8 Business Drivers for 8 Business Drivers for Technology & Architecture Technology & Architecture decision makingdecision making

Mark CarrollMark CarrollArchitect AdvisorArchitect AdvisorMicrosoft ANZMicrosoft ANZ

Session: ISO5

Once upon a time ….Once upon a time ….

Once upon a time ….Once upon a time ….

Architecture / Technology Choice

Chooser

Once upon a time ….Once upon a time ….

Architecture / Technology Choice

Architecture / Technology Impact

ChooserProject

Manager

Once upon a time ….Once upon a time ….

Architecture / Technology Choice

Architecture / Technology Impact

ChooserProject

Manager

ProjectOwner

Once upon a time ….Once upon a time ….

Architecture / Technology Choice

Architecture / Technology Impact

ChooserProject

Manager

Once upon a time ….Once upon a time ….

?Architecture /

Technology ChoiceArchitecture /

Technology Impact

ChooserProject

Manager

Once upon a time ….Once upon a time ….

?Architecture /

Technology ChoiceArchitecture /

Technology Impact

ChooserProject

Manager

+

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Key Drivers for technology and Key Drivers for technology and related architecturerelated architecturedecision making decision making

Skills Availability

Third Party Product & Services availability

Tangible Costs

Customer requirements

User Functionality requirements

Standards & Methodology fit

Timeliness

Life Expectancy

Cost D

river

s Ind

ustry d

riversCustomer & user

benefit drivers

Skills Availability

Third Party Product & Services availability

Tangible Costs

Customer requirements

User Functionality requirements

Standards & Methodology fit

Timeliness

Life Expectancy

Cost D

river

s Ind

ustry d

riversCustomer & user

benefit drivers

“The right skills at the right price and at the right time.”

“The right services and complimentary products at the right time”

“The ability to operate with other standards compliant assets”

“Delivering what is ‘in scope’ for the sponsor who is paying.”

“Giving the user something they can interact with effectively .”

“Elapsed time from Pain to Gain .”

“How long is the choice going to be viable and supported .”

“Funds for procurement and funds flow within TCO .”

Skills availabilitySkills availability

What is this ?What is this ? ““The ability for you to acquire the necessary The ability for you to acquire the necessary

technology or architecture related skills at the technology or architecture related skills at the right price and at the right time.”right price and at the right time.”

Skills availabilitySkills availability

Good fit to this driver;Good fit to this driver; Easier to perform advance planning – skills Easier to perform advance planning – skills

closer to commodity status;closer to commodity status; Easier to smooth out unexpected ‘skill resource Easier to smooth out unexpected ‘skill resource

humps’ in your work schedule reducing risk of humps’ in your work schedule reducing risk of project and operational failure;project and operational failure;

Bad fit to this driver;Bad fit to this driver; Lack of emergency ‘resource’ increasing risk;Lack of emergency ‘resource’ increasing risk; Market tighter – you pay more increasing cost !Market tighter – you pay more increasing cost ! Low in-house incentive to acquire skills or retain Low in-house incentive to acquire skills or retain

once developed – staff not motivated;once developed – staff not motivated;

Third party product Third party product and services and services availabilityavailability

What is this ?What is this ? The availability of third party products The availability of third party products

that will help you get the job done that will help you get the job done along with the skills required to along with the skills required to establish and master them;establish and master them;

The availability of third party services The availability of third party services providers – anything from providers – anything from outsourcers to advisors;outsourcers to advisors;

Third party product Third party product and services and services availabilityavailability Good fit to this driver;Good fit to this driver;

Costs reduce and availability increases providing Costs reduce and availability increases providing more options for Project and operational more options for Project and operational managers;managers;

Bad fit to this driver;Bad fit to this driver; Fewer third parties in a market can lead to you Fewer third parties in a market can lead to you

being trapped or having costs ‘run away’;being trapped or having costs ‘run away’; More pressure on in-house providers;More pressure on in-house providers; Reduced options for efficiency and cost Reduced options for efficiency and cost

recovery;recovery;

Standards & Standards & Methodology fitMethodology fit

What is this ?What is this ? Levels of compliance and ease of achieving Levels of compliance and ease of achieving

compliance to relevant IT & sector industry compliance to relevant IT & sector industry standards (eg: WS-I, BPEL, e-GIF)standards (eg: WS-I, BPEL, e-GIF)

Standards & Standards & Methodology fitMethodology fit

Good fit to this driver ;Good fit to this driver ; Compliance ‘tick’ – good for market / sponsor Compliance ‘tick’ – good for market / sponsor

buy-in, Enhances credibility;buy-in, Enhances credibility; Your ‘stuff’ is more likely to effectively work Your ‘stuff’ is more likely to effectively work

with and leverage other ‘stuff’ developed by with and leverage other ‘stuff’ developed by others.others.

