Enterprise Architecture and Modularization in

Enterprise Architecture and Modularization in Telco R&D as a Response to an Environment of Technological Uncertainty Heinrich M. Arnold, Michal Dunaj

[email protected], [email protected] Deutsche Telekom AG, Laboratories, Ernst-Reuter-Platz 7, 10587 Berlin Abstract - IP networks have reached a level of quality and performance that is adequate for as operator infrastructures; the innovation space of telco operators converges with the innovation space of web based IP services. Thus innovation in the telco domain is no longer solely driven by the operators and their suppliers but of the additional millions of developers of web based IP services. The choice of alternative technological paths or rather permutations of approaches and with it technological uncertainty – that is beyond the reach of classical standardization – is skyrocketing and poses an even greater challenge to telco R&D than the higher innovation “clock speed” that comes along with IP services as well. The variety in technological paths is paralleled with alternative or rather complementary paths in customer needs evolution. The Enterprise Architecture (EA) framework has been introduced and widely used in the domains of IT and business processes, linking both. While EA is mainly used as a framework for IT supported processes, it can – together with a concept of modularization – offer an important instrument in coping with the challenges to telco R&D described above. The applicability of the EA framework is extended to focus innovation efforts on specific modules or architectures. This paper introduces links between Enterprise Architecture concepts and early innovation stages. At Deutsche Telekom Laboratories, Enterprise Architecture is used for derivation of reusable and recombinable modules.

1. Operator Inherent and Recent Technological Challenges for Telco R&D

“Home made” system development has always been a delicate case for telecom operators as they receive many technological solutions turn-key from suppliers directly delivered to product managers and technical supervisors in the business units. These solutions don’t require the involvement of development resources from the inhouse R&D unit any more; for the R&D unit, this situation in many cases presents itself as a natural bypass. Therefore it is up to telco’s R&D units to make its own transfer of results compatible with the external inflow of technology. Lately, this classical challenge is accompanied by the radical technological change that is behind next generation networks and the convergence of telco and web innovation spaces. “Delayering” of the infrastructure and third party IP based services reduce the lifecycle times and bring about new players into the innovation landscape of telcos. 1.1 Telcos Place in the Technological Food Chain Applied research and development at telcos is by definition subject to their position as second to last in

the technological food chain1. Most technology has been understood and developed already when new infrastructure components are presented to the telcos by the so-called “vendors” for roll-out. Therefore the R&D of telcos as we know it today better puts its focus on missing components, i.e. gaps that vendors leave, as well as features and properties that differentiate from competition, as well as preparation of benign standardization. Furthermore, two aspects lately govern telcos’ options to innovate: First, web-based services benefit from the separation of application features from the network – a situation, NGN will promote even more. These services move at a “clock-speed” higher than the introduction cycles of new telco services. Web 2.0 enables myriads of emerging web services and players which bring along innovative concepts – often competing – and usually impossible to distinguish successful approaches from failures from the beginning. Second, technological choice increases not only in the application layer, but also with respect to user interface, type of terminal device, control and access technologies. Thus, telco innovation needs to have an approach ready for this situation and accommodate rapid but uncertain developments in the application domain as well as technological uncertainty from control and access layers throughout the user interface. In this paper, a modularization approach combined with the Enterprise Architecture approach is introduced as an underlying principle for applied R&D work at telcos which enables to add value in an environment of technological uncertainty. 1.2 Pace Setters of Innovation and Reaction to Partial Loss of Central Control With web 2.0 as a mainstream media enabler the telecom industry faces the influx of emerging web services and players. Increasingly, users participate actively and directly in content creation2 [2] [3]. The

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Technological change affects players depending on their position on the value chain differently [1]. The web 2.0 movement has reached the broad audience: “Zerreiß mich, kopier mich Revolution im Web: Der Schaukasten wird zum Baukasten. Flickr und Youtube waren nur der Anfang. Nachrichten, Musik, Bilder, Videos

