Enterprise Architecture: Charting the Journey to Business Value

Nigel Green
CLP Power Hong Kong Ltd.

A Short Intro..

Head of Group Technology and Architecture CLP Power HK Ltd. Since Feb. 2012 Over 15 years in Enterprise Architecture 6 years with DHL International in Hong Kong 5 years with Capgemini UK EA consulting

..now on with the show!

A simple statement

..todays world is complicated!

Whats behind this complexity?

Exponential Globalisation Collaborative innovation Social Network leverage Ever-growing Technology Options Connected everything

New Business Models The Cloud The Internet of Things Mashed-up Business JIT demand chain

Faster World Economy Change

W W W e e e b b b 1.0 2.0 ?.?

Consumer-led IT Ubiquitous Mobility

increased speed of change fuels CoMpLeXitY

Unwanted complexity creates

barriers to business change & innovation.

http://www.flickr.com/photos/foxtongue/212050251/

Enterprise Architecture Brings Order to a Chaotic World

The Executive Board

Enterprise Architect

The Enterprise Architect helps organise and navigate business-behavior towards its Vision & Strategy
http://www.flickr.com/photos/foxtongue/212050251/ http://www.flickr.com/photos/hisgett/220279395/

The EA Mission:

help make the business change journey better, faster & cheaper
by ensuring that unnecessary complexity is avoided and barriers-to-change identified and dealt with.

Enterprise Architecture's Roots Are Mostly In IT

Solving IT-related Problems
Exploiting IT-enabled Opportunities

Complexity and Cost caused by proliferation of diverse technologies, databases and applications Projects taking too long and costing too much

Faster, more effective decision-making and change Exploitation of information Use of new technology Keeping up with new trends (e.g. The Cloud & Mobility)

Information systems not doing what was expected

IT is still a large part of the Enterprise Architecture, however

An enterprise has an architecture, even if it doesnt have electricity

(Colm Butler, IT Architecture Practitioners conference 2005)

Businesses are eco-systems of people, processes and technology that demonstrate a behavior (some good, some bad) with or without an Architectural Blueprint.

The question isnt

Does my business need Enterprise Architecture?

The question is Will my business benefit from making the Enterprise Architecture explicit?

A city has implicit context & behaviours knowing how to navigate it adds value!

Businesses are like cities of people, processes & technologies. Enterprise Architecture is similar to City Planning

Planning & navigating The City

The Enterprise Architect helps organise and navigate Enterprise behaviour and align with desired business outcomes

Enterprise Architects use a variety of Maps & Navigation tools

How to know which to use when? Luckily help is at hand

The Zachman Content Framework: A Way to focus on different aspects of EA

BUSINESS VIEWS

PROCESS VIEWS INFORMATION VIEWS TECHNOLOGY VIEWS DELIVERY VIEWS

This helps us understand what were mapping, whats not been mapped and one view connects to another.

TOGAF ADM: A Step-By Step Process for doing EA

Step

Step

Step

Step

Step

Step

Step

This helps us understand the sequence of work and measure where we are in the EA journey.

EA Frameworks (e.g. Zachman & TOGAF) recommend a top-down sequence, starting with Strategy & Vision

the reality is often something else.

Mapping the Enterprise Architecture Middle-Out

WHAT
OUTCOMES & CONTENT

HOW
PROCESS & PROCEDURE

WHERE
LOCATION

WHO
STAKEHOLDERS & USERS

WHEN
EVENTS & TIMINGS

WHY
MISSION & MOTIVATION

BUSINESS STRATEGY BUSINESS OPERATING MODEL BUSINESS PROCESSES & CAPABILITIES BUSINESS INFORMATION & KNOWLEDGE BASE DATA & SECURITY

APPLICATIONS
INTEGRATION TECHNOLOGY INFRASTUCTURE IT SERVICE DELIVERY

Using starts in the middle and is developed up, down and across the enterprise. EA often a Zachman-Like Model

How does the Enterprise Architect do Middle-Out?

Creates high level AS-IS and TO-BE Blueprints of the Applications, Data, Integration and Technology domains. Develops high-level Transition Roadmaps. Focuses on documenting & rationalising the applications portfolio Focuses on the Information Exchanges between applications and starts to build a business-wide Glossary of Terms Seeks opportunities for common services (typically in Apps Integration) Ties new software buy/build to EA principles (traceability back to business value) Acts as Design Authority for development to make sure the big picture is kept in mind Ensure change programmes focus on the People, Process and Technology dimensions Assess vendor products against EA blueprints Engage with the business to promote the value of EA by working with them to develop: Business Capability Model (aka Services Model)

Business Process Models

Business information Models

The the early stages of establishing EA are focused on getting the IT House-In-Order (making it Auditable) and establishing credibility with the business and making the CIO happy!

