Benefits
- 1. Enterprise Architecture Benefits ISYS90043_2019_SM2 Enterprise Application & Architectures Svetlana Ryazanova 1064326
- 2. outcomes that contribute directly to organisational performance, including lower costs, increased revenue, competitive differentiation, more accurate decisions, strategic agility, etc. Organisational Benefits
- 3. Enterprise Architecture is the definition and representation of a high-level view of an enterprise‘s business processes and IT systems, their interrelationships, and the extent to which these processes and systems are shared by different parts of the enterprise. “definition” refers to the process of EA planning “representation” to the direct and tangible outputs of the planning process
- 4. Benefits: direct impact from EA subsequent impact from EA reflected in the tangible outcomes reflected in the intangible outcomes outcomes from the process (planning) outcomes from the documentation (plans) both planning process and its outputs is an integral part of EA
- 5. Knowledge about the organisation and its goals Enterprise Architecture Knowledge about the organisation’s resources Better understanding of the business processes Reduced CYCLE times FASTER DECISIONS Better-informed decisions Better understanding of current IT systems Better communication and understanding between stakeholders Improved (IT) performance LOWER COSTS
- 6. The key purpose of EA is to guide the building of an improved operating platform, i.e. IT systems and digitised business processes. BUT! Every organisation has processes and systems, but not all organisations engage in EA planning
- 7. EA-guided operating platform higher level of standardisation and integration improved information flows reduced IT costs reliable systems and data increased reuse higher responsiveness better decisions service improvements higher employee moral reduced IT costs successful outsourcing and other improvements reduced IT costs reduced time-to- market focus on core activities improved operational excellence customer intimacy product leadership strategic agility
- 8. How does EA help improve the operation platform and could these improvements be achieved without the use of EA? AND If EA does have a unique role in enabling improvements to the operating platform, are there factors that affect moving the plans to execution?
- 9. suggests that it is through the impact on four ENABLERS - Organisational Alignment, Information Availability, Resource Portfolio Optimisation, and Resource Complementarity - that EA leads to organisational BENEFITS. EA Benefits Model (EABM)
- 10. EA Benefits Model (EABM)
- 11. a high-quality EA is one that provides a vision for the future operating platform that is well-aligned with the organisation‘s strategic goals, complemented by an optimal roadmap for moving towards that vision, based on an accurate understanding of the current operating platform. Enterprise Architecture Quality
- 12. How to assess EA quality? What are the main challenges of direct EA quality measuring? Give several examples of EA planning quality indicators.
- 13. the extent to which an organisation’s subunits share a common understanding of its strategic goals, and contribute towards achieving these goals. Organisational Alignment
- 14. EA planning identification of interdependences identification of stakeholders that may be effected by positive impact on collaboration and collective decision-making Improvements in operating platform better total return on investment reduction of incoherent or duplicated efforts achievement of strategic goals with minimal overhead Organisational Alignment Business and system analysis
- 15. the extent of useful, high-quality information accessible to organisational decision makers. Information quality constitutes relevance, completeness, timeliness, interpretability, and accessibility. Information Availability
- 17. EA planning Information Availability improved information about organisation’s processes improved information about clients, suppliers and business transactions captured previously undocumented information Business and system analysis access to better information + enhanced capabilities to interpret information source of competitive advantage = Improvements in operating platform
- 18. the extent to which an organisation leverages its existing resources, invests in resources that target performance gaps, and minimises unnecessary investments in duplicated resources. Resource Portfolio Optimisation
- 19. What are three types of resources in relation to EA?
- 20. EA planning Resource Portfolio Optimisation identification of resource gaps or overlaps and providing recommendations Business and system analysis building a more standardised IT platform with simplified interfaces and reduced complexity recommendations componentisation of monolithic systems identification of suboptimal business processes and use of human resources reduced costs higher efficiencies better return on investment from the organisation’s resources improved quality and reliability of product and service delivery
- 21. How does componentisation help in optimising resource portfolio ?
- 22. the extent to which an organisation’s resources synergistically support the pursuit of its strategic goals. Resource Complementarity
- 23. The competitive advantage of organisations tends to rely not on individual resources but on unique combinations of complementary resources.
- 24. EA planning Resource Complementarity identification of the potential enterprise-wide synergies and providing recommendations Business and system analysis development of a corporate- wide strategic architecture that establishes objectives for competencies building identification of resource gaps or overlaps and providing recommendations componentisation of monolithic systems achieving a mutually reinforcing resource configuration that is difficult to replicate superior cost position superior customer information and feedback
- 25. Which organisations are better positioned to benefit from EA investment?
- 26. EA Maturity Stages Business silos Standardised technology Rationalised processes Business modularity a firm applies IT to specific business needs and, thus, delivers locally optimal business solutions a firm builds a standardised central technology infrastructure to reduce the cost and time of delivering and supporting business solutions a firm builds a base of IT-enabled processes that represent its core operations and that usually depend on shared and standardised business processes or data or both a firm builds on these core processes with plug- and-play processes, built internally or externally
- 28. flexibility standardisation The Multinational approach The International approach The Transnational approach The Global approach seeks to establish and maximise business flexibility around the world, managing a portfolio of multiple distinct business units (BUs). introduces business standardisation for adapting and transferring parent company knowledge to foreign markets while maintaining business flexibility, often in terms of regional infrastructure support. further leverages regionalisation of processes to create business standardisation in the core business processes and establishes BUs as strategic partners that must exchange knowledge and capabilities across the entire company. treats the world market as an integrated whole, maximising business standardisation while maintaining needed business flexibility for competing globally.
- 29. On Matching of Ross’s IT Architecture Stages and Bartlett and Ghoshal’s Approaches e
- 30. Strengths and Weaknesses of the Four Enterprise IT Architectures for Globalisation
- 31. Strengths and Weaknesses of the Four Enterprise IT Architectures for Globalisation
- 32. References Kettinger, W. J., Marchand, D. A. and Davis, J. M. (2010) ‘Designing Enterprise It Architectures to Optimize Flexibility and Standardization in Global Business’, MIS Quarterly Executive, 9(2), pp. 95–113. Ross, J. W. and Beath, C. M. (2006) ‘Sustainable It Outsourcing Success: Let Enterprise Architecture Be Your Guide’, MIS Quarterly Executive, 5(4), pp. 181– 192. Tamm, T. et al. (2011) ‘How Does Enterprise Architecture Add Value to Organisations?’, Communications of the Association for Information Systems, 28, pp. 141–168.