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University of Houston ISRC February 21, 2008 This research was made possible by the support of CISR sponsors and patrons. The research team included Cynthia Beath (University of Texas) and Donna Pitteri and Stephanie Woerner (CISR). Architecting Agility
 
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],IT-Enabled Business Agility
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Agenda
Traditional IT and Process Silos Technology Platforms Applications Data Corporate Data Corporate Networks & Infrastructure Services A Core Process
What IT Looks Like in an Agile Firm Technology Platforms Applications Data Corporate Data Corporate Networks & Infrastructure Services Corporate Data A Core Process
Agility Platforms Sources of Agility What’s Reused Motivated Experts Empowered  Decision Makers Digitized Processes ,[object Object],[object Object],[object Object]
Four Stages of Architecture Maturity Standardized Enterprise Processes/Data Standard Interfaces and Business Componentization Enterprise-Wide Technology Standards Locally Optimal Business Solutions Source:  Enterprise Architecture as Strategy: Creating a Foundation for Business Execution ,  J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business  Silos Standardized Technology Optimized Core Business Modularity Strategic Business Value 12% 48% 34% 6% % of Firms
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Agility Journey at Swiss Re Source: “Information and Transformation at Swiss Re: Maximizing Economic Value”, C. Beath and J. Ross, MIT Sloan CISR Working Paper No. 373, Dec. 2007.
How Swiss Re is Building Agility Source: “Information and Transformation at Swiss Re: Maximizing Economic Value”, C. Beath and J. Ross, MIT Sloan CISR Working Paper No. 373, Dec. 2007. 1990–1995 ,[object Object],1995–1999 ,[object Object],1999–2003 ,[object Object],2005–2007 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business demands are driving  the evolution of Global IT Source: “Growth in the Insurance Industry: A Reinsurer’s Prospective,” Swiss Re Future Focus 2007 Presentation, Y. Zaytsev, September 23-25 2007. Used with permission.  1997 1999 2000 2004 2005 Now Building the Technology Foundation Harmonization of Business and Information Solutions Integration and Unification of Global Operating Platform ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Architecture Maturity Shifts Agility Global Agility Local Agility Source:  Enterprise Architecture as Strategy: Creating a Foundation for Business Execution ,  J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business  Silos Standardized Technology Optimized Core Business Modularity
Learning Requirements of the Architecture Stages Source:  Enterprise Architecture as Strategy: Creating a Foundation for Business Execution ,  J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business Silos Standardized Technology Optimized Core Business Modularity IT Capability Local IT applications Shared technical platforms Enterprise-wide hardwired processes or databases Plug & play business process modules Business Objectives ROI of local business initiatives Reduced IT costs Cost and quality of business operations Speed to market; strategic agility Funding Priorities Individual applications Shared infrastructure services Enterprise applications and data stores Reusable business process components Key Management Capability Technology-enabled change management Design and update of standards; funding shared services Core enterprise process definition and measurement Management of reusable business processes Who Defines Applications Local business leaders IT & business unit leaders Senior management and process leaders IT, business and industry leaders Key IT Governance Issues Measure and communicate value Establish local/ regional/global responsibilities Align project priorities with architecture objectives  Define, source & fund business modules
Enterprise Architecture Management Competencies Management practices within each practice set are statistically significantly correlated with each other. All four competencies are significantly correlated with architecture benefits. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Building Competencies in Stages Legend Architecture Planning & Design Project Management IT Funding  Standards Management * Items are statistically significantly related to architecture maturity—they are associated with greater value in later stages. Source:  Enterprise Architecture as Strategy: Creating a Foundation for Business Execution ,  J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business  Silos Standardized Technology Optimized Core Business Modularity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Architecture Maturity
Enterprise Architecture Maturity Promotes Agility (1) Process improvements and scalability (2) Process change and organizational redesign (3) Partnership and acquisition In a survey of 65 IT executives, all four types of agility were statistically significantly correlated with enterprise architecture maturity.
[object Object],[object Object],Definition of the Strategy Execution Officer
The Role of the SEO Numbers reflect how many of 12 SEOs we studied defined each responsibility. Enterprise IT & Process Governance (11) Project Design & Implementation (10) Ongoing Operations/ Continuous Improvement (4) Designs  Platform Builds Platform  Components Leverages  Platform
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Responsibility 1: IT and Process Governance
[object Object],[object Object],[object Object],[object Object],Responsibility 2: Project Design/Implementation
[object Object],[object Object],[object Object],Responsibility 3: Ongoing Operations
Four Stages of Architecture Maturity Standardized Enterprise Processes/Data Standard Interfaces and Business Componentization Enterprise-Wide Technology Standards Locally Optimal Business Solutions Framework Source:  Enterprise Architecture as Strategy: Creating a Foundation for Business Execution ,  J. Ross, P. Weill, D. Robertson, HBS Press, 2006.  Business  Silos Standardized Technology Optimized Core Business Modularity Strategic Business Value
[object Object],[object Object],[object Object],[object Object],[object Object],Questions SEOs Are Asking * Architecture maturity was statistically significantly related to a greater reliance on matrixed structures in a survey of 155 CIOs.
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Challenges to Building Business Agility 1 Centrally controlled can refer to an enterprise, business unit, geography, or function.

