1. Creative Commons Sustainable IT Architecture Value of IS Intangile Assets February 2012 1 Sustainable IT Architecture www.sustainableitarchitecture.com Value of IS Intangible Assets Intrinsic value of Data, Rules and Processes By Pierre Bonnet - February, 2012 Creative Commons www.sustainableitarchitecture.com Slides desk Sustainable IT Architecture

2. www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 2 Agenda Set the scene Definition & key concepts How to measure? A framework to assess IS Assets Uses Cases Use on the cloud A tool to implement the framework

3. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 3 Speaker Manager Vietnamesse operations

4. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 4 1.Set the scene

5. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 5 IS Assets in the accounting landscape Tangible assets physical existence ------ machines tools real estates cash hardware../.. Intangible assets no physical existence ------ brands Intellectual properties patents knowledge – working procedures HR - Organizations Customer relationships - Partners Software (ERP, Legacy, SOA…) Information System Ref/Master Data Business Rules Processes IS Assets Assets Accounting, Chart of accounts Innovative accounting approaches like IAS/IFRS and assets classifications such as Edvinsson & Malone, ARC IC reporting, The Danish Guidelines, Meritum, IC- Rating, Wissensbilanz, the METI model, the IC-dVAL method, etc.

6. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 6 IS Value based on three facets

7. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 7 Academic example

8. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 8 Innovative holistic point of view Intrinsic Value Use Value Business Value Analysis Bad Worst situation => no real value within such a company GoodBad Strange situation => where IS assets are good even though bad working procedures are used (use value). By the way, as the business value is bad either IS assets should be sold to another company, either the company should change its strategic business commitments Good Bad Strange situation => where IS assets and working procedures are good whereas business value is not important. This is a similar situation with the previous one GoodBadGood Strange situation => where IS assets are good even though bad working procedures are used (use value). Fortunately, the business value is good. The question raised should be: can these bad working procedures damage IS assets over time? BadGood Suspect situation => because good outcomes in use value and business value hide a deeper weakness in IS assets (intrinsic value). This good situation in use and business values is unsustainable as the IS assets still remain bad Bad Good Strange situation => where business value seems good even though bad working procedures are used (use value) and IS assets are weak (intrinsic value) BadGoodBad Trap situation => where working procedures (use value) are good but IS assets (intrinsic value) and business value still remain bad. In reality, this company has a poor value and the bad quality of its IS assets will generate serious problems soon Good Ideal situation => where all values are aligned

9. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 9 IS Quality Indicators Transparency Auditability Agility Mastering IT Complexity Security sturdiness Performance Reversibility Etc. Reliability Fault tolerance

10. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 10 Applied to TOGAF ADM

11. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 11 Applied to Zachman

12. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 12 2. How to measure?

13. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 13 3 domains of assessment How data, rules and processes are documented? What are the modeling procedures used? Knowledge management “You own a data model… but is it a low- level description or a semantic model?” Quick illustrations

14. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 14 3 domains of assessment How data, rules and processes are documented? What are the modeling procedures used? Knowledge management What are governance features available to users to manage their IS Assets (data, rules, processes)? Governance features This part doesn’t deal with the quality of the organization but the quality of the governance features like: version management, permission management, authoring, etc. “Do you manage you ref/master data with spreadsheets or with a more robust solution bringing real governance features?” Quick illustrations “You own a data model… but is it a low- level description or a semantic model?”

15. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 15 3 domains of assessment How data, rules and processes are documented? What are the modeling procedures used? Knowledge management What are governance features available to users to manage their IS Assets (data, rules, processes)? Governance features This part doesn’t deal with the quality of the organization but the quality of the governance features like: version management, permission management, authoring, etc. How data, rules and processes are implemented? Are they based on MDM, BRMS and BPM? IT management “Do you manage you ref/master data with spreadsheets or with a more robust solution bringing real governance features?” “Are your IS Assets hard-coded or managed through business repositories such as MDM, BRMS and BPM?” Quick illustrations “You own a data model… but is it a low- level description or a semantic model?”

16. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 16 3 domains x 3 types of IS Assets This is the IS “Rating Tool matrix” It provides nine points of assessments Every case of this matrix holds a set of questions to conduct the rating Enterprise Architecture is employed at the level of the knowledge management MDM, BRMS and BPM tools are employed at the level of the IT infrastructure

17. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 17 Set of questions for every case About 100 questions to cover the whole matrix Each answer is ranked with help from 5 levels low basic medium advanced optimized Therefore about 500 points of measure

18. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 18 Examples

19. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 19 Examples

20. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 20 List of questions applied to Data

21. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 21 List of questions applied to Rules

22. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 22 List of questions applied to Processes

23. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 23 Letter #1Letter #2Letter #3 At the highest level of the consolidation Each letter gives a consolidated rank (performance level) for Data, Business Rules and Processes

24. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 24

25. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 25 3. Uses cases

26. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 26 BC C- C B DataRulesProcess Knowledge Management Governance Function IT Integration Legacy rating AA A AC-C A B DataRulesProcess Target rating Risk analysis applied to the transformation Knowledge Management Governance Function IT Integration Use case

27. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 27 Use case D B CA Legacy Milestones Target High risk Medium risk

28. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 28 Use case Scenario 1 C B- A- B Legacy (2 systems) BA Target A Scenario 2 Scenario 1 Scenario 2 Milestone 1 Milestone 2 High risk Medium risk

29. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 29 Use case C C B C A B B C- Legacy Expected target (V lifecycle) A- B (V lifecycle) Iteration 1 Iteration 2 Outcomes Expected target Outcomes

30. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 30 Use case

31. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 31 4. Use on the cloud

32. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 32 Use on the Cloud

33. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 33 Use on the Cloud Three domains of measure Three types of IS Assets Scale from Low to Optimized used to define situations of measure. Note the weight from 1 to 10

34. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 34 Use on the Cloud

35. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 35 Use on the Cloud Not to be updated when rating as this is the database knowledge stemming from the IS Rating Tool ---- This information is used to decide the rating depending on the situation of measure: from low to optimized Rating applied to existing system and to targeted one

36. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 36 Use on the Cloud

37. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 37 Dashboard

38. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 38 Dashboard

39. Sustainable IT Architecture www.sustainableitarchitecture.com Sustainable IT Architecture – IS Value 39 Contact details www.pierre-bonnet.com Thanks and see you soon! pierre.orchestra