Maximising The Value and Benefits of Enterprise Architecture
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This document discusses enterprise architecture (EA), including: 1) The benefits of EA such as aligning IT with business strategy and reducing IT complexity. 2) The key elements of EA including business, data, applications, and technology architectures. 3) How effective EA implementation and management can standardize systems and infrastructure, lower costs, and improve business agility.
Maximising The Value and Benefits of Enterprise Architecture
- 1. Maximising The Value and Benefits of Enterprise Architecture Alan McSweeney
- 2. Objective • To explain the benefits of implementing Enterprise Architecture and to identify how the value of Enterprise Architecture can be measured December 4, 2010 2
- 3. Agenda • Enterprise Architecture • Issues in IT • Why Enterprise Architecture • Enterprise Architecture Measurement Framework • Enterprise Architecture Value Measurement Programme December 4, 2010 3
- 4. 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to respond to business and economic changing environment − Not integrated • Mission-critical information consistently out-of-date and/or actually incorrect • A culture of distrust between the business and technology functions of the organisation • Unmanaged complexity in IT landscape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 December 4, 2010 4
- 5. Enterprise Architecture Is/Does … • What the organisation does today in terms of IT • What the organisation wants to do in the future in terms of IT • The Information Technology assets implemented today • The Information Technology assets the organisation needs to have in the future to best deliver its business goals • Defines the framework outlining the vision for systems and technology for the organisation • Takes the business strategy and translates it into effective change of the organisation • Manages the Information Technology change roadmap • Defines a set of overall principles, a future state vision and an implementation and transformation plan • Includes standards definitions and strategies for services December 4, 2010 5
- 6. Scope and Elements of Enterprise Architecture Enterprise Architecture Business Architecture Information Architecture Enterprise IT Enterprise Enterprise Enterprise Information Systems Security Architecture Information Architecture Architecture Governance Technology Architecture Enterprise IT Solution Technology Architecture Infrastructure Architecture Software Architecture Network and Communications Architecture Storage Architecture December 4, 2010 6
- 7. Key Messages Relating to Enterprise Architecture • IT-business alignment has never been so important • Alignment must be pursued in the context of understanding business processes and priorities • Service-orientation is not just for applications • Service contracts are not just about function: they encapsulate and communicate business priorities to IT delivery organisations • Enterprise architecture needs to be more inclusive, sophisticated, flexible and integrated • IT governance models must take all this into account December 4, 2010 7
- 8. IT Too Often Fails to Support Changes Effectively • Technology integration is costly, risky and complicated • Information is everywhere but getting access to the right information at the right time is very difficult • Modifying system behaviour takes too long and changes are difficult to communicate and implement effectively • Much of IT system and operations expenditure is bloated and fixed where operations run with excess redundant capacity • IT seen as a cost centre and not a source of business value December 4, 2010 8
- 9. Business View of IT • IT is viewed by the business as being • Expensive • Not connected with business strategy and operations • Unresponsive to the changing needs of business − Viewed as a critical issue as business agility and responsiveness are essential for competitiveness • Undefined and unclear as a business asset − In terms of financial cost and value − Return on investment and value for money from IT is relatively poor − The capability the asset should deliver to the business • Not delivering its promises • Business change projects cost more and deliver less value than expected or promised December 4, 2010 9
- 10. Causes of Business View of IT • Business applications tend to be implemented on a project by project basis for specific purposes without overall context • Project benefits and success have been measured on specific project costs, value and time to market without measuring the long term enterprise-wide cost and value • Average 75% of total IT budget on RTB operations and 25% on new project investment • Technology innovation has tended to deliver specific short- term benefits but in the long term of making things worse • Just look at previous technology innovations such as client/server and 4GLs December 4, 2010 10
