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Bridging enterprise-architecture and systems-thinking

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Bridging enterprise-architecture and systems-thinking

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Presentation at Open Day on Enterprise-Architecture and Systems-Thinking, London, 21 October 2104, for SCiO (Systems and Cybernetics in Organisations) http://scio.org.uk/

This used my development-work on the Enterprise Canvas framework as a worked-example of how we might create tools to bridge the gaps between enterprise-architecture and systems-thinking, in support of organisations' needs.

(This slidedeck also provides a useful overview and primer for Enterprise Canvas itself.)

Presentation at Open Day on Enterprise-Architecture and Systems-Thinking, London, 21 October 2104, for SCiO (Systems and Cybernetics in Organisations) http://scio.org.uk/

This used my development-work on the Enterprise Canvas framework as a worked-example of how we might create tools to bridge the gaps between enterprise-architecture and systems-thinking, in support of organisations' needs.

(This slidedeck also provides a useful overview and primer for Enterprise Canvas itself.)

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Bridging enterprise-architecture and systems-thinking

  1. 1. the futures of business Bridging enterprise-architecture and systems-thinking - an introduction to Enterprise Canvas Tom Graves, Tetradian Consulting: October 2014
  2. 2. An EA / systems-thinking tool… citizen (values) customer (value) investor (money etc) validation direction coordination guidance guidance before before supplier relations value-proposition during during supplier channels customer relations value-creation customer supplier customer channels after after value-outlay value-governance value-return investment dividend mgmt-info investor beneficiary
  3. 3. Setting the scene…
  4. 4. A core aim in EA and systems-thinking: things work better when they work together on purpose
  5. 5. For this to happen, we need guided-conversations that are actually everyone’s responsibility. What visual tools can we use to engage people in this?
  6. 6. Let’s begin, though, with a cautionary tale…
  7. 7. Motorola RAZR - a hugely innovative product (in 2003, anyway) - the outcome of a new type of innovation process CC-BY-NC joshb via Flickr
  8. 8. did Motorola forget their process for innovation? - mere tweaks to the product four years later, the product was gone – and almost the company too CC-BY-NC-ND gordon meivia Flickr
  9. 9. Keep focus on the process for tools-development, not just any one product…
  10. 10. Our task here: some frame or tool to guide conversations about things work better when they work together on purpose
  11. 11. …but we need to be careful not to get too focussed on the tool itself… keep ourselves open to the awareness that there are always other ways to do this!
  12. 12. Where do we start?
  13. 13. Short answer: start with what we already have ready to use in our ideas-toolkit…
  14. 14. Exploring the toolkit
  15. 15. On one side, there’s enterprise-architecture…
  16. 16. Enterprise-architecture… Zachman Framework
  17. 17. Enterprise-architecture… Business Architecture Data Architecture Applications Architecture (Information-Systems Architecture) Technology Architecture The ‘BDAT stack’
  18. 18. Enterprise-architecture… TOGAF (The Open Group Architecture Framework)
  19. 19. Enterprise-architecture… PRM (Performance Reference Model) from FEAF ([US] Federal Enterprise Architecture Framework)
  20. 20. Enterprise-architecture… Process-models (lots of them)
  21. 21. Enterprise-architecture… Capability-models (lots of them)
  22. 22. Enterprise-architecture… Information-models (lots of them)
  23. 23. Enterprise-architecture… Business-models (lots of them)
  24. 24. Enterprise-architecture… And computers, of course. (lots and lots and lots of them…)
  25. 25. Experience: mainstream ‘enterprise’-architecture maybe feels too IT-centric, too fragmenting and too incomplete?
  26. 26. My own starting-point was more with systems-thinking and other whole-context methods…
  27. 27. Systems-thinking… vision policy procedure work-instruction more abstract more concrete ISO9000 quality-system standards
  28. 28. Systems-thinking… Shared-purpose (vision and values) Integration (how the market links together) ‘Tetradian’ dimensions – physical ‘things’, virtual information, relational links between people, aspirational purpose Relationships (person-to-person) Transactions (products and services) Conversations (exchange of information)
  29. 29. Systems-thinking… Rotating between perspectives…
  30. 30. Systems-thinking… Modality – the MoSCoW set (“Must, Should, Could, can-Wait”) (or “Maybe, Sometimes, Could-be-possible, We-don’t-know”?) CC-BY-NC-SA thisisbossi via Flickr
