1. Remember our discussions about business service configuration ?
Your Mobile Phone’s Service Architectural Components
Your Mobile Phone’s Bundled Services
Call Centre
Services
Apps Software Services
Reseller Services
ICT Network Services
Your Service Oriented Mobile Phone
Product
Phone Supply Services
Refresh students to understand how ICT enabled business services are configured and offered as “products” to consumers
Eg SayTelstra EA Specs for its Mobile Phone Product Lines
There will be various EA of say Telstra’s products of its different Business Units, all collectively functioning to support some underlying strategic programs
EA Specs of other Product Lines

2. Understanding EA Value starts with understanding What is IT Generated Value?
IT as an Resource Value is:
Featured in its
Hardware
Software
Supported business processes
People skills
Measured by productivity, on-time & quality indicators
The interaction of IT & Bus creates business value, which:
Is of an economic and/or strategic nature;
Has different facets, depending on business priorities;
Can be measured using different metrics (KPI + measures) relevant to the appropriate business contexts;
Are created via projects of BUs
ICT
Business Activities
Source
Adapted from: ;

3. EA Value translation into Business Value
EA = Strategy + Business + Technology
ICT
Business Activities
EA creates sustainable Business Value when its compliance ensures:
ICT resources are used efficaciously in strategic and improvement projects  contributing to competitive business service affordability & quality
ICT enabled services are configured and sustained in the provisioning of business services to create & sustain strategic and/or operating value

4. The Value of EA as an Enterprise Service Resource
Strategy Planning
EA as an in-house service needs to be used efficaciously:
Its co$t of development & on-going maintenance must be affordable
Its compliance in projects that create strategic advantage and/or operating improvements in business value must be effective, including easier & least time needed to comply & update if needed

5. The Value of EA as an Enterprise Service Resource
Strategy Planning
In strategy (and any other levels of) planning activities, EA provides a whole of organisational perspective of how IT can be infuse with other resources to configure value adding business service. EA does this by:
Giving clarity in projects of what business value their development of ICT enabled business services can bring to contribute to strategic & business operating goals
It improves strategy planning because it aligns strategy with business and technology development and operating capabilities
It improves decision making by clarifying what is involved in configuring and using resources to create value adding ICT enabled business services
It improves communication by having a common and shareable documentation approach and artefacts to convey & change service configurations for strategic and improvement reasons

6. KPI is a metric system for qualifying or quantifying resource and business value
Corporate Strategy  Core Competency Service
Corporate level
Technology Strategy  Service
Business Strategy  Service
ICT Level
Business Level
Objective
Eg Strategic objective is create cost advantage in regions A, B, C
Measures 1..n
is measured by 1..n
Key Performance Indicator (KPI)
Note that in EA, strategy planning occurs at 3 levels – corporate, BU and ICT
Eg Financial indicators can include:
Different types of costs
Different financial ratios
Sub-classifies
Quantifies/qualifies 1..n
Is quantified/qualified 1..n
Measure
Eg Financial cost indicators can include:
Labour costs, which is measured annually or quarterly or monthly in the currencies of regions/countries a firm operates in

7. Example of KPI + Measures
Source:

8. Example: Business Value created by use of EA
Case Study – Project that aligns the ICT of USA federal, state & local governments.
The cost-benefit analysis findings (business value):
Financial Cost Savings
Service Provisioning Improvements
Lesser Duplications & Waste
Higher economic growth building capacities
Consistent community services independent of political changes
Source:

9. Example: Business Value created by use of EA
Same Case Study – More in-depth analysis of cost savings by each USA state
Source:

10. EA Risks
Financial risks: cost too much to build & maintain EA capacity
Lack of Acceptance by Power Brokers
Lack of Key EA Personnel
Project Delays  additional EA development & compliance
EA Documentation complexity in maintaining synchronised current & future EA views
Source:

11. Example of a typical Risk Management Process Model
Source:
Risks Prevention
Risks Mitigation
Risks Recovery

12. Risk Management
Risk - the effect (positive or negative) of uncertainty on objectives.  Risk is considered with reference to possible consequences and likelihood of occurrence (ISO definition)
The actual consequences of risks are often called problems and issues
If EA is to enable the creation of value adding ICT enable services, then think of what causal factors (risks) that can erode the work performance of this intent.
Examine the value creation of EA in text and think of the reverse and what may cause it
Strategic or operational
Over achieves
Above KPI
Aims for
Objective
Target KPI
Risk Occurrence results in KPI variances & other unforseen effects
Under achieves
Below KPI
Risk Assessment:
ID the uncertainty causes of KPI variances & other dangers
Measures the impacts of risks
ID the appropriate risk prevention, mitigation (containment) and recovery strategies

13. Setup + Compliance + UPDATE
Cost Drivers of EA
In Projects
Setup Compliance UPDATE
EA Staffing & Consultant Costs
EA Activity Costs
EA Equipment/Tools’ Costs
Involvement of other Stakeholders – the costs of their time, resource provided, etc
Cost Drivers can be potential Cost Risks – How?

