1. Strategic Architecture
The Exchange - Aviara
July, 2003
David C. Baker
david.baker@diamondcluster.com
© 2003

2. Outline
2
What is architecture?
Enterprise architecture in practice
A call for action
© 2003

3. Information Technology deals with
complex systems
Year Doubling of Body of Business Cycles Information 3
Knowledge Technology
Cycles
1800s 500-1000 years N/A N/A
1970s 100 years 7 years 2-3 years
1980s 25 years 5 years 2-3 years
1990s 10 years 12-18 months 2-3 years
2001 6 months 6 months 2-3 years
200x 3 months Near Real Time ?
© 2003
Source: Meta Group, 2001

4. Example of complexity
Application 1
Application 2
4
Leased Leased
Application n line line
Italy
Corp 1
GPRS BSS
Corp 2
Leased / GSM
Leased line
line PSTN / OSS
France ADSL
ISP
Internet Service
Leased
BSS Platform
GPRS
line
ISDN
/ GSM
OSS
WAN
PSTN
Internet / LAN
/ ADSL
Service ISP
Leased
Platform Content
line
ISDN Partner
Leased
line
WAN Leased Internet
/ LAN line
Content
Application 1
Partner
Application 2
Hungary Application n
Corp 5
BSS GPRS
Application 1 Corp 6
/ GSM
Application 2
OSS
PSTN /
Application n ADSL
ISP
Service
Corp 3
Corp 4
Platform
ISDN
© 2003
WAN Content
/ LAN Partner

5. What is architecture?
5
Simple System “Normal” System Complex System
“You can build a Part of a Part of a
doghouse out of simple complex
anything” network network
- Alan Kay
© 2003

6. Lacking architecture, your results are
unlikely to meet your expectations
6
What you want What you have Your results!
(individual systems and
components)
© 2003

7. Architecture solution
7
© 2003

8. Architecture answers questions for key
stakeholders
8
General
Client Contractor
wants to know wants to know
What’s the result? How do we get it done?
How quickly can I get it? How do I make sure it’s done
correctly?
How much does it cost / save?
Architecture What’s possible?
What are the risks?
What’s possible? Subcontractor
wants to know
What do I build?
What do I build it with?
© 2003

9. Architecture answers questions for key
stakeholders, continued
9
Business IT
Managers Managers
want to know want to know
What’s the result? How do we get it done?
How quickly can I get it? How do I make sure it’s done
correctly?
How much does it cost / save?
Architecture What’s possible?
What are the risks?
What’s possible?
Technical
Staff
wants to know
What do I build?
© 2003
What do I build it with?

10. Problems occur when architecture is
executed in isolation
Context Opportunity 10
PepsiCo is a $25.1 billion Establish a common hardware
beverage and snacks producer platform for all divisions
Key divisions: Frito-Lay, Pepsi- Reduce the number of software
Cola, Gatorade/Tropicana, Quaker solutions
Foods
Estimated that bulk buying could
Technology spend estimated at $1 save 20% to 30% of current $200
billion per year million spend
5 different mobile solutions in use Additional savings from reduced
across 5 different divisions installation, service and
maintenance
Architecture is one of the catalysts necessary to establish a common
platform yet still enable innovation within each of the business units
© 2003
Source: Baseline May 2003

11. Where do architects come from?
11
Theoretical / Industry
Knowledge
(“art of the possible”)
Delivery (the Craft – i.e. coding)
Management, Estimation,
Program Design (Technology Planning)
Technical Gro Software Architect Gro Enterprise
Specialist w Infrastructure Architect w Architect
© 2003

12. What makes an architect?
12
The Artist
The Guru
The Spy
The Coach
© 2003

13. Outline
13
What is architecture?
Enterprise architecture in practice
A call for action
© 2003

14. An enterprise architecture practice
involves more than just blueprints
14
Governance
Skills &
Organization Metrics
Guiding
Principles
Architecture Repository /
Processes Portal
Blueprints
© 2003

15. Blueprints and Guiding Principles are
the foundation of your architecture
Guiding Blueprints 15
Principles
Business Process Application
Model Model Model
Buy
vs
Build
Insource
vs
Outsource
Interface Information Infrastructure
Model Model Model
(Examples)
© 2003

16. Linking business to technology provides
consolidation capabilities
Context and Approach Benefits Achieved
16
Global property and casualty $5.6M savings via infrastructure
insurer consolidation
Lacking a linked business and $2.6M savings from centralized
systems architecture identification and authorization
(single sign-on)
Unable to tell how overlapping
applications related to one another $3.3M savings from standardized
operations management console
Unable to tell how any application
and “sensors”
could replace another
$1.5M in reductions and avoidance
Decided to standardize application
from common eCommerce
and infrastructure architecture
architecture
This effort required the creation of an enterprise architecture team and
the recruitment of a chief architect
© 2003
Source: DCI experience database

17. Architecture work leverages the larger
IT community
CIO 17
Chief Architect The EAG organizes,
Business Architect Application Architect
manages, and
drives the
Security Architect Information Architect
Architecture
Arch Program Mgr Infrastructure Architect Community
Architecture Community Architecture Processes
• Blueprinting
• Application • Testers
• Vendor selection & management
Architects • Project
• Project checkpoint and signoff
• Operators Managers
• Standards development
• Developers
• Technology research and adoption
• Technology investment guidance
© 2003

