9 years, 3 months ago

Open Group San Francisco (2012) – Day 1

This years Open Group Conference was held at San Francisco. Unfortunately, even if I was unable to be present at the event, I followed it closely thanks to twitter.

The conference is an exciting event for all enterprise architects because it lays out the current state of EA with its future orientations. These orientations of course will filter down and come to be implemented in Open Group’s products such as Togaf. They also set an outline for the trajectory for Opengroup’s vision of EA.

I would like to start out by thanking Tom Graves from Tetradian for consolidating all the tweets from the event. You can find them over here:

Tweets from Open Group Conference 2012 (Tom Graves / Tetradian)

I will be giving my thoughts and views on the key moments of the conference. They give a general sense on the direction in which EA is developing, the accomplishments and future hurdles.

Before starting off, a quick look at the personalities present ate the event. 

  • Allen Brown, the acting President and CEO the OpenGroup
  • Jeanne Ross from MIT Sloan’s CISR, a leading researcher in IT management and Enterprise Architecture
  • Celso Guiotoko, Managing director for Renault-Nissan IT & Information Services
  • Andy Mulholland, Global CTO for Capgemini
  • Lauren States, VP and CTO for Cloud Growth Initiatives with IBM
  • Brian Cameron, Executive Director at the Center for Enterprise Architecture, The Pennsylvania State University
  • Alan Hakimi, Senior Enterprise Architect and Worldwide Community Lead for EA at Microsoft
  • Henry Franken, CEO BizzDesign, and many others… 

 

The Importance of demonstrating value behind EA:

Many of the keynotes have focused on the importance of EA to demonstrate value to businesses and this from the very start. The main motivation behind this being deliverability! There is also a shift towards from “Value Chains” to “Value Cycles” in EA which brings us closer to a more business focused practice of EA. I’m planning to right a small article on this subject, so stay tuned!

Demonstrating value with thus undoubtedly take place through increasing exploitability of current capabilities, fostering new ones and measuring maturity and progress. This value should not only be measured and acted upon; it should also be heard about and seen by everybody. Value must be clearly perceived!

EA must also intervene on a strategic level with businesses so as to measure value from top to bottom.

Measuring maturity, ROI and value from and by EA will be among the key problems that architects will have to tackle.

Jeanne Ross:

  • togaf_r: Jeanne Ross: We have to make sure enterprise architecture delivers
  • nickmalik: Jeanne Ross keynote – role of the #entarch – To avoid application silos, we need to think in terms of capabilities
  • systemsflow: “Most companies grossly underuse their capabilities” (Jeane Ross) #entarch
  • Dana_Gardner: Enterprise architects need to evangelize use of improved systems after they build them, and show recurring value ASAP, says Ross
  • mcrugo: Jeanne Ross from mit explains the move from value chains to value cycles in EA
  • nickmalik: – J. Ross – Simply “build” the capabilities – not enough – #entarch  start with helping the business exploit current capabilities.
  • industryleaders: RT @IverPDX: Jeanne Ross of MIT:  EAs add business value by coaching business executives on defining strategy #entarch

Allen Brown:

  • systemsflow: Perception is reality.  If #entarch adds value, but nobody hears it, did the tree fall?
  • stevenunn: Allen Brown, The Open Group CEO: “Enterprise Architects must not only deliver value, but BE SEEN to deliver value”.

Example of demonstrating value – Renault Nissan through: (Celso Guitoko)

1)       BEST – Business Alignment, Enterprise Architecture, Selective Sourcing, Technology Simplification!

