PCEHR: The case for Change, the role of insurers and maximising benefits
Maximising the Value and Benefits of Enterprise Architecture
-
Upload
alan-mcsweeney -
Category
Documents
-
view
265 -
download
4
description
Transcript of Maximising the Value and Benefits of Enterprise Architecture
Maximising The Value and Benefits of Enterprise Architecture
Alan McSweeney
Objective
To explain the benefits of implementing Enterprise Architecture and to identify how the value of Enterprise Architecture can be measured
December 4, 2010
2
Agenda
Enterprise Architecture Issues in IT Why Enterprise Architecture Enterprise Architecture Measurement Framework Enterprise Architecture Value Measurement Programme
December 4, 2010
3
Basis for Enterprise Architecture
IT systems are: Unmanageably complex and costly to maintain Hindering the organisation's ability to respond to business and economic changing environment Not integrated
Mission-critical information consistently out-of-date and/or actually incorrect A culture of distrust between the business and technology functions of the organisation Unmanaged complexity in IT landscape leads to greater cost and less flexibility Issues include lack of standards, redundant applications, multiple platforms, and inconsistent data Enterprise architecture defines a set of tools and methods to address this complexity While benefits of Enterprise Architecture are generally understood, measuring value has been a challenge
No easy answer but Enterprise Architecture approach is really worth considering as a means of addressing these issues systematically
December 4, 2010
4
Enterprise Architecture Is/Does
What the organisation does today in terms of IT What the organisation wants to do in the future in terms of IT The Information Technology assets implemented today The Information Technology assets the organisation needs to have in the future to best deliver its business goals Defines the framework outlining the vision for systems and technology for the organisation Takes the business strategy and translates it into effective change of the organisation Manages the Information Technology change roadmap Defines a set of overall principles, a future state vision and an implementation and transformation plan Includes standards definitions and strategies for servicesDecember 4, 2010 5
Scope and Elements of Enterprise ArchitectureEnterprise Architecture Business Architecture Information Architecture Enterprise Enterprise IT Information Systems Security Architecture Architecture Enterprise IT Technology Infrastructure Architecture Enterprise Architecture Governance Solution Architecture
Enterprise Information Technology Architecture
Software Architecture Network and Communications Architecture Storage ArchitectureDecember 4, 2010 6
Key Messages Relating to Enterprise Architecture
IT-business alignment has never been so important Alignment must be pursued in the context of understanding business processes and priorities Service-orientation is not just for applications Service contracts are not just about function: they encapsulate and communicate business priorities to IT delivery organisations Enterprise architecture needs to be more inclusive, sophisticated, flexible and integrated IT governance models must take all this into accountDecember 4, 2010 7
IT Too Often Fails to Support Changes Effectively
Technology integration is costly, risky and complicated Information is everywhere but getting access to the right information at the right time is very difficult Modifying system behaviour takes too long and changes are difficult to communicate and implement effectively Much of IT system and operations expenditure is bloated and fixed where operations run with excess redundant capacity IT seen as a cost centre and not a source of business value
December 4, 2010
8
Business View of IT
IT is viewed by the business as being Expensive Not connected with business strategy and operations Unresponsive to the changing needs of business Viewed as a critical issue as business agility and responsiveness are essential for competitiveness
Undefined and unclear as a business asset In terms of financial cost and value Return on investment and value for money from IT is relatively poor The capability the asset should deliver to the business
Not delivering its promises Business change projects cost more and deliver less value than expected or promisedDecember 4, 2010 9
Causes of Business View of ITBusiness applications tend to be implemented on a project by project basis for specific purposes without overall context Project benefits and success have been measured on specific project costs, value and time to market without measuring the long term enterprise-wide cost and value Average 75% of total IT budget on RTB operations and 25% on new project investment Technology innovation has tended to deliver specific shortterm benefits but in the long term of making things worse Just look at previous technology innovations such as client/server and 4GLsDecember 4, 2010 10
Business Pressures on Information TechnologyGlobalisation Business and Technology Changes
Transparency
Information TechnologyRegulation Service Focus
Consolidation
Challenging Economic Circumstances11
December 4, 2010
Business Pressures are Driving Business and IT Change
Globalisation Customers, partners, suppliers and greater competition Connectedness driving value chains
Transparency Industry regulations, consumer pressure and competition driving openness
Service Focus Differentiation and shareholder value increasingly derived from service experience
Challenging Economic Circumstances Need to cut costs and demonstrate real savings Justify technology investments
Consolidation Mergers, acquisitions, takeovers of failing companies
Regulation Increased regulation and governance - business is turning to IT to help and IT struggling to respond in many cases
