Architecting the next generation IT Service Provider Organisation using

TOGAF® with IT4ITTM RA and SFIA 6TM

An Action Research Foundation Case Study

Sukumar Daniel, Principal Architect & CEO, Action Research Foundation

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Agenda• Architecture Initiative – Background• 4 Questions for the Architects to Answer• Delivered Solution Overview• Conclusion

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Strategic Objective for the Architecture

“Create a paradigm shift and transform ways of working; to meet evolving customer requirements while improving business results and achieving people happiness”

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“If you don’t know where you are going, you will end up some place else” – Campbell.

Mechanic Shop Mentality

Customisation Studio Mentality

Tactic – Build Capability not Implement

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Key values derived from iterative use of ADM• Established Architecture Capability – Selected Practioners

trained in TOGAF, included Application, Infrastructure, PMO and HR Teams. Consulting Architect and Lead Architect only external team members.

• Established Architecture Governance Board and Weekly Heart Beat – sponsor only missed 2 meetings over a year.

• Agile and Rapid iterations to grow the vision and reach target architecture – We kept iterating the Vision document as we progressed through the architectures

• Established an IT Service Management COE as infrastructure to own the Resulting Service Capabilities and continually improve and scale across the organisation.

• We did not loose ourselves in the tyranny of documentation and used Archimate extensively to progress understanding in a spiral.

TOGAF© – Capability Based Planning

Architecture Driven Transformation

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Needs an Integrated Approach in Architecting, Construction & Deployment

Source: Defining “IT Service” for the IT4IT Reference Architecture, Keith Jahn – HP, Charlie Betz – Armstrong Process Group

We Used TOGAF

Key questions to be answered• What impact does technology disruption have on a customer’s business

environment and on the ‘Business – IT’ relationship?– Changing needs of business driven by competition deploying disruptive technologies is forcing

organisations into the digital age where the fundamentals of customer relationship and service delivery models are changing.

• What could the next generation CIO organisation, IT operating model, look like?– for customer CIO organisations transitioning to 2 Speed IT, and operating a multi-sourced it service

delivery model; that leverages disruptive technologies required for transitioning to a digital era?

• What could the next generation ESPO organisation, IT operating model, look like?– If the CIO organisation is required to divest itself of Legacy Integration Responsibilities and become a

broker; there is a powerful opportunity for an SPO to move up the value chain; become the service owner; take over the service’s supply chain; and manage the service outcome across the multi-sourced delivery model.

• What are the required changes to people mindset and ways of working?– By adopting the Next Generation IT Operating Model. Businesses expects IT to transform from a Repair

Shop to a Customisation Studio and become a strategic asset. People are the key to the success of this. This requires a shift in mindsets, it requires the establishment of an Innovation Eco-System

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TECHNOLOGY DISRUPTION IMPACT ON BUSINESS – IT RELATIONSHIP?

- Changing needs of business driven by competition deploying disruptive technologies is forcing organisations into the Digital Age where the fundamentals of Customer Relationship and Service delivery models are changing.

Technology Disruption is driving enterprises crazy

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‘Business – IT’ Relationship Everything Is changing

2 Speed IT – Strategy for dealing with disruption

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Speed 1 Speed 2

According to Gartner, “Bimodal (2 Speed) IT is getting a lot of focus as CIOs and IT leaders strive to build IT organizations capable of responding to the threats and opportunities of the digital economy; While maintaining and enhancing traditional infrastructure and services…• 3 out of 4 organisations in the

next few years• Mode 1 is traditional IT; Mode

2 is Agile, New Gen IT.”

WHAT COULD THE NEXT GENERATION CIO ORGANISATION, IT OPERATING MODEL, LOOK LIKE?

- for Customer CIO organisations, transitioning to 2 Speed IT, and operating a Multi-Sourced IT Service Delivery Model; that leverages disruptive technologies, required for transitioning to a Digital Era?

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Legacy Technology Delivery Silo Organisation

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Service Consumers

CIO Organisation as Service Owner (Integrator)

CIO App Support SILO

APP Support Service Provider

Infra Support Service Provider

Network Support Service Provider

Business Governance Business Service Management

Service Provider Governance

Service Provider Management

CIO Infra Support SILO CIO Network Support Silo

Service Provider Governance

Service Provider Governance

Service Provider Management

Service Provider Management

CIO App Development SILO

APP Development Service Provider

Service Provider Governance

Service Provider Management

Next Generation Operating Models moving from a technology delivery silo

organisation to a value chain model that promotes value-based consumption, greater cost transparency and multi-sourced delivery

of a broad-based service portfolio.

Supply Chain Focus – The “BIO” Operating Model”

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CIO As BrokerNew Ways of Thinking and Being

• Consider the example of an Organisation which uses Service Now in a SAS mode.– What is the Role of the Business Process Owner?– What is the CIO organisation role here?– What are the Integration Requirements?– What are the Orchestration Requirements?– Who is the Service owner?

