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Using Enterprise Architecture Management Methods and Technologies for Knowledge Structuring in Strategic Management


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Today, in the era of digital economy and the need for constant digital business transformation, the relevance of Enterprise Architecture (EA) tools and methods to strategic management tasks increases. According to the latest research, strategic decision‐makers face a significant number of problems, which potentially can be successfully resolved with the help of EA. This paper is a review of potential application of EA methods and technologies to support strategic management process. The main research method for this paper is an exploratory literature review focused on the evolution, classification and functionality of EA methods with subsequent analysis of relevant problems from the field of strategic management. This result is an intermediate point for the further research which may add considerable value to both researchers and practitioners.

For citation: Kudryavtsev D., Kubelskiy M. Using enterprise architecture management methods and technologies for knowledge structuring in strategic management. Proceedings of Theory and Applications in the Knowledge Economy (TAKE 2017), July 12-14 2017, Zagreb, Croatia. pp. 589-599.

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Using Enterprise Architecture Management Methods and Technologies for Knowledge Structuring in Strategic Management

  1. 1. STRATEGIC VISION AND 2007/08 ACADEMIC YEARUsing Enterprise Architecture Management Methods and Technologies for Knowledge Structuring in Strategic Management Dmitry Kudryavtsev, Associate Professor Miroslav Kubelskiy, PhD student Graduate School of Management Saint- Petersburg State University TAKE 2017
  2. 2. 3 Evolution of strategic management Stage 1 1960s – the first half of 1970s Stage 2 Mid-1970s – 1980s Stage 3 Late 1980s –1990s Stage 4 2000s The dominant concept of successful strategies Planning Positioning Resource-based Dynamic capabilities New notions and concepts of strategic management • The strategy of the firm • Corporate strategy • Strategic planning • Strategic management by the firm • Economic efficiency of strategies • Typical competitive strategies • External control of the firm • Resource base of the firm • Organizational capabilities and key competencies of the firm • The fundamental problems of the theory of "strategic management" • Dynamic capabilities of the firm • Knowledge Management • Network organization Sources of competitive advantage Internal (strengths and weaknesses of the firm) External (the structure of the industry and environment of the firm) Internal (resources and capabilities of the firm) Joint development of internal and external Main authors A. Chandler, I. Ansoff, K. Andrews, et al. M. Porter, R. Ramelt, D. Shendel, K. Hatten, C. Hofer, et al. B. Wernerfelt, K. Prahalad,,, J. Barney, R. Grant, et al. D. Tees, S. Winter, I. Nonaka, H. Takeuchi, et al. Source: Katkalo, 2006
  3. 3. 5 Challenges of strategic management Source: Eppler & Platts, 2009 Cognitive - Information overload - Stuck in old view points - Biased comparison and evaluation - Paralysis by analysis Social - Diverging views or assumptions between team members - Incomplete communication of basic assumptions - Coordination difficulties Emotional - Lacking identification with strategy - Employees should perceive the strategy as something worthwhile pursuing - The strategy needs to be communicated to employees convincingly Eppler, M. & Platts, K. (2009). Visual strategizing: the systematic use of visualization in the strategic-planning process. In: Long Range Planning, 42(1), pp. 42-74.
  4. 4. 6 Benefits of visual strategizing Challenges of strategic management Corresponding strengths of visualization Cognitive Information overload Facilitating elicitation and synthesis of information Stuck in old view points Visual methods enable reframing, change points of view and contribute to perspective switching Biased comparison and evaluation Better, more exhaustive comparisons Paralysis by analysis Visualization helps to remember the current strategic conversations Source: Eppler & Platts, 2009
  5. 5. … but not only representation form is important • Examination of the cause-and-effect- relationships between different strategic measures, • Coherence or alignment of strategic initiatives, systemic view, • Digital economy and a new role of IT. 7
  6. 6. 8 Enterprise Architecture (EA)
  7. 7. What is architecture? 9
  8. 8. 10 Enterprise Architecture (EA) Architecture is a … • … fundamental organization of the system, embodied in its components, their interrelationships with each other and with the environment, as well as guidelines for the design and development of the system (ISO / IEC 42010: 2007). • … description (model) of the main device (structure) and links of parts of the system (physical or conceptual object or entity) (ISO 15704: 2000).
  9. 9. from Building architecture to Computer architecture 11 - the manner in which the components of a computer or computer system are organized and integrated
  10. 10. From Computer Architecture to IS Architecture 12 Amdahl G., Blaauw G., Brooks F. (1964) Architecture of the IBM System/360. In: IBM Journal of Research and Development.
  11. 11. From Computer Architecture to IS Architecture 13 Amdahl G., Blaauw G., Brooks F. (1964) Architecture of the IBM System/360. In: IBM Journal of Research and Development.
