An introduction to Enterprise Architecture System Methodology (EASM).

1. Enterprise Architecture System Methodology
(EASM)
A Brief Overview
Eugene I. Khudobin,
CEO of «Center for Effective Organizations» Ltd.
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2. What is EASM?
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Core Concept
Enterprise Architecture System Methodology (EASM) is the comprehensive methodology intended for an enterprise transformation while facing the
organizational, economical, technological or sociocultural challenges, especially in unsustainable internal and external environment conditions.
Based on general systems theory and purposeful systems management approach, EASM delivers the method for effective enterprise transformation in
terms of its architecture. EASM consider the enterprise as a purposeful social system which exists according to the common system consistent patterns
and reflects the system features which is common for all the kinds of systems (biological, technical, social, economical systems etc.).
Every system has an architecture. EASM represents the assertion that every enterprise – as a system – has an architecture regardless of the presence of
architecture management function, and this architecture needs to be managed in order to gain a strategic advantage.
Consider EA as a principal multi-dimensional constitution of the whole enterprise structured in accordance to key stakeholders viewpoints, EASM is about
to manage all the aspects of the EA in context of its integration and contribution to overall business performance maximization.
The methodology delivers interdisciplinary and interbranch common language for every kind of key enterprise stakeholders based on the common
approach for grasping the consistent patterns and principles driving the existence of enterprise as a system.
Using motivational aspect of the value as an entry point for any kind of strategy development, EASM ensures the fundamental health of the enterprise
secured by the harmonization of its principles and objectives with various individual stakeholder values.
Using corporate performance management as a crucial EA evaluation process, EASM ensures economical effectiveness and efficiency of key architecture-related
management decisions in terms of shareholder value maximization.
Application, Support and Development
EASM is currently one of the fastest growing EA system frameworks namely in the field of the overall EA management including business strategy,
values, products and services, projects and initiatives, finance, operations, structures, information, infrastructure and technology areas.
Applied in many major oil & gas, nuclear energy, telecom, engineering and professional services companies, EASM continues to develop by the relevant
community of leading industry-specific and management experts based on the platform of Center for Effective Organizations Ltd.
The latest available version of the methodology is EASM 4.0 (July 2014).

3. EASM Overview
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Decision Making Process
(Strategy Development and Implementation)
design-by-learning unified process for any type of architecture-related
change management
learning-by-design
Enterprise Architecture System Methodology (EASM)
Enterprise-as-System Core Principles
ARM
(Architecture Reference Model)
ACMP
(Architecture Change Management Process)
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AAMI
(Architecture Assessment
and Modelling Instruments)
1. EASM is always about decision making. Because of its
transformation purpose, EASM delivers the comprehensive
toolkit for whose who engaged in preparation, assessment
and establishment of key management decisions required
for efficient and effective enterprise transition from point
A to point B, C, D … X, which is, in another words, is a
strategy development and implementation process.
2. As we all know from Shell experience, decision making
process is about continuous learning. In this case, EASM
enables the learning-by-design approach for key decision
making stakeholders based on flexible and reliable
enterprise-as-system model facilitates multi-dimensional
and multi-purpose design-centric collaboration.
3. Based on continuous improvement paradigm, EASM
consist of embedded practices facilitating iterative design
improvement aimed to reach and raise the target
performance level of the entire enterprise by means of
design-by-learning approach. The approach is about the
capability of rethinking and improvement of considered
design of the enterprise based on individual and
collaborative learning curve acceleration methods.
4. Thereby, EASM enables the architectural description of
the enterprise which could and must act as an actual
sufficient knowledge of the enterprise suitable for
efficient and effective decisions making and
implementation guidance.

4. EASM Key Components
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EASM Component Description
Enterprise-as-System Core
Principles
The common principles valid for any organization’s existence and development based on:
1. Assertion that every enterprise has an architecture regardless of the presence of architecture management
function, and this architecture needs to be managed in order to gain a strategic advantage.
2. Set of the enterprise-as-system common features and its relationships (openness, diversity, emergence,
purposefulness, coherence, flexibility, sustainability etc.).
3. Set of the enterprise-as-system consistent patterns.
ARM Architecture Reference Model, defines the reference architecture domains, domain’s building blocks and viewpoints
interested in relevant building blocks according to key corporate executive functions.
AAMI Architecture Assessment and Modelling Instruments, including:
1. System Compliance Assessment
2. System Coherence Assessment
3. System Dynamics Assessment
4. Derived Instruments (Capability-based Planning, Agreement-based Methods, Value Chain Methods, Profit-based
Valuation Methods)
ACMP Architecture Change Management Process, defines the unified process for any type of architecture-related change
management in context of:
1. As-is Enterprise State Review,
2. To-be Enterprise State Development, inc. Design, Planning, Budgeting and Evaluation
3. To-be Enterprise State Implementation,
4. To-be Enterprise State Establishment
- in accordance with capability-based management approach and PDCA continuous improvement paradigm.

