IT Paradox More Capacity More Capability Find Cost Reductions Find Efficiencies Find Opportunities Find Why? Cost Reductions Martin Curley, Intel Corp. Help Enable Growth Positive Growth Help Improve Margins Flat Growth Help Reduce Costs Negative Growth IT Budget Revenue Demand for IT Services
Architecture Viewpoint (Design) Enterprise Architecture identifies corporate systems, their key properties, and their interrelationships, and plans for and guides the evolution of the enterprise systems to support and enable the evolution of the enterprise in its pursuit of strategic advantage.
EA provides the framework and language to make the critical link between the strategy, mission requirements, processes, skill sets, and the technology needed to enable the business and accomplish an organization’s mission *
EA Process and Products
Process – e.g. Mission Thread Analysis, Intelligence Planning
Product – e.g. mission architectures; operational & system views; mgmt decision support reports; Functional Requirements Documents (FRD); assessments of gaps, shortfalls, and duplicative investments
“ An EA is the explicit description and documentation of the current and desired relationships among business and management processes and information technology.” Transition Plans Current State Business Process Organizational Relationships Data IT Capabilities Target State Business Process Organizational Relationships Data IT Capabilities
Business Decision Axes Business Value IT Efficiency Financial Attractiveness How well the investment will use or enhance the existing infrastructure (Y Axis) The corporate impact of an investment on business strategy and priorities. (X Axis) The financial aspects of the investment including level of investment required, cost/benefit ratio, and net present value. (Z Axis)
Business Intelligence describes a set of concepts and methods to improve business decision making by using fact-based support systems
Executive Information Systems
BI Demands Another Dilbert!
Scope Integrate across sources of record Business Process System Policy FDE Process Application Entity B/F/S/T Requirement Organization Table Component Node Objective Data Flow Role Location Project Architecture PPM Project Portfolio & Analysis
Increased difficulty to identify high net worth customers by location
Missing information for sales reps (products) impacts cross-selling
Increased revenue leakage
Not meeting “Do not solicit” compliance
Regulatory audits are ad hoc and unpredictable
Increased difficulty identifying and selling customer loyalty discounts correctly
Marketing analysts spend 75-80% of their time accumulating data and building reports
Loss of manager time spent manually entering data
Inaccurate counts leads to time spent reconciling reports
No “early warning” for key indicators and metrics
Operational Efficiency Impact
Increased costs and complexity of cleansing data or processing corrections (“25 step process”)
Errors in systems introduce need for significant rewind and rework
No reduction in licensing costs for address standardization and correction
Need manual data cleanup processes outside business stream
Customer Experience Impact
Increased time to find all information for customer due to data access
Inability to provide consistent view of billing to customers
Data Quality redux GiGo: garbage in, garbage out ‘ Cos it’s in the computer, don’t mean it’s right It’s not the things you don’t know that matter, it’s the things you know that aren’t so. Will Rogers, Famous Okie GI specialist “ But there are also unknown unknowns: the ones we don't know we don't know.” Donald Rumsfeld “ Fast is fine, but accuracy is everything.” Wyatt Earp
Metrics for Quality End User Data – Building Blocks Difficult to Measure Complete Valid Accurate Quality of Data Correct CORRECT - The fields are complete, valid, accurate data, and correct for that transaction (e.g. BT does not enter their own name and address when they intend to resell the equipment) ACCURATE - The fields do not contradict (e.g. the city is not Moscow and the country UK or the Company is BT but the address is the end user’s) VALID -The fields are filled with valid entries (e.g. address line 1 does not contain “TBD” or the company name is not “Unknown”) COMPLETE - The required fields are filled with data At What cost or value to the business? (another axis?)
Data Principles at a glance Single Source Of Truth Data is an asset Data is accessible Data Privacy Data Security Data Definitions & Common Vocabulary Data Trustee Data Quality Data Steward
Determining the Intangibles Tools such as Survey Questionnaires, and pair comparisons are used to capture non deterministic values of areas such as risk, and efficiency
Determining the Intangibles The IT Portfolio is composed of the Application Portfolio and the Project Portfolio. Each can be developed separately and then analyzed as a whole to assure the best enterprise fit.
Example EA Maturity Stages Stage Organization Characteristics Characteristic EA Activities & Benefits 0 Chaos – no IT architecture or architecture management; No one knows about, is responsible, or knows where to look for all business processes, applications, data sources, technical components, etc. None 1 Basic application and data architectures captured using a common modeling tool or graphical diagramming tool. Architectures may exist in different files and different servers. However, everyone generally knows who to contact. Some business processes are captured. IT able to visualize major dependencies and relationships, though the visualization step may be tedious and time consuming.
Major applications modeled in Visio; Able to identify major applications
Primary data sources modeled in Visio or a system architecture tool (i.e., Erwin); Able to identify major data elements for information consumption
2 Basic EA processes, procedures and methodologies are implemented and practiced. Primary high-value applications, data and business processes are documented using more sophisticated tools.
Same as Stage 1 PLUS:
Common methodologies and best practices documented
Primary data sources and applications modeled in common EA tool; Easy Access
High value business processes documented; Easy Access
3 EA used by Business to manage assets and plan future acquisitions. EA is implemented with clear business purpose and goals. High-value processes, applications and data are mapped into common EA repository with relevant architecture details; Financials associated with each asset. Gaps between current and desired future states easily visualized; reports identify compliance with EA initiatives and procedures. Business processes, applications and data inter-dependencies mapped and visualized.
Same as Stage 2 PLUS:
High-value business processes, applications and data models integrated and captured in common repository; dependencies modeled
Metadata used by business to manage, plan
Dashboards display EA metrics of value
All EA activities have clear purpose, add business value
4 EA is Organizational Change Agent; enables rapid adaptation to rapidly changing market. Used for mapping , planning future enterprise. Architecture enables new business ventures; new acquisitions are integrated seamlessly; Optimization is a daily activity - candidate process, application and data candidates optimized; Integrated EA & portfolio management aligns architecture to corporate strategy; processes inventoried for contribution and function association; core business drivers identified, prioritized, and correlated to contributing processes
Same as Stage 3 PLUS:
Senior Execs use EA dashboards for monitoring progress toward strategy; use for planning new strategies;
IT uses EA data reports to optimize for revenue, cost, efficiency;
Do We Have Alignment? Objectives? Processes? Strategies? Value? IT Projects? Application Portfolio? Technical Infrastructure IT Costs? Business IT … does business mean? … does IT mean? Business Unit Viewpoint? Finance Viewpoint? CED Viewpoint?