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Enterprise Architecture as Strategy – Unpacked ver. 1-0 Creating a Foundation for Business Execution
Think Change What seems like only a ripple today... Can become the wave of the future
Overall Model – Foundation for Execution The Enterprise Architecture is the organising logic for business processes and IT infrastructure, reflecting the integration and standardisation requirements of the organisations operating model The operating model is the necessary level of business integration and standardisation for delivering goods and services to customers The IT engagement model is the system of governance mechanisms that ensure business and IT projects achieve both local and company wide objectives
Four Operating Models
Applying the Operating Model
Implementing the Operating Model via Enterprise Architecture
Enterprise Architecture for a Unification Model Linked and standard (core) processes Shared Data Process Key Customers Linking and automating technologies Automating Technologies Required Optional Linking Technologies Business Process Outcome Data Technology Customer Types
Enterprise Architecture for a Diversification Model Shared Processes Business-unit-specific data Process Shared Technologies Business-unit-specific customers Required Optional Business Process Technology Outcome Data Stack Technology Customer Types
Enterprise Architecture for a Coordination Model Shared Data Integrating Technology Process Shared Customers Linked Processes Required Optional Business Process Outcome Data Technology Customer Types
Enterprise Architecture for a Replication Model Automating  and linking technologies Business-unit-specific data Process Standardised Processes Business-unit-specific customers Required Optional Business Process Outcome Data Technology Customer Types
Navigate the Stages of Enterprise Architecture Maturity
Stages of Enterprise Architecture Maturity  Business Silos Architecture:  Where companies look to maximize individual business unit needs of functional needs Standardised Technology Architecture:  Providing IT efficiencies through technology standardisation and, in most cases, increased centralisation of technology management Optimised Core Architecture: Which provides company wide data and process standardisation as appropriate for the operating model Business Modularity Architecture: Where companies manage and reuse loosely coupled IT-enabled business process components to preserve global standards while enabling local differences
Architecture Maturity Stages
Changes in organisational flexibility through Architecture Stages
Learning requirements of the Architecture Stages
How to apply Architecture Maturity Stages in Your Company Focus architecture on strategic organisational processes No company can afford to eliminate all its silos Move incrementally Skipping stages leads to either failures or delayed benefits Recognise that complex organisations have enterprise architectures at multiple levels Architectures at different levels of the company support different business objectives Build an architecture capability-in-house Business Strategy and IT Architecture requires a close relationship Aim for Business Modularity More-mature architectures reported greater success in achieving strategic goals
Cash In on the Learning
The Benefits of Enterprise Architecture Reduced IT Costs IT Operations unit costs Application maintenance costs Increased IT Responsiveness Improved Risk Management Reduced business risk Increased disaster tolerance Reduced security breaches Increased Management Satisfaction Greater senior management satisfaction Greater business unit leader satisfaction Enhanced Strategic Business Outcomes Better operational excellence More customer intimacy Greater product leadership More Strategic agility
Enterprise Architecture Management Practices
Enterprise Architecture Management Practices
How Architecture Management Practices Evolve
Build the Foundation One Project at a Time
The IT Engagement Model Companywide IT Governance: Decision rights and accountability framework to encourage desirable behaviour in the use of IT Project Management: Formalised project methodology, with clear deliverables and regular checkpoints Linking Mechanisms: Processes and decision-making bodies that align  incentives and connect the project-level activities to the overall IT Governance
The IT Engagement Model ALIGNMENT Business IT Company Level Companywide IT Governance Company strategy and operations Enterprise Architecture CORDINATION Business unit Level Linking mechanisms Business unit strategy and operations Business unit architecture Project Management Project team Level Project Plan Project IT architecture
Types of Linking Mechanisms Business IT Business Linkage ,[object Object]
Business sponsors for projects
Early stage involvement of people representing companywide objectives (e.g. Hot housing)
Regular project reviews conducted by company level office
Post-Implementation review tied to company goals
Bonuses and incentives tied to company goals
Process ownersEnterprise Level Companywide IT Governance Business unit Level Project Management Architecture Linkage ,[object Object]

