What is the Value of Architecture Andrew L Macaulay March 2006

Transcription

In collaboration with
Microsoft Architect Insight Conference
Drive the Debate
What is the Value of Architecture
Andrew L Macaulay
Global Head of Architects Community
March 2006
Agenda
 Introduction
 Issues Facing Business
 How Can Architecture Help?
 What Does Service-Oriented Architecture Add?
 Critical Success Factors
 Summary
| Microsoft Architect Insight Conference
Copyright © 2006 Capgemini - All rights reserved
March 2006 1
Introduction
What is the true value of architecture?
• Cost Reduction?
• Risk Reduction?
• Improved Business/IT Alignment?
• Improved Business (and IT) Agility?
And how does the culture and behaviour of an organisation affect
the outcome?
To answer these questions, we need to understand …
• What we mean by Architecture
• What we mean by Value
• And how we might start measuring Value
March 2006 2
Architecture means different things to different people
Enterprise Architecture
Enterprise IT
Information Systems
Architecture
Enterprise IT
Technology Infrastructure
Architecture
Enterprise
Security Architecture
Enterprise IT
Architecture
Information
Architecture
Enterprise
Governance Architecture
Business
Architecture
Solution
Architecture
Software Architecture, Network Architecture, Storage Architecture…
March 2006 3
Aligning Business Strategy and Project Delivery
Transition Roadmap
(As-Is to To-Be)
Influence choice &
timing of projects
to ensure progress
along the roadmap
towards the EA
vision
Enterprise architecture
represents the desired
future state of the
business & IT landscape
Business Strategy
Roadmap represents
the “route” to realising
strategic business & IT
goals and the EA vision
Is the EA roadmap
still taking us where
we want to go?
Business & IT
Project
Prioritisation &
Planning
IT Strategy
Enterprise Business &
Information Architecture
Are the target
architecture & defined
standards still “fit for
purpose”?
Enterprise IS & IT
Architecture
Enterprise
Architecture
Governance
Are projects getting
expected value from
the architecture?
Ensures “project level”
architecture work is
properly planned &
costed
Enterprise architecture
establishes and sets the
standards by which solutions
should be architected, and
provides guidance across the
project delivery lifecycle
Is the architecture
being complied with
in the way we want?
Project Delivery Lifecycle
Project Initiation & Start-up
Project Execution
Project Closure
Business Case
Transition to Run
Solution
Outline
Project Mandate
Solution
Design
Build/Test
Cycle
Deploy
Project & Stage Plans
March 2006 4
Value is also measured from an individual viewpoint
Increasing
Business
Advantage
CEO

Increasing
Improving
Reduced IT
Business/IT
IT/Project
Complexity
Alignment Effectiveness


