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Architectural Alignment Pascal van Eck University of Twente Information Systems Group SIKS course “Architectures for IKS“ Vught, September.

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Presentation on theme: "Architectural Alignment Pascal van Eck University of Twente Information Systems Group SIKS course “Architectures for IKS“ Vught, September."— Presentation transcript:

1 Architectural Alignment Pascal van Eck University of Twente Information Systems Group SIKS course “Architectures for IKS“ Vught, September 28, 2006

2 2/60 © Pascal van Eck, University of Twente, 2006 Mission statement To put architecture in its organizational context, focusing on business and IT strategy

3 3/60 © Pascal van Eck, University of Twente, 2006 Outline 1/2 What is alignment? Strategic Alignment Model (Henderson & Venkatraman, 1993) GRAAL framework (Univ. Twente, 2004) Extension: Unified Architecture Framework (Maes et al., 2000) Validation case study (Avison et al., 2004) Quantitative approach (e.g., Tallon, Chan, ’97-’03)

4 4/60 © Pascal van Eck, University of Twente, 2006 Outline 2/2 What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan)

5 Architecture and Alignment Definitions What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan)

6 6/60 © Pascal van Eck, University of Twente, 2006 You’ve seen this one before Taken from: Stijn Hoppenbrouwer’s presentation, delivered yesterday. Architecture is about fundamental structural choices and their motivation Architecture is about fundamental structural choices and their motivation

7 7/60 © Pascal van Eck, University of Twente, 2006 Intel Microcode architecture Architecture and granularity Software architecture Enterprise architecture

8 8/60 © Pascal van Eck, University of Twente, 2006 Architecture alignment Architecture alignment: Allocation of IT budgets such that business functions are supported in an optimal way (outcome) “the continuous process, …, of consciously and coherently interrelating all components of the business – IT relationship in order to contribute to the organisation’s performance over time” (process) (From Maes et al., 2000)

9 9/60 © Pascal van Eck, University of Twente, 2006 Strategy, tactics and operations Strategy: external position of the organization Examples: Product/market combinations, make-or-buy decisions, human resource acquisition Impact of decisions: years Tactical level: realizing the strategy by internal means Impact of decisions: month(s) – 1 year Example: organization structure Operational level: day-to-day decisions Impact of decisions: day(s) – month(s) Example: hire temps in case of sudden increase in sales

10 The Strategic Alignment Model What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan) Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1):

11 11/60 © Pascal van Eck, University of Twente, 2006 Adapted from: Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1): Pre-1993 view on business/IT integration

12 12/60 © Pascal van Eck, University of Twente, 2006 Henderson & Venkatraman’s take home message #1 Similar to business strategy, IT strategy has to consider both internal as well as external aspects

13 13/60 © Pascal van Eck, University of Twente, 2006 Taken from: Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1): The Strategic Alignment Model (SAM)

14 14/60 © Pascal van Eck, University of Twente, 2006 Henderson & Venkatraman’s take home message #2 Both internal/external alignment as well as functional integration must be taken into account. Only one of them is not sufficient

15 15/60 © Pascal van Eck, University of Twente, 2006 Taken from: Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1): Four alignment perspectives

16 The Unified Architecture Framework [HV93] + [Maes99] = GAF GAF + IAF = UAF What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan) Maes, R., Rijsenbrij, D., Truijens, O. and Goedvolk, H. (2000). Redefining business–IT alignment through a unified framework. PrimaVera Working Paper , Univ. of Amsterdam.

17 17/60 © Pascal van Eck, University of Twente, 2006 Maes’ (1999) extension: the Generic framework More detail in the two H&V-dimensions Extra row: internal -> structure + operations “Designing and managing this organisational structure is above all an architectural issue: the combined contribution of business, information and technology architects is key to the long term health of present-day organisations, …” Extra column: IT -> information & communication + Technology “It is appropriate to state that the use and the internal and external sharing of information and not its provision are of strategic nature.”

18 18/60 © Pascal van Eck, University of Twente, 2006 Maes’s (1999) Generic framework

19 19/60 © Pascal van Eck, University of Twente, 2006 Maes’ et al.’s (2000) extensions: the Unified Framework CapGemini’s Integrated Architecture Framework (IAF) adds: Extra column: Technology -> Information Systems + Technology infrastructure Third dimension: five design phases Contextual (why?): mission & strategy Conceptual (what?): describes four architecture areas Logical (how?): operations & structures Physical (with what?): resources Transformational: roll-out Fourth dimension: specific viewpoints (e.g., security, governance)

20 20/60 © Pascal van Eck, University of Twente, 2006 The Unified Architecture Framework Taken from: Maes, R., Rijsenbrij, D., Truijens, O., Goedvolk, H. (2000). Redefining business–IT alignment through a unified framework. PrimaVera Working Paper , Univ. of Amsterdam. Where is the ? 4 th dimension

