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Q&A with Marshall Van Alstyne, Professor, Boston University School of Management and Research Scientist MIT Center for Digital Business

By The Open Group

The word “platform” has become a nearly ubiquitous term in the tech and business worlds these days. From “Platform as a Service” (PaaS) to IDC’s Third Platform to The Open Group Open Platform 3.0™ Forum, the concept of platforms and building technology frames and applications on top of them has become the next “big thing.”

Although the technology industry tends to conceive of “platforms” as the vehicle that is driving trends such as mobile, social networking, the Cloud and Big Data, Marshall Van Alstyne, Professor at Boston University’s School of Management and a Research Scientist at the MIT Center for Digital Business, believes that the radical shifts that platforms bring are not just technological.

We spoke with Van Alstyne prior to The Open Group Boston 2014, where he presented a keynote, about platforms, how they have shifted traditional business models and how they are impacting industries everywhere.

The title of your session at the Boston conference was “Platform Shift – How New Open Business Models are Changing the Shape of Industry.” How would you define both “platform” and “open business model”?

I think of “platform” as a combination of two things. One, a set of standards or components that folks can take up and use for production of goods and services. The second thing is the rules of play, or the governance model – who has the ability to participate, how do you resolve conflict, and how do you divide up the royalty streams, or who gets what? You can think of it as the two components of the platform—the open standard together with the governance model. The technologists usually get the technology portion of it, and the economists usually get the governance and legal portions of it, but you really need both of them to understand what a ‘platform’ is.

What is the platform allowing then and how is that different from a regular business model?

The platform allows third parties to conduct business using system resources so they can actually meet and exchange goods across the platform. Wonderful examples of that include AirBnB where you can rent rooms or you can post rooms, or eBay, where you can sell goods or exchange goods, or iTunes where you can go find music, videos, apps and games provided by others, or Amazon where third parties are even allowed to set up shop on top of Amazon. They have moved to a business model where they can take control of the books in addition to allowing third parties to sell their own books and music and products and services through the Amazon platform. So by opening it up to allow third parties to participate, you facilitate exchange and grow a market by helping that exchange.

How does this relate to the concept of the technology industry is defining the “third platform”?

I think of it slightly differently. The tech industry uses mobile and social and cloud and data to characterize it. In some sense this view offers those as the attributes that characterize platforms or the knowledge base that enable platforms. But we would add to that the economic forces that actually shape platforms. What we want to do is give you some of the strategic tools, the incentives, the rules that will actually help you control their trajectory by helping you improve who participates and then measure and improve the value they contribute to the platform. So a full ecosystem view is not just the technology and the data, it also measures the value and how you divide that value. The rules of play really become important.

I think the “third platform” offers marvelous concepts and attributes but you also need to add the economics to it: Why do you participate, who gets what portions of the value, and who ultimately owns control.

Who does control the platform then?

A platform has multiple parts. Determining who controls what part is the art and design of the governance model. You have to set up control in the right way to motivate people to participate. But before we get to that, let’s go back and complete the idea of what’s an ‘open platform.’

To define an open platform, consider both the right of access and the right to manipulate platform resources, then consider granting those rights to four different parties. One is the user—can they access one another, can they access data, can they access system resources? Another group is developers—can they manipulate system resources, can they add new features to it, can they sell through the platform? The third group is the platform providers. You often think of them as those folks that facilitate access across the platform. To give you an example, iTunes is a single monolithic store, so the provider is simply Apple, but Android, in contrast, allows multiple providers, so there’s a Samsung Android store, an LTC Android store, a Google Android store, there’s even an Amazon version that uses a different version of Android. So that platform has multiple providers each with rights to access users. The fourth group is the party that controls the underlying property rights, who owns the IP. The ability modify the underlying standard and also the rights of access for other parties is the bottom-most layer.

So to answer the question of what is ‘open,’ you have to consider the rights of access of all four groups—the users, developers, the providers and IP rights holders, or sponsors, underneath.

Popping back up a level, we’re trying to motivate different parties to participate in the ecosystem. So what do you give the users? Usually it’s some kind of value. What do you give developers? Usually it’s some set of SDKs and APIs, but also some level of royalties. It’s fascinating. If you look back historically, Amazon initially tried a publishing royalty where they took 70% and gave a minority 30% back to developers. They found that didn’t fly very well and they had to fall back to the app store or software-style royalty, where they’re taking a lower percentage. I think Apple, for example, takes 30 percent, and Amazon is now close to that. You see ranges of royalties going anywhere from a few percent—an example is credit cards—all the way up to iStock photo where they take roughly 70 percent. That’s an extremely high rate, and one that I don’t recommend. We were just contracting for designs at 99Designs and they take a 20 percent cut. That’s probably more realistic, but lower might perhaps even be better—you can create stronger network effect if that’s the case.

Again, the real question of control is how you motivate third parties to participate and add value? If you are allowing them to use resources to create value and keep a lot of that value, then they’re more motivated to participate, to invest, to bring their resources to your platform. If you take most of the value they create, they won’t participate. They won’t add value. One of the biggest challenges for open platforms—what you might call the ‘Field of Dreams’ approach—is that most folks open their platform and assume ‘if you build it, they will come,’ but you really need to reward them to do so. Why would they want to come build with you? There are numerous instances of platforms that opened but no developer chooses to add value—the ecosystem is too small. You have to solve the chicken and egg problem where if you don’t have users, developers don’t want to build for you, but if you don’t have developer apps, then why do users participate? So you’ve got a huge feedback problem. And those are where the economics become critical, you must solve the chicken and egg problem to build and roll out platforms.

It’s not just a technology question; it’s also an economics and rewards question.

Then who is controlling the platform?

The answer depends on the type of platform. Giving different groups a different set of rights creates different types of platform. Consider the four different parties: users, developers, providers, and sponsors. At one extreme, the Apple Mac platform of the 1980s reserved most rights for development, for producing hardware (the provider layer), and for modifying the IP (the sponsor layer) all to Apple. Apple controlled the platform and it remained closed. In contrast, Microsoft relaxed platform control in specific ways. It licensed to multiple providers, enabling Dell, HP, Compaq and others to sell the platform. It gave developers rights of access to SDKs and APIs, enabling them to extend the platform. These control choices gave Microsoft more than six times the number of developers and more than twenty times the market share of Apple at the high point of Microsoft’s dominance of desktop operating systems. Microsoft gave up some control in order to create a more inclusive platform and a much bigger market.

Control is not a single concept. There are many different control rights you can grant to different parties. For example, you often want to give users an ability to control their own data. You often want to give developers intellectual property rights for the apps that they create and often over the data that their users create. You may want to give them some protections against platform misappropriation. Developers resent it if you take their ideas. So if the platform sees a really clever app that’s been built on top of its platform, what’s the guarantee that the platform simply doesn’t take it or build a competing app? You need to protect your developers in that case. Same thing’s true of the platform provider—what guarantees do they provide users for the quality of content provided on their ecosystem? For example, the Android ecosystem is much more open than the iPhone ecosystem, which means you have more folks offering stores. Simultaneously, that means that there are more viruses and more malware in Android, so what rights and guarantees do you require of the platform providers to protect the users in order that they want to participate? And then at the bottom, what rights do other participants have to control the direction of the platform growth? In the Visa model, for example, there are multiple member banks that help to influence the general direction of that credit card standard. Usually the most successful platforms have a single IP rights holder, but there are several examples of that have multiple IP rights holders.

