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STRATEGIC VISION AND 2007/08 ACADEMIC YEARUsing Enterprise Architecture
Management Methods and Technologies
for Knowledge Structuring in Strategic
Management
Dmitry Kudryavtsev, Associate Professor
Miroslav Kubelskiy, PhD student
Graduate School of Management Saint-
Petersburg State University
TAKE 2017
3
Evolution of strategic management
Stage 1
1960s – the first
half of 1970s
Stage 2
Mid-1970s – 1980s
Stage 3
Late 1980s –1990s
Stage 4
2000s
The dominant
concept of
successful
strategies
Planning Positioning Resource-based
Dynamic
capabilities
New notions and
concepts of
strategic
management
• The strategy of the
firm
• Corporate strategy
• Strategic planning
• Strategic
management by the
firm
• Economic efficiency
of strategies
• Typical competitive
strategies
• External control of
the firm
• Resource base of
the firm
• Organizational
capabilities and key
competencies of the
firm
• The fundamental
problems of the
theory of "strategic
management"
• Dynamic
capabilities of the
firm
• Knowledge
Management
• Network
organization
Sources of
competitive
advantage
Internal (strengths
and weaknesses of
the firm)
External (the structure
of the industry and
environment of the
firm)
Internal (resources
and capabilities of the
firm)
Joint development
of internal and
external
Main authors
A. Chandler, I.
Ansoff,
K. Andrews, et al.
M. Porter, R. Ramelt,
D. Shendel, K. Hatten,
C. Hofer, et al.
B. Wernerfelt, K.
Prahalad,,, J. Barney,
R. Grant, et al.
D. Tees, S. Winter,
I. Nonaka,
H. Takeuchi, et al.
Source: Katkalo, 2006
5
Challenges of strategic management
Source: Eppler & Platts, 2009
Cognitive
- Information overload
- Stuck in old view points
- Biased comparison and evaluation
- Paralysis by analysis
Social
- Diverging views or assumptions
between team members
- Incomplete communication of basic
assumptions
- Coordination difficulties
Emotional
- Lacking identification with strategy
- Employees should perceive the strategy
as something worthwhile pursuing
- The strategy needs to be communicated
to employees convincingly
Eppler, M. & Platts, K. (2009). Visual strategizing: the systematic use of visualization in the
strategic-planning process. In: Long Range Planning, 42(1), pp. 42-74.
6
Benefits of visual strategizing
Challenges of strategic
management
Corresponding strengths of
visualization
Cognitive
Information overload
Facilitating elicitation and synthesis
of information
Stuck in old view points
Visual methods enable reframing,
change points of view and
contribute to perspective switching
Biased comparison and
evaluation
Better, more exhaustive
comparisons
Paralysis by analysis
Visualization helps to remember the
current strategic conversations
Source: Eppler & Platts, 2009
… but not only representation form is
important
• Examination of the cause-and-effect-
relationships between different strategic
measures,
• Coherence or alignment of strategic
initiatives, systemic view,
• Digital economy and a new role of IT.
7
8
Enterprise Architecture (EA)
What is architecture?
9
10
Enterprise Architecture (EA)
Architecture is a …
• … fundamental organization of the system, embodied in
its components, their interrelationships with each other and
with the environment, as well as guidelines for the design
and development of the system (ISO / IEC 42010: 2007).
• … description (model) of the main device (structure) and
links of parts of the system (physical or conceptual object
or entity) (ISO 15704: 2000).
from Building architecture
to Computer architecture
11
- the manner in which the
components of a computer
or computer system are
organized and integrated
From Computer Architecture to IS
Architecture
12
Amdahl G., Blaauw G., Brooks F. (1964) Architecture of the IBM System/360.
In: IBM Journal of Research and Development.
From Computer Architecture to IS
Architecture
13
Amdahl G., Blaauw G., Brooks F. (1964) Architecture of the IBM System/360.
In: IBM Journal of Research and Development.
14
Enterprise Architecture (EA)
(1) The fundamental organization of an enterprise, either as a whole or
together with partners, suppliers and / or buyers (the "expanded
enterprise"), or parts (for example, business direction, department), and
(2) Guiding principles for its design and development
(Opengroup, TOGAF 2003)
(3) EA is based on enterprise modeling and implies documentation of
enterprise strategies, business capabilities, business processes,
organizational structures, and information technologies, and especially their
interaction and dependencies. From representation perspective EA models
include catalogs, matrices and diagrams (TOGAF 2011).
