Building the Agile Enterprise: With SOA, BPM and MBM (The MK/OMG Press)

311 Pages·2008·2.79 MB·English

by  Fred A. Cummins

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Acknowledgments
Iwanttothankmywife,Hope,forherencouragementandfortoleratingallthetimeI
spentworkingonthisbook,andTomHill,EDSFellow,forhisencouragementandsup-
portonthiseffort.Iowemanyco-workersatEDSandcollaboratorsatOMGforinsights
Ihavegainedovertheyears—inparticular,atEDS,JefMeerts,WafaKhorsheed,Carleen
Christner,IvanLomelli,andtheEDSFellowscommunity;andatOMG,CoryCasanave,
AntoineLonjon,ConradBock,DonaldChapin,JohnHall,ManfredKoethe,KarlFrank,
Henk de Man,andmany others. Finally, Iwant to thank Richard Soley for his support
and for writing the Foreword to this book and John Parodifor his thoughtful editorial
comments.
xiii
Foreword
Likeeveryyoungindustry,theinformationtechnology(IT)businessisrifewithconfus-
ing, competitive, and cockamamie terms and acronyms. I have often wondered at the
industrywide propensity to invent and promulgate TLAs (three-letter acronyms, of
course!). It seems almost refreshing when a new acronym sports four or five letters,
or better yet, eschews compressed forms altogether. But no, the favored approach to
technology innovation remains confusing acronyms.
This is not an invention of the 21st or even the 20th century. Electric lamps and the
internal-combustion powered automobile, both introduced in the late 19th century,
were young technology industries that thrived on spurious differentiation. And youth
lasts a long time in a technical industry: The battle royal fought between the Edison
group of companies and the Westinghouse company over the electrical standard for
the United States was at its peak when Nikola Tesla plied his trade in Westinghouse’s
workshops (after leaving Edison’s employ) in the late 1880s; it had already been a
decade since the invention of the light bulb and would be some two decades more
before the war was over and Westinghouse’s embrace of Tesla’s polyphase alternating
current had succeeded.
Itisunlikely,however,thatmorethanafewconsumersofelectriclamptechnologyhad
any idea what the direct current vs. alternating current debate was about. The level of
complexitywasobviouslyfartoohighfortheaveragebuyer;thesamecanbesaidabout
the technical choices in the automobile purchases by the vast majority of car buyers,
prompting automotive marketing departments to simply train us that fuel injectors
are good and carburetors are bad.
Unfortunately, the same technology complexity and resulting market simplification
continuetoplagueouryoungITindustry.Theresultingapparent“speedofinnovation”
thatworrieschiefinformationofficersmightormightnotreferencetruetechnicalinno-
vation,butitcertainlypertainstotheinnovationinnewterminology!Certainlythereis
constantly changing technology in corners of the IT industry, but much of it is simply
new wine in old bottles.
Thegoodnewsisthatoldbottlesformastrong,solidcontainerforthatnewwine,and
the smart consumer of “new technology” can see through the terminology, the acro-
nyms and the labels, to the real business problems and the ways technology can have
a positive effect on operations along the only axes that really count: better, cheaper,
and faster. That’s where the “agile enterprise” comes in—an “agile” organization reacts
quickly to change, recognizes both internal and external (customer and supplier
xv
xvi Foreword
change)quickly,perceivestheneedforchangeinthefuture,andacceptsthatneedasa
cost of doing business.
The nextstepis thehardoneandinfactthereasonforthebookyouareholding(and
thenexusoftheTLAsonthecover).ThehardpartofITintegrationisn’tthetechnology
per se; the reason we can see further is that we stand on the shoulders of giants. The
complex chemistry and optics used to create our integrated circuits are far below our
level of detail; we can depend on others to solve those problems. No, the hard part
of IT has always been, and remains today, the enormous gap between management of
operations and technology that supports those operations.
Howcanthisbe?Aftermorethan50yearsofcomputing,wellover30yearsofcomputing
inlargeorganizations,andsome20yearsintothepervasive(personal)computingrevolu-
tion,whyshoulditstillbedifficulttorecognizebusinesschallengesinawaythattechnical
solutionsclearlyaddressthosechallenges?Theanswerissimple:Likeotheryoungtech-
nologyfields,fromthemarinearchitecturefieldahalfamillenniumagotothecentury-
oldtechnologiesjustmentioned,sharedlanguagesarejustcomingintouse.
By“shared languages” I do not mean the languages of management (natural languages
suchasEnglishorabstractbutunstructuredlanguagessuchasspreadsheetsandpresen-
tations); nor do I mean the languages of computer technologists (such as Java, LISP,
andCþþ).Imeanlanguagesthatarereadablefrombothsidesofthatdivide:modeling
languages. This isn’t a new idea, of course; in marine and building architecture we use
blueprints. Blueprints speak to the buyer, the seller, the builder, even the makers of
parts andthebuildersthatusethoseparts.Blueprints canbeturned, relativelydirectly,
into three-dimensional models for the home buyer as well as parts lists for the electri-
cian. Blueprints are standardized, structured, and well accepted. What we need to do
is take that broad step in the IT industry.
