Enterprise Architecture

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1 Enterprise Architecture Mobiliar Lab, ETH Zürich Management Information Systems Autumn Semester 2013 Tuesday, 8-10am; HG E 3

2 Goal Providing a robust mental model for understanding role, challenges, opportunities and limitations of the Enterprise Architecture. Slide 2

3 Agenda 1. Introduction 2. What is Enterprise Architecture and what is the (business) value? 3. What are the design concepts and processes of EA? 4. Which problems did we solve? Slide 3

4 Top Trends paint a picture of a radically different future Base: enterprise architecture professionals Source: Global State Of Enterprise Architecture Online Survey, 2011 through 2013 Source: Forrester Research, Inc, Top Technology Trends To Watch: 2014 To by Brian Hopkins, November 4, 2013 Slide 4

5 Technology is allowing firms to keep up with the new pace of change and dominate their ecosystem Source: Forrester Research, Inc, Top Technology Trends To Watch: 2014 To by Brian Hopkins, November 4, 2013 Slide 5

6 IT in companies has beside the previous trends many challenges Business Requirements are higher Quantities are increasing Technology lifecycle is faster Application-landscape will be more complex Maximum return on investment in existing IT infrastructure Portability and interoperability of applications are necessary Security as a critical enterprise-wide issue Slide 6

7 Challenges of IT Business requirements on IT will be higher and higher IT-systems with good performance Example Mobiliar Stable, available IT-systems Scalable IT-systems Ease of use Manage lifecycle of technology and IT-systems Manage innovation (new functionality) Integrated IT-systems Consistent data management Support business model Secure IT-systems Slide 7

8 Challenges of IT Quantities are increasing Example Mobiliar Past 2002 Growth Current 2012 Growth (Prognose) Trend 2020 business applications % 166 interfaces workstations (Clients = Notebooks/PCs/Tablets) applikation-platforms (self-implemented, standard software) processing power mainframe in MIPS storage in Terabyte network-bandwidth in Mbps ~ % ~ % % % % % Slide 8

9 Challenges of IT IT has to manage the evolution Example Mobiliar Technological renovation Maintenance, Technological renovation Operational Excellence 2002? ? Support of business development Business Enabling Innovation Source: nach Murer et. al: Managed Evolution. Springer-Verlag Slide 9

10 Challenges of IT Lifecycle-costs are increasing Project costs in Mio. CHF 35 Example Mobiliar LP-Inv LP-CO LP-PT KLA-Inv KLA-CO KLA-PT PP-Inv PP-CO PP-PT LP daily business project KLA small project PP project portfolio project Inv Invest CO CashOut PT internal days Slide 10

11 Challenges of IT Existing application landscape is complex, limited in its flexibility and requires extensive maintenance Example Mobiliar 2012: 168 Business applications, 1500 interfaces Slide 11

12 Business and technical drivers influence the simplification of IT Example Mobiliar Business driver processes standardisation simplification Simplification of IT products consolidation simplification applications Technical driver Displacement, consolidation programing languages platforms technologies Slide 12

13 Position of IT to the business? Slide 13

14 IT-strategy derived from business strategy and IT is an important function in the company Example Mobiliar External system Economics Cultural Politics - Laws Ecologic Technology Enterprise objectives Enterprise strategy Business strategies Functional strategies Strategic business requirements IT-strategy and IT-standards PLAN Manage Enterprise Architecture BUILD Develop business further with new functionality RUN Provide an IT-operation Slide 14

15 Agenda 1. Introduction 2. What is Enterprise Architecture and what is the (business) value? 3. What are the design concepts and processes of EA? 4. Which problems did we solve? Slide 15

16 Definition (1) ISO/IEC 42010: Enterprise architecture (EA) is the "fundamental conception of a system [the enterprise] in its environment embodied in its elements, their relationships to each other and to its environment, and the principles guiding its design and evolution. TOGAF 9.1: Architecture is a formal description of a system, or a detailed plan of the system at component level, to guide its implementation. The structure of components, their inter-relationships, and the principles and guidelines governing their design and evolution over time. Source: TOGAF 9.1 Slide 16

