Architecture for the Sustainable Enterprise
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1 for the Sustainable Enterprise Michael Rosen Chief Scientist Wilton Consulting Group Michael Rosen 2008 Slide 1
2 Mike Rosen Consultant IT and Strategy Chief Enterprise Architect for service- and component-based systems Finance, Insurance, Telecom SOA, EA and MDA implementation, strategy and training 25+ years experience in distributed systems, software and architecture Cutter Consortium Director of Enterprise SOA Institute Editorial Director Author Cutter Consortium for the Sustainable Enterprise 10 Things and Architect Does to Add Value EA by Example Designing Service Oriented Applications EA It s not Just for IT Anymore Agile Methods and Enterprise Enterprise Roll-out and Training Books SOA Applied: and Design Strategies, 2008, Wiley Developing e-business Systems and : A Manager s Guide, 2000, Morgan-Kaufman Integrating CORBA and COM Applications, 1998, Wiley Michael Rosen 2009 Slide 2
3 Agenda What is Sustainable? What does it mean to the Enterprise? How does Enterprise Help? Example: Paper Reduction Conclusion Michael Rosen 2009 Slide 3
4 What is Sustainability? SAM Sustainability Model An enterprise is deemed sustainable if its products, services, policies, and assets are balanced across three dimensions: 1. Economic viability 2. Environmental responsibility 3. Social equitability Michael Rosen 2009 Slide 4
5 What Does it Mean to the Enterprise? Enterprise Concerns: Why are we doing it? What are the implications at an enterprise level? What additional benefits/opportunities are possible? What exactly do we need to do? What does it mean for our organization? How do we make it happen? How do we get there from where we are now? How do we know if it s working? Sustainability Concerns: Need for common semantics Need for compliance, metrics, reporting Complex, multi-dimensional problem Crosses business and organizational boundaries Sounds like a problem for Enterprise Business Information Application Technical Operational Enterprise Performan nce Michael Rosen 2009 Slide 5
6 Enterprise Concerns Why are we doing it? Cost reductions Regulations Incentives Efficiencyi Community Stewardship Reputation Enterprise Context Sustainability does not exist in isolation. You must understand how it fits into an overall enterprise perspective. What Do We Need to Do? What processes will be changed or introduced? Exactly what systems and applications will change or be acquired and how? What standards need to be applied, adapted, governed? What are the reporting and compliance implications? What technology will need to change or be acquired? What new policies will need to be put in place? What are the priorities? What are the dependencies? Michael Rosen 2009 Slide 6
7 More Questions Organization How will we manage and motivate organizational change? Remember - different parts of the organization will be interested at different levels and in different aspects of sustainability. Is it working? How do we measure progress? What metrics should we use? What standards, metrics, or recommended methods of monitoring are available? What processes and systems will we need to collect the metrics? How do we report the results to leadership? Michael Rosen 2009 Slide 7
8 How do we get there? Understand the current as-is state Describe the to-be vision Perform a gap analysis Prioritize the activities Understand the dependencies Account for resourcesrces Identify intermediate milestones Develop a roadmap Tie initiatives to business drivers Identify the projects, processes, systems, and technology implications Michael Rosen 2009 Slide 8
9 Example: Paper Reduction Financial Services Organization Wants to reduce the consumption of paper: Environmental consciousness Cost reduction Less paper Less ink Less storage Less waste Efficiency improvements Reputation Michael Rosen 2009 Slide 9
10 Business Motivation Model Snippet <<Mission>> Sustainable Enterprise operationalize <<Vision>> Environmentally, Socially, and Fiscally Responsible plan amplify <<Strategy>> Modernize Processes to reduce resources implement support <<Goal>> Reduce resource consumption and waste handling quantify <<Business Service>> AcctStatement t t <<realize>> <<Tactic>> Implement on-line account statements achieve <<Objective>> Reduce Paper usage 25% by 2012 <<Policy>> enforce Incent customers to adopt on-line account information. specify <<Rule>> One time rebate per account for signing Michael Rosen 2009 Slide 10
11 Tactics Duplex printing Electronic Account Statements Cleaning mailing lists Electronic Billing Reducing gpaper p weight and purchasing specific paper Improving internal processes Implementing an Internal Intranet Putting forms on-line Reducing internal report distribution Michael Rosen 2009 Slide 11
