Lean and Agile Enterprise Architecture

Notes of Pluralsight course `Lean and Agile Enterprise Architecture: Getting Started`

Books references

  • FLOW: The priciples of Product Development. Reinertsen

Agility in Enterprise

  • Push for agility comes from a volatile business environment
  • Holistic agility and dynamic organization models are the new tools for the enterprize
  • Agility is not just about software development anymore
  • It is a new way of working for the whole enterprize

A Case Study

TOGAF ADM
Fagan Inspections
  1. Planning
  2. Overview
  3. Preparation
  4. Inspection Meeting
  5. Rework
  6. Follow Up

Lean Priciples

Economics of lean

  • Soulutions have short lifespans
  • Large upfront investments in the long-run is often a failed strategy.
  • Demonstrate with graphing revenue against lifecycle with cost & total lines
Optimze graph for achieving holistic agililty
  • A lean hybrid team start working collaborativly from day one
  • They use visions and strategic direction to set the focus of their mission
  • Uncover real problems thatr need to be solved
  • Hypothesize solutions
  • Design and run experiments to validate hypothessis
  • Move from Minimum Viable Increment -> Minimum Awesome Increment -> Fully Featured Increments
  • Thin slicing of problem and soution inititiaves drasticallty reduce concept-to-cash cycle time.

Lean Enterprize Architecture

Objective

Objective of Lean EA Crafting great stakeholder experiences responsivelty through innovation driven approaches.

Lean Priciples
Lean principles translate in Lean EA to
  1. Maximizing stakeholder value
  2. Minimizing waste
  3. Continually optimizing for flow
Waste

MUDA: Wasteful work. The waste resulting from working on un-impactful or wasteful tasks

Flow
Rate at which valuable outcomes are delivered by an enterprise initative
Waste
Enterprise capabilities and product features created without validated demand are waste

MURI: Overburden. The waste resulting from overburden

Myth
It is a myth the high utilization results in high throughput/flow
(no term)
High resource utilication in an environment of high uncertainty results in congestion.
Congestionm
A state of the system where the system has very high load and none/low throughput
High velocity delivery, low density
is the best required inital condition, then increase density.

MURA: Uneveness. Waste resulting from variability or unpredicability

Complex Doamin
Enterprize initative in Ralph Stacey Matrix.
  • High on the 'What' (far from agreement) and High on the 'How' (far from certainty)
Variability
is inherit is neither good/bod, it can be leveraged as a competitive advantage
(no term)
Optimize concept to cash value stream for maximising impact and responsiveness
Concept Build Deploy Cash
Business Development Operations Stakeholders/Customers
Strategy Objectives Hardware Customer Benefits
  Architecture Os Configuration Customer Benefits
Innovation Experiments Servers Customer Benefits
  Hypothese Testing Network Clusters Business Outcomes
Solution Development/Testing Deployment Pipelines Business Outcomes
  Build Package Servers & Applications Monitoring Business Outcomes
Design in Process (DIP) Queues

Design in Process Queues. A collection of decisions or work that are awaiting action so that they can be translated into value capturing business outcomes.

Long Queues
  • Queues get harder to resolve the longer they remain unattended
  • Large batches coupled with centralized decision making cause congestion
Queue formation and management
  • Ideas sitting in invisible queus don't produce business outcomes.
  • Innovation ends up looking like imitations when not acted on in time.
  • Insensitivity to queue formation and lack of queue management results in high costs
Enterprise successfully manaing queues
  • Start with small change initatives
  • Learn continuously
  • Work on validated high impact items
  • Are sensitive to queues
  • Manage and optimize for end to end flow
  • Scale cautionsly (Inspect and Adapt)

Strategic Agility

Traditioal View of Strategy
  • plan centered and top down driven hierachy approach
    1. Vision
    2. Mission
    3. Strategic Themes
    4. Strategic Objective
    5. Action Items
The VUCA world

VUCA: Volatility, Uncertainty Complexity and Ambiguity

Volatility
  • Inherit Uncertainty
  • Rapidly influenced and changed by technology
  • Enterpriseleaders feel lost and overwhelmed
Uncertainnty
  • Constant state of flux
  • Hard to forcast dependantly
(no term)
Complexity
  • Wicked problems
  • Problem not understood until solution formulated
  • No stopping rule
  • No binary answers
(no term)
Ambiguity
  • Lack of clarity
  • Hard to choose correct starting direction
  • Paralizes strategy and execution
  • Implications
    • Lifespans of enterprises is shortening
New Approaches to Strategy
  • Conginitive Bais leads us to misread exponential paths
  • Strategy exists to furfill organizations purpose
  • Purpose exists outside the vacum being effect by:
    Identity
    values, capabilities, culture, strengths, weaknesses/drawbacks
    Environment
    why, who does it serve, value proposal, what is the aspirationsl future identity