- 11. Business Pressures on Information Technology Globalisation Business and Technology Transparency Changes Information Technology Service Regulation Focus Challenging Consolidation Economic Circumstances December 4, 2010 11
- 12. 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 December 4, 2010 12
- 13. Why Enterprise Architecture • Enterprise Architecture is part of a continuum and not a project − Emerging technologies influence direction of architecture − Must be subject to change management and governance − Enterprise Architecture and IT governance should be considered together • Principles of architecture should override IT hype and transient technology − SOA may be dormant but services and an architectural component continues − Cloud computing is just another step along the IT/Architectural evolution and another perspective on the future state • Need better understanding of integration of enterprise and solutions architecture • Enterprise Architecture is about achieving a common language between business and IT • Enterprise Architecture driven out of the business strategy provides the enterprise with the highest degree of alignment between the business and IT • The concept of Enterprise Architecture has expanded well beyond the traditional notion of technology architecture − Now the architecture of the whole enterprise December 4, 2010 13
- 14. Enterprise Architecture - Achieving a Common Language Between Business and IT • IT-business alignment requires collaboration between the business and the IT organisation to align investment and delivery with business goals and to manage business and technology change • A common, agreed representation of business activity and goals • A common, agreed view of how current and future IT provides structured support to the business • Key requirements and deliverables: − Investment prioritised in terms of business need − Systems that deliver value to the business − Clear direction from the business about focus, strategy − Collaborative approach to implementing business change December 4, 2010 14
- 15. 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 December 4, 2010 15
- 16. Why Manage Enterprise Architecture? Duplication in Unmanaged Resources to Complexity in IT Increased Cost Develop, Operate Landscape and Maintain Business Systems Leads Cannot to Exploit Reduced Economies of To .. Flexibility Loading and Scale Delays in Complexity Delivering Causes Changes Difficulties and Uncertainties … Thus Negatively Longer Design, Impacting on Build, Test and Business Delivery Time Performance … December 4, 2010 16
- 17. 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 December 4, 2010 17
- 18. Value of Enterprise Architecture Appropriate and Effective Enterprise … Promotes Architecture Actions and Decisions That … Align Information Technology Plans and Investments with Business Priorities and Requirements Result in More Integrated Operations Responsive to Customer and Business Requirements Promote a More Efficient and Effective IT Infrastructure Facilitate Cross-Organisational Sharing of Enterprise Information Recognise Innovations and Best Practices Across the Enterprise Ensure Traceability of Decisions Back to Principles and Rules December 4, 2010 18
- 19. Enterprise Architecture Development and Implementation Process Architecture Vision Architecture Business Change Architecture Management Data Architecture Information Implementation Requirements Systems Governance Management Architecture Solutions and Application Architecture Migration Technology Planning Architecture Opportunities and Solutions December 4, 2010 19
- 20. Key Elements/Subsets of Enterprise Architecture • There are four key architectural subsets of an overall enterprise architecture − Business/Business Process Architecture - this defines the business strategy, governance, organisation, and key business processes − Data and Information Architecture - this describes the structure of an organisation's logical and physical data assets and data management resources − Solutions/Applications Architecture - this kind of architecture provides a blueprint for the individual application systems to be deployed, their interactions, and their relationships to the core business processes of the organisation − Technology and Infrastructure Architecture - this describes the logical software and hardware capabilities that are required to support the deployment of business, data, and application services and includes IT infrastructure, middleware, networks, communications, processing, standards, etc. December 4, 2010 20
- 21. 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 December 4, 2010 21
