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Enterprise Architecting Professor Deborah Nightingale November 21, 2005

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Page 1: 19 ent architect - MIT OpenCourseWare...enterprise performance objectives, etc) and desired enterprise “ilities” (flexibility, scalability, agility, etc.) influence the enterprise

Enterprise Architecting

Professor Deborah NightingaleNovember 21, 2005

Page 2: 19 ent architect - MIT OpenCourseWare...enterprise performance objectives, etc) and desired enterprise “ilities” (flexibility, scalability, agility, etc.) influence the enterprise

Expanding Enterprise Focus

• Manufacturing • •

Success through

Lean applied to enabling processes • HR •

Success through enterprise integration

to value

Success through total enterprise

of all stakeholders • Industry • Government • • Employees

EVOLUTION OF LEAN ENTERPRISE THINKING

Success through networked enterprises

Expanding the lean boundaries • Suppliers • Customers • Partners

Increasing Total

Enterprise Effectiveness

Functional lean successes

Product Dev. Supplier Network

“Islands” of Success

interaction between functions

IT, etc.

Transition from waste minimization

creation

integration

Suppliers

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 2

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The Challenge of Complex Enterprise Systems

• Growing complexity of technological systems

• Increasing complexity of interactions across the enterprise

• Need for a broad view of enterprises as systems

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 3

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Emerging Key Challenges

• Managing increasing technological complexity

• Designing collaborative networked enterprises

• Adapting to fast-changing external environment

• Coordinating across multiple interfaces

MOVING FROM THE PAST TOWARDS THE FUTURE (vertically integrated) enterprises (networked) enterprises

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 4

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Integrated Enterprise

Customer

Product Development

Supplier Network

Product Support

Finance, HR, IT, Legal, etc...

Manufacturing Operations

• Organization

• Processes

• Technology

• Information Architecting approaches traditionally

only look at a single dimension!

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 5

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Looking Ahead – We see Evolving Enterprise Scope

Environment

Finance/HR/IT

Customer

Supplier Network

Product DevelopmentProduct Support

Manufacturing Operations

Enterprise

Shareholders

Finance/HR/IT

Customer

Supplier Network

Product DevelopmentProduct Support

Manufacturing Operations

Enterprise

Finance/HR/IT

Customer

Supplier Network

Product DevelopmentProduct Support

Manufacturing Operations

Enterprise

Finance/HR/IT

Customer

Supplier Network

Product DevelopmentProduct Support

Manufacturing Operations

Enterprise

Government

Partners

Finance/HR/IT

Customer

Supplier Network

Product DevelopmentProduct Support

Manufacturing Operations

EnterpriseFinance/HR/ITFinance/HR/IT

CustomerCustomer

Supplier NetworkSupplier Network

Product DevelopmentProduct DevelopmentProduct SupportProduct Support

Manufacturing Operations

ManufacturingOperations

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 6

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Evolution of Lean: Total Integrated Enterprise

Enterprise

Employees

Suppliers

Prime

Enterprise

and Unions

Suppliers

Customers

Contractors

& Unions

Gov’t

Customers

Contractors

Partners Employees

Gov’t Prime

Partners

Connected Enterprise Total Integrated Enterprise

New Enterprise Stakeholder Models are Emerging

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 7

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Systems Approach to Enterprise

• New strategic systems perspective

• Viewing enterprises as holistic and highly networked systems

• Integrating management processes, lifecycle processes and enabling infrastructure systems

• Balancing needs of multiple stakeholders working across boundaries

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 8

Page 9: 19 ent architect - MIT OpenCourseWare...enterprise performance objectives, etc) and desired enterprise “ilities” (flexibility, scalability, agility, etc.) influence the enterprise

Motivation for Enterprise Architecting

• In order to transform an enterprise we need toknow not only where we are, but moreimportantly where we want to be (future state)

• In enterprise value analysis how do we definethe “future state” of the enterprise?

• Once we define the future “vision” how do we design the enterprise?

• How do we incorporate the multiple dimensions at the enterprise level?