So, in the end control defines the platform as much as the platform defines control.

What is the “secret” of the Internet-driven marketplace? Is that indeed the platform?

The secret is that, in effect, the goal of the platform is to increase transaction volume and value. If you can do that—and we can give you techniques for doing it—then you can create massive scale. Increasing the transaction value and transactions volume across your platform means that the owner of the platform doesn’t have to be the sole source of content and new ideas provided on the platform. If the platform owner is the only source of value then the owner is also the bottleneck. The goal is to consummate matches between producers and consumers of value. You want to help users find the content, find the resources, find the other people that they want to meet across your platform. In Apple’s case, you’re helping them find the music, the video, the games, and the apps that they want. In AirBnB’s case, you’re helping them find the rooms that they want, or Uber, you’re helping them find a driver. On Amazon, the book recommendations help you find the content that you want. In all the truly successful platforms, the owner of the platform is not providing all of that value. They’re enabling third parties to add that value, and that’s one reasy why The Open Group’s ideas are so important—you need open systems for this to happen.

What’s wrong with current linear business models? Why is a network-driven approach superior?

The fundamental reason why the linear business model no longer works is that it does not manage network effects. Network effects allow you to build platforms where users attract other users and you get feedback that grows your system. As more users join your platform, more developers join your platform, which attracts more users, which attracts more developers. You can see it on any of the major platforms. This is also true of Google. As advertisers use Google Search, the algorithms get better, people find the content that they want, so more advertisers use it. As more drivers join Uber, more people are happier passengers, which attracts more drivers. The more merchants accept Visa, the more consumers are willing to carry it, which attracts more merchants, which attracts more consumers. You get positive feedback.

The consequence of that is that you tend to get market concentration—you get winner take all markets. That’s where platforms dominate. So you have a few large firms within a given category, whether this is rides or books or hotels or auctions. Further, once you get network effects changing your business model, the linear insights into pricing, into inventory management, into innovation, into strategy breakdown.

When you have these multi-sided markets, pricing breaks down because you often price differently to one side than another because one side attracts the other. Inventory management practices breakdown because you’re selling inventory that you don’t even own. Your R&D strategies breakdown because now you’re motivating innovation and research outside the boundaries of the firm, as opposed to inside the internal R&D group. And your strategies breakdown because you’re not just looking for cost leadership or product differentiation, now you’re looking to shape the network effects as you create barriers to entry.

One of the things that I really want to argue strenuously is that in markets where platforms will emerge, platforms beat product every time. So the platform business model will inevitably beat the linear, product-based business model. Because you’re harnessing new forces in order to develop a different kind of business model.

Think of it the following way–imagine that value is growing as users consume your product. Think of any of the major platforms, as more folks use Google, search gets better, the more recommendations improve on Amazon, and the easier it is to find a ride on Uber, so more folks want to be on there. It is easier to scale network effects outside your business than inside your business. There’s simply more people outside than inside. The moment that happens, the locus control, the locus of innovation, moves from inside the firm to outside the firm. So the rules change. Pricing changes, your innovation strategies change, your inventory policies change, your R&D changes. You’re now managing resources outside the firm, rather than inside, in order to capture scale. This is different than the traditional industrial supply economies of scale.

Old systems are giving away to new systems. It’s not that the whole system breaks down, it’s simply that you’re looking to manage network effects and manage new business models. Another way to see this is that previously you were managing capital. In the industrial era, you were managing steel, you were managing large amounts of finance in banking, you were managing auto parts—huge supply economies of scale. In telecommunications, you were managing infrastructure. Now, you’re managing communities and these are managed outside the firm. The value that’s been created at Facebook or WhatsApp or Instagram or any of the new acquisitions, it’s not the capital that’s critical, it’s the communities that are critical, and these are built outside the firm.

There is a lot of talk in the industry about the Nexus of Forces as Gartner calls it, or Third Platform (IDC). The Open Group calls it Open Platform 3.0. Your concept goes well beyond technology—how does Open Platform 3.0 enable new business models?

Those are the enablers—they’re shall we say necessary, but they’re not sufficient. You really must harness the economic forces in addition to those enablers—mobile, social, Cloud, data. You must manage communities outside the firm, that’s the mobile and the social element of it. But this also involves designing governance and setting incentives. How are you capturing users outside the organization, how are they contributing, how are they being motivated to participate, why are they spreading your products to their peers? The Cloud allows it to scale—so Instagram and What’s App and others scale. Data allows you to “consummate the match.” You use that data to help people find what they need, to add value, so all of those things are the enablers. Then you have to harness the economics of the enablers to encourage people to do the right thing. You can see the correct intuition if you simply ask what happens if all you offer is a Cloud service and nothing more. Why will anyone use it? What’s the value to that system? If you open APIs to it, again, if you don’t have a user base, why are developers going to contribute? Developers want to reach users. Users want valuable functionality.

You must manage the motives and the value-add on the platform. New business models come from orchestrating not just the technology but also the third party sources of value. One of the biggest challenges is to grow these businesses from scratch—you’ve got the cold start chicken and egg problem. You don’t have network effects if you don’t have a user base, if you don’t have users, you don’t have network effects.

Do companies need to transform themselves into a “business platform” to succeed in this new marketplace? Are there industries immune to this shift?

There is a continuum of companies that are going to be affected. It starts at one end with companies that are highly information intense—anything that’s an information intensive business will be dramatically affected, anything that’s community or fashion-based business will be dramatically affected. Those include companies involved in media and news, songs, music, video; all of those are going to be the canaries in the coalmine that see this first. Moving farther along will be those industries that require some sort of certification—those include law and medicine and education—those, too, will also be platformized, so the services industries will become platforms. Farther down that are the ones that are heavily, heavily capital intensive where control of physical capital is paramount, those include trains and oil rigs and telecommunications infrastructure—eventually those will be affected by platform business models to the extent that data helps them gain efficiencies or add value, but they will in some sense be the last to be affected by platform business models. Look for the businesses where the cost side is shrinking in proportion to the delivery of value and where the network effects are rising as a proportional increase in value. Those forces will help you predict which industries will be transformed.

How can Enterprise Architecture be a part of this and how do open standards play a role?

The second part of that question is actually much easier. How do open standards play a role? The open standards make it much easier for third parties to attach and incorporate technology and features such that they can in turn add value. Open standards are essential to that happening. You do need to ask the question as to who controls those standards—is it completely open or is it a proprietary standard, a published standard but it’s not manipulable by a third party.

