Demystify the New PMBOK Guide and the PMI Certifications

The PMP certification is still valuable and worth your time in 2023.

Analyst Perspective

The PMP (Project Management Professional) certification is still worth your time.

I often get asked, “Is the PMP worth it?” I then proceed with a question of my own: “If it gets you an interview or a foot in the door or bolsters your salary, would it be worth it?” Typically, the answer is a resounding “YES!”

CIO magazine ranked the PMP as the top project management certification in North America because it demonstrates that you have the specific skills employers seek, dedication to excellence, and the capacity to perform at the highest levels.

Given its popularity and the demand in the marketplace, I strongly believe it is still worth your time and investment. The PMP is a globally recognized certification that has dominated for decades. It is hard to overlook the fact that the Project Management Institute (PMI) has more than 1.2 million PMP certification holders worldwide and is still considered the gold standard for project management.

Yes, it’s worth it. It gets you interviews, a foot in the door, and bolsters your salary. Oh, and it makes you a more complete project manager.

Long Dam, PMP, PMI-ACP, PgMP, PfMP

Executive Summary

Info-Tech Insight

The PMP certification is still valuable and worthy of your time in 2023.

Info-Tech offers various levels of support to best suit your needs

Diagnostics and consistent frameworks are used throughout all four options.

The PMP dominated the market for decades and got over 1 million people certified

Info-Tech Insight

The PMI’s flagship PMP certification numbers have not significantly increased from 2021 to 2022. However, PMP substantially outpaces all competitors with over 1.2 million certified PMPs.

Source: projectmanagement.com

The PMP penetrated over 200 countries

PMP is the global project management gold standard.

• CIO magazine ranked the PMP as the top project management certification because it demonstrates you have the specific skills employers seek, dedication to excellence, and the capacity to perform at the highest levels.
• It delivers real value in the form of professional credibility, deep knowledge, and increased earning potential. Those benefits have staying power.
• The PMP now includes predictive, Agile, and hybrid approaches.
• The PMP demonstrates expertise across the wide array of planning and work management styles.

Source: PMI, “PMP Certification.” PMI, “Why You Should Get the PMP.”

The PMP was valuable in the past specifically because it was the standard

79% of project managers surveyed have the PMP certification out of 30,000 respondents in 40 countries.

The PMP became table stakes for jobs in project management and PMO’s.

Source: PMI’s Earning Power: Project Management Salary Survey—Twelfth Edition (2021)

The PMP put itself on a collision course with Agile

• The Agile Certified Practitioner (PMI-ACP) was introduced in 2012 which initially clashed with the PMP for project management supremacy from the PMI.
• Then the Disciplined Agile (DA) was introduced in 2019, which further compounded the issue and caused even more confusion with both the PMP and the PMI-ACP certification.
• Instead of complementing the PMP, these certifications began to inadvertently compete with it head-to-head.

There is a new PMBOK Guide Seventh Edition in town

The PMI made its most significant changes between 2017 and 2021.

Timeline adapted from Wikipedia, “Project Management Body of Knowledge.”

Roughly every 3-5 years, the PMI has released a new PMBOK version. It’s unclear if there will be an eighth edition.

The market got confused by PMBOK Guide – Seventh Edition

• Die-hard traditional project managers have a hard time grasping why the PMI messed around with the PMBOK Guide. There is sentiment that the PMBOK Guide V7 got diluted.
• Naysayers do not think that the PMBOK Guide V7 hit the mark and found it to be a concession to Agilists.
• The PMBOK Guide V7 was significantly trimmed down by almost two-thirds to 274 pages whereas the PMBOK V6 ballooned to 756 pages!
• Some Agile practitioners found this to be a refreshing, bold move from the PMI. Most, however, ignored or resisted it.

PMBOK Guide – Seventh edition released in 2021

• The PMBOK Guide – Seventh Edition was released in late 2021. It was the most radical change since 1987. For the first time, the PMI went from a process-based standard to a principles-based standard, and the guide went from knowledge areas to project performance domains. This may have diluted the traditional predictive project management practices. However, it was offset by incorporating more iterative, Agile, and hybrid approaches.
• The market is confused and is clearly shifting toward Agile and away from the rigor that is typically associated with the PMI.
• The PMI transitioned most of the process-based standards & ITTO to their new digital PMIStandards+ online platform, which can be found here (access for PMI members only).
• The PMBOK Guide is not the sole basis of the certification exam; however, it can be used as one of several reference resources. Using the exam content outline (ECO) is the way forward, which can be found here.

The Agile certification seems to be the focus for the PMI in the coming years

• The PMI started to get into the Agile game with the introduction of Agile certifications, which is where all the confusion started. Although the PMI-ACP & the DASM have seen a steady uptake recently, it appears to be at the expense of the PMP certification.
• The PMI acquired the Discipline Agile (DA) in late 2019, which expanded their offerings and capabilities for project managers and teams to choose their “way of working.”
• This was an important milestone for the PMI to address the new way of working for Agile practitioners with this offering to provide more options and to better support enterprise agility.

Source: projectmanagement.com as of July 2022

The PMI has lost more certified PMPs than they have gained so far in 2022

PMP – Project Management Professional

It is a concerning trend that their bread and butter, the PMP flagship certification, has largely stalled in 2022. We are unsure if this was attributed to them being displaced by competitors such as the Agile Alliance, their own Agile offerings, or the market’s lackluster reaction to PMBOK Guide – Seventh Edition.

Source: projectmanagement.com as of July 2022

The PMI’s total memberships have stalled since September 2021

The PMI’s membership appears to have a direct correlation to the PMP numbers. As the PMP number stalls, so do the PMI’s memberships.

Source: projectmanagement.com as of July 2022

The PMP and the PMBOK Guide are more focused on project management

• It became evident that other certifications were more tightly aligned to program and portfolio management for the PMOs. The PMI provides the following:
  • Program Management Professional (PgMP)
  • Portfolio Management Professional (PfMP)
• Axelos also has certifications for program management and portfolio management, such as:
  • Managing Successful Programmes (MSP)
  • Management of Portfolios (MoP)
  • Portfolio, Programme, and Project Offices (P3O)

The market didn’t know what to do with the PgMP or the PfMP

These were relatively unknown certifications for Program and Portfolio Management.

• The PMI’s story was that you would start as a project manager with the PMP certification and then the natural progression would be toward either Program Management (PgMP) or Portfolio Management (PfMP).
• The uptake for the PgMP and the PfMP certification has been insignificant and underwhelming. The appetite and the demand for PMO-aligned certifications has been lackluster since their inception.

Source: projectmanagement.com as of July 2022

There are other non-PMI certifications to consider

Depending on your experience level

Other non-PMI project management certifications

PRINCE2 and CSM appear to be the more popular ones in the market.

In April 2022, CIO.com outlined other popular project management certifications outside of the PMI.

Source: CIO.com

Project managers have an image problem among senior leaders

There is a perception that PMs are just box-checkers and note-takers.

• Project managers are seen as tactical troubleshooters rather than strategic partners. This suggests a widespread lack of understanding of the value and impact of project management at the C-suite level.
• Very few C-suite executives associate project managers with "realizing visions," being "essential," or being "changemakers."
• Strong strategic alignment between the PMO and the C-suite helps to reinforce the value of project management capabilities in achieving wider strategic aims.

Source: PMI, Narrowing The Talent Gap, 2021

Hiring practices have yet to change in response to the PMI’s moves

The PMP is still the standard, even for organizations transitioning to Agile and PMO/portfolio jobs.

• Savvy business leaders are still unsure about how Agile will impact them in the long term.
• According to the Narrowing the Talent Gap report, PMI and PwC’s latest global research indicates that talent strategies haven’t changed much. There’s a widespread lack of focus on developing and retaining existing project managers, and a lack of variety and innovation in attracting and recruiting new talent. The core problem is that there isn’t a business case for investment in talent.

Noteworthy Agile certifications to consider

Source: PMI, “Agile Certifications,” and ScrumAlliance, “Become a Certified ScrumMaster.”

Info-Tech Insight

There is a lot of chatter about which Agile certification is better, and the jury is still out with no consensus. There are pros and cons to both certifications. We believe the PMI-ACP will give you more mileage and flexibility because of its breath of coverage in the Agile practice compared to the CSM.

The talent shortage is a considerable risk to organizations

• According to the PMI’s 2021 Talent Gap report1, the talent gap is likely to impact every region. By 2030, at least 13 million project managers are expected to have retired, creating additional challenges for recruitment. To close the gap, 25 million new project professionals are needed by 2030.
• Young project managers will change the profession. Millennials and Generation Z are bringing fresh perspectives to projects. Learning to work alongside these younger generations isn't optional, as they increasingly dominate the labor force and extend their influence.
• Millennials have already arrived: According to Pew Research2, this group surpassed Gen X in 2016 and is now the largest generation in the US labor force.

1. PMI, Talent Gap, 2021.
2. PM Network, 2019.

Money talks – the PMP is still your best payoff

It is a financially rewarding profession!

The median salary for PMP holders in the US is 25% higher than those without PMP certification.

On a global level, the Project Management Professional (PMP) certification has been shown to bolster salary levels. Holders of the PMP certification report higher median salaries than those without a PMP certification – 16% higher on average across the 40 countries surveyed.

Source: PMI, Earning Power, 2021

Determine which skills and capabilities are needed in the coming years

• A scan of 2022 PM and PMO postings still shows continued dominance of the PMP certification requirement.
• People and relationships have become more important than predicting budgets and timelines.
• The PMI and PwC Global Survey on Transformation and Project Management 2021 identified the top five skills/capabilities for project managers (in order of priority):
  1. Relationship building
  2. Collaborative leadership
  3. Strategic thinking
  4. Creative problem solving
  5. Commercial awareness

Source: PMI, Narrowing The Talent Gap, 2021.

Prepare for product delivery by focusing on top digital-age skills

According to the PMI Megatrends 2022 report, they have identified six areas as the top digital-age skills for product delivery:

1. Innovative mindset
2. Legal and regulatory compliance knowledge
3. Security and privacy knowledge
4. Data science skills
5. Ability to make data-driven decisions
6. Collaborative leadership skills

Many organizations aren’t considering candidates who don’t have project-related qualifications. Indeed, many more are increasing the requirements for their qualifications than those who are reducing it.

Source: PMI, Narrowing The Talent Gap, 2021

Prioritize training and development at the C-suite level

Currently, there is an imbalance with more emphasis of training on tools, processes, techniques, and methodologies rather than business acumen skills, collaboration, and management skills. With the explosion of remote work, training needs to be revamped and, in some cases, redesigned altogether to accommodate remote employees.

Lack of strategic prioritization is evident in how training and development is being done, with organizations largely not embracing a diversity of learning preferences and opportunities.

Source: PMI, Narrowing The Talent Gap, 2021

PM is evolving into a more strategic role

• Ensure program and portfolio management roles are supported by the most appropriate certifications.
• For project managers that have evolved beyond the iron triangle of managing projects, there is applicability to the PgMP and the PfMP for program managers, portfolio managers, and those in charge of PMOs.
• Although these certifications have not been widely adopted due to lack of awareness and engagement at the decision-maker level, they still hold merit and prestige within the project management community.

Project managers are evolving. No longer creatures of scope, schedule, and budget alone, they are now – enabled by new technology – focusing on influencing outcomes, building relationships, and achieving the strategic goals of their organizations.

Source: PMI, Narrowing the Talent Gap, 2021

Overhaul your recruitment practices to align with skills/capabilities

Talent managers will need to retool their toolbox to fill the capability gap and to look beyond where the role is geographically based by embracing flexible staffing models.

They will need to evolve their talent strategies in line with changing business priorities.

Organizations should be actively working to increase the diversity of candidates and upskilling young people in underrepresented communities as a priority.

Most organizations are still relying on traditional approaches to recruit talent. Although we are prioritizing power skills and business acumen, we are still searching in the same, shrinking pool of talent.

Source: PMI, Narrowing the Talent Gap, 2021.

Bibliography

“Agile Certifications for Every Step in Your Career.” PMI. Web.

“Become a Certified ScrumMaster and Help Your Team Thrive.” ScrumAlliance. Web.

“Become a Project Manager.” PMI. Accessed 14 Sept. 2022.

Bucero, A. “The Next Evolution: Young Project Managers Will Change the Profession: Here's What Organizations Need to Know.” PM Network, 2019, 33(6), 26–27.

“Certification Framework.” PMI. Accessed 14 Sept. 2022.

“Certifications.” PMI. Accessed 14 Sept. 2022.

DePrisco, Mike. Global Megatrends 2022. “Foreword.” PMI, 2022. Accessed 14 Sept. 2022.

Earning Power: Project Management Salary Survey. 12th ed. PMI, 2021. Accessed 14 Sept. 2022.

“Global Research From PMI and PwC Reveals Attributes and Strategies of the World’s Leading Project Management Offices.” PMI, 1 Mar. 2022. Press Release. Accessed 14 Sept. 2022.

Narrowing the Talent Gap. PMI, 2021. Accessed 14 Sept. 2022.

“PMP Certification.” PMI. Accessed 4 Aug. 2022.

“Project Management Body of Knowledge.” Wikipedia, Wikimedia Foundation, 29 Aug. 2022.

“Project Portfolio Management Pulse Survey 2021.” PwC. Accessed 30 Aug. 2022.

Talent Gap: Ten-Year Employment Trends, Costs, and Global Implications. PMI. Accessed 14 Sept. 2022.

“The Critical Path.” ProjectManagement.com. Accessed 14 Sept. 2022.

“True Business Agility Starts Here.” PMI. Accessed 14 Sept. 2022.

White, Sarah K. and Sharon Florentine. “Top 15 Project Management Certifications.” CIO.com, 22 Apr. 2022. Web.

“Why You Should Get the PMP.” PMI. Accessed 14 Sept. 2022.

Mitigate Key IT Employee Knowledge Loss

Transfer IT knowledge before it’s gone.

EXECUTIVE BRIEF

Executive Summary

Info-Tech Insight

Seventy-four percent of organizations do not have a formal process for capturing and retaining knowledge which, when lost, results in decreased productivity, increased risk, and money out the door.1

1 McLean & Company, 2016, N=120

Stop your knowledge from walking out the door

Today, the value of an organization has less to do with its fixed assets and more to do with its intangible assets. Intangible assets include patents, research and development, business processes and software, employee training, and employee knowledge and capability.

People (and their knowledge and capabilities) are an organization’s competitive advantage and with the baby boomer retirement looming, organizations need to invest in capturing employee knowledge before the employees leave. Losing employees in key roles without adequate preparation for their departure has a direct impact on the bottom line in terms of disrupted productivity, severed relationships, and missed opportunities.

Knowledge Transfer (KT) is the process and tactics by which intangible assets – expertise, knowledge, and capabilities – are transferred from one stakeholder to another. A well-devised knowledge transfer plan will mitigate the risk of knowledge loss, yet as many as 74%2 of organizations have no formal approach to KT – and it’s costing them money, reputation, and time.

84%of all enterprise value on the S&P 500 is intangibles.3

$31.5 billion lost annually by Fortune 500 companies failing to share knowledge. 1

74% of organizations have no formal process for facilitating knowledge transfer. 2

1 Shedding Light on Knowledge Management, 2004, p. 46

2 McLean & Company, 2016, N=120

3 Visual Capitalists, 2020

Losing knowledge will undermine your organization’s strategy in four ways

In a worst-case scenario, key employees leaving will result in the loss of valuable knowledge, core business relationships, and profits.

Are you part of the 74% of organizations with no knowledge transfer planning in place? Can you afford not to have it?

Consider this:

A system failure to a mainframe could be disastrous for organizations that haven’t effectively transferred key knowledge. Now think past the mainframe to key processes, customer/vendor relationships, legal requirements, home grown solutions etc. in your organization.

What would knowledge loss cost you in terms of financial and reputational loss?

