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Agile EA in Practice

Agile EA in Practice. Understand EA Value & Risks. What is Value? EA Value Measures What are Risks? EA Risks. Understanding EA Value starts with understanding What is IT Generated Value?. IT as an Resource Value is: Featured in its Hardware Software Supported business processes

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Agile EA in Practice

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  1. Agile EA in Practice

  2. Understand EA Value & Risks What is Value? EA Value Measures What are Risks? EA Risks

  3. Understanding EA Value starts with understanding What is IT Generated Value? • IT as an Resource Value is: • Featured in its • Hardware • Software • Supported business processes • People skills • Measured by productivity, on-time & quality indicators The interaction of IT & Bus creates business value, which: Is of an economic and/or strategic nature; Has different facets, depending on business priorities; Can be measured using different metrics (KPI + measures) relevant to the appropriate business contexts; Are created via projects of BUs ICT Business Activities Adapted from: http://www.mckinsey.com/insights/business_technology/how_cios_should_think_about_business_value ; http://docs.health.vic.gov.au/docs/doc/EF8861765B99DB1ECA257B19007DBA75/$FILE/understanding_program_logic.pdf http://evaluationtoolbox.net.au/index.php?option=com_content&view=article&id=30&Itemid=136

  4. Example: Business Value created by use of EA • Case Study – Project that aligns the ICT of USA federal, state & local governments. • The cost-benefit analysis findings (business value): • Financial Cost Savings • Service Provisioning Improvements • Lesser Duplications & Waste • Higher economic growth building capacities • Consistent community services independent of political changes Source: http://davidfrico.com/rico07a-s.pdf

  5. Example: Business Value created by use of EA Same Case Study – More in-depth analysis of cost savings by each USA state Source: http://davidfrico.com/rico07a-s.pdf

  6. EA Value • Better Enterprise Resource Planning • Shorter planning to deployment cycles • Identifies & reduces resource & workduplication  optimises staff nos. • Identifies & improves resource integration & performance • Better Communications between strategists, business & ICT staff: • More effective meetings • More shareable reference info about strategy, business & ICT matters • Better Decision Making • Faster decision making Strategic elements Business elements Technology elements Value varies depending on: Size & complexity of organisation Type & number of IT performance issues/gaps Degree of ICT resource duplication How supportive are stakeholders for IT

  7. “No such thing as a free lunch” The cost of getting value is accommodating some degree of risk WHAT IS RISK?

  8. Managing EA Risk – What is Risk? Risk - the effect (positive or negative) of uncertainty on objectives.  Risk is considered with reference to possible consequences and likelihood of occurrence (ISO definition) The actual consequences of risks are often called problems and issues If EA is to enable the creation of value adding ICT enable services, then think of what causal factors (risks) that can erode the work performance of this intent. Examine the value creation of EA in text and think of the reverse and what may cause it Strategic or operational Over achieves Above KPI Aims for Objective Target KPI Risk Occurrence results in KPI variances & other unforseen effects Below KPI Under achieves Risk Assessment: ID the uncertainty causes of KPI variances & other dangers Measures the impacts of risks ID the appropriate risk prevention, mitigation (containment) and recovery strategies

  9. Managing EA Risk - Risk Management Process Concepts Example of a typical Risk Management Process Model Source: https://ppl.app.uq.edu.au/content/1.80.01-enterprise-risk-management Risks Prevention Risks Mitigation Risks Recovery

  10. EA Value / Risk EA Value EA Risks Better Enterprise Resource Planning Current & Future EA Planning involves more $ EA as a new resource mgt method is not always accepted Require specialist skills – availability issues  high salaries Time to document may delay projects Lack of comprehensive & integrated EA management & modelling tools Better Decision Making Better Communications between strategists, business & ICT staff Strategic elements Business elements Technology elements

  11. Managing EA Risk – from a Risk Prevention Perspective Don’t be first adopter of EA advances in method changes & tools dev Secure executive commitment & support for EA adoption Identify EA costs and allocate to project budgets  capacity to zoom in/out EA cost components Have EA team succession planning – training and recruitment backup strategies Integrate EA management methodology into project management methodology, as part of project governance; include EA management in corporate governance system

  12. Deeper into EA Cost RisksUnderstanding the CostDrivers of EA In Projects Setup + Compliance + UPDATE EA Staffing & Consultant Costs EA Activity Costs EA Equipment/Tools’ Costs Involvement of other Stakeholders – the costs of their time, resource provided, etc Cost Drivers can be potential Cost Risks – How?

