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Making Enterprise Architecture (EA) Strategic

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Making Enterprise Architecture (EA) Strategic

  1. 1. Making Enterprise Architecture (EA) Strategic with Business and Information Architecture Sohel Aziz, Infosys Technologies
  2. 2. Today, enterprises need to handle a variety of internal and external drivers... Enterprises are driven by ...and they react in many macro-trends like... ways, for example... Globalization of the market place Reduced vertical integration and – Emerging economies are global distribution of workforce attractice markets, but they – Decomposition of the value chain require operations in a variety of also in services industries, e.g. geographies, cultures and financial services legislations – Networked value creation Increasing competition Restructurings, Mergers & – Markets become more Acquisitions transparent through information – Leverage synergies availability – Get access to markets Demand for Responsibility Faster innovation cycles – Increasing regulation and – Agility is a given to maintain margins sensitivities of both capital markets and public opinion Standardization, automation and require better control decomposition of the value chain 2
  3. 3. ...to help organizations in this environment, EA has to expand its scope Business Standard Optimized Business Silos Technology Core Modularity • IT decisions • Cost- • Consistency in • Modularized made in effectiveness execution view of business business units and reliability • End to end functions and • Local of overall IT optimization of supporting optimization landscape operating model operational • Specific local • Enterprise view infrastructure business of data and • Agility through processes applications recomposability The Enterprise Architecture is the organizing logic for business processes and IT infrastructure, reflecting the integration and standardization requirements of the company‘s operating model. [Source: Ross/Weill/Robertson 2006] 3
  4. 4. Depending on architectural maturity, different aspects of top and bottom line can be addressed Business-IT Alignment IT Opportunities Operational Risk Operational EA continues to Transformation Opportunities have more Business Operational Cost Standardization of a "cost focus" Operational Benefit IT Risk IT Cost Increase Decrease 4
  5. 5. Technology standards are still main deliverables – but information and business are becoming more important 5
  6. 6. EA is aiming at enabling business agility... 6
  7. 7. Business Architecture is increasing in importance – although the technical focus is still strong. 7
  8. 8. Integration and information integrity are core objectives, driven by focus on SOA and Data Architecture 8
  9. 9. EA is becoming strategic at the corporate level... Enterprise In more and more It is an important Architecture plays cases, it is reporting tool for IT an active role in to non-IT functions governance strategic business such as Corporate planning Strategy 9
  10. 10. But, implementation is still a weak point... Communication Adherence to 44% of EA 41% do not continues to be a EA continues teams do not have a full- major to have ‚no collect metrics time effectiveness bite‘ architecture hindrance team 10
  11. 11. EA is maturing across a variety of dimensions Standardization Business-IT Business Objective IT Organization Alignment Transformation Development IT Architecture Business Organizational Deliverables and Standards Reference Models Architecture Documentation Architecture Architecture Scope Definition Development Governance Specialization Generic Industry Specific Cross-Industry 11
  12. 12. The "Architecture of the Enterprise" is outside the frame of IT Ecosystem Market Trucks APAC Corporate Europe Boundary Passenger Vehicles US Corporat e Value Chain Research & Production Marketing Sales Development Procurement Functions Facilities Logistics Support Finance Legal HR IT Authorities Suppliers 12
  13. 13. IT should not assume a complete picture – it only sees the projection of "IT elements" of EA Ecosystem Market Trucks APAC Corporate Europe Boundary Passenger Vehicles US Corporat e Value Chain Research & Custo Production Camp Marketing Sales mer Sales Development aign Procurement Functions Facilities Logistics Support Finance Legal HR IT Authorities Suppliers 13
  14. 14. Furthermore, EA needs to be able to drive multiple, interrelated streams of change across multiple domains Production Transformation Product Process Production Development Optimization Facilities Opt. Business Architecture ("How am I …. going to HR Transformation create Reporting Role Incentives People value and Structure Definitions Structure Devlpmnt competitive advantage in the future?") Information Technology Transformation Information Application Technology 14
  15. 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? 15
  16. 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 16
  17. 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 17
  18. 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 18
  19. 19. 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.”