Presentation for Kororoit Institute's International Symposium and Workshop - Living Spaces for Change: Socio-technical knowledge of cities and regions. 29 February – 2 March 2012, North Melbourne, Australia

1. © 2012 ESAII
Enterprise Knowledge Architecture
for Community Action
Steve Else (PhD, PMP)
stevenelse@eaprincipals.com
Chairman at ESAII (Enterprise & Solution Architecture Institute International), Alexandria, VA
CEO/Chief Architect, EA Principals, Inc., Alexandria, VA, USA – http://eaprincipals.com
CEO of the Center for Public-Private Enterprise – http://cppe.org
William P. Hall (PhD)
william-hall@bigpond.com
Principal, EA Principals
Senior Fellow, Melbourne School of Engineering, University of Melbourne
President, Kororoit Institute Proponents and Supporters Association, Ltd. - http://kororoit.org
Presentation for Kororoit Institute International
Symposium and Workshop - Living Spaces for Change:
Socio-technical knowledge of cities and regions. 29
February – 2 March 2012, North Melbourne, Australia

2. © 2012 ESAII© 2012 ESAII – Slide 2
Presentation deals with two issues
Common pool resources face destruction/extinction
 = limited resources that can be extracted from a commons
by anyone
 without governance we face “the tragedy of the commons”
We propose that the discipline of Enterprise
Solutions Architecture offers a conceptual
framework and set of tools that can be used to
design systems for governing the commons
 Air
 Water
 Land
 Mineral resources
 Living space
 etc.

3. © 2012 ESAII© 2012 ESAII – Slide 3
The crisis we face
 We face looming crises threatening our well-being that relate to
the consumption of scarce common pool resources
 Depletion of non-renewable natural resources
 Unsustainable use of fertile soil and fresh water
 Human induced global warming and climate change
 Common pool resources are those to which more than one
individual has access, and where each person’s consumption
reduces availability of the resource to others.
 These crises are all consequences of simple economic phenomena
 Too many people on a small planet want too much
 We must change the way we exploit environmental resources
 If we don’t we face the possibly complete destruction of
ecosystems we depend on for survival
 Existing governments seem to be ineffective
 Economic science and enterprise knowledge architecture may
provide some solutions

4. © 2012 ESAII© 2012 ESAII – Slide 4
The core of the problem is simple
 “The tragedy of the commons”
Garrett Hardin 1968. The tragedy of the commons. Science Vol. 162, No 3859, pp. 1243-1248
 Sets out the consequences of an uncompromising economic logic governing
the harvesting of valuable but limited resources from a commons
• Unfettered individuals make a net profit of +1 for every unit of resource
they extract/harvest and use
• The future loss due to the removal of that unit is shared with all other
individuals extracting the resource for a net loss of -1/n
• It is always to the net economic advantage of every individual to continue
extracting the resource until it is totally consumed
• Situation grows worse if the resource’s unit value rises with scarcity
• Any individual refraining from extraction only benefits those who thus have
more resource to extract
 Only through some form of higher level control or governance
(e.g., social or despotic) over the scarce resource can its
extraction be limited to some socially beneficial level

5. Successfully governing the environment we
live in is difficult!
Government is the exercise of political authority over the
actions, affairs, etc, of a political unit, people, etc, as well as
the performance of certain functions for this unit or body;
the action of governing; political rule and administration.
In other words, government is the application of
socio/political constraints over individual action by some
higher level entity above the individual self.

