Enterprise Architecture as competitive...
24
Enterprise Architecture as competitive advantage Stuart Macgregor Johannesburg - March 2011 TOGAF® is a registered trademark of The Open Group. www.realirm.com
Transcript of Enterprise Architecture as competitive...
Enterprise Architecture as competitive
advantage
Stuart Macgregor
Johannesburg - March 2011
TOGAF® is a registered trademark
of The Open Group. www.realirm.com
Niels Bohr
7 October 1885 – 18 November 1962
“An expert is a person who has
made all the mistakes that can be
made in a very narrow field.”
3
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Agenda
Enterprise Architecture as Competitive Advantage
Leading Change and Business Dynamics
Kotter - A Sense of Urgency!
Conclusion – Closing Remarks
Introduction
Introduction
4
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Enterprise Architecture is a Strategic Imperative
Information
Technology
BUSINESS
FOCUS
TECHNOLOGY
FOCUS
Enterprise Corporate Governance
IT Governance
Enterprise
Architecture
Process
Enterprise
Performance
Management
Enabling Technology
Knowledge
Management
Global Systems
Enterprise Architecture is required to transform a legacy of fragmented
applications, organisational structures and processes (both manual and
automated) into an integrated environment with optimised processes that are
responsive to change and the delivery of the business strategy.
Introduction
5
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
EA
Content
Enterprise Architecture Domains
Consists of current and future state
models
Is implemented through the Enterprise:
Business architecture,
Information architecture,
Data Architecture,
Applications portfolio, and
Enterprise-wide technical architecture
Provides organizations with the ability to
conduct impact assessments, analyze
alternative scenarios and implement
appropriate strategies
(Re-)Defines the business design for
sustainable competitive advantage
Business
Architecture
Information
Architecture
Data
Architecture
Applications
Architecture
Technology
Architecture
Knowledge
Principles
Inventory
Models
Standards
Introduction
6
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Real IRM’s EA Cube
© Real IRM Solutions
EA Continuum
En
terp
rise
Arc
hit
ectu
re D
om
ain
s
Business Architecture
Information Architecture
Data Architecture
Applications Architecture
Technology Architecture P
eop
le
Pro
cess
es
Co
nte
nt
Too
ls
Pro
du
cts
and
Ser
vice
s
Introduction
7
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
From EA for IT Architecture to Enterprise Architecture
Introduction
8
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
From EA for IT Architecture to Enterprise Architecture
Pe
op
le
Pro
cesses
Co
nte
nt
To
ols
Pro
du
cts
an
d S
ervi
ces
Strategic Planning
Organisation Structuring
Business Transformation, Engineering
Acquisitions and Mergers
Outsourcing the Business
Risk Management
Competencies and Skills Identification
Benchmarking and Managing Best
Practice
Designing Delivery of Packaged
Products (New Business Products)
Package Evaluation…
Finding Competitive Advantage!
Business
Technology
Information
Data
Applications
Introduction
9
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
EA
Content
Enterprise Architecture as Competitive Advantage
Consists of current and future state
models
Is implemented through the Enterprise:
Business architecture,
Information architecture,
Data Architecture,
Applications portfolio, and
Enterprise-wide technical architecture
Provides organizations with the ability to
conduct impact assessments, analyze
alternative scenarios and implement
appropriate strategies
(Re-)Defines the business design for
sustainable competitive advantage
Business
Architecture
Information
Architecture
Data
Architecture
Applications
Architecture
Technology
Architecture
Knowledge
Principles
Inventory
Models
Standards
Enterprise Architecture as Competitive Advantage
10
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Enterprise Architecture as Competitive Advantage
August 2006
“Top-performing companies define how they will do
business (an operating model) and design the processes
and infrastructure critical to their current and future
operations (enterprise architecture), which guide the
evolution of their foundation for execution.
Then these smart companies exploit their foundation,
embedding new initiatives to make that foundation
stronger, and using it as a competitive weapon to seize
new business opportunities. And what makes this
capability a competitive advantage is that only a small
percentage of companies do it well - we estimate 5
percent of firms or less”
Enterprise Architecture as Competitive Advantage
11
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
John P. Kotter
Leading Change and Business Dynamics
1996 2002 2008
“Incredibly, we found that in over 70 percent of the situations where substantial
changes were clearly needed, either they were not fully launched, or the change
efforts failed, or changes were achieved but over budget, late, and with great
frustration.