Enterprise architecture (EA) evolution
15
Enterprise
architecture
Technical
Architecture=
Enterprise
architecture
Information
technologies
architecture
=
• Information
• Applications
• Technical infrastructure
Enterprise
architecture
IT architecture= Business
architecture+
IT architecture
Business architecture
Goals & Objectives Metrics Business model
Business
processes
Capabilities
Organizational
structure
…
Enterprise
architecture
1980-s
1990-s
2000-s
2010-s
• Business processes
• Goals & objectives
• Organizational structure
KnowledgeValue
chain/stream etc
Services
• Technical infrastructure
A Guide to the Business Architecture Body
of Knowledge™ (BIZBOK™ Guide)
16
18
Potential for using Enterprise Architecture
to support strategic management
1. What can Enterprise Architecture offer for
strategic management?
2. For what tasks of strategic management
EA can be used?
3. How? Variations of the EA role
depending on the type of business
strategy of the company.
What can EA offer: Visual languages for
organizational modeling
19
20
21
What can EA offer: way of thinking
Architectural Thinking is a
• lightweight (e.g., less formalized),
• utility-centered approach,
that is aimed at
• supporting non-architects and
• people outside the IT function
to
• understand, analyze, plan, transform and communicate fundamental
structures and design/evolution principles of what they perceive as
their work system, i.e.
• to adopt holistic, long-term considerations in their daily decisions.
Source: Winter, 2014
What can EA offer: IT support
23
24
Enterprise Architecture Management (EAM)
tools
Key design
objects
Apps
Data
Infrastructure
Business
processes
Functions
Organization
structure
Strategy
Business
model
CASE tools
BPR tools
Orgware
Strategy design
tools
EAM tools
(Enterprise
Architecture
Management)
+
+
+
1980s 1990s 2000s 2010s
EAM tools as a part of strategic planning toolkit
25
26
28
For what tasks of strategic management EA
can be used? (I/III)
EA has very different coverage and scope of activity in
different organizations. It is possible to distinguish two
different variants of involving EA in the tasks of development
management:
1. EA interacts with the strategy, but does not "cover" the
objects and information needs of strategic management;
2. Strategic management is built on an architectural
approach.
29
In the first case, the EA provides information about the
current state of the organization for strategizing and takes the
results of strategizing to build the appropriate architecture.
The architecture, in this case, can solve three tasks :
1) Identification of the need and potential for changes (when
there is a driver for changes, but no target state is defined);
2) Identification of necessary changes (when the target
state is defined in the strategy language, but the design of
the target architecture is required);
3) Implementation of the necessary changes (EA performs
audit and supervision of the changes being carried out for
their conformity with architectural plans).
For what tasks of strategic management EA
can be used? (II/III)
30
In the second case, the EA practice includes working with the
objects of strategic planning and development management.
For example, (Simon et al. 2014) proposed a business
architecture framework that includes the necessary elements
of strategic management, as well as detailed scenarios for the
use of EA at all stages of the strategic management process:
• strategy formulation,
• strategy implementation,
• strategy monitoring.
For what tasks of strategic management EA
can be used? (III/III)
For what tasks of strategic management EA
can be used? (III/III)
31
(Simon et al, 2014)
32
How? Variations of the EA role depending
on the type of business strategy
Strategy type Grow Experiment Orchestrate Adapt Reinvent
Environment
Stable and
predictable
Unpredictable N/A
Changing
quickly
N/A
Features of
strategy
• Structured
analysis
• Implementing
competitive
advantage
• Search and
creation of
innovations
• Integration into
and influence
the ecosystem
• Flexibility
• Developed
dynamic
capabilities
• Existing
products,
services and
processes no
longer work
• Need a
transformation
Factors of
success
Size,
differentiation or
capabilities
Experimentation
Orchestration
and
collaboration
Ability to adapt
quickly
N/A
EA role Analyst Innovator Connector Conductor Tactician
Main focus
of EA
Detailed
analysis,
planning and
monitoring of
changes
Search for ideas
for innovation,
support for
innovation
processes
External
focusing,
establishing
connections,
integrating
Identification of
areas for
change, support
for changes
Development
and evaluation
of change
options,
transition
planning
Source: McGregor 2016
Conclusions
• Strategic management faces many challenges
today
• Enterprise architecture has overcome the way
from IT infrastructure management through
business & IT alignment to complex support of
enterprise transformations
• Enterprise architecture methods and tools have
serious potential for improving work with
knowledge about a company in strategic
management
34
35
THANK YOU!
