The Centre Cannot Hold: Making IT Architecture Relevant In A Post IT World

The Centre Cannot Hold: Making IT Architecture Relevant In A Post IT World

Alan McSweeney

The Second Coming, William Butler Yeats, 1919

Turning and turning in the widening gyre

The falcon cannot hear the falconer;

Things fall apart; the centre cannot hold;

Mere anarchy is loosed upon the world,

The blood-dimmed tide is loosed, and everywhere

The ceremony of innocence is drowned;

The best lack all conviction, while the worst

Are full of passionate intensity.

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May 16, 2017 3

Wall Separating Real Business Concerns With Transient IT Technology Trends

What The Business Wants

1. Securing the IT environment 2. Managing and retaining data 3. Managing IT risk and compliance 4. Ensuring privacy 5. Enabling decision support and analytics 6. Managing System Implementations 7. Preventing and responding to computer

fraud 8. Governing and managing IT investment/

spending 9. Leveraging emerging technologies 10. Managing vendors and service providers

Apparent IT Technology Trends

1. AI and Advanced Machine Learning 2. Intelligent Apps 3. Intelligent Things 4. Virtual and Augmented Reality 5. Digital Twin 6. Blockchain 7. Conversational Systems 8. Mesh App and Service Architecture 9. Digital Technology Platforms 10. Adaptive Security Architecture

The Business Experience Of IT

• The business experience of IT systems are: − Slow and costly to deliver and all to frequently late and not what

the business needs

−Unmanageably complex and costly to maintain

−Hindering the organisation's ability to respond to business and economic changing environment

−Not integrated

• Mission-critical information is consistently out-of-date and/or actually incorrect and/or only partially available

• A culture of distrust persists between the business and technology functions of the organisation

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IT Too Often Fails to Support Business Change Effectively

• Technology integration is costly, risky and complicated

• Information is everywhere but getting access to the right information at the right time is very difficult

• The business wants IT to be fast and flexibility

• The business gets IT that is sluggish and rigid

• Modifying system behaviour takes too long and changes are difficult to communicate and implement effectively

• Much of IT system and operations expenditure is bloated and fixed where operations run with excess redundant capacity

• IT seen as a cost centre and not a source of business value

Trends In Business Use Of IT Affecting The Relevance Of IT Architecture

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Outsourcing and the divestment of IT

functions in response to business wishes to

remove the overhead

Business need to respond to the

interrelated developments of

digital, mobile and social computing

and perceived inability of the

central IT function to respond

Business shift to cloud service

providers offering

infrastructure-less solutions

with no perceived IT involvement


• Business shift to cloud service providers offering infrastructure-less solutions with no perceived IT involvement that can be operational quickly

• Business need to respond to the interrelated developments of digital, mobile and social computing and perceived inability of the central IT function to respond

• Outsourcing and the divestment of IT functions in response to business wishes to remove the overhead

• Business avails of these trends to bypass what they view and experience as an unresponsive central IT function and go directly to external providers

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• Business is tending to shift from internal IT function to external solution and service providers because of perceptions that the internal IT function cannot deliver solutions to meet business needs

• IT provides a competitive advantage to businesses but the IT solutions do not have to be provided internally

• Business can and does bypass the IT function if it does not listen to the business and deliver solutions that enable delivery of business objectives

• The business will look elsewhere for the necessary IT solutions

• The consequence will be a fragmented and balkanised IT solution landscape that is costly to operate and support

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• It is now all too easy for the business to bypass the central IT function

• There are many easy options for the business while selecting the internal IT function is too commonly the hard option

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Increasing Trend In Outsourcing Non-Core Functions

• Increasing and continuing trend of organisations moving from in-house solution delivery to sourcing solutions externally

• Intended to improve operational efficiencies by using external suppliers’ perceived abilities to provide cost-effective, fit-for-purpose solutions quickly using the right technology

• Responsibility and accountability for solution delivery and operation stills lies with the acquiring organisation

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IT Solution Acquisition Trends

• Greater level of solution acquisition rather than custom development

• Greater acquisition of services with lengthier service relationships

• “Under the Cover” acquisition/outsourcing in the form of cloud/XaaS − Cloud leading to ad hoc proliferation of outsourced services as

business functions bypass what is perceived as slow, expensive IT

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Divestment Of Non-Core Functions