14. Strategy Planning 101 Corporate Level Strategy Planning
Global strategies
Regional strategies
Multi-domestic strategies
The Devil is in the details
Corporate Level Strategy Planning
Strategic BU Strategy Planning
Operating BU Strategy Planning
Core Competencies (Strategic Service) Development Projects’ Plans
Business Service Improvement Projects’ Plans
Strengthened by higher operating efficacy
Delivered by strategic projects’ outcomes

15. EA in the Alignment of Strategy, Business & Technology
Corporate  BU  Market strategy plans
Target Market Share Outcomes
Strategic Requirements
Evaluates Outcome Variances to identify causes in resource/service quality & configuration
Ensures business requirements are captured and modelled appropriately to guide ICT project & operations work & outcomes
Ensures Strategy influence business & ICT decisions, changes & project scope & outcomes
Realised
Business Results
Product & Service Lines
Product & Service Configurations

16. Corporate Strategy Contexts
An (over simplified) view of how corporate level strategy influences all other levels of strategy planning to value adding service development
Corporate Strategy Contexts
Must drive
Need to understand which service configuration design components & packaging are strategically & operationally value adding

17. Case Study Analysis What is the potential value of DMC EA proposal?
What are the possible risks in the DMC EA proposal?
How can EA can help develop views of this business’s strategic direction and goals; business services and supporting resources?

18. Q8 Do you agree with the need for an EA program in the case study?
Sales & Inventory Tracking System
(SITS) – ~2 years RoI, $3mio++
Integrate info across
Sales
Inventory
Production
Capacity to compete with competitor
Mitigate production inefficiency
Kate Jarvis (COO)
Rob Danforth (CEO)
Gerald Montes
(Chief Council)
Decision Options: Buy 1, Buy 2?
Students need to understand what is the problem at hand, then figure out whether EA is value adding to the problem solving.
ICT systems are used for both strategic and operational purposes.
Kate’s proposal is improving current production and building new capacity to compete. But is her proposal aligned to the organisation’s strategy plans?
Jim/Sam’s proposal is operational, aims to improve cost management capacity. CFO are also money tight, they rather buy proven and cheaper solutions.
The dilemma is Rob and Gerald have a hard time to figure what to decide.
The company is new to EA, and Sam, where knows something about EA, he is young and may not have the hardcore experience to know what are EA adoption pitfalls, especially setup risks which may turn into an expensive overhead with no visible benefiting outcomes to the business.
Without EA – the “as is” current situation. Leadership has no ability to generate clear and consistent views of the enterprise on an on-going basis. This problem Danforth Manufacturing is facing will repeat in the future when their legacy systems need replacing. Without an EA capability, they can’t effectively compare business units and decision making will always be influenced by line managers, program or system owner levels. Duplication and waste will always be operating problems when ICT systems are fragmented and not totally integrated , which will also negatively affect the efficiency and effectiveness of business functions, service provisioning and project work.
With EA, all these problems will be mitigated, hence not repeated in the future. It also gives the enterprise the capacity to perform ongoing controlled adaptation and optimisation to internal (eg improvements) and external (eg business) changes. EA can also help the enterprise to better evaluate M&A opportunities as they have the capacity to identify and clarify the target organisation’s capabilities, assets, culture, etc.
Some useful additional reading
Improve cost management
Scene 1
Cost Accounting Module
WELLCO ERP System
18 months RoI, <$600K
Jim Gorman
(CFO)
Sam Young
(CIO)

19. Lily Jefferson
System Analyst
EA will align each current & future departments, increase cost savings into the future, BUT will cost additionally $121,600 & 2 months
Vince
The Albright
Architect 3
Discuss the merits and limitations of the CIO’s (Sam) EA Plan for Financial and Production Segments?
What is the value in terms of cost savings & scalability of solution? 1
What is DMC organisation culture?
Infer DMC’s Strategic Goals
Eg New Custom Order Line of Business for Next Year
What is wrong?
Some answers:
Merits:
Gives overview of Kate & Jim’s system requirements and how they can integrate and operate as one
Experts in EA team – less learning risks and costs in setting up
Got buy-in from key stakeholders to setup a EA program in DMC
Sam is still taking a system-level perspective in conducting EA
He is creating his own EA department, as every-time a new department emerges, his EA team is needed
His quote only covers setup cost, what about on-going enhancement/maintenance/update costs
DMC has no strategic direction – the future evolves with no strategic planning
CEO is also operational in his thinking about cost savings and scalability of current & future IS in DMC
He didn’t even address the organisation structure of DMC, which will give him better insights into DMC strategic positioning and foci, rather than just deciphering from Kate & Jim’s department requirements
Sam didnt mention any thing about business processes, services, etc and also did not explain the EA methodology he is taking
His EA recommendation does not resolve Rob’s decision making problem.
Conclusion:
The culture of the organisation is one that is operational minded and strategic thinking is limited to priority on cost savings.
Sam’s EA approach does not give a clear framework of how DMC’s strategies integrate into its business units and information systems. 2
Can you describe DMC organisation structure?
Analyse Kate & Jim’s System Requirements
Scene 2
Sales & Production
Department
Finance
Department

