Industry Perspective: Great Performances, Moderated by George Paras, A&G Editor-in-Chief;

Guest speakers: Mike J. Walker, Principal Architect, Microsoft, Aleks Buterman, Founder, SenseAgility, Tim Westbrock, Managing Director EAdirections, Paul Preiss, CEO, Iasa

Session abstract: “What is it about certain EA teams that makes them great? In this session, a panel of industry experts will share their real-world observations on how and why a few EA teams consistently deliver value to their organizations, while others struggle.

The panelists will explore and debate some of the key attributes of top performing teams, those who have mastered the balancing act required for success; teams that understand the big picture, who gather data, synthesize and analyze, create appropriate recommendations, and provide actionable guidance that informs the rest of their organization. Their influence helps shape how organizations address everything from large scale transformational change to understanding how to optimize their portfolios.

Join our panelists as they discuss their observations, take questions from the audience, and share examples of the people, processes, structures, and approaches that EA teams use to deliver Great Performances.”

George Paras introducing the session: Traits and characteristics of top-performing enterprise architecture teams. Panelists will introduce self, and answer “what does top performing mean to you?”

Mike Walker, Microsoft: High-performance for EA is having business conversation to maximize and amplify business results.

Aleks Buterman, Sense Agility: Quantify value.  Not [arm-wave] value, but real discernable value.

Tim Westbrock, EA Directions: Trying to become more proactive, less reactive.

Paul Preiss, IASA: No such thing as a top-performing EA team.  There is a top-performing architecture team.  ”Semantic gap”. Ability to claim revenue or shareholder value.

Tim: difference between enterprise architecture the thing, including all domain architects, and enterprise architects.  There is generally an EA team.  The things they do to be top-performing are different from architecture teams.

Aleks: Likens enterprise architects to sabre-tooth tigers.  There is such a thing as an EA.

Mike: Challenge.  Our industry is really immature.  Have done a poor job defining what we do.  Mike challenges “Enterprise Architecture” as the brand for what we do.  [I agree.  I agree.  I agree again].

Paul: there is a reason why EA associated with ivory tower.  Paul is harping on all the other architects.  [Apparently, EAs give all the other architects a bad name.]

Mike: half agree with Paul.  We’ve mixed enterprise architecture with IT architecture.  We are impeding the end-job.  EA within IT becomes about managing IT assets.

Is there enterprise architecture today, really?  Perhaps not.  Should there be?  Yes.

Aleks: Difference between EA and tech architect is competitive advantage.  The EA needs to join several domains, and that’s where competitive advantage is found.

Tim: A problem with enterprise architecture is where our deliverables go.  They should be directed at executives.  However, often directed at solution teams.

The organizations that do the EA the best are actively engaged with the CIO, the board, the executives of the company.  Not “through” the CIO.  But, in the room.

Questions from the audience:

1. Where should EA function report?  Does it matter?  Is it CIO, COO, CEO?  Should it be federated?

Paul asks audience, how many report outside of IT.  About 10 hands of 300 were raised.  Paul asks, “what is the value that people come to EA for”?

Tim: Most EAs report to IT, because that is where EA started.  In IT, EA is only group with true enterprise view.

Mike: All up, there is a lack of accountability in IT.  All up, we haven’t done a good job earning business trust.  Great percent of projects fail.  Need incremental wins.  Need to add value.  Think in business context, business terms.

Paul: We’ve earned a seat at the table.  We haven’t claimed it.  Example, built e-commerce, but only claimed “we enabled marketing”.  Then, marketing received more money, and IT less money.

[2. Segue to EA Value question]

Aleks: in a large organization, can’t just claim seat at the table.  Need to earn it.

Aleks, need to market your value.  That needs to be quantifiable.  Use metrics like net present value (NPV).

Tim: Don’t think you quantify the value of enterprise architecture.  Don’t think EA has quantifiable value in itself.  Thinks EA value is in contribution to other initiatives, impact areas.

[Back to reporting]

Aleks: Board of directors. [I say, no]

Tim: No, information and technology should not report to the business.

Mike: Need to look at maturity of organization.  Different industries have different drivers: agility, first-mover, fostering innovation, etc].  Need to be pragmatic.  Should not prescribe.  Mike calls for a set of patterns for enterprise architecture, patterns that reflect industry.

Aleks: We have those patterns, EA as Strategy book (Ross, Weil).

Paul: Reporting structure is less important to an organization.  In most professions, the profession decides the reporting structure.  Profession is technology strategy.

