June 3, 2009

EA, SOA, SOE, Governance etc.

Posted in Uncategorized at 12:39 pm by Molly

EA (Enterprise Architecture) of services is based on business decisions or the business strategy


EA is the key enabler for business flexibility and integration of well planned processes and orientation of technologies to services.

SOA (Service Oriented Architecture) is defined as a framework from integrating business processes and supporting technology infrastructure as:


SOA is deployed on a platform of web services at this moment in tme. Web service platforms and related technologies include:


This makes integration with other applications very flexible. Cool, because we all like flexibility.

So we move away from complex departmental applications with complex and multiple processes to a streamlined organisation-wide process integration model, which benefits from agility, flexibility and efficiency, as well as future integrated applications from a SOA.

Benefits of a SOE (Service Oriented Enterprise) lie in mixing and matching services in other ‘on-demand’ solutions.

From the inception of a project, governance decides the priority of services for release throughout the organisation. This is a critical step as it ensures consistency and interoperarability among the services and ensures that the technology strategy of the organisation remains synchronised with the business strategy and doesn’t veer off course. Do you think that this will assist in the re-use of services? Sounds like it.

Using the Agile project methodology ensures that there is some flexibility for changes to the process requirements from external sources, internal sources or maybe regulatory requirements. Delivering on releases of services in an incremental and interative manner ensures consistency throughout the lifecycle (top-down in design from business management models AND bottom-up in design from ops and platform technologies).

Faster releases of services
Flexiblity to changes

Demystifying IT Governance

Definition of IT governance “specifying the decision rights and accountability framework to encourage desirable behaviour in using IT”

IT governance is not about making specific IT decisions— management does that—but rather determines who systematically makes and contributes to those decisions.

For example:
• Governance determines who holds the decision rights for how much the enterprise invests in IT.
• Management determines the actual amount of money invested in a given year and the areas in which the money is invested.
• Senior management team designs IT decision rights and accountabilities to encourage the enterprise’s desirable behaviours.
• If desirable behaviour involves independent and entrepreneurial business units, IT investment decisions will be primarily with the business unit heads.

Good governance design allows enterprises to deliver superior results on their IT investments.

Governance of the key assets occurs via a large number of organisational mechanisms (for example, structures, processes, committee, procedures, and audits).

The key assets are:

• Human assets
• Financial assets
• Physical assets
• IP assets
• Information and IT assets
• Relationship assets

Effective IT governance must address three questions:

1. What decisions must be made to ensure effective management and use of IT?

2. Who should make these decisions?

3. How will these decisions be made and monitored?

What decisions must be made and who should make them?

Think of the Governance Arrangements Matrix.

The column heading of the Governance Arrangements Matrix lists 5 inter-related decisions:

• IT principles
• IT architecture
• SOA architecture
• IT infrastructure
• Business application needs
• IT investment and prioritisation
• IT governance policies, processes, mechanisms, tools & metrics

Each archetype identifies the type of people involved in making a decision:

• Business monarchy
• IT monarchy
• Feudal
• Federal
• IT duopoly
• Anarchy

The ‘Governance Arrangements Matri’x (GAM) maps the types of decisions and the archetypes for making the decisions, the third question “how these decisions will be made and monitored” requires design and implementation of governance mechanisms, such as committees, roles, and formal processes.

Infrastructure must balance the dual needs of cost effectiveness in meeting current business requirements and the flexibility to support future business needs.

Governance also facilitates learning by formalising exception processes.

Renegade decisions result from poorly designed, poorly communicated governance arrangements that are not aligned with management incentives.

Carefully designed IT governance provides a clear, transparent IT decision-making process that leads to consistent behaviour linked back to the senior management vision while empowering everyone’s creativity.

Centralised and standardised IT environments ensure reliability, cost effectiveness, consistent customer service.

IT governance structures create strategic control at the top of the firm while empowering decision making at multiple organisational levels.

Governance design and analysis requires stepping back from day-to-day decision making, taking Einstein’s advice and focusing on identifying the fundamental decisions to be made and who is best positioned to make them.

• What decisions must be made?
• Who should make these decisions?
• How will we make and monitor these decisions?

Who is making each of these decisions in my enterprise, and how qualified are they to do so? Also ask, How are we measuring and monitoring decision-making performance and business value?

Every enterprise must address 5 inter-related IT decisions:

IT principles
IT architecture
IT infrastructure
Business application needs
IT investment and prioritisation

The principles reflect the importance of knowledge-sharing across the enterprise, and they have led to increased awareness of how business value is achieved from IT.

The IT architecture is the organising logic for data, applications, and infrastructure, captured in a set of policies, relationships, and technical choices to achieve desired business and technical standardisation and integration.

Enterprises need an organising logic for data, applications, and infrastructure because integration and standardisation shape IT capabilities.

Technical standardisation facilitates common objectives such as cost-effective processing, negotiated vendor agreements, and enterprise wide security.

The enterprise architecture guides new application development by explaining how IT will deliver on the firm’s IT principles.

Enterprise architectures capture the organising logic in technical choices and policies.

IT infrastructure is the foundation of planned IT capability available throughout the business as shared and reliable services and used by multiple applications.

An increasing number of enterprises have an additional layer of standard applications used by all business units. We refer to these shared and standard applications as infrastructure applications.

Getting infrastructure right means providing cost-effective services that position the enterprise for rapid adoption of new business applications.

Identification of business needs for IT applications often has two conflicting objectives – creativity and discipline.

The IT investment decision is often the most visible and controversial of the key IT decisions.

IT investment decisions address three dilemmas:
(a) how much to spend
(b) what to spend it on
(c) how to reconcile the needs of different constituencies

Enterprises implement their governance arrangements through a set of governance mechanisms—structures, processes, and communications. Well-designed, well-understood, and transparent mechanisms promote desirable IT behaviours.

Understanding the harmonisation


1 Comment »

  1. xman said,

    thank for aticle

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