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Enterprise Transformation and the Role of Open Standards
Enterprise transformation seems to be gathering momentum within the enterprise architecture community. The term, enterprise transformation, suggests the process of fundamentally changing an enterprise. Sometimes the transformation is dramatic but for most of us it is a steady process. Key takeaways: Setting expectations and planning transformation The role of standards in enterprise transformation The work of the members of The Open Group.
Allen Brown, President and CEO of The Open Group, will present at this month’s EA Forum. Allen has been responsible for driving The Open Group’s strategic plan and day-to-day operations for over 10 years. He is TOGAF® 9 certified, an MBA alumnus of the London Business School and a Fellow of the Association of Chartered Certified Accountants.
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Enterprise Transformation The role of open standards
Customers and suppliers working together
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A journey …
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There is no miracle moment
“The good-to-great companies had no name for their transformations. There was no launch event, no tag line, no programmatic feel whatsoever. Some executives said that they weren’t even aware that a major transformation was under way until they were well into it. It was often more obvious to them after the fact than at the time.”
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Great companies
Gillette “We didn’t really make a big conscious decision or launch a big program to initiate a major change or transition. Individually and collectively we were coming to conclusions about what we could do to dramatically improve our performance”
Kimberly-Clark “I don’t think it was done as bluntly as it sounds. These things don’t happen overnight. They grow. The ideas grow and mushroom and come into being.”
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Transformation SWOT analysis Capabilities
Technology
Vision
Intellectual Property Copyright (C) The Open Group 2011
People
Open Standards and Certifications Capabilities Portability
Skills and capabilities
Interoperability
Enterprise Architecture
Technology
People Dependability Real-time
Security
Intellectual Property Copyright (C) The Open Group 2011
Governance
Enterprise Architecture TOGAF® ArchiMate®
Skills and capabilities
Open Certified Architect Open Certified Specialist
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Cloud computing Security, risk management SOA Supply chain integrity UNIX®
Who are The Open Group Australia Belgium Brazil Canada China Colombia Denmark Finland France Germany India Ireland Israel Italy Japan Mexico
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400+ member enterprises 30,000+ participants HQs in 33 countries Offices in 85 countries Spanning 6 continents
Netherlands New Zealand Norway Poland Russia Singapore South Africa South Korea Spain Sweden Switzerland Saudi Arabia Taiwan Turkey UK UAE USA
Some of us …..
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The Open Group South Africa
Armscor Business Connexion CAE Mining CS Interactive Training Eskom Faculty Training Institute Firstrand Bank Limited Gijima Graphic Mining Solutions International (Pty) Ltd. Knotion Consulting Lonmin Meraka Institute Nedbank
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Ovations Pricewaterhouse Coopers LLP Promis Real IRM Solutions (Pty) Ltd SARS Sol Arch Consulting South African Reserve Bank State Information Technology Agency (Pty) Ltd T-Systems Telkom SA Ltd triVector (Pty) Ltd University of Johannesburg University of Pretoria University of South Africa
Our Vision Boundaryless Information Flow™
achieved through global interoperability in a secure, reliable and timely manner
“Boundaryless does not mean there are no boundaries – it means that boundaries are permeable to enable business.”
