Agile EA in Practice

Understand EA Value & Risks

What is Value?EA Value Measures

What are Risks?EA Risks

Understanding EA Value starts with understanding What is IT Generated Value?

ICT Business Activities

IT as an Resource Value is:1. Featured in its• Hardware • Software• Supported business

processes• People skills

2. Measured by productivity, on-time & quality indicators

The interaction of IT & Bus creates business value, which:

1. Is of an economic and/or strategic nature;

2. Has different facets, depending on business priorities;

3. Can be measured using different metrics (KPI + measures) relevant to the appropriate business contexts;

4. Are created via projects of BUs

Adapted from: http://www.mckinsey.com/insights/business_technology/how_cios_should_think_about_business_value ;

http://docs.health.vic.gov.au/docs/doc/EF8861765B99DB1ECA257B19007DBA75/$FILE/understanding_program_logic.pdf

http://evaluationtoolbox.net.au/index.php?option=com_content&view=article&id=30&Itemid=136

Example: Business Value created by use of EA

Source: http://davidfrico.com/rico07a-s.pdf

Case Study – Project that aligns the ICT of USA federal, state & local governments. The cost-benefit analysis findings (business value):

1. Financial Cost Savings2. Service Provisioning Improvements3. Lesser Duplications & Waste4. Higher economic growth building capacities5. Consistent community services independent

of political changes

Example: Business Value created by use of EASame Case Study – More in-depth analysis of cost savings by each USA state

Source: http://davidfrico.com/rico07a-s.pdf

EA Value

Strategic elementsBusiness elementsTechnology elements

Better Enterprise Resource Planning

• Shorter planning to deployment cycles

• Identifies & reduces resource & workduplication optimises staff nos.

• Identifies & improves resource integration & performance

Better Communications between strategists, business & ICT staff:

• More effective meetings

• More shareable reference info about strategy, business & ICT matters

Better Decision Making

• Faster decision making

Value varies depending on:1. Size & complexity of organisation2. Type & number of IT performance issues/gaps3. Degree of ICT resource duplication4. How supportive are stakeholders for IT

“No such thing as a free lunch”

The cost of getting value is accommodating some degree of risk

WHAT IS RISK?

Managing EA Risk – What is Risk?

Risk - the effect (positive or negative) of uncertainty on objectives. Risk is considered with reference to possible consequences and likelihood of occurrence (ISO definition)

The actual consequences of risks are often called problems and issues

Objective Target KPI

Below KPI

Above KPI

Aims for

Over achieves

Under achievesRisk Occurrence results in KPI variances & other unforseen effects

Risk Assessment:1. ID the uncertainty causes of KPI

variances & other dangers2. Measures the impacts of risks3. ID the appropriate risk prevention,

mitigation (containment) and recovery strategies

If EA is to enable the creation of value adding ICT enable services, then think of what causal factors (risks) that can erode the work performance of this intent.

Examine the value creation of EA in text and think of the reverse and what may cause it

Strategic or operational

Managing EA Risk - Risk Management Process Concepts

Example of a typical Risk Management Process Model Source: https://ppl.app.uq.edu.au/content/1.80.01-enterprise-risk-management

1. Risks Prevention2. Risks Mitigation3. Risks Recovery

EA Value / Risk

Strategic elementsBusiness elementsTechnology elements

Better Enterprise Resource Planning

Better Communications between strategists, business & ICT staff

Better Decision Making

1. Current & Future EA Planning involves more $2. EA as a new resource mgt method is not always accepted3. Require specialist skills – availability issues high salaries4. Time to document may delay projects5. Lack of comprehensive & integrated EA management &

modelling tools

EA ValueEA Risks

Managing EA Risk – from a Risk Prevention Perspective

1. Don’t be first adopter of EA advances in method changes & tools dev

2. Secure executive commitment & support for EA adoption

3. Identify EA costs and allocate to project budgets capacity to zoom in/out EA cost components

4. Have EA team succession planning – training and recruitment backup strategies

5. Integrate EA management methodology into project management methodology, as part of project governance; include EA management in corporate governance system

Deeper into EA Cost RisksUnderstanding the Cost Drivers of EA

SETUP + COMPLIANCE + UPDATE

1. EA Staffing & Consultant Costs

2. EA Activity Costs

3. EA Equipment/Tools’ Costs

4. Involvement of other Stakeholders – the costs of their time, resource provided, etc

In Projects

Cost Drivers can be potential Cost Risks – How?