[Semantic fight in here.]

Tim brings us back on track.  What should enterprise architects do to mature in profession?  Assume building models for strategists (Zachman rows 1 & 2).  Those models don’t get done in projects.  Tim’s advice, if you don’t have those models, build them.  Tim notes “model” is used in loose sense.

Mike: Picks up Tim’s thread, need to build and flex our communication muscles.  Enterprise architecture is less about IQ and more about EQ (emotional intelligence).

Our success hinges on our ability to communicate and evangelize, both our value prop and what’s best for the business.

Aleks: does your organization have an evidence based management culture?

Tim: (to Aleks) using “models” differently.  Tim, need to have conversation with execs on what do we need to change.  Hard to have that conversation without models, because the models facilitate conversation.

Paul: missing skills: human dynamics and business-technology strategy.

Aleks: think about environment you are in.  Don’t assume what worked at prior organization will work in current.

George: Tell me one thing audience should walk away with:

Mike: IQ to EQ focus.  Action-oriented.  Constantly focused on value.  Maximize and amplify business value for our stakeholders.

Paul: Connect your architect team.  All architects connected on skillset level.  Give them more than a tool.  Give them skills.

Tim: Spend time reading non-technical literature that is relevant to your business.

Posted by brenda michelson at 7:00 pm in enterprise architecture | Permalink | Comments(0)
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From Police to Partner: Transformation of EA at Cummins, Sherry Jordan, Portfolio Management, Enterprise Architecture, Cummins

Session abstract: From once being perceived by business leaders as operational support to now being viewed as business partners, the Enterprise Architecture area at Cummins is experiencing rapid transformation. Executives and staff at all levels of the organization are beginning to understand the benefits of their investments in centralized and standard architecture. One example of this commitment is the investment in people, processes and technology required to set the foundation for utilizing IT as a key enabler to achieve strategic business objectives globally.

This presentation offers a glimpse into the experiences and vision that drives EA forward at Cummins. Key areas of focus include:

  • Business climate and drivers for EA
  • Pitfalls, challenges and risk points
  • Keys to success
  • The way forward (with Troux)

Cummins manufacturers diesel engines and related products.  Challenges of manufacturing sector: image and understanding of IT, maturity of the market.  Manufacturing views IT as ‘keeping the lights on’.

Drivers for EA at Cummins: Cost reduction, aligning with strategic business objects & eliminating redundant capabilities across functions.  Organizational structure makes the latter difficult.  [Ties back to VW presentation, structure & strategy must move together to execute].

EA Evolution (organization): Organized by business (decentralized); centralized shared service organizations, operating in silos; shared service organizations, working in common processes.

EA Mindset: Historically, EA seen as traffic cop.  The organization that constrains the business from doing their job.  Next, dedicated EA developed. Recognized need, but limited understanding of value.  Future: providing architecture ahead of the business and recognized as strategic partners.

Climate of EA Market: First, information focused on infrastructure. Then, pockets of focus. Now, business and investment focused tools.

Cummins has been building the EA foundation over the past year.  Sherry calls out Eric Christian, Cummins new Chief Architect.  [Eric has previously been at BofA and GM].

Cummins EA framework is based on Oracle’s EA Framework.  ”Providing technologies that enable the business to be competitive”.

Cummins went through an EA tool selection process, choose Troux.  Use Troux for TOGAF, Standards, Optimization and Alignment”.

Looking forward.  18-month roadmap:

- Standards management and architecture governance

- TOGAF, establish app portfolio, capability mapping

- enterprise IT planning, rationalization across enterprise

Future gains:

- reduced technologies (lower cost)

- improved efficiencies

- [something]

Police to Partner

- Business strategic objectives driving standards

- Information available further upstream

- Governance model inclusive of key stakeholders

Lessons Learned

- Executive support absolutely critcal

- Business users don’t care about operating systems or database systems

- Major transformation takes a long time, need to show value incrementally

- Ability to articulate EA value is essential

Editorial comment: It is always interesting to see new waves of Enterprise Architecture adoption by industry.  Shows the increasing dependence of technology for all businesses, and the increasing awareness of executives on the importance of technology investment management.  With cost/investment under control, organizations are better positioned to deliver strategic and tactical value to the business.

