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Enterprise Architecture, Project Management & Digital Transformation


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It is well known that an effective PMO is key to successful and efficient program and project execution. In other words, doing things “right”. Enterprise Architecture is the discipline that plans and monitors enterprise transformation and aligns the business strategy with information technology capabilities. In other words, doing the “right things” to support the business.

Why is it organizations despite having both of these disciplines still struggle with effective enterprise transformation? What can we done to use these disciplines more effectively to effect better business outcomes? What are the roles of each discipline and how do they work together to create business value?

In this presentation, Riaz will address these questions and will provide real life examples that can help build a strong relationship between the PMO and Enterprise Architecture.

Learning Objectives:
• How to build a strong relationship between the PMO and Enterprise Architecture (EA) to deliver positive outcomes for your organization
• Identify the different roles and functions of the PMO and EA as well as their similarities

Published in: Business
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Enterprise Architecture, Project Management & Digital Transformation

  1. 1. Enterprise Architecture, Project Management & Business Transformation Riaz A. Khan, BSc (Hons.) CS, TOGAF, ITAC-M Instructor, Course Designer, Faculty Advisor Practice Leader, Enterprise Architecture
  2. 2. Today’s Failures What’s the problem Digital & Transformation Enterprise Architecture Project Management Best Practices for integration Agenda
  3. 3. A bit about me Dec ‘07 - Certified as a Open Group Master ITA & Appointed to the IBM ITA Profession Board Dec ’13 Appointed as Instructor of Enterprise Architecture, University of Toronto Provided architecture consulting to senior executives across North America VP & CA of Sears Canada – Enterprise Transformation Currently building out EY’s Enterprise Architecture capabilities in Canada. Hons. Software Engineering/Computer Science Degree – University of Toronto
  4. 4. “Everybody has a plan before they get punched in the face” - Mike Tyson
  5. 5. Transformation through Innovation is imperative if you are going to survive in the new Digital world
  6. 6. Technology shifts, alternative business models, and customer experience? Who’s Job is it?
  7. 7. Nike has made the transition with a move to Social Media and Digital Technologies like NikeID
  8. 8. Disney has made a strong transition to the Digital world
  9. 9. Ideas, products, services, money, relationships are crossing the globe at the speed of light.
  10. 10. digital business transformation customer experience digitisation “Anytime,anywhere access” “Create seamless experiences along the customer journey” “Drive proactive customer acquisition” “Drive digitally enabled customer engagement” “Enhance crosssell ” “Develop deep insight into customer behaviour” “Deliver hyper personalised customer experience” “Drive digital adoption across customer base” “Digitise ‘channel to fulfilment’ through Business Service Redesign” “Drive simplification and straightthrough processing” “Deploy new way of working in Operationsand IT” value customer delight, acquisition &retention reduced cost to serve & cycle time CUSTOMER JOURNEY ENGINEERING focused on shaping, designing and engineering delightful customer experience
  11. 11. will be anchored around key themes delivering superior customer experience through technology enabled differentiation digitally connect customers, employees, assets,suppliersand partnersinrealtime irrespective of location rapid fulfilment of customer and employee needsthroughadoption of straight-through processing and paperlessoperation leveragenetworkof partnerships and offer relevant products / services linked to customer life cycle and goals insight drivenactions, interactions and decisions based on sound understanding ofcustomer behaviour,journeyandgoals truemulti-speedITcapableto flex and deliverrapidbusiness change andinnovation, maintaining operationaland portfoliocontrols future-proof technology infrastructure to ensure business agility, scalability, rapid provisioning and state of the art security
  12. 12. 1990 1995 2000 2005 2010 2015 Store
  13. 13. Customer Journey Design Model Observe Learn React RequestDetail Reserve SelectProduct/Service PlaceOrder Receive Use ReviewUsage EvaluateValue ManageProfile/Service ReceiveHelp ReceiveResolution ReceiveNotification Verifyordispute Topup/Pay EnhanceSelection Renewcontract Referproduct/Service Gainloyalty Feedback Discontinue Be Aware Interact Choose Consume Manage Pay Renew Recomm end Leave Buying Using Sharing Py Leave Copyright © The Open Group 2015 Tmforum Customer Journey Reference Model
  14. 14.  ARMU  Average Revenue per market  ARPU  Average Revenue per user  Cart Abandonmentrate  The loss of conversion of user journey end goalthat is not complete  Churn  The rate of loss of customers from aservice  Click through rate  Percentage of user visit to next stage evaluation  Conversion rate  The percentage of user activity that achieved the user journey outcome goal, for example,purchased the product instore.  Confidence Level  level of percentage confidence limit probability accuracy of location datapoint  Latency  The speed of IOT response protocol e.g.Bluetooth LE 6 ms Digital KPIs  Location-basedAttribution  The ability to ascribe a cause or effect from or to a location. Is able to be measured and attributed typically to a sale or an influencer that moved a customer from one stage to the next in a customer journey.  Net Promoter Score NPS  A measure of the level of traffic movement towardsa brand or web site or touch point  Open Rate  The percentage of user that accessed the productor service from an event trigger, for example from a advert or email prompt.  Reoccurring Revenue Rate(RRR)  Often taken as an average, it is is the level of repeat business revenue from a user and or service, typically as a subscription  User Cadence (usage rate)  The frequency a Touchpoint is activated  Valency index  Ameasure of the attractiveness of a touch point cluster driving convergence to it