2)       Vitesse – Value Innovation Technology, Simplification, Service Excellence

  • Dana_Gardner: Business value at top of IT principles for Nissan, information as asset comes next, then reduce complexity, says Guiotoko #entarch
  • lmelsted: Nissan’s IT based on BEST: Biz Alignment, Ent Arch, Selective Sourcing, Tech Simplification
  • Dana_Gardner: For Guiotoko here’s what works BEST=Business alignment, Enterprise architecture, Selective sourcing, Technology simplification
  • nadsmat2diworld: B.E.S.T. Business alignment, Enterprise Architecture, Selective Sourcing, Technological Simplification. Nissan. #entarch
  • Dana_Gardner: BEST did this for Nissan: Cost per user went from 1.09 to 0.63 on their metrics scale. Wow. #entarch
  • mikejwalker: Using #entarch Nissan reduced cost per user from 1.09 to .63, 230k return, with 404 applications reduced
  • stevenunn: Celso Guiotoko, Nissan CIO: Approach to alliance with Renault was to look at each org separately, and then take a view across both
  • stevenunn: Celso Guiotoko, Nissan CIO: Vitesse program now underway in Nissan: Value Innovation Technology,  Simplification, Service Excellence

Andy Mulhollan:

  • Dana_Gardner: Corporations are purely metrics driven, and IT must advance to that reality, says Mulholland #entarch

Lauren States:

  • stevenunn: Lauren States, IBM: Transformation of IBM through EA has cut operating costs by about $1.5bn ! #entarch
  • Dana_Gardner: #IBM using cloud extensively internally, with lots of big metrics on savings and benefits, says IBM’s States #entarch #cloud
  • mikejwalker: IBM reduces their application portfolio by 2/3 with cloud transformation #entarch

Brian Cameron:

  • stevenunn: Brian Cameron, Center for EA, Penn State University presenting on ROI, value measurement & best practices for the enterprise #entarch
  • systemsflow: Brian Cameron, Penn State Center for #entarch doing research on an EA maturity framework that is not IT centric.  Publishing soon.
  • theopengroup: In Penn State study, ROI was the most popular financial metric used by EAs #entarch #EAvaluemeasurement
  • mikejwalker: Penn State research says ROI is most popular value measure BUT is the worst one to use. #entarch
  • systemsflow: Half the orgs surveyed in Penn State Center for #entarch study have no EA measurement practice in place.

IT is only a small part of EA – the inside out and the outside In

One of the most important ideas, that appeared regularly during the conference, is the fact that EA is “much more than IT”. CIOs and the business in general still unfortunately view EA as a mere IT practice. EA primary goal remains business alignment thus EA is much closer to the business than IT. Clearly this will take some time to gain traction and he will all clearly need to work hard to change the mindset EA currently has.

Andy Mulholland states that there is a key difference between IT and businesses. “IT is Inside Out focused, looking at the problems within the company only whereas the business looks at problems outside-in”. I completely agree with this fact, IT is always preoccupied by the way it functions. Decisions are always take from the current capabilities of IT. Where as businesses evolve from under outside constraints like the market, etc. EA’s purpose is to act as a transmission line between businesses and IT so that business needs are also felt directly by  IT. And if this transmission must be efficient, EA must be placed on the business side.

Of course this raises a question: Who should EA answer to? Answer to follow…

Jeanne Ross:

  • Dana_Gardner: Enterprise architects need to provide “single source of truth” to all business stakeholders, make the information flow well, say Ross
  • theopengroup: .@USAA has an Enterprise Strategy & Planning group – partners with IT and sits on the business side working with senior executives
  • theopengroup: #Entarch role in business value: Help senior execs clarify biz goals; identify architectural capability that can be readily exploited // Present options and their implications for business goals; build capabilities incrementally #entarch #jeanneross
  • industryleaders: RT @IverPDX: Jeanne Ross of MIT:  EAs add business value by coaching business executives on defining strategy #entarch
  • Dave_van_Gelder: Why is EA constantly related to IT and CIO’s?
  • industryleaders: @Dave_van_Gelder It is not only about IT its about a holistic approach its about business strategyand execution

Andy Mulholland:

  • mikejwalker: IT is Inside Out focused, looking at the problems within the company only wheras the business looks at problems Outside In. #entarch
  • mikejwalker: TOGAF EA Methods has to accept anew model  of traditional Inside Out to a TOGAF complemented by a Outside In model #entarch #TOGAF
  • Dana_Gardner: Governance models are the key to re-integration required of inside and outside services, says Mulholland #entarch

Stuart Boardman:

  • systemsflow: Stuart Boardman: “#entarch is more effective if it is outside of IT.”

