A case study how enterprise architecture was used to produce a large-scale change program for a public sector authority in Finland

2. From Strategy to Large-scale
Change Program
-
Using Enterprise Architecture
A Case study about Finnish Tax Administration’s EA journey
Jussi Jutila
Lead Enterprise Architect
Isatalo
Jorma Myyryläinen
Senior Enterprise Architect
Tieto Ltd

3. About the Story
• Brief introduction
• Starting point
• Story building
• Leadership engagement and trust
• Audiences and languages
• Change program as result
• Where we are now
• Lessons learned

4. Companies
• Tieto Ltd
Tieto is the largest Nordic IT services
company providing full life-cycle
services for both private and public
sectors. The company has global
presence through its product
development business and the
delivery centers.
Key figures (ca.)
- Net sales 1700 M€
- Operating profit (EBIT) 90 M€
- Personnel 15000
Headquarters in Helsinki, Finland
Listed in OMX (Hel) and OMX (STO)
• Tietokarhu Ltd
A joint venture with Ministry of Finance
in Finland. Focused on partnership
with Finnish Tax Authority.
Key figures (ca.)
- Net sales 40 M€
- Operating profit (EBIT) 6 M€
- Personnel 300
Headquarters in Helsinki, Finland

5. Companies
• Finnish Tax Administration (FTA)
Tax revenue collected by the Tax Administration is the
most important source of revenue for the public
economy. The Tax Administration’s core task is to secure
the accrual of tax revenue and to reduce the tax gap.
FTA is a national organisation which collects taxes and
tax alike fees to all tax recipients: state, municipalities,
KELA, parishes, etc.
Key figures
Inside FTA (M€) 2013 2012
Costs 395.2 401.7
Incomes 6.0 6.0
Personnel on 31 December 5157 5322
Waste volumes, tonnes of CO2* 75 89
Revenue (M€) 2013 2012
State taxes 30904 30286
Municipalities 18501 19328
Parishes 991 976
Social Insurance Institution 3449 3446
Total 52689 50261

6. Signifigance in National Economy
• Some key figures
– Finnish Gross national product (GNP) ca. 160 000 M€
– State budget in Finland ca. 40 000 M€
• State income thru FTA ca. 31 000 M€
– 3/4 of state budget
• FTA costs ca. 425 M€ (operational)
– Total amount of taxes thru FTA ca. 51 000 M€
– 1/3 of GNP
Scope

7. Starting Point
• EA-Status at FTA and Public administration in Finland
– Strategic work done but EA work not done
– Strategic goals settled but no EA target state set
– MoF had stated its EA goals, methods and requirements
• Situation in FTA
– Separate and chopped processes
– Separate and overlapping databases
– Old legacy systems and siloed functions decelerate
development

8. Starting Point
• Legacy applications and their integration (systems viewpoint)
As-is state

9. Competing Agendas c.
Architecture driven Approach
Business needs
Business development,
enterprise architecture
Managed view of
needs, goals and
enterprise architecture
Squad based or
individual agendas, ad
hoc architecture
Business needs
Strongy
networked Loosly
networked
All networked
9

10. Choosing methods
Not supporting
roll out
Method ”over
boiling”
Target
domain
Description
style
Precise,
exact,
detailed
Coarce,
focusing to
essential
Searching for
decision making
Waiting for
implementation
Applicaple
methods
Ambiguity
Jungle of details

11. Story building
• We started with building an EA-framework.
– Applying “best” or “fittest” parts suitable for FTA
– Sources: Zachman, TOGAF, FEAR*)
• We continued applying suitable parts from methods
– Applying “best” or “fittest” parts suitable for FTA
– Sources TOGAF, FEAR, ValtIT**)
• Result was a storyline
– Illustriated path for progress
– Guidance from FTA strategy
– Continuum of agendas for workshops
*) FEAR: Research program at Jyväskylä University to produce a methodology, models, etc. for Finnish public administration
*) ValtIT: Finnish EA approach, methods and frameworks for state administration

