Enterprise Architecture:

Charting the Journey to Business Value

Nigel Green

CLP Power Hong Kong Ltd.

A Short Intro..

Head of Group Technology and Architecture CLP Power HK Ltd. Since Feb. 2012

Over 15 years in Enterprise Architecture

6 years with DHL International in Hong Kong

5 years with Capgemini UK EA consulting

..now on with the show!

..today’s world is complicated!

A simple statement…

Exponential Globalisation

Collaborative innovation

Social Network leverage

Ever-growing Technology

Options

Connected everything

Faster World Economy Change

New Business Models

The Cloud

The Internet of Things

Mashed-up Business

JIT demand chain

Consumer-led IT

Ubiquitous Mobility

W

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1.0

W

e

b

2.0

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increased speed of change fuels CoMpLeXitY

What’s behind this complexity?

http://www.flickr.com/photos/foxtongue/212050251/

… barriers to business change & innovation.

Unwanted complexity creates…

http://www.flickr.com/photos/hisgett/220279395/

http://www.flickr.com/photos/foxtongue/212050251/

Enterprise Architect

The Executive Board

Enterprise Architecture Brings Order

to a Chaotic World

The Enterprise Architect helps organise and navigate

business-behavior towards its Vision & Strategy

help make the business change journey better, faster & cheaper

by ensuring that

unnecessary complexity is avoided and

barriers-to-change identified and dealt with.

The EA Mission:

Enterprise Architecture's Roots Are Mostly In IT

Solving IT-related Problems

Complexity and Cost

caused by proliferation of diverse technologies, databases and applications

Projects taking too long and costing too much

Information systems not doing what was expected

Exploiting IT-enabled Opportunities

Faster, more effective

decision-making and change

Exploitation of information

Use of new technology

Keeping up with new trends (e.g. The Cloud & Mobility)

IT is still a large part of the Enterprise Architecture, however…

“An enterprise has an architecture, even

if it doesn’t have electricity”

(Colm Butler, IT Architecture Practitioners conference 2005)

Businesses are eco-systems of people, processes and

technology that demonstrate a behavior (some good, some

bad) with or without an Architectural Blueprint.

“Does my business need Enterprise Architecture?”

The question is

“Will my business benefit from making the

Enterprise Architecture explicit?”

The question isn’t…

A city has implicit

context

& behaviours

… knowing how to navigate it adds value!

Businesses are like cities of

people,

processes

& technologies.

Enterprise

Architecture

is similar to

City Planning

The Enterprise Architect helps organise and navigate Enterprise behaviour and

align with desired business outcomes

Planning & navigating The City

How to know which to use when? Luckily help is at hand…

Enterprise Architects use a variety of

Maps & Navigation tools

The Zachman Content Framework:

A Way to focus on different aspects of EA

This helps us understand what we’re mapping, what’s not been mapped and

one view connects to another.

BUSINESS

VIEWS

TECHNOLOGY

VIEWS

PROCESS

VIEWS

INFORMATION

VIEWS

DELIVERY

VIEWS

TOGAF ADM:

A Step-By Step Process for doing EA

Step

Step

Step

Step

Step

Step

Step

This helps us understand the sequence of work and measure where we are

in the EA journey.

EA Frameworks (e.g. Zachman & TOGAF)

recommend a ‘top-down’ sequence, starting with

Strategy & Vision…

…the reality is often something else….

Using a Zachman-Like Model…

WHAT HOW WHERE WHO WHEN WHY

OUTCOMES &

CONTENT

PROCESS &

PROCEDURE

LOCATION STAKEHOLDERS &

USERS

EVENTS &

TIMINGS

MISSION &

MOTIVATION

BUSINESS STRATEGY

BUSINESS OPERATING MODEL

BUSINESS PROCESSES & CAPABILITIES

BUSINESS INFORMATION & KNOWLEDGE BASE

DATA & SECURITY

APPLICATIONS

INTEGRATION

TECHNOLOGY INFRASTUCTURE

IT SERVICE DELIVERY

Mapping the Enterprise Architecture Middle-Out

EA often starts in the middle and is developed up, down and across the enterprise.

How does the Enterprise Architect do Middle-Out?

Creates high level AS-IS and TO-BE Blueprints of the Applications, Data,

Integration and Technology domains. Develops high-level Transition Roadmaps.

Focuses on documenting & rationalising the applications portfolio

Focuses on the Information Exchanges between applications and starts to build

a business-wide Glossary of Terms

Seeks opportunities for common services (typically in Apps Integration)

Ties new software buy/build to EA principles (traceability back to business value)

Acts as Design Authority for development to make sure the ‘big picture’ is kept in

mind

Ensure change programmes focus on the People, Process and Technology

dimensions

Assess vendor products against EA blueprints

Engage with the business to promote the value of EA by working with them to

develop:

Business Capability Model (aka Services Model)

Business Process Models

Business information Models

The the early stages of establishing EA are focused on getting the IT House-In-Order (making it

‘Auditable’) and establishing credibility with the business … and making the CIO happy!