EA Governance Concepts

Corporate Governance & ImplementationEA Governance in Projects

SoA GovernanceBalancing SoA Agility & Quality Value/Risks

Corporate Governance

Organisation’s “Rules”

Expected to:

1. Be reflected in all people’s behaviours (conduct)

2. Represented in all decision making, operational & project activities

3. Check compliance & intervene to correct non compliance

Corporate Governance Implementation

Organisation’s Governance Framework

EA Governance

Can be part of

affects all ICT enabled operational & project

work

Operations

Projects

Governance Framework

OrCan be part of

EA Governance in Projects

EA Governance work is about checking that people follows EA principles, policies, standards & best practices in their projects, ie compliance oversee

How do you deal with non compliance?

Depends on:• Your management style• Organisation culture

Compliance accountability behaviours & penalties

Risk taking behaviours

EA Governance StylesChiefdom

IT or Business MonarchyDuopoly – some business & IT

executives controlDemocracy

Anarchy – no clear authority

EA Governance in Projects

EA Governance enablers:

1. Communication effectiveness

2. Available of quality EA tools

3. Showing visibility of compliance

4. Compliance rewards / non compliance penalty

5. Change management decision evaluation & execution accountability

EA Governance & Compliance Enablers

Communication Enablers EA Training Programs

EA HRM Provision

EA Knowledge Management Practice

EA Automation

Clear & common understanding

Recruitment & HR Plans for EA

Regular Access to EA Training

Specialist Networks & Forums

EA System Tools

SoA Governance – rules for exercising control over services

Service Perspectives

Strategic Service

Business Services

IT App Services

Network Services

1. Design rules2. Runtime rules3. Change mgt rules

Example: Using EA3 Layering

SoA Agility

TimeQuality

Balancing Quality & Agility Value/Risks in SoA Projects

SoA Quality

TimeCost

Less time

More time

More quality More time

The more agile a SOA implementation becomes, the more time is required to ensure quality, and as a result, it isn’t long until quality activities become so time-consuming that the agility of the implementation is at risk.

The only way to obtain the balance between agility and quality the business requires is to take an iterative approach to a SOA initiative, where each iteration is bounded either by scope or cost

Quality = More Time & Cost

Agility = Quality + More Time = (More Time & Cost) + Time

Ramifications of balancing SoA Quality & Agility in Projects

EA work is executing both

EA Management + “analysis & design” modelling

Agile iterations bounded by scope & costs executingmanaging

Some Basic SoA Concepts

Service Definitions

Service Design Concepts: ZAPTHINK vs Open Standards SoA Design

Symbolic & Semantics Service Design Modelling

ZAPTHINK – a SoA future roadmap

Classification of EA Domains

Application Integration Domain

Information/Data Domain

Technical Infrastructure Domain

Business Architecture Domain

The classification of EA documentation areas (domains) can vary across EA standards

What is a Service?

ITIL Definition: “A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.“

SoA Definition: “A self-contained unit of software that performs a specific task.”

Business Service Infrastructure Service

1. “Are services that perform specific business functions and are required for the successful completion of a business process”

2. Also called application services

1. “Services provide the technical functionality necessary for the implementation of business processes in SOA, but do not directly add business value”

Source: https://www.mulesoft.com/resources/esb/services-in-soa

Understanding Service Concepts:ZAPthink Service Abstraction Concepts

ZAPthink Service Concepts:

1. Service Abstraction reveals1. How a service is

configured & implemented

2. How a service interface with another? Via WSDL

3. What is the nature (type) of a service? Is it strategic, business, IT or deeper classification types under each of these 3 core service lines.

ICT enabled Services

ICT enabled Services

1, 3

2

1, 3

Understanding Service Concepts: Open Standards – SoA Design Principles

SoA Design Principles

1. Service Abstraction = Hiding as much details of a service as possible via using service contracts that only contain essential information about services:

Uses metadata to describe services service contract information = metadata

the type of a service abstraction is related to the logic in hiding / revealing info

Understanding Service Concepts: Open Standards: SoA Service Design Principles

SoA Design Principles

2. Types of Service Abstraction Functional Technology

Program Logic

ServiceQuality

See http://serviceorientation.com/soaglossary/meta_abstraction_types for details

Functional abstraction what a service is capable of doing

Technology abstraction what technologies are used to build a service

Program Logic abstraction how the functions of a service are designed & programmed

Service quality abstraction What are the runtime behavior, performance or reliability requirements, or other QoS details required of a service