Source: 1 Big Tech Problem as Mainframes Outlast Workforce

Source: 2 IT's most wanted: Mainframe programmers

Source: 3The State of the Mainframe, 2022

Case Study

Insurance organization fails to mitigate risk of employee departure and incurs costly consequences – in the millions

INDUSTRY: Insurance

SOURCE: ITRG Member

Forward thinking organizations use knowledge transfer not only to avoid risks, but to drive IT innovation

IT knowledge transfer is a process that, at its most basic level, ensures that essential IT knowledge and capabilities don’t leave the organization – and at its most sophisticated level, drives innovation and customer service by leveraging knowledge assets.

Common obstacles

In building your knowledge transfer roadmap, the size of your organization can present unique challenges

How you build your knowledge transfer roadmap will not change drastically based on the size of your organization; however, the scope of your initiative, tactics you employ, and your communication plan for knowledge transfer may change.

How knowledge transfer projects vary by organization size:

Capture both explicit and tacit knowledge

Knowledge transfer is not a one-size-fits-all project

	No formal knowledge transfer program exists; knowledge transfer is ad hoc, or may be conducted through an exit interview only. 74% of organizations are at level 0.1
	At level one, knowledge transfer is focused around ensuring that high risk, explicit knowledge is covered for all high-risk stakeholders.
	Organizations have knowledge transfer plans for all high-risk knowledge to ensure redundancies exist and leverage this to drive process improvements, effectiveness, and employee engagement.
	Increase end-user satisfaction and create a knowledge value center by leveraging the collective knowledge to solve repeat customer issues and drive new product innovation.

1 Source: McLean & Company, 2016, N=120

Assess your fit for this blueprint by considering the following statements

I’m an IT Leader who…

This blueprint can help you build a roadmap to resolve each of these pain points. However, not all organizations need to have a knowledge culture. In the next section, we will walk you through the steps of selecting your target maturity model based on your knowledge goals.

Case Study

Siemens builds a knowledge culture to drive customer service improvements and increases sales by $122 million

INDUSTRY: Electronics Engineering

SOURCE: KM Best Practices

Info-Tech’s approach

Five steps to future-proof your IT team

The Info-Tech difference:

1. Successfully build a knowledge transfer roadmap based on your goals, no matter what market segment or size of business.
2. Increase departmental efficiencies through increased collaboration.
3. Retain key IT knowledge.
4. Improve junior employee engagement by creating development opportunities.

Use Info-Tech tools and templates

Info-Tech’s methodology to mitigate key IT employee knowledge loss

Blueprint deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

IT Knowledge Transfer Project Charter Establish a clear project scope, decision rights, and executive sponsorship for the project.		IT Knowledge Transfer Risk Assessment Tool Identify and assess the knowledge and individual risk of key knowledge holders.
IT Knowledge Identification Interview Guide Extract information about the type of knowledge sources have.		IT Knowledge Transfer Roadmap Presentation Communicate IT knowledge transfer recommendations to stakeholders to gain buy-in.

Key deliverable:

IT Knowledge Transfer Plan

Track knowledge activities, intended recipients, and appropriate transfer tactics for each knowledge source.

Blueprint benefits

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

“ Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

Guided Implementation

“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

Workshop

“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

Consulting

“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

Diagnostics and consistent frameworks used throughout all four options

Guided Implementation

What does a typical GI on this topic look like?

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization. A typical GI is five to six calls.

Workshop Overview

Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889

Phase #1

Initiate your IT knowledge transfer project

This phase will walk you through the following activities:

• Hold a working session with key stakeholders.
• Identify your current state of maturity for knowledge transfer.
• Identify your target state of maturity for knowledge transfer.
• Define key knowledge transfer metrics.
• Identify your project team and their responsibilities.
• Build the project charter and obtain approval.

This phase involves the following participants:

• IT Leadership
• Other key stakeholders

Step 1.1

Obtain Approval for Your IT Knowledge Transfer Project

Activities

1.1.1 Hold a Working Session With Key Stakeholders

1.1.2 Conduct a Current and Target State Analysis.

1.1.3 Identify Key Metrics

1.1.4 Identify Your Project Team

1.1.5 Populate an RACI

1.1.6 Build the Project Charter and Obtain Approval

Initiate Your IT Knowledge Transfer Project

The primary goal of this section is to gain a thorough understanding of the reasons why your organization should invest in knowledge transfer and to identify the specific challenges to address.

Outcomes of this step

Organizational benefits and current pain points of knowledge transfer

Hold a working session with the key stakeholders to structure the project

Don’t build your project charter in a vacuum. Involve key stakeholders to determine the desired knowledge transfer goals, target maturity and KPIs, and ultimately build the project charter.

Building the project charter as a group will help you to clarify your key messages and help secure buy-in from critical stakeholders up-front, which is key.

In order to execute on the knowledge transfer project, you will need significant involvement from your IT leadership team. The trouble is that knowledge transfer can be inherently stressful for employees as it can cause concerns around job security. Members of your IT leadership team will also be individuals who need to participate in knowledge transfer, so get them involved upfront. The working session will help stakeholders feel more engaged in the project, which is pivotal for success.

You may feel like a full project charter isn’t necessary, and depending on your organizational size, it might not be. However, the exercise of building the charter is important regardless. No matter your current climate, some level of socializing the value and plans for knowledge transfer will be necessary.

Meeting Agenda

1. Short project introduction

Led by: Project Sponsor

• Why the project was initiated.

Led by: Project Manager

• Current state: What project does the project address?
• Future state: What is our target state of maturity?

Led by: Project Manager

• How will success be measured?

Led by: Project Manager

• Description of planned project approach.
• Stakeholder assessment.
• What is required of the sponsor and stakeholders?

Led by: Project Manager

1.1.1 Key Stakeholder Working Session

Identify the pain points you’re experiencing with knowledge transfer and some of the benefits which you’d like to see from a program to determine the key objectives By doing so, you’ll get a holistic view of what you need to achieve.

Collect this information by:

1. Asking the working group participants (as a whole or in smaller groups) to discuss pain points created by ineffective knowledge transfer practices.

• Challenges related to stakeholders.
• Challenges created by process issues.
• Issues achieving the intended outcome due to ineffective knowledge transfer.
• Difficulties improving knowledge transfer practices.

Examples of Possible Pain Points

1.1.2 Conduct a Current and Target State Analysis

Identify your current and target state of maturity

How to determine your current and target state of maturity:

1. Provide the previous two slides with the details of the maturity assessment to the group, to review.
2. Ask each participant to individually determine what they think is the IT team’s current state of maturity. After a few minutes, discuss as a group and come to an agreement.
3. Review each of the benefits and timing for each of the maturity levels. Compare the benefits listed to those that you named in the previous exercise and determine which maturity level best describes your target state.
4. Discuss as a group and agree on one maturity level.
5. Review the other levels of maturity and determine what is in and out of scope for the project (hint: higher level benefits would be considered out of scope). Document this in the IT Knowledge Transfer Project Charter template.

IT Knowledge Transfer Project Charter Template

Info-Tech’s Knowledge Transfer Maturity Model

Depending on the level of maturity you are trying to achieve, a knowledge transfer project could take weeks, months, or even years. Your maturity level depends on the business goal you would like to achieve, and impacts who and what your roadmap targets.

Info-Tech Insight

The maturity levels build on one another; if you start with a project, it is possible to move from a level 0 to a level 1, and once the project is complete, you can advance to a level 2 or 3. However, it’s important to set clear boundaries upfront to limit scope creep, and it’s important to set appropriate expectations for what the project will deliver.

Knowledge Transfer Maturity Level: Accidental and Stabilize

Knowledge Transfer Maturity Level: Proactive and Knowledge Culture

Select project-specific KPIs

Use the selected KPIs to track the value of knowledge transfer

You need to ensure your knowledge transfer initiatives are having the desired effect and adjust course when necessary. Establishing an upfront list of key performance indicators that will be benchmarked and tracked is a crucial step.

Many organizations overlook the creation of KPIs for knowledge transfer because the benefits are often one step removed from the knowledge transfer itself. However, there are several metrics you can use to measure success.

Hint: Metrics will vary based on your knowledge transfer maturity goals.

Metrics For Knowledge Transfer

Creating KPIs for knowledge transfer is a crucial step that many organizations overlook because the benefits are often one step removed from the knowledge transfer itself. However, there are several qualitative and quantitative metrics you can use to measure success depending on your maturity level goals.

Stabilize

• Number of high departure risk employees identified.
• Number of high-risk employees without knowledge transfer plans.
• Number of post-retirement knowledge issues.

Be Proactive

• Number of issues arising from lack of redundancy.
• Percentage of high-risk knowledge items without transfer plans.
• Time required to get new employees up to speed.

Promote Knowledge Culture

• Percentage of returned deliverables for rework.
• Percentage of errors repeated in reports.
• Number of employees mentoring their colleagues.
• Number of issues solved through knowledge sharing.
• Percentage of employees with knowledge transfer/development plans.

1.1.3 Identify Key Metrics

Identify key metrics the organization will use to measure knowledge transfer success

How to determine knowledge transfer metrics:

1. Assign each participant 1-4 of the desired knowledge transfer benefits and pain points which you identified as priorities.
2. Independently have them brainstorm how they would measure the success of each, and after 10 minutes, present their thoughts to the group.
3. Write each of the metric suggestions on a whiteboard and agree to 3-5 benefits which you will track. The metrics you choose should relate to the key pain points you have identified and match your desired maturity level.

Identify knowledge transfer project team

Determine Project Participants	Pick a Project Sponsor
The project participants are the IT managers and directors whose day-to-day lives will be impacted by the knowledge transfer roadmap and its implementation. These individuals will be your roadmap ream and will help with planning. Most of these individuals should be in the workshop, but ensure you have everyone covered. Some examples of individuals you should consider for your team are: Director/Manager Level: Applications Infrastructure Operations Service Delivery Managers Business Relationship Managers	The project sponsor should be a member of your IT department’s senior executive team whose goals and objectives will be impacted by knowledge transfer implementation. This is the person you will get to sign-off on the project charter document.
The project sponsor is the main catalyst for the creation of the roadmap. They will be the one who signs off on the project roadmap. The Project Participants are the key stakeholders in your organization whose input will be pivotal to the creation of the roadmap. The project stakeholders are the senior executives who have a vested interest in knowledge transfer. Following completion of this workshop, you will present your roadmap to these individuals for approval.

1.1.4 Identify Your Project Team

How to define the knowledge transfer project team:

1. Through discussion, generate a complete list of key stakeholders, considering each of the roles indicated in the chart on the Key Project Management Stakeholders slide. Write their names on a whiteboard.
2. Using the quadrant template on the next slide, draw the stakeholder power map.
3. Evaluate each stakeholder on the list based on their level of influence and support of the project. Write the stakeholder’s name on a sticky note and place it in the appropriate place on the grid.
4. Create an engagement plan based on the stakeholder’s placement.
5. Use Info-Tech’s Project Stakeholder Register Template to identify and document your project management stakeholders.

Project Stakeholder Register Template

Have a strategic approach for engaging stakeholders to help secure buy-in

If your IT leadership team isn’t on board, you’re in serious trouble! IT leaders will not only be highly involved in the knowledge transfer project, but they also may be participants, so it’s essential that you get their buy-in for the project upfront.

Document the results in the Project Stakeholder Register Template; use this as a guide to help structure your communication with stakeholders based on where they fall on the grid.

How to Manage:	Focus on increasing these stakeholders’ level of support! Have a one-on-one meeting to seek their views on critical issues and address concerns. Identify key pain points they have experienced and incorporate these in the project goal statements. Where possible, leverage KT champions to help encourage support.		Capitalize on champions to drive the project/change. Use them for internal PR of the objectives and benefits. Ask them what other stakeholders can be leveraged. Involve them early in creating project documents.	How to Manage:
How to Manage:	Pick your battles – focus on your noise makers first, and then move on to your blockers. Determine the level of involvement the blockers will have in the project (i.e. what you will need from them in the future) and determine next steps based on this (one-on-one meeting, group meeting, informal communication, or leveraging helpers/ champions to encourage them).		Leverage this group where possible to help socialize the program and to help encourage dissenters to support. Mention their support in group settings. Focus on increasing their understanding via informal communication.	How to Manage:

Key Project Management Stakeholders

Ensure coverage of all project tasks

Populate a Project RACI (Responsible, Accountable, Consulted, Informed) chart

1.1.5 Populate an RACI

Populate a RACI chart to identify who should be responsible, accountable, consulted, and informed for each key activity.

How to define RACI for the project team:

1. Write out the list of all stakeholders along the top of a whiteboard. Write out the key project steps along the left-hand side (use this list as a starting point).
2. For each initiative, identify each team member’s role. Are they:

Responsible: The one responsible for getting the job done.

Accountable: Only one person can be accountable for each task.

Consulted: Involvement through input of knowledge and information.

Informed: Receiving information about process execution and quality.

3. As you proceed through the project, continue to add tasks and assign responsibility to the RACI chart on the next slide.

1.1.6 Build the Project Charter and Obtain Sign-off

Complete the IT knowledge transfer project charter.

Build the project charter and obtain sign-off from your project sponsor. Use your organization’s project charter if one exists. If not, customize Info-Tech’s IT Knowledge Transfer Project Charter Template to suit your needs.

IT Knowledge Transfer Project Charter Template

Step 1.2

Identify Your Knowledge and Stakeholder Risks

Activities

1.2.1 Identify Knowledge Sources

1.2.2 Complete a Knowledge Risk Assessment

1.2.3 Review the Prioritized List of Knowledge Sources

The primary goal of this section is to identify who your primary risk targets are for knowledge transfer.

Outcomes of this step

• A list of your high-risk knowledge sources
• Departure analysis
• Knowledge risk analysis

Prioritize your knowledge transfer initiatives

Throughout this section, we will walk through the following 3 activities in the tool to determine where you need to focus attention for your knowledge transfer roadmap based on knowledge value and likelihood of departure.

1. Identify Knowledge Sources

Create a list of knowledge sources for whom you will be conducting the analysis, and identify which sources currently have a transfer plan in place.

2. Value of Knowledge

Consider the type of knowledge held by each identified knowledge source and determine the level of risk based on the knowledge:

1. Criticality
2. Availability

3. Likelihood of Departure

Identify the knowledge source’s risk of leaving the organization based on their:

1. Age cohort
2. Engagement level

This tool contains sensitive information. Do not share this tool with knowledge sources. The BA and Project Manager, and potentially the project sponsor, should be the only ones who see the completed tool.

Focus on key roles instead of all roles in IT

Identify Key Roles

Hold a meeting with your IT Leadership team, or meet with members individually, and ask these questions to identify key roles:

• What are the roles that have a significant impact on delivering the business strategy?
• What are the key differentiating roles for our IT organization?
• Which roles, if vacant, would leave the organization open to non-compliance with regulatory or legal requirements?
• Which roles have a direct impact on the customer?
• Which roles, if vacant, would create system, function, or process failure for the organization?

Key roles include:

• Strategic roles: Roles that give the greatest competitive advantage. Often these are roles that involve decision-making responsibility.
• Core roles: Roles that must provide consistent results to achieve business goals.
• Proprietary roles: Roles that are tied closely to unique or proprietary internal processes or knowledge that cannot be procured externally. These are often highly technical or specialized.
• Required roles: Roles that support the department and are required to keep it moving forward day-to-day.
• Influential roles: Positions filled by employees who are the backbone of the organization, i.e. the go-to people who are the corporate culture.

Info-Tech Insight

This step is meant to help speed up and simplify the process for large IT organizations. IT organizations with fewer than 30 people, or organizations looking to build a knowledge culture, can opt to skip this step and include all members of the IT team. This way, everyone is considered and you can prioritize accordingly.

1.2.1 Identify Key Knowledge Sources

1. Identify key roles, as shown on the previous slide. This can be done by brainstorming names on sticky notes and placing them on a whiteboard.
2. Document using IT Knowledge Transfer Risk Assessment Tool Tab 2. Input with first name, last name, department/ IT area, and manager of each identified Knowledge Source.
3. Also answer the question of whether the Knowledge Source currently has a knowledge transfer plan in place.

• Not in place
• Partially in place
• In place

IT Knowledge Transfer Risk Assessment Tool

Document key knowledge sources (example)

Use information about the current state of knowledge transfer plans in your organization to understand your key risks and focus areas.

