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Toward Innovative Model based Enterprise IT Outsourcing

Toward Innovative Model based Enterprise IT Outsourcing. Vinay Kulkarni and Sagar Sunkle. NGEBIS Workshop at CAISE 2013. Overview – Problem. Enterprise. Business. Overview – Problem. Business Silos for Ease of Management and Control. Enterprise. Business.

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Toward Innovative Model based Enterprise IT Outsourcing

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  1. Toward Innovative Model based Enterprise IT Outsourcing Vinay Kulkarni and Sagar Sunkle NGEBIS Workshop at CAISE 2013

  2. Overview – Problem Enterprise Business

  3. Overview – Problem Business Silos for Ease of Management and Control Enterprise Business

  4. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … Transformational IT needs : responding to change; multiple change drivers active- dynamic supply chains, mergers and acquisitions, globalization and regulatory compliances, cloud and mobile technology Both kinds originate in strategic, tactical, and operational goals of the enterprise

  5. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 …

  6. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Only local context known (if at all); enterprise-wide context unknown

  7. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Implement or improve in Specific Contexts of Business Silos

  8. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Locally Operational/Optimal

  9. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Globally Optimal ?

  10. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 …

  11. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Implementation of Functionalities servicing globally felt need may overlap due to lack of knowledge about enterprise-wide context

  12. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Specific contexts may also result in Non-interoperable technologies

  13. Overview – Problem – State of IT systems Transactional IT needs : day-to-day operational requirements Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Globally Sub-optimal design of operational processes Overlapping Functionalities Non-interoperable Technologies

  14. Overview – Problem- IT Outsourcing Headcount-based model/harmonization of software/ hardware etc. is insufficient Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 … Enterprises are expecting more- outcome-based pricing- enterprises focus on core competencies, rest all as an end-to-end solution by service provider

  15. Overview – Toward Solution Multiple IT Systems of an Enterprise Enterprise 1 IT Need 1 IT Need x IT System 1 IT System x Technology Infra Hardware Infra Technology Infra Hardware Infra IT Plant

  16. Overview – Toward Solution Multiple IT Systems of multiple enterprises from same domain Enterprise 1 Enterprise 2 … IT Need 1 IT Need 1 IT System 1 IT System 1 … … Hardware Infra Technology Infra Hardware Infra Technology Infra IT Plant 1 IT Plant 1 Product Line of IT Plants

  17. Overview – Problem – State of IT systems Transformational needs addressed based on experts’ knowledge Enterprise IT Need 1 IT Need 2 IT Need 3 … IT System 1 IT System 2 IT System 3 …

  18. Overview – Toward Solution Transformational decisions do not view enterprise holistically MUST represent enterprise in its entirety Enterprise Business IT System Infrastructure Key Dimensions of Enterprise

  19. Overview – Toward Solution Analysis World Enterprise Operational World

  20. Overview – Toward Solution Analysis World Dependence on expert knowledge reduce Enterprise Address core issues tackle Globally Sub-optimal design of operational processes Operational World Overlapping Functionalities Non-interoperable Technologies

  21. Overview – Toward Solution Goals, operational processes, organizational structure etc. models closer to the business domain; questions regarding efficacy of the as-is state; Path to desired to-be state w.r.t given property(ies) Analysis World [Model-driven] Enterprise Operational World [Model-driven]

  22. Overview – Toward Solution Reduce dependence on expert knowledge by Enabling data and model-driven decision making Analysis World [Model-driven] Enterprise Operational World [Model-driven]

  23. Overview – Toward Solution Analysis World [Model-driven] models of the complete IT plant that automate a set of operational processes through a set of IT systems ensuring correct operation of the enterprise both in functional and non-functional sense Enterprise Operational World [Model-driven]

  24. Overview – Toward Solution Analysis World [Model-driven] Enterprise IT Plant product line for multiple enterprises in same domain Operational World [Model-driven]

