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Asset Governance and Architecture Debt. Ian Koenig July 2011. 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
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Asset Governance and Architecture Debt Ian Koenig July 2011
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.
What happens if you are not careful Gartner estimates current IT Debt in the U.S at $500B and rising. Investment Investment Investment Investment Investment Investment Investment Maintenance (M&R) Investment Cost Operational Expense (OpEx) Architecture Debt Time
Architecture Debt – An Analogy Architecture Debt
Architecture Debt – An Analogy Deviation Expense
Cost & Payback of Infrastructure Debt / Deviation for a system 24% Optimal Cost: ~2.7M + 800K/year (OpEx + M&R) = $7.5M Additional cost of deviation: 2.2M + 275K/year = $3.6M
Golden Rules for Technology • Masters of Data • Modular • Simple • Standards-based • Compliant Secure Scalable Manageable Reliable Global Maintainable
Compliance to Golden Rules are measured through a scorecard The scorecard contains the detailed tests defining compliance to the Golden Rules
Corporate Impact Operating Income Investors’ Value Time to Market Market Share RISK Architecture Debt Customer Care Cost Brand
SOA Requires Governance Asset Governanceis 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 You arehere Destination Don’t overshoot START Death by Governance 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.