CIS/MIT 8090 Intro. Setting the stage for the semester

Transcription

1 CIS/MIT 8090 Intro Setting the stage for the semester

2 Cognitive Map of 8090 IS Architectures as Strategy Weill, Ross & Robertson, Enterprise Architecture as Strategy & Lightweight Enterprise Architectures Work Systems Models S. Alter, Work System Method IS architectural components and development Mid-Range Modeling ERP as instantiation of Architectures Architectural Modeling options 2

3 Traditional Approach to Systems Implementation Data Strategic Initiative Lag Solution Design Lag Applications Infrastructure New Idea Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press,

4 The Result of Traditional System Implementation Approaches Corporate Data Data Applications Technology Platforms 4

5 The systems landscape we'd like to have Data Warehouse Middleware Data Applications Technology Platforms 5

6 There Are Four Operating Models or Organizing Logics Coordination Unification Business Process Integration High Low Unique business units with a need to know each other s transactions Examples: Merrill Lynch GPC, PepsiAmericas, MetLife Key IT capability: access to shared data, through standard technology interfaces Diversification Independent business units with different customers and expertise Examples: Johnson & Johnson, GE, ING Key IT capability: provide economies of scale without limiting independence Single business with global process standards and global data access Examples: Southwest Airlines, Dow Chemical, UPS Package Delivery Key IT capability: enterprise systems reinforcing standard processes and providing global data access Replication Independent but similar business units Examples: Marriott, CEMEX, ING DIRECT Key IT capability: provide standard infrastructure and application components for global efficiencies Low High Business Process Standardization Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press,

7 Different Standardization Requirements of the Four Operating Models Coordination Unification Business Process Integration High Low Customer and product data Shared services Infrastructure, portal, and middleware technology Shared services Diversification Infrastructure technology Operational and decision making processes Customer and product data Shared services Infrastructure technology and application systems Replication Operational processes Shared services Infrastructure technology and application systems Low High Business Process Standardization Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press,

8 Companies gradually mature enterprise architecture and build out their platforms. Business Silos Standardized Technology Optimized Core Business Modularity Business Agility Standard Interfaces and Business Componentization Enterprise-Wide Technology Standards Standardized Enterprise Processes/Data Locally Optimal Business Solutions 25% 46% 27% 2% % of Firms Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press, Percentage of firms in each stage is updated based on a 2007 survey of 1508 IT executives. 8

9 Architecture maturity increases global agility. Business Silos Standardized Technology Optimized Core Business Modularity Local Flexibility Global Agility Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press,

10 IT spending changes as architecture matures. Strategic Implications of IT 100% Percentage of IT Investment 0 % Local/Functional Optimization 36% 18% 35% Business Silos Architecture Maturity IT Efficiency 25% 21% 40% Standardized Technology Operational Efficiency 16% 35% Optimized Core Strategic Choices 15% 32% 34% 33% 11% 14% 17% 18% Business Modularity 100% 84% 92% 145% IT Budget Local Application s Enterprise Systems Shared Infrastructure Shared Data IT budgets are based on a 2007 survey of 1508 IT executives. Business silos budget is the baseline. Budgets for other stages are represented as a percentage of the baseline budget. 10

11 Firms learn by building management competencies. Architecture Planning and Design Senior executive oversight Enterprise architecture guiding principles Enterprise architecture graphic Process owners Full-time enterprise architecture team Project Management Project methodology Post-implementation assessment IT program managers Business leadership of project teams IT Funding Business cases Centralized funding of enterprise apps Infrastructure renewal process IT Steering Committee Standards Management Architects on project teams Technology research & adoption process Architecture exception process Formal compliance process Centralized standards team Management practices within each practice set are statistically significantly correlated with each other. All four competencies are significantly correlated with architecture benefits. 11

12 Getting from as-is to ideal state Strategic Initiative Strategic Initiative Learning and exploitation Operating Model Defines integration and standardization requirements Enterprise Architecture Engagement Model Establish es priorities Foundation for Execution Core Business processes IT infrastructure MIT/CIS 8090 Intro 12

13 Getting from as-is to ideal state Strategic Initiative Strategic Initiative Learning and exploitation Operating Model Defines integration and standardization requirements Enterprise Architecture Engagement Model Establish es priorities Foundation for Execution Core Business processes IT infrastructure MIT/CIS 8090 Intro 13

14 Getting from as-is to ideal state Strategic Initiative Strategic Initiative Learning and exploitation Operating Model Defines integration and standardization requirements Enterprise Architecture Engagement Model Establish es priorities Foundation for Execution Core Business processes IT infrastructure MIT/CIS 8090 Intro 14

15 Succeeding through Service Innovation Whitepaper: A Framework for Progress ( 1. Emerging demand 2. Define the domain 3. Vision and gaps 4. Bridge the gaps 5. Call for actions Service Innovation Service Systems Service Science Stakeholder Priorities The white paper offers a starting point to - Growth in service GDP and jobs Service quality & productivity Environmental friendly & sustainable Urbanisation & aging population Globalisation & technology drivers Opportunities for businesses, governments and individuals Customer-provider interactions that enable value cocreation Dynamic configurations of resources: people, technologies, organisations and information Increasing scale, complexity and connectedness of service systems B2B, B2C, C2C, B2G, G2C, G2G service networks To discover the underlying principles of complex service systems Systematically create, scale and improve systems Foundations laid by existing disciplines Progress in academic studies and practical tools Gaps in knowledge and skills Education Skills & Mindset Research Knowledge & Tools Business Employment & Collaboration Government Policies & Investment Develop programmes & qualifications Encourage an interdisciplinary approach Develop and improve service innovation roadmaps, leading to a doubling of investment in service education and research by 2015 Glossary of definitions, history and outlook of service research, global trends, and ongoing debate Call to Create National Service Innovation Roadmaps (SIR) Reports 15

16 IBM has begun to systematically classify diverse service systems industry by industry, component by component, measure by measure CBM: Component Business Model WBM and RUP: Work Practices & Processes SOA: Technical Service-Oriented Architecture Key Performance Indicators (KPIs) IBM IBV: Component Business Models IEEE Computer, Jan

17 Alter s Work System Framework 17

18 Alter s Work System Framework 18

19 Work System Snapshot 19

20 Work systems are NOT Information Systems 20

21 Cognitive Map of 8090 IS Architectures as Strategy Weill, Ross & Robertson, Enterprise Architecture as Strategy Work Systems Models S. Alter, Work System Method IS architectural components and development Mid-Range Modeling ERP as instantiation of Architectures Architectural Modeling options 21