Professional Documents
Culture Documents
Continuation (Lesson 1)
Continuation (Lesson 1)
Benefits of Enterprise
Architecture
Objective
2
Agenda
• Enterprise Architecture
• Issues in IT
• Why Enterprise Architecture
• Enterprise Architecture Measurement Framework
• Enterprise Architecture Value Measurement Programme
3
Basis for Enterprise Architecture
• IT systems are:
– Unmanageably complex and costly to maintain
– Hindering the organisation's ability to respond to business and economic changing
environment
– Not integrated
• Mission-critical information consistently out-of-date and/or actually incorrect
• A culture of distrust between the business and technology functions of the
organisation
• Unmanaged complexity in IT landscape leads to greater cost and less
flexibility
– Issues include lack of standards, redundant applications, multiple platforms, and
inconsistent data
– Enterprise architecture defines a set of tools and methods to address this
complexity
– While benefits of Enterprise Architecture are generally understood, measuring value
has been a challenge
• No easy answer but Enterprise Architecture approach is really worth considering
as a means of addressing these issues systematically
4
Enterprise Architecture Is/Does …
5
Scope and Elements of Enterprise Architecture
Enterprise Architecture
Business
Architecture
Information
Architecture
Software Architecture
Network and Communications Architecture
Storage Architecture
6
Key Messages Relating to Enterprise Architecture
8
Business View of IT
9
Causes of Business View of IT
Globalisation
Business and
Technology Transparency
Changes
Information
Technology
Service
Regulation
Focus
Challenging
Consolidation Economic
Circumstances
11
Business Pressures are Driving Business and IT Change
• Globalisation
– Customers, partners, suppliers and greater competition
– Connectedness driving value chains
• Transparency
– Industry regulations, consumer pressure and competition driving openness
• Service Focus
– Differentiation and shareholder value increasingly derived from service experience
• Challenging Economic Circumstances
– Need to cut costs and demonstrate real savings
– Justify technology investments
• Consolidation
− Mergers, acquisitions, takeovers of failing companies
• Regulation
– Increased regulation and governance - business is turning to IT to help and IT struggling to respond
in many cases
• Business and Technology Changes
– IT becoming commoditised - growth of standards-based technology means that proprietary
solutions provide less differentiation
– Speed of technology change
– Outsourcing where the right outsourcing decisions require an understanding of how systems
contribute to the business
12
Why Enterprise Architecture
14
Enterprise Architecture and Strategy
• Provides the fundamental technology and process structure for an IT strategy
• Provides a strategic context for the evolution of enterprise IT systems in response to the
constantly changing needs of the business environment
• Allows individual business units to innovate safely in their pursuit of competitive advantage
within the context of an integrated IT strategy
• Enterprise Architecture is designed to ensure alignment between the business and IT
strategies, operating model, guiding principles, and the software development projects and
service delivery
• By taking an enterprise-wide, perspective across all the business services, business units,
business processes, information, applications and technology, Enterprise Architecture
ensures the enterprise goals and objectives are addressed as a whole way across all the
system acquisition/application development projects and their deployment into production
• Organisations use a business strategy driven architecture approach that focuses on
translating the key components of the business strategy into a future state vision and an
architecture road map they can implement
• Enterprise architecture is integrated with other strategic planning disciplines, such as
programme/project and application portfolio and management
• Enterprise Architecture ensures that the long-term vision of the business is preserved as
the enterprise builds new business capabilities and improves on old ones
15
Why Manage Enterprise Architecture?
Duplication in
Unmanaged Resources to
Complexity in IT Increased Cost Develop, Operate
Landscape and Maintain
Business Systems
Delays in Complexity
Delivering Causes
Changes Difficulties and
Uncertainties
… Thus
Negatively Longer Design,
Impacting on Build, Test and
Business Delivery Time
Performance …
16
Why Manage Enterprise Architecture?
