1. David Hewitt
Jon Hannahs
Chris Groves
IT/IS ARCHITECTURE &
BUSINESS STRATEGY

2.  IT/IS Architecture and the Human Analogy
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 1 - INTRODUCTION

3.  What is Information Technology Architecture?
Information Technology (IT) Architecture is a blueprint
that is developed, implemented, maintained, and used
to explain and guide how an organization’s IT and
information management elements work together to
efficiently accomplish the mission of the organization.
Source: DOC Enterprise IT Architecture Advisory Group
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 1 - INTRODUCTION

4. Information Technology Architecture Encompasses the
Following:
 Channel Management
 Security and Risk Management
 Communications
 Data Management
 Application Infrastructure
 IT Facilities Management
 IT Management
 IT Architectures and Standards
 IT Education
 IT Research and Development
Source: MIT Sloan Center for Information Systems Research
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 1 - INTRODUCTION

5. A traditional IT Architecture
Implementation:
1. Management decides on the
strategic direction for the
company.
2. IT, in conjunction with the
business unit, develops
technology solutions to
support the new initiative.
3. IT unit delivers the
applications, data, and
technology infrastructure to
implement the solution.
4. This process starts over each
time management defines
another strategic initiative.
This process can go wrong
in 3 ways:
1. The strategy isn’t clear
enough to act upon, so the
company builds IT solutions
rather than IT capabilities.
2. The company implements IT
solutions piecemeal. Each
strategic initiative having its
own IT solution, often with
different systems
implemented.
3. Because IT is reacting to each
strategic initiative, IT
becomes a bottleneck and
never becomes an asset in
shaping the company’s
strategic future.
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 1 - INTRODUCTION
Source: Enterprise architecture as strategy: creating a foundation for business execution.

6. 4 Distinct Architecture Stages:
1. Silos
2. Standardized IT
3. Standardized Business Processes
4. Business Modularity
Source: CIO Magazine
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 1 - INTRODUCTION

7. Chubb Group of Insurance
Companies
 11th Largest Property and
Casualty Insurer
 Network of 120 Offices in 27
countries
 Over 10,200 employees
 $50 billion in assets
 Offer businesses more than 170
commercial insurance
products, tailored to individual
customer needs
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 2 - BUSINESS

8. Chubb Group IT/IS
Challenges
 The company wanted to move from a
localized business unit architecture
to a balanced common infrastructure
serving both enterprise and business
unit needs.
 Each of Chubb’s 5 lines of business
had its own architecture and
architects.
 IT architecture needed to be
standardized across the enterprise
but be flexible enough for each of the
5 lines of business.
 The organization had to learn what
was good to do at the enterprise level
and what was best left to each
business unit.
Reasons for Chubb Group’s
Success
 Established comprehensive IT
Architecture plan.
 Established a Chief Enterprise
Architect.
 Core IT Architects set strategic IT
direction and standards for the
entire organization.
 IT staff viewed as part of the
business team.
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 2 - BUSINESS

9. Nike
 Words largest athletic shoe
company.
 32 percent worldwide market
share.
 $20 billion market cap.
 Sell 120,000 products during 4
cycles of the year.
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 2 - BUSINESS

10. Nike IT/IS Architecture
Challenges
 Nike had 27 order management
systems around the globe.
 Had plan to integrate ERP, SCM and
CRM into single platform.
 Goal to decrease manufacturing cycle
to match ordering cycle.
 Decided to implement SAP’s R/3 ERP,
I2 supply, demand, and planner
software, and Siebel’s CRM software.
 Estimate project cost: $400 million.
 Caused company to produce wrong
products: $100 million in lost sales.
Reasons for Nike’s Failure
 The IT architecture issue was a
problem closely tied to a core
business process (factory orders).
 I2 dealt with predicting demand
which is not part of Nike’s core
business strategies.
 Implemented the i2 system while
still using legacy ERP and SCM
System.
 Didn’t devote enough resources
to i2 System because it was the
smaller of the systems.
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 2 - BUSINESS

