The Business Value of Enterprise Architecture

Transcription

1 3:15pm - Session 21: The Business Value of Enterprise Architecture (Room 105) Speakers - David V. Kendall, PMP, CSM President/CEO, KAI Partners, Inc. Description: To many people, the term 'Architecture brings visions of arches, columns, or other physical structures intended to provide cover from the elements. In our current world of automation the term Architecture has been associated with computer resources intended to enable business functions to deliver their mission. Each of these architectural references provide a complex and carefully designed structure for the related domain. Enterprise Architecture (EA) is intended to provide a carefully designed framework to support the relationship between strategy, business, and technology. This presentation is intended to discuss how organizations can leverage an EA framework to identify and realize the associated business value based on their strategic goals and objectives. Intended Audience: This session is intended to inform and educate Executives, Program Managers, Project Managers, and project participants on how Enterprise Architecture practices and methods can help organizations realize a higher level of business value through a formal EA Program. Title page The business Value of Enterprise Architecture, November 1, 2016, David V. Kendall, PMP, CSM, President/CEO, KAI Partners, Inc. Slide 2 Agenda If I have seen further than others it is by standing on the shoulders of Giants, Sir Isaac Newton, o John Zachman, Father of Enterprise Architecture o Dr. Scott A Bernard, U.S. Federal Chief Enterprise Architect o Carl Engel, CEO Elyon Strategies Slide 3 KAI Partners, Inc. Overview Incorporated July 23, 2003, KAI Partners, Inc. Services o Professional Project Management o Certified Information Technology Security Risk and Control o Assessments o ISO Pre-certification Reviews/Gap Analysis o Organizational Development and Change Management o Operational Efficiency Planning and Implementation o Strategic Development and Planning o IT Governance Strategy & Implementation o IT Solution Analysis and Implementation Session 21 doc - KAI EA Business Value Presentation 1

2 o IV&V and IPOC Support Services Clients Include o State and local government o Health and human service organizations o Multi-organizational data centers o IT management organizations o Manufacturing o Insurance providers Guiding Principles One of the foundational elements of EA. 1. Honor and Integrity 2. Responsive Communication 3. Meaningful Interactions 4. Individualized Service 5. Needs Focused 6. Community Involvement Slide 4 Enterprise Architecture (EA) Defined Enterprise is defined as, An organization or sub-activity whose boundary is defined by commonly-held goals, processes, and resources. Bernard, Scott A. ( ). An Introduction to Enterprise Architecture: Third Edition (Kindle Location 483). AuthorHouse. Kindle Edition. Architecture as defined by Oxford Dictionaries is, The complex or carefully designed structure of something, and, The conceptual structure and logical organization of a computer or computer-based system. Both of these definitions speak directly to EA and it s value within the organization. Definition Enterprise Architecture is a strategy and business-driven activity that supports management planning and decision-making by providing coordinated views of an entire enterprise. Bernard, Scott A. ( ). An Introduction to Enterprise Architecture: Third Edition (Kindle Locations ). AuthorHouse. Kindle Edition. The analysis and documentation of an enterprise in its current and future states from an integrated strategy, business, and technology perspective. Bernard, Scott A. ( ). An Introduction to Enterprise Architecture: Third Edition (Kindle Locations ). AuthorHouse. Kindle Edition. EA = S + B + T, Enterprise Architecture = Strategy + Business + Technology This definition is intended at its core to reduce redundancy, promote productivity, and support agility. Agile without EA = Anarchy, Carl Engel, Elyon Strategies Slide 5 The value of EA The value of EA is that it enhances resource-planning capabilities and supports better decision-making. This is accomplished through communication improvements in respect to current and future resources. Ideas are conveyed more Session 21 doc - KAI EA Business Value Presentation 2