… To Address This
Complexity …
Provides a Set of
Tools and Methods
Provides…
Need to Measure
But Effectiveness of
Enterprise Enterprise
Architecture Architecture In
Order to Maximise
Business Value
17
Value of Enterprise Architecture
Appropriate
and Effective
Enterprise … Promotes
Architecture Actions and
Decisions That …
Architecture
Vision
Architecture
Change Business
Management Architecture
Data
Architecture
Information
Implementation Requirements Systems
Governance Management Architecture
Solutions and
Application
Architecture
Migration Technology
Planning Architecture
Opportunities
and Solutions
19
Key Elements/Subsets of Enterprise Architecture
20
Issues in Key Elements/Subsets of Enterprise
Architecture
• High variability and lack of standardisation across
Business and business units (such as ERP templates), driven by
Business Process changes in business strategy, governance, organisation
Architecture and process
• Inconsistent data definitions, multiple databases,
Data and releases and configurations which result in duplication
Information of licenses, duplicate and inconsistent information,
Architecture complexity in testing
• Multiple vendors, multiple instances and versions
Solutions and which add complexity in procurement, development
Applications and release management, resulting in higher costs and
Architecture longer time to market
• Multiple operating environments, multiple hardware
Technology and vendors and types, leading to higher maintenance and
Infrastructure personnel costs, greater instability and time-to-fix
Architecture
21
Benefits of Enterprise Architecture
24
Justifying Investment in Enterprise Architecture
Investment in
Enterprise
Architecture
… Involves
Challenges …
Impact of Different
Longer Term Reasons for Investment in Investment
Payback than Technical Enterprise Approaches
Other IT Decisions Difficult Architecture Needed Across
Investments to Communicate Difficult to Enterprise
Measure Architecture
25
Risks Inherent Investment in Enterprise Architecture
“Goldilocks” Zone
26
Enterprise Architecture and Enterprise Architecture
Management
Enterprise Architecture
Enterprise Architecture
Management
27
Relationship Between EA Implementation and
Operation Components
Function
Develops
EA Enterprise
Enterprise Architecture
Architecture Function/
Capability
Enterprise
Enterprise
Architecture
Architecture
Implementation
Management
and Operation
28
Outcomes of Effective Enterprise Architecture
Implementation and Operation
• Specification application architecture requirements
• Definition of architecture methodology
• Standardisation of information elements shared between
systems
• Modeling of information relationships and lifecycles
• Deployment integration infrastructure
• Standardisation of hardware and core software platforms
• Building of reusable application components
29
Enterprise Architecture Linked to Overall Business
Strategy
Business Business
Processes Systems
Business
Business Business Enterprise Solution Service
Operational
Strategy Objectives Architecture Delivery Delivery
Model
30
Enterprise, Domain and Project Architectures
Overall
Business Enabling IT
• Enterprise Architecture
Strategy and
Objectives
Projects defines and manages
overall organisation
architecture
Individual
Business Enabling IT
• Domain Architecture(s)
Unit Projects are subsets of Enterprise
Enterprise Objectives
Architecture Architecture to enable
individual business
unit/domain objectives
and targets to be met
Domain
Architecture • Project Architecture(s)
enable project level
Project
objectives to be met
Architecture
31
Enterprise Architecture Capability
32
Subsets of Overall Enterprise Architecture
Business and
Business Process
Architecture
Application
And Solution
Architecture
33
Layers of Enterprise Architecture
Overall Enterprise Architecture Context, Security, Governance
34
Enterprise Architecture Management
35
Why Invest in Enterprise Architecture
Increased Success in
Reduced IT Costs
Solution Delivery
Reduced IT Costs
36
Why Invest in Enterprise Architecture
• Business cannot understand why relatively
straightforward business changes are costly, Solution Lifecycle Costs
risky and slow to implement
37
What Manage Enterprise Architecture Value?
38
Framework for Enterprise Architecture Management
39
Using Enterprise Architecture Management
Framework
• Define the scope and role of Enterprise Architecture
and its management within your organisation
• Understand your current capability maturity level
• Systematically develop and manage key capabilities for
effective and appropriate enterprise architecture
management that adds business value
• Evaluate and manage progress over time using a
consistent set of value-oriented metrics
40
Using the Enterprise Architecture Management
Framework
Systematically develop
and manage key
Evaluate and manage
capabilities for effective
progress over time using
and appropriate
a consistent set of value-
enterprise architecture
oriented metrics
management that adds
business value
41
Dimensions of Enterprise Architecture Management
Framework
Enterprise
Architecture
• Measure state of Practices
Enterprise Architecture
along three dimensions
– Practices
– Planning
– People
• Define facets of each Enterprise
dimension Architecture
Planning
• Measure each facet in
terms of:
– Associated processes and
their state of development
– Scope or extent within the Enterprise
organisation Architecture
Personnel
42
Measurement of Value of Enterprise Architecture
