Proposal for an Enterprise Business Architecture Denise Bedford Information Quality Revised February...

Proposal for an Enterprise Business Architecture

Denise BedfordInformation Quality

Revised February 19, 2007

Purpose & Overview Purpose of the presentation is to:

propose a framework and strategy for aligning IT to business through the development of a business architecture

Hear the Architecture Committee’s advice on the value and feasibility of moving in the direction of a business architecture

Presentation Overview

Value of Business Architecture Designing a Business Architecture Business Process Management

Value of Business Architecture

Business Challenges Business is facing:

Global business competition Rapid innovation and fast-changing business requirements Regulatory compliance challenges Increasing cost pressures

Technology’s typical response Slow delivery times High maintenance costs Brittle solutions Stove piped functional applications Redundant development efforts and operations Redundant and costly investment in multiple technical solutions

Can technology be realigned to support the needs of business?

Aligning IT with Business There is little disagreement within or outside the organization that we need to

align information technology to support the business

We need to decide:

What we expect to achieve from the alignment and how will we measure it What alignment means from a business and from an IT perspective What strategy we will use to achieve the realignment

The decisions will be made at the enterprise level so there needs to be an enterprise context for the realignment

The realignment needs to support decentralized development and business evolution in the future – to achieve this we need a business architecture

Expected Results of Aligning IT with Business

How do we know this is not just the latest management fad? Because it has practical applications which we can use to achieve our

business goals and objectives

What are we trying to accomplish by shifting the role of information technology to an ‘enabler’ rather than a ‘driver’? Define direct and derivative results of shifting our focus to a business view

What is required to implement a business architecture? Alignment takes the form of a fully elaborated Business Architecture

What does it mean for how we work? A four step plan is proposed for moving towards a business architecture

involving business stewards, business analysts, technical stewards and data management team

Value of Business Architecture

TechnicalBusiness

Optimization

Info

rmat

iona

l

Change ManagementRecords Capture &Management Improvement

Process Optimization Financial Management & Control

Systems Interoperability

Business Intelligence & Benchmarking

Data Quality Control &Assurance Improvements

Business Impact Analysis

Application Reuse

Focusing on supporting the business, and casting technology in an enabler mode, will generate direct and derivative results.

Business Semantics & Sharing

Role Management

Derivative ResultsDirect Results

Workflow Design & Support

Business & IT Alignment - Direct Results

Direct Business Results include…

End-to-end business process analysis and adjustment (process optimization, improvement and simplification)

Alignment of resource management and analysis by business areas and with business goals (financial management and controls)

Pre-impact and pre-incident detection of business events and business targets, and the ability to assess the impacts and lead times in order to mitigate the business impact (business impact analysis and business continuity)

Business & IT Alignment - Derivative Results Derivative Business Results include..

Cross-organizational role discovery, provisioning and management based on common groups of privileges and permissions (increased effectiveness in role management and identity provisioning)

More effective and targeted benchmarking with peers and enable more efficient measurement, reporting and evaluation (business metrics and intelligence)

More efficient business processes based on automated workflows and business process management (workflow design and management)

Business & IT Alignment - Derivative Results Technical Derivative Results include…

Smarter and rapid deployment/redeployment of new platforms and services, providing sufficient information to plan and manage the change cost effectively (change management)

Interchangeable functional component design through increased access to and reuse of technical resources (applications reuse)

Optimization of use of the organization’s technical resources by all contributors or consumers, regardless of location (systems interoperability)

Business & IT Alignment - Derivative Results Data and Information Derivative Effects include…

More rigorous, visible and auditable records capture throughout business processes (records management)

Identification and management of quality control checkpoints and improvements in data quality and trustworthiness (information quality assurance)

Access to management information from a business perspective rather than an application perspective (business semantics)

Designing a Business Architecture

Designing a Business Architecture In order to align technology with business, we need to design a business

architecture

Business architecture includes: Business framework to which all business definitions and models

can be mapped

Business process management best practices for representing business processes which are manageable by business analysts, understandable to business managers and executable by developers

