@ Kotinurmi, Soininen, Mäntylä 1 SoberIT Software Business and Engineering Institute HELSINKI UNIVERSITY OF TECHNOLOGY Road to Enterprise Architecture Paavo Kotinurmi T-86.5141 Enterprise Systems Architecture 21.9.2005 SoberIT Software Business and Engineering Institute HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä Case article ”Who killed the virtual case file” Article describes the phases of an IT project that was eventually scrapped (170 M$ project, 105 M$ worth of unusable code) FBI lacked the enterprise architecture ”Enterprise architecture describes in high level an organizations mission and operations and how it organizes and uses technology to accomplish its tasks, and how IT system is structured and designed to achieve those objectives. Besides describing how the organization operates currently, the enterprise architecture also states how it wants to operate in the future, and includes a transition plan for getting there.”
Transcript
@ Kotinurmi, Soininen, Mäntylä1
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY
Road to Enterprise Architecture
Paavo Kotinurmi
T-86.5141 Enterprise Systems Architecture
21.9.2005
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Case article ”Who killed the virtual case file”
Article describes the phases of an IT project that was eventually
scrapped (170 M$ project, 105 M$ worth of unusable code)
FBI lacked the enterprise architecture
”Enterprise architecture describes in high level an organizations
mission and operations and how it organizes and uses
technology to accomplish its tasks, and how IT system is
structured and designed to achieve those objectives. Besides
describing how the organization operates currently, the
enterprise architecture also states how it wants to operate in the
future, and includes a transition plan for getting there.”
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Contents
Motivation
Breakdown of the ESI Process
Investigation and Planning
Deliverables
Special Issues
Methods – some process modelling aspects
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Breakdown of the ESI Process
The basic activities of the enterprise integration/
architecture process can be characterised as follows:
Investigation and planning
Rationalisation
Automatisation
Integration
Iteration
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Enterprise Systems Integration Process
Investigation and planning:
study the present state of the operations of the
enterprise
assess their capability
set objectives for improvement
plan actions to be undertaken
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Enterprise Systems Integration Process
Investigation and planning
Rationalisation
eliminate all unnecessary, non-value-adding
activities
and all unnecessary waste of resources in whichever
form (time, money, materials, personnel);
reorganise and regroup operations and functions
to facilitate improved, wasteless mode of operation.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Example: current manual business process
Postal service
Company B
Company A
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Enterprise Systems Integration Process
Investigation and planning
Rationalisation
Automatisation
replace or support manual operations occurring in the
various functions by automated, mostly information
technology based, processes
data transfer need high (lots of data), frequency of data
transfer (volume) is high, risk of human errors is high
Automation/integration is more likely needed
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Automatic process
Business Document is standardized message encoded using XML or EDI
Reliable messaging =“postal service”
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Enterprise Systems Integration Process
Investigation and planning
Rationalisation
Automatisation
Integration
various functions are merged or interfaced
by means of various tools and techniques of
information technology
(data bases, message level integration (EDI or XML),
common functions).
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Enterprise Systems Integration Process
Investigation and planningRationalisationAutomatisationIntegrationIterate
The integration process is never ending: the life-cycle dynamics of the company and its products continuously
offer challenges and opportunities for the enterprise integrator
the development of the available Information and Communication
Technologies (ICT) and other technologies affects solutions. E.g.
Service Oriented Architecture (SOA) and Web Services (WS) are new
technologies that are more and more used nowadays
Therefore, the integration process must be an iterative,
continuous strategic process of an enterprise.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Contents
Motivation
Breakdown of the ESI Process
Investigation and Planning
Deliverables
Special Issues
Methods – some process modelling aspects
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Investigation and Planning
Project group of personnel from all functions and levels
reports to a control group, including active top management
special task groups for actual development tasks
often also external consultants
Basic objectives, business goals, and strategies
Top management’s vision is vital
I want that my company has real time information for use in operations
management and supply chain optimization
I want that customers will be capable of specifying their orders using
RosettaNet or EDI (electronic data interchange), and that order information is
propagated automatically down to production and suppliers.
I want to split the lead time for new product development to half.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Strategy development stages
Four stages familiar from system analysis:
Phase 1: Study of the present operations
Phase 2: Specification of future goals of the operations
Phase 3: Specification of the desired future state of the operations
Phase 4: Preparation of a plan for reaching the desired state.
Each phase
starts with more detailed planning on the execution of the phase
finishes with a critical assessment and evaluation of is results
presented to the control group of the project
alternative proposals should always be prepared.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Phase 1: Study the PresentObjective: finding problems/bottlenecks/complexity/non-productive work
Several systematic methods available:
role-playing “factory game”
SWOT analysis
numerical indicators analysis
benchmarking
interviews along the process flows
documents, literature, best practices, …
Result of the study of is best given using a suitable graphical modelling notation, such as a flow diagram, embellished with textual notes.
Identify problems, improvements, competitive advantages, objectives, ideas, possibilities, opinions, etc.