 

 

 

Posted by brenda michelson at 4:44 pm in enterprise architecture | Permalink | Comments(0)
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Architecting Standardization in a Complex Healthcare Organization, Sandy McCoy, Executive Director, Business Architecture, Kaiser Permanente

Session abstract: Technology-enabled health care requires an evolutionary approach to information management and protection of patient confidentiality. With the ever increasing usage of technology in the delivery of care, there is a heightened awareness and need for standards, well-defined architectures and transformational strategies.

In this session, Kaiser Permanente will be sharing some of their practical and innovative approaches to standardization and enterprise architectural concepts in a multi-billion dollar integrated care delivery system comprised of approximately 186,000 individuals serving over 8.6 million members.

Sandy opens by outlining the complexity aspects of Kaiser: Healthcare in general, ”The US Healthcare system is not a system at all.”

Also, the IT organization structure adds a complexity factor (National Solution Delivery, Regional Solution Delivery, IT Functional Organizations).  EA needs to work across these layers.

Sandy has a good slide on the disconnected silos of healthcare, such as Rx, Primary Care, Research, Nursing Homes, Hospitals, etc.

A reformed US Healthcare system would have a hub & spoke model, coordination/connection center, with all the silos as spokes.  This should result in lower costs and more positive health outcomes.  Sandy is speaking of the systemic problem, not the politics.

“Dramatic change is coming to medicine – it’s becoming an information-based, technology enabled business”. – Economist quote from April 2009.

Challenge is in connecting all of these systems.  Kaiser looking at semantic technology.

Kaiser’s vision: integrated model, scale and technology are providing the foundation for delivering truly real-time, personalized health care.  Kaiser’s focus is on prevention.

What does this mean for enterprise architecture?  Need to focus on the big ticket items.  EA wants to move from chaos to harmony.  Truth is, not a straight line.  It goes uphill, there are blind turns and it’s treacherous.

Kaiser started by focusing on standards.  Standards as a rallying point in a time and realm of chaos and confusion.

Visualization (using Troux tool) helped with standards understanding and adoption.  Could see implications in context of the portfolio, rather than a list in an Excel spreadsheet.

Within 6 months, had all technology standards implemented in Troux, complete with lifecycle information.  In those 6 months, started seeing the power of the tool.  Now, they’ve branched into other areas: business focused systems, such as radiation systems.

Beyond standards, Kaiser is using Troux to understand the total investment in IT (portfolio) and potentially identify rationalization opportunities.

Business architecture: business function model and business capability model.  In Troux, these are linked to application functions.  Surfaced redundancy in portfolios — 11 G/L systems — and information lineage issues.

This is not a massive effort.  They are taking an opportunistic approach.  Focus on the information officers who see value in utilizing enterprise architecture information.

Kaiser has developed a Repository capability map.  It’s their roadmap for using Troux, from application detail to business strategy.

Troux is not the answer to all things.  Still need to do architectural modeling, such as Visio, and then connect the information.  Sandy cautions not to use Troux as CMDB repository, etc.

Business architecture layer slide: people, capabilities, functions, information, applications, data stores. [Interesting notes: no strategy or process.  Also, application layer doesn't belong in "business architecture" model.  IMO.]

Lessons learned:

- Go Slow to go fast

- Do not market what you can’t support – refers to dependency on business to collect information required to support visualizations

- Don’t forget to practice what you preach

Posted by brenda michelson at 12:19 pm in business architecture, enterprise architecture | Permalink | Comments(0)
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Strategy Management Through Enterprise Architecture, Warren Ritchie, CIO, Volkswagen Group of America

Session abstract: “The strategy domain is comprised of two sub-functions: strategy formulation and strategy implementation. Corporate strategy researchers, consultants, and practitioners have traditionally placed a great deal of emphasis on the formulation function through evaluation of the fit between products and services within current and future markets.

However, the strategy implementation function gets far less notoriety, despite a generally accepted business adage that mediocre strategy brilliantly implemented will generally outperform brilliant strategy with a mediocre implementation. The simple truth seems to be that implementing strategy, and in particular strategic change, generally involves manipulating elements of the internal structure to get a different organizational outcome, which is a difficult task.

This keynote address will describe some of the major challenges of strategy implementation and propose that a robust internal enterprise architecture practice can play an essential role in corporate strategy management. It will also highlight the current Business Technology Management initiative that was launched in 2010 at the Volkswagen Group of America to drive the alignment of their business and technology architecture in an effort to respond more quickly to changes in the environment in which it operates.”

Dr. Warren Ritchie (Phd in Business Strategy) opens telling us his background is in business, not IT. He was always critical of IT. Then, he got “shipped there”.