There will be at least two or three different things that Enterprise Architects need to do. One of these is to design modular components that are swappable, so as better systems become available, the better systems can be swapped in. The second element will be to watch for components of value that should be absorbed into the platform itself. As an example, in operating systems, web browsing has effectively been absorbed into the platform, streaming has been absorbed into the platform so that they become aware of how that actually works. A third thing they need to do is talk to the legal team to see where it is that the third parties property rights can be protected so that they invest. One of the biggest mistakes that firms make is to simply assume that because they own the platform, because they have the rights of control, that they can do what they please. If they do that, they risk alienating their ecosystems. So they should talk to their potential developers to incorporate developer concerns. One of my favorite examples is the Intel Architecture Lab which has done a beautiful job of articulating the voices of developers in their own architectural plans. A fourth thing that can be done is an idea borrowed from SAP, that builds Enterprise Architecture—they articulate an 18-24 month roadmap where they say these are the features that are coming, so you can anticipate and build on those. Also it gives you an idea of what features will be safe to build on so you won’t lose the value you’ve created.

What can companies do to begin opening their business models and more easily architect that?

What they should do is to consider four groups articulated earlier— those are the users, the providers, the developers and the sponsors—each serve a different role. Firms need to understand what their own role will be in order that they can open and architect the other roles within their ecosystem. They’ll also need to choose what levels of exclusivity they need to give their ecosystem partners in a different slice of the business. They should also figure out which of those components they prefer to offer themselves as unique competencies and where they need to seek third party assistance, either in new ideas or new resources or even new marketplaces. Those factors will help guide businesses toward different kinds of partnerships, and they’ll have to be open to those kinds of partners. In particular, they should think about where are they most likely to be missing ideas or missing opportunities. Those technical and business areas should open in order that third parties can take advantage of those opportunities and add value.

 

vanalstynemarshallProfessor Van Alstyne is one of the leading experts in network business models. He conducts research on information economics, covering such topics as communications markets, the economics of networks, intellectual property, social effects of technology, and productivity effects of information. As co-developer of the concept of “two sided networks” he has been a major contributor to the theory of network effects, a set of ideas now taught in more than 50 business schools worldwide.

Awards include two patents, National Science Foundation IOC, SGER, SBIR, iCorp and Career Awards, and six best paper awards. Articles or commentary have appeared in Science, Nature, Management Science, Harvard Business Review, Strategic Management Journal, The New York Times, and The Wall Street Journal.

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Discussing Enterprise Decision-Making with Penelope Everall Gordon

By The Open Group

Most enterprises today are in the process of jumping onto the Big Data bandwagon. The promise of Big Data, as we’re told, is that if every company collects as much data as they can—about everything from their customers to sales transactions to their social media feeds—executives will have “the data they need” to make important decisions that can make or break the company. Not collecting and using your data, as the conventional wisdom has it, can have deadly consequences for any business.

As is often the case with industry trends, the hype around Big Data contains both a fair amount of truth and a fair amount of fuzz. The problem is that within most organizations, that conventional wisdom about the power of data for decision-making is usually just the tip of the iceberg when it comes to how and why organizational decisions are made.

According to Penelope Gordon, a consultant for 1Plug Corporation who was recently a Cloud Strategist at Verizon and was formerly a Service Product Strategist at IBM, that’s why big “D” (Data) needs to be put back into the context of enterprise decision-making. Gordon, who spoke at The Open Group Boston 2014, in the session titled “Putting the D Back in Decision” with Jean-Francois Barsoum of IBM, argues that a focus on collecting a lot of data has the potential to get in the way of making quality decisions. This is, in part, due to the overabundance of data that’s being collected under the assumption that you never know where there’s gold to be mined in your data, so if you don’t have all of it at hand, you may just miss something.

Gordon says that assuming the data will make decisions obvious also ignores the fact that ultimately decisions are made by people—and people usually make decisions based on their own biases. According to Gordon, there are three types of natural decision making styles—heart, head and gut styles—corresponding to different personality types, she said; the greater the amount of data the more likely that it will not balance the natural decision-making style.

Head types, Gordon says, naturally make decisions based on quantitative evidence. But what often happens is that head types often put off making a decision until more data can be collected, wanting more and more data so that they can make the best decision based on the facts. She cites former President Bill Clinton as a classic example of this type. During his presidency, he was famous for putting off decision-making in favor of gathering more and more data before making the decision, she says. Relying solely on quantitative data also can mean you may miss out on other important factors in making optimal decisions based on either heart (qualitative) or instinct. Conversely, a gut-type presented with too much data will likely just end up ignoring data and acting on instinct, much like former President George W. Bush, Gordon says.

Gordon believes part of the reason that data and decisions are more disconnected than one might think is because IT and Marketing departments have become overly enamored with what technology can offer. These data providers need to step back and first examine the decision objectives as well as the governance behind those decisions. Without understanding the organization’s decision-making processes and the dynamics of the decision-makers, it can be difficult to make optimal and effective strategic recommendations, she says, because you don’t have the full picture of what the stakeholders will or will not accept in terms of a recommendation, data or no data.

Ideally, Gordon says, you want to get to a point where you can get to the best decision outcome possible by first figuring out the personal and organizational dynamics driving decisions within the organization, shifting the focus from the data to the decision for which the data is an input.

“…what you’re trying to do is get the optimal outcome, so your focus needs to be on the outcome, so when you’re collecting the data and assessing the data, you also need to be thinking about ‘how am I going to present this data in a way that it is going to be impactful in improving the decision outcomes?’ And that’s where the governance comes into play,” she said.

Governance is of particular importance now, Gordon says, because decisions are increasingly being made by individual departments, such as when departments buy their own cloud-enabled services, such as sales force automation. In that case, an organization needs to have a roadmap in place with compensation to incent decision-makers to adhere to that roadmap and decision criteria for buying decisions, she said.

Gordon recommends that companies put in place 3-5 top criteria for each decision that needs to be made so that you can ensure that the decision objectives are met. This distillation of the metrics gives decision-makers a more comprehensible picture of their data so that their decisions don’t become either too subjective or disconnected from the data. Lower levels of metrics can be used underneath each of those top-level criteria to facilitate a more nuanced valuation. For example, if an organization needing to find good partner candidates scored and ranked (preferably in tiers) potential partners using decision criteria based on the characteristics of the most attractive partner, rather than just assuming that companies with the best reputation or biggest brands will be the best, then they will expeditiously identify the optimal partner candidates.

One of the reasons that companies have gotten so concerned with collecting and storing data rather than just making better decisions, Gordon believes, is that business decisions have become inherently more risky. The required size of investment is increasing in tandem with an increase in the time to return; time to return is a key determinant of risk. Data helps people feel like they are making competent decisions but in reality does little to reduce risk.

“If you’ve got lots of data, then the thinking is, ‘well, I did the best that I could because I got all of this data.’ People are worried that they might miss something,“ she said. “But that’s where I’m trying to come around and say, ‘yeah, but going and collecting more data, if you’ve got somebody like President Clinton, you’re just feeding into their tendency to put off making decisions. If you’ve got somebody like President Bush and you’re feeding into their tendency to ignore it, then there may be some really good information, good recommendations they’re ignoring.”

Gordon also says that having all the data possible to work with isn’t usually necessary—generally a representative sample will do. For example, she says the U.S Census Bureau takes the approach where it tries to count every citizen; consequently certain populations are chronically undercounted and inaccuracies pass undetected. The Canadian census, on the other hand, uses representative samples and thus tends to be much more accurate—and much less expensive to conduct. Organizations should also think about how they can find representative or “proxy” data in cases where collecting data that directly addresses a top-level decision criteria isn’t really practical.

