Making Enterprise Architecture (EA) Strategic with Business and Information Architecture

Making Enterprise Architecture (EA) Strategic with Business and Information Architecture Sohel Aziz, Infosys Technologies

Today, enterprises need to handle a variety of internal and external drivers...
Reduced vertical integration and global distribution of workforce
Decomposition of the value chain also in services industries, e.g. financial services
Networked value creation
Restructurings, Mergers & Acquisitions
Leverage synergies
Get access to markets
Faster innovation cycles
Agility is a given to maintain margins
Standardization, automation and decomposition of the value chain ...and they react in many ways, for example...
Globalization of the market place
Emerging economies are attractice markets, but they require operations in a variety of geographies, cultures and legislations
Increasing competition
Markets become more transparent through information availability
Demand for Responsibility
Increasing regulation and sensitivities of both capital markets and public opinion require better control
Enterprises are driven by macro-trends like...

...to help organizations in this environment, EA has to expand its scope
IT decisions made in business units
Local optimization
Specific local business processes
Cost-effectiveness and reliability of overall IT landscape
Consistency in execution
End to end optimization of operating model
Enterprise view of data and applications
Modularized view of business functions and supporting operational infrastructure
Agility through recomposability
Business Silos Standard Technology Optimized Core Business Modularity [Source: Ross/Weill/Robertson 2006] The Enterprise Architecture is the organizing logic for business processes and IT infrastructure, reflecting the integration and standardization requirements of the company‘s operating model.

Depending on architectural maturity, different aspects of top and bottom line can be addressed Operational Benefit Operational Opportunities IT Opportunities Increase Business Transformation IT Cost IT Risk Decrease Business-IT Alignment Standardization EA continues to have more of a " cost focus " Operational Cost Operational Risk

Technology standards are still main deliverables – but information and business are becoming more important

EA is aiming at enabling business agility...

Business Architecture is increasing in importance – although the technical focus is still strong.

Integration and information integrity are core objectives, driven by focus on SOA and Data Architecture

EA is becoming strategic at the corporate level... Enterprise Architecture plays an active role in strategic business planning In more and more cases, it is reporting to non-IT functions such as Corporate Strategy It is an important tool for IT governance

But, implementation is still a weak point... Communication continues to be a major effectiveness hindrance Adherence to EA continues to have ‚no bite‘ 44% of EA teams do not collect metrics 41% do not have a full-time architecture team

EA is maturing across a variety of dimensions Objective Scope Deliverables Specialization Development Business-IT Alignment Architecture Development Business Reference Models Industry Specific Standardization IT Organization Documentation Definition IT Architecture and Standards Generic Business Transformation Architecture Governance Organizational Architecture Cross-Industry

The " Architecture of the Enterprise " is outside the frame of IT Support Functions Finance HR Legal Procurement Logistics Facilities Research & Development Production Marketing IT Sales Corporate Value Chain Market Authorities Suppliers Corporate Boundary Ecosystem Passenger Vehicles Trucks US Europe APAC

IT should not assume a complete picture – it only sees the projection of " IT elements " of EA Support Functions Finance HR Legal Procurement Logistics Facilities Research & Development Production Corporate Value Chain Market Authorities Suppliers Corporate Boundary Ecosystem Passenger Vehicles Trucks Marketing Sales Campaign US Europe APAC IT Sales Customer

Furthermore, EA needs to be able to drive multiple, interrelated streams of change across multiple domains Information Technology Transformation HR Transformation Business Architecture ( " How am I going to create value and competitive advantage in the future? " ) Product Development Process Optimization Production Facilities Opt. Reporting Structure Role Definitions Incentives Structure Information Application Technology People Devlpmnt Production Transformation … .

EA, as a discipline, will need to face a broader set of questions
What is the scope of " Architecture " in " Enterprise Architecture " really mean? 3 of 4 architectures in most EA activities are IT related the one or the other way.
What does the term “ Business Architecture " mean? Three sets of models for IT, one for the whole rest of the organization? Is that right?
Creating organizational capabilities involves many integration of people, process information and technology. Can that be driven by IT?
The structured, architectural approach has worked well within the realm of IT. How can it be applied to other areas or the whole of the enterprise? Can we " architect " an organization?
Can Enterprise Architecture become a tool for transforming the organization? And should it be?
What will the role of IT be in the future?

This implies changes to how we deliver EA
It is not possible to enumerate all domains required to describe the various parts of architecture
The framework must be flexible and extensible, while organizing the interfaces between the architectures
Manage change of multiple architectures simultaneously
No linear order of activities leading to need for effective transformation management
Issue driven approach of business consulting will need to be married with structure, top-down approach of Enterprise Architecture
The link between strategy and execution will be key
Focus on business process and information instead of application packages and technology, that will drive
Service Oriented Composite Application Architecture
Dynamic, Pervasive Infrastructure

Going forward, Enterprise Architects need to build business capabilities and increase architectural maturity
Enterprise Architects’ responsibilities are growing:
More to do! Maintaining the technology architecture must be made easy on resources to be able to expand EA’s scope
Architects need to build credibility throughout the organization
This needs to manifest in their impact and acceptance within the organization (especially the business)
Measuring architectural maturity through a metrics program is best
As Enterprise Architecture starts rearranging the elements of business, architecture teams need to understand the dynamics of a business
by building skills among existing architecture teams
by attracting strategic thinkers from non-IT and corporate level organizational units

For More Information on Enterprise Architecture Visit www.infosys.com /ea Learn More About the Enterprise Architecture Survey 2007 www.infosys.com /ea-survey

Thank you “ The contents of this document are proprietary and confidential to Infosys Technologies Ltd. and may not be disclosed in whole or in part at any time, to any third party without the prior written consent of Infosys Technologies Ltd.” “ © 2008 Infosys Technologies Ltd. All rights reserved. Copyright in the whole and any part of this document belongs to Infosys Technologies Ltd. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole or in part, in any manner or form, or in any media, without the prior written consent of Infosys Technologies Ltd.”

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Making Enterprise Architecture (EA) Strategic with Business and Information Architecture

by Infosys on Jun 10, 2008

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