21 21/60 © Pascal van Eck, University of Twente, 2006 CapGemini’s IAF = UAF – (strategy/structure/operations) Taken from: See also:

22 Validation case study What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan) Avison, D., Jones, J., Powell, P., Wilson, D. (2004). Using and validating the strategic alignment model. J. Strat. Inf. Sys. 13:

23 23/60 © Pascal van Eck, University of Twente, 2006 Validation Case study source: financial custody services firm Worldwide: employees Australia: 400 employees Studied 55 IT projects carried out in 2000

24 24/60 © Pascal van Eck, University of Twente, 2006

25 25/60 © Pascal van Eck, University of Twente, 2006 Observed alignment Project category: OE: operating efficiency CD: client demand IU: infrastructure upgrade R: regulatory Area impacted: CA: competitive advantage H: health (ongoing maintenance) R: repositioning Taken from: Avison, D., Jones, J., Powell, P., Wilson, D. (2004). Using and validating the strategic alignment model. J. Strat. Inf. Sys. 13:

26 26/60 © Pascal van Eck, University of Twente, 2006 Main results Project category: OE: operating efficiency CD: client demand IU: infrastructure upgrade R: regulatory Area impacted: CA: competitive advantage H: health (ongoing maintenance) R: repositioning Taken from: Avison, D., Jones, J., Powell, P., Wilson, D. (2004). Using and validating the strategic alignment model. J. Strat. Inf. Sys. 13:

27 How to measure strategic alignment? The ‘American business schools’ approach What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan) Tallon, Tallon, P., Kraemer, K. (2003). Investigating the Relationship between Strategic Alignment and Business Value. Idea Publications, Hershy, PA, pp

28 28/60 © Pascal van Eck, University of Twente, 2006 Introduction Tallon & Kraemer, ‘03 (book chapter) Chan et al, 1997 (article in ISR) Is ‘more’ alignment always ‘better’? Venkatraman, 1989b (article in Mngt. Sc.) Venkatraman, 1989a (article in Ac. Mngt. Review) STROBE instrument STROEPIS instrument 6 models of linkage Relation align- ment & value

29 29/60 © Pascal van Eck, University of Twente, 2006 Tallon & Kraemer

30 30/60 © Pascal van Eck, University of Twente, 2006 Strategic alignment Essence of the papers in my words: Strategic alignment is the extend to which the IT infrastructure of an organization supports its strategic orientation

31 31/60 © Pascal van Eck, University of Twente, 2006 Strategic orientation What is it? An attempt to operationalize the notion of strategy How to measure it? For instance using Venkatraman’s STROBE instrument Reference: Venkatraman, N. (1989b). Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management Science, 35(8):

32 32/60 © Pascal van Eck, University of Twente, 2006 Strategy: 6 (or 8) dimensions Strategy is a multi-dimensional construct Taken from: Chan, Y.E., Huff, S.L., Barclay, D.W., Copeland, D.G. (1997). Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment. Information Systems Research, 8(2):

33 33/60 © Pascal van Eck, University of Twente, 2006 Example item Taken from: Chan, Y.E., Huff, S.L., Barclay, D.W., Copeland, D.G. (1997). Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment. Information Systems Research, 8(2):

34 34/60 © Pascal van Eck, University of Twente, 2006 Dimensions of strategy 1/2

35 35/60 © Pascal van Eck, University of Twente, 2006 Dimensions of strategy 2/2

36 36/60 © Pascal van Eck, University of Twente, 2006 Mind you … … this really at the strategic level Strategy: seeking the reasons why the organization still exists 3 years from now External orientation: adapting to the environment, choosing how to differ from the competition Tactical level: e.g. capacity planning for next month

37 37/60 © Pascal van Eck, University of Twente, 2006 IS support for strategic orientation Chan et al. (1997): STROEPIS instrument

38 38/60 © Pascal van Eck, University of Twente, 2006 Linkage / strategic alignment How to link STROBE and STROEPIS? Venkatraman (1989a) gives 6 options for this

39 39/60 © Pascal van Eck, University of Twente, 2006 Venkatraman’s linkage Venkatraman, N. (1989a). The concept of fit in strategy research: Towards verbal and statistical correspondence. Academy of Management Review, 14(3):

40 40/60 © Pascal van Eck, University of Twente, 2006 Linkage as moderation Z=f(X,Y,XY), with X: STROBE score Y: STROEPIS score Z: dependent variable (e.g., shareholder value) Data in Chan et al. (1997): This model has best fit

41 41/60 © Pascal van Eck, University of Twente, 2006 Conclusion Tallon & Kraemer’s book chapter Similar approach, not enough detail This community focuses on the strategic level exclusively How about tactical and operational alignment? You can only ask so much in a questionnaire

