Enterprise Architecture Where’s the Business? Andrew L Macaulay Certified Global Architect, Capgemini © 2004 Capgemini - All rights reserved

Copyright © 2007 Capgemini UK Agenda Introduction and Agenda The Quest for Business/IT Alignment What is Business Architecture Organisational Barriers Moving to a Strategic Value Focus Changing the Game Summary Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Sustainable SOA: Related Presentations Andrew Macaulay Managing Enterprise Architect, Capgemini Enterprise Architecture: Where’s the Business Tuesday 6th March 9:00am Sam Lowe Sector Chief Enterprise Architect, Capgemini Where to Place your SOA bets Monday 5th March 11:15am Steve G Jones Head of SOA, Global Outsourcing, Capgemini SOA in Support & Maintenance Monday 5th March, 3:55pm Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Copyright © 2007 Capgemini UK Brief Biography Worked in IT since early 1980’s Joined Capgemini’s Architecture team in the UK in 1993, working across sectors (including government and finance) Remain active Enterprise Architect both developing architecture and architecture capability with clients Active in Capgemini’s Global Architects Community, including being elected Global Head of the Community for 2005/2006 Major contributor to Capgemini’s Integrated Architecture Framework Senior trainer (facilitator) in architecture for Capgemini and our clients Active contributor to the Capgemini Architects Learning Programme Capgemini Certified Global Architect, Open Group Master Certified IT Architect and Microsoft Infrastructure Architect MVP Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Connecting IT with the Business Business and IT often remain poorly aligned/connected IT Departments are often still seen as a cost Business and IT find it hard to communicate effectively This lack of alignment often results in: Costs of IT being significantly larger than necessary Strategic investments being under-utilised Service Oriented Architecture makes this even more critical Copyright © 2007 Capgemini UK Source: report by the Economist (sponsored by Capgemini) © 2004 Capgemini - All rights reserved

Business is Having to Adapt and Change Welcome to The End of Business as we know it “Executives need to stop looking at IT projects as technology installations and start looking at them as periods of organizational change that they have the responsibility to manage” Harvard Business Review, November 2006 by Andrew McAfee, Associate Professor, Harvard Business School Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Managing the Portfolio & Reacting to Business Change Business Benefit Source: report by the Economist (sponsored by Capgemini) Progressively more difficult to identify what to spend on Cost reduction/efficiency Improving existing estate Investment in new projects And how can you align this with the real business needs? Spend Based on Maslow's Hierarchy of Needs Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Architecture can provide a Common Language Enterprise Architecture (Enterprise) Business Architecture Organisation and People Services and Process Security Architecture Enterprise Governance Architecture Enterprise Solution Architecture includes: Business, Information, Apps/Systems, Infrastructure, Security and Governance (Enterprise) Information Architecture Enterprise IT Architecture Enterprise IT Information Systems Architecture Enterprise IT Technology Infrastructure Architecture Software Architecture, Network Architecture, Storage Architecture, … Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