  12. 12. 14 Enterprise Architecture (EA) (1) The fundamental organization of an enterprise, either as a whole or together with partners, suppliers and / or buyers (the "expanded enterprise"), or parts (for example, business direction, department), and (2) Guiding principles for its design and development (Opengroup, TOGAF 2003) (3) EA is based on enterprise modeling and implies documentation of enterprise strategies, business capabilities, business processes, organizational structures, and information technologies, and especially their interaction and dependencies. From representation perspective EA models include catalogs, matrices and diagrams (TOGAF 2011).
  13. 13. Enterprise architecture (EA) evolution 15 Enterprise architecture Technical Architecture= Enterprise architecture Information technologies architecture = • Information • Applications • Technical infrastructure Enterprise architecture IT architecture= Business architecture+ IT architecture Business architecture Goals & Objectives Metrics Business model Business processes Capabilities Organizational structure … Enterprise architecture 1980-s 1990-s 2000-s 2010-s • Business processes • Goals & objectives • Organizational structure KnowledgeValue chain/stream etc Services • Technical infrastructure
  14. 14. A Guide to the Business Architecture Body of Knowledge™ (BIZBOK™ Guide) 16
  15. 15. 18 Potential for using Enterprise Architecture to support strategic management 1. What can Enterprise Architecture offer for strategic management? 2. For what tasks of strategic management EA can be used? 3. How? Variations of the EA role depending on the type of business strategy of the company.
  16. 16. What can EA offer: Visual languages for organizational modeling 19
  17. 17. 20
  18. 18. 21 What can EA offer: way of thinking Architectural Thinking is a • lightweight (e.g., less formalized), • utility-centered approach, that is aimed at • supporting non-architects and • people outside the IT function to • understand, analyze, plan, transform and communicate fundamental structures and design/evolution principles of what they perceive as their work system, i.e. • to adopt holistic, long-term considerations in their daily decisions. Source: Winter, 2014
  19. 19. What can EA offer: IT support 23
  20. 20. 24 Enterprise Architecture Management (EAM) tools Key design objects Apps Data Infrastructure Business processes Functions Organization structure Strategy Business model CASE tools BPR tools Orgware Strategy design tools EAM tools (Enterprise Architecture Management) + + + 1980s 1990s 2000s 2010s
  21. 21. EAM tools as a part of strategic planning toolkit 25
  22. 22. 26
  23. 23. 28 For what tasks of strategic management EA can be used? (I/III) EA has very different coverage and scope of activity in different organizations. It is possible to distinguish two different variants of involving EA in the tasks of development management: 1. EA interacts with the strategy, but does not "cover" the objects and information needs of strategic management; 2. Strategic management is built on an architectural approach.
  24. 24. 29 In the first case, the EA provides information about the current state of the organization for strategizing and takes the results of strategizing to build the appropriate architecture. The architecture, in this case, can solve three tasks : 1) Identification of the need and potential for changes (when there is a driver for changes, but no target state is defined); 2) Identification of necessary changes (when the target state is defined in the strategy language, but the design of the target architecture is required); 3) Implementation of the necessary changes (EA performs audit and supervision of the changes being carried out for their conformity with architectural plans). For what tasks of strategic management EA can be used? (II/III)
  25. 25. 30 In the second case, the EA practice includes working with the objects of strategic planning and development management. For example, (Simon et al. 2014) proposed a business architecture framework that includes the necessary elements of strategic management, as well as detailed scenarios for the use of EA at all stages of the strategic management process: • strategy formulation, • strategy implementation, • strategy monitoring. For what tasks of strategic management EA can be used? (III/III)
  26. 26. For what tasks of strategic management EA can be used? (III/III) 31 (Simon et al, 2014)
  27. 27. 32 How? Variations of the EA role depending on the type of business strategy Strategy type Grow Experiment Orchestrate Adapt Reinvent Environment Stable and predictable Unpredictable N/A Changing quickly N/A Features of strategy • Structured analysis • Implementing competitive advantage • Search and creation of innovations • Integration into and influence the ecosystem • Flexibility • Developed dynamic capabilities • Existing products, services and processes no longer work • Need a transformation Factors of success Size, differentiation or capabilities Experimentation Orchestration and collaboration Ability to adapt quickly N/A EA role Analyst Innovator Connector Conductor Tactician Main focus of EA Detailed analysis, planning and monitoring of changes Search for ideas for innovation, support for innovation processes External focusing, establishing connections, integrating Identification of areas for change, support for changes Development and evaluation of change options, transition planning Source: McGregor 2016
  28. 28. Conclusions • Strategic management faces many challenges today • Enterprise architecture has overcome the way from IT infrastructure management through business & IT alignment to complex support of enterprise transformations • Enterprise architecture methods and tools have serious potential for improving work with knowledge about a company in strategic management 34
  29. 29. 35 THANK YOU! Q&A Dmitry Kudryavtsev Miroslav Kubelskiy