18. Use of an architecture repository
enables sharing and measurement
18
IT Community
Guiding
Principles Repository
Example Metrics
% of baseline standards created &
disseminated
% of projects with architecture signoff
Blueprints % of applications fully compliant with
standards
% of technology in each stage of the
technology lifecycle
© 2003

19. Architecture provides key criteria that
guides annual IT planning and budgeting
Current State Architecture Future State Architecture Roadmap
19
(identifies and categorizes (provides strategic criteria (Result is a roadmap of IT
current IT assets) for screening and assessing projects aligned with
portfolio) business drivers)
Implicit IT Distinguish Define Measure, Diagnose, Make
portfolio categories criteria assess recommend decisions
1 4 1 3 2 3
Invest
2 2 1 2 5 1
A 2 3 2 0 0 1
Adjust
4 0 5 0 2 4
1 1 3 0 2 3
0 2 2 2 0 1 Sunset
B
5 3 0 1 2 2
A huge Different Screens Fact-based Business Faster / better
collection assets that insight into language investment
of projects judged and match architecture decisions
and assets managed strategic fit
© 2003
differently intent

20. Recent client example shows benefits of
IT portfolio screening
Context and approach Benefits achieved
20
North American division of a large 352 - Number of in-flight projects at
European car manufacturer start of portfolio screening effort
Little to no integration across
platforms and application 30 - Number of remaining high-impact,
cost effective, focused initiatives
Many redundancies, conflicting
objectives, unclear deliverables
$40-50M - Savings from eliminating
No shared investment tracking tools redundancies and projects without
or metrics clear benefits
Utilized blueprints in portfolio $200M - Incremental revenues from
screening and diagnosis reallocating time and resources
methodology towards customer value generating
Prioritized projects, applications and initiatives
platforms
© 2003
Source: DCI experience database

21. Architecture also governs the most
detailed IT activities
21
Enterprise
Architecture …
EA Iteration N EA Iteration N+1
Checkpoint 0 Checkpoint 1 Checkpoint 2 Checkpoint N
- Assess need for - Update - Verify - Manage
new technology blueprints to alignment architecture
meet project with deviations
- Check feasibility
needs blueprints
Software
Development
Lifecycle
© 2003

22. Architecture drives down development
time and cost
Context and Approach Benefits Achieved 22
IBM developed a set of best- 60% reduction in architecture
practices learned from it-s e- design time
business projects
40% lower costs in systems
Published as IBM’s Patterns for E- migration
Business
Sharply reduced risk associated
Utilized by Experio Solutions as with application and
reference architectures for e- infrastructure upgrade
business
Pattern based architectures support faster time-to-market and faster time
to ROI
© 2003
Source: Experio case study on IBM Patterns for e-business web site

23. Architecture sets the technology agenda
for vendor evaluation & selection
You are the best 23
and brightest in …yet you shall
all the land…. have to prove
yourself to me…
Better
No,
Technology!
me!
I’m
NEW!
Upgrad Pick
e now! me!
© 2003

24. Where are you in your architecture
efforts?
Enterprise Architecture 24
Capability Maturity Model
Level 5
Level 4 Continuous
improvement.
Level 3 Enterprise Metrics used
Architecture to optimize
Level 2 Enterprise is managed business
Architecture and linkage
Level 1
Enterprise is defined measured
Informal, ad-
Architecture (written (metrics and
hoc Enterprise
is under down) feedback)
Architecture
development
processes
Adapted from Meta Group, “Enterprise Process Maturity Model and the SEI Model”,
© 2003
Enterprise Architecture Strategies

25. Outline
25
What is architecture?
Enterprise architecture in practice
A call for action
© 2003

26. It doesn’t matter how you start, just get
going!
Breadth of Coverage 26
(Business Unit, Applications)
Architecture
Blueprints Type: Broad and Shallow
Guiding Principles Depth of Coverage
Architecture
Governance
Architecture
Processes
Organization & Skills
Architecture
Repository
Metrics &
Measurement
© 2003

27. It doesn’t matter how you start, just get
going!
Breadth of Coverage
27
(Business Unit, Applications)
Architecture
Blueprints Type: Broad and Shallow
Guiding Principles Depth of Coverage Type: Focused
Architecture
Governance
Architecture
Processes
Organization & Skills
Architecture
Repository
Metrics &
Measurement
© 2003

28. It doesn’t matter how you start, just get
going!
Breadth of Coverage 28
(Business Unit, Applications)
Architecture
Type: Broad and Shallow
Blueprints Staffing: Moderate – 4 to 6
Guiding Principles Depth of Coverage Type: Focused
Staffing: Low – 3 to 5
Architecture
Governance
Architecture Type: The Whole Enchilada
Processes
Organization & Skills
Architecture
Repository
Metrics &
Measurement
© 2003

29. I’ve heard it before
I’ve heard all the excuses: 29
“I can’t justify the cost of architecture”
“Architecture is too theoretical”
“I don’t see the impact of architecture”
If you are thinking the same then you can’t complain
that your systems are not aligned with the business or
that you cannot get to the information you need or that
your systems are inflexible or that you cannot change
your systems fast enough…
© 2003

30. The bottom line
Throwing more technology at your problems will not 30
solve the problem
Architecture is not about the technology, it’s about
how you manage the technology
The most excellent technical work, left unmanaged,
is wasted work
© 2003