asset governance and architecture debt ian koenig july 2011
TRANSCRIPT
Asset Governance and Architecture Debt
Ian KoenigJuly 2011
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.2
Context and Problem
Reed Elsevier is the parent of LexisNexis• LexisNexis is a leading global provider of content-enabled workflow
solutions designed for professionals in the legal market employing 10,300 staff in 50 countries
• Reed Elsevier revenue in 2010 = £6.1b• LexisNexis Legal and Professional contributed 28% = £1.7b• 55% of the revenue comes from the U.S.
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.3
What happens if you are not careful
Time
Operational Expense (OpEx)Maintenance (M&R)
Investm
ent
Co
st
Investm
ent
Investm
ent
Investm
ent
Inv
es
tme
nt
Investm
ent
Investm
ent
Investm
ent
Architecture Debt
Gartner estimates current IT Debt in the U.S at $500B and rising.
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.4
Architecture Debt – An Analogy
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.5
Highway Policies / Golden Rules
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IT Debt (Maintenance Debt)
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.7
Architecture Debt – An Analogy
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.8
Architecture Debt – An Analogy
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.9
Architecture Debt – An Analogy
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.10
Architecture Debt – An Analogy
Architecture Debt
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Architecture Debt – An Analogy
Deviation Expense
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0 1 2 3 4 5 60
500
1000
1500
2000
2500
3000
3500
4000
4500
Deviation Opex
Deviation M&R
Deviation Build
Opex
M&R
Build
Optimal Cost: ~2.7M + 800K/year (OpEx + M&R) = $7.5MAdditional cost of deviation: 2.2M + 275K/year = $3.6M
24%
Cost & Payback of Infrastructure Debt / Deviation for a system
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.13
Golden Rules for Technology
I. Masters of DataII. ModularIII. SimpleIV. Standards-basedV. Compliant
VI. Secure VII. ScalableVIII. ManageableIX. Reliable X. Global XI. Maintainable
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Compliance to Golden Rules are measured through a scorecard
The scorecard contains the detailed tests defining compliance to the Golden Rules
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.15
Debt Dashboard – Strategic
Assets Debt $(000)
Masters of Data
Modular
Simple
Standards-base
d
Compliant
Secure
Scalable
Manageable
Reliable
Global
Maintainable
Budget (end'11)
(000)
Product Application Product Application 1 350-700 33,600
Product Application 2 2-10 800Product Delivery Platform Service 1 10-25 24,800 Service 2 9,400 Service 3 30-50 200 Service 4 400 9,600Content Fabrication Platform Service 1 200 10,000 Service 2 57.5 13,300 Service 3 1,000 52,800Infrastructure Service 1 0 1,300 Service 2 0 1,200
Copyright © 2011 LexisNexis, a division of Reed Elsevier Inc.16
Debt Dashboard – Legacy Systems
Overall Score
Assets
Debt $(000)Masters of
Data
Modular
Simple
Standard
s-base
d
Compliant
Secure
Scalable
Manageable
Reliable
Global
Maintainabl
e
Legacy Platform Application 1 50 - 100 Application 2 10,500 Application 3 25
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Architecture Debt – Application 2
PrincipleDebt ('000)
In Plan ('000) Gap Comment
1 Masters of Data 900 900 0 Some of our data will need to document and clarify organizational business ownership .
2 Modular 0 A large number of waivers apply based on leveraging out of the box COTS capabilities.
3 Simple 0 No concerns
4 Standards Based 100 100 Process waivers. Adoption of process and deliverables will resolve these architecture concerns.
5 Compliant 50 50 Add copyright language to source code.
6 Secure 0 No concerns
7 Scalable 1,500 1,500 Extensive work needed to build out scalability of this Asset
8 Manageable 0 Need to Implement business critical logging and component monitoring.
9 Reliable 4,500 4,500 0 Effort needed for DR plans. Resolve single points of failure.
10 Global 3,300 2,400 900 Investment needed to bring asset up to global ready status.
11 Maintainable 50 50 Document schemas and firm up lifecycle processes.
Golden Rule Debt
10,400 7,800 2,600
Infrastructure Debt
0 0 0
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Corporate Impact
Operating Income
Time to Market
Customer Care Cost
Investors’ Value
Market Share
Brand
RISK
Arc
hit
ec
ture
De
bt
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APPENDIX
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STA
RT
DestinationYou arehere
Death by Governance
Don’t overshoot
SOA Requires Governance
Asset Governance is a (1) Process with checks & balances and (2) People with defined decision rights, measuring compliance with a set of (3) Policies, producing (4) Metrics so that good business decisions
can be made involving technology and full adherence may be achieved in the fullness of time
SOA by its nature enables a federated development process with individual groups producing individual services relatively independently.
This enables scale (supporting agility) , but requires trust. Only via a well defined set of interface guidelines, policies and a Governance process can you keep complexity under control.