“Traditional” Organisational Barriers Get in the Way “Traditional” IT Strategy and Architecture Process IT / IS Strategy “Business Architecture” (Defined) IT Business Enterprise IT Architecture Business Goals IT get engaged late in Technology Implementation Projects after ability to collaborate has largely passed Portfolio and Solution Architecture Business Exploration / Discovery Start IT Projects Business Transformation Initiatives are started here, outside of the IT strategy process Business Transformation Design IT Projects Business Change Programme IT Projects “Traditional” Business Strategy and Transformation Process Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Business/IT Alignment needs a Collaborative Approach A common understanding of business priorities/timescales A coherent view of Enterprise Architecture that supports and informs both business and IT Clear sponsorship from across the Business as well as IT Business and IT working together as one, with IT seen as an integral (and valuable) part of the business But how can you break down the barriers? Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Copyright © 2007 Capgemini UK Earning the Right To move towards this goal, the IT Function needs to… Improve each line-of-business’ opinion of the value it can and will get from involving (appropriate) representation from IT Demonstrate the ability to successfully deliver strategic business value including getting recognition of this success from the business Offer credible and value-adding business- focused IT advisory expertise to early- phase business transformation work Provide transparency of TCO for the full life cycle of the deployment of IT solutions driven from business transformation and improvement initiatives Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Architectural Thinking Does Not Need Only Apply to IT The definition of architecture in ANSI/IEEE Std 1471-2000 is “The fundamental organization of a system, embodied in its components, their relationships to each other and the environment, and the principles governing its design and evolution.” This can be applied equally well to business as well as IT But, Business Architecture is often little more than a business model developed by/for the architects to document the solution requirements or to identify business impact of an IT solution Business Architecture can be used to Architect the Business and drive business change in a holistic way supported by IT Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Business Architecture enabling Business Change Business Architecture can be developed based on Services view of the business Modelled as Business Activities, Goals, Roles and Objects Plus the information aspects of Information Objects Logical and Physical Business Components then derived Organisational, Role and Process-based perspectives Leading to the overall view for new physical organisation, roles and process definitions Capgemini’s Integrated Architecture Framework (IAF) Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Moving from an IT focus to a Strategic Business focus Projects are reactive to the individual business owners New project budgets in existing stove-pipes, resulting in stove-piped solutions & inefficiencies IT owns decisions about budget and seen as ‘getting in the way’ of business Regulatory impacts such as for compliance result in IT projects and see as simply a cost IT and business have shared view of the (coherent) business and IT strategies Projects are linked to and measured against strategic objectives Projects have business case (ROI) driven by business and measured post implementation Business and IT can see how value is achieved and jointly justify the investment Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Some Key Activities to Move You Forward Joint-Team Transformation Discovery Initiatives Consulting ‘discovery’ techniques are well developed, but generally developed for business-only use – use of a Concurrent Business/IT approach greatly improves the value delivered Joint-Team Capability Creation and Development Identify the organisational and skills required to successfully deliver this joint delivery approach Most organisations need to evolve their own capabilities and processes needed to be successful with the new approach Combined Business and Technology Roadmap Definition Identifying the framework to evaluate the candidate technologies might be that support the business and technical functions in order to realise the benefits identified for the business initiatives Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Architecting your EA Function Why? WhAT? How? With WhAT? Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Some Potential Organisational/Governance Models Hierarchical Governance Model Lifecycle Governance Model Project Lifecycle Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Getting Started (Some Tips and Tricks) Work on the business perception of IT first to build up credibility, before attempting to use IT to change the business What are the barriers on the business side to effective business partnership with IT? What does the business actually want from IT? Make IT transparent to the business by showing IT in business language and highlight areas of opportunity in business terms Focus on the link between strategy, principles, standards, portfolio management and commercial governance first Then develop the big-picture models, language and mindset that are shared across business and IT Look for clear sponsorship from inside the Business – both at the C-level and deeper in the organisation Avoid the “IT science project” – pick three things to do that are meaningful to the business and do those first and well Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Copyright © 2007 Capgemini UK Summary Business/IT Alignment is a Real Issue Today Business is driving ever more need for change Architecture helps Business/IT Alignment Architecture is often seen as an IT function Collaboration/partnership between Business and IT is needed Should the Architecture Function be inside the Business? Using Business Architecture can help you connect better with the business and provide a common language There are some simple steps to help you on the way! Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

Copyright © 2007 Capgemini UK Additional Reading Capgemini Resources http://www.capgemini.com/soa http://www.capgemini.com/architecture http://www.capgemini.com/iaf http://www.capgemini.com/ctoblog Published Case Studies http://www.capgemini.com/resources/success-stories/nato/ http://www.capgemini.com/resources/success-stories/kbc_group/ Open Group Architecture Resources http://www.opengroup.org/togaf http://www.opengroup.org/itac Copyright © 2007 Capgemini UK © 2004 Capgemini - All rights reserved

andrew.macaulay@capgemini.com © 2004 Capgemini - All rights reserved