Enterprise architecture in transformation
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Iasa and SAEAF jointly presented on the transformation of enterprise through the effective use of Enterprise Architecture and Strategy.
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Enterprise architecture in transformation
- 8. Enterprise architecture is the organizing logic for business processes and IT infrastructure reflecting the integration and standardization requirements of the company's operating model.
- 9. “there were no more worlds left to conquer”
- 11. I‟m faced with waves of technology and hype Social Networking Utility Computing Enterprise 2.0 Green IT SLA TOGAF EA Web 2.0 SaaS Virtualisation Utility ESB OO Cloud SAAS PAAS EAAS IAAS NAAS
- 12. I‟m responsible but not in control
- 13. I feel like a fish out of water
- 19. Enterprise Enterprise Architects Business Information Architects Architects Business Capability Software Architect Infrastructure Architects Data Center Software Software Architect Architect
- 21. Business Technology Strategists we own technology strategy we empower other roles citizen we create shareholder value customer
- 22. strategy [ˈ strætɪdʒɪ] n pl -gies 1. skillful use of a stratagem 2. a plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result
- 23. Determine Strategy Style Bus. Model NABC Canvas Strategy Strategy Map Canvas
- 24. Determine Strategy Style • How do innovative behaviors in strategically conservative firms differ from those in firms that are less conservative? • Are the former less innovative than the latter, or do they simply target their innovative activities to different areas of the value chain?
- 25. Miles and Snow‟s Strategy Typology Defender Analyzer Prospector Reactor
- 26. Competitive Advantage Porter’s Strategy Typology Low Cost High Cost • Maximize performance by striving to be the low cost producer in an industry Broad Overall Cost Differentiation Leadership Competitive Scope • Maximize performance by differentiating line of products or services from those of other businesses Narrow • Either approach can be Differentiation Cost Focus accompanied by a Focus focus of organizational efforts on a given segment of the market
- 27. Carlson & Wilmot NABC • Need • Approach • Benefit • Competitive Alternatives
- 28. Osterwalder & Pigneur Business Model Canvas • Your business model on 1 page • Test new business models
- 29. Describing your business model The business model canvas KEY KEY OFFER RELATIONSHIPS CLIENTS PARTNER ACTIVITI ES What„s your What are your relationship to core activities What„s your the customer? and processes? Who„s your offer? What„s your You are your customer? image? main Which „jobs to Which suppliers, KEY be done“ do partners and RESOURCES CHANNEL customer you satisfy? S alliances? segments do you serve? What are your How do you main assets and reach your competencies? customers? COST CENTRES REVENUE STREAMS What is driving How do you cost? make money? Source: Canvas by businessmodelgeneration.com
- 30. Norton & Kaplan Strategy Map
- 31. Employee Learning & Growth Perspective Perspective Objectives Metrics Initiatives Stadium Revenue Increase Stadium Increase Owner Revenue Licensing Revenue Market Value (Financial) Empty Seat Count VIP for a Day Promotion Increased Fan Reduce Grow Fan # Season Ticket Fan Holders Season Ticket Holder (Customer) No-Shows Base Loyalty Incentives Promotion Fan Site Feedback Tickets posted for Ticket Vendor Resale Integrations Game Ticket Resale (Operations) Process Tickets Resold Implement Customer Interface/Promotion Tech Readiness Tech & Tools Training Employee Learning & Train IT Team Identify Ticket Regulatory Awareness Infrastructure, Growth to Website Systems Ready Build/Support Vendors Tech Acquisitions Strategic Awareness What capabilities and tools do our employees need to help them execute our strategy?
- 32. Mauborgne & Kim Blue Ocean Strategy Do we know how to: “Create Uncontested Market Space and Make the Competition Irrelevant?”
- 33. [yellow tail] Blue Ocean Strategy
- 36. Skill Taxonomy Enterprise Architecture Software Infrastructure Information Business Architecture Architecture Architecture Architecture Foundation Body of Knowledge Design Human Dynamics Quality Attributes IT Environment Business Technology Strategy The use, disclosure, reproduction, modification, transfer, or transmittal of this work without the written permission of IASA is strictly prohibited. © IASA 2009
- 37. The Principles of Architecture Value • Estimated/real • Perception • Progress against goal Progress Skills • Goals • Gap analysis • Current staffing levels • Status since inception • Performance tracking Coverage • Scope • Context • Situational analysis
- 38. The Components of Architecture Artifacts • Documents • Deliverables Processes Management • Custom or • Governance Standard • Organization • Activities • Reporting structure • Maturity model People • Specialization • Customers • Interaction
Editor's Notes
- What is business transformation?Both positive and lasting
- Common view of EAModeling of people, process and technology
- What do we transform- People, process and technology
- legitimacy
- So this all sounds perfect we are in control we are a profession, we own technology strategy, we are the masters of the universe and the business value us, in fact they prize us because we make everyone better. They really do want to look at us like that and everyone is telling them how strategic we are; look at the transformation your own organisation is undertaking, you’re a
- All we seem to be doing now is taking orders and the food we serve doesn’t taste great, it comes out cold, people get served at different times, and the ingredients are changing daily
- How do we set a target- innovation
- Iasa view of EABusiness leadership through value ownership founded in technology
- There are 5 value componentsROIConstituent Value
- A quick set of definitions:Financial Statement - include the Income Statement, Balance Sheet, Statement of Shareholders' Equity, Statement of Cash Flows, and Footnotes. Income Statement – provides an overview of all cash-related activities for a given period of time. It includes operating activities such as depreciation and changes in liabilities, investing activities such as capital expenditures, and activities such as paying dividends or buying or selling stock.Earnings per Share – total earnings or net income divided by its shares outstanding. Cash Flow Statement - provides an overview of all cash-related activities for a given period of time. It includes operating activities such as depreciation and changes in liabilities, investing activities such as capital expenditures, and activities such as paying dividends or buying or selling stock.Free Cash Flow - the cash a company produces from its operations less the cost of expanding its asset base. Operating Margin - Operating Profit divided by Revenue (or Sales).Operating revenue – the revenue realized from day-to-day operationsMarket Capitalization - the overall price of the company as measured by the price of all outstanding shares. It's calculated by multiplying the share price by the number of shares outstanding.