12. Story building
• Our applied framework for FTA
Kokonais-
kehittämisen
malli
Toiminnan kohde
- VH:n toimintaympäristö
yhteiskunnassa
- VH:n palvelutarjooma
- Ydinprosessit ja -palvelut
- VH:n toimintamalli
- Toiminnan asettamat vaatimukset
Tietojen hallinnan periaatteet
- Tietotarpeet ja -tarjonta
- Tietojen hankinnan ja hallinnan
periaatteet
- Liiketoiminnan käsitteet
- Ontologiat ja sanastot
- Tietosuojan periaatteet
Kohdealueen tiedot
- Tietovarannot
- Tietojen elinkaaret
- Tietojen omistajuudet
- Tietojen vaihdot
- Tietomalli (loogiset rakenteet)
- Tietosuojan hallinta
Tietoresurssien rakenteet
- Tietovarastot
- Rakennemallit (XML-, TK-
skeemat, tiedostokuvaukset …)
- Tietosuojamekamismit
- Työkalut ja välineet
Tietojärjestelmäperiaatteet
- Valtiokonsernin
tietojärjestelmäpalvelut
- VH:n tietojärjestelmäpalvelut
- Tavoitetilan järjestelmäkartta
- Järjestelmien hankintapolitiikka
- Tietojärjestelmien vaatimukset
Järjestelmien loogiset rakenteet
- Looginen kokonaiskuva
- Loogiset järjestelmät, yhteydet
ja riippuvuudet
- Tietojärjestelmien elinkaaret
- Järjestelmäkuvaukset
Fyysiset rakenteet
- Sovellukset
- Sovellusten teknologia-
alustajako
- Viitearkkitehtuurit
- Liiketoiminta- ja informaatio-
palveluhakemistot
- Tietoturvakontrollit
Teknologiaperiaatteet
- Valtiokonsernin teknologiset
linjaukset ja palvelut
- Teknologioiden elinkaarilinjaukset
- VH:n teknologiat
- VH:n teknologiapalvelukartta
- Sovellettavat tekniset standardit
- Teknologiarajaukset
Teknologioiden looginen
kokonaisuus
- Looginen teknologiakokonaisuus
- Elinkaarien hallinta
- Teknologiapalvelut
- Tietoturvapalvelut
- Järjestelmähallintapalvelut
- Alustapalvelut
- Toimistoinfrastruktuuripalvelut
Fyysiset resurssit
- Fyysinen infrastruktuuri
- Tietoliikenneverkot
- Sijoittelu
- Teknologiamekanismit
- Tietoturvan mekanismit
- Soveltamisohjeisto
Toiminnan kuvaukset
- VH:n prosessikartta
- VH:n sisäinen palvelukartta
- Palvelukuvaukset elinkaarineen
- Pääprosessit
- Toiminnot
Toiminnan puitteet
- Toimintaorganisaatiot
- Työnkulut
- Järjestelmille asetettavat
vaatimukset
Lähtökohdat
Kontekstuaalinen
taso
”Miksi tehdään?”
Järjestelmänäkökulma
Tietojärjestelmäarkkitehtuuri
Teknologianäkökulma
Teknologia-arkkitehtuuri
Kokonaiskehittämisen näkökulmat
Liiketoimintanäkökulma
Toiminta-arkkitehtuuri
Informaationäkökulma
Tietoarkkitehtuuri
Linjaukset
Käsitteellinen
taso
”Mitätehdään?”
Ratkaisut
Looginentaso
”Kuinkatehdään?”
Resurssit
Fyysinen
Taso
”Millätehdään?”
Kokonaiskehittämisenvaiheet
Kokonaiskehittämisen lähtökohdat:
Yhteiskunnallinen ja kansainvälinen rooli, strategiat, visiot, lainsäädäntö,
(Liike-)toiminnan periaatteet ja vaatimukset sekä tavoitteet, hankintapolitiikat, kohdealueen rajaukset,
Teknologiset ja organisatoriset periaatteet ja rajaukset, kokonaiskehittämisen hallinta

13. Story building and framework
Guiding principles
Business Information Systems Technology
Practices
Practical methods and tools, working patterns and structures for decision
making and execution to ensure mutual path
Policies and
definitions per EA
viewpoint
It is essential to
communicate these
to be common and
concrete practices
through the whole
organisation
Guiding principles,
high level goals for
comprehensive
developement
• Structure of our framework and storyline’s essentials

14. Basic Continuum
Understanding
of present and
its history
Creating target state
and identifying
changes
Roadmap,
designing the
development
program
Toimeenpano
Understanding business = Business Architecture
Not a separate phase in the beginning but a continuos effort
ToimeenpanoImplementation
phase by phase
Includes also
infrastructure,
program
management,
governance etc.
Producing as-is
and to-be states
of architecture
and identifying
differences

15. Architecture Storyline
Interest
groups
Services Processes
Information
systems, IT
Progression
What is our value
chain? Who are
our partners,
information
producers and
consumers?
Which products
or services we
produce? What is
their structure?
What processes
we need?
Which systems
we need for
running
processes
How we should
proceed? In
which phases
etc.?