ThoughthisbookstartsoffwiththreeTLAsonthecover,you’llfindthattherealcover-
age is both more and less. “More” in the sense that you will find more acronyms and
ideas inside, but connected together in a way that makes sense; and “less” in the sense
thatalltheseideassumtoonebasicidea:Ifmodelingworksinotherengineeringfields,
itwillworkintheITfield.Agilityintheenterprise—better,faster,cheaper—comesfrom
beingabletostructureorganizationstotakeadvantageofreusablebusinesscapabilities;
from the ability to recognize, precisely capture, store, and retrieve the definitions of
those capabilities; and from the ability to capture all that information in a shared,
widely understandable model of the enterprise.
Those are, respectively, service-oriented architecture (SOA), business process manage-
ment(BPM),andmodel-basedmanagement(MBM)—thusthetitleandcontentsofthis
book.
Foreword xvii
You will find herein a wealth of knowledge about how models change the way a busi-
nesscan,should,andwilloperate.Thoughtherearetechnologyunderpinningstothese
ideas, don’t miss the fact that these innovations are about organizational management
more than about IT. Some of the ideas surely are new wine in old bottles; have a sip,
though, because those old bottles definitely add flavor!
—Richard Mark Soley, Ph.D.
Chairman and CEO
Object Management Group, Inc. Lexington, Massachusetts
8 June 2008
Preface
Enterprisemanagementisatthedawnofanewera.Informationtechnologyhascreated
global markets; changed enterprise relationships with employees, customers, and busi-
nesspartners;andacceleratedthepaceofchange.Theseforces,alongwithservice-oriented
architecture(SOA),businessprocessmanagement(BPM),andmodel-basedmanagement
(MBM),changethewayenterpriseswillbeorganizedandmanagedinthefuture.
Wein theIT industry arefocused onapplying the technology.Wecanreduce thecosts
ofdevelopmentandmaintenance,wecanimprovetheperformanceandqualityofsys-
tems,andwecanprovidebetterinformationabouttheoperationoftheenterprise.We
can make it easier to change the information systems to meet new business require-
ments. However, these improvements have only a fraction of the potential value that
can be realized by changing the design of the enterprise to exploit the full potential
of information technology.
TheneedforchangeisdrivingwidespreadinterestinSOA,BPM,andMBM.SOAprovides
aflexiblebusinessstructure;BPMstreamlinesandadaptshowworkisdone,andMBM
provides models to support the management of complexity and optimize enterprise
operationsandagility.ThebusinessbenefitsofthesedisciplinescanfarexceedITbenefits
from the associated technologies. Realization of these benefits requires transformation
oftheenterprise.Enterprisesthatfullyexploitthisparadigmshiftareidentifiedasagile.
They continually improve the speed, cost, and quality of operations, and they rapidly
respondtonewbusinessopportunities.
TARGET AUDIENCE
Withintheenterprise,thechiefinformationofficer(CIO)ispositionedtoleadthetrans-
formation. The CIO has a broad view of enterprise operations, responsibility for the
enablingtechnology,asupportingroleintheimplementationofbusinessimprovements,
andastaffwithskillsinsystemsanalysisanddesignaswellasknowledgeofcurrentinfor-
mationsystems.
ThisbookprovidesavisionofthefutureforITleaders—CIOs,chieftechnologyofficers
(CTOs), enterprise architects, and management consultants. They must bring to top
managementtheinsights,skills,andresourcestoaccomplishenterprisetransformation.
Thenextwaveofchangescannotsimplybedrivenbyincrementalautomationandinte-
gration of computer applications; it requires redesign and reorganization of business
functions, driven from the top down. Supporting technology exists and can be
improvedwithanunderstandingoftherequirements.Thechallengeistogaintopman-
agement commitment and support, to establish the necessary governance and infra-
structure, and to define a roadmap for achieving a strategic transformation.
xix
xx Preface
BOOK ORGANIZATION
Theseconceptsandmorearedevelopedthroughouttherestofthisbook.Eachchapter
describesa majoraspect of theagile enterprise froma business perspective. The goal is
to equip IT leaders to understand and communicate the business impact of the agile
enterprise as well as the business requirements that must be supported with informa-
tion technology. The chapters are summarized in the following subsections.
The Agile Enterprise (Chapter 1)
Chapter1outlinesbasicconceptsalongwiththechallengesandobjectivesaddressedby
theagileenterprise.TheSOAMaturityModelprovidesthefoundationfordevelopment
of an enterprise transformation roadmap.
Service-Oriented Architecture (Chapter 2)
SOAdefinesdiscretecapabilitiesassharableserviceunitsandestablishesanenterpriseas
a composition of sharable business capabilities that can be rapidly rearranged and
adapted to meet changing business needs. This architecture supports optimization of
resource utilization, economies of scale, and improved accountability, control, and
agility.
Business Process Management (Chapter 3)
BPMisamanagementdisciplineforthedesign,management,automation,andcontinu-
ousimprovementofbusinessprocesses.Inanagileenterprise,businessprocessesdefine
how services are performed—including the organization of activities to meet a service
objective,the integration of supporting services, andthe choreography of relationships
andoperationsamongorganizations.
