Enterprise
Architecture
Business Value Analysis



                          1
About the presenters

                       Claye Greene                                Javier Rincón
                       Managing Director                           Director - España


TechBlue, Inc.                             Dux Diligens, Inc.
1940 Duke Street                           Santiago Grisolia 2, 163
Suite 200                                  PTM / Parque Cientifco de Madrid
Alexandria, VA 22314                       28760 Tres Cantos, Madrid, España

T: +1.412.255.3799                         T: +34.918.064.442
E: clayegreene@techblue.com                E: javier.rincon@duxdiligens.com




                                                                                       2
ENTERPRISE ARCHITECTURE
Introduction

                          3
Enterprise Architecture
        Strategic business value

Optimizer                   Transformative                 Innovative

•   Well run IT shop        •   Partnered goals with the   •   New markets, products and
                                business                       services
•   Understood technology
    enablers                •   Value management           •   Business first organization



                                                                         3
                                        2
               1

                                                                                             4
Enterprise Architecture
                                   Increase integration across value-webs, infrastructures, multi-role / multi-partner enterprises
                                  • emphasis on overall effectiveness rather than single-point ‘efficiency’
                                  • increase overall agility, adaptability, responsiveness, resilience, management of opportunity / risk
                                  • increase synergies between processes and partners
                                  • increase overall engagement in innovation, productivity, quality
         fourth wave:
          EA = whole-of-enterprise architecture (WEA)


         third wave:
VALOR




         EA = EWITA + Business Architecture (EITA+EBA)

        second wave:
                                                                     Increase enterprise agility and alignment with business strategy
        EA = Enterprise-Wide IT Architecture (EWITA)                 • enable changes in business strategy with quick-response changes
                                                                     in enabling processes and technology solutions
                                                                     • inform strategy more effectively with strategic paths to identify and
        first wave:                                                  integrate technology-enabled opportunities (and threats)
        EA = IT technical architecture (TA )



                                             Reduce complexity and cost of IT systems
                                            • increased convergence consolidates purchasing, lowers training costs, etc
                                                                                                                                               5
                  TIEMPO                    1990               2000               2010            2020
ENTERPRISE ARCHITECTURE
Understanding the value

                          6
Enterprise Architecture
   Business Drivers for Enterprise Architecture

                                 Manage             Improve
                             operational costs   competitiveness
       Increase                                                           Improve
      profitability                                                     collaboration
                                                        1
                                                          3


          $
                                                       2




Leverage new                                                              Regulation compliancy
 technology                                         Improved resource
                      Mergers & Acquisitions            utilization                               7
Enterprise Architecture
         Benefits of Enterprise Architecture


  Alignment with corporate strategy            Improved change visibility


     Improved quality of work
                                                      Reduced integration complexity
                       output

                                                        Consolidated systems and
Improved business flexibility
                                                        applications


      Reduced time to market                          Increased IT efficiency



               Better asset utilization        Collaborative business unit interaction


                                                                                         8
Enterprise Architecture
   The core of effective business transformation

 Effectiveness                                               Efficiency
 Improving the effectiveness of                    Accelerating enterprise
 the enterprise across systems                          efficiency through
 and organization                                  streamlined processes
                                                            and strategies




 Agility                                                     Durability
 Enhancing the agility of the                       Increasing enterprise
 enterprise to better respond to                   durability to function in
 opportunities and threats                             dynamic operating
                                                             environments



                                                                               9
Enterprise Architecture
 The path to Enterprise Architecture can be daunting


             AGATE
                                                                                       RM-ODP
                    EABOK
    MODAF
           DNDAF                                                                   GOD
                      NAF                                         ARCON
                                                                                         TRAK
                                                     Praxeme

                                              ?
                  IDEAS                                         DoDAF          SABSA
                           TOGAF                           MEGAF

                 Dragon1




   Framework?                      Expectations?               Governance?
   Methodology?                    Starting point?             Management?
   Objectives?                     Opportunities?              Coordination?                    10
   ROI?                            Roadmap?                    Necessity?
Enterprise Architecture
 The path to Enterprise Architecture can be daunting
                              Challengers                   Leaders


