Enterprise Architecture As Business Capabilities Architecture
PROCESSBusiness Process eContentContentMgtEditContentPERFORMANCE MANAGEMENTBalanced ScorecardsConsultants“PotentiaContactlmat candidatech”Available es)AccountmanagerYesInterviewbyconsultantJob postingmechanismNoYeInterview bysclientYesYTake job?esCandidates(CVs)FeedbackRejecAcctOffer made eptNto candidateoJob takenOutputsSearch andupdatefacilityInputsDatabaseCompany-Wide ScorecardPerformance MeasurePerformance MeasurePerformance MeasurePerformance MeasurePerformance MeasurePerformance MeasurePerformance MeasurePerformance MeasurePerformance MeasureDatabasemanagerNoLOCATIONSFacilities, Distribution, Physical sinessMgtTechnologyMgtTECHNOLOGYInformation, Applications,Infrastructure Architecture ViewsP ro d uc tD e sig nPEOPLEOrganisation DesignK n o w led g eM gtC u s to m e rM gtSiebelVignetteD a taA cq u is itio nC o n te n tM gtC re ateP rod u ctP e o p leD v lp m tSAPB u s in e ssM gtE d itC o n te n tWebSphereeD istrib u teP ro du ctT e ch n o lo g yM gtEnterprise Architectureas Business Capabilities ArchitectureRuth Malan, Dana BredemeyerRaj Krishnan and Aaron LafrenzBredemeyer ConsultingTel: (812) 335-1653Fax: (812) 335-1652Email: dana@bredemeyer.comInquiries: training@bredemeyer.comWeb: http://www.bredemeyer.comAcknowledgmentsWe would like to thank Raj Krishnan who inspired and championed the BusinessCapabilities Architecture as the cornerstone of our approach to Enterprise Architecture. Herecognized the centrality of capabilities, and drafted our Enterprise Visual ArchitectingProcess (E-VAP) using capabilities as the organizing theme. We have taken that initial workand advanced it, used it with clients, and moved the whole frontier forward, but Raj deservescredit for the inspiration and genesis of the capabilities approach that we promulgate. AaronLaFrenz, too, was instrumental in moving us into the Enterprise Architecture space. Hisideas and energy have had a great impact on our work, and we are much indebted to hisinfluence.Copyright 2002-2006 Bredemeyer Consulting1
Introduction Current state/desired state for IT Convergence of evolutionary paths of OrganizationDesign and Enterprise Architecture Enterprise Architecture as the architecture ofbusiness capabilitiesCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 2Copyright 2002-2006 Bredemeyer Consulting2
Common Current State for ITChange in competitivelandscapeInconsistent, duplicatedislands of dataBrittle, monolithicapplicationsRigid, inflexibletechnical ins,frustratesfrustratesBusiness strategyBusiness processesdisTechnology-enabledbusiness capabilities Rigid, brittle, aging systems Functional silos with insular pockets of systemdevelopment and procurement Bottom-up technical decision-makingCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 3“If the Federal Government continues to do what we’ve done (build non-architectedsolutions), we will continue to get what we have – a non-interoperable, expensive and everchallenging tangle of data, applications and technology.”- Source: FEAF Version 1.1IT Status QuoThe current state of IT, if allowed to persist, will result in maintenance of the status quo--withits rework, ever decreasing productivity, and lost opportunities. For the Federal government,it would mean failure to comply with the Clinger-Cohen Act, and for industry, it would meanthat competitors who adopt EA (and succeed in overcoming the organizational challenges)will have significant strategic advantage over those who do not.Copyright 2002-2006 Bredemeyer Consulting3
Desired State for ITStrategic Agility Enabled by TechnologyChange incompetitivelandscapeearly identification“business intelligence”Copyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comtriggerChange inEnterpriseStrategyshort strategyplanning cyclestriggerChange inbusinessprocesses andenablingsystemsadaptive processesand enablingtechnologyEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 4Strategic AgilityThe length of business cycles has decreased over the past two decades--the fast-pacedcycles are being called “hypercompetition.” Businesses have to be able to identify andrespond to changes in the competitive landscape. Increasingly, these changes have to dowith technology, which underpins innovations not just in products, but in services and valuedelivery, either directly or through the application of technology in innovative ways.Copyright 2002-2006 Bredemeyer Consulting4
Enter Enterprise Architecture Enterprise Architecture has been widely embracedas the route to this desired state Enable integrated business intelligence Connect strategy to execution Enable flexibility and adaptability, so that businesscapabilities can keep pace with changes in strategyCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 5Purpose of Enterprise Architecture Enterprise architecture provides a common basis for understanding and communicatinghow systems are structured to meet strategic objectives Instead of allowing a single solution (Custom or COTS) to drive the technology, EAprovides a balanced approach to the selection, design, development and deployment of allthe solutions to support the enterprise Enterprise architecture allows stakeholders to prioritize and justify often conflictingtechnology trade-off decisions based on the big picture Enterprise architecture leads to consolidation and simplification; more disciplinedapproaches to system planning, funding and development; better risk management withfewer false starts (Malan and Bredemeyer, June 2005).Copyright 2002-2006 Bredemeyer Consulting5
