making enterprise architecture (ea) strategic

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Making Enterprise Architecture (EA) Strategic with Business and Information Architecture Sohel Aziz, Infosys Technologies

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Page 1: Making Enterprise Architecture (EA) Strategic

Making Enterprise Architecture (EA) Strategic with Business and Information Architecture

Sohel Aziz, Infosys Technologies

Page 2: Making Enterprise Architecture (EA) Strategic

2

Today, enterprises need to handle a variety of internal and external drivers...

Globalization of the market place– Emerging economies are

attractice markets, but they require operations in a variety of geographies, cultures and legislations

Increasing competition– Markets become more

transparent through information availability

Demand for Responsibility– Increasing regulation and

sensitivities of both capital markets and public opinion require better control

Enterprises are driven by macro-trends like...

Reduced vertical integration and global distribution of workforce

– Decomposition of the value chain also in services industries, e.g. financial services

– Networked value creation

Restructurings, Mergers & Acquisitions

– Leverage synergies– Get access to markets

Faster innovation cycles– Agility is a given to maintain margins

Standardization, automation and decomposition of the value chain

...and they react in many ways, for example...

Page 3: Making Enterprise Architecture (EA) Strategic

3

...to help organizations in this environment, EA has to expand its scope

• IT decisions made in business units

• Local optimization

• Specific local business processes

• Cost-effectiveness and reliability of overall IT landscape

• Consistency in execution

• End to end optimization of operating model

• Enterprise view of data and applications

• Modularized view of business functions and supporting operational infrastructure

• Agility through recomposability

[Source: Ross/Weill/Robertson 2006]

The Enterprise Architecture is the organizing logic for businessprocesses and IT infrastructure, reflecting the integration and

standardization requirements of the company‘s operating model.

BusinessSilos

StandardTechnology

OptimizedCore

BusinessModularity

Page 4: Making Enterprise Architecture (EA) Strategic

4

Depending on architectural maturity, different aspects of top and bottom line can be addressed

EA continues to have more of a "cost

focus"Operational

Benefit

OperationalOpportunities

IT Opportunities

Bus

ines

s Tr

ansf

orm

atio

n

IT Cost

Operational Cost

Operational Risk

IT Risk

Business-IT Alignm

entS

tandardization

DecreaseIncrease

Page 5: Making Enterprise Architecture (EA) Strategic

5

Technology standards are still main deliverables – but information and business are becoming more important

Page 6: Making Enterprise Architecture (EA) Strategic

6

EA is aiming at enabling business agility...

Page 7: Making Enterprise Architecture (EA) Strategic

7

Business Architecture is increasing in importance –although the technical focus is still strong.

Page 8: Making Enterprise Architecture (EA) Strategic

8

Integration and information integrity are core objectives, driven by focus on SOA and Data Architecture

Page 9: Making Enterprise Architecture (EA) Strategic

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EA is becoming strategic at the corporate level...

Enterprise Architecture plays an active role in strategic business planning

In more and more cases, it is reporting to non-IT functions such as Corporate Strategy

It is an important tool for IT governance

Page 10: Making Enterprise Architecture (EA) Strategic

10

But, implementation is still a weak point...

Communication continues to be a major effectiveness hindrance

Adherence to EA continues to have ‚no bite‘

44% of EA teams do not collect metrics

41% do not have a full-time architecture team

Page 11: Making Enterprise Architecture (EA) Strategic

11

EA is maturing across a variety of dimensions

StandardizationIT Organization

DocumentationDefinition

IT Architecture and Standards

Generic

Business-IT Alignment

ArchitectureDevelopment

Business Reference Models

Industry Specific

Objective

Development

Business Transformation

Architecture Governance

Organizational Architecture

Cross-Industry

Deliverables

Scope

Specialization

Page 12: Making Enterprise Architecture (EA) Strategic

12

The "Architecture of the Enterprise" is outside the frame of IT

Sup

port

Func

tions

Fina

nce

HR

Lega

l

Pro

cure

men

t

Logi

stic

s

Faci

litie

s

Research & Development Production Marketing

IT

Sales

Cor

pora

te

Val

ue

Cha

inMarket

CorporateBoundary

Ecosystem

Passenger Vehicles

Trucks

USEurope

APAC

Authorities Suppliers

Page 13: Making Enterprise Architecture (EA) Strategic

13

IT should not assume a complete picture – it only sees the projection of "IT elements" of EA

