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Using Business Architecture To Drive Business Services
1.
Using Business Architecture to
Drive Business Services David Baker Chief Architect, Diamond Management & Technology Consultants david.baker@diamondconsultants.com March 28, 2007
2.
What you can
expect to learn • A holistic service model for the enterprise • Learn the different roles of technical services and business services • Discover the impact your company‟s operating model has on the definition of services • Explore the elements of a business architecture meta-model • Learn how to use business architecture to identify business services • Develop a strategy to engage your business counterparts in EA planning • Use your EA blueprints to govern your service implementations • Learn why an SOA business case is the wrong way to justify business services Page 2 © 2007 Diamond.
3.
But, aren‟t you
really talking about SOA? (short answer) Yes, but… (long answer) SOA is a very broad concept and, as such, “services” are certainly an important sub-topic. My objective is to describe how Business Architecture provides a way to document enterprise capabilities and the services that enable those capabilities. I am going to try to NOT say “SOA” again, no promise though Page 3 © 2007 Diamond.
4.
There is a
continuum from Business Services to Technology Services • Presentation: Describe how information is Presentation captured and presented to the user consistent Services with their role, function and level of authorization Business Focus • Business: Contain the logic and context Business Services required to successfully execute a business process by leveraging other available services • Enterprise: Provide those business functions Enterprise Services which are common to multiple processes and when executed produce a simple pass or fail Technology Focus response Data Services • Data: Access core data stores to retrieve or set data grouped into logical objects Infrastructure Services • Infrastructure: Provide technical services that promote reuse of IT infrastructure Page 4 © 2007 Diamond.
5.
Example: Financial asset
management company – transfer agency function Presentation Business Services Enterprise Services Data Services Services Account Master Account Set-up Apply Validation Edits Get Account Information Set Account Information Capture Data Monetary Transaction Get Transaction Info Account Maintenance Edits Set Transaction Info Change of Trustee Purchase Product Master Get Product Information Display Controls Party Set-up Redemption Dealer Master Get Dealer Information Party Maintenance Settlement ... Display Results Workflow Repository Search Generate Letter Get Routing Information Get Workflow Info Transaction Workflow Set Alert Timing Info Infrastructure Services Conceptual Context Diagram - Not Exhaustive Page 5 © 2007 Diamond.
6.
There is an
„art‟ to distinguishing Business Services from Enterprise Services Business vs. Enterprise Services Leading Questions • Business Initiated Activity –Is the service something that would be a reason a shareholder would call in? – Yes, Business Service –Can the service be incorporated into the business driven processes? – Yes, Enterprise Service Enterprise Services Fulfills the spirit of • Reusability –In detailing the business processes, did the same a majority of the activity, function or task emerge repeatedly? –Yes, Enterprise Service Enterprise Service led questions. –Did a process or function appear to be an outlier, unrelated to others? – Yes, Business Service Fulfills the • Scale spirit of a majority –Do future state scenarios such as a new product of the Business Service indicate an explosion in a particular type of business led questions. service? - Yes, Enterprise Service –Would a service be a candidate for exposure through a new channel? – Yes, Business Service Business Services • Localization –Would items like regulatory changes require updates to a large number of services? – Yes, Enterprise Service Page 6 © 2007 Diamond.
7.
Infrastructure services contain
the distributed, shared enterprise services for technical infrastructure Five Zone Service Model Infrastructure Service Examples • Messaging • Persistence Five Zone Service Model • Security • Directory services • Business rules • Workflow engine Page 7 © 2007 Diamond.
8.
These are some
likely Infrastructure Services for our Financial Services example Presentation Business Services Enterprise Services Data Services Services Apply Validation Account Master Edits Get Account Information Set Account Information Sales Web Get Transaction Info Set Transaction Info Mutual Fund Transaction Purchase Product Master Get Product Information Settlement Infrastructure Services Security Services Messaging Transaction Broker Log Product e.g. SiteMinder e.g. MQ e.g. WebSphere BoR Business Integration Fail EAI Hub Page 8 © 2007 Diamond.
9.
