Case Study: From Strategy to Large-scale Change Program
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The document outlines the Finnish Tax Administration's enterprise architecture (EA) journey, highlighting the importance of leadership engagement and communication in implementing large-scale change. It details the initial challenges faced, such as outdated systems and siloed processes, and describes the development of a tailored EA framework to guide strategic transformations. The initiative has led to the successful approval of a 'to-be' state architecture and the commencement of a change program aimed at modernizing taxation functionalities.
Case Study: From Strategy to Large-scale Change Program
- 2. From Strategy to Large-scale Change Program - Using Enterprise Architecture A Case study about Finnish Tax Administration’s EA journey Jussi Jutila Lead Enterprise Architect Isatalo Jorma Myyryläinen Senior Enterprise Architect Tieto Ltd
- 3. About the Story • Brief introduction • Starting point • Story building • Leadership engagement and trust • Audiences and languages • Change program as result • Where we are now • Lessons learned
- 4. Companies • Tieto Ltd Tieto is the largest Nordic IT services company providing full life-cycle services for both private and public sectors. The company has global presence through its product development business and the delivery centers. Key figures (ca.) - Net sales 1700 M€ - Operating profit (EBIT) 90 M€ - Personnel 15000 Headquarters in Helsinki, Finland Listed in OMX (Hel) and OMX (STO) • Tietokarhu Ltd A joint venture with Ministry of Finance in Finland. Focused on partnership with Finnish Tax Authority. Key figures (ca.) - Net sales 40 M€ - Operating profit (EBIT) 6 M€ - Personnel 300 Headquarters in Helsinki, Finland
- 5. Companies • Finnish Tax Administration (FTA) Tax revenue collected by the Tax Administration is the most important source of revenue for the public economy. The Tax Administration’s core task is to secure the accrual of tax revenue and to reduce the tax gap. FTA is a national organisation which collects taxes and tax alike fees to all tax recipients: state, municipalities, KELA, parishes, etc. Key figures Inside FTA (M€) 2013 2012 Costs 395.2 401.7 Incomes 6.0 6.0 Personnel on 31 December 5157 5322 Waste volumes, tonnes of CO2* 75 89 Revenue (M€) 2013 2012 State taxes 30904 30286 Municipalities 18501 19328 Parishes 991 976 Social Insurance Institution 3449 3446 Total 52689 50261
- 6. Signifigance in National Economy • Some key figures – Finnish Gross national product (GNP) ca. 160 000 M€ – State budget in Finland ca. 40 000 M€ • State income thru FTA ca. 31 000 M€ – 3/4 of state budget • FTA costs ca. 425 M€ (operational) – Total amount of taxes thru FTA ca. 51 000 M€ – 1/3 of GNP Scope
- 7. Starting Point • EA-Status at FTA and Public administration in Finland – Strategic work done but EA work not done – Strategic goals settled but no EA target state set – MoF had stated its EA goals, methods and requirements • Situation in FTA – Separate and chopped processes – Separate and overlapping databases – Old legacy systems and siloed functions decelerate development
- 8. Starting Point • Legacy applications and their integration (systems viewpoint) As-is state
- 9. Competing Agendas c. Architecture driven Approach Business needs Business development, enterprise architecture Managed view of needs, goals and enterprise architecture Squad based or individual agendas, ad hoc architecture Business needs Strongy networked Loosly networked All networked 9
- 10. Choosing methods Not supporting roll out Method ”over boiling” Target domain Description style Precise, exact, detailed Coarce, focusing to essential Searching for decision making Waiting for implementation Applicaple methods Ambiguity Jungle of details
- 11. Story building • We started with building an EA-framework. – Applying “best” or “fittest” parts suitable for FTA – Sources: Zachman, TOGAF, FEAR*) • We continued applying suitable parts from methods – Applying “best” or “fittest” parts suitable for FTA – Sources TOGAF, FEAR, ValtIT**) • Result was a storyline – Illustriated path for progress – Guidance from FTA strategy – Continuum of agendas for workshops *) FEAR: Research program at Jyväskylä University to produce a methodology, models, etc. for Finnish public administration *) ValtIT: Finnish EA approach, methods and frameworks for state administration
