Enterprise Architecture as Strategy

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Enterprise Architecture as Strategy

  1. 1. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 INNOVATION VALUE INSTITUTE – Creating IT Enabled Business Innovation, 2 July 2007 Enterprise Architecture as Strategy: Creating a Foundation for Business Execution Professor Peter Weill Director Center for Information Systems Research (CISR) MIT Sloan School of Management Phone: (617) 253-2930, Fax: (617) 253-4424 pweill@mit.edu http://mitsloan.mit.edu/cisr/ This research was made possible by the support of CISR sponsors and patrons. The research team included Jeanne Ross, Peter Weill, David Robertson (IMD), George Westerman, Nils Fonstad, Lenny Zeltser, Charles Zedlewski, Niraj Kumar (MIT), and Mingdi Xin (New York University). Center for Information Systems Research © 2007 MIT Sloan CISR – Weill MIT Sloan Center for Information Systems Research (CISR) CISR gratefully acknowledges the support and contributions of its Research Patrons and Sponsors CISR Research Patrons – Boston Consulting Group – IBM Corporation CISR’s Mission CISR’ – BT Group – Microsoft Corporation • Founded in 1974; CISR has a strong track record of – Diamond Management & – Tata Consultancy practice-based research on how firms manage & Technology Consultants generate business value from IT Services—America – Gartner • Research is disseminated via electronic research briefings, working papers, research workshops & exec. CISR Sponsors ed. programs including http://mitsloan.mit.edu/cisr/education.php – Aetna Inc. – Merrill Lynch & Co., Inc. – Allstate Insurance Co. – MetLife CISR Research 2002–2007 – American Express Corp. – Mohegan Sun Managing the IT Resource – AstraZeneca Pharmaceuticals, LP – News Corporation • What the CEO wants from IT – Banco ABN Amro Real S.A. (Brazil) – Nissan North America, Inc. • The Future of the IT Organization – Biogen Idec – Nomura Research Institute, Ltd. • IT Governance in Top Performing Firms – Campbell Soup Co. (Japan) • Enterprise Architecture as Strategy – CareFirst BlueCross BlueShield – Northrop Grumman Corp. • IT Portfolio Investment Benchmarks & Links to Firm Performance – Care USA – PepsiAmericas, Inc. • Reducing IT-Related Risk – Caterpillar, Inc. – Pfizer Inc. IT and Business Strategy – Celanese – PFPC, Inc. • Business Models and IT Investment and Capabilities – Chevron Corp. – Procter & Gamble Co. • IT-Enabling Business Innovation and Transformation – Chubb & Son – Quest Diagnostics • How IT Can Enhance Business Agility – Commonwealth Bank of Australia – Raytheon Company Managing Across Boundaries – Det Norske Veritas (Norway) – Renault (France) • Effective Governance of Outsourcing – Direct Energy – Standard & Poor’s • Building Effective Relationships Between Business & IT Leaders – EFD – State Street Corp. • Effective Distributed Collaboration – EMC Corp. – TD Banknorth • Effective IT Engagement Inside and Outside the Firm – Family Dollar Stores, Inc. – Telenor ASA (Norway) Contact Information: – Guardian Life Insurance Co. – Time Warner Cable 3 Cambridge Center, NE20-336 of America – Trinity Health Cambridge, MA 02142 6/25/2007 – Information Services Int’l – TRW Automotive, Inc. Ph. 617-253-2348, Fax 617-253-4424 – ING Groep N.V (Netherlands) – Unibanco S.A. (Brazil) E-mail cisr@mit.edu; – Intel Corporation – United Nations – DESA http://mitsloan.mit.edu/cisr/ – International Finance Corp.Systems – Walt Disney Company Center for Information Research – Liberty Mutual Group Center for Information Systems Research © 2007 MIT Sloan CISR – Weill © 2007 MIT Sloan CISR Professor Peter Weill Page 1
  2. 2. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 The Business-IT Alignment Problem Data Business Solution Lag Lag Applications Strategy Design Infrastructure New idea Center for Information Systems Research © 2007 MIT Sloan CISR – Weill The Result ….. Corporate Data Data Applications Technology Platforms Corporate Networks & Infrastructure Services Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, Center for Information Systems Research J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 2
  3. 3. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Agenda The Operating Model as an Alternative to Business Strategy Alignment Designing a Digitized Foundation for Strategy Execution Case Studies The Four Stages of Enterprise Architecture Maturity – IT investment patterns and capabilities – Strategic implications of IT – Organizational learning about IT Reinforcing Organization Learning with Governance Recommendations and Next Steps Center for Information Systems Research © 2007 MIT Sloan CISR – Weill Key Concepts What is important for a company Operating Model: The desired level of business process integration and business process standardization for delivering goods and services to customers. How to get there Enterprise Architecture: The organizing logic for key business process and IT capabilities reflecting the integration and standardization requirements of the firm’s operating model. IT Governance: decision rights and accountability for effective use of IT. The Asset Foundation for Execution: IT infrastructure and digitized business processes automating a company’s core capabilities The Result Better Performance: More agility, high profits, lower IT risk, more satisfied senior management Center for Information Systems Research © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 3