Current State – Business Framework We don’t have a comprehensive view of the Bank’s business at this time, although

we have a wealth of business knowledge and documentation

Current business definitions may be constrained to what single organizational units do and how they do it

May be variations on a process across the organization Formal policies and procedures may not fully describe how work is done May be gaps in coverage of some business processes May be redundant descriptions of the same process which are not

consistently maintained May represent a technology view rather than a human workflow view May not describe all of the resources that are required to support a business

process

Current State – Business Framework For example, there are currently several high level schemes in

use throughout the Bank –

Accounting framework (Controllers’ – budget and expenditures) Records management framework (BRCS, Archives Fonds –

organizational history) IT-Business framework (application-focused) Business continuity framework (core processes and critical incident) Business definitions in administrative, policy and procedures manuals

(business operations)

Each scheme represents a resource viewpoint, though none serves as a baseline for comprehensively aligning resources to end-to-end busienss processes

We propose a new framework which will allow us to harmonize these views – this framework takes the form of an organizational business taxonomy

Business FrameworkStrategic Alignm

ent and Aggregation

End to End Primary Business Activities

Business Subprocess and Tasks

Business Processes

Lines of Business

Business AreasOperations

Financial Administr

ative & Corporate

Lending

Analytic a

nd Advisory A

ctivitie

s

Project Identific

ation

Project Preparation

Project Appraisa

l

Project Negotiation

Project Approval

Prepare AIS in SAP

Prepare SMO

Prepare PCN, PID, ISDS

PCN Review Meeting

ROC and/or OC revie

w

Bank’s Business Framework Level 1: Business Areas

High level aggregation which distinguishes primary and support activities, and which is aligned with organization’s strategy and performance goals [Example: Operations]

Level 2: Lines of Business Set of one or more linked business processes which collectively define a line of products

and services [Example: Lending] Provides a level of aggregation which is valuable for evaluation and monitoring but not

sufficiently granular to enable business process management

Level 3: Business Process End-to-end description of a process which is comprised of a series of steps or tasks that

have defined conditions triggering its initiation and defined outcomes/outputs at its completion [Example: Project Appraisal]

Level 4: Business Subprocesses and Tasks Individual tasks which make up a process, or a group of tasks which is enacted or called

from another (initiating) process (or subprocess), and which forms part of the overall process [Example: Draft Aide Memoire]

How to Determine if it is a …..

Criteria Line of Business Business Process

Definition There must be an accepted and published definition of the line of business, including all products and services

There must be defined conditions marking the initiation and completion, and a sequence of steps in between.

Policies & Governance Processes There must be defined, institutionally authorized and published policies at the LoB level.

There are institutionally authorized and defined business procedures, events, rules, tiggers and conditions that derive from and implement the LoB policies.

Products & Services

vs. Inputs & Outputs

The LoB must have defined products, services, outputs and outcomes which are required to sustain the organization.

The Business Process has defined inputs which are converted directly to outputs at the end of the process.

Budget vs. Expenditures The LoB has a defined budget line. Business process incurs individual expenses which can be tied to tasks or subprocesses, for all types of resources.

Risks There is a known business risk to the organization when it is not available.

Inherits at least the risk rating of the LOB, but may have an elevated risk if the business process must continue regardless of other BPs in the LOB.

Service Standards & Metrics LoB must have defined and published service standards and quality metrics across products and services.

BPs have service standards and quality metrics for individual products and services.

Clients & Stakeholders LoB has defined consumer groups/segments and stakeholders, whether internal or external to the organization.

BPs tracks to specific customers, who receive the products and services at the completion of the process.

How to Determine if it is …Criteria Line of Business Business Process

Human Assets LoB has associated core competencies, job family and job profiles.

Business processes have people/roles and/or agents assigned to specific steps or subprocesses. Can trace human resources used to perform the business process.

Facilities, Technology & Information Assets

Supported by facilities, consume energy, use communications, data, and information to generate outputs and outcomes.