Business and Technology Changes IT becoming commoditised - growth of standards-based technology means that proprietary solutions provide less differentiation Speed of technology change Outsourcing where the right outsourcing decisions require an understanding of how systems contribute to the businessDecember 4, 2010 12
Why Enterprise Architecture
Enterprise Architecture is part of a continuum and not a project Emerging technologies influence direction of architecture Must be subject to change management and governance Enterprise Architecture and IT governance should be considered together
Principles of architecture should override IT hype and transient technology SOA may be dormant but services and an architectural component continues Cloud computing is just another step along the IT/Architectural evolution and another perspective on the future state
Need better understanding of integration of enterprise and solutions architecture Enterprise Architecture is about achieving a common language between business and IT Enterprise Architecture driven out of the business strategy provides the enterprise with the highest degree of alignment between the business and IT The concept of Enterprise Architecture has expanded well beyond the traditional notion of technology architecture Now the architecture of the whole enterpriseDecember 4, 2010 13
Enterprise Architecture - Achieving a Common Language Between Business and IT
IT-business alignment requires collaboration between the business and the IT organisation to align investment and delivery with business goals and to manage business and technology change A common, agreed representation of business activity and goals A common, agreed view of how current and future IT provides structured support to the business Key requirements and deliverables: Investment prioritised in terms of business need Systems that deliver value to the business Clear direction from the business about focus, strategy Collaborative approach to implementing business change
December 4, 2010
14
Enterprise Architecture and Strategy
Provides the fundamental technology and process structure for an IT strategy Provides a strategic context for the evolution of enterprise IT systems in response to the constantly changing needs of the business environment Allows individual business units to innovate safely in their pursuit of competitive advantage within the context of an integrated IT strategy Enterprise Architecture is designed to ensure alignment between the business and IT strategies, operating model, guiding principles, and the software development projects and service delivery By taking an enterprise-wide, perspective across all the business services, business units, business processes, information, applications and technology, Enterprise Architecture ensures the enterprise goals and objectives are addressed as a whole way across all the system acquisition/application development projects and their deployment into production Organisations use a business strategy driven architecture approach that focuses on translating the key components of the business strategy into a future state vision and an architecture road map they can implement Enterprise architecture is integrated with other strategic planning disciplines, such as programme/project and application portfolio and management Enterprise Architecture ensures that the long-term vision of the business is preserved as the enterprise builds new business capabilities and improves on old ones
December 4, 2010
15
Why Manage Enterprise Architecture?Unmanaged Complexity in IT Landscape Increased Cost Duplication in Resources to Develop, Operate and Maintain Business Systems Cannot to Exploit Economies of Loading and Scale
Leads To ..
Reduced Flexibility
Delays in Delivering Changes
Complexity Causes Difficulties and Uncertainties
Thus Negatively Impacting on Business Performance December 4, 2010
Longer Design, Build, Test and Delivery Time
16
Why Manage Enterprise Architecture? To Address This Complexity
Provides a Set of Tools and Methods
ProvidesNeed to Measure Effectiveness of Enterprise Architecture In Order to Maximise Business Value17
ButEnterprise Architecture
December 4, 2010
Value of Enterprise ArchitectureAppropriate and Effective Enterprise Architecture Promotes Actions and Decisions That Align Information Technology Plans and Investments with Business Priorities and Requirements Result in More Integrated Operations Responsive to Customer and Business Requirements Promote a More Efficient and Effective IT Infrastructure Facilitate Cross-Organisational Sharing of Enterprise Information Recognise Innovations and Best Practices Across the Enterprise Ensure Traceability of Decisions Back to Principles and RulesDecember 4, 2010 18
Enterprise Architecture Development and Implementation ProcessArchitecture Vision Architecture Change Management Business Architecture Data Architecture Implementation Governance Requirements Management Information Systems Architecture Solutions and Application Architecture Migration Planning Opportunities and Solutions Technology Architecture
December 4, 2010
19
Key Elements/Subsets of Enterprise Architecture
There are four key architectural subsets of an overall enterprise architecture Business/Business Process Architecture - this defines the business strategy, governance, organisation, and key business processes Data and Information Architecture - this describes the structure of an organisation's logical and physical data assets and data management resources Solutions/Applications Architecture - this kind of architecture provides a blueprint for the individual application systems to be deployed, their interactions, and their relationships to the core business processes of the organisation Technology and Infrastructure Architecture - this describes the logical software and hardware capabilities that are required to support the deployment of business, data, and application services and includes IT infrastructure, middleware, networks, communications, processing, standards, etc.