  31. 31. Systems-thinking… Rotating between sensemaking-methods…
  32. 32. Systems-thinking… Systems-interdependency maps
  33. 33. Systems-thinking… Stafford Beer’s ‘Viable System Model’
  34. 34. Systems-thinking… Recursion and fractality in natural systems CC-BY-NC-SA gjshepherd via Flickr
  35. 35. Systems-thinking… Purpose (forming) strategy etc People (storming) HR etc Performance (adjourning) reporting etc Preparation (norming) scheduling etc Process (performing) production etc Strategy (‘feel’) Tactics (‘think’) Operations (‘do’) Extensions to Tuckman, and Five Element (wu-xing)
  36. 36. Systems-thinking… Values Policies Purpose Commitment Performance People Preparation Process Events Trust / Completions (start here) Success (Initiating-Events) (Completion-Events) Extensions to Five Element (wu-xing) on leadership, flow
  37. 37. Systems-thinking… externalised (objective) Scientist (‘outer truth’) uncharted swamp Believer (‘inner truth’) Technologist (‘outer value’) Artist (‘inner value’) truth (thought) value (feeling) internalised (subjective) Worldviews, deep-metaphors and modes of operation…
  38. 38. Systems-thinking… power-over power-with power-under power-from-within person A person B Models of power-interactions between people…
  39. 39. Systems-thinking… An emphasis on people, and spaces… CC-BY-ND alanclarkdesign via Flickr
  40. 40. Systems-thinking… Include the people-story…
  41. 41. Systems-thinking… An emphasis on the system as a whole… CC-BY-ND Kecko via Flickr
  42. 42. Systems-thinking… An emphasis on the system as a whole…CC-BY Fretro via Flickr
  43. 43. Experience: all seems very powerful, yet much of systems-thinking and related disciplines can be too ‘abstract’ for people to (want to) follow?
  44. 44. How might we link all of these EA and ST themes together, into something that will work and ‘make sense’ for everyday EA / ST practice?
  45. 45. (What follows is my synthesis of all that, to create Enterprise Canvas: what you’d do might be very different, depending on your experience and toolkit)
  46. 46. Remember the RAZR: focus on the process of synthesis more than the product of that synthesis…
  47. 47. Recursion: this process for developing a set of whole-of-context tools for EA and systems-thinking is itself an application of EA and systems-thinking
  48. 48. About service
  49. 49. Start with an assertion: Everything in the enterprise is or represents a service. (If so, we can describe everything in the same consistent way.)
  50. 50. Why anything happens A tension exists between what is, and what we want. The vision describes the desired-ends for action; values guide action, describing how success would feel.
  51. 51. The nature of service A service represents a means toward an end – ultimately, the desired-ends of the enterprise-vision.
  52. 52. Relations between services Services exchange value with each other, to help each service reach toward their respective vision and outcome.
  53. 53. Services serve. (That’s why they’re called ‘services’…) What they serve is the story, via exchange of value. (And if we get that right, they can sometimes make money, too.)
  54. 54. Values and value Each service sits at an intersection of values (vertical) and exchanges of value (horizontal)
  55. 55. How connection happens Value-flow is ‘horizontal’, but connection is first made by ‘vertical’ connection to shared-value and value-proposition
  56. 56. In more detail value-add (self) customer-facing supplier-facing Interactions during the main-transactions are preceded by set-up interactions (before), and typically followed by other wrap-up interactions such as payment (after). We can describe ‘child-services’ to support each of these.
  57. 57. Business-model as service Crossmap between Business Model Canvas and Enterprise Canvas
  58. 58. Supply-chain or value-web Services link together in chains or webs, as structured and/or unstructured processes, to deliver more complex and versatile composite-services.
  59. 59. Guidance for services
  60. 60. Keeping on track Use the Viable System Model (direction, coordination, validation) to describe service-relationships to keep this service on track to purpose and in sync with the whole.
  61. 61. Keeping on track: VSM Viable System Model, representing a fractal service
  62. 62. Keeping on track: VSM Viable System Model ‘systems’ are orthogonal to each other
  63. 63. Keeping on track: VSM Coordination and Validation don’t fit comfortably with Taylorism
  64. 64. Keeping on track: Direction management-services policy strategy direction This is the equivalents of VSM system-3, -4 and -5
  65. 65. Keeping on track: Direction interaction with management-services in parent-service above management-services policy strategy direction policy strategy direction interaction with management-services in child-services below Interactions with delivery-services (system-1), and recursion