Modelling notation should focus on clarity and effective communication
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Strategy development stages
Phase 1: Study of the present operations
Phase 2: Specification of future goals of the
operations
Phase 3: Specification of the desired future state of the
operations
Phase 4: Preparation of a plan for reaching the desired
state.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Phase 2: Define Objectives (future goals)
Objectives which solve the problems identified, capitalizes strengths, eliminates weaknesses, exploits opportunities, and avoids threats.
Common objectives include:
less inventories (real time information)
effective control of the operations
improved total quality
improved timeliness
lower costs
increased flexibility
improved capability of producing different types of products andservices including customised variants
better customer service.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
An approach: analysing the competitive situation of the company
Begins by a breakdown of the competitive
capability of in each of company’s business
areas.
For instance, Hasse Enterprises, Inc.:
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Business area Basis for competitivity
Pumps Cost
Customer service
Measuring instruments
Quality
Design and construction — high technology
Washing machines Cost
Design and construction — functionality
Sanitary systems New products
Customer service
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HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
In the next stage: identify improvements which would improve significantly the competitive capability of the company on the market:
Businessarea
Basis forcompetitivity
Areas forimprovement
Pumps Cost General side costs
Capital in process
Rework, scrap
Customerservice
Availability
Delivery time
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Using a similar tabular form, we can now identify
concrete goals for the main areas of improvement:
Businessarea
Basis forcompetitivity
Strategic goals
Pumps Cost Reduce costs of indirect work to 5%of the total cost
Reduce capital cost of WIP to 4%of total cost
Raise % of good products to 100
Customerservice
Raise availability of products frominventory to 99%
Reduce delivery time of specialproducts to 2 weeks from order
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Define Objectives
Goals set must be bold
double the productivity
slash quality costs by half
cut the inventory levels by 80% while avoiding stock-outs
diminish lead time by 80%
diminish lead time for new products to a third.
Customers/market/competitiveness rather than technology-
biased
The methods for the present status of the processes are
suitable: factory games, SWOT analysis, analysis of numerical
indicators, benchmarking.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Strategy development stages
Phase 1: Study of the present operations
Phase 2: Specification of future goals of the operations
Phase 3: Specification of the desired future state of
the operations
Phase 4: Preparation of a plan for reaching the desired
state.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Phase 3: Synthesize Future Vision
A new mode of operation to fulfil the objectives defined
Concrete terms for clarity and communicability:how does the company “look like” in the future?
how does it compete on the market?
how does it communicate between customers, partners, suppliers,
and public?
how are its internal processes and supporting information systems
laid out, how do they operate?
how are its manufacturing systems designed?
what happens if nothing is done?
All stakeholders to learn, understand, discuss, and criticise the
result.
Methods of role-playing simulation etc. are applicable.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Strategy development stages
Phase 1: Study of the present operations
Phase 2: Specification of future goals of the operations
Phase 3: Specification of the desired future state of the
operations
Phase 4: Preparation of a plan for reaching the
desired state.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Phase 4: Plan Stepwise DevelopmentObjective: create a plan for realising the vision determined in Phase 3.
streamlining and simplifying present operations
local automation and integration efforts.
• Development split in stages that can be implemented in sequence
• Investments to basic integration infrastructure required
• Data integration activities must be based on a global integration
architecture, which defines the logical structure of the enterprise IT
systems in terms of functional subsystems, information flow between the
subsystems, and shared data bases.
• Present information systems may need to be changed or replaced; data
bases may need to be unified and reorganised.
The plan must include investments in education and training and
dissemination of information on the development. People use the
systems!
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Enterprise Systems Integration ProcessInvestigation and planning
Phase 1: Study the PresentE.g. “factory game”, SWOT analysis,benchmarking
Phase 2: Define ObjectivesE.g. double the productivity,diminish lead time by 80%
Phase 4: Plan Stepwise DevelopmentStages, integration infrastructure and architecture, information systems and data bases, potential technologies, cross checking
RationalisationAutomatisationIntegrationIterate
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Contents
Motivation
Breakdown of the ESI Process
Investigation and Planning
Deliverables
Special Issues
Methods – some process modelling aspects
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Deliverables of the ESI study
Investigation&planning task results constitute the ESI
strategy:
Present state of the company and its operations, with identified
strengths, weaknesses, opportunities, and threats.
Strategic goals for achieving competitive advantages.
Vision of goal state of the enterprise: processes, products,
architecture, action plan for realising the architecture.
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Characteristics of a finished ESI strategy
A balance between bold long-range goals and short-term
development actions
Motivation for investments both from short-term viewpoint
and long-term strategic goals
Principles for measuring progress of development
Principles of continuous revisions and improvements of the
integration strategy and integration development plans
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Characteristics of a finished ESI strategy
A realisable integration architecture addressing the
requirements of the enterprise (and only these)
Principles for migration towards integration, ensuring
smooth transition between present and future systems
(big bang vs. stepwise development)
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Characteristics of a finished ESI strategy
Built-in capabilities for success:
focus on central strategic issue
forcefully include actions which can bring early good
results
KISS principle
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Contents
Motivation
Breakdown of the ESI Process
Investigation and Planning
Deliverables
Special Issues
Methods – some process modelling aspects
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Practical issues and questions
Do the hard parts first & The most dangerous assumptions
are the unstated ones
Is our company capable of implementing ESI?
