Architecting Business Logic and Data Assets for the Information Age

Frank W. Schlier – Vice-President and Distinguished Analyst Executive Briefing for AARP Datos de Contacto: May 31, 2007 Salvador Orozco Gartner México Stamford, CT 5284-2397 [email protected] Business Logic and Data Assets

Business Logic and Data Assets Business The enterprise’s operational, transformational, and analytic information systems Drives Enables Transforms general technologies Business into engines of specific business Logic and Data purpose enabling processes and Assets animating strategy.

Enables Drives Well formed logic and data assets absorb moderate changes in both business and technology Technology Infrastructure Provides competitive advantage - or disadvantage. 2 © 2006 Gartner, Inc. All Rights Reserved. Key Issues

What processes will be used to develop enterprise architecture in the information age? What methodology will be used to develop information age logic and data design architectures? What is an example logic and data architecture for the information age?

Industrial Automation Information Age Transition Age 1785 1965 2015 ? When Is the Future? "The future is here today. It's just not evenly distributed." — Dr. Werner Vogels, Future CTO, Amazon.com

100 Traditional Architectures

% NSA Enterprises

Stick Build Build: Platform for compromise Buy: Basis for comparison Buy Applications Have Built: Tool of specification Have Built Assemble: Selection of components Assemble for assembly

High Stake in the Future

% Enterprises

Low

Solution Logic and Data Information Architecture Architecture Architecture

Operational Analytic

O A D D S S

STRATEGIZE Business strategic planning IT strategic planning Build the business context ARCHITECT Develop future state STRATEGIZESTRATEGIZE ARCHITECTARCHITECT Document current state Develop gap analysis and road map LEAD Evangelize, encourage and motivate Evolve architecture process GOVERNGOVERN LEAD Develop human capital GOVERN Establish decision processes Establish oversight Link to related disciplines COMMUNICATE Evaluate performance and adapt COMMUNICATE Craft communications Deliver communications Analyze feedback.

Business Strategy Environmental Trends Organize Architecture Effort Organize Architecture

Business Strategy Environmental Trends

Future State Architecture Organize Architecture Effort Organize Architecture

Business Strategy Environmental Trends

Future State Architecture

Organize Architecture Effort Organize Architecture Current State Architecture

Business Strategy Environmental Trends

Future State Architecture

Closing the Gap

Organize Architecture Effort Organize Architecture Current State Architecture

Business Strategy Environmental Trends

Future State Architecture

Closing Govern & Manage the Gap

Organize Architecture Effort Organize Architecture Current State Architecture

Business Strategy Environmental Trends Architecting Develop Develop Develop Requirements Principles Models

Future State Architecture

Closing Govern & Manage the Gap

Organize Architecture Effort Organize Architecture Current State Architecture Document

Current State Future State

Models Models Conceptual Conceptual Logical Logical Physical Physical

Automation Information Transition Age Design Design Protocols Protocols

Executive Steering Committee

CxOs — Line of Business Leaders Architecture Review Board

Domain Teams Program Architectural Management Core Domain Definition Office Teams DNA Enterprise Domain Architecture Teams Domain Team Teams Best Project ProjectProject Domain Practices TeamsTeams Teams ProjectTeamsOffice TeamsOfficeOffice Domain Teams

KnowledgeInformation space – A conceptual space within Single architectural space Logicwhich all logic and data assets use the same Single information space communication protocols and canSingle communicate. knowledge space Information

Single architectural space Single information space Architectural space – A conceptualDifferent knowledgespace withinspace which all logic and data assets are designed to common persistent storage protocols.. Different architectural space Single information space Different knowledge space Knowledge space – A conceptual space in which

all logic share, or have access to,Different the architectural same data space sources. Single information space Single knowledge space

AllAll InformationInformation SourcesSources InIn thethe WorldWorld

Single System Multipleof Systems Tim Berners-Lee IdentifiersOf Identifiers, FormatsFormats and Protocols Identifier – URI Protocols Format – HTML Protocol - HTTP All Information Users In the World All Information Users In the World WWW 20 © 2006 Gartner, Inc. All Rights Reserved. Constraining to Free