How to make Enterprise Architecture business

relevant

The Enterprise Architecture of your business Is

not the same as another…

It differs between businesses

(the “Enduring Business Purpose” of the business)…

…AND the focus of EA will change over time.

The perceived value of EA will depend on the Stakeholders’

current objectives & drivers. These create a changing

‘Centre-of-Gravity’

Cost

Reduction

& Divestment

IT-led

Innovation

Growth by

Acquisition

Customer First

The Journey from Business Values to …

Enterprise Architecture

EA Principles Enterprise Architecture

Primary

Motivators

Examine..

Knowledge of your business TRUMPS

framework & methodology expertise!

EA methodologies & frameworks are very useful,

but great Enterprise Architects focus on knowledge of the

business first.

We do Anthropology before Architecture!

A recap

EA is about removing unwanted complexity to deliver tangible

business value

EA focus varies between organisations.

The focus of EA changes over time, depending on the current

business Centre-of-Gravity.

EA often starts with an IT focus but great EA’s focus on the whole

business

Successful EA starts with business anthropology not methodology

Great EA’s are complexity Navigators

EA at CLP Power Hong Kong Ltd.

Regulatory

Compliance

Service

Excellence

Emissions

Targets

Shareholder

Value

Business Centre of Gravity – Historical Focus

Enduring Purpose: Generate, Distribute and Sell Electrical Power to Customers in Hong Kong

Cost

Reduction

Tariff

Challenges

Potential

Changes to

Regulatory

Framework

Emissions

Targets

Cyber

Security

Smart

Grid

Business Centre of Gravity – Current Focus

Shareholder

Value

Translates to the focus for EA at CLP:

1. Flexibility & Agility

Responsive to changing business needs for Mobility, Productivity and Process Change

Focus on simplicity

2. IT Total Cost of Ownership

Improved mix of Invested Asset & Pay-per-Use

Doing more with less

3. Security & Protection

Protect business information & operation

Guard against Cyber Threats

4. Leveraged Information Assets

Advanced Analytics – Customers and Processes

Information Variety, Volume and Velocity

And a set of principles …

EA Principles founded on:

• Simplification

• Integration

• Security

• Agility

• Visibility

• User Empowerment

• Cost Effectiveness

Our Cloud Strategy is an example of our principles applied….

Cloud Strategy

The business context

31 2010Q2 v1.0

The Fixed to Variable Cost Transition Strategy

Long-Term Medium-Term 2012

Fixed

Variable

BUYING ‘PAY-PER-USE’ SERVICES

OWNING FEWER ASSETS

Public Cloud

Group IT

Services

Management

CLP Virtual Private

Cloud

CLP Traditional

Core Applications

& Operations

CLP Protected

Cloud Services

CLP Approved

Public Cloud Services

CLP Cloud Strategy – A Blend of Flexibility and Protection

Flexibility & Choice

Protected Operation

Public Cloud

Group IT

Services

Management

CLP Virtual Private

Cloud

CLP Traditional

Core Applications

& Operations

CLP Protected

Cloud Services

CLP Approved

Public Cloud Services

CLP Cloud Strategy – A Blend of Flexibility and Protection

Flexibility & Choice

Protected Operation

Smart

Grid

Cyber

Security

Cost

Reduction

Tariff

Challenges

Potential

Changes to

Regulatory

Framework

Business Value of the CLP Cloud Strategy

1. Open – CLP-non-standard technologies supported including ‘Open Standards’ solutions.

2. Secure - sensitive data is either held within CLP or within Hong Kong. All services are tested and approved by Group IT.

3. Responsive & Elastic- use services as-and-when they’re needed.

4. Cost Effective - Services are offered on a Pay-Per-Use or Leveraged-Asset basis.

5. Future-Proofed – Aligned with global trend towards Pay-Per-Use IT ‘Services’ and underpinning technical standards

What does it take to succeed with

EA?

Design and

manage

models of the

Enterprise and

its IT

Rationalise & improve

business processes

Tackle “Wicked” cross-organisational problems

• Develop reference

models and apply design

patterns

Govern the architecture

of IT solutions

• Identify

• cross-organisational

synergies

Explore new ideas

• Rationalise application landscapes

• Select hardware and plan

Technical Infrastructure

What do Enterprise Architects Do?

• Map-out & join-up

business change

programmes

Develop and maintain EA Principles

• Curate Enterprise Knowledge

• & Semantics

There appears to be a demand for Enterprise Architecture but...

Businesses that do EA well..

See EA as a way to organise

People, Process and Technology

for faster ‘time-to-value’

Business that don’t..

The success of Enterprise Architecture is highly dependant on the soft skills

of the Enterprise Architect and the support they obtain.

