5th cio 100 summit enterprise architecture presentation by pti consulting
TRANSCRIPT
FY 2012 Presented by
Peter Muya, Co-Founder & Managing Partner
1. About the presenter
2. Why should I care?
3. What is EA anyway?
4. How does it fit in context of transformation?
5. Where is the value?
6. Where do I begin?
7. Closing Remarks
Contents
Peter Muya
Summary Profile :
An award winning agent of enterprise transformation through delivery
of capabilities that create a synergy between direction, transformation
and operation, within the enterprise.
Global Recognition:
• 2014 iCMG IT Landscape Rationalization Winner
• 2015 iCMG Transformation Planning Finalist
Practice Experience 15 years
Industry Experience Telecommunications;
Financial Services (Banking and Insurance)
Public Sector & Not-for Profit Sectors
Construction & Real Estate
Recent EA projects ( 3
yrs and below)
Britam, Safaricom, Nairobi City County, Ministry of Health
Professional
Qualifications
• TOGAF Certified (License Num: 66074)
• POET Practitioner (License Num: 0000220)
Organization Co-Founder and Managing Partner of PTI Consulting
Contacts email:- [email protected]
web: www.pticonsulting.co.ke, twitter: @themuyas, @pticonsulting
2014 Architecture
Awards Site
Opening Remarks…How do we effect Change?
How an Enterprise affects Transformation is becoming a Strategic Strength
or a Strategic Weakness, where massive opportunities can be gained or massive
problems will result.
The rescue plan turned out to be exciting because as the team leader, I was able to
touch the minds and hearts of various stakeholders thereby recording a
turnaround. ..It is my pride to see this giant rise again. (Jonathan Ciano, 2011)
Simply responding to challenges is not enough – we have to anticipate them. ..to
succeed we need to inculcate a sense of ceaseless change in the way we do business.
This must involve re-designing our business processes to be more adaptable and
customer-driven (Dr Titus Naikuni, 2011)
"A third network operator will have to compete on service, coverage and price.
We’ve spent 200 million euros on our network. Any competitor will have to do the
same. Econet could take us on in niche markets but then there’s the provision of
service and price.” (Michael Joseph, early 2000)
Instead of having a third operator, the Government should have asked us what we
were going to do to cover remote areas. Tanzania had more operators but it has
not produced better coverage and better prices.”
(Philippe Vandebrouck, early 2000)
WHO
HOW
WHAT
WITH
WHAT
Enterprises growing confidence IT-Led transformation
The project will transfrom Britam by “ delivering world-class business processes
and state-of-the-art IT systems. It will move the company from being a product-
centred organization into a customer-centric organization, providing customers
with first-class service” (Britam Group MD on Daily Nation, Oct 13, 2015)
To whom more is given more is required…..
In 2011, the total ICT
expenditure hit a
staggering Sh88
billion. (DN, October 31, 2015)
Planned Sh1.2bn tax
system faces delays (SN, APRIL 26, 2015)
Britam to spend Sh 3bn to link businesses in seven countries (DN, October 13, 2015)
This initiative (KenTrade System) will undoubtedly transform the way we conduct
international trade transactions, not only in Kenya but also in the wider East African
region. (H.E President Uhuru Kenyatta)
But sometimes we never quite reach glory land…
Source: International Project Leadership Academy
Ontario
Ministry of
Community
and Social
Services
Project type : Welfare management system
Project name : Social Assistance Management System
Date : Mar 2015 Cost : $214M
Failure:- Lack of QA. Too early launch. Poorly defined
requirements. Ineffectual training
State of
Minnesota
Project type : Health Insurance
Project name : The Affordable Care Act – MNsure
Date : Jan 2014 Cost : Est $150M
Failure: Poorly defined requirements. No QA. Poor
communication. Complexity of integration. Mismanaged risks.
Unproven COTS. Poor selection.
British
Home Office
Project type : Immigration Controls
Project name : e-Border System
Date : Mar 2014 Cost : £224M
Failure: Poorly controlled procurement. Poor QA. Poor
sourcing without a SME. Poorly defined requirements. Under-
estimated complexity. Politics.
Still wondering why you should care…?
“Give me six hours to cut down a tree
and I will spend the first four sharpening
the axe”
- Abraham Lincoln -
“We can not solve our problems with the
same level of thinking that created them”
- Albert Einstein -
History…..
In 1982 John Zachman was credited
as the brain child of what is today
known as Enterprise Architecture.
He created what he refers as the
Periodic Table descriptive
representation of an enterprise which is
today know as Zachman Framework
There are over 900 architecture frameworks today all developed with
the motivation of help in enterprise transformation.