EA should not report to the CIO but vice-versa

One of the most recurring problems for architects is the fact they are not properly supported by CIOs. To this we can add the difference in approach (see previous point). Finding the proper governing body for EA remains a tricky question. There now seems to be a clear paradigm shift: placing EA above the CIO and IT with strategic planning. This is coherent with the role that EA is expected to play, but making the shift in companies is not going to be easy. EA’s most prominent advocates are still the CIOs and businesses still don’t view it as one of their own. So even if I believe that this is the right way of Enterprise Architecture, we are still quite some distance away from achieving this.

Jeanne Ross:

  • Dana_Gardner: #USAA, as example, created enterprise strategy group aside IT, to organize transformation better (and IT loved it), says Ross
  • theopengroup: “Some day CIOs will report to the architect – that’s the way it ought to be” #entarch
  • stevenunn: Jeanne Ross: A great CIO is the best PR agency for enterprise architects. BUT, one day the CIO will report to the Chief Architect!
  • mikejwalker: One day the CIO will report to Enteprise Architecture Jeanne Ross #entarch
  • Dana_Gardner: “Someday CIOs will report to the enterprise architect, because that’s the way it should be,” says MIT’s Ross, to applause
  • nickmalik: J. Ross – best PR for #entarch is a great CIO but EA needs to build good comm skills and focus on business value of capabilities

Celso Guiotoko

  • stevenunn: Celso Guiotoko, Nissan CIO: IT organization now reports to corporate planning. Very helpful!

Data management will play an increasingly important role in EA

One of the main challenges that EA will soon be facing will be the need to tame “Data”. Data management and information architecture will start to play a significant role in EA.

Jeanne Ross:

  • Dana_Gardner: Quality of data, speed of data refresh as top priorities will help enterprise architects rise in performance appreciation, says Ross
  • stevenunn: Jeanne Ross: Commonwealth Bank started by improving access to its data, fixing data issues along the way, rather than in isolation
  • Dana_Gardner: Even most successful companies are just learning to do analytics well, and strong operations came first, says Ross.
  • stevenunn: Lauren States, IBM: CMOs are underprepared for data explosion & recognize need to invest in & integrate technology & analytics
  • mikejwalker: #IBM highlighting their C-Suite Study – Highlights the CIO surveyhttp://www-935.ibm.com/services/c-suite/cio/study.html #entarch

Recognising and fostering Enterprise architects

The need a more specialized expertise has also been identified. Enterprise architects are no longer just a title that you get after passing a certification but a unique set of skills and know-hows that have to be grown and recognized. You can’t make an architect out of anybody!

Jeanne Ross:

  • stevenunn: Jeanne Ross: in response to where do u find gr8 architects? “Mostly by growing them: taking smart people & giving them opportunities”
  • nickmalik: J. Ross – good #entarch is grown not made – we need to take smart people and give them opportunities to grow + good education
  • brendabizz: At #ogSFO Ross says u must grow talented people:training smart, passionate people,train them and use talented vendor resources

« Too much money » = Bad EA

A well known truth, too much money is bad for EA J.

Jeanne Ross :

  • Dana_Gardner: “If you have a lot of money, don’t worry about enterprise architecture,” says MIT’s Ross. #Entarch
  • nickmalik: companies with “too much money” have terrible #entarch and business process arch – J. Ross
  • theopengroup: “Investment banking is an example of the worst #entarch. Cannot impose discipline if your org has too much money.” #JeanneRoss

New market for EA for small companies

As EA mature more and more, smaller organizations are also beginning to see the benefits. Unfortunately their needs aren’t still catered to. There is an untapped market for EA. And frameworks, governance methods, etc. have to be adapted to meet this growing demand.

 

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