6. © 2012 ESAII© 2012 ESAII – Slide 6
Government
centralized
management
Community self-
governance and
self-management
Co-management
Informing
Consulting
Cooperating
Communicating
Exchanging information
Advising
Acting (jointly, separately)
Partnering
Controlling
Coordinating
Government-based
management
Community-based
management
Community involvement
Government
centralized
management
Community self-
governance and
self-management
Co-management
Informing
Consulting
Cooperating
Communicating
Exchanging information
Advising
Acting (jointly, separately)
Partnering
Controlling
Coordinating
Government-based
management
Community-based
management
Community involvement
Government powers and resources vs local
knowledge
Trade offs
 local knowledge vs
scientific knowledge
 timely decision vs
adequate knowledge
 power to act vs will to
act

7. © 2012 ESAII© 2012 ESAII – Slide 7
 Elinor Ostrom (2009 Nobel Prize in Economic Science) for her
analysis of economic governance, especially the commons
 Understanding the different kinds of markets
 Types of goods
 Management economics
 Showed resources can be managed successfully by involving people who
use them in the governance process
Governing the commons
Impact of exploitation on depletion of resource
Difficulty
to exclude
potential
exploiters
Toll Goods
► theatre
► private clubs
► daycare centres
Private Goods
► food
► clothing
► automobile
LOW
Public Goods
► peaceful & secure community
► national defense
► knowledge
► fire protection
► weather forecasts
Common Pool Resources
► groundwater basins
► lakes
► fisheries
► forests
► air quality
HIGH
LOWHIGH
Impact of exploitation on depletion of resource
Difficulty
to exclude
potential
exploiters
Toll Goods
► theatre
► private clubs
► daycare centres
Private Goods
► food
► clothing
► automobile
LOW
Public Goods
► peaceful & secure community
► national defense
► knowledge
► fire protection
► weather forecasts
Common Pool Resources
► groundwater basins
► lakes
► fisheries
► forests
► air quality
HIGH
LOWHIGH

8. © 2012 ESAII© 2012 ESAII – Slide 8
Basic forms of resource governance
 Autocracy/despotism (Wikipedia):
 supreme political power to direct all state activities is concentrated in the hands
of one person (autocracy) or group (despotism), whose decisions are subject to
neither external legal restraints nor regularized mechanisms of popular control
 Gargantuan (R.C. Wood via V. Ostrom):
 formation of a single metropolitan government over all
 Multi-level governance (European Union via Wikipedia):
 many interacting authority structures work at various hierarchical levels in the
emergent global and local economy
 Polycentric
 (V Ostrom et al. 1961): traditional pattern of government in a metropolitan area
with its multiplicity of political jurisdictions
 (E Ostrom 2009): many centers of decision making that are formally independent
of each other. Whether they actually function independently, or instead
constitute an interdependent system of relations, is an empirical question in
particular cases
 Community-based resource management (Berkes 2006)
 local resource usage governed by local community
 Co-management (Berkes 2009):
 sharing of power and responsibility between the government and local resource
users

9. © 2012 ESAII© 2012 ESAII – Slide 9
Governance = making and imposing decisions
on communities with costs/benefits
 Herbert A. Simon (1978) Nobel Prize in Economic Science for
his pioneering research into the decision-making process within
economic organizations and the limits to rationality
 Perfect decisions only possible with perfect knowledge and
unlimited time to consider alternatives
 Real world requires “satisficing” – i.e., best guess given the available
knowledge and time, optimizing time, knowledge, and urgency
 Simon’s other work explored the architecture of hierarchically
complex systems
 Effective governance depends on
 Availability of appropriate knowledge
 Sufficient time for thinking before the next problem arises
 Capabilities to act
 Availability of resources to support action

10. © 2012 ESAII© 2012 ESAII – Slide 10
Ostrom’s model for environmental governance
ENVIRONMENTAL CONTINGENCIES & CONSTRAINTS IMPACT OF
REALIZED
OUTCOMES
RULES
RESPOND TO
CONSTRAINTS
 Successful governance structures based on sets of rules regulating exploiters to
ensure optimum management/exploitation of resource
 Rules respond to constraints
 Impacts are a consequences on realized outcomes of the application of the rules