• Organisations divesting themselves of what they see as non-core functions

• Example of the application of Coase’s Law on the Nature of the Firm − A firm will tend to expand until the

cost of organising an extra transaction within the firm become equal to the costs of carrying out the same transaction on the open market

− When it is cheaper to buy the service externally it will generally be bought externally

Core

Business

Non Core

Function

Non Core

Function

Non Core

Function

Non Core

Function

Non Core

Function

Non Core

Function

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Divestment Of Non-Core Functions

• Outsourcing of IT is because maintaining an internal IT function is seen as not relevant or no longer offers a competitive advantage

• Shrinking core competency focus as organisations move from in-house solution delivery to sourcing solutions externally

Core

Business

Non Core

Function

Non Core

Function

Non Core

Function

Non Core

Function

Non Core

Function

Non Core

Function

May 16, 2017 14

Business View of IT

• IT is viewed by the business as being

• Expensive

• Not connected with business strategy and operations

• Unresponsive to the changing needs of business − Viewed as a critical issue as business agility and responsiveness are essential

for competitiveness

• Undefined and unclear as a business asset − In terms of financial cost and value − Return on investment and value for money from IT is relatively poor − The capability the asset should deliver to the business

• Not delivering its promises

• Business change projects cost more and deliver less value than expected or promised

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Causes of Business View of IT

• Business applications tend to be implemented on a project by project basis for specific purposes without overall context

• Project benefits and success have been measured on specific project costs, value and time to market without measuring the long term enterprise-wide cost and value

• Average 70% of total IT budget on run-the-business operations and 30% on new solution investment

• Technology innovation has tended to deliver specific short-term benefits but in the long term can make matters worse

Shadow IT Expenditure – IT Architecture Failure And A Post-IT World

• CEB Global - estimate in 2013 that 40% of IT expenditure does not go through the central IT function

• Everest Group - estimate in 2017 that 50% of IT expenditure does not go through the central IT function

• The problem of the business bypassing the central IT function is getting worse

• Shadow IT is an unpleasant reality

• Shadow IT is a symptom of a post-IT world − The central IT function loses relevance and control − Businesses reduce their reliance on the core IT function

• The extent of the problem may be masked by IT outsourcing which may be notionally counted as a central IT spend

• The failure of IT architecture to engage with business requirements owns part of the blame

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Pressures On Business

Business

Globalisation Service

Focus and Customer

Expectations

Challenging Economic

Circumstances

Consolidation

Increased Regulation

Business and Technology

Changes

Mobile and Social

Computing Changes

Competition

New Business Models

Increased Pace of Change

Cost and Efficiency Pressures

Business Pressures Are Driving Business And The Need for IT Change

• Globalisation − Customers, partners, suppliers and greater competition − Connectedness driving value chains

• Service Focus and Customer Expectations − Differentiation and shareholder value increasingly

derived from service experience

• Challenging Economic Circumstances − Need to cut costs and demonstrate real savings − Justify technology investments

• Consolidation − Mergers, acquisitions, takeovers and the need to

integrate IT systems, platforms and data

• Increased Regulation • Industry regulations, consumer pressure and competition driving

openness • Increased regulation and governance - business is turning to IT to

help and IT struggling to respond

• Business and Technology Changes − IT becoming commoditised - growth of standards-based

technology means that proprietary solutions provide less differentiation

− Speed of technology change − Outsourcing where the right outsourcing decisions

require an understanding of how systems contribute to the business

• Mobile and Social Computing Changes − New platforms and technologies creating customer new

expectations of business that IT must respond to − New platforms and technologies offering opportunities

to change the way in which business is conducted that must be supported by IT system changes

− New platforms and technologies allowing competitors to differentiate themselves that IT must help the business in responding to

• Competition − Greater competition from businesses with different

business models means both the need to reduce cost, improve efficiency and change business structures and associated IT systems

• New Business Models − Newer ways of doing business means the need for new

IT systems and technologies

• Increased Pace of Change − Change is happening more quickly reducing the time the

business and IT has to react

• Cost and Efficiency Pressures − Need to do more with the same or less

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Business Pressures And Business IT Needs

