The Next Big Leap: Everything is a Business Service

Since the 1970s, authors like Alvin Toffler[1], Daniel Bell[2] and John Naisbitt[3] have predicted the post-industrial society. They forecast the end of the industrial era and the dominance of services and information. This is not a new message[6]; the entire service provider industry has reformed around this idea, and in the USA today non-manufacturing industries account for almost 90 percent of the economy. Virtually every product today has a service component to it and many products have been transformed into services.

One of the most interesting examples of this is the Amazon Kindle service which provides an integrated front end to a wide range of Amazon services. The Kindle service optimizes purchases of books plus access to library and new services and automatically synchronizes all the devices the user may use to access the services including the Kindle reader, smart phone and browser.

Amazon was a pioneer in use of Web services. They are well known for their internal policy of mandating that all Amazon systems functionality should be created as externalized services – that is ready for use directly by customers, and this has clearly been at the heart of their considerable success.

However few large enterprises are able to operate in such an agile manner. Amazon was built from the ground up to be an IT enabled business. In larger enterprises generally there is weaker connection between business and IT, plus the challenges of legacy application and infrastructure base and typically immature (application) service portfolios. And we can all observe the archetypical enterprise is becoming even more complex with pressing demands to respond to major market trends including mobile device based processes, analytics and real time business intelligence driven process behaviour. In this frenetic environment, how can we avoid purely tactical responses which simply generate more complexity and legacy?

CBDI suggested the answer to this problem over ten years ago. The basic service model provides an efficient and effective architecture that enables reusable capabilities that limit complexity and enable continuous change through separation of concerns. However to be truly effective the service model needs to be integrated into the entire business ecosystem where EVERYTHING IS A BUSINESS SERVICE where, like Amazon, all business capabilities are published as integral components of product and service delivery. To achieve this, the service model must be expanded way beyond the prevailing technology centric SOA approach and become an holistic business service centric model subsuming PEOPLE, PROCESS AND TECHNOLOGY.

Of course there will be decoupling between business services and software services; it will be vital that business services are formed from reusable, common software services that can be rapidly assembled into new business processes to allow rapid response to changing business needs.

Of course this all sounds very fine, but most readers will ask the key question “how do we manage the transformation to a service based enterprise?”  There are so many cultural, political, budgetary and legacy challenges that will stop such an endeavour in its tracks. Most business managers have already dismissed SOA as a technical exercise and remain focused on delivery of urgent business programs. Frankly this is THE CHALLENGE. We all read fine statements from F500 CIOs and CEOs who boast about their transformations, but in practice business as usual perpetuates conventional separation of business and IT.  We have to communicate this from the rooftops!

Some ten years ago CBDI defined a maturity model and roadmap approach that showed how SOA capability maturity moves through the stages of Early Learning, Applied, Integration, Enterprise and Ecosystem. Since then this methodology has been used by many large corporations worldwide, including notably Intel Corp[4]. In the Ecosystem maturity stage the service portfolio is integrated with business concepts and federated both internally and externally. However few enterprises have achieved this level of maturity. Amazon is a rare exception.

Many enterprises are embracing Cloud computing recognizing this architecture can introduce a critical level of virtualization and agility. In recent months there has been much interest in moving Cloud to the next level referred to as Everything as a Service (EaaS or XaaS).  HP, just one of the service providers making moves in this space defines this as Through the cloud, everything will be delivered as a service, from computing power to business processes to personal interactions[5].” This is a very significant advance, however we need to emphasize that Cloud EaaS is a technology centric model, and there’s considerable effort required to integrate with the broader business and IT to avoid yet more legacy.

 

A first step in making this level of transformation is to establish a reference architecture that is entirely service based, spanning business and IT. Frankly existing reference architecture efforts such as TOGAF, OASIS, Zachman etc are not helpful in this area. Rather the service reference architecture needs to provide a mapping to a multiplicity of (stakeholder) views identifying key elements of pattern, standard and policy to ensure appropriate levels of consistency and governance.
Each of the views should also be documented in reference architecture, enterprise architecture, solution architecture and analytics levels of abstraction. You may be wondering why analytics? This represents a further level of cross cutting solution abstraction.
As discussed the reference and enterprise architecture views should be developed to achieve the minimum necessary level of consistency relevant to the business strategy context. 

Everything is a Business Service is the next big leap. Enterprises who have established effective SOA environments will be well positioned to make this move, but recognize it’s going to be yet more steps along a much longer journey than we CBDI articulated in our research 15 years ago.

  [1] Future Shock

  [2] The Coming of Post-Industrial Society

  [3] Megatrends

  [4] Service Oriented Architecture Demystified, Intel Press 2007

  [5] http://www.hp.com/hpinfo/initiatives/eaas/index.html

Modelling mixed-value in Enterprise Canvas

One of the more subtle problems in enterprise-architecture – in English-language, anyway – is the distinction between values (plural) and value (singular, but often used as plural). The Enterprise Canvas frame provides several useful methods via to disentangle an existing values-mess, and prevent getting into that kind of mess in the first place. In Enterprise Canvas, we […]

On the road to a Business Architecture Manifesto

One very powerful metaphor that has reverberated throughout the technical community, in the past few years, was the Agile Manifesto.  Created by a group of folks who wanted to communicate the principles that drove their thinking, the Agile Manifesto has been a very useful tool for deciding if a particular practice is being done well.  I think it may be time to build one for the Business Architecture space.

