|By Sanjeev Khurana||
|February 7, 2013 12:00 PM EST||
Managing complexity is difficult in any growing business. As companies innovate, add new business lines, expand their global reach, cater to increased volume, or adopt new regulatory rules, processes proliferate and the discipline surrounding them goes out of the window. Moreover, the IT that supports these processes becomes more entangled as aging legacy applications jostle with new applications to support the needs of the business. Over time the technology that support this business unravels, causing the environment to suffer from instability and poor performance and become difficult to change and maintain. In short, it lowers business efficiency and effectiveness.
A sound Enterprise Architecture (EA) approach is required to ensure that both the business and technology are well aligned and will help restore order to this landscape. An Enterprise Architecture is a description of the goals of a company, how these goals are realized by business processes, and how these business processes can be better served through technology. EA is about finding opportunities to use technology to add business value.
The primary purpose of an EA is to inform, guide, and constrain the decisions for the enterprise, especially those related to IT investments. The true challenge of EA is to maintain the architecture as a primary authoritative resource for enterprise IT planning. This goal is not met via enforced policy, but by the value and utility of the information provided by the EA.
Why Have an EA Approach:
- Provides a basic framework for major change initiatives
- Divides and conquers technical and organizational complexities
- Supports business and IT budget prioritization
- Improves the ability to share and efficiently process information
- Provides the ability to respond faster to changes in technology and business needs
- Reduces costs due to economies of scale and resource sharing
- Enhances productivity, flexibility and maintainability
- Serves as a construction blueprint and ensures consistency across systems
- Supports decision making
More specific benefits include:
- Simplified application development
- Location transparency
- Horizontal scaling
An EA is a blueprint that is developed, implemented, maintained, and used to explain and guide how an organization's applications landscape works together to efficiently accomplish the mission of the organization. An EA addresses the following views:
- Business activities and processes
- Data sets and information flows
- Applications and software
The Four Pillars of Enterprise Architecture:
1. Business Architecture
Business Architecture realizes the business strategy. It describes how we organize our business processing to meet the strategic needs of the business. It should allow us to maximize the flexibility of the business to respond to changing business environments, reduce the complexity of our environment by simplifying business processing and reduce the effort required for application implementation and maintenance. It provides a view of the business and describes where we can improve business functions.
- Create processing utilities for common functions within the back office area that support cross products such as confirmations, cash settlement, security settlement, and collateral management
- Create a single common analytics versus an individual analytics library used for pricing products. Common analytics can be used for all front office trading desks, for different functions such as front office and risk
2. Data Architecture
The data architecture describes the way data will be processed, stored and used by the organization. It lays out the criteria on processing operations including the whole flow of the system. It should increase the accuracy and timeliness of business data used by applications.
An example of patterns used is Master Data Management (MDM) - its objective is to provide processes for collecting, aggregating, quality-assuring, persisting and distributing such data throughout an organization to ensure consistency and control in the on-going maintenance and application of this information. Moving to a model of a single golden data source will eliminate duplication and inefficiency, e.g., single bond static data sourced from multiple data vendors and publishing it to multiple systems (e-trading, trading, risk and PL, and settlement systems.)
Implement a firm-wide description of common data objects, e.g., fpML (open standard XML standard for electronic dealing and OTC derivatives processing). This will reduce the risk of the data being misunderstood and provide a higher quality of data flowing through the organization thereby increasing efficiency and effectiveness.
3. Applications architecture
Applications architecture describes the structure and behavior of applications used in a business, focusing on how they interact with each other and with users. It's focused on the data consumed and produced by applications rather than their internal structure.
- Enforcing the use of a golden source of data, e.g., instrument static, counterparty static, market data, etc.
- Standardizing on an application platform and interfacing approach
- Implementing a standard application monitoring framework for all applications to report the business status
4. Technical Architecture
This describes the common technology components that will be used to build our applications. This includes standards for vendor packages, third-party products and application components, e.g., servers, networks, desktops, middleware, security, storage, and virtualization. This will describe the current and target state.
- SSO should be a standard mechanism for user authentication for all enterprise applications
- Implement a server virtualization strategy to help reduce costs and increase flexibility
- All critical applications should have a recovery time of less than an hour
- Have a technology menu of strategic products that development teams can use for projects
Building an EA for Your Organization
It is important to understand the business strategy of the organization and this drives everything. This vision and strategy will drive where the organization's IT environment and capabilities should be in the next three years.