If not, what should we do about it?
How can one identify and justify potential benefits of ESI?
How should an ESI team be set up?
How should one go about developing a model of
enterprise? What documentation techniques should we
use?
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Practical issues and questions
How much of the present database infrastructure of the company
can be preserved in the new systems through integration?
Can you understand the existing system? (How can you know,
you are building a better one)
Should we pick just one supplier for all information technology
and systems or combine the overall solution from pieces?
Where to incorporate the logic in the systems (e.g. where
processes are defined)? Where is the master data?
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Contents
Motivation
Breakdown of the ESI Process
Investigation and Planning
Deliverables
Special Issues
Methods – some modelling aspects
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Enterprise modelling
We have discussed developing strategic vision of
enterprise integration
Now techniques for implementing the activities
4.1 Business process modelling
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Objectives of Process Modelling
To improve the present state must be knownSpecifying goal stateIncluding partners, customers, main competitorsModel: Abstracted representation of reality
Faithfully essential characteristics of realityComplex
Simple and understandableLimit the scope
Suitable as a basis of inspection and analysisFormal models
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HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Process Characteristics
Process: end-to-end sequence of co-ordinated activities performed by
one or several agents for achieving a joint purpose
Characteristics of processes, for enterprise integration :
Information and material flow: the inputs and outputs of the process and its
steps
Effectiveness: the quality of the process, measured in terms of some quality
characteristics of the output
Efficiency: how efficiently the process utilises the inputs and other resources to
generate output
Cycle time: the time the process takes to produce one unit of output
Lead time: the time it takes to transform one input to corresponding output
Cost: the expense of the process, e.g. measured per unit of output
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Models of company and its operation are toolsinvestigate:
actual operations of the companyhow they are co-ordinatedhow they pass information and material to each otherwhat and how much resources they consume
rationalise:documentation of improved processeseducation of personnelanalysis and simulation
automate:checklists or guides for human execution of the processbasis of process or project management.
integrate:drive computerised processes controlling information and material flow between processes by “executable” modelsbasis of process measuring and tracking;collect and analyse quality information
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HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Process modelling objectives and goals
Facilitate human understanding and
communication
Support process improvement
Support process management
Automated guidance in performing process
Automated execution support
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
Modelling notations according to the use
organisation charts: the formal structure of the operations and personnel
economic models: budgets and economic indicators, e.g. in a spreadsheet
information flow diagrams: indicates how operative information is handled and
flows in the form of forms, messages, instructions, drawings, directives and even
personal communication during a sequence of related processes
layout models: charts of the physical location of various types of functions and
resources, particularly manufacturing units
process diagrams: material flow during various stages of product realisation
miniature models: models of machines, processes, building structures
simulation models: computer models for studying dynamic performance of a target
process, including factory models representing the physical production facilities and
their layout, and economical models used in “enterprise simulators”, popular in
business management education
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntylä
4+1 View model of software architecture
Logical view Developmentview
Process view Physical view
Scenarios
Source: Kruchten, 1995
SoberITSoftware Business and Engineering Institute
HELSINKI UNIVERSITY OF TECHNOLOGY @ Kotinurmi, Soininen, Mäntyläe.g. DATA
ENTERPRISE ARCHITECTURE - A FRAMEWORK
Builder
SCOPE(CONTEXTUAL)
MODEL(CONCEPTUAL)
ENTERPRISE
Designer
SYSTEMMODEL(LOGICAL)
TECHNOLOGYMODEL(PHYSICAL)
DETAILEDREPRESEN- TATIONS(OUT-OF- CONTEXT)
Sub-Contractor
FUNCTIONINGENTERPRISE
DATA FUNCTION NETWORK
e.g. Data Definition
Ent = FieldReln = Address
e.g. Physical Data Model
Ent = Segment/Table/etc.Reln = Pointer/Key/etc.
e.g. Logical Data Model
Ent = Data EntityReln = Data Relationship
e.g. Semantic Model
Ent = Business EntityReln = Business Relationship
List of Things Importantto the Business
ENTITY = Class ofBusiness Thing
List of Processes theBusiness Performs
Function = Class ofBusiness Process
e.g. Application Architecture
I/O = User ViewsProc .= Application Function
e.g. System Design
I/O = Data Elements/SetsProc.= Computer Function
e.g. Program
I/O = Control BlockProc.= Language Stmt
e.g. FUNCTION
e.g. Business Process Model
Proc. = Business ProcessI/O = Business Resources
List of Locations in which the Business Operates
Node = Major BusinessLocation
e.g. Business Logistics System
Node = Business LocationLink = Business Linkage
e.g. Distributed System
Node = I/S Function(Processor, Storage, etc)Link = Line Characteristics
