service centricity in public sectorIVGM21

Andres KüttMarch 26, 2015

Chief Architect, Information System Authority

introduction

structure of today

∙ A set slides you can interrupt with questions at any time∙ Squeezing a lot of content into 90 minutes, many leaps of faithrequired

∙ Respect the time of others

I might have information.But I do not have the answers, only more questions.

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andres kütt

∙ Building software for money since 1993∙ Been an architect for the past ≈12 years∙ ≈MSc (UT, Statistika), MBA (EBS), MSc (MIT)∙ Currently architect of Estonianinformation system

∙ Skype, banks, public sector, someconsulting and teaching in the past

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today

∙ Systems theory: how architecture and functionality fit∙ Definition of a service∙ A foray into the abyss of complexity∙ Some aspects of service management

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basics of systems theory

definition of a system

A ”System” is the central concept in the following

∙ We are talking about socio-technical systems∙ Both technical and non-technical elements∙ Software is part of the system

∙ A system∙ Consists of inter-related elements∙ Has some input and output∙ Usually is not consciously designed

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System boundaries are always arbitrary

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basics of systems architecture

system architecture

All systems have a design, a way of fitting together

∙ There is no one definition of system architecture∙ Most of them deal with technical systems only∙ Ed Crawley defines the architecture to consist of the following∙ Function of the system∙ Form of the system∙ A set of mental models mapping the former to the latter, the concept

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Not designing something merely relinquishes control overarchitecture, it does not make the architecture non-existent

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system architecture

∙ Form is what is∙ Function is what that, what is, does∙ Concept is dependent on the organisational culture involved∙ The same function can be provided by several kinds of form andvice versa∙ A piston can be used to transfer force and to be a winner’s trophy∙ Force can be transferred using a piston or a rectangular rotor∙ These two are joined in the concept of otto engine

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on functionality

function

∙ Form is the domain of (software) engineering, HR andmanagement in general

∙ Function is what services, including government services, actuallyprovide to consumers

∙ Concept is a product of how these two manage to cooperate

Function is defined via something called primary value process

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primary value process

Primary value process implies that

∙ there is more than one∙ there always is∙ the list is fundamentally incomplete: we cannot know all of them

∙ they are somehow prioritised∙ differentiation and competition happen by changing that ”somehow”∙ how to prioritise an incomplete list?

∙ exactly one of them is chosen as the main focus∙ the most difficult part∙ one person cannot run in two directions simultaneously

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primary value process

Primary value process implies that

∙ there is a customer involved∙ as value is always subjective and thus dependent on someone to ask∙ often, but not always, expressed as money∙ what is the value of having our capital in Tallinn?∙ perceived, not ”actual” value

∙ the system does something useful, value is created∙ there is an upper limit to what the consumer is willing to pay∙ again complex in public setting: the relationship between paying taxesand receiving service is often causally and temporally weak

∙ while intuitively trivial, theoretical backing is sparse

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primary value process

Primary value process implies that

∙ time is involved∙ i.e. value is provided over a period of time∙ systems are inherently dynamic

∙ system is able to accept input and produce, after a delay, output∙ thus depending on other systems as well as being depended upon∙ public services need to form a coherent system connecting inputs andoutputs of different systems

∙ system boundaries need to be defined in time as well as space

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implications of the theory

model of architecture

FunctionFo

rm

Concept

Cost

Revenue

?

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profit in public sector

The difference between revenue and cost has fundamentallydifferent meanings in public and private sector

In private sector:∙ This is called profit∙ In most cases definesshareholder value

∙ Is therefore the focus ofthe organisation

∙ Usually cannot be negativefor long periods of time

In public sector:∙ This is called budget surplus∙ Often obscured by financialcomplexity

∙ Is generally undesirable:taxes collected in vain!

∙ Can be negative for extendedperiods of time

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emergence

Emergence occurs when a system exposes properties, behaviours orfunctions other than it was not explicitly designed to expose

∙ The higher the complexity, the more emergence (generally)∙ Emergence cannot be predicted∙ Can be both positive and negative∙ A wooden box used for percussion (a cajon)∙ Security and safety are emergent behaviour∙ All fraud is emergent behaviour∙ In London, there is a high-rise that incinerates cars by focusing sun rays

∙ Hard to deal with in public sector∙ Rigid legal structure creates blind corners∙ Exploring emergent behaviour is at least not encouraged

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what is a service?

defining a service

What constitutes a service, can be a source of heated, prolonged andfutile discussion

∙ There is no common scientific definition let alone a useful one∙ The question is often linked to issues of power, status andfinancial well-beging

∙ A useful definition has certain properties

Between public sector organisations, the definitions must becompatible

∙ Because they interlink heavily∙ There is central governance pressure

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useful definition of a service

A useful definition∙ must∙ allow for clearseparation of services

∙ be acceptable for thewhole organisation

∙ may∙ be arbitrary in nature∙ be partial

It must encompass all layers oforganisation:∙ Having a distinct set of technicalcomponents

∙ Providing a clean set of functions∙ Having people responsible for it onbusiness and IT sides

∙ Having a clear strategy andperformance indicators

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a foray into the field of complexity

what is complexity?

∙ There is no one definition (notice a pattern?)∙ Static vs. dynamic complexity∙ Static is about structure of a system∙ Dynamic is about behaviour of a system

∙ Complexity vs. complicatedness∙ Complexity is about what system is∙ Complicatedness is about how system looks:the property of a system to appear complex

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importance of complexity

Com

plex

ity

# of elements / time

Limit of abilities

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chaotic behaviour

Complex systems tend to exhibit chaotic behaviour where infinitelysmall change in input can cause an infinitely large change in output

∙ A parameter change below measuring threshold can completelyalter system behavior

∙ Math behind it is very complex as well as complicated∙ Exponents1 and feedback play an important role

How does a time series xn+1 = rxn(1− xn) behave depending on r?

1That people are bad at estimating anyway27

emergence of chaos

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some aspects of service management

service levels

Service level management is essentially a specific kind of riskmanagement

∙ We manage a risk that service levels fall below desirable levels∙ This only makes sense, if this has some real implications (loss ofrevenue, for example)

∙ The basic risk management tools apply∙ Fundamental question: how much are we willing to spend toincrease service availability by x?

∙ In public sector, risk management is intimately related to all sortof security forces

How do we define service availability?

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service levels

One can only control and measure parts of the system one controls

∙ Is your service available if∙ it cannot be found on Bing?∙ it is blocked by Chrome and Firefox?∙ it’s name is not resolved?

∙ The same logic applies to internet providers etc.

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defining service levels

How to determine, if our service is available?

∙ Remember chaotic behaviour of complex systems∙ Small change of operating parameters can have a large impact∙ The system can be non-functional if all its elements are ”green”

∙ Monitoring individual machines is mostly non-sensical∙ Hardware failure rates are well known∙ It tells you next to nothing of the state of the system

Service availability is a data analysis, not monitoring problem

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license

theme

Get the source of this theme and the demo presentation from

http://github.com/matze/mtheme

The theme itself is licensed under a Creative CommonsAttribution-ShareAlike 4.0 International License.

cba

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contents

The contents of the slides is lidecensed under a Creative CommonsAttribution-NonCommercial-ShareAlike 4.0 International

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Questions?

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