Ea As Strategy Ver1 0


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Unpacking of EA as Strategy

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  • 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.
  • Ea As Strategy Ver1 0

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