We also found that about 10 percent of the cases, people achieved more than
would have been thought possible.”
12
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
The Principles of Business Dynamics
1. Every action produces a reaction.
2. Structure shapes behavior.
3. Complex interrelationships make a system’s
behavior difficult to understand.
4. Time clouds the picture.
5. "Hard" and "soft" factors interact.
6. Feedback reinforces and counteracts.
Leading Change and Business Dynamics
13
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Why does this not work?
Quick Fixes
Problem SymptomUnintended
Consequences
Improvements
Source of Problem
ADDICTION
LOOPS
SYMPTOMCORRECTING
PROCESS
PROBLEMCORRECTING
PROCESS
Time
State of the
System
Quick Fixes
Improvement
Leading Change and Business Dynamics
quality ofmodels perceived
usefulness ofmodels
re-use ofmodels
+
+growth and sustainability ofa business appropriate EA
capability
creation ofquality models
maintaining ofexisting models
business need forEA products
+
+
buy industrybest-practice
models
+
+
business need forEA solutions
+
+
+ +
satisfaction of EAcustomer needs
ability to package modelcontent to specificbusiness needs
++
operational ability tosatisfy business
needs+
++
+
willingness to investin EA capability
+
stimulation of EAcustomer demand
+
+
investment in EAcapability
+
ability to provide EAservices specific to
business needs
+
+
+
+
+
positiveword-of-mouth
+
+
business need forEA services
+
+
effective strategicleadership and
management of EAcapability
-
+
effective tacticalmanagement of EA
customer requirements
+
+
+
business valuerealised
++
+
+
scrapping of redundantand sub-standard
models
-
+
+
+
+
+
+
++
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2010
15
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2009
Business Appropriate and Sustainable
0
1
2
3
4
5
Tools
People
ContentProcess
Products/Services
CurrentTarget
EA Capability
Knowledge Management
Intellectual Capital
C
O
N
T
E
N
T
P
R
O
J
E
C
T
SInnovation
PEOPLE
TOOLS PROCESSES CONTENT PRODUCTS
SERVICES
Best Practice, Industry Trends
Analyst Content (Gartner, AMR Research,… )De Facto Industry Standards (SCOR, ECR, ISO, OMG, COBIT / ITIL / TOGAF…)
Leading Change and Business Dynamics
16
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Leading Change
Phase 1: Creating an environment for change
Stage 1 - Establishing a Sense of Urgency
Stage 2 - Form a Powerful Guiding Coalition
Stage 3 - Create a Vision
Stage 4 - Communicate that Vision
Phase 2 : Implementation of change
Stage 5 - Empower Others to Act on the Vision
Stage 6 - Plan for and Create Short-Term Wins
Stage 7 - Consolidate Improvements
Keep the Momentum for Change Moving
Phase 3: Changing the culture to support the change
Stage 8 - Institutionalize the New Approaches
Leading Change
Kotter - A Sense of Urgency!
quality ofmodels perceived
usefulness ofmodels
re-use ofmodels
+
+growth and sustainability ofa business appropriate EA
capability
creation ofquality models
maintaining ofexisting models
business need forEA products
+
+
buy industrybest-practice
models
+
+
business need forEA solutions
+
+
+ +
satisfaction of EAcustomer needs
ability to package modelcontent to specificbusiness needs
++
operational ability tosatisfy business
needs+
++
+
willingness to investin EA capability
+
stimulation of EAcustomer demand
+
+
investment in EAcapability
+
ability to provide EAservices specific to
business needs
+
+
+
+
+
positiveword-of-mouth
+
+
business need forEA services
+
+
effective strategicleadership and
management of EAcapability
-
+
effective tacticalmanagement of EA
customer requirements
+
+
+
business valuerealised
++
+
+
scrapping of redundantand sub-standard
models
-
+
+
+
+
+
+
++
Create the foundation
upon which you can
start making something
really difficult happen
Put together the right kind
of teams with the right
characteristics and power
to drive change
At the beginning, it's
a matter of slowing
down to speed up.
