how to identify removal candidates in a large application ...€¦how to identify removal candidates...
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Software Engineering für betriebliche Informationssysteme (sebis) Fakultät für InformatikTechnische Universität München
wwwmatthes.in.tum.de
How to identify removal candidates in a large application portfolio?Sebis Workshop, 23.09.2016Pouya Aleatrati Khosroshahi, Technische Universität München
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Agenda
1. Initial situation: 5.000 applications in the portfolio Page 04
2. Motivation and conducted activities Page 06
3. Current activities: capability-based complexity management Page 10
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BMW GroupOverview legal entities & plants
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BMW Group is represented in…
...over 140 countries…
…with 30 plants and…
…over 40 dealer and
sale branches.
SpartanburgX3, X4, X5, X6
ManausBMW Motorcycles
Hams Hall EnginesOxford MINISwindonComponentsGoodwood Rolls-Royce
Steyr EnginesGraz MINI Countryman, MINI Paceman
Kaliningrad
Kairo
Rosslyn3 Series
Chennai
Shenyang- Tiexi X1, 3 Series, 3 Series Long
ZINORO- Dadong 5 Series Long,
EnginesKulim
Rayong
Jakarta
Production locations
Moses Lake Components
Assembly plantsJoint-venture companies Contract production Munich
3 Series, 4 Series M4, Engines
BerlinBMW Motorcycles, Maxi-scooter, Components
Dingolfing3 Series, 4 Series, 5 Series, 6 Series, 7 Series, M5, Components
EisenachComponents
LandshutComponents
Leipzig1 Series, 2 Ser,ies X1, BMW i3, i8
Regensburg1 Series, 2 Series, 3 Series, 4 Series, M3, M4 Convertible, Z4
WackersdorfComponents
Araquari1 Series, 3 Series, X1, X3, MINI Countryman (gradually from 2014)
Born
San Louis PotosíProduction launch in 2019
BMW GroupWide range of products and services
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Upcoming trends in the automotive industry (autonomous driving, digitalization, etc.) demands for highly agile and cost-efficient IT.
… and be aware of upcoming market
trends.
… produce a range of mobility
products&services…
…multiple business units,
cooperation's,…
… legal entities & plants around the
globe,…
Production locationsAssembly plantsJoint-venture companies
Contract production
+
BMW Group IT11 main departments to manage the BMW Group EA with over 5.000 applications
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BRM
Design
Build
Govern Governance
Infrastructure & technology management
Application management
DigitalServicesIdea Enabling Order Deliver Financial
Services
Local solutions
Local solutions
Americas APAC EMEA
Operate
The complexity of the current application portfolio leads to decreased agility and enhanced efforts in the maintenance and operation due to inefficiencies.
Initial situationHypothesis: Not sufficiently evaluated “root causes” lead to undesirable effects
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Long-term goal Master and control the
complexity of BMW AP.
Concrete problem fields lead to undesired phenomenon in the daily business and ask for solution-oriented actions.
Ability of the organization to implement upcoming business requirements in budget, time and efficiently.
Applications cause monetary expenses with respect to various activities in order to guarantee a continuous business support
Poor IT Agility
Challenges to fulfill projects in budget and time
Application operations,
maintenance, project business
• Identify EAM-Hotspots
• Derive concrete measures in the EA
• Define space for innovative solutions
Avoidable IT costs
What is application portfolio complexity? how to control?Research already identified and evaluated this phenomenon in the past
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Conceptual Model by Mocker 2
Entropy measure to calculate heterogeneity of
technical componentsBy Schuetz et al.3
Related work (in a nutshell) shows a very fragmented picture on this phenomenonHow many different concepts do we have?
Variation
What are differences between individuals?
Variety
How are individuals distributed?
Balance
To which degree do our concepts differ?
Disparity
Diversity charact. by Schneider 1
Related work on complexity management in EA analyzed this phenomenon from different views and serves as a starting point to identify root causes and respective
actions in practice1Schneider: Decision Support for Application Landscape Diversity Management, Dissertation, Technische Universität München, 2015.2 Mocker: Mocker, Martin. "What is complex about 273 applications? Untangling application architecture complexity in a case of European investment banking." System Sciences, 2009. HICSS'09. 42nd Hawaii International Conference on. IEEE, 2009.3 Schuetz et al.: Schuetz, Alexander; Widjaja, Thomas; and Kaiser, Jasmin, "Complexity In Enterprise Architectures - Conceptualization And Introduction Of A Measure From A System Theoretic Perspective" (2013). ECIS 2013 Completed Research. Paper 202.
