Maximizing EA Impact: Using Business Architecture to Achieve Alignment

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An approach and meta-model for business architecture and using it to ensure the technical architecture is aligned.

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Maximizing EA Impact: Using Business Architecture to Achieve Alignment

  1. 1. Maximizing EA Impact: Using Business Architecture to Achieve Alignment David Baker Chief Architect, Diamond Management & Technology Consultants david.baker@diamondconsultants.com October 25, 2006
  2. 2. Business / IT Alignment occurs when IT delivers the right solution, at the right time, for the right cost IT Business Managers wants to know want to know Enterprise How can I innovate? Have we done this before? Architecture How quickly can I get it? How do we get it done? How much does it cost / save? How do I make sure it’s done What are the risks? correctly? What’s possible? What’s possible? Technical Staff wants to know What do I build? What do I build it with? When do I build it?
  3. 3. Alignment has traditionally been hard to achieve, one cause being the siloed approach to Business and IT Strategies External Business IT Strategy Strategy Organizational IT Internal infrastructure infrastructure and processes and processes Business Information Technology Old Model (Henderson and Venkatraman 1993)
  4. 4. Additional roadblocks often thwart alignment  IT does not engage the Business  Technology driven solutions “offered” to the Business  Solutions looking for problems to solve  Organizational anomalies  Business strategy is too vague  Mission, vision, goals exist  Then what?  Complexity of the business  Do we plan for the whole enterprise?  Enterprise Architecture considered “too complex”, “too costly”
  5. 5. What you can do to achieve alignment  IT should engage the Business  Eat the elephant one bite at a time  Measure the result (Business metrics, not IT metrics)  Change the organization
  6. 6. Alignment can be achieved through collaboration on a business- driven plan  Business owns Business Architecture  Leadership (strategy & operations)  Business SMEs  IT Facilitates Solution Architecture  IT owns (platform independent)  Business approves Technical Architecture  IT owns (infrastructure & processes)  Governed by Business and Solution Architecture Suggested Approach
  7. 7. The result is a business-capability driven blueprint that integrates business strategy, business operations and IT solution support Business Architecture Business Business Strategy Operations Desired Business Capabilities Blueprint & Solution Architecture Roadmap Information Application Interface Model Model Model Infrastructure Model Technology Architecture Data App Development Execution Operations Network Security Models Models Models Models Models Models Models
  8. 8. Business architecture and blueprinting must be integrated into the IT operating model As-Built Architecture Approved Projects Business Enterprise Release Project Planning Business Strategic Architecture Execution (Portfolio (SDLC) Operations Planning Blueprinting Mgmt) IT Governance (incl. EA) Objectives & Measurement Indicators Business Architecture Benefit Results Metrics Business Benefit Results
  9. 9. Engage the Business through development of Business Guiding Principles  A collection of position statements used to assist decision making  Positions unlikely to change over the next two to three years  Filters for decision-making . . . guidelines, not hard and fast rules  Eliminate blueprint solutions that are not consistent with the organization’s goals and objectives  Defined jointly by Business and IT leadership
  10. 10. There are two ways to engage the Business in development of Guiding Principles To what extent should common1 business processes across business units be standardized? None All Business Units are A sub-set of common Business processes are free to use their own processes are standardized across all standards for standardized across business units common processes business units Current Position 1Common Desired Position is defined as being shared by two or more business units Workbook Method Workshop Method  Create workbooks  Create workbooks  Distribute to business SMEs  Hold consensus building workshop  Collect results  document results  Hold feedback / consensus meeting
  11. 11. Engage the Business by documenting, and driving additional detail into, the business strategy Strategic Business Architecture  A comprehensive statement covering MISSION the major functions and operations that the program addresses KEY DRIVERS & GUIDING  An inspirational, forward-thinking VISION view of what the program wants to achieve PRINCIPLES  The top priorities that would achieve GOAL GOAL GOAL GOAL the vision  A set of realistic outcomes tracked by PERFORMANCE performance indicators that OBJECTIVE INDICATORS collectively support goal attainment CAPABILITIES  A description of how the business plans to achieve the objectives REQUIREMENTS  A description of what should be implemented