  25. Overview – Toward Solution Analysis World [Model-driven] Enterprise IT Plant product line for multiple enterprises in same domain Operational World [Model-driven]

  26. Overview – Toward Solution Analysis World [Model-driven] Bidirectional traceability; use insights from analysis world in operational world; Keep analysis models updated with operational changes Enterprise Operational World [Model-driven]

  27. Overview – Toward Solution Analysis World [Model-driven] Enterprise Specification Enterprise Simulation Enterprise IT Plant Specification Research work packages IT Plant Contract Specification IT Plant Testing Operational World [Model-driven] IT Plant Deployment

  28. Overview – Toward Solution Enterprise Specification Analysis World [Model-driven] Enterprise Simulation Enterprise Research work packages IT Plant Specification IT Plant Contract Specification Operational World [Model-driven] IT Plant Testing IT Plant Deployment

  29. Overview – Toward Solution Enterprise Specification Analysis World [Model-driven] Enterprise Simulation Ontological representation for machine-processable and analyzable enterprise models Enterprise Early Results Intentional and system dynamics models for capturing “Why” in enterprise Operational World [Model-driven]

  30. Overview – Conclusion Analysis World [Model-driven] Enterprises Enterprise Win-Win Situation Operational World [Model-driven] Service Provider

  31. Thanks!! Questions?

  32. Questions Products and Processes of Public Sector Bank

  33. Research Challenges Analysis World [Model-driven] Specification & Analysis of Enterprise Models Enterprise Models Enterprise Simulation Domain Models Domain Models Domain Model Verification IT Plant Architecture IT Systems Architecture Reconstruction Business Rule Extraction Operational World [Model-driven] IT Systems Architecture IT Systems/Plant Models IT Systems Models for Change Agility Adaptive Systems

  34. Research Challenges Analysis World [Model-driven] Specification and Analysis of Enterprise Models Goal Machine-processable enterprise models Enterprise Enterprise-wide analysis of satisfaction of properties Purpose Approach Enterprises are complex interconnected systems of systems Early results ontology based enterprise models,what-if/if-what analyses Use cases- directives, objectives, policies and regulatory compliances and so on, scenarios of interaction between enterprises- Outsourcing, M&A, etc. Techniques for measuring properties, quantification

  35. Research Challenges Analysis World [Model-driven] Enterprise Simulation Capture behavior of Enterprise Measure and Optimize the effectiveness of Enterprise goals by playing out what-if scenarios Goal Enterprise Purpose Approach Optimize business process, supply chains Reduce risk , cost, improve planning • Map Simulation Techniques w.r.t their applicability • System Dynamics  Time • Petri Nets  workflows • State Machines  events • Simulate models in concert • Create mapping between simulation models and EA models • Create DSL to simulate multiple models in concert

  36. Research Challenges Domain [Functional] Models of IT Plant Goal Identify and define formal modeling mechanism for IT plant domain. Enterprise Purpose Approach Semantics Traceability Machine processing form Multi organization context Identify model requirements for IT Plant Identify gaps between the model requirements and available Industry standard models Identify and define required modeling elements based on the assessment. Pilot it with a suitable domain Operational World [Model-driven]

  37. Research Challenges Domain Model Verification Goal Define formal mechanism to maintain consistency of IT plant modeling during refinement Verify the IT plant model for specific properties Enterprise Purpose Approach Consistent model refinement Verification of desirable properties of IT Plant specifications Early detection of model bugs Examine the model refinement requirement in IT plant specification Examine the existing model refine techniques. Adopt/enhance the existing techniques to make them suitable for IT Plant specification. For model verification, define formal mechanism to express desirable properties of interest Adopt/extend existing verification techniques to verify IT plant specs against desired properties Operational World [Model-driven]