That said, I am by myself, sitting in my living room.  I am in no position to speak for the community of business architects.  So, this submission is a suggestion for content that could be useful when the conversation begins.  It is my personal opinion about the principles of business architecture.  I would hope to bring this material to a group of other BA practitioners, as my contribution, to develop a full consensus on business architecture manifesto.  

First off, in order to develop principles for business architecture, we need to describe the problem that we are trying to solve. 

The problem that business architecture solves

Business architecture is a relatively new field that addresses an old problem.  Most business people recognize the underlying truth: the structure and practices of your organization directly impacts your ability to deliver the intended value.  Whether we are talking about a military service, a civilian government agency, a non-profit organization, or a for-profit business, the structures and processes that a leader chooses to employ will impact the results that the organization will produce.  That includes both intended and unintended results.  So the basic problem is this: how do we deliver on our mission while maintaining our values?

Business architecture gets to deal with a slice of that problem.  As people, we need to organize around a common shared mission.  We need to know what we want, and we need to go get it.  Humans can be pretty haphazard.  Business architecture does not address every issue.  Business architecture attempts to answer this question: what is the optimal way to organize?  Business architecture typically does NOT answer questions around the integration of corporate controls, or supporting activities like how to find staff to fill new roles.  Business architecture is focused on the narrow slice of “how to organize.” 

So why do we need business architecture to solve this problem?  There are literally hundreds of good, well researched, books that offer useful insight for solving this problem.  Why use a business architecture approach?  Because BA brings a novel approach, one based on the rigorous application of conceptual traceability, process improvement, information science, and mathematics.  While most of the business analysis methods prior to business architecture were founded, fundamentally, in social science, mechanical engineering, and even education, business architecture focuses on the newer sciences that have emerged in the computerized age. 

How does business architecture solve the problem

Business architecture’s unique value proposition is to focus on answering the questions of business structural and organizational effectiveness in a way that is rigorous, quick, clear, consumable, and value-focused. 

We are uncovering better ways of developing business insight by doing it and helping others do it.  Through this work, we have come to value:

Consistently reusable methods over Piecemeal assortment of best practices

Rapid insight over Deeply accurate models

Clear choices over Nuanced decision trees

Consumable deliverables over Consistency with external frameworks

Value-driven prioritization over Justification of the status quo

 

That is, while there is value in the items on the right, we value the items on the left more.

 

To break that down:

  • Repeatability, Reuse, and Rigor.  There are many ways to understand a business.  Business architects will expect you to pick one of those ways (one conceptual model) and then stick to it.  The rigor comes from sticking to the model.  If your enterprise is focused on creating a smooth customer experience, then the business architect will leverage the customer experience work done elsewhere, and will drive a business stakeholder to follow along rather than make something up.  While products must be creatively and freely developed, the organization itself must be architected and engineered.  Rigor matters.
     
  • Rapid Insight. There are many ways to analyze a business.  Business architects will work to reduce the overhead of their analysis methods so that they can produce valuable answers in a very timely manner.  Business people are not rewarded for taking a long time to do an excellent job.  Most will be better rewarded if they do a reasonably good job in a shorter timeframe.  While accuracy is great, the value of information is inversely proportional to the time needed to produce it.  Speed matters.
     
  • Clear Choices. If a business person cannot tell what the recommendation is, they won’t follow it.  If the business architect cannot produce insight that is clear for the business stakeholder, the architect will not effect change.  It is not good enough for a business architect to be quick and correct… they must also be clear. 
    The amount of information, and the coarseness of the decisions, depends on the level of the stakeholder.  At any level, a decision maker should be provided a short list of options (often 2 or 3) where the distinctions between them are clear.  This rule applies at all levels of the organization.  One strategy from a senior manager may require a choice among three different tactics for a department head to choose from.  No one person needs to be concerned with the entire decision tree, except perhaps the business architect himself.   The ability to make decisions is proportional to the clarity of the choices.  Business architecture favors clarity over nuance.
     
  • Consumable Deliverables.  In order for business architects to be successful, they must deliver a plan for the execution of business strategy.  That plan has to be something that the impacted stakeholders can understand and use.  In other words, the output of business architecture must be consumable.  Reams of technical detail are rarely useful.  At the other end of the spectrum, vague goals and promises of value may be just as inappropriate.  Recommendations must be provided using words and metaphors that the actual impacted business stakeholders understand.  They must be provided using forms and templates that the existing organization will recognize and can quickly use.  While consistency with frameworks and practices are important, business architects value consumability more.
     
  • Priority based on Business Value.  Business architects can spend their time on many tasks.  In addition, they can recommend that the organization spend time on many tasks.  Sometimes, even an efficient use of business architecture would be a waste of time if the resulting advice is unlikely to deliver strategic insight.  The selection of tasks, which to do now and which to do later, is of critical importance to a business architect.  While all supporting tasks can be justified, business architects will give priority to tasks that directly lead to actionable, consumable, value-driven business advice.

 

I’m always looking for insight and feedback from the community, so please feel free to add your comments. 

Please note: if your comment is long, the software will sometimes have trouble.  Write it in notepad or Word first, and then cut and paste into the comment edit window.  Don’t be afraid to send it more than once.  I will delete duplicates.  If all else fails, e-mail your comment to me and I’ll put it in.

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