Lesson 65 - Distributed Strategy of Enterprise Architecture

Summary

In this lesson, Mark Richards discusses the distributed strategy in enterprise architecture. This approach delegates decision-making and standards to individual business units, while maintaining minimal shared enterprise standards. Key examples include security and hardware standards. Although this strategy allows for flexibility and tailored solutions per unit, it can lead to high costs and synchronization challenges. Richards also outlines the benefits and drawbacks of this model, emphasizing the need for balance in enterprise standards. Further resources and related lessons are available on his website, developerToArchitect.com.

Takeaways

• 🏢 The video discusses the 'Distributed Strategy' as part of enterprise architecture, where decisions and standards are delegated to individual business units with minimal shared enterprise standards.
• 📜 Enterprise architects in the central organization define minimally shared standards that all business units must adhere to, despite their autonomy.
• 🔒 Security, hardware, and network concerns are highlighted as examples of enterprise standards that might be centrally defined and minimally shared across the business units.
• 🛠 Each business unit has the freedom to define its own standards and technologies, leading to a diverse range of architectures within the same company.
• 🔄 The distributed strategy allows for flexibility and control at the business unit level, enabling faster response to user requests and better overall satisfaction.
• 🔗 However, this approach can lack synchronization between business units, which might be suitable for fully autonomous units with no need for synchronization.
• 💰 The strategy can be costly as each unit operates independently, making it difficult to standardize on licensing or achieve economies of scale.
• 📊 The difficulty in governing minimally shared enterprise standards can lead to an overreach, potentially turning the strategy into a more prescriptive approach.
• 🔑 The video suggests that the distributed strategy is best for businesses with diversified units that do not require synchronization, like a trucking company and a pie shop within the same organization.
• 📈 The script provides a comparison with other enterprise architecture strategies, suggesting viewers refer to previous lessons for a comprehensive understanding.
• 📚 Mark Richards, the presenter, offers further learning opportunities through his website, including private training classes and analysis of software architecture.

Q & A

What is the main focus of lesson 65 in the Software Architecture Monday series?

The main focus of lesson 65 is on the distributed strategy of enterprise architecture, which involves delegating decisions and standards to individual business units with minimally shared enterprise standards.

What is the difference between centralized and distributed strategies in enterprise architecture?

Centralized strategies involve a central governing body that defines and enforces standards across the entire enterprise, while distributed strategies delegate the decision-making and standard-setting to individual business units, with only a few minimally shared enterprise standards.

What are some examples of minimally shared enterprise standards in a distributed strategy?

Examples of minimally shared enterprise standards include security standards, hardware and network concerns, and possibly databases for integration and information sharing.

How does the distributed strategy benefit business units in terms of flexibility?

The distributed strategy allows each business unit to define and implement their own standards, technologies, and methodologies that best fit their specific needs, providing greater flexibility and control.

What is a potential disadvantage of the distributed strategy regarding synchronization?

A potential disadvantage is the lack of synchronization between business units, as each unit operates independently with its own standards, which can complicate coordination and integration across the enterprise.

How can the distributed strategy lead to higher costs?

Higher costs can result from each business unit making independent decisions about platforms, technologies, and licensing, which prevents the enterprise from benefiting from economies of scale and bulk licensing discounts.

Why might enterprise standards in a distributed strategy go overboard?

Enterprise standards might go overboard as central organizations try to manage costs and control by adding more and more shared standards, which can gradually turn the strategy back into a more prescriptive or centralized approach.

What are the advantages of the distributed strategy in terms of tool selection and user satisfaction?

The distributed strategy allows each business unit to select the tools that work best for their specific context, leading to better business unit control and higher user satisfaction due to faster response times and tailored solutions.

In what type of organizational structure is the distributed strategy best suited?

The distributed strategy is best suited for organizations where business units are fully autonomous and do not require tight synchronization, such as a diversified company with units operating in different industries.

How can the lack of synchronization in a distributed strategy affect economies of scale?