  66. 66. Keeping on track: Coordination management-services policy strategy direction delivery-service develop the business change the business run the business delivery-service delivery-service Extended functions for equivalent of VSM system-2
  67. 67. The VSM algedonic links - ‘any-to-any’ connections - provide another kind of coordination. (Hard to show on diagrams, though.)
  68. 68. Keeping on track: Validation Major extensions / rethink for VSM system-3*
  69. 69. Validation-services: for each enterprise-value: - build awareness of the value - build capability to enact support - enact in practice at run-time - assess and review (for continual improvement)
  70. 70. Investors and beneficiaries
  71. 71. Investor and beneficiary These flows (of which only some types are monetary) are separate and distinct from the main value-flows.
  72. 72. Another useful assertion: Every enterprise is ‘for-profit’. (We need to think of ‘profit’ in a much broader sense than money alone.)
  73. 73. Investor and beneficiary shared-enterprise includes community, government, non-clients, anti-clients, others market includes competitors, supplier- regulators, others prospects customer-prospects supplier organisation customer includes investors, beneficiaries Investors and beneficiaries are often outside even of the market – yet are still part of the same shared-enterprise.
  74. 74. We need to consider investments and returns of every applicable type, to and from every type of stakeholder. (‘Applicable type’ is determined by the shared-enterprise values.)
  75. 75. Stakeholders in the enterprise A stakeholder in the story is anyone who can wield a sharp-pointed stake in your direction… CC-BY-NC-SA evilpeacock via Flickr (Hint: there are a lot more of them than you might at first think…)
  76. 76. Values, value-flow, money values (‘why’) (‘why’) value-flow (‘how’, ‘with-what’) (‘how’, ‘with-what’) profit (money and more) (money and more) These are distinct flows – don’t mix them up!
  77. 77. Doing it right: values-first… Values-first enables full connection with shared-enterprise
  78. 78. Doing it wrong: money-first… Money-first causes disconnect from shared-enterprise
  79. 79. Always start from values, not money.
  80. 80. If we focus on money, we lose track of value. If we focus on the ‘how’ of value, we lose track of the ‘why’ of values. Always start from the values. (Not the money.)
  81. 81. Layers of abstraction for service views
  82. 82. ‘Rows’ – layers of abstraction Enterprise Scope (context) other other Business-services other other Service-content supplier customer Service-design supplier customer Service-deployment supplier customer Action-record supplier customer Enterprise identity, vision and values Lists of key players and items in enterprise Roles / relations between / within key players / items Actions / transactions - implementation-independent Actions / transactions - implementation-specific Actions / transactions - operations-specific (action-plan) Actions / transactions - as actioned / completed (past) Row-numbering aligns with Zachman row-0 row-1 row-2 row-3 row-4 row-5 row-6
  83. 83. Each ‘row’ downward adds something more to the description. Example: row-3 is implementation-independent, row-4 is implementation-specific.
  84. 84. Beware of mixed layering E-commerce service front-end content server web-server (Apache) payments processing database (Oracle 9i) Fulfilment warehouse Dayton, Milton Ohio Keynes Marseilles Den Haag Example: Use solid-lines versus dashed-lines to represent row-3 / row-4 layer-differences in model and model-entities
  85. 85. Layers in Enterprise Canvas are layers of abstraction within the same scope - not arbitrary views into different parts of the scope, with arbitrary interconnections!
  86. 86. Row-0 example - ZapaMex “making feet happy” enterprise-vision as identified by ZapaMex Row-0 is solely the enterprise-vision and (optional) values
  87. 87. Row-1 example - ZapaMex “making feet happy” Who What How Where When Why Row-1 is simple lists from Zachman interrogatives, describing entities needed to make the enterprise happen
  88. 88. Row-2 example - ZapaMex “making feet happy” leather supplier ZapaMex designer overseas market-partner shoe-buyer medical partner competitor Row-2 starts to show relationships across the enterprise
  89. 89. Row-3 example - ZapaMex deliver shoes supplier customer receive materials to inventory make shoes store and ready shoes for shipment obtain materials An overly-simplistic row-3, based on transactions only
  90. 90. Row-3 example - ZapaMex procurement product-development + marketing receive materials to inventory make shoes sales and service store and ready shoes for shipment supplier customer accounts payable manage budget, operations accounts receivable identify and support suppliers obtain materials pay for materials identify and support customers deliver shoes be paid for shoes Describe more of the row-3 detail for service-delivery
