www.pwc.com

Programme PembudayaanEA & ISP KKM

S f l I l t ti f EA

December

Successful Implementation of EA

December 2014

PwC

AGENDA

• A Quick Definition• Overview of EA Implementation in Malaysia• Overview of EA Implementation in Malaysia• Where Do we Start• Learning from Other Agencies• Benefit RealisationBenefit Realisation

2

A quick recap on Definition of EA

3

We are careful about our use of the term “Enterprise

A quick recap

We are careful about our use of the term “Enterprise Architecture” in order to avoid ambiguity

As a Discipline - Enterprise Architecture is a discipline for systematically understanding, planning, aligning and enabling relationships among strategy, business capabilities information and technology business capabilities, information and technology.

As a set of Deliverables – Enterprise Architecture documents direction and standards on how the organization should be designed and transformed to achieve a desired outcome. These deliverables are then used to govern enterprise transformation.

As a Depiction – Enterprise architecture is a set of integrated models at appropriate levels of abstraction that represent the current and/or future functioning of the organization.

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Key conversations to identify issues where Key conversations to identify issues where Enterprise Architecture would need to considered

Is there a clear vision

Are investments

Are projects delivering

Is technology

Is business value being

How do you integrate the clear vision

and strategy for technology in the Enterprise?

investments in technology realising their potential?

delivering technology solutions successfully?

technology cost effective, or can more be done for a lot less?

value being harnessed from new and emerging technologies?

integrate the IT in a merger or acquisition?

Enterprise? potential? lot less?

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What EA means to an OrganisationWhat EA means to an Organisation

A more efficient business operation: • Lower business operation costs Lower business operation costs • Business capabilities shared across the organization • Lower change management costs • More flexible workforce

I d b i d i i • Improved business productivity

A more efficient IT operation: • Lower software development, support, and maintenance costs Lower software development, support, and maintenance costs • Improved interoperability and easier system management • Improved ability to address enterprise-wide issues like security • Easier upgrade and exchange of system components

Better return on existing investment, reduced risk for future investment: • Reduced complexity in the business and IT • Maximum return on investment in existing business and IT infrastructure Maximum return on investment in existing business and IT infrastructure • The flexibility to make, buy, or out-source business and IT solutions

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Why Isn't EA more prominent in the eyes of Health

A quick recap

Why Isn't EA more prominent in the eyes of Health Leaders ?

One reason is the current preoccupation with operational issues both people and funding are so heavily tied to EMRs and quality metrics that organizations are struggling to find capacity for quality metrics that organizations are struggling to find capacity for much else.

Another reason is the industry's general preference for buying Another reason is the industry s general preference for buying as opposed to building (except real estate). Unlike many other technology-related areas, EA is not a commodity, and it can only be matured through internal investment It's also not just a technology matured through internal investment. It s also not just a technology issue.

Let's be honest -- EA is not broadly understood yet.y y

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Positioning of Technology Strategy vs EAPositioning of Technology Strategy vs. EA

StrategyTechnology S l Business Goals , Plan

Enterprise Strategy

Technology BusinessStrategy Supply, Availability etc

,Needs etcPlan Business Strategy Technology Business-

Enablement Strategy

Enterprise Architecture

Business Architecture• Structure• Process

Technology Architecture• Applications• Data

Design• Process• People• …

• Data• Network• …

Transition Plan & Governance

DeliveryProject/Portfolio Management, IT Solutions, Individual Projects etcExecution

PwC 8March 2014

Key Benefits of EA Implementation

9

The typical benefits realized from mature EA

Benefit realisation

The typical benefits realized from mature EA organizations have been significant

Value Drivers Typical Benefits*

• Governance and delivery assurance

• Improved compliance disaster

•60-70% improvement in delivering business value of projectsAlignment

1Improved compliance, disaster recovery, and security •30-40% of IT budget re-allocated to

