EnterpriseArchitecture_Benefits

1. Enterprise Architecture
Benefits
ISYS90043_2019_SM2 Enterprise Application & Architectures
Svetlana Ryazanova 1064326

2. outcomes that contribute directly to organisational performance,
including lower costs, increased revenue, competitive differentiation,
more accurate decisions, strategic agility, etc.
Organisational Benefits

3. Enterprise Architecture
is the definition and representation of a high-level view of an
enterprise‘s business processes and IT systems, their
interrelationships, and the extent to which these processes
and systems are shared by different parts of the enterprise.
“definition” refers to the
process of EA planning
“representation” to the
direct and tangible
outputs of the planning
process

4. Benefits:
direct
impact from EA
subsequent impact
from EA
reflected in the
tangible outcomes
reflected in the
intangible outcomes
outcomes from the
process (planning)
outcomes from the
documentation (plans)
both planning process and its
outputs is an integral part of EA

5. Knowledge about the
organisation and its goals
Enterprise Architecture
Knowledge about the
organisation’s resources
Better understanding of the
business processes
Reduced CYCLE times
FASTER DECISIONS
Better-informed decisions
Better understanding of current
IT systems
Better communication and
understanding between stakeholders
Improved (IT) performance
LOWER COSTS

6. The key purpose of EA is to guide the building
of an improved operating platform, i.e. IT
systems and digitised business processes.
BUT!
Every organisation has processes and
systems, but not all organisations engage in
EA planning

7. EA-guided operating platform
higher level of
standardisation and integration
improved
information flows
reduced IT costs
reliable systems
and data
increased reuse
higher
responsiveness
better decisions
service
improvements
higher employee
moral
reduced IT costs
successful outsourcing
and other improvements
reduced IT costs
reduced time-to-
market
focus on core
activities
improved
operational
excellence
customer intimacy
product leadership
strategic agility

8. How does EA help improve the operation
platform and could these improvements be
achieved without the use of EA?
AND
If EA does have a unique role in enabling
improvements to the operating platform, are there
factors that affect moving the plans to execution?

9. suggests that it is through the impact on four
ENABLERS - Organisational Alignment,
Information Availability, Resource Portfolio
Optimisation, and Resource Complementarity - that
EA leads to organisational BENEFITS.
EA Benefits
Model (EABM)

10. EA Benefits Model (EABM)

11. a high-quality EA is one that provides a vision for the future
operating platform that is well-aligned with the organisation‘s
strategic goals, complemented by an optimal roadmap for
moving towards that vision, based on an accurate
understanding of the current operating platform.
Enterprise Architecture
Quality

12. How to assess EA quality?
What are the main challenges of direct
EA quality measuring?
Give several examples of EA planning
quality indicators.

13. the extent to which an organisation’s subunits share a common
understanding of its strategic goals, and contribute towards
achieving these goals.
Organisational Alignment

14. EA
planning
identification of
interdependences
identification of
stakeholders that may be
effected by
positive impact on
collaboration and
collective decision-making
Improvements
in operating
platform
better total return on
investment
reduction of incoherent or
duplicated efforts
achievement of strategic
goals with minimal
overhead
Organisational
Alignment
Business
and
system
analysis

15. the extent of useful, high-quality information accessible to
organisational decision makers. Information quality constitutes
relevance, completeness, timeliness, interpretability, and
accessibility.
Information Availability

16. Knowledge base
What Who
How

17. EA
planning
Information
Availability
improved information about
organisation’s processes
improved information about
clients, suppliers and
business transactions
captured previously
undocumented information
Business
and
system
analysis
access to better
information
+
enhanced capabilities to
interpret information
source of competitive
advantage
=
Improvements
in operating
platform

18. the extent to which an organisation leverages its existing resources,
invests in resources that target performance gaps, and minimises
unnecessary investments in duplicated resources.
Resource Portfolio
Optimisation

19. What are three types of
resources in relation to
EA?

20. EA
planning
Resource
Portfolio
Optimisation
identification of resource
gaps or overlaps and
providing recommendations
Business
and
system
analysis
building a more
standardised IT platform
with simplified interfaces and
reduced complexity
recommendations
componentisation of
monolithic systems
identification of suboptimal
business processes and
use of human resources
reduced costs
higher efficiencies
better return on investment
from the organisation’s
resources
improved quality and
reliability of product and
service delivery

21. How does componentisation
help in optimising resource
portfolio ?

22. the extent to which an organisation’s resources synergistically
support the pursuit of its strategic goals.
Resource Complementarity

23. The competitive advantage of organisations tends to rely not on
individual resources but on unique combinations of
complementary resources.

24. EA
planning
Resource
Complementarity
identification of the potential
enterprise-wide synergies
and providing
recommendations
Business
and
system
analysis
development of a corporate-
wide strategic architecture
that establishes objectives
for competencies building
identification of resource
gaps or overlaps and
providing recommendations
componentisation of
monolithic systems
achieving a mutually
reinforcing resource
configuration that is
difficult to replicate
superior cost position
superior customer
information and feedback

25. Which organisations are better
positioned to benefit from EA
investment?

26. EA Maturity Stages
Business
silos
Standardised
technology
Rationalised
processes
Business
modularity
a firm applies IT to
specific business
needs and, thus,
delivers locally
optimal business
solutions
a firm builds a
standardised central
technology
infrastructure to
reduce the cost and
time of delivering and
supporting business
solutions
a firm builds a base of
IT-enabled processes that
represent its core
operations and that
usually depend on shared
and standardised business
processes or data or both
a firm builds on these
core processes with plug-
and-play processes, built
internally or externally

27. EA Maturity Stages

28. flexibility standardisation
The Multinational
approach
The International
approach
The Transnational
approach
The Global approach
seeks to establish
and maximise
business flexibility
around the world,
managing a portfolio
of multiple distinct
business units (BUs).
introduces business
standardisation for
adapting and transferring
parent company knowledge
to foreign markets while
maintaining business
flexibility, often in terms of
regional infrastructure
support.
further leverages
regionalisation of processes
to create business
standardisation in the core
business processes and
establishes BUs as strategic
partners that must
exchange knowledge and
capabilities across the
entire company.
treats the world
market as an
integrated whole,
maximising business
standardisation while
maintaining needed
business flexibility for
competing globally.

29. On Matching of Ross’s IT Architecture Stages and Bartlett and
Ghoshal’s Approaches
e

30. Strengths and Weaknesses of the Four Enterprise
IT Architectures for Globalisation

31. Strengths and Weaknesses of the Four Enterprise
IT Architectures for Globalisation

32. References
Kettinger, W. J., Marchand, D. A. and Davis, J. M. (2010) ‘Designing Enterprise It
Architectures to Optimize Flexibility and Standardization in Global Business’, MIS
Quarterly Executive, 9(2), pp. 95–113.
Ross, J. W. and Beath, C. M. (2006) ‘Sustainable It Outsourcing Success: Let
Enterprise Architecture Be Your Guide’, MIS Quarterly Executive, 5(4), pp. 181–
192.
Tamm, T. et al. (2011) ‘How Does Enterprise Architecture Add Value to
Organisations?’, Communications of the Association for Information Systems,
28, pp. 141–168.