Rising Awareness ofEnterprise Architecture Clinger-Cohen Act of 1996 US Federal and State Agencies and Departments DCI, Gartner and Cutter have EnterpriseArchitecture Conferences or Summits Gartner and Cutter have Enterprise ArchitecturePractice Areas Open Group’s TOGAFCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 6Clinger-Cohen Act 1996The Clinger-Cohen Act (see www.ed.gov/offices/OCIO/legislation/clinger cohen.html) holdseach Federal Agency CIO responsible for developing, maintaining, and facilitating theimplementation of an information technical architecture. One of the outcomes is the FederalEnterprise Architecture Framework (FEAF) that the Federal CIO Council began developingin 1998 and issued in 1999.Copyright 2002-2006 Bredemeyer Consulting6
Examples of Enterprise ArchitectureIn the Public Domain Agencies of the US Federal and State government FEA: Federal Enterprise Architecture On the whitehouse.gov web site! NASCIO: Enterprise Architecture Development Toolkit, v. 3, 2004 HUD Case Study CMS Enterprise Architecture TOGAF Case Studies Dairy Farm Group (Hong Kong) Department of Social Security (UK), Ministry of Defence (UK),National Health Service (UK), Police IT Organization (UK) Litton PRC (US) NATO (Belgium) Westpac (Australia)Copyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 7Federal and State Enterprise ArchitecturesThe US Federal government and various State agencies have made a fair amount of theirEnterprise Architecture Resources (especially their Enterprise Architecture Frameworks, butalso at least parts of their Enterprise Architectures). These include: Centers for Medicare and Medicaid Services Enterprise tecture/01 Overview.asp#TopOfPage HUD’s EA Practice: HUD has various EA resources, including the Single Family Housing(SFH) case study, available on their web site s/. According to HUD, “implementation ofthe SFH blueprint will reduce the number of SFH systems by nearly 80 percent—from 30supported and 6 unsupported systems to approximately 7 core modules. The SFH blueprintminimizes functional overlap, and reduces the total cost of ownership by modernizing thetechnology base and decreasing maintenance costs.” A SFH case study presentation isavailable on the web at sfh.pdfTOGAF Case StudiesThe Open Group Architectural Framework (TOGAF) maintains an overview and links tomaterial on the application of TOGAF in the creation of Enterprise Architecture onhttp://www.opengroup.org/togaf/p4/cases/case intro.htm.Copyright 2002-2006 Bredemeyer Consulting7
What is Enterprise Architecture?Defining Characteristic The defining characteristic that differentiatesEnterprise Architecture from other architectures is: enterprise scope it crosses (internal) organizational boundaries e.g.,– covers multiple business units– crosses functional boundaries Why would we do anything across the scope of theenterprise?¾ It creates opportunities and allows problems to be tackled thatcannot be effectively dealt with at a “lower level”, i.e., a morenarrow scope¾ e.g., increase collaboration so that we can decrease duplication acrossbusiness units so that we can save on development costsCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 8Enterprise Architecture Scope Creates Opportunities--and ChallengesBy working across organizational boundaries such as different business units and functionalgroups, Enterprise Architecture allows the business to address issues such as shared access toinformation and reduced redundancy in development, hence lower costs. These are things thatcannot be addressed in organizational “silos” or “islands.”However, every time you work across organizational groups, and the more diffuse these groupsare in their vested interest, the challenges inherent in organizational acceptance, politics,commitment, etc., go up by orders of magnitude! That is why we pay so much attention to theseissues in our process (the Enterprise Visual Architecting Process or E-VAP) and in our Role ofthe Architect section.Why not Centralize Everything? Why not Decentralize Everything?Every large organization has had its pendulum swings from increasing fragmentation intocustomer-focused units to more integration across related market segments. We know from bitterexperience that each has its costs and benefits. More fragmentation but higher market segmentfocus leads to higher customer intimacy and innovation around the customer but increasesduplication, inconsistency and integration problems. On the other hand, more integration leads tohigher synergies across the business but dilutes customer intimacy and tends to slow innovation.Enterprise Architecture cannot simply be another pendulum swing towards centralized control.Bear in mind that Nash talks about collaboration, not centralization. Also, we can’t do everythingas a joint effort! We have to ask “Why do this at the enterprise level?” What does it gain us?What does having that gain us? Is this an enterprise priority? Can we get this by some othermeans? We have to pick strategically where to focus enterprise-scope, collaborative activity.Copyright 2002-2006 Bredemeyer Consulting8