Tracks to specific applications at specific points in the business flow. Uses and produces known information assets. Tracks to specific offices and technology expenses to support the people and systems used in the process.

Comparable Industrial Sector

Has comparable economic sector and external competitors, regardless of whether it is a primary or supporting LoB. LoB may or may not be a primary activity for the institution.

Does not have a comparable industrial sector because it is not at a sector level of categorization. Inherits this value from the Line of Business.

Known Business Processes

Must have one or more associated business processes. Line of Business can not exist without supporting business processes.

Is comprised of steps that make up a business process. Has a defined initiation point and a defined completion point. May have business subprocesses but does not include another business process.

Business Area Is aligned with a Business Area as defined by the organization’s strategic and performance contracts.

Not applicable.

Line of Business vs. Business Process These terms are often used interchangeably in the business

literature but it is important to distinguish them because

Line of business is generally one level above where we can do business process management effectively

Line of business is comprised of multiple business processes – each of which represents an end-to-end process

Let’s consider what would happen if we tried to do business process management at the Line of Business level

Business Processes

The framework provides us with a structure for harmonizing the Bank’s business knowledge, but we need to look at individual business processes for the detailed business knowledge that will help us achieve our goals

The top two levels of the framework (business areas and lines of business) provide us with a strategic view of the Bank’s business

The bottom levels of the framework (processes and subprocesses) provide the business knowledge needed to begin to design a business architecture and to support business process management

Let’s focus on Business Processes and Subprocesses in order to identify the kinds of business knowledge we need to support the business

Project Approval

Project Identification

ProjectPreparation

Project Appraisal

Project Negotiation

Project Evaluation

Project Signing

ProjectEffectiveness

Project Supervision

Project Completion

Lending Line of Business Comprised of Linked Business Processes

Business Processes

Steps & Subprocesses

Resources Allocated andManaged at these levels

Decision mtg package Minutes, PID, ISDS SMO Notice to Borrower Draft Aide-memoire Post-appraisal letter to Borrower.

Prepare AIS in SAP Prepare SMO Prepare PCN, PID, ISDS PCN Review Meeting ROC and/or OC review (for projects high risks)

Draft PAD PID PAD-stage ISDS Draft EA, RAP, IPDP Minutes of PCN meeting Minutes of QER

Process Variations are found and Improvements are made at these Levels

Line of Business level is too coarse to support process management goals and objectives

Application calls areExecuted at this level

Lend

ing

Line

of B

usin

ess Lending Line of B

usiness

Business Process Management Best Practices

Business Process Management Best Practices Business process management recommends that we:

Define internal best practices and guidelines to ensure that business process models are consistently developed (ARIS Framework)

Develop business models for processes, and inventory, register and publish existing business models (Business Analysts & Stewards working with IQ and IS teams)

Recommend standards-based modeling and execution languages to be used by developers for implementing business process models (OASIS – BPEL, WSDL, XSD)

Build a business architecture layer as part of enterprise architecture (SOA + BA)

Establish an enterprise governance process for business process management

Business Process Models A business process should be represented as models of end-to-end

sequence of tasks or subprocesses, which describe all of the inputs, outputs and steps/activities required to execute the process

ARIS framework provides us with a comprehensive view of a business process description

Working within the business framework, and leveraging the ARIS business processing modeling strategy, we can both harmonize across the organization and standardize our current business knowledge

Environmental Data

Information Services

Other Services

Material Input

FinancialResources

Initial Event Message

Business Process

Steps & Subprocesses Result/Event

Information Services

Other Services

Material Input

FinancialResources

Goal

SoftwareComputerHardware

MachineResources

Human Input/Output

OrgUnit

Business Process Description

Robust description of a business process includes all elements of the ARIS framework.