To begin shifting the focus from collecting data inputs to improving decision outcomes, Gordon recommends clearly stating the decision objectives for each major decision and then identifying and defining the 3-5 criteria that are most important for achieving the decision objectives. She also recommends ensuring that there is sufficient governance and a process in place for making decisions including mechanisms for measuring the performance of the decision-making process and the outcomes resulting from the execution of that process. In addition, companies need to consider whether their decisions are made in a centralized or decentralized manner and then adapt decision governance accordingly.

One way that Enterprise Architects can help to encourage better decision-making within the organizations in which they work is to help in developing that governance rather than just providing data or data architectures, Gordon says. They should help stakeholders identify and define the important decision criteria, determine when full population rather than representative sampling is justified, recognize better methods for data analysis, and form decision recommendations based on that analysis. By gauging the appropriate blend of quantitative and qualitative data for a particular decision maker, an Architect can moderate gut types’ reliance on instinct and stimulate head and heart types’ intuition – thereby producing an optimally balanced decision. Architects should help lead and facilitate execution of the decision process, as well as help determine how data is presented within organizations in order to support the recommendations with the highest potential for meeting the decision objectives.

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penelopegordonPenelope Gordon recently led the expansion of the channel and service packaging strategies for Verizon’s cloud network products. Previously she was an IBM Strategist and Product Manager bringing emerging technologies such as predictive analytics to market. She helped to develop one of the world’s first public clouds.

 

 

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The Open Group Boston 2014 – Day One Highlights

By Loren K. Baynes, Director, Global Marketing Communications

The Open Group kicked off Enabling Boundaryless Information Flow™  July 21 at the spectacular setting of the Hyatt Boston Harbor. Allen Brown, CEO and President of The Open Group, welcomed over 150 people from 20 countries, including as far away as Australia, Japan, Saudi Arabia and India.

The first keynote speaker was Marshall Van Alstyne, Professor at Boston University School of Management & Researcher at MIT Center for Digital Business, known as a leading expert in business models. His presentation entitled Platform Shift – How New Open Business Models are Changing the Shape of Industry posed the questions “What does ‘openness’ mean? Why do platforms beat products every time?”.

Van AlstyneMarshall Van Alstyne

According to “InterBrand: 2014 Best Global Brands”, 13 of the top 31 companies are “platform companies”. To be a ‘platform’, a company needs embeddable functions or service and allow 3rd party access. Alystyne noted, “products have features, platforms have communities”. Great standalone products are not sufficient. Positive changes experienced by a platform company include pricing/profitability, supply chains, internal organization, innovation, decreased industry bottlenecks and strategy.

Platforms benefit from broad contributions, as long as there is control of the top several complements. Alstyne commented, “If you believe in the power of community, you need to embrace the platform.”

The next presentation was Open Platform 3.0™ – An Integrated Approach to the Convergence of Technology Platforms, by Dr. Chris Harding, Director for Interoperability, The Open Group. Dr. Harding discussed how society has developed a digital society.

1970 was considered the dawn of an epoch which saw the First RAM chip, IBM introduction of System/370 and a new operating system – UNIX®. Examples of digital progress since that era include driverless cars and Smart Cities (management of traffic, energy, water, communication).

Digital society enablers are digital structural change and corporate social media. The benefits are open innovation, open access, open culture, open government and delivering more business value.

Dr. Harding also noted, standards are essential to innovation and enable markets based on integration. The Open Group Open Platform 3.0™ is using ArchiMate®, an Open Group standard, to analyze the 30+ business use cases produced by the Forum. The development cycle is understanding, analysis, specification, iteration.

Dr. Harding emphasized the importance of Boundaryless Information Flow™, as an enabler of business objectives and efficiency through IT standards in the era of digital technology, and designed for today’s agile enterprise with direct involvement of business users.

Both sessions concluded with an interactive audience Q&A hosted by Allen Brown.

The last session of the morning’s plenary was a panel: The Internet of Things and Interoperability. Dana Gardner, Principal Analyst at Interarbor Solutions, moderated the panel. Participating in the panel were Said Tabet, CTO for Governance, Risk and Compliance Strategy, EMC; Penelope Gordon, Emerging Technology Strategist, 1Plug Corporation; Jean-Francois Barsoum, Senior Managing Consultant, Smarter Cities, Water & Transportation, IBM; and Dave Lounsbury, CTO, The Open Group.

IoT PanelIoT Panel – Gardner, Barsoum, Tabet, Lounsbury, Gordon

The panel explored the practical limits and opportunities of Internet of Things (IoT). The different areas discussed include obstacles to decision-making as big data becomes more prolific, openness, governance and connectivity of things, data and people which pertain to many industries such as smart cities, manufacturing and healthcare.

How do industries, organizations and individuals deal with IoT? This is not necessarily a new problem, but an accelerated one. There are new areas of interoperability but where does the data go and who owns the data? Openness is important and governance is essential.

What needs to change most to see the benefits of the IoT? The panel agreed there needs to be a push for innovation, increased education, move beyond models of humans managing the interface (i.e. machine-to-machine) and determine what data is most important, not always collecting all the data.

A podcast and transcript of the Internet of Things and Interoperability panel will be posted soon.

The afternoon was divided into several tracks: Boundaryless Information Flow™, Open Platform 3.0™ and Enterprise Architecture (EA) & Enterprise Transformation. Best Practices for Enabling Boundaryless Information Flow across the Government was presented by Syed Husain, Consultant Enterprise Architecture, Saudi Arabia E-government Authority. Robert K. Pucci, CTO, Communications Practice, Cognizant Technology Solutions discussed Business Transformation Justification Leveraging Business and Enterprise Architecture.

The evening concluded with a lively networking reception at the hotel.

Join the conversation #ogBOS!

Loren K. BaynesLoren K. Baynes, Director, Global Marketing Communications, joined The Open Group in 2013 and spearheads corporate marketing initiatives, primarily the website, blog and media relations. Loren has over 20 years experience in brand marketing and public relations and, prior to The Open Group, was with The Walt Disney Company for over 10 years. Loren holds a Bachelor of Business Administration from Texas A&M University. She is based in the US.

 

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The Open Group Boston 2014 Preview: Talking People Architecture with David Foote

By The Open Group

Among all the issues that CIOs, CTOs and IT departments are facing today, staffing is likely near the top of the list of what’s keeping them up at night. Sure, there’s dealing with constant (and disruptive) technological changes and keeping up with the latest tech and business trends, such as having a Big Data, Internet of Things (IoT) or a mobile strategy, but without the right people with the right skills at the right time it’s impossible to execute on these initiatives.

Technology jobs are notoriously difficult to fill–far more difficult than positions in other industries where roles and skillsets may be much more static. And because technology is rapidly evolving, the roles for tech workers are also always in flux. Last year you may have needed an Agile developer, but today you may need a mobile developer with secure coding ability and in six months you might need an IoT developer with strong operations or logistics domain experience—with each position requiring different combinations of tech, functional area, solution and “soft” skillsets.

According to David Foote, IT Industry Analyst and co-founder of IT workforce research and advisory firm Foote Partners, the mash-up of HR systems and ad hoc people management practices most companies have been using for years to manage IT workers have become frighteningly ineffective. He says that to cope in today’s environment, companies need to architect their people infrastructure similar to how they have been architecting their technical infrastructure.