17 Definition (2) Enterprise architecture is the process of translating business vision and strategy into effective enterprise change by creating, communicating and improving the key requirements, principles and models that describe the enterprise's future state and enable its evolution. And many other definitions of EA (http://wwwmatthes.in.tum.de/pages/b3ucy89rqu5d/definitions-of-enterprise-architecture-management#otherdefinitions) Source: Matthes, Slide 17

18 The Enterprise Architecture Approach Goals Align IT- and business development Example Mobiliar Align IT- and enterprise strategy Support the achievement of business goals Implement enterprise architecture Manage and reduce complexity Provide standards and guidelines Define a common foundation Create a window of opportunity Slide 18 Identify efficiency potentials Conserve and communicate knowledge

19 The Architecture Development Management Requirement Management is central Process is iterative Important steps: Scope (A) Business - IS - Technology (B, C, D) Opportunities and decisions, RFP, PoC (E) Implementation and review (F, G) Management of changes (H) Source: TOGAF 9.1 Slide 19

20 The Enterprise Architecture Approach Key Layers and Key Artefacts Example Mobiliar Business Architecture Policies, enterprise strategy, business processes and transactions, information model Information System Architecture Scope: relations between business processes and supporting applications and relevant data Application building blocks, applications, interfaces, data Technology Architecture Scope: relations between application landscape and the technology infrastructure Platforms, networks, database systems, development environments Slide 20

21 The Enterprise Architecture Approach Stakeholders, Drivers and Lifecycles Stakeholders management, business units business units, IT management Example Mobiliar Drivers insurance market, business models, legislation application market, providers of IT-services Artefacts Lifecycle 1-20 Years 5-15 Years IT management operating systems, hardware, development environments 2-5 Years Slide 21

22 The Enterprise Architecture Approach Architecture cycle Example Mobiliar Driver: Insurance market Mobiliar-Strategy IT-Strategy Driver: Application market Projects Lösungsarchitekturen Projects Lösungsarchitekturen Projects Lösungsarchitekturen Architecture principles Driver: Technology market Current Architektur Architecture SOLL Architecture - Architektur 2014 Architecture 2015 Target Architecture Slide 22

23 The Enterprise Architecture Approach Common components of an EA Common to Enterprise Architectures are models and frameworks for Business capabilities, Business architecture, business processes IT capabilities, service portfolio Information System (application and data) architecture Technology architecture EA Enterprise Architecture Operating Model OM IT Information Technology Source: C. Aschwanden, Value of EA, October 9, Slide 23

24 Operating Model and value from IT change in each stage of maturity costs Integrated Biz Processes Business Modularity Strategic agility through services Standardized Biz Processes Operational efficiency through enterprise systems Business Silos IT Efficiency through technology standards & shared IT infrastructure Local/functional optimisation Source: C. Aschwanden, Value of EA, October 9, time Slide 24

25 Enterprise Architecture maturity stages emerging standardised operationalised institutionalised Limited resources. Sitting within IT. Lack of alignment to business. No commitment. Still within IT. Raising standards. Decentralised. Inconsistent. Not empowered. Centralised function. Aligns business and IT through communication / governance EA is critical to business (innovation & modularization). EA empowered. Source: C. Aschwanden, Value of EA, October 9, Slide 25

26 The Enterprise Architecture Approach An Overview Example Mobiliar Enterprise Architecture Process architecture Application integration focused architecture Data architecture Software architecture User-Interface focused architecture Hardware-orienterted architecture Mobiliar IT department Slide 26

27 The Enterprise Architecture Approach Position in the organisation Example Mobiliar* Data Architecture Performance Architecture Security Architecture Business Architecture Application Architecture Software Architecture Technology Architecture Enterprise Architecture Application development IT operation *Organisation until 2013 Slide 27

