Enterprise SOA Governance

Transcription

1 Enterprise SOA Janne J. Korhonen SOA SIG Spring Seminar, May 17, 2010

2 The Frequency and Amplitude of Change are Escalating Production Economy Distribution and Sales-Driven Economy Quality and Mass Marketing Economy Customer Service and Niche Marketing Economy Customers of One Economy

3 Complexity Integrity Effectiveness Service-Dominant Organismic Holistic Dynamic Emergence Coordination Post-Formal Dialectical Efficiency Goods-Dominant Mechanistic Reductionistic Static Planning Control Formal Logical

4 IT Traditional Definition IT governance is the responsibility of executives and the board of directors, and consists of the leadership, organisationalstructures and processes that ensure that the enterprise s IT sustains and extends the organisation s strategies and objectives. IT Institute; CobiT 4.1 (2007)

5 Basic CobiT Principle that are used by Requirements drive the investment in Enterprise Information CobiT IT Resources to deliver IT Processes that are used by Source: CobiT 4.1

6 CobiT Follows Top-Down Approach Enterprise Strategy Goals for IT IT Goals Enterprise Architecture for IT IT Scorecard Source: CobiT 4.1

7 CONFORMANCE

8 Is this enough?

9 Complexity Technology Value Creation Performance -IT Convergence Interactions Informated In the Cloud Integrity Effectiveness Information Technology Cost Containment Conformance -IT Alignment Transactions Automated On the Ground Efficiency

10 The Path to IT-Enabled Growth Highly Aligned Alignment Trap IT-Enabled Growth 11 % of respondents +13 % IT Spending -14 % 3-year Sales CAGR 7 % of respondents -6% IT Spending +35 % 3-year Sales CAGR Alignment Maintenance Zone Well-Oiled IT Less Aligned n = 504 Less Effective 74 % of respondents +0 % IT Spending -2 % 3-year Sales CAGR Effectiveness 8 % of respondents -15 % IT Spending +11 % 3-year Sales CAGR Highly Effective Source: Bain Analysis

11 Goal of IT : Reducing Costs and Improving the Bottom-Line Impact Higher cost All Too Common: Higher cost No change of impact Higher Growth: Higher cost Higher impact Cost Today s situation IT improvement zone Stable Cost: Same (current) cost Higher impact Sweet Spot: Lower cost Higher impact Lower cost Typically Undesirable: Lower cost Lower impact Reduced Cost: Lower cost Same (current) impact Adopted from Benson, Bugnitz & Walton (2004): From Strategy to IT Action Lower impact Impact Higher impact

12 Strategic Alignment Model Strategy IT Strategy External Distinctive competencies Scope Systemic competencies Technology Scope IT Strategic Fit Internal Processes Admin Infrastructure Skills Organizational infrastructure and processes Processes Functional Integration Architectures Skills IS infrastructure and processes Information Technology Source: Henderson & Venkatraman (1991)

13 1. Strategic Execution Strategy IT Strategy External Distinctive competencies Scope Systemic competencies Technology Scope IT Strategic Fit Internal Processes Admin Infrastructure Skills Processes Architectures Skills Organizational infrastructure and processes Functional Integration IS infrastructure and processes Information Technology

14 2. Technology Potential Strategy IT Strategy External Distinctive competencies Scope Systemic competencies Technology Scope IT Strategic Fit Internal Processes Admin Infrastructure Skills Processes Architectures Skills Organizational infrastructure and processes Functional Integration IS infrastructure and processes Information Technology

15 3. Competitive Potential Strategy IT Strategy External Distinctive competencies Scope Systemic competencies Technology Scope IT Strategic Fit Internal Processes Admin Infrastructure Skills Processes Architectures Skills Organizational infrastructure and processes Functional Integration IS infrastructure and processes Information Technology

16 4. Service Level Strategy IT Strategy External Distinctive competencies Scope Systemic competencies Technology Scope IT Strategic Fit Internal Processes Admin Infrastructure Skills Processes Architectures Skills Organizational infrastructure and processes Functional Integration IS infrastructure and processes Information Technology

17 Fundamental System Perspectives Black Box Functional Teleological Control-oriented Design irrelevant White Box Constructional Ontological Change-oriented Design essential