“People Architecture” is the term Foote has coined to describe the application of traditional architectural principles and practices that may already be in place elsewhere within an organization and applying them to managing the IT workforce. This includes applying such things as strategy and capability roadmaps, phase gate blueprints, benchmarks, performance metrics, governance practices and stakeholder management to human capital management (HCM).

HCM components for People Architecture typically include job definition and design, compensation, incentives and recognition, skills demand and acquisition, job and career paths, professional development and work/life balance.

Part of the dilemma for employers right now, Foote says, is that there is very little job title standardization in the marketplace and too many job titles floating around IT departments today. “There are too many dimensions and variability in jobs now that companies have gotten lost from an HR perspective. They’re unable to cope with the complexity of defining, determining pay and laying out career paths for all these jobs, for example. For many, serious retention and hiring problems are showing up for the first time. Work-around solutions used for years to cope with systemic weaknesses in their people management systems have stopped working,” says Foote. “Recruiters start picking off their best people and candidates are suddenly rejecting offers and a panic sets in. Tensions are palpable in their IT workforce. These IT realities are pervasive.”

Twenty-five years ago, Foote says, defining roles in IT departments was easier. But then the Internet exploded and technology became far more customer-facing, shifting basic IT responsibilities from highly technical people deep within companies to roles requiring more visibility and transparency within and outside the enterprise. Large chunks of IT budgets moved into the business lines while traditional IT became more of a business itself.

According to Foote, IT roles became siloed not just by technology but by functional areas such as finance and accounting, operations and logistics, sales, marketing and HR systems, and by industry knowledge and customer familiarity. Then the IT professional services industry rapidly expanded to compete with their customers for talent in the marketplace. Even the architect role changed: an Enterprise Architect today can specialize in applications, security or data architecture among others, or focus on a specific industry such as energy, retail or healthcare.

Foote likens the fragmentation of IT jobs and skillsets that’s happening now to the emergence of IT architecture 25 years ago. Just as technical architecture practices emerged to help make sense of the disparate systems rapidly growing within companies and how best to determine the right future tech investments, a people architecture approach today helps organizations better manage an IT workforce spread through the enterprise with roles ranging from architects and analysts to a wide variety of engineers, developers and project and program managers.

“Technical architecture practices were successful because—when you did them well—companies achieved an understanding of what they have systems-wise and then connected it to where they were going and how they were going to get there, all within a process inclusive of all the various stakeholders who shared the risk in the outcome. It helped clearly define enterprise technology capabilities and gave companies more options and flexibility going forward,” according to Foote.

“Right now employers desperately need to incorporate in human capital management systems and practice the same straightforward, inclusive architecture approaches companies are already using in other areas of their businesses. This can go a long way toward not just lessening staffing shortages but also executing more predictably and being more agile in face of constant uncertainties and the accelerating pace of change. Ultimately this translates into a more effective workforce whether they are full-timers or the contingent workforce of part-timers, consultants and contractors.

“It always comes down to your people. That’s not a platitude but a fact,” insists Foote. “If you’re not competitive in today’s labor marketplace and you’re not an employer where people want to work, you’re dead.”

One industry that he says has gotten it right is the consulting industry. “After all, their assets walk out the door every night. Consulting groups within firms such as IBM and Accenture have been good at architecting their staffing because it’s their job to get out in front of what’s coming technologically. Because these firms must anticipate customer needs before they get the call to implement services, they have to be ahead of the curve in already identifying and hiring the bench strength needed to fulfill demand. They do many things right to hire, develop and keep the staff they need in place.”

Unfortunately, many companies take too much of a just-in-time approach to their workforce so they are always managing staffing from a position of scarcity rather than looking ahead, Foote says. But, this is changing, in part due to companies being tired of never having the people they need and being able to execute predictably.

The key is to put a structure in place that addresses a strategy around what a company needs and when. This applies not just to the hiring process, but also to compensation, training and advancement.

“Architecting anything allows you to be able to, in a more organized way, be more agile in dealing with anything that comes at you. That’s the beauty of architecture. You plan for the fact that you’re going to continue to scale and continue to change systems, the world’s going to continue to change, but you have an orderly way to manage the governance, planning and execution of that, the strategy of that and the implementation of decisions knowing that the architecture provides a more agile and flexible modular approach,” he said.

Foote says organizations such as The Open Group can lend themselves to facilitating People Architecture in a couple different ways. First, through extending the principles of architecture to human capital management, and second through vendor-independent, expertise and experience driven certifications, such as TOGAF® or OpenCA and OpenCITS, that help companies define core competencies for people and that provide opportunities for training and career advancement.

“I’m pretty bullish on many vendor-independent certifications in general, particularly where a defined book of knowledge exists that’s achieved wide acceptance in the industry. And that’s what you’ve got with The Open Group. Nobody’s challenging the architectural framework supremacy of TOGAF that that I’m aware of. In fact, large vendors with their own certifications participated actively in developing the framework and applying it very successfully to their business models,” he said.

Although the process of implementing People Architecture can be difficult and may take several years to master (much like Enterprise Architecture), Foote says it is making a huge difference for companies that implement it.

To learn more about People Architecture and models for implementing it, plan to attend Foote’s session at The Open Group Boston 2014 on Tuesday July 22. Foote’s session will address how architectural principles are being applied to human capital so that organizations can better manage their workforces from hiring and training through compensation, incentives and advancement. He will also discuss how career paths for EAs can be architected. Following the conference, the session proceedings will be available to Open Group members and conference attendees at www.opengroup.org.

Join the conversation – #ogchat #ogBOS

footeDavid Foote is an IT industry research pioneer, innovator, and one of the most quoted industry analysts on global IT workforce trends and multiple facets of the human side of technology value creation. His two decades of groundbreaking deep research and analysis of IT-business cross-skilling and technology/business management integration and leading the industry in innovative IT skills demand and compensation benchmarking has earned him a place on a short list of thought leaders in IT human capital management.

A former Gartner and META Group analyst, David leads the research and analytical practice groups at Foote Partners that reach 2,300 customers on six continents.

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Filed under architecture, Conference, Open CA, Open CITS, Professional Development, Standards, TOGAF®, Uncategorized

New Health Data Deluges Require Secure Information Flow Enablement Via Standards, Says The Open Group’s New Healthcare Director

By The Open Group

Below is the transcript of The Open Group podcast on how new devices and practices have the potential to expand the information available to Healthcare providers and facilities.

Listen to the podcast here.

Dana Gardner: Hello, and welcome to a special BriefingsDirect Thought Leadership Interview coming to you in conjunction with The Open Group’s upcoming event, Enabling Boundaryless Information Flow™ July 21-22, 2014 in Boston.

GardnerI’m Dana Gardner, Principal Analyst at Interarbor Solutions and I’ll be your host and moderator for the series of discussions from the conference on Boundaryless Information Flow, Open Platform 3.0™, Healthcare, and Security issues.

One area of special interest is the Healthcare arena, and Boston is a hotbed of innovation and adaption for how technology, Enterprise Architecture, and standards can improve the communication and collaboration among Healthcare ecosystem players.

