Architecture-Driven Modernization ----------------------------------------- The Legacy Systems Challenge OMG Government Information Day – March 2008 ------------------------------ William Ulrich - TSG, Inc. www.systemtransformation.com

Defining Architecture-Driven Modernization (ADM)* Process of understanding & evolving existing software assets for: Software improvement Modifications Interoperability Refactoring Restructuring Reuse Porting Migration Translation into another language Enterprise application integration Service-oriented architecture Other initiatives as they relate to existing systems * Source: Object Management Group (OMG) Architecture-Driven Modernization Task Force – http://adm.omg.org/ Copyright TSG Inc., 2008, All Rights Reserved

Enterprise Impacts of Aging IT Architectures Existing Data & Application Architectures: Contain redundancy, obsolete functionality mixed with mission critical code across stovepipe structures Delay and undermine critical IT projects Business Impacts of Aging IT Architectures: Inefficiency, high operating costs, spiraling head-count Poor responsiveness to customers / constituent base Lost / delayed revenue realization Creation of Shadow Systems* Erosion of ability to respond to tactical & strategic objectives * Spreadsheets, faxes, email, Access, dual entry, paper/pencil Copyright TSG Inc., 2008, All Rights Reserved

Traditional Approaches to Meet Existing IT Architecture Challenges Middleware Based Integration Greenfield Replacement Existing IT Architectures ERP (Package) Solutions Existing IT architectures include application and data architectures as well as technical architectures. Copyright TSG Inc., 2008, All Rights Reserved

Greenfield Replacement: Costly & Risky Greenfield replacement implies from scratch Real cost of application rewrites is in the range of $15-30 / line of code (Gartner) Greenfield replacement results in: Missing or incorrect data & business rules Significant reworking of deliverables Loss of critical business knowledge If Greenfield replacement fails – there is no fallback Copyright TSG Inc., 2008, All Rights Reserved

Commercial-Off-the-Shelf Software Comes with Risks & Costs Integrating packages with existing data and systems was very challenging 98% of package users were forced to change business practices (tail wagging the dog) 60% of business users favored the existing legacy applications over the new package Only 18% of package users found it easy to realize package benefits * Source: Cutter Report – Vol. 6, No. 9 – Sept. 2006 Copyright TSG Inc., 2008, All Rights Reserved

Unacceptable Results of Greenfield Replacement & Package Options New IRS system allows $200M in bogus refunds (USA Today – 2006) Telecommunications company cancels package implementation effort - $70-80 million failure FBI throws out a $100 million system as a total failure U.S. Federal Agency cancels $70 million SAP implementation Health insurance provider shuts down $60 million major systems replacement project Hershey distribution package failure drives down stock value (1999) Copyright TSG Inc., 2008, All Rights Reserved

Middleware Solutions Can Even Complicate Business Architectures “…recent advances in integration middleware technology have provided some relief by making it possible for financial institutions to move customer information across channels. But in many cases the technology has been laid over flawed legacy architecture and has merely created more duplication.” Source: “Aligning Technology and Business: Applying Patterns for Legacy Transformation”, Howard Hess, IBM Systems Journal, Volume 44 Number 1, 2005 http://www.research.ibm.com/journal/sj/441/hess.pdf Copyright TSG Inc., 2008, All Rights Reserved

Copyright TSG Inc., 2008, All Rights Reserved Why Consider Modernization as a Strategy to Augment or Displace Traditional IT Options Traditional replacement approaches have fallen short Non-invasive integration options have hit a wall Modernization offers solutions to address critical, core IT architecture challenges Copyright TSG Inc., 2008, All Rights Reserved Copyright TSG Inc., 2008, All Rights Reserved

Modernization: Shifting from Tactical to Strategic “Most CIOs will need to develop new skills and competencies in their management teams to deal with the significant challenges of IT modernization” “IT modernization reinstates IT strategic planning at the heart of the CIO cabinet” “An organization's first act is to modernize its strategic planning capabilities and immediately focus these competencies toward IT asset modernization” * Source: Gartner, Inc., “What the CIO Should Know and Do About IT Modernization “, Vecchio & Kyte, 6 February 2008 Copyright TSG Inc., 2008, All Rights Reserved

