2. Think Change What seems like only a ripple today... Can become the wave of the future
3. Overall Model – Foundation for Execution The operating model is the necessary level of business integration and standardisation for delivering goods and services to customers The Enterprise Architecture is the organising logic for business processes and IT infrastructure, reflecting the integration and standardisation requirements of the organisations operating model The IT engagement model is the system of governance mechanisms that ensure business and IT projects achieve both local and company wide objectives
7. Enterprise Architecture for a Unification Model Automating Technologies Linking Technologies Required Optional Business Process Data Technology Customer Types Process Outcome Linking and automating technologies Shared Data Linked and standard (core) processes Key Customers
8. Enterprise Architecture for a Diversification Model Technology Stack Required Optional Business Process Data Technology Customer Types Process Outcome Business-unit-specific customers Business-unit-specific data Shared Processes Shared Technologies
9. Enterprise Architecture for a Coordination Model Required Optional Business Process Data Technology Customer Types Process Outcome Linked Processes Integrating Technology Shared Data Shared Customers
10. Enterprise Architecture for a Replication Model Required Optional Business Process Data Technology Customer Types Process Outcome Business-unit-specific customers Business-unit-specific data Automating and linking technologies Standardised Processes
15. Learning requirements of the Architecture Stages Business Silos Standardised Technology Optimised Core Business Modularity IT Capability Local IT applications Shared Technical Platforms Companywide standardised processes or data Plug-and-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 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 and Business unit Leaders Senior Management and process Leaders IT, business, and industry leaders Key IT Governance Issues Measuring and communicating value Establishing local /regional/global responsibilities Aligning project priorities with architecture objectives Defining, sourcing, and funding business modules Strategic Implications Local / Functional optimisation IT Efficiency Business Operational Efficiency Strategic Agility
21. How Architecture Management Practices Evolve Business Silos Standardised Technology Optimised Core Business Modularity Business Cases Project Methodology Architects on Project Teams IT Steering Committee Architecture exception Process Formal Compliance Process Infrastructure renewal Process Centralised Funding of enterprise applications Centralised standards Team Process Owners Enterprise Architecture guiding principles Business Leadership of project teams Senior Executives oversight IT Program Managers Enterprise architecture core diagram Post-Implementation assessment Technology Research and adoption process Full time enterprise architecture team
24. The IT Engagement Model Companywide IT Governance Company strategy and operations Enterprise Architecture Business unit strategy and operations Business unit architecture Project Plan Project IT architecture Project Management Business IT ALIGNMENT CORDINATION Linking mechanisms Company Level Business unit Level Project team Level
29. Outsourcing Objectives Efficiency Objectives Cost Reduction Variable Capacity / Expertise on demand Architectural Improvement Objectives Re-engineering internal business processes Increase business process discipline Strategic adaption objectives Management focus on competencies Strategic Agility Leverage new IT Mitigate technology risks Technology / expertise transfer
30. Three Outsourcing Models Three mutually exclusive outsourcing Models Strategic Partnership Co-sourcing Transaction What is outsourced Broad responsibility for operational activities Project Management and implementation Narrowly defined, repeatable process Key Metrics Bottom-line impact Project success Quality and/or cost per transaction Client-vendor relationship Negotiated accountability Joint project management Arms length Client Expectations Cost savings; variable capacity; management focus on core competencies Cost savings; access to expertise on demand World-class processes; variable capacity; management focus on core competencies Vendor offerings Capability to deliver broad range of specialised services; integration expertise; disciplined practices; economies of scale Labour arbitrage; project management expertise; expertise on specialised technologies Standard best practice process components; economies of scale; distinctive platforms or assets
31. Different outsourcing relationships are suited to different stages Business Silo Standardised Technology Optimised Core Business Modularity What to outsource Easily Isolated processes IT infrastructure management Project Management of major systems implementations Process design and operation with supporting technology Ideal Relationship Narrowly focused transaction outsourcing Strategic Partnership Co-sourcing alliance Transaction outsourcing Achievable outsourcing objectives Cost Savings IT Management discipline; cost savings; cost savings; risk reduction; management focus Technology / expertise transfer; process discipline and re-engineering; management focus; cost-effectiveness; variable capacity; risk sharing Strategic agility; leverage IT and process expertise for world-class business processes; variable capacity; management focus; cost effectiveness; risk sharing
35. Learning requirements of all five architecture stages Business Silos Standardised Technology Optimised Core Business Modularity Dynamic Venturing IT Capability Local IT Applications Shared Technical platforms Companywide standardised processes or database Plug-and-Play business process modules Seamless merging with partners’ systems Business Objectives ROI of local business initiatives Reduced IT costs Cost and quality of business operations Speed to market; strategic agility ROI of new business ventures 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 Create Self-Contained business components Who defines applications Local business leaders IT and business unit leaders Senior Management and process leaders IT, business, and industry leaders IT, business, and industry leaders and partners Key IT Governance Issues Measuring and communicating value Establishing local / regional / global responsibilities Aligning project priorities with architecture objectives Defining, sourcing, and funding business modules Joint Venture Governance Strategic Implications Local /Functional optimisation IT efficiency Business / Operational Efficiency Strategic Agility Organic Reconfiguration
Three Elements: Key Customers ( i.e. Segments and/or channels) the company serves Key Processes to be standardised and integrated Shared Data – to integrate processes and and serve customers
When developing a Diversification model core diagram, start with the technologies that can be shared to provide economies of scale, standardisation, or other benefits. Incorporate the remaining elements – key customer types, business processes, and data – only when needed for the operating model.
When designing a Coordination model core diagram, start with the key customers (e.g. Segments and channels) to be shared across business units. Next, identify the subset of the company data that must be shared across the business units to serve key customers. Then, identify any technology that is key to the data integration. Finally, consider whether to include business process elements.
When designing a Replication model, start with the key processes to be standardised and replicated across the business units. Next, identify the technologies automating those key processes. Then consider what linking technologies, if any, can be shared across the business units.
Shift from local optimisation to global optimisation – this has an implication on organisation flexibility.
Shift from local optimisation to global optimisation – this has an implication on organisation flexibility.