Maximising The Value and Benefits of Enterprise Architecture

Maximising The Value and Benefits of Enterprise Architecture:

Maximising The Value and Benefits of Enterprise Architecture Alan McSweeney

Objective:

January 11, 2011 2 Objective To explain the benefits of implementing Enterprise Architecture and to identify how the value of Enterprise Architecture can be measured

Agenda:

January 11, 2011 3 Agenda Enterprise Architecture Issues in IT Why Enterprise Architecture Enterprise Architecture Measurement Framework Enterprise Architecture Value Measurement Programme

Basis for Enterprise Architecture:

January 11, 2011 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to respond to business and economic changing environment Not integrated Mission-critical information consistently out-of-date and/or actually incorrect A culture of distrust between the business and technology functions of the organisation Unmanaged complexity in IT landscape leads to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

Enterprise Architecture Is/Does …:

January 11, 2011 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

Scope and Elements of Enterprise Architecture:

January 11, 2011 6 Scope and Elements of Enterprise Architecture Enterprise Architecture Business Architecture Software Architecture Enterprise Information Technology Architecture Information Architecture Enterprise IT Information Systems Architecture Enterprise IT Technology Infrastructure Architecture Network and Communications Architecture Storage Architecture Enterprise Security Architecture Enterprise Architecture Governance Solution Architecture

Key Messages Relating to Enterprise Architecture:

January 11, 2011 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

IT Too Often Fails to Support Changes Effectively:

January 11, 2011 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

Business View of IT:

January 11, 2011 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

Causes of Business View of IT:

January 11, 2011 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

Business Pressures on Information Technology :

January 11, 2011 11 Business Pressures on Information Technology

Business Pressures are Driving Business and IT Change:

January 11, 2011 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

Why Enterprise Architecture:

January 11, 2011 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

Enterprise Architecture - Achieving a Common Language Between Business and IT:

January 11, 2011 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

Enterprise Architecture and Strategy:

January 11, 2011 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

Why Manage Enterprise Architecture?:

January 11, 2011 16 Why Manage Enterprise Architecture? Unmanaged Complexity in IT Landscape Increased Cost Reduced Flexibility Delays in Delivering Changes Duplication in Resources to Develop, Operate and Maintain Business Systems Cannot to Exploit Economies of Loading and Scale Longer Design, Build, Test and Delivery Time Complexity Causes Difficulties and Uncertainties Leads To .. … Thus Negatively Impacting on Business Performance …

Why Manage Enterprise Architecture?:

January 11, 2011 17 Why Manage Enterprise Architecture? Enterprise Architecture Provides a Set of Tools and Methods Need to Measure Effectiveness of Enterprise Architecture In Order to Maximise Business Value Provides… … To Address This Complexity … But

Value of Enterprise Architecture:

January 11, 2011 18 Value of Enterprise Architecture Appropriate and Effective Enterprise Architecture … Promotes 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

Enterprise Architecture Development and Implementation Process:

January 11, 2011 19 Enterprise Architecture Development and Implementation Process Data Architecture Solutions and Application Architecture

Key Elements/Subsets of Enterprise Architecture :

January 11, 2011 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.

Issues in Key Elements/Subsets of Enterprise Architecture:

January 11, 2011 21 Issues in Key Elements/Subsets of Enterprise Architecture High variability and lack of standardisation across business units (such as ERP templates), driven by changes in business strategy, governance, organisation and process Business and Business Process Architecture Inconsistent data definitions, multiple databases, releases and configurations which result in duplication of licenses, duplicate and inconsistent information, complexity in testing Data and Information Architecture Multiple vendors, multiple instances and versions which add complexity in procurement, development and release management, resulting in higher costs and longer time to market Solutions and Applications Architecture Multiple operating environments, multiple hardware vendors and types, leading to higher maintenance and personnel costs, greater instability and time-to-fix Technology and Infrastructure Architecture

Benefits of Enterprise Architecture:

January 11, 2011 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

Risks of No Enterprise Architecture:

January 11, 2011 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

Issues in Developing Enterprise Architecture:

January 11, 2011 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

Justifying Investment in Enterprise Architecture:

January 11, 2011 25 Justifying Investment in Enterprise Architecture Investment in Enterprise Architecture Different Investment Approaches Needed Across Enterprise Architecture Longer Term Payback than Other IT Investments Reasons for Technical Decisions Difficult to Communicate … Involves Challenges … Impact of Investment in Enterprise Architecture Difficult to Measure