Strategy: is the force to organize the dissnance between Purpose, Identity and Environment

  • ::
Theory of Business
Theory of Busines
The Assumptions a company gets paid for (Peter Drucker)
  • Business Model Canvas
    1. Value Proposition :: Unmet needs, What problem is to be solved?
    2. Customer Segments :: Who is the problem being solved for?
    3. Customer Relationships :: How will you gain/retain customers?
    4. Channels :: How will products services get sold & delivered?
    5. Key Patners :: Who do I need to partner with?
    6. Key Activities :: WEhat needs to be do?
    7. Key Resources :: What is required to perform teh key activities?
    8. Cost Structures :: Profit formula
    9. Revenue Stream :: Profit formula
Fractal strategtic investment themes
  • The key focus areas identifies for investments
  • May touch multiple business units
  • Each business unit will have a strategy to support the theme
  • Each unit may decompost the strategy further (using Business models canvases again…)
  • This can enssure Alignment and Traceability fromthe top to bottom the the organization
Sensemaking

Sensemaking is a process by which we develop plausible hypothese of the unkown

  • systematically test these hypotheses and reduce the extent of uncertainty and ambiguity
  • goes hand in hand with strategy formulation and execution
  • The light and fast organization, Patrick Hollingworth
    • Prevailing structure and culture drives organizations and its employees to reviert to what they already know
Summary
  • Strictly top-down strategy formulation is not advisable anymore
  • Strategy bassed on extensive upfrant analysis is not viable in the VUCU world
  • It is not deasible to roll-out strategy and sit back for months waiting for outcomes
  • Strategy formulation should be a niumble, creative and rigorous activity
  • Strategy formulation shold use intentional and emergent approcahes
  • Hypothessis driven approaches are essential for strategy formulation
  • Enterprise Architecture is the vehice for strategy and should similarly evolve to become nimble, agile and evolvable.

Innovation and Architecture

Innovation

  • Declining lifespan of enterprises is partial because of the deline of enterprenuerial
    • Idea Driven Organization, Robinson and Schroder
      • 80% of ideas and opportunities arise from the front line staff
    • Creates inability to leveagae ideas
    • Disempowered employeeds are a suymptom of organizaional decline
    • the means by which the entrepreneur either creates new ealth-prducing recourses or endows existing resources with enhanced potential for creating wealth. Peter Drucker
    • All activities that lead of new ideas or invention or a mix of multiple ideas or inventions applied in a new contextj

A Innovation Framweork

  • Needs to be a process
    • Needs to follow wel defined repeatable process
    • Need to deliberatly apply information, imagination, intelligence and initiaive
4 phases of innovation from Insitue of design
  abstract abstract  
how 2. Framing 3. Synthesis why
how 1. Understanding 4. Realizing* why
  concrete concrete  
  • Realizing is filtered on desirerablility, viability, feasability
  • Process is not linear
  • Early version of a new product which allows the innovation team to collect the most validated learning about the problem frames that they are solving for.
  • Move from MVP to MAP (Minium Awesome Product)
  • The minimum set of features that I can ship with and significantly boost traction on the product adoption.
  • the adoption momentum achived by a produyt. Typically measured by a mix of metrics such as web traffic, number of active users, number of regeistered users, revenues, profitability, etc..
Shapes of innovation
  • The BUsiness Model Canvas shows 4 main Innovation focus ares.
    1. Offereing
      • Value porpsition
      • innovation By:
        • uncoving hidden unmet need (rhumba)
        • pivot you offereing (four season sells sleep)
        • different economic model (adobe reative cloud)
        • Build ecosystem around product (App store)
    2. Go to Market Strategy
      • Customer Relationships, Channels, Customer Segments
      • Innovation By:
        • Rethinkg customer segment (fedex)
        • Mixing Channels (nike apps)
        • pricing & Sales (Azure)
    3. Operations and technology management
      • Key partners, Key activities, Key Reourses
      • Innovation By:
        • Technical and Operational Agility (netflix)
        • Innovation Contrats (Amazon)
        • Generating Technology/ Process IP (apple, google)
        • Steamlining Operations (toyota)
    4. Profit Model
      1. Cost Trcutures, Revenue Streams
      2. Innovation BY:
        • pricing/revenue model (uber)
        • Exploring adajcency (battery manufacturing)
        • Preventing Switching (telcoms)
        • Create Stickiness/habit forming (fast food)
Strategy Innovation & EA
  • Top down strategy
    • cannot course correct/
    • not fast enough feedback loop
    • EA focussed on reinforcing top down
    • EA doesn accomidate innovation or emergent/bottom up strategies
  • Currently there are two types of EAs
    1. Fouindational EA
      • Maintain enterprise technoilogy and systems of records
      • Introducing incremental changes
    2. Lean/Agile EAs
      • Lean/agile leaders guiding strategy and innovation
      • Focus on technology distrucptions and building systems of engagement.
  • Changing Role of EA
    • Leaders EA practitioners focusing on:
      • Driving business innovations
      • Intentional and emergent business strategy
      • Creating business ecosystems
      • Identifying business designs that leveage algorithmic businesses
  • The New Role of EA
    • Catalys intentional and emergent strategies
    • execute through innocation led and hypotheses driven development (HDD) approaches
    • Evangelize enterprise vision and strategy
    • Drive focus on opportunities, obstacles and pain-points
    • Contribute and facilitate enterprise innovation process

