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How to Articulate the Value of Enterprise Architecture
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Ever struggled with the question, What is the Value of Enterprise Architecture? In this facilitated conversation, Michael Fulton will share his perspective on Enterprise Architecture and the value it provides to the CIO, to IT, and to the business. Come ready to engage, because in the conversation we will discuss: •The EA 7-year itch •Several External Perspectives on EA Value •The CC&C perspective on a simplified approach to EA Value •Ensuring your perspective on EA Value is relevant for your stakeholders At the end of this conversation, you should walk away with: •A new perspective on the value of EA •Tips and tricks on how to articulate and quantify EA Value for your key stakeholders.
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How to Articulate the Value of Enterprise Architecture
- © CC and C Solutions. All Rights Reserved. 1© CC and C Solutions. All Rights Reserved. 1 An Interactive Discussion about the Value of Enterprise Architecture Michael Fulton President, Americas Division, CC and C Solutions London, 27 April 2016 mike@ccandcsolutions.com
- © CC and C Solutions. All Rights Reserved. 2© CC and C Solutions. All Rights Reserved. 2 Some of Our Clients Enterprise Architecture Start-up / Cloud / Big Data TOGAF and Other Training Who are CC and C Solutions? • A global Enterprise Architecture and IT Transformation consultancy, and a global leader in EA training. • Gold member of The Open Group and leaders in the IT4IT forum. • Our mission: to lead development and growth of Enterprise Architecture and IT Capability: o for the individual o for the organization o and for the industry
- © CC and C Solutions. All Rights Reserved. 3© CC and C Solutions. All Rights Reserved. 3 Why do we care about Value of EA? THAT WAS A QUESTION FOR YOU!
- © CC and C Solutions. All Rights Reserved. 4© CC and C Solutions. All Rights Reserved. 4 Why do we care about Value of EA? • Funding / Organizational Support • Engagement • 7ish year itch
- © CC and C Solutions. All Rights Reserved. 5© CC and C Solutions. All Rights Reserved. 5 Funding / Organizational Support
- © CC and C Solutions. All Rights Reserved. 6© CC and C Solutions. All Rights Reserved. 6 Engagement
- © CC and C Solutions. All Rights Reserved. 7© CC and C Solutions. All Rights Reserved. 7 7ish Year itch Source: http://www.smart421.com/enterprise-architecture/enterprise-architecture-succeeding-by-giving-up-regularly/
- © CC and C Solutions. All Rights Reserved. 8© CC and C Solutions. All Rights Reserved. 8 What is Value of EA? This is the interactive part of the discussion
- © CC and C Solutions. All Rights Reserved. 9© CC and C Solutions. All Rights Reserved. 9 Outside In
- © CC and C Solutions. All Rights Reserved. 10© CC and C Solutions. All Rights Reserved. 10 External Perspectives on Value of EA - Gartner Companies with a strong EA foundation deliver: Higher profitability Faster time to market More value from IT investments 25% lower IT costs 80% higher Sr. Mgr satisfaction Lower risk of mission-critical system failures Source: Harvard Business Press, copyright 2006
- © CC and C Solutions. All Rights Reserved. 11© CC and C Solutions. All Rights Reserved. 11 External Perspectives on Value of EA - Bernard Value of Enterprise Architecture is that it: enhances both top-down and bottom-up approaches to planning Top down by the holistic perspectives of the enterprise that EA provides Bottom up as EA coordinates what would otherwise be disparate and separate program- level planning activities brings together multiple perspectives of business and technology at various levels of the enterprise improves decision-making by providing comprehensive views of current capabilities and resources, by providing a set of plausible future operating scenarios that reveal needed changes in processes and resources improves communication throughout the enterprise by providing a regularly updated baseline of integrated information on strategy, business, and technology
- © CC and C Solutions. All Rights Reserved. 12© CC and C Solutions. All Rights Reserved. 12 External Perspectives on Value of EA – Booz & Company
- © CC and C Solutions. All Rights Reserved. 13© CC and C Solutions. All Rights Reserved. 13 External Perspectives on Value of EA – Cap Gemini
- © CC and C Solutions. All Rights Reserved. 14© CC and C Solutions. All Rights Reserved. 14 The Four Quadrants of Enterprise Architecture Value Increase Business Agility Reduce IT Cost Expand IT Reach Increase Project Success You can continuously adapt your business more quickly and with lower risk than your competition by changing your IT You can significantly improve your success with your investment in IT- enabled business projects You can deliver new IT solutions and manage your existing IT services at lower cost than your competition Reduce Cost Increase Value You can collaborate more effectively than your competition with your customers, suppliers and partners through your IT External Perspectives on Value of EA – Cap Gemini
- © CC and C Solutions. All Rights Reserved. 15© CC and C Solutions. All Rights Reserved. 15 External Perspectives on Value of EA – Booz & Company Source: http://toomastamm.com/resources/CAIS-2011.pdf
- © CC and C Solutions. All Rights Reserved. 16© CC and C Solutions. All Rights Reserved. 16 External Perspectives on Value of EA – HPE Better Faster Cheaper Safer Taken from April 25, 2016 Plenary How to Stop Talking Architecture and Start Talking Value using IT4IT By Tony Price and Eric Van Busschbach
- © CC and C Solutions. All Rights Reserved. 17© CC and C Solutions. All Rights Reserved. 17 What is value of EA?
