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8/2/2019 Applying EA

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1 / June 2007 / Copyright EDS Canada

Applying EnterpriseArchitecture

David Woelfle

Enterprise Architect

CTO, EDS Canada


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Enterprise Architecture is viewed variously as either the Holy Grailof

computing and a critical component in driving the strategy of the Enterprise, or

it is perceived as an expensive boondoggle driven by ivory tower academics.

How do ou effectivel a l Enter rise ArchitectureHow do ou effectivel a l Enter rise Architecture

Enterprise Architecture

Applying Enterprise Architecture2/ June 2007 / Copyright EDS Canada

to improve organizational results?to improve organizational results?

This session will discuss how several large organizations have achieved

significant business results through the proper application

of architecture principles and strategies.


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Agenda

Examples will highlight:

How establishing the architecture early in the project cycle can

reduce project costsreduce project costs and help control scopehelp control scope


How the application of architecture can reduce the cost of operationsreduce the cost of operations

in the mid to long term

How when done badlywhen done badly architecture can have catastrophic

consequences for the enterprise


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What is Enterprise Architecture?



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Data WarehouseData Sources Data

Subscriptions

Data Distribution Analytics

Support

Information

Delivery

Operational Data

Applications/Tools

ETL

ion

/Desktop

Access

Information

Consumers

DataMarts

Staging

DB

D

ODS

ETL

An Architecture Example


Presen

tat

Cubes

ExternalData

Metadata Management

Data Management Services

Plan Monitor Tune Audit Backup / Recover Security SSO

Administration Development Training Operation Support

Source Applications Transformations Business Rules Administration/Stewardship

Process Controls & AnalyticsData Normalization Business Rules Mgmt

Routing Control Security & Administration

Data Models

Processing Statistics Information Transport

Systems Management

Organizational Framework


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Zachman Graphic



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EDS Rightstep

Business Context

and Direction

Industry Architecture Templates,

Business and Technology Trends,

and Market Conditions

Current Business

and IT

Environment

Business Processes

Business Strategy

Business VisionBusiness ObjectivesOperating PrinciplesBusiness Drivers


Current Environment

Business Drivers for Change

InformationArchitecture

Infrastructure Architecture

ApplicationArchitecture

Systems

Management

IT DirectionIT ObjectivesGuiding PrinciplesIT StandardsIT Selection

Enterprise Architecture (Target)

StrategiesIndividual

Programs,

Decisions, and

Change

Management

IT Gaps

Approach

Initiatives

Value

Schedule


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Bottom Line: The Value of Architecture

Paradoxically, enterprise architecture has no intrinsic value,

despite the fact that the informationinformation coursing through it

is profoundly valuable.


The value of information is determined by the competitive

advantage gained through its use.

Source: Meta Group Enterprise Architecture Strategies


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Challenges of Enterprise Architecture?



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What comes first?

Single system?Single system?

Data Model?Data Model?

Infrastructure?Infrastructure?

WAN?WAN?


Process Model?Process Model?


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Request for

Lender/Leasing Company

File of Loan

Data

Reports

Escrow &

Collateral

Interest

Insurance

Notices

Regulatory Body

ComplexityComplexity


Notices

Insurance

Policy

Billing

NoticePayment

Tracker

Consumer

Request for

Insurance

CoverageUn-identified

Notices

Cancel

Renewal

Endorse

Insurance

Correspondence

Requestfor

Coverage

Request for

Insurance

Coverage

Invoice

Billing

Policy

Information

Purchase

Verificationof Coverage


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Cost

High costHigh cost

Lots of manpowerLots of manpower


Lots of delaysLots of delays


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Management buy-in



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Linking to the business



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Some living examples of Enterprise



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Applying Architecture early improves results

Challenge:

Canadian financial institutionCanadian financial institution needed a new web site fordirect traded brokerage accounts

Wanted to be operational in 3 months3 months

Recognized a need for ongoing enhancementsongoing enhancements and releases to

Example #1


meet all of the functional objectives

Business Objectives:

Contain cost

Fast realization

Steady stream of new functionality over time (3 year roadmap)

Flexibility


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How was Architecture applied?

Defined overall application and infrastructure architecture first

Exercise took the team just 3 weeks

Focus was on defining:

Logical boundaries of each section


ross- unc ona serv ces

(identity, authorization, logging, audit)

Isolating each of the major trading product families

(equity, funds, bonds, cash accounts)

Simplifying linkages to key other bank applications by isolating

communications into one set of components

(today we would have used an EAI like Biztalk, but then ..)