20. Scene 3 Meeting Discussion Highlights 2 Critical Success Factors
EA Team
Given the mandate to develop 2 segments of DMC’s EA.
First deliverable: business case & EA Dev project plan
Produced
Meeting Discussion Highlights
2 Critical Success Factors
Inclusive stakeholder involvement
Agreed EA Methodology
DMC EA Plan: Financial & Production Segments Report
Elaborate the EA Approach / Methodology proposed in report
EA Development timeline
EA modelling steps involved
Planning & decision making information specs, including preferred documents’ formats
Selection of EA modelling techniques & tools
EA scenarios – Current & Several Future views
Agreement of planning assumptions
Evaluation of Kate/Jim’s systems and retrofit in EA scenarios
Explanation of how the EA methodology’s framework to structure DMC EA and guide its various EA modelling/ documentation activities
Scene 3
Meeting Outcomes: Agreed EA Methodology & EA Documentation Framework
Next Meeting Goals: Understand how the 2 outcomes are used to document the current & future models of Jim + Kate’s business units/departments

21. DMC EA Plan: Financial & Production Segments Report
EA Team
Given the mandate to develop 2 segments of DMC’s EA.
First deliverable: business case & EA dev project plan
Produced
Inferred Business Case Contents
Chosen Jim/Kate’s areas as the 2 EA segments because they cover several lines of business (LoB)
Analyse DMC’s strategic goals, business activities & technology capabilities
Specified the 2 areas’ business and ICT requirements
DMC EA Plan: Financial & Production Segments Report
Inferred Methodology Contents
EA Development timeline
EA modelling steps involved
Planning & decision making information specs, including preferred documents’ formats
Selection of EA modelling techniques & tools
EA scenarios – Current & Several Future views
Agreement of planning assumptions
Evaluation of Kate/Jim’s systems and retrofit in EA scenarios
Explanation of how the EA methodology’s framework to structure DMC EA and guide its various EA modelling/ documentation activities
What is the potential value of DMC EA proposal?
At this stage, we can only understand the value of EA when used in DMC’s strategy planning at corporate and business units’ levels. Hence the value of EA being used as a planning service relate to:
Giving clarity in projects of what business value their development of ICT enabled business services can bring to contribute to strategic & business operating goals
It improves strategy planning because it aligns strategy with business and technology development and operating capabilities
It improves decision making by clarifying what is involved in configuring and using resources to create value adding ICT enabled business services
It improves communication by having a common and shareable documentation approach and artefacts to convey & change service configurations for strategic and improvement reasons
What are the possible risks in the DMC EA proposal?
Vince (Chief Architect) mentioned that 2 critical success factors (CSF) ie stakeholders’ involvement and the EA methodology. What drivers can break these two CSR will present risks to this EA project. Another clue detected in the case story is that Vince mentioned that the methodology is important to ensure business requirements drive the EA models. Hence the quality of these business requirements is another CSF – these business requirements should include strategic to operating requirements at all levels. Any drivers that compromise the quality of DMC strategic and operating requirements are potential risk. Last week, we discuss a potential weakness in DMC culture – that it has an operational mindset. If the consultants do not correct that operational mindset, then the EA outcomes are likely to reflect a firm that is more operational inclined than strategic.
Other risks can be deduced from the many EA program value mentioned in the text. For example, shortening planning cycles can be reword to present a risk in taking longer time and costs to do DMC’s planning, which may result in the firm missing market opportunities because they now require taking longer time to market. Search the Internet for more risks.
Your need to summarize your risk analysis in a table:
Identified Risk description
Consequences when risk occurred
What can you do to prevent & mitigate the risk occurrence?
How can EA can help develop views of this business’s strategic direction and goals; business services and supporting resources?
The EA methodology will require DMC to articulate their strategy planning and document clear specifications of their strategic elements to at least a corporate level and Kate/Jim’s Bus’ perspectives.
These strategic specs should guide the EA team to collect and analyse operating data which reflects the implementation forms of these strategy plans. The analysis can identify the strategic implementation strengths and weaknesses as they prevail in DMC now  revealing gaps that the future EA scenarios can address and close.
The business requirement specs of Jim/Kate’s areas will also disclose detailed information about these BU’s products/services provisioning and resource management capabilities, including identifying the weaknesses and strengths of these capabilities. Solutions for closing the gap (weakness) analysis findings can be discussed and agreed in future meetings, and the agreed solutions will be included in the future EA scenarios development later on.
(You need to read chapters 4 to 8 to really address this Q properly. At this stage, a first guess answer is as good as can be. Obviously those with more knowledge and experience about EA will come up with more articulated answers)
This Meeting’s Goals Achieved: To Agree the proposed EA Methodology & EA Documentation Framework
Scene 3