RequirementsRequirements ProcessProcess andand InformationInformation Logic and Data Design Protocols Logic and Data Design – Format Protocol Logic and Data Design – Identification Protocol Logic and Data Design – Topology Protocol Logic and Data Design – Isolation Protocol Protocols Requirements Entity-RelationshipForecast ModelingForces Logic and Data Design – Neutrality Protocol Logic and Data Object Modeling of Architectural Logic and Data DesignEnvironmental – Granularity Protocol Design Business Process Modeling Change

Logic and Data Design – Reuse Protocol Logic and Data Design – Redundancy Protocol ModelsModels Logic and Data Design – Extensibility Protocol ConceptualConceptual Logic and Data Design – Retention Protocol LogicalLogical Logic and Data Design – Compromise Protocol PhysicalPhysical

Architectural Requirements InformationInformation ProcessAgeAge (Cont.) and Information Format Identifier Technological CompressionDecreasing barriers ofRequirement time, to distance entry and Aligned and migration quality TransparentProtocol ProtocolAccurate CompressionGrowing global of consumptionstrategy, process and productionand task life-cycles Societal Integrated Drive CompressionInformation overload of product and service life-cyclesTimely Logic and Data StraightCommoditizationZero latency Through operations of products (straightThink and through)servicesAvailable Organizational Design IncreasedTopology privacy and Thinksecurity concerns Isolation PersistentIncreased personalizationHolisticallyGuidelines and customizationAccessible Protocol Protocol Reduced economicHolistically quantitiesAnd Economic Poly-centricContinued decline Data in information technology base Growingcosts global(processing,Enable homogeneityConstraints bandwidth, Inhibit storage) Secure Environmental CostContinuedGrowing to Change global escalation heterogeneity in costs of burdenedScaleable labor, time, Driveenergy to reduce and otherecological factors footprint of production. Time to ChangeNeutrality GranularityProject ROI Political IncreasedRedefinition buyer of regulation information,Total choice and expectations ProtocolEnterprise Protocol Drive toward increased transparency Information Technology Costs 22 © 2006 Gartner, Inc. All Rights Reserved. A Change in the Meaning of Change

Traditional Emergent

StableChange Stable Change

Strategy Product 7 Process Task 5 Application Return on Investment Period 3 Expected life as 1 installed in 1965 2007 ? years Time

At a recent Gartner conference, more than 90% of participants polled said they were in the midst of transformational change.

Extent of Fundamental Change Needed Over the Next Two Years .

Substantial Little or No Change Change 65% 13% Moderate Change Source: CEO 22% Magazine (U.S.), December 2005 Source: IBM WW CEO Survey, March 2006

Boards of Directors and Chief Executive Officers – Global 2000 . Existing IT Systems

Corporate Culture

Organization Structure

Business Process

10% 20% 30% 40% 50%

Know all process and information requirements across the enterprise Then before architecting logic and data

Time Know all future process and Here information requirements before and architecting logic and data Now Know that you don’t know all process and information requirements There There over time or space before architecting Space logic and data.

即时目标的引擎 Wei Wei Designed to known and forecasted requirements Large grained persistent data (Make) Large grained logic Single tier logic Designed to Specification Redundant data across enterprise An engine of Redundant logic across enterprise immediate purpose Multiple systems of identifiers, formats and protocols

连续变换的引擎 Wu Wei Designed to grow Wu Wei Logic annd data as infrastructure Small grained persistent data (Not Make) Small grained logic Designed to Grow Multi-tier logic Zero-redundancy of data across enterprise (logical) An engine of Zero-redundancy of logic across enterprise (logical) continuous transformation Isolation of entities and relationships Single system of identifiers, formats and protocols.. Technology enabled discovery, orchestration and governance28 © 2006 Gartner, Inc. All Rights Reserved. Knowledge and Information

Knowledge Persistent data and logic Pineapple Cannot be communicated Possessed by a system Optimized for CRUD & PGPD Database, Table, File, Entity, Assertion

Information Space Information

Transient Data Pears Cannot be stored Tokens – Words – Identifiers Between and among systems Syntax – Common formats Optimized for COMM Grammar – Common protocols XML, XBRL, Screen format, Print format Semantics – Common meaning

Information Space Common semantics require shared or identical data sources. Semantics is about meaning, not definition or structure.

