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

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Benefits

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