Standards & Standards & Methodology fitMethodology fit

Bad fit to this driver;Bad fit to this driver; You get ‘caned’ for not paying attention to You get ‘caned’ for not paying attention to

industry standards;industry standards; You end up with ‘stuff’ that finds it You end up with ‘stuff’ that finds it

increasingly difficult to work with other ‘stuff’ increasingly difficult to work with other ‘stuff’ that does support the Standards and that does support the Standards and methodology fitmethodology fit

Customer Customer requirementsrequirements What is this ?What is this ?

Ability of the technology / architecture to Ability of the technology / architecture to implement what the person sponsoring or implement what the person sponsoring or financing the project or operational area wants financing the project or operational area wants in terms of functionality; in terms of functionality;

Includes security, integration, business Includes security, integration, business process, look & feel and a host of others;process, look & feel and a host of others;

Difficult to keep track of !Difficult to keep track of ! Requirements definitions can provide a Requirements definitions can provide a

‘scoped’ view of what is required but often ‘scoped’ view of what is required but often miss out on the bigger picture.miss out on the bigger picture.

Customer Customer requirementsrequirements Why is this important ?Why is this important ?

Obviously sponsors want their objectives met by means of Obviously sponsors want their objectives met by means of their requirements being satisfied;their requirements being satisfied;

When sponsors requirements cannot be met expensive When sponsors requirements cannot be met expensive workarounds (often with accompanying scope creep) are workarounds (often with accompanying scope creep) are often used to achieve a compromise between what the often used to achieve a compromise between what the technology / architecture is capable of and what is technology / architecture is capable of and what is ‘required’;‘required’;

Very subtle but true – if you can meet the customers Very subtle but true – if you can meet the customers requirements and the undertaking fails it is more difficult requirements and the undertaking fails it is more difficult for them to shift the blame on to you and your technology / for them to shift the blame on to you and your technology / architecture choice;architecture choice;

Customer Customer requirementsrequirements Good fit to this driver;Good fit to this driver;

Less risk of scope creep, expensive Less risk of scope creep, expensive compromises or abandonment;compromises or abandonment;

Bad fit to this driver;Bad fit to this driver; Significant credibility problems for the Significant credibility problems for the

technology / architecture choice and related technology / architecture choice and related parties;parties;

Good place to shift blame for failure;Good place to shift blame for failure;

User functionality User functionality requirementsrequirements What is this ?What is this ?

Giving the user something that they can Giving the user something that they can understand and use effectively;understand and use effectively;

Understanding is achieved typically via Understanding is achieved typically via simplicity and the use of common standards & simplicity and the use of common standards & conventions (eg: common look and feel by conventions (eg: common look and feel by both ‘house’ and wider standards) ;both ‘house’ and wider standards) ;

Key concept : Users are not always Key concept : Users are not always customers – users ‘use’ the technology or customers – users ‘use’ the technology or architecture customers pay for it;architecture customers pay for it;

User functionality User functionality requirementsrequirements

Why is this important ?Why is this important ? Premise 1: Easy to use systems don’t just look Premise 1: Easy to use systems don’t just look

good they feel good to the user;good they feel good to the user; Premise 2 : When things go wrong easy to use Premise 2 : When things go wrong easy to use

systems either recover gracefully or tell you what systems either recover gracefully or tell you what needs to be done to get things going again.needs to be done to get things going again.

Both premises reduce costs associated with lack Both premises reduce costs associated with lack of user acceptance and other related costs of user acceptance and other related costs including downtime.. including downtime..

User functionality User functionality requirementsrequirements

Good fit to this driver;Good fit to this driver; Goodwill , Credibility & accompanied greater lee Goodwill , Credibility & accompanied greater lee

way for other areas [read problems];way for other areas [read problems];

Bad fit to this driver;Bad fit to this driver; Pushback from users can be detrimental to the Pushback from users can be detrimental to the

implementation regardless of any other merits it implementation regardless of any other merits it displays;displays;

As the most ‘visible’ part of the implementation it As the most ‘visible’ part of the implementation it has the greatest impact on quality perceptions;has the greatest impact on quality perceptions;

TimelinessTimeliness

What is this ?What is this ? New - Ability to build & deploy quickly to point New - Ability to build & deploy quickly to point

of productive utilisation;of productive utilisation; Existing - Ability to change & deploy quickly Existing - Ability to change & deploy quickly

to point of productive utilisation or problem to point of productive utilisation or problem remediation or both;remediation or both;

Productive utilisation by the business is the Productive utilisation by the business is the key point here – covers from ‘pain’ to ‘gain’.key point here – covers from ‘pain’ to ‘gain’.