  4. 4. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Designing a Foundation for Execution Strategic Strategic Strategic Strategic Initiative Initiative Initiative Initiative Defines strategic limits Operating Model Establishes Defines priorities Learning and integration & Enterprise Architecture exploitation standardization requirements Defines core capabilities Foundation for Execution • Core Business Processes • IT Infrastructure Center for Information Systems Research Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill The Foundation for Execution at UPS Flex Global View UPS Package Online Trade Tracking Tools Mail Innovations Direct Defines strategic limits Industrial Engineering From Model reliability to Learning accessibility High degree of and integration & Enterprise Architecture to agility exploitation standardization across businesses Defines core capabilities Redundant operations Single package database Global communications network Standard interfaces Standard infrastructure Customer information database Product development process Customer relationship process Center for Information Systems Research Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 4
  5. 5. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Center for Information Systems Research © 2007 MIT Sloan CISR – Weill Pick One of Four Operating Models - how do you want to grow Coordination Unification Business Process Integration Unique business units with a Single business with global process need to know each other’s standards and global data access transactions Examples: Delta Air Lines, Dow High Examples: Merrill Lynch, Toyota Chemical, Pepsi Americas Motor Marketing Europe, MetLife Key IT capability: enterprise Key IT capability: access to systems reinforcing standard shared data, through standard processes and providing global data technology interfaces access Diversification Replication Independent business units with Independent but similar business different customers and units expertise Examples: Marriott, CEMEX, ING Low Examples: Johnson & Johnson, DIRECT Carlson Companies, GE Key IT capability: provide standard Key IT capability: provide infrastructure and application economies of scale without components for global efficiencies limiting independence Low High Business Process Standardization Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, Center for Information Systems Research J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 5
  6. 6. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Target Operating Models Firm-wide Business Process Integration High Coordination Unification 16% of firms 57% of firms Low Diversification Replication 16% of firms 11% of firms Low High Business Process Standardization Data show operating models reported by IT executives at 70 companies. Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, Center for Information Systems Research J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Johnson & Johnson’s Multiple Operating Models1 Business Process Integration Coordination Unification McNeil Healthcare US Pharmaceuticals High European Consumer J&J Companies Consumer Products Diversification Replication J&J Low Corporate European Pharmaceuticals Low High Business Process Standardization Center for Information Systems Research 1 Source: Researcher approximation based on historical data. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 6
  7. 7. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Different Standardization Requirements of the Four Operating Models Business Process Integration Coordination Unification Technology Technology Customer and Product Data Customer and Product Data [Shared Services] Shared Services High Core Processes such as Operations, Customer Service, Logistics [R&D, Marketing/Sales] Diversification Replication Technology Technology [Shared Services] Shared Services Low Core Processes such as Operations, Customer Services, Logistics [R&D, Marketing/Sales] Low High Business Process Standardization Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, Center for Information Systems Research J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Toyota’s Operating Model Transitions Coordination Unification Unique business units with a Single business with global process need to know each other’s standards and global data access “Required”: Business Process Integration transactions “Desirable”: Transparency for Examples:Standardized Delta Air Lines, Dow High Examples: Merrill Lynch, Toyota Virtual Supply and Chemical, Pepsi Americas Systems to Motor Marketing Europe, MetLife Demand Chain Reduce Cost Key IT capability: enterprise Key IT capability: access to systems reinforcing standard shared data, through standard processes and providing global data technology interfaces access Diversification Replication Independent business units with Independent but similar business different customers and 1999 Position: units expertiseDecentralized Examples: Marriott, CEMEX, ING Low Independent Examples: Johnson & Johnson, DIRECT Country Carlson Companies, GE Operations Key IT capability: provide standard Key IT capability: provide infrastructure and application economies of scale without components for global efficiencies limiting independence Low High Business Process Standardization Source: Presentation by Peter Heinckiens, Chief Architect, Toyota Motor Marketing Europe Center for Information Systems Research to IMD OWP Program, June 30, 2005. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 7
