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Septiembre 27 a Octubre 01 de 2005 Bogotá, Colombia A Practical Framework for an Adaptive Enterprise Jitendra Puri

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Presentation on theme: "Septiembre 27 a Octubre 01 de 2005 Bogotá, Colombia A Practical Framework for an Adaptive Enterprise Jitendra Puri"— Presentation transcript:

1 Septiembre 27 a Octubre 01 de 2005 Bogotá, Colombia A Practical Framework for an Adaptive Enterprise Jitendra Puri

2 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Darwin … + It is not the strongest who survive but those that can quickly adapt to the changing environment conditions +

3 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de This session is not for anyone who believes: + That in the business everything will go back to normal if we just wait and see + That success of IT projects is responsibility of technical staff + The customers will stay with you if give them bad service + The shareholders think that red ink is real cool colour

4 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Agenda + Business context + A new adaptive mindset Risks and mitigation strategies + Conclusions

5 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de A snapshot of North American Fixed line business…. Source: RHK Telecom Economics Program

6 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Both external and internal pressures are continuously pressing price dowwards Over capacity Over capacity New Technologies New Technologies Competition Government & Regulation Government & Regulation Price

7 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Operating cost as % of revenue But relatively the operating costs are still very high Average communication industry operating costs range between 60 – 70%. The rate of reduction in price in much steeper than the rate of reduction in the operating cost. Source: RHK Telecom Economics Program In simple economic terms…

8 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de We need a attack several dimensions at the same time…. Grow Revenue Grow Revenue Improve Business Flexibility Improve Business Flexibility Improve Customer Service Improve Customer Service Reduce Cost Reduce Cost

9 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de This implies… + Highly flexible infrastructure + Rapid introduction o new services and features + Fast time-2-revenue + Easy and flexible response to business changes + Fast reactions to competitive moves

10 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de and…. + Ultra low cost operations: + High level of process automation + Very low manpower levels + High level of system integration + High quality and excellent customer service + Right first time data integrity + Customer self management + Low cost of change + Use standardized commercially available, off the shelf, software

11 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de An enterprise delivers services to customers PeopleProcessTechnology Delivery process Business objectives and strategy Darwin Architecture for the Adaptive Enterprise: Service delivery supply chain view Suppliers Consumed business services Customers Offered business services

12 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de The business process model is key to aligning delivery with strategy PeopleProcessTechnology Management process Delivery process Business objectives and strategy Suppliers Consumed business services Customers Offered business services Business process model Darwin Architecture for the Adaptive Enterprise: Service delivery supply chain view

13 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Minimize risk: Ensure security and continuity of internal business operations, while minimizing exposure to external risk factors Maximize return: Improve business results; grow revenue and earnings, cash flow, and reduced cost of operations Improve performance: Improve business operations performance end-to-end across the enterprise Increase customer and employee satisfaction Increase agility: Enable the business organization and operations to adapt to changing business needs So…what would you do in a CIOs role?

14 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de But what about business & IT alignment challenges? + Not sufficient business influence to guide technical projects + Not integrating technical projects with business change programmes + Not realising the value of information and process-centric elements + Legacy applications and platforms, outsourced services and supplier management issues + Management interconnection between Business & IT.

15 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de A new adaptive mindset is needed + Assess, design and maintain a dynamic link between business and IT. + Architect and integrate heterogeneous IT environments. + Extend and link business processes across suppliers and customers. + Manage and control the whole IT environment to deliver business services. IT business management Service delivery management Service delivery Business objectives and strategy Adaptive Enterprise Business services Application services Infrastructure services

16 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de An Adaptive Enterprise is enabled through… An IT strategy that is in synchronization with the enterprises business strategy. An enterprise architecture to execute the IT strategy that can rapidly adapt the IT environment to meet the demands created by changes in the business environment. Business strategy IT strategy Enterprise architecture IT governance Corp. Gov. IT environment IT governance that will drive the development and implementation of the strategy and the architecture. An IT environment which realizes the strategy and architecture to deliver business services to meet todays needs and ready to meet tomorrows.

17 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Enterprise Architecture challenges + How to manage a highly connected environment – with multiple, overlapping dependencies? + How to balance the benefits of centralised versus decentralised control? + How to increase local autonomy and innovation without increasing inefficiency, lowering quality and increasing risk? + How to insure compliance with standards and policies across a complex organization? + How to manage the new relationship between business and IT as IT becomes a key element in the success or failure of many major projects?

18 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Enterprise architecture facilitates alignment between business and IT Business Strategy Process Models Information & Knowledge Models Application Architecture Information Management Architecture Technical Architecture Access infrastructure Process infrastructure Service infrastructure Hot zone of complexity Common language for business & IT Aligned service delivery The world of IT organization The world of the business

19 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Integration Simplification Standardization Modularity Applied consistently across these services: Business Applications Infrastructure Architecture Design Principles Reduce number of elements Eliminate customization Automate change Use standard technologies and interfaces Adopt common architectures Implement standard processes Break down monolithic structures Create reusable components Implement logical architectures Link business and IT Connect applications and business processes within & outside the enterprise

20 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Benefits of Architecture design rules + Service-oriented architecture (SOA) and virtualization deliver IT flexibility and choice – Protects legacy investments – Allows heterogeneity, doesnt force homogeneity and monolithic rules – Leverages industry investment – Enables parallel innovation, fast response to change – Provides multi-sourcing, flexibility of outsourcing/in-sourcing + Model driven automation simplifies execution of IT practices – Cost of change is low & predictable – Automates service lifecycle delivery and management

