Enterprise Architecture Conference 2007: SOA and Business Architecture

The Home of Business-Driven Architecture: http://www.elementallinks.com

Elemental Links

© 2007 Elemental Links, Inc.

Page: 1

Service-Oriented Architecture or Business Architecture: Who�s on First?

Brenda M. MichelsonPrincipal, Elemental Links

Program Director, SOA Consortium

October 23, 2007Enterprise Architectures Conference

Las Vegas, NV


Page: 2Elemental Links


Today�s *Discussion*Business Service-Orientation

Enterprise Architecture Enterprise Architects




Context: Changing Mission of IT

�IT-led teams have consistently found new ways to streamline enterprise business processes, vastly improving operating efficiency and reducing costs.

Corporate leaders, however, are raising the bar: they expect IT�score mission to expand from cost-cutting to enabling revenue generation within a short period of time.�

� EIU, December 2006




Context: Changing Role of CIO�According to recent CIO polls from research firm Gartner Inc.,

50% of CIOs surveyed said they now have duties outside of core technology, such as helping to craft corporate strategy.�

�WSJ 2.20.2007

- The Seven Roles of Highly Effective CIOs, Ziff Davis CIO Insight, March 2007


Elemental Links


Page: 5

Business




21st Century Enterprise: Globalization




21st Century Enterprise: Connectedness




21st Century Enterprise: Digital Markets & Value Chains




21st Century Enterprise: Continuous Innovation




21st Century Enterprise: Change Creation & Adaptation

"If you don't like change, you're going to like irrelevance even less.�

- General Eric Shinseki, Chief of Staff, US Army.




21st Century Enterprise

=

Complexity Impedes




Managing Complexity � McKinsey

�When companies treat complexity as something they must overcome, they miss an opportunity.�

�If complexity, in all its aspects, is seen as a challenge to be managed and potentially exploited,

not as a problem to be eliminated, businesses can generate additional sources of profit

and competitive advantage�

McKinsey Quarterly 2007, Cracking the Complexity Code




Managing Complexity � McKinsey

Institutional Complexity �

�A consequence of the number of nodes and interactions within (and outside) an organization.�

Stems from strategic choices, external environment, organization and operating choices

Individual Complexity �

�How hard is it to get things done�

McKinsey Quarterly 2007, Cracking the Complexity Code




Institutional Complexity Reduction: Node Cutting

Good: Waste Removal

Bad: Risk Protection Removal Bad: Limit Growth, Threaten Survival




Individual Complexity ReductionStreamlining

MBE

EcosystemsService Provider




Simple Ecosystems ExampleReduce Complexity

Increase Business Agility


Elemental Links


Page: 17

Service-Orientation




Service-Orientation� Known Purpose/Job

� Known Input and Output

� Consumer and Provider

� Contract (Agreement)� Service Levels

� Policies

� Cost/Payment

� Change Management Rules

� Problem Management Rules

� �How� of service is only known to Provider




Service-Orientation� Known Purpose/Job

� Known Input and Output

� Consumer and Provider

� Contract (Agreement)� Service Levels

� Policies

� Cost/Payment

� Change Management Rules

� Problem Management Rules

� �How� of service is only known to Provider

* Business Activity Ecosystems are Service-Oriented *




Service-Oriented Architecture

� is an architectural strategy to design and fulfill business scenarios using service-orientation

� is NOT the underlying technology

� may be applied to business, organizational, �application� and infrastructure domains

� gets its power from composability

� mixes well with BPM, Event Processing and Web 2.0

... allows IT to instantiate the intent of business strategists

� requires business and IT collaboration

� needs to be managed as an ecosystem




Traditional Business and IT Collaboration




Service-Oriented World Business and IT Collaboration

Ecosystem Management




Business-Driven SOA

�Our entry is always the process and that�s what we actually talk about � how to optimize the process,

how to drive the process�

When I hear business people talk about systems and they mention System A, System B, System C, I know

we�re in trouble.