Architecture-Driven Modernization: Aligns Business & IT Domain Initiatives Business Domain Existing Environment Environment Target Business Strategy Requirements Level Business Models Transformation Domain ADM IT Domain UML / System Models Modernization Analysis Domain Analysis Level System Design Level Refactoring Domain ADM Program Design Level Physical System Implementation Adopted from early horseshoe models from Unisys/TSG, Inc. Copyright TSG Inc., 2008, All Rights Reserved Copyright TSG Inc., 2008, All Rights Reserved

Architecture-Driven Modernization Scenarios ADM Scenario: An initiative (e.g. portfolio management), project (e.g. migrating platforms) or series of projects (e.g. consolidating, redesigning and redeploying an application in model driven architecture) applied to one or more existing systems. Copyright TSG Inc., 2008, All Rights Reserved

Modernization Scenarios (Projects) Driven by Degree of Abstract from Physical Systems Business Domain Existing Environment Environment Target ADM Scenario Mapping Replacement Scenarios Greenfield Rewrite ERP/Package Deployment Business Models Knowledge Reclamation Model Driven Architecture Migration Architecture Consolidation IT Domain UML / System Models Modernization Project Scenarios SOA Transformation Data Architecture Redesign Procedural to Object Lang. Migration Language Migration Platform Migration Data Conversion Language Transliteration Copyright TSG Inc., 2008, All Rights Reserved Adopted from earlier horseshoe models from Unisys/TSG, Inc. Copyright TSG Inc., 2008, All Rights Reserved

Sample ADM Scenario: Language & Platform Migration Scenario Objective: Convert system to new language and / or run time platform. Converts source code to new language or language level with run time environment Migrates application to new hardware and / or operating system Scenario (s) not model driven. Typically 1-to-1 correspondence between current and target system Can mix & match with module / system redesign or consolidation. Copyright TSG Inc., 2008, All Rights Reserved

Sample ADM Scenario: Model Driven Architecture Transformation Scenario Objective: Migrate existing data, business logic to an environment in which systems are maintained in models. Ship order Ship order Produce packing list Extract business rules & data definitions Purge implementation dependent logic Rationalize/consolidate data & logic as needed Migrate/merge extracted logic & data definitions into applicable models Drop ship Decrement Shipping Clerk from remote FGI warehouse Insured Object Trigger Employee From object data model Daily claim review process Register Approve Existing applications & data definitions Claim Claim Trigger Employee makes Precondition a claim Register claim Source: Martin/Odell Sample models Copyright TSG Inc., 2008, All Rights Reserved

Copyright TSG Inc., 2008, All Rights Reserved OMG’s Architecture-Driven Modernization Task Force Driving Industry Standards OMG ADM Task Force* established in 2003: To create specifications and promote industry consensus on modernization of existing applications Major industry vendor, integrator participation ADM Standards Knowledge Discover Metamodel (KDM) Abstract Syntax Tree Metamodel (ASTM) in final submission Software Metrics Metamodel (SMM) in final submission Analysis Package submissions in progress Visualization, refactoring & transformation under discussion Tool interoperability & standards offer organizations more options and confidence in long-term solutions *OMG Architecture-Driven Modernization Task Force -- See: http://adm.omg.org/ Copyright TSG Inc., 2008, All Rights Reserved

Four Basic Ways to Implement Modernization on Projects Tool Centric: License tool, get trained & do it yourself: Works where repeated use of tool is envisioned Service Supported: License tool, engage outside support to work with in-house teams In-Sourced: Bring in vendor with a tool & they perform work onsite Works well for one-time projects Outsourced: Send your system out to a vendor Works only for very well defined tasks In-house personnel still must do oversight, testing Copyright TSG Inc., 2008, All Rights Reserved

Essential Elements of an Architecture-Driven Modernization Program Understanding of how modernization fits into existing or planned IT & business projects Framework for understanding project scenarios, work plans, estimates and cost analysis Knowledge of and access to available tools, technologies & service providers A starting point: Current, high-level architecture assessment Strategy session outlining options, timelines Copyright TSG Inc., 2008, All Rights Reserved

What You Should Think About When Considering Modernization Do you really understand why you are undertaking the initiative? Have you taken business architectural alignment into account? What are the impacts on interfacing & upstream / downstream systems? Have you considered the condition & impact of the underlying data architecture? Are you leveraging established modernization literature, approaches & knowledge? Copyright TSG Inc., 2008, All Rights Reserved

Architecture-Driven Modernization: The Legacy Systems Challenge Questions? OMG Government Information Day – March 2008 ------------------------------ William Ulrich - TSG, Inc. www.systemtransformation.com