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IT Optimization
Enterprise Architecture (EA)
Framework
Part 1 - EA Framework
Business Case
Part 1 - EA Framework
Business Case
1. Introduction
2. Opportunity
2.1 Context and history
2.2 Actual situation
2.3 Need for change
2.4 Performance objectives
2.5 Recommended solution
3. Benefits, costs and risks
3.1 Alignment with business strategy
3.2 Benefits and value
3.3 Costs
3.4 Financial indicators
3.5 Risk and risk mitigation strategy
Appendix 1 - EA Maturity Assessment
Appendix 2 – EA Domains
Business Case – Document
Control
Prepared by
Name Title or department Company Signature Date
------------------- Project manager ----- _________________________________
Quality check/review
Date Done by Company Signature Date
--------- ---------- ----- _________________________________
Approved by
Name Title or department Company Signature Date
----- _________________________________
Revision History
Version Date Author Description
0.1 Feb. 6, 08 Alex Antonatos First draft
0.2 ---------- Second draft – including input from quality review
1. Introduction
Enterprise Architecture Framework - A definition
• An Architecture Framework as it applies to enterprises, is a schema or structure for
identifying and organizing the descriptive representation models that are important in the
management of enterprises, more specifically in relation to the business strategy and
processes, the systems, the data and the technological infrastructure.
Enterprise Architecture Framework - The project
• Sub-project of the IT Optimization project that is an on going project synchronized with
budget cycle and the review of the IT road map.
• Focus on recommending:
– Architecture Guidelines and Principles
– Architecture Tools
– Deployment strategy and plan
• To complement and support other components of EA:
– Organization and Skills
– Architecture Process
– Governance and Metrics
– Knowledge Management
– Architecture Prints
2. Opportunity
2.1 Context and history
• XXXXXXX IT organization redesigned to improve IT governance.
• First steps included the implementation of:
– Fast track PMO to harmonize and structure the operation and delivery of IT solutions.
– Enterprise Architecture team to ensure the coordination and reuse of existing
systems, quality of the strategic plan, solution architecture and continuity of the IT
knowledge base.
• Many on going projects and more to come to integrate the business.
• More complex business processes environment / duplication of processes.
• More complex systems environment / duplication of systems.
• More complex data structure / duplication of data.
• More complex technology.
2. Opportunity
2.2 Actual situation
• Important project portfolio with major project dependencies and architecture integration
issues and only 3 Architects acting as internal consultants.
• No architectural framework and limited availability of EA processes, standards and
procedures (EA maturity estimated to 1.83 * ).
• Limited diffusion and communication of current EA processes, standards and procedures
(ex: Integrated Architecture View (IAV)).
• Slow process for business opportunity development and transformation.
• High system and infrastructure maintenance costs.
• High IT implementation costs.
• Limited IT documentation and knowledge transfer – high business and operational risks.
• Ill equipped in terms of methodologies and tools to assess risks and deliver successful
projects, ex. :
– Project Management Office IT initiatives
– Standardization of Finance Master Data
– HR consolidation
– Document Management SharePoint
* Appendix 1 – EA Maturity Assessment
2. Opportunity
2.3 Need for change
 Need for a better understanding of the current and target environments
supported by an EA framework, methodology and tools to:
 Realize the IT roadmap and successfully deliver projects to support the
XXXXXX
 Respond to increasing demands for information.
 Do more with the limited business and IT resources currently
available.
Imagine, if you had to
plan a trip with the map
of just the cities !
First, you would have
to find the main roads
and arteries.
Then the task of filling the
whole map to draw the
itinerary.
2. Opportunity
2.4 Performance objectives
The EA Framework and Tools should:
 Improve the EA maturity level from 1.83 to at least 2.55 within two years.
 Facilitate successful projects delivery - Reduce risks and costs.
 Be readily understandable and helpful as a communication tool.
 Be consistent and structured.