paradigms of attention and ultimately power shift to consumers, and web based mediators are becoming a reality3 [4]. Ownership of infrastructure does not guarantee innovation rent any more; eBay, MySpace, Second Life establish valuable new marketplaces, Google, Skype embrace customer relationships. The current situation can be characterized as a period of experimentation [5]4. That, of course, makes it rather difficult to identify the “right” technological path for established telco operators. The effective “de-layering” and decoupling of interdependencies in telco NGN infrastructure constitutes, using terminology from innovation research, an “architectural change” and, as such, an important incentive for established players to react [6]. Two issues need to be taken care of by the established players: 1. Partial loss of central control with regards to new services 2. The identification of the functionalities on which network operators can add additional or unique value compared to purely web-based providers. An approach to solve these two issues will have to enable a modular approach in innovation and R&D: Focus on the modules that are best provided by an operator and make them interoperable. Interoperability needs to be ensured with both the legacy systems and the NGN components of the operator and service provider itself, as well as with existing or emerging interesting web based applications in the market, to be able to take advantage of their rapid development. In the following, modularization is combined with concepts of Enterprise Architecture for a resource efficient and flexible approach for telco R&D and innovation in an environment of technological uncertainty. The resulting framework is able to describe innovative concepts, the related modules and their relations and variations amongst them5. This framework is applied at Deutsche Telekom Laboratories.

2. Modularization and Enterprise Architecture for Telco R&D

Both modularization and Enterprise Architecture are popular approaches outside of R&D. Nevertheless, both contain elements that are ideal to counter the challenges of telco R&D when combined and further developed.

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alles taugt zum Remix. Werkzeuge gibt' s online. Willkommen im Zeitalter der ’MashUps!’“ [2] Technorati was tracking in October 2006 more than 57 million blogs, with the observation, that the “blogosphere” is doubling in size approximately every 230 days. See phases of a technology shock wave on p.9 of [5]. According to the Henderson – Clark model, the technological knowledge behind innovation can be divided in two dimensions: knowledge of the components and knowledge of the linkage between them, called architectural knowledge [7].

2.1 Modules as Building Blocks As a method, known from manufacturing industries such as the automotive industry, the module and platform approach has helped to reduce cost with increased number of units and effectively also increased flexibility through re-combinations of modules. For R&D, the modular approach is an important tool of technology transfer, knowledge management [8], as well as archiving and retrieving project results. For R&D, a module can be defined as a detailed selfcontained project result [9]. For the development oriented part of R&D, modules can exist in the form of functions (e.g. part of software with a designated functionality) or as a concept or architecture; whereas the more research oriented part of R&D is expected to come up with non-incremental solution approaches for a problem, which then can be further developed into functions. A key requirement for the functional blocks and concepts is that their interfaces match or can be easily adapted to the current or future operational environment in the business unit. The modules coming out of the in-house development of a telco will serve their purpose well when they can be recombined with each other and with functionalities that are or will be available from external sources.

Figure 1: Modules in R&D

2.2 Applicable Current Thinking in Enterprise Architecture Enterprise Architecture (EA) is a concept used for linking the business development domain with innovations in IT technology [10]. The aim of EA is to “holistically” address all aspects of the “extended enterprise” and is therefore directly associated with business technology alignment: business structure, business activities, business processes, information flows, information-systems, infrastructure, standards, and policies. In its ultimate form, EA connects the decision level of the CEO with the IT process support provided. EA aims at maximizing the return on information while, at the same time, reducing cost and complexity of IT technology [11]. Complexity and cost reductions are to be achieved among others by platform and module types of systems partitioning6. Building on Zachman’s concept of EA [12], Jaap Schekkerman’s work contains “technology capabilities” 6

Pioneering works include John Zachman’s activities at IBM, or HP’s adaptive enterprise concept.

Figure 2: Key elements of an extended enterprise [11]

Most authors approach Enterprise Architecture concepts either from the business/process perspective (e.g. Marc Lankhorst [13], Robert Winter, and Peter Bernus) or from the IT-Technology perspective (e.g. Pontus Johnson [14], Florian Matthes [15], and André Vasconcelo). The consolidated view with an overarching four dimension structure is presented by Pulkkinen [16] in the so-called Enterprise Architecture grid (figure 3). The EA grid distinguishes business, information, and system and technology architecture dimensions. These four dimensions are very close to the three levels of description characteristic and useful for early innovation and R&D: - use case - functionality - underlying technological solution Author (Year). Publication. Zachmann, J. A. (1997). Enterprise Architecture: The Issue Of The Century. Database Programming and Design, 1–13.

Enterprise Level Domain Level

Enterprise strategic alignment Business strategy Technology strategy Business concepts Enabling technologies Operational capabilities Technology capabilities Enterprise business improvement

The EA Grid

System Level

as important elements and a linking element “enabling technologies” to technology strategy [11]. They are shown in italics in figure 2. This is the part where a modularization approach in early innovation stages becomes most relevant.

Business Architecture Business and mgmt. Decisions, portfolio of businesses, mission, business strategies, visions Services/ products in the domain, business processes for their production Business requiremts, for systems and data mgmt.

