So you've finally finished rolling out that new ERP system. Can you - - PowerPoint PPT Presentation

Ptech Inc. Ptech Inc.

So you've finally finished rolling out that new ERP

• system. Can you say by how many thousands it

will increase the bottom line in FY 2004? How about your web initiative—you just had to have it,

• f course, but is there any way to state specifically

and accurately how it increases shareholder value

• r satisfies Congress?

For that matter, just what is information technology worth to your organization? Some CIOs and technology champions say a question that broad is flat-out preposterous, but others aren't so sure anymore.

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Upgrading CFO Systems with EAI/ERP Requires an EA for Risk and Cost Avoidance

OMG

Felix Rausch 202-251-9512

Ptechinc.com 2/1/01

Vision is the art of seeing things invisible (J. Swift)

“Bus iness Ag i l i ty for e-Government i n the New

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Scope of EAI

If your IT workload is like most… Surveys* document: 70% of corporate program code is written solely to exchange information between different IT platforms. 35% of an IT budget is swallowed to integrate applications.

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EAI Definition

The combination of technologies and processes that enable custom-built and/or packaged business applications to exchange business-level information in formats and contexts that each understands

The Value of Information Increases with its Use

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The Problem

When it comes time to talk to the CFO, IT departments often fall back on efficiency measurements to prove their worth. "There is a lot

• f concern about maintaining the [IT] asset and

doing a good job of managing IT resources, but you're never going to save your way to prosperity," points out Bob Cawly, Meta Group

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The Challenge of Change

Formidable Global Competition Increasingly Demanding Customers Quantum Leaps in Technology Shrinking Windows of Opportunity Litigation Society (AMS and Mississippi)

Relentless, Multifaceted, Unforgiving Relentless, Multifaceted, Unforgiving Blindingly Rapid Change Blindingly Rapid Change

Ptech Inc. Ptech Inc. David Linthicum in his EAI Book

“…The need for EAI is the direct result of this architectural foresight, or rather, the lack of it. Until recently, architecture at the enterprise level had been virtually nonexistent.” “Architecture is a complex problem, however as with many complex problems, once it is broken down to its component parts, the solution becomes simply the aggregation of a number of solution sets. In this case the solution sets include a combination of a variety of approaches and several types of technology.

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Communication/Collaboration = Management of Expectations

• Technology is now crucial to the success of the business,

your CFO and the rest of the management team want to know what bang they're getting for their buck

• According to the Department of Commerce, more than 50

percent of all capital spending in the U.S is in IT.

• Executive team:'what are we getting for our money?'"
• But members of the executive team are less than thrilled

with the answers

• Why are those numbers so low?
• There is a perception that IT spending is out of control
• CIOs are not communicating values to their senior

management.

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The Current State of EAI

• Application to Application (A2A) integration in today’s

diverse business setting can be time consuming, expensive, risky and difficult to manage

• Many EAI tools have their origin in the middleware or

“plumbing” used to connect application

• Even the capabilities for data transformation and routing was

developed as extensions to the middleware itself and are far from being mature

• Currently many different tools must be cobbled together

without visibility as to their effect on one another in the holistic environment of a complex enterprise

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Point-to-Point Relationships

Fin Sys Fin Sys ERP ERP HR Sys HR Sys Admin Admin Legacy Legacy DB’s DB’s Legacy Legacy CFO ERP Vendors

Data Incompatibilities Enormous Data Duplication High Risk High Cost

DB’s DB’s CIO EAI Contractors

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Enterprise Knowledge Control Panel (EKCP) for EAI

The Integration of Business Processes and Applications is one of the main tasks of IT-shops EAI means – The automation of Business Processes

• Individual Integration ( based on the use of Middleware-Tools

as transport medium ) like Integration Server, Message Broker und Middleware Integration.

• Traditional Database-Integration (Individual-Developments
• EAI-Frameworks (Development and Runtime-Frameworks).
• Process-Integration (Connections on the level of Business-

Processes / innovative, but very complex) for which the usage of an EAI front-end component as a Portal in which all Processes are defined rather than programmed is essential.

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Do these questions sound familiar?

• Is my IT infrastructure in tune with the business lines’ needs who is

driving the ERP efforts

• How can I better synchronize the Agency financial business

processes and the IT support

• How can I better justify the cost of modernization and the

harmonization of the management’s and your expectations

• Am I getting the most out of what I have? How do I know that?

How do I construct a roadmap from my as-is state to the to-be

• vision. How much EAI? Where? What?
• How can I collaboratively engage my customers for a joint solution

and make them stakeholders

The more original the discovery the more obvious it seems afterwards (A. Koestler)

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• “We didn’t build any row 1,2 or 3 models and in many

cases no row 4 models!

• “We created severe logical (semantic) and physical

(technology) discontinuities.. (We DIS-integrated the data and the network)

• “Whatever models we created over the process of building

the systems, we didn’t retain to serve as a baseline for managing CHANGE!

