Ea Value And Benefits Ver1 0


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A presentation to define the Value and Benefits of implementing Enterprise Architecture

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Ea Value And Benefits Ver1 0

  1. 1. Enterprise Architecture Value and Benefits “ When it comes to executing your strategy , your enterprise architecture may matter far more than your strategy itself ” Enterprise Architecture as Strategy
  2. 2. Think Change What seems like only a ripple today... Can become the wave of the future
  3. 3. What is the Objective of EA within the Organisation? <ul><li>The objective is focused on the importance of the relationship among goals and functions within the organisation, and the manner in which these elements enable the strategy. </li></ul>
  4. 4. Enterprise Architecture Value Organisation <ul><li>EA Value </li></ul><ul><li>Insight </li></ul><ul><li>Guidance </li></ul><ul><li>Compliance </li></ul><ul><li>Governance </li></ul><ul><li>Facilitation </li></ul>
  5. 5. EA Value Identified <ul><li>Insight </li></ul><ul><ul><li>Enterprise Architecture can/should provide the business with deep, stakeholder specific insight into how all components within the enterprise are related to each other ,depend on each other and function in a stable or possibly ineffective and/or inefficient state. </li></ul></ul><ul><li>Guidance </li></ul><ul><ul><li>Following on from providing insight into the state of the enterprise and what is working and what is not working (well or viably), Enterprise Architecture provides business with guidance to what needs or can be done to achieve viability or optimal state (for the current understood desired state of the enterprise). </li></ul></ul><ul><li>Compliance </li></ul><ul><ul><li>Also directly linked with Guidance is the value in providing a measure of compliance of the defined solution to the holistic Enterprise Architecture , in the sense that it needs to be checked that the proposed solution does not violate or deviate from the greater EA or that it cause conflict with other areas or components of the holistic EA. It also provides a control to test viability of a solution prior to embarking on development of a proposed solution. </li></ul></ul><ul><ul><li>Governance </li></ul></ul><ul><ul><li>It is something that happens so frequently, that what is being developed (or changed) deviates from the initial approved solution or spiral out of control due to a lack of an objective control source. In that EA plays an integral role in governing the project progress through staged controls to ensure that the development stays compliant to the holistic EA, the project/change purpose (and requirements) and not break the budget either. </li></ul></ul><ul><ul><li>Facilitation </li></ul></ul><ul><ul><li>Enterprise Architecture provided the initial view and what can/should change, so it should also function as the tool to show where the implementation will impact , where it should integrate and what change management needs to take place. A comprehensive, holistic EA should be a guiding tool to facilitate the smooth post development change implementation </li></ul></ul>
  6. 6. Graphical Representation of Value
  7. 7. EA goes beyond Value Creation into Value Innovation Eliminate Reduce Create Raise VI Value Innovation
  8. 8. Four Actions Framework – Creating Value Innovation Eliminate Which of the factors that the industry takes for granted should be eliminated? Reduce Which factors should be reduced well below the industry standard? Raise Which factors should be raised well above the industry standard? Create Which factors should be created that the industry has never offered? A new Value Curve
  9. 9. Enterprise Architecture Metrics Level 1 –Metrics This will be company specific aligned to Strategic Objectives Level 2 –Metrics These metrics will be aligned to industry specific measures ensuring Value within the industry Level 3 –Metrics These metrics will be aligned to regulatory specific measures Company Specific Metrics (EA Maturity Levels) Industry Standard Specific Metrics (E.g. Payment Specific) Regulated Metrics (E.g. SOX and BASEL II)
  10. 10. What are EA Benefits? <ul><li>Evolutionary EA development & governance </li></ul><ul><li>Improved risk management </li></ul><ul><li>Provides a holistic view of the enterprise </li></ul><ul><li>Improved staff management </li></ul><ul><li>Improved alignment to business strategy </li></ul><ul><li>Improved strategic agility </li></ul><ul><li>Improved alignment with partners </li></ul><ul><li>Increased economies of scale </li></ul><ul><li>Improved asset management </li></ul><ul><li>Increased efficiency </li></ul><ul><li>Improved business processes </li></ul><ul><li>Increased interoperability and integration </li></ul><ul><li>Improved business-IT alignment </li></ul><ul><li>Increased market value </li></ul><ul><li>Improved change management </li></ul><ul><li>Increased quality </li></ul><ul><li>Improved communication </li></ul><ul><li>Increased reusability </li></ul><ul><li>Improved customer orientation </li></ul><ul><li>Increased stability </li></ul><ul><li>Improved decision making </li></ul><ul><li>Increased standardization </li></ul><ul><li>Improved innovation </li></ul><ul><li>Reduced complexity </li></ul><ul><li>Improved management of IT investments </li></ul><ul><li>Reduced costs </li></ul><ul><li>Shortened cycle times </li></ul>
  11. 11. Categorisation of EA Benefits Source: (Niemi 2006), model applied from (Giaglis,Mylonopoulos et al.)
  12. 12. What is the cost of deploying an EA? EA Value = EA Benefits – EA Costs EA Cost = EA Benefits – EA Value Therefore What is the Cost of EA Benefits? What is the Cost of EA Value? Where Cost can be classified into direct and indirect costs
  13. 13. Calculating the ROI of Deploying Enterprise Architecture? <ul><li>Quantify the Costs of: </li></ul><ul><ul><li>Defining standards and guidelines. </li></ul></ul><ul><ul><li>Preparing reference architecture </li></ul></ul><ul><ul><li>Defining and maintaining IT roadmap </li></ul></ul><ul><ul><li>Governance activities. </li></ul></ul><ul><ul><li>Consultancy </li></ul></ul><ul><ul><li>Defining Strategy for moving from &quot;as-is&quot; to &quot;to-be&quot; architecture </li></ul></ul>
  14. 14. Quantifying Cost Reductions (Gartner 2006) <ul><li>How much can we save by eliminating redundancy and moving to shared IT services? </li></ul><ul><ul><li>Up to 40%, but probably 15% to 20% over the total costs for the particular functional area of IT. </li></ul></ul><ul><li>What type of savings can we expect from server consolidation? </li></ul><ul><ul><li>Typically, 20% in terms of asset cost, but not necessarily any savings in personnel costs that make up the entire TCO picture. </li></ul></ul><ul><li>What type of savings should we expect from implementing process models, such as IT Information Library? </li></ul><ul><ul><li>Expect 20% to 30% of overall operating costs over three years. </li></ul></ul><ul><ul><li>What other IT initiatives have the potential to materially reduce IT costs? </li></ul></ul><ul><ul><li>Degree of reuse in application development — </li></ul></ul><ul><ul><li>Extent and age of the applications portfolio </li></ul></ul><ul><ul><li>Flexibility of IT staff (for example, the ability among IT personnel to take on various roles) </li></ul></ul><ul><ul><li>Formality and quality of asset management processes </li></ul></ul>
  15. 15. If you have one last breath use it to say...