December 4, 2010
20
Issues in Key Elements/Subsets of Enterprise ArchitectureBusiness and Business Process Architecture
High variability and lack of standardisation across business units (such as ERP templates), driven by changes in business strategy, governance, organisation and process Inconsistent data definitions, multiple databases, releases and configurations which result in duplication of licenses, duplicate and inconsistent information, complexity in testing Multiple vendors, multiple instances and versions which add complexity in procurement, development and release management, resulting in higher costs and longer time to market Multiple operating environments, multiple hardware vendors and types, leading to higher maintenance and personnel costs, greater instability and time-to-fix
Data and Information Architecture
Solutions and Applications Architecture
Technology and Infrastructure Architecture
December 4, 2010
21
Benefits of Enterprise Architecture
Align IT and business for planning and execution purposes Optimise resources - technology, people and processes Increase business interoperability Reduce complexity in IT infrastructure Improve business agility to support dynamic change Drive re-usability of architecture models and best practices Streamline informed decision making Standardise IT for cost effective delivery of services Eliminate duplication and redundancy and reduce cost of ownership and return on investment Reduce risks for future investment Faster, simpler and cheaper procurement Manage information/data and knowledge as a corporate asset Manage change based on a clear understanding of its impactDecember 4, 2010 22
Risks of No Enterprise Architecture
Inability to rapidly respond to challenges driven by business changes Lack of commonality and consistency due to the absence of standards Lack of focus on enterprise requirements Lack of common direction and savings due to synergies Incomplete visibility of the current and future target enterprise architecture vision Inability to predict impacts of future changes Increased gaps and architecture conflicts Dilution and dissipation of critical information and knowledge of the deployed solutions Rigidity, redundancy and lack of scalability and flexibility in the deployed solutions Lack of integration, compatibility and interoperability between applications Complex, fragile and costly interfaces between applications Fragmented and ad hoc software development driven by a tactical and reactive approachDecember 4, 2010 23
Issues in Developing Enterprise Architecture
Issue 1 - Concentrate on the Plan Focus too intently on analysis and strategy Avoid committing to implementing solutions Architecting inhibits value delivery
Issue 2 - Jumping to the Solution Engineering solutions and data implementation Technology has difficulty aligning with enterprise Reinforces gap between business and IT
Challenge is to balance evolving strategy, goals, constraints with technology solutions
December 4, 2010
24
Justifying Investment in Enterprise ArchitectureInvestment in Enterprise Architecture
Involves Challenges Longer Term Payback than Other IT Investments Reasons for Technical Decisions Difficult to Communicate Impact of Investment in Enterprise Architecture Difficult to Measure Different Investment Approaches Needed Across Enterprise Architecture
December 4, 2010
25
Risks Inherent Investment in Enterprise Architecture
Enterprise Architecture Investment SpectrumToo Little or On Wrong Areas Means Operating Costs Increase as Architecture is Too Complex, Ineffective, Old and Expensive to Operate and Support Investment in Enterprise Architecture is Sufficient to Deliver Results Without Imposing Unnecessary Restrictions or Overhead Too Much Means Enterprise Architecture Inhibits Flexibility and Imposes Too Many Constraints IT Becomes Inefficient
Goldilocks ZoneDecember 4, 2010 26
Enterprise Architecture and Enterprise Architecture ManagementEnterprise Architecture Enterprise Architecture ManagementProvides the models and practices for defining, planning and managing the business and IT capabilities Includes business, data, applications and technology models and principles that support assessments and investment trade-off decisions, as well as tactical, project-level designs and decisions27
Defines a framework outlining the vision for systems and technology for an organisation Defines a set of overall principles, a future state vision and a transformation plan Include standards definitions and strategies for individual IT servicesDecember 4, 2010
Relationship Between EA Implementation and Operation ComponentsFunction Develops EA
Enterprise Architecture
Enterprise Architecture Function/ Capability Function Implements EA
EAM Measures and Manages the Extent and Operation of the EA and Provides Governance
Enterprise Architecture Management
Enterprise Architecture Implementation and Operation
December 4, 2010
28
Outcomes of Effective Enterprise Architecture Implementation and Operation