• Can a complete ERP like SAP be provided in the SAS Mode?– CIO Organisations which are keen on releasing themselves from

Operational responsibilities of Service Ownership need to establish new relationship paradigms with Enterprise Service Providers.

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By the Way Its Already Available

NEW OPPORTUNITIES - NEXT GENERATION, ESP ORGANISATION IT OPERATING MODEL

What will be Likely Operating Model for the Next Generation Enterprise Service Provider (ESP) who will play the role of Service owner or Component Service Provider

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ESPO as Service Owner / Component Service Provider – Release CIO for Strategic Work

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Legacy IT Operating Model

Next Generation Operating Model

Next Generation IT Enterprise Service

Provider Organisation as Service Owner

(Integrator)

In order to fulfill its changed strategic responsibilities the CIO organisation needs to be

less operational and more strategic or become a broker

3rd Party Component Service Provider

Organisations

IT4ITTM RA – Why, What, Who, When, How

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Multi-Sourcing Requires Function Design at Each Layer

IT Functions and Actors in Multi-Sourced Service Delivery Model require appropriate RACI

Missing Link, A value Chain for Technical Function Architecture

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Operate the Service and provide Support

Identify what is known and what is missing

Operate Systematic CSI programs, Implement, Validate, Publish Results and Reward

Establish the Technical function and Operational Management

Proactively Monitor operations and innovate improvement opportunities

FlexMode – Service Provider Function Value Chain© for Establishing Innovation Eco System

What will be the New Multi-Sourced Technical Function RACI

19Scope of Control of Next Generation ESP – R2D and D2C (DevOps would include R2D)

RACI for each IT4IT Function Component could be Fully Owned, Repeated, Shared Partially between CIO-Broker, ESPO – SO, ESPO – CSP

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WHAT ARE THE REQUIRED CHANGES IN PEOPLE MINDSET AND WAYS OF WORKING?

Establishing a Customisation Studio mindset required an Innovation Eco-System to be in place

By adopting the Next Generation IT Operating Model; Businesses expects IT to transform from a Repair Shop to a Customisation Studio and become a strategic asset. People are the key to the success of this. This requires a shift in mindsets; it requires the establishment of an Innovation Eco-System

Change Challenge – Customisation

Studios need an Innovation Eco-

system

Conflicting demands = low degree of integration• Figure 1: Management focus on the demands of the

organizations only and do not pay sufficient attention to the needs of individuals and their careers.

• In such a situation employees will perform at the minimum acceptable level.

• Figure 2: To achieve complete congruency is unrealistic. Yet, a rational analysis of the situation often results in creative solutions to seemingly unsolvable problems.

• Integration should not be achieved through power struggles between the organization and the individual, nor even among individuals.

• An Innovation Eco-System increases alignment and results in people stretching themselves to deliver value

International Handbook on Management by Objectives © Heinz Weihrich 21

How the industry is reducing integration instead of improving it

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Performance Assessment Using the Bell Curve • Why have Google, Cisco, Infosys,

Capgemini etc., thrown it out of the window?

• Why is there always dissatisfaction amongst members and managers at the end of an appraisal and reward fixing cycle?

• What kind of trust can members have in an organisation where performance and reward are not always tightly coupled.

• Direct impact on Members – Do only Minimum required.

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THE DELIVERED SOLUTION

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Need of the hour – a new paradigm

FCM & PCM services designed to improve alignment required for establishing Innovation Eco System

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Higher the degree of integration moves individuals from doing ‘Minimum Required’ (Mechanic Shop Mentality) to ‘Innovating Value’ for customer, organisation and self (Customisation Studio mentality)

Function Capability Management Services (FCM)

People Career Management Services

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HOW PEOPLE CAREER MANAGEMENT (PCM) SERVICES ADDRESSES INDIVIDUAL NEEDS

Career Stages and Needs – A lifetime perspectiveBased on SFIA – Responsibility and Skill Levels

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RetirementSelf Actualisation

Age 60

Architect / Consult / Coach / Teach / Mentor

Safety, Security, Physiological

Exploration

Age 20

Follower

0 – 2 Years

EstablishmentSafety, Security

Age 25

Assist

Apply

Enable

2 – 4 Years

AdvancementAchievement, Esteem, Autonomy

Age 30

Ensure

Advice

4 – 10 Years MaintenanceEsteem, Actualisation

Age 45

Initiate

Set Strategy

Inspire

Mobilise

10 – 40 Years

Life - Career Pathway

Information Age Skill & Career Focus OptionsBased on SFIA – Skill Categories

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Strategy and architecture• Information strategy• Advice and guidance• Business strategy and

planning• Technical strategy and

planning

Change and transformation• Business change

implementation• Business change

management

Development and implementation• Systems development• User experience• Installation and integration