- We do this through managed technology innovation for value generation
- Value and strategy should move up to the c-suite
- The word “strategy” descends directly from the Greek word for “General” or “Commander”. Its history is almost entirely related to military usage, and yet today we find it used in the business world all the time. Strategies are the domain of the executive suite, the modern day Generals of the corporate world. It is common to find military analogies in use in the world of business, and Sun Tzu's 2500 year old Chinese text The Art of War is still recommended reading for executives. An aspiring architect would do well to read (and re-read) this classic text on strategy. A strategy in today’s usage refers to a plan to achieve a goal. Specifically, IASA defines strategy in the following way: strat·e·gy skillful use of a stratagema plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result
- This concept encompasses listening to shareholders and stakeholders to distinguish what type of initiative is appropriate for the desired results.
- Shareholder/stakeholder behaviors and motivations will direct toward a style of strategy which can be best determined through listening & observational human dynamic skills. There are different strategy styles depending on which end of the conservative/risk spectrum an organization’s leaders tend to reside. Tailoring strategy communication to their receptivity allows for the best alternatives to be presented and stakeholder ownership attained.
- Strategic typologies which might be called as theories of different strategy types emerged as an important research area in strategic management.Miles and Snow (1978) established a research on the strategies that organizations employ in solving their entrepreneurial, engineering, and administrative problems. Their famous strategic typology introduced four strategic types of organizations: Defenders, Analyzers, Prospector, and Reactors.
- Another strategy typology that is popular in the literature is known as “Porter’s model”. According to Porter's framework, a business can maximize performance either by striving to be the low cost producer in an industry or by differentiating its line of products or services from those of other businesses; either of these two approaches can be accompanied by a focus of organizational efforts on a given segment of the market
- Reference: Carlson and William W. Wilmot, Innovation: The Five Disciplines for Creating What Customers Want, Crown Business (August 8, 2006)A NABC to describe learning the NABC:Need - Organizationsneed to shape their most important products, services, and initiatives, and to be able to speak about these projects in a more clear and compelling way (NABC can help your team reframe their thinking from product-centric (push-systems) to customer-centric (pull-systems))Approach - Our focus is on learning how to apply innovation tools, especially a simple innovation process called the NABCBenefit – Higher value communication with stakeholdersCompetitive Alternatives – Business as usual: will what worked for the last 5 years promote the next 5?
- HIDDEN SLIDE! Unhide if you decide to not do this exercise (e.g., due to time constraints) but want to supply an example NABC.
- Reference: http://www.businessmodelgeneration.com/bookThe Business Model Canvas, is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model.http://www.businessmodelgeneration.com/canvas
- Reference:Robert S. Kaplan and David P. Norton, Having Trouble with Your Strategy? Then Map It, Harvard Business Review (January 15, 2009)
- What kind of culture, teamwork, and alignment?
- Reference:W. Chan Kim and Renee Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant (February 3, 2005)NOT A SILVER BULLETIt does take workThe examples in the book and case study are easy after the factNot as simple as just duplicating what is in the bookIt is an example of executives working together, making some tough decisions and then using the tools to implement and change courseRequires understanding of customers and markets. Often requires research to confirm.“Create Uncontested Market Space and Make the Competition Irrelevant?”We’re not taught this in business school.When we first read this, we thought it was arrogant- no one had talked like this – not taught in B School- these are different tools. Most people don’t know them.The tools are about taking advantage of paradigm shifts. We have successfully used these tools, and continue to work with such organizations as the NFL and MicrosoftMuch of our approach is about 2 dimensional market spaces – we have the opportunity to expand markets and categories by finding the Blue Spaces
- Basically focus & advertise [yellow tail] toward the Beer crowd.
- Build a set of goals for the engagementDefine roles/skillsAssess current capabilityDefine roadmapDeliver – community, training, certification, complianceReview and Adjust