Business Rules (Chapter 4)
Business rules support concise expression of management intent, independent of the
implementation technology. Mechanisms for integration of business rules enable the
enterprise to rapidly adapt to changes in regulations, enterprise improvements, and
technological capabilities. A number of types of business rules affect the operation of
the enterprise in different ways.
Enterprise Information Management (Chapter 5)
The enterprise must operate on the basis of a common Enterprise Logical Data Model
(ELDM)tosupportmeaningfulcommunicationandinteractionofpeopleandsystems.
Thismodelmustbecomplementedbyappropriatedataaccessandanalyticaltoolssothat
businessdecisionmakingandplanningcanbeoptimizedfromanenterpriseperspective.
Preface xxi
SOA Security (Chapter 6)
The electronic integration of disparate organizations and the sharing of data across the
enterprise and with business partners and customers greatly increase the potential for
harmful exposure of operations and information. Access must be controlled to ensure
thatitisappropriately authorized,thatenterprisefacilitiesarenotvulnerabletoattack,
and that data communications are appropriately protected. In addition, exchange of
electronic business documents affecting enterprise assets and government regulations
requires electronic signatures to ensure that participants are authenticated, authorized,
and accountable.
The Agile Organization Structure (Chapter 7)
The enterprise will evolve to a network of interacting service units that manage enter-
prise capabilities to deliver business value. The organization structure must define
howpeopleparticipateintheoperationandmanagementofserviceunits.Serviceunits
must bealigned toan organization hierarchythatmanagestheserviceunit capabilities
for optimal performance. Additional relationships must support collaboration, coordi-
nation,innovation,andcontrol,allofwhichallowtheenterprisetooptimizeandadapt
to deliver customer value.
Event-Driven Agility (Chapter 8)
Though services are most often performed in response to a request, some services are
initiatedbydisruptiveeventsthatindicateaneedtorespondoutsidetheboundsofnor-
maloperatingprocesses.Processingofdisruptiveeventsisthestartingpointforautoma-
tion of processes for adapting the enterprise to changing requirements. Various
techniquesmustbeusedtoidentifyandcapturerelevantevents.Someindividualevents
may be of little interest, but in combination with other events, the “complex events”
may be significant.
Agile Governance (Chapter 9)
InitialeffortstoimplementSOAmaybebottom-uptransformationsbasedonbusiness
opportunities. However, in the long term, the agile enterprise requires a top-down
designthatdefinestheenterprisestructureandthecontextinwhichlocalimprovements
can be developed. This requires a management commitment and governance structure
todesign,transform,andcontinuouslyimproveandadapttheenterprisefromanover-
all perspective, with IT support. The recommended governance structure provides sup-
port for continuous strategic planning, top-down leadership of enterprise design and
transformation, and improved visibility and accountability to executive management
and the board of directors to ensure appropriate leadership and control.
xxii Preface
Model-Based Management (MBM) (Chapter 10)
Today’s enterprises and the ecosystems in which they operate are very complex. Man-
agersneedmodelsconnectedtothebusinessoperationsandthebusinessenvironment
inordertogainabetterawarenessofproblemsandagreaterunderstandingofthefac-
tors involved insolutions. Such models enable more timelyand appropriate responses
to threats and opportunities. Management of the agile enterprise is supported by an
Enterprise Business Model (EBM) that is the integration of a number of different view-
point models.
THE VISION
Thisbookpresentsavisionoftheagileenterprisebasedoncurrentindustrytrendsand
standards. There are no current examples of such an agile enterprise as described here.
The fundamental business concepts have existed for many years, and supporting tech-
nology exists but must be appropriately applied. Executive leaders must adopt a new
approach to business design and management in order to realize the vision.
Keytothisvisionisanunderstandingoftheroleplayedbyservice-orientedarchitecture
(SOA), business process management (BPM), and model-based management (MBM)
on an enterprise level rather than on an IT level. SOA, BPM, and MBM are supported
by technologies that emphasize reuse of software functions, systems integration stan-
dards, automation of business processes, and use of interactive, computer-based busi-
ness models, thus improving technical consistency and efficiency as well as achieving
economies of scale.
ThisbookusesthetermsSOAtechnology,BPMtechnology,andMBMtechnologytodistin-
guish supporting applications, tools, and standards from the broader business disci-
plines used to create and manage the agile enterprise; these terms are used when the
contextisthesupportingITtechnology.Whenthecontextisenterpriseagility,theterms
SOA, BPM, and MBM are used without qualification.
Thoughthis bookcovers manyof themost importantissues thatneedto be addressed
in applying SOA, BPM, and MBM technologies, its primary intent is to describe how
these technologies enable more effective design, optimization, and adaptation of the
enterprise as a whole.
Thusthebookdescribesthetransformationofanenterprise’sexistingbusinessarchitec-
turetoanagileenterprisearchitecture.ThisrequirestheapplicationofSOAprinciplesin
creatingaservice-orientedorganization,theapplicationofBPMprinciplesinthedefini-
tionandcontrolofallbusinessactivities,andtheuseofMBMtoincreasevisibilityinto,
and understanding of, all business-related operations.