- © CC and C Solutions. All Rights Reserved. 18© CC and C Solutions. All Rights Reserved. 18 What is Value? The CC&C Perspective
- © CC and C Solutions. All Rights Reserved. 19© CC and C Solutions. All Rights Reserved. 19 Benefits • Architect by design rather than by accident • Identify gaps in organizational capability • Agility through improved interoperability & reuse What is the Value of EA? The CC&C Perspective
- © CC and C Solutions. All Rights Reserved. 20© CC and C Solutions. All Rights Reserved. 20 Costs • Rationalized business processes and IT landscape • Proactive IT cost optimization through re- platforming • Enterprise perspective looking across project and organization silos eliminates rework What is the Value of EA? The CC&C Perspective
- © CC and C Solutions. All Rights Reserved. 21© CC and C Solutions. All Rights Reserved. 21 Risk Reduction • Improved alignment between strategy and execution • Improved alignment between business and IT • Increased awareness of legal & security risk impacts What is the Value of EA? The CC&C Perspective
- © CC and C Solutions. All Rights Reserved. 22© CC and C Solutions. All Rights Reserved. 22 • Big Picture Perspective • Proven transformation techniques • Perspective of externally what’s possible What is the Value of EA in a Digital World?
- © CC and C Solutions. All Rights Reserved. 23© CC and C Solutions. All Rights Reserved. 23
- © CC and C Solutions. All Rights Reserved. 24© CC and C Solutions. All Rights Reserved. 24 How do you talk about the Value of EA?
- © CC and C Solutions. All Rights Reserved. 25© CC and C Solutions. All Rights Reserved. 25 Enterprise Architecture Enterprise IT Architecture Enterprise Solution Architecture Solution Architecture • Top down organizational design starting with Business Model and Organization structure focused on Digital Transformation and design of IT Landscape in support • Enterprise level design of IT Landscape in context of Business Capabilities of Organization supporting Enterprise Transformation; Key focus on Application Portfolio Mgt and Technology Portfolio Mgt • Enterprise level IT design in context of major programs or initiatives • Detailed IT design in context of projects Evolution of EA in an Enterprise
- © CC and C Solutions. All Rights Reserved. 26© CC and C Solutions. All Rights Reserved. 26 Element Solution Architecture Enterprise Solution Architecture Enterprise IT Architecture Enterprise Architecture Value to Organization $ $$ $$$ $$$$ Impact Reactive impact on IT projects Reactive impact on IT initiatives and programs Proactive impact on IT Landscape in context of Business Proactive impact on Business Model of organization and resulting impact on IT Landscape Reporting Lines No central EA EA Reports within IT Org, but not to CIO EA Reports to CIO EA Reports to CxO on business side Engagement Engaged only in solutions, typically upon request. Architects commonly get pulled into either project management or detailed design. Success on previous projects has architects getting requested by the biggest and most important projects. Chief Architect is viewed as respected advisor by CIO. Architecture is looking forward, providing roadmaps and managing IT Landscape. EA team is working with C suite & Board of Directors to impact Business Strategy and Business model of company Internal Processes Minimal collaboration between architects. No sense of community among EA. EA is a valued role within the organization. Architects feel a sense of camaraderie and community. EA is driving reuse through robust management of data about the IT Landscape EA is driving models at the strategy level, aligning the organization to a top down view that permeates the entire organization EA Value Assessment
- © CC and C Solutions. All Rights Reserved. 27© CC and C Solutions. All Rights Reserved. 27 Roadblocks for Assessing Value of EA • Linking outputs to outcomes is not an easy exercise, and in many cases there are more than just EA outputs that would tie into an organization outcome • Establishing output to outcome links may require making changes to business processes for some organizations … and change can be difficult • There is no one size fits all as each organization has its specific needs that must be met and a unique environment to work within
- © CC and C Solutions. All Rights Reserved. 28© CC and C Solutions. All Rights Reserved. 28 What did you think?