  91. 91. Row-3 example - ZapaMex shared-enterprise gain / maintain enterprise reputation market gain / maintain market respect procurement product-development + marketing receive materials to inventory make shoes sales and service store and ready shoes for shipment gain supplier respect gain customer respect supplier customer accounts payable manage budget, operations accounts receivable identify and support suppliers obtain materials pay for materials identify and support customers deliver shoes be paid for shoes verify supplier satisfaction verify customer satisfaction verify market satisfaction verify enterprise satisfaction Expand row-3 modelling out to the full enterprise-context
  92. 92. Internal structures of services
  93. 93. Service-content We can view what services consist of in various ways - but eventually we’ll need the full detail
  94. 94. Service-content What How Where Who When Why In rows 1 and 2 (lists, and basic relations between entities), we can get away with the simple Zachman-interrogatives
  95. 95. Service-content Capabilities Locations Functions Assets Events Decisions For rows 2 and 3 (implementation-independent), we start to need to become more specific
  96. 96. Asset (‘What’) - a resource for which the enterprise acknowledges responsibility Composition: any combination of asset-dimensions.
  97. 97. Function (external of ‘How’) - external-facing interface, responsible for service-contracts, protocols, SLAs, etc; accepts and returns assets Composition: any combination of asset-dimensions.
  98. 98. Location (‘Where’) - a position within the terms of a specific schema Composition: any combination of asset-dimensions, plus time-as-location.
  99. 99. Capability (‘Who’ / ‘How’ / ‘What’) - the ability to do something: - agent enacts the capability - action asset-type acted upon - skill-level competence of the agent Composition: agent / action: asset-dimensions; skill-level: skills/decision dimensions; also recursively consists of other services
  100. 100. Event (‘When’) - trigger for a function and underlying capability Composition: any combination of asset-dimensions.
  101. 101. Decision / Reason (‘Why’) - sensemaking / decision-making for the service, and/or its type of guidance or governance Composition: any combination of decision/skills dimensions.
  102. 102. Function, capability and service service capabilities function (interface) Seen from outside, function and service may seem the same: service is the whole thing, function is just its external-interface
  103. 103. Service-content Starting in row-3, and downward to the real-world, we must have the full detail of how all the elements intersect
  104. 104. Asset dimensions Assets Asset-types What Phys Virtual Reln Aspn physical object, machine, geographic location etc information, software-application, IP-address etc link between people and/or to other tangible 'things' person-to-virtual or virtual-to virtual link (brand etc) Physical Virtual Relational Aspirational Most entities will consist of any appropriate combination – e.g. book is physical ‘thing’, contains information, is valued
  105. 105. Asset dimensions Shared-purpose (vision and values) Relationships (person-to-person) Transactions (products and services) Integration (how the market links together) Conversations (exchange of information) Asset-dimensions are essentially same as ‘tetradian’ dimensions
  106. 106. On relational-assets… “Our people are our greatest asset!” - the only time that people are ‘assets’ is when they are slaves… The relationship is the asset - not the person… CC-BY-NC-ND littlejoncollection via Flickr
  107. 107. Decision/skills dimensions Decisions simple, linear, true/false or limited-quantitative complicated, linear but allow for delays, feedback complex, ambiguous, non-linear, 'wild-problems' uniqueness, extreme-uncertainty, 'chaotic' Decision/skill-types Why Rules Algor’m Guideln Princpl Rule-based (trainee) Algorithmic (apprentice) Guidelines (journeyman) Principle-based (master) Most contexts will need to include combinations of these
  108. 108. Decision/skills dimensions Decision/skills dimensions much the same as SCAN domains
  109. 109. Service-content We can describe the content and structure of all services, using this as a graphical checklist. (Also illustrates that Zachman needs an entire extra dimension)
  110. 110. Products as exchanges between services
  111. 111. Exchanges Service Product Service Products are exchanged between services
  112. 112. A product is an outcome of service and the promise of future service.