28 Business value of architectural work? Slide 28

29 Business value of Enterprise Architecture? Slide 29

30 Our elevator pitches for Enterprise Architecture EA is like this elevator: from the top floor you can see the city; from the ground floor you can see the street. To make the right decision on the street level, you have to know what is important to the city. EA provides this perspective. EA ensures alignment with enterprise strategic plans. EA provides solutions for reaching business goals. EA is for business. If there is no EA, everybody is doing what they want, and, the strategy need are not received. We have reduced costs and goals; EA is the way to rationalize our IT; it is also important to align IT and our current business goals with a clear roadmap (budget and roadmap). EA aligns business and IT and improves efficiency. EA improves the reliability of plans. Source: C. Aschwanden, Value of EA, October 9, Slide 30

31 The Enterprise Architecture Approach Expectation of the CIO Führung Example Mobiliar Zugänge Finanzen Öffentliche Portale Kaufsoftware Spezial Geschützte Portale Weitere Portale Partner Partnerverwaltung CRM & Kundenausk unft Vermögensverwaltung Kaufsoftware Spezial Produkt Vertrieb Produktentwicklung Vertragsführung Beratung Schaden/Leistung Bestandesführung Schadenmeldung In-/Exkasso In-/Exkasso Target architecture Risikomanagement Kaufsoftware Spezial Personal Schadenerledigung Verkauf Produktausführ ung Mitversicherung Führungsinformation Provisionierung Rückversicherung Kaufsoftware Spezial Kaufsoftware Spezial Berechnung ArcGIS Dokumentenmanagement Dokument-Erstellung Papyrus Dokumentenmanag ement Documentum Basisdienste Archiv Documentum Outputmanagement Papyrus Office Computing Einkauf Infrastrukturdaten Zugriffsberechtigung GeVo & Auftragsmanagement Mobile Synchronisation Kaufsoftware Spezial Kaufsoftware Spezial Führung Zugänge Finanzen Öffentliche Portale Kaufsoftware Spezial Geschützte Portale Weitere Portale Partner Partnerverwaltung CRM & Kundenausk unft Vermögensverwaltung Kaufsoftware Spezial Produkt Vertrieb Produktentwicklung Vertragsführung Beratung Schaden/Leistung Bestandesführung Schadenmeldung In-/Exkasso In-/Exkasso Risikomanagement Kaufsoftware Spezial Personal Schadenerledigung Roadmaps Verkauf Produktausführ ung Mitversicherung Führungsinformation Provisionierung Rückversicherung Kaufsoftware Spezial Kaufsoftware Spezial Berechnung ArcGIS Dokumentenmanagement Dokument-Erstellung Papyrus Dokumentenmanag ement Documentum Basisdienste Archiv Documentum Outputmanagement Papyrus Office Computing Einkauf Infrastrukturdaten Zugriffsberechtigung Kaufsoftware Spezial Slide 31 GeVo & Auftragsmanagement Mobile Synchronisation Kaufsoftware Spezial

32 The Enterprise Architecture Approach Vision Example Mobiliar Enterprise architecture supports and designs active the future of the company. EA is responsible for the change process. Slide 32

33 Agenda 1. Introduction 2. What is Enterprise Architecture and what is the (business) value? 3. What are the design concepts and processes of EA? 4. Which problems did we solve? Slide 33

34 Design of Enterprise Architecture Main tasks Example Mobiliar Leading Planning Review Thinking Design Document Reflect Slide 34

35 Which artefacts or results of an Enterprise Architecture do you know? Slide 35

36 Design of Enterprise Architecture Main results Example Mobiliar Vision & Strategy Enterprise Architecture Partner & Cooperation (Governance) Current Architecture Business processes Application portfolio Application landscape Application review Data models Projects Concepts, Reviews Solution architecture Standards Target Architecture Target Architecture for every discipline Opportunities Roadmaps Guidelines, Metrics Documentation & Architecture-Tools and Methodology Slide 36

