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  1. 2. Enterprise Architecture: Laying the e-Foundation for 21st Century Business Brian Burke Vice President Executive Services/EAS META Group
  2. 3. Business Scenario: 2000-03 <ul><li>New economy is driven by: </li></ul><ul><ul><li>Deregulation </li></ul></ul><ul><ul><li>Globalization </li></ul></ul><ul><ul><li>Productivity </li></ul></ul><ul><ul><li>Net Effect </li></ul></ul><ul><li>Value chains explode into value networks </li></ul><ul><li>e-Business is BUSINESS! </li></ul><ul><li>Information becomes THE value driver </li></ul>Value, Speed & Agility
  3. 4. Technology Scenario: 2000-03 <ul><li>Information is the primary currency for valuing IT </li></ul><ul><li>IT Strategy is dead </li></ul><ul><li>Business/Technology boundaries blur </li></ul><ul><li>e-Enterprise design becomes holistic </li></ul><ul><li>Managing change is critical </li></ul>IT Drives Business Value
  4. 5. Key Issue: Infonomics drives value <ul><li>Infonomics: </li></ul><ul><ul><li>Value = Price - Cost </li></ul></ul><ul><li>Information value is increased by: </li></ul><ul><ul><li>Accelerating Velocity </li></ul></ul><ul><ul><li>Extending Reach </li></ul></ul><ul><ul><li>Increasing Density </li></ul></ul><ul><li>Value dimensions are “combinatorial” in nature </li></ul><ul><li>The price diminishes over time as competition drives commoditization </li></ul>Innovation Wins Time Cost Margin Competition Price The Value of Information is the price premium the consumer is willing to pay that exceeds the cost of providing the information
  5. 6. Key Issue: Rate of Change Increases <ul><li>Business Process cycle times have collapsed </li></ul><ul><li>Increasing dependence on e-commerce continues need for corporate agility </li></ul><ul><li>Some industries are changing in near real time </li></ul>Shrinking Cycle Times Technology Competition Economics Policy Leadership 5 - 7 YEARS CYCLE TIMES: 1970s & 1980s 3-12 Months CYCLE TIMES: 2000+ In the virtual e-economy the business must refocus enterprise architecture on organizational agility
  6. 7. Critical Management Disciplines <ul><li>Digital Innovation: Planning at e-Speed </li></ul><ul><li>Enterprise Architecture: Designing the Adaptive Enterprise </li></ul><ul><li>Program Management: Capturing Value </li></ul>Three Primary Elements Planning and Strategy Enterprise Program Management Enterprise Architecture
  7. 8. Business/IT Strategy and Planning Must Merge <ul><li>Rate of change is inside IT’s capacity to deliver </li></ul><ul><li>As cycle times continue to shrink, the gap between demand and delivery will increase </li></ul><ul><li>Digital strategies are the primary means of change; digital planning must replace, in part, traditional business planning </li></ul>Traditional vs. Digital Strategy Enterprise Architecture Evolution Traditional Business Strategies Align Digital Planning Cycle (0-6 Months) DIGITAL PLANNING Velocity > Breadth > Depth Digital Innovation Strategy Technology and Business Trends Traditional Planning Cycle (12-36+ Months) “ Velocity of planning” will be more important than breadth of planning, and breadth more important than depth of planning
  8. 9. Creating an Adaptive Enterprise Culture <ul><li>IT planners are key contributors to corporate strategy </li></ul><ul><li>Balance traditional vs. digital innovation methods </li></ul><ul><li>Understand and embrace principles based design </li></ul>Beyond Business/IT Alignment Understanding Planning is Critical for Agility Enterprise Principles Enterprise Culture Enterprise Architecture IT Strategy Digital Innovation Business Strategy
  9. 10. Create an Adaptive Enterprise Culture <ul><li>Elevate the enterprise architecture effort to the CIO level </li></ul><ul><li>‘ Buy’ your seat at the business planning table by demonstrating business awareness </li></ul><ul><li>Implement a digital planning process – driven by the business </li></ul>Bottom Line Business Impact: A culture of collaboration leads to “out of the box” innovation that translates into bottom-line competitive advantage
  10. 11. Why Does Strategy Fail? <ul><li>Moving from strategy to implementation requires designs which define: </li></ul><ul><ul><li>Organizational Change </li></ul></ul><ul><ul><li>Skills Development </li></ul></ul><ul><ul><li>Business Processes </li></ul></ul><ul><ul><li>Information Flows </li></ul></ul><ul><ul><li>Application Solutions </li></ul></ul><ul><ul><li>Technology Infrastructure </li></ul></ul>“ I Think You Should Be More Explicit Here In Step Two.” Mastering Design Classic Strategy becomes cliché: “formulation is easy, it is implementation that is the problem.” John Kay