Past initiativesQuantitative and qualitative activities helps to understand AP complexity in detail
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1. Quantitative analysis of an large application portfolio40 correlations between application characteristics and
effects for approx. 3.500 applications
Number of interfaces
Number of supported bus. proc
Age
Number of users
...
Application characteristics
Incidents
Operation costs
Effects
Contribution?
Related Work (interfaces as cost driver) could be confirmed, others (Age) notResults could serve for further refinement of SLAs and the definition of DevOps
Good results in order to discover technical complexity drivers, but missing hint of what to do now.
2. Expert interviews Application know the challenges and root causes off applications.
Technical infrastructure
Interfaces Softwarequality
Releasemanageme
nt
Problem / Incident / Change
management
Sourcing capability
Derive concrete measures
Expert interviews discover concrete issues in the application owner, but lack of a “big picture” understanding
Application portfolio complexity – a highly fragmented definitionRoot causes, appearance, consequences
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Root causes ConsequencesAppearance
Com
pone
nt re
late
d
Not used Code
Degree of Customization
Age of Code
Poor code quality Performance issues Canceled jobs
Efforts for IS
Manualworkarounds/
reworks
Technical not suited interfaces
Error-proned data
Maintenance costs
Operations costs
Land
scap
e re
late
d
Cos
tsAg
ility
Amount of IS
Amount of Interfaces
Chain reaction for changes
Delay in projects Further resourcesUnnecessary transitive interfaces
Missing transparency Functional overlapsMissing Knowhow
Process/Application mapping arbitrarily
Unwanted dependencies
Business Silos
Functional redundancies
Growing EA
Missing harmonization
Strategy, EAM & PPM not interlocked
Lacking influence on project portfolio
Complex integrations
Current initiativesDefinition of several working packages in order to identify removal candidates
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Establishment of a comprehensive transformation program
Evaluation of used technologies
Analysis of documented Master solutions
Increase data quality of EA repository
Capability-based APM
Define governance principles for removal candidates
Quick Win: Analyze small applications
Current initiativesCapability-based complexity management
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A business capability map illustrates a sorted and complete picture of the defined business capabilities.
Further elements (applications, strategy statements, etc.) can be allocated to one or more business capabilities and visualizations /color coding helps to illustrate the status of the business capability for concrete topic in order to support strategy decision makings, such as:
- Strategy investments
- Architectural health
- EA target development
…
Customs & Taxes Capability „Customs & Taxes“ is needed to support tax computation.
Risk Management We have to provide defined risk management KPIs and clearly defined responsibilities
…
Vehicle Sales
Common Customer Oriented Services
Capability 1 … Financial Services
Retail Finance
Banking
Business Mobility ServicesCommercial Finance
ACC
ESS
CO
RE
Aftersales
Service & RepairsProduct Quality & Warranty Mgmt
…
Insurance (Non-Vehicle)
Vehicle Distribution
Retail Development
Sales Parts Lifecycle Mgmt
Operat. CRM & Sales Funnel MgmtMarketing Communication
Sales Planning
Used Vehicle Mgmt & Remarketing
Pipeline Management
Sales Offer & Contract Management
Teleservices & Information Logistics
…
……
Sub-Capability 2Sub-Capability 2
……
……
Capability 2
Sub-Capability 1
Sub-Capability 3Sub-Capability 2
AccountingSub-Capability 2
Sub-Capability 4IT planning
Sub-Capability 5
Sub-Capability 7
Sub-Capability 3
Sub-Capability 6
Capability
Sub-Capability 1
…Sub-Capability 2
…
… ……
Customer Services
Mobility Services
Reselling ServicesServices with Added Value
Car Enabling Services
…
…
…
B2B Channel Employee Channel Vehicle Channel………
Information Management & Analytics
Vehicle & Component Dev. Analyses
…
…
Enabling Analyses
Financial Services SupportSales Parts Logistics
Production & Physical Logistics A.
Product Quality Management Analyses
Sales & Marketing Analyses
Connected Drive & Mobility Serv. A.