Legend:

1. Document knowledge source information (name, department, and manager).

2. Select the current state of knowledge transfer plans for each knowledge source.

Once you have identified key roles, conduct a sanity check and ask – “did we miss anybody?” For example:

• There are three systems administrators. One of them, Joe, has been with the organization for 15 years.
• Joe’s intimate systems knowledge and long-term relationship with one of the plant systems vendors has made him a go-to person during times of operational systems crisis and has resulted in systems support discounts.
• While the systems administrator role by itself is not considered key (partly due to role redundancy), Joe is a key person to flag for knowledge transfer activities as losing him would make achieving core business goals more difficult.

Case Study

Municipal government learns the importance of thorough knowledge source identification after losing key stakeholder

INDUSTRY: Government

Identify employees who may be nearing retirement and flag them as high risk

Info-Tech Insight

150% of an employee’s base salary and benefits is the estimated cost of turnover according to The Society of Human Resource Professionals.1

1McLean & Company, Make the Case for Employee Engagement

Identify disengaged employees who may be preparing to leave the organization

Info-Tech Insight

Engaged employees are five times more likely than disengaged employees to agree that they are committed to their organization.1

1Source: McLean & Company, N = 13683

The level of risk of the type of information is defined by criticality and availability

1.2.2 Complete a Knowledge Risk Assessment

Complete a Tab 3 assessment for each of your identified Knowledge Sources. The Knowledge Source tab will pre-populate with information from Tab 2 of the tool. For each knowledge source, you will determine their likelihood of departure and degree of knowledge risk.

Likelihood of departure:

1. Document the age cohort risk for each knowledge source on Tab 3 of the IT Knowledge Transfer Risk Assessment Tool. Age Cohort: Under 50, 51-55, 56-60, or over 60.
2. Document the engagement risk for each knowledge source on Tab 3, “Assessment”, of the IT Knowledge Transfer Risk Assessment Tool. Engagement level: Engaged, Almost engaged, Indifferent employees, Disengaged.

Degree of knowledge risk is based on:

3. Document the knowledge type risk for each stakeholder on Tab 3, “Assessment” in the IT Knowledge Transfer Risk Assessment Tool.

• Criticality: Would the role, if vacant, create system, function, or process failure for the organization?
• Availability: Does this individual have specialized, unique, or proprietary expertise? Are there internal redundancies?

IT Knowledge Transfer Risk Assessment Tool

Results matrix

Determine where to focus your efforts

The IT Knowledge Transfer Map on Tab 5 helps you to determine where to focus your knowledge transfer efforts

Knowledge sources have been separated into the three maturity levels (Stabilize, Proactive, and Knowledge Culture) and prioritized within each level.

Focus first on your stabilize groups, and based on your target maturity goal, move on to your proactive and knowledge culture groups respectively.

1.2.3 Review the Prioritized List

Review results

Identify knowledge sources to focus on for the knowledge transfer roadmap. Review the IT Knowledge Transfer Map on Tab 5 to determine where to focus your knowledge transfer efforts

1. Show the results from the assessment tool.
2. Discuss matrix and prioritized list.

• Does it match with maturity goals?
• Do prioritizations seem correct?

IT Knowledge Transfer Risk Assessment Tool

Phase #2

Design your knowledge transfer plans

This phase will walk you through the following activities:

• Building knowledge transfer plans for all prioritized knowledge sources.
• Understanding which transfer tactics are best suited for different knowledge types.
• Identifying opportunities to leverage collaboration tools for knowledge transfer.

This phase involves the following participants:

• IT Leadership
• Other key stakeholders
• Knowledge sources

Determine knowledge transfer tactics

Determine tactics for each stakeholder based on qualities of their specific knowledge.

This tool is built to accommodate up to 30 knowledge items; Info-Tech recommends focusing on the top 10-15 items.

1. Send documents to each manager. Include:

• a copy of this template.
• interview guide.
• tactics booklet.

These steps should be completed by the BA or IT Manager. The BA is helpful to have around because they can learn about the tactics and answer any questions about the tactics that the managers might have when completing the template.

IT Knowledge Transfer Plan Template

Step 2.1

Build Your Knowledge Transfer Plans

Activities

2.1.1 Interview Knowledge Sources to Uncover Key Knowledge Items

2.1.2 Identify When to use Knowledge Transfer Tactics

2.1.3 Build Individual Knowledge Transfer Plans

The primary goal of this section is to build an interview guide and interview knowledge sources to identify key knowledge assets.

Outcomes of this step

• Knowledge Transfer Interview Guide
• Itemized knowledge assets
• Completed knowledge transfer plans

2.1.1 Interview Knowledge Sources

Determine key knowledge items

The first step is for managers to interview knowledge sources in order to extract information about the type of knowledge the source has.

Meet with the knowledge sources and work with them to identify essential knowledge. Use the following questions as guidance:

1. What are you an expert in?
2. What do others ask you for assistance with?
3. What are you known for?
4. What are key responsibilities you have that no one else has or knows how to do?
5. Are there any key systems, processes, or applications which you’ve taken the lead on?
6. When you go on vacation, what is waiting for you in your inbox?
7. If you went on vacation, would there be any systems that, if there was a failure, you would be the only one who knows how to fix?
8. Would you say that all the key processes you use, or tools, codes etc. are documented?

IT Knowledge Identification Interview Guide Template

2.1.2 Understand Knowledge Transfer Tactics

Understand when and how to use different knowledge transfer tactics

1. Break the workshop participants into teams. Assign each team two to four knowledge transfer tactics and provide them with the associated handout(s) from the following slides. Using the material provided, have each team brainstorm around the following questions:
1. What types of information can the technique be used to collect?
2. What are examples of good use cases for the technique?
3. Why would you use this technique over others?
4. Is this technique suitable for all projects? When wouldn’t you use it?
2. Have each group present their findings from the brainstorming to the group.
3. Once everyone has presented, have the groups select which tactics they would be interested in using and which ones they would not want to use by putting green and red dots on each.
4. As a group, confirm the list of tactics you would be interested in using and disqualify the others.

Knowledge Transfer Tactics:

Interviews

Interviews provide an opportunity to meet one-on-one with key stakeholders to document key knowledge assets. Interviews can be used for explicit and tacit information, and in particular, capture processes, rules, coding information, best practices, etc.

Benefits:

• Good bang-for-your-buck interviews are simple to conduct and can be used for all types of knowledge.
• Interviews can obtain a lot of information in a relatively short period of time.
• Interviews help make tacit knowledge more explicit through effective questioning.
• They have highly flexible formatting as interviews can be conducted in person, over the phone, or by email.

How to get started:

1. Have the business analyst (BA) review the employee’s knowledge transfer plan and highlight the areas to be discussed in the interview.
2. The BA will then create an interview guide detailing key questions which would need to be asked to ascertain the information.
3. Schedule a 30-60 minute interview. When complete, document the interview and key lessons learned. Send the information back to the interviewee for validation of what was discussed.

Knowledge Transfer Tactics:

Process Mapping

Business process mapping refers to building a flow chart diagram of the sequence of actions which defines what a business does. The flow chart defines exactly what a process does and the specific succession of steps including all inputs, outputs, flows, and linkages. Process maps are a powerful tool to frame requirements in the context of the complete solution.

Benefits:

• They are simple to build and analyze; most organizations and users are familiar with flow diagrams, making them highly usable.
• They provide an end-to-end picture of a process.
• They’re ideal for gathering full and detailed requirements of a process.
• They include information around who is responsible, what they do, when, where it occurs, triggers, to what degree, and how often it occurs.
• They’re great for legacy systems.

How to get started:

1. Have the BA prepare beforehand by doing some preliminary research on the purpose of the process, and the beginning and end points.
2. With the knowledge holder, use a whiteboard and identify the different stakeholders who interact with the process, and draw swim lanes for each.
3. Together, use sticky notes and/or dry erase markers etc. to draw out the process.
4. When you believe you’re complete, start again from the beginning and break the process down to more details.

Knowledge Transfer Tactics:

Use Cases

Use case diagrams are a common transfer tactic where the BA maps out step-by-step how an employee completes a project or uses a system. Use cases show what a system or project does rather than how it does it. Use cases are frequently used by product managers and developers.

Benefits:

• Easy to draw and understand.
• Simple way to digest information.
• Can get very detailed.
• Should be used for documenting processes, experiences etc.
• Initiation and brainstorming.
• Great for legacy systems.

How to get started:

1. The BA will schedule a 30-60 minute in-person meeting with the employee, draw a stick figure on the left side of the board, and pose the initial question: “If you need to do X, what is your first step?” Have the stakeholder go step-by-step through the process until the end goal. Draw this process across the whiteboard. Make sure you capture the triggers, causes of events, decision points, outcomes, tools, and interactions.
2. Starting at the beginning of the diagram, go through each step again and ask the employee if the step can be broken down into more granular steps. If the answer is yes, break down the use case further.
3. Ask the employee if there are any alternative flows that people could use, or any exceptions. If there are, map these out on the board.

Knowledge Transfer Tactics:

Job Shadow

Job shadowing is a working arrangement where the “knowledge receiver” learns how to do a job by observing an experienced employee complete key tasks throughout their normal workday.

Benefits:

• Low cost and minimal effort required.
• Helps employees understand different elements of the business.
• Helps build relationships.
• Good for knowledge holders who are not great communicators.
• Great for legacy systems.

How to get started:

1. Determine goals and objectives for the knowledge transfer, and communicate these to the knowledge source and receiver.
2. Have the knowledge source identify when they will be performing a particular knowledge activity and select that day for the job shadow. If the information is primarily experience, select any day which is convenient.
3. Ask the knowledge receiver to shadow the source and ask questions whenever they have them.
4. Following the job shadow, have the knowledge receiver document what they learned that day and file that information.

Knowledge Transfer Tactics:

Peer Assist

Meeting or workshop where peers from different teams share their experiences and knowledge with individuals or teams that require help with a specific challenge or problem.

Benefits:

• Improves productivity through enhanced problem solving.
• Encourages collaboration between teams to share insight, and assistance from people outside your team to obtain new possible approaches.
• Promotes sharing and development of new connections among different staff, and creates opportunities for innovation.
• Can be combined with Action Reviews.

How to get started:

1. Create a registry of key projects that different individuals have solved. Where applicable, leverage the existing work done through action reviews.
2. Create and communicate a process for knowledge sources and receivers to reach out to one another. Email or social collaboration platforms are the most common.
3. The source may then reply with documentation or a peer can set up an interview to discuss.
4. Information should be recorded and saved on a corporate share drive with appropriate metadata to ensure ease of search.
5. See Appendix for further details.

Knowledge Transfer Tactics:

Transition Workshop

A half- to full-day exercise where an outgoing leader facilitates a knowledge transfer of key insights they have learned along the way and any high-profile knowledge they may have.

Benefits:

• Accelerates knowledge transfer following a leadership change.
• Ensures business continuity.
• New leader gets a chance to understand the business drivers behind team decisions and skills of each member.
• The individuals on the team learn about the new leader’s values and communication styles.

How to get started:

1. Outgoing leader organizes a one-time session where they share information with the team (focus on tacit knowledge, such as team successes and challenges) and team can ask questions.
2. Incoming leader and remaining team members share information about norms, priorities, and values.
3. Document the information.

Knowledge Transfer Tactics:

Action Review

Action Review is a team-based discussion at the end of a project or step to review how the activity went and what can be done differently next time. It is ideal for transferring expertise and skills.

Benefits:

• Learning is done during and immediately after the project so that knowledge transfer happens quickly.
• Results can be shared with other teams outside of the immediate members.
• Makes tacit knowledge explicit.
• Encourages a culture where making mistakes is OK, but you need to learn from them.

How to get started:

1. Hold an initial meeting with IT teams to inform them of the action reviews. Create an action review goals statement by working with IT teams to discuss what they hope to get out of the initiative.
2. Ask project teams to present their work and answer the following questions:
1. What was supposed to happen?
2. What actually happened?
3. Why were there differences?
4. What can we learn and do differently next time?
3. Have each individual or group present, record the meeting minutes, and send the details to the group for future reference. Determine a share storage place on your company intranet or shared drive for future reference.

Knowledge Transfer Tactics:

Mentoring

Mentoring can be a formal program where management sets schedules and expectations. It can also be informal through an environment for open dialogue where staff is encouraged to seek advice and guidance, and to share their knowledge with more novice members of the organization.

Benefits:

• Speeds up learning curves and helps staff acclimate to the organizational culture.
• Communicates organizational values and appropriate behaviors, and is an effective way to augment training efforts.
• Leads to higher engagement by improving communication among employees, developing leadership, and helping employees work effectively.
• Improves succession planning by preparing and grooming employees for future roles and ensuring the next wave of managers is qualified.

How to get started:

1. Have senior management define the goals for a mentorship program. Depending on your goals, the frequency, duration, and purpose for mentorship will change. Create a mission statement for the program.
2. Communicate the program with mentors and mentees and define what the scope of their roles will be.
3. Implement the program and measure success.

Creating a mentorship program is a full project in itself. For full details on how to set up a mentorship program, see McLean & Company’s Build a Mentoring Program.

Knowledge Transfer Tactics:

Story Telling

Knowledge sources use anecdotal examples to highlight a specific point and pass on information, experience, and ideas through narrative.

Benefits:

• Provides context and transfers expertise in a simple way between people of different contexts and background.
• Illustrates a point effectively and makes a lasting impression.
• Helps others learn from past situations and respond more effectively in future ones.
• Can be completed in person, through blogs, video or audio recordings, or case studies.

How to get started:

1. Select a medium for how your organization will record stories, whether through blogs, video or audio recordings, or case studies. Develop a template for how you’re going to record the information.
2. Integrate story telling into key activities – project wrap-up, job descriptions, morning meetings, etc.
3. Determine the medium for retaining and searching stories.

Knowledge Transfer Tactics:

Job Share

Job share exists when at least two people share the knowledge and responsibilities of two job roles.

Benefits:

• Reduces the risk of concentrating all knowledge in one person and creating a single point of failure.
• Increases the number of experts who hold key knowledge that can be shared with others, i.e. “two heads are better than one.”
• Ensures redundancies exist for when an employee leaves or goes on vacation.
• Great for getting junior employees up to speed on legacy system functionality.
• Results in more agile teams.
• Doubles the amount of skills and expertise.

How to get started:

1. Determine which elements of two individuals’ job duties could be shared by two people. Before embarking on a job share, ensure that the two individuals will work well together as a team and individually.
2. Establish a vision, clear values, and well-defined roles, responsibilities, and reporting relationships to avoid duplication of effort and confusion.
3. Start with a pilot group of employees who are in support of the initiative, track the results, and make adjustments where needed.

Knowledge Transfer Tactics:

Communities of Practice

Communities of practice are working groups of individuals who engage in a process of regularly sharing information with each other across different parts of the organization by focusing on common purpose and working practices. These groups meet on a regular basis to work together on problem solving, to gain information, ask for help and assets, and share opinions and best practices.

Benefits:

• Supports a collaborative environment.
• Creates a sense of community and positive working relationships, which is a key driver for engagement.
• Encourages creative thinking and support of one another.
• Facilitates transfer of wide range of knowledge between people from different specialties.
• Fast access to information.
• Multiple employees hear the answers to questions and discussions, resulting in wider spread knowledge.
• Can be done in person or via video conference, and is best when supported by social collaboration tools.

How to get started:

1. Determine your medium for these communities and ensure you have the needed technology.
2. Develop training materials, and a rewards and recognition process for communities.
3. Have a meeting with staff, ask them to brainstorm a list of different key “communities,” and ask staff to self select into communities.
4. Have the communities determine the purpose statement for each group, and set up guidelines for functionality and uses.

The effectiveness of each knowledge transfer tactic varies based on the type of knowledge you are trying to transfer

This table shows the relative strengths and weaknesses of each knowledge transfer tactic compared to four different knowledge types.

Not all techniques are effective for types of knowledge; it is important to use a healthy mixture of techniques to optimize effectiveness.