- 22. Benefits of Enterprise Architecture • Align IT and business for planning and execution purposes • Optimise resources - technology, people and processes • Increase business interoperability • Reduce complexity in IT infrastructure • Improve business agility to support dynamic change • Drive re-usability of architecture models and best practices • Streamline informed decision making • Standardise IT for cost effective delivery of services • Eliminate duplication and redundancy and reduce cost of ownership and return on investment • Reduce risks for future investment • Faster, simpler and cheaper procurement • Manage information/data and knowledge as a corporate asset • Manage change based on a clear understanding of its impact December 4, 2010 22
- 23. Risks of No Enterprise Architecture • Inability to rapidly respond to challenges driven by business changes • Lack of commonality and consistency due to the absence of standards • Lack of focus on enterprise requirements • Lack of common direction and savings due to synergies • Incomplete visibility of the current and future target enterprise architecture vision • Inability to predict impacts of future changes • Increased gaps and architecture conflicts • Dilution and dissipation of critical information and knowledge of the deployed solutions • Rigidity, redundancy and lack of scalability and flexibility in the deployed solutions • Lack of integration, compatibility and interoperability between applications • Complex, fragile and costly interfaces between applications • Fragmented and ad hoc software development driven by a tactical and reactive approach December 4, 2010 23
- 24. Issues in Developing Enterprise Architecture • Issue 1 - Concentrate on the Plan − Focus too intently on analysis and strategy − Avoid committing to implementing solutions − Architecting inhibits value delivery • Issue 2 - Jumping to the Solution − Engineering solutions and data implementation − Technology has difficulty aligning with enterprise − Reinforces gap between business and IT • Challenge is to balance evolving strategy, goals, constraints with technology solutions December 4, 2010 24
- 25. 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 December 4, 2010 25
- 26. Risks Inherent Investment in Enterprise Architecture Enterprise Architecture Investment Spectrum Too Little or On Investment in Too Much Means Wrong Areas Means Enterprise Enterprise Operating Costs Architecture is Architecture Increase as Sufficient to Deliver Inhibits Flexibility Architecture is Too Results Without and Imposes Too Complex, Ineffective, Imposing Unnecessary Many Constraints - Old and Expensive to Restrictions or IT Becomes Operate and Support Overhead Inefficient “Goldilocks” Zone December 4, 2010 26
- 27. Enterprise Architecture and Enterprise Architecture Management Enterprise Architecture Enterprise Architecture Management Defines a framework Provides the models and outlining the vision for practices for defining, systems and technology for planning and managing the an organisation business and IT capabilities Defines a set of overall Includes business, data, principles, a future state applications and technology vision and a transformation models and principles that plan support assessments and investment trade-off Include standards decisions, as well as tactical, definitions and strategies for project-level designs and individual IT services decisions December 4, 2010 27
- 28. Relationship Between EA Implementation and Operation Components Function Develops EA Enterprise Enterprise Architecture Architecture Function/ Capability EAM Measures and Function Manages the Extent and Operation of the EA and Implements EA Provides Governance Enterprise Enterprise Architecture Architecture Implementation Management and Operation December 4, 2010 28
- 29. 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 December 4, 2010 29
- 30. Enterprise Architecture Linked to Overall Business Strategy Business Business Processes Systems Business Business Business Enterprise Solution Service Operational Strategy Objectives Architecture Delivery Delivery Model • Enterprise Architecture aligns business strategy, business processes Domain Architecture and IT and provides governance to ensure business value and competitive advantage is delivered • Enterprise Architecture creates Project alignment, consistency and unity Architecture between objectives at various levels December 4, 2010 30
- 31. 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 Objectives Projects are subsets of Enterprise Enterprise Architecture Architecture to enable individual business unit/domain objectives Domain and targets to be met Architecture • Project Architecture(s) enable project level Project objectives to be met Architecture December 4, 2010 31
- 32. Enterprise Architecture Capability • The function that enables an organisation to create, adapt, enforce and develop enterprise architecture − Equally a part of the business as it is part of IT − Role is as much about controlling and focusing IT expenditure as it is about identifying necessary change • Ensures that the IT landscape is aligned to the business vision and continues to be aligned to the business strategy and operational needs • Ensures that IT solutions can continuously react to the changing needs of the business • Ensures that the business and financial case for change is made December 4, 2010 32