Financial Services Analyses
IT4IT Analyses
VisualizationGood architectural health
Medium architectural health
Poor architectural health
Idea: Define complexity dimensions of AP and measure and illustrate their current status by using the business capability map.
Advantage: Aggregated view on AP-HotSpots.
Current initiativesExcurse: Business capabilities @BMW Group IT
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Forget the “HOW!” Look at the What!
Think of business capability as separate „company“, fully responsible for delivering an agreed set on non-redundant business functions & -services incl. all necessary resources (people, assets, budget etc.), dependent from the other capabilities only by agreed service interfaces
Current initiativesBusiness capability map of BMW Group (Extract, Feb. 2016)
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Group Services
Production
Vehicle Sales
Common Customer Oriented Services
ProductClient
Vehicle & Component Dev. Parts Logistics & QMT
Information Technology
IT Delivery
IT Operations
Financial Services
Human Resource MgmtHR Core Services
Talent Management
Finance & Controlling
Customer Data Mgmt
Sales Structure
Employee Oriented Services
Retail Finance
Banking
Business Mobility Services
Commercial Finance
ACC
ESS
CO
RE
RES
OU
RC
ESU
PPO
RT
SupplierSupplier MgmtVehicle Portfolio Mgmt
AftersalesService & Repairs
Product Quality & Warranty Mgmt
General Services
Real Estate & Facility Mgmt
Insurance (Non-Vehicle)
Vehicle Distribution
Retail Development
Sales Parts Lifecycle Mgmt
Parts Mgmt (incl. Spare Parts)
Operat. CRM & Sales Funnel Mgmt
Marketing Communication
Financial Product Portfolio Mgmt
Sales Planning
Used Vehicle Mgmt & Remarketing
Pipeline Management
Sales Offer & Contract Management
Vehicle Instance Mgmt
Teleservices & Information Logistics
Production Control
Plant Maintenance
Production Quality
Material Req. Planning & Call-off
Logistics Inbound
Supply Chain Monitoring
Parts Quality Management
Logistics Outbound
Intra-plant Logistics
Capacity ManagementCapacity & Restrictions definition
Capacity Analysis & Balancing
Scenario-based Demand Calculation
Overall Vehicle Development
Requirements Eng. & Mgmt
Functional Design & Verification
Geometric Design
E/E Design
Product Data Mgmt (Automotive)
Product Quality Mgmt
Production Preparation
Comp. Planning & Ordering
Component Program Planning
Production Scheduling
Component Ordering
Communication
Collaboration
Legal Affairs
Car related & Mobility Prod.Portf. M.
Integrated Planning & ControlStrategic Management Compliance Management
Risk Management
Group Consolidation & Reporting
Accounting
Treasury
Customs & Taxes
Operational Controlling
Payment Processing
Corporate Security Mgmt
Customer Services
Mobility ServicesReselling Services
Services with Added Value
Car Enabling Services
Purchasing
Container Management
Channel ServicesB2B Channel Employee Channel Vehicle ChannelDealer ChannelInteraction ChannelCustomer Online Channel
Information Management & AnalyticsVehicle & Component Dev. Analyses
Document Mgmt
Digital Asset Management
Enabling Analyses
Financial Services Support
IT Planning Level 0 Capability
Level 1 Capability
Legend
Driver Assist. Syst. Backend Services
Sales Parts Logistics
Production & Physical Logistics A.
Product Quality Management Analyses
Sales & Marketing Analyses
Connected Drive & Mobility Serv. A.
Financial Services Analyses
IT4IT Analyses
Current initiativesComplexity dimensions, data, target causalities
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Analysisactivities
Dimensions tocontrol
Data from EAMrepositories
Incidents (Transitive) Interfaces Functionality
Number of IS in each capability Age of IS Blueprint Conformation
…
PlantsM
arkets
Agility
Customization
Costs …
Technologies
Verify
Evaluate
Are there functional
overlaps between the plants or
markets?
Are there specific technologies that lead
to high amount of incidents?
Does selected plants strongly use customized
applications?
How do we measure the dimensions,
based on the available data?
How do transitive interfaces affect
the agility of selected
capabilities?
Status of businesscapability
How to measure
and visualize?