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Isrc Architectingfor Agility J.Ross

  • 1. University of Houston ISRC February 21, 2008 This research was made possible by the support of CISR sponsors and patrons. The research team included Cynthia Beath (University of Texas) and Donna Pitteri and Stephanie Woerner (CISR). Architecting Agility
  • 2.  
  • 3.
  • 4.
  • 5. Traditional IT and Process Silos Technology Platforms Applications Data Corporate Data Corporate Networks & Infrastructure Services A Core Process
  • 6. What IT Looks Like in an Agile Firm Technology Platforms Applications Data Corporate Data Corporate Networks & Infrastructure Services Corporate Data A Core Process
  • 7.
  • 8. Four Stages of Architecture Maturity Standardized Enterprise Processes/Data Standard Interfaces and Business Componentization Enterprise-Wide Technology Standards Locally Optimal Business Solutions Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution , J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business Silos Standardized Technology Optimized Core Business Modularity Strategic Business Value 12% 48% 34% 6% % of Firms
  • 9.
  • 10.
  • 11.
  • 12. Architecture Maturity Shifts Agility Global Agility Local Agility Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution , J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business Silos Standardized Technology Optimized Core Business Modularity
  • 13. Learning Requirements of the Architecture Stages Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution , J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business Silos Standardized Technology Optimized Core Business Modularity IT Capability Local IT applications Shared technical platforms Enterprise-wide hardwired processes or databases Plug & play business process modules Business Objectives ROI of local business initiatives Reduced IT costs Cost and quality of business operations Speed to market; strategic agility Funding Priorities Individual applications Shared infrastructure services Enterprise applications and data stores Reusable business process components Key Management Capability Technology-enabled change management Design and update of standards; funding shared services Core enterprise process definition and measurement Management of reusable business processes Who Defines Applications Local business leaders IT & business unit leaders Senior management and process leaders IT, business and industry leaders Key IT Governance Issues Measure and communicate value Establish local/ regional/global responsibilities Align project priorities with architecture objectives Define, source & fund business modules
  • 14.
  • 15.
  • 16. Enterprise Architecture Maturity Promotes Agility (1) Process improvements and scalability (2) Process change and organizational redesign (3) Partnership and acquisition In a survey of 65 IT executives, all four types of agility were statistically significantly correlated with enterprise architecture maturity.
  • 17.
  • 18. The Role of the SEO Numbers reflect how many of 12 SEOs we studied defined each responsibility. Enterprise IT & Process Governance (11) Project Design & Implementation (10) Ongoing Operations/ Continuous Improvement (4) Designs Platform Builds Platform Components Leverages Platform
  • 19.
  • 20.
  • 21.
  • 22. Four Stages of Architecture Maturity Standardized Enterprise Processes/Data Standard Interfaces and Business Componentization Enterprise-Wide Technology Standards Locally Optimal Business Solutions Framework Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution , J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Business Silos Standardized Technology Optimized Core Business Modularity Strategic Business Value
  • 23.
  • 24.