37 Design of Enterprise Architecture Guidelines and Templates IT-Standards Example Mobiliar IT-Standards define the guidelines for operating the business.. Reference Architecture Business Roadmaps Architecture Principles Technology Roadmaps Slide 37

38 Design of Enterprise Architecture Tools for architecture work in projects BUSA Business object model angeboten auf kommuniziert durch Konto & Geldflüsse gehört zu führt zu Partner Example Mobiliar SWA erfüllt via Kommunikation & Kontakt Punkt ist verantwortlich für Marktangebot Development löst aus Geschäftsvorfall hat Geschäftsbeziehung via löst aus ist Basis für Vertrag Business Engineering Navigator bezieht sich auf befindet sich auf Lokation löst aus gedeckt durch MAIA bezieht sich auf Objekt Schaden Component Business Modell JEE & SOA RefArch Principles Guidelines BeA Domain Landscape BeA-RefArch IT-Standards IT Roadmap, Trends Sicherheits-Sub-Services Security Building Block Reference architecture SecA Zones, ID, Auth Infrastruktur Anwendung APA I&A Architecture principles DA Logical Model Roadmaps CDM: ISDV, PEAP Mondrian DB2CAT... Schnittstellen Solution Specification System Arch. SysDesign / Tech Work packages Development Slide 38 SD VK SIP

39 Design of Enterprise Architecture Processes Example Mobiliar plan do continuous Manage architecture Develop architecture improvement act check Operate architecture Review architecture Slide 39

40 Design of Enterprise Architecture Relevant depended processes Example Mobiliar Strategy development Enterprise Architecture Project realisation Portfolio management Slide 40

41 Design of Enterprise Architecture Business-IT-Alignment - Boards Example Mobiliar FOCUS Business IT Business-IT Alignment BUSA-Circle Expert business group Architecture Board Head: BUSA Head: BUSA Head: BUSA Head: IT Alignment of Business, IT and Architecture Strategic requirements Discussion of business questions, preparing decisions Decisions for standardisation (processes, products) Decisions for architectural questions and topics Architecture-Community Head: IT Support cooperation among all architects Slide 41

42 Design of Enterprise Architecture Strategic IT-Principles (selection) Example Mobiliar Run the Business vs. Change the Business Run < 50 % Change > 50 % Buy before make If there are solutions in the market which are good enough we choose these instead of self implementation. Homogeneous ITinfrastructure Reduction of number of platforms Standardised workplace Sourcing Outsourcing, if commodity and more costefficient Concentration on less, strategic partner Slide 42

43 The maturity od Enterprise Architecture should be considered when selecting KPIs Economic perspective Costs Estimates of savings through Number of re-used applications / systems Number of decommissioned system Number of opportunities defined Overall size of the opportunities Internal perspective Measuring complexity by number of critical dependencies Impact Assessment Degree of completion & coverage of target architecture Information Technology life cycle management Client/Stakeholders perspective Satisfaction rating of Stakeholders and Management Improvement of time to market (Average project duration) Number of approved exceptions to EA guidelines per period Number of systems not compliant with EA principles Staff and learning perspective Certification (how many key people are certified) Reliability, of planning: number of projects delivered on time number of projects with deviations to plan total number of days delayed Achieved objectives (rating of percentage) Slide 43

44 Agenda 1. Introduction 2. What is Enterprise Architecture and what is the (business) value? 3. What are the design concepts and processes of EA? 4. Which problems did we solve? Slide 44

