Why you should care about Systems of Record
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The document discusses the importance of systems of record for businesses. It notes that systems of record are highly structured, transactional, reliable, and core to the business. In contrast, systems of engagement are loosely structured, quick to adapt, conversational, and at the edge of the business. The document advocates developing a strategy to modernize applications and transition to newer architectures like cloud, while ensuring systems of record still meet business needs as engagement systems evolve.
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Why you should care about Systems of Record
- 1. Why you should care about Systems of Record? A foundation for innovation, that will still be around for a long time Charlie Bess, P.E. Fellow – HP Services and Solution Lab June 2012 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 2. Different types of systems support your business Systems of Record Systems of Engagement • Highly structured • Loosely structured • Transactional • Quick to adapt • Reliable and stable • Conversational • Core to the business • Edge of the business 2 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 3. Customer challenges SPEED ENHANCE IMPROVE INNOVATION AGILITY FINANCIAL MANAGEMENT 3 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 4. What is the definition of a Record? A Record is information that preserves the details of an action or event that is important to the business enabling compliance with laws, regulations, and courts. They also inform the organization with the details of decisions and activities enabling decision making. Records are the Records are business Records are business evidence of an event transactions decisions 4 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 5. Your applications portfolio can become cluttered A victim of our own success Since the systems of record store the details of corporate history, they can be difficult to change and costly to maintain. 5 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 6. A change in perspective Mobile devices Sensors Derived data Open Source Unlimited SaaS Data Licensed SW Unlimited Unlimited Applications Computing Cloud Mobile Distributed Unlimited Connection Limited 4G, Multi-Gigabit Attention Networks Analytics UCC Workflow Collaboration Autonomics 6 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 7. Extrapolated world of 2017 7 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Source: HP Labs
- 8. It is all about choices The technology has advanced to enable unconstrained IT access Infrastructure + Applications + Information ANYWHERE ANYWHERE ANYWHERE = Services ANYWHERE The possibility exists for Value Delivery Everywhere 8 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 9. It will be a journey…with different on-ramps A diverse environment needs an architecture definition more than ever IT Automation Standardize, Consolidate, Packaged Packaged Build Dev/Test Build Cloud Virtualize, Applications Applications Cloud Cloud Automate Traditional Private Cloud Managed Public Cloud Cloud Converged Cloud Application Application Dev/Test Transformation Dev/Test SaaS Transformation Build Cloud Cloud (re- Cloud Applications (re- architect/replace) architect/replace) Business Automation 9 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 10. Actions to get started on the journey 1. Document your business strategy 2. Perform a current situation analysis/application portfolio assessment 3. Define an architecture plan to get you there 10 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 11. IT Transformation Delivery Framework HP Designed for RunTM Reducing Risk, Extracting Value, and Improving TCO Reducing Risk, Extracting Value, and Improving TCO PLAN BUILD RUN Architect Discover Assign & Align Action Manage for Agility Enterprise Current Reality, Design Develop Operate & Mitigate Risk Priorities Future Direction Implement Govern • Value Management • Management of Change • Business Architecture • Program Management • Technology Architecture • Governance Scope roadmap programs with HP, Client, and other Vendors by identifying deliverables, responsibilities, and interdependencies needed to: •Deliver the solution- integrates across business process, applications and infrastructure 11 © Copyright 2012 Hewlett-Packard•Development Company, L.P. Implement with holistic focus on value, behavior change, and governance The information contained herein is subject to change without notice.