See EA as an expensive IT ‘Ivory Tower’ that

draws lots of pictures, slows progress…

… & adds little value.

The Chairman of a UK Logistics business

believes that their “enterprise architecture”

provides the most viable route to strategic

value.

Paradoxically, the CIO never discusses

Enterprise Architecture with him.

The Lessons Learnt

1. Focus on Business Outcomes (Not EA Output!)

2. Bring Stakeholders with you - laser focus on Value to them

3. Be pragmatic – don’t sweat the small stuff!

4. Speak the language of the Business and translate Technology opportunities and challenges

5. Remind yourself that EA is just the way we architects see the world – avoid “religious conversion”!

Tailor to your business situation –

Anthropology and Archaeology before Architecture!

Thanks for listening

nigel.green@clp.com.hk

A case study – (if we have time!)

• Integrating Web Oriented Architecture & Agile/Lean Development with Traditional IT to deliver strategic business value

Business Profile

Privately owned Logistics business within a group that

includes on-line retail and media business.

On-line retail focused national parcel delivery service, Sees

information-based services as a future market differentiator.

Circa 20% UK’s parcel delivery market

Franchised operational model for ‘Last Mile’

High degree of information sharing and process integration

with ‘household name’ Customers

25 million business events per day by 2013

The Business Centre-of-Gravity

Current Centre-of-Gravity: integrate & transform business

operations through information systems to drive up market

capitalisation ten-fold within 3 years

IT Organisations high-level motivators:

Protect current operation

Professionalise IT services

Innovate by asking ‘What Would The Web Do?’

The main focus for EA has been to understand the implications of the

question ‘What Would The Web Do?’ in the context of the the current

Centre-of-Gravity of the business.

What Would The Web Do? – Their answers…

• Know how to leverage the Web

• Start small and grow incrementally – avoid ‘big company’ bureaucracy

• Bear user adoption in mind from the start – maintain an inclusive

mentality

• Build communities of early adopters – both to build & use product

• Invite feedback and build upon good ideas

• Create small, talented teams that aren’t afraid to experiment and are

allowed to ‘Fail’

• Prove ideas early & help business communities see the potential

• Provide simple, targeted & useful information and software components

that are easy-to-adopt

• Exploit Open Source Technologies & ‘Cloud’ Services

EA Mission: Create an architectural model that allows for emergence, rapid

innovation and safe-fail …. and at the same time, protect core operational

processes and systems…

A Blended Enterprise Architecture

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A conceptual model that shows how they will strike a balance between rapid

innovation apps and core ‘engine’ systems

Cloud Creation

& Leverage

Optimised

Internal

IT Portfolio

Simplified,

Event-based Messaging

Protective ‘membrane’

between the two worlds

Highly Adaptive &

Emergent,

Innovation Apps

Rigorous, ‘expert’ systems.

IT Enterprise Architecture focus Areas

MASTER DATA

SERVICES

INTEGRATION

SERVICES

BUSINESS EVENT

SERVICES

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INNOVATIVE &

AGILE APPS

CORE TRANSACTION

APPS

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SUB

IT ‘Middle-Out’ EA focus: Clear method for determining which SDLC type to use (i.e.

Lean/Traditional). Rigorous definition of integration, master data and event services.

EA for Traditional SDLC vs. Lean

EA Aspect Traditional (Robust) Lean (Adaptive)

EA Principles Strictly Adhered to (Tight Constraint) Strictly Adhered to (Light Constraint)

EA Governance Formal SDLC Gates. Initial design shaping but fewer but extended

operational Gates. Informal reviews.

SDLC Type Strong Transaction and Rules-based apps.

Integration and Master Data Management

Services. Business Intelligence. Mission Critical

systems where failure creates significant

disruption to business operations.

Customer-facing apps. 3rd Party interaction

apps. Disposable ‘Campaign’ apps. High

graphical content/user experience. Failure can

be managed and rapid innovation is

encouraged.

Standards, Models &

Architectural Style.

Formal Data Model, Process Model, Rule

Models. Detailed standards for all integration

patterns (i.e. EIP)

SOA/Strong-Transaction/Package-based

architecture.

Open/extendable schema based on Open

Standards and Patterns. Informal Process

Model. Pre-defined Meta-models for

persistence, messaging and Master Data.

WOA/RESTful/Cloud Services architecture.

Development Tools &

run-time environment

Right tool for the solution assessed with

developer/provider within license cost

parameters. Constrained device options.

Pre-selected Web-based Open Source tools

(e.g. Rails, NoSQL DBs etc.). Device

independent.

Solution Fit/ and Time-

to-Value

Right-first-Time. Formal acceptance and

release to production. Few release cycles.

Adaptive & emergent based on user feedback.

Rapid code release – long liife Beta cycles.

Provision for experimentation & Safe-Fail.

Data Integrity Profile Systems of Record

Systems of Capture

Systems of Reference

Systems of Capture

Systems of Reference