Business Framework and Business Process Management Looking back to the value proposition, we need a level of business process

description which will allow us to:

connect any system associated with the process identify the people who support it link financial resources acknowledge but also cross organizational boundaries identify compliance (financial, records) points identify data and information quality control points Identify common steps and subprocesses to simplify and reuse

applications provide managers with the capability to monitor the process for

improvement and planning purposes

Project Approval

Project Identification

ProjectPreparation

Project Appraisal

Project Negotiation

TL prep. PCN package and Sends to SM TL prepares if applicable ROC and SM clears TL prepares OC and SM, CD, RVP clear

Info

rma

tion

Bu

sin

ess

Pro

cess

AIS, SMO, BTOR PCN, PID, ISDS Cover Memo, Note Agenda Minutes of PCN review

SAP, IRIS, Passkey, ProjectPortal, Lotus Notes, Travel Web

W2K, Domino, Edge Server,HIS, Oracle, WebSphere, Lotus Notes, Siteminder,iPlanet, SAP, AIX, HACMP,EMC SRDF, EMC TimefinderTSM TDF, Tivoli Monitor,Telalert, Precise Luminate

Ro

le &

Re

spM

etr

icT

ech

no

log

y

TT prepares QER package SM Clears TL circulates TL prepares minutes of QER and SM clears and Issues minutes

Decision mtg package Minutes, PID, ISDS SMO Notice to Borrower Draft Aide-memoire Post-appraisal letter to Borrower.

Negotiations Package Formal Invitation to Borrower to Negotiate Minutes of Negotiation Summary of Negotiation Status of Negotiation notice

Final Board Package SCR & email to SECBO Regional Pre-board mtg Memo to MD Pre-board meeting Board Approval

TT prepares and CD, SM, LOAG2, CC clear TL prepares minutes and Lawyer, LOAG2, Leader of Borrower deleg. clear TL & Leader of Borrower delegation sign

TT prepares package, SM and CD clear TL prepares notice to Borrower and CD issues TT prep. aide-memoire, TL signs & delivers TL prep. post-appraisal letter SM-CL-CD clear

PAD, PID, ISDS Safeguards Documents Minutes of QER Agenda Email

TL prepares Board pkg, SM-FO-LY-CD clear Lawyer prepares SCR & signed by RVP, LEGVP, expert appointed by CG TL prepares NB-Board Approval & lawyer clears

IRIS, Passkey, Project Portal, Lotus Notes, LAS

Transmittal Memo PAD,,PID, ISDS Safeguards Documents Legal Documents Minutes, Agenda SMO, Aide-memoire Notice to Borrower BTOR, Letter

Memo, PAD, MOP Notice of Invitation Letter of Invitation Letter of Sector Policy Letter of Development Program Minutes

Transmittal memo form 2337 , form 1767 Board Doc Sub. Form PAD, MOP, speech Notice to Borrower SCR Report Form 14, Form152 Speech

SAP, IRIS, Passkey, Project Portal, Lotus Notes, LAS, Travel Web


W2K, Domino, Edge Server,HIS, WebSphere, Oracle,SAP, Lotus Notes, Siteminder, iPlanet, Solaris,Sybase, Replication Server,WebServer, Print Archietcture.


Prepare AIS in SAP Prepare SMO Prepare PCN, PID, ISDS PCN Review Meeting ROC and/or OC review (for projects high risks)A

ctiv

itie

s

Draft PAD PID PAD-stage ISDS Draft EA, RAP, IPDP Minutes of PCN meeting Minutes of QER


IRIS, Passkey, Project Portal, LAS, Lotus Notes

IRIS, Passkey, Project Portal, LAS, Lotus Notes

Metrics for Lending (Reg: 58% of Bank Budget): Cost (40%), Quality (19%), Volume (16%), Capacity (13%), Satisfaction (6%), Timeliness (6%).

Time, Cost, Capacity, Vol Time, Cost, Cap, Vol, Quality Time, Cost, Cap, Vol, Quality Time, Cost, Cap, Vol, Quality Time, Cost, Quality

Ap

p

Project Evaluation

Project Signing

ProjectEffectiveness

Project Supervision

Project Completion

TL sends an invitation On signing TL prepares a notice to Borrower – signing and Lawyer clears TL sends signed Legal Documents to ACTCF

Info

rma

tion

Bu

sin

ess

Pro

cess

Notice of Signing Legal Documents Notice to Borrower Email FAX

W2K, Domino.