11. © 2012 ESAII© 2012 ESAII – Slide 11
Ostrom’s resource governance model
Conceptual changes: common property resource
common pool resources
common property regimes
recognized 5 property types
• access, withdrawal, management, exclusion & alienation
Property rights systems for different resources mix all five
Concluded that successful systems followed certain practices (i.e.,
design principles) reflecting knowledge of particular environments
Clear user & resource boundaries
Congruence between benefits & costs
Regular monitoring of users & resource conditions
Graduated sanctions
Conflict resolution mechanisms
Minimal recognition of rights by government
Nested enterprises
Hoped, but failed, to find optimal set of rules used by robust &
successful systems of governance

12. Can we design better systems to
govern our vital resources?
Introducing the discipline of enterprise
architecture

13. © 2012 ESAII© 2012 ESAII – Slide 13
New tools extending human cognition
introduce radical new capabilities
“Instant” observation/communication/decision/action possible
Every smart phone in a hand is an intelligent sensing node also
capable of acting (via the hand)
• visual (photo & video sharing)
• auditory (Skype, etc.)
• spatial (geotagging)
• textual (twitter, email, etc.)
Polling & voting (e.g., SurveyMonkey)
Acting (e.g., Mechanical Turk)
Crowd sourcing tools for assembling knowledge
wiki
databases
Unlimited access to knowledge resources
cloud computing
Google Scholar / Google Translate
• > 50% world knowledge available free-on-line via author archiving
• > 95% available via research library subscriptions
– University of Melbourne accesses 105365 eJournals
– Scholar offers direct access from search result to university subscription
Etc. – beyond imagining

14. © 2012 ESAII© 2012 ESAII – Slide 14
What Is an Enterprise?
 A coherently definable organized entity that may be:
 Comprised of multiple interacting entities
 Unified by a common system of governance
 Working towards a common goal
 “A complex, adaptive, evolving system” (Mathet Consulting, Inc.)
 Existing in complex & changing environments (physical, economic, technological, and legal)
 constantly receives, uses, transforms, produces and distributes products and services that
have value to itself and its customers
 exhibits characteristics of hierarchical complexity, reactivity, adaptability, emergence,
downward and upward causation, self-organization, non-linear chaotic responses
 An organized, notionally bounded socio-technical system, addressing its internal /
external imperatives for business / survival (i.e., an “organic” entity), comprised of
 People (participants in the organization from time to time)
 Processes (automated, documented, tacit routines, etc.)
 Infrastructure (Web, ICT, physical plant, etc.)
 Organizational knowledge (i.e., contributing to organizational
structure/success)
• Knowledge as a deliverable product (e.g., technical documentation)
• Knowledge about and embodied in deliverable products
• Knowledge about and embodied in organizational processes and
infrastructure
• Members’ personal knowledge relating to their organizational roles
Organizational knowledge
Leave one of the legs
off, and the stool will
fall over

15. © 2012 ESAII© 2012 ESAII – Slide 15
Enterprises Exist in Contexts
No enterprise or subsidiary component can be
considered in isolation from its existential contexts
 What are its imperatives for continued existence?
• to maintain survival and wellbeing
• to maintain resource inputs necessary to survival
• to produce and distribute goods necessary to survival
• to survive environmental changes
• to minimize risk
• to maintain future wellbeing
 Organizational systems satisfying imperatives must track
continually changing contexts with observations, decisions and
actions
Beware of empty rhetoric and mismatches with real
imperatives

16. © 2012 ESAII© 2012 ESAII – Slide 16
Administrative/Decision Support Systems
 Making and implementing well-informed decisions responding to
imperatives is the essence of enterprise survival and success
 John Boyd’s OODA Loop process framework for adaptive decision
making
 Osinga PB. 2007. Science, Strategy and War: the Strategic Theory of John
Boyd, Routledge [also available free on line - http://tinyurl.com/26eqduv]
AO
OBSERVE
(Results of Test)
OBSERVATION
PARADIGMEXTERNAL
INFORMATION
CHANGING
CIRCUMSTANCES
UNFOLDING
ENVIRONMENTAL
RESULTS OF
ACTIONS
ORIENT
D
DECIDE
(Hypothesis)
O
CULTURE
PARADIGMS
PROCESSES
DNA
GENETIC
HERITAGE
MEMORY OF HISTORY
INPUT ANALYSIS
SYNTHESIS
ACT
(Test)
GUIDANCE AND CONTROL
PARADIGM
UNFOLDING INTERACTION
WITH EXTERNAL
ENVIRONMENT