Sup

port

Func

tions

Fina

nce

HR

Lega

l

Pro

cure

men

t

Logi

stic

s

Faci

litie

s

Research & Development Production

Cor

pora

te

Val

ue

Cha

inMarket

CorporateBoundary

Ecosystem

Passenger Vehicles

Trucks

Marketing SalesCampaign

USEurope

APAC

IT

SalesCustomer

Authorities Suppliers

Page 14: Making Enterprise Architecture (EA) Strategic

14

Furthermore, EA needs to be able to drive multiple, interrelated streams of change across multiple domains

Business Architecture("How am I

going to create

value and competitive

advantage in the future?")

Product Development

Process Optimization

Production Facilities Opt.

Production Transformation

….HR Transformation

Reporting Structure

Role Definitions

Incentives Structure

People Devlpmnt

Information Technology Transformation

Information Application Technology

Page 15: Making Enterprise Architecture (EA) Strategic

15

EA, as a discipline, will need to face a broader set of questions• What is the scope of "Architecture" in "Enterprise Architecture" really mean? 3

of 4 architectures in most EA activities are IT related the one or the other way.• What does the term “Business Architecture" mean? Three sets of models for

IT, one for the whole rest of the organization? Is that right?• Creating organizational capabilities involves many integration of people,

process information and technology. Can that be driven by IT?• The structured, architectural approach has worked well within the realm of IT.

How can it be applied to other areas or the whole of the enterprise? Can we "architect" an organization?

• Can Enterprise Architecture become a tool for transforming the organization? And should it be?

• What will the role of IT be in the future?

Page 16: Making Enterprise Architecture (EA) Strategic

16

This implies changes to how we deliver EA

• It is not possible to enumerate all domains required to describe the various parts of architecture

– The framework must be flexible and extensible, while organizing the interfaces between the architectures

• Manage change of multiple architectures simultaneously– No linear order of activities leading to need for effective transformation

management• Issue driven approach of business consulting will need to be married with

structure, top-down approach of Enterprise Architecture– The link between strategy and execution will be key

• Focus on business process and information instead of application packages and technology, that will drive

– Service Oriented Composite Application Architecture– Dynamic, Pervasive Infrastructure

Page 17: Making Enterprise Architecture (EA) Strategic

17

Going forward, Enterprise Architects need to build business capabilities and increase architectural maturity• Enterprise Architects’ responsibilities are growing:

– More to do! Maintaining the technology architecture must be made easy on resources to be able to expand EA’s scope

• Architects need to build credibility throughout the organization– This needs to manifest in their impact and acceptance within the

organization (especially the business)– Measuring architectural maturity through a metrics program is best

• As Enterprise Architecture starts rearranging the elements of business, architecture teams need to understand the dynamics of a business

– by building skills among existing architecture teams– by attracting strategic thinkers from non-IT and corporate level

organizational units

Page 18: Making Enterprise Architecture (EA) Strategic

18

For More Information on Enterprise Architecture Visit

www.infosys.com/ea

Learn More About the Enterprise Architecture Survey 2007

www.infosys.com/ea‐survey

Page 19: Making Enterprise Architecture (EA) Strategic

Thank you

“The contents of this document are proprietary and confidential to Infosys Technologies Ltd. and may not be disclosed in whole or in part at any time, to any third party without the prior written consent of Infosys Technologies Ltd.”

“© 2008 Infosys Technologies Ltd. All rights reserved. Copyright in the whole and any part of this document belongs to Infosys Technologies Ltd. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole or in part, in any manner or form, or in any media, without the prior written consent of Infosys Technologies Ltd.”