Risks Inherent Investment in Enterprise Architecture:

January 11, 2011 26 Risks Inherent Investment in Enterprise Architecture ç Enterprise Architecture Investment Spectrum è Investment in Enterprise Architecture is Sufficient to Deliver Results Without Imposing Unnecessary Restrictions or Overhead Too Much Means Enterprise Architecture Inhibits Flexibility and Imposes Too Many Constraints - IT Becomes Inefficient Too Little or On Wrong Areas Means Operating Costs Increase as Architecture is Too Complex, Ineffective, Old and Expensive to Operate and Support ç “Goldilocks” Zone è

Enterprise Architecture and Enterprise Architecture Management:

January 11, 2011 27 Enterprise Architecture and Enterprise Architecture Management Defines a framework outlining the vision for systems and technology for an organisation Defines a set of overall principles, a future state vision and a transformation plan Include standards definitions and strategies for individual IT services Provides the models and practices for defining, planning and managing the business and IT capabilities Includes business, data, applications and technology models and principles that support assessments and investment trade-off decisions, as well as tactical, project-level designs and decisions Enterprise Architecture Enterprise Architecture Management

Relationship Between EA Implementation and Operation Components:

January 11, 2011 28 Relationship Between EA Implementation and Operation Components Enterprise Architecture Enterprise Architecture Implementation and Operation Enterprise Architecture Management Enterprise Architecture Function/ Capability Function Develops EA EAM Measures and Manages the Extent and Operation of the EA and Provides Governance Function Implements EA

Outcomes of Effective Enterprise Architecture Implementation and Operation:

January 11, 2011 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

Enterprise Architecture Linked to Overall Business Strategy:

January 11, 2011 30 Enterprise Architecture Linked to Overall Business Strategy Enterprise Architecture aligns business strategy, business processes and IT and provides governance to ensure business value and competitive advantage is delivered Enterprise Architecture creates alignment, consistency and unity between objectives at various levels Business Objectives Business Operational Model Enterprise Architecture Solution Delivery Service Delivery Business Processes Business Systems Project Architecture Domain Architecture Business Strategy

Enterprise, Domain and Project Architectures:

January 11, 2011 31 Enterprise, Domain and Project Architectures Enterprise Architecture defines and manages overall organisation architecture Domain Architecture(s) are subsets of Enterprise Architecture to enable individual business unit/domain objectives and targets to be met Project Architecture(s) enable project level objectives to be met Enterprise Architecture Project Architecture Domain Architecture Overall Business Strategy and Objectives Individual Business Unit Objectives Enabling IT Projects Enabling IT Projects

Enterprise Architecture Capability :

January 11, 2011 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

Subsets of Overall Enterprise Architecture:

January 11, 2011 33 Subsets of Overall Enterprise Architecture

Layers of Enterprise Architecture:

January 11, 2011 34 Layers of Enterprise Architecture Business and Business Process Architecture Data and Information Architecture Solutions and Applications Architecture Technology and Infrastructure Architecture Conceptual View Defines What Is Required Logical View How It Should Be Implemented Physical View Defines What Should Be Implemented } Overall Enterprise Architecture Context, Security, Governance Business and Shared Services Business Processes Designs Business Processes Information Services Data Sources, Targets and Flows Database and Message Designs Application Designs Business Applications Application Designs, Specifications Overall Network and Infrastructure Design Infrastructure Services and Components Technical Designs and Specifications

Enterprise Architecture Management:

January 11, 2011 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

Why Invest in Enterprise Architecture:

January 11, 2011 36 Why Invest in Enterprise Architecture Reduced IT Costs Increased Business Value Enable faster and easier collaboration through application and data integration Enable faster response to business changes and new demands at lower cost IT projects will have a greater success – delivered on time, on budget and to user requirements – reducing cost through avoidance of rework Solutions will be delivered at lower implementation and operational costs Increased Success in Solution Delivery Reduced IT Costs Increase Use of IT Enable Greater Business Agility and Flexibility

Why Invest in Enterprise Architecture:

January 11, 2011 37 Why Invest in Enterprise Architecture Business cannot understand why relatively 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 Lack of Enterprise Architecture means operational and support costs of solutions are 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 Solution Implementation Costs Post Implementation Costs – Support, Operation Solution Lifecycle Costs