Ritchie is going to tell us three stories: His personal journey with EA, Utility of EA in globalization concept and Speed to 1st Benefits of implementing an EA practice in VW of America.

Ritchie believes that EA is the missing piece in strategy management.

Strategy formulation is your intent. Strategy implementation is manipulating structure to deliver the intent. Interplay (continuous) of strategy, structure and performance.

Ritchie is speaking from his dissertation: Why don’t firms change strategy simultaneously. Started: “Small is fast, big is slow”. Learned: “Small is fast, medium is slow, Large = multi business = spinoff, which is fast”. So, Big can be Fast.

[Dissertation: "Organizational Inertia Within the U.S. Personal Computer Industry: Attributes Related to the Adoption of Internet Direct Sales Channels Between 1996 and 1999", Warren Ritchie, 2002.]

Learned that strategic choice is constrained by structure. Need to manipulate structure to successfully implement strategy.

Also, need to note that a change to structure will have an impact on product & services. So, don’t change structure without understanding intended impact on product and services.

Ritchie quotes Zachman, “you can’t change manage what you can’t describe”. Likes the overall construct of Zachman Framework. Says, a bit difficult to implement.

Why does strategic change fail? Not typically a failure on the to-be side. It’s a failure on the as-is side. Don’t properly understand the “as-is”.

Consultants bring what is wrong and what you need to be. BUT, miss what you need to do. What are the actions to implement the change. Again, calls out failure in describing “what is”, right now.

Ritchie has moved to second point, the Utility of EA in VW’s globalization concept. VW needs to standardize processes and systems. Need consistency across countries.

VW does have standardization in manufacturing, set of standard car “platforms” with configurations for different models. VW Touareg and Porsche Cayenne come off same line. Challenge is, how to apply this platform, configuration model to processes and systems. VW working to identify global services versus local services.

Third, Ritchie moves to managing strategy and enterprise architecture: speed to 1st benefits – VW of America. Not ultimate benefits, but 1st benefits.

VW started with a “failure is not an option” project. Not huge project, but important. Demonstrate real value.

Steps:

- layout the EA Framework

- populate repository as a trailing edge activity

- re-use repository content for later phases

- first efforts are labor intensive but returns start quickly

First project: VWGoA: Application management services (AMS) supplier transition. Goal 1: Transition Suppliers. Goal 2: Manage Knowledge

With old AMS, VW was knowledge dependent on the AMS supplier. Now, have knowledge (business architecture concepts and application concepts) in VW repository.

With this information, knowing what’s connected, VW is saving 15% in project costs.

Not only did EA investment help complete supplier transition, VW “is flat out better, because of it”. ROI for EA investment > 100 on risk mitigation alone.

Right now, benefits are continuing to grow. Sees the benefits flattening out over time. EA demand is high. Offering shared services to other VW divisions around globe.

“After initial VWGoA investment in EA, each incremental investment is resulting in disproportionately positive returns”

Investment in EA is an investment in knowledge.

During Q&A, Ritchie stated “never knew so much about my company until I worked in IT”.

 

Posted by brenda michelson at 11:13 am in enterprise architecture | Permalink | Comments(0)
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This week, I’m in warm and welcoming Austin TX for the Troux Worldwide Conference.  This conference is unique in a couple of perspectives.  First, there is no conference fee.  Troux has truly “invited” their customers to Austin to exchange insights and experiences practicing enterprise architecture and using the Troux product set.

Second, the agenda is jam packed with practitioner case studies.  I didn’t do the math, but the two-day show is probably 85% customer presentations.  It’s a veritable who’s who in successful enterprise architecture practices.  Take a look at the practitioner sessions:

  • Strategy Management Through Enterprise Architecture by Warren Ritchie, CIO, Volkswagen Group of America

  • Architecting Standardization in a Complex Healthcare Organization by Sandy McCoy, Executive Director, Business Architecture, Kaiser Permanente

  • Driving A Rapid Application Portfolio Rationalization Initiative at Alstom Power, Xavier Ruvilly, Enterprise Architect, Alstom Power

  • Investing for the Future through Strategy and Architecture at Cisco SystemsImran Qayyum, Enterprise Architect, Cisco

  • Leveraging EA To Drive Costs Down Across IT Operations by Björn Ekstedt, Head of Operations IT Supply, Vattenfall

  • A Step-by-Step Approach to Building EA value at AMD by Tannia Dobbins, IT Relationship Manager, AMD