  15. 15. A blueprint for the business Would you build a skyscraper without a complete architecture? • Implementing a business transformation without an architecture is like building a skyscraper without plans. – You need specific models such as the floor plans, electrical, plumbing, and HVAC schematics – You need the models that show what the finished product will look like and how it will fit with its surroundings • The business architecture ties the strategies, goals, and objectives of the organization to the systems and solutions that provide for them Business model Operating model Capability model IT architectures Business Architecture for Business Transformation
  16. 16. An architecture provides clear benefits A look at two examples approaching the same business problem Without an architecture, projects and solutions become entangled, leading to: • Long, arduous, drawn out projects with no clear end date or success criteria • Redundant, expensive systems and processes • Insufficient requirements traceability • Overly complex integrations and higher long term maintenance cost • A “worn out” business that has no appetite for change Business Architecture for Business Transformation Architecture-based execution, on the other hand: • Options and opportunities prioritized based on business value and outcomes • Efficient, streamlined business processes supported by data and applications with appropriate governance • Traceability of solution components to business requirements and originating goals and objectives • Targeted integrations using effective, repeatable patterns Examples of aggregate spend reporting solutions from pharmaceutical industry
  17. 17. Leadership Itisclear– strongexecutiveleadership,aclearobjectiveandtimeframe,andindividualmetric alignmentarethekeyfactors forsuccess Success demonstration Metric alignment & accountability definition Delivery & engagement ► There is a direct correlation between successful initiatives and executive sponsorship – in each case the initiative has been led by a C-level executive ► Furthermore these initiatives have been led by a single person as opposed to a team of people ► In cases where leadership has changed regularly or been passed from one role to another, the initiative has not enjoyed as much success ► Initiatives that clearly articulate the end-game are successful ► In each case where the initiative has been successful, the business architecture team has had a clear way to demonstrate success through the achievement of agreed outcomes with key stakeholders ► Teams that do not articulate how they will measure or demonstrate success are not considered as valuable ► Celebrating success is also a characteristic of better teams ► Success is this space involves articulating who is accountable for what across three areas: ► Business architecture team – defining what this team will do and what is responsible for ► Other teams and professions – specifically how the business architecture team will interact with them ► Individual metric alignment – specifically how individual roles and rewards will align to the (new) objective ► Successful business architecture delivers across shorter timeframes and communicates outcomes and status regularly ► It becomes the fulcrum around which other professions pivot, pulling in expertise as needed ► Use qualified and experienced professionals. Programs that use subject matter experts in place of architecture professionals have a much higher rate of failure than those who use both correctly How to get it right: success criteria Getting it right isn’t easy and requires qualified professionals Despitedifferentindustries,geographiesandbusinessmodelssomecommonthemeshaveemergedwithinorganizationstoensure successfulbusiness architectureinitiatives
  18. 18. Enterprise Architecture & the Enterprise Enterprise Strategy Fire and hope! Enterprise Architecture Business Operating Environment and IT Infrastructure Transition Planning Architecture Governance Bus Architecture IT Architecture AEI Corporate Yankee Group Saturn Group Yarn Division Knits Division Seneca Plant Raleigh Plant Cash Management Shipping Accounting Component Design Yarn Buying Order Entry Component Scheduling Yarn Dyeing Inventory Assortment Planning Component Knitting Tagging & Packing Business Structure Business Locations Classically, EA is the “planning” function between strategy formulation and delivery… ProgramfocusEnterprisewidefocus Strategy Planning Design and Delivery Change Programs Soln Outline Macro Design Micro Design Devt, etc. Program Architecture Soln Outline Macro Design Micro Design Devt, etc. Program Architecture Enterprise Architecture = “the city plan” System Design = “the buildings” Strategy = “the city’s purpose & goals”Technology Availability Business Opportunity Bus Strategy IT Strategy “Do the Right Things” “Do the Right Things Right”
  19. 19. PROJECT MANAGEMENT CORE PROCESSES Quality Cost Human Resources Communication Project Risk Procurement Integration Scope Schedule
  20. 20. Core Processes explained
  21. 21. Stakeholder Management Making sure that people concerned with the project are continuously engaged and their expectations met. Core Processes continued
