IBM Rational Enterprise Architecture Management

IBM Rational Enterprise Architecture Management
25 August 2010 IBM Rational Enterprise Architecture Management

Enable Innovation & Change Rising Cost of Operations
IBM Rational Enterprise Architecture Workbench The landscape facing business leaders means “we need to innovate with less” Enable Innovation & Change Rising Cost of Operations Inability to Innovate Average Lifetime of S&P Top Companies 5 15 25 35 45 55 65 75 1928 '38 '48 '58 ‘68 '78 '88 '98 '08 '18 2005 2006 2007 2008 2005 2006 2007 2008 Increased competitive & economic pressures to deliver differentiation and move quickly What the business wants to do! Lower Cost & Risk Operational & maintenance costs continue to grow The cost of failed projects & rework compounds the problem Budgets are shrinking at a time when investment is needed in strategic business assets Globalization and regulatory oversight driving improved efficiencies, security & compliance management What the business must do!

Information Infrastructure
IBM Rational Enterprise Architecture Workbench …Forcing Companies to revisit how they manage their infrastructure Virtualization Three client imperatives: Improve Service Manage Risk Reduce Cost Seven primary initiatives: Service Management Virtualization Energy efficiency Asset Management Security Business Resiliency Information Infrastructure Information Infrastructure Energy Efficiency Service Management Business Resiliency Asset Management Security

Customer Use Cases/ Pain Points
Capture Strategy (Business and IT) Generate Capability Road Maps Design New Capability Manage Requirements Model Business Processes / Activities Manage Obsolescence Model Alternate Future Architectures Perform Impact Analysis Business Continuity Management Upgrade Planning TCO Management (Plan, Prioritise & Authorise Spend) Measure Performance IT Portfolio Management Enterprise Architecture & Solution Governance Guiding Principles & Policies Future Environment Blueprints Standards Management

Subjects and Components Of EA

Using TOGAF™ As A Foundation To Deliver EA

Where does Application Portfolio Management fit in?
Project Portfolio Service Portfolio Application Portfolio IT Portfolio Project Portfolios are the proposed, and in-flight capabilities that will drive new business value Service portfolios are a consolidated view of the functional and shared business capabilities that the organization uses to operate Application Portfolios captures and organizes information about the application portfolio so that business and IT executives can make prudent decisions around investing/replacing/retiring applications IT Portfolio management encompasses applications, services & projects, and bring organizational, market & product decisions into focus for strategic alignment Enterprise architecture is a dynamic map of the organization – Connecting business and IT in one view Enterprise Architecture

Organizations face challenges optimizing their application portfolio
IBM Rational Enterprise Architecture Workbench Organizations face challenges optimizing their application portfolio Redundant applications amassed through mergers, acquisitions and organic growth Lack of visibility into the inventory of applications, metrics and KPIs Legacy applications that no longer meet the business needs; have high maintenance costs Keeping current with new releases of packaged applications; risk losing of support and costly license compliance Organizations need to maximize their application portfolio…. but are challenged Lack of visibility into IT owned Don’t have a holistic view of IT financial management (build + maintain + invest – chargeback/revenue) = Total cost of ownership (TCO) Existing analysis and visibility hampered by complexity. Need a better appreciation of the risks that a change entails Dependencies between the applications and between the applications and the business processes they automate – View into the potential for enhancement to business value and danger due to disruption) Bottom Line – Need to build and deliver to strategic vision, that leverages technology to deliver value quickly Need to modernize to remove cost, break technology or skills dependency Want to achieve a more fluid state, where mergers, acquisitions, divestitures can be done quickly, and with minimal negative impact Lack of visibility into IT owned assets 8 8

What you should know about your critical applications
How do your key applications create business value? Do your applications support your operational processes? What applications are over-consuming scarce resources and investment capital? Where are you over-investing in out-dated or aging applications that need to be modernized, replaced or retired? Are your overall applications costs increasing, decreasing or stabilizing? Which critical applications are currently at risk? “for every $1 of discretionary spending (i.e., new projects and major enhancements), up to $5 is spent on support, maintenance and infrastructure during the life of an application” Gartner Group 9