Q&A
Dmitry Kudryavtsev
dmitry.ku@gmail.com
Miroslav Kubelskiy
mirqube@gmail.com

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Using Enterprise Architecture Management Methods and Technologies for Knowledge Structuring in Strategic Management

  • 1. STRATEGIC VISION AND 2007/08 ACADEMIC YEARUsing Enterprise Architecture Management Methods and Technologies for Knowledge Structuring in Strategic Management Dmitry Kudryavtsev, Associate Professor Miroslav Kubelskiy, PhD student Graduate School of Management Saint- Petersburg State University TAKE 2017
  • 2. 3 Evolution of strategic management Stage 1 1960s – the first half of 1970s Stage 2 Mid-1970s – 1980s Stage 3 Late 1980s –1990s Stage 4 2000s The dominant concept of successful strategies Planning Positioning Resource-based Dynamic capabilities New notions and concepts of strategic management • The strategy of the firm • Corporate strategy • Strategic planning • Strategic management by the firm • Economic efficiency of strategies • Typical competitive strategies • External control of the firm • Resource base of the firm • Organizational capabilities and key competencies of the firm • The fundamental problems of the theory of "strategic management" • Dynamic capabilities of the firm • Knowledge Management • Network organization Sources of competitive advantage Internal (strengths and weaknesses of the firm) External (the structure of the industry and environment of the firm) Internal (resources and capabilities of the firm) Joint development of internal and external Main authors A. Chandler, I. Ansoff, K. Andrews, et al. M. Porter, R. Ramelt, D. Shendel, K. Hatten, C. Hofer, et al. B. Wernerfelt, K. Prahalad,,, J. Barney, R. Grant, et al. D. Tees, S. Winter, I. Nonaka, H. Takeuchi, et al. Source: Katkalo, 2006
  • 3. 5 Challenges of strategic management Source: Eppler & Platts, 2009 Cognitive - Information overload - Stuck in old view points - Biased comparison and evaluation - Paralysis by analysis Social - Diverging views or assumptions between team members - Incomplete communication of basic assumptions - Coordination difficulties Emotional - Lacking identification with strategy - Employees should perceive the strategy as something worthwhile pursuing - The strategy needs to be communicated to employees convincingly Eppler, M. & Platts, K. (2009). Visual strategizing: the systematic use of visualization in the strategic-planning process. In: Long Range Planning, 42(1), pp. 42-74.
  • 4. 6 Benefits of visual strategizing Challenges of strategic management Corresponding strengths of visualization Cognitive Information overload Facilitating elicitation and synthesis of information Stuck in old view points Visual methods enable reframing, change points of view and contribute to perspective switching Biased comparison and evaluation Better, more exhaustive comparisons Paralysis by analysis Visualization helps to remember the current strategic conversations Source: Eppler & Platts, 2009
  • 5. … but not only representation form is important • Examination of the cause-and-effect- relationships between different strategic measures, • Coherence or alignment of strategic initiatives, systemic view, • Digital economy and a new role of IT. 7
  • 8. 10 Enterprise Architecture (EA) Architecture is a … • … fundamental organization of the system, embodied in its components, their interrelationships with each other and with the environment, as well as guidelines for the design and development of the system (ISO / IEC 42010: 2007). • … description (model) of the main device (structure) and links of parts of the system (physical or conceptual object or entity) (ISO 15704: 2000).
  • 9. from Building architecture to Computer architecture 11 - the manner in which the components of a computer or computer system are organized and integrated
  • 10. From Computer Architecture to IS Architecture 12 Amdahl G., Blaauw G., Brooks F. (1964) Architecture of the IBM System/360. In: IBM Journal of Research and Development.
  • 11. From Computer Architecture to IS Architecture 13 Amdahl G., Blaauw G., Brooks F. (1964) Architecture of the IBM System/360. In: IBM Journal of Research and Development.
  • 12. 14 Enterprise Architecture (EA) (1) The fundamental organization of an enterprise, either as a whole or together with partners, suppliers and / or buyers (the "expanded enterprise"), or parts (for example, business direction, department), and (2) Guiding principles for its design and development (Opengroup, TOGAF 2003) (3) EA is based on enterprise modeling and implies documentation of enterprise strategies, business capabilities, business processes, organizational structures, and information technologies, and especially their interaction and dependencies. From representation perspective EA models include catalogs, matrices and diagrams (TOGAF 2011).