Systems (Applications) Architecture

Information Architecture

Technology Architecture

Strat. info mgmt considerations, information value chain

Strategic systems portfolio (application portfolio)

Strat. tech. portfolio; vendor relationships, enterprise technology guidelines and policies

Information mgmt. of the domain

Domain systems map, interop.

Technologies Infrastructure: platforms, networks, data communication

Data architect.; data harmonizat. principles; data storages

Systems architecture; application patterns; developer guidelines

System-level technology architecture; technical implementation

Figure 3: EA grid according to Pulkkinen

An analysis of characteristic contributions to EA confirms this observation: EA can be very useful for early telco innovation and R&D, but has not yet been recognized for this possibility. Figure 4 shows exemplary contributions to EA and their orientation [12] – [18].

Short description

Contribution to EA/ purpose of EA

Enterprise Architecture: The issue of the century

Defines a framework for EA, rather from the technical side; goal is to get precise information about the running system state E2A is a holistic view covering the key aspects of an enterprise and its environment from the strategic level to the implementation and transformation level represented by 6 core questions: Why? With Whom? What? How? With what? When? – making SOA a subcategory of the How and With What logical and solution representation.

Shekkerman, J. (2003). How to Survive in the Jungle of Enterprise Architecture Frameworks: Creating or Choosing an Enterprise Architecture Framework. Trafford Publishing

Extended Enterprise Architecture (E2A) Framework

Matthes, F., Wittenburg, A. (2004). Softwarekartographie: Visualisierung von Anwendungslandschaften und ihrer Schnittstellen. Informatik 2004 - Jahrestagung der GI. Ulm, 2004.

Software cartography: Visualising application landscapes and interfaces

Purpose is a comprehensive and intelligible depiction of complex IT systems. Process landscapes are not in scope.

Lankhorst, M. (2005). Enterprise Architecture at Work: Modelling, Communication and Analysis: Springer.

Enterprise Architecture at Work: Modelling, communication and analysis

Enterprise Architecture tries to describe and control an organisation’s structure, processes, applications, systems and techniques in an integrated way. The unambiguous specification and description of components and their relationships in such architecture requires a coherent architecture modelling language.

Ross, J. W., Weill, P., & Robertson, D. (2006). Enterprise Architecture as strategy: Creating a foundation for business execution. Boston Mass.: Harvard Business School Press.

Enterprise Architecture as a strategy

Understanding business needs for technology management

Johnson, P., Lagerstrom, R., Narman, P., Simonsson, M. (2006). Extended Influence Diagrams for Enterprise Architecture Analysis. edoc, 0, 3–12, from http://doi.ieeecomputersociety.org/10.1109/EDOC.2006.27.

Extended influence diagrams for Enterprise Architecture analysis

Getting a structured analysis method of the EA, this method generates quantifiable results, other papers with specific goals (security, IT management,…)

Cullen, A., Orlov, L., Radjou, N., Hoppermann, J., Peyret, H., Sessions, L. (2006) Enterprise Architecture' s Role In IT-Enabled Business Innovation. Forrester Research "EA' s Role In Innovation" series.

Organizing IT support for innovation

IT is supposed to provide structure and process for business-focused technology R&D. Enterprise Architecture (EA) groups can enable the firm' s innovation pipeline and developing the firm' s innovation network.

Figure 4: Characteristic applications of Enterprise Architecture (examples)

3. Enterprise Architecture and Modularization to Prepare for Alternative Innovation Paths

Enterprise Architecture has its roots in information systems, but is ready to make its way to interdisciplinary teams of applied R&D expert constellations in telecommunication operators. Especially important features of Enterprise Architecture, alongside the stringent modularization, are those that allow telcos to stay both flexible and focused in early innovation stage of enablers’ development. Flexibility is required when it comes to matching future customer needs with technical enablers under development. 3.1 Future Scenarios of Customer Needs One method to approach future customer needs is the scenario technique. Scenarios aim at a future point in time - e.g. year 2020 - and are interpolated to the indicators of the presence. If the possible trends have to be expressed in three scenarios, they could be the following [19]: - Increase of free-market mechanisms in most areas of daily life and strengthen performance orientation - Emphasize the importance of society and social welfare - Focus on individualism and identity through group/community membership Each one of these development paths has different implications for the usage of technology and the business models that are accepted by the respective customer groups (the following taken from [20]). These development paths are not mutually exclusive; they are likely to coexist – just in what proportion, it remains unclear.

