compliance Models  Review  Architectural Board of Review  Audit  Periodic, selective, punitive  Presumptive  We’re all adults here  Variance  With Business Case  With or without oversight

33. © 2004 Flashline, Inc. Enterprise Architecture Grid

34. © 2004 Flashline, Inc. Waivers  Some waiver process required  Needs renewal process  “Waived through 11/1/2006”  Ongoing enforcement  Part of Architectural Review process

35. © 2004 Flashline, Inc. EA Registry  Design then deploy  Registry Benefits  Visibility  Governance  Analytics  “Too many EA documents end up gathering dust on a shelf” TEAF Deployment Diagram

36. © 2004 Flashline, Inc. Case Study - Fortune 500 Retailer  Challenge  Fast growth and acquisitions resulted in highly agile but inefficient IT process  Use EA to bring agile efficiency  Solution  Creating Common Services Group  Building EA Framework  Using central registry to distribute framework and services throughout enterprise  Results  Agility with efficiency  Stay tuned…

37. © 2004 Flashline, Inc. Case Study - Fortune 500 Financial Services  Challenge  Reduce architectural complexity grown through multiple M&A activities.  Maximize scalability and interoperability, and reduce maintenance issues through a consistent architecture.  Solution  Create a single, cohesive enterprise architecture.  Incorporate reuse and governance into EA and development practices.  Centrally driven software design review process.  Results  EA will improve scalability, agility and interoperability.  Projects $40 million savings through reuse.