- 12. Story building • Our applied framework for FTA Kokonais- kehittämisen malli Toiminnan kohde - VH:n toimintaympäristö yhteiskunnassa - VH:n palvelutarjooma - Ydinprosessit ja -palvelut - VH:n toimintamalli - Toiminnan asettamat vaatimukset Tietojen hallinnan periaatteet - Tietotarpeet ja -tarjonta - Tietojen hankinnan ja hallinnan periaatteet - Liiketoiminnan käsitteet - Ontologiat ja sanastot - Tietosuojan periaatteet Kohdealueen tiedot - Tietovarannot - Tietojen elinkaaret - Tietojen omistajuudet - Tietojen vaihdot - Tietomalli (loogiset rakenteet) - Tietosuojan hallinta Tietoresurssien rakenteet - Tietovarastot - Rakennemallit (XML-, TK- skeemat, tiedostokuvaukset …) - Tietosuojamekamismit - Työkalut ja välineet Tietojärjestelmäperiaatteet - Valtiokonsernin tietojärjestelmäpalvelut - VH:n tietojärjestelmäpalvelut - Tavoitetilan järjestelmäkartta - Järjestelmien hankintapolitiikka - Tietojärjestelmien vaatimukset Järjestelmien loogiset rakenteet - Looginen kokonaiskuva - Loogiset järjestelmät, yhteydet ja riippuvuudet - Tietojärjestelmien elinkaaret - Järjestelmäkuvaukset Fyysiset rakenteet - Sovellukset - Sovellusten teknologia- alustajako - Viitearkkitehtuurit - Liiketoiminta- ja informaatio- palveluhakemistot - Tietoturvakontrollit Teknologiaperiaatteet - Valtiokonsernin teknologiset linjaukset ja palvelut - Teknologioiden elinkaarilinjaukset - VH:n teknologiat - VH:n teknologiapalvelukartta - Sovellettavat tekniset standardit - Teknologiarajaukset Teknologioiden looginen kokonaisuus - Looginen teknologiakokonaisuus - Elinkaarien hallinta - Teknologiapalvelut - Tietoturvapalvelut - Järjestelmähallintapalvelut - Alustapalvelut - Toimistoinfrastruktuuripalvelut Fyysiset resurssit - Fyysinen infrastruktuuri - Tietoliikenneverkot - Sijoittelu - Teknologiamekanismit - Tietoturvan mekanismit - Soveltamisohjeisto Toiminnan kuvaukset - VH:n prosessikartta - VH:n sisäinen palvelukartta - Palvelukuvaukset elinkaarineen - Pääprosessit - Toiminnot Toiminnan puitteet - Toimintaorganisaatiot - Työnkulut - Järjestelmille asetettavat vaatimukset Lähtökohdat Kontekstuaalinen taso ”Miksi tehdään?” Järjestelmänäkökulma Tietojärjestelmäarkkitehtuuri Teknologianäkökulma Teknologia-arkkitehtuuri Kokonaiskehittämisen näkökulmat Liiketoimintanäkökulma Toiminta-arkkitehtuuri Informaationäkökulma Tietoarkkitehtuuri Linjaukset Käsitteellinen taso ”Mitätehdään?” Ratkaisut Looginentaso ”Kuinkatehdään?” Resurssit Fyysinen Taso ”Millätehdään?” Kokonaiskehittämisenvaiheet Kokonaiskehittämisen lähtökohdat: Yhteiskunnallinen ja kansainvälinen rooli, strategiat, visiot, lainsäädäntö, (Liike-)toiminnan periaatteet ja vaatimukset sekä tavoitteet, hankintapolitiikat, kohdealueen rajaukset, Teknologiset ja organisatoriset periaatteet ja rajaukset, kokonaiskehittämisen hallinta
- 13. Story building and framework Guiding principles Business Information Systems Technology Practices Practical methods and tools, working patterns and structures for decision making and execution to ensure mutual path Policies and definitions per EA viewpoint It is essential to communicate these to be common and concrete practices through the whole organisation Guiding principles, high level goals for comprehensive developement • Structure of our framework and storyline’s essentials
- 14. Basic Continuum Understanding of present and its history Creating target state and identifying changes Roadmap, designing the development program Toimeenpano Understanding business = Business Architecture Not a separate phase in the beginning but a continuos effort ToimeenpanoImplementation phase by phase Includes also infrastructure, program management, governance etc. Producing as-is and to-be states of architecture and identifying differences
- 15. Architecture Storyline Interest groups Services Processes Information systems, IT Progression What is our value chain? Who are our partners, information producers and consumers? Which products or services we produce? What is their structure? What processes we need? Which systems we need for running processes How we should proceed? In which phases etc.?