16. Story building
• Storyline made a continuum which concealed the
architectural methods and framework
– Top leadership team proceeded according to the storyline.
– Leaders came to “table set ready” to give their contribution
– Leaders were not “disturbed” with EA lingo
– Architects took care of methods
and architectural consistency and
structural strength

17. Leadership engagement
and trust
• From strategy to guiding ideas
• Translation from strategy into Structural requirements and
goals
• We spoke about familiar things in structural format
• They saw a path from strategy towards concrete functional to-
be state of their organisation
• We carried forward the work in workshops according our
storyline

18. Leadership engagement
and trust
• Achieving trust
• When top leadership team members saw progress with
their ideas coming alive, they engaged and started to trust
architecture as means in achieving the Change
• Composite of business profits with systems, technology and
infrastructure necessities was an “eye opener”.
• To avoid siloed enterprise structure and achieve one
single and solid enterprise

19. Combining business profit and
necessities
Basic capabilities
(Customer management, data flow management,
analytics, integration, process management)
Businesscapabilities
(Taxationmanagement,managementofpayments
andrefunds,variancehandling,customerservice)
cost efficiency, renewability
Effectivines,
Focus on customer
To-be state
Enablers
Solutionswhichbringtheprofit
Separation of business profits and
enablers anti-siloing and general
solutions

20. Audiences and languages
Operative
management
Customer’s
Architect
team
Architects
Sponsor
Information
Administration’s
management
Business
specialists
• Audiences
Top
leadership
team

21. Audiences and languages
Top
leadership
team
Operative
management
Customer’s
Architect
team
Architects
Sponsor
Information
Administration’s
management
Business
specialists
Leadership workshops
• Working with top leadership team

22. Audiences and languages
Top
leadership
team
Operative
management
Customer’s
Architect
team
Architects
Sponsor
Information
Administration’s
management
Business
specialists
Deepening workshops
• Drilling downwards from strategic issues

23. Audiences and languages
Top
leadership
team
Operative
management
Customer’s
Architect
team
Architects
Sponsor
Information
Administration’s
management
Business
specialists
Architecture work
guidance
• Architectural principalities, goals and policy making

24. Audiences and languages
Top
leadership
team
Operative
management
Customer’s
Architect
team
Architects
Sponsor
Information
Administration’s
management
Business
specialists
Workshop drafts
and summaries
• Questions to main workshops and finalising the results

25. Audiences and languages
Top
leadership
team
Operative
management
Customer’s
Architect
team
Architects
Sponsor
Information
Administration’s
management
Business
specialists
Informing and
Conversations
(engagement)
• Information and conversations to engage

26. Audiences and languages
Guiding principles
Business Information Systems Technology
Practices
Practical methods and tools, working patterns and structures for decision making and
execution to ensure mutual path
Leadership
workshops
Workshop drafts
and summaries,
Deepening workshops
Architecture work
guidance

27. Audiences and languages
• Right language to right people
– “Business language” to top leadership (what?)
• E.g. customer, value, profit, costs, program, portfolio, process maps,
business entities etc.
– Functional language to business specialists (how?)
• Process flows, workflows, data groups etc.
– ICT-lingo to operative people (with what?)
• E.g. ICT acronyms (BPML, XML etc.), system maps, platforms
– Architecture among architects (“big picture”)
• E.g. Modelling languages (E.g. Archimate), TOGAF, frameworks etc.

28. Change program as result
• To-be state architecture was approved
• After approval we produced a change program
– Prioritised development project items
– Development phases
– Dependences between projects were extremely important
– Road map reasoned by business case calculations
• Visualisation by metaphor from “railroad yard”

29. Development path as a “railway yard” diagramAs-isdatasystems
To-befunctionalities

30. Where we are now
• Customer made major business decision on investment
• The core of FTA’s taxation functionalities was put out to tender
– competitive bidding was won by 226 M€ bid
– Program has started on spring 2014 and is planned to get
finalised on 2019
• Process harmonisation started
• Architecture work continues
– Architecture work has been continued further and deeper
– New needs arises from ever changing society, national
economy and increasing international co-operation
– Growing taxation and economy ecosystems

31. Lessons learned
• It is essential to keep top leadership team involved all the time
– Business scope must be kept at right level
• Everything must be reasoned through benefits
– Personal and group benefits
– Benefits must be based on concrete information (e.g. by
business cases)
• Right language to right people
– EA is not a “lingua franca” but architect is interpreter
• Well prepared workshops give results and engage their
participants

32. Lessons learned
• Understandable story engages and carries on
• Focusing in audience’s abstraction level keeps up interest
• It is hard to get good architecture implemented in a proper way
– What we did wrong because it was not obvious to go straight
forward? (a lesson still to be learned)
– Storyline was lost
• Big vessels turn slowly (except upside down)
– People in those vessels change their opinions slowly

34. Thank You