Evolving Definition ofEnterprise ArchitectureEA ETAEA EWITAEIAEAA ETA The definition of EnterpriseArchitecture has been evolving Technology Architecture alonewas not sufficient to addressenterprise IT goals like “asingle view of the customer” Enterprise IT Architecturealone is not sufficient toensure business/IT alignmentEA BA EWITACopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 9Evolution of the Notion of Enterprise ArchitecturePart of the difficulty in coming up with a shared definition of Enterprise Architecture arisesfrom the fact that our notion of Enterprise Architecture is expanding.EA TA (Technology Architecture)Much of the early Enterprise Architecture work focused on enterprise-wide Technology (orinfrastructure) Architecture efforts -- this includes early work by META Group and TOGAF.Projects using this narrow concept of EA focused on establishing technology standards andprinciples, and often extended to attempts to inventory the various technologies in use in thecorporation (capturing the “as-is architecture”).EA EWITA (Enterprise-wide IT Architecture)It became clear that the goals of EA efforts had to be tackled on a broader front,encompassing Information and Application Architecture, not just Technology Architecture.This would allow the EA team to go after problems like “single view of the customer” andreducing redundancy across projects by improving application portfolio management.EA BA EWITA (Business Architecture Enterprise-wide IT Architecture)Recent work (e.g., Paul Harmon at Cutter, META Group, and a number of federal agencyEA projects) emphasizes the importance of including BA in the EA definition.Don’t be fooled though. A “Business Architecture” produced by an IT team may documentbusiness objectives and business processes and function, but is unlikely to be the activedesign and implementation of changes to the business process and structure. Since thebusiness side of the organization has the charter to structure their people and process, IT isnot going to be very effective in imposing process designs and structural changes on them.Copyright 2002-2006 Bredemeyer Consulting9
Evolving Definition of EABroader Scope, Higher Potential ValueValueEA BA EWITAEnhance Business/ITAlignmentEA EWITAEnhance ValueManagementEA TAReduce IT cost andenhance operationsScopeCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 10Increasing the scope of EAIncreasing the scope of EA to encompass more disciplines, increases the benefits to begained.EA TAEA EWITAEA BA EWITAReduce IT complexity andcosts:Support collaboration amongdifferent parts of theenterprise:- shared access to informationacross the business and,increasingly, from outside thebusiness by customers,partners, suppliers, evencompetitors- elimination of duplication insimilar applications fordifferent business functionsor different business units- address concerns that cutacross business units, suchas integration,interoperability, and securityIncrease enterprise agilityand alignment withbusiness strategy- increased convergenceconsolidates purchasing,lowers training costs,increases employeemobility in theorganization- enable changes inbusiness strategy withquick-response changes inenabling processes andtechnology solutions- inform strategy moreeffectively, because there isa strategic path foridentifying and integratingtechnology-enabledopportunities (and threats)Cynical view: Shaped by vested interests, EA grew to take on the maximum significanceimplied by the name.Alternative view: the full, multidisciplinary scope of EA is necessary to achieve what strategicmanagement really want from technology investments.Copyright 2002-2006 Bredemeyer Consulting10
Evolution ofOrganizational Design Organizational design has also progressed througha series of “revolutions” functional specialization business process reengineering enterprise architectureCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 11Copyright 2002-2006 Bredemeyer Consulting11
Organization DesignHierarchies and Silos Silo DesignCEOMktgMfgFin.HR developed functional silos withfunctionally-specialized processand procedure efficiencies in the silo independence within the islandsBUT Relies on the managementhierarchy for communication andcontrolCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.com inherently fragmented requires heroism at theinterfaces! customer-centered processesare inherently cross-functionalEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 12Hierarchy and Organizational DesignThe spirit of this style of organizational design persists, even if it is no longer the vogue tostrictly organize around functional specialties. You will constantly see re-organizationswhere a new CEO is marched in, the company is re-organized into a new bunch of silos withnew names and new chiefs. The silo specializes around its own cluster of internal concerns,because it is driven by a hierarchy.Copyright 2002-2006 Bredemeyer Consulting12
