Enterprise Architecture is Not About Software, It is About Business
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Transcript of Enterprise Architecture is Not About Software, It is About Business
Our Background
Kevin Vertrees - VP / Enterprise Architect for Forest City Enterprises. Prior to this role, he was the CIO for Forest City Ratner Companies and served as the overall technical lead for their SAP implementation. He is TOGAF 9 certified and is also a musician, farmer, and on the board of several creative and environmental
organizations.
Rich Owen - An IT professional with 35 years of Business and Technology experience; Enterprise Architect (TOGAF 9 certified), SAP Professional (SAP ASAP, Value Management Academy, R3, ABAP), PMI PMP / PMO, ITIL, etc. Co-developed EA organizations starting in 2008 to date, ran multiple PMO’s prior and SAP Consulting practices as well; “gear head” otherwise.
● Forest City Enterprises, Inc. is an owner, developer and manager
of a diverse portfolio of premier real estate property located
throughout the United States. We have assets of approximately
$10.7 billion as of 10/31/12 and operate under three strategic
business units;
● The Commercial Group is Forest City's largest business unit, with
96 retail, office, arena, hotel and mixed-use properties;
● The Residential Group owns and/or manages rental units in urban
and suburban apartment communities;
● Core Markets – Boston, New York City, San Francisco, Philadelphia,
Los Angeles, Washington, D.C./Baltimore, Denver, Chicago and
Dallas.
Community Property System
As architecture influences FCE’s ability to envision, develop and support our communities, properties and building support systems and infrastructure...
Level of detail
Enterprise Architecture
Why would I form an architecture group ?
What methodology or framework should I consider ?
Is specific automated tooling essential for success ?
Any other tips or things to potentially avoid ?
The Typical IT PMO Process ?
Business & IT Boards
Some Level of Strategy and Integration
PMO
Conditions for Success
Fin
ance
Strategic Planning
Solution Deployment
Missed Opportunities
Information sharing
IT Review Board(s) / Budget Review Drives IT Strategy and Priorities
Logis
tics
Sale
s
Manufa
ctu
ring
Oth
er
Solution Development
Business Value approach
…Resulting in Underachieving Projects and Portfolios A missed opportunity for many organizations is their inability to systematically generate value from all investments, including SAP.
Expected Value Poor Selection and Prioritization
Inefficient Project Execution
Poor Absorption and Value Tracking
Realized Value
100%
5% – 10%
10% – 15%
20% – 25%
50-65%
Source: Corporate Executive Board -Applications Executive Council Research
Focusing on business outcomes throughout the lifecycle of a project reduces “Value Leakage”
Building the Right Things
Building Things Right Exploiting What We Built
Governance
Fitting Value Management in the organization
Value management process owner VMO mission: Enterprise process transformation IT portfolio capabilities & TCO Shareholder value Competitive advantage
Decision rights go hand in hand with who owns the budget
Autonomy drives complexity
VS
KPI's - Value to Executives
Consistent KPI definition
Inconsistency in KPI
definition
Detail
Aggregate
Architecture Layers
Process
Input 1
Output 1
Input 2
Input 3
Process Output 2
Maintenance Work Completion - Dash3000 (As Is)
Analyze Work Records SubmissionRecord WorkPerform WorkPlan Work
Re
liab
ility
Te
chP
ub
sM
tce
Cre
w
Mtc
e
Co
ntr
ol
Sa
bre
Bo
rne
ma
nn
JD E
dw
ard
sH
P
Sys
tem
Operational
Budget
Schedule
A/C
Maintenance
Control
Finances
Perform
A/C
Maintenance
Analyze Data
Record
A/C
Maintenance
Create &
Maintain
Task Cards
Develop A/C
Maintenance
Program
Work
Effectiveness
Mtce
Reqts
Flight
Times
Payroll
Processing
Bu
sin
ess
Da
ta
Applic
atio
n
Techn
olo
gy
“An Enterprise Architecture is only as good as the decision making framework that is established around its governance”.
Architecture Review Board
IT Prioritization Committee
BI Steering Committee
Business Case Review Board
Business Context
Architecture Principles
Portfolio / Project Management
Change Management
Architecture Repository • Business • Application • Information • Technology
Future State
OP EX Working Committee
• Business Case Development.
• Review and evaluation of initiatives.
Operation Excellence Steering Committee
Governance
ARIS
The ARIS house ● ARIS
– ARchitecture of Integrated information Systems
– Conceptual framework used to describe organizations and application software
– Developed by Prof. Dr.
August Wilhelm Scheer
– Modeling method and tool
ARIS Platform for Process Excellence
Visualization of Strategy Balanced Scorecard Planning of KPIs
From Model to Execution From Process to Application From Design to Implementation and Operation
Modeling Analysis Reporting Publication
Measuring Performance Monitoring Risks and Controls
Support in all phases of the BPM lifecycle
So the suggested starting point for Enterprise Architecture is the Business Architecture. The Business Architecture includes:
•Business Models •Business processes / Business capabilities • Organization structure • Business terms • Metrics / KPI’s
Enterprise Architecture approach
Areas in which ARIS is used
Capability Model
Mission: To be a leading owner, operator & developer of distinctive and diversified real estate projects in select core markets, which create value for our customers, shareholders, and communities through place create, sustainable practices, and a long term investment perspective.
Information Architecture
• Conceptual model of key subject areas • Dimensions • Facts • Subject/Content areas • Documents and unstructured data
• Inventory of existing reporting solutions, cubes and ETL processes
• Classification Map of key data/information points to the capability model
• Future state organizational vision, decision trees, and
• Roadmap of BI, ECM and big data/social media initiatives.
• Decision trees and product roadmaps
Application Architecture
• Organized by application class / business capability • System Lifecycle: outlook, when to retire • Business and Technical attributes • System of innovation, differentiation, record
portfolio attributes reporting
Some key points to take away…
IT Program and Project management can be cost not
value driven.
The right KPI’s at the proper level defines value.
Portfolio and Value Management are EA “themes”.
Language and Governance is the key to architecture.
Value is ultimately measured by business outcomes.
“Don’t shoot where the bird is, but where you anticipate is going to be”.
EA will be measured by the Value it provides…