- 12. Enterprise Strategy & Transformation Planning Defines and delivers a complete, structured, and actionable plan for managing the enterprise’s IT transformation, optimizing the balance between capital and operational expenditure. Benefits BATOG Outputs • Create a tailored transformation plan • IT Maturity Strategy that focuses on action and execution • Business Context • Build transformational capabilities to • Current Assessment Report enable change • Future Enterprise Architecture • Create enterprise wide agility where required • IT Governance Model • Improve ratio of innovation to • Transformation Roadmap IT Maturity maintenance spend Strategy • Align IT investment with business HP RightStep Analysis RightStep® IT Transformation Approach priorities Discover Assess & Align Initiate Understand Assess Formulate Future Establish IT Define Project Business Current Environment Enterprise Architecture Governance Model Transformation • Improve availability of applications Context Develop Plan Understand Analyze Define IT Client Business Enterprise Confirm Architecture Governance Develop & Stakeholders, Review Business Satisfaction Process Principles with IT Guiding Validate Objectives Strategy, Goals, Needs Principles Transformation & Outcomes Objectives Strategies & CSFs Define Future Define Assess Current Prioritization Identify Data Enterprise Architecture IT Governance Methodology • Get accurate and complete information Requirements Understand Practices Create Solution and Assess Business Define Future Define Future Scenarios & Existing Data Enterprise Business Information Develop IT Business Cases Model Understand Current Architecture Architecture Governance IT Environment Structures & Charters Confirm Prioritize & required to make business decisions Develop SWOT Define Future Define Future Project Scope Consolidate IT Application Infrastructure Select Analysis Information Develop IT Solutions Architecture Architecture Governance Processes Establish Analyze Key Assess Review Define Future Define Enterprise Develop Teams Information Application IT Objectives Security IT Management * Install, Initiatives & and Schedule Needs & Portfolio & Strategies Architecture Architecture Configure Refine Sources & Test Tool Business Cases Gain Assess Understand Obtain Agreement Analyze Industry Technology Stakeholder Security Policies of Future Enterprise Validate IT Develop Benchmarks / Portfolio Commitment & Environment Architecture Governance Transformation Best Practices Model Schedule Identify Areas of Identify Review IT Conduct Organizational Assess Current Assess Change Kick-off Focus & CSFs Total Cost Operationalize Develop Risk Support Model Projects & Impact & IT Governance Management Meeting for Information of Ownership & Processes Analyze Gap Readiness Model Plan Technology * Optional Current Future Business IT Subproject Assessment Enterprise Governance Transformation within Context Report Architecture Plan Model engagement 12 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 13. Application Modernization Building the strategy Integrate Re-architect / web svcs Re-factor ESB Application PaaS Cloud Coding IaaS Strategy Effort SaaS PaaS Defined via the Modernization Re-host Replace Opportunity Assessment New Value Generation Potential 13 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 14. Why HP? Proven Decades of experience & technology leadership Open Built on open systems not vendor lock-in Modular Ability to start small & grow as need Collaborative Not just what we do, it’s how we do it Innovative Always finding better ways to add value 14 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 15. Thank you Charlie Bess, P.E. Fellow – HP Services and Solution Lab Blog - http://www.hp.com/go/tnbt Phone - +1-469-767-2311 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
- 16. The Evolution of Content Consideration Systems of Record Systems of Engagement Focus Transactions Interactions Governance Command & Control Collaboration Core Elements Facts, Dates, Commitments Insights, Ideas, Nuances Value Single Source of Truth Open Forum for Discovery & Dialog Performance Standard Accuracy & Completeness Immediacy and Accessibility Content Authored Communal Primary Record Type Structured Unstructured (Text, Images, Video, Audio) Searchability Easy Hard Retention Permanent Transient Accessibility Regulated & Contained Ad Hoc & Open 16 © Copyright 2012 Hewlett-Packard Development Company, L.P. Security Policy Driver herein is subject to change without notice. The information contained Privacy
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- 2011 Geoffrey Moore wrote a paper titled “A Sea Change in Enterprise IT” where he talked about the shift underway in many organizations moving from the traditional approach of managing enterprise IT to a much more flexible approach. Moving from a highly structured model where IT started in large organizations (using tools like relational databases, 3rd generation languages and point to point interconnection techniques) to a model where innovation is taking place at the edge of the enterprise, at the user interface, forcing IT organizations to adopt to the new consumer demand, or feel out-of-touch with their users.He separated the underlying IT systems into two groupings:1) Systems of record <READ THE SLIDE>2) Systems of engagement <READ THE SLIDE>Much of the mobile, social and collaborative trends that organizations are coming to grips with are focused on the balance and interaction between these two types of systems.In this presentation I’d like to talk a bit about the on-going importance of systems of record, as well as how their maintenance, management and governance actually enable you to effectively delivery systems of engagement. And increase the delivery of business value
- Nearly every business has a few drivers in common. They want to be fast, agile and financially successful.For IT organizations this means overcoming an array of challengesLike the constraints of their existing systems, processes and measurement techniques.The existing systems which for most organizations are Systems of records contain all the detailed information of the organization, but they also consume 80% or more of the budget just to keep them operating. This is a huge constraint on what organizations can do.Also, the existing processes in most organizations were not set up for a mobile workforce that can work wherever and whenever they need to. These processes can drag the organization down with all their built in latency.Finally how performance and value are measured may not have kept up with the current business models -- further confusing the business leaders with performance measures that were meant for another era.Addressing these issues can significantly improve performance for organizations.
- Since systems of record have been around since the inception of modern information technology, for most organizations they have built up layer upon layer (a monument to previous success), allowing our budget spend to become calcified justkeeping the lights on. If organizations are not careful (especially those who have been through mergers and acquisitions) systems of record can be stacked climbing to an overlapping tower of functionality that may or may not actually deliver business value. They are maintained, because of inertia, not any specific requirements. Some real discipline and enterprise architecture is required.I was talking with a new leader of a large financial institution a while back and the first thing he did when he came into the organization was state:“for every system where I can’t find an owner, we will turn it off at the end of 90 days”After the cut off date, they turned off 15% of their systems.After they did that, they only had 2 systems where someone sheepishly made a commitment and said – I’ll own it.The rest of the systems were just a drain on their manpower, budget and an anchor on innovation.
