Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft...

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advising on IT-business alignment m wd macehite r w ard-dutt Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter, Partner
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Page 1: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

advising on IT-business alignment

mwdmacehiterward-dutton

Rethinking enterprise and infrastructure

architecture

Microsoft Infrastructure Architect Forum

24 October 2005Neil Macehiter, Partner

Page 2: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 2

Key messages for today

IT-business alignment has never been so important

Alignment must be pursued in the context of understanding business processes, priorities

Service-orientation is not just for applications Contracts aren’t just about function: they

encapsulate and communicate business priorities to IT delivery organisations

Enterprise architecture needs to be more inclusive, sophisticated

IT governance models must take all this into account

Page 3: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 3

Agenda

Business and IT: new tensions IT-business alignment Alignment principle #1: service-oriented IT Alignment principle #2: understanding

business processes and their priorities Enterprise architecture must reflect IT-

business alignment principles A governance model for service-oriented IT Recommendations

Page 4: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 4

A brief introduction to MWD

Strategic advice and consulting Focus on issues concerning IT-business

alignment– Driving more business value out of enterprise IT– Not about the “nuts and bolts” of individual

technologies

Core: two highly experienced industry analysts / practitioners– Sun, Oracle, Sybase, Ovum, Deloitte Consulting,

etc

Based in UK, Europe-wide focus

Page 5: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 5advising on IT-business alignment

mwdmacehiterward-dutton

Business and IT: new tensions

Page 6: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 6

Business pressures are driving change in new ways

Globalisation– Customers, partners, suppliers – and

competition– Connectedness driving sophisticated value

chains

Transparency– Industry regulations, consumer pressure and

competition driving openness

Service focus– Differentiation and shareholder value

increasingly derived from service experience

Page 7: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 7

Common resulting business/technology change projects/scenarios

Managing and proving regulatory compliance

Refinement of approaches to business and technology outsourcing

Integration of processes horizontally across organisations

Integration of processes, products and offerings between organisations

Page 8: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 8

The challenge: IT often fails to support these types of changes effectively

Technology integration is costly, risky and complicated

Information is everywhere, but getting access to the right information at the right time is very difficult

Modifying system behaviour takes too long and changes are difficult to communicate and implement effectively

Much of IT system and operations expenditure is bloated and fixed - operations run with excess redundant capacity

The result: IT seen as a cost centre, not a source of business value

Page 9: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 9

Dynamic, collaborative processes (product innovation, marketing, strategy setting, etc)

Stable, predictable processes (accounting,

order fulfilment, HR, logistics, etc)

Web user experience (increasing numbers of ERP/CRM applications, content management, etc)

Desktop user experience (office

productivity, communication/

collaboration, etc)

Unstructured information (office documents, web content etc)

Structured information (customer records, order &

fulfilment records, accounts, etc)

Three fractures: information management, process support and user experience

Information management

Process support

User experience

Strong heritage of

management; BUT tends

to be application-

specific

Little heritage of

formal management; storage is fragmented

Strong heritage of

management; BUT tends

to be application-

specific

Little structured automated

support from IT

Familiar, highly

interactive BUT tends

to be application-

specific

Open and accessible

environments but

usability can be poor

Page 10: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 10advising on IT-business alignment

mwdmacehiterward-dutton

IT-business alignment

Page 11: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 11

IT-business alignment: multiple angles

IT

Business

Changeimplications

Changecapabilities,limitations

Investmentin capability

Deliveryof value

It’s not just about “building stuff that the business will use”

Page 12: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 12

A common language is the essential starting point

IT

Business

?