Very strong = Very effective

Strong = Effective

Medium = Somewhat effective

Weak = Minimally effective

Very weak = Not effective

Consider your stakeholders’ level of engagement prior to selecting a knowledge transfer tactic

When considering which tactics to employ, it’s important to consider the knowledge holder’s level of engagement. Employees whom you would identify as being disengaged may not make good candidates for job shadowing, mentoring, or other tactics where they are required to do additional work or are asked to influence others.

Knowledge transfer can be controversial for all employees as it can cause feelings of job insecurity. It’s essential that motivations for knowledge transfer are communicated effectively.

Pay particular attention to your communication style with disengaged and indifferent employees, communicate frequently, and tie communication back to what’s in it for them.

Putting disengaged employees in a position where they are mentoring others can be a risk. Their negativity could influence others not to participate as well or negate the work you’re doing to create a positive knowledge sharing culture.

Consider using collaboration tools as a medium for knowledge transfer

There is a wide variety of different collaboration tools available to enable interpersonal and team connections for work-related purposes. Familiarize yourself with all types of collaboration tools to understand what is available to help facilitate knowledge transfer.

For more information on Collaboration Tools and how to use them, see Info-Tech’s Establish a Communication and Collaboration System Strategy.

Identify potential knowledge receivers

Hold a meeting with your IT leaders to identify who would be the best knowledge receivers for specific knowledge assets

• Before deciding on a successor, determine how the knowledge asset will be used in the future. This will impact who the receiver will be and your tactic. That is, if you are looking to upgrade a technology in the future, consider who would be taking on that project and what they would need to know.
• Prior to the meeting, each manager should send a copy of the knowledge assets they have identified to the other managers.
• Participants should come equipped with names of members of their teams and have an idea of what their career aspirations are.
• Don’t assume that all employees want a career change. Be sure to have conversations with employees to determine their career aspirations.

Ask how effectively the potential knowledge receiver would serve in the role today.

• Review their competencies in terms of:
  • Relationship-building skills
  • Business skills
  • Technical skills
  • Industry-specific skills or knowledge
• Consider what competencies the knowledge receiver currently has and what must be learned.
• Finally, determine how difficult it will be for the knowledge receiver to acquire missing skills or knowledge, whether the resources are available to provide the required development, and how long it will take to provide it.

Info-Tech Insight

Wherever possible, ask employees about their personal learning styles. It’s likely that a collaborative compromise will have to be struck for knowledge transfer to work well.

Using the IT knowledge transfer plan tool

We will use the IT Knowledge Transfer Plans as the foundation for building your knowledge transfer roadmap.

2.1.3 Complete Knowledge Transfer Plans

Complete one plan template for each of the knowledge sources

1. Fill in the top with the knowledge source’s name. Remember that one template should be filled out for each source.
2. List their key knowledge activities as identified through the interview.
3. For each knowledge activity, identify and list the most appropriate recipient of this knowledge.
4. For each knowledge activity, use the drop-down options to identify the type of knowledge that it falls under.
5. Depending on the type of knowledge, different tactic drop-down options are available. Select which tactic would be most appropriate for this knowledge as well as the people involved in the knowledge transfer.

The Strength Level column will indicate how well matched the tactic is to the type of knowledge.

IT Knowledge Transfer Plan Template

Step 2.2

Build Your Knowledge Transfer Roadmap

Activities

2.2.1 Merge Your Knowledge Transfer Plans

2.2.2 Define Knowledge Transfer Initiatives’ Timeframes

The goal of this step is to build the logistics of the knowledge transfer roadmap to prepare to communicate it to key stakeholders.

Outcomes of this step

• Prioritized sequence based on target state maturity goals.
• Project roadmap.

Plan and monitor the knowledge transfer project

Depending on the desired state of maturity, the number of initiatives your organization has will vary and there could be a lengthy number of tasks and subtasks required to reach your organization knowledge transfer target state. The best way to plan, organize, and manage all of them is with a project roadmap.

Project Planning & Monitoring Tool

Steps to use the project planning and monitoring tool:

1. Begin by identifying all the project deliverables in scope for your organization. Review the previous content pertaining to specific people, process, and technology deliverables that your organization plans on creating.
2. Identify all the tasks and subtasks necessary to create each deliverable.
3. Arrange the tasks in the appropriate sequential order.
4. Assign each task to a member of the project team.
5. Estimate the day the task will be started and completed.
6. Specify any significant dependencies or prerequisites between tasks.
7. Update the project roadmap throughout the project by accounting for injections and entering the actual starting and ending dates.
8. Use the project dashboard to monitor the project progress and identify risks early.

Project Planning & Monitoring Tool

Prioritize your tactics to build a realistic roadmap

Initiatives should not and cannot be tackled all at once;

• At this stage, each of the identified stakeholders should have a knowledge transfer plan for each of their reports with rough estimates for how long initiatives will take.
• Simply looking at this raw list of transition plans can be daunting. Logically bundle the identified needs into IT initiatives to create the optimal IT Knowledge Transfer Roadmap.
• It’s important not to try to do too much too quickly. Focus on some quick wins and leverage the success of these initiatives to drive the project forward.

Populate the task column of the Project Planning and Monitoring Tool. See the following slides for more details on how to do this.

Some techniques require a higher degree of effort than others

Consider each tactic’s dependencies as you build your roadmap

2.2.1 Merge Your Knowledge Transfer Plans

Populate the task column of the Project Planning and Monitoring Tool

1. Take an inventory of all the tactics and techniques which you plan to employ. Eliminate redundancies where possible.
2. Start your implementation with your highest risk group using explicit knowledge transfer tactics. Interviews, use cases, and process mapping will give you some quick wins and will help gain momentum for the project.
3. Proactive and knowledge culture should then move forward to other tactics, the majority of which will require training and process design. Pick one to two other key tactics you would like to employ and build those out.
4. Once you get more advanced, you can continue to grow the number of tactics you employ, but in the beginning, less is more. Keep growing your implementation roadmap one tactic at a time and track key metrics as you go.

Project Planning & Monitoring Tool

2.2.2 Define Initiatives’ Timeframes

Populate the estimated start and completion date and task owner columns of the Project Planning and Monitoring Tool.

1. Define the time frame: time frames will depend on several factors. Consider the following while defining timelines for your knowledge transfer tactics:

• Tactics you choose to employ
• Availability of resources to implement the initiative
• Technology requirements

• Planned
• In progress
• Completed

• Engage all required stakeholders at appropriate stages of the project.
• Engage all required resources to implement the process and make sure that communication channels are open and available between all relevant parties.

Project Planning & Monitoring Tool

Once you start the implementation, leverage the Project Planning and Monitoring Tool for ongoing status updates

Track your progress

• Update your project roadmap as you complete the project and keep track of your progress by completing the “Actual Start Date” and “Actual Completion Date” as you go through your project.
• Use the Progress Report tab in project team meetings to update stakeholders on which tasks have been completed on schedule, for an analysis of tasks to date, and project time management.

Phase #3

Implement your knowledge transfer plans and roadmap

This phase will walk you through the following activities:

• Preparing a key stakeholder communication presentation.

This phase involves the following participants:

• IT Leadership
• Other key stakeholders

Step 3.1

Communicate Your Knowledge Transfer Roadmap to Stakeholders

Activities

3.1.1 Prepare IT Knowledge Transfer Roadmap Presentation

The goal of this step is to be ready to communicate the roadmap with the project team, project sponsor, and other key stakeholders.

Outcomes of this step

• Key stakeholder communication deck.

Use Info-Tech’s template to communicate with stakeholders

Obtain approval for the IT Knowledge Transfer Roadmap by customizing Info-Tech’s IT Knowledge Transfer Roadmap Presentation Template designed to effectively convey your key messages. Tailor the template to suit your needs.

It includes:

• Project Context
• Project Scope and Objectives
• Knowledge Transfer Roadmap
• Next Steps

Info-Tech Insight

The support of IT leadership is critical to the success of your roadmap roll-out. Remind them of the project benefits and impact them hard with the risks/pain points.

IT Knowledge Transfer Roadmap Presentation Template

3.1.1 Prepare a Presentation for Your Project Team and Sponsor

Now that you have created your knowledge transfer roadmap, the final step of the process is to get sign-off from the project sponsor to begin the planning process to roll-out your initiatives.

Know your audience:

1. Revisit your project charter to determine the knowledge transfer project stakeholders who will be included in your presentation audience.
2. You want your presentation to be succinct and hard-hitting. Management’s time is tight, and they will lose interest if you drag out the delivery. Impact them hard and fast with the pains and benefits of your roadmap.
3. The presentation should take no more than an hour. Depending on your audience, the actual presentation delivery could be quite short (12-13 slides). However, you want to ensure adequate time for Q & A.

IT Knowledge Transfer Roadmap Presentation Template

Related Info-Tech Research

Build an IT Succession Plan

Train Managers to Handle Difficult Conversations

Lead Staff Through Change

Bibliography

Babcock, Pamela. “Shedding Light on Knowledge Management.” HR Magazine, 1 May 2004.

King, Rachael. "Big Tech Problem as Mainframes Outlast Workforce." Bloomberg, 3 Aug. 2010. Web.

Krill, Paul. “IT’s Most Wanted: Mainframe Programmers.” IDG Communications, Inc. 1 December 2011.

McLean & Company. “Mitigate the Risk of Baby Boomer Retirement with Scalable Succession Planning.” 7 March 2016.

McLean & Company. “Make the Case For Employee Engagement.” McLean and Company. 27 March 2014.

PwC. “15th Annual Global CEO Survey: Delivering Results Growth and Value in a Volatile World.” PwC, 2012.

Rocket Software, Inc. “Rocket Software 2022 Survey Report: The State of the Mainframe.” Rocket Software, Inc. January 2022. Accessed 30 April 2022.

Ross, Jenna. “Intangible Assets: A Hidden but Crucial Driver of Company Value.” Visual Capitalist, 11 February 2020. Accessed 2 May 2022.

IT Talent Trends 2022

The last two years have been a great experiment … but it’s not over yet.

Incorporate new ways of working into your business to build and keep the best team.

Over the past two years, organizations have ventured into unprecedented ways of working and supporting their employees, as they tried to maintain productivity through the pandemic. This experiment has made lasting changes to both business models and employee expectations, and these effects will continue to be seen long after we return to a “new normal.”

While the pandemic forced us to work differently for the past two years, looking forward, successful organizations will incorporate new ways of working into their business models – beyond simply having a remote work policy.

How we work, source roles, and develop talent continue to evolve as we navigate a different world with employees being more vocal in their desires, and leaders continue to play a key role.

The IT talent market will never be the same, and organizations must reevaluate their employee experience from the bottom up to successfully weather the shift to the new normal.

IT Talent Trends 2022

The pandemic has clarified employees’ needs and amplified their voices

If 2021 was about beginning to act on employee needs, 2022 will be about strategically examining each trend to ensure that the actions taken by the organization are more than lip service.

Employees have always been able to see through disingenuous attempts to engage them, but in 2022 the stakes are higher due to increased talent mobility.

Trends that were just starting to come into focus last year have established themselves as critical determinants of the employee experience in 2022.

2021			DEI: A Top Talent Objective	Remote Work Is Here to Stay	Uncertainty Unlocks Performance	A Shift in Skills Priorities	A Greater Emphasis on Wellbeing
2022	Strategic Recruiting Finds Good Talent Finding talent in a strained talent market requires a marketing approach. Posting a job description isn’t enough.	The (Not So) Great Resignation IT is faring better than other functions; however, specific industries need to pay attention.	Grow Your DEI Practices Into Meaningful Actions Good intentions are not enough.	Remote Work Is Here – Can Your Culture Adapt? The Great Experiment is over. Are leaders equipped to capitalize on its promises?		Management Skills Drive Success in a Remote World Despite the need for remote team management training, it is still not happening.

What employees are looking for is changing

Superficial elements of traditional office culture were stripped away by the quick shift to a remote environment, giving employees the opportunity to reevaluate what truly matters to them in a job.

The biggest change from 2019 (pre-pandemic) to today is increases in the importance of culture, flexible/remote work, and work-life balance.

Organizations that fail to keep up with this shift in priorities will see the greatest difficulty in hiring and retaining staff.

As an employee, which of the following would be important to you when considering a potential employer?

	2019		2021
Flexible Work	n=275		n=206
Work-Life Balance	n=277		n=206
Culture	n=277		n=206
Source: Info-Tech Talent Trends Survey data collected in 2019 and 2021	Very Important Somewhat Important Not at All Important

IT’s top talent priorities in 2022

IT Talent Trends 2022

Look beneath the surface of the trends to navigate them successfully

Above Ground Focusing on what you see 'Above the line" won't solve the problem. Talent isn't a checklist.	Strategic Recruiting Finds Good Talent Finding talent in a strained talent market requires a marketing approach. Posting a job description isn't enough. The number of job openings increased to 11.4 million on the last business day of October, up from 10.6 million in September (US Bureau of Labor Statistics, Dec. 2021)	The (Not So) Great Resignation IT is faring better than other functions; however, specific industries need to pay attention. In September, in the US, 4.4 million people left their jobs. That number dropped to 4.2 million in October. (US Labor Stats, Dec. 2021) 30% of workers will likely switch jobs if they have to return to the office full time. (McKinsey, Dec. 2021)	Grow Your DEI Practices Into Meaningful Actions Good intentions are not enough. 95% of organizations are focusing on DEI. (2022 HR Trends Report) 48% of IT departments have delivered training on DEI over the past year.	Remote Work is Here. Can Your Culture Adapt? The Great Experiment is over. Are you equipped to capitalize on its promises? 85% of organizations saw the same or higher productivity during the pandemic. 91% of organizations are continuing remote work.	Management Skills Drive Success in a Remote World Despite the need for remote team management training, it is still not happening. 72% of IT departments report high effectiveness at managing remote staff. Learning and development is IT's top priority.
Beneath the Surface For each trend, a strategic approach to get "under the line" will help form your response. Talent needs a holistic approach, as under the line everything is connected. If you are experiencing challenges in one area, analyzing data (e.g. engagement, exit surveys, effectiveness of DEI program and leader training) can help drive overall experience.	100% of job seekers cite culture as somewhat to very important. Only 40% of employers advertise culture in job postings.	70% of IT departments state voluntary turnover is less than 10% Top reasons for resignation are salary, development, and opportunity for innovative work. Resignation rates were higher in fields that had experienced extreme stress due to the pandemic (HBR, Dec. 2021)	Senior leadership is overestimating their own commitment to DEI. Most IT departments are not driving their own DEI initiatives. Without effectively measuring DEI practices, organizations will see 1.6x more turnover. (2022 HR Trends Report)	Senior leadership is not open to remote work in 23% of organizations. Without leadership support, employees will not buy into remote work initiatives. A remote work policy will not bring organizational benefits without employee buy-in.	75% of senior managers believe remote team management is highly effective, but only 60% of frontline staff agree. Training focuses on technical skills, to the exclusion of soft skills, including management and leadership.
Solutions Recommendations depending on your department's maturity level.	Attention is required for candidate experience underpinned by a realistic employee value proposition.	Gather and review existing data (e.g. early retirements, demographics) to understand your turnover rate.	Use employee engagement tools to gauge employee sentiment among impacted groups and build out an engagement strategy to meet those needs.	Conduct a cultural assessment to reveal hidden biases that may stand in the way of remote work efficacy.	Provide management training on performance management and development coaching.