• The pressures the business experiences gets passed to the IT function in order to deliver solutions to meet the challenges

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Business Objectives

Business Operational

Model

Business Processes

Required Operational

Business Systems

Business Strategy

Business IT Strategy

Globalisation

Service Focus and Customer Expectations

Challenging Economic Circumstances

Consolidation

Increased Regulation

Business and Technology Changes

Competition

Mobile and Social Computing Changes

New Business Models

Increased Pace of Change

Information Technology

The Business Needs To Operate,

Respond To Pressures And

Innovate

=

Cost and Efficiency Pressures

Pressures On Business Means Pressures On IT

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IT Strategy and

Delivery

Business Strategy and

Requirements

Business Pressures

If the IT function cannot react to

the requirements of the business, the business will go

elsewhere

Business shift to cloud service

providers offering infrastructure-less solutions with no

perceived IT involvement

Outsourcing and the divestment of IT

functions in response to business

wishes to remove the overhead

Business need to respond to the

interrelated developments of

digital, mobile and social computing

and perceived inability of the

central IT function to respond

Business Objectives


Model

IT Architecture

Solution Implementation

And Delivery

Management And

Operations

Business Processes


Business Systems

Business Strategy

Solution Design/

Selection/ Sourcing

Business IT

Strategy

IT Function Strategy

IT Function Structure,

Approaches, Standards

Required IT Operational

Processes

Required IT Infrastructure

Business Systems

Infrastructural Systems Design/

Selection/ Sourcing

IT Function Resourcing And Management

Idealised View Of Business And IT Linkage And Alignment

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IT architecture should act as a glue joining the

business strategy to the IT strategy

IT architects should be the enablers of this orientation

of business and IT

Idealised View Of Business And IT Linkage And Alignment

• The idealised view of the alignment of business and IT shows a direct link between business strategy to business IT strategy to IT function strategy

• The IT architecture function plays a key role in joining both sides

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The Theoretical Benefits Of IT Architecture

Unmanaged Complexity in IT

Landscape Increased Cost

Reduced Flexibility

Delays in Delivering Changes

Duplication in Resources to

Develop, Operate and Maintain

Business Systems

Cannot to Exploit Economies of Loading and

Scale

Longer Design, Build, Test and Delivery Time

Complexity Causes

Difficulties and Uncertainties

Leads To ..

… Thus Negatively Impacting on

Business Performance …

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But An Ineffective IT Architecture Function Causes The Problems It Should Be Solving


Landscape Increased Cost

Reduced Flexibility

Delays in Delivering Changes

Duplication in Resources to

Develop, Operate and Maintain

Business Systems

Cannot to Exploit Economies of Loading and

Scale

Longer Design, Build, Test and Delivery Time

Complexity Causes

Difficulties and Uncertainties

But An Ineffective

Architecture Function Leads to

Business Bypassing IT

Multiple Separate Solutions

Selected Without Con-ordination


Landscape

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Notional Value Of IT Architecture

Appropriate and Effective IT

Architecture … Promotes Actions and

Decisions That …

Align Information Technology Plans and Investments with Business Priorities and Requirements

Result in More Integrated Operations Responsive to Customer and Business Requirements

Promote a More Efficient and Effective IT Infrastructure

Facilitate Cross-Organisational Sharing of Enterprise Information

Recognise Innovations and Best Practices Across the Enterprise

Ensure Traceability of Decisions Back to Principles and Rules

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Notional Value Of IT Architecture Not Achieved

Appropriate and Effective IT

Architecture

Align Information Technology Plans and Investments with Business Priorities and Requirements

Result in More Integrated Operations Responsive to Customer and Business Requirements

Promote a More Efficient and Effective IT Infrastructure

Facilitate Cross-Organisational Sharing of Enterprise Information

Recognise Innovations and Best Practices Across the Enterprise

Ensure Traceability of Decisions Back to Principles and Rules

But the IT Architecture

Function is All Too Ineffective

And Fails To Deliver The

Expected Benefits

What The Solution Does

Dimensions Of Business Needs Of IT Solutions

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How Quickly The Solution Is Operable And Usable