5. Architecture Reference Model Overview
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6. ARM Domains (EASM Enterprise Architecture Scope)
Enterprise Architecture
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Financial
Architecture
Market
Architecture
Motivation
Architecture
Infrastructure
Architecture
Operational
Architecture
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1. Motivation Architecture defines the behavior
prerequisites of internal and external stakeholders which
are the crucial change drivers for any enterprise.
2. Transformation Architecture defines the overall enterprise
capabilities required to achieve strategic business
outcomes in terms of As-is – To-be enterprise
transformation.
3. Market Architecture defines the marketplace of the
enterprise in terms of marketing “war” strategy focused on
brand and product portfolio.
4. Financial Architecture defines both resourcing and value
aspects of the enterprise in terms of the relevant cost and
corporate equity structure.
5. Operational Architecture defines the enterprise
constitution within the context of its functions, structures
and behavior.
6. Infrastructure Architecture defines the technological
enablers of organization required for automation and
information management of its value chain.
Transformation
Architecture

7. ARM Domains (EASM Enterprise Architecture Scope)
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ARM Domain Description
Motivation Architecture Motivation Architecture defines the behavior prerequisites of internal and external stakeholders (shareholders,
executives, org. units, consumers, competitors, suppliers, regulators etc.) which are the crucial change drivers for any
enterprise. This domain describes the enterprise stakeholders, their objectives, expectations, associated risks and
influence by means of the value paradigm. Functional, operational and business strategy in the associated ecosystem
context are the key areas of this domain.
Transformation Architecture Transformation Architecture defines the overall enterprise capabilities required to achieve strategic business outcomes
in terms of As-is – To-be enterprise transformation. However, this domain it about to define the portfolios, programs,
projects and initiatives required to acquire or develop target capabilities at the target performance level. Transformation
Architecture delivers the bridge between up-down strategic planning, RnD and “upstream” continuous improvement
innovations through the systematization of mentioned activities outcomes at the transformation portfolio model.
Market Architecture Market Architecture defines the marketplace of the enterprise in terms of marketing “war” strategy. This domain is
focused on the company’s position on its target markets subject to commercial and regulatory restrictions within the
context of unique trade proposal (UTP). Domain’s key objective is differentiation and systematization of brand and
product portfolio aligned with the relevant identity proposition which are the key areas of the domain.
Financial Architecture Financial Architecture defines both resourcing and value aspects of the enterprise in terms of the relevant cost and
corporate equity structure. Corporate value tree, asset, financial, budget and capital structures are the key areas of this
domain. Financial Architecture delivers the bridge between the enterprise capabilities and its performance potential
through the value tree relationships between the technical, operational, marketing and financial measures of the
enterprise (from particular asset/ activity cost and revenue structure to market capitalization and EVA).
Operational Architecture Operational Architecture defines the enterprise constitution in context of its functions, structures and behavior (inc.
agreement-based interaction with counterparties). Domain’s key objective is systematization of operations management.
Organization structure, value chain, business process, service and competence model are the key areas of this domain.
Infrastructure Architecture Infrastructure Architecture defines the technological enablers of organization required for automation and information
management of its value chain. Technological processes and the relevant ICT / production systems architecture are the
key areas of this domain (inc. data, information, software, facilities, equipment and technology layers).

8. A Reference between EASM EA Scope and “traditional” EA Scope
Enterprise Architecture
Business Architecture Transformation “Architecture”
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Market
Architecture
Financial
Architecture
Operational
Architecture
Infrastructure Architecture*
Motivation
Architecture
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Data
Architecture
Technology
Architecture
Applications
Architecture
ARM
Domain
“Traditional”
EA Domain
Transformation
Architecture
* - unlike “traditional” EA frameworks, ARM infrastructure architecture domain covers both ICT and production systems and facilities at
the data, application and technology layers

9. ARM Building Blocks (EASM Key Units of Management)
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Motivation Architecture Market Architecture
Financial Architecture
Infrastructure Architecture
Transformation Architecture
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Data and
Information
Applications
Technological
Processes
Infrastructure
(Facilities, Equipment, Software and Technology)
Portfolios Programs
Projects and
Initiatives
Capabilities
Products
Drivers Values Objectives
Stakeholder Concerns
Brands
(Identity)
Value Tree Capital Structure
Asset Structure
Financial and Budget
Structure
(inc. FRC Structure)
Operational Architecture
Services Competences
Business
Processes
Organization
Structure
Value Chain