This report is based on organizations just like yours

Survey timeline = October 2021
Total respondents = 245 IT professionals

01	United States	45%	08	Middle East	2%
02	Canada	23%	09	Other (Asia)	2%
03	Africa	8%	10	Germany	1%
04	Great Britain	6%	11	India	1%
05	Latin America, South America or Caribbean	4%	12	Netherlands	1%
06	Other (Europe)	4%	13	New Zealand	1%
07	Australia	2%			(N-245)

(n=191)

This report is based on organizations just like yours

Industry

Info-Tech IT Maturity Model

(n=225)

Innovator – Transforms the Business Reliable Technology Innovation Business Partner – Expands the Business Effective Execution Projects, Strategic Use of Analytics and Customer Technology Trusted Operator – Optimizes Business Effective Fulfillment of Work Orders, Functional Business Applications, and Reliable Data Quality Firefighter – Supports the Business Reliable Infrastructure and IT Service Desk Unstable – Struggles to Support Inability to Provide Reliable Business Services

This report is based on people just like you

Which of the following ethnicities (ethnicity refers to a group with a shared or common identity, culture, and/or language) do you identify with? Select all that apply.	What gender do you identify most with?
(N=245)	(n=228)

This report is based on people just like you

What is your sub-department of IT?	Which title best describes your position?
(n=227)	(N=245)

IT Talent Trends 2022

Each trend is introduced with key questions you can ask yourself to see how your department fares in that area.

The report is based on statistics from a survey of 245 of your peers.

It includes recommendations of next steps and a key metric to track your success.

It lists Info-Tech resources that you, as a member, can leverage to begin your journey to improve talent management in your department.

The report is based on data gathered from Info-Tech Research Group’s 2022 IT Talent Trends Survey. The data was gathered in September and October of 2021.

Strategic Recruiting Finds Good Talent

Trend 1 | The Battle to Find and Keep Talent

As the economy has stabilized, more jobs have become available, creating a job seeker’s market. This is a clear sign of confidence in the economy, however fragile, as new waves of the pandemic continue.

Info-Tech Point of View

Recruiting tactics are an outcome of a well-defined candidate experience and employee value proposition.

Introduction

	During our interviews, members that focused on sharing their culture with a strong employee value proposition were more likely to be successful in hiring their first-choice candidates.
	Questions to ask yourself Do you have a well-articulated employee value proposition? Are you using your job postings to market your company culture? Have you explored multiple channels for posting jobs to increase your talent pool of candidates?

47% of respondents are hiring external talent to fill existing gaps, with 40% using external training programs to upgrade current employees. (Info-Tech IT Talent Trends 2022 Survey)

In October, the available jobs (in the USA) unexpectedly rose to 11 million, higher than the 10.4 million experts predicted. (CNN Business, 2021)

Where has all the talent gone?

IT faces multiple challenges when recruiting for specialized talent

Talent scarcity is focused in areas with specialized skill sets such as security and architecture that are dynamic and evolving faster than other skill sets.

“It depends on what field you work in,” said ADP chief economist Nela Richardson. “There were labor shortages in those fields pre-pandemic and two years forward, there is even more demand for people with those skills” (CNBC, 19 Nov. 2021).

37% of IT departments are outsourcing roles to fill internal skill shortages. (Info-Tech Talent Trends 2022 Survey)

Roles Difficult to Fill

(Info-Tech Talent Trends 2022 Survey)

Case Study: Using culture to drive your talent pool

This case study is happening in real time. Please check back to learn more as Goddard continues to recruit for the position.

Recruiting at NASA

Goddard Space Center is the largest of NASA’s space centers with approximately 11,000 employees. It is currently recruiting for a senior technical role for commercial launches. The position requires consulting and working with external partners and vendors.

NASA is a highly desirable employer due to its strong culture of inclusivity, belonging, teamwork, learning, and growth. Its culture is anchored by a compelling vision, “For the betterment of Humankind,” and amplified by a strong leadership team that actively lives their mission and vision daily.

Firsthand lists NASA as #1 on the 50 most prestigious internships for 2022.

Rural location and no flexible work options add to the complexity of recruiting

The position is in a rural area of Eastern Shore Virginia with a population of approximately 60,000 people, which translates to a small pool of candidates. Any hire from outside the area will be expected to relocate as the senior technician must be onsite to support launches twice a month. Financial relocation support is not offered and the position is a two-year assignment with the option of extension that could eventually become permanent.

“Looking for a Talent Unicorn; a qualified, experienced candidate with both leadership skills and deep technical expertise that can grow and learn with emerging technologies.”

Steve Thornton
Acting Division Chief, Solutions Division,
Goddard Space Flight Center, NASA

Case Study: Using culture to drive your talent pool

A good brand overcomes challenges

Culture takes the lead in NASA's job postings, which attract a high number of candidates. Postings begin with a link to a short video on working at NASA, its history, and how it lives its vision. The video highlights NASA's diversity of perspectives, career development, and learning opportunities.

NASA's company brand and employer brand are tightly intertwined, providing a consistent view of the organization.

The employer vision is presented in the best place to reach NASA's ideal candidate: usajobs.gov, the official website of the United States Government and the “go-to” for government job listings. NASA also extends its postings to other generic job sites as well as LinkedIn and professional associations.

Interview with Robert Leahy
Chief Information Officer
Goddard Space Flight Center, NASA

“Making sure we have the tools and mechanisms are two hiring challenges we are going to face in the future as how we work evolves and our work environment changes. What will we need to consider with our job announcements and the criteria for selecting employees?”

Liteshia Dennis,
Office Chief, Headquarter IT Office, Goddard Space Flight Center, NASA

The ability to attract and secure candidates requires a strategy

Despite prioritizing recruiting, IT departments see candidate experience as THE last Priority, either not focusing on it or relegating it to HR

Candidate experience is listed as one of the bottom IT challenges, but without a positive experience, securing the talent you want will be difficult.

Candidate experience starts with articulating your unique culture, benefits, and opportunities for development and innovative work as well as outlining flexible working options within an employer brand. Defining an employee value proposition is key to marketing your roles to potential employees.

81% of respondents' rate culture as very important when considering a potential employer. (Info-Tech IT Talent Trends 2022 Survey)

Tactics Used in Job Postings to Position the Organization Favorably as a Potential Employer

(Info-Tech IT Talent Trends 2022 Survey)

Case Study: Increasing talent pool at Info-Tech Research Group

Strong sales leads to growth in operation capacity

Info-Tech Research Group is an IT research & advisory firm helping IT leaders make strategic, timely, and well-informed decisions. Our actionable tools and analyst guidance ensure IT organizations achieve measurable results.

The business has grown rapidly over the last couple of years, creating a need to recruit additional talent who were highly skilled in technical applications and approaches.

In response, approval was given to expand headcount within Research for fiscal year 2022 and to establish a plan for continual expansion as revenue continues to grow.

Looking for deep technical expertise with a passion for helping our members

Hiring for our research department requires talent who are typically subject matter experts within their own respective IT domains and interested in and capable of developing research and advising clients through calls and workshops.

This combination of skills, experience, and interest can be challenging to find, especially in an IT labor market that is more competitive than ever.

Interview with Practice Lead Tracy-Lynn Reid

Focus on Candidate Experience increases successful hire rate

The senior leadership team established a project to focus on recruiting for net-new and open roles. A dedicated resource was assigned and used guidance from our research to enhance our hiring process to reduce time to hire and expand our candidate pool. Senior leaders stayed actively involved to provide feedback.

The hiring process was improved by including panel interviews with interview protocols and a rubric to evaluate all candidates equitably.

The initial screening conversation now includes a discussion on benefits, including remote and flexible work offerings, learning and development budget, support for post-secondary education, and our Buy-a-Book program.

As a result, about 70% of the approved net-new headcount was hired within 12 weeks, with recruitment ongoing.

Master the Secrets of VMware Licensing to Maximize Your Investment

Learn the essential steps to avoid overspending and to maximize negotiation leverage with VMware.

EXECUTIVE BRIEF

Analyst Perspective

Master the Secrets of VMware Licensing to Maximize Your Investment.

The mechanics of negotiating a deal with VMware may seem simple at first as the vendor is willing to provide a heavy discount on an enterprise license agreement (ELA). However, come renewal time, when a reduction in spend or shelfware is needed, or to exit the ELA altogether, the process can be exceedingly frustrating as VMware holds the balance of power in the negotiation. Negotiating a complete agreement with VMware from the start can save you from an immense headache and unforeseen expenditures. Many VMware customers do not realize that the terms and conditions in the Volume Purchasing Program (VPP) and Enterprise Purchasing Program (EPP) agreements limit how and where they are able to use their licenses. Furthermore, after the renewal is complete, organizations must still worry about the management of various license types, accurate discovery of what has been deployed, visibility into license key assignments, and over and under use of licenses. Preventive and proactive measures enclosed within this blueprint will help VMware clients mitigate this minefield of challenges.

Scott Bickley Practice Lead, Vendor Management Info-Tech Research Group

Executive Summary

Info-Tech Insight

VMware customers almost always have incomplete price information from which to effectively negotiate a “best in class” ELA.

Your challenge

VMware's dominant position in the virtualization space can create uncertainty to your options in the long term driven by:

• VMware’s dominant market position and ownership of the virtualization market, which is forcing customers to focus on managing capacity demand to ensure a positive ROI on every license.
• The trend toward a hybrid cloud for many organizations, especially those considering using VMware in public clouds, resulting in confusion regarding licensing and compliance scenarios.

ELAs and EPPs are generally the only way to get a deep discount from VMware.

Common obstacles

There are several hurdles that are presented when considering a VMware ELA.

• A lack of understanding around VMware’s licensing models, bundles, and negotiation tactics makes it difficult to negotiate from a position of strength.
• Unfriendly commercial practices combined with hyperlink-ridden agreements have left organizations vulnerable to audits and large shortfall payments.
• ELAs come in several purchasing models and do not contain the EULA or various VMware product guide documentation that govern license usage rules and can change monthly.

Competition is a key driver of price

Source: Datanyze

Master the Secrets of VMware Licensing to Maximize your Investment

Info-Tech’s methodology for Master the Secrets of VMware Licensing to Maximize Your Investment

Insight summary

Blueprint deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

VMware ELA Analysis Tool	VMware ELA RFQ Template Tool	VPP Transaction Purchase Tool
VMware ELA Analysis Tool	Use this tool as a template for an RFQ with VMware ELA contracts.	Use this tool to analyze cost breakdown and discount based on your volume purchasing program (VPP) level.

Key deliverable:

VMware Business as Usual SnS Renewal Only Tool

Use this tool to analyze discounts from a multi-year agreement vs. prepay. See how you can get the best discount.

Blueprint Objectives

The aim of this blueprint is to provide a foundational understanding of VMware’s licensing agreement and best practices to manage them.

Examining VMware’s vendor profile

Turbonomics conducted a vendor profile on major vendors, focusing on licensing and compliance. It illustrated the following results:

Source: Turbonomics

N-sample size

Case Study

INDUSTRY: Finance

SOURCE: VMware.com

“We’ll have network engineers, storage engineers, computer engineers, database engineers, and systems engineers all working together as one intact team developing and delivering goals on specific outcomes.” – Vipul Nagrath, CIO, ADP

Improving developer capital management

Constant innovation helped ADP keep ahead of customer needs in the human resources space, but it also brought constant changes to the IT environment. Internally, the company found it was spending too long working on delivering the required infrastructure and system updates. IT staff wanted to improve velocity for refreshes to better match the needs of ADP developers and encourage continued development innovation.

Business needs

• Improve turnaround time on infrastructure refreshes to better meet developer roadmaps.
• Establish an IT culture that works at the global scale of ADP and empowers individual team members.
• Streamline approach toward infrastructure resource delivery to reduce need for manual management.

Impact

• Infrastructure resource delivery reduced from 100+ days to minutes, improving ADP developer efficiency.
• VMware Cloud™ on AWS establishes seamless private and public cloud workflows, fostering agility and innovation.
• Automating IT management redirects resources to R&D, boosting time to market for new services.

Info-Tech offers various levels of support to best suit your needs

Diagnostics and consistent frameworks used throughout all four options

Guided Implementation

What does a typical GI on this topic look like?

A Guided Implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is between 2 to 6 calls over the course of 1 to 2 months.

Phase # 1

Manage Your VMware Agreements

This phase will walk you through the following activities:

• Understanding the VMware licensing model
• Understanding the license agreement options
• Understanding the VMware sales approach

This phase will take you thorough:

• The new VMware subscription movement to the cloud
• How to prepare and migrate
• Manage your subscriptions efficiently

1.1 Establish licensing requirements

VMware has greatly improved the features of vSphere over time.

vSphere Main Editions Overview

• vSphere Standard – Provides the basic features for server consolidation. A support and subscription contract (SnS) is mandatory when purchasing the vSphere Standard.
• vSphere Enterprise Plus – Provides the full range of vSphere features. A support and subscription contract (SnS) is mandatory when purchasing the Enterprise Plus editions.
• vSphere Essentials kit – The Essentials kit is an all-in-one solution for small environments with up to three hosts (2 CPUs on each host). Support is optional when purchasing the Essentials kit and is available on a per-incident basis.
• vSphere Essentials Plus kit – This is similar to the Essentials kit and provides additional features such as vSphere vMotion, vSphere HA, and vSphere replication. A support and subscription contract (SnS) is sold separately, and a minimum of one year of SnS is required.

Review vSphere Edition Features

Download the vSphere Edition 7 Features List

1.2 Evaluate licensing options

VMware agreement types

Review purchase options to align with your requirements.

1.2.1 The Volume Purchasing Program (VPP)

This is the entry-level purchasing program aimed at small/mid-sized organizations.

How the program works

• The threshold to be able to purchase from the VPP program is 250 points minimum, equivalent to $25,000.
• Discounts attained can only be applied to license purchases. They do not apply to service and support/renewals. Discounts range from 4% to 12%.
• For the large majority of products 1 VPP point = ~$100.
  • Point values will be the same globally.
  • Point ratios may vary over time as SKUs are changed.
  • Points are valid for two years.

Benefits

• Budget predictability for two years.
• Simple license purchase process.
• Receive points on qualifying purchases that accumulate over a rolling eight-quarter period.
• Online portal for tracking purchases and eligible discounts.
• Global program where affiliates can purchase from existing contract.

VPP Point & Discount Table

Source: VMware Volume Purchasing Program

1.2.2 Activity VPP Transactional Purchase Tool

1-3 hours

Instructions:

1. Use the tool to analyze the cost breakdown and discount based on your Volume Purchasing Program level.
2. On tab 1, Enter SnS install base renewal units and or new license details.
3. Review tab 2 for Purchase summary.

Download the VPP Transactional Purchase Tool

1.3 Evaluate agreement options

Introduction to EPP and ELA

What to know when using a token/credit-based agreement.

Token/credit-based agreements carry high risk as customers are purchasing a set number of tokens/credits to be redeemed during the ELA term for licenses.

• Tokens/credits that are not used during the ELA term expire and become worthless.
• By default in most agreements (negotiation dependent), tokens/credits are tied to pricing maintained by VMware on its website that is subject to change (increase usually), resulting in a reduced value for the tokens/credits.
  • Therefore, it is necessary to negotiate to have current list prices for all products/versions included in the ELA to prevent price increases while in the current ELA term.
• Token-based agreements may come with a lower overall discount level as VMware is granting more flexibility in terms of the wider product selection offered, vendor cost of overhead to manage the redemption program, currency exchange risks, and more complex revenue recognition headaches.

1.3.1 The Enterprise Purchasing Program (EPP)

This is aimed at mid-tier customers looking for flexibility with deeper discounting.

How the program works

• Token-based program in which tokens are redeemed for licenses and/or SnS.
  • Tokens can be added at any time to active fund.
  • Token usage is automatically tracked and reported.
• Minimum order of 2,500 tokens, equivalent to $250,000 (1 token=$100).
  • Exceptions have been made, allowing for lower minimum spends.
• Restricted to specific regions, not a global agreement.
• Self-service portal for access to license keys and support entitlements.
• Deeper discounting than the VMware Volume Purchase Program.
• EPP initial purchase gets VPP L4 for four years.

Benefits

• Able to mix and match VMware products, manage licenses, and adjust deployment strategy.
• Prices are protected for term of the EPP agreement.
• Number of tokens needed to obtain a product or SnS are negotiated at the start of the contract and fixed for the term.
• SnS is co-termed to the EPP term.
• Ability to purchase new products that become available at a future date and are listed on the EPP Eligibility Matrix.

EPP Level & Point Table

Source: VMware Volume Purchasing Program

1.3.2 The ELA is aimed at large global organizations, offering the deepest discounts with operational benefits and flexibility

What is an ELA?