…
Current initiativesTo Verify: Contribution of „Capability-spanning“ application to complexity of AP
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Group Services
Production
Vehicle Sales
Common Customer Oriented Services
ProductClient
Vehicle & Component Dev. Parts Logistics & QMT
Information Technology
IT Delivery
IT Operations
Financial Services
Human Resource MgmtHR Core Services
Talent Management
Finance & Controlling
Customer Data Mgmt
Sales Structure
Employee Oriented Services
Retail Finance
Banking
Business Mobility Services
Commercial Finance
ACC
ESS
CO
RE
RES
OU
RC
ESU
PPO
RT
SupplierSupplier MgmtVehicle Portfolio Mgmt
AftersalesService & Repairs
Product Quality & Warranty Mgmt
General Services
Real Estate & Facility Mgmt
Insurance (Non-Vehicle)
Vehicle Distribution
Retail Development
Sales Parts Lifecycle Mgmt
Parts Mgmt (incl. Spare Parts)
Operat. CRM & Sales Funnel Mgmt
Marketing Communication
Financial Product Portfolio Mgmt
Sales Planning
Used Vehicle Mgmt & Remarketing
Pipeline Management
Sales Offer & Contract Management
Vehicle Instance Mgmt
Teleservices & Information Logistics
Production Control
Plant Maintenance
Production Quality
Material Req. Planning & Call-off
Logistics Inbound
Supply Chain Monitoring
Parts Quality Management
Logistics Outbound
Intra-plant Logistics
Capacity ManagementCapacity & Restrictions definition
Capacity Analysis & Balancing
Scenario-based Demand Calculation
Overall Vehicle Development
Requirements Eng. & Mgmt
Functional Design & Verification
Geometric Design
E/E Design
Product Data Mgmt (Automotive)
Product Quality Mgmt
Production Preparation
Comp. Planning & Ordering
Component Program Planning
Production Scheduling
Component Ordering
Communication
Collaboration
Legal Affairs
Car related & Mobility Prod.Portf. M.
Integrated Planning & ControlStrategic Management Compliance Management
Risk Management
Group Consolidation & Reporting
Accounting
Treasury
Customs & Taxes
Operational Controlling
Payment Processing
Corporate Security Mgmt
Customer Services
Mobility ServicesReselling Services
Services with Added Value
Car Enabling Services
Purchasing
Container Management
Channel ServicesB2B Channel Employee Channel Vehicle ChannelDealer ChannelInteraction ChannelCustomer Online Channel
Information Management & AnalyticsVehicle & Component Dev. Analyses
Document Mgmt
Digital Asset Management
Enabling Analyses
Financial Services Support
IT Planning Level 0 Capability
Level 1 Capability
Legend
Driver Assist. Syst. Backend Services
Sales Parts Logistics
Production & Physical Logistics A.
Product Quality Management Analyses
Sales & Marketing Analyses
Connected Drive & Mobility Serv. A.
Financial Services Analyses
IT4IT Analyses
APP 2344
APP 4192
APP 0021
APP 2331
APP 2561APP 1231
Technische Universität MünchenDepartment of InformaticsChair of Software Engineering for Business Information Systems
Boltzmannstraße 385748 Garching bei München
Tel +49.151.Fax +49.89.289.17136
wwwmatthes.in.tum.de
Pouya Aleatrati KhosroshahiResearch associate
200 49 48 1
Thank you for your attention.
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Initiative 1: quantitative analysis
Literature review and alignment with industry partner about scope of analysis
Outlier removal, logarithmic transformation (for normal distribution)
Scoping
Extract relevant data from data several data sources of the industry partner
Data collection
Data cleansing
Quantitative analysis, using pearson and spearman correlation coefficients
Data analysis
Interpret identified dependencies and answer RQ and hypotheses
Analyze Results
Deliverable: Application portfolio complexity driver
Deliverable: Relevant information for 3.609 applications
Deliverable: Research questions and hypothesis
Deliverable: Dataset for 3.656 applications
Deliverable: Dependencies between application characteristics
May 2015 June 2015 July 2015 August 2015 September 2015
. .. . . .. .. . . .. .
. .. . H1
_______________________________________________________________________________________________________________
H2_______________________________________________________________________________________________________________
H3_______________________________________________________________________________________________________________
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Initiative 1: Results.