How to make Enterprise Architecture business relevant

The Enterprise Architecture of your business Is not the same as another

It differs between businesses

(the Enduring Business Purpose of the business)

AND the focus of EA will change over time. The perceived value of EA will depend on the Stakeholders current objectives & drivers. These create a changing Centre-of-Gravity
IT-led Innovation

Growth by Acquisition

Cost Reduction & Divestment

Customer First

The Journey from Business Values to Enterprise Architecture

Examine..

Primary Motivators

EA Principles

Enterprise Architecture

Knowledge of your business TRUMPS framework & methodology expertise!

EA methodologies & frameworks are very useful, but great Enterprise Architects focus on knowledge of the business first. We do Anthropology before Architecture!

A recap
EA is about removing unwanted complexity to deliver tangible business value EA focus varies between organisations. The focus of EA changes over time, depending on the current business Centre-of-Gravity. EA often starts with an IT focus but great EAs focus on the whole business Successful EA starts with business anthropology not methodology Great EAs are complexity Navigators

EA at CLP Power Hong Kong Ltd.

Business Centre of Gravity Historical Focus

Enduring Purpose: Generate, Distribute and Sell Electrical Power to Customers in Hong Kong
Service Excellence
Emissions Targets Regulatory Compliance

Shareholder Value

Business Centre of Gravity Current Focus

Tariff Challenges
Potential Changes to Regulatory Framework Cost Reduction

Emissions Targets

Cyber Security
Shareholder Value

Smart Grid

Translates to the focus for EA at CLP:

1. Flexibility & Agility
Responsive to changing business needs for Mobility, Productivity and Process Change Focus on simplicity Improved mix of Invested Asset & Pay-per-Use Doing more with less Protect business information & operation Guard against Cyber Threats Advanced Analytics Customers and Processes Information Variety, Volume and Velocity

2.

IT Total Cost of Ownership

3.

Security & Protection

4.

Leveraged Information Assets

And a set of principles

EA Principles founded on: Simplification Integration Security Agility Visibility User Empowerment Cost Effectiveness

Our Cloud Strategy is an example of our principles applied.

Cloud Strategy
The business context

2010Q2 v1.0

31

The Fixed to Variable Cost Transition Strategy

2012 Fixed Medium-Term Long-Term

BUYING PAY-PER-USE SERVICES OWNING FEWER ASSETS

Variable

CLP Cloud Strategy A Blend of Flexibility and Protection

Public Cloud

CLP Approved Public Cloud Services

Flexibility & Choice

CLP Protected Cloud Services

CLP Virtual Private Cloud

Group IT Services Management

CLP Traditional Core Applications & Operations

Protected Operation

CLP Cloud Strategy A Blend of Flexibility and Protection

Potential Changes to Regulatory Framework

Public Cloud

CLP Approved Public Cloud Services

Flexibility & Choice

CLP Protected Cloud Services

CLP Virtual Private Cloud

Smart Grid
Cost Reduction

Tariff Challenges

Group IT Services Management

Cyber Security

CLP Traditional Core Applications & Operations

Protected Operation

Business Value of the CLP Cloud Strategy 1. Open CLP-non-standard technologies supported including Open Standards solutions. Secure - sensitive data is either held within CLP or within Hong Kong. All services are tested and approved by Group IT. Responsive & Elastic- use services as-and-when theyre needed. Cost Effective - Services are offered on a Pay-Per-Use or Leveraged-Asset basis. Future-Proofed Aligned with global trend towards Pay-Per-Use IT Services and underpinning technical standards

2.

3. 4.

5.

What does it take to succeed with EA?

What do Enterprise Architects Do?

Develop and maintain EA Principles
Rationalise application landscapes

Select hardware and plan Technical Infrastructure

Rationalise & improve business processes

Develop reference models and apply design patterns

Design and manage models of the Enterprise

and

Curate Enterprise Knowledge & Semantics

Govern the architecture of IT solutions

Identify cross-organisational synergies

Tackle Wicked cross-organisational problems

its IT

Map-out & join-up business change programmes

Explore new ideas

There appears to be a demand for Enterprise Architecture but...

Businesses that do EA well..

See EA as a way to organise People, Process and Technology for faster time-to-value

Business that dont..

See EA as an expensive IT Ivory Tower that draws lots of pictures, slows progress & adds little value.