Key Concept: Pain to Gain;Key Concept: Pain to Gain;

TimelinessTimeliness

Why is this important ?Why is this important ? Has direct impact on productivity and ROI Has direct impact on productivity and ROI

measures when in place;measures when in place; Has a more subtle but still major impact on Has a more subtle but still major impact on

Customer & User satisfaction;Customer & User satisfaction; Enterprise agility;Enterprise agility;

TimelinessTimeliness

Good fit to this driver;Good fit to this driver; Technology or architecture perceived as agile Technology or architecture perceived as agile

and productive (TIME / Cost / Quality);and productive (TIME / Cost / Quality);

Bad fit to this driver;Bad fit to this driver; Perceptions of expense, poor quality, over Perceptions of expense, poor quality, over

complication and the use of technology / complication and the use of technology / architecture that lacks focus on business;architecture that lacks focus on business;

‘‘Blame fly-paper’ syndrome;Blame fly-paper’ syndrome;

Life ExpectancyLife Expectancy

What is this ?What is this ? How long is your technology going to be How long is your technology going to be

‘supported’ by the supplying vendor or ‘supported’ by the supplying vendor or community;community;

How accepted are the key tenets beneath your How accepted are the key tenets beneath your architecture;architecture;

Life ExpectancyLife Expectancy

Why is this important ?Why is this important ? If you cannot rely on others for affordable If you cannot rely on others for affordable

support you are going to be either stuck with support you are going to be either stuck with an ‘orphan’ or an expensive self help exercise;an ‘orphan’ or an expensive self help exercise;

More subtle but still major – what is the true More subtle but still major – what is the true cost (both up front and in terms of opportunity cost (both up front and in terms of opportunity costs) of having something that is not receiving costs) of having something that is not receiving incremental functionality and critical support ;incremental functionality and critical support ;

Life expectancyLife expectancy

Good fit for this driver;Good fit for this driver; When the business case question is asked (and it will) you When the business case question is asked (and it will) you

will have a credible answer;will have a credible answer; Reduced risk of expensive workarounds / substitution Reduced risk of expensive workarounds / substitution

sooner or later;sooner or later; Bad fit for this driver;Bad fit for this driver;

Significant risk of failure or expense introduced;Significant risk of failure or expense introduced; Significant risk of other drivers being ‘turned’ from good to Significant risk of other drivers being ‘turned’ from good to

bad – for example skills availability as skills exit a dying bad – for example skills availability as skills exit a dying market for an obsolete technology or approach;market for an obsolete technology or approach;

Tangible CostsTangible Costs

What is this ?What is this ? Costs of procurement + ( ( Annualised Cost of Costs of procurement + ( ( Annualised Cost of

ownership * Expected life in years ) * 1.x ) + ownership * Expected life in years ) * 1.x ) + Estimated cost of retirement;Estimated cost of retirement;

Many use an annualised cost that takes into Many use an annualised cost that takes into account NPV or other accepted cash flow account NPV or other accepted cash flow approach; (either discounted or non-discounted)approach; (either discounted or non-discounted)

Some include identified opportunity costs;Some include identified opportunity costs;

Tangible costsTangible costs

Why is this important ?Why is this important ? Decision investment - obvious;Decision investment - obvious; More subtle but still major – what impact is More subtle but still major – what impact is

this going to have on aggregated IS/ IT spend this going to have on aggregated IS/ IT spend (how big a profile in the overall scheme) – this (how big a profile in the overall scheme) – this can drive the risk management approach in can drive the risk management approach in some organisations;some organisations;

Quantifiable hard accountability metrics can Quantifiable hard accountability metrics can be ‘career limiting or enhancing’;be ‘career limiting or enhancing’;

An Example of applying the 8 An Example of applying the 8 Drivers in the context of a Drivers in the context of a process:process:

Evaluation ProposalEvaluation Proposal

EvaluationEvaluation

ImplementationImplementation

RetireRetire

Review ( Upgrade, Review ( Upgrade, Replace, Retire, Reset Replace, Retire, Reset

) )

Technology Life cycle Technology Life cycle Management ProcessManagement Process

Evaluation ProposalEvaluation Proposal

EvaluationEvaluation

ImplementationImplementation

RetireRetire

Review ( Upgrade, Review ( Upgrade, Replace, Retire, Reset Replace, Retire, Reset

) )

EA Refers to 8 Drivers

Drivers applied to process

specified in EA

Business Case.

Example: IT Example: IT Delivery Delivery Architecture Architecture of the of the Enterprise Enterprise Architecture Architecture of Ministry of of Ministry of Education Education TISSL (New TISSL (New Zealand)Zealand)

A chain is as strong as ….A chain is as strong as ….

Call to ActionCall to Action

Evaluate your current approaches to technology Evaluate your current approaches to technology and architecture selection – can you identify and architecture selection – can you identify significant risks based around skills, timeliness, life significant risks based around skills, timeliness, life expectancy or other factors;expectancy or other factors;

Consider if some of the business drivers I’ve just Consider if some of the business drivers I’ve just outlined can help reduce those risks;outlined can help reduce those risks;

Do you have a robust process to apply your Do you have a robust process to apply your business drivers appropriately and consistently business drivers appropriately and consistently both to new and existing choices; both to new and existing choices;

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