strategic investments

• Richer customer experience, satisfaction, and retention

• Shared business data and platforms

•10-15% improvement in customer conversion rates

•7-10% increase in sales revenueInnovation2

• Shared business data and platforms

• Accelerated adoption of pioneering technologies

•7-10% increase in sales revenue

•45-60% improvement in product design to launch cycle time

Innovation

PwC 10*Source: PwC Engagement results, across multiple industries

Benefit realisation

The typical benefits realized from mature EA organizations have been significant

Value Drivers Typical Benefits*

• Re-use through repeatable, scalable solutions

A l t d i iti i t ti

•15-25% reduction in operating costs3• Accelerated acquisition integration

• Reduced complexity and operating cost

• Disciplined execution with reduced

•20-25% reduction in system support and maintenance costs

•20-30% improvement in service levels

Agility

3

Disciplined execution with reduced delivery time and cost

•20-30% improvement in service levels

PwC 11*Source: PwC Engagement results, across multiple industries

A quick overview of EA in Malaysian Public Sector Public Sector

12

How mature is EA in the Malaysian Public Sector?Architecture

Frameworks, Principles & Processes

As expected, EA in the Malaysian Public Sector is still very much in its infancy

How mature is EA in the Malaysian Public Sector?#1

1.62 2.463

4

5

Architecture Vision

Performance Metrics

y f ywith the Public Sector just starting to embark on formalising EA practices

5 out of 9 f th EA d l i

#9

2.011.69

1.54

0

1

2Business, Data, Ap

plication & Technology Architecture

Requirements Management

Objectives

5 out of 9 of the EA areas assessed are only in an Initial or limited ad-hoc state.

The remaining 4 out of 9 EA areas are in a li d b id l d d d

2.12

1.952.16

1.67

Opportunities & Solutions

Architecture Change

Management

Formalised state but are not widely adopted or measured.

#1 Architecture Vision is the most mature EA area, most likely resulting from the mature

Migration Planning

Implementation Governance

ICT Strategy Planning across the Government

#9 Performance Metrics or KPIs was the

weakest EA area which is unsurprising given the weakest EA area which is unsurprising given the infancy of the other EA areasAverage

(1.91)

2 –F li d

3 –U d

4 –M d

5 –O ti i d

1 –I iti l

0 –N

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Formalised Used Measured OptimisedInitialNone

Adoption of an EA Framework is in its infancy

• 84% of Ministries/Agencies surveyed have

Adoption of an EA Framework is in its infancy across the Public Sector

4% 2%S i l no formal recognised EA Framework:

• 80% of Ministries/Agencies surveyed have no formal EA Framework at

80% None

4% Unrecognised

US National Health Institute

(NHI) Model

2%Zachman

all and are conducting Architecture on an ad-hoc or unstructured basis

• 4% of the respondents stated that they d d k

3

31 1 2

Zachman

6%Proprietary

6%TOGAF used a non-recognised EA Framework

such as ISO/IEC 270001: 2007 Information Security Management System (ISMS)

3TOGAF

Enterprise Architecture Frameworks System (ISMS)

• 16% of Ministries/Agencies surveyed have a recognised EA Framework41

A standard Government-wide EA Framework is required to ensure a common Architecture dialogue and Methodology

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ensure a common Architecture dialogue and Methodology

Standardised EA Tools are not widely adopted yet

• 31% of respondents have no EA

Standardised EA Tools are not widely adopted yet

2% SAP Sybase PowerDesigner

2%Sparx Systems Enterprise Architect

% 31% of respondents have no EA Tools at all with a further 56%only currently having access to Microsoft Visio for basic

31% None

PowerDesigner2%QPR Enterprise Architect

5%IBM Rational

System Architect Microsoft Visio for basic Architecture modelling.

• EA Tool adoption is very sporadic with each

171

31 1 12%

CA Gen EA

sporadic with each Ministry/Agency choosing its own distinct tool set

EA Tools

• Of the 69% who do use an EA Tool, only 18% with EA Tools actually use them

3156%Microsoft Visio

A standard set of EA Tools provides for compatible, re-usable Architecture Designs and understanding

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Architecture Designs and understanding

There’s a lack of EA Certified individuals across

• EA Certification is

There’s a lack of EA Certified individuals across the Public Sector

2% EA Certification is important in understanding and helping drive the development of EA however

80%No Certified

2%>20 Certified2%

10<Certified<=20

16%C ifi d

81 1 development of EA however

80% of Ministries/Agencies responding have no EA C ifi d E lEA Certified

0<Certified<=5

Certified Employees

• Only 20% currently have employees with EA Certification

EA Certified Employees at

Ministries/ Agencies

39

employees with EA Certification with the majority having between 1 and 5 Certified EA employees

g

employees

EA Certified resources are needed to steer the implementation of h i i i i d i i h f d l

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the 1GovEA initiative and to assist with future development

Our overall view on EA Maturity in the Public SectorOur overall view on EA Maturity in the Public Sector

EA Frameworks Tools

• Only 16% Ministries/Agencies have a defined EA Framework

• There is no Government-wide EA F k t d d ith A i

• EA Tools are not widespread or standardised

• Only 18% of Agencies which have EA Tools t ll thFramework standard with many Agencies

having proprietary Frameworks

Governance

actually use them

Standards• There are too many Technical Standards

• Only 17% of Agencies have an Architecture Governance structure

• There is very little Enterprise hi G d

defined at Agency-only level

Skills

• Only 20% of Agencies have EA certified Architecture Governance and no Government-wide Governance Structure

• Only 20% of Agencies have EA certified Architects with the vast majority of those having less than 5 Certified Architects.