Specification application architecture requirements Definition of architecture methodology Standardisation of information elements shared between systems Modeling of information relationships and lifecycles Deployment integration infrastructure Standardisation of hardware and core software platforms Building of reusable application components
December 4, 2010
29
Enterprise Architecture Linked to Overall Business StrategyBusiness Processes Business Systems
Business Strategy
Business Objectives
Business Operational Model
Enterprise Architecture
Solution Delivery
Service Delivery
Enterprise Architecture aligns business strategy, business processes and IT and provides governance to ensure business value and competitive advantage is delivered Enterprise Architecture creates alignment, consistency and unity between objectives at various levels
Domain Architecture
Project Architecture
December 4, 2010
30
Enterprise, Domain and Project ArchitecturesOverall Business Strategy and Objectives Enabling IT Projects
Enterprise Architecture defines and manages overall organisation architecture Domain Architecture(s) are subsets of Enterprise Architecture to enable individual business unit/domain objectives and targets to be met Project Architecture(s) enable project level objectives to be met31
Enterprise Architecture
Individual Business Unit Objectives
Enabling IT Projects
Domain Architecture
Project Architecture
December 4, 2010
Enterprise Architecture Capability
The function that enables an organisation to create, adapt, enforce and develop enterprise architecture Equally a part of the business as it is part of IT Role is as much about controlling and focusing IT expenditure as it is about identifying necessary change
Ensures that the IT landscape is aligned to the business vision and continues to be aligned to the business strategy and operational needs Ensures that IT solutions can continuously react to the changing needs of the business Ensures that the business and financial case for change is madeDecember 4, 2010 32
Subsets of Overall Enterprise ArchitectureBusiness and Business Process Architecture
Technology and Infrastructure Architecture
Data and Information Architecture
Application And Solution Architecture
December 4, 2010
33
Layers of Enterprise ArchitectureOverall Enterprise Architecture Context, Security, GovernanceBusiness and Business Process Architecture Conceptual View Defines What Is Required Data and Information Architecture Solutions and Applications Architecture Technology and Infrastructure Architecture
Business and Shared Services
Information Services
Application Designs
Overall Network and Infrastructure Design Infrastructure Services and Components
Logical View How It Should Be Implemented
Business Processes Designs
Data Sources, Targets and Flows
Business Applications
Physical View Defines What Should Be ImplementedDecember 4, 2010
Business Processes
Database and Message Designs
Application Designs, Specifications
Technical Designs and Specifications34
Enterprise Architecture Management
Enterprise Architecture needs be a guided strategy that is aligned with the needs of the business Enterprise Architecture Capability enables an organisation to create, adapt, enforce, and develop its technical architecture Enterprise Architecture Management provides a means to measure the effectiveness of Enterprise Architecture and assist organisations increase business value delivered by IT systems Enterprise Architecture Management is a capacity rather than a programme or an end state architecture Enterprise Architecture Management provides a capability model with maturity levels for an organisation to achieve desired level of Enterprise Architecture maturity and value Enterprise Architecture Management provides a systematic coherent approach to defining, planning, and measuring an organisation's IT assets over timeDecember 4, 2010 35
Why Invest in Enterprise ArchitectureEnable Greater Business Agility and Flexibility
Increased Business Value
Enable faster and easier collaboration through application and data integration
Enable faster response to business changes and new demands at lower cost
IT projects will have a greater success delivered on time, on Increase Use budget and to user of IT requirements reducing cost through avoidance of reworkIncreased Success in Solution Delivery
Solutions will be delivered at lower implementation and operational costs
Reduced IT Costs
Reduced IT CostsDecember 4, 2010 36
Why Invest in Enterprise Architecture
Business cannot understand why relatively straightforward business changes are costly, risky and slow to implement Run The Business improvements and Change The Business initiatives are restrained or prevented by the IT function because to the delay and high cost of implementing changes Lack of Enterprise Architecture means operational and support costs of solutions are kept high Reduces budget available to be used elsewhere
Solution Lifecycle Costs
Solution Implementation Costs
Post Implementation Costs Support, Operation
Situation worsened by projects attempting to deliver in an isolated fashion to bypass inhibitors resulting in further constraints for subsequent projects in the medium term
December 4, 2010
37
What Manage Enterprise Architecture Value?