Phase 1: Creating an environment for change
Establishing a Sense of Urgency
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2010
18
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2009
Establishing a Sense of Urgency
Kotter - A Sense of Urgency!
19
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2009
Establishing a Sense of Urgency
To seriously examine the market and the competitive realities
To do a detailed analysis of the internal status quo
To identify and discuss crises, potential crises or major opportunities
To identify barriers and/or sources of resistance
To craft the EA change message
Kotter - A Sense of Urgency!
20
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Change Drivers Government
(Political/Legal)Shifts
Technological
Shifts
Potential
Entrants
Industry
Competitors
Substitutes
Suppliers Clients Customers
Social/Consumer
Shifts
International /
Economic Shifts
Mergers & Acqusitions
Changing market
customers demands
Globalization and
hyper-competition
Talent war – new forms
of collaboration
Frustrated, agility
constrained by
systems
Regulation
Business Information
Information glut
yet starved
Human centered
Information
security
No one version of
the “truth”
Attention economy
…
Data
Fragmented
Duplicated
Trapped within
systems
Vendors of
packaged
applications
control data
structures
…
Applications
Commoditization of
process - rise of SOA
Multiple ERPs
Human centered to
support increasingly
dynamics nature or
work
Open source
applications…
Technology
Commoditized
Standardized
Enabling not
differentiating
Limited leverage of
global vendor
relations
Cloud…
Kotter - A Sense of Urgency!
21
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2009
What Works
Showing others the need for change with a compelling object that they can actually see, touch and feel
Showing people valid and dramatic evidence from outside the organization that demonstrates that change is required.
Looking constantly for cheap and easy ways to reduce complacency.
Never underestimating how much complacency, fear, and anger exists, even in good organizations.
What does not work
Focusing exclusively on building a “rational” business case, getting top management approval, and racing ahead while mostly ignoring all the feelings that are blocking change.
Ignoring a lack of urgency and jumping immediately to creating a vision and strategy.
Believing that without a crisis or burning platform you can go nowhere.
Thinking that you can do little if you are not the head person.
Establishing a Sense of Urgency
Adapted from John Kotter
Kotter - A Sense of Urgency!
quality ofmodels perceived
usefulness ofmodels
re-use ofmodels
+
+growth and sustainability ofa business appropriate EA
capability
creation ofquality models
maintaining ofexisting models
business need forEA products
+
+
buy industrybest-practice
models
+
+
business need forEA solutions
+
+
+ +
satisfaction of EAcustomer needs
ability to package modelcontent to specificbusiness needs
++
operational ability tosatisfy business
needs+
++
+
willingness to investin EA capability
+
stimulation of EAcustomer demand
+
+
investment in EAcapability
+
ability to provide EAservices specific to
business needs
+
+
+
+
+
positiveword-of-mouth
+
+
business need forEA services
+
+
effective strategicleadership and
management of EAcapability
-
+
effective tacticalmanagement of EA
customer requirements
+
+
+
business valuerealised
++
+
+
scrapping of redundantand sub-standard
models
-
+
+
+
+
+
+
++
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2010
23
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Concluding Comments
“create the foundation upon which you can start making something really difficult happen.” – John Kotter
Don’t short change the Preliminary Phase (TOGAF ADM)
Don’t confuse Business Transformation with Architecture Change Management (TOGAF ADM Phase H.) or Governance (TOGAF ADM Phase G.)
Practical enterprise Architecture within the context of an effective organisational change programme
Once size does not fit all – TOGAF, Zachman, COBIT 5, DoDAF
Business Drivers for EA – Sense of Urgency
EA as a means to an end - business value ...competitive advantage
Conclusion
24
Copyright ©
Real IRM Solutions (Pty) Ltd
2001 - 2011
Contact Details
Stuart Macgregor
+27 11 805 3734 (office)
+27 11 805 2823 (fax)
+27 83 407 2748 (mobile)
Skype: mstuartm
Twitter: RealiRM
Real IRM Solutions (Pty) Ltd Registration number: 2001/026036/07