Overall, there is no standardised approach to EA across the Public Sector – Each Ministry/Agency has developed

their own practices and processes or not at all

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p p

t tTo success, you must know where to you start ??

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Launching EA project starts with having the right Where to start ?

Launching EA project starts with having the right focus

1 2 3 4Define

Ri ht FStart S ll

Use Tool and Manage

Apply Organisational

Right Focus Small Manage Knowledge

Gaps

gChange

Management Throughout

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Focus should be demand and opportunity

Where to start ?1

Focus should be demand and opportunity driven

Boil the Ocean “Focus”

Demand-Driven Focus

.vs

Create services without clear linkage to business problem Aligns with business needs and

is of material significance

1 1

Create set of processes that are not used

d

f g f

Is practical and able to be achieved

D l i kl

2 2

3Burns out resources due to focusing on too many things at once

Demonstrates value quickly

Builds early commitment and momentum for EA

3 34

Causes analysis paralysis

Exhausts EA budget rapidly

Limits investment exposure4

55

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Start small pilot iterate learn & expand

2

Start small, pilot, iterate, learn & expand

EA Capability Rollout Model

m Starts small and selects a program / project with EA challenges to rapidly put new model into actionL

ongT

erm 1

new model into action

Iterates EA capabilities during piloting efforts before

lli l f

L

2rolling out to next layer of IT

Builds early credibility by demonstrating quick results

3

r T

erm

demonstrating quick results

Establishes platform and allows for incorporation of k l l d t Pilot

4

Organizational Reach

Nea

r

EnterpriseProject

key lessons learned to facilitate rollout to other areas

Pilot (1 prj )

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Organizational Reach

U T l d d fi k l d G

3

Use a Tool and define knowledge Gap

It is true, “a fool with a tool is still a fool.” In our teaching and consulting practice we have found; however, that adoption of a flexible and easy to use tool can be a strong driver in pushing the EA initiative forward.

1

EA brings together valuable information that greatly enhances decision making, whether on a strategic or more operational level. This k l d t l d t b ffi i tl d d i t i d it l

2knowledge not only needs to be efficiently managed and maintained, it also needs to be communicated to the right stakeholder at the right time, and even more importantly, in the right format.

EA has a diverse audience that has business and technical backgrounds, and each of the stakeholders needs to be addressed in a language that is understood by all

3understood by all.

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Ch i

4

Change is necessary

• Ensuring the continuity of programme management through a dedicated change management office upon the completion of projects.projects.

• Continuous involvement of leadership level, execution and monitoring of change management activities to maximise benefits realisation.benefits realisation.

1. Create awareness and understanding on EA

2 Ensure continuity and consistency of the change 2. Ensure continuity and consistency of the change programme

3. Ensure smooth and uninterrupted delivery of the EA implementationimplementation

4. Establish a model for Change Management implementation in your Agency

PwC 23Early engagement with Business Users is important

For success you must know what are your For success you must know what are your Critical Success Factors ….

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Critical Success Factors for successful Critical Success Factors for successful implementation of EA project

Availability of the Availability of the identified identified resources from ITresources from IT

Skilled Team Skilled Team Training andTraining and

Firm and Firm and continuous topcontinuous top-- resources from IT resources from IT

and Business in and Business in undertaking EA undertaking EA related workrelated work

Training and Training and Education are Education are keykey

continuous topcontinuous topdown support down support and and commitmentcommitment

Close monitoring Close monitoring and tracking of and tracking of project progress project progress including theincluding the

Clearly Clearly defined, agreed defined, agreed and communicated and communicated project scope andproject scope and

Strong Strong Governance and Governance and methodology methodology ToolsTools including the including the

project issues and project issues and risksrisks

project scope and project scope and the expected the expected deliverablesdeliverables

ToolsTools

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What can we learn from EA implementation at other Agencies ?g

26

Key Lessons Leant from the EA implementation of 5 Key Lessons Leant from the EA implementation of 5 Agencies in Malaysia