Ro

le &

Re

spA

pp

Te

chn

olo

gy

TL prepares a memo & letter and lawyer clears CD signs and sends Letter to Borrower

Procurement process Disbursement Financial Management

Completion report identifying accomplishments, problems, lesson learned.

OED assess what works and what does not and learn from the experience.

Borrower submits a completion report to the Bank Board of EDs

Borrower prepares specs and evaluates bids. Ps ensures procurement Disbursement Officer authorize to withdraw fund FM maintains oversight of the FM project

Memo Notice to Borrower-letter Email

OED staff assesses the project and sends to CD, SM, SD, TL, etc.

IRIS, Lotus Notes, Passkey

Bid documents, Contract Bid evaluation report Minutes of bid opening Cost estimate sheet Technical &/or financial evaluation report FM Reports/Docs

Report that contains accomplishments, problems, lessons learned

OED evaluation report.

IRIS, Passkey, Project PortalClient Connection, LAS,Extranet, Lotus Notes

W2K, Domino.

W2K, Domino, Edge Server,HIS, WebSphere, Oracle,SAP, Lotus Notes, Siteminder, iPlanet

Edge Server, IHS, WebSphere, Oracle, SAP,Siteminder, iPlanet, LotusNotes

Notice of signing and signing ceremony Notice to Borrower – signing Signed Legal DocumentsA

ctiv

itie

s

Notice to Borrower – Declaration of Effectiveness


IRIS, Project Portal,Lotus Notes, Passkey

Intranet, Lotus Notes,Passkey

Metrics for Lending (Reg: 58% of Bank Budget): Cost (40%), Quality (19%), Volume (16%), Capacity (13%), Satisfaction (6%), Timeliness (6%).

IRIS, Lotus Notes, Passkey

Time Time Time, Cost, Cap, Vol, Quality Satisfaction Quality

Me

tric

Travel Monitoring -

Unit/VPU

Travel Planning

Travel Transacting

Travel Controlling

Travel Monitoring –

Specific Trip

Budget Analysts/Officers forecast travel expenses Traveler makes Reservation and enters Trip information into the Web Travel

Info

rma

tion

Bu

sin

ess

Pro

cess

Travel Authorizations Travel Advisory services and guidelines Trip Document created In travel web system Reservation – itinerary with American express

Online Reservation system,Travel Web, Passkey, Notes

W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert,Edge Server, IHS, WebSphere, Lotus Notes

Ro

le &

Re

sp.

Ap

pT

ech

no

log

y

Traveler contacts A. Exp AM approves the trip A. Exp receives Notice and issues the ticket Traveler enters expenses TCS is sent to Manager AM approves the trip

Pre-Trip Controls Post-Trip Controls Monitoring Specific Trip

Monitoring Specific Unit/VPU

Traveler can use the Web Travel System to monitor the status of trip request as well as sub- sequent expense reimb- ursement request

Ex Ante Controls: verify cost assignment, explanation of exceptions, PCard Usage, etc. Ex Post Controls: trip is approved, traveler sends receipt to ACT.

Itinerary VISA Ticket BTOR

Budget Analysts/Officers use the SAP Cost Report or Administrative Expense Report to monitor travel expenses

Travel Expense Postings Trip Document PCard Receipt

Display Trip Print/Simulate Trip My Trip Summary Report

Outstanding Trip Claims Report Travel Expense Exception Report Budget Summary Repor Operational Mission Summary Report

SAP, Travel Web, Passkey

W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert,Edge Server, IHS, WebSphere, Lotus Notes

W2K, IIS, Oracle, MS Load Balancer, SAP R3, TSM, NetIQ, Telalert,Edge Server, IHS, WebSphere


Planning at Budget Level Planning Specific Trip

Act

iviti

es

Before the Trip After the Trip


SAP, Travel Web, Passkey SAP, Travel Web, Passkey

Metrics for Travel (Bank Wide: Over $ 200M in FY-05): Cost Effectiveness – Get Best Results with available Funds