11. United Way of Central Ohio
 Largest nonprofit in central Ohio.
 12th largest United Way in
federation of over 1300
 85 employees
 $52 million annual fundraising
campaign
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 3 – COMPANY RELEVANCE

12. United Way Current IT/IS
Architecture
 IT/IS functions spread throughout the
organization.
 Assistant Vice President of
Information Technology highest
ranking IT professional in the
organization.
 Many data silos and legacy systems,
each with their own information.
 Outsource IT/IS technology to a
shared service system used by many
United Ways.
 In Silo phase of IT/IS Architecture.
Recommendations Based
on Research
 Develop map of all systems
within the organization.
 Develop plan to tie systems
together via shared database,
 Involve AVP of IT in Sr.
Leadership Team strategic
planning.
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 3 – COMPANY RELEVANCE

13. IT Architecture and CRM Success
 Components of a properly installed CRM system are a
function of business drivers.
 CRM should help a business evolve into a “customer centric”
operation.
 Too often, businesses focus on the technology and not the
business strategy results.
 Customers increasingly expect instant, 24×7 access to
information and resources. Business must organize their IT/IS
Architecture around the customers desire for 24/7 rich
information.
Source: N2Growth.com
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 4 – BIG 4 SYSTEMS

14. Implementation of MIS Systems and Business Strategy
 Many companies look to the implementation of
CRM, ERP, BI, and SCM as ways to supercharge their business.
 The project loses focus of the business strategy and gets
mired in the success of the software installation.
 Businesses should make sure CRM, ERP, SCM, and BI
consultant understand the business strategy.
 Focus as much on the policies and processes behind the IT/IS
architecture and not just focus on the software and
technology.
Source: SAP-ROI
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 4 – BIG 4 SYSTEMS

15. Is You IT/IS Architecture Geared Toward Web 2.0 and
Social Media?
 Business IT/IS Architecture needs to be flexible for future
growth.
 Having systems that are able to drive business strategy
around Web 2.0 and Social Media openness is important.
 Having a CRM system that enables the company to listen to
customers through social media channels is high priority for
many businesses currently.
 Enabling customer information through the website that gives
the same answers as internal systems are important.
IT/IS ARCHITECTURE & BUSINESS STRATEGY
SUB-TOPIC 4 – BIG 4 SYSTEMS

16.  Gruman, Galen. "The Four Stages of Enterprise Architecture." CIO.com. N.p., 1 Dec.
2006. Web. 29 Mar. 2013. <http:// www.cio.com/article/print/27079>.
 Koch, Christopher. "Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain
Disaster - CIO.com." CIO Magazine. N.p., 15 June
2004. Web. 29 Mar. 2013.
<http://www.cio.com/article/32334/Nike_Rebounds_How_and_Why_Nike_Recovered_fro
m_Its_Supply_Chain_Disaster?page=8&taxonomyId=3207>.
 Myatt, Mike. "Customer Relationship Management | N2Growth Blog." n2growth home
page - CEO Coach . N.p., n.d. Web. 29 Mar. 2013.
<http://www.n2growth.com/blog/customer -relationship-management/>.
 Ross, Jeanne W., Peter Weill, and David Robertson. Enterprise architecture as strategy:
creating a foundation for business execution . Boston, Mass.: Harvard Business School
Press, 2006. Print.
 Smith, Heather, Richard Watson, and Patrick Sullivan. "Delivering an Effective Enterprise
Architecture at Chubb Insurance." MIS Quarterly Executive 11.2 (2012): 75-85. Print.
 Weill, Peter, Mani Subramani, and Marianne Broadbent. "IT Infrastructure for Strategic
Agility." Center for Information Systems Research 329 (2002): 1 - 29. Print.
 Wood, Bill. "CRM, ERP, BI, and IT Investment -- Where Do You Find the Business Benefit?
| SAP ROI -- Enterprise Architecture & Business Solutions." SAP ROI -- Enterprise
Architecture & Business Solutions . N.p., 19 Sept. 2009. Web. 29 Mar. 2013.
http://www.r3now.com/crm-erp-bi-and-it-investment-where-do-you-find-the-business-
benefit/.
SOURCES

17. ?QUESTIONS