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Ea As Strategy Ver1 0

  • 1. Enterprise Architecture as Strategy – Unpacked ver. 1-0 Creating a Foundation for Business Execution
  • 2. Think Change What seems like only a ripple today... Can become the wave of the future
  • 3. Overall Model – Foundation for Execution The Enterprise Architecture is the organising logic for business processes and IT infrastructure, reflecting the integration and standardisation requirements of the organisations operating model The operating model is the necessary level of business integration and standardisation for delivering goods and services to customers The IT engagement model is the system of governance mechanisms that ensure business and IT projects achieve both local and company wide objectives
  • 6. Implementing the Operating Model via Enterprise Architecture
  • 7. Enterprise Architecture for a Unification Model Linked and standard (core) processes Shared Data Process Key Customers Linking and automating technologies Automating Technologies Required Optional Linking Technologies Business Process Outcome Data Technology Customer Types
  • 8. Enterprise Architecture for a Diversification Model Shared Processes Business-unit-specific data Process Shared Technologies Business-unit-specific customers Required Optional Business Process Technology Outcome Data Stack Technology Customer Types
  • 9. Enterprise Architecture for a Coordination Model Shared Data Integrating Technology Process Shared Customers Linked Processes Required Optional Business Process Outcome Data Technology Customer Types
  • 10. Enterprise Architecture for a Replication Model Automating and linking technologies Business-unit-specific data Process Standardised Processes Business-unit-specific customers Required Optional Business Process Outcome Data Technology Customer Types
  • 11. Navigate the Stages of Enterprise Architecture Maturity
  • 12. Stages of Enterprise Architecture Maturity Business Silos Architecture: Where companies look to maximize individual business unit needs of functional needs Standardised Technology Architecture: Providing IT efficiencies through technology standardisation and, in most cases, increased centralisation of technology management Optimised Core Architecture: Which provides company wide data and process standardisation as appropriate for the operating model Business Modularity Architecture: Where companies manage and reuse loosely coupled IT-enabled business process components to preserve global standards while enabling local differences
  • 14. Changes in organisational flexibility through Architecture Stages
  • 15. Learning requirements of the Architecture Stages
  • 16. How to apply Architecture Maturity Stages in Your Company Focus architecture on strategic organisational processes No company can afford to eliminate all its silos Move incrementally Skipping stages leads to either failures or delayed benefits Recognise that complex organisations have enterprise architectures at multiple levels Architectures at different levels of the company support different business objectives Build an architecture capability-in-house Business Strategy and IT Architecture requires a close relationship Aim for Business Modularity More-mature architectures reported greater success in achieving strategic goals
  • 17. Cash In on the Learning
  • 18. The Benefits of Enterprise Architecture Reduced IT Costs IT Operations unit costs Application maintenance costs Increased IT Responsiveness Improved Risk Management Reduced business risk Increased disaster tolerance Reduced security breaches Increased Management Satisfaction Greater senior management satisfaction Greater business unit leader satisfaction Enhanced Strategic Business Outcomes Better operational excellence More customer intimacy Greater product leadership More Strategic agility
  • 21. How Architecture Management Practices Evolve
  • 22. Build the Foundation One Project at a Time
  • 23. The IT Engagement Model Companywide IT Governance: Decision rights and accountability framework to encourage desirable behaviour in the use of IT Project Management: Formalised project methodology, with clear deliverables and regular checkpoints Linking Mechanisms: Processes and decision-making bodies that align incentives and connect the project-level activities to the overall IT Governance
  • 24. The IT Engagement Model ALIGNMENT Business IT Company Level Companywide IT Governance Company strategy and operations Enterprise Architecture CORDINATION Business unit Level Linking mechanisms Business unit strategy and operations Business unit architecture Project Management Project team Level Project Plan Project IT architecture
  • 25.
  • 27. Early stage involvement of people representing companywide objectives (e.g. Hot housing)
  • 28. Regular project reviews conducted by company level office
  • 30. Bonuses and incentives tied to company goals
  • 31.
  • 34.
  • 36.
  • 38. Three Outsourcing Models Three mutually exclusive outsourcing Models
  • 39. Different outsourcing relationships are suited to different stages
  • 40. Sources of Reference J.W.Ross, P. Weill, D.C. Robertson, Enterprise Archictecture as Strategy, 2006, Havard Business School Press. ISBN: 1-59139-839-8 http://www.architectureasstrategy.com
  • 41. If you have one last breadth use it to say...

Notes de l'éditeur

  1. Three Elements:Key Customers ( i.e. Segments and/or channels) the company servesKey Processes to be standardised and integratedShared Data – to integrate processes and and serve customers
  2. When developing a Diversification model core diagram, start with the technologies that can be shared to provide economies of scale, standardisation, or other benefits. Incorporate the remaining elements – key customer types, business processes, and data – only when needed for the operating model.
  3. When designing a Coordination model core diagram, start with the key customers (e.g. Segments and channels) to be shared across business units. Next, identify the subset of the company data that must be shared across the business units to serve key customers. Then, identify any technology that is key to the data integration. Finally, consider whether to include business process elements.
  4. When designing a Replication model, start with the key processes to be standardised and replicated across the business units. Next, identify the technologies automating those key processes. Then consider what linking technologies, if any, can be shared across the business units.
  5. Shift from local optimisation to global optimisation – this has an implication on organisation flexibility.
  6. Shift from local optimisation to global optimisation – this has an implication on organisation flexibility.