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Results

Logical architecture still intact 10 years later

Many functions updates within their elements

EAI tool introduced 5 years after design with only minor modifications


Improved speed to market of new services

Release every 2 to 3 months

Critical functions identified by early users added as add-on to first

upgrade release with few issues


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Architecture done right means.

Better requirements management

Scope control

Applying Enterprise Architecture 19/ June 2007 / Copyright EDS Canada

Alignment of solution to business requirements early

Better management of release map

Reduced complexity


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Good architecture can drive savings

Challenge:

Major global manufacturer needed to overhaul engineering and

design practices globally

Core was going to be new tool sets for CAD / CAE / Simulation /

CIE

Example #2


Business Objectives: Reduce model development time from 60 months to 24 to 30

months

Reduce development cost for a new model by 30% and a model

revision by 50%

Shift to Virtual development methods and away from physical

testing / design paradigms


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How was architecture employed?

First steps:

Architecture scope was defined to align with the corporate processmodel

Functional work task decomposition identified the major sub-processes that needed to be addressed

Cost analysis identified the heavy hitters in terms of cost benefitagainst functional area


Architect applied:

Functional decomposition used to build logical architecture model Application architecture developed against the logical architecture

to align application acquisitions and reduce functional overlap

Initial transformation projects mapped to identify time to benefit


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Structural Challenges

Global Effort

Three major engineering centres, five testing facilities,

24 major outsourced providers of services, 4continents

Resistance to change


After all engineers are smarter than anybody else,

right.

Funding

Project had to be self-funding after the first 12

months, and provide payback in less than 30 months


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Results

Performance improvement

Engineering / design operations costs

reduced by 1/3 in just two years.

Project payback in 18 monthsProject payback in 18 months


months after 18 months, and 30

months after 36 months

Product quality improvementquality improvement of over

15% (measured by reductions in

defects per thousand units of output)


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How did architecture help?

Provided the common frameworkcommon framework for discussion

Divided the project into logical working elements that allowed

for rapid ramprapid ramp--up of activityup of activity


of functionalityof functionality while elements were being developed /

evaluated separately

Costs containedCosts contained by constraining choices / strategies thanks to

pre-defined framework


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When Architecture goes wrong ..

North American division of a large global manufacturer needed a

new ERP solution

Didnt have time for a full architecture

Decided to develop the architecture as each business function of

Example #3


the ERP was implemented

Phase I (classic ERP approach) was finance and administration

Meanwhile the overall business was redeveloping their entire

process model

Neither the PMO, nor the architect caught the developing conflict


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And the loser is ..

Project was two years late and double the projected budget

(55 Million up to 120 Million)

Multiple key requirements missed

Initial scope missed linkages to key corporate processes

Financial activities that affected other areas such as purchasing

were missed


2nd release required a complete rework of the solution increasing

cost of that effort from 25 Million to 45 Million

Scope was significantly changed

2/3s of the business processes were reworked

No new functionality in the 2nd release

(missed 30 original planned enhancements)


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Some suggested approaches.



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Start with creating / choosing a framework

A basic framework to divide the overall architecture into logical

units can help with:

Establishing boundaries

Definitions

Communication


Limiting duplication

A framework should:

Define shared elements and services

Help with prioritization

Be simple


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An example ..



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Then divide and conquer

You cant do it all at once

Chunk it up and pick areas to deal with first

Assign different projects key elements to work on, especially for


Recognize that:

This effort takes the average organization 5 to 10 years

Measures success mostly by long term cost avoidance


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Policies and Standards are a key foundation

If you have good policies and standards you will:

Limit variability

Reduce cost

Simply architecture


Success in this space requires strong organizational support

Pick your battles carefully

Infrastructure (hardware, OS, network) is often the easiest place to

start to gain success


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Prioritize Pain First or Hot Project First

Two ways to begin Pain First or Hot Project First

Pain first

What is your most significant pain point in the organization

Tackle it to reduce the pain and demonstrate success

Benefit High Payoff


Risk High visibility Fail and you are done on your first effort

Hot Project first

Addresses the organizations first priority

Brings value in multiple parts of your Enterprise Architecture Benefit Puts new work in the right framework

Risk Slowing down the Hot Project


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33 / June 2007 / Copyright EDS Canada

EDS

33 Yonge Street

Toronto, ON M5E 1G4

416-814-4571

[email protected] or eds.com

EDS and the EDS logo are registered trademarks of Electronic Data Systems Corporation. EDS is an equal opportunity employer

and values the diversity of its people. 2007 Electronic Data Systems Corporation. All rights reserved.

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