1. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 1/14 What value does EA provide? How can organizations use EA to support large-scale business transformation?

2. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 2/14 Agenda  Enterprise Architecture and Business Transformation  RetailCo’s $1 Billion Business Transformation  Enterprise Architecture Benefits at RetailCo  Lessons for Realizing Enterprise Architecture Benefits

3. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 3/14 Enterprise Architecture and Business Transformation  Enterprise architecture (EA) helps an organization to develop and articulate a vision for its use of IT to support its strategic business priorities and facilitates the journey to realize this vision.  EA helps improve business-IT alignment and agility, and maximize value from the organization’s IT investments through a coherent and strategic digital business platform.  “The architects were very good at explaining and giving direction throughout the transformation. Without them, we wouldn’t have accomplished half of what we have.”

4. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 4/14 Agenda  Enterprise Architecture and Business Transformation  RetailCo’s $1 Billion Business Transformation  Enterprise Architecture Benefits at RetailCo  Lessons for Realizing Enterprise Architecture Benefits

5. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 5/14 RetailCo’s $1 Billion Business Transformation 1/3  RetailCo is one of the two largest players in the Australian retail market.  During the five years covered by this case study, the company had annual revenues over $30 billion and more than 150,000 employees and six key business units (Supermarkets, Fuel, Hardware, Clothing, Office Products and Department Stores).  Technologies available to meet organizational IT needs have evolved considerably, shaped by trends such as  data analytics,  cloud-based services,  social media and  mobile devices

6. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 6/14  The Case for Transformation  RetailCo was increasingly threatened by its key rival.  The existing IT systems were impeding its ability to rapidly respond to competitors.  Top priority was to improve RetailCo’s competitive position.  The key focus areas included instilling a sense of “one team”, cost reduction and a continuous business improvement program including merchandising process integration, supply-chain optimization and shared services.  Repositioning the IT Team  To put “the right organizational structure, with proper governance, processes and procedures.”  The IT team was also repositioned away from:  An inward-looking to a customer-service and delivery focus,  A technology mindset to a business solutions mindset and  A “build” to “buy” skillset. RetailCo’s $1 Billion Business Transformation 2/3

7. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 7/14 RetailCo’s IT Organization after the Restructure

8. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 8/14 RetailCo’s EA: 2003 Baseline

9. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 9/14 RetailCo’s EA: Vision for 2007

10. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 10/14  Seven general IT principles for the transformation:  Shift from a business-unit focus to a process focus  Simplify the IT platform  Consolidate and renew IT  Buy not build  Adopt a two-vendor policy  Be transparent and accountable  The project manager is king.  Delivering the New Platform  The challenge was to implement the series of projects to deliver the much more standardized and integrated platform.  the roadmap developed by the EA team defined five key implementation phases:  foundation data,  four major functional areas (sales forecasting, pricing and promotions, store replenishment and warehouse replenishment) Seven general IT principles for the transformation: 3/3

11. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 11/14 Agenda  Enterprise Architecture and Business Transformation  RetailCo’s $1 Billion Business Transformation  Enterprise Architecture Benefits at RetailCo  Lessons for Realizing Enterprise Architecture Benefits

12. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 12/14 Enterprise Architecture Benefits at RetailCo  More Effective and Efficient IT Decision-making Processes  “You want to do all this interrelated stuff? Now hang on, let’s put a plan together that combines it.”  Successful Delivery of Transformation Projects  “Through EA, we could deliver capability faster through reuse, reduced duplication and the simplified IT landscape.”  A Better Digital Business Platform  “There were 11 financial systems, and driving it down to one instance provided a cost saving. It actually really did fund itself.”

13. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 13/14 Agenda  Enterprise Architecture and Business Transformation  RetailCo’s $1 Billion Business Transformation  Enterprise Architecture Benefits at RetailCo  Lessons for Realizing Enterprise Architecture Benefits

14. How an Australian Retailer Enabled Business Transformation Through Enterprise Architecture Tamm, Seddon, Shanks, Reynolds & Frampton - Dec 2015 Page 14/14 Lessons for Realizing Enterprise Architecture Benefits  Lesson 1: Rebuild EA Capability Early  Lesson 2: Establish a Strong EA Mandate  Lesson 3: Adopt a Flexible Approach to EA  Lesson 4: Build Constructive EA-Project Relationships  Lesson 5: Adopt a Service Mindset for EA