Understand the current state of Enterprise Architecture Create an accurate view of the current capabilities Define the activities to be worked on in partnership with the business Create a flexible Enterprise Architecture framework that will govern future initiatives
Validate Opportunities to Create Business Value Define the initiatives that will create the most value Define a realistic and achievable set of objectives Define value measurement to justify commitment and investment
Develop a a Flexible Initiative and Project Portfolio Define the set of initiatives and projects that achieve objectives Positively vet programmes and projects for value Create programmes of work that are justified, measured and managed for value
Recognise that Enterprise Architecture is strategic rather than tactical Requires the participation in partnership of business and IT Reach of Enterprise Architecture may extend beyond the organisation
December 4, 2010
38
Framework for Enterprise Architecture Management
Framework provides a means for assessing the Enterprise Architecture maturity level within an organisation Can be used to achieve a target level of organisational Enterprise Architecture maturity and therefore value Provides a means for continuously assessing and adjusting Enterprise Architecture efforts Development of Enterprise Architecture needs be a focussed and managed strategy aligned with the business
December 4, 2010
39
Using Enterprise Architecture Management Framework
Define the scope and role of Enterprise Architecture and its management within your organisation Understand your current capability maturity level Systematically develop and manage key capabilities for effective and appropriate enterprise architecture management that adds business value Evaluate and manage progress over time using a consistent set of value-oriented metrics
December 4, 2010
40
Using the Enterprise Architecture Management FrameworkDefine the scope and role of Enterprise Architecture and its management within your organisation Measure and understand your current capability maturity level
Evaluate and manage progress over time using a consistent set of valueoriented metrics
Systematically develop and manage key capabilities for effective and appropriate enterprise architecture management that adds business value
December 4, 2010
41
Dimensions of Enterprise Architecture Management Framework
Measure state of Enterprise Architecture along three dimensions Practices Planning People
Enterprise Architecture Practices
Define facets of each dimension Measure each facet in terms of: Associated processes and their state of development Scope or extent within the organisationDecember 4, 2010
Enterprise Architecture Planning
Enterprise Architecture Personnel42
Measurement of Value of Enterprise Architecture
Direct link between Enterprise Architecture and real value can be difficult to demonstrate There is a time lag between implementation and results
December 4, 2010
43
Measurement of Value of Enterprise Architecture
Define Enterprise Architecture value measurement areas Identify measurement process Measure Establish current baseline Define target Measure results against baseline and target
December 4, 2010
44
Measurement Framework for Enterprise Architecture ManagementEnterprise Architecture Management Framework EAM Dimension 1 Enterprise Architecture Practices EAM Dimension 2 Enterprise Architecture Planning EAM Dimension 3 Enterprise Architecture Personnel 3.1 Organisation Structure and Skills
1.1 Architecture Framework
2.1 Strategic Planning
1.2 Architecture Processes
2.2 Architecture Planning
3.2 Communication and Stakeholder Management
1.3 Architecture Governance
1.4 Architecture ValueDecember 4, 2010 45
Measurement Framework for Enterprise Architecture ManagementArchitecture Framework Enterprise Architecture Practices Architecture Processes Architecture Governance Framework of standards, templates and specifications for organising and presenting business and technical architecture components Methodology for defining, developing and maintaining architecture components Principles, decision rights, rules and methods to drive architecture development and alignment in the organisation
Architecture Value Defining, measuring and communicating the value and impact of architecture to the business Enterprise Architecture Planning Strategic Planning Using architecture principles and blueprints to align business needs with IT capabilities, define portfolio strategy and direction and allocate resources Architecture Planning Defining vision and roadmap for various IT domains by anticipating business needs and trends, and developing architecture components
Organisation Defining, planning, and managing roles, responsibilities and skills for Structure and Skills architecture management Enterprise Architecture Communication and Stakeholder Management Managing communication and expectations with business and IT stakeholders interested in or influenced by architecture management46