- I’d like to spend a few minutes talking about what’s changing on the IT side and why our perspective of systems needs to change.<talk about the slide>
- There are a number of technical trends are well understood. What I’ve tried to do here is extrapolatethem out 5 years to 2017.You can probably see how unimaginably different these numbers become from what we’re used to todayA good example here is in the healthcare space. Today it costs between $2000 and $5000 to truly capture an individual’s genetic information this will shift to under $100 in 2017. This means that if the processes and systems can keep up, we don’t need to prescribe drugs based on how most people would respond (the way we do today). Instead we can use targeted drugs (that we know work) based on someone’s genetic makeup.This is why effort spent on the transformation of systems of record is so critical – today. Planning for this world where we can have petabytes of storage on mobile devices like cell phones will enable whole new approaches when compared to the most modern cloud based techniques we think of today.
- Going forward it will be all about choices – this is one area that I think HP’s approach to cloud and modernization is a real differentiator from others. It is about enabling you to make choices, not forcing our choices on you – but that’s really someone else's presentation.What’s key for this presentation though is that our mental model needs to shift to enabling and “and” not an “or” world for the business, where IT organizations enable selection among possible solutions, rather than between them. A key part of this is maintainingan application portfolio that supports this more flexible view.Where organizations can use information to make business decisions wherever and whenever they need to using services pulled together from a variety of sources.
- There will not be one right answer that applies to everyone.Instead almost every organization will need to support a hybrid delivery model based on an organization’s objectives, adoption maturity, risk profile and other factors. Each business will have a unique entry point or “on-ramp” mix that they need to address.What we think of as possible for the future of computing has changed radically, recently. Today we have computing solutions getting driver’s licenses. Systems that can perform pattern recognition and derive the context of spoken and written text are becoming common. The level of automation that is possible is quite different than just a few short years ago.Organizations will take many of the concepts they have learned deploying and automating the information technology processes on their path to cloud and apply them into other parts of the business. Radically reducingthe latency in the business decision making process.I think of Cloud Computing as an example of the degree of automation that can happen elsewhere in the business. The systems of record provide that solid foundation for automation. Without a stable basis for pattern recognition, workflow, simulation and modeling, business automation will be a difficult goal to achieve.
- Now is usually when people start asking how do I get started on preparing for the future?You have to create a strategyYou need to understand your current environment. Perform some sort of current situation analysisDefine an architecture plan (start small --defining meaningful projects after all if they are not impactful, no one will care about the results)Prototype areas of that are unknownShutdown low value applicationsSeparate out normal from the anomalies for the business and begin to automate “normal” and focus the people where their creativity is needed.
- Planning is critical for having these efforts succeed as well as the organizational change management to ensure the whole organization is ready for the change can be the difference between success and failure.So a structure with that delivers work products that can provide a level foundation of understanding is important.HP also has personnel and processes to assist in the assessment of a businesses application portfolio.As well as personnel, processes and tools to facilitate the modernization of applications. Our approach classifies applications into 4 domains for architecture life-cycle planning:
- Some applications may remain in their current environment unchanged, but Applications that need work are categorized four domains are:Re-Host: This is the most non-invasive approach and is for the most part a lift and shift. Migrating the application as—is over to a new infrastructure that would continue to be managed in a traditional fashion.Replace: With some applications it may not make sense to continue maintaining them. Alternative replacement or condensing strategies may be possible. For example – if our client has a custom (or definitely if it has many) CRM application, it may make more sense to replace this with a cloud based CRM cloud offering. Such alternatives may provide more features and benefits at a more competitive total price.Integrate: The integration of off-premise cloud applications is frequently identified in analyst reports as a barrier to cloud adoption. For this reason, our approach may include the build of our clients enterprise integration platform enabled via an enterprise service bus, or it may require the wrapping of existing legacy applications to expose them as web based services. This domain would leverage our SOA and Integration Services.Re-Architect / Re-Factor: These two options are the most intrusive, but may be required for applications written in a legacy language (COBOL, IMS, PL/1, etc.). Cloud techniques provide highly saleable and parallel processing enabling capabilities that if organizations really need to take advantage of these features, significant redesign will be required. Although many people talk about cloud bursting as a way to add greater flexibility, actually enabling applications to do this is much more difficult than just talking about it.It is getting to the point where I believe the word application is becoming meaningless, since it is more of an aggregation of interconnected services than what is normally thought of as a stand along application.
- <READ SLIDE>