• The ELA agreement provides the best vehicle for global enterprises to obtain maximum discounts and price-hold protection for a set period of time. Discounts and price holds are removed once an ELA has expired.
• The ELA minimum spend previously was $500,000. Purchase volume now generally starts at $250K total spend with exceptions and, depending on VMware, it may be possible to attain for $150K in net-new license spend.

Key things to know

• Customers pay up front for license and SnS rights, but depending on the deployment plans, the value of the licenses is not realized and/or recognized for up to two years after point of purchase.
• License and SnS is paid up front for a three-year period in most ELAs, although a one- or two-year term can be negotiated.
• Licenses not deployed in year one should be discounted in value and drive a re-evaluation of the ELA ROI, as even heavily discounted licenses that are not used until year three may not be such a great deal in retrospect.
  • Use a time value of money calculation to arrive at a realistic ROI.
  • Partner with Finance and Accounting to ensure the ROI also clears any Internal Hurdle Rate (IHR).
  • Share and strategically position your IHR with VMware and resellers to ensure they understand the minimum value an ELA deal must bring to the table.
• Organizational changes, such as merger, acquisition, and divestiture (MAD) activities, may result in the customer paying for license rights that can no longer be used and/or require a renegotiated ELA.

Info-Tech Insight

If a legacy ELA exists that has “deploy or lose” language, engage VMware to recapture any lost license rights as VMware has changed this language effective with 2016 agreements and there is an “appeals” process for affected customers.

1.3.3 Select the best ELA variant to match your specific demand profile and financial needs

The advantages of an ELA are:

• Maximum discount level + price protection
• SnS discounted at % of net license fee
• Sole option for global use territory rights

General disadvantages are:

• Term lock-in with SnS for three years
• Pay up front and if defer usage, ROI drops
• Territory rights priced at a premium versus domestic use rights

Type of ELAs

1.4 Purchase and manage licenses

Negotiating ELA terms and conditions

Editable copies of VMware’s license and governance documentation are a requirement to initiate the dialogue and negotiation process over T&Cs.

VMware’s licensing is complex and although documentation is publicly available, it is often hidden on VMware’s website.

Many VMware customers often overlook reviewing the license T&Cs, leaving them open to compliance risks.

It is imperative for customers to understand:

• Product definition for licensing of each acquired product
• Products included by bundle
• Use restrictions:
  • The VMware Product Guide, which includes information about:
    • ELA Order Forms, Amendments, Exhibits, EULA, Support T&Cs, and other policies that add dozens of pages to a contractual agreement.
    • All of these documents are web based and can change monthly; URL links in the contract do not take the user to the actual document but a landing page from which customers must find the applicable documents.
  • Obtain copies of ALL current documents at the time of your order and keep as a reference in the CLM and SAM systems.

Build in time to obtain, review, and negotiate these documents (easily weeks to months).

1.4.1 Negotiating ELA terms and conditions specifics

License and Deployment

• Review perpetual use rights for all licenses purchased under the ELA (exception being subscription services).
• Carefully scrutinize contract language for clearly defined deployment rights.
  • Some agreements contain language that terminates the use rights for licenses not deployed by the end of the ELA term.
• While older contracts would frequently contain clearly defined token values and product prices for the ELA term, VMware has moved away from this process and now refers to URL links for current MSRP pricing.

Use Rights

• The customer’s legal entities and territories listed in the contract are hard limits on the license usage via the VMware Product Guide definitions. Global use rights are not a standard license grant with VMware license agreement by default. Global rights are usually tied to an ELA.
• VMware audits most aggressively against violations of territory use rights and will use the non-compliance events to resolve the issue via a commercial transaction.
  • Negotiate for assignment rights with no strings attached in terms of fees or multi-party consent by future affiliates or successors to a surviving entity.
• Extraordinary Corporate Transaction clause: VMware’s standard language prevents customers from using licenses within the ELA for any third party that becomes part of customer’s business by way of acquisition, merger, consolidation, change of control, reorganization, or other similar transaction.
  • Request VMware to drop this language.
• Include any required language pertaining to MAD events as default language will not allow for transfer or assignment of license rights.

Checklist of necessary information to negotiate the best deal

1.4.2 Activity VMware ELA Analysis Tool

2-4 hours

Instructions:

1. As a group, review the various RFQ responses. Identify top three proposals and start to enter proposal details into the VPP Prepay or ELA tabs of the analysis tool.
2. Review savings in the ELA Offer Analysis tab.

Download the VMware ELA Analysis Tool

1.4.3 Negotiating ELA terms and conditions specifics: pricing, renewal, and exit

VMware does not offer price protection on future license consumption by default.

1.4.4 Find the best reseller partner

Seek out a qualified VMware partner that will work with you and with your interest as a priority:

1. Resellers, at minimum, should have achieved an enterprise-level rating, as these partners can offer the deepest discounts and have more clout with VMware.
2. Select your reseller prior to engaging in any RFX acquisition steps. Verify they are enterprise level or higher AND secure their written commitment to maximum pass-through of the discounting provided to them by VMware.
3. Document and prioritize key T&Cs for your ELA and submit to your sales team along with a requirement and timeline for their formal response. Essentially, this escalates outside of the VMware process and disrupts the status quo. Ideally this will occur in advance of being presented a contract by VMware and be pre-emptive in nature.
4. If applicable and of benefit or a high priority, seek out a reseller that is willing to finance the VMware upfront payment cost at a low or no interest rate.
5. It will be important to have ELA-level deals escalated to higher levels of authority to obtain “best in class” discount levels, above and beyond those prescribed in the VMware sales playbook.
6. VMware’s standard process is to “route” customers through a pre-defined channel and “deal desk” process. Preferred pricing of up to an additional 10% discount is reserved for the first reseller that registers the deal with VMware, with larger discounts reserved for the Enterprise and Premium partners. Additional discounts can be earned if the deal closes within specified time periods (First Deal Registration).

1.4.5 Activity VMware ELA RFQ Template

1-3 hours

Use this tool for as a template for an RFQ with VMware ELA contracts.

1. For SnS renewals that contain no new licenses, state that the requirement for award consideration is the provisioning of all details for each itemized SnS renewal product code corresponding to all the licenses of your installed base. The details for the renewals are to be placed in Section 1 of the template.
2. SnS Renewal Options: Info-Tech recommends that you ask for one- and three-year SnS renewal proposals, assuming these terms are realistic for your business requirements. Then compare your SnS BAU costs for these two options against ELA offers to determine the best choice for your renewal.

Download the VMware ELA RFQ Template

1.4.6 Consider your path forward

Consider your route forward as contract commitments, license compliance, and terms and conditions differ in structure to perpetual models previously used.

• Are you able to accurately discover VMware licensing within your environment?
• Is licensing managed for compliance? Are internal audits conducted so you have accurate results?
• Have the product use rights been examined for terms and conditions such as geographic rights? Some T&Cs may change over time due to hyperlinked references within commercial documents.
• How are Oracle and SQL being used within your VMware environment? This may affect license compliance with Oracle and Microsoft in virtualized environments.
• Prepare for the Subscription model; it’s here now and will be the lead discussion with all VMware reps going forward.

Shift to Subscription

1. With the $64bn takeover by Broadcom, there will be a significant shift and pressure to the subscription model.
2. Broadcom has significant growth targets for its VMware acquisition that can only be achieved through a strong press to a SaaS model.

Info-Tech Insight

VMware has a license cost calculator and additional licensing documents that can be used to help determine what spend should be.

Phase # 2

Transition to the VMware Cloud

This phase will walk you through the following activities:

• Understand the VMware licensing model
• Understand the license agreement options
• Understand the VMware sales approach

This phase will take you thorough:

• The new VMware subscription movement to the cloud
• How to prepare and migrate
• Manage your subscriptions efficiently

2.1 Understand the VMware subscription model

VMware Cloud Universal

• VMware Cloud Universal unifies compute, network, and storage capabilities across infrastructures, management, and applications.
• Take advantage of financial and cloud management flexibility by combining on-premises and SaaS capabilities for automation, operations, log analytics, and network visibility across your infrastructure.
• Capitalize on VMware knowledge by integrating proven migration methods and plans across your transformation journey such as consumption strategies, business outcome workshops, and more.
• Determine your eligibility to earn a one-time discount with this exclusive benefit designed to offset the value of your current unamortized VMware on-premises license investments and then reallocate toward your multi-cloud initiatives.

2.2 Migrate workloads and licenses to the cloud

There are several cloud migration options and solutions to consider.

• VMware Cloud offers solutions that can provide a low-cost path to the cloud that will help accelerate modernization.
• There are also many third-party solution providers who can be engaged to migrate workloads and other infrastructure to VMware Cloud and into other public cloud providers.
• VMware Cloud can be deployed on many IaaS providers such as AWS, Azure, Google, Dell, and IBM.

VMware Cloud Assist

1. Leverage all available transition funding opportunities and any IaaS migration incentives from VMware.
2. Learn and understand the value and capabilities of VMware vRealize Cloud Universal to help you transition and manage hybrid infrastructure.

2.2.1 Manage your VMware cloud subscriptions

Use VMware vRealize to manage private, public, and local environments.

Combine SaaS and on-premises capabilities for automation, operations, log analytics, network visibility, security, and compliance into one license.

2.3 The VMware sales approach

Understand the pitch before entering the discussion

1. VMware will present a PowerPoint presentation proposal comparing a Business-as-Usual (BAU) scenario versus the ELA model.
2. Critical factors to consider if considering the proposed ELA are growth rate projections, deployment schedule, cost of non-ELA products/options, shelf-ware, and non-ELA discounts (e.g. VPP, multi-year, or pre-paid).
3. Involving VMware’s direct account team along with your reseller in the negotiations can be beneficial. Keep in mind that VMware ultimately decides on the final price in terms of the discount that is passed through. Ensure you have a clear line of sight into how pricing is determined.
4. Explore reseller incentives and promotional programs that may provide for deeper than normal discount opportunities.

INFO-TECH TIP: Create your own assumptions as inputs into the BAU model and then evaluate the ELA value proposition instead of depending on VMware’s model.

2.4 Manage SnS and cloud subscriptions

The new subscription model is making SnS renewal more complex.

• Start renewal planning four to six months prior to anniversary.
• Work closely with your reseller on your SnS renewal options.
• Request “as is” versus subscription renewal proposal from reseller or VMware with a “savings” component.
• Consider and review multi-year versus annual renewal; savings will differ.
• For the Subscription transition renewal model, ensure that credits for legacy licensing is provided.
• Negotiate cloud transition investments and incentives from VMware.

What information to collect and how to analyze it

• Negotiating toward preferred terms on SnS is critical, more so than when new license purchases are made, as approximately 75-80% of server virtualization are at x86 workloads, where maintenance revenue is a larger source of revenue for VMware than new license sales.
• All relevant license and SnS details must be obtained from VMware to include Product Family, Part Description, Product Code (SKU), Regional/Global List Price, SnS Term Dates, and Discount Price for all new licenses.
• VMware has all costs tied to the US dollar; you must calculate currency conversion into ROI models as VMware does not adjust token values of products across geographies or currency of purchase. The token to dollar value by product SKU is locked for the three-year term. This translates into a variable cost model depending on how local currency fluctuates against the US dollar; time the initial purchase to take this into consideration, if applicable.
• Products purchased based on MSRP price with each token contains a value of US$100. Under the Hybrid Purchasing Program (HPP) credit values and associated buying power will fluctuate over the term as VMware reserves the right to adjust current list prices. Consider locking in a set product list and pricing versus HPP.
• Take a structured approach to discover true discounts via the use of a tailored RFQ template and options model to compare and contrast VMware ELA proposals.

Use Info-Tech Research Group’s customized RFQ template to discover true discount levels and model various purchase options for VMware ELA proposals.

Summary of accomplishment

Knowledge Gained

• The key pieces of licensing information that should be gathered about the current state of your own organization.
• An in-depth understanding of the required licenses across all of your products.
• Clear methodology for selecting the most effective contract type.
• Development of measurable, relevant metrics to help track future project success and identify areas of strength and weakness within your licensing program.

Processes Optimized

• Senior leaders in IT now have a clear understanding of the importance of licensing in relation to business objectives.
• Understanding of the various licensing considerations that need to be made.
• Contract negotiation.

Related Info-Tech Research

Prepare for Negotiations More Effectively

• IT budgets are increasing, but many CIOs feel their budgets are inadequate to accomplish what is being asked of them.
• Eighty percent of organizations don’t have a mature, repeatable, scalable negotiation process.
• Training dollars on negotiations are often wasted or ineffective.

Price Benchmarking & Negotiation

You need to achieve an objective assessment of vendor pricing in your IT contracts, but you have limited knowledge about:

• Current price benchmarking on the vendor.
• Pricing and negotiation intelligence.
• How to secure a market-competitive price.
• Vendor pricing tiers, models, and negotiation tactics.

VMware vRealize Cloud Management

VMware vCloud Suite is an integrated offering that brings together VMware’s industry-leading vSphere hypervisor and VMware vRealize Suite multi-vendor hybrid cloud management platform. VMware’s new portable licensing units allow vCloud Suite to build and manage both vSphere-based private clouds and multi-vendor hybrid clouds.

Bibliography

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Enhance Your Solution Architecture Practice

Ensure your software systems solution is architected to reflect stakeholders’ short- and long-term needs.

Analyst Perspective

Application architecture is a critical foundation for supporting the growth and evolution of application systems. However, the business is willing to exchange the extension of the architecture’s life with quality best practices for the quick delivery of new or enhanced application functionalities. This trade-off may generate immediate benefits to stakeholders, but it will come with high maintenance and upgrade costs in the future, rendering your system legacy early.

Technical teams know the importance of implementing quality attributes into architecture but are unable to gain approval for the investments. Overcoming this challenge requires a focus of architectural enhancements on specific problem areas with significant business visibility. Then, demonstrate how quality solutions are vital enablers for supporting valuable application functionalities by tracing these solutions to stakeholder objectives and conducting business and technical risk and impact assessments through multiple business and technical perspectives.

Andrew Kum-Seun
Research Manager, Applications
Info-Tech Research Group

Enhance Your Solution Architecture

Ensure your software systems solution is architected to reflect stakeholders’ short- and long-term needs.

EXECUTIVE BRIEF

Executive Summary

Your Challenge

• Most organizations have some form of solution architecture; however, it may not accurately and sufficiently support the current and rapidly changing business and technical environments.
• To enable quick delivery, applications are built and integrated haphazardly, typically omitting architecture quality practices.

Common Obstacles

• Failing to involve development and stakeholder perspectives in design can lead to short-lived architecture and critical development, testing, and deployment constraints and risks being omitted.
• Architects are experiencing little traction implementing solutions to improve architecture quality due to the challenge of tracing these solutions back to the right stakeholder objectives.

Info-Tech's Approach

• Translate stakeholder objectives into architecture requirements, solutions, and changes. Incorporate architecture quality attributes in decisions to increase your architecture’s life.
• Evaluate your solution architecture from multiple views to obtain a holistic perspective of the range of issues, risks, and opportunities.
• Regularly review and recalibrate your solution architecture so that it accurately reflects and supports current stakeholder needs and technical environments.

Info-Tech Insight

Well-received applications can have poor architectural qualities. Functional needs often take precedence over quality architecture. Quality must be baked into design, execution, and decision-making practices to ensure the right tradeoffs are made.

A badly designed solution architecture is the root of all technical evils

A well-thought-through and strategically designed solution architecture is essential for the long-term success of any software system, and by extension, the organization because:

1. It will help achieve quality attribute requirements (security, scalability, performance, usability, resiliency, etc.) for a software system.
2. It can define and refine architectural guiding principles. A solution architecture is not only important for today but also a vision for the future of the system’s ability to react positively to changing business needs.
3. It can help build usable (and reusable) services. In a fast-moving environment, the convenience of having pre-made plug-and-play architectural objects reduces the risk incurred from knee-jerk reactions in response to unexpected demands.
4. It can be used to create a roadmap to an IT future state. Architectural concerns support transition planning activities that can lead to the successful implementation of a strategic IT plan.