Reasons for embarking on

• Agencies are clear on the reasons for embarking on EA (e.g. the need to streamline and embarking on

EAembarking on EA (e.g. the need to streamline and align business process with IT)

EA • A defined framework have been used to develop the EA Blueprint (e g TOGAF Zachman Framework develop the EA Blueprint (e.g TOGAF, Zachman, proprietary framework)

EA • Elements of EA governance exist in the blueprint. i f i h h EA

Governance However, in few instances, the governance have not been able to be implemented

l • Most agencies have not defined/implementedEA Tools Most agencies have not defined/implementedEA tools to support the EA operation

Training • Agencies have few personnel with EA knowledge h th b k th EA bl i t d l t

PwC 27Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

Training when they embark on the EA blueprint development.

Key Lessons Leant from the EA implementation of 5 Key Lessons Leant from the EA implementation of 5 Agencies

C• Follow up programmes (after EA Blueprint has been

bli h d)Commonissues & challenges

established)• Establishing and maintaining continuous awareness on EA to

the business users• Essential knowledge on EA among the project team membersEssential knowledge on EA among the project team members

PwC 28Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

What can we learn from EA implementation at other Countries ?

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Overview of EA implementation at Other CountriesOverview of EA implementation at Other Countries

South Korea

K G t EA (KGEA)

United KingdomCross Government EA (xGEA )

• Tagline: “Transformational Government-Enabled by Korean Government EA (KGEA)

• Mandated public entities to adopt EA in 2005

• 15,000 information systems have been registered in the Government’s EA portal (GEAP)

g yTechnology”

• Key focus areas:IT services designed around citizens and businessesShared services approachBroadening Government’s professionalism

• Developed in 2005 updated in 2012

SingaporeSingapore EA (SGEA)

• Key enabler in realising Singapore’s eGOV2015

Government s EA portal (GEAP)• 84% Koreans used eGovernment

services in 2012• Developed in 2005, updated in

2010

• Developed in 2005, updated in 2012

Key enabler in realising Singapore s eGOV2015 Master Plan

• Aims at establishing an effective and innovative workforce and inter-agency collaboration

• Developed in 2002, updated in 2010

United StatesFederal EA Framework (FEAF)

• EA framework for US Federal A iAgencies

• An initiative established due to Clinger-Cohen Act 1996.

• Developed in 1996, updated in 2012

AustraliaAustralian Government Architecture (AGA)

• Aims to assist in the delivery of more consistent and cohesive services to citizens; and

• Support cost-effective delivery of ICT services by

New ZealandGovernment EA – New Zealand (GEA-NZ)

• Framework to describe common business processes, ICT capabilities and solution to optimise

pp y yGovernment.

• Developed in 2007, updated in 2011

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Government’s service delivery• Uses a “Just Enough” approach towards establishing an EA framework• Developed in 2003, updated in 2013

C I & Ch ll f d b h C iCommon Issues & Challenges faced by the Countries

B i / t t i h i i t ti ff t Business • Business processes are agency/system centric hampering integration efforts. Business Processes

• Too focused on building & operating infrastructure neglecting management and strategy portion;

• Services are too agency-centric discouraging reuse; andICT

Organisation & W kf

g y g g ;• Similar system capabilities are still found duplicated across Agencies.& Workforce

• ICT initiatives & investments are agency-centric driven; and• Short term investment planning & heavy towards infrastructure and purchase &

maintenance of capital assets.Investment

p

• Fragmented & inconsistent accountability & responsibilities;• Information & data is stuck to specific applications; and• Information management legislation, policy & practices have not been designed for non-digital

formats.

Information Management

• Slow adoption rate of information security standards.Security & Privacy

Technology • Difficulty in standardising technology implemented across Agencies.Technology Platforms

• Projects are too large, expensive & high-risk for a single Agency; and• Common issues of overspending & delaysProjects

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• Common issues of overspending & delays.j

Lessons Learnt that is Shared by the CountriesLessons Learnt that is Shared by the Countries

Countries Lessons LearntCountries Lessons Learnt

SKImplementation & advancement of EA framework was not completed in a single stage • A strong governance g g g

mechanism builds the foundation;

• Revision of components within the implemented EA

UK Address all political issues at the start of the EA initiative

US Additional attention required for the pFramework is necessary to keep up with advancement;

• Focus on key areas of interest or is most beneficial;

US evaluation model on maturity and cost

SGIncreased outsourcing have drained architecting/design expertise maturity within the Agencies/Ministries ;