  12. 12. Strategic Business Architecture deliverables from a Federal Agency EA SBA Doc What it is What was done Working Documents • Guiding principles provide • Used a Guiding Principles Guiding filters and guidelines to ensure workbook to gather individual Principles that solutions are consistent SME opinions, held feedback with DOJ’s strategic goals and meetings to reconcile • Word doc & PowerPoint objectives. • Identifies forces for change • Research and document Key Drivers that affect how DOJ conducts legislation, directives, and its business and approaches department level strategic the UFMS program. documents • Excel spreadsheet Mission, • The mission, vision, goals, and • Utilized existing mission, Vision, objectives articulate the vision and goals. Leveraged Goals, program’s strategy in a SMEs to verify and drive out Objectives structured manner. objectives (per goal) • PowerPoint • Identifies metrics to measure IT • Utilized existing performance Performance performance. Establishes a indicators, linked indicators to Indicators clear line of sight from the their appropriate objectives strategy to the measures. • Excel spreadsheet • These statements describe, in • Worked with SMEs to develop Business business terms, how the goals detailed enterprise-level Capabilities and objectives are realized and capabilities, linked those prioritize their individual capabilities to appropriate importance to the business. objectives • Excel spreadsheet
  13. 13. Excerpted capabilities (4 of 55 total) Capability Linked Goal  Maintain common processes centrally  Improve financial performance across the Department to support centralized administration and standardization  Support ad hoc data access across all  Improve operating efficiency of financial LOBs. This will provide a simplified, management and procurement functions single source for report information in a timely fashion  Generate performance and  Consistently comply with federal, accountability reports, within OMB accounting, and system standards specified timeline  Capability for drill-down to transaction  Improve financial performance level information
  14. 14. Engage the Business by documenting, and avoiding excessive detail in, the business operations Operational Business Architecture BUSINESS CONTEXT Business Architecture Functional Diagrams Domain Level LEVEL 0 FUNCTION ORGANIZATION Business LEVEL 1 FUNCTION STAKEHOLDER LOCATION Process Diagrams  Process design usually Process Design PROCESS / SUB-PROCESS Project Level done AFTER a blueprint Business exists, as part of a funded project. TASK
  15. 15. Operational Business Architecture deliverables from a Federal Agency EA Deliverables & Working What it is How to do it Documents • Describes the functional • Work with LOB to define high- Operational concept for the LOB, level organization and Business comprising process, responsibilities, create Architecture organization, and data classes business context diagram, document that are foundational to identify business locations • Visio diagrams & Word business operations document • Top-down description of level• Defined best-in-class, end-to- High-Level 0 and level 1 LOB func. Each end IDEF-0 maps and Functional level has 5-10 steps. Used to definitions for relevant Descriptions assess any gap with detailed financial management and processes. procurement functions • Visio diagrams Capabilities • Detailed mapping of SBA • Examined the level 1 Mapped to business capabilities to their processes and identify the Level 1 supporting level 1 functions characteristics that enable Functions the business capabilities (from the SBA) • Excel spreadsheet • Observations, risks, • Compare the high-level implications and planned processes with the current resolutions for observed state detailed processes Gap Analysis gaps between high-level • Identify new capabilities and processes and current state the process required to (detailed processes) support them • PowerPoint presentation, Word document, & Visio diagrams