                                                                                       IBM Mega
                                                                          alfabet

                                                                                     Troux

                                                                                OpenText
                                                                               Casewise
                                                                             Software AG
        Ability to execute




                                                             BiZZdesign
                                                                   QualiWare
                                              SAP-Sybase
                             Atoll Technologies                            Avolution
                                                                          iteratec



                                      Future Tech Systems
                             Sparx Systems




                             Niche players                  Visionaries                                                                              11

                                     Completeness of vision
                                                                             Source: Gartner Magic Quadrant for Enterprise Architecture Tools 2012
Enterprise Architecture
              The path to Enterprise Architecture can be daunting

  Common bad Enterprise Architecture practices                       Mitigation strategy              Opp   Risk
                                                                     Proactive collaboration across
  Lack of integration with Enterprise Architect strategic planning
                                                                     units                            
                                                                     Allow for framework
  Rigid adherence to Enterprise Architecture frameworks
                                                                     customization                          
  Too much standardization                                           “Just enough” standards          
  Analysis paralysis                                                 Follow strong EA methodology           
                                                                     Incorporate business
  Insufficient business focus
                                                                     objectives                       
  Ineffective collaboration                                          Engage effective leadership            
  Lack of open communication                                         Improve asset accessibility      
                                                                     Develop feedback
  No effective feedback channels
                                                                     communication channels                 
                                                                     Refocus EA as an enterprise
  Too much technology influence
                                                                     objective, not technology              
  Dominant technology skills and talent                              Diversify EA staff               
                                                                     Employ formal tools later in
  Tools driving the Enterprise Architecture
                                                                     the process                      
                                                                     Documenting current state is
  Too much focus on current state
                                                                     not Enterprise Architecture      
                                                                     Enterprise Architecture is an                 12
  Premature or incomplete initiative conclusion
                                                                     adoption, not a project          

* Based on Gartner research
ENTERPRISE ARCHITECTURE
Getting there

                          13
Enterprise Architecture
       TechBlue Business Value Analysis

                                   Business Value Analysis process

Understand:                                   Assess:                                        Engage:
Capture target operating                      Closing gaps to effective                      Initiative launch
states for the enterprise                     transformation




Understand                   Identify                Assess                   Select               Engage

S.M.A.R.T. business          Transformation                                    Maximum value         Transformation
                                                       Transformation
objectives                   opportunities                                     starting point        initiation
                                                       readiness



                      Identify:                                       Select:
                      Capture opportunities to                        Strategic planning to meet
                      transform the enterprise                        enterprise objectives
                                                                                                                      14
ENTERPRISE ARCHITECTURE
Understanding enterprise objectives

                                      15
Enterprise Architecture
             Understanding enterprise objectives
                                                                                                             Business
                                                              Strategies, documents and diagrams that describe the
                                                                                               business structure
Data
Policies and standards governing which data is
collected, and how it is stored, arranged and integrated
within the enterprise.
                                                                                                         Organization
                                                                   Focuses are engaging the right people, in the right
Technology                                                                                   place, at the right time.
Availability, scalability and reliability of technology
assets including computer systems and telephony
infrastructure.
                                                                                                          Application
                                                                                   Ensures enterprise applications are
                                                                                           scalable, reliable, available
                                                                                                      and manageable




                                                                                                                           16
                                                           Understand   Identify     Assess     Select     Engage


                                                              
Enterprise Architecture
    Understanding enterprise objectives




Specific             Measurable           Attainable              Realistic                     Time-bound
Objectives have to   A goal achievement   It should be            The objective                 The goal has to
be specific and      should be            attractive for the      needs to be                   set within a time
positively           measurable           project team to         achievable in a               frame
described                                 reach the goal          realistic way




                                                                                                                       17
                                                               Understand   Identify   Assess        Select   Engage


                                                                  
Enterprise Architecture
 Common business objectives

        Business                      Data
       Increase business agility    Improve data value
       Expand competitiveness       Extend data accessibility
       Speed time to market for     Increase data security across
        new products and services     the enterprise



        Application                   Technology
       Enhance user productivity    Improve system availability
       Reduce capability rollout    Decrease employee lost time
       Increase usability of key    Improved collaboration
        application assets            across business units


                                                                                                18
                                             Understand   Identify   Assess   Select   Engage


                                                
Enterprise Architecture
           Case study
Business challenge
Customer organization initiated a program to become more effective at processing financial transactions, and improving the
overall performance of the business units within the enterprise. Historically, each corresponding business unit applied
independent decisions to prioritize high value transactions, however without shared information between them, their
efforts were often uncooperative, duplicated, and resulted in strategic decisions that benefited each individual group rather
than the enterprise.