December 4, 2010
Measurement Framework for Enterprise Architecture Management
Measure in terms of Processes those processes associated with Enterprise Architecture Management and their state of development how well-defined and effective are the processes Reach - scope or extent of Enterprise Architecture Management within the organisation how widely used
December 4, 2010
47
Enterprise Architecture Management Assessment FrameworkProcesses are Optimised, Flexible, Adaptable and Lean Processes are Managed and There is Continuous improvement Processes are Repeatable and Consistently Used Across Teams and Projects Basic Processes and Associated Collateral in Place
Enterprise Architecture Processes
Ad-Hoc Processes Defined and Driven by Individuals Across the Organisation, Including Business and IT Functions Beyond the Organisation (Suppliers, Partners, Customers)48
Within Individual Projects
Within an IT Domain
Across the IT Function
December 4, 2010
Enterprise Architecture Reach
Detailed Measurement Framework for Enterprise Architecture ManagementEnterprise Architecture Management Framework EAM Dimension 1 Enterprise Architecture Practices EAM Dimension 2 Enterprise Architecture Planning EAM Dimension 3 Enterprise Architecture Personnel
1.1 Architecture Framework
2.1 Strategic Planning
3.1 Organisation Structure and Skills
Processes1.2 Architecture Processes
Reach
Processes
Reach
Processes3.2 Communication and Stakeholder Management
Reach
2.2 Architecture Planning
Processes1.3 Architecture Governance
Reach
Processes
Reach
Processes
Reach
Processes1.4 Architecture Value
Reach
ProcessesDecember 4, 2010
Reach49
Complete Measurement FrameworkProcesses
Three dimensions x two aspectsEnterprise Architecture Personnel
Enterprise Architecture Planning
Processes
Reach
Processes
ReachEnterprise Architecture Reach PracticesDecember 4, 2010 50
Enterprise Architecture Management MaturityLevel 1Strategic Planning None
Level 2Project-based Limited vision and roadmap Central architecture fund Limited framework covers some information Defined processes primarily focused on infrastructure Some review principles defined for some components
Level 3Prioritization of project portfolio based on roadmap Architecture planning process established Funded from efficiency gains
Level 4Architecture a key input to joint Business / IT planning Continuous improvement Funding by margin on services
Level 5Business / IT planning enables efficiency, agility in extended enterprise Includes extended enterprise capabilities Funding by transaction
Planning
Architecture Planning
Project-based Project-based allocation
Architecture Funding
Architecture Framework
None
Covers Information and Consistently adopted process, but adoption not internally consistent Defined processes across IT domains Defined processes across business and IT domains Shared governance model with Business and IT Defined and measured business objectives, performance metrics Clear professional career track Pro-active communication and feedback with business
Framework shared externally Defined processes with clear ability to adapt and extend Business / IT governance continuously improved to respond to change Business outcomes and IT performance metrics Pro-active development with external input
Architecture Processes
Project-based processes
PracticesGovernance None / projectbased
Defined IT governance boards and processes
Value and Measurement
None / projectbased No roles, responsibilities
IT cost metrics
IT cost performance metrics Formalized roles and responsibilities
Organization Structure and Skills
Formal technology roles within projects
PeopleCommunication and Stakeholder ManagementDecember 4, 2010
Project-based
Key stakeholders identified and informed
Regular consultation with business
Collaboration with extended enterprise51
Assessing Current and Future Desired Architecture Management Maturity1 - Ad-Hoc 2 - Defined 3 - Repeatable 4 - Managed 5 - Optimised
Architecture Framework Enterprise Architecture Practices Architecture Processes Architecture Governance Architecture Value Enterprise Architecture Planning Strategic Planning Architecture Planning Organisation Structure and Skills
Enterprise Architecture Communication People and Stakeholder Management Current EA Competency Maturity LevelDecember 4, 2010
Desired Future EA Competency Maturity Level52
Measuring Maturity and Importance
5.0
4.0
Level Of Maturity3.0
Organisation Structure and Skills
Architecture Processes
Architecture Value 2.0 Architecture Governance 1.0 1.0 2.0 3.0 4.0 5.0 Architecture Framework
Architecture Planning Communication and Stakeholder Management
Strategic Planning
Level of ImportanceDecember 4, 2010 53
Benefits of Increasing Enterprise Architecture Management Maturity