IBM Rational Enterprise Architecture Workbench
What is the Workbench? Recently Rational has moved from point solutions to a workbench approach for our customers – an integrated solution offering designed to support processes and governance of the process. A Workbench is a logical grouping of products that solves a business problem The Workbench provides pre-installed accelerators to achieve results quicker TOGAF Modeling templates Project assessment artefacts Reports are, designed, implemented and documented Specified data migration, even at high levels of data can be accommodated Knowledge transfer assets are defined, designed, and implemented Set an expectation for number of users supported; at a realistic transaction loads Known infrastructure weak points, for performance, are defined and documented Ability to tailor solution sets Deployment activities are defined, designed and documented

Step 1. Build a holistic view
Resources & costs Strategy Business and IT Alignment Architect the Enterprise Opportunities Business Impact and Risk Analysis Change / Transformation Implementation Link Business & IT Perspective Cost-cutting Optimized Solution / IT Planning Information Systems Harvest Enterprise Information Consolidation Planning IBM’s Actionable Enterprise Architecture strategy is based on the concept of taking the foundations of Enterprise Architecture, and making the results and deliverables relevant to all areas of the business. The concept starts out with capturing and modeling all areas of the organizations, whether harvested from existing data sources, or manually captured or drawn. All organization information can be broken into four key domains: Strategy – An organizations strategy is driven by the executive direction, commonly captured in dispersed documents or financial statements. These are the missions, goals, strategies and tactics guiding the direction of the business. This information is often difficult to directly drive enterprise action, but when built as the foundation of the enterprise architecture, strategy becomes the leading governance factor of enterprise action. Business – The business processes depict the human functions we carry out in our daily roles. For example, a process model of a call center employee would capture the flow of actions that person carries out, including receiving a call, documenting the call details, making decisions about how to respond to the request, and finally walking the caller through the problem resolution. Information Systems – This involves the modeling of all information systems of an organization, including applications, information/data, software, services, etc. This is important part of architecture because we can detail and understand the information systems that support business process and strategy. Finally, The technology domain includes all of the hardware that host the information systems in the organization. By HARVESTING this information, we are ARCHITECTING THE ENTERPRISE creating a blueprint of all four of these domains. Organizations LINK THE BUSINESS / IT PERSPECIVE by creating relationships of a business processes and strategy in the context of the rest of the enterprise systems (e.g., data architecture, organizational structure, strategies, etc.) and create greater capabilities when analyzing and planning enterprise changes (ENTERPRISE REPORTING / IMPACT ANALYSIS). For example, during a corporate merger it is important to understand the processes of both companies in detail so that management can correctly and efficiently identify and eliminate redundancies in operations. (COST CUTTING , CONSOLIDATION PLANNING). This leads to greater success when implementing NEW SOLUTIONS, planning BUSINESS TRANSFORMATION, or IT PLANNING. Increased Visibility Business & Technology Impact Technology Architecture Vision Business & IT Architectures Opportunities & Solutions Solutions Planning Solution Implementation & Governance

Step 2. Balance current needs and long-term demand
Sustained Business Value Goals Objectives Needs Execution Roadmap Enhanced APM Portfolio Management: Financial Analysis and Optimization Enterprise Architecture: Holistic business-IT views Business and technology risk analysis Enterprise Planning demand Business Intelligence Dashboard Services Portfolio Enterprise Decision Support Analysis and Optimization Application Portfolio Application and IT Discovery

Step 3. Understand the business risk of change
Sustained Business Value Goals Objectives Needs Targeted Strategy and Direction Enhanced APM Portfolio Management: Financial Analysis and Optimization Enterprise Architecture: Holistic business-IT views Business and technology risk analysis Services Portfolio Application Portfolio demand IT Planning and Transformation Application and IT Discovery

