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Design an EA Strategy to Articulate the Value Proposition of the EA Function Maximize the likelihood of EA success by communicating EA’s expected contributions.

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Presentation on theme: "Design an EA Strategy to Articulate the Value Proposition of the EA Function Maximize the likelihood of EA success by communicating EA’s expected contributions."— Presentation transcript:

1 Design an EA Strategy to Articulate the Value Proposition of the EA Function
Maximize the likelihood of EA success by communicating EA’s expected contributions to the business.

2 ANALYST PERSPECTIVE Enterprise architecture is a strategic planning discipline, not red tape. The role of enterprise architecture (EA) is often misunderstood or unclear. Organizations without an EA function struggle to articulate the business need for a formalized discipline. Organizations with an existing EA function face additional hurdles as stakeholders are unsure of EA’s value. In response, EA needs to have a sponsored practice strategy that is anchored in an EA value proposition. This value proposition will set the appropriate expectations of the EA function, and will clearly articulate the role of EA in helping the enterprise achieve its strategic goals. Gopi Bheemavarapu, Director, CIO Advisory Info-Tech Research Group

3 Our understanding of the problem
CIO Head of Enterprise Architecture Articulate the value of EA and make the case for setting up a formalized EA function. Establish the strategy and direction of the EA function. Align and tailor the purpose of the EA function to best support the organization. Enterprise Architects Domain Architects Set up the EA function based on the business and technology landscape of the organization. Optimize the EA strategy of your existing function.

4 Executive summary Over the last few years, there has been an increased emphasis on short-term decision making and agility by organizations (Bowen, Fillmore). Advances in technology have made business and technology much more intertwined (Cisco). The digital movement has given rise to a distributed adoption of technology. EA can deliver many benefits to an organization. However, in order to increase the likelihood of success, the EA group needs to deliver value to their organization based on the operating environment and the direction of the enterprise. An EA strategy anchored in a value proposition will ensure that EA focuses on driving the most critical outcomes in support of the organization’s enterprise strategy. Organizations lack a strategic planning entity to provide a holistic view of both the business and its technology. Organizations that lack a holistic view do not have their investment decisions supporting each other (Burns, Peter et. al). Short-term focus results in sub-optimal investments in capabilities and technologies. This results in organizations missing expected benefits. Create an EA value proposition based on enterprise needs that clearly articulates the expected contributions of the EA function. Establish the EA fundamentals (vision and mission statement, goals and objectives, and principles) needed to position the EA function to deliver the promised value proposition. Identify the services that EA has to provide to the organization in order to deliver on the promised value proposition.

5 Technological advances have decreased time to decisions, making accurate strategic planning essential Technology has officially crept into every corner of business. As a result, every department has its own technology demands and the potential for IT budgets to grow unchecked has skyrocketed. This has resulted in organizational leaders requiring more technology-related leadership and advice to drive the strategic planning process. Source: 5Q Partners Time to old investment decisions Time to new investment decisions Frequency

6 Organizations lack a strategic planning entity that provides a holistic view for both the business and technology The economic crisis has taught organizations a critical lesson: Only by focusing on long-term value can they ensure their survival during difficult times – and be ready to change when the opportunity or the need arises. Among the capability to create value now and in the long term is mastery of EA – the effort to align an enterprise’s operations, including business functions, processes, and information systems, with its business goals and strategic direction. – Peter Burns, Booz & Company, Building Value through Enterprise Architecture

7 Business current state Enterprise Architecture
The answer to the strategic planning entity dilemma is enterprise architecture Enterprise architecture is a discipline that defines the structure and operation of an organization. The intent of enterprise architecture is to determine how an organization can most effectively achieve its current and future objectives. Source: Rouse, SearchCIO.com Business current state IT current state Enterprise Architecture IT asset management Database services Existing capability Existing capability Existing capability Application development Existing capability Existing capability Business target state IT target state Existing capability Existing capability Existing capability IT asset management Database services Existing capability Existing capability New capability Application development Business analytics Enterprise architecture can become a strategic planning function because it can provide a holistic view of both the current and target state for the business and IT.

8 Organizations with EA functions outperform their peers without EA functions
Info-Tech’s clients have demonstrated that by having an EA function their organizations can reduce costs, increase regulatory compliance, and achieve faster time to business value. Source: Info-Tech Research Group, N=89

9 Existing EA functions vary in the value they achieve due to their level of maturity
Operationalized EA function is operationalized and operates as an effective core function. Effectively aligns business and IT through governance, communication, and engagement. Decreased cost Reduced risk Reduced complexity Increased agility Common EA value Emerging Emerging but limited ad hoc EA function. Limited by lack of alignment to business and IT. Source: Burns, Booz & Co.