Demand for quick delivery makes teams omit architectural best practices, increasing downstream risks

In its need for speed, a business often doesn’t see the value in making sure architecture is maintainable, reusable, and scalable. This demand leads to an organizational desire for development practices and the procurement of vendors that favor time-to-market over long-term maintainability. Unfortunately, technical teams are pushed to omit design quality and validation best practices.

What are the business impacts of omitting architecture design practices?

Poor quality application architecture impedes business growth opportunities, exposes enterprise systems to risks, and consumes precious IT budgets in maintenance that could otherwise be used for innovation and new projects.

Previous estimations indicate that roughly 50% of security problems are the result of software design. […] Flaws in the architecture of a software system can have a greater impact on various security concerns in the system, and as a result, give more space and flexibility for malicious users.(Source: IEEE Software)

Errors in software requirements and software design documents are more frequent than errors in the source code itself according to Computer Finance Magazine. Defects introduced during the requirements and design phase are not only more probable but also more severe and more difficult to remove. (Source: iSixSigma)

Design a solution architecture that can be successful within the constraints and complexities set before you

APPLICATION ARCHITECTURE…

… describes the dependencies, structures, constraints, standards, and development guidelines to successfully deliver functional and long-living applications. This artifact lays the foundation to discuss the enhancement of the use and operations of your systems considering existing complexities.

Good architecture design practices can give you a number of benefits:

Lowers maintenance costs by revealing key issues and risks early. The Systems Sciences Institute at IBM has reported that the cost to fix an error found after product release was 4 to 5 times as much as one uncovered during design.(iSixSigma)

Supports the design and implementation activities by providing key insights for project scheduling, work allocation, cost analysis, risk management, and skills development.(IBM: developerWorks)

Eliminates unnecessary creativity and activities on the part of designers and implementers, which is achieved by imposing the necessary constraints on what they can do and making it clear that deviation from constraints can break the architecture.(IBM: developerWorks)

Use Info-Tech’s Continuous Solution Architecture (CSA) Framework for designing adaptable systems

Solution architecture is not a one-size-fits-all conversation. There are many design considerations and trade-offs to keep in mind as a product or services solution is conceptualized, evaluated, tested, and confirmed. The following is a list of good practices that should inform most architecture design decisions.

Principle 1: Design your solution to have at least two of everything.

Principle 2: Include a “kill switch” in your fault-isolation design. You should be able to turn off everything you release.

Principle 3: If it can be monitored, it should be. Use server and audit logs where possible.

Principle 4: Asynchronous is better than synchronous. Asynchronous design is more complex but worth the processing efficiency it introduces.

Principle 5: Stateless over stateful: State data should only be used if necessary.

Principle 6: Go horizonal (scale out) over vertical (scale up).

Principle 7: Good architecture comes in small packages.

Principle 8: Practice just-in-time architecture. Delay finalizing an approach for as long as you can.

Principle 9: X-ilities over features. Quality of an architecture is the foundation over which features exist. A weak foundation can never be obfuscated through shiny features.

Principle 10: Architect for products not projects. A product is an ongoing concern, while a project is short lived and therefore only focused on what is. A product mindset forces architects to think about what can or should be.

Principle 11: Design for rollback: When all else fails, you should be able to stand up the previous best state of the system.

Principle 12: Test the solution architecture like you test your solution’s features.

CSA should be used for every step in designing a solution’s architecture

Solution architecture is a technical response to a business need, and like all complex evolutionary systems, must adapt its design for changing circumstances.

The triggers for changes to existing solution architectures can come from, at least, three sources:

1. Changing business goals
2. Existing backlog of technical debt
3. Solution architecture roadmap

A solution’s architecture is cross-cutting and multi-dimensional and at the minimum includes:

• Product Portfolio Strategy
• Application Architecture
• Data Architecture
• Information Architecture
• Operational Architecture

along with several qualitative attributes (also called non-functional requirements).

Related Research: Product Portfolio Strategy

Integrate Portfolios to Create Exceptional Customer Value

• Define an organizing principle that will structure your projects and applications in a way that matters to your stakeholders.
• Bridge application and project portfolio data using the organizing principle that matters to communicate with stakeholders across the organization.
• Create a dashboard that brings together the benefits of both project and application portfolio management to improve visibility and decision making.

Deliver on Your Digital Portfolio Vision

• Recognize that a vision is only as good as the data that backs it up. Lay out a comprehensive backlog with quality built in that can be effectively communicated and understood through roadmaps.
• Your intent is only a dream if it cannot be implemented ; define what goes into a release plan via the release canvas.
• Define a communication approach that lets everyone know where you are heading.

Related Research: Data, Information & Integration Architecture

Build a Data Architecture Roadmap

• Have a framework in place to identify the appropriate solution for the challenge at hand. Our three-phase practical approach will help you build a custom and modernized data architecture.
• Identify and prioritize the business drivers in which data architecture changes would create the largest overall benefit and determine the corresponding data architecture tiers that need to be addressed.
• Discover the best-practice trends, measure your current state, and define the targets for your data architecture tactics.
• Build a cohesive and personalized roadmap for restructuring your data architecture. Manage your decisions and resulting changes.

Build a Data Pipeline for Reporting and Analytics

• Understand your high-level business capabilities and interactions across them – your data repositories and flows should be just a digital reflection thereof.
• Divide your data world in logical verticals overlaid with various speed data progression lanes, i.e. build your data pipeline – and conquer it one segment at a time.
• Use the most appropriate database design pattern for a given phase/component in your data pipeline progression.

Related Research:Operational Architecture

Optimize Application Release Management

• Acquire release management ownership. Ensure there is appropriate accountability for the speed and quality of the releases passing through the entire pipeline.
• A release manager has oversight over the entire release process and facilitates the necessary communication between business stakeholders and various IT roles.
• Instill holistic thinking. Release management includes all steps required to push release and change requests to production along with the hand-off to Operations and Support. Increase the transparency and visibility of the entire pipeline to ensure local optimizations do not generate bottlenecks in other areas.
• Standardize and lay a strong release management foundation. Optimize the key areas where you are experiencing the most pain and continually improve.

Build Your Infrastructure Roadmap

• Increased communication. More information being shared to more people who need it.
• Better planning. More accurate information being shared.
• Reduced lead times. Less due diligence or discovery work required as part of project implementations.
• Faster delivery times. Less low-value work, freeing up more time for project work.

Related Research:Security Architecture

Identify Opportunities to Mature the Security Architecture

• A right-sized security architecture can be created by assessing the complexity of the IT department, the operations currently underway for security, and the perceived value of a security architecture within the organization. This will bring about a deeper understanding of the organizational infrastructure.
• Developing a security architecture should also result in a list of opportunities (i.e. initiatives) that an organization can integrate into a roadmap. These initiatives will seek to improve security operations and strengthen the IT department’s understanding of security’s role within the organization.
• A better understanding of the infrastructure will help to save time on determining the correct technologies required from vendors, and therefore, cut down on the amount of vendor noise.
• Creating a defensible roadmap will assist with justifying future security spend.

Key deliverable:

Solution Architecture Template
Record the results from the exercises to help you define, detail, and make real your digital product vision.

Blueprint Deliverables

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals:

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.

Guided Implementation

Our team knows that we need to fix a process, but we need assistance to determine where to focus. some check-ins along the way would help keep us on track

Workshop

We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place

Consulting

Our team does not have the time or the knowledge to take this project on. we need assistance through the entirety of this project.

Diagnostics and consistent frameworks are used throughout all four options

Workshop Overview

Contact your account representative for more information. workshops@infotech.com 1-888-670-8889

Guided Implementation

What does a typical GI on this topic look like?

A Guided Implementation (GI) is series of calls with an Info-Tech analyst to help implement our best practices in your organization.
This GI is between 8 to 10 calls over the course of approximately four to six months.

Phase 1: Visions and Value Maps

Phase 1

1.1 Articulate an Architectural Vision
1.2 Develop Dynamic Value Stream Maps
1.3 Map Value Streams, Use Cases, and Required Architectural Attributes
1.4 Create a Prioritized List of Architectural Attributes

Phase 2

2.1 Develop a Data Architecture That Supports Transactional and Analytical Needs
2.2 Document Security Architecture Risks and Mitigations

Phase 3

3.1 Document Scalability Architecture
3.2 Document Performance Enhancing Architecture
3.3 Combine the Different Architecture Design Decisions Into a Unified Solution Architecture

This phase will walk you through the following activities:

• Determine a vision for architecture outcomes
• Draw dynamic value stream maps
• Derive architectural design decisions
• Prioritize design decisions

This phase involves the following participants:

• Business Architect
• Product Owner
• Application Architect
• Integration Architect
• Database Architect
• Enterprise Architect

Enhance Your Solution Architecture Practice

Let’s get this straight: You need an architectural vision

If you start off by saying I want to architect a system, you’ve already lost. Remember what a vision is for!

An architectural vision...

… is your North Star

Your product vision serves as the single fixed point for product development and delivery.

… aligns stakeholders

It gets everyone on the same page.

… helps focus on meaningful work

There is no pride in being a rudderless ship. It can also be very expensive.

And eventually...

… kick-starts your strategy

We know where to go, we know who to bring along, and we know the steps to get there. Let’s plan this out.

An architectural vision is multi-dimensional

Who is the target customer (or customers)?

What is the key benefit a customer can get from using our service or product?

Why should they be engaged with you?

What makes our service or product better than our competitors?

(Adapted from Crossing the Chasm)

Info-Tech Insight

It doesn’t matter if you are delivering value to internal or external stakeholders, you need a product vision to ensure everyone understands the “why.”

Use a canvas as the dashboard for your architecture

The solution architecture canvas provides a single dashboard to quickly define and communicate the most important information about the vision. A canvas is an effective tool for aligning teams and providing an executive summary view.

Leverage the solution architecture canvas to state and inform your architecture vision

1.1 Craft a vision statement for your solution’s architecture

1. Use the product canvas template provided for articulating your solution’s architecture.

There are different statement templates available to help form your product vision statements. Some include:

• For [our target customer], who [customer’s need], the [product] is a [product category or description] that [unique benefits and selling points]. Unlike [competitors or current methods], our product [main differentiators].
• We believe (in) a [noun: world, time, state, etc.] where [persona] can [verb: do, make, offer, etc.], for/by/with [benefit/goal].
• To [verb: empower, unlock, enable, create, etc.] [persona] to [benefit, goal, future state].
• Our vision is to [verb: build, design, provide] the [goal, future state] to [verb: help, enable, make it easier to...] [persona].

(Adapted from Crossing the Chasm)

Download the Solution Architecture Template and document your vision statement.

Input

• Business Goals
• Product Portfolio Vision

Output

• Solution Architecture Vision

Materials

• Whiteboard/Flip Charts

Participants

• Business Architect
• Product Owner
• IT Leadership
• Business Leadership

Solution Architecture Canvas: Refine your vision statement

Understand your value streams before determining your solution’s architecture

Business Strategy

Sets and communicates the direction of the entire organization.

Value Stream

Segments, groups, and creates a coherent narrative as to how an organization creates value.

Business Capability Map

Decomposes an organization into its component parts to establish a common language across the organization.

Execution

Implements the business strategy through capability building or improvement projects.

Identify your organization’s goals and define the value streams that support them

Goal

Revenue Growth

Value Streams

Stream 1- Product Purchase
Stream 2- Customer Acquisition
stream 3- Product Financing

There are many techniques that help with constructing value streams and their capabilities.

Domain-driven design is a technique that can be used for hypothesizing the value maps, their capabilities, and associated solution architecture.

Read more about domain-driven design here.

Value streams can be external (deliver value to customers) or internal (support operations)

External Perspective

1. Core value streams are mostly externally facing: they deliver value to either an external/internal customer and they tie to the customer perspective of the strategy map.

• E.g. customer acquisition, product purchase, product delivery

Internal Perspective

• E.g. employee recruitment to retirement

Key Questions to Ask While Evaluating Value Streams

• Who are your customers?
• What benefits do we deliver to them?
• How do we deliver those benefits?
• How does the customer receive the benefits?

Value streams highlight the what, not the how

Value chains set a high-level context, but architectural decisions still need to be made to deal with the dynamism of user interaction and their subsequent expectations. User stories (and/or use cases) and themes are great tools for developing such decisions.

Product Delivery

1. Order Confirmation
2. Order Dispatching
3. Warehouse Management
4. Fill Order
5. Ship Order
6. Deliver Order

Use Case and User Story Theme: Confirm Order

The use case Confirming Customer’s Online Order has four actors:

1. An Online Buyer who should be provided with a catalog of products to purchase from.
2. An Online Catalog that is invoked to display its contents on demand.
3. An Integrated Payment system for accepting an online form of payment (credit card, Bitcoins, etc.) in a secure transaction.
4. An Inventory Lookup module that confirms there is stock available to satisfy the Online Buyer’s order.

Info-Tech Insight

Each use case theme links back to a feature(s) in the product backlog.

Related Research

Deliver on Your Digital Portfolio Vision

• Recognize that a vision is only as good as the data that backs it up. Lay out a comprehensive backlog with quality built in that can be effectively communicated and understood through roadmaps.
• Your intent is only a dream if it cannot be implemented – define what goes into a release plan via the release canvas.
• Define a communication approach that lets everyone know where you are heading.

Document Your Business Architecture

• Recognize the opportunity for architecture work, analyze the current and target states of your business strategy, and identify and engage the right stakeholders.
• Model the business in the form of architectural blueprints.
• Apply business architecture techniques such as strategy maps, value streams, and business capability maps to design usable and accurate blueprints of the business.
• Drive business architecture forward to promote real value to the organization.
• Assess your current projects to determine if you are investing in the right capabilities. Conduct business capability assessments to identify opportunities and to prioritize projects.

Example: Dynamic value stream map

Loan Provision*

*Value Stream Name: Usually has the same name as the capability it illustrates.

Loan Application**; Disbursement of Fund**; Risk Management**; Service Accounts**

**Value Stream Components: Specific functions that support the successful delivery of a value stream.

Disbursement of Funds

Style #1:

The use case Disbursement of Funds has three actors:

1. A Loan Applicant who applied for a loan and got approved for one.
2. A Loan Supplier who is the source for the funds.
3. The Applicant’s Bank that has an account into which the funds are deposited.

Style # 2:

Loan Provision: Disbursement of Funds
Use Case	Actors	Expectation
Deposit Loan Into Applicant’s Bank Account	Loan Applicant Loan Supplier Applicant’s Bank	Should be able to see deposit in bank account Deposit funds into account Accept funds into account

Example for Phase 1.3

Loan Provision

Loan Application → Disbursement of Funds → Risk Management → Service Accounts

1.2 Document dynamic value stream maps

1. Create value stream maps that support your business objectives.

• The value stream maps could belong to existing or new business objectives.

• Determine use case(s), the actors, and their expected activity.

*Refer to the next slide for an example of a dynamic value stream map.

Download the Solution Architecture Template for documentation of dynamic value stream map

Input

• Business Goals
• Some or All Existing Business Processes
• Some or All Proposed New Business Processes

Output

• Dynamic Value Stream Maps for Multiple Use Roles and Use Cases

Materials

• Whiteboard/Flip Charts

Participants

• Business Architect
• Product Owner
• Application Architect
• Integration Architect

Example: Dynamic value stream map

Loan Provision*

*Value Stream Name: Usually has the same name as the capability it illustrates.

Loan Application**; Disbursement of Fund**; Risk Management**; Service Accounts**

**Value Stream Components: Specific functions that support the successful delivery of a value stream.

Disbursement of Funds

Style #1:

The use case Disbursement of Funds has three actors:

1. A Loan Applicant who applied for a loan and got approved for one.
2. A Loan Supplier who is the source for the funds.
3. The Applicant’s Bank that has an account into which the funds are deposited.