The next step in this process is to characterize the current status and snapshot the existing IT capabilities. The word "characterize" is used because it isn't usually necessary to identify and analyze everything IT or information related in the organization. You just need enough data to understand the basic situation you are in and the problems that exist, and to develop an idea of where you want to go. You need to understand where the inefficiencies and duplications exist. The question is whether IT is being used in the most effective way to accomplish the organization's program goals.
What Work Is Performed?
You must have a clear understanding of what work the organization performs and where it is performed (anywhere from one location to multiple locations throughout the world).
What Information Is Needed and by Whom?
You need to understand the basic flow of information, not just within your organization but also to and from your organization, and what the information consists of and how that information is organized.
What Applications Are Used to Process that Information?
What software is used to process, analyze, etc., the needed information? What types of data structures and protocols are used?
What Technology Is Used to Perform the Work?
What IT hardware infrastructure is currently used?
Having formed an understanding of where you currently stand, you now need to try to figure out where you need to be in the future. There are two main drivers for this:
- Business drivers tell you that you need to do business differently. Customers may be demanding better or different services.
- Technology drivers tell you that technology is providing you with options for doing things better
The target architecture is the heart of the process. The four components (business architecture, data architecture [e.g., data sets and information flows], application architecture and technical architecture) of the EA need to be modeled separately. Security considerations should be addressed throughout. The process consists of defining each set of architectural components and its key attributes. The result is an organized set of definitions and models to reflect the different views of the architecture. Again, the relative complexity of the situation will determine how detailed and extensive this effort and documentation needs to be. The four components are then synthesized into a comprehensive target architecture.
Due to the rapid pace of technology advancement, the goal should be to produce an "evolvable" architecture that can accommodate change easily. Some rules to help to produce this are - keep things modular and loosely coupled, have well-defined boundaries between systems and components, reusable logic should be divided into services, use industry-standard interfaces, use open-systems standards, and use common mechanisms whenever possible. Planning for loosely coupled, modular systems with clear boundaries allows you to change portions of the IT architecture without having to revise other aspects in the architecture, and also helps you see how changes in one part of the architecture may affect other elements.
At this point, you are in a position to determine the gaps between your current and target architectures. What are the differences between your baseline and the architecture you want to achieve?
For architecture to succeed within an organization, it is essential to have the support and commitment of senior management. This major initiative needs sponsorship by the CIO, and senior management need to be supportive and fully involved in ensuring it is a success. The governance process needs to ensure that:
- People planning and developing IT systems do so in a way consistent with the target architecture
- Procurements are consistent with the target architecture
- Determine if exceptions or changes to the Enterprise Architecture are needed for a specific system or procurement
- Track the implementation of the architecture migration plan and the benefits/flaws of the Enterprise Architecture
- Keep the EA up-to-date, thereby reflecting changes in the business, new technology, etc.
There needs to be integration with the program planning and the budget processes.
Technology is changing rapidly and business needs and processes change over time. Therefore, the target architecture, whether fully implemented or not, that addresses how IT and information will serve business needs must be periodically reviewed and updated to reflect these changes.
It is important that EA is not used as a mechanism that attempts to slow down delivery unnecessarily; it needs to add value to the business by producing superior solutions and not add unnecessary bureaucracy. A pragmatic approach to architecture is needed that balances the needs for agility and innovation yet delivers the efficiency and effectiveness in the technology solution provided by EA.
Architecture principles define the fundamental assumptions and rules of conduct for the IT organization to create and maintain IT capability. It provides a compass to guide it to its target architecture. A well-defined architecture principle consists of a name, definition, motivation and implications. Table 1 shows the Architecture Principles on the Reuse, Buy, Build Principle.
Table 1: Reuse, Buy, Build Principle
We prefer to reuse existing assets over buying, and buying over building
We are not a software company
Our company has many IT assets that are underleveraged because we have previously favored building rather than reusing or buying
We have many redundant applications and reducing this through reuse will reduce maintenance costs and improve system stability
Architecture Governance will ensure projects adhere to this principle.
Our company will develop an understanding of functional and technical assets available for reuse. This will be kept up to date.
We will strive for fewer and deeper software vendor relationships and need to influence their roadmaps to mesh with our needs
To add a new tool to our portfolio, we will also plan and fund replacement of the installed base of the former tool
Architecture principles become a core shared assumption for all initiatives in the enterprise. This radically simplifies decision making. It ensures that all projects align with and are moving toward the target state
Other enterprise architecture principles an organization might consider include:
- Don't Automate Bad Business Complexity Principle
- Avoid Package Customization Principle
- Prefer Service Orientation over Application Orientation Principle
- Don't Over / Under Engineer Principle
An example of the Banking Specific Architecture Principle:
- Only a master source of data can create business events
- All processing should be STP with manual interventions only for exceptions
- Combine multiple analytics libraries into a single common library (depends on trading desk size and product complexity!)
