EA Doing The Right Things Right V1 Manageware

Enterprise Architecture - helping 9 December, 2009
orgsanisations do the right things right

®

IBM Software Group

Actionable Enterprise Architecture:
“Helping organizations do the right things, right”

Ian Charters
Distinguished Engineer, FIET
(Leader, IBM Worldwide EA Community)
IBM Rational Chief Architect, EA and SA

Copyright 2009 IBM Corporation

IBM Software Group | Rational software

Let me tell you a story, about my self-build DiY project…
Strategy: “We’re going to have the finest bathroom!”
Planning: “It’ll cost this much, and give us all we need”
Design: “It’ll look like this – let’s go build it”
Development: “Here you are…”
Deployment: “…Bingo! Oh dear…”

Architecture: “understanding
the parts of the whole within its context”

Enterprise Architecture:
architecture of the enterprise

Understanding the enterprise’s
architecture leads to better
planning and better delivery

© 2009 IBM Corporation 2

ian_charters@uk.ibm.com (c)
Copyright IBM Corporation 1998, 2009 1



Ian Charters, IBM (UK) Ltd
Distinguished Engineer, IBM Rational Development (Enterprise Architecture)
IBM Executive IT Architect (Senior Certified, IBM Architect Profession)
Fellow, Institute of Engineering & Technology
For IBM:
Working with IBM's clients in establishing or enhancing their architectural capability - whether this
be
Enterprise Architects helping ensure the definition and planning of viable, robust Business and IT Strategies
Enabling their (IT) Solution Architects to more effectively deliver the IT projects that realise these strategies
(“Design Excellence”)

Co-leading IBM's worldwide EA Community of Practice, helping ensure IBM's own Enterprise
Architects have the right skills to do the job
With particular responsibility for IBM’s Enterprise Architecture Consulting Method

Developing IBM's IT Architecture methods, including the evolution of IBM's formal architecture
language the Architecture Description Standard (ADS)

“Chief Evangelist”, Enterprise & Solution Architecture, IBM Rational


®

IBM Software Group

Enterprise Architecture:
“Helping organizations do the right things, right”

Part 1: Why?

Copyright 2009 IBM Corporation




In a Nutshell…
…EA helps ensure our clients’ IT Strategies are robust (“upstream EA”), and then guides
them towards successful delivery (“downstream EA”)

Upstream EA (Strategic Planning)
Viable IT strategies underpinned by sound architecture
thinking
Sound architecture thinking inspires viable IT strategies

This is a well proven domain of Enterprise Architecture
http://mitsloan.mit.edu/cisr

But success is only achieved when strategic intent turns into delivery, so…

Downstream EA (Solution Governance)
Successful portfolio delivery underpinned by sound architecture thinking

This is a less well established, but equally valuable domain of Enterprise Architecture

When these two come together – it’s an “Actionable EA”!



… with the intent of avoiding chaos…

… and even if an individual house is
well architected, if each house is
different (e.g. different electricity
voltage, water pressure) then the
city will not work…

… plus, if the purpose of
the building is not
clear…





…so that Enterprise Architecture can be thought of as both a link and a chain!

Putting it bluntly… “Enterprise Architecture constrains the
individual project, for the
benefit of the Enterprise”

More Positively…
“Freedom within the law [without which] the life of man
[would be] solitary, poor, nasty, brutish and short.”
Thomas Hobbes, 1588-1679



But why bother? What’s the value of an Enterprise Architecture (1)?

Fundamentally, it’s about co-operation and
co-ordination for the management of risk

There are tangible benefits

Cost avoidance/reduction
Avoid purchase of incompatible architectures
Shortened development/deployment time
Leverage installed architecture
Reduce duplication and waste
Prepare for and manage the deployed environment
Reduced support and maintenance costs
Reduce user support costs
Leverage support staff
Reduce learning cycle





But why bother? What’s the value of an Enterprise Architecture (2)?

But some of the greatest value comes from intangible things

Behaviour
Common vision & principles between the business and IT
Consensus approach serving common goals
Promotes healthy discussion bringing issues and concern out in the open
Create deliverables and execute processes as an organization
Enhanced communications
Common language
Knowledge Management
Centralized design information
Organisation of inventory
Logical systems models
Increased knowledge base



Is it possible to quantify the financial value of EA?
Estimated Savings and/or cost avoidance

Reduces Duplicate Product Implementations $1.5M
Analysis of building blocks indicates that approximately 131 current or potential products can be
reduced to 32 @ an estimated $5,000 annual cost per product over 3 years

Reduces risk that new applications will not meet requirements and be $9.5M
terminated $46M
53 new application systems must be developed or purchased during the next 3 years. Assume 10%
are false starts and each project costs $1.8M
$36M
Improves Time to Market for new Applications needed to Grow the
Business
Assume that (1) not having applications available when needed reduces growth by 5% and (2)
potential income growth is 100% per year for 3 years. 2001 IBIT is $103M $40M
over 3
years
Estimated cost to Implement
Enterprise Architecture Engagement $1.3M

Staff and Operate Architecture Office and Architectural Review Board $3.7M $6M
7 staff FTE for first 9 months and 6 staff FTE for remaining 3 year period @ $100 per Hour
$.6M
Purchase tool and Train Staff in its use
Reference: IBM Engagement, US Utility





Some specific experiences have explicitely quantified the value of EA



Critically, EA’s value propositions are different for different stakeholders in an
organisation – it’s critical not to confuse them!

The Board Solution Development IT Operations
Those responsible for the overall Those responsible for the design The folk who operate the One
ROI for the Enterprise's IT and development of IT systems Enterprise's IT infrastructure Stakeholders
investments and projects. (aka IT associated with specific business
Enterprise
Steering Committee) solutions

Maximise the overall IT ROI by Minimise project risk and Minimise systems management Three distinct
aligning all IT efforts with each integration challenges, challenges and product support
other and with the enterprise's maximise value of available IT issues, maximise value gained Value
strategic direction skills and resource. (i.e. from IT infrastructure through Propositions
maximise chance of success) shared and flexible deployment.

“The Bridge” “The Engineers” “The Engine Room”

Planning,
upstream EA
One EA-
Governing,
Capability
downstream EA



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