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
- Planning
- Overview
- Preparation
- Inspection Meeting
- Rework
- 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
- Maximizing stakeholder value
- Minimizing waste
- 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
- Vision
- Mission
- Strategic Themes
- Strategic Objective
- 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
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
- Value Proposition :: Unmet needs, What problem is to be solved?
- Customer Segments :: Who is the problem being solved for?
- Customer Relationships :: How will you gain/retain customers?
- Channels :: How will products services get sold & delivered?
- Key Patners :: Who do I need to partner with?
- Key Activities :: WEhat needs to be do?
- Key Resources :: What is required to perform teh key activities?
- Cost Structures :: Profit formula
- 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
- Idea Driven Organization, Robinson and Schroder
- 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.
- 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)
- Go to Market Strategy
- Customer Relationships, Channels, Customer Segments
- Innovation By:
- Rethinkg customer segment (fedex)
- Mixing Channels (nike apps)
- pricing & Sales (Azure)
- 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)
- Profit Model
- Cost Trcutures, Revenue Streams
- Innovation BY:
- pricing/revenue model (uber)
- Exploring adajcency (battery manufacturing)
- Preventing Switching (telcoms)
- Create Stickiness/habit forming (fast food)
- Offereing
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
- Fouindational EA
- Maintain enterprise technoilogy and systems of records
- Introducing incremental changes
- Lean/Agile EAs
- Lean/agile leaders guiding strategy and innovation
- Focus on technology distrucptions and building systems of engagement.
- Fouindational EA
- 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
- Leaders EA practitioners focusing on:
- 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
- Understand :: Seeks to understand the problem space deeply and braodly across:
- stakeholders and their experience
- businnes opportunities
- Risks & constraints
- Current Processes
- Technological capabilities
- Limitations
- 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
- 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
- Realizing :: Absorbing feedback into solution model
- Create Job Stories and story maps
- Stakeholds feedback on target and incremental states are sought
- 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
- Understand :: Seeks to understand the problem space deeply and braodly across:
- Case Study
- Stakeholder categories
- Responsible
- Accountable
- Counsulted
- Informed
- Stakeholder categories
- 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
- Busines decision maker
- Solution Architect
- Customer/Stakeholder spokesperson[domain expert]
- Business Nanlysts
- UX Specialist
- Implementation Specialist
- 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