EA is important and without it organizations will be unable to deliver technology in an efficient and effective manner. If a project team works anyway they want to, and use any technology they want to, chaos will result. Functionality and information will be duplicated and reuse will occur sporadically, if at all. There will be conflict between systems that cause each other to fail. Individual projects may be deemed successful, but as a portfolio there may be serious challenges. Systems don't exist in vacuum, but rather co-exist with several and sometimes hundreds of other systems. For example, building a Bloomberg interface to store bond static and prices built by the rates front office IT group may be viewed as a success in isolation, but such functionality are required by many systems within the organization, e.g., e-trading, pricing analytics, risk, settlement systems, and other front office trading applications, e.g., credit derivatives and repo. If each area builds such functionality, costs skyrocket (e.g., multiple Bloomberg licenses, duplication of interfaces, data, hardware), and it increases complexity and operational risk within the organization. EA plays a fundamental role in preventing such scenarios from occurring.
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US and large in-house IT organizations.
Oct. 30, 2014 06:00 PM EDT Reads: 3,122
SYS-CON Events announces a new pavilion on the Cloud Expo floor where WebRTC converges with the Internet of Things. Pavilion will showcase WebRTC and the Internet of Things. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices--computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
Oct. 30, 2014 05:30 PM EDT Reads: 2,156
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Oct. 30, 2014 05:30 PM EDT Reads: 1,139
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridsto...
Oct. 30, 2014 02:00 PM EDT Reads: 2,532
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
Oct. 30, 2014 12:15 PM EDT Reads: 2,055
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at Internet of @ThingsExpo, Andrew Bolwell, Director of Innovation for HP’s Printing and Personal Systems Group, will discuss how key attributes of mobile technology – touch input, senso...
Oct. 30, 2014 12:00 PM EDT Reads: 1,695
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
Oct. 30, 2014 11:00 AM EDT Reads: 2,158
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics...
Oct. 30, 2014 08:00 AM EDT Reads: 1,544
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
Oct. 30, 2014 07:30 AM EDT Reads: 2,247
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., will show what is needed to leverage the IoT to transform your business. He will discuss opportunities and challenges ahead for the IoT from a market and tec...
Oct. 29, 2014 11:00 PM EDT Reads: 1,502
SYS-CON Events announced today that TeleStax, the main sponsor of Mobicents, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TeleStax provides Open Source Communications software and services that facilitate the shift from legacy SS7 based IN networks to IP based LTE and IMS networks hosted on private (on-premise), hybrid or public clouds. TeleStax products include Restcomm, JSLEE, SMSC Gateway, USSD Gateway, SS7 Resource Adaptors, SIP Servlets, Rich Multimedia Services, Presence Services/RCS, Diame...
Oct. 29, 2014 05:00 PM EDT Reads: 1,611
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
Oct. 29, 2014 02:15 PM EDT Reads: 2,051
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An...
Oct. 29, 2014 01:00 PM EDT Reads: 1,572
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
Oct. 29, 2014 10:00 AM EDT Reads: 2,106
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Oct. 29, 2014 10:00 AM EDT Reads: 2,042
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
Oct. 29, 2014 09:00 AM EDT Reads: 2,069
As a disruptive technology, Web Real-Time Communication (WebRTC), which is an emerging standard of web communications, is redefining how brands and consumers communicate in real time. The on-going narrative around WebRTC has largely been around incorporating video, audio and chat functions to apps. In his session at Internet of @ThingsExpo, Alex Gouaillard, Founder and CTO of Temasys Communications, will look at a fourth element – data channels – and talk about its potential to move WebRTC beyond browsers and into the Internet of Things.
Oct. 29, 2014 08:00 AM EDT Reads: 1,620
SYS-CON Events announced today that Gigaom Research has been named "Media Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Ashar Baig, Research Director, Cloud, at Gigaom Research, will also lead a Power Panel on the topic "Choosing the Right Cloud Option." Gigaom Research provides timely, in-depth analysis of emerging technologies for individual and corporate subscribers. Gigaom Research's network of 200+ independent analysts provides new content daily that bridges the gap between break...
Oct. 28, 2014 11:45 PM EDT Reads: 1,647
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Oct. 28, 2014 03:00 PM EDT Reads: 1,595
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Oct. 28, 2014 12:00 PM EDT Reads: 1,943