The document discusses how enterprise architecture can be used to establish an organizing logic for business processes and IT infrastructure that supports different operating models for businesses ranging from unification to replication. It also outlines four stages of enterprise architecture maturity from business silos to business modularity and how architecture management practices evolve at each stage. Finally, it discusses how enterprise architecture can be leveraged to guide outsourcing strategies and objectives.
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
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
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
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
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
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
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
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
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.
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.
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.
Shift from local optimisation to global optimisation – this has an implication on organisation flexibility.
Shift from local optimisation to global optimisation – this has an implication on organisation flexibility.