- © CC and C Solutions. All Rights Reserved. 29© CC and C Solutions. All Rights Reserved. 29 Follow up with me at • mike@ccandcsolutions.com • https://www.linkedin.com/in/michaelfulton • http://www.ccandcsolutions.com • Twitter - @cccamericas • Skype - cincibuckeyenut
- © CC and C Solutions. All Rights Reserved. 30© CC and C Solutions. All Rights Reserved. 30 Thank You Michael Fulton mike@ccandcsolutions.com
Notas do Editor
- So now that we know what EA is, we really need to understand why we care about the value of EA. Of course, you wouldn’t be here today if you at least didn’t care somewhat about the value of EA. But more specifically, there are 3 key reasons we care. First is that in order to procure organizational funding and support, we need to be able to develop a business case and for that, we need to talk to value. If we cannot articulate a value to our CIO, he isn’t going to fund or support us and that is going to make our work more difficult if not impossible. Second, in order for the rest of the organization to be willing to engage with us, they need to understand the value we can provide to them. If we can’t help them do their jobs better, they are just going to go right around us. Finally, we care about the value of EA because of the 7ish year itch. I will explain that in the next few slides.
- So now that we know what EA is, we really need to understand why we care about the value of EA. Of course, you wouldn’t be here today if you at least didn’t care somewhat about the value of EA. But more specifically, there are 3 key reasons we care. First is that in order to procure organizational funding and support, we need to be able to develop a business case and for that, we need to talk to value. If we cannot articulate a value to our CIO, he isn’t going to fund or support us and that is going to make our work more difficult if not impossible. Second, in order for the rest of the organization to be willing to engage with us, they need to understand the value we can provide to them. If we can’t help them do their jobs better, they are just going to go right around us. Finally, we care about the value of EA because of the 7ish year itch. I will explain that in the next few slides.
- There can be many reasons for this cyclical behaviour… - Often it is due to changes in (and therefore lack of) sponsorship, which inevitably reduces funding – sometimes triggered by re-organisations and the ensuing settling down period. A common example is the CIO transition, which historically happens every 3-5 years. - External economic cycles - Most businesses have some internally generated cycles, e.g. budgeting, strategy changes. In fact, sometimes the management of an organisation will generate or at least contribute to their own business cycles, e.g. by attending to the wrong things, complacency, poor structure, lags in reporting/action/effect etc - Time span of control is the notion that the effect of your decisions appear at an indeterminate point after your decision. If the time taken for the effect of your decisions to be noticed or measured is longer than your tenure, you will not get the credit for it. Long term projects in short term cycles will fail, unless your sponsor has a long term tenure.
- There can be many reasons for this cyclical behaviour… - Often it is due to changes in (and therefore lack of) sponsorship, which inevitably reduces funding – sometimes triggered by re-organisations and the ensuing settling down period. A common example is the CIO transition, which historically happens every 3-5 years. - External economic cycles - Most businesses have some internally generated cycles, e.g. budgeting, strategy changes. In fact, sometimes the management of an organisation will generate or at least contribute to their own business cycles, e.g. by attending to the wrong things, complacency, poor structure, lags in reporting/action/effect etc - Time span of control is the notion that the effect of your decisions appear at an indeterminate point after your decision. If the time taken for the effect of your decisions to be noticed or measured is longer than your tenure, you will not get the credit for it. Long term projects in short term cycles will fail, unless your sponsor has a long term tenure.