Meta-data + Security

• Common knowledge space • Meta-data enabled access to Knowledge Space each other’s knowledge space

Nouns Business information is about People complex business entities. Places# Things Product Orders Procedures Adjectives Contract Trades Diagnoses Descriptive /Adverbs Deposits Claims Stocks data is data Attributes Policy Withdrawals Bonds about: Accounts Patient Derivatives Regions Loan Channels VerbsBENETHAI’RE ActionsDUNDAT FromFrom genericgeneric languagelanguage toto enterpriseenterprise andand industryindustry jargon.jargon.

Generic Primitive Entities

Complex Business Entity — Personal Health Insurance Contract

Time T2 Ontological Existence

U1 U2 UN

Persistent Data

Complex Business Entity Complex Business Entity GenericRelationshipClaim Primitive Assertion Entity Ontological existence ApplicationBipolarContract assertion neutral Application neutral Claim Contract Provider Procedure Diagnosis Patient ProcessBinary existence neutral Process neutral EnterpriseNo descriptive neutral data Group Facility Region Quarter Specialty Etc. No descriptive data ApplicationIndustry neutral neutral . Claim# is covered by Contract# No relationship in entity Relationship Assertion TemporallyProcess neutral stable Industry specific SingleEnterpriseContract# name specificis ownedor value by Person# Source of unique identifiers Claim is covered by Contract Contract is owned by Person No relationships in entity Person# is home at Address# Person is home at Address

Generic Primitive Entity Person

# Processing costs Governance issues… Complex logic……..

Benethai’re Dundat Think Holistically

Tangram

Open Closed Ended Ended

Given Claim# Get Claim-Covering-Contract-Owner-Home-Address

Get 2007 Address

Get Person-Home-Address 1997

Get Contract-Owners-Home- 1977 Address

Get Claim-Covering-Contract- 1967 Owners-Home-Address

From Claims From Person linked Address linked Contracts linked To Contracts To Person To Claims [owns] [home] [covers] To Claims To Contracts [covers] [owns] To Claims Reuse Potential 36 [covers] © 2006 Gartner, Inc. All Rights Reserved. Granularity Protocol

Claim Given Relationships Claim# Get Claim-Contract-Owner Name, Home-address, Covers Home-phone, Email

Patient Contract Provider Diagnosis Procedure The Logic Statement Given Given From Hell Claim# Claim# Get Get Owns Claim-Contract- Claim-Contract- Owner-Home- Owner-Name Address Product Person Group Premium Messages Given Given Claim# Home Claim# Get Get Claim-Contract- Claim-Contract- Owner-Home- Name Address Phone Email Owner-Email Phone

Application Process Data Logic Persistent Data Logic Logic [CRUD] Given Given Claim# Claim# Claim# Claim# Claim# Get Is covered by Name Get Contract# Contract# Contract# Contract-Owner-Name [Covers]

Given Given Given Claim# Contract# Contract# Claim# Claim#Claim# Contract# Get Get is owned by Address Get Person# Covering- Get Person# Person# Contract-Owner-Home-Address [Owns] Contract- Covering- Owner- Contract- Given Name Given Person# Claim# Owner- Person# Person# Home-Address Claim# is home at Home- Get Home-Phone Phone Get Address# Address# Address# Email Contract-Owner-Home-PhoneAddress [Home]

Given Given Address# Claim# Claim# Address# Address# Get is Email Get Address# Address Address Contract-Owner-Home-Phone