BETTER, FASTER, CHEAPER
Process effectiveness
• Improved productivity
• Increased business agility/ reduced work around
• Lower costs
• Faster cycle time
• Improved output quality
• Improved information quality
• Improved customer satisfaction
Opportunity creation
• Faster response to change and adaptation to new
business requirements
• Faster time-to-market
• Improved opportunity identification
• Improved support for new channels, products and
markets
• Improved partner linkages and relations
Operational efficiency
• Lower infrastructure costs
• Reduced risk of intrusion, loss and downtime
• Lower implementation and support costs
• Procurement efficiencies
• Higher reliability
• Reduced training needs
Development efficiency
• Greater IT components reuse
• Faster system development and integration
• Simpler upgrades
• Reduced technical risks
• Improved security management
• Reduced training needs
BUSINESS EFFECTIVENESS
2. Opportunity
2.5 Recommended solution – Definition
 Select an appropriate architectural framework based on EA best business
practices and guiding principles.
 Recommend groups of models for documenting business strategy and
processes, data, systems and technological infrastructure with logical
placeholders within a repository for more detailed development as EA
projects are undertaken.
 Recommend an integrated set of architectural modeling tools aligned with
the selected architectural framework to support the development and
organization of the models.
 Recommend a deployment strategy and plan by identifying and prioritizing
candidate projects and EA domains *. Start by identifying the project drivers
(reducing operating costs, streamlining an inefficient process, improving
quality, enhancing capacity, etc.).
* See Appendix 2 – EA Domains
2. Opportunity
2.5 Recommended solution - Timeline
Gate 1 - Business Case ---------------
Gate 2 - Project Charter --------------
Solution Architecture ---------------
 Detailed project plan
 Workshops
 Vendors presentations and site visits
 Final Report / Recommendation
Gate 3 – Solution Architecture Review ---------------
Sub-Project closure -----------------------
2. Opportunity
2.5 Recommended solution - Scope
The scope : The Enterprise
To align Business with IT, this implies the following
scopes:
Strategic / Business Scope
– Enterprise governance
– All functional areas and processes
Technical Scope
– All technical areas and processes
Organisational Scope
– All business units including IT
Geography Scope
– All geographical locations
Strategy
Business
Processes
Information / Application
Systems
Technology
The ENTERPRISE
3. Benefits, Costs and Risks3.1 Alignment with business strategy
EA key objective is to align Business with IT (cost reduction and assets efficiency):
– Providing the framework for EA is a requirement to meet this objective.
– The framework will support EA deliverables aimed at:
Understanding how to use the
technology
Understanding what systems
and data to use
Understanding how to deliver services
Strategy
Business
Processes
Information / Application
Systems
Technology
Understanding how to govern the enterprise
– who and where
Understandinghowtoalign
BusinessandIT
UNDERSTANDING WHERE WE ARE AND WHERE WE ARE GOING
3. Benefits, Costs and Risks
3.2 Benefits and value
Once implemented, the EA Framework and Tools will:
• Improve business agility to support dynamic business transformation.
• Support the IT standardization for cost-effective delivery of processes.
• Increase business interoperability between Business Units.
• Optimize resources – people, technology and processes.
• Drive re-usability of architecture models and best practices.
• Facilitate elimination of duplication and redundancy.
• Reduce cost of ownership.
• Improve delivery of training and business services.