How do you
identify (and plan for) business services? High Coordination Unification Shared customers with highly customized Consistent product design and products, services, and features globally integrated processes for all customers Business Process Integration Focus: Integration capabilities Focus: Centrally designed and managed Diversification Replication Few shared customers with Few shared customers with highly variable product design operationally similar product units Focus: Focus: Localized development speed and Replication of standard capabilities and autonomy provision of APIs Low Business Process Standardization High Page 9 Source: Jeanne Ross (MIT CISR) - Enterprise Architecture as Strategy, Diamond. © 2007 Diamond.
10.
The choice of
operating model is reflected in the level of service standardization High Coordination Unification Prsntn Business Enterprise Data Prsntn Business Enterprise Data Svcs Services Services Services Svcs Services Services Services Business Process Integration Infrastructure Services Infrastructure Services Diversification Replication Prsntn Business Enterprise Data Prsntn Business Enterprise Data Svcs Services Services Services Svcs Services Services Services Infrastructure Services Infrastructure Services Low Business Process Standardization High Not Std Partial Standard Page 10 © 2007 Diamond.
11.
Identification of operating
model (and therefore services) must happen in the planning stage Business Release Project IT Strategic Planning Business Strategic Execution Planning (Portfolio (SDLC) Operations Planning Mgmt) Prioritize the allocation of IT resources to Develop projects that Use enterprise and business unit achieve business support businesses’ Run the direction and goals to drive IT strategy, in alignment annual and strategic business plans with enterprise plans architecture Portfolio 1 Project Blueprints Project Enterprise Portfolio 2 Filter Blueprints Blueprints Project Project Portfolio 3 Blueprints Project Multi-Year Plan Budget Cycle Project Cycle Continuous Page 11 © 2007 Diamond.
12.
A business-capability driven
blueprint is integral to planning for business services Business Architecture Business Business Business strategy and Strategy Operations Functional capabilities are key to decomposition is key identifying the Desired Business Capabilities to identifying top level operational model Business Services Solution Architecture Service Model Information System Interface Model Model Model Infrastructure Model Planning Technology Architecture Building Data App Development Execution Operations Network Security Models Models Models Models Models Models Models Page 12 © 2007 Diamond.
13.
Engage the Business
by documenting, and driving additional detail into, the business strategy Strategic Business Architecture A comprehensive statement covering MISSION the major functions and operations that the program addresses KEY DRIVERS & GUIDING An inspirational, forward-thinking VISION view of what the program wants to achieve PRINCIPLES The top priorities that would achieve GOAL GOAL GOAL GOAL the vision A set of realistic outcomes tracked by PERFORMANCE performance indicators that OBJECTIVE INDICATORS collectively support goal attainment CAPABILITIES A description of what the business needs to do to achieve the objectives REQUIREMENTS A description of how the capabilities should be implemented Page 13 © 2007 Diamond.
14.
Engage the Business
by documenting, and avoiding excessive detail in, the business operations Operational Business Architecture BUSINESS CONTEXT Business Architecture Functional Diagrams FUNCTION ORGANIZATION Business Level 0 SUB-FUNCTION STAKEHOLDER LOCATION Process Diagrams Process design usually Process Design PROCESS / SUB-PROCESS done AFTER a blueprint Business Level 1 exists, as part of a funded project. TASK Page 14 © 2007 Diamond.
15.
Example: Our Transfer
Agency example model expressed as a business architecture Business Context Business Architecture Transfer Agency (partial) Level 0 Functions == Business & Enterprise Services Account Set-up Party Set-up Transaction Apply Validation Monetary Txn Purchase Generate Letter Settlement Redemption Workflow Edits Edits Solution Architecture (partial) Master Data == Data Services Infrastructure Services Account Master Product Rules Engine Workflow Engine Page 15 © 2007 Diamond.
16.
A business architecture
helps avoid common pitfalls when starting a service based architecture • Start with operational model and capabilities, not requirements – Requirements are good for implementation but bog down the planning process – Capabilities provide a manageable level of detail for prioritization and release planning • Start with functions, not with processes – Process engineering requires a tremendous amount of detail – Functions allow coarse-grained prioritization and justification for follow-on detailed process work • Hold off on reference architectures until a couple blueprints exist – Ensure you are working on the highest priority business and enterprise services Page 16 © 2007 Diamond.
17.
Business services require
greater management maturity than technical services… Infrastructure Services Data Services Business & Such as: Enterprise Services - Single sign-on - Logging - Create / Read / - Business process - Standard ETL - Performance Update / Delete support - Messaging Instrumentation Master Data - Enterprise-wide process support SOA Management Maturity Technology Business Services Services Page 17 © 2007 Diamond.