  • 13. Enterprise architecture (EA) evolution 15 Enterprise architecture Technical Architecture= Enterprise architecture Information technologies architecture = • Information • Applications • Technical infrastructure Enterprise architecture IT architecture= Business architecture+ IT architecture Business architecture Goals & Objectives Metrics Business model Business processes Capabilities Organizational structure … Enterprise architecture 1980-s 1990-s 2000-s 2010-s • Business processes • Goals & objectives • Organizational structure KnowledgeValue chain/stream etc Services • Technical infrastructure
  • 14. A Guide to the Business Architecture Body of Knowledge™ (BIZBOK™ Guide) 16
  • 15. 18 Potential for using Enterprise Architecture to support strategic management 1. What can Enterprise Architecture offer for strategic management? 2. For what tasks of strategic management EA can be used? 3. How? Variations of the EA role depending on the type of business strategy of the company.
  • 16. What can EA offer: Visual languages for organizational modeling 19
  • 17. 20
  • 18. 21 What can EA offer: way of thinking Architectural Thinking is a • lightweight (e.g., less formalized), • utility-centered approach, that is aimed at • supporting non-architects and • people outside the IT function to • understand, analyze, plan, transform and communicate fundamental structures and design/evolution principles of what they perceive as their work system, i.e. • to adopt holistic, long-term considerations in their daily decisions. Source: Winter, 2014
  • 19. What can EA offer: IT support 23
  • 20. 24 Enterprise Architecture Management (EAM) tools Key design objects Apps Data Infrastructure Business processes Functions Organization structure Strategy Business model CASE tools BPR tools Orgware Strategy design tools EAM tools (Enterprise Architecture Management) + + + 1980s 1990s 2000s 2010s
  • 21. EAM tools as a part of strategic planning toolkit 25
  • 22. 26
  • 23. 28 For what tasks of strategic management EA can be used? (I/III) EA has very different coverage and scope of activity in different organizations. It is possible to distinguish two different variants of involving EA in the tasks of development management: 1. EA interacts with the strategy, but does not "cover" the objects and information needs of strategic management; 2. Strategic management is built on an architectural approach.
  • 24. 29 In the first case, the EA provides information about the current state of the organization for strategizing and takes the results of strategizing to build the appropriate architecture. The architecture, in this case, can solve three tasks : 1) Identification of the need and potential for changes (when there is a driver for changes, but no target state is defined); 2) Identification of necessary changes (when the target state is defined in the strategy language, but the design of the target architecture is required); 3) Implementation of the necessary changes (EA performs audit and supervision of the changes being carried out for their conformity with architectural plans). For what tasks of strategic management EA can be used? (II/III)
  • 25. 30 In the second case, the EA practice includes working with the objects of strategic planning and development management. For example, (Simon et al. 2014) proposed a business architecture framework that includes the necessary elements of strategic management, as well as detailed scenarios for the use of EA at all stages of the strategic management process: • strategy formulation, • strategy implementation, • strategy monitoring. For what tasks of strategic management EA can be used? (III/III)
  • 26. For what tasks of strategic management EA can be used? (III/III) 31 (Simon et al, 2014)
  • 27. 32 How? Variations of the EA role depending on the type of business strategy Strategy type Grow Experiment Orchestrate Adapt Reinvent Environment Stable and predictable Unpredictable N/A Changing quickly N/A Features of strategy • Structured analysis • Implementing competitive advantage • Search and creation of innovations • Integration into and influence the ecosystem • Flexibility • Developed dynamic capabilities • Existing products, services and processes no longer work • Need a transformation Factors of success Size, differentiation or capabilities Experimentation Orchestration and collaboration Ability to adapt quickly N/A EA role Analyst Innovator Connector Conductor Tactician Main focus of EA Detailed analysis, planning and monitoring of changes Search for ideas for innovation, support for innovation processes External focusing, establishing connections, integrating Identification of areas for change, support for changes Development and evaluation of change options, transition planning Source: McGregor 2016
  • 28. Conclusions • Strategic management faces many challenges today • Enterprise architecture has overcome the way from IT infrastructure management through business & IT alignment to complex support of enterprise transformations • Enterprise architecture methods and tools have serious potential for improving work with knowledge about a company in strategic management 34