• EA should be driven by the entire organisation (Business & IT); and

• EA programmes should not be

within the Agencies/Ministries

AU• Assignment of accountability to the

right party is key; and• Sharing mechanism cross-agency is

i t tp g

disconnected / isolated from the organisation.

important

NZ• Realistic approach to achieve ICT goals• Development of a Maturity

Assessment Model

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Standard Principles & Guidelines of EA

Principles / Guidelines SK UK US SG AU NZ TOGAF

Standard Principles & Guidelines of EAN/A – Not Apparent

GuidelinesCommon Vocabulary & Data Dictionary

√ √ √ √ √ √ √

Data is Accessible √ √ √ √ √ √ √Data is Accessible √ √ √ √ √ √ √

Data is Shared √ √ √ √ √ √ √

Interoperability √ √ √ √ √ √ √

Maximise Benefits √ √ √ √ √ √ √

Common Use Apps √ √ √ √ N/A N/A √

E f U √ √ √ √ N/A N/A √Ease-of-Use √ √ √ √ N/A N/A √

Information Management is Everyone’s Business

√ N/A N/A √ √ √ √

Business

Data is an Asset N/A N/A √ N/A √ √ √

Data Security N/A N/A √ N/A √ N/A √

Business

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Business Continuity N/A N/A √ N/A N/A N/A √

Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)33

Success story of South Korea

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South Korea’s EA VisionSouth Korea’s EA Vision

• Customer-centric citizen services and enhanced public participation;

• Intelligent administrative services through digital government network;

• Real-time public safety information network; and

• Strengthened e-Government infrastructure through enhanced privacy and g g p ysecurity.

“South Korea’s Vision for Enterprise Architecture is to have an f pintegration of e-Government systems for seamless delivery to

the public [1]”

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Successful Implementation of EA in South Korea?Successful Implementation of EA in South Korea?South Korea had an impressive e-Government journey in the past decade. It leaped from 13th place on the UN E-Government Study to 1st place in a gap of 8 years. Its stunning development phase was di id d i t h G t I f t t d l t ( 8 ) f ll fl d i l t ti f divided into 3 phases; e-Govt Infrastructure development (1987 – 2002), full-fledge implementation of e-Govt (2003-2007) and further advancement of e-Government (2008-2012).

Rank Country E-Government Development Index• Ranking

S h K k t i h ld G 1 Republic of Korea

0.9283

2 Netherlands 0.9125

3 United Kingdom 0.8960

[1]South Korea ranks 1st in the world e-Government ranking

• Strengths/Best PracticesT k d h i b ildi d 4 Denmark 0.8889

5 United States 0.8687

6 France 0.8635

7 Sweden 0.8599

8 Norway 0 8593

Took a staggered approach in building towards a unified solution;The stunning development on SK’s e-Govt is a result of years of planning and execution without losing i h f h bi i 8 Norway 0.8593

9 Finland 0.8505

10 Singapore 0.8474

11 Canada 0.8430

12 Australia 0.8390

sight of the big picture

• Similarities to MalaysiaJust like Malaysia, SK started with a similar

i i b k i th 6 d [2]

[1] – United Nationals E-Government Survey 2012 – World e-Government rankings

13 South Korea 0.8381

40 Malaysia 0.6703

economic size back in the 60s and 70s[2]

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[2] – World Development Indicators, http://databank.worldbank.org/data/views/reports/tableview.aspx#, 2014 (accessed 19 February 2014)

EA Benefits Observed for South KoreaEA Benefits Observed for South Korea

• Benefits Planned[1]Benefits PlannedCitizen-centered Govt Service: Addressing inconvenient processes & enhancing satisfaction levels;Market-based e-Govt for the Private Sector;Achieving a Transparent & Efficient Govt; andCost Saving from an e-Govt System.

• Benefits Realised[2]

$ 88.8 million saved by reviewing the 2010 national IT investments based on EA;EA-based IT management established;gA commanding view on the government’s IT resources (4,214 systems, 10,854 hardware, 5,393 software, etc); and413 data redundancies detected using 1,569 standard data defined in DRM.

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[1] – Korea’s e-Government Completion of e-Government Framework, South Korea, Special Committee for e-Government Republic of Korea, 2003, pp. 28-40

[2] - Korea e-Gov’t : Government EA(Enterprise Architecture) & e-Gov’t standard Framework, South Korea, National Information Society Agency, 2011, p. 14

Thank YouThank You

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