- 33. Subsets of Overall Enterprise Architecture Business and Business Process Architecture Technology and Data and Infrastructure Information Architecture Architecture Application And Solution Architecture December 4, 2010 33
- 34. Layers of Enterprise Architecture Overall Enterprise Architecture Context, Security, Governance Business and Data and Solutions and Technology and Business Process Information Applications Infrastructure Architecture Architecture Architecture Architecture Conceptual Overall Network View Defines Business and Information Application and What Is Shared Services Services Designs Infrastructure Required Design Logical Business Data Sources, Infrastructure View How Targets and Business Services and It Should Be Processes Flows Applications Components Implemented Designs Physical Application Technical Designs View Defines Business Database and Designs, and What Should Be Processes Message Designs Implemented Specifications Specifications December 4, 2010 34
- 35. Enterprise Architecture Management • Enterprise Architecture needs be a guided strategy that is aligned with the needs of the business • Enterprise Architecture Capability enables an organisation to create, adapt, enforce, and develop its technical architecture • Enterprise Architecture Management provides a means to measure the effectiveness of Enterprise Architecture and assist organisations increase business value delivered by IT systems • Enterprise Architecture Management is a capacity rather than a programme or an end state architecture • Enterprise Architecture Management provides a capability model with maturity levels for an organisation to achieve desired level of Enterprise Architecture maturity and value • Enterprise Architecture Management provides a systematic coherent approach to defining, planning, and measuring an organisation's IT assets over time December 4, 2010 35
- 36. Why Invest in Enterprise Architecture Enable Enable faster and easier Enable faster response Greater collaboration through to business changes and Business application and data new demands at lower Agility and Increased Flexibility integration cost Business Value IT projects will have a greater success – Solutions will be Increase Use delivered on time, on delivered at lower of IT budget and to user implementation and requirements – reducing operational costs cost through avoidance of rework Increased Success in Reduced IT Costs Solution Delivery Reduced IT Costs December 4, 2010 36
- 37. Why Invest in Enterprise Architecture • Business cannot understand why relatively Solution Lifecycle Costs straightforward business changes are costly, risky and slow to implement • Run The Business improvements and Change The Business initiatives are restrained or prevented by the IT function because to the delay and high cost of implementing changes Post Solution Implementation • Lack of Enterprise Architecture means Implementation Costs – Support, operational and support costs of solutions are Costs Operation kept high − Reduces budget available to be used elsewhere • Situation worsened by projects attempting to deliver in an isolated fashion to bypass inhibitors resulting in further constraints for subsequent projects in the medium term December 4, 2010 37
- 38. What Manage Enterprise Architecture Value? • Understand the current state of Enterprise Architecture − Create an accurate view of the current capabilities − Define the activities to be worked on in partnership with the business − Create a flexible Enterprise Architecture framework that will govern future initiatives • Validate Opportunities to Create Business Value − Define the initiatives that will create the most value − Define a realistic and achievable set of objectives − Define value measurement to justify commitment and investment • Develop a a Flexible Initiative and Project Portfolio − Define the set of initiatives and projects that achieve objectives − Positively vet programmes and projects for value − Create programmes of work that are justified, measured and managed for value • Recognise that Enterprise Architecture is strategic rather than tactical − Requires the participation in partnership of business and IT − Reach of Enterprise Architecture may extend beyond the organisation December 4, 2010 38
- 39. Framework for Enterprise Architecture Management • Framework provides a means for assessing the Enterprise Architecture maturity level within an organisation • Can be used to achieve a target level of organisational Enterprise Architecture maturity and therefore value • Provides a means for continuously assessing and adjusting Enterprise Architecture efforts • Development of Enterprise Architecture needs be a focussed and managed strategy aligned with the business December 4, 2010 39