- 16. Story building • Storyline made a continuum which concealed the architectural methods and framework – Top leadership team proceeded according to the storyline. – Leaders came to “table set ready” to give their contribution – Leaders were not “disturbed” with EA lingo – Architects took care of methods and architectural consistency and structural strength
- 17. Leadership engagement and trust • From strategy to guiding ideas • Translation from strategy into Structural requirements and goals • We spoke about familiar things in structural format • They saw a path from strategy towards concrete functional to- be state of their organisation • We carried forward the work in workshops according our storyline
- 18. Leadership engagement and trust • Achieving trust • When top leadership team members saw progress with their ideas coming alive, they engaged and started to trust architecture as means in achieving the Change • Composite of business profits with systems, technology and infrastructure necessities was an “eye opener”. • To avoid siloed enterprise structure and achieve one single and solid enterprise
- 19. Combining business profit and necessities Basic capabilities (Customer management, data flow management, analytics, integration, process management) Businesscapabilities (Taxationmanagement,managementofpayments andrefunds,variancehandling,customerservice) cost efficiency, renewability Effectivines, Focus on customer To-be state Enablers Solutionswhichbringtheprofit Separation of business profits and enablers anti-siloing and general solutions
- 20. Audiences and languages Operative management Customer’s Architect team Architects Sponsor Information Administration’s management Business specialists • Audiences Top leadership team
- 21. Audiences and languages Top leadership team Operative management Customer’s Architect team Architects Sponsor Information Administration’s management Business specialists Leadership workshops • Working with top leadership team
- 22. Audiences and languages Top leadership team Operative management Customer’s Architect team Architects Sponsor Information Administration’s management Business specialists Deepening workshops • Drilling downwards from strategic issues
- 23. Audiences and languages Top leadership team Operative management Customer’s Architect team Architects Sponsor Information Administration’s management Business specialists Architecture work guidance • Architectural principalities, goals and policy making
- 24. Audiences and languages Top leadership team Operative management Customer’s Architect team Architects Sponsor Information Administration’s management Business specialists Workshop drafts and summaries • Questions to main workshops and finalising the results
- 25. Audiences and languages Top leadership team Operative management Customer’s Architect team Architects Sponsor Information Administration’s management Business specialists Informing and Conversations (engagement) • Information and conversations to engage
- 26. Audiences and languages Guiding principles Business Information Systems Technology Practices Practical methods and tools, working patterns and structures for decision making and execution to ensure mutual path Leadership workshops Workshop drafts and summaries, Deepening workshops Architecture work guidance
- 27. Audiences and languages • Right language to right people – “Business language” to top leadership (what?) • E.g. customer, value, profit, costs, program, portfolio, process maps, business entities etc. – Functional language to business specialists (how?) • Process flows, workflows, data groups etc. – ICT-lingo to operative people (with what?) • E.g. ICT acronyms (BPML, XML etc.), system maps, platforms – Architecture among architects (“big picture”) • E.g. Modelling languages (E.g. Archimate), TOGAF, frameworks etc.
- 28. Change program as result • To-be state architecture was approved • After approval we produced a change program – Prioritised development project items – Development phases – Dependences between projects were extremely important – Road map reasoned by business case calculations • Visualisation by metaphor from “railroad yard”
- 29. Development path as a “railway yard” diagramAs-isdatasystems To-befunctionalities
- 30. Where we are now • Customer made major business decision on investment • The core of FTA’s taxation functionalities was put out to tender – competitive bidding was won by 226 M€ bid – Program has started on spring 2014 and is planned to get finalised on 2019 • Process harmonisation started • Architecture work continues – Architecture work has been continued further and deeper – New needs arises from ever changing society, national economy and increasing international co-operation – Growing taxation and economy ecosystems
- 31. Lessons learned • It is essential to keep top leadership team involved all the time – Business scope must be kept at right level • Everything must be reasoned through benefits – Personal and group benefits – Benefits must be based on concrete information (e.g. by business cases) • Right language to right people – EA is not a “lingua franca” but architect is interpreter • Well prepared workshops give results and engage their participants
- 32. Lessons learned • Understandable story engages and carries on • Focusing in audience’s abstraction level keeps up interest • It is hard to get good architecture implemented in a proper way – What we did wrong because it was not obvious to go straight forward? (a lesson still to be learned) – Storyline was lost • Big vessels turn slowly (except upside down) – People in those vessels change their opinions slowly
- 34. Thank You