  13. EA Governance Concepts Corporate Governance & Implementation EA Governance in Projects SoA Governance Balancing SoA Agility & Quality Value/Risks

  14. Corporate Governance Organisation’s “Rules” Expected to: Be reflected in all people’s behaviours (conduct) Represented in all decision making, operational & project activities Check compliance & intervene to correct non compliance

  15. Corporate Governance Implementation Organisation’s Governance Framework EA Governance Can be part of affects all ICT enabled operational & project work Or Can be part of Operations Governance Framework Projects

  16. EA Governance in Projects • EA Governance work is about checking that people follows EA principles, policies, standards & best practices in their projects, ie compliance oversee • How do you deal with non compliance? • Depends on: • Your management style • Organisation culture • Compliance accountability behaviours & penalties • Risk taking behaviours EA Governance Styles Chiefdom IT or Business Monarchy Duopoly – some business & IT executives control Democracy Anarchy – no clear authority

  17. EA Governance in Projects EA Governance enablers: Communication effectiveness Available of quality EA tools Showing visibility of compliance Compliance rewards / non compliance penalty Change management decision evaluation & execution accountability

  18. EA Governance & Compliance Enablers Recruitment & HR Plans for EA EA HRM Provision Clear & common understanding Regular Access to EA Training Communication Enablers EA Training Programs EA Knowledge Management Practice Specialist Networks & Forums EA System Tools EA Automation

  19. SoA Governance – rules for exercising control over services Example: Using EA3 Layering Design rules Runtime rules Change mgt rules Service Perspectives Strategic Service Business Services IT App Services Network Services

  20. Balancing Quality & Agility Value/Risks in SoA Projects Agility = Quality + More Time = (More Time & Cost) + Time More quality More time The more agile a SOA implementation becomes, the more time is required to ensure quality, and as a result, it isn’t long until quality activities become so time-consuming that the agility of the implementation is at risk. The only way to obtain the balance between agility and quality the business requires is to take an iterative approach to a SOA initiative, where each iteration is bounded either by scope or cost Quality = More Time & Cost SoA Agility SoA Quality More time Time Time Quality Cost Less time

  21. Ramifications of balancing SoA Quality & Agility in Projects • EA work is executing both • EA Management +“analysis & design” modelling Agile iterations bounded by scope & costs managing executing

  22. Some Basic SoA Concepts Service Definitions Service Design Concepts: ZAPTHINK vs Open Standards SoA Design Symbolic & Semantics Service Design Modelling ZAPTHINK – a SoA future roadmap

  23. Classification of EA Domains The classification of EA documentation areas (domains) can vary across EA standards Business Architecture Domain Information/Data Domain Application Integration Domain Technical Infrastructure Domain

  24. What is a Service? ITIL Definition: “A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.“ SoA Definition: “A self-contained unit of software that performs a specific task.” Business Service Infrastructure Service “Are services that perform specific business functions and are required for the successful completion of a business process” Also called application services “Services provide the technical functionality necessary for the implementation of business processes in SOA, but do not directly add business value” Source: https://www.mulesoft.com/resources/esb/services-in-soa

  25. Understanding Service Concepts:ZAPthink Service Abstraction Concepts • ZAPthink Service Concepts: • Service Abstraction reveals • How a service is configured & implemented • How a service interface with another? Via WSDL • What is the nature (type) of a service? Is it strategic, business, IT or deeper classification types under each of these 3 core service lines. ICT enabled Services 1, 3 2 ICT enabled Services 1, 3

  26. Understanding Service Concepts: Open Standards – SoA Design Principles SoA Design Principles Service Abstraction = Hiding as much details of a service as possible via using service contracts that only contain essential information about services:Uses metadata to describe services  service contract information = metadatathe type of a service abstraction is related to the logic in hiding / revealing info

  27. Understanding Service Concepts: Open Standards: SoA Service Design Principles SoA Design Principles Types of Service Abstraction Functional Technology See http://serviceorientation.com/soaglossary/meta_abstraction_types for details Program Logic ServiceQuality Functional abstraction  what a service is capable of doing Technology abstraction  what technologies are used to build a service Program Logic abstraction  how the functions of a service are designed & programmed Service quality abstraction  What are the runtime behavior, performance or reliability requirements, or other QoS details required of a service