- There can be many reasons for this cyclical behaviour… - Often it is due to changes in (and therefore lack of) sponsorship, which inevitably reduces funding – sometimes triggered by re-organisations and the ensuing settling down period. A common example is the CIO transition, which historically happens every 3-5 years. - External economic cycles - Most businesses have some internally generated cycles, e.g. budgeting, strategy changes. In fact, sometimes the management of an organisation will generate or at least contribute to their own business cycles, e.g. by attending to the wrong things, complacency, poor structure, lags in reporting/action/effect etc - Time span of control is the notion that the effect of your decisions appear at an indeterminate point after your decision. If the time taken for the effect of your decisions to be noticed or measured is longer than your tenure, you will not get the credit for it. Long term projects in short term cycles will fail, unless your sponsor has a long term tenure.
- So now that we know what EA is, we really need to understand why we care about the value of EA. Of course, you wouldn’t be here today if you at least didn’t care somewhat about the value of EA. But more specifically, there are 3 key reasons we care. First is that in order to procure organizational funding and support, we need to be able to develop a business case and for that, we need to talk to value. If we cannot articulate a value to our CIO, he isn’t going to fund or support us and that is going to make our work more difficult if not impossible. Second, in order for the rest of the organization to be willing to engage with us, they need to understand the value we can provide to them. If we can’t help them do their jobs better, they are just going to go right around us. Finally, we care about the value of EA because of the 7ish year itch. I will explain that in the next few slides.
- So now we know why we care about the value of EA, we need to make sure we are all on the same page regarding what value is. To me, in its simplest form, value is the relationship between benefits (new capability, speed, agility, revenue generation), cost ($$, productivity, opportunity costs, costs of delay) and risk. We will return to this idea shortly.
- So now we know why we care about the value of EA and we have seen an external perspective, here is my view. To me, in its simplest form, value is the relationship between benefits (new capability, speed, agility, revenue generation), cost ($$, productivity, opportunity costs, costs of delay) and risk. We will return to this idea shortly.
- I want to close with a quick conversation about the value of EA in a digital world. This is important because there are still some very UNIQUE value add that we ring to the table. The EA role sees the big picture. That role is key to delivering a successful digital transformation. The EA role brings proven transformation techniques. We have been doing this for years on internal processes, we can use these techniques on customer facing processes as well. And the EA role brings a perspective of externally what’s possible. These three things are critical value adds that no one else in the organization can bring to the table. Digital transformation needs us.
- So now that we know what EA is, we really need to understand why we care about the value of EA. Of course, you wouldn’t be here today if you at least didn’t care somewhat about the value of EA. But more specifically, there are 3 key reasons we care. First is that in order to procure organizational funding and support, we need to be able to develop a business case and for that, we need to talk to value. If we cannot articulate a value to our CIO, he isn’t going to fund or support us and that is going to make our work more difficult if not impossible. Second, in order for the rest of the organization to be willing to engage with us, they need to understand the value we can provide to them. If we can’t help them do their jobs better, they are just going to go right around us. Finally, we care about the value of EA because of the 7ish year itch. I will explain that in the next few slides.
- Now, on the last slide, I talked about how EA includes City planning for IT. This is true when you think about the evolution of EA within an enterprise. In the first two stages of this CC&C Model of EA Maturity, you will find that kind of work very prevalent. Solution Architecture & Enterprise Solution Architecture are very much about setting up guardrails and partnering with project teams to develop designs that will fit with the strategies of the company. But when we evolve into the last two stages, Enterprise IT Architecture and Enterprise Architecture, now we are driving transformations beyond individual projects. Now we are transforming our IT landscape, the processes of our organization and at the highest levels of maturity, transforming the fundamental business model of our company. Special note: When people talk about business architecture as something standalone and different from EA, they are working in this space between EITA and EA on this model. This issue is that typically, they are ONLY working in that space and ignoring the rest. A mature and evolved EA practice considers all the pieces, not just one. We don’t need less EA, we need more in organizations. And we need more mature, more evolved Enterprise Architects to drive the transformations that our companies need. We as architects need to be doing more proactive EA and EITA, while giving our projects more freedom WITHIN our strategic plans in the SA and ESA work we do.
- To move from SA to ESA, institute portfolio reviews and proactive governance To move from ESA to EITA, institute Roadmaps and ITPM To move from EITA to EA, utilize Business Capability Planning, Business Transformation programs and Business Model canvas
- Feel free to reach out to me if you have questions on this webinar or need any help restarting EA in support of your digital transformation.
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