  22. 22. Shared Industry Challenges 28 The business will fund the EA functions it believes are delivering value and jettison the rest to partners and vendors The focus will be on the Business and Information layers in the Architecture domain stack because this is where EA has the most impact on the bottom line.
  23. 23. Shared Industry Challenges 29 For the PMO, the focus is on maturing strategic capabilities and implementing a more robust investment portfolio. Increase knowledge of Business and Information Architecture. Deliver pragmatic and immediate benefits.
  24. 24. Industry Response – System Integration Soft skills and Business understanding Complete project metadata Rudimentary inventory of IT assets and services Lack technical knowledge of business information architectures. Inconsistent data and vocabulary to the business Lack soft skills Limited project metadata collected to begin to understand transformation Complete inventory of business and IT assets related across multiple portfolios Technical knowledge of business and information architectures Inconsistent data and vocabulary to the business PPM (PMO) EA
  25. 25. 31 EA vs PPM Business Expectations EA & PPM Challenges • Increase focus on Business Value • Increase knowledge of Business & Information Architecture • More collaboration, less silos • Focus on prioritization • Focus on delivering pragmatic & immediate benefits • Must understand & translate business value into execution • Soft skills are critical • Understand enterprise strategic priorities • Architect for the business • Work differently
  26. 26. EA vs. PPM Interdependent Process EA Role PPM Role Strategy Ensures Business & IT Strategy align Supports Strategic Planning Investment Influences investment decisions & IT budget formulation Supports budget formulation process & monitors investments Investment Support Integral member of integrated project team developing business case & solution Provides standards, tools, assists with scope, schedules, budget, risks & communications Investment Review Process Member of review process, project portfolio planning & review board which monitors portfolio & project performance against scope, schedule, costs, risks, etc. Leads review process. Adds new projects to portfolios, monitors & reports demand, risks/issues & performance problems Acquisition Oversight Ensures IT acquisitions align with target architectures & Technology Standards lifecycle. Promotes RE-USE. Provides acquisition support (lab & governance process) Supports development of acquisition package (alternative analysis, cost estimates, RFPs & selection plan.
  27. 27. EA vs. PPM Current & Target Architecture Enterprise Architecture Business Strategy Business Direction Capability Planning Portfolio Management Structured Direction Program Management Project Management StrategyExecution
  28. 28. Aligning PMO and EA Functions Demand Management Enterprise Architecture Portfolio Management Project Initiation Project Planning Project Closure EA Governance Enterprise Architecture Project Execution Project Monitoring and Control Architecture Development Implementation Governance EA Governance 1 2 3 4 5 6 1 2 3 4 5 6 ImplementationRoadmap Architecture DefinitionDocument ImplementationRoadmap Updated EA Content Framework Existing Capabilities Domain Expertise Architecture ComplianceChecks Step Outs Updated EA Content Enhanced EA Practice
  29. 29. EA’s Specific Contribution to Portfolio Management Initial Portfolio Assessment Detailed Portfolio Assessment Portfolio Prioritization Enterprise Architecture 1 1 2 Existing Capabilities Domain Expertise ImplementationRoadmap Domain Expertise Enterprise Architecture 2 Demand Management Portfolio Management Project Initiation Project Planning Project Closure Project Execution Project Monitoring and Control
  30. 30. 36 Industry Response – System Intergation PPM EAMS Business Successful companies are beginning to integrate their systems. Shuffling stewarded data back and forth between systems.
  31. 31. 37 Industry Response- System Integration Extend and integrate systems for a 360°view of Project and Architecture metadata Extend EAMS to fully enable the execution of project data and apply to applications Extend PPM dimensions to include business capabilities and risk • Common language/taxonomy - establish consistency. • Leverage system of record data and metrics to improve portfolio decisions, analysis & execution. • Support integrated bi-directional use cases e.g., compliance, impact analysis, financial, and demand management
  32. 32. Industry Response – System Integration 38 Establish Integrated Premise – Systems of Record Compliance PPM EAMS
  33. 33. Industry Response Portfolio and Resource Management Capability and Technology Management Strategy and Investments Products Applications and Services Projects Technology Business Capabilities Independent solutions or Integrated into one portfolio. Integrated Strategic Planning and Execution Optimize Your Resources PPM EA
  34. 34. 40 Best Practice Improve project selection decisions • Prioritize by determining which future business capability is supported and align with strategy and architectures. Improve strategic leverage of technology • Leverage technologies by linking to business outcomes. Increase business value delivery • Reuse of reference models, patterns and technical standards (assets). Build a Case for Integration – Focused on Business Value Outcomes
  35. 35. 41 Best Practice • Proposed Project/Business Cases • Project Dependencies Report • Project Fulfillment of EA Requirements • PPM/EA Governance Process • Project Design Reviews • PPM Training for EA staff Ensure PPM Provides Key Deliverables to EA
  36. 36. Best Practice 42 Actionable and Diagnostic Deliverables; • Enterprise context • Collaborative new project or project change proposals: • Project architectural assessments • EA road maps • Project Waivers • EA training for PPM staff Ensure EA Provides Key Deliverables to PPM
  37. 37.