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 9

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Architecting vs Engineering

• The complexity of 21st century systems is drivingsystems architecting as an important disciplinewithin systems engineering (and sometimesconsidered to be independent of SE)

• Similarly, the complexity of 21st century enterprisesis driving the need for enterprise architecting asdistinct from enterprise engineering

Enterprise Architecting defines the desired conceptual properties of an enterprise to be developed(greenfield) or evolved (most typical)

• Purpose (or function) • Structure (or form) • Top level conceptual design

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 10

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Enterprise Architecting versus Enterprise Engineering

Enterprise Engineering provides the successful strategies and implementation approaches for transformation of an enterprise from ‘as is’ to a ‘to be’ state

Enterprise Architecting provides the strategies and modeling approaches to ensure we spend time developing the possible ‘could be’ states, and evaluating the best alternative given a set of desired properties and criteria for the future enterprise

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 11

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ArchitectingArchitecting

Enterprise Architecting Enables Greater Efficiency and Effectiveness

ArchitectingArchitectingArchitectingArchitecting

OrganizationOrganization

ProcessesProcessesStrategyStrategy

TechnologyTechnologyKnowledgeKnowledge

ArchitectingArchitecting

• Effective integration – managingcomplex interdependencies

• System Optimization, not localoptimization

• Knowledge-based enterprisecapabilities

• Achieving desired future statecharacteristics • Agility • Flexibility • Reconfigurability

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 12

Networked Lean Enterprises

Delivering Effects-based On-demand Value

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Enterprise ArchitectingEnterprise Architecting –– AchievingAchieving Greater Efficiency & EffectivenessGreater Efficiency & Effectiveness

Effic

ienc

y

Pushing out the value-creation frontier

Current State Enterprise Architecture

Desired Future State Enterprise Architecture

Effectiveness ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 13

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Some Questions…

• What Systems Engineering/Systems Architecting tools/methodologies be applied at the enterprise level?

• What new methodologies do we need at the enterprise level to address organization, process, product, information, and technology issues?

• What new intellectual underpinnings/constructs can we contribute?

• What new research is required? ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 14

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Current Systems Engineering Research Topics

• Developing Future Systems Workforce

• Evolvable Systems and “Ilities”

• Evolvable Systems Architectures

• Architecting for Dynamic Stakeholder Utility

• Multi-attribute Trade Space Exploration

• Capabilities versus Value-based Approaches

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 15

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© Deborah Nightingale, 2005 Massachusetts Institute of TechnologyESD.61J / 16.852J: Integrating the Lean Enterprise Page 16

Parallels in Creating Products and Enterprises

ACHIEVING REQUIREMENTS

TAKES BOTH

ACHIEVINGREQUIREMENTS

TAKES BOTH

ENTERPRISE ARCHITECTINGPRODUCT ARCHITECTING

ENTERPRISE ENGINEERINGPRODUCT ENGINEERING

PRODUCT ENTERPRISE

Performance “Ilities”

Value

Organizational Performance

=

=

BALANCE

=

CUSTOMER REQUIRESCUSTOMER REQUIRES

PRODUCTPRODUCT ENTERPRISEENTERPRISE

•Capability •Affordability •Responsiveness

•Capability •Affordability•Responsiveness

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Enterprise Systems Architecting As An Emerging Art And Science

Architecting looks not just at transition from an ‘as is’ to the ‘to be’ state, but also at the underlying decision analysis related tovarious alternative ‘could be’ states

Architecting enriches the thinking about the enterprise through adeeper exploration of each enterprise view, and at theinterconnections and interrelationships between these views

Decisions are made about the alternatives in context of the business model, technology, strategy, culture, purpose, and other factors

Architecting is both art and science, and the current state ofsystems architecting is probably more of the former • The ‘art’ uses qualitative and heuristic techniques including

lessons learned, value judgments, and soft measures • Increasingly, architecting is a science using quantitative analytic

techniques - math, modeling, measurement

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 17

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Enterprise Architecting – What are the Key Questions?