There are over 400 modeling tools developed to help in enterprise
transformation
The frameworks and tools avalanche each doing part of the whole is
itself mind boggling and can be an impediment to transformation
Boardroom conversations between “IT & Business”
Business Talk
In English, explain to me
what is a Computer
Architecture?
Case studies exist to
demonstrate how this
reference model has been used
to develop IT standards
I am not technical. It
sounds too theoretical
Think of it using object /
inheritance approach
Who else has done this
kind of work?
The business layer sits on
top of data and applications
layer
IT / Architect Talk
A blueprint of
interoperability standards
and guidance
So what is the output I
expect from this?
Thank you. I now
understand…
What is EA?
Direction
Transformation
Operation
Support
What is EA?
Direction
Transformation
Operation
Support
Contextual
Conceptual
Logical
Physical Operational
A
E
What is EA? – What we are used to….
Business
Data
Applications
Infrastructure Portfolio
rigorous
description of the
structure of an
enterprise, its
decomposition
into subsystems,
the relationships
between them
What is EA? - Putting it in context….
SCOPE DEFINITION
The Architecture of... the whole of the
Enterprise (including but not limited to
IT) ...set in the context of... the things outside
the Enterprise
CONTEXT
set in the context of... the
things outside the
Enterprise
The Architecture of... the IT of the whole of
the Enterprise ...
set in the context of... the
things in the Enterprise
that are connected to IT
and the Business strategy
The Architecture of... a very large IT project ...
set in the context of... the
things in the Enterprise
that are connected to
that IT project and the
IT roadmap
Traditional EA view of structure of an enterprise…
Business Architecture Domain
Data / Information Architecture
Domain
Applications Architecture Domain
Technology / Infrastructure
Architecture Domain
Models
that
translate
to IT
solutions
Business that
uses IT
IT
Solutions
Projects
Pragmatic view of the structure of an enterprise…
ENTERPRISE CONTEXT
METHODS – (How we do things e.g. business
processes)
ARTIFACTS – (What we produce / consume e.g.
products or services)
CULTURE – (Who does what, how, the relationships
between them and the motivation behind those actions
e.g Org Charts, Values, Beliefs)
ENVIRONMENT – (With what do we to perform
our methods to produce or consume artifacts e.g.
Office Space, Systems, Working Tools etc)
The Architecture Paradigm TM
YR1 YR2 YR3 YR4
Transformation
Complexity
TC = fn(S, R, SC, TV)
STRUCTURAL COMPLEXITY (SC) TR
AN
SF
OR
MA
TIO
N V
OL
AIT
LIT
Y (
TV
)
REASON FOR CHANGE
(R) SCOPE OF CHANGE
(S)
Enterprise Architecture in Context of Transformation
Direction
Transformation
Operation
Ente
rprise C
onte
xt
Using
Transitioning
Constructing
Elaborating
Initiating
Roadmapping
Strategizing WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
Contextual
Conceptual
Logical
Physical
Operational
Arc
hite
ctu
re
Engin
eering
Engin
eering
Arc
hitectu
re
Enterprise Transformation is a perfect blend….
The yin and the yang of Architecture and Engineering
Theory is to thinking while practice is to doing. Theory provides context for
practice to happen.
The more the structural complexity and transfomational volatility, the more the
transformational complexity and the greater then need for a perfect blend.
80% Effects 20%
Effort
Do more with less…..Look for low hanging fruits
and quick wins…..
Is Cost, Revenue, Optimize a cliché?….
Global Practice of EA – IT Transformation?
EA
Service in
2014
EA revenue (of top EA practices) was estimated
to be US$3.5Bn (365bn KES)
(PwC, EY, Deloitte, HP, TCS, Accenture, IBM)
Effort
Spent on
“EA
layers”
Business architecture (BA): 27%
Information architecture (IA): 14%
Solutions architecture (SA): 27%
Technology architecture (TA): 32% 73%
US$ 2.6Bn (266bn KES) On IT architecture
Source: Gartner
20%
Effort (Effort tactical or
strategic)
80% Effects
(Effects can be
good)
Is Cost, Revenue, Optimize a cliché?….
20%
Effort (Effort tactical or
strategic)
80% Effects
(Effects can also be bad)
80% BAD EFFECTS IS
SERIOUS TROUBLE!!!
Is Cost, Revenue, Optimize a cliché?….
80%
Effort (Effort tactical or
strategic)
20% Good
Effects
(Still not
Justified)
Is Cost, Revenue, Optimize a cliché?….
