Presentation at UNICOM EA Forum, September 29th 2011, London.

1. UNICOM EA FORUM Richard Veryard September 2011 Next Generation Enterprise Architecture

2. Future of EA? EA disappears as a unique function? EA moves “in total” to the business? EA remains focused on IT architecture? EA remains in IT but becomes more business focused? EA splits into multiple groups? Jeff Scott, Forrester, May 2010 Dion Hinchcliffe, ZDNet, August 2009

3. Two Contrasting Agendas for EA Business is simple Systems are complicated and inflexible Software applications Human activity systems Therefore simplify and unify the systems to align with the business Business is complex Systems are complicated and inflexible Therefore differentiate and integrate systems to help manage complexity. Simplify and Unify Differentiate and Integrate

4. Traditional EA doctrines Information Engineering Zachman Framework

5. Simplification and Unification Duplication Inconsistency Poor Interoperability Fragmentation Waste Risk Economics of scale Economics of scope Interoperability FROM TO

6. Achieving Simplification and Unification Quick and cheap solutions to local problems Tight project goals Stakeholders protecting established assets and arrangements Joined-up thinking The “Big Picture” Clustering Increase Cohesion Decrease Coupling Typical Challenges EA Weaponry

7. From Small Picture …

8. … to Bigger Picture

9. Simple Interaction Matrix Source MSDN

10. Clustered Matrix Source MSDN

11. Simple Interaction Protocol (SIP) 11 SIP brings a rational process to project optimization Reproducible Verifiable Optimal SIP has a mathematical foundation Set theory Complexity analysis Equivalence relations SIP drives simplicity The architecture with smallest collections of functionality that have the fewest dependencies. Simplest possible architecture that solves the problem. Roger Sessions ObjectWatch

12. 12 Comparing SIP to Traditional EA SIP Traditional - Higher success rates. - Reduced cost. - Increased agility. - Cloud optimized. Roger Sessions ObjectWatch

13. Enterprise Architecture as Strategy 1 2 ? Low differentiation High differentiation

14. Six Views of Business

15. Business Trends Converging Technology and systems Converging market power – globalization Increasing collaboration Diversity – market fragmentation – “Long Tail” Unbundling Asymmetric Demand Convergence Divergence Increasing Speed Increasing Scope Increasing Complexity Increasing Reach

16. Challenges Business Architecture Technology Architecture IT Agility Business Agility Technical System Interoperability Sociotechnical Interoperability Through-LifeValue for Money Value against Demand

17. Structural complexity of business Asymmetrical demand Business as a platform Coupling enterprise as loosely coupled network of sociotechnical components and services Edge organization Enterprise tempo activities with different characteristic tempi Ethical dilemmas conflicts of interest, moral hazard Multi-sided markets different stakeholder classes with complementary demands Organizational intelligence Viability command and control VSM

18. Dimensions of business complexity Delivery / Interface eCommerce, Web, Call Centre, Kiosk, SMS, Product Class/Consumer Enterprise, SME, Retail Consumer, Citizen, Intra-government 2-sided markets Commercial Channel Wholesale, Retail, Corporate, Partner, Direct Brand integration, mergers & acquisition Pricing Type Credit, eCommerce, Cash, Direct Debit Subscription, Fixed-Price, Pay-as-you-Go, Product Delivery Technology Managed Service, DVD, SaaS CD, DVD, Video on Demand

19. Value of business architecture Structural complexities in any business can critically affect business performance. To manage these structural complexities, we need to think architecturallyabout the business … … which will help us to overcome the structural inhibitors to business performance. An explicit business architecture should help coordinate specific forms of congruence and requisite variety across all human activity systems management information systems (IT) management reward systems (HR)

20. Two Contrasting Agendas for EA Simplify and Unify Business is simple Systems are complicated and inflexible Software applications Human activity systems Therefore simplify and unify the systems to align with the business Business is complex Systems are complicated and inflexible Therefore differentiate and integrate systems to help manage complexity. Differentiate and Integrate

21. Are your enterprise models complete?

22. Information Gathering Decision & Policy WIGO (what is going on) Learning& Development Knowledge& Memory Organizational intelligence 22 Sense-Making Communication & Collaboration

23. From Data Objects to Social Objects Databases Transaction Processing Content Management Social Networking Systems of Record Systems of Engagement

24. TOGAF 9 – Holistic Enterprise Change When you make changes to the business as well as changes to the systems, you may get more than you bargained for. When you make changes to the technical systems without making changes to the human systems, you may get less than you bargained for.

25. Planned versus Emergent Planned order (“taxis”) Directed, design-time Spontaneous order based on self-organization (“cosmos”) Emergent, run-time Planned Architecture Emergent Architecture

26. As business becomes more complex … Complicated or fragmented systems Exposes management weakness Customers’ economics of alignment outweigh suppliers’ economics of scale and scope Competitive advantage Requisite variety Costs Benefits

27. Enterprise or Ecosystem  a third agenda Looking outside the traditional enterprise Questions of corporate identity Indirect demand (end customer) From Affiliation to Alliance Value for whom? Scope Third Agenda

28. Dynamics of strategy (Kurtz & Snowden) AGENDA 3 Differentiated Integration Strong distributed AGENDA 2 Differentiate and Integrate Weak distributed AGENDA 1 Simplify and Unify Strong central Weak central Source: “The new dynamics of strategy: Sense-making in a complex and complicated World”. Kurtz and Snowden. IBM Systems Journal Vol 42, No 3 2003

29. As business becomes more complex … Complicated or fragmented systems Exposes management weakness Customers’ economics of alignment outweigh suppliers’ economics of scale and scope Competitive advantage Requisite variety Costs Benefits

30. Some alternative lenses for viewing structural complexity Viable Systems Method (Stafford Beer) I-Space (Max Boisot) Pace Layering (Frank Duffy, Stewart Brand) The Nature of Order (Alexander, Salingaros) Asymmetric Design (Philip Boxer, Bernie Cohen) Organizational Intelligence Asymmetric Leadership Structural Complexity Management Capability

31. Healthcare See presentation by Philip Boxer

32. Collaborative Composition in the Insurance Value Chain Orchestration Composition Context of Use Solution Providers Platform Providers 1 2 3 4 5 6 Server Platform Web Services and Messaging BusinessServices Back Office Front Office Life of Customer Service Pathways Referral Pathway broker end user LOB Features End User Experience supply side Collaborative Composition Asymmetric Demand Source: Veryard & Boxer 2005

33. Conclusions Broad range of complex practical problems Emerging methods for reasoning about differentiation and integration. New agenda for enterprise architecture Not suppressing complexity but managing complexity

34. Future Events Business Architecture Bootcamp November 22-23 Organizational Intelligence Workshop November 24 RVsoapbox.BlogSpot.com Future Events Other Material and Links