Step 4. Execute and govern your portfolio – new and existing
Develop roadmap – one view of business and IT architectures, linked to business decisions and clearly articulated as scope Align execution activities to the application strategy (future state) Reduce risk by quickly determining the full impact of proposed changes Ensure application lifecycles do not erode APM optimization Measure, monitor, and control new proposals and transformational activities Minimize impact on vision and value of ad-hoc or non-collaborative activities Reduce risk by quickly determining the full impact of proposed changes Lower maintenance costs by eliminating dead code Optimal project planning, focused testing and faster development Business Driven Innovation

As-Is Architecture To-Be Architecture
Business Objectives Strategy As-Is Architecture To-Be Architecture Business Architecture Business Architecture Information Architecture Information Architecture Application Architecture Application Architecture Technology Architecture Technology Architecture 1) As-Is Architecture: Gain a clear and simple view of enterprise, one that helps bridge the gap between IT and business 2) To-be Architecture: Where do we need to go to achieve our Business Objectives? Plan future Architecture based on strategy. 3) Quickly analyze opportunities and solution alternatives: What is the impact of change? Which projects will drive the most value to the business? 4) Define and Manage Requirements to ensure projects are well executed 5) PPM: optimal mix and sequencing of proposed projects to best achieve business objectives. Monitor investments to ensure delivery of promised scope and highest value items. Ensure balanced portfolio. 5) New “As-Is” Architecture Define and manage Requirements through to Delivery Assess Opportunities and Solution Alternatives Project Portfolio Management

Managing the Business of IT : Workflow
2 Inventory and evaluate applications Identify, categorize and define major application groups Identify hardware and software dependencies Compare the value of applications 1 Map the organization’s business & IT direction and strategy Connected business & IT architectures Key operational processes 3 Perform a financial review and application portfolio assessment Summarize current support costs Collect and analyze financial data 4 Finalize application portfolio management recommendations and execute Translate enterprise roadmap into prioritized portfolio proposals and execution roadmap

Managing the business of IT: Workflow details
IT Support Harvest current infrastructure from CCMDB/TADDM Executive Dashboards Report on Portfolio, project and process Status Practitioner / Project feedback loops Extended Team Define Strategy & Vision Build/Update Current State Architecture Analyze to Define Future State of Business Governance and Review Board CEO Team Capture Future State in TOGAF 9 Compare to Current State, Perform Gap Analysis CIO & CTO, LoB Executives, Enterprise Architects Define Key Capabilities Define Transition Initiatives Architect & Design the Prioritized Solutions Collect and Analyze stakeholder / financial priorities Analyze and prioritize Initiatives Define scope & roadmap initiatives Steering Cmte, IT & LoB Executives, PMO Project and Program Managers Project Planning Project Execution

Tivoli Insight / RPE / Cognos Harvest current infrastructure from CCMDB/TADDM Executive Dashboards Report on Portfolio, project and process Status Practitioner / Project feedback loops Extended Team IT Support System Architect Define Strategy & Vision Build/Update Current State Architecture Analyze to Define Future State of Business Governance and Review Board CEO Team System Architect Capture Future State in TOGAF 9 Compare to Current State, Perform Gap Analysis CIO & CTO, LoB Executives, Enterprise Architects Define Key Capabilities Define Transition Initiatives Architect & Design the Prioritized Solutions Focal Point Collect and Analyze stakeholder / financial priorities Analyze and prioritize Initiatives Define scope & roadmap initiatives Steering Cmte, IT & LoB Executives, PMO Rational Project Conductor with Integration to delivery Project and Program Managers Project Planning Project Execution

Define strategy & vision: business motivation model
Another key input into our decision making about the future state of the business is the ‘business motivation’. The business motivation model represents the direction that the organization is taking. It includes the mission statement, the key strategies and tactics in support of the business mission and details how are going to get there (the ends). To do this, we define the goals, targets and objectives. The objectives are tracked through the metrics which may be shown in our dashboards. The business motivation model also shows any policies we must adhere to and any business rules within which the organization must operate. In the example shown here, we can see that we have a strategy to ‘Save Cost’. This can be directly measured through our cost saving dashboard for applications that we looked at earlier.