  • From Police to Partner: Transformation of EA at Cummins by Sherry Jordan, Portfolio Management, Enterprise Architecture, Cummins

  • Real-World Application Rationalization at BAE Systems Enabled by TrouxAndrew Falciani, Chief Technology Architect , BAE Systems & Justin McPherson, PwC

  • Industry Perspective Panel: Moderated by George Paras, A&G Editor-in-Chief, featuring: Mike J. Walker, Principal Architect, Microsoft, Aleks Buterman, Founder, SenseAgility, Tim Westbrock, Managing Director EAdirections, Paul Preiss, CEO, Iasa

  • Great Expectations: Ready to Move the Dial in the New IT Landscape?, by Angela Yochem, IT Executive, Dell

  • Delivering Business Value with Enterprise Architecture, by Richard J Reese, VP Enterprise Architecture, Discover Financial Services; Winner of 2010 InfoWorld / Forrester Research Inc. Enterprise Architecture Award

  • Building the Business Case For EA, Moderated by Chuck Keffer, Troux; Guest speakers: J-P Renaud, Director of Global Network Services and Jennifer Pfaff, Director of Information Technology PMO and Management Support Services at Jacobs Engineering, Inc

  • Driving Business and IT Simplification at Boeing, by Don Meyer, Enterprise Architect, Boeing

  • Journey to the Business Side of Enterprise Architecture at USAA, by Michael Pemberton, Enterprise Architect, USAA

  • How EA has become a key to Business Agility at Dell, by Tom Philbin, Senior Enterprise Architect, Dell

  • A Practical Implementation of a Governance Lifecycle Model at USCIS, by Rick Nickerson, Senior Director, BRMi Consulting, Tom Boudreau, Lead Repository Developer, BRMi

  • Leaders Perspective: Great Conductors, Moderated by George Paras; Guest speakers:  Sandy McCoy, Executive Director, Business Architecture, Kaiser Permanente, Eric Christian Director, Global Architecture & Security, Cummins

Now, I bet you are saying you wish you were here.  Well, no worries.  I’ve got you covered.  The good folks at Troux invited me to attend the conference and pass along the highlights from the sessions.

I’ll be live-blogging and tweeting from the conference on Wednesday and Thursday.  I’ll also be taking some meetings to gather more information on Troux and insights on successful enterprise architecture practices.

As well, my friend Todd Biske is here.  I imagine he’ll blog some sessions as well.

Follow the conference on Twitter with #troux2011.

 

[Disclosure: Troux is not a client of Elemental Links.  However, Troux covered my flight and accommodations, so I could participate in the conference.]

 

 

Posted by brenda michelson at 8:17 am in business-IT integration, enterprise architecture | Permalink | Comments(1)
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Last week was primarily about Cloud Connect for me. However, I did fit in a few other things, including a short rant inspired by enterprise architecture pundits.

As you all know, I believe in the value of enterprise architecture, and even more strongly, I recognize the unique talents and contributions of real-world (‘street-smart’) enterprise architects.

At the same time, I’m increasingly concerned about the macro-direction of our field, as we continue to suffer ivory tower enterprise architecture punditry, rigid frameworks and endless philosophical waxing.

A couple of weeks ago, I attempted to inject a little action / purpose / outcome orientation in the enterprise architecture conversation with the following tweet:

“Today’s word for Enterprise Architects: Utilitarian [u-til-i-tar-i-an]: designed to be useful or practical rather than attractive.

Well, as you might expect, I got nit-picked parsed. That architecture by definition is attractive. [Aargh!] My intended point was “useful or practical”. Not easily defeated, I restated as follows:

“better stated, i think every needs to have a utilitarian perspective”

If you can’t answer “what is the purpose?”, that is an early warning indicator of folly, or worse. This “utilitarian” aspect is something I find myself circling back to more and more, especially in my work on business architecture.

Anyway, on Friday, after witnessing yet another definitional discussion on enterprise architecture, I tried to inject the utilitarian perspective again with the following on twitter:

“Ok, last time: It’s not what enterprise architecture IS that matters. It’s what enterprise architecture DOES that matters.

This “pithy” missive hit the mark with real-world enterprise architects and pundits alike.

So remember, next time someone tries to drag you down a “what & how” conversation on enterprise architecture, steer them to “why & outcomes“. It’ll be more productive, in the moment, and for your long-term practice.

 

Posted by brenda michelson at 5:24 pm in business architecture, enterprise architecture | Permalink | Comments(2)
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