“Investment prioritised in terms of business need”

“Systems that deliver value to the business”

“Clear direction from the business about focus, strategy”

“Collaborative approach to implementing business change”

A common, agreed representation of business activity, goals

+A common, agreed view of how current and future IT provides structured support to the business in this context

Page 13: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 13

Alignment demands that IT becomes a service provider

Business

IT

Busin

ess pr

oces

s

Busin

ess pr

oces

s

Busin

ess pr

oces

s

Busin

ess pr

oces

s

Busin

ess pr

oces

s

ManagedIT

serviceManage

dIT

service

ManagedIT

serviceManage

dIT

service

ManagedIT

service

A P P L I C A T I O N S & I N F O R M A T I O NI N F R A S T R U C T U R E

B U S I N E S S S T R A T E G Y

Business processesform the foundationof a commonlanguage

IT defines and delivers“business level” serviceswhich support the rightprocesses, the right way

Page 14: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 14advising on IT-business alignment

mwdmacehiterward-dutton

Alignment principle #1:

understanding service-oriented

IT

Page 15: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 15

So what is an IT service?

“CRM database

“Provide automated support for my sales

force”

“Update customer details”

Line of business perspective

IT operations perspective

Developer perspective

Page 16: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 16

Managed IT services – aligned with business processes

Lifecycle servicesManaging the lifecycles of business functions and infrastructure

Business function servicesAutomating business functions

Infrastructure servicesProviding the platform

Users’ experiences of “managed IT service”

Page 17: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 17

Contracts bring obligations for suppliers and consumers

Message FormatMessage Sequence

Functions

SecurityResponse Time

Throughput

Usage CostLiability Clauses

Trust

FunctionalTerms

QoSTerms

Commercial

Terms

Page 18: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 18advising on IT-business alignment

mwdmacehiterward-dutton

Alignment principle #2:

understanding business

processes and their priorities

Page 19: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 19

A universe of business processes [1]

E E E E E

M M M

S

“Execution” processes – instances handle particular units of work within business activities

“Management” processes – instances oversee instances of execution processes

“Strategy” processes – instances oversee instances of management processes

A hierarchy of business processes

Page 20: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 20

A universe of business processes [2]

E

E

E

M

M

S

Contribution to competitive differentiation

E

E

E

M

M

S

Non-differentiating(focus should be on efficiency)

Differentiating(focus should be on flexibility)

Page 21: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 21

Observations on the nature of business processes

E

E

E

M

M

S

E

E

E

M

M

S

Increase

d structu

re, predict

ability

Increase

d colla

boration, a

d-hoc nature

Non-differentiating(focus should be on efficiency)

Differentiating(focus should be on flexibility)

Page 22: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 22

Implications for business function service design

Level of

pro

cess

abst

ract

ion

Low

High

Non-differentiating(focus should be on efficiency)

Differentiating(focus should be on flexibility)

Business activity role

“Strategy”business processes

“Management”business processes

“Execution”business processes

Activity functions

Technical functions

Reusability importanceincreases

Openness, flexibility demands increase

Efficiency demand increases

Page 23: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 23advising on IT-business alignment

mwdmacehiterward-dutton

Enterprise architecture

must reflect IT-business

alignment principles

Page 24: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 24

The real world

From Towards

Build, or buy vs. build

Application implementation

Buy AND build AND integrate

Back officeBusiness area investment

focusFront office and

beyond

“Personal productivity”

desktopIT access environment

Productivity desktop +

global access to resources

Data processingTechnology innovation

focus

Communication, collaboration,

integration

Older approaches fail to capture reality re: integration, communication, collaboration,

supply complexity

Outsourcing vs. in-house

delivery

Capability supply “Multi-sourcing”

Page 25: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 25

A “traditional” view of EA [1]: The Zachman framework

Source: John Zachman, ZIFA

Page 26: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 26

A “traditional” view of EA [2]: TOGAF ADM

Source: Open Group

Page 27: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 27

The good and the bad of EA frameworks

The good The frameworks give us a

useful “language” for communicating and sharing ideas about how IT systems can/should support business needs

Methodologies like the TOGAF ADM give solid templates for EA process work

Starting to consider more dynamic aspects of EA– as-is, to-be, vision views

The bad The roots of most

frameworks are in the creation or change of transactional information processing systems

The real world of IT is much more ugly and complicated

Still documentation-oriented – not focused on the process of architecture evolution & governance

Page 28: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 28

Business process

Applications

Data

The challenge

Activities, processesThe business

The real world doesn’t “decompose” nicely – and IT isn’tjust about things you build in-house