18.
… and increased
complexity of the underpinning technology Level 3: Business & Enterprise Services • Service Registry • Version Resolution • Metadata Mgmt • Extensibility • Service Aggregation • Process Mgmt Level 2: A business service is an Integration and Data Services implementation of a unit of work that • Translation • Security • Communication • Transformation • Quality of • Infrastructure is well defined, self contained and • • Request Routing Transaction • Service Monitoring does not depend on the context or Mgmt • Management state of other services. A business service provides a distinct function Integration services enable the Level 1: and has the following technical Shared Technology Services automatic synchronization of data characteristics: • Error Handling • Instrumentation between operational systems using • Logging • Data Access • discoverable and dynamically a standardized application • Security • Robust APIs bound integration approach. Integration Shared technology services centrally • self-contained and modular services also provide the implement enabling technologies and • stress interoperability foundational architecture for tools that can be used by all other • loosely coupled delivering business services. services and channels. These include • network-addressable interface but are not limited to workflow engines, translation services, business rules, and communication. Page 18 © 2007 Diamond.
19.
MIT Center for
Information Systems Research (CISR) maturity model • Capabilities build on other capabilities • Ongoing service delivery is the required foundation for all other capabilities • Expecting agility without having the other capabilities hurts performance Page 19 Source: Adapted from “IT Leadership and Agility”, George Westerman, MIT CSR © 2007 Diamond.
20.
CIO/CxO relationship and
Governance are key components enabling business services How will SOA impact your IT operations? Service Similar impacts as moving to shared platforms (servers, etc) Management Do you have the right skills to manage SOA? Are your systems meeting expectations? Project How should your IT delivery organization change to support SOA Delivery How to economically deliver enterprise-wide services Generating line of business (LOB) blueprints and business capability roadmaps Governance / identifies Business and Enterprise services Alignment How do you use architecture governance to ensure economical re-use? How do you build the right service, at the right time, for the right cost? How do you use Business Architecture to establish needed CxO / CIO rapport and CIO / CxO Relationship trust? How do you transform IT to understand the desired business capabilities? Page 20 © 2007 Diamond.
21.
Develop a strategy
to engage the business in service identification* • IT must have a foundation of trust with the business – Manage IT assets very well (high uptime, low unit cost) – Help the business provide effective IT oversight (financial transparency, performance management, etc) – Build and continuously enhance credibility and trust • Importance of a unified IT operating model – Establish clear business roles in planning, building, and running IT • Business drives the need (and owns some services) – Engage the business in THEIR priorities, model solutions using business architecture – Establish a business function to own business/enterprise services • Services cannot come before governance, project delivery, and these relationships * Adapted from: “Business Agility and IT Capabilities”, George Westerman, MIT CSR from an analysis of 1400 responses to the Fall 2004 Gartner CIO survey Page 21 © 2007 Diamond.
22.
Services should be
integrated with existing EA governance mechanisms • Service governance should be integrated into existing EA governance – Define a centralized application and architecture design review board – Enforce consistent standards across development frameworks – Enforce consistent implementation across applications – Integrate review process with the IT operating model (plan, build, run) – Define a centralized operations and architecture design review board • Service specific technologies can assist the governance activities – Share future state models via Enterprise Architecture repository – Service repository – Run-time monitoring Page 22 © 2007 Diamond.
23.
Neither business nor
technical is a “SOA business case” Business-driven 1st Business Domain business cases Engage the for business 2nd Business Domain Business services Nth Business Domain We need services! 1st Business Services 2nd Business Services Build services Nth Business Services Build and deliver Infrastructure services Cost-reduction / avoidance business case for infrastructure Page 23 services © 2007 Diamond.
24.
Key Takeaways •
Adopt a holistic model for service identification – Separate technical infrastructure services from business services • Use Business Architecture methods to identify business services – Engage the business to determine the prevalent operating model – Helpful to identify business process specific services separate from enterprise-wide shared business services • Realize the level of maturity required to reach business service delivery – Ability to build and operate services – Ability to govern identification, development, and use of services – IT must have a foundation of trust with the business Page 24 © 2007 Diamond.
25.
Thank You
Questions? Page 25 © 2007 Diamond.
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