Build Architecture and Business Architecture Current State
Another key input into our decision making about the future state of the business is the ‘business motivation’. The business motivation model represents the direction that the organization is taking. It includes the mission statement, the key strategies and tactics in support of the business mission and details how are going to get there (the ends). To do this, we define the goals, targets and objectives. The objectives are tracked through the metrics which may be shown in our dashboards. The business motivation model also shows any policies we must adhere to and any business rules within which the organization must operate. In the example shown here, we can see that we have a strategy to ‘Save Cost’. This can be directly measured through our cost saving dashboard for applications that we looked at earlier.

Report on portfolio, project and process status
By using Enterprise Architecture as a basis for application portfolio analysis, we can ensure that we are working on our application portfolio in the context of end to end enterprise planning. Rational System Architect and Rational Focal Point supports each of the four phases of the APA: 1. Planning and Discovery 2. Data Collection and Verification 3. Data Analysis 4. Opportunity Identification As a 100% web based application, Focal Point provides a collaborative approach to collate, analyse and evaluate all the data required throughout an application portfolio assessment We can show the Application portfolio and its status in a report. The report shows us a breakdown of the application list and its current state. This report is often configured to support an organizations needs. The status of each field represents either quantitative information or qualitative information gathered. The information provides us with a total assessment of each application and this can be viewed in the context of the other applications in the portfolio. If we look at the Field Service Management. We can see that the business strategy alignment is high, the criticality of the application is high, it has medium reliability and low availability. It has high IT strategy alignment and is compliant with our IT Architecture. We have created a custom recommended classification for our application portfolio. The information captured here has a close synergy to the information typically captured in an Enterprise Architecture.

Utilize Executive Dashboards
The dashboard provides a ‘filtered’ and ‘aggregated’ view of our portfolio for wider team members including executives. The ‘metrics’ in the dashboard represent information that allows decision makers to make informed business decisions and commitments. In the example here, we can see the ‘cost’ information and how it is relevant across different future scenarios that our business and IT organizations may change into. Here we can see that the Application cost (which includes, purchase, build, maintenance, rental, SAAS costs etc) is higher in scenario 1 than scenario 3, which in turn is greater that scenario 2. We can also look at the application in the context of the other domains of the enterprise which often form portfolios: Data, Location, Organization (people, roles, departments), Projects and Technologies. The dashboards help the organization make better and more informed decisions about where to go and what to do. This debate is often done in review boards with the appropriate stakeholders who also take input from other sources including the Enterprise Architecture.

Define Future state The future state of the organization can be represented in a model. The model may represent the domains. For reference again, the domains are: Process, Organization (roles, people, depts), Locations, Data, Applications and Technology. TOGAF (The open group architecture framework) provides guidance and model views for all of these domains and is an industry open standard supported by The Open Group. The future state will be based on a point in time in the future and we can apply other relevant information on to the model. Things such as anticipated environmental issues (such as smart computing, Green IT), rules and regulations local to a territory (such as SARBOX), changes in technology, new market directions etc. In this example, we are laying out the anticipated functional break down of the organization and some key processes. The key process will be supported by the applications. We need to understand what are the key processes and how will application rationalization affect the operations of our organization.

Compare to current state, perform gap analysis
There may be many potential future states. This is useful to allow us to plan, play and evaluate the potential affects of deploying our target architecture. We can compare the current architecture with the future architecture(s) and look for gaps, critical dependencies and see where trade offs need to be made. This is all done in the context of our strategic direction and allows us to ensure that we have business and IT alignment. Tools such as System Architect help us make sense of the complexity in the organization by being able to focus in on specific areas that are relevant to what we are trying to achieve. In this example, we can see the dependencies on our ‘Field services management’ application. Understanding this, helps contribute to the attributes of the application such as criticality, Business alignment, IT alignment etc. We can also make assessments through the EA as to whether the application has ‘architectural fit’ into the organization. For example, does it require windows 7 support, does it use open source software? Etc.

Define transition initiatives
We can drive out from the Enterprise Architecture the key capabilities and business functionality required by the organization. This list is produced as a result of the assessment of the gaps and functionality required to support our target business requirements. We can group these into functional areas and provide a high level “bill of materials” for the business functions. Capabilities that are required maybe fed back through to the strategy and vision of the enterprise and verified with stakeholders. We can use metrics to color code the business functions.