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Best Practices of Enterprise Architecture
SOA – Architecture for Boundaryless Information Flow™
Cloud roadmap and strategy
Trusted Technology – Global Supply Chain
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Keynotes – Monday, January 30th, 2012 Jeanne W. Ross, Director and Principal Research Scientist, MIT Center for Information “The Enterprise Architect: Architecting Business Success”
Celso Guiotoko, Corporate Vice President and CIO, Nissan Motor Co., Ltd How Enterprise Architecture is helping NISSAN IT Transformation
Andy Mulholland, Global Chief Technology Officer, Capgemini The Transformed Enterprise
Lauren C. States, Vice President CTO Cloud Computing and Growth Initiatives, IBM Corporate Strategy
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Keynotes – Tuesday, January 31st, 2012 Allen Brown, CEO, The Open Group Enterprise transformation and the role of open standards
William Rouse, Executive Director, Tennenbaum Institute at Georgia Institute of Technology Enterprise Transformation: An Architecture-Based Approach
Tim Barnes, Chief Architect, Devon Energy Case Study: Continuing Devon's EA journey - evolving toward innovation
Joseph Menn, author and cybersecurity correspondent for the Financial Times. What You're Up Against: Mobsters, Nation-States and Blurry Lines
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Best Practices of Enterprise Architecture
SOA – Architecture for Boundaryless Information Flow™
Cloud roadmap and strategy
Trusted Technology – Global Supply Chain
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Enterprise Architecture Standards TOGAF®
The world-leading standard for how to do Enterprise Architecture
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Open and independent modeling language for enterprise architecture
Building an Architecture Practice in the Context of an IT Transformation October 25, 2011 – The Open Group Conference Taipei, Taiwan
Jake Sims Chief Architect, Cathay Pacific Airways
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Contents
1
Cathay Pacific Airways
2
Context for change
3
Our journey
4
Value and lessons
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In 2010, we re-organised the IT department and rebuilt the architecture function
Demand Management PAX
Demand Management AOC
Demand Management CBO
Centralised IT
Matrix processes
Split demand and supply
Aligned demand functions to business departments
Professional disciplines
Architecture became bridge between Supply & Demand
Architecture acts as the first crossenterprise function
New governance
Strategy, Architecture and Planning Project Delivery IT Sourcing (APD-IT) Strategic Supplier Management
Major Programmes
Development
Service and Operations
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Our vision to establish a world-class architecture practice started from a green-field ... Publish IT Strategy Architecture process integrated into IT capital budget planning Establish design review and architecture governance
Certify entire team in TOGAF 9
H1 2010
Define team structure & roles
Tailor TOGAF for EA and SA methods
H1 2011
H2 2010
Agreed technology standards & principles
H2 2011
Refine portfolio planning and EPMO integration
Re-engineer infrastructur e design process
Deploy Architecture Tool to EA team Execute architecture education programme
Build team
Establish Mechanics
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Release architecture roadmaps
Publish business and technology blueprints
Define Solution Architecture design process
H2 2009
Deploy Architecture Tool to SA team
Develop Team & Processes
Review & Improve
… so we used the TOGAF ADM and content framework to accelerate the development of our methodology Integration has been critical to our success ... • Consistency through well-defined processes and standardised content framework • Design process integrated into delivery methodology
• Architecture governance integrated with EPMO • Blueprint and roadmap process integrated with Portfolio Management teams Conceptual Design Document
High Level Estimates
Concept
PPC – Release of resources for II
PPC – Release of resources for F&D
Investigation
Blueprint and Roadmap Alignment
EDA
PPC – Business case review
Feasibility & Design EDA
Enterprise Design Authority I AGB AGB Assesses architecture decisions and options including COTS and custom built solutions Solution Enterprise Design Authority II Architecture Certification: Assesses solution design quality Document and fit, as described by Solution Design Document (SDD) Solution Design Document
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Architecture Certification Request
Architecture Exception Request
Build, Test & Deploy D A
D A
D A
... and Architects are crucial to both strategy and operational activities • Architects liaise closely with colleagues in Procurement for strategic sourcing & purchasing
D A
‘Design Authority’ reviews detailed designs, hosts regular design authority sessions, issues decisions Endorsed Solution Design Document
Architecture Governance Board Reviews recommendation & options – endorses preferred approach and scores for investment governance body
• Annual IT capital budget process • Cross-portfolio constraints and dependency management
Tracking of capability maturity and performance demonstrate that we have come a long way in just 18 months ... Architecture Practice Management • Balanced Scorecard with KRAs & KPIs • People & skills development plan Foundational Capabilities • Standard templates & published blueprints • Architecture repository tool Architecture & Portfolio Management • Architects support business strategy • Portfolio specific roadmaps Architecture & Sourcing/Procurement • Support of strategic sourcing process
• RFx: requirements & evaluation Architecture at the Program Level • Domain architectures to initiate strategic programs • Design and architecture decision governance
Architecture at the Project Level • Ownership of estimation process • Solution Architects on medium/large projects