What Manage Enterprise Architecture Value? :

January 11, 2011 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

Framework for Enterprise Architecture Management:

January 11, 2011 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

Using Enterprise Architecture Management Framework:

January 11, 2011 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

Using the Enterprise Architecture Management Framework:

January 11, 2011 41 Using the Enterprise Architecture Management Framework Define the scope and role of Enterprise Architecture and its management within your organisation Measure and 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

Dimensions of Enterprise Architecture Management Framework:

January 11, 2011 42 Dimensions of Enterprise Architecture Management Framework Measure state of Enterprise Architecture along three dimensions Practices Planning People Define facets of each dimension Measure each facet in terms of: Associated processes and their state of development Scope or extent within the organisation Enterprise Architecture Practices Enterprise Architecture Planning Enterprise Architecture Personnel

Measurement of Value of Enterprise Architecture:

January 11, 2011 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

Measurement of Value of Enterprise Architecture:

January 11, 2011 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

Measurement Framework for Enterprise Architecture Management :

January 11, 2011 45 Measurement Framework for Enterprise Architecture Management

Measurement Framework for Enterprise Architecture Management:

January 11, 2011 46 Measurement Framework for Enterprise Architecture Management Enterprise Architecture Practices Architecture Framework Framework of standards, templates and specifications for organising and presenting business and technical architecture components Architecture Processes Methodology for defining, developing and maintaining architecture components Architecture Governance Principles, decision rights, rules and methods to drive architecture development and alignment in the organisation Architecture Value Defining, measuring and communicating the value and impact of architecture to the business Enterprise Architecture Planning Strategic Planning Using architecture principles and blueprints to align business needs with IT capabilities, define portfolio strategy and direction and allocate resources Architecture Planning Defining vision and roadmap for various IT domains by anticipating business needs and trends, and developing architecture components Enterprise Architecture Organisation Structure and Skills Defining, planning, and managing roles, responsibilities and skills for architecture management Communication and Stakeholder Management Managing communication and expectations with business and IT stakeholders interested in or influenced by architecture management

Measurement Framework for Enterprise Architecture Management:

January 11, 2011 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

Enterprise Architecture Management Assessment Framework:

January 11, 2011 48 Enterprise Architecture Management Assessment Framework Enterprise Architecture Reach Enterprise Architecture Processes Within Individual Projects Within an IT Domain Across the IT Function Across the Organisation, Including Business and IT Functions Beyond the Organisation (Suppliers, Partners, Customers) Ad-Hoc Processes Defined and Driven by Individuals Basic Processes and Associated Collateral in Place Processes are Repeatable and Consistently Used Across Teams and Projects Processes are Managed and There is Continuous improvement Processes are Optimised, Flexible, Adaptable and Lean

Detailed Measurement Framework for Enterprise Architecture Management :

January 11, 2011 49 Detailed Measurement Framework for Enterprise Architecture Management

Complete Measurement Framework:

January 11, 2011 50 Enterprise Architecture Practices Enterprise Architecture Planning Enterprise Architecture Personnel Processes Reach Processes Reach Processes Reach Complete Measurement Framework Three dimensions x two aspects

Enterprise Architecture Management Maturity:

January 11, 2011 51 Planning Practices People Strategic Planning Architecture Planning Organization Structure and Skills Communication and Stakeholder Management Architecture Framework Architecture Processes Governance Value and Measurement None Project-based No roles, responsibilities Project-based None Project-based processes None / project-based None / project-based Project-based Limited vision and roadmap Formal technology roles within projects Key stakeholders identified and informed Limited framework - covers some information Defined processes primarily focused on infrastructure Some review principles defined for some components IT cost metrics Prioritization of project portfolio based on roadmap Architecture planning process established Formalized roles and responsibilities Regular consultation with business Covers Information and process, but adoption not consistent Defined processes across IT domains Defined IT governance boards and processes IT cost performance metrics Architecture a key input to joint Business / IT planning Continuous improvement Clear professional career track Pro-active communication and feedback with business Consistently adopted internally Defined processes across business and IT domains Shared governance model with Business and IT Defined and measured business objectives, performance metrics Business / IT planning enables efficiency, agility in extended enterprise Includes extended enterprise capabilities Pro-active development with external input Collaboration with extended enterprise Framework shared externally Defined processes with clear ability to adapt and extend Business / IT governance continuously improved to respond to change Business outcomes and IT performance metrics Level 1 Level 2 Level 3 Level 4 Level 5 Architecture Funding Project-based allocation Central architecture fund Funded from efficiency gains Funding by margin on services Funding by transaction Enterprise Architecture Management Maturity