The lack of synchronization can prevent business units from agreeing on common platforms and technologies, making it difficult to achieve economies of scale in purchasing and licensing, leading to higher overall costs.

Outlines

00:00

🏢 Distributed Strategy in Enterprise Architecture

In this segment, Mark Richards introduces the concept of a distributed strategy in enterprise architecture. He explains that this strategy involves delegating decisions and standards to individual business units while maintaining minimal shared enterprise standards. The central organization defines these minimal standards, which all business units must adhere to, but they are free to define their own standards within their autonomy. Examples of these minimal standards include security, hardware, and network concerns. Richards encourages viewers to pause and consider what minimal standards might be necessary for their own enterprises. The segment also discusses the advantages of this approach, such as flexibility and the ability to use the right tools for each business unit's needs, as well as the disadvantages, which include a lack of synchronization between business units and potentially high costs due to the lack of standardized licensing and economies of scale.

05:00

🤔 Pros and Cons of the Distributed Strategy

This paragraph delves deeper into the distributed strategy, highlighting its advantages and disadvantages. Richards notes that the strategy allows for better user satisfaction and faster response to user requests due to the autonomy of each business unit. It also supports specific technologies and methodologies tailored to the context of each business unit. However, the lack of synchronization between business units can be a significant drawback, especially in enterprises that require coordination. The example given illustrates how a company might have diverse business units like trucking, a pie shop, and trading, each with different technological needs. The high cost associated with this strategy is also discussed, as each business unit independently decides on their standards, leading to difficulties in controlling costs and achieving licensing discounts. Furthermore, the minimal enterprise standards can be challenging to govern and may lead to an overemphasis on standardization, potentially reverting to a prescriptive approach. Richards suggests reviewing lessons 62 to 64 for a comprehensive understanding of enterprise architecture strategies and their comparison with the distributed strategy.

Keywords

💡Distributed Strategy

A distributed strategy in enterprise architecture refers to a decentralized approach where decisions and standards are delegated to individual business units with minimal shared enterprise standards. It is the main theme of the video, illustrating how autonomy is granted to business units while still maintaining some central governance, such as in security and hardware standards.

💡Enterprise Architecture

Enterprise Architecture is the framework used by organizations to align their business goals with the IT infrastructure and standards. In the video, it's the overarching concept that the distributed strategy is applied to, emphasizing how different business units can operate with their own standards while adhering to a set of core enterprise-wide standards.

💡Centralized vs. Decentralized

The terms centralized and decentralized describe the degree of control and decision-making authority within an organization. Centralized strategies have a single point of control, whereas decentralized strategies, like the distributed strategy discussed, allow for more autonomy at the business unit level.

💡Business Units

Business Units are individual segments of an organization that may operate with a degree of autonomy. In the context of the video, they are the entities to which decisions and standards are delegated under the distributed strategy, allowing them to define their own standards as long as they adhere to minimal enterprise standards.

💡Autonomy

Autonomy in this video refers to the freedom and independence granted to business units under the distributed strategy. It allows each unit to define their own standards and methodologies, which can lead to better alignment with their specific needs and contexts, as seen with the example of different departments choosing different technologies.

💡Standards

Standards in enterprise architecture are the guidelines and specifications that must be followed to ensure consistency and interoperability. The video discusses how, under the distributed strategy, business units must adhere to minimal enterprise standards while having the freedom to define additional standards as needed.

💡Governance

Governance in the context of the video refers to the process of defining, implementing, and enforcing standards within an organization. It is a key aspect of the distributed strategy, ensuring that while business units have autonomy, they still comply with the minimal enterprise standards.

💡Synchronization

Synchronization in the video script refers to the alignment and coordination between different business units. The lack of synchronization is a potential downside of the distributed strategy, as each unit may choose different platforms and technologies, which can lead to difficulties in integration and cost control.

💡Cost Control

Cost Control is the management of expenses within an organization. The video points out that the distributed strategy can lead to high costs due to the lack of standardization across business units, making it difficult to achieve economies of scale or negotiate licensing discounts.