Enter Business ProcessRe-engineering BPR recognized that processescrossed functional lines have to pay attention to processacross the historical divides tomake order of magnitudeimprovements BUT ignored the force oftechnology it constrains as much asit enables!Copyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 13Business Process Re-engineeringBPR reaped results for some companies, and was a big resource sink for others, raisingtremendous organizational antibodies in the wake of failed attempts. Organizational changeand process design takes attention and resources.The other important illumination was recognizing that technology constrains and frustratesthe process if you ignore its force and do not shape technology to support the process andshape the process to be aligned with technical capabilities. For example, if you purchasesomeone else’s Enterprise System (ES) you will find that you either have to change yourprocess or the system will change your process for you.Copyright 2002-2006 Bredemeyer Consulting13
Evolutionary Paths Converge atEnterprise Architecture Organizational design and Enterprise Architecturehave converged because we cannot ignore technology in business process design we cannot ignore the business in technology solutiondesignCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.comEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 14Copyright 2002-2006 Bredemeyer Consulting14
Enterprise Architectureand Business CapabilitiesInformationcross-cutting concerns(business capabilities)Business ArchitectureBusiness processesOrg. StructureEWITAEIAEAAETAcross-cutting concernsCopyright 2002-2006 Bredemeyer Consultinghttp://www.bredemeyer.com Enterprise Architecture thearchitecture of businesscapabilities need to design businesscapabilities people process and technologyEnterprise Architecture as Business Capabilities ArchitectureMay 7, 2003 Slide 15Enterprise Architecture and Business CapabilitiesEnterprise Architecture recognizes that the organization is a system, and the cross-cuttingconcerns must be addressed first at the overall system level. It recognizes that you cannotsolve every detailed problem at once--you cannot hold complex systems entirely “in yourhead”. You need to find effective ways to decompose the problem. Focusing on businesscapabilities that support business strategy, first, then delving into the design of thosecapabilities, forms an effective way to consider people, process and technology together.Capability versus Process DesignProcess design focuses on activities to produce outcomes. Capability design includesprocess design, and adds technology to the consideration. This has become vital astechnology is a broad reaching enabler in all kinds of industries. We can see this best byreference to an example. While SAP systems have clearly
EA BA EWITA (Business Architecture Enterprise-wide IT Architecture) Recent work (e.g., Paul Harmon at Cutter, META Group, and a number of federal agency EA projects) emphasizes the importance of including BA in the EA definition.
CARESOURCE'S BUSINESS ARCHITECTURE PRACTICE ¡CareSource's Business Architecture practice is part of the Enterprise Architecture team ¡EA team uses Orbus iServer as our primary architecture tool ¡In 2020, launched a reset / maturing focus on the business architecture practices: ¡ Existing capability model rebuilt leveraging Business Architecture Guild's industry reference models
FEA Federal Enterprise Architecture FEAF Federal Enterprise Architecture Framework GEA-NZ Government Enterprise Architecture for New Zealand HR Human Resources IaaS Infrastructure as a Service IM/IT Information Management / Information Technology IT Information Technology IFEAD Institute for Enterprise Architecture Development .
VA Enterprise Architecture Per the Clinger-Cohen Act, it is a requirement for federal agencies to maintain an IT architecture (Clinger-Cohen Act of 1996). The government developed the Federal Enterprise Architecture (FEA) specifically for federal agencies, however; The VA uses its own architecture framework called the VA Enterprise Architecture.
Key elements of the Business Architecture may be produced elsewhere The enterprise mission, vision, strategy and goals may be produced as part of a wider business strategy or enterprise planning activity with its own life-cycle in the enterprise. The new architecture work will need to verify and update the currently documented business strategy and plans, and/or to bridge between high-level .
Business architecture - Describes the current and target business environments, focusing on the business processes and operations of the enterprise. System architecture - Defines what kinds of application systems are relevant to the enterprise and describes the applications as logical groups of capabilities that manage the information and support the business processes defined in the Business .
December 8, 2009 Business Capability Modeling: Theory & Practice 2 Topics Theory Business capabilities defined Why business capabilities are useful Characteristics of business capabilities Role of business capabilities in strategy to results process Practice Modeling capabilities in four easy steps Usin
According to the Institute for Enterprise Architecture Developments, "Enterprise Architecture is about understanding all of the different elements that make up an enterprise and how those elements inter-relate".6 Gartner Consulting says, "Enterprise architecture provides a decision framework, in the context of the
Architecture Trend 2: Project to Product Trend 3: The Democratization of Enterprise Architecture Trend 4: Continuous Improvement of Way-of-Working Trend 5: Enterprise Architecture as a Digital Twin of the Organization Summary of Enterprise Architecture Trends p. 3 - 6 p. 7 - 12 p. 13 - 21 p. 28 - 34 p. 35 - 41 p. 42 - 46 p. 22 - 27 Reference .