DesigningDesigningFuture

Lean Enterprises

EvolvingEvolvingAdaptive

Lean Enterprises

New Business ModelsBusiness Models& ValueValue--CreationCreation

Frameworks

y How do we construct robust value propositions?

y What are the emerging new business models?

y What are the key characteristics of emerging networked enterprises?

y How can knowledge be transformed for competitive advantage?

y How do you create both efficient and effective lean enterprises?

y How do you organize to deliver best value to stakeholders?

y How do you build virtual lean enterprise networks?

y What measures & incentives drive high-performing enterprises?

y How do you architect an enterprise that can most effectively produce a desired product system?

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 18

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Integrated Research Agenda

• Theoretical foundations -- Make progress towards defining & evolving Enterprise Science fundamentals supporting Enterprise Architecting• Integrate multiple domains of existing theory-based knowledge • Define meaningful constructs, abstraction levels & linkages • Create complementary new knowledge in priority areas

• Methods and techniques -- Define & evolve an integrated analytical portfolio • Define design strategies & techniques • Identify applicable modeling & simulation methods • Develop heuristics, analytical engines & algorithms

• Implementation practices -- Define & develop an integrated implementation toolset • Capture and codify lessons learned from field research • Identify effective approaches & practices • Co-develop implementation tools (jointly with LAI stakeholders)

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 19

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Enterprise Architecture -- Focus

• Enterprise integration • Leadership, lifecycle and infrastructure support processes • Modeling enterprise interactions

• Emerging enterprise architectures • Emerging new stakeholder value propositions • Business models • Structure & behavior • Alignment; complementarity

• Definition and evaluation of current-state and desired future-state enterprise architectures • Enterprise dynamics modeling -- co-evolutionary dynamics of system and enterprise

architectures, enterprise-environment interactions, multiscale behavioral dynamics • Future state enterprise architecture attributes (flexibility, evolvability, adaptability,

robustness, reconfigurability, etc.) • Tradespace analyses

• Navigation of transition process (transformation) • Transition trajectory • Adaptive steering • Decision-support systems to manage uncertainty

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 20

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Enterprise Architecting -­Research Projects Currently Under Way

• Enterprise performance measurement systems• Multi-platform thinking: Integrating knowledge in the

lean enterprise • Dynamic evolution of enterprise and system• Language, models and architectures • Integration strategies across enterprise networks

guiding principles for enterprise architecting • Impact of enterprise architectures on innovation • Architecting large project enterprises • Engineering an X-enterprise • Enterprise design for dynamic complexity

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 21

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MIT Course ESD.38J - Enterprise Architecting

- Learning Objectives • Have an appreciation for the emerging field of Enterprise Architecting and its

importance in the field of Engineering Systems • Understand how strategic drivers (business model, strategic focus,

enterprise performance objectives, etc) and desired enterprise “ilities”(flexibility, scalability, agility, etc.) influence the enterprise architecture

• Describe the different views (policy, organizational structure, processes, knowledge, product system, enabling technologies) that comprise anenterprise architecture

• Understand the enterprise architecture frameworks, models, and toolsets currently being applied in practice and research

• Understand how enterprise architecting is being applied in real world engineering systems

• Gain insight into dimensions of current enterprise architecting research • Recognize the challenges, barriers, and enablers in enterprise architecting

and define future research opportunities • Contribute to defining enterprise architecting heuristics

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 22

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Summary • Enterprises, much like products, must be architected as complex

integrated systems • In the past decade, we’ve seen the evolution of enterprise architecting

which has led to development of architecture frameworks, standards, modeling languages and tools

• We see the current field as too limited, and that a more holistic systems approach to architecting enterprises is needed

• Complex enterprises exhibit systems properties, as well as uniqueemergent qualities/values rooted in the human dimension

• There is significant research ongoing at MIT and other leading universities to evolve this art and science, and more is needed to address challenging research questions

• Further work is beginning on how to educate the future systemsleaders who will architect, build, and transform complex enterprise systems

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 23