  38. Research Challenges IT Plant System Architecture Goal Understand and model the influence of business products and processes on IT plant architecture in SP environment Enterprise Purpose Approach Improved IT Plant planning Adaptive technology architecture Dynamic provisioning of resources • Map a selected IT plant landscape in the lines of its products and processes. • Based on study arrive at the impact of product and process changes on the IT plant architecture. Operational World [Model-driven]

  39. Research Challenges IT Plant Architecture Goal Arrive at IT plant architecture catering to varying needs Composition and decomposition mechanisms for IT plant architecture Enterprise Purpose Approach Varying needs of enterprises in same domain Customizations per enterprise may increase app development and management cost Investigate mechanisms, techniques for (de)composition for variability capturing Investigate effect of such mechanisms on non functional properties Operational World [Model-driven]

  40. Research Challenges Architecture Reconstruction Goal Identifying predefined architectural elements and relations among them. Re-construct architecture from the source code using inputs from system/application experts. Enterprise Purpose Approach Use program comprehension techniques, refactoring, slicing, and clustering to extract layers and partitions from the source code. Using machine learning techniques like clustering embodied in Lattix tool or other new techniques. IT plant Modernization Most of the architecture/design documents either outdated or un-available Operational World [Model-driven]

  41. Research Challenges Business Rule Extraction IT plant Modernization Extract inherent operational and business Rules Goal Enterprise Purpose Approach Enterprises are rule driven Most these are legacy in nature. To capture ever changing regulatory policies and regulations Identify the constraints and calculation from the legacy code Formulate standard and application level strategies Apply data dictionary (meanings of database variables) Use comments to infer meanings to rules Apply machine learning algorithms Rules Representation Variability Visualization Formal representation for verification Extending SBVR kind of representation Operational World [Model-driven]

  42. Research Challenges Models IT Systems Goal Model all aspects of IT systems with inter-dependencies Enterprise Change Impact Analysis Purpose Approach Multi-layered model Change agility in IT systems Definition of change in terms of model Correctness guarantees Realization thru Model transformation Operational World [Model-driven]

  43. Research Challenges Adaptive Enterprise IT Systems- Goal Monitor and adapt the functioning of IT systems with respect to their non-functional requirements Arrive at mechanism to implement adaptation loop (MAPE) Enterprise Purpose Approach • Modeling Adaptation for IT Systems • Construct reference architecture for IT Systems using - • MAPE-k architectural pattern • Feedback Loops • Examine Execution Traces • Investigate data logs and execution traces to indentify what properties to monitor and adapt • Language Support • Language to support adaptive software development To meet SLAs- To reduce people intervention Operational World [Model-driven]

  44. Research Challenges Using information flows? How to build enterprise models ? Which abstractions? How to verify that they achieve intended effect? How to utilize/affect transformation of IT systems? Enterprise How to capture combination of manual AND automated steps of business processes? How to model business functions? A language for modeling an enterprise? Domain-specific language drawing on ideas from event based paradigm, multi agent systems

  45. Summary Analysis World [Model-driven] Specification & Analysis of Enterprise Models Enterprise Models Dependence on expert knowledge Enterprise Simulation Domain Models Domain Models Domain Model Verification IT Plant Architecture IT Systems Architecture Reconstruction Business Rule Extraction Operational World [Model-driven] Globally Sub-optimal design of operational processes IT Systems Architecture Overlapping Functionalities IT Systems/Plant Models Non-interoperable Technologies IT Systems Models for Change Agility Adaptive Systems

  46. IT Plant Architecture • What • Arrive at an architecture for IT plant catering to varying needs of customers in same domain • Why • Large enterprises needs plethora of applications to meet their needs. • Needs of no two customers in same domain are exactly identical • Various situations Service Providers need to service customer are • Deliver as-is solutions • Manage known , unknown configurations • Manage known , unknown extensions • Deliver parts and integrate existing systems • Problems • Not designed to manage these scenarios • follow clone-n-own approach • Increased ADM cost • Customer not sure of certainty of meeting their needs

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