Delivery and operation• Service design• Service transition• Service operation

Skills and quality• Skill management• People

management• Quality and

conformance

Relationships and engagement• Stakeholder management• Sales and marketing

Using SFIA to establish a Career Position and Capability Growth Ladder (Horizontal)

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IT Skill Levels Growth Level

4 Attributes of an Individual Capability Growth Based on SFIA – Level Attributes

‘5y34n

Technical Function Positions

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TF Growth Path

Flex

Mod

e Fu

nctio

n Ca

pabi

lity

Arch

itect

ure

1 positionI Position

3 Positions

7 Positions

Technical Function Positions

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Technical Function L1-4

The Career Growth Ladder (regardless of Customer / domain / technology)

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HOW FCM MEETS ORGANISATIONAL DEMANDS

The FlexMode Function Capability Architecture – Meeting Organisational Demands for establishing an Innovation Eco System and establish a Customisation Studio Operating Model

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Normative Standard is not Prescriptive on Function capability Architecture

Functional Component from IT Value Chain

Capability Component from FlexMode Technical Function Value Chain

FlexModeTM Service Provider Technical Function Value Stream Capability Architecture ©

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Capability required to deliver valueValue Streams

Capability required to deliver valueCapability required to deliver value

Customisation Studio Value Stream

Capability required to deliver valueMechanic Shop Value

Stream

Customisation Studio Value Stream

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PUTTING IT TOGETHER - RECOMMENDED FUNCTION ROLE PROFILE LATTICE AND SUB-PROCESS ROLES

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FlexMode Recommended Role Profile Lattice – Integrates 3 Core ABB

Horizontal Rows Identify Positions in the SPO

Function Architecture – Technical Function is SFIA

Level 1 - 4

Vertical Columns Identify the

Function Value Stream Capability

Requirements

Sub-Process Roles drawn

from IT4IT fortified w

ith CSI com

ponents from

FlexMode

Who are you? Find your position in the Recommended Function Role Profile

Your Position

Your SPR

Your SPRYour SPRYour SPR

Your SPR

Your SPRYour SPRYour SPR

Your SPR

Quali

ficati

on &

Certi

ficati

on

Proc

ess

Know

ledgeBehaviour

Skills

Service

Technology

Knowledge

Service Product Knowledge

Anatomy of a Sub-Process Role?

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FlexMode SPRDomain Knowledge

Professional Skill (SFIA)

Capability

Components for

managing an IT4IT or

FlexMode Function

Component life-Cycle

Stage

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A VIEW OF THE DELIVERABLES

The Architecture Team delivered the following.• Selected Documents for iterative application of TOGAF ADM• Archimate illustrations and views of Business Architecture, Data Architecture, Application Architecture. (Existing Infrastructure

Architecture was deployed)• Architecture Validation Model with library content for various Capability Parameters• Detailed Application Requirements• Staged Capability Increment Road Map and Prototype Roll Out Plan• Train the trainer Programs for Function Capability Management delivered to Prototype Team Managers• Train the trainer Programs for People Career Management delivered to Prototype Team Members• Library Content Validation, including validation of Task Descriptions and applicability in the Application Management Service Area• Validation and Scaling Plans

Target Architecture Delivered

41Click to View Architecture Validation Model

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OUTCOME - CREATING VALUES FOR CUSTOMER, BUSINESS AND SELF

Knowing yourself, is the first step in a Career Journey…

Knowing what you want and how to get there systematically is the capability Phoenix provides members

Proto Roll Out – Low Hanging Fruit Gathering• Establish a Baseline Capability for Prioritized Function Value Streams, take

systematic action to demonstrate improvement of Capability by operating the FCM and MCM Services.

– Members Understand the activities in the Job Description, area able to accurately assess their Capability for assuming the RASCI responsibilities documented in the activities list of prioritized Value Stream SPR.

– Members and their Managers are able to identify L&D plans to ensure that required capabilities are developed, where they are already in existence, provide opportunities for evidencing the capability

– Demonstrate Outcomes through the Identification of Improvement Opportunities.

• Identify and Record actionable and valuable Improvement opportunities with special focus on Automation opportunities for Self-Help, Diagnosis, Remediation, Health Check, Process Improvement

• Propose Innovative solutions for improving Business Results or eliminating waste in a Business Process

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Click To See Proto

Result Fresher

Click To See Proto

Result SME

Paradigm Shift in Performance driven by the Innovation Eco-System

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FlexMode – Transparent Continual Assessment Individual performance in BAU and Improvement actions evaluated continuously through delivery quality assessment and meeting targetsEvery action and contribution is evaluated and performance scores (stars) are assigned at the time of delivery objectively.All contributions are objectively tracked and records maintained for transparency, these include IOR lifecycle activities including mentoringNo normalization process, evaluation is rated and delivery ranking is visible to all members including the records of Contribution.Results are visible to members in real time and provides impetus to contribute and improve delivered value.

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Open House