Details
Approach                                  Focus areas                                    Outcomes
• TechBlue proposed an Enterprise         • The TechBlue BVA highlighted key             • The BVA established an EA adoption
  Architecture Business Value Analysis      mission objectives across each                 roadmap to significantly improve key
  to lay the foundation for effective       business unit, and determined                  performance indicators.
  transformation.                           plausible approaches for closing the
                                                                                         • Development of EA best practices
                                            gaps and measuring key performance
• Key goals of the BVA were to better                                                      and governance for effective
                                            indicators.
  align business objectives with                                                           adoption.
  enterprise mission, and streamline      • Key identified transformation                • Improved support for future financial
  with financial transaction business       opportunities were to improve data             program rollouts, increasing business
  processes to improve performance.         availability, and centralize key               agility, flexibility and ability to
                                            analytical decision-making that each           respond to market opportunities.
                                            group would leverage.
                                                                                                                                   19
                                                                            Understand     Identify   Assess    Select   Engage


                                                                               
Enterprise Architecture
             Leveraging enterprise objectives
Objective




            Enhance collaboration     Gaps: Business, Technology, Data
Objective




            Increase agility          Gaps: Technology, Data
Objective




            Speed time to market      Gaps: Business, Application




                                                                                                            20
                                                         Understand   Identify   Assess   Select   Engage


                                                            
Enterprise Architecture
       Identifying transformation opportunities

                                    Business Value Analysis process

  Understand:                                  Assess:                                              Engage:
  Capture target operating                     Closing gaps to effective                            Initiative launch
  states for the enterprise                    transformation




Understand                    Identify                Assess                   Select                      Engage

S.M.A.R.T. business           Transformation                                    Maximum value                   Transformation
                                                        Transformation
objectives                    opportunities                                     starting point                  initiation
                                                        readiness



                      Identify:                                        Select:
                      Capture opportunities to                         Strategic planning to meet
                      transform the enterprise                         enterprise objectives
                                                                                                                                      21
                                                                            Understand   Identify      Assess       Select   Engage


                                                                               
Enterprise Architecture
$ROI                                                                             EA Transformation
                                             Transformed
                                             Enterprise                                                            Applications #
                                                       5 years

                                                               Release #4
                Start of EA                               4 years                                                        Legacy Enterprise
              Transformation                                   Release #3

                                                     3 years                            Hundreds Apps,
                                                                                        (Enterprise)
                                                         Release #2
            Enterprise
                                           2 years                                          Release #6             4 years
            Threshold                                                       Release #5                                          The Point of Suffocating

                                                          PP                                        Release #7
                                                                    Release #4           3 years
         Tens Apps.                                                                                              Release #8
         (Company)
                                                                            2 years
                              Release #3   POC                                                                        5 years
                                                               1 year
       Release #1
                         Release #2
                                                                                      Spaghetti
                                                                                      Architecture
                                                                                                                                       $TCO                22
Enterprise Architecture


               Do You Have
               Any Questions?
              We would be happy to help.