Measuring the true impact of increasing Enterprise Architecture Management maturity is hard to achieve IT architecture simplification can be one of the largest contributors tor IT cost reduction (in the range of 5%-18%) but it has a long lead time - up to 2 years
December 4, 2010
54
Outcomes of Effective Enterprise Architecture ManagementStandardising Information Elements Shared Between Systems Modeling Information Relationships and Lifecycles Deploying Integration Infrastructure
Standardising Hardware and Core Software Platforms
Specifying Application Architecture Requirements
Building Reusable Application Components
Defining Architecture Methodology
Reduced CostsDecember 4, 2010
&
Service Improvements55
Impact of Effective Enterprise Architecture Management Can Be Difficult to QuantifyPrimary/ Immediate BenefitsLower integration costs (and corresponding project costs) Shorter integration time (and corresponding project time Increased hardware utilisation and deferred or eliminated hardware spend Simplified development Simplified analysis and testing Eliminated or reduced spend on redundant application purchase and development Leverage new capabilities for competitive advantageDecember 4, 2010
Secondary/ MediumTerm BenefitsRationalised application portfolio Integrated infrastructure and application management Renegotiation/consolidation of supplier contracts Better information quality Faster access to information Higher application development productivity Lower capital spend
Tertiary/ Long-Term BenefitsImproved responsiveness to business needs Better IT and business decisions
Higher IT productivity
Reduced operational risk Improved operational efficiency and effectiveness Sustained cost reductions Increase flexibility within the business and IT56
Impact of Effective Enterprise Architecture Management Can Be Difficult to QuantifyPrimary/ Immediate Benefits Secondary/ Medium-Term Benefits Tertiary/ Long-Term Benefits
Scope and Benefits of Enterprise Architecture Over Time
Directly Quantifiable
Difficult to Define
Intangible
Ease of Measuring Benefits of Enterprise Architecture
December 4, 2010
57
Measuring Quantitive and Qualitative Value from Enterprise ArchitectureMeasures of Value from Enterprise Architecture Quantitive Measures of Value Reduced Project Risk and Complexity Improved Project Success Cost Control and Improved Return on Investment Reduced Costs for Business As Usual Operations Enable Delivery of IT StrategyDecember 4, 2010
Qualitative Measures of Value Improved Business Requirements Delivery Better Alignment with Business Increased Agility and Competitiveness Improved Business Knowledge
Reduction in project time and cost over-runs both without scope or quality reduction
Reductions in faults and overspend due to incorrect requirements
Solution quality, delivery on-time and within budget and to user satisfaction
Quality-related feedback from the business through regular surveys
Measuring return on projects over lifetime
Measure through feedback where IT is viewed as an partner and enabler with the business and not just a cost and constraint Measure through effect with the business becoming better connected and greater reach of processes
Complete operational costs of IT to reflect the total cost of ownership
Sustained delivery of the IT Strategy which should also be concerned with delivering value58
Focussing on Areas of Low Maturity and High ImportanceFourth Areas To Focus On To Generate Improvements Second Areas To Focus On To Generate Improvements
High Maturity
MaturityThird Areas To Focus On To Generate Improvements First Areas To Focus On To Generate Improvements
Low Maturity
Low View of Importance
High View of Importance
ImportanceDecember 4, 2010 59
Focussing on Areas of Low Maturity and High Importance
Use Enterprise Architecture measurement framework to identify areas of greatest return on investment
December 4, 2010
60
Enterprise Architecture Value Measurement ProgrammeDefine Enterprise Architecture Measurement Framework Plan Enterprise Architecture Implementation /Enhancement Programme of Work
Feedback on Measurement Framework
Measure Enterprise Architecture Value
Analyse Enterprise Architecture Value Measures
Execute Programme
Measure Delivery and Results
Does the Enterprise Architecture programme have a measurable impact on the IT investment portfolio? Does the Enterprise Architecture programme lead to measurable improvements of performance? Is there a clear relationship between Enterprise Architecture programme and business services? Does the Enterprise Architecture programme result in measurable cost savings/avoidance?December 4, 2010 61
Summary
Appropriate Enterprise Architecture can deliver significant business benefits Comprehensive Enterprise Architecture value measurement framework is needed to link Enterprise Architecture to business benefits
December 4, 2010
62
More InformationAlan McSweeney [email protected]
December 4, 2010
63