10. Architecture Reference Model Taxonomy
Reference Models
Domain Reference Models
Model Kinds
ARM Taxonomy
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Compliance
(Ex.: Requirements Compliance Matrix)
Structure
(Ex.: Organization, Financial and
Motivation
Reference Model
Reference Model
Enterprise-as-System Reference Model Knowledge Models)
Interaction
Tree
Master Data Structures)
Network
(Ex.: Business Environment and
(Ex.: Business Process Flows and Value Chain Models)
Affection
(Ex.: Performance Models and Scenarios)
Financial
Components and its relationships inherent for any kind and domain of an enterprise
System Structural Reference Model
Structural elements and its
relationships inherent for any kind
of system
Transformation
Reference Model
Operational
Reference Model
Market
Reference Model
Infrastructure
Reference Model
System Features Reference Model
Features and its relationships inherent
for any kind of system
Enterprise-as-System Meta Model
System Reference Model
Core components and its relationships inherent for any kind of system

11. Architecture Change Management Process Overview
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12. ACMP PDCA Lifecycle
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Architecture Change Management Process
As-is Enterprise State
Review
To-be Enterprise State
Implementation
To-be Enterprise State
Development
Performance
Management
To-be Enterprise State
Establishment
A
P
D
C

13. ACMP Overview
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Architecture Change Management Process
Ad-hoc Change Management
As-is Enterprise State Review To-be Enterprise State Development
To-be State
Design
To-be State
Planning
To-be State
Budgeting
To-be State Evaluation
Capability Assessment
(inc. Internal Audit)
As-is State Evaluation
To-be Enterprise State Implementation
Architectural Governance and Supervision
Solution Delivery
To-be Enterprise State Establishment
Implemented
To-be State
Assessment
Implemented
To-be State
Establishment
Learned Lessons Report Development
AAMI
Performance Management
Performance Evaluation
Performance Resolution
Enterprise Architecture Methodology Development
Benchmarking Foresight
Environment
Assessment

14. ACMP: How It Works?
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Performance Management
Ad-hoc Change Management
As-is Enterprise State
Review
To-be Enterprise State
Development
To-be Enterprise State
Implementation
To-be Enterprise State
Establishment
Enterprise Architecture Methodology Development
Business
Initiative N
Employee’s
Initiative N
Business
Change N
Technology
Change N
Legacy
Change N
Economy
Change N
Social
Change N
1. Performance management process is embedded in every
architecture management stage in order to ensure the
quantified effectiveness and efficiency of key architecture-related
management decisions (both at the enterprise and
solution level, from particular capability improvement
outcomes to strategic business goals, from particular
project cash flow to the company’s EVA and market
capitalization).
2. Ad-hoc change management process is integrated with
every architecture management stage as a single entry
point for any type of change which can affect As-is or To-be
enterprise state (as a risk or opportunity). This integration
ensures the relevance of To-be state and safety of its
implementation process, which means the assurance that
every change is early identified and well managed
according to gain a strategic advantage. Further, this is the
bridge between the corporate RnD, continuous
improvement, business strategy development and EA
management process.
3. EA methodology development process is integrated with
To-be state establishment stage ensures the methodology-related
To-be implementation learned lessons becomes
the requirements for the next version of improved
in-house EA methodology.
Environment
Change N

15. ACMP Performance Management Principal Scheme
EVA
OCF NPV ICF
OPEX KPI 1 OPEX KPI 2 OPEX KPI N Revenue KPI N CAPEX KPI N
Capability 1 Capability N
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EBITDA
KPI 1 KPI 2 KPI N KPI 1 KPI 2 KPI N KPI 1 KPI 2 KPI 3
Business Process 1 Business Process 2 Business Process N
KPI 1 KPI 2 KPI N
KPI 1 KPI N KPI 1 KPI N KPI 1 KPI N KPI 1 KPI N KPI 1 KPI N KPI 1 KPI N
Competence 1 Competence N
Business
Service 1
Business
Service N
Technological Process N
Facility 1
Application Service N Technology N
Facility N
KPI 1 KPI 2 KPI N KPI 1 KPI 2 KPI N
KPI N
Driver 1 Driver 2
Driver N
Driver 3
Other enterprise-wide
KPI 1
Other enterprise-wide
KPI N
KPI N KPI N
The performance model above is an example intended to represent the relationships between the key drivers and KPIs at all the levels of particular segment architecture.
The model uses a corporate value tree as a skeleton to ensure the economical efficiency of particular transformation solution. Such models are used to fulfill the ACMP performance evaluation
process for any required sufficient part of EA and underlies the business case of the correspondent transformation portfolio, program, project or initiative.