  28. Summary - Levels of Service Abstractions Functional Contract • Service Contract • defines service • Type • Implementation specs Technology Contract ServiceMetadata 3 1 Program Logic Contract Service Interface Contract 2 Quality Contract • Service Contract • defines service • Type • Implementation specs Integrating ZAPTHINK and open standards’ SoA Design concepts

  29. Levels of Service Abstraction Two methods for modelling SoA services: Symbolically – modelling the service’s structural properties for organising contents eg Entity Relationship objects Semantically – modelling the service meanings of contents eg ontology objects

  30. Symbolic & Semantic EA Modelling Examples ER Modelling: Object’s Structural Relationships mapping Ontology modelling: Object’s Structural & Contents’ Relationships mapping

  31. Zapthink Vision - SoA development Roadmap 5 Business Trends Influencing SoAanalysis & design developments 3 ICT Trends

  32. Tutorial Tasks

  33. Tutorial Qs Q1. What are some of the areas of value that are generated by an EA program? Q2. What are some of the risks associated with implementing an EA program? Q3. How does EA help an enterprise to view its strategic direction/goals? Q4. How does EA help an enterprise to view its business services? Q5. How does EA help an enterprise to view technology resources? Q6. What is meant by managing risk? Provide two methods to manage risk. Q7. How does EA link to strategy, business and technology?

  34. Case Study Analysis What is the potential value of DMC EA proposal? What are the possible risks in the DMC EA proposal? How can EA can help develop views of this business’s strategic direction and goals; business services and supporting resources?

  35. Q8 Do you agree with the need for an EA program in the case study? Sales & Inventory Tracking System (SITS) – ~2 years RoI, $3mio++ • Integrate info across • Sales • Inventory • Production Capacity to compete with competitor Mitigate production inefficiency Kate Jarvis (COO) Rob Danforth(CEO) Gerald Montes (Chief Council) Decision Options: Buy 1, Buy 2? Improve cost management Scene 1 Cost Accounting Module WELLCO ERP System 18 months RoI, <$600K Jim Gorman (CFO) Sam Young (CIO)

  36. EA will align each current & future departments, increase cost savings into the future, BUT will cost additionally $121,600 & 2 months ...... Lily Jefferson System Analyst 3 Discuss the merits and limitations of the CIO’s (Sam) EA Plan for Financial and Production Segments? What is the value in terms of cost savings & scalability of solution? Vince The Albright Infer DMC’s Strategic Goals Eg New Custom Order Line of Business for Next Year 1 What is DMC organisation culture? Architect 2 Can you describe DMC organisation structure? Analyse Kate & Jim’s System Requirements Scene 2 Sales & Production Department Finance Department

  37. Given the mandate to develop 2 segments of DMC’s EA. First deliverable: business case & EA Dev project plan Produced Meeting Discussion Highlights Two Critical Success Factors Inclusive stakeholder involvement Agreed EA Methodology DMC EA Plan: Financial & Production Segments Report EATeam Elaborate the EA Approach / Methodology proposed in report • EA Development timeline • EA modelling steps involved • Planning & decision making information specs, including preferred documents’ formats • Selection of EA modelling techniques & tools • EA scenarios – Current & Several Future views • Agreement of planning assumptions • Evaluation of Kate/Jim’s systems and retrofit in EA scenarios • Explanation of how the EA methodology’s framework to structure DMC EA and guide its various EA modelling/ documentation activities Scene 3 Meeting Outcomes: Agreed EA Methodology & EA Documentation Framework Next Meeting Goals: Understand how the 2 outcomes are used to document the current & future models of Jim + Kate’s business units/departments

  38. Given the mandate to develop 2 segments of DMC’s EA. First deliverable: business case & EA dev project plan Produced • Inferred Business Case Contents • Chosen Jim/Kate’s areas as the 2 EA segments because they cover several lines of business (LoB) • Analyse DMC’s strategic goals, business activities & technology capabilities • Specified the 2 areas’ business and ICT requirements DMC EA Plan: Financial & Production Segments Report EATeam • Inferred Methodology Contents • EA Development timeline • EA modelling steps involved • Planning & decision making information specs, including preferred documents’ formats • Selection of EA modelling techniques & tools • EA scenarios – Current & Several Future views • Agreement of planning assumptions • Evaluation of Kate/Jim’s systems and retrofit in EA scenarios • Explanation of how the EA methodology’s framework to structure DMC EA and guide its various EA modelling/ documentation activities This Meeting’s Goals Achieved: To Agree the proposed EA Methodology & EA Documentation Framework Scene 3

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