On the technical side, this lifestyle is supported by – ideally - ubiquitous access to communication, computation, and data storage. Memories are stored as digital media. Thus, easy-to-handle digital rights and cheap high-capacity data storage and delivery would play a role. Online collaboration, rating and organization fit well to this scenario and can be used for both work-related and personal purposes. The ongoing digitization would pose a threat to mass media such as radio and newspapers. Scenario 2 is governed by other segments of society, who - as a counter-reaction to the perceived effects of “capitalism” and “globalization” – resort to postmaterialistic values and neighbourly solidarity. Communication technology is supposed to simply support the user in their activities and must be easy to use. Unlike in the performance-oriented scenario, rating mechanisms, tagging and folksonomies are of potential importance due to their ability to create a collective opinion. Scenario 3 is about increasing individualism and selfexpression through membership in special interest and knowledge communities. Self-expression could be technically supported by the use of personalized avatars and syndication of web applications. Current examples in this domain include Flickr, MySpace and Second Life. Also, in this scenario, further personalization might threaten traditional mass media [19]. 2.2 Alternative Innovation Paths and Technological Choice Alternative paths of future customer needs meet a plethora of technologically enabled functionalities. Several of these functionalities can become relevant in all three customer scenarios. Others fit in only one or two of the scenarios. When linking both domains in early innovation though the help of intelligently partitioned modules7, the core idea of Enterprise Architecture is carried out: Addressing and maintaining the link between technology development and customer. Figure 6 is an example of how modularized system elements can match trends in customer needs (adapted from [21]).

The customer segment called “modern performers” is characteristic for scenario 1, the performance oriented “free market mechanisms” scenario. These customers value top brand products and international personal relations and like to push their limits. Their vacation profile is very illustrative; it includes five-star hotels as well as staying on an air mattress with friends. They relocate easily for attractive job opportunities.

Universal telecommunication interface

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Context sensitive awareness Interaction with personalized information butlers Adaptable, consistent & multimodal interfaces

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Individ ualism

Figure 5: Customer trend scenarios [20]

Society

R&D modules (examples)

Free market

Trends

X X

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And, of course with the help of intelligent prioritization instruments from innovation marketing such as customer clinics…

Preferences automation

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Semantic-enabled entertainment domains

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DRM-based superdistribution

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Permission gateway Profiling

X X X

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P2P distribution Smart service creation & delivery for 3rd parties ID federation

X

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Personal trust & reputation

X

X

Single-Sign On

X

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Attribute provisioning

X

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X X

Etc.

network centric view. Together with concepts for metro and core networks they form the base layer of the architectural framework. These five innovation domains form the top level of providing links between the requirements in the business areas of home, mobile, personal social networks (PSN), and overarching topics. Each one of the categories, both from the business domain and the technology domain can be layered down to the system or production layer and its components. Figure 8 shows the example of personal social networks and its underlying layers.

Figure 6: Linking T-Labs functional modules to the environment (exemplary and illustrative)

Therefore – in contrast to developing integrated solutions for one single trend – modules can be recombined and matched flexibly according to the situation of customer needs and technological environment at the time of the market introduction decision.

4. T-Labs Enterprise Architecture

A related conceptual thinking is being established at Deutsche Telekom AG, Laboratories (“T-Labs”), in order to better focus on white spots or possibilities for valuable differentiation left by the other contributors of the innovation ecosystem. At T-Labs, an Enterprise Architecture approach improves delivery of R&D results in the form of “scalable” prototype functions and the probability of addressing the emerging web and telecom services, and pre-empt external technological change. T-Labs follow the idea of a layered and modular overall architecture by segmenting the technology stack into 5 distinct innovation spaces in the way figure 7 depicts.

Figure 7: Simplified T-Labs Enterprise Architecture

The user interface layer is governed by the quest for usability. The application and enabler domain has three major blocks: integrated communication (or better integrative service components), multi-access IP service components and network centric enablers, as well as AAA functions. Broadband and wireless access looks for progress in “pervasiveness” and the management of heterogeneous networks. Security is investigated from a

Figure 8: Example: Personal and social networking related architectural layers

5. Conclusion

Enterprise Architecture, combined with the concept of modularization, can be expanded onto the domain of telco R&D. This way, in-house telco R&D can maximise the applicability of its results, maximise focus, and thus increase value contribution to operating businesses in times of technological uncertainty. More of the opportunities can be embraced that come along with the architectural innovation that large telcos face. At Deutsche Telekom Laboratories such an approach is in place to prepare for alternative paths of innovation.

6. Acknowledgements

The authors would like to thank Daniela Linke, Maximilian Ahrens, and Dr. Petros Zerfos from Deutsche Telekom Laboratories for their support, as well as newly born Leonard Arnold and his mother Victoria for allowing Heinrich to finish this article.

7. References

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