Creative Commons Sustainable IT Architecture Value of IS Intangile Assets February 2012 1...

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Sustainable IT Architecture

Value of IS IntangileAssets

February 2012

1


www.sustainableitarchitecture.com

Value of IS Intangible AssetsIntrinsic value of Data, Rules and Processes

By Pierre Bonnet - February, 2012Creative Commons


Slides deskSustainable IT Architecture



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Agenda

Set the sceneDefinition & key concepts

How to measure?A framework to assess IS Assets

Uses Cases

Use on the cloudA tool to implement the framework



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Speaker

• Manager Vietnamesse operations



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1. Set the scene



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IS Assets in the accounting landscape

Tangible assetsphysical existence

------machines

toolsreal estates

cashhardware

../..

Intangible assetsno physical existence

------brands

Intellectual propertiespatents

knowledge – working proceduresHR - Organizations

Customer relationships - PartnersSoftware (ERP, Legacy, SOA…)

Information System

Ref/Master DataBusiness RulesProcesses

IS Assets

Assets

Accounting,Chart of accounts

Innovative accounting approaches like IAS/IFRS and assets classifications such as Edvinsson & Malone, ARC IC reporting, The Danish Guidelines, Meritum, IC-

Rating, Wissensbilanz, the METI model, the IC-dVAL method, etc.



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IS Value based on three facets



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Academic example



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Innovative holistic point of view

Intrinsic Value

Use Value

Business Value

Analysis

Bad Bad Bad Worst situation => no real value within such a company

Good Bad Bad

Strange situation => where IS assets are good even though bad working procedures are used (use value). By the way, as the business value is bad either IS assets should be sold to another company, either the company should change its strategic business commitments

Good Good BadStrange situation => where IS assets and working procedures are good whereas business value is not important. This is a similar situation with the previous one

Good Bad Good

Strange situation => where IS assets are good even though bad working procedures are used (use value). Fortunately, the business value is good. The question raised should be: can these bad working procedures damage IS assets over time?

Bad Good GoodSuspect situation => because good outcomes in use value and business value hide a deeper weakness in IS assets (intrinsic value). This good situation in use and business values is unsustainable as the IS assets still remain bad

Bad Bad GoodStrange situation => where business value seems good even though bad working procedures are used (use value) and IS assets are weak (intrinsic value)

Bad Good Bad

Trap situation => where working procedures (use value) are good but IS assets (intrinsic value) and business value still remain bad. In reality, this company has a poor value and the bad quality of its IS assets will generate serious problems soon

Good Good Good Ideal situation => where all values are aligned



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IS Quality Indicators

Transparency

Au

dit

abili

ty

Agility

Masterin

gIT

Co

mp

lexitySecurity

sturdiness

Performance

Reversibility

Etc.

Reliability

Fault tolerance



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Applied to TOGAF ADM



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Applied toZachman



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2. How to measure?



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3 domains of assessment

• How data, rules and processes are documented?• What are the modeling procedures used?

Knowledge management

“You own a data model… but is it a low-level description or a semantic model?”

Quick illustrations



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• What are governance features available to usersto manage their IS Assets (data, rules, processes)?

Governance features

This part doesn’t deal with the quality of the organization but the quality of the governance features like: version management, permission management, authoring, etc.

“Do you manage you ref/master data with spreadsheets or with a more robust

solution bringing real governance features?”

Quick illustrations




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• What are governance features available to usersto manage their IS Assets (data, rules, processes)?

Governance features

This part doesn’t deal with the quality of the organization but the quality of the governance features like: version management, permission management, authoring, etc.

• How data, rules and processes are implemented? Are they based on MDM, BRMS and BPM?

IT management

“Do you manage you ref/master data with spreadsheets or with a more robust

solution bringing real governance features?”

“Are your IS Assets hard-coded or managed through business repositories

such as MDM, BRMS and BPM?”

Quick illustrations




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3 domains x 3 types of IS Assets

• This is the IS “Rating Tool matrix”

• It provides nine points of assessments

• Every case of this matrix holds a set of questions to conduct the rating

• Enterprise Architecture is employed at the level of the knowledge management• MDM, BRMS and BPM tools are employed at the level of the IT infrastructure



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Set of questions for every case

• About 100 questions to cover the whole matrix

• Each answer is ranked with help from 5 levels

• low• basic• medium• advanced• optimized

• Therefore about 500 points of measure



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Examples



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Examples



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List of questions applied to Data



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List of questions applied to Rules



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List of questions applied to Processes



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A: >=90% B: >=50% and <90% C: >=10% and <50% D: <10%

Letter #1 Letter #2 Letter #3

At the highest level of the consolidation

• Each letter gives a consolidated rank (performance level) for Data, Business Rules and Processes



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3. Uses cases



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B C C-

C- C- C

C- C- B

Data Rules Process

Kn

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Man

agem

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Go

vern

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Fu

nct

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ITIn

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Legacy rating

A A A

A C- C

A C- B

Data Rules Process

Target rating

Risk analysisapplied to the

transformation

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Use case



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Use case

D

B

C

A

Legacy

Milestones

Target

High risk

Medium risk



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Use case

Scenario 1

C

B-

A-

B

Legacy(2 systems)

B

A

Target

A

Scenario 2

Scenario 1

Scenario 2

Milestone 1 Milestone 2

High risk

Medium risk



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Use caseC

C

B

CA

B

B

C-

Legacy

Expected target

(V lifecycle)

A-

B

(V lifecycle)

Iteration 1

Iteration 2

Outcomes

Expected target

Outcomes



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Use case

C C B

D C C

D D D

C C B

D C C

D D D

Legacy Target

B C B

C C C

D C D

B C B

C C C

D C D

Règle 2

Règle 1-2

Règle 3

Règle 4

Rules 1

Rules 1-2

Rules 2

Rules 3

Rules 4



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4. Use on the cloud



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Use on the Cloud

IS RatingToolMDM

Rating by IS Assets

• Report on IS Assets values• Mastering operational risks• Required to enforce regulations compliance



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Use on the Cloud

Three domains of measure

Three types of IS Assets

Scale from Low to Optimized used to define situations of measure. Note the weight from 1 to 10



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Use on the Cloud

Question code and name Rating applied to existing system and targetDetail of how to rate

(see next)



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Use on the Cloud

Not to be updated when rating as this is the database knowledge stemming from

the IS Rating Tool----

This information is used to decide the rating depending on the situation of measure:

from low to optimized

Rating applied to existing system and to targeted one



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Use on the Cloud

In brackets:• (mark) applied to existing system• (mark) applied to targeted system

View by type of asset and category of

question

Click to see detailed assessment by question



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Dashboard



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Dashboard



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Contact details

www.pierre-bonnet.com

Thanks and see you soon!

pierre.orchestra

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