45 Business innovation vs. IT-flexibility Large Projects in the last 10 years (selection) Stakeholder Example Mobiliar 2013 P&C (Versicherungen) Mobilität.NT NT MobiPro MR.NT MobiCasa MR.NT MobiSana MR.NT Claims Integrated datadriven platform (pruduct, contract, sales) for P&C Life&Pension (Vorsorge) Contract system privat line Contract pension WelCome! Sales platform Consistent customer view and new solution for life private risk and pension Marketing & Sales (Markt Management) CRM Mobi24 Internet platform Broker platform Contact Center Realisation of Multi- Channel-Strategy and integrated sales platform Redesign prop. system Overall SAP FS/CD New Workplace VoIP New Workplace New Workplace EDWH State-of-the-art workplaces centralised and decentralised New technologies for communication Slide 45

46 Concrete results: Actual Architecture Application Landscape 2012 Example Mobiliar Arbeitsplatz Eigenentwicklung Kaufsoftware DIV - RPG - Documentum Papyrus RMfI ArcGIS Kauf- & Eigen-SW Spezial MPS SIS ELAN MobiOffice PROFI SIEBEL VP PEAP FS-CD DMS- MCM Papyrus RICO MobiGIS Target Desktop RedNet MS Office DEFA.NT Vertragsauskunft ABMU VF.NT POS Accés Portefeuille Courtage Abrechnung DMG TBS400 Mobi 24 Assistance COR.FJA msg.pm HCM FI DMS- FINMA GED MobiGIS Expert PRORIS Igloo KDM Mobiliar Notruf MS Outlook Vertragsverlauf POLI Référentiel Produit Partner-Portal Mobi 24 CO Bloomberg & Reuters EUC MPE VEKA Costar BI Bwise Integrationsarten Elektronischer Workplace Business-Applikationen CRM Produkt-Entw. und Vorsorge Finanzen, Contr, Asset Mgmt., HR Dokumenten Management Drucken Führungs- Informationen Geographische Informationen Individuelle Informatik Slide 46

47 Concrete results: Actual Architecture Technology Landscape 2012 Example Mobiliar Client Server Eigenentw. Kaufsoftware Eigenentwicklung Business Applikation Mobiliar Notruf MobileEch o ELAN lokal POS-Excel MPS DEFA.NT SIEBEL VP PEAP COR.FJA FS-CD HCM Papyrus Documentum DMS- Papyrus MCM DMS- FINMA RMfI RICO Kauf- & Eigen- SW Target Spezial RedNet Desktop. ArcGIS MobiGIS MobiGIS Expert DIV PRORIS KDM SIS ELAN MobiOffice PROFI ABMU POS - RPG - Infrastruktur Applikation Middleware Services Java Master Portal Mobiliar Master Portal MQ- Series IMS Transaction Monitor DB Services OS Services OS/ 400 IBM.I MS Plattform Services zseries iseries pseries Storage Services Netzwerk Services Slide 47

48 Concrete results: Target Architecture Application Landscape 2020 Example Mobiliar Nicht-Leben Leben und Nicht-Leben Leben Strategische IT-Plattformen Zugänge Partner Produkt Vertrieb Vertragsführung SIEBEL CRM Insurance Papyrus Documentum RMfI Universal Schaden ArcGIS Spezial Führung Dokumenten- Management In-/Exkasso Basisdienste Slide 48

49 Summary The benefit of an architecture approach depends on its scope. The broad scope of an enterprise architecture is connected with multiple stakeholder interests, a hardly accountable benefit and inherent incompleteness. Successfully selling the Enterprise Architecture to the organisation requires an active architecture management. Slide 49

50 I am a good Enterprise Architect, because I m a generalist. I can see and understand the whole big picture without loosing eye for details. I know and understand the business (strategy, goals and trends) and I can communicate. I can handle new problems and the unknown. I understand the goals of the others and make them communicating. I provide and communicate roadmaps and principles aligning different parts of the business according to decided strategies. I estimate the business impact of new initiatives. Slide 50

51 Literature Hanschke, I.: Strategisches Management der IT-Landschaft. Ein praktischer Leitfaden für das Enterprise Architecture Management. Hanser Murer et. al: Managed Evolution. Springer-Verlag (Togaf) (architectural patterns) (IBM) Slide 51

52 Thank you! Slide 52

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