Collect and analyze stakeholder & financial priorities
When the criteria used to assess applications is either missing or very subjective, an approach based on pair wise comparisons can be used as an alternative to build sensible priority lists. This approach could be used for application costs where quality data is often missing. Pair wise comparisons allow for the surveying of stakeholders in the organization to make assessments of applications against particular criteria. For example, we can look at Platforrm Contact Manager vs Salesforce.com CRM in terms of which is most critical to the business. The result is a prioritized list based on either one or multiple stakeholders combined. The results can be hidden from other users based on role if this is appropriate.

Analyze and prioritize initiatives
To help bring more meaning to the information captured, the results can be presented using different graphical and visual presentations. Here we are looking at a rank ordered list of applications. The list presents the highest scoring application at the top of the list and the lowest scoring application at the bottom of the list. The criteria can be weighted and various scenarios applied to evaluate applications based on these criteria. Where Enterprise Architecture information is used with the assessment, the appropriate fields may be turned on or off and concatenated on to the total score.

Architect & design prioritized solutions
We can show the results of the prioritization within the enterprise architecture. In effect, we can use resutls driven from both quantative and qualitative data to show in the actual enterprise architecture what is going on. In this EA view, we are looking at the portfolio of applications, their interfaces to each other and the direction in which that interface exists. System Architect has color-coded the applications to reflect their availability as provided by the application portfolio management environment (focal point) and has adourned the applications with ‘thumbs’ to show whether they are compliant to the architecture. This information is derived from the enterprise architecture in System Architect. We can now target building solution architectures from our prioritized applications. The enterprise architecture will govern what happens ‘down stream’ from the enterprise architecture in the target architectures. Hand offs to environments such as BPM, software design and embedded software/systems design is now possible.

Define scope & roadmap initiatives
Managing the business of IT: Workflow details Tivoli Insight / RPE / Cognos Harvest current infrastructure from CCMDB/TADDM Executive Dashboards Report on Portfolio, project and process Status Practitioner / Project feedback loops Extended Team IT Support System Architect Define Strategy & Vision Build/Update Current State Architecture Analyze to Define Future State of Business Governance and Review Board CEO Team System Architect Capture Future State in TOGAF 9 Compare to Current State, Perform Gap Analysis CIO & CTO, LoB Executives, Enterprise Architects Define Key Capabilities Define Transition Initiatives Architect & Design the Prioritized Solutions Focal Point Collect and Analyze stakeholder / financial priorities Analyze and prioritize Initiatives Define scope & roadmap initiatives Steering Cmte, IT & LoB Executives, PMO Rational Project Conductor with Integration to delivery Project and Program Managers Project Planning Project Execution

Define scope & roadmap initiatives
Transition initiatives require defining the required steps to move from our current state architecture to a set of future states. Often this requires the definition of a series of projects and milestones which move the organization along. In the case of application portfolio management, it is the evolution from the current set of applications to the future set. The visualization of this is a roadmap. Focal Point provides application roadmap views. With the flexibility to look at version support from vendors, related projects etc. The ongoing tracking of the projects and completeness metrics can be put into the dashboard for review by other stakeholders. In combination with the EA, the scope of the project can be constantly reviewed and assessed. The application portfolio can be viewed as changes to the EA occur.

Plan projects for Integrated Execution and Feedback
Once scope is determined, allowing that scope to drive the projects with an integrated project management and application lifecycle solution increases the success rate, and reduces the risks of sacrificing the business benefits of the APM initiatives…

In Summary..… Build a holistic view
IT Planning and Transformation Four steps to success… Build a holistic view Balance current needs and long-term demand Understand the business risk of change Execute and govern your portfolio Increased Visibility Significant efficiency gains through visibility in decision making Savings in the investment budget through better management of transformational projects Improvement in the operations budget by better aligning applications with business demand Enterprise Decision Support Analysis and Optimization Business and IT Alignment Business Driven Innovation

Author Notes: Optional IBM Rational “Questions” Breaker Slide

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