Presentation from Unicom Enterprise Architecture Forum, London, February 24th 2011

1. ENTERPRISE ARCHITECTURE Richard Veryard February 2011 Managing Complexity using Enterprise Architecture

2. 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

3. Traditional EA doctrines Information Engineering Zachman Framework

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

5. 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

6. Simple Interaction Matrix Source MSDN

7. Clustered Matrix Source MSDN

8. Simple Interaction Protocol (SIP) 8 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

9. 9 Comparing SIP to Traditional EA SIP Traditional - Higher success rates. - Reduced cost. - Increased agility. - Cloud optimized. Roger Sessions ObjectWatch

10. 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

11. Three Dimensions of EA Maturity

12. Information Gathering Decision & Policy WIGO (what is going on) Learning& Development Knowledge& Memory EA as organizational intelligence 12 Sense-Making Communication & Collaboration

13. Responding to customer demand …

14. 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

15. 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

16. Aspects of Modernism

17. Limitations of modernism Difficulties handling complexity, emergence and self-organization. Lack of agility, flexibility, evolution. Constrains organizational learning. No explicit treatment of holistic architectural properties such as balance and harmony No room for pluralism and human values

18. Exploration of new ideas? “Hybrid thinking drives change via the co-creative exploration of meaningful human-centred experiences when confronting complex, intractable issues.” Gartner 2010 “Holistic enterprise change” TOGAF 2009

19. 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

20. 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)

21. 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

22. 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

23. On The Nature of Order Christopher Alexander The Nature of Order

24. To be simplified Exogenously defined linkages Weak (not convincing) Strong (convincing) exploration Strong (evident to the player) just-in-time transfer (exploitation) Endogenously defined linkages incremental improvement convergence-divergence asymmetric collapse Weak (not evident to the player) imposition The relationship of the actor/ player to the larger context ‘linkages’ = action-consequence pairing: strategies: ‘strong’ = convinced that they are right ‘weak’ = not convinced Good-enough ground for mechanism design that is convincing to a rational and intelligent actor… The right answer only emerges retrospectively An expert would be expected to know the right answer Complex: Cause-and-effect are only coherent in retrospect and do not repeat Knowable: Cause-and-effect separated over time and space NB read-across to Hutchins’ Cognition in the Wild disorder Known: Cause-and-effect relations repeatable, perceivable and predictable Chaotic: No cause-and-effect relationships perceivable Everyone knows the right answer There is no right answer 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

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

26. Viable Systems Model (Stafford Beer)Conceptual View

27. Viable Systems Model (Stafford Beer)Engineering View

28. Capability Requirement

29. Governance Cycle

30. Boisot I-space

31. Pace Layering

32. Information Gathering Decision & Policy WIGO (what is going on) Learning& Development Knowledge& Memory Organizational intelligence 32 Sense-Making Communication & Collaboration

33. Stratification of Models

34. Example 1: Defence Procurement “The Ministry of Defence has a substantially overheated equipment programme, with too many types of equipment being ordered for too large a range of tasks at too high a specification. This programme is unaffordable on any likely projection of future budgets.” [MOD 2009] Each piece of equipment may have many different uses and affordances, in various use-contexts. Traditional planning and cost accounting cannot cope with this complexity. Description Issues

35. Example 2: Bank DataWarehousing Two kinds of problem looking for market inefficiencies that could create investment opportunities for the bank managing the ‘value at risk’ associated with existing investments

36. Generalized schema

37. Example 3: Mobile Ecosystem Direct demand - focus on the device Indirect demand – focus on the customer ecosystem Nokia Apple

38. Example 4: Mashup Ecosystem

39. Example 5: Healthcare See presentation by Prof Bernie Cohen

40. 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

41. … and more EA Forum (Unicom) February 24 September ?? EA/OI Briefing (Unicom) April 13 RVsoapbox.BlogSpot.com asymmetricdesign.com Future Events Other Material and Links