Style # 2:

Mid-Phase 1 Checkpoint

By now, the following items are ideally completed:

• Mid-Phase 1 Checkpoint

Start with an investigation of your architecture’s qualitative needs

Quality attributes can be viewed as the -ilities (e.g. scalability, usability, reliability) that a software system needs to provide. A system not meeting any of its quality attribute requirements will likely not function as required. Examples of quality attributes are:

1. Slow system response time
2. Security breaches that result in loss of personal data
3. A product feature upgrade that is not compatible with previous versions

Focus on quality attributes that are architecturally significant.

• Not every system requires every quality attribute.
• Pay attention to those attributes without which the solution will not be able to satisfy a user’s abstract* expectation.
• This set can be considered Architecturally Significant Requirements (ASR). ASR concern scenarios have the most impact on the architecture of the software system.
• ASR are fundamental needs of the system and changing them in the future can be a costly and difficult exercise.

*Abstract since attributes like performance and reliability are not directly measurable by a user.

Stimulus Response Measurement Environmental Context

For applicable use cases: (*Adapted from S Carnegie Mellon University, 2000)

1. Determine the Stimulus (temporal, external, or internal) that puts stress on the system. For example, a VPN-accessed hospital management system is used for nurses to login at 8am every weekday.
2. Describe how the system should Respond to the stimulus. For example, the hospital management system should complete a nurse login under 10ms on initiation of the HTTPS request.
3. Set a Measurement criteria for determining the success of the response to the stimulus. For example, the system should be able to successfully respond to 98% of the HTTPS requests the first time.
4. Note the environmental context under which the stimulus occurs, including any unusual conditions in effect.

• The hospital management system needs to respond in under 10ms under typical load or peak load?
• What is the time variance of peak loads, for example, an e-commerce system during a Black Friday sale?
• How big is the peak load?

Info-Tech Insight

Three out of four is bad. Don’t architect for normal situations because the solution will be fragile and prone to catastrophic failure under unexpected events.
Read article: Retail sites crash under weight of online Black Friday shoppers.

Discover and evaluate the qualitative attributes needed for use cases or user stories

Deposit Loan Into Applicant’s Bank Account

Assume analysis is being done for a to-be developed system.

Use cases developed in Phase 1.2 should be used here. (Adapted from the ATAM Utility Tree Method for Quality Attribute Engineering)

Reduce technical debt while you are at it

Deposit Loan Into Applicant’s Bank Account

Assume analysis is being done for a to-be developed system.

1.3 Create a conceptual map between the value streams, use cases, and required architectural attributes

1. For selected use cases completed in Phase 1.2:

• Map the value stream to its associated use cases.
• For each use case, list the required architectural quality attributes.

Download the Solution Architecture Template for mapping value stream components to their required architectural attribute.

Input

• Use Cases
• User Roles
• Stimulus to System
• Response From System
• Response Measurement

Output

• List of Architectural Quality Attributes

Materials

• Whiteboard/Flip Charts

Participants

• Business Architect
• Application Architect
• Integration Architect
• Database Architect
• Infrastructure Architect

Prioritize architectural quality attributes to ensure a right-engineered solution

Trade-offs are inherent in solution architecture. Scaling systems may impact performance and weaken security, while fault-tolerance and redundancy may improve availability but at higher than desired costs. In the end, the best solution is not always perfect, but balanced and right-engineered (versus over- or under-engineered).

Loan Provision

Loan Application → Disbursement of Funds → Risk Management → Service Accounts

1. Map architecture attributes against the value stream components.

• Use individual use cases to determine which attributes are needed for a value stream component.

In our example, the prioritized list of architectural attributes are:

• Security (4 votes for Very Important)
• Data Reliability (2 votes for Very Important)
• Scalability (1 vote for Very Important and 1 vote for Fairly Important) and finally
• Resilience (1 vote for Very Important, 0 votes for Fairly Important and 1 vote for Mildly Important)
• Performance (0 votes for Very Important, 2 votes for Fairly Important)

1.4 Create a prioritized list of architectural attributes (from 1.3)

1. Using the tabular structure shown on the previous slide:

• Map each value stream component against architectural quality attributes.
• For each mapping, indicate its importance using the green, blue, and yellow color scheme.

Download the Solution Architecture Template and document the list of architectural attributes by priority.

Input

• List of Architectural Attributes From 1.3

Output

• Prioritized List of Architectural Attributes

Materials

• Whiteboard/Flip Charts

Participants

• Business Architect
• Application Architect
• Integration Architect
• Database Architect
• Infrastructure Architect

End of Phase 1

At the end of this Phase, you should have completed the following activities:

• Documented a set of dynamic value stream maps along with selected use cases.
• Using the SRME framework, identified quality attributes for the system under investigation.
• Prioritized quality attributes for system use cases.

Phase 2: Multi-Purpose Data and Security Architecture

Phase 1

1.1 Articulate an Architectural Vision
1.2 Develop Dynamic Value Stream Maps
1.3 Map Value Streams, Use Cases, and Required Architectural Attributes
1.4 Create a Prioritized List of Architectural Attributes

Phase 2

2.1 Develop a Data Architecture That Supports Transactional and Analytical Needs
2.2 Document Security Architecture Risks and Mitigations

Phase 3

3.1 Document Scalability Architecture
3.2 Document Performance Enhancing Architecture
3.3 Combine the Different Architecture Design Decisions Into a Unified Solution Architecture

This phase will walk you through the following activities:

• Understand the scalability, performance, resilience, and security needs of the business.

This phase involves the following participants:

• Business Architect
• Product Owner
• Application Architect
• Integration Architect
• Database Architect
• Enterprise Architect

Enhance Your Solution Architecture Practice

Fragmented data environments need something to sew them together

• A full 93% of enterprises have a multi-cloud strategy, with 87% having a hybrid-cloud environment in place.
• On average, companies have data stored in 2.2 public and 2.2 private clouds as well as in various on-premises data repositories.

Source: Flexera

In addition, companies are faced with:

• Access and integration challenges (Who is sending the data? Who is getting it? Can we trust them?)
• Data format challenges as data may differ for each consumer and sender of data
• Infrastructure challenges as data repositories/processors are spread out over public and private clouds, are on premises, or in multi-cloud and hybrid ecosystems
• Structured vs. unstructured data

A robust and reliable integrated data architecture is essential for any organization that aspires to be relevant and impactful in its industry.

Data’s context and influence on a solution’s architecture cannot be overestimated

Data used to be the new oil. Now it’s the life force of any organization that has serious aspirations of providing profit-generating products and services to customers. Architectural decisions about managing data have a significant impact on the sustainability of a software system as well as on quality attributes such as security, scalability, performance, and availability.

Storage and Processing go hand in hand and are the mainstay of any data architecture. Due to their central position of importance, an architecture decision for storage and processing must be well thought through or they become the bottleneck in an otherwise sound system.

Ingestion refers to a system’s ability to accept data as an input from heterogenous sources, in different formats, and at different intervals.

Dissemination is the set of architectural design decisions that make a system’s data accessible to external consumers. Major concerns involve security for the data in motion, authorization, data format, concurrent requests for data, etc.

Orchestration takes care of ensuring data is current and reliable, especially for systems that are decentralized and distributed.

Data architecture requires alignment with a hybrid data management plan

Most companies have a combination of data. They have data they own using on-premises data sources and on the cloud. Hybrid data management also includes external data, such as social network feeds, financial data, and legal information amongst many others.

Data integration architectures have typically been put in one of two major integration patterns:

Sidebar

Difference between real-time, batch, and streaming data movements

Real-Time

• Reacts to data in seconds or even quicker.
• Real-time systems are hard to implement.

Batch

• Batch processing deals with a large volume of data all at once and data-related jobs are typically completed simultaneously in non-stop, sequential order.
• Batch processing is an efficient and low-cost means of data processing.
• Execution of batch processing jobs can be controlled manually, providing further control over how the system treats its data assets.
• Batch processing is only useful if there are no requirements for data to be fresh and current. Real-time systems are suited to processing data that requires these attributes.

Streaming

• Stream processing allows almost instantaneous analysis of data as it streams from one device to another.
• Since data is analyzed quickly, storage may not be a concern (since only computed data is stored while raw data can be dispersed).
• Streaming requires the flow of data into the system to equal the flow of data computing, otherwise issues of data storage and performance can rise.

Modern data ingestion and dissemination frameworks keep core data assets current and accessible

Data ingestion and dissemination frameworks are critical for keeping enterprise data current and relevant.

Data ingestion/dissemination frameworks capture/share data from/to multiple data sources.

Factors to consider when designing a data ingestion/dissemination architecture

What is the mode for data movement?

• The mode for data movement is directly influenced by the size of data being moved and the downstream requirements for data currency.
• Data can move in real-time, as a batch, or as a stream.

What is the ingestion/dissemination architecture deployment strategy?

• Outside of critical security concerns, hosting on the cloud vs. on premises leads to a lower total cost of ownership (TCO) and a higher return on investment (ROI).

How many different and disparate data sources are sending/receiving data?

• Stability comes if there is a good idea about the data sources/recipient and their requirements.

What are the different formats flowing through?

• Is the data in the form of data blocks? Is it structured, semi-unstructured, or unstructured?

What are expected performance SLAs as data flow rate changes?

• Data change rate is defined as the size of changes occurring every hour. It helps in selecting the appropriate tool for data movement.
• Performance is a derivative of latency and throughput, and therefore, data on a cloud is going to have higher latency and lower throughput then if it is kept on premises.
• What is the transfer data size? Are there any file compression and/or file splits applied on the data? What is the average and maximum size of a block object per ingestion/dissemination operation?

What are the security requirements for the data being stored?

• The ingestion/dissemination framework should be able to work through a secure tunnel to collect/share data if needed.

Sensible storage and processing strategy can improve performance and scalability and be cost-effective

The range of options for data storage is staggering...

… but that’s a good thing because the range of data formats that organizations must deal with is also richer than in the past.

Different strokes for different workloads.

The data processing tool to use may depend upon the workloads the system has to manage.

Expanding upon the Risk Management use case (as part of the Loan Provision Capability), one of the outputs for risk assessment is a report that conducts a statistical analysis of customer profiles and separates those that are possibly risky. The data for this report is spread out across different data systems and will need to be collected in a master data management storage location. The business and data architecture team have discussed three critical system needs, noted below:

Keep every core data source on the same page through orchestration

Data orchestration, at its simplest, is the combination of data integration, data processing, and data concurrency management.

Data pipeline orchestration is a cross-cutting process that manages the dependencies between your data integration tasks and scheduled data jobs.

A task or application may periodically fail, and therefore, as a part of our data architecture strategy, there must be provisions for scheduling, rescheduling, replaying, monitoring, retrying, and debugging the entire data pipeline in a holistic way.

Some of the functionality provided by orchestration frameworks are:

• Job scheduling
• Job parametrization
• SLAs tracking, alerting, and notification
• Dependency management
• Error management and retries
• History and audit
• Data storage for metadata
• Log aggregation

2.1 Discuss and document data architecture decisions

1. Using the value maps and associated use cases from Phase 1, determine the data system quality attributes.
2. Use the sample tabular layout on the next slide or develop one of your own.

Download the Solution Architecture Template for documenting data architecture decisions.

Input

• Value Maps and Use Cases

Output

• Initial Set of Data Design Decisions

Materials

• Whiteboard/Flip Charts

Participants

• Business Architect
• Application Architect
• Integration Architect
• Database Architect
• Infrastructure Architect

Example: Data Architecture

There is no free lunch when making the most sensible security architecture decision; tradeoffs are a necessity

Ensuring that any real system is secure is a complex process involving tradeoffs against other important quality attributes (such as performance and usability). When architecting a system, we must understand:

• Its security needs.
• Its security threat landscape.
• Known mitigations for those threats to ensure that we create a system with sound security fundamentals.

The first thing to do when determining security architecture is to conduct a threat and risk assessment (TRA).

Related Research

Optimize Security Mitigation Effectiveness Using STRIDE

• Have a clear picture of:
• Critical data and data flows
• Organizational threat exposure
• Security countermeasure deployment and coverage
• Understand which threats are appropriately mitigated and which are not.
• Generate a list of initiatives to close security gaps.
• Create a quantified risk and security model to reassess program and track improvement.
• Develop measurable information to present to stakeholders.

The 3A’s of strong security: authentication, authorization, and auditing

Authentication

Authentication mechanisms help systems verify that a user is who they claim to be.

Examples of authentication mechanisms are:

• Two-Factor Authentication
• Single Sign-On
• Multi-Factor Authentication
• JWT Over OAUTH

Authorization

Authorization helps systems limit access to allowed features, once a user has been authenticated.

Examples of authentication mechanisms are:

• RBAC
• Certificate Based
• Token Based

Auditing

Securely recording security events through auditing proves that our security mechanisms are working as intended.

Auditing is a function where security teams must collaborate with software engineers early and often to ensure the right kind of audit logs are being captured and recorded.

Info-Tech Insight

Defects in your application software can compromise privacy and integrity even if cryptographic controls are in place. A security architecture made after thorough TRA does not override security risk introduced due to irresponsible software design.

Examples of threat and risk assessments using STRIDE and attack trees

STRIDE is a threat modeling framework and is composed of:

• Spoofing or impersonation of someone other than oneself
• Tampering with data and destroying its integrity
• Repudiation by bypassing system identity controls
• Information disclosure to unauthorized persons
• Denial of service that prevents system or parts of it from being used
• Elevation of privilege so that attackers get rights they should not have

Example of using STRIDE for a TRA on a solution using a payment system
Spoofing	PayPal	Bad actor can send fraudulent payment request for obtaining funds.
Tampering	PayPal	Bad actor accesses data base and can resend fraudulent payment request for obtaining funds.
Repudiation	PayPal	Customer claims, incorrectly, their account made a payment they did not authorize.
Disclosure	PayPal	Private service database has details leaked and made public.
Denial of Service	PayPal	Service is made to slow down through creating a load on the network, causing massive build up of requests
Elevation of Privilege	PayPal	Bad actor attempts to enter someone else’s account by entering incorrect password a number of times.

2.2 Document security architecture risks and mitigations

1. Using STRIDE, attack tree, or any other framework of choice:

• Conduct a TRA for use cases identified in Phase 1.2

Download the Solution Architecture Template for documenting data architecture decisions.

Input

• Dynamic Value Stream Maps

Output

• Security Architecture Risks and Mitigations

Materials

• Whiteboard/Flip Charts

Participants

• Business Architect
• Product Owner
• Security Team
• Application Architect
• Integration Architect

Examples of threat and risk assessments using STRIDE

Phase 3: Upgrade Your System’s Availability

Phase 1

1.1 Articulate an Architectural Vision
1.2 Develop Dynamic Value Stream Maps
1.3 Map Value Streams, Use Cases, and Required Architectural Attributes
1.4 Create a Prioritized List of Architectural Attributes

Phase 2

2.1 Develop a Data Architecture That Supports Transactional and Analytical Needs
2.2 Document Security Architecture Risks and Mitigations

Phase 3

3.1 Document Scalability Architecture
3.2 Document Performance Enhancing Architecture
3.3 Combine the Different Architecture Design Decisions Into a Unified Solution Architecture

This phase will walk you through the following activities:

• Examine architecture for scalable and performant system designs
• Integrate all design decisions made so far into a solution design decision log

This phase involves the following participants:

• Business Architect
• Product Owner
• Application Architect
• Integration Architect
• Database Architect
• Enterprise Architect

Enhance Your Solution Architecture Practice

In a cloud-inspired system architecture, scalability takes center stage as an architectural concern

Scale and scope of workloads are more important now than they were, perhaps, a decade and half back. Architects realize that scalability is not an afterthought. Not dealing with it at the outset can have serious consequences should an application workload suddenly exceed expectations.

Scalability is …

… the ability of a system to handle varying workloads by either increasing or decreasing the computing resources of the system.

An increased workload could include:

• Higher transaction volumes
• A greater number of users

Architecting for scalability is …

… not easy since organizations may not be able to accurately judge, outside of known circumstances, when and why workloads may unexpectedly increase.

A scalable architecture should be planned at the:

• Application Level
• Infrastructure Level
• Database Level

The right amount and kind of scalability is …

… balancing the demands of the system with the supply of attributes.

If demand from system > supply from system:

• Services and products are not useable and deny value to customers.