                                           23

TechBlue / Dux Diligens webinar - Business Value Analysis - Enterprise Architecture

  • 1.
  • 2.
    About the presenters Claye Greene Javier Rincón Managing Director Director - España TechBlue, Inc. Dux Diligens, Inc. 1940 Duke Street Santiago Grisolia 2, 163 Suite 200 PTM / Parque Cientifco de Madrid Alexandria, VA 22314 28760 Tres Cantos, Madrid, España T: +1.412.255.3799 T: +34.918.064.442 E: clayegreene@techblue.com E: javier.rincon@duxdiligens.com 2
  • 3.
  • 4.
    Enterprise Architecture Strategic business value Optimizer Transformative Innovative • Well run IT shop • Partnered goals with the • New markets, products and business services • Understood technology enablers • Value management • Business first organization 3 2 1 4
  • 5.
    Enterprise Architecture Increase integration across value-webs, infrastructures, multi-role / multi-partner enterprises • emphasis on overall effectiveness rather than single-point ‘efficiency’ • increase overall agility, adaptability, responsiveness, resilience, management of opportunity / risk • increase synergies between processes and partners • increase overall engagement in innovation, productivity, quality fourth wave: EA = whole-of-enterprise architecture (WEA) third wave: VALOR EA = EWITA + Business Architecture (EITA+EBA) second wave: Increase enterprise agility and alignment with business strategy EA = Enterprise-Wide IT Architecture (EWITA) • enable changes in business strategy with quick-response changes in enabling processes and technology solutions • inform strategy more effectively with strategic paths to identify and first wave: integrate technology-enabled opportunities (and threats) EA = IT technical architecture (TA ) Reduce complexity and cost of IT systems • increased convergence consolidates purchasing, lowers training costs, etc 5 TIEMPO 1990 2000 2010 2020
  • 6.
  • 7.
    Enterprise Architecture Business Drivers for Enterprise Architecture Manage Improve operational costs competitiveness Increase Improve profitability collaboration 1 3 $ 2 Leverage new Regulation compliancy technology Improved resource Mergers & Acquisitions utilization 7
  • 8.
    Enterprise Architecture Benefits of Enterprise Architecture Alignment with corporate strategy Improved change visibility Improved quality of work Reduced integration complexity output Consolidated systems and Improved business flexibility applications Reduced time to market Increased IT efficiency Better asset utilization Collaborative business unit interaction 8
  • 9.
    Enterprise Architecture The core of effective business transformation Effectiveness Efficiency Improving the effectiveness of Accelerating enterprise the enterprise across systems efficiency through and organization streamlined processes and strategies Agility Durability Enhancing the agility of the Increasing enterprise enterprise to better respond to durability to function in opportunities and threats dynamic operating environments 9
  • 10.
    Enterprise Architecture Thepath to Enterprise Architecture can be daunting AGATE RM-ODP EABOK MODAF DNDAF GOD NAF ARCON TRAK Praxeme ? IDEAS DoDAF SABSA TOGAF MEGAF Dragon1 Framework? Expectations? Governance? Methodology? Starting point? Management? Objectives? Opportunities? Coordination? 10 ROI? Roadmap? Necessity?
  • 11.
    Enterprise Architecture Thepath to Enterprise Architecture can be daunting Challengers Leaders IBM Mega alfabet Troux OpenText Casewise Software AG Ability to execute BiZZdesign QualiWare SAP-Sybase Atoll Technologies Avolution iteratec Future Tech Systems Sparx Systems Niche players Visionaries 11 Completeness of vision Source: Gartner Magic Quadrant for Enterprise Architecture Tools 2012
  • 12.
    Enterprise Architecture The path to Enterprise Architecture can be daunting Common bad Enterprise Architecture practices Mitigation strategy Opp Risk Proactive collaboration across Lack of integration with Enterprise Architect strategic planning units  Allow for framework Rigid adherence to Enterprise Architecture frameworks customization  Too much standardization “Just enough” standards  Analysis paralysis Follow strong EA methodology  Incorporate business Insufficient business focus objectives  Ineffective collaboration Engage effective leadership  Lack of open communication Improve asset accessibility  Develop feedback No effective feedback channels communication channels  Refocus EA as an enterprise Too much technology influence objective, not technology  Dominant technology skills and talent Diversify EA staff  Employ formal tools later in Tools driving the Enterprise Architecture the process  Documenting current state is Too much focus on current state not Enterprise Architecture  Enterprise Architecture is an 12 Premature or incomplete initiative conclusion adoption, not a project  * Based on Gartner research
  • 13.
  • 14.