Page 29: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 29

Providing structured support for business processes means understanding scope & scale of interactions

From

Data design tightly coupled to application design, and

application design to “user requirements” – very restricted

view of process needs

B u

s i n e

s sp r o

c e s s

Towards

B u

s i n

e s

s p

r o

c e

s s

Loosely-coupled resources provide services which are

designed to support the interactions that take place within a business process

Page 30: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 30

EA approaches must consider business process support more broadly

B u

s i n

e s

s p

r o

c e

s s

Transactionalservices

Informationservices

Communication& collaboration

services

Support scenario: a mesh of

interactions

We have to model more than just transactional applications

Page 31: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 31

An alternative enterprise architecture model

Business architecture- activities, entities- goals, strategy, differentiation

Process architecture- roles, flows, resources

Business function service architecture

Infrastructure architecture- security, identity management- resource management

Transactional / information management

Analytics, discovery, reporting

Communication,

collaboration

Historically the focus of

architecture has been here

Historical disconnect here

Page 32: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 32advising on IT-business alignment

mwdmacehiterward-dutton

Enterprise Architecture and

IT Governance

Page 33: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 33

Enterprise architecture…

Needs to be driven in partnership with the business

IT

Business

Lifecycle

Business function

Infrastructure

Functional QoS

Commercial

Should consider all the different views of service provision – not just functional considerations

Should follow a service-oriented model – but one which is about more than application functionality

Page 34: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 34

These perspectives are the key dimensions for IT governance, too

InvestmentDelivery

Change

Funct

ional

QoS

Comm

ercia

l

Business function

Infrastructure

Lifecycle

Contract aspects

Serv

ice t

ypes

Relat

ionsh

ips

Business processes, priorities

Page 35: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 35

Enterprise architecture and IT governance should be considered together

InvestmentDelivery

Change

Funct

ional

QoS

Comm

ercia

l

Business function

Infrastructure

Lifecycle

Contract aspects

Serv

ice t

ypes

Relat

ionsh

ips

Business architecture

Process architecture

Captures the iterative process

of architecture change

Infrastructure architecture

Business fn architecture

TX/IM A/R C/C

Page 36: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 36

You can use the model to…

Identify strengths and weaknesses in your current IT governance approach

Identify the contributions made by particular technologies to business objectives

As above for IT vendors Consider the dimensions that affect

sourcing decisions

Page 37: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 37advising on IT-business alignment

mwdmacehiterward-dutton

A worked example: the

role of DSI

Page 38: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 38

DSI: the “design for operations” approach today…

InvestmentDelivery

Change

Funct

ional

QoS

Comm

ercia

l

Business function

Infrastructure

Lifecycle

Contract aspects

Serv

ice t

ypes

Relat

ionsh

ips

Capability today is in designing business function services with explicit reference to runtime QoS directives and validate them against a static infrastructure model

Page 39: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 39

DSI: with planned “Longhorn wave” technology

InvestmentDelivery

Change

Funct

ional

QoS

Comm

ercia

l

Business function

Infrastructure

Lifecycle

Contract aspects

Serv

ice t

ypes

Relat

ionsh

ips

With planned future capabilities, design-time QoS directives form the basis of a “live model” which is interpreted and maintained by server infrastructure to perform goal-oriented infrastructure monitoring and management

Page 40: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 40

A call to action

For architecture to contribute to IT-business alignment, you have to follow a holistic approach– Not just applications but infrastructure and lifecycle services– Proactively consider the links between all three– Look for technologies and patterns which support the

linkages

Set up an architecture governance practice which doesn’t just allow change, but promotes it– Not a project-focused approach but an ongoing process with

senior level sponsorship– Close links to business stakeholders and their priorities– Think about using contracts, policies and processes as the

foundation of a common language

Page 41: Advising on IT-business alignment Rethinking enterprise and infrastructure architecture Microsoft Infrastructure Architect Forum 24 October 2005 Neil Macehiter,

© Macehiter Ward-Dutton 2005 www.mwdadvisors.com 41advising on IT-business alignment

mwdmacehiterward-dutton

Thank you