  11. 12. EA Bridges the Gap between Strategy and Implementation <ul><li>Identify and articulate the impact of strategy </li></ul><ul><li>Have a holistic and enterprisewide view </li></ul><ul><li>Employ principles-based guidance and evolutionary modeling </li></ul><ul><li>Create a future state design for implementation </li></ul>Impact of Strategy All IT leadership must rise above the technical and recognize they exist for the business -- IT is becoming the business for many companies CHANGE Enterprise Strategy Business Process Info Apps Tech Infra. Business Arch. Information Arch. App.Portfolio Technology Arch. E A
  12. 13. Need for a Unified EA Process Model <ul><li>Holistic EA includes EBA, EIA, AP, and EWTA </li></ul><ul><li>Provide uniform governance and communications framework </li></ul><ul><li>Define future state of the adaptive e-enterprise </li></ul><ul><li>Accelerate e-transformation of the enterprise </li></ul>The Organic Nature of Architecture Define/ Refine EWTA Define/ Refine EIA Define/ Refine EBA Define/ Refine EAP Gap Analysis Migration Planning Implementation Planning Business Visioning Iteration 1 Iteration 2 Iteration 3 2 3 1 Enterprise architecture is an organic process that evolves with the organization
  13. 14. Enterprise Architecture Process Enterprise Architecture Governance and Evolution, Organizational Impact, and Communication   Environmental Trends Define/ Refine EIA Define/ Refine EAP Define/ Refine EWTA Define/ Refine EBA Business Visioning Organize Arch. Effort   Document Current Environment Gap Analysis Migration Planning <ul><li>Change Projects </li></ul><ul><li>Information Projects </li></ul><ul><li>Application Projects </li></ul><ul><li>Technology Projects </li></ul>Implementation Planning
  14. 15. Architect at e-Speed <ul><li>Move Enterprise Architecture beyond the technical to include business, information, application </li></ul><ul><li>Engage the business, articulate the need for ‘design’, develop a common language </li></ul><ul><li>Be pragmatic, apply the 80/20 rule, deliver quick wins </li></ul>Bottom Line Business Impact: Architecting at e-speed translates into rapid deployment
  15. 16. Beyond “Management by Projects” and Thematic Program Offices <ul><li>EPMO builds on both </li></ul><ul><li>Management trend: organize by projects </li></ul><ul><li>Make project success systemic, not by heroism </li></ul><ul><li>Ensures continuous business/IT realignment </li></ul><ul><li>Leverage EPMO best practices </li></ul>The EPMO Umbrella EPMO Thematic PMOs Individual Projects Leverage positive perceptions of successful projects and Y2K/ERP program offices to justify EPMO
  16. 17. Why are Companies ‘Change Challenged’? <ul><li>Strive for consistency, not heroism </li></ul><ul><li>Focus on value in business context </li></ul><ul><li>Scope and manage programs holistically </li></ul><ul><li>Communicate success and failure broadly </li></ul><ul><li>Focus on projects like winning a battle </li></ul><ul><li>Lack key management decision points </li></ul><ul><li>Excuse failure or rationalizing success after delivery </li></ul><ul><li>Sacrifice quality at the altar of schedule </li></ul>Best Practice Common Practice
  17. 18. Standings in the IT Value Race <ul><li>No PMO </li></ul><ul><li>IT managed as a cost </li></ul><ul><li>Mainframe-based </li></ul><ul><li>Long development lead times </li></ul><ul><li>Little flexibility </li></ul><ul><li>Level 1-2 PMO </li></ul><ul><li>Spending growth but not managed </li></ul><ul><li>Distributed computing growth w/ uncontrolled complexity </li></ul><ul><li>Strategic work content low </li></ul><ul><li>Level 3-4 PMO </li></ul><ul><li>Spending under control </li></ul><ul><li>Portfolio is managed </li></ul><ul><li>Development effective </li></ul><ul><li>Strategic content high </li></ul><ul><li>Level 5 PMO </li></ul><ul><li>Spending managed as an investment </li></ul><ul><li>Package-based solutions leveraged </li></ul><ul><li>Sourcing leveraged </li></ul><ul><li>“ Change-ready” mindset </li></ul>30% 55% 10% 5% Following the Pack In the Pack Competitive Leading
  18. 19. Capturing Value through Program Management <ul><li>Develop strong synergy between architecture team and EPMO to maximize impact of both </li></ul><ul><li>Map out integration of IT processes to minimize unproductive conflict </li></ul><ul><li>Leverage program management to guide short-term e-everything initiatives into a fully integrated longer-term vision </li></ul>Bottom Line Business Impact: Program management will improve IT effectiveness and enable critical integration needed in e-everything solution portfolios
  19. 20. Creating the e-Foundation for 21 st Century Business <ul><li>Re-focus value creation to information value </li></ul><ul><li>Use proven processes </li></ul><ul><ul><li>Digital Innovation </li></ul></ul><ul><ul><li>Enterprise Architecture </li></ul></ul><ul><ul><li>Program Management </li></ul></ul><ul><li>Implement best practices </li></ul><ul><ul><li>Leverage Global 2000 experience </li></ul></ul><ul><li>Develop Skills </li></ul><ul><ul><li>People are your most valuable asset </li></ul></ul>Information Strategy Architecture Program Management People Practices Process Value Management Summary Best of breed IT doesn’t ‘just happen’