CIO



CFO
IT/System
Manager


Business
Manager
Reducing
Cost of IT



March 2006 5
Issues Facing Business Today
www.capgemini.com
Many Business Drivers – Often Conflicting
 Cost reduction
 More value from IT
 More flexible IT
 Cheaper solutions and faster
 Reduce project failures
 Integrated and interoperable information services
 Better service from SOE/SOA solutions
 Guarantee of Quality
 Compliance
…
March 2006 7
Typical Current State – Project-focused Silos
There is rarely an alignment of functional requirements across business units
and even less often alignment with service level and other non-functional
requirements across the business
Business or Organisation
Business Unit A
Business Unit B
Business Unit C
Business Unit D
Business
processe
s
Business
processe
s
Business
processe
s
Business
processe
s
Processes optimised for
specific BU requirements
result in considerable
overlap and redundancy
Functional
Requirements
Version 4
70% of IT projects fail to
deliver their expected
results because of this ‘silo’
mentality
Functional
Requirements
Version 1
Infrastructure
and
Governance
Functional
Requirements
Version 2
Infrastructure
and Governance
Functional
Requirements
Version 3
Infrastructure and Governance
With increased complexity
and integration of function,
cost of change and
maintenance is increasing
Increasing complexity = increasing £££ for each change
March 2006 8
IT Landscapes often locked in a ‘vicious circle’
 Continual business improvement
and new initiatives are inhibited
by IT due to the slow and costly
nature of implementing change
 Things have been made worse
by projects attempting to deliver
in an isolated fashion to bypass
inhibitors – but this has only
resulted in further constraints for
subsequent projects in the
medium term
25%
Phase 1
Cost
Operational
"Operational Support"
Euphemism
Phase 2..n
75%
Cycle of:
Lower phase 1 cost
Higher phase 2..n cost
Higher operational cost
Inflexible, slow to change
CxOs often cannot understand why relatively straightforward
business changes are costly, risky and slow to implement
March 2006 9
How Can Architecture Help?
www.capgemini.com
The Four Quadrants of Enterprise Architecture Value
Increase
Value
Expand IT Reach
Increase Business Agility
You can collaborate more
effectively than your
competition with your
customers, suppliers and
partners through your IT
You can continuously adapt
your business more quickly
and with lower risk than
your competition by
changing your IT
Increase Project Success
You can significantly
improve your success with
your investment in ITenabled business projects
Reduce IT Cost
You can deliver new IT
solutions and manage your
existing IT services at lower
cost than your competition
Reduce Cost
March 2006 11
Where Does the Value Come From?
Business
Strategy
and Goals
Enterprise
Architecture
Capability and
Governance
Enterprise
Architecture
Project
Portfolio
Management
Solution
Architectures
Increased
Understanding
of the Business
Reducing
complexity
of IS & IT
systems
Holistic View
of Business
& IT Systems
Technology
and Systems
Roadmaps
Consistent
(or Managed)
View of Nonfunctional Req
Design with
Knowledge of
Context and
Enterprise
Enabling
consolidation
of servers
Reducing
project
risk
can drive
Reducing
Costs
Improving
Project
Integrating Success
existing
systems
easier
Value
to the
Business
More
Reactive
to Business
Availability Change
Enabling
and reuse of
Competitive
shared
Advantage
services
Innovating &
leveraging new
technologies
March 2006 12
Understanding the Different ‘Types’ of Value
Architecture can enable
Small %
decrease in costs
frees significant %
increase in ability
to invest
Competitiveness
Improved responsiveness to Business Change
Increase flexibility within the Business and IT
Innovation/leveraging of new technology
Business Benefit
Cost
What you have to do
to run your business
Compliance
What you have to do
to be in
business
Spend
Reduced costs of environment
Increased project success
Reduced project risk
Leverage new capabilities
for competitive advantage
Reduced costs
Based on Maslow's Hierarchy of Needs
March 2006 13
Taking a Holistic View of the Architecture
WHY?
Contextual
Governance
Security
Information
Systems
WITH WHAT?
Physical
Information
Business
HOW?
Logical
Technology
Infrastructure
WHAT?
Conceptual
Integrated Architecture Framework, version 3.9, Copyright © 2000-2006 Capgemini
March 2006 14
Architecture Maturity/Culture Affects Delivery of Value
Reduced
Biz-IT
Cost/Risk Alignment
Level
Added
Value
-1 Not Needed
0 Not Understood
1 Appreciated
£
2 Product Standardisation
££
3 Strategy Development
££
£
4 Architecting Projects
£££
£
5 Enterprise Architecture Development
££££
££
££
6 Enterprise Architecture Service
££££
££££
££££
March 2006 15
Where Does Service-Oriented Architecture fit?
Moving to a Services view of the world …
• Fosters reuse
• Enables flexible Orchestration rather than fixed process
• Allows you to leverage virtualisation and consolidation
Traditional organisation
TO
Services organisation
TO
Tightly coupled processes/systems
Stovepipes - Integration “spaghetti”
TO
Loose coupling of processes/systems
Service Webs - Standard Interfaces
March 2006 16
SOA Delivering Business and IT Value
Externally created Value
through more efficient
market interaction
Internal Value created
through process
redesign
License cost
savings
Internal Cost
Reduction by shared
resources
Mobility
Process
based
Service-Oriented
Infrastructure
Service-Oriented
Applications
Service-Oriented
bEnterprise
 Platform
Rationalisation
 Storage Area Networks
 Server Virtualisation
 Grid Computing






Security
Web Services
Business Intelligence
Management tools
Development Tools
Service Orientated Architecture




Mobility
Event Driven
Real Innovation
………… etc
March 2006 17
Measuring Value (Quantitive and Qualitative) Examples
£
£
£
£
£