• “We created a maintenance nightmare!”

John Zachman Message: What We Didn’t DO!

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• Build Models
• Store Models
• Manage (enforce) Models
• Change Models

“It is not adequate to merely produce running code, the long term value lies in the models themselves” “No amount of money or technology is going to fix the problem!” “Only Actual work is going to fix the problem!” “Someday, you are going to wish you had all those models, enterprise wide, horizontally and vertically integrated at excruciating levels of detail!”

John Zachman Message: What We Must Do Now!

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Desired Cost-effective Interoperability

C F O ERP Vendors

Information Service Layer

Fin Sys Fin Sys ERP ERP HR Sys HR Sys Admin Admin Legacy Legacy Legacy Legacy DB’s DB’s

Transition Translators

DB’s DB’s CIO E A I C

• n

t r a c t

• r

s

Ptech Inc. Ptech Inc.Enterprise Knowledge Control Panel for EAI:

• Is no EAI Motor but INSURANCE that both

parties (Client – Consultant/EAI Vendor) know exactly what is expected of them when an EAI implementation is considered.

• Can visually see, through planning by

modeling, which path in the EAI maze one has to take to achieve the goal with lower risk.

• Can best assure expectations of client and

control cost overruns

A little bit of planning goes a long way!

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A Blueprint (CAD System) is the Foundation for Building the real Thing

Knowledge grows when shared and grows when used; unused knowledge deteriorates."

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Web Publishing Web Publishing

Change Management Change Management

Enterprise eBusiness Architecture

One Data Set, One Rule Set, Unlimited Products to the WEB

Cost

Accountability Accountability Accountability Accountability

Team Architecture Business Relationship Class Class Use Use Case Case Technology Technology Architecture Architecture Agency Org Structure Business Object Process Step

Agency Business Architecture

Activity /Process/Service/ Product

Automates Automates

Statechart Statechart

Resource Effectiveness Accountability Accountability

Unified Unified Modelling Modelling Language Language

Accountability Accountability Implemented By Implemented By Implemented By Implemented By Project Management

Sequence Sequence Strategic Plans Strategic Plans

Applications, Data Applications, Data Code Generation Code Generation

Accountability Accountability Performance Measures Target, Actual, Budget Accountability Accountability

Agency Mission Agency Mission Customer Relationship LOB/Internal Relationship

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Methodologies Methodologies

Knowledge Capital Knowledge Capital Knowledge Maps Knowledge Maps & Meta Models & Meta Models

Traceability of Processes? Where to apply EAI Technology Tactics Tactics Objectives Objectives Strategies Strategies Locations Locations Goals Goals

Mission Mission

Visions Visions Capabilities Capabilities Constraints Constraints Obstacles Obstacles

Investment Investment Analysis Analysis

Projects Projects Costs Costs Time Time Project Project Status Status Budget Budget Systems Systems UML UML Applications Applications Files Files Use Case Use Case

Models Models

Records Records Corba, Java Corba, Java Web Web Data Fields Data Fields Databases Databases Network Network Skills Skills Jobs Jobs People People Processes Processes Workflow Workflow Responsibilities Responsibilities Bus.Rules Bus.Rules “As Is”, “To Be” “As Is”, “To Be” Roles Roles Organizations Organizations Procedures Procedures

Customer Customer Service Service

GPRA GPRA Policy Policy

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Enterprise Knowledge Control Panel For EAI

Knowledge-Driven Learning Organization Knowledge-Driven Management Systems Vendors & Vendors & Partners Partners Customers Customers Knowledge-Driven Information Systems Knowledge-Driven Strategies, Goals, Objectives Culture, Culture, Values Values Beliefs, Beliefs, Norms Norms

Changing Changing Threats Threats Changing Changing Market Conditions Market Conditions Changing Changing Capabilities Capabilities Changing Changing Technology Technology Changing Changing Regulations/Rules Regulations/Rules Changing Changing Opportunities Opportunities

Enterprise Architecture for EAI Enterprise Architecture for EAI

Knowledge-Driven Business Processes

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Strategic Recommendations by the Federal Government CFO Council

• Exercise Assertive Leadership
• Obtain Collective Buy In

– “The CFO Council and agency decision makers must support the reengineering of processes. System improvements will not be realized without first changing underlying business processes.”

• Establish and Adopt Standards
• Improve Relationships and Communication

– Establish Relationships and Communicate with the Private Sector – Enhance Interagency Cooperation

• Ensure a Holistic Systems Approach
• Reengineer the FMSS Schedule and Process

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GAO OCG-99-1 A Government-wide Perspective Page 79 … “Another area of concern is the implementation

• f IT architectures. As understood by the

Clinger-Cohen Act and Executive Branch Guidance, complete and enforceable systems architectures are essential foundations on which interoperability and coordination of related business processes and systems are built”.