10 Successful EA functions distinguish themselves by gathering support at the top
To create a successful EA function, an organization must first seek to communicate how the EA function can add value to the top stakeholders in the organization. Doing so will create strategic alignment, which is cited as the biggest factor in generating value for EA . Description: The extent to which the EA function is involved in both business and technology strategic planning and how well EA engages with the wider organization. Link to value: EA functions that reported common EA values achieved a 1.7 higher score on strategic alignment vs. EA functions that did not report value. Score is on a 5 point scale. The leading practices to achieve strategic alignment for mature and, in turn, successful EA functions is to focus EA on issues most relevant to the business. Challenges: 40% of respondents view strategic alignment as the key challenge to maturing an EA function and then making it drive value. Source: Burns, Booz & Co. Ultimately, the success of any EA function depends on its relevance to business decision makers, and the business value it creates — and that, in turn, depends on how helpful it is in aligning enterprise structure with overall business strategy. Thus, every EA function must be structured from the start to ensure its efforts are directed toward projects of significant business importance. – Peter Burns, Booz & Company.

11 Establish the foundation for EA function success with an enterprise architecture strategy
This blueprint focuses on creating an enterprise architecture strategy by creating an EA value proposition, EA fundamentals, and defining EA services. Enterprise architecture strategy Enterprise architecture operating model This blueprint focuses on setting up an enterprise architecture function, with the goal of maximizing the likelihood of EA success. The blueprint puts into place the components that will align the EA function with the needs of the stakeholders, guide the decision making of the EA function, and define the services EA can provide to the organization. An EA operating model helps design and organize the EA function, ensuring adherence to architectural standards and delivery of EA services. This blueprint acts on the EA strategy by creating methods to engage, govern, and develop architecture as a part of the larger organization.

12 Construct the EA strategy by creating a value proposition, a set of EA fundamentals, and defining EA services Establish an optimal EA strategy through the following steps. Use Info-Tech’s deliverables to help produce the outputs in each step. Phases Outputs Deliverables Value Proposition Identified and prioritized EA stakeholders Business and technology drivers EA function value proposition Stakeholder Power Map EA Value Proposition Template 1 EA vision statement EA mission statement EA goals and objectives EA scope EA principles EA Goals and Objectives Template EA Principles Template – EA Strategy EA Fundamentals 2 EA Service Design EA Service Planning Tool EA function services 3

13 Document the outputs of each activity
Use Info-Tech’s EA Function Strategy Template to help document your organization’s EA strategy Record the outputs of the activities in this blueprint using the EA Function Strategy Template. The template, once completed, creates a document that can be used to communicate the EA strategy to organizational stakeholders. Document the outputs of each activity Outputs covered by template Template prompt Each slide in the EA Function Strategy Template will prompt the user to fill in the output for different activities. The prompt will be denoted by “[x.x].” For example, [2.1]. 1 Business and technology drivers EA function value proposition EA vision statement EA mission statement EA goals and objectives EA scope EA principles 2 This icon denotes a slide with an associated activity. The activity slide will be numbered, for example 1.3. Find the activity slide that matches the numbering on the template prompt, then record the generated output in the template. EA function services

14 EA-enabled business outcomes Business-IT strategic planning
Measure the EA strategy effectiveness by tracking the benefits it provides The success of the EA function spans across three main dimensions: The delivery of EA-enabled business outcomes that are most important to the enterprise. The alignment between the business and the technology from a planning perspective. Improvements in the maturity of the EA capability – if it already exists. EA-enabled business outcomes Business-IT strategic planning EA capability Reduction in operating costs Decrease in regulatory compliance infractions Increased revenue from existing channels Increased revenue from new channels Faster time to business value Improved business agility Reduction in enterprise risk exposure Alignment of IT investments to business strategy Achievement of business results directly linked to IT involvement Reduction in IT integration cost Higher organizational satisfaction with technology-enabled services and solutions Approved staff increase Percentage of IT projects involving EA contribution Percentage of business projects with EA involvement Frequency of EA service usage Stakeholder satisfaction with EA services Strategic Type of Metrics Operational

15 Create the optimal EA strategy by utilizing personnel who understand a broad set of topics in the organization Assemble a team to assist with developing the outputs of the EA strategy. Below are some of the personnel characteristics an organization should consider when assembling the EA strategy creation team: Someone that has been in the organization for a long time and has built strong relationships with key stakeholders. This individual can exert influence and become the EA strategy sponsor. An individual that understands how the different technology components in the organization supports its business operations. The team assembled to create the EA strategy will be defined as the “EA strategy creation team” in this blueprint. Someone in the organization that can communicate IT concepts to business managers in a language the business understands. An individual with a strategy background or perspective on the organization. This individual will understand where the organization is headed. Any individuals who feel an acute pain as a result of poorly made investment decisions. They can be champions of EA strategy in their respective functions.