And so, we’re joined by a new Forum Director at The Open Group to learn how an expected continued deluge of data and information about patients, providers, outcomes, and efficiencies is pushing the Healthcare industry to rapid change.

WJason Lee headshotith that, please join me now in welcoming our guest. We’re here with Jason Lee, Healthcare and Security Forums Director at The Open Group. Welcome, Jason.

Jason Lee: Thank you so much, Dana. Good to be here.

Gardner: Great to have you. I’m looking forward to the Boston conference and want to remind our listeners and readers that it’s not too late to sign up. You can learn more at http://www.opengroup.org.

Jason, let’s start by talking about the relationship between Boundaryless Information Flow, which is a major theme of the conference, and healthcare. Healthcare perhaps is the killer application for Boundaryless Information Flow.

Lee: Interesting, I haven’t heard it referred to that way, but healthcare is 17 percent of the US economy. It’s upwards of $3 trillion. The costs of healthcare are a problem, not just in the United States, but all over the world, and there are a great number of inefficiencies in the way we practice healthcare.

We don’t necessarily intend to be inefficient, but there are so many places and people involved in healthcare, it’s very difficult to get them to speak the same language. It’s almost as if you’re in a large house with lots of different rooms, and every room you walk into they speak a different language. To get information to flow from one room to the other requires some active efforts and that’s what we’re undertaking here at The Open Group.

Gardner: What is it about the current collaboration approaches that don’t work? Obviously, healthcare has been around for a long time and there have been different players involved. What’s the hurdle? What prevents a nice, seamless, easy flow and collaboration in information that gets better outcomes? What’s the holdup?

Lee: There are many ways to answer that question, because there are many barriers. Perhaps the simplest is the transformation of healthcare from a paper-based industry to a digital industry. Everyone has walked into an office, looked behind the people at the front desk, and seen file upon file and row upon row of folders, information that’s kept in a written format.

When there’s been movement toward digitizing that information, not everyone has used the same system. It’s almost like trains running on a different gauge track. Obviously if the track going east to west is a different gauge than going north to south, then trains aren’t going to be able to travel on those same tracks. In the same way, healthcare information does not flow easily from one office to another or from one provider to another.

Gardner: So not only do we have disparate strategies for collecting and communicating health data, but we’re also seeing much larger amounts of data coming from a variety of new and different places. Some of them now even involve sensors inside of patients themselves or devices that people will wear. So is the data deluge, the volume, also an issue here?

Lee: Certainly. I heard recently that an integrated health plan, which has multiple hospitals involved, contains more elements of data than the Library of Congress. As information is collected at multiple points in time, over a relatively short period of time, you really do have a data deluge. Figuring out how to find your way through all the data and look at the most relevant for the patient is a great challenge.

Gardner: I suppose the bad news is that there is this deluge of data, but it’s also good news, because more data means more opportunity for analysis, a better ability to predict and determine best practices, and also provide overall lower costs with better patient care.

So it seems like the stakes are rather high here to get this right, to not just crumble under a volume or an avalanche of data, but to master it, because it’s perhaps the future. The solution is somewhere in there too.

Lee: No question about it. At The Open Group, our focus is on solutions. We, like others, put a great deal of effort into describing the problems, but figuring out how to bring IT technologies to bear on business problems, how to encourage different parts of organizations to speak to one another and across organizations to speak the same language, and to operate using common standards and language. That’s really what we’re all about.

And it is, in a large sense, part of the process of helping to bring healthcare into the 21st Century. A number of industries are a couple of decades ahead of healthcare in the way they use large datasets — big data, some people refer to it as. I’m talking about companies like big department stores and large online retailers. They really have stepped up to the plate and are using that deluge of data in ways that are very beneficial to them, and healthcare can do the same. We’re just not quite at the same level of evolution.

Gardner: And to your point, the stakes are so much higher. Retail is, of course, a big deal in the economy, but as you pointed out, healthcare is such a much larger segment and portion. So just making modest improvements in communication, collaboration, or data analysis can reap huge rewards.

Lee: Absolutely true. There is the cost side of things, but there is also the quality side. So there are many ways in which healthcare can improve through standardization and coordinated development, using modern technology that cannot just reduce cost, but improve quality at the same time.

Gardner: I’d like to get into a few of the hotter trends, but before we do, it seems that The Open Group has recognized the importance here by devoting the entire second day of their conference in Boston, that will be on July 22, to Healthcare.

Maybe you could give us a brief overview of what participants, and even those who come in online and view recorded sessions of the conference at http://new.livestream.com/opengroup should expect? What’s going to go on July 22nd?

Lee: We have a packed day. We’re very excited to have Dr. Joe Kvedar, a physician at Partners HealthCare and Founding Director of the Center for Connected Health, as our first plenary speaker. The title of his presentation is “Making Health Additive.” Dr. Kvedar is a widely respected expert on mobile health, which is currently the Healthcare Forum’s top work priority. As mobile medical devices become ever more available and diversified, they will enable consumers to know more about their own health and wellness. A great deal of data of potentially useful health data will be generated. How this information can be used–not just by consumers but also by the healthcare establishment that takes care of them as patients, will become a question of increasing importance. It will become an area where standards development and The Open Group can be very helpful.

Our second plenary speaker, Proteus Duxbury, Chief Technology Officer at Connect for Health Colorado,will discuss a major feature of the Affordable Care Act—the health insurance exchanges–which are designed to bring health insurance to tens of millions of people who previously did not have access to it. Mr. Duxbury is going to talk about how Enterprise Architecture–which is really about getting to solutions by helping the IT folks talk to the business folks and vice versa–has helped the State of Colorado develop their Health Insurance Exchange.

After the plenaries, we will break up into 3 tracks, one of which is Healthcare-focused. In this track there will be three presentations, all of which discuss how Enterprise Architecture and the approach to Boundaryless Information Flow can help healthcare and healthcare decision-makers become more effective and efficient.

One presentation will focus on the transformation of care delivery at the Visiting Nurse Service of New York. Another will address stewarding healthcare transformation using Enterprise Architecture, focusing on one of our Platinum members, Oracle, and a company called Intelligent Medical Objects, and how they’re working together in a productive way, bringing IT and healthcare decision-making together.

Then, the final presentation in this track will focus on the development of an Enterprise Architecture-based solution at an insurance company. The payers, or the insurers–the big companies that are responsible for paying bills and collecting premiums–have a very important role in the healthcare system that extends beyond administration of benefits. Yet, payers are not always recognized for their key responsibilities and capabilities in the area of clinical improvements and cost improvements.

With the increase in payer data brought on in large part by the adoption of a new coding system–the ICD-10–which will come online this year, there will be a huge amount of additional data, including clinical data, that become available. At The Open Group, we consider payers—health insurance companies (some of which are integrated with providers)–as very important stakeholders in the big picture..

In the afternoon, we’re going to switch gears a bit and have a speaker talk about the challenges, the barriers, the “pain points” in introducing new technology into the healthcare systems. The focus will return to remote or mobile medical devices and the predictable but challenging barriers to getting newly generated health information to flow to doctors’ offices and into patients records, electronic health records, and hospitals data keeping and data sharing systems.