Lots Of Unnecessary

Functionality At The Expense Of Long Delivery

Time Is Not What Is Needed

Dimensions Of Business Needs

• The business needs appropriate solutions delivered quickly

• The business needs leadership in understanding what the need

• The business needs active engagement from the IT function and IT architecture

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Business Objectives


Model

Business Processes


Business Systems

Business Strategy


Business And IT Linkage And Alignment – The Reality

• What really happens is that the IT function all too frequently reacts slowly and only partially to business pressures and needs

• The operation of the IT function is opaque to the business

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Information Technology

Function

IT Architecture Role Landscape

• Multiple overlapping inward-looking technology-focussed dogmatic siloed disciplines

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Enterprise Architecture

Business Architecture

Enterprise Information Technology

Architecture

Information Architecture

Enterprise IT Information Systems

Architecture

Enterprise IT Technology

Infrastructure Architecture

Enterprise Security

Architecture

Enterprise Architecture Governance

Solution Architecture

IT Architecture Role Landscape – Some Questions

• Is the complexity of IT architecture and its multiple separate views contributing to the problems between business and IT?

• Are the separate IT architecture functions too inwardly focussed rather than being business focussed?

• Is the hierarchy within IT architecture roles with enterprise architecture perceived as the highest ranking function part of the problem?

• Is there a need for an overarching IT architecture function – not enterprise architecture - that co-ordinates the activities of specific IT architecture roles?

• Is there a need for non-technology involvement in IT architecture to provide a business dimension to ensure linkage between architecture and business exploitation of technology?

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IT Architecture Is Rarely About The Enterprise

• All to frequently inwardly focussed, staffed by IT personnel • Demonstrates aspects of groupthink and focalism • Too remote from business concerns and not business oriented and focussed • Concerned with documenting current IT technology state, standards and

processes in detail • Too dogmatic • Focused on compliance, control and government and adherence to rules • Obsessed with architecture frameworks, models and patterns • Overly controlling • Reactive • Inflexible • Communicates to the business badly, if at all • Not concerned with delivery • Does not measure its delivery in terms of business benefits realised

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IT Architecture Function Groupthink

• The need for agreement, accord and compliance within the group results in a flawed, illogical and inhibited decision-making processes and decisions

• Group becomes dominated by small number or single individual who forces their beliefs on the group

• Tendency for consensus and agreement and the desire to minimise contention means alternatives are not fully evaluated

• Group isolates itself from information on alternatives

• Disagreement and dissent are quashed or concealed through self-censorship

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Groupthink Symptoms And Characteristics

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Groupthink

Exaggeration Of The Power And Rightness

Of The Group

Illusion of Invulnerability

Members ignore obvious danger, take extreme risk, and are overly optimistic

Illusion of Morality

Members believe their decisions are morally correct, ignoring the ethical consequences of their decisions

Closed-Mindedness

Collective Rationalisation

Members discredit and explain away warning contrary to group thinking

Excessive Stereotyping

The group constructs negative stereotypes of rivals outside the group

Uniformity, Unanimity and Suppression of

Dissent

Pressure for Conformity

Members pressure any in the group who express arguments against the group's stereotypes, illusions, or

commitments, viewing such opposition as disloyalty

Self-Censorship

Members withhold their dissenting views and counter-arguments

Illusion of Unanimity

Members perceive falsely that everyone agrees with the group's decision; silence is seen as consent

Mindguards Some group members appoint themselves to the role of

protecting the group from adverse information that might threaten group complacency

Technology Influences And Impacts On Business And IT

• An effective business oriented IT architecture function can get the correct balance between too little and too much, too slowly and too quickly

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IT Architecture As Internal Business Consulting And Advisory Function

• What IT Architecture Can Do

• Identify trends in advance that offer opportunities or

represent challenges

• Assist with the design and development of new business models

• Acquire the skills and experience to be a credible business advisor

• Be able to translate innovation and creativity into practical, realistic, implemented and operated business solutions

• What IT Architecture Must Do To Achieve Its Potential

• Take an appropriate and sufficient approach to

architecture

• Take a realistic approach to innovation − Radical innovation − Incremental innovation − Innovation By reapplication