43
Measurement of Value of Enterprise Architecture
44
Measurement Framework for Enterprise
Architecture Management
Enterprise Architecture
Management Framework
1.3 Architecture
Governance
45
Measurement Framework for Enterprise
Architecture Management
Architecture Framework of standards, templates and specifications for organising
Framework and presenting business and technical architecture components
Architecture Methodology for defining, developing and maintaining architecture
Enterprise Processes components
Architecture
Practices Architecture Principles, decision rights, rules and methods to drive architecture
Governance development and alignment in the organisation
Architecture Value Defining, measuring and communicating the value and impact of
architecture to the business
Strategic Planning Using architecture principles and blueprints to align business needs
Enterprise with IT capabilities, define portfolio strategy and direction and allocate
Architecture resources
Planning Architecture Defining vision and roadmap for various IT domains by anticipating
Planning business needs and trends, and developing architecture components
Organisation Defining, planning, and managing roles, responsibilities and skills for
Structure and Skills architecture management
Enterprise
Architecture Communication
and Stakeholder Managing communication and expectations with business and IT
Management stakeholders interested in or influenced by architecture management
46
Measurement Framework for Enterprise
Architecture Management
• Measure in terms of
– Processes – those processes associated with Enterprise
Architecture Management and their state of development – how
well-defined and effective are the processes
– Reach - scope or extent of Enterprise Architecture Management
within the organisation – how widely used
47
Enterprise Architecture Management Assessment
Framework
Processes are
Optimised,
Flexible, Adaptable
and Lean
Processes are
Managed and
There is
Continuous
improvement
Enterprise
Processes are
Architecture Repeatable and
Processes Consistently Used
Across Teams and
Projects
Ad-Hoc Processes
Defined and Driven
by Individuals
1.3 Architecture
Governance
Processes Reach
Processes Reach
49
Complete Measurement Framework
Processes
Enterprise
• Three Architecture
Planning
dimensions x
two aspects Proc
Enterprise esse
Architecture s
Personnel
Reach Processes
Reach
Enterprise
Architecture
Reach Practices
50
Enterprise Architecture Management Maturity
Level 5
Level 1 Level 2 Level 3 Level 4
Prioritization of project Architecture a key Business / IT planning
Strategic Planning None Project-based portfolio based on input to joint enables efficiency, agility in
roadmap Business / IT planning extended enterprise
No roles, Formal technology Formalized roles and Clear professional Pro-active development
Organization Structure responsibilities roles within projects responsibilities career track with external input
and Skills
People Pro-active
Communication and Key stakeholders Regular consultation communication and Collaboration with
Project-based identified and informed with business feedback with extended enterprise
Stakeholder Management business
51
Assessing Current and Future Desired Architecture
Management Maturity
1 - Ad-Hoc 2-
Defined 3-
Architecture
Repeatable 4 - Managed 5 - Optimised
Framework
Architecture
Enterprise Processes
Architecture
Practices Architecture
Governance
Architecture
Value
Strategic
Enterprise Planning
Architecture
Planning Architecture
Planning
Organisation
Structure and
Enterprise Skills
Architecture
People Communication
and Stakeholder
Management
5.0
4.0
Level Organisation
Structure
Of and Skills Architecture Architecture
3.0 Processes Planning
Mat
Communication
urity and Stakeholder
Architecture Management
Value
2.0
Architecture
Governance Architecture Strategic
Framework Planning
1.0
1.0 2.0 3.0 4.0 5.0
Level of Importance
53
Benefits of Increasing Enterprise Architecture
Management Maturity
• Measuring the true impact of increasing Enterprise
Architecture Management maturity is hard to achieve
• IT architecture simplification can be one of the largest
contributors tor IT cost reduction (in the range of 5%-18%)
but it has a long lead time - up to 2 years
54
Outcomes of Effective Enterprise Architecture
Management
Modeling Information
Relationships and
Standardising Lifecycles
Information Elements Deploying Integration
Shared Between Systems Infrastructure
55
Impact of Effective Enterprise Architecture
Management Can Be Difficult to Quantify
Primary/ Immediate Secondary/ Medium- Tertiary/ Long-Term
Benefits Term Benefits Benefits
Lower integration costs (and Improved responsiveness to business
Rationalised application portfolio
corresponding project costs) needs
Directly Difficult to
Quantifiable Define Intangible
57
Measuring Quantitive and Qualitative Value from
Enterprise Architecture
Measures of Value
from Enterprise
Architecture
Maturity
Importance
59
Focussing on Areas of Low Maturity and High
Importance
• Use Enterprise Architecture measurement framework to
identify areas of greatest return on investment
60
Enterprise Architecture Value Measurement
Programme
Feedback on Measurement
Framework
Plan Enterprise
Define
Measure Analyse Architecture
Enterprise
Enterprise Enterprise Implementation Execute
Architecture
Architecture Architecture /Enhancement Programme
Measurement
Value Value Measures Programme of
Framework
Work
61
Summary
62