• Reduce/avoid recurrent cost:
– Estimated 10% reduction of the planned cost of IT projects analysis and solution
architecture phases (representing about 20% of the total project costs)
2.5 M$ based on a 150 M$ IT projects envelope from mid-2008 to 2010 (0.5M$ in
2008, 1M$ in 2009 and 1M$ in 2010)
- Management processes are not applied at all
- Processes are documented and communicated
- Best practices are followed and automated
0 - Non-Existent
1 - Initial - Processes are ad hoc and disorganized
2 - Repeatable - Processes follow a regular pattern
3 - Defined
4 - Managed - Processes are monitored and measured
5 - Optimized
Symbol Legend
Short Term Goal = 2.55
Long Term Goal = 3.50
Non
Existent
0
Initial
1
Repeatable
2
Defined
3
Managed
4
Optimized
5
Levels of Maturity
Current state = 1.83
(1-2) years (2008, 2009)
(2-3) years (2009,2010)
2007 2008-09 2009-102006
Appendix 1 - EA Maturity Assessment
-------- EA program maturity objectives
End 2007 Target 2008-09
Major gap to fill
Appendix 1 - EA Maturity Assessment

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Enterprise architecture framework business case

  • 2. Part 1 - EA Framework Business Case
  • 3. Part 1 - EA Framework Business Case 1. Introduction 2. Opportunity 2.1 Context and history 2.2 Actual situation 2.3 Need for change 2.4 Performance objectives 2.5 Recommended solution 3. Benefits, costs and risks 3.1 Alignment with business strategy 3.2 Benefits and value 3.3 Costs 3.4 Financial indicators 3.5 Risk and risk mitigation strategy Appendix 1 - EA Maturity Assessment Appendix 2 – EA Domains
  • 4. Business Case – Document Control Prepared by Name Title or department Company Signature Date ------------------- Project manager ----- _________________________________ Quality check/review Date Done by Company Signature Date --------- ---------- ----- _________________________________ Approved by Name Title or department Company Signature Date ----- _________________________________ Revision History Version Date Author Description 0.1 Feb. 6, 08 Alex Antonatos First draft 0.2 ---------- Second draft – including input from quality review
  • 5. 1. Introduction Enterprise Architecture Framework - A definition • An Architecture Framework as it applies to enterprises, is a schema or structure for identifying and organizing the descriptive representation models that are important in the management of enterprises, more specifically in relation to the business strategy and processes, the systems, the data and the technological infrastructure. Enterprise Architecture Framework - The project • Sub-project of the IT Optimization project that is an on going project synchronized with budget cycle and the review of the IT road map. • Focus on recommending: – Architecture Guidelines and Principles – Architecture Tools – Deployment strategy and plan • To complement and support other components of EA: – Organization and Skills – Architecture Process – Governance and Metrics – Knowledge Management – Architecture Prints
  • 6. 2. Opportunity 2.1 Context and history • XXXXXXX IT organization redesigned to improve IT governance. • First steps included the implementation of: – Fast track PMO to harmonize and structure the operation and delivery of IT solutions. – Enterprise Architecture team to ensure the coordination and reuse of existing systems, quality of the strategic plan, solution architecture and continuity of the IT knowledge base. • Many on going projects and more to come to integrate the business. • More complex business processes environment / duplication of processes. • More complex systems environment / duplication of systems. • More complex data structure / duplication of data. • More complex technology.
  • 7. 2. Opportunity 2.2 Actual situation • Important project portfolio with major project dependencies and architecture integration issues and only 3 Architects acting as internal consultants. • No architectural framework and limited availability of EA processes, standards and procedures (EA maturity estimated to 1.83 * ). • Limited diffusion and communication of current EA processes, standards and procedures (ex: Integrated Architecture View (IAV)). • Slow process for business opportunity development and transformation. • High system and infrastructure maintenance costs. • High IT implementation costs. • Limited IT documentation and knowledge transfer – high business and operational risks. • Ill equipped in terms of methodologies and tools to assess risks and deliver successful projects, ex. : – Project Management Office IT initiatives – Standardization of Finance Master Data – HR consolidation – Document Management SharePoint * Appendix 1 – EA Maturity Assessment
  • 8. 2. Opportunity 2.3 Need for change  Need for a better understanding of the current and target environments supported by an EA framework, methodology and tools to:  Realize the IT roadmap and successfully deliver projects to support the XXXXXX  Respond to increasing demands for information.  Do more with the limited business and IT resources currently available. Imagine, if you had to plan a trip with the map of just the cities ! First, you would have to find the main roads and arteries. Then the task of filling the whole map to draw the itinerary.