- 40. 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 December 4, 2010 40
- 41. Using the Enterprise Architecture Management Framework Define the scope and role of Enterprise Measure and understand Architecture and its your current capability management within your maturity level organisation 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 December 4, 2010 41
- 42. 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 December 4, 2010 42
- 43. Measurement of Value of Enterprise Architecture • Direct link between Enterprise Architecture and real value can be difficult to demonstrate • There is a time lag between implementation and results December 4, 2010 43
- 44. Measurement of Value of Enterprise Architecture • Define Enterprise Architecture value measurement areas • Identify measurement process • Measure − Establish current baseline − Define target − Measure results against baseline and target December 4, 2010 44
- 45. Measurement Framework for Enterprise Architecture Management Enterprise Architecture Management Framework EAM Dimension 1 - EAM Dimension 2 - EAM Dimension 3 - Enterprise Architecture Enterprise Architecture Enterprise Architecture Practices Planning Personnel 1.1 Architecture 3.1 Organisation 2.1 Strategic Planning Framework Structure and Skills 1.2 Architecture 3.2 Communication and 2.2 Architecture Planning Processes Stakeholder Management 1.3 Architecture Governance 1.4 Architecture Value December 4, 2010 45
- 46. 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 December 4, 2010 46
- 47. 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 December 4, 2010 47
- 48. 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 Basic Processes and Associated Collateral in Place Ad-Hoc Processes Defined and Driven by Individuals Across the Beyond the Within Organisation, Organisation Within an IT Across the IT Individual Including (Suppliers, Domain Function Projects Business and IT Partners, Functions Customers) December 4, 2010 Enterprise Architecture Reach 48
- 49. Detailed Measurement Framework for Enterprise Architecture Management Enterprise Architecture Management Framework EAM Dimension 1 - EAM Dimension 2 - EAM Dimension 3 - Enterprise Architecture Enterprise Architecture Enterprise Architecture Practices Planning Personnel 1.1 Architecture 3.1 Organisation 2.1 Strategic Planning Framework Structure and Skills Processes Reach Processes Reach Processes Reach 3.2 Communication and 1.2 Architecture 2.2 Architecture Planning Stakeholder Processes Management Processes Reach Processes Reach Processes Reach 1.3 Architecture Governance Processes Reach 1.4 Architecture Value Processes Reach December 4, 2010 49
- 50. Complete Measurement Framework Processes Enterprise • Three Architecture Planning dimensions x two aspects Processes Enterprise Architecture Personnel Reach Processes Reach Enterprise Architecture Reach Practices December 4, 2010 50
- 51. Enterprise Architecture Management Maturity Level 1 Level 2 Level 3 Level 4 Level 5 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 Limited vision and Architecture planning Continuous Includes extended Planning Architecture Planning Project-based roadmap process established improvement enterprise capabilities Project-based Central architecture Funded from efficiency Funding by margin on Funding by transaction Architecture Funding allocation fund gains services Limited framework - Covers Information and Consistently adopted Framework shared Architecture Framework None covers some process, but adoption not internally externally information consistent Defined processes Defined processes Defined processes with Project-based Defined processes Architecture Processes primarily focused on across business and IT clear ability to adapt and processes across IT domains infrastructure domains extend Practices Some review principles Shared governance Business / IT governance None / project- defined for some Defined IT governance Governance model with Business continuously improved to based components boards and processes and IT respond to change Defined and measured None / project- IT cost performance Business outcomes and IT Value and Measurement IT cost metrics business objectives, based metrics performance metrics performance metrics Organization Structure No roles, Formal technology Formalized roles and Clear professional Pro-active development and Skills responsibilities roles within projects responsibilities career track with external input People Pro-active Communication and Key stakeholders Regular consultation communication and Collaboration with Project-based Stakeholder Management identified and informed with business feedback with extended enterprise business December 4, 2010 51