The success of Enterprise Architecture is highly dependant on the soft skills of the Enterprise Architect and the support they obtain.

The Chairman of a UK Logistics business believes that their enterprise architecture provides the most viable route to strategic value.

Paradoxically, the CIO never discusses Enterprise Architecture with him.

The Lessons Learnt

1. Focus on Business Outcomes (Not EA Output!) 2. Bring Stakeholders with you - laser focus on Value to them 3. Be pragmatic dont sweat the small stuff! 4. Speak the language of the Business and translate Technology opportunities and challenges 5. Remind yourself that EA is just the way we architects see the world avoid religious conversion!

Tailor to your business situation Anthropology and Archaeology before Architecture!

Thanks for listening

nigel.green@clp.com.hk

A case study (if we have time!)

Integrating Web Oriented Architecture & Agile/Lean Development with Traditional IT to deliver strategic business value

Business Profile
Privately owned Logistics business within a group that includes on-line retail and media business. On-line retail focused national parcel delivery service, Sees information-based services as a future market differentiator. Circa 20% UKs parcel delivery market Franchised operational model for Last Mile High degree of information sharing and process integration with household name Customers 25 million business events per day by 2013

The Business Centre-of-Gravity

Current Centre-of-Gravity: integrate & transform business operations through information systems to drive up market capitalisation ten-fold within 3 years IT Organisations high-level motivators: Protect current operation Professionalise IT services Innovate by asking What Would The Web Do?

The main focus for EA has been to understand the implications of the question What Would The Web Do? in the context of the the current Centre-of-Gravity of the business.

What Would The Web Do? Their answers

Know how to leverage the Web Start small and grow incrementally avoid big company bureaucracy Bear user adoption in mind from the start maintain an inclusive mentality Build communities of early adopters both to build & use product Invite feedback and build upon good ideas Create small, talented teams that arent afraid to experiment and are allowed to Fail Prove ideas early & help business communities see the potential Provide simple, targeted & useful information and software components that are easy-to-adopt Exploit Open Source Technologies & Cloud Services

EA Mission: Create an architectural model that allows for emergence, rapid innovation and safe-fail . and at the same time, protect core operational processes and systems

A Blended Enterprise Architecture

Highly Adaptive & Emergent, Innovation Apps

Cloud Creation & Leverage

PUB/ SUB

Protective membrane between the two worlds

Simplified, Event-based Messaging

PUB/ SUB

Rigorous, expert systems.

Optimised Internal IT Portfolio

A conceptual model that shows how they will strike a balance between rapid innovation apps and core engine systems

IT Enterprise Architecture focus Areas

INNOVATIVE & AGILE APPS

MASTER DATA SERVICES

PUB/ SUB

INTEGRATION SERVICES

PUB/ SUB

BUSINESS EVENT SERVICES

CORE TRANSACTION APPS

IT Middle-Out EA focus: Clear method for determining which SDLC type to use (i.e. Lean/Traditional). Rigorous definition of integration, master data and event services.

EA for Traditional SDLC vs. Lean

EA Aspect
EA Principles EA Governance SDLC Type

Traditional (Robust)
Strictly Adhered to (Tight Constraint) Formal SDLC Gates. Strong Transaction and Rules-based apps. Integration and Master Data Management Services. Business Intelligence. Mission Critical systems where failure creates significant disruption to business operations. Formal Data Model, Process Model, Rule Models. Detailed standards for all integration patterns (i.e. EIP) SOA/Strong-Transaction/Package-based architecture.

Lean (Adaptive)
Strictly Adhered to (Light Constraint) Initial design shaping but fewer but extended operational Gates. Informal reviews. Customer-facing apps. 3rd Party interaction apps. Disposable Campaign apps. High graphical content/user experience. Failure can be managed and rapid innovation is encouraged. Open/extendable schema based on Open Standards and Patterns. Informal Process Model. Pre-defined Meta-models for persistence, messaging and Master Data. WOA/RESTful/Cloud Services architecture. Pre-selected Web-based Open Source tools (e.g. Rails, NoSQL DBs etc.). Device independent. Adaptive & emergent based on user feedback. Rapid code release long liife Beta cycles. Provision for experimentation & Safe-Fail. Systems of Capture Systems of Reference

Standards, Models & Architectural Style.

Development Tools & run-time environment Solution Fit/ and Timeto-Value Data Integrity Profile

Right tool for the solution assessed with developer/provider within license cost parameters. Constrained device options. Right-first-Time. Formal acceptance and release to production. Few release cycles. Systems of Record Systems of Capture Systems of Reference