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A High Value Approach to Business/IT Collaboration Roger Sessions CTO, ObjectWatch, Inc. [email protected] Twitter: @RSessions Linked-In: Roger Sessions

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Page 1: Roger Sessions

A High Value Approach to Business/IT Collaboration  

Roger SessionsCTO, ObjectWatch, Inc.

[email protected]: @RSessions

Linked-In: Roger Sessions

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[email protected]

Who is Roger Sessions- The Father of IT Complexity Analytics- Author of seven books and many highly influential white papers, including

- IASA Fellow

The IT Complexity CrisisThe Mathematics of IT SimplificationRevamping Public Sector IT Procurement to Favor Success and Small Business

- Keynote speaker at many conferences including two Gartner Research Boards.

- Visiting Professor of IT Complexity Analytics at University of the Andes.

Roger Sessions 2

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Roger Sessions [email protected]

Audience Check

• Executives• Developers• Architects• Business Specialists• Students

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Roger Sessions [email protected]

Presentation Outline

- We don’t know how to build big IT Systems. 

- Big IT needs a radical transformation. 

- The starting point is The Snowman Architecture. 

- The Snowman Architecture is a radical improvement. 

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Roger Sessions [email protected]

What is Radical Transformation?IT Driven

Implementation Intensive

Business Driven

Private Platforms

Delivery FocusProcess Focus

Short Term ValueLong Term Value

SimpleComplex

SmallBig

Design Intensive

Public Cloud Platform

Business Centric ArchitectureIT Centric Architecture

Fast DeliverySlow Delivery

ThreeTenets ofTransformation

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Roger Sessions [email protected]

The State of Large IT

- (Standish) 2009 Chaos report published by the Standish Group 

- GAO Report 08-105IT.

- The IT Complexity Crisis by Roger Sessions

“An estimated 85% of government IT projects are late, over budget or both.”- The Pew Center on the States, “Focus on Performance”, 2010

“Projects over $10M have a statistically zero chance of being delivered on time, on budget, and with required functionality.”

“OMB and federal agencies have identified approximately 413 IT projects--totaling at least $25.2 billion in expenditures for fiscal year 2008--as being poorly planned, poorly performing, or both.”

“The world economy is losing over $500 Billion per month to IT failure.”

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Roger Sessions [email protected]

Two StudiesChanceofSuccess 50

25

75

Size Standish (2009) $1.9M 10M+<$750Klabor cost(USD)

(Standish) 2009 Chaos report published by the Standish Group 

effort (person months)

(Sauer) The Impact of Size and Volatility on IT Project Performance by Chris Sauer, Andrew Gemino, and Blaize Horner Reich, Comms of the ACM Nov 07

Sauer<= 24PM($360K)

750PM($11M)

1700PM($25M)

2400+PM($36M)

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Roger Sessions [email protected]

To Summarize Studies

Projects under $1M are almost always successful.

Projects over $10M are almost never successful.

Projects over $20M typically exceed their budgets by over 220% and cost an additional 400% in lost opportunity costs. 

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Roger Sessions [email protected]

Relationship Between Project Size and Complexity

ComplexityofProject

Size of Project

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Roger Sessions [email protected]

BusinessArchitecture

Technical/ServicesArchitecture

DataArchitecture

Standard Methodology Doesn’t ScaleYour Standard Business/IT Architecture

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Roger Sessions [email protected]

Why Don’t We Split It Up?

Too many dependencies!

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Roger Sessions [email protected]

Relationship Between Project Dependency and Complexity

ComplexityofProject

Number of Dependencies

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Roger Sessions [email protected]

So What Does WorkSmall Sub-Systems Few Dependencies

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Roger Sessions [email protected]

Two Major Problems

1. When you split up a system you INCREASE the dependencies.

2. You must split up the system BEFORE YOU KNOW the dependencies.

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Roger Sessions [email protected]

A New Approach

Business Architecture

Technical Architecture

Service Architecture

Data Architecture

The Snowman Architecture

Smaller Systems Fewer Dependencies

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Roger Sessions [email protected]

Why Do I Call this a Snowman?

Business Architecture

Technical Architecture

Service Architecture

Data Architecture

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Roger Sessions [email protected]

How To Build A SnowmanThe Head consists of business functions that are synergistically related to each other and nothing else.

The Torso consists of the technical systems that support the head and nothing else.

The Arms implement the dependencies between business capabilities and nothing else.

The Bottom consists of the data needed by the Torso and nothing else.

Business Led:  The Head controls everythingSmall:  Less than few million $Simple:  Autonomous with minimal connection points

MaxSize:FewMillion$

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Roger Sessions [email protected]

Putting Snowmen Together

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Roger Sessions [email protected]

This Scales Without Limit

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Roger Sessions [email protected]

Getting the Head Right

Understand mathematics of equivalence relationships.