- 52. Assessing Current and Future Desired Architecture Management Maturity 1 - Ad-Hoc 2 - Defined 3 - Repeatable 4 - Managed 5 - Optimised Architecture 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 Current EA Competency Maturity Level Desired Future EA Competency Maturity Level December 4, 2010 52
- 53. Measuring Maturity and Importance 5.0 4.0 Level Organisation Structure Of and Skills Architecture Architecture 3.0 Processes Planning Maturity Communication Architecture and Stakeholder Value Management 2.0 Architecture Governance Architecture Strategic Framework Planning 1.0 1.0 2.0 3.0 4.0 5.0 Level of Importance December 4, 2010 53
- 54. 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 December 4, 2010 54
- 55. Outcomes of Effective Enterprise Architecture Management Modeling Information Relationships and Standardising Lifecycles Information Elements Deploying Integration Shared Between Systems Infrastructure Standardising Hardware Specifying Application and Core Software Architecture Platforms Requirements Building Reusable Defining Architecture Application Components Methodology Reduced Costs & Service Improvements December 4, 2010 55
- 56. 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 Shorter integration time (and Integrated infrastructure and Better IT and business decisions corresponding project time application management Increased hardware utilisation Renegotiation/consolidation of supplier and deferred or eliminated Higher IT productivity contracts hardware spend Simplified development Better information quality Reduced operational risk Improved operational efficiency and Simplified analysis and testing Faster access to information effectiveness Eliminated or reduced spend on Higher application development redundant application purchase Sustained cost reductions productivity and development Leverage new capabilities Increase flexibility within the business Lower capital spend for competitive advantage and IT December 4, 2010 56
- 57. Impact of Effective Enterprise Architecture Management Can Be Difficult to Quantify Primary/ Secondary/ Tertiary/ Immediate Medium-Term Long-Term Benefits Benefits Benefits Scope and Benefits of Enterprise Architecture Over Time Directly Difficult to Quantifiable Define Intangible Ease of Measuring Benefits of Enterprise Architecture December 4, 2010 57
- 58. Measuring Quantitive and Qualitative Value from Enterprise Architecture Measures of Value from Enterprise Architecture Quantitive Measures of Qualitative Measures Value of Value Reduced Project Risk Reduction in project time and cost Improved Business Reductions in faults and overspend over-runs both without scope or and Complexity Requirements Delivery due to incorrect requirements quality reduction Improved Project Solution quality, delivery on-time Better Alignment with Quality-related feedback from the and within budget and to user Success Business business through regular surveys satisfaction Cost Control and Measure through feedback where Measuring return on projects over Increased Agility and IT is viewed as an partner and Improved Return on lifetime enabler with the business and not Competitiveness Investment just a cost and constraint Reduced Costs for Measure through effect with the Complete operational costs of IT to Improved Business business becoming better Business As Usual reflect the total cost of ownership connected and greater reach of Knowledge Operations processes Enable Delivery of IT Sustained delivery of the IT Strategy which should also be Strategy concerned with delivering value December 4, 2010 58
- 59. Focussing on Areas of Low Maturity and High Importance Fourth Areas To Focus Second Areas To Focus High On To Generate On To Generate Maturity Improvements Improvements Maturity Low Third Areas To Focus On First Areas To Focus On Maturity To Generate To Generate Improvements Improvements Low View of Importance High View of Importance Importance December 4, 2010 59
- 60. Focussing on Areas of Low Maturity and High Importance • Use Enterprise Architecture measurement framework to identify areas of greatest return on investment December 4, 2010 60
- 61. 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 Measure Delivery and Results • Does the Enterprise Architecture programme have a measurable impact on the IT investment portfolio? • Does the Enterprise Architecture programme lead to measurable improvements of performance? • Is there a clear relationship between Enterprise Architecture programme and business services? • Does the Enterprise Architecture programme result in measurable cost savings/avoidance? December 4, 2010 61
- 62. Summary • Appropriate Enterprise Architecture can deliver significant business benefits • Comprehensive Enterprise Architecture value measurement framework is needed to link Enterprise Architecture to business benefits December 4, 2010 62
- 63. More Information Alan McSweeney alan@alanmcsweeney.com December 4, 2010 63