We’ll have a panel of experts that responds to these pain points, these challenges, and then we’ll draw heavily from the audience, who we believe will be very, very helpful, because they bring a great deal of expertise in guiding us in our work. So we’re very much looking forward to the afternoon as well.

Gardner: It’s really interesting. A couple of these different plenaries and discussions in the afternoon come back to this user-generated data. Jason, we really seem to be on the cusp of a whole new level of information that people will be able to develop from themselves through their lifestyle, new devices that are connected.

We hear from folks like Apple, Samsung, Google, and Microsoft. They’re all pulling together information and making it easier for people to not only monitor their exercise, but their diet, and maybe even start to use sensors to keep track of blood sugar levels, for example.

In fact, a new Flurry Analytics survey showed 62 percent increase in the use of health and fitness application over the last six months on the popular mobile devices. This compares to a 33 percent increase in other applications in general. So there’s an 87 percent faster uptick in the use of health and fitness applications.

Tell me a little bit how you see this factoring in. Is this a mixed blessing? Will so much data generated from people in addition to the electronic medical records, for example, be a bad thing? Is this going to be a garbage in, garbage out, or is this something that could potentially be a game-changer in terms of how people react to their own data and then bring more data into the interactions they have with care providers?

Lee: It’s always a challenge to predict what the market is going to do, but I think that’s a remarkable statistic that you cited. My prediction is that the increased volume of person- generated data from mobile health devices is going to be a game-changer. This view also reflects how the Healthcare Forum members (which includes members from Capgemini, Philips, IBM, Oracle and HP) view the future.

The commercial demand for mobile medical devices, things that can be worn, embedded, or swallowed, as in pills, as you mentioned, is growing ever more. The software and the applications that will be developed to be used with the devices is going to grow by leaps and bounds. As you say, there are big players getting involved. Already some of the pedometer type devices that measure the number of steps taken in a day have captured the interest of many, many people. Even David Sedaris, serious guy that he is, was writing about it recently in ‘The New Yorker’.

What we will find is that many of the health indicators that we used to have to go to the doctor or nurse or lab to get information on will become available to us through these remote devices.

There will be a question, of course, as to reliability and validity of the information, to your point about garbage in, garbage out, but I think standards development will help here This, again, is where The Open Group comes in. We might also see the FDA exercising its role in ensuring safety here, as well as other organizations, in determining which devices are reliable.

The Open Group is working in the area of mobile data and information systems that are developed around them, and their ability to (a) talk to one another and (b) talk to the data devices/infrastructure used in doctors’ offices and in hospitals. This is called interoperability and it’s certainly lacking in the country.

There are already problems around interoperability and connectivity of information in the healthcare establishment as it is now. When patients and consumers start collecting their own data, and the patient is put at the center of the nexus of healthcare, then the question becomes how does that information that patients collect get back to the doctor/clinician in ways in which the data can be trusted and where the data are helpful?

After all, if a patient is wearing a medical device, there is the opportunity to collect data, about blood sugar level let’s say, throughout the day. And this is really taking healthcare outside of the four walls of the clinic and bringing information to bear that can be very, very useful to clinicians and beneficial to patients.

In short, the rapid market dynamic in mobile medical devices and in the software and hardware that facilitates interoperability begs for standards-based solutions that reduce costs and improve quality, and all of which puts the patient at the center. This is The Open Group’s Healthcare Forum’s sweet spot.

Gardner: It seems to me a real potential game-changer as well, and that something like Boundaryless Information Flow and standards will play an essential role. Because one of the big question marks with many of the ailments in a modern society has to do with lifestyle and behavior.

So often, the providers of the care only really have the patient’s responses to questions, but imagine having a trove of data at their disposal, a 360-degree view of the patient to then further the cause of understanding what’s really going on, on a day-to-day basis.

But then, it’s also having a two-way street, being able to deliver perhaps in an automated fashion reinforcements and incentives, information back to the patient in real-time about behavior and lifestyles. So it strikes me as something quite promising, and I look forward to hearing more about it at the Boston conference.

Any other thoughts on this issue about patient flow of data, not just among and between providers and payers, for example, or providers in an ecosystem of care, but with the patient as the center of it all, as you said?

Lee: As more mobile medical devices come to the market, we’ll find that consumers own multiple types of devices at least some of which collect multiple types of data. So even for the patient, being at the center of their own healthcare information collection, there can be barriers to having one device talk to the other. If a patient wants to keep their own personal health record, there may be difficulties in bringing all that information into one place.

So the interoperability issue, the need for standards, guidelines, and voluntary consensus among stakeholders about how information is represented becomes an issue, not just between patients and their providers, but for individual consumers as well.

Gardner: And also the cloud providers. There will be a variety of large organizations with cloud-modeled services, and they are going to need to be, in some fashion, brought together, so that a complete 360-degree view of the patient is available when needed. It’s going to be an interesting time.

Of course, we’ve also looked at many other industries and tried to have a cloud synergy, a cloud-of-clouds approach to data and also the transaction. So it’s interesting how what’s going on in multiple industries is common, but it strikes me that, again, the scale and the impact of the healthcare industry makes it a leader now, and perhaps a driver for some of these long overdue structured and standardized activities.

Lee: It could become a leader. There is no question about it. Moreover, there is a lot Healthcare can learn from other companies, from mistakes that other companies have made, from lessons they have learned, from best practices they have developed (both on the content and process side). And there are issues, around security in particular, where Healthcare will be at the leading edge in trying to figure out how much is enough, how much is too much, and what kinds of solutions work.

There’s a great future ahead here. It’s not going to be without bumps in the road, but organizations like The Open Group are designed and experienced to help multiple stakeholders come together and have the conversations that they need to have in order to push forward and solve some of these problems.

Gardner: Well, great. I’m sure there will be a lot more about how to actually implement some of those activities at the conference. Again, that’s going to be in Boston, beginning on July 21, 2014.

We’ll have to leave it there. We’re about out of time. We’ve been talking with a new Director at The Open Group to learn how an expected continued deluge of data and information about patients and providers, outcomes and efficiencies are all working together to push the Healthcare industry to rapid change. And, as we’ve heard, that might very well spill over into other industries as well.

So we’ve seen how innovation and adaptation around technology, Enterprise Architecture and standards can improve the communication and collaboration among Healthcare ecosystem players.

It’s not too late to register for The Open Group Boston 2014 (http://www.opengroup.org/boston2014) and join the conversation via Twitter #ogchat #ogBOS, where you will be able to learn more about Boundaryless Information Flow, Open Platform 3.0, Healthcare and other relevant topics.

So a big thank you to our guest. We’ve been joined by Jason Lee, Healthcare and Security Forums Director at The Open Group. Thanks so much, Jason.

Lee: Thank you very much.