Reduced Project Risk
and Complexity
Improved Project
Success
Cost Control and
Improved ROI
Reduced Costs for
Business As Usual
Facilitate Delivery of
IT Strategy
Improved Business
Requirements
Better Alignment with
Business
Increased Agility &
Competitiveness
Improved Business
Knowledge
Reduction in project over-runs both in terms of cost and time
without reduction of required scope
Measure around quality of solution; the delivery on-time and
within budget
Measuring ROI of projects over time – there is, however, an
investment cost to start this (building reusable services)
Operational costs of the IT estate to reflect the total cost of
ownership and does not just shift (hide) costs elsewhere
Progress in the delivery and sustaining of the IT Strategy,
which itself will be delivering Value through IT
This should become visible through better development
metrics around faults due to incorrect requirements
Quality-related feedback from the business, for example
through annual surveys
IT seen as an enabler and partner with the business and not
just a cost and constraint on the business
Measure through effect, with the business becoming better
connected, business units able to see themselves in context
March 2006 18
Case Study: National Assembly of Wales
 £500k avoided cost in one year joining up projects and
delivering common requirements as corporate services
rather than siloed functionality
 Currently predicting over £2m of avoided integration cost
across 3 projects by taking an enterprise view early in the
project lifecycle
 The are indications (although not fully quantified yet) from
projects that have worked independently to meet siloed
needs, that the cost of ignoring the Architecture are orders
of magnitude higher than aligning to the Architecture
March 2006 19
Capgemini Research: Added Value of Architecture
Boxplot of Quality of the project architec by What was the architecture metho
2,5
Quality of the project architec
Test for Equal Variances for Cost over/underrun
F-Test
Test Statistic
P-Value
1
Levene's Test
Test Statistic
P-Value
2
0
10
-40
-20
20
30
40
50
60
95% Bonferroni Confidence Intervals for StDevs
1,0
IAF
None
What was the architecture metho
2,08
0,166
70
1
2
0
20
40
Cost over/underrun
60
80
100
F-Test
Test Statistic
P-Value
1
0,08
0,001
Levene's Test
Test Statistic
P-Value
2
0
10
-40
-20
2,0
1,5
0,05
0,000
Test for Equal Variances for Time over/underrun
3,0
Role of Project Architecture
 Used Six Sigma methodology for analysis
 Work to date summarises the first results of
the research of benefits of architecture and
other factors on project results. A sample is
shown on this page
 The results are based on a survey of 30
projects. Currently developing revised
figures based on between 100 and 300
 A 95% confidence level is used to test the
significance of our hypothesis
20
30
40
50
60
95% Bonferroni Confidence Intervals for StDevs
1,52
0,234
70
1
2
0
20
40
Time over/underrun
60
80
100
Role of IAF
March 2006 20
Summary
www.capgemini.com
Critical Success Factors for Enterprise Architecture
Connect
Deliver
 Developing an EA Capability is a
major change programme that
will not happen in a few months
(acknowledge/plan for this)
 Strong executive sponsorship
from within IT and Business
 Work collaboratively with both
business and IT as partners
 Regular targeted communication
with both the Business and IT,
effectively driving a Marketing Plan
 Understand key stakeholders and
communicate specifically with them
 Make your success and value
visible
 A common language/framework
and approach, with supporting tools
if appropriate
 A clear governance model over
projects/Solution Architectures,
including sufficient Authority
 A pragmatic approach so that you
can delivery some results early
and you are not seen as just an
ivory tower doing strategy stuff
 Architecture is a living thing. Use
feedback from projects to learn and
track the changing priorities and
goals in the business
March 2006 22
Critical Success Factors for Solutions Architecture
Governance
Approach
 Work collaboratively with both
business and IT as partners
 Leverage and conform to the
 Work under the right level of EA
governance and provide the right
level of solution governance to the
design/engineering teams
 Reuse services and infrastructure
wherever possible and appropriate
 A common language/framework
and approach with supporting tools,
if appropriate
 Solution Architects with the correct
mix of Business and IT skills, and
subject-matter-specialists available,
maybe through a ‘T-model’
 A pragmatic approach, knowing
where to focus and when to stop
(when it is ‘good enough’)
March 2006 23
Summary
 Enterprise Architecture is a journey
• The business change to implement the capability, the evolution of
the Architecture itself, the cycle of awareness to acceptance to
adoption of the approach, the change it can foster in the business …
 Governance, Authority and Sponsorship are critical
• Getting a governance model that reflects the corporate culture but
can deliver the goods, together with the authority and support are
critical for EA to be able to function – and then deliver value
 Communication is key
• As with Architecture as a whole, communication of the EA function,
the Architecture and the value is something that needs to become
business as usual
 Value is ‘in the eye of the beholder’
• Value can come in many forms - never forget that you must
understand the business context, culture and stakeholders to be
able to really demonstrate value
March 2006 24
Andrew L Macaulay
andrew.macaulay@capgemini.com
www.capgemini.com

What is the Value of Architecture Andrew L Macaulay March 2006

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