    Enterprise Architecture TechBlue Business Value Analysis Business Value Analysis process Understand: Assess: Engage: Capture target operating Closing gaps to effective Initiative launch states for the enterprise transformation Understand Identify Assess Select Engage S.M.A.R.T. business Transformation Maximum value Transformation Transformation objectives opportunities starting point initiation readiness Identify: Select: Capture opportunities to Strategic planning to meet transform the enterprise enterprise objectives 14
  • 15.
  • 16.
    Enterprise Architecture Understanding enterprise objectives Business Strategies, documents and diagrams that describe the business structure Data Policies and standards governing which data is collected, and how it is stored, arranged and integrated within the enterprise. Organization Focuses are engaging the right people, in the right Technology place, at the right time. Availability, scalability and reliability of technology assets including computer systems and telephony infrastructure. Application Ensures enterprise applications are scalable, reliable, available and manageable 16 Understand Identify Assess Select Engage 
  • 17.
    Enterprise Architecture Understanding enterprise objectives Specific Measurable Attainable Realistic Time-bound Objectives have to A goal achievement It should be The objective The goal has to be specific and should be attractive for the needs to be set within a time positively measurable project team to achievable in a frame described reach the goal realistic way 17 Understand Identify Assess Select Engage 
  • 18.
    Enterprise Architecture Commonbusiness objectives Business Data  Increase business agility  Improve data value  Expand competitiveness  Extend data accessibility  Speed time to market for  Increase data security across new products and services the enterprise Application Technology  Enhance user productivity  Improve system availability  Reduce capability rollout  Decrease employee lost time  Increase usability of key  Improved collaboration application assets across business units 18 Understand Identify Assess Select Engage 
  • 19.
    Enterprise Architecture Case study Business challenge Customer organization initiated a program to become more effective at processing financial transactions, and improving the overall performance of the business units within the enterprise. Historically, each corresponding business unit applied independent decisions to prioritize high value transactions, however without shared information between them, their efforts were often uncooperative, duplicated, and resulted in strategic decisions that benefited each individual group rather than the enterprise. Details Approach Focus areas Outcomes • TechBlue proposed an Enterprise • The TechBlue BVA highlighted key • The BVA established an EA adoption Architecture Business Value Analysis mission objectives across each roadmap to significantly improve key to lay the foundation for effective business unit, and determined performance indicators. transformation. plausible approaches for closing the • Development of EA best practices gaps and measuring key performance • Key goals of the BVA were to better and governance for effective indicators. align business objectives with adoption. enterprise mission, and streamline • Key identified transformation • Improved support for future financial with financial transaction business opportunities were to improve data program rollouts, increasing business processes to improve performance. availability, and centralize key agility, flexibility and ability to analytical decision-making that each respond to market opportunities. group would leverage. 19 Understand Identify Assess Select Engage 
  • 20.
    Enterprise Architecture Leveraging enterprise objectives Objective Enhance collaboration Gaps: Business, Technology, Data Objective Increase agility Gaps: Technology, Data Objective Speed time to market Gaps: Business, Application 20 Understand Identify Assess Select Engage 
  • 21.
    Enterprise Architecture Identifying transformation opportunities Business Value Analysis process Understand: Assess: Engage: Capture target operating Closing gaps to effective Initiative launch states for the enterprise transformation Understand Identify Assess Select Engage S.M.A.R.T. business Transformation Maximum value Transformation Transformation objectives opportunities starting point initiation readiness Identify: Select: Capture opportunities to Strategic planning to meet transform the enterprise enterprise objectives 21 Understand Identify Assess Select Engage 
  • 22.
    Enterprise Architecture $ROI EA Transformation Transformed Enterprise Applications # 5 years Release #4 Start of EA 4 years Legacy Enterprise Transformation Release #3 3 years Hundreds Apps, (Enterprise) Release #2 Enterprise 2 years Release #6 4 years Threshold Release #5 The Point of Suffocating PP Release #7 Release #4 3 years Tens Apps. Release #8 (Company) 2 years Release #3 POC 5 years 1 year Release #1 Release #2 Spaghetti Architecture $TCO 22
  • 23.
    Enterprise Architecture Do You Have Any Questions? We would be happy to help. 23