80%
Effort (Effort tactical or
strategic)
There is no point being efficient / effective today if it
compromises our ability to be efficient tomorrow
Is Cost, Revenue, Optimize a cliché?….
80% Bad Effects
(Catastrophic!!!!)
The real value of EA in context of Transformation
EA helps you manage these interlinked yet competing goals in
order to make informed decisions having considered the
impact and implications
• Effectiveness:- Transform the right things.
• Efficiency:- Transform more with less.
• Agility:- Transform faster with less.
• Durability:- Consistently transform effectively,
efficiently and with agility.
EA helps you think strategically and act tactically.
Interim Model
EA is a journey not a destination…..
Transition from current to target in a pragmatic way (thinking strategic but acting tactically is
fundamental for success)
Bas
elin
e M
odel
Current
Start
YEAR 1
Inte
rim
Model
Objective
Way Point
Budget
Pit-Stop
YEAR 2
Inte
rim
Model
Objective
Way Point
Objective 1 Objective 2
Tar
get
Model
Target
Destination
YEAR 5
YEAR 3 >> 4 >>
Enterprise Strategy Journey
Physical Journey
Enterprise
Context Model
Enterprise
Strategy
Model
Transformat
ion
Model
Operating
Model
Strategic Work
EDR = Ratio of TW to SW to RW at a given point in time
Tactical Work
Strategic Work
Tactical Work
Remedial
Work
Strategic Work
Tactical Work
Remedial
Work
Strategic Work
Tactical Work
Remedial
Work
Year 0 Year 1 Year 2 Year 3
How does it do it? Managing Enterprise Debt.
Ente
rpri
se D
ebt R
atio
What do you get? Artifacts….
Direction
Transformation
Operation Using
Transitioning
Constructing
Elaborating
Initiating
Roadmapping
Strategizing WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
TRANSFORMATIONAL
STRUCTURAL
Motivation (eg. vision)
Actions (Tactics)
Guidance (Policies,
Principles)
Measures (Metrics,
KPIs)
Asses’mt (SWOT)
Methods (Processes,
Procedures)
Artifacts (Products,
Customers,
Suppliers)
Culture (Customers,
Employees,
Values)
Envt (Locations,
Systems,
Tech)
Conceptual
Logical
Physical
WHY
HOW
WHY
HOW
Sample Terms of Reference
Consultancy Scenario #1: Regional Growth
EA focuses on establishing a common framework for defining,
managing and governing Business/ IT structure, relationship
and components.
Consultancy Scenario #2: Mergers and Acquisition
To achieve this model, we are seeking to develop a common
technology architecture for the combined business. The
specific terms of reference for this assignment are......
Employment Scenario #1 Head of EA and Innovation
The Head of EA will act as a technology leader and subject matter
expert.
• Design, develop and implement IT Architecture projects.
• Review technical and application design specifications to assure
integration with the enterprise model.
Start point….Understanding (EA is a Journey)
The "scope" of EA (at any point in time) is determined by the Enterprise Strategy (at
that point in time) not on a functional unit.
Start point….Understanding (EA is a Journey)
Direction
Transformation
Operation
En
terp
rise
Co
nte
xt
Using
Transitioning
Constructing
Elaborating
Initiating
Roadmapping
Strategizing WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
WHY
HOW
Enterprise
Strategy
Strategic
Goals of EA
Execution of
Transformatio
n
How Why
Why How
Types of Enterprise Architects…..
Increasing EA
Maturity
Transformation
Planning and
Governance
99.999% of Enterprises mostly
recruit this type
Type A – Improving EA Type B – “Doing EA”
Type 2 only EA is constrained by context. How? If you force a surgeon to:
1. Save time - by not washing his hands before an operation (Immature
Methods),
2. Save money - by using untested blood and medicine (Immature Artefacts).
3. Not care - about the Hippocratic Oath (Immature Culture).
4. Save money - by using carving knife instead of a scalpel (Immature
Environment).
You can hardly complain when patients keep dying.
N/B: These are examples picked only for illustration without prejudice
How an Enterprise affects Transformation is
becoming a Strategic Strength or a
Strategic Weakness, where massive
opportunities can be gained or massive
problems will result.
Transform transformation in order to
transform Operations
Closing Remarks…How do we effect Change?
Some years back, the then target model
envisioned by each of the leaders of these
enterprises is today a baseline model.
Is it one that was effective, efficient,
agile and durable? You decide.. You have
the power to make or break the future of
your enterprise by the choices you make
today.