A lean/agile EA focuesses on delivering agile strategies and delivering innovation at an enterprise scale.

Architecture Development Sprint (ADS)

Architecture Development Sprint Model

  • Based from Sprint - How to Solve Problems and Test New Ideas in Just Five Days, Knapp, and others
  • Distinct from Scrum SPrint but complementary
  • The Method
    • Time boxed
    • facilitated
    • intenslt collaborative
    • series of workshops
    • typeically 5 days
    • Develop architecture in short iterations
    • Optimize for continuous delivery
    • Innocantion is a core objective
  • Day Descriptions
    1. Understand :: Seeks to understand the problem space deeply and braodly across:
      • stakeholders and their experience
      • businnes opportunities
      • Risks & constraints
      • Current Processes
      • Technological capabilities
      • Limitations
    2. Framing :: Individually and collectivly explore the problem frames
      • Articulate the "Job to be Done"
      • Explore wide variety of problems frames
      • Articulate the dieas in brief
    3. Synthesizing :: Narrow down on desirable, feasible, and viable problems/solutions
      • Obtaining stakholder input, opnioins and ffedback is critical for sucecss
      • Model the solution on diffent levels
        • Executive Level
        • Process/UX Level
        • Architecture and Implementation
    4. Realizing :: Absorbing feedback into solution model
      • Create Job Stories and story maps
      • Stakeholds feedback on target and incremental states are sought
    5. Realizing :: Minimal walking skeleton
      • demo and feedback
      • identifying next steps
        • more walking skeletons
        • architetural stell threads /spikes
        • delivering architecture to implementation and operations
        • Series of additional ADS to clarify and build out architecture
  • Case Study
    • Stakeholder categories
      1. Responsible
      2. Accountable
      3. Counsulted
      4. Informed
  • Summary
    • The overall process to continous and iterative devery of business value.
    • Achieves agility at scale and simultaniously weaves in lean priciples and innovation

ADS IN Action

Who

  1. Busines decision maker
  2. Solution Architect
  3. Customer/Stakeholder spokesperson[domain expert]
  4. Business Nanlysts
  5. UX Specialist
  6. Implementation Specialist
  7. Facilitator

Daily Schedule

  • 5 days
  • 9:30 start, 5 finish
  • 15 min email every 1.5 hours
  • 45 minute lunch
Day 1 activities
  • 30 min, Greet and establish ground rules
  • [busness decision maker] 15min walk thru and Busines context/Drivers
  • [solution architect]15min high level architechture and context, key technical competancies, how th eoslution hangs togethre, aritechtural risk in the space
  • [domain expert] operations: business scenarios, identify ket stakeholders, narrate recent incidents, operation risk and concerns with current solution,
  • [Facilitator] took notes on post-its from all presentations
    • put on closest waall.
    • Promopt others to do as well.
    • continue practice through out workshops,
    • introduct Idea parking lot, for important ideas not a priority
  • BREAK
  • Team defines Goals and Antigoals
    • focus on golas, anti goals are the guard rails for the discussions
    • in business terms.
  • members lobby most importatnt goals
  • Score goals with dots methods (3 votes each)
    • Top 3 - non-negotiable
    • Next 3 - Needs
    • Reast - Desierable
  • 5 min. Share prepreapared information eah person preapard about the domain from thier perspective/research avaliable
  • LUNCH