creative commons sustainable it architecture value of is intangile assets february 2012 1...
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Cre
ativ
e C
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Sustainable IT Architecture
Value of IS IntangileAssets
February 2012
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Sustainable IT Architecture
www.sustainableitarchitecture.com
Value of IS Intangible AssetsIntrinsic value of Data, Rules and Processes
By Pierre Bonnet - February, 2012Creative Commons
www.sustainableitarchitecture.com
Slides deskSustainable IT Architecture
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Agenda
Set the sceneDefinition & key concepts
How to measure?A framework to assess IS Assets
Uses Cases
Use on the cloudA tool to implement the framework
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Speaker
• Manager Vietnamesse operations
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1. Set the scene
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IS Assets in the accounting landscape
Tangible assetsphysical existence
------machines
toolsreal estates
cashhardware
../..
Intangible assetsno physical existence
------brands
Intellectual propertiespatents
knowledge – working proceduresHR - Organizations
Customer relationships - PartnersSoftware (ERP, Legacy, SOA…)
Information System
Ref/Master DataBusiness RulesProcesses
IS Assets
Assets
Accounting,Chart of accounts
Innovative accounting approaches like IAS/IFRS and assets classifications such as Edvinsson & Malone, ARC IC reporting, The Danish Guidelines, Meritum, IC-
Rating, Wissensbilanz, the METI model, the IC-dVAL method, etc.
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IS Value based on three facets
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Academic example
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Innovative holistic point of view
Intrinsic Value
Use Value
Business Value
Analysis
Bad Bad Bad Worst situation => no real value within such a company
Good Bad Bad
Strange situation => where IS assets are good even though bad working procedures are used (use value). By the way, as the business value is bad either IS assets should be sold to another company, either the company should change its strategic business commitments
Good Good BadStrange situation => where IS assets and working procedures are good whereas business value is not important. This is a similar situation with the previous one
Good Bad Good
Strange situation => where IS assets are good even though bad working procedures are used (use value). Fortunately, the business value is good. The question raised should be: can these bad working procedures damage IS assets over time?
Bad Good GoodSuspect situation => because good outcomes in use value and business value hide a deeper weakness in IS assets (intrinsic value). This good situation in use and business values is unsustainable as the IS assets still remain bad
Bad Bad GoodStrange situation => where business value seems good even though bad working procedures are used (use value) and IS assets are weak (intrinsic value)
Bad Good Bad
Trap situation => where working procedures (use value) are good but IS assets (intrinsic value) and business value still remain bad. In reality, this company has a poor value and the bad quality of its IS assets will generate serious problems soon
Good Good Good Ideal situation => where all values are aligned
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IS Quality Indicators
Transparency
Au
dit
abili
ty
Agility
Masterin
gIT
Co
mp
lexitySecurity
sturdiness
Performance
Reversibility
Etc.
Reliability
Fault tolerance
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Applied to TOGAF ADM
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Applied toZachman
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2. How to measure?
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3 domains of assessment
• How data, rules and processes are documented?• What are the modeling procedures used?
Knowledge management
“You own a data model… but is it a low-level description or a semantic model?”
Quick illustrations
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3 domains of assessment
• How data, rules and processes are documented?• What are the modeling procedures used?
Knowledge management
• What are governance features available to usersto manage their IS Assets (data, rules, processes)?
Governance features
This part doesn’t deal with the quality of the organization but the quality of the governance features like: version management, permission management, authoring, etc.
“Do you manage you ref/master data with spreadsheets or with a more robust
solution bringing real governance features?”
Quick illustrations
“You own a data model… but is it a low-level description or a semantic model?”
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3 domains of assessment
• How data, rules and processes are documented?• What are the modeling procedures used?
Knowledge management
• What are governance features available to usersto manage their IS Assets (data, rules, processes)?
Governance features
This part doesn’t deal with the quality of the organization but the quality of the governance features like: version management, permission management, authoring, etc.
• How data, rules and processes are implemented? Are they based on MDM, BRMS and BPM?
IT management
“Do you manage you ref/master data with spreadsheets or with a more robust
solution bringing real governance features?”
“Are your IS Assets hard-coded or managed through business repositories
such as MDM, BRMS and BPM?”
Quick illustrations
“You own a data model… but is it a low-level description or a semantic model?”
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3 domains x 3 types of IS Assets
• This is the IS “Rating Tool matrix”
• It provides nine points of assessments
• Every case of this matrix holds a set of questions to conduct the rating
• Enterprise Architecture is employed at the level of the knowledge management• MDM, BRMS and BPM tools are employed at the level of the IT infrastructure
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Set of questions for every case
• About 100 questions to cover the whole matrix
• Each answer is ranked with help from 5 levels
• low• basic• medium• advanced• optimized
• Therefore about 500 points of measure
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Examples
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Examples
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List of questions applied to Data
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List of questions applied to Rules
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List of questions applied to Processes
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A: >=90% B: >=50% and <90% C: >=10% and <50% D: <10%
Letter #1 Letter #2 Letter #3
At the highest level of the consolidation
• Each letter gives a consolidated rank (performance level) for Data, Business Rules and Processes
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3. Uses cases
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B C C-
C- C- C
C- C- B
Data Rules Process
Kn
ow
led
ge
Man
agem
ent
Go
vern
ance
Fu
nct
ion
ITIn
teg
rati
on
Legacy rating
A A A
A C- C
A C- B
Data Rules Process
Target rating
Risk analysisapplied to the
transformation
Kn
ow
led
ge
Man
agem
ent
Go
vern
ance
Fu
nct
ion
ITIn
teg
rati
on
Use case
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Use case
D
B
C
A
Legacy
Milestones
Target
High risk
Medium risk
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Use case
Scenario 1
C
B-
A-
B
Legacy(2 systems)
B
A
Target
A
Scenario 2
Scenario 1
Scenario 2
Milestone 1 Milestone 2
High risk
Medium risk
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Use caseC
C
B
CA
B
B
C-
Legacy
Expected target
(V lifecycle)
A-
B
(V lifecycle)
Iteration 1
Iteration 2
Outcomes
Expected target
Outcomes
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Use case
C C B
D C C
D D D
C C B
D C C
D D D
Legacy Target
B C B
C C C
D C D
B C B
C C C
D C D
Règle 2
Règle 1-2
Règle 3
Règle 4
Rules 1
Rules 1-2
Rules 2
Rules 3
Rules 4
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4. Use on the cloud
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Use on the Cloud
IS RatingToolMDM
Rating by IS Assets
• Report on IS Assets values• Mastering operational risks• Required to enforce regulations compliance
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Use on the Cloud
Three domains of measure
Three types of IS Assets
Scale from Low to Optimized used to define situations of measure. Note the weight from 1 to 10
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Use on the Cloud
Question code and name Rating applied to existing system and targetDetail of how to rate
(see next)
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Use on the Cloud
Not to be updated when rating as this is the database knowledge stemming from
the IS Rating Tool----
This information is used to decide the rating depending on the situation of measure:
from low to optimized
Rating applied to existing system and to targeted one
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Use on the Cloud
In brackets:• (mark) applied to existing system• (mark) applied to targeted system
View by type of asset and category of
question
Click to see detailed assessment by question
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Dashboard
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Dashboard