  8. 8. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 MetLife’s Coordination Model Application Presentation Tier Application Business Logic and Data Tier Portal – Security & Licensing Rates & Suitability Forms & Presentation Entitlements Calcs Requirements Integration Customer Screen Entry & Validation Sign-on Marketing Operational Business Producer ACORD JLife Navigation Illustrations Data Store Rules Search Order Entry Sales Sessions Underwriting Party Office ACORD XML Integration Management Hub Billing/Payment Underwriter Service Underwriting L XM Eligibility & Issue D OR AC Call Center Claims Product Admin Partner Service Portals Events Service Workflow Provider Recording Center for Information Systems Research Source: Adapted from MetLife documents – used with permission. © 2007 MIT Sloan CISR – Weill Carlson’s Enterprise Architecture Customer Requirements Business Initiatives Travel Management Loyalty Hotel Distribution CRM Enterprise Portal Business Process Presentation IT Resilience Application Security Data Trust Common Infrastructure Middleware Data Object Platform Network Source: Carlson Company Center for Information Systems Research © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 8
  9. 9. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Delta’s Unification Model Operational Pipeline Prepare Flight Flight Clean/ Allocate Load Monitor Unload for Flight Departure Arrival and Service Resources Aircraft Flight Aircraft Departure and Closeout Closeout Aircraft E V Pagers E Kiosks Hand Helds Gate Readers N T Voice S Delta Nervous System Video Electronic Events Location Flight Schedule Maint. Business Employee Relationship Reflexes Management Equip. Employee Aircraft Customer Ticket Nine Core Databases Cell Phones PDAs P Desktops R O Laptops F Scanners Reservation I Systems L E Travel Ticket Crown Skylinks Skymiles Reservations Skycap Boarding Inflight Baggage Agent Counter Room Personalization Digital Relationships Loyalty Programs Customer Experience Center for Information Systems Research Source: Adapted from Delta Air Lines documents. Used with permission. © 2007 MIT Sloan CISR – Weill Stages of Architecture Maturity Strategic Implications of IT Local/Functional IT Operational Strategic Optimization Efficiency Efficiency Agility 100% 16% 15% Local 25% 36% Applications Percentage of IT Investment 32% 34% Enterprise 21% Systems 18% 35% 33% Shared 40% 35% Infrastructure 11% 14% 17% 18% Shared Data 0% Business Silo Standardized Optimized Core Business Technology (Rationalized Data or Process) Modularity Percent of firms 12 48 34 6 IT Budget1 100% 85% 75% 120% 1 IT budgets from 103 firms are corrected for industry differences. Application silo budget is the baseline. Budgets for other stages are represented as a percentage of the baseline budget. Only five firms in stage four reported their IT budgets so data is not reliable. Center for Information Systems Research Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 9
  10. 10. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Enterprise Architecture Benefits by Stages 5 4.5 4 3.5 3 IT Responsiveness (1) CIO Rating Risk Management (2) 2.5 Managerial Satisfaction (3) 2 Strategic Business Impacts (4) 1.5 1 0.5 0 Business Standardized Optimized Business (1) Development time. (2) Business risk, security breaches and disaster Silos Technology Core Modularity tolerance. (3) Senior management and business unit Architecture Stage management satisfaction. (4) Operational excellence, customer intimacy, product leadership and strategic agility. Center for Information Systems Research Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill … but there are tradeoffs in flexibility Architecture Maturity Business Standardized Optimized Business Silos Technology Core Modularity Global flexibility High flexibility Local flexibility Low flexibility Center for Information Systems Research Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 10