16 The Enterprise Architecture Strategy covers the following components:
An oil & gas corporation created an EA strategy to kick start a successful EA function CASE STUDY Industry Source Oil & Gas Info-Tech Situation An oil and gas corporation operates in the Middle East, Latin America, and the United States. The CIO of the U.S. division gave the IT team a mandate to create an enterprise architecture function. Complication There was no formalized EA function in place at the oil and gas corporation. Hence, there was no understanding as to the activities of an enterprise architecture function. This lack of understanding permeated both the IT team and business stakeholders. Further, EA roles had already been created in the organization. Due to the upfront investment in personnel, the EA function needed to succeed. Resolution Info-Tech worked with the organization to create an EA strategy and define its EA operating model. As a result of the activities of the EA function, EA at the organization has evolved from an order taker to a strategic partner. Further, due to the insights discovered by EA, it has now become a key contributor to creating the organization’s IT strategy. The Enterprise Architecture Strategy covers the following components: Stakeholder Power Map Value Proposition EA Fundamentals EA Function Scope EA Service Design Legend Component falls into the scope of the case study

17 Use these icons to help direct you as you navigate this research
Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities. This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project. This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization.

18 Info-Tech offers various levels of support to best suit your needs
Guided Implementation “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” Workshop “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” Consulting “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” Diagnostics and consistent frameworks used throughout all four options

19 Design an EA Strategy – Blueprint Overview
1. Value Proposition 2. EA Fundamentals 3. EA Service Design Best-Practice Toolkit 1.1–1.5 Identify EA stakeholders, gather business and technology needs from information sources, and synthesize needs into drivers. 1.6–1.8 Create an EA value proposition from business and technology needs by identifying pains, EA contributions, and promises of value. 2.1–2.2 Create the EA vision and mission statements. 2.3–2.5 Create EA goals and EA objectives. Link the EA objectives to EA goals, and record the details of each EA objective. 2.6–2.8 Determine EA function scope. 2.9–2.11 Define EA principles, their rationale and implications, and how they will be operationalized. 3.1–3.2 Define the EA services relevant to your organization. 3.3 Complete the service catalog fields for each service to show users how each service can be consumed. 3.4 Secure the approval of your organization’s EA strategy. Guided Implementations Define the business and technology drivers of the organization. Create an EA value proposition linked to business and technology drivers. Realize the importance of EA fundamentals. Create the EA function scope. Define the EA principles for the organization. Define the relevant EA services to your organization and how they will be consumed. Finalize the set of services and secure approval for the EA strategy. Onsite Workshop Module 1: EA Value Proposition Module 2: EA Fundamentals Module 3: EA Service Design Phase 1 Outcome: Create the EA function value proposition. Phase 2 Outcome: Create EA fundamentals (EA vision and mission statements, EA goals and measures, EA principles). Identify the EA function scope. Phase 3 Outcome: Define EA services the organization is committed to providing. Secure approval for the EA strategy.

20 Workshop overview Contact your account representative or for more information. Workshop Day 1 Workshop Day 2 Workshop Day 3 Workshop Day 4 Activities Identify stakeholders and their needs 1.1 Identify and prioritize EA stakeholders. 1.2 Review strategic documents to understand organizational plans. 1.3 Conduct PESTLE analysis to identify business and technology trends. 1.4 Interview stakeholders to identify business and technology needs. Create the EA value proposition 2.1 Create business and technology drivers from needs. 2.2 Identify pains that obstruct stakeholders from addressing drivers. 2.3 Brainstorm EA contributions to alleviate pains. 2.4 Define promises of value to articulate the EA value proposition. Define the EA fundamentals 3.1 Create the EA vision and mission statement. 3.2 Define the EA goals and objectives. 3.3 Determine EA scope. 3.4 Create a set of EA principles. Identify the EA services and communicate the EA strategy 4.1 Define the services the EA function will provide. 4.2 Plan next steps for the EA function. 4.3 Present workshop recommendations to EA stakeholders. Deliverables Stakeholder Power Map PESTLE Analysis Stakeholder interviews List of business and technology needs List of business and technology drivers. List of pains associated with business and technology drivers. Set of EA contributions to alleviate the pains. Promises of value to articulate the EA value proposition. EA vision statement. EA mission statement. EA goals and objectives. EA scope. List of EA principles. Defined list of EA services that the EA function is committed to providing. Executive presentation to EA stakeholders.


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