  • 9. 2. Opportunity 2.4 Performance objectives The EA Framework and Tools should:  Improve the EA maturity level from 1.83 to at least 2.55 within two years.  Facilitate successful projects delivery - Reduce risks and costs.  Be readily understandable and helpful as a communication tool.  Be consistent and structured. BETTER, FASTER, CHEAPER Process effectiveness • Improved productivity • Increased business agility/ reduced work around • Lower costs • Faster cycle time • Improved output quality • Improved information quality • Improved customer satisfaction Opportunity creation • Faster response to change and adaptation to new business requirements • Faster time-to-market • Improved opportunity identification • Improved support for new channels, products and markets • Improved partner linkages and relations Operational efficiency • Lower infrastructure costs • Reduced risk of intrusion, loss and downtime • Lower implementation and support costs • Procurement efficiencies • Higher reliability • Reduced training needs Development efficiency • Greater IT components reuse • Faster system development and integration • Simpler upgrades • Reduced technical risks • Improved security management • Reduced training needs BUSINESS EFFECTIVENESS
  • 10. 2. Opportunity 2.5 Recommended solution – Definition  Select an appropriate architectural framework based on EA best business practices and guiding principles.  Recommend groups of models for documenting business strategy and processes, data, systems and technological infrastructure with logical placeholders within a repository for more detailed development as EA projects are undertaken.  Recommend an integrated set of architectural modeling tools aligned with the selected architectural framework to support the development and organization of the models.  Recommend a deployment strategy and plan by identifying and prioritizing candidate projects and EA domains *. Start by identifying the project drivers (reducing operating costs, streamlining an inefficient process, improving quality, enhancing capacity, etc.). * See Appendix 2 – EA Domains
  • 11. 2. Opportunity 2.5 Recommended solution - Timeline Gate 1 - Business Case --------------- Gate 2 - Project Charter -------------- Solution Architecture ---------------  Detailed project plan  Workshops  Vendors presentations and site visits  Final Report / Recommendation Gate 3 – Solution Architecture Review --------------- Sub-Project closure -----------------------
  • 12. 2. Opportunity 2.5 Recommended solution - Scope The scope : The Enterprise To align Business with IT, this implies the following scopes: Strategic / Business Scope – Enterprise governance – All functional areas and processes Technical Scope – All technical areas and processes Organisational Scope – All business units including IT Geography Scope – All geographical locations Strategy Business Processes Information / Application Systems Technology The ENTERPRISE
  • 13. 3. Benefits, Costs and Risks3.1 Alignment with business strategy EA key objective is to align Business with IT (cost reduction and assets efficiency): – Providing the framework for EA is a requirement to meet this objective. – The framework will support EA deliverables aimed at: Understanding how to use the technology Understanding what systems and data to use Understanding how to deliver services Strategy Business Processes Information / Application Systems Technology Understanding how to govern the enterprise – who and where Understandinghowtoalign BusinessandIT UNDERSTANDING WHERE WE ARE AND WHERE WE ARE GOING
  • 14. 3. Benefits, Costs and Risks 3.2 Benefits and value Once implemented, the EA Framework and Tools will: • Improve business agility to support dynamic business transformation. • Support the IT standardization for cost-effective delivery of processes. • Increase business interoperability between Business Units. • Optimize resources – people, technology and processes. • Drive re-usability of architecture models and best practices. • Facilitate elimination of duplication and redundancy. • Reduce cost of ownership. • Improve delivery of training and business services. • Reduce/avoid recurrent cost: – Estimated 10% reduction of the planned cost of IT projects analysis and solution architecture phases (representing about 20% of the total project costs) 2.5 M$ based on a 150 M$ IT projects envelope from mid-2008 to 2010 (0.5M$ in 2008, 1M$ in 2009 and 1M$ in 2010)
  • 15. - Management processes are not applied at all - Processes are documented and communicated - Best practices are followed and automated 0 - Non-Existent 1 - Initial - Processes are ad hoc and disorganized 2 - Repeatable - Processes follow a regular pattern 3 - Defined 4 - Managed - Processes are monitored and measured 5 - Optimized Symbol Legend Short Term Goal = 2.55 Long Term Goal = 3.50 Non Existent 0 Initial 1 Repeatable 2 Defined 3 Managed 4 Optimized 5 Levels of Maturity Current state = 1.83 (1-2) years (2008, 2009) (2-3) years (2009,2010) 2007 2008-09 2009-102006 Appendix 1 - EA Maturity Assessment -------- EA program maturity objectives
  • 16. End 2007 Target 2008-09 Major gap to fill Appendix 1 - EA Maturity Assessment