Assessing Current and Future Desired Architecture Management Maturity:

January 11, 2011 52 Assessing Current and Future Desired Architecture Management Maturity 1 - Ad-Hoc 2 - Defined 3 - Repeatable 4 - Managed 5 - Optimised Enterprise Architecture Practices Architecture Framework Architecture Processes Architecture Governance Architecture Value Enterprise Architecture Planning Strategic Planning Architecture Planning Enterprise Architecture People Organisation Structure and Skills Communication and Stakeholder Management Current EA Competency Maturity Level Desired Future EA Competency Maturity Level

Measuring Maturity and Importance:

January 11, 2011 53 Measuring Maturity and Importance Level Of Maturity 5.0 4.0 3.0 2.0 1.0 1.0 2.0 3.0 4.0 5.0 Level of Importance Architecture Value Architecture Framework Architecture Processes Architecture Planning Strategic Planning Communication and Stakeholder Management Organisation Structure and Skills Architecture Governance

Benefits of Increasing Enterprise Architecture Management Maturity:

January 11, 2011 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

Outcomes of Effective Enterprise Architecture Management:

January 11, 2011 55 Outcomes of Effective Enterprise Architecture Management Standardising Hardware and Core Software Platforms Standardising Information Elements Shared Between Systems Building Reusable Application Components Specifying Application Architecture Requirements Deploying Integration Infrastructure Defining Architecture Methodology Reduced Costs Modeling Information Relationships and Lifecycles Service Improvements &

Impact of Effective Enterprise Architecture Management Can Be Difficult to Quantify:

January 11, 2011 56 Impact of Effective Enterprise Architecture Management Can Be Difficult to Quantify Primary/ Immediate Benefits Secondary/ Medium-Term Benefits Tertiary/ Long-Term Benefits Lower integration costs (and corresponding project costs) Rationalised application portfolio Improved responsiveness to business needs Shorter integration time (and corresponding project time Integrated infrastructure and application management Better IT and business decisions Increased hardware utilisation and deferred or eliminated hardware spend Renegotiation/consolidation of supplier contracts Higher IT productivity Simplified development Better information quality Reduced operational risk Simplified analysis and testing Faster access to information Improved operational efficiency and effectiveness Eliminated or reduced spend on redundant application purchase and development Higher application development productivity Sustained cost reductions Leverage new capabilities for competitive advantage Lower capital spend Increase flexibility within the business and IT

Impact of Effective Enterprise Architecture Management Can Be Difficult to Quantify:

January 11, 2011 57 Impact of Effective Enterprise Architecture Management Can Be Difficult to Quantify Scope and Benefits of Enterprise Architecture Over Time Ease of Measuring Benefits of Enterprise Architecture Primary/ Immediate Benefits Secondary/ Medium-Term Benefits Tertiary/ Long-Term Benefits Directly Quantifiable Difficult to Define Intangible

Measuring Quantitive and Qualitative Value from Enterprise Architecture:

January 11, 2011 58 Measuring Quantitive and Qualitative Value from Enterprise Architecture

Focussing on Areas of Low Maturity and High Importance:

January 11, 2011 59 Focussing on Areas of Low Maturity and High Importance Importance Maturity Fourth Areas To Focus On To Generate Improvements Second Areas To Focus On To Generate Improvements Third Areas To Focus On To Generate Improvements First Areas To Focus On To Generate Improvements Low View of Importance High View of Importance Low Maturity High Maturity

Focussing on Areas of Low Maturity and High Importance:

January 11, 2011 60 Focussing on Areas of Low Maturity and High Importance Use Enterprise Architecture measurement framework to identify areas of greatest return on investment

Enterprise Architecture Value Measurement Programme:

January 11, 2011 61 Enterprise Architecture Value Measurement Programme 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? Define Enterprise Architecture Measurement Framework Measure Enterprise Architecture Value Analyse Enterprise Architecture Value Measures Plan Enterprise Architecture Implementation/Enhancement Programme of Work Execute Programme Measure Delivery and Results Feedback on Measurement Framework

Summary:

January 11, 2011 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

More Information:

January 11, 2011 63 More Information Alan McSweeney alan@alanmcsweeney.com