Summary - Levels of Service Abstractions

Service Contract defines service• Type• Implementation

specs

ServiceMetadata

Service Contract defines service• Type• Implementation

specs

Service Interface Contract

Functional Contract

Program Logic

Contract

TechnologyContract

QualityContract

1

2

3

Integrating ZAPTHINK and open standards’ SoA Design concepts

Levels of Service Abstraction

Two methods for modelling SoA services:

1. Symbolically – modelling the service’s structural properties for organising contents eg Entity Relationship objects

2. Semantically – modelling the service meanings of contents eg ontology objects

Symbolic & Semantic EA Modelling Examples

ER Modelling: Object’s Structural Relationships mapping

Ontology modelling: Object’s Structural & Contents’ Relationships mapping

Zapthink Vision - SoA development Roadmap

5 Business Trends

3 ICT Trends

Influencing SoA analysis & design

developments

Tutorial Tasks

Tutorial Qs

Q1. What are some of the areas of value that are generated by an EA program?

Q2. What are some of the risks associated with implementing an EA program?

Q3. How does EA help an enterprise to view its strategic direction/goals?

Q4. How does EA help an enterprise to view its business services?

Q5. How does EA help an enterprise to view technology resources?

Q6. What is meant by managing risk? Provide two methods to manage risk.

Q7. How does EA link to strategy, business and technology?

Case Study Analysis

1. What is the potential value of DMC EA proposal?

2. What are the possible risks in the DMC EA proposal?

3. How can EA can help develop views of this business’s strategic direction and goals; business services and supporting resources?

Q8 Do you agree with the need for an EA program in the case study?

Kate Jarvis (COO)

Sales & Inventory Tracking System(SITS) – ~2 years RoI, $3mio++

Integrate info across• Sales• Inventory• Production

Cost Accounting ModuleWELLCO ERP System18 months RoI, <$600K

Sam Young(CIO)

Jim Gorman(CFO)

Capacity to compete with competitorMitigate production inefficiency

Improve cost management

Decision Options: Buy 1, Buy 2?

Rob Danforth(CEO)

Gerald Montes(Chief Council)

SCENE 1

Lily Jefferson

System Analyst

VinceThe Albright

Architect

Sales & ProductionDepartment

FinanceDepartment

Analyse Kate & Jim’s System Requirements

Infer DMC’s Strategic GoalsEg New Custom Order Line of

Business for Next Year

What is the value in terms of cost savings & scalability of

solution?

EA will align each current & future departments,

increase cost savings into the future, BUT will cost

additionally $121,600 & 2 months ......

1What is DMC

organisation culture?

3 Discuss the merits and limitations of the CIO’s (Sam) EA Plan for Financial and Production Segments?

2Can you describe

DMC organisation structure?

SCENE 2

EATeam

Given the mandate to develop 2 segments of DMC’s EA.First deliverable: business case & EA Dev project plan

Two Critical Success Factors1. Inclusive stakeholder involvement2. Agreed EA Methodology

DMC EA Plan: Financial & Production Segments

Report

Produced

Elaborate the EA Approach / Methodology proposed in report

• EA Development timeline• EA modelling steps involved• Planning & decision making information specs, including preferred

documents’ formats• Selection of EA modelling techniques & tools• EA scenarios – Current & Several Future views• Agreement of planning assumptions• Evaluation of Kate/Jim’s systems and retrofit in EA scenarios• Explanation of how the EA methodology’s framework to structure DMC

EA and guide its various EA modelling/ documentation activities

Meeting Discussion Highlights

Meeting Outcomes: Agreed EA Methodology & EA Documentation FrameworkNext Meeting Goals: Understand how the 2 outcomes are used to document the current & future

models of Jim + Kate’s business units/departments

SCENE 3

EATeam

Given the mandate to develop 2 segments of DMC’s EA.First deliverable: business case & EA dev project plan

DMC EA Plan: Financial & Production Segments

Report

Produced

Inferred Methodology Contents• EA Development timeline• EA modelling steps involved• Planning & decision making information specs, including preferred

documents’ formats• Selection of EA modelling techniques & tools• EA scenarios – Current & Several Future views• Agreement of planning assumptions• Evaluation of Kate/Jim’s systems and retrofit in EA scenarios• Explanation of how the EA methodology’s framework to structure DMC

EA and guide its various EA modelling/ documentation activities

This Meeting’s Goals Achieved: To Agree the proposed EA Methodology & EA Documentation Framework

Inferred Business Case Contents• Chosen Jim/Kate’s areas as the 2 EA segments because they

cover several lines of business (LoB)• Analyse DMC’s strategic goals, business activities &

technology capabilities• Specified the 2 areas’ business and ICT requirements

SCENE 3