  113. 113. Exchanges as assets Assets Asset-types What Phys Virtual Reln Aspn physical object, machine, geographic location etc information, software-application, IP-address etc link between people and/or to other tangible 'things' person-to-virtual or virtual-to virtual link (brand etc) Physical Virtual Relational Aspirational Products / exchanges are always (sets of) assets, composed of combinations of the asset-dimensions.
  114. 114. Views across service-boundary • Outside-out: Big-picture ‘world’, beyond even the market • Outside-in: View from ‘outside’ into organisation • Journey: Touchpoints between ‘outsider’ and organisation • Inside-out: View from the organisation’s perspective • Inside-in: View of the organisation to inside itself
  115. 115. Cycles of interaction between services
  116. 116. The service-cycle Shared-purpose defines the service-context boundary of ‘market’ in conventional business-models Reputation / trust Respect / relations Attention / conversation Transaction / exchange (profit / value-return) Completion Reaffirmed trust Overall flow of service and exchange follows a consistent cycle
  117. 117. Enterprise and service-cycle shared-enterprise includes community, government, non-clients, anti-clients, others market includes prospects, competitors, regulators, others transaction supplier organisation customer Reputation / trust Respect / relations Attention / conversation Transaction / exchange (profit / value-return) (completion) (reaffirmed trust) Much the same themes apply to shared-enterprise and market
  118. 118. Enterprise and service-cycles shared-enterprise gain / maintain enterprise reputation market gain / maintain market respect procurement product-development + marketing receive materials to inventory make shoes sales and service store and ready shoes for shipment gain supplier respect gain customer respect supplier customer accounts payable manage budget, operations accounts receivable identify and support suppliers obtain materials pay for materials identify and support customers deliver shoes be paid for shoes verify supplier satisfaction verify customer satisfaction verify market satisfaction verify enterprise satisfaction The service-cycle applies across all of these connections
  119. 119. Asset-dimensions and service-cycle shared-purpose (aspirational) relationship (relational) conversation (virtual) transaction (physical) (delivery of service) (completion of actions) (completion for provider) (reaffirmed trust) (completion for customer) (completion for enterprise) Different stages of the cycle emphasise different asset-types (overall cycle needs to complete for trust to be maintained)
  120. 120. Project-cycle and service-cycle Purpose (forming) strategy etc People (storming) HR etc Performance (adjourning) reporting etc Preparation (norming) scheduling etc Process (performing) production etc Every instance of service is also a project in its own right
  121. 121. Five Elements and enterprise An adaptation of Five Elements describes service-lifecycles
  122. 122. Five Elements and service-cycle Values Policies Purpose Commitment Performance People Preparation Process Events Trust / Completions (start here) Success (Initiating-Events) (Completion-Events) Identify the elements that help to pull from one phase to next
  123. 123. Service-cycle and Enterprise Canvas enterprise vision Trust value-proposition value-creation supplier / customer relations supplier / customer channels value-governance value-outlay / return Purpose People Perform ance Process Purpose People Preparation Process Trust Performance Values Policies Completions Values Policies Events Events Completions Success Success Prepara tion ‘Inside’ child-services of Enterprise Canvas shown to left; ‘outward-facing’ child-services shown to right.
  124. 124. Exchanges everywhere… Similar exchanges apply across every interchange and flow
  125. 125. Wrapping-up…
  126. 126. Restate that assertion: Everything in the enterprise is or represents a service. (If so, we can describe everything in the shared-enterprise with Enterprise Canvas.)
  127. 127. Remember the RAZR: don’t focus too much on the product (Enterprise Canvas), focus more on the process from which the product arose.
  128. 128. How would you merge EA and ST together, into something that will work and ‘make sense’ for everyday EA / ST practice?
  129. 129. Further information: Contact: Tom Graves Company: Tetradian Consulting Twitter: @tetradian ( http://twitter.com/tetradian ) Weblog: http://weblog.tetradian.com Slidedecks: http://www.slideshare.net/tetradian Publications: http://tetradianbooks.com and http://leanpub.com/u/tetradian Books: • The service-oriented enterprise: enterprise architecture and viable services (2009) • Mapping the enterprise: modelling the enterprise as services with the Enterprise Canvas (2010) • Everyday enterprise-architecture: sensemaking, strategy, structures and solutions (2010) • Doing enterprise-architecture: process and practice in the real enterprise (2009)

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