 

 

 

 

 

 

 

 

 

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Filed under Boundaryless Information Flow™, Cloud, Conference, Data management, Enterprise Architecture, Enterprise Transformation, Healthcare, Information security, Interoperability, Open Platform 3.0, Standards, Uncategorized

The Open Group Boston 2014 to Explore How New IT Trends are Empowering Improvements in Business

By The Open Group

The Open Group Boston 2014 will be held on July 21-22 and will cover the major issues and trends surrounding Boundaryless Information Flow™. Thought-leaders at the event will share their outlook on IT trends, capabilities, best practices and global interoperability, and how this will lead to improvements in responsiveness and efficiency. The event will feature presentations from representatives of prominent organizations on topics including Healthcare, Service-Oriented Architecture, Security, Risk Management and Enterprise Architecture. The Open Group Boston will also explore how cross-organizational collaboration and trends such as big data and cloud computing are helping to make enterprises more effective.

The event will consist of two days of plenaries and interactive sessions that will provide in-depth insight on how new IT trends are leading to improvements in business. Attendees will learn how industry organizations are seeking large-scale transformation and some of the paths they are taking to realize that.

The first day of the event will bring together subject matter experts in the Open Platform 3.0™, Boundaryless Information Flow™ and Enterprise Architecture spaces. The day will feature thought-leaders from organizations including Boston University, Oracle, IBM and Raytheon. One of the keynotes is from Marshall Van Alstyne, Professor at Boston University School of Management & Researcher at MIT Center for Digital Business, which reveals the secret of internet-driven marketplaces. Other content:

• The Open Group Open Platform 3.0™ focuses on new and emerging technology trends converging with each other and leading to new business models and system designs. These trends include mobility, social media, big data analytics, cloud computing and the Internet of Things.
• Cloud security and the key differences in securing cloud computing environments vs. traditional ones as well as the methods for building secure cloud computing architectures
• Big Data as a service framework as well as preparing to deliver on Big Data promises through people, process and technology
• Integrated Data Analytics and using them to improve decision outcomes

The second day of the event will have an emphasis on Healthcare, with keynotes from Joseph Kvedar, MD, Partners HealthCare, Center for Connected Health, and Connect for Health Colorado CTO, Proteus Duxbury. The day will also showcase speakers from Hewlett Packard and Blue Cross Blue Shield, multiple tracks on a wide variety of topics such as Risk and Professional Development, and Archimate® tutorials. Key learnings include:

• Improving healthcare’s information flow is a key enabler to improving healthcare outcomes and implementing efficiencies within today’s delivery models
• Identifying the current state of IT standards and future opportunities which cover the healthcare ecosystem
• How Archimate® can be used by Enterprise Architects for driving business innovation with tried and true techniques and best practices
• Security and Risk Management evolving as software applications become more accessible through APIs – which can lead to vulnerabilities and the potential need to increase security while still understanding the business value of APIs

Member meetings will also be held on Wednesday and Thursday, June 23-24.

Don’t wait, register now to participate in these conversations and networking opportunities during The Open Group Boston 2014: http://www.opengroup.org/boston2014/registration

Join us on Twitter – #ogchat #ogBOS

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Filed under ArchiMate®, Boundaryless Information Flow™, Business Architecture, Cloud/SOA, Conference, Enterprise Architecture, Enterprise Transformation, Healthcare, Information security, Open Platform 3.0, Professional Development, RISK Management, Service Oriented Architecture, Standards, Uncategorized

The Onion & The Open Group Open Platform 3.0™

By Stuart Boardman, Senior Business Consultant, KPN Consulting, and Co-Chair of The Open Group Open Platform 3.0™

Onion1

The onion is widely used as an analogy for complex systems – from IT systems to mystical world views.Onion2

 

 

 

It’s a good analogy. From the outside it’s a solid whole but each layer you peel off reveals a new onion (new information) underneath.

And a slice through the onion looks quite different from the whole…Onion3

What (and how much) you see depends on where and how you slice it.Onion4

 

 

 

 

The Open Group Open Platform 3.0™ is like that. Use-cases for Open Platform 3.0 reveal multiple participants and technologies (Cloud Computing, Big Data Analytics, Social networks, Mobility and The Internet of Things) working together to achieve goals that vary by participant. Each participant’s goals represent a different slice through the onion.

The Ecosystem View
We commonly use the idea of peeling off layers to understand large ecosystems, which could be Open Platform 3.0 systems like the energy smart grid but could equally be the workings of a large cooperative or the transport infrastructure of a city. We want to know what is needed to keep the ecosystem healthy and what the effects could be of the actions of individuals on the whole and therefore on each other. So we start from the whole thing and work our way in.

Onion5

The Service at the Centre of the Onion

If you’re the provider or consumer (or both) of an Open Platform 3.0 service, you’re primarily concerned with your slice of the onion. You want to be able to obtain and/or deliver the expected value from your service(s). You need to know as much as possible about the things that can positively or negatively affect that. So your concern is not the onion (ecosystem) as a whole but your part of it.

Right in the middle is your part of the service. The first level out from that consists of other participants with whom you have a direct relationship (contractual or otherwise). These are the organizations that deliver the services you consume directly to enable your own service.

One level out from that (level 2) are participants with whom you have no direct relationship but on whose services you are still dependent. It’s common in Platform 3.0 that your partners too will consume other services in order to deliver their services (see the use cases we have documented). You need to know as much as possible about this level , because whatever happens here can have a positive or negative effect on you.

One level further from the centre we find indirect participants who don’t necessarily delivery any part of the service but whose actions may well affect the rest. They could just be indirect materials suppliers. They could also be part of a completely different value network in which your level 1 or 2 “partners” participate. You can’t expect to understand this level in detail but you know that how that value network performs can affect your partners’ strategy or even their very existence. The knock-on impact on your own strategy can be significant.

We can conceive of more levels but pretty soon a law of diminishing returns sets in. At each level further from your own organization you will see less detail and more variety. That in turn means that there will be fewer things you can actually know (with any certainty) and not much more that you can even guess at. That doesn’t mean that the ecosystem ends at this point. Ecosystems are potentially infinite. You just need to decide how deep you can usefully go.

Limits of the Onion
At a certain point one hits the limits of an analogy. If everybody sees their own organization as the centre of the onion, what we actually have is a bunch of different, overlapping onions.

Onion6

And you can’t actually make onions overlap, so let’s not take the analogy too literally. Just keep it in mind as we move on. Remember that our objective is to ensure the value of the service we’re delivering or consuming. What we need to know therefore is what can change that’s outside of our own control and what kind of change we might expect. At each visible level of the theoretical onion we will find these sources of variety. How certain of their behaviour we can be will vary – with a tendency to the less certain as we move further from the centre of the onion. We’ll need to decide how, if at all, we want to respond to each kind of variety.

But that will have to wait for my next blog. In the meantime, here are some ways people look at the onion.

Onion7   Onion8

 

 

 

 

SONY DSCStuart Boardman is a Senior Business Consultant with KPN Consulting where he leads the Enterprise Architecture practice and consults to clients on Cloud Computing, Enterprise Mobility and The Internet of Everything. He is Co-Chair of The Open Group Open Platform 3.0™ Forum and was Co-Chair of the Cloud Computing Work Group’s Security for the Cloud and SOA project and a founding member of both The Open Group Cloud Computing Work Group and The Open Group SOA Work Group. Stuart is the author of publications by KPN, the Information Security Platform (PvIB) in The Netherlands and of his previous employer, CGI as well as several Open Group white papers, guides and standards. He is a frequent speaker at conferences on the topics of Open Platform 3.0 and Identity.

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