Travel Web, SAP, Passkey,Notes

Cost Effectiveness Cost EffectivenessCost Effectiveness Cost Effectiveness Cost Effectiveness

Me

tric

Query-Imaging& Career mgt

Staff Benefits

Staff

Performance

Staff Payment

Recruiting

& Staffing

Info

rma

tion

Bu

sin

ess

Pro

cess

Ro

le &

Re

spA

pp

Te

chn

olo

gy

Act

iviti

es

Staff prepares

HR Forms

LARS, TAX Kiosk LMS, Parking System HR Ben Pension, Passkey NextGen Healthcare IS

PeopleSoft, Solaris, WebSphere, IHS, Oracle,SAP, Edge Server, AIX,Oracle, W2K, oracle report Server, ASP, Web

Staff prepares OPE, Manager approves Manager prepares and approves performance awards, awards for excellence

Payroll Staff Receivable Time Recording Post Allowance

Staff prepares

HR Forms

OPE Performance Awards system Awards for Excellence system

HR Forms

Payroll System Staff Receivable Syst TRS Post Allowance Syst

W2K, Domino, PeopleSoft,ASP, Oracle, Power Builder

Leave and Attendance TAX Computation Staff Learning/Training Parking, health services Pension Benefits Administration

OPE Performance Mgt Performance Awards Awards for Excellence

PeopleSoft, Solaris, WebSphere, IHS, Oracle,SAP, Edge Server, AIX,Oracle

Job Information Agency Recruitment Consultant & Staff app. YP/JPA Recruitment HARP Retiree E-recruitment

HR officer prepares

HR Forms

W2K, Domino, W2K, IIS5, ASP, Oracle, Edge Server

Job World CATS YP System, JPA FARP Retiree System eRecruit

HR Query HR Imaging HR Kiosk Internal Communications

Staff

HR Forms

W2K, Domino, W2K, IIS5, ASP, Oracle, Edge Server

Yournet HR Query HR Imaging HR Kiosk

Metrics for HR Management: OPE, Performance Award, Award for Excellence, Time, learning

OPE, Perf. Award, A for Exc Time Time learningTime

Me

tric

Current State – Business Process Models Current status of business process modeling..

Business process models exist for some business processes but they are represented at varying levels of detail, quality and focus

In other cases, business processes are described as documentation (business procedures, administrative manuals, operational procedures, etc.)

For some processes, there are neither models nor procedural documentation

Recommend that as business analysts work with clients, they conduct a systematic inventory of business process models to…

Identify what exists and what is needed to harmonize it Identify gaps in existing processes Determine what is needed to fill the gaps

Business Process Model Registry Design an enterprise level repository for business process models consistent with

enterprise architecture best practices

Establish a registration and review process for all business process models which is consistent with the Business Architecture governance model

Empower business analysts to: Discover and inventory existing business process models Identify redundant models Identify variations in practice Identify and link models that describe steps or subprocesses in the same

business process Identify business processes which are not described by BP models

Standards-Based Modeling and Execution Languages Business architecture is implemented in degrees – it is possible to achieve

a level of interoperability without having a fully deployed SOA if consistent business semantics are used across applications

However a fully developed business architecture presumes a cross application, business-oriented service oriented architecture which is grounded in standards

Although the standards are not yet widely adopted, some major application vendors are supporting OASIS: BPEL for defining process flows WSDL for defining the interfaces to services used by the process XSD for defining the XML data structures used by the process

Establish Business Architecture Governance Model Because the business architecture has such high value to the organization, it

needs to be managed at the enterprise level

Because the business architecture is cross-organizational and cross-applications, roles and responsibilities associated with building and sustaining it need to be clearly defined and supported

We have proposed a governance and stewardship model which identifies and describes four roles and responsibilities, including: Business stewards at all three levels of the framework (Business Area, Business

Lines, Business Processes) Information Quality/Data Management Program Business Analysts Technical Custodians

Governance & Stewardship

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