  16. 16. Use the Business and Solution Architectures to derive a roadmap of business capabilities Operational Business Architecture Strategic Business Architecture Solution Architecture Presentation Services Internet Services Platform Third-Party Applications WAP Web S / MMS Proxy and Traffic Server Server Centre Server W-LAN Streaming Service Services Personliza Rules Community Location Personal Information Management Email Attachment Self Care Q-Space Services Based App. RIM -tion Engine Unified Corporate Messaging Content Search Messaging M Commerce Engine Management Customer Facing Applications Consumer Remote Messaging Monitoring Operations Support Systems Business Application Systems Common Application Services EAI ORB/ Common System Single Location Data Media Services Profiling GIS Information (ETL) Services SRB API Services Sign-On Services Services Persistence Framework Data Services For Launch Application Enterprise File Mgt User Profile Location/ Geographic Data Future Offerings Data Stores Data Stores Services Data 1H06 2H06 1H07 2H07 Capability 01 Theme 1 Capability 12 Capability 04 Roadmap of Capability 07 Theme 2 Theme 3 when each Capability 09 capability is Capability 02 delivered Capability 03 Capability 05 Capability 08 Business Capabilities Requiring IT Support
  17. 17. Tackle the enterprise, one Line of Business (LOB) at a time Enterprise Business Domains / LOBs Project / Release Domain 1 models Project / Release Architecture Project / Release Architecture Project / Release Architecture Domain 2 models Project / Release Architecture Enterprise level models Project / Release Architecture ... Project / Release Architecture Domain n models Project / Release Architecture Project / Release Architecture Project / Release Architecture EA Repository
  18. 18. The Business Architecture generates metrics by which IT progress can be measured and governed  Performance Indicators  Business specific metrics linked to objectives and goals  Alignment Metrics  Number of projects involved with each goal  Exception and deferral impact on goals  IT spend per goal  IT spend per objective  Quantitative view of blueprint delivery progress  Blueprint value management
  19. 19. Example: Value Creation Report  Purpose: To provide visibility into the alignment of the actual release state with original target release goals  Description: The Value Creation Report illustrates the current status of each function in accordance with its alignment with functional and technical business capabilities. This report takes into account the impact of exceptions and deferrals on the intended release state of each domain and exposes any gaps that have formed between target and actual end-states  Empty circle - Not addressed in release  Half circle - Core functionality met, high exception score  3/2 circle - Core functionality met, low exception score  Full Circle - On target with goal
  20. 20. Consider organizational changes that increase the likelihood of achieving Business/IT alignment  Consider dedicated Enterprise Architects  Assigned to specific Business domains  Oversee Business and Solution Architecture  Consider combining Business and IT strategy functions  Single “Strategy” organization  Consider a dedicated EA Governance organization  Lightweight, few resources  Tiered governance, focusing on high dollar, high risk projects
  21. 21. Avoid some common pitfalls when building a Blueprint  Do not start with requirements, start with capabilities  Requirements are good for implementation but bog down the planning process  Capabilities provide a manageable level of detail for prioritization and release planning  Do not start with processes, start with functions  Process engineering requires a tremendous amount of detail  Functions allow coarse-grained prioritization and justification for follow-on detailed process work  Hold off on reference architectures until a couple blueprints exist  Ensure you are working on the highest priority common services
  22. 22. You do NOT need an EA tool to get started  All work was accomplished with MS Office  Excel (linking), and PowerPoint (models), and Word (reports)  Major drawbacks are that the work is static and difficult to update  EA tools are necessary to scale beyond one or two domains  The experience gained hand-crafting the architecture is invaluable to appropriately evaluate and select an EA tool  Assess standard meta-model  Assess ability to link from Strategic to Operational to Solution models  Assess ability to track and report progress  Visualization is different from modeling
  23. 23. Key Takeaways  IT must engage the Business  Develop Guiding Principles  Document the Strategic Business Architecture  Document the Operational Business Architecture  Eat the elephant one bite at a time  Divide the enterprise into manageable domains  Blueprint each one in succession  Measure the result  Use Business Architecture metrics to manage and govern  Change the organization if needed  Create “renaissance” roles for Enterprise Architects, Business Architecture, and Governance
  24. 24. Thank You Questions?

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