💡Economies of Scale

Economies of Scale are the cost advantages that an organization obtains due to its scale of operation. The video script mentions that the distributed strategy can hinder the realization of economies of scale because each business unit operates independently, potentially leading to higher overall costs for the enterprise.

💡Platform

In the context of the video, a platform refers to the underlying technology or environment on which applications and systems are built. The script discusses the potential for each business unit to standardize on different platforms under the distributed strategy, which can lead to challenges in synchronization and cost control.

Highlights

Introduction to Lesson 65 on the distributed strategy of enterprise architecture.

Explanation of the distributed strategy where decisions and standards are delegated to individual business units with minimal shared enterprise standards.

Diagram illustrating the minimal spread of enterprise standards across business units in a distributed strategy.

The importance of defining minimally shared standards by central enterprise architects.

Business units' autonomy to define their own standards irrespective of the central organization.

Invitation for viewers to consider what minimally shared enterprise standards might look like.

Examples of minimally shared enterprise standards such as security, hardware, and network concerns.

Different technology stacks and methodologies adopted by various business units within the same company.

Analysis of the advantages of the distributed strategy, including the right tools for the job and business unit control.

Discussion on the disadvantages of the distributed strategy, such as lack of synchronization and high costs.

The challenge of governing minimally shared enterprise standards in a distributed strategy.

Risk of over-standardization in a distributed strategy leading to a prescriptive approach.

Comparison of the distributed strategy with other enterprise architecture strategies in previous lessons.

Information on where to find additional lessons on enterprise architecture strategies.

Details on private training classes and software architecture services offered by the instructor.

Upcoming events and public training opportunities where the instructor will be present.

Conclusion of Lesson 65 and a teaser for the next lessons on enterprise architecture strategies.