  11. 11. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 ING DIRECT: Business Efficiency Agility ING DIRECT, a subsidiary of the Dutch financial services giant, ING, was founded in 1997 as a telephone bank in Canada. Second fastest growing company in history, ING DIRECT is a direct-to- customer operation, offering simple banking products to 13 million customers of 9 country bank organizations. The #1 direct bank (in terms of retail funds entrusted) in every one of the 9 countries in which it operates. Each of ING DIRECT’s country-based businesses operates autonomously, but they share a common set of standardized technical infrastructure components, as well as a set of standardized business service groupings (e.g., customer relationship services, common business services, channel access services). Standardized services has reduced operational costs to only 0.43% of assets, as compared to 2.5% for a typical full-service bank. Business efficiency agility allows the company to offer higher savings rates and lower-cost loans than other banks. Source: D. Robertson, “ING Direct: The IT Challenge (A) and (B),” working Center for Information Systems Research paper, IMD, 2003 and J. Ross, P. Weill, and D. Robertson, Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, © 2007 MIT Sloan CISR – Weill HBS Publishing, 2006. ING Direct – a Modular Business Model External Services Prospect Statement Reports Payments Checks Fulfillment Fulfillment Local/HQ/Tax Customer Relationship Services Core Banking Services Mutual Brokerage CIF CRM Funds Contact Product Banking Credit History Info Engine Score Common Business Services Transactions Customers Products Services Channel Services IVR/CTI Imaging E-mail Web Gateway server server server server server Customer Contact: Self-Service: Call Center, IVR, E-mail, Internet, MinTel, ATM, Direct mail WAP, (WebTV) Services not implemented in all countries Source: Robertson, D. “ING Direct: The IT Challenge (B)”, 2003, IMD-3-1345. Used Center for Information Systems Research with permission. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 11
  12. 12. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Learning Requirements of the Architecture Stages Stage Business Standardized Optimized Business Name Silos Technology Core Modularity IT Capability Local IT Shared technical Enterprise-wide Plug & play applications platforms hardwired processes business process or databases modules Business ROI of local Reduced IT costs Cost and quality of Speed to market; Objectives business business operations Strategic agility initiatives Funding Individual Shared infrastructure Enterprise Reusable business Priorities applications services applications and data process stores components Key Technology- Design and update of Core enterprise Management of Management enabled change standards; funding process definition and reusable business Capability management shared services measurement processes Who Defines Local business IT & business unit Senior management IT, business and Applications leaders leaders and process leaders industry leaders Key IT Measure and Establish local/ Align project priorities Define, source & Governance communicate regional/global with architecture fund business Issues value responsibilities objectives modules Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, Center for Information Systems Research J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Four Critical Architecture Competencies Architecture Planning and Design Senior Executive Oversight Enterprise Architecture Guiding Principles Enterprise Architecture Graphic Process Owners Full-Time Enterprise Architecture Team Project Management IT Funding Project Methodology Business Cases Post-Implementation Assessment Centralized Funding of Enterprise Apps IT Program Managers Infrastructure Renewal Process Business Leadership of Project Teams IT Steering Committee Standards Management Architects on Project Teams Technology Research & Adoption Process Architecture Exception Process Formal Compliance Process Centralized Standards Team Management practices within each practice set are statistically significantly correlated Center for Information Systems Research with each other. All four competencies are significantly correlated with architecture benefits. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 12
  13. 13. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Reinforcing Organization Learning with Governance Business Standardized Optimized Business Silos Technology Core Modularity Business cases Project methodology Architects on project teams IT Steering Committee Architecture exception process* Formal compliance process* Infrastructure renewal process* Centralized funding of enterprise applications* Centralized standards team Process owners* Enterprise architecture guiding principles* Business leadership of project teams* Senior executive oversight* IT Program Managers* Enterprise architecture graphic* Color Code: Post-implementation Architecture Planning & Design assessment* Project Management Technology research and IT Funding adoption process* Standards Management Full-time Enterprise Architecture team Architecture Maturity * Reported value of asterisked items is statistically significantly related to architecture maturity stage. Center for Information Systems Research Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill How to Succeed with Enterprise Architecture Governance institutionalizes learning. Light weight governance helps firms not re-learn the same lesson Make tough choices. Enterprise architecture enables and constrains business strategy by creating a stable platform for business execution. Management must specify how to operate. Build capabilities, not solutions. This is the only way to avoid silos and create a powerful foundation for execution. Do not skip stages. Generating value from architecture investments is a learning process. Aggressive investment in IT capabilities can be slow to generate a return. Allow time for learning. Introduce key management practices and don’t give up on them. There is no substitute for strong senior management leadership. Firms getting strategic business benefits from an operating model have senior business leaders who are actively involved in its design, management and implementation. Center for Information Systems Research © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 13