16. ACMP Integration Scope
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Architecture Change Management Process
As-is Enterprise State
Review
To-be Enterprise State
Implementation
To-be Enterprise State
Development
Performance
Management
To-be Enterprise State
Establishment
Corporate
Portfolio
Management
Budgeting
Investment
Management
Business Process
Management
Asset
Management
Production
Planning and
Control
Strategic
Management
Product
Management
Value
Management
RnD
Management
Accounting and
Controlling
Quality Assurance ICT Management

17. ACMP Capability-based Planning as a bridge between
Architecture and Corporate Portfolio Management
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Program 1 Program N
Project 1
Project N
Project 1
Project N
Program 1
Project 1
Project N
Project 1
Program 1 Program N
Project 1
Project N
Project 1
Project N
Program 1 Program N
Project 1
Project N
Project 1
Project N
Project N
Portfolio N Portfolio 3
Portfolio 1 Portfolio 2
Capability 1
(Segment 1)
Capability 2
(Segment 2)
Capability N
(Segment N)
Capability
2.2
Capability
2.1
Capability
2.N
Strategic
Objective 2
Strategic
Objective N
Strategic
Objective 1
Capability
2.2.2
Capability
2.2.1
Capability
2.2.N

18. Architecture Assessment and Modelling Instruments Overview
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19. AAMI Overview
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AAMI Description
System Compliance Assessment The instrument is using for assessment of the level of compliance provided by the enterprise or its particular
components (capability, service, competence, funding scheme, process, facility etc.) according to established
requirements (industry, quality, accounting, reporting or parent company standards; shareholder, customer or system
requirements; architectural, accounting, technical and other policies etc.).
System Coherence Assessment The instrument is using for assessment of the level of the enterprise coherence (inc. coherence of particular enterprise
capabilities) in the context of:
1. sufficiency, completeness, integrity and non-redundancy of relationships between its components;
2. appropriate level of coupling and granularity of its components;
3. appropriate level of accountability for each significant component in terms of the current and target competence,
role and decision making model;
4. balance of its components both from the vertical (driver – objective – capability – service – facility etc.) and
horizontal perspective (cross-functional balance, portfolio and budget balance etc.).
System Dynamics Assessment The instrument is using for assessment of non-linear consistent patterns and its consequences in the case of long-term
architecture-related management decisions. The mentioned consequences is obvious for system dynamics non-linear
viewpoint and unobvious for “traditional” linear viewpoint. Considering enterprise as a non-linear dynamic system, the
instrument provides minimalistic “executive-friendly” language based on the feedback environment modelling enabling
various scenario development and comparison for any enterprise transformation initiative in context of its pitfalls and
hidden opportunities which is invisible for existing linear analysis methods.
Derived Instruments 1. Capability-based Planning
2. Agreement-based Methods
3. Value Chain Methods
4. Profit-based Valuation Methods (as an instrumental base for ACPM performance management process)

20. AAMI in Application to Key EA Modelling Activities
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Agreement-based
Methods
Identify a modelling
approach
Verify or integrate
a model
Value Chain
Methods
Capability-based
Planning
System
Coherence
Assessment
System
Compliance
Assessment
Quantify a model
(if required)
Build / run a model-based
scenario
System
Dynamics
Assessment
Profit-based
Valuation
Methods
Build a model
for performance
models
for interaction models

21. More about EASM?
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You can learn more about EASM refer to the following materials:
1. EASM Version 4.0 Specification.
2. EASM Version 4.0 Case Studies and Success Stories Overview.
3. An Introduction to EASM for System Engineers and Manufacturing Practitioners.
4. An Introduction to EASM for CFO.
To use the EASM Architecture Reference Model as a modelling notation, you can download the following plugins:
1. EASM ARM Version 4.0 Plugin for ARIS Business Architect.
2. EASM ARM Version 4.0 Plugin for Sparx Enterprise Architect.
3. EASM ARM Version 4.0 Stencil Set for MS Visio.
To access the above materials or modelling plugins, please contact us at info@ceorg.ru (please introduce yourself, your company, the list of required
plugins/ materials and your subject of interest in EASM).

22. Thank You for your time!
Copyright © 2014, «Center for Effective Organizations» Ltd. (CEO Ltd.).
All rights reserved
EASM is a registered trademark of CEO Ltd. Any unauthorized usage or distribution is prohibited by the law.
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