Understand functional dependencies.

Understand how the business contours project to lower layers.

Understand business capabilities.

Understand methodologies for early identification of synergies.

Understand tools to track synergistic relationships/dependencies.

Understand relationship between complexity and synergy.

SIP: Simple Iterative Partitions

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Roger Sessions [email protected]

SIP High Level

ProjectIdentification

DecompositionPreparation CapabilityAssignment

Sub-projectSpawning

CapabilityCompletion Requirements

MessageHarness

MessagingDetermination

DependencyDetermination

DataArchitecture

TechnicalArchitecture

BusinessArchitecture

IntegrationImple-mentation

SIP Preplanning Phase

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Roger Sessions [email protected]

 

Okay, so what does this buy me?

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Roger Sessions [email protected]

Complexity

ComplexityofProject

Size of Project

Zone of Death

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Roger Sessions [email protected]

Business/IT Alignment

Business

IT 

EnterpriseArchitecture

Poor Alignment Excellent Alignment

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Roger Sessions [email protected]

ROIExample: $20M Project

Traditional Approach Snowman Approach

Net: $2M investment yields $69M return

Budgeted 20 M$Average Overrun 228 %Expected Overrun 45.6 M$Lost Opp Costs 45.6 M$Total Cost 91.2 M$

Budget 20 M$Snowman Costs 2 M$Average Overrun 0 %Expected Overrun 0 M$Lost Opp Costs 0 M$Total Costs 22 M$Savings 69.2 M$

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Roger Sessions [email protected]

Auditing/Compliance

Very difficult to determine who changed data and why.

Easy to determine who changed data and why.

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Roger Sessions [email protected]

Security

Hard to Configure Easy to Configure

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Roger Sessions [email protected]

Flexibility

Hard to Change Easy to Change

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Roger Sessions [email protected]

Time to Failure

Frequent Catastrophic Failures Infrequent Local Failures

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Roger Sessions [email protected]

Time To Recovery

PrimarySnowman

BackupSnowman

Slow Recovery Fast Recovery

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Roger Sessions [email protected]

Cloud Effectiveness

$$$$$$$$

$

Expensive Cheap

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Roger Sessions [email protected]

Impact on Local Economy

Benefits Large Foreign Consulting Companies - Negative Impact on Local Economy.

Benefits Small Local Consulting Companies - Strong Positive Impact on Local Economy.

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Roger Sessions [email protected]

A Lot of BenefitsLower ComplexityBetter Business/IT AlignmentMore SecureMore FlexibleMore ReliableBetter for CloudGreat ROIStimulates Local Economy

Radical IT Transformation

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Roger Sessions [email protected]

Making the Transformation

Create a group to own the Snowman Architecture.

Choose a smallish project (~ 10M$).

Apply the principles.

Sell to the Business and IT.

Get Executive Buy-in.

Publicize the result, especially the ROI.

Start a  Radical Transformation of IT!

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Roger Sessions [email protected]

Summary- The Snowman Architecture delivers cheaper systems faster that better need the needs of the business.- The Snowman Architecture is based on three important ideas: 

- This is a tremendous value proposition for Enterprise Architecture with high ROI for business.

Business drivenSmall projectsSimple Systems

- These ideas can radically transform IT.

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Roger Sessions [email protected]

Suggested ReadingsA Fundamental Metric for Predicting IT Success by Roger Sessions (White Paper) at http://www.objectwatch.com/white_papers.htm#metric

The IT Complexity Crisis (White Paper) by Roger Sessions at http://www.objectwatch.com/white_papers.htm#ITComplexity

Radical IT Transformation (blog) by Roger Sessions at http://simplearchitectures.blogspot.com/2012/08/radical-it-transformation_14.html

Simple Architectures for Complex Enterprises (Book) by Roger Sessions.

The Mathematics of IT Simplification by Roger Sessions (White Paper) at http://www.objectwatch.com/white_papers.htm#Math

The Equation Every Enterprise Architect Should Memorize (blog) by Roger Sessions athttp://simplearchitectures.blogspot.com/2012/03/equation-every-enterprise-architect.html

SIP: A Project Optimization Methodology (webshort) by Roger Sessions at http://simplearchitectures.blogspot.com/2012/01/web-short-sip-methodology-for-project.html

The Relationship Between IT Project Size and IT Failure Rate (webshort) by Roger Sessions athttp://simplearchitectures.blogspot.com/2012/01/web-short-relationship-between-it.html

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Acknowledgements

The snowmen photos are all licensed under Creative Commons and taken from Flickr. They photographers are, in order of appearance:

- chris.corwin- The Year of Mud- Jason Alley- jcarwash31