• Focus on simplicity and speed rather than completeness and perfection

• Understand appropriate complexity

• Be able to react to changes quickly

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IT Architecture – Translating What Into How

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How What

How What

Translate the What of business requirements into

the How of technology and process

Translate the What of new

technologies into the How of the application to the business

Co-Ordinated And Business Focussed IT Architecture Function Structure

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IT Architecture Management, Co-ordination and Delivery Business Involvement

IT Architecture Team

• Needs to operate as a team rather than a set of siloed internally focussed IT roles

• Involve business as well as technologists

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Co-Ordinated And Business Focussed IT Architecture Function

• Eliminate the divisions between the separate IT architecture roles

• Get the business involved in the IT architecture function

• Manage and co-ordinate all IT architecture centrally

• Measure delivery and benefits achieved

• Outward, future-oriented

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The Importance Of Early Engagement In IT Architecture

• Early engagement in the solution delivery process occurs before any solution delivery project is initiated

• The objective is to is understand the scope, requirements, objectives, approach, options and to get a high-level understanding of the likely resources, timescale and cost required before starting the project

• Allow the feasibility of the solution options to be assessed

• Converts a request from the business to an explored and refined high-level solution proposal that facilities informed decision-making

• Early engagement is the IT function providing true consulting services and value to the business − Being a partner to the business

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Solution Delivery

Solution Delivery Phases And Early Engagement

Project Stages/ Timeline

Pro

ject A

ctivity/ Fun

ction

Early Engagement

Concept Initiate Plan Design Build Test Deploy Manage

and Operate

Project Management

Business Function

Business Analysis

IT Architecture

Implementation and Delivery

Test and Quality

Organisation Readiness

Service Management

Infrastructure and Communications

Time

Business Functions/

Roles

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An Effective Early Engagement Process Requires …

• A consistent, organised and controlled approach to performing such engagements

• A standard method for performing analysis, collecting information, engaging with the business, making assessment and solution option identification

• A process for managing early engagements from resources required to engagement with the business to prioritisation to quality management, assurance and control

• A standard and consistent approach for representing the results of the engagement

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IT Needs To Deliver Business-Oriented Solutions

Technology Landscape

Supplier Ecosystem

IT Needs to Mediate Between the Business and Suppliers/ Technologies,

Acting as a Lens Focussing Business Needs on Appropriate Solutions

IT Needs To Focus

Appropriate Services on Appropriate

Suppliers and Technologies

Business

Required IT

Solutions

IT Lens

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IT Lens

• The IT function needs to be a lens focussing and concentrating solution needs onto solution options

• The IT function needs to successfully mediate between the business as the originator of a solution requirement and the solution and its provider, either internal or external or both

• The IT function needs to be good at moving from analysis and option identification to an implementation decision quickly and effectively

• IT architecture is the solution lens

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IT Function Mediating Between Solution Requirements And Solutions Delivered

• The IT function needs be skilled at the co-ordination of the acquisition and procurement of delivered operable usable solutions

• IT architecture needs to design solution landscape to meet the business needs

• IT needs to be good at solution delivery and provision along the solution journey from initial need to service introduction and transfer to production

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Business Objectives


Model

IT Architecture

Solution Implementation

and Delivery

Management And

Operations

Business Processes


Business Systems

Business Strategy

Systems Design/

Selection


IT Architecture In Business And IT Context

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IT Architecture needs to be able to contribute to the development of business strategy and to be trusted to be able to make a contribution

How the business can use technologies and how the business should be shaped to take advantage of

technologies

Provide advice on the potential of new technologies and how to react to technology changes

Offer real business consulting and the addition of business value

Three Interrelated Strategies – Business, Overall Organisation IT Strategy And Internal IT Function Strategy

• Business Strategy − Defines the strategic goals,

imperatives and initiatives to direct the business

− Business strategy is the principal driver of IT strategy

− IT strategy is developed to support the business strategy

− IT can also provide opportunities to reshape the business strategy

• Organisation IT Strategy − Defines the strategic direction

of information technology within the organisation required to support and achieve business strategy.