Because basically that means to me is that we are locked into the constraints of the environment.�

- CTO at US Executive Summit


Elemental Links


Page: 24

Enterprise Architecture




EA MissionCreate an Environment for:

That Embraces: And Manages:




�Environment�

Business IT Integration Portfolio Planning & Management

Business Agility Platform Governance to Compliance




Enterprise Architecture in 2010

� Technology Focused

� Governance & Control Origins

� Business & Technology Focus

� Business Advancement

� Portfolio Productivity

� True Enterprise Level Function




Business Architecture

� Business Architecture is an organization�s Business Blueprint toactualize its Strategic Intent

� Business Architectures encompass these elements:� Business Motivations, Intents� Value Chains, Value Streams� Product Categories, Channels and Markets� Business Processes, Interactions, Events, Activities� Organizational Models� Business Policy� Business Instrumentation � Measurement and Learning

� Business Architecture has close ties to:� Business and IT Strategy� Project Management Office (Strategic Initiatives)� Business and IT Governance� Enterprise �Technology Architecture�




Business Architecture Misconceptions

� Business Architecture = Business Process Modeling

� Business Architecture is a tool, discipline, for IT

� Business Architects are facilitators, recorders, not creators

� Business Architecture is Model Centric

� Business Architecture Requires End-to-End Business Modeling




Business-Driven Architecture Soapbox

� The most viable, agile architectures will be comprised of a blend of architecture strategies, including:

� Service-Oriented Architecture� Event-Driven Architecture� Business Process Management� Federated Information � Enterprise Integration� Open Source Adoption� �Web 2.0� Collaboration and Generation� Etc.

� How you blend, depends on your business.


Elemental Links


Page: 31

Enterprise Architects

�Linchpin Role�




Enterprise Architects�

� Are strategists, evangelists, architects, project leaders, developers, mentors, and enforcers.

� Collectively and collaboratively provide coverage across the architectural domains��business, application, information, integration, platform, network, security, and systems management.




A Great Enterprise Architect�

1. Is not afraid to make mistakes, and always learns from them.

2. Knows one answer does not fit all problems. Understands any given problem may have many good answers.

3. Builds a community to create an environment of compliance, rather than one of enforcement.

4. Asks great questions that compel further discussion, research, collaboration and innovation.

5. Makes smart compromises, never boxing himself/herself in.




A Great Enterprise Architect�

6. Doesn�t work on an island. Collaborates internally and externally. Researches opposite points of view.

7. Considers technology in terms of business benefits, rather than the technological cool factor.

8. Is equally effective in a leadership, collaborator, or follower role.

9. Thinks holistically, yet acts pragmatically.

10. Can innovate, simply.

11. Is Business-Smart�




Enterprise Architects Need Business Smarts

�One of my VPs said, I�m never bringing [architect] to another meeting because he opens his mouth and all that ever comes out is SOA, SOA, services-oriented architecture, and I can�t bring him to my business

clients.

A year later, he is the most articulate business speaker and has really turned the community where they now

say, we want [architect] at all of our meetings.�

- CIO, Fortune 200 Company




Business Smarts

Industry Business Skills

Business Trends Financial Acumen




In Closing�Business Service-Orientation





Think About This�

1. Who is architecting your business? How is that person/groupconnected to your Enterprise Architecture Group?

2. How is service-orientation being applied in your organization?

3. What is your EA Program doing to create a change-friendly environment for 21st Century Business?

4. Is your Business IQ High Enough?

5. [Intentionally Left Blank]


Elemental Links


Page: 40

Questions? Comments?


Elemental Links


Page: 41

Thanks for your time!

Brenda Michelson: [email protected]

Blogs: http://elementallinks.typepad.comhttp://www.ebizq.net/blogs/bda

Enterprise Architecture Conference 2007: SOA and Business Architecture

Technology

Transcript of Enterprise Architecture Conference 2007: SOA and Business Architecture