21 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Architecture Design rules + Service-oriented architecture (SOA) and virtualization – Service is the unit of modularity – Layer services types: infrastructure, application and business – Separate service perspectives: functional from management + Model-driven automation (MDA) – Service defined by model – Models encapsulated within layers – Models express dependencies between layers – Models provide continuity throughout the service lifecycle + SOA, virtualization, and MDA combine to realize the Adaptive Enterprise

22 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Service delivery Functional Service delivery management Management Application services Business services Infrastructure services Business services control Application services control Infrastructure services control Modularization: services and virtualization Management modularity and layering parallels delivery Virtualization of both delivery and management capabilities Separate service perspectives: functional from management Virtualization Management comprises multiple perspectives Service is the unit of modularity Layer services by type: infrastructure, application and business Financial Quality Security Config. Financial Quality Security Config. Financial Quality Security Config.

23 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Service delivery Functional Service delivery management Management Business services control Simplification: model-driven automation Models encapsulated within layers Models express dependencies between layers Models capture best practices for all perspectives Service defined by model Application services control Infrastructure services control Financial Quality Security Config. Financial Quality Security Config. Financial Quality Security Config. Business services Application services Infrastructure services Application model Infrastructure model Business model

24 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Service-oriented architecture Service delivery Functional Service delivery management Management Business services Application services Infrastructure services Business services control Integration: service-oriented architecture (SOA) Services perspectives can be managed across layers SOA service management integration Application services control Infrastructure services control Application model Infrastructure model Financial Quality Security Config. Financial Quality Security Config. Financial Quality Security Config. Integrated financial perspective Financial Business model

25 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Utility computing models – OGSA and DMTF Service delivery Functional Service delivery management Management Business services control Application services control Infrastructure services control Standardization: drive adoption of industry standards Business services Application services Infrastructure services RosettaNet, UCCnet, OAG, ebXML Virtual servers, storage, networks WSDM, Grid (WS-RF) ITIL, ITSM WSDM,WBEM, CIM WSDM SCOR, AQPC, VMI SOA, virtualization and MDA standards enable customers to leverage industry innovation and provides investment security Grid (WS- RF) Web services (WS-*)

26 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Business services control Application services control Infrastructure services control New service trigger Service delivery management Service delivery OperateDeployDesig n Sourc e Service lifecycle: Use of models across the service lifecycle Chang e Application model Business model Chang e Application services Business services Infrastructure services Infrastructure model

27 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Automating and managing delivery of business services Multi-channel access Business services control Application services control Infrastructure services control Application model Business model Application services Business services Infrastructure services IT business management Financial management Relationship management Lifecycle/project management Management integration Service delivery management Service delivery Infrastructure model CustomersEmployeesSuppliersManagementAuditors Darwin Architecture for the Adaptive Enterprise: Service delivery detail view

28 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Organizational change management to realize the Adaptive Enterprise Align IT team and organization Define policies, processes and environment Map IT functions to business priorities Enable a step-wise journey Program management office Services and IT processes Architecture Aligning people, process and technology for superior execution

29 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de The three stages of the Adaptive Enterprise journey Adaptive Flexible Transformational Strategic partner Dynamic & synchronized Time to value Efficient Optimized Respected peer Managed and integrated Quality of service Operational Stable Trusted supporter Available and secure Predictable Architecture Economics Keep it running Objective IT relationship with the business

30 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de EA risks and mitigation strategies The Architecture will not meet business needs Define and maintain architecture with needs clearly defined, including near term business plans, infrastructure and development skill sets, budget issues and commercial off the shelf support Risks Mitigation Approach

31 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de EA risks and mitigation strategies Standard architecture elements will not interoperate as expected Avoid selecting best-of-breed technology for each element without considering interoperability, research case studies with specific configurations. If doubt persists…pilot!! Avoid selecting best-of-breed technology for each element without considering interoperability, research case studies with specific configurations. If doubt persists…pilot!! Risks Mitigation Approach

32 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de EA risks and mitigation strategies An architecture element, or its vendor will become significantly less viable Keep abreast of the market via research functions, maintain part-list of applications, architecture design for separation of functionality when feasible Risks Mitigation Approach

33 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de EA risks and mitigation strategies Architecture governance will be ineffective Obtain management support, create explicit governance processes and link critical related processes. Risks Mitigation Approach

34 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Conclusion + Migration to Adaptive Enterprise is a journey – not a big bang + Journey involves people and process – not just technology + Focus on existing pain points and areas for long-term transformation + We have to learn to embraces heterogeneity and leverage investments, not rip and replace + Business must lead IT and not the other way round…

35 XXV Salón de Informática Arquitecturas Empresariales de Software Septiembre 28-Octubre 01 de Main references + Driving business value from IT – Eric Woods, Laurent Lachal, Chris Harris Jones, Gary Barnet + Adaptive Enterprise vision of Hewlett Packard + Lean Operator, an economic and business view point – Keith J. Willetts + Enterprise Architecture evaluation scorecard, - Gene Lenganza + Best Practices, Standards of Enterprise Architecture + Structures and Processes for effective Enterprise architecture + Managing the people side of enterprise architecture- Gene Lenganza + Risk and mitigation of Enterprise Architecture efforts


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