Transcripts

hello and welcome to software

architecture Monday my name is Mark

Richards I'm an independent consultant

and also the founder of developer to

architect dot-com in today's lesson

number 65 we'll take a look at the

distributed strategy of enterprise

architecture in lesson 62 we saw that

strategies describe the overall

enterprise architecture team structure

whether it's centralized or distributed

and how standards whether those be

technology architecture methodology or

process related are applied and governed

across the enterprise and we saw that

there were four basic kinds of

strategies in this lesson we're going to

be taking a look at the first

decentralized strategy which is called

the distributed strategy the distributed

strategy here is where decisions and

standards are delegated to the

individual business units with a

minimally shared enterprise standards

now notice here kind of in the diagram

that those enterprise standards how

minimal very minimal are extra then

spread across those business units

what's the an example of this because

what the enterprise architects in the

central organization do is define they

define minimally shared standards now

all business units regardless of their

autonomy must adhere to those Enterprise

Architecture standards however watch

this each business unit is free to

define whatever standards they like

irrespective of other business units or

even the central organization so suppose

you're wondering what would be good and

to price standards and what I would

encourage you to do is to hit pause on

the video right now and think for a

little bit about what those enterprise

standards that are minimally shared

would probably look like what would be

good standards and so go ahead and hit

pause and then I'm going to continue

basically the a good example of those

enterprise standards that are minimally

shared those things that the business

units really

want to worry about and the core things

if you came up with these by hitting

pause you might have first our security

security is a good centrally defined

kind of standard across the entire

enterprise also hardware and network

type of concerns on each business unit

I'm guessing does not care what load

balancers it's using or even which kind

of hardware they sit on and you know

databases might also be a good way of

adhering to an enterprise wide standard

just for integration or the sharing of

information but notice each business

unit here can define whatever they want

to each department in this case is all

windows.net with a splash of lean and

agile we have another one that's Java

spring angular and we've got another

department that's sticking with IBM with

AIX using an sdlc waterfall approach hmm

not sure about them but but you can see

each department has its own flexibility

and its own freedom as a matter of fact

if we look at the advantages and also

disadvantages of this approach now let's

analyze those but before we do what we

really have here with the distributed

strategy are layers of standards in

other words there are those core

standards those enterprise level

standards that are minimally shared that

every business unit needs to adhere to

and generally again like we saw the

examples of security maybe documentation

it could be a topology and the network

hardware these sort of things however

business units might have commonly

shared standards between them if two

business units have very similar

technologies now we can support common

standards across those business units

that relate to one another but then

primarily each business unit has its own

distinct standards now what would

typically happen on the decentralized

model is that each business unit would

have an enterprise architecture team

and that would then define implementing

and govern those particular standards so

let's look at the trade-offs of the

distributed strategy first of all the

good aspects it's definitely the right

tools for the job because now each

business unit although we have to adhere

to some common standards each business

unit has the choice of whatever works

for them there's no kind of central

governing body dictating what they need

to use so this gives us a lot of good

business unit control you know the thing

is that we have minimally global

standards available here and better

overall satisfaction and both by users

because we can respond faster those kind

of user requests but also with NIT

because now each business unit has

specific technology specific

architecture maybe methodologies and

also processes that work for their

particular context this everybody seems

like Nirvana doesn't it this seems

perfect however there are some negatives

with this approach the first with the

distributed strategy is a lack of

synchronization between the business

units you see those enterprise standards

are minimally defined so each business

unit can choose whatever platforms

technologies architecture standards

methodologies whatever they want to do

however this strategy is best suited for

those kind of business units that are

fully autonomous that the company does

not need a synchronization between those

business units for example maybe one

business unit happens to be trucking or

transportation another business unit

happens to be a pie shop another

business unit does trading all within

the same company due to a level of

diversification because our employees

really like pie and it got really

expensive and so the company decided

instead of buying pies we're going to

buy the pie company and so now this

company one of the business units

happens to manufacture or create or bake

pies and there's a totally different

type of technology and furthermore we

don't need the synchronization so the

point is here the lack

synchronization between business units

is one of the use cases for the

distributed strategy now in the next

lesson we're going to see a type of

decentralized strategy that does support

that level of synchronization between

the business units the other

disadvantage is that there's very high

cost associated with this particular

strategy because each business unit is

now deciding whatever they want to and

because of that very high cost is also

very very difficult to control those

costs across the company

we can't standardize on licensing and

get licensing discounts because each

business unit is doing their own thing

as a matter of fact that lack of

synchronization causes different

business units not to necessarily agree

to get those economies of scale on

particular types of licensing and stuff

and finally those enterprise standards

that are minimally shared are extremely

hard to govern and what also happens in

this kind of negative right here is that

those enterprise standards because of

that start to go overboard in other

words let's standardize on security and

hardware I like that because now the

costs are hmm somewhat easier able to

control that works I know let's

standardize on the platform as well

because now we can kind of control

things a little bit more and as a matter

of fact I know

let's standardize on the programming

languages let's standardize on the way

we document a diagram our architecture

let's standardize on the methodology

that we use and you can suddenly see

that this distributed strategy because

of those ei standards those enterprise

architecture standards that are

minimally shared or those minimal

standards that are shared it's easy to

go overboard on those and turn this back

into a prescriptive or classic approach

so for more information go to lesson 62

which kind of introduces all these

enterprise architecture strategies and

kind of the point of those strategies

also as a comparison lesson 63 and 64

with the classic alternatives kind of go

back and review that to compare it

against the distributed architecture

strategy also all of these lessons are

available in software architecture

Monday which is on my website developer

to architect comm I also offer private

training classes and software

architecture micro services and

analyzing software architecture and you

can find me at a lot of conferences

online training and also public training

by going to the upcoming events portion

of my website so this has been lesson 65

the distributed strategy of enterprise

architecture get my name is Mark

Richards stay tuned we got two more

lessons in enterprise architecture

strategies lesson 66 which will be next

we'll look at the last one of these

strategies uses the durable interface

and then in lesson 67 we're going to

wrap everything up and take a look at

some case studies applying these so that

we as a kind of as a group I would say

can interactively decide what is the

best strategy based on certain case

studies thank you very much for

listening