23

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Challenges for Organizations

• Legacy to eCommerce

Architecting

• Islands of Data
• Difficulty in Accessing Data
• Security Needs
• Differing Platforms and Data

Formats

• GPRA, ITMRA, FAIR, Business

Architectures

• Manual Flowcharts
• Outsourcing Architectures
• No Single View of the Truth
• Volumes of Redundant Data
• Poor Data Modeling /

Definitions

• Multiple Complex

Technologies

• No overall comprehensive

view of the agency Building an eBusiness Architecture for EAI is a way to get people to share information without them getting defensive about it

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Data & Business Objects Application Warehouse

EAI Process EAI Process Warehouse Warehouse EKCP EKCP Strategic Strategic Intent Intent

Organization & Skills Management Control Systems Technology Infrastructure

Enterprise Framework for EAI Preparation Enterprise Framework for EAI Preparation

One Holistic Knowledge Base Agile Nuclear

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Why we need a Blueprint before Modernizing!

• Paint the landscape of the enterprise and the

problems to be solved for holistic visibility

• Gather and visualize intelligence about the

scope of the future project

• Gain insurance that the undertaking will be

completed on time, within budget with the predetermined performance

• Reduce risk of failure and cost overruns

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EKCP: WHERE TO APPLY THE GLUE FOR THE BUSINESS!

ACTUAL ENTERPRISE’s BUSINESS PROCESSES IT PROCESSES VALUE CHAINS IN THE CULTURAL ORGANIZATIONAL POLICY TECHNICAL AREAS Model of “As Is” Organization EKCP EAI Modules

ACTUAL ENTERPRISE’s BUSINESS PROCESSES IT PROCESSES VALUE CHAINS IN THE CULTURAL ORGANIZATIONAL POLICY TECHNICAL AREAS

Integration Model of “To Be” Organization EKCP

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Measuring EAI Success by Using the EKCP to

• Establish an baseline enterprise integration

architecture

• Establish a “To Be” Architecture highlighting

the critical integration points

• Establish a set of measures that define the

success of the organization

• Examine and measuring the current state of the

enterprise With such baseline consider the your goals and the amount of effort that will be required to realize them

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Why an EKCP for EAI?

• For the Commercial Market: EACP reduces Costs

– Because the Roadmap is known – Because the proper complexity reduction planning was done – Because of predictability and confidence of knowing the pitfalls – Because it significantly reduces the IT effort needed to achieve intra-enterprise integration – Because the Supply Chain integration scenario is mapped out – Because it accelerates benefits for CRM, ERP, and Supply Chain Mgt – Because it dramatically reduces Application Interfaces maintenance – Because it assists in implementing enterprise –wide integration standards

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Why an EKCP for EAI?

• For the Government Market: EACP reduces Risk

– By providing visibility of the overall interrelationships of different processes, information flow, and other activities – Because the Roadmap is known to achieve integration – Of not finishing on time – Of incurring Cost Over-runs – Of not achieving system performance – Of not getting user acceptance and stakeholder buy-in – Because of predictability and confidence of knowing the pitfalls – Because it assists in implementing enterprise–wide integration standards

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EAI Portal Value Added

◆ Knowledge Assets -- Increase the value of the organization by

transforming its knowledge capital into a tangible and sustainable asset that integrates service, people, process, costs, and technology

◆ Cyber Directory -- Capture rules and data to anticipate and

understand the impact of change

◆ “Virtual Walk-throughs” of the Enterprise ◆ Quick Response -- To user, budgetary, political and management

demands by aligning functional and technology infrastructure to its agency mission

◆ Learning Organization -- Increase the effectiveness inside the

agency, quit re-inventing the wheel

Ptech Inc. Ptech Inc. From CHAOS Today to ORDER Tomorrow

The EKCP payoff to current chaos is two-fold

• 1. The enterprise needs to understand the large picture

architecture: understanding the processes and the data that exists within the context of the other is the necessary first step in moving forward

• 2. Then, understanding the architecture, the enterprise

can determine which applications and data stores need to share information and why and how

With this basic requirement established, it is simply a matter of determining the correct business process, application, data architecture and enabling technology to solve the problem.

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DESIRED OUTCOME

• EKCP gives holistic view that shows where to apply EAI

cost-effectively and what EAI tools to apply effectively

• Extreme maneuverability among Relationships shows

critical paths for integration

• Bridge the Gap between IT and Business technically,
• rganizationally, culturally
• Cost (prevent vs. fix), Risk (reduction vs. extra cost) for

EAI Implementation

• Visualization and clarity for staged EAI Implementation
• Complete Integrity of Process Information for validating

EAI implementation in stages

• Architecture published (HTML) for collaboration

EKCP allows architects to become architects of maneuverability and glue as well as architects of value. EKCP allows architects to become architects of maneuverability and glue as well as architects of value.