• IT Business Function Strategy − Defines the strategic direction

of the IT function to develop, deploy, operate, manage and support the IT systems needed by the business

− Includes processes and supporting technology

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IT Business Function Strategy

Locations and Offices

Systems and Applications

Business Processes

Technology

Organisation

Information and Data

IT Strategy Contexts and Perspectives on Change and Impact

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Business-Oriented Strategy Context



Business Processes

Technology

Organisation


Technology-Oriented Strategy Context



Business Processes

Technology

Organisation


• Two `required components of the strategy of the IT function

− Business-Oriented IT Strategy Context

• Business Processes focuses on the actions, how and in what sequence activities are carried out, what rules are followed, and the types of results obtained

• Organisation focuses on the people and organisations involved in the change: their culture, capabilities, capacities, roles, structures, and organisational units

• Location and Offices focuses on the geographic distribution of locations where business is conducted and the characteristics of various location types

− Technology-Oriented IT Strategy Context • Information and Data focuses on business rules,

content, structure, relationships, and the transformation of information used by processes and applications

• Systems and Applications focuses on the capabilities, structure, and user interface of software applications and components

• Technology focuses on the hardware, system software, and communications infrastructure used to enable and support systems and services

Getting The Introduction of New Technologies Balancing Act Right


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React Too Quickly

React Too Slowly

Implement Too Little

Implement Too Much

Technology Influences And Impacts On Business And IT

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New technologies offer the potential for new

opportunities, if effectively implemented

and used

The use of new technologies by competitors and

customers forces the organisation to react

New technologies may not deliver their apparent promise and potential

Implementing new technologies has direct and indirect costs to the

organisation: lost opportunity elsewhere

Extended IT Architecture Balancing Act

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React Too Quickly

React Too Slowly

Implement Too Little

Implement Too Much

Organisation- Wide

Limited to Business Function

Tactical Focus

Strategic Focus

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IT Architecture And The “I” Word

• The word Innovation is being used and misused pervasively without clear definition, meaning or understanding

• Every organisation claims to be pursuing and driving innovation or offering innovation development services

• But are they?

• Innovation is not just about ideas

• Innovation is about driving the generation of good ideas and ensuring their appropriate adoption in order to generate value

• Innovation is or can be a process (that can be measured)

• Innovation is about generating business value – an idea without implementation has little meaning

• IT architecture needs to be an IT innovation powerhouse

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Innovation =

Good Idea That is Defined and Validated

+ Appropriate Implementation and Adoption

+ Generation of Value

May 16, 2017 55

Innovation Can Be …

A new idea

OR

An existing idea or process that is improved

OR

An existing idea or process implemented or applied elsewhere

May 16, 2017 56

Innovation …

• … Is not necessarily one big idea

• It can be lots of little ideas

May 16, 2017 57

Innovation Is All About Value

ΣValue{ } >> Value{ }

• Sometimes …

May 16, 2017 58

Where And What Are The Innovation Ideas?

Innovation Area Radical Innovation Incremental Innovation

Innovation By Reapplication

Business Model

Networking and Alliances

Core Processes

Enabling Processes

Product Performance

Product System

Service

Channel

Brand

Customer Experience

Summary

• Business has a consistently poor experience of the internal IT function

• It is now all too easy for the business to bypass the central IT function

• If the IT function cannot react to the requirements of the business due to business pressures, the business will go elsewhere

• Shadow IT - the acquisition of IT solutions outside the control of the IT function - is an unpleasant and common reality − Shadow IT is a symptom of a post-IT world − The central IT function loses relevance and control

• Businesses reduce their reliance on the core IT function

• IT architecture should act as a glue joining the business strategy to the IT strategy

• IT architecture needs to operate as an internal business consulting And advisory function


• The IT Architecture team needs to operate as a team rather than a set of siloed internally focussed IT roles, involving business as well as technologists

• IT architecture can lead the innovative application of IT to delivery business value

• Effective early engagement in the solution delivery process delivered through IT architecture occurs before any solution delivery project is initiated

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More Information

Alan McSweeney

http://ie.linkedin.com/in/alanmcsweeney

16 May 2017 60

http://ie.linkedin.com/in/alanmcsweeney

The Centre Cannot Hold: Making IT Architecture Relevant In A Post IT World

Technology

Transcript of The Centre Cannot Hold: Making IT Architecture Relevant In A Post IT World