Today, in the era of digital economy and the need for constant digital business transformation, the relevance of Enterprise Architecture (EA) tools and methods to strategic management tasks increases. According to the latest research, strategic decision‐makers face a significant number of problems, which potentially can be successfully resolved with the help of EA. This paper is a review of potential application of EA methods and technologies to support strategic management process. The main research method for this paper is an exploratory literature review focused on the evolution, classification and functionality of EA methods with subsequent analysis of relevant problems from the field of strategic management. This result is an intermediate point for the further research which may add considerable value to both researchers and practitioners.
For citation: Kudryavtsev D., Kubelskiy M. Using enterprise architecture management methods and technologies for knowledge structuring in strategic management. Proceedings of Theory and Applications in the Knowledge Economy (TAKE 2017), July 12-14 2017, Zagreb, Croatia. pp. 589-599.
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
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
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