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Interfaces Business processes
Business data Users
Mainframen = 277 Cost
β = .744***n = 186, p = .000
β = .396*n = 196, p = .041
β = .382n = 86, p = .166
β = 1.174***n = 272, p = .000
Incidentsβ = .465**n = 89, p = .002
β = .643***n = 87, p = .001
β = .637**n = 40, p = .008
β = -.049n = 112, p = .803
Database systemsn = 481 Cost
β = 1.013***n = 178, p = .000
β = .057n = 337, p = .763
β = .942**n = 73, p = .002
β = .630***n = 465, p = .000
Incidentsβ = .701**n = 64, p = .001
β = .685**n = 80, p = .007
β = .338n = 34, p = .164
β = .428n = 97, p = .066
Javan = 546 Cost
β = .688***n = 196, p = .000
β = .433*n = 371, p = .013
β = .420*n = 108, p = .021
β = .401***n = 526, p = .001
Incidentsβ = -.032n = 85, p = .859
β = .646**n = 113, p = .003
β = .267n = 40, p = .190
β = .106n = 144, p = .541
SAPn = 94 Cost
β = .298n = 60, p = .216
β = .482n = 60, p = .171
β = .386n = 31, p = .400
β = -.141n = 88, p = .621
Incidentsβ = .564*n = 30, p = .041
β = .233n = 29, p = .396
β = .461n = 13, p = .163
β = .006n = 38, p = .844
= Strong causality identified
In line with previous research
Maintenance of interfaces costs
a lot effort
SAP is “designed” for it
Models get more complex
(b. data)
User management etc.
Good results in order to discover technical complexity drivers, but missing hint of what to do now
Initiative 2: Expert interviews
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Technical infrastructure
Interfaces Softwarequality
Releasemanagement
Problem / Incident / Change
management
Sourcing capability
• Amount of tickets?• Processing time
okay?• Dedicated pains?
• Repeating problems in the release management?
• Are you able to outsource the operation and maintenance of the application in a defined timeframe?
• What kind of challenges might hinder an outsourcing initiative?
• Type of programming language?
• Grade of customization?
• Does it make sense to initiative concrete activities?
• Type of interfaces?• Root cause for
problems?
• Which technologies are used?• Problematic maintenance?• Conformity to blueprint?
Derive concrete measures
Hypothesis: Application and maintenance owners of applications know the challenges and root causes off applications.
Initiative 2: Expert interviews
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Rapid landscape assessment- Gather information based on defined
scope- Prepare and conduct interviews
Deep Dive assessment- Identify actions for deep dive
candidates with BV /WV- Derive actions
Report & communicate- Propose Measures- Define and visualize reports- Inform relevant stakeholder
Rep. 2(Costs
Rep. 1(Appl. Data) CMDB
Deep Dive candidates
Actions and findsings
Sources
DQ lacks
Operations Maintenance
IT-priorization
IT-riskmanagement ...
Departments
Report (ToDos)
Assessment of 1.000 applications to derive concrete measures in the EA and identify complexity patterns.
Business Criticality
Business Value
Maturity Fuctional Quality
Sustainability Tech. Complexity
Tech. QualityMaintainability
Nature of business capabilities @ BMW Group
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Evaluation Criterion Value
Innovation level 2-low
Competitor differentiation 5-very high
Agility 4-high
CoR
Goal
StrategyStatement
Strategic business parameters
Offering
UCP
PlatformJava
ICM
PlatformSAP ERP
New App System?
Platform ?
Strategic Input
Business Capabilities
Logical Components
Application Systems & Platforms
Strategic Alignment
Implementation
Trac
eabi
lity
- Reference Structure for Target EA & Services
- Managing complexity by business componentization
- Clear responsibilities, business process & -area spanning
- Avoidance of redundancies
- Steered process/Application System mapping
- Scope for procurement negotiations
- Functional placement- On- or off-premise - ASP or public cloud- Standard Commodity
or Standard Best-of-breed or Individual
Vendor & Technology neutral
Design
Arch. Reqmt.
Price finding service
Incentive & Commission
Mgmt
Accounting
Vehicle Inventory Mgmt
Vehicle Invoicing
Business harmonization potentialsFunctional
strategies
EA-R
ules
& b
est p
ract
ices
for g
ood
Ente
rpris
e Ar
chite
ctur
e
Business Capability Map = EA Target Picture for Application
Landscape based on Architecture Paradigm of a
“Service Oriented Enterprise” (SOE)
Mission (together with ITSM): Shift BMW Group from a silos to a services mindset and reduce complexity in all IT processes, organization & technology; reduce time to business and implement a new IT Operation Model.