12 Enterprise Context Implications Internal communications (B2E Portal) Information repositories and document management systems may be shared across organizations. On-line expense reporting and purchase ordering have to be integrated with ERP and other systems. External communications (B2C Portal) Increase customer satisfaction, improve cross-selling, and provide self-service capabilities to reduce call center demand. Common customer view and common product catalog created and. integrated with the marketing and other e-commerce applications. Allowing customers to opt out of paper processes provides an opportunity to optimize mailing lists. Data Center New systems coordinated with server and storage virtualization. Michael Rosen 2009 Slide 12
13 Conceptual Target CRM System Customer Call Center Call Center Performance Dashboard Reporting / Analysis DW Sustainability Reporting Compliance Problem Tracking Internal (B2E) Portal ERP System Internal Portal HR Communications Purchase Request Company Reports Expenses Paper Tracking Print Services Forms Document Management Products Billing Statements Mailing List e-commerce Portal Opt-out Marketing Sales Tracking Prom motions B2C E-commerce Internal System Infrastructure Portal BPM / Workflow Print Services App Server Web Server External Users Michael Rosen 2009 Slide 13
14 Infrastructure Multi-track Approach Internal Start with non-critical areas, prove approach and capabilities, expand to customer facing Internal communications, HR, forms, reports, etc. Internal processes expenses, purchasing, etc, Compliance, Incentives ecommerce estatements ebilling Marketing and Cross Sell CRM System Performance Dashboard Internal (B2E) Portal Reporting / Analysis Internal Portal DW Sustainability Reporting Compliance Paper Tracking Print Services Customer Billing Statements Call Center Problem Tracking e-commerce Portal Call Center B2C E-commerce Infrastructure Managed Print Services Tracking, Monitoring Data Warehouse, BI, Reporting Document Management Michael Rosen 2009 Slide 14 ERP System Internal System HR Communications Purchase Request Company Reports Expenses Forms Document Management Products Mailing List Opt-out Marketing Sales Tracking Portal BPM / Workflow Print Services App Server Web Server Promotions External Users
15 Paper Reduction Roadmap Cost Efficiency Stewardship Business Drivers Power Consumption BPI Internal ecommerce Information Infrastructure Outcomes Business Process Improvement Stewardship Internal B2E Portal Tracking / Compliance estatement Duplex Data Warehouse Virtualization ecommerce Dashboard ebilling Servers Expenses Master Data, Documents Optimization Marketing Business Intelligence Business Applicatio on Info Technology Sustainable Enterprise Reduced Paper Consumption Improved Customer Relationships Consistent Information Reduced Power Consumption Michael Rosen 2009 Slide 15
16 Roadmap Detail Business Process Improvement Internal E-Commerce Information Michael Rosen 2009 Slide 16
17 Results from Paper Reduction Programs Bank of America Online-only telephone directory eliminated 100 tons annually Online expense reimbursement service saved 235,000 sheets Forms Reduction Project reduced paper consumption by 565 tons Eliminating unneeded internal reports saved 9 million sheets ATT Environmental Health & Safety Newsletter - 1,800,000 sheets/year Training - 2,000,000/year Employee Services - 6,000,000/year Source: Michael Business Rosen 2009Guide to Paper Reduction, ForestEthics, 2002 Slide 17
18 ebilling at ATT Personal Accounts Average sheets of paper per bill: 4 Sheets of paper eliminated: ,700, ,400, ,300, ,360,000 Economic Benefits: Paper bill - $6.75 per bill/per cust. Electronic bill - $.03 per bill/per cust. Business Accounts Average sheets of paper per bill: 71 Sheets of paper eliminated: ,755,000 Economic Benefits: Paper bill - $17.00 per bill/per cust. Electronic bill - $.03 per bill/per cust. Environmental Benefits Environmental Benefits Trees Saved 4,595 Trees Saved - 1,994 Energy Saved - 106,000 gallons of oil Energy Saved - 46,000 gallons of oil Source: Michael Business Rosen 2009Guide to Paper Reduction, ForestEthics, 2002 Slide 18
19 Sustainable Sustainability Requirements Enterprise Requirements Sustainable Regulatory environment Business requirements Business Supply-chain & procurement Resource consumption Facilities management Waste disposal Information requirements Compliance and Reporting requirements Application requirements Program requirements Technical requirements Information Application Technical Performa ance Power consumption Operational requirements Operational Michael Rosen 2009 Slide 19
20 Summary Sustainability is complex, multi-dimensional, and crosses organizational boundaries Efforts involve operations, technology, applications, information, business processes, policies and governance We must align efforts with business value and motivation and use common terminology and standards for measurement and reporting An architectural approach applies well known techniques to a new class of problem Supported by SAM standardization Michael Rosen 2009 Slide 20
21 Executive Report Free Cutter Executive Report available for download. com/offer s/sustainable.html Michael Rosen 2009 Slide 21
22 Thank You! Every complex problem has a solution that t is clear, simple and wrong H.L. Mencken, 1949 Michael Rosen 2009 Slide 22
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