3 rapidly while differences in interpretations and misunderstandings are reduced. Bernard, Scott A. ( ). An Introduction to Enterprise Architecture: Third Edition (Kindle Locations ). AuthorHouse. Kindle Edition. Improved Planning Planning is enhanced from both a top down and bottom up approach. Strategy and business will be enhanced by the holistic approach to the organization. Bottom up planning is also enhanced because of access to a wide range of disparate program-level planning activities. Improved Decision Making A formal EA practice improves decision making by providing a comprehensive view of current capabilities and resources as well as what-if modeling of future operations. Maybe most important, with a well-defined and maintained EA Repository, decision makers have real-time access to critical information. This means less time spent gathering as-is information and more time evaluating alternatives. Communications An EA program will improve enterprise communications by providing a regularly updated baseline of integrated information on strategy, business, and technology (EA=S+B+T). Through a structured EA framework and implementation methodology each organization will utilize standardized approaches and terminologies for the development and management of enterprise resources. Quantified value The following list of organizational benefits provide measurable value: o Shortening Planning Cycles A central repository of on-line information supports less time collecting data and more time focusing on solutions. o More Effective Planning Meetings EA program information allows for a common baseline of planning and reference information. This reduces ambiguity and increases the level of common understanding. o Shorter Decision-Making Cycles Time for integration of strategy, business, and technology is greatly reduced by a central EA repository. Decision support activities are efficient, reliable, and can be supported by multiple parts of the organization as a team. o Improved Reference Information An EA documentation framework and implementation methodology provides standardized information using known tools and applications. o Reduction of Duplicative Resources By visualizing the organization in a holistic manner, duplication of resources can be identified during the planning process, not during execution. This means that enterprise debt whether technical, process, or resources can be managed effectively. o Reduced Re-work Through planning and executing the implementation of new resources in a holistic manner, potential rework that might have been created through program level initiatives can be avoided. Session 21 doc - KAI EA Business Value Presentation 3

4 o Improved Resource Integration and Performance EA promotes integration through planning and utilization of resources on an enterprise-wide basis. o Fewer Resource Demands EA supports business process reengineering by encouraging planning in context of the enterprisewide requirements as well as line of business requirements. Streamlined processes that use resources more efficiently means that staff can concentrate on the most critical activities. o Improved Communication Through the implementation of a common language and central approach misunderstandings or requirements and solutions can be greatly reduced. o Reduction in Management Lifecycle Time A formal EA program will help an enterprise to reduce the time it takes to plan, develop, implement, and retire resources within its business and technology operating environment. Slide 6 EA Program Cost Quantifying the cost of an EA program should be approached from a program lifecycle view that centers on phases for implementation, maintenance, and continuous program improvement. The full lifecycle cost of an EA program should be documented and presented to the EA program sponsor to provide a clear understanding of each of these phases. As with any program, these costs should be base lined relative to approved EA program activities so that any approved changes to EA program scope can be managed the same as any other change management request. One way to estimate EA program cost is to look at each area of the EA implementation methodology and identify the direct and indirect costs such as: EA program administration and organizational dependencies Management and staff resource costs Meetings, facilities, materials, and support for stakeholder planning Computers, applications, and EA repository development and maintenance As-Is and To-Be analysis efforts Development and implementation of an EA Management Plan Slide 7 EA program risk Managing Risk Risk, or the combination of impact and probability, is related to uncertainty and is the potential source for the failure or underperformance of a program or project. The following are some specific risks to implementing an EA program: o Financial Implementing an EA program involves implementing standards and practices to establish a current and future views of enterprise resources and operations. Like any implementation Session 21 doc - KAI EA Business Value Presentation 4

5 project, initial funding will be higher than the funding necessary to maintain the program. Cuts in the EA budget can severely affect the benefits of the program to the point of becoming of little or no use to the enterprise. o Lack of Acceptance EA represents a new way of doing business and allocating resources. The integrated view of strategy, business, and technology will inspire a re-engineered view of these resources and will challenge former approaches to program management. This can create tensions between program stakeholders, EA stakeholders, and other affected groups. o Schedule Delays An EA program is a commitment to doing business a different way and takes time to deliver an approved EA Management Plan. Implementation activities will be run like any other project with milestones and deadlines dependent on other organizational activities. The dependencies could represent delays and could be critical to the startup of an EA program. o Documentation Tools Developing current and future views of the enterprise that are rich in detail, easy to access, and which can support analytical modeling and decision making takes time and effort. <Application Rationalization> Tool integration is a critical consideration to implementation of an EA program. Risk Mitigation To mitigate these risks and lower the uncertainty of implementing an EA program active risk management of each identified area of organizational risk is required. Some mitigation strategies include: o Executive Sponsorship o Defined and approved EA budget o Adopt proven EA tools and techniques o Implement a detailed EA methodology o On-going risk identification and mitigation Slide 8 Linking Strategy, Business, and Technology For EA to support an enterprise holistically, the organization must link strategy, business and technology. EA is most effective when it simultaneously supports topdown executive planning and decision making while at the same time supports bottom-up management planning and decision-making in each line of business. This ensures that the enterprise is focused on the following: Strategic planning EA ensures that strategy drives business and technology planning; Line of business planning EA provides the context and purpose of business activities by ensuring technology is implemented only after business requirements are identified and agreed upon; Technology planning EA provides strategy and business context for technology resource planning; Session 21 doc - KAI EA Business Value Presentation 5

6 Slide 9 An example from the field <EA Presentation> Slide 10 Questions and Answers Session 21 doc - KAI EA Business Value Presentation 6