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SOURCE: World Class Enterprise Architecture white paper, April 2010, The Open Group Adoption Strategies Working Group
... and we have delivered significant value to the business and the IT department as well
Strategy
Consistency
Understanding
Portfolio Execution
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Strategy, blueprints and roadmaps to support B2C, multi-channel, e-Enabled Aircraft, BI, CRM, ERP, document management, SOA, port setup, payments
Business-centric views (context, cost, objective)
Standard process with standard outputs
Traceability from business objectives to IT
Enterprise Debt, linkage to corporate KPIs
Stakeholder education and 1-to-1 sessions
Ownership of estimation process
Cross-portfolio constraints & dependency analysis, impact analysis
Open CA (formerly ITAC)
Open CA provides a skills and experience based certification program for IT Architects that is used by the world’s leading enterprises Key features and benefits An independent, global certification program for qualifying the skills, knowledge and experience of IT Architects The best & most professional IT Architect certification program in the industry Objective, repeatable, reliable A peer-reviewed, vendor-neutral benchmark A guide for selecting the most qualified individuals for critical roles & responsibilities Proven, tested & effective Future streams for Business Architects and Enterprise Architects Provides a clear path for professional development Advance your career Gain peer recognition Succeed in today’s competitive job market Increase salary & promotion prospects Don’t have to prove your skills & experience Boost your IT skills Get more interesting & rewarding job assignments
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Open CA
Adopted by major customer enterprises Astrazeneca ING Nationwide UPS Others that cannot be named at this time Will increasingly be included in RFP’s Certifications to date > 3,200
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Certifications to date at 160 enterprises, including leading customers Cargill Corporation Credit Suisse DHL Direct Energy GSA Gtech HSBC Shell Vodafone Wal-Mart
Open CITS (formerly ITSC)
Certifications to date > 2,300
Increasing trend Organizations who use our certifications as part of developing their own internal professions Improves brand as an employer Low cost – adopt “out of the box” Proven industry standards Organizations include
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Philips Credit Suisse AT&T IBM CapGemini
29
Best Practices of Enterprise Architecture
SOA – Architecture for Boundaryless Information Flow™
Cloud roadmap and strategy
Trusted Technology – Global Supply Chain
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SOA: Architecture for Boundaryless Information Flow
Learning opportunities How to use TOGAF for enterprise SOA How to use TOGAF for SOA solutions How to address stakeholder concerns in SOA How to address information architecture for SOA using TOGAF
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The Open Group SOA standards
Include: The Open Group Service Integration Maturity Model (OSIMM) Service-Oriented Architecture Ontology SOA Governance Framework
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Best Practices of Enterprise Architecture
SOA – Architecture for Boundaryless Information Flow™
Cloud roadmap and strategy
Trusted Technology – Global Supply Chain
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Copyright (C) The Open Group 2011
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Nine questions 1. 2. 3. 4. 5.
6. 7.
8. 9.
Is Your Business Situation “Vertical”? Is There Competitive Differentiation in Your Processes? Is the Differentiation IT Based? Are There Any Impediments to Outsourcing? Are There Impediments to Cloud Adoption? Is the Primary Business Driver “Cloud Compatible”? Is the Application Insulated from Changes to the Business Process? Will the Cloud Solution Be a Platform Are the Hardware, Operating System and Application Custom-Made or Specialized?
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Best Practices of Enterprise Architecture
SOA – Architecture for Boundaryless Information Flow™
Cloud roadmap and strategy
Trusted Technology – Global Supply Chain
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The Open Group Trusted Technology Forum
The OTTF provides a framework, the Open Trusted Technology Provider Framework (O-TTPF) A set of industry best practices and guidelines that enable the technology and communications industries to build with integrity so customers may buy with confidence
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Through vendor accreditation, customers will be able to identify technology providers producing products which implement these practices throughout their global supply chains
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The Open Group Security publications
Risk Management
Open Information Security Management Maturity Model
Open Enterprise Security Architecture Copyright (C) The Open Group 2011
Concluding thoughts
Transformation implies fundamental change
We are all transforming our enterprises It may not seem to be very transformative at the time It may become more obvious after the fact
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Critical issues
Link the vision to Capabilities we need Intellectual property we need to get / protect
Enable them through People Technology
Capabilities
Technology
Vision
Intellectual Property
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People
Standards support transformation
Are developed by people like you
Are there to be used Avoid re-inventing the wheel
Protect investments
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Involvement in standards
Information Plan your transformation strategy
Influence If you don’t - your competitors will
Involvement Build a network Beyond standards
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Best Practices of Enterprise Architecture
SOA – Architecture for Boundaryless Information Flow™
Cloud roadmap and strategy
Trusted Technology – Global Supply Chain
Copyright (C) The Open Group 2011