  14. 14. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 What’s Next? Stage Business Standardized Optimized Business Dynamic Name Silos Technology Core Modularity Venturing ROI of local Cost and quality of Speed to ROI of new Business business Reduced IT costs business market; business Objectives initiatives operations Strategic agility ventures Enterprise-wide Plug & play Seamless IT Local IT Shared technical hardwired business merging with Capability applications platforms processes or process partners’ databases modules systems Technology- Design & update Management of Create self- Key Core enterprise enabled of standards; reusable contained Management process definition change funding shared business business Capability and measurement management services processes components Senior IT, business & Who Defines Local business IT & business IT, business and management and industry leaders Applications leaders unit leaders industry leaders process leaders & partners Align project Key IT Measure and Establish local/ Define, source Joint venture, priorities with Governance communicate regional/global & fund business partnership architecture Issues value responsibilities modules governance objectives Strategic Local Operational Strategic Rapid Recon- Implications IT Efficiency Optimization Efficiency Agility figuration Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, Center for Information Systems Research J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Further information: MIT CISR - http://mitsloan.mit.edu/cisr Enterprise Architecture as “Six IT Decisions Your IT People Strategy: Creating a Foundation Shouldn’t Make,” Jeanne Ross for Business Execution, Jeanne and Peter Weill, Harvard Ross, Peter Weill & David Business Review, November Robertson, Harvard Business 2002, Vol. 80, No. 11, pp 84–91. School Press, 2006. “Generating Premium Returns on Place to Space: Migrating to Your IT Investments,” Peter Weill eBusiness Models, Peter Weill & and Sinan Aral, MIT Sloan Michael Vitale, Harvard Business Management Review, Vol. 47 School Press, Boston, 2001. No.2, Winter 2006, pp 39–48. Leveraging the New IT Governance: How Top Infrastructure: How Market Performers Manage IT Decision Leaders Capitalize on Rights for Superior Results, Information Technology, Peter Peter Weill and Jeanne Ross, Weill and Marianne Broadbent. Harvard Business School Press: Harvard Business School Press: Boston, 2004. Boston, 1998. Center for Information Systems Research © 2007 MIT Sloan© 2007 MIT Sloan CISR – Weill – CISR—Weill Center for Information Systems Research Professor Peter Weill Page 14
  15. 15. Innovation Value Institute – Creating IT Enabled Business Innovation Monday, Enterprise Architecture as Strategy 2 July 2007 Characteristics of the Four Operating Models Coordination Unification Shared customers, products or suppliers Customers and suppliers may be local or global Impact on other business unit transactions Globally integrated business processes often with Operationally unique business units or support of enterprise systems functions Business units with similar or overlapping operations Business Process Integration Autonomous business management Centralized management often applying High Business unit control over business functional/process/business unit matrices process design High-level process owners design standardized Shared customer/supplier/product data process Consensus processes for designing IT Centrally mandated databases infrastructure services; IT application IT decisions made centrally decisions are made in business units Diversification Replication Few, if any, shared customers or suppliers Few, if any, shared customers Independent transactions Independent transactions aggregated at a high level Operationally unique business units Operationally similar business units Autonomous business management Autonomous business unit leaders with limited Low Business unit control over business process design discretion over processes Centralized (or federal) control over business Few data standards across business units process design Most IT decisions made within business Standardized data definitions but data locally owned units. with some aggregation at corporate Centrally mandated IT services Low High Business Process Standardization Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, Center for Information Systems Research J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. © 2007 MIT Sloan CISR – Weill Professor Peter Weill Page 15

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