Logical CLAIMS Contract# covers Claim#

CONTRACTS Person# owns Contract#

PEOPLE Person# is home at Address#

ADDRESSES

Logical - Physical

Claim# Contract# covers Claim# Person# owns Contract#

Person# is home at Address#

ADDRESSES Address

Governance! # VS

Benethai’re Dundat

Wei Wu Wei Monolithic Service Oriented

Application Process Traditional Emerging CRUD Data Logic Logic Logic

Logic Data

Given Claim# CLAIMS Get System complexity can be Claim-Covering- addressed by technology. Contract-Owner- Name Home-address CONTRACTS Home-phone Email

Code complexity – High Code complexity – Low Redundancy - Low System complexity - Low System 41complexity – High Reuse - High © 2006 Gartner, Inc. All Rights Reserved. Format and Identification Protocols – Logic and Data Manageability

Unique Content Time Time Content Identifier Type Minimum Maximum

Content Type Common logic and data formats 12020202 – Application Logic facilitate technology enabled business logic and data 12030090 – Process Logic manageability. 12040030 – Data Logic (CRUD)

21198191 – Generic Primitive Entity Data Logic and Data 23393939 – Complex Business Entity Data Management Software 27465456 – Assertion Data Business Logic 39383744 – Message Data Business Data

Patient PatientContractProviderProcedureDiagnosis Centric CentricCentric CentricCentric Contract Provider Procedure Diagnosis

Product Patient Poly-Centric Centric Centric

ProductProduct AA Product A Product A

Patient Product BA Product A Product A Product A ProductProduct BA Data Source Product B Data Source

ProductProduct CA ProductProduct CA ProductProduct CA

Application logic Process logic Data logic (CRUD)

Logical enterprise persistent data space

Business space Information As logic moves information from the business space to the persistent data There is no data flow between space, information is made more application logic segments. neutral and becomes persistent data. There is no data flow between As processeslogic moves logic information segments out of the persistent All data dataflow isspace from toward the edge the to the Process flow will be accomplished center or from the center to the edge through changing data states business space, information is made rather than data flow between more specific and becomes transient. applications or processes. 45 © 2006 Gartner, Inc. All Rights Reserved. Recommendations

Develop a comprehensive set of protocols for logic and data design based on a realistic forecast of future business conditions. Apply these protocols to new development, due diligence and software acquisition. Manage protocol waivers through an architectural review board. Document protocol waivers closely.

“Its not so much about the notes; its about the spaces between the notes and how you tie them together.”

• Single enterprise system •Post-development Integration • Single enterprise data model •Packaged applications Enterprise Loses Millions • Enterprise stacks •Application stacks On Enterprise System Project • Single vendor •Multiple vendors

Bank of America Corp brokerage affiliates will pay the SEC $1.5 million to settle charges they failed to preserve business e-mails. Between January 2001 and February 2004, the units did not Legacy 1 ensure its software kept e-mail, the SEC said. Global

Value chain Legacy 2 Enterprise Business unit Application Cluster

Application Function

Type One Legacy Decompose applications Type Two Legacy designed as one monolithic Integrate applications not structure designed to work together

People (Intergalactic Person Registry)

Addresses (Global Address Co.)

Provider Internet (AMA) Extranet Claim Intranet

Contract

Diagnosis Procedure (AMA) (AMA)

Operational Characteristics Portfolio Characteristics Logic functionality Size Data content Complexity Redundancy Reuse Poly-centricity Persistence Data Extensibility

Architectural Characteristics Financial Characteristics Identification Return on investment Format Cost to change Granularity Time to change Neutrality Total enterprise IT costs Topology Cost to manage 52 © 2006 Gartner, Inc. All Rights Reserved. Alternative Transformation Costs

A) Operational architecture = Analytic architecture B) Single operational architecture & Different single analytic architecture C) Multiple operational architectures & Single Analytic Architecture D) Multiple operational Architectures & Multiple Analytic Architectures

Transformation Costs

A B C D

Wrapped service

Simply ignore the Service Composite little man behind Consumer the green curtain If the message contract is upheld; Organic the service is valid

Service Service Non-SOA interface implementation applications