17. © 2012 ESAII© 2012 ESAII – Slide 17
What is Enterprise Architecture?
 Adapted from “The art and science of designing and managing the
construction and implementation of buildings and other physical
structures”
 Rather than architecting physical structures enterprise
architecture is concerned with structures of dynamic systems
solving organizational problems
 Science
• The application of scientific understandings of complex dynamic systems to
architecting the structures of business systems and organizations
 Process
• To understand, specify and agree client/end user requirements
• Architectural design usually must address both feasibility and cost for the
builder, as well as function and usability for the client
• Construction and implementation usually involves specialized skills and
trades beyond those of the architect
 Practice
• To offer or render ethical professional services in connection with the
design and construction of structured systems, that are intended primarily
for human use.

18. © 2012 ESAII© 2012 ESAII – Slide 18
Where Does Enterprise Architecture Fit?
For understanding organizational systems
Strategic planning at the systems level to better meet
organizational imperatives (adaptation)
Re-engineering & transforming the enterprise
 Implementing and improving decision support systems (design &
management of data, information, and knowledge resources and
technology)
 Operations focus (work systems design & management)
 Managing changes?
 Monitoring results?
The scope of the enterprise architecture includes the
people, processes, information and technology of the
enterprise, and their relationships to one another and to
the external environment.

19. © 2012 ESAII© 2012 ESAII – Slide 19
 Framework: A structure for supporting or enclosing
something else, especially a skeletal support used as
the basis for something being constructed.
1. An external work platform; a scaffold.
2. A fundamental structure, as for a written work.
3. A set of assumptions, concepts, values, and practices that
constitutes a way of viewing reality.
 EA Framework
 All of these definitions apply to the kinds of frameworks used
in EA.
 The value of a framework is determined by the degree to
which it provides positively useful guidance to the architect,
minus the degree to which adherence to its strictures limits
the architect’s ability to see and think about possibly bigger
pictures.
 Frameworks may be applied at several architectural levels.
What Is an EA Framework?

20. © 2012 ESAII© 2012 ESAII – Slide 20
The Open Group’s Architectural Framework
(TOGAF9)

21. © 2012 ESAII© 2012 ESAII – Slide 21
TOGAF Provides an Architecture
Development Method
 Phases:
 Preliminary
• Charter & mobilization
 A. Architectural vision
• scope, stakeholders, vision & approvals
 B. Business architecture
• business architecture to support
agreed vision
 C. Information systems architecture
• includes data and application
architectures
 D. Technology architecture
 E. Opportunities & solutions
• delivery vehicles and implementation
planning
 F. Migration planning
• sequence of transition architectures
with implementation & migration plans
 G. Implementation governance
 H. Architecture change management
 Requirements management
(throughout)

22. © 2012 ESAII© 2012 ESAII – Slide 22
Managing the future
Defining the system(s) to be managed
 Identifying the problems
• e.g., too many people using too few limited resources
 Identifying the beneficiaries
• Urban and peri-urban populations
 Identifying the resources
• The urban ecosystem’s affordances for life (common pool
resources)
• “Living spaces for change”
 Identifying the “enterprise”
• Governments impacting the urban ecosystem
• People living in and impacting the ecosystem
Developing solutions
 Concepts, frameworks and methodologies exist
 Developing the political will to proceed
 Funding the work

23. © 2012 ESAII© 2012 ESAII – Slide 23
Without effective governance of the
commons this will all be lost
Visitors and residents on Bill’s 2 ha peri-urban property on the urban fringe:
Occasional echidnas and kangaroos, long-time resident grebes and young kookaburras
learning to laugh. The neighbors even saw a black swan land on the pond