18 Performance

19 Enterprise : Equal Weight on Performance Corporate i.e. Conformance Enterprise i.e. Performance The set of responsibilities and practices exercised by the board and executive management with the goal of providing strategic direction, ensuring that objectives are achieved, ascertaining that risks are managed appropriately and verifying that the organisation s resources are used responsibly. Accountability Assurance Source: IFAC (2004) Value Creation Resource Utilisation Information Systems Audit and Control Foundation (2001)

20 Enterprise : My Definition Enterprise defines the requisite roles, accountabilities and policies to effectively design and operate an enterprise in continually shifting contexts. The word governancederives from the Greek verb κυβερνάω[kubernáo]: to steer

21 To Optimize the System, One Needs to Pareto-Optimize the Sub-Systems

22 Structure Follows Strategy Alfred Chandler

23 Requisite Organization as Metadesign VII-VIII V-VI III-IV I-II VI+ Executive Leadership Strategic organizational leadership: culture, values, vision; business portfolio Long-term sustainability Innovation, transformation Effectiveness Efficiency VIII VII VI Board Member, Super Corporation CEO Corporate CEO Corporate EVP IV V General Management models, products, services IV V General Manager Unit President I III Operations Day-to-day work, supervision, first-line management, departmental management III II I Unit Manager First-Line Manager; Specialist Supervisor; Operator

24 Domain Internal Event or Transaction VII VI V IV III II I Service Instance Client Interaction Service I II III IV V VI VII Invocation External IT Domain Korhonen, Hiekkanen & Heiskala (2010): Map to Service-Oriented and IT

25 Agile Model 1.1 Strategic Steering Strategic, external Enterprise Coordination Strategic Decision- Making Strategic, internal Domain Coordination Tactical Decision- Making Tactical Operations Planning & Support Operational Decision- Making Operational Real-Time Design, Planning and Support Development and Execution Adapted from Korhonen, Hiekkanen & Lähteenmäki (2009)

26 Benefits of SOA at Different Levels Strategy Processes modularity Agility Outsourcing Rapid service development Agile business processes Information Systems Composite applications Process automation Application Infrastructure Reusability Interoperability Technology Infrastructure Technology virtualization

27 Levels and Dimensions of Enterprise SOA Process Information Service IT/IS Value Network Industry Ontology Service Strategy IT Strategy End-to-end Enterprise Enterprise Processes Ontology Services Technology and Systems Portfolio Functional Processes Domain Ontology Procedural Services Technology Platforms, Enterprise Information Systems Workflows, Orchestrations Logical Data Model Declarative Services Application Infrastructure Process Activities Technical Data Model Infrastructure Services Technology Infrastructure

28 SOA Reference Model Funding and Budgeting Models Who governs What? Who owns what and how? What events trigger policy enforcement? SOA Who is responsible Strategy and for Goals enforcing what? Who provides services? Who consumes SOA services? Principles and Policies What behavior do we need? SOA Organization and Stakeholders How do we incentivize that Govern Whatand Why? behavior? What must be governed now? Processes What rewards, penalties and To what end? reinforcement mechanisms will SOA goals, principles, and policiesroles and Responsibilities work for us? What metrics are needed? Performance Mgt Behavior and Reinforcement Model Metrics and Process Performance Define/Enforce Policies by Tiers Enabling Technology & Implementation Source: Marks (2008)

29 Agile Model Applied to SOA Strategic Management Budgeting and funding Enterprise Architecture and Technology Alignment Compliance SOA Reference Architecture Services Reference Architecture SOA Platform Architecture Services Reference Model Design Patterns and Standards Runtime Standards Versioning/Naming Conventions Development Tools Registries and Repositories Policy Engines Distributed Policy Enforcement Planning, coordination, support Enterprise/ Strategic SOA SOA Operating Architecture Model SOA Services SOA Enabling Technologies SOA and Services Lifecycle SOA Projects / Operations SOA Opportunity Management Service Portfolio Management Service Promotion/Demotion Management Reviews Service Identification Modeling, Design Publishing Composition, Orchestration SOA Development QA/Testing Execution and monitoring Maintenance Implementation, operations, control

30