42 The GRAAL framework What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan) Eck, P. van, Blanken, H. and Wieringa, R. (2004). Project GRAAL: Towards Operational Architecture Alignment. Int. J. of Cooperative Information Systems, 13(3):

43 43/60 © Pascal van Eck, University of Twente, 2006 Project GRAAL Guidelines Regarding Architecture ALignment Goal: discovery of patterns in enterprise-level application architecture Based on case studies in Dutch financial service organizations and large government organizations Project page:

44 44/60 © Pascal van Eck, University of Twente, 2006 What is a system? A system is an assembly of components that behaves as a whole There is synergy between components … … and this synergy results in emergent properties A product is a system with properties that are useful for someone Examples The system of law The Dutch national soccer team uses a system ‘A systematic way of working’

45 45/60 © Pascal van Eck, University of Twente, 2006 System dimensions System aspects: externally observable properties Aggregation hierarchy: system composition in terms of components System life cycle: from conception to disposal

46 46/60 © Pascal van Eck, University of Twente, 2006 System life cycle Typical stages in the life of a system During design, we should deal with all stages Conception Acquisition (build or buy) Usage Maintenance (Corrective and perfective) Disposal Time

47 47/60 © Pascal van Eck, University of Twente, 2006 Software product aspects Aspects are what observers can observe Service = interaction Behavior: in what sequence (time) Communication: with whom (space) Meaning: about what SW product aspect Services Quality BehaviorCommunicationMeaningFor userFor developer UsabilityEfficiencySecurity....MaintainabilityPortability... The only aspect peculiar for symbol-manipulating systems

48 48/60 © Pascal van Eck, University of Twente, 2006 Aggregation Aspect and aggregation are independent Composite system System External entity External entity Component Behavior Communication Meaning Quality Behavior Communication Meaning Quality Behavior Communication Meaning Quality Behavior Communication Meaning Quality...

49 49/60 © Pascal van Eck, University of Twente, 2006 The meaning of aggregation C is a component of A if C provides service to A A encapsulates C If we drop encapsulation, we get layering CBC A1 A2 C B A1A2

50 50/60 © Pascal van Eck, University of Twente, 2006 Architecture layers Layer structure crosses worlds This is not possible with encapsulation Business environment Business Business software SW Infrastructure Physical infrastructure Primary service provision Social world Symbol world Physical world

51 51/60 © Pascal van Eck, University of Twente, 2006 Structure of the business system layer Business environment Business Applications: Functionality SW Infrastructure Physical infrastructure Primary service provision Social world Symbol world Physical world Information systems: Data Business systems serve particular user groups

52 52/60 © Pascal van Eck, University of Twente, 2006 Structure of the SW infrastructure layer Business environment Business Business systems Physical infrastructure Primary service provision Social world Symbol world Physical world Infrastructure serves all user groups OS, Network software DBMS, WFMS, Directory server, Web server,... Middleware Office SW, Browser,...

53 53/60 © Pascal van Eck, University of Twente, 2006 The physical world is BIG! Business environment Business Business software SW Infrastructure Processors, peripherals, UI devices, wires, electromagnetic waves, wireless access points,.... Radio network, electricity network, telephone network, water supply network, gas supply network, sewage network, road network,.... Buildings,... machine tools,.... Primary service provision Social world Symbol world Physical world

54 54/60 © Pascal van Eck, University of Twente, 2006 The framework Conception Acquisition Usage & Maintenance Disposal Services BehaviorCommunicationMeaning Quality Usability...Maintainability... System life Aspects Business environment Business Business SW (applications & information systems) SW infrastructure (OS, NW, MW, DBMS, WFMS,...) Physical infrastructure (Computers, network, access points,...) Service provision Social world Symbol world Physical world

55 55/60 © Pascal van Eck, University of Twente, 2006 Documents studied

56 56/60 © Pascal van Eck, University of Twente, 2006 Taken from: Henderson, & Venkatraman, (1993). Strategic alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1): Four alignment perspectives

57 57/60 © Pascal van Eck, University of Twente, 2006 Two perspectives IT applications Business strategy Business processes Business infrastructure 1 1 IT infrastructure IT strategy 2 2

58 Conclusion What is alignment? Strategic Alignment Model (Henderson & Venkatraman) GRAAL framework (Univ. Twente) Extension: Unified Architecture Framework (Maes et al.) Validation case study (Avison et al.) Quantitative approach (e.g., Tallon, Chan)

59 59/60 © Pascal van Eck, University of Twente, 2006 Some closing remarks Alignment = a struggle A frame- work = a to-do lists Validation = hard Alignment = requirements engineering? Practice Tools Research Relation with Computer Science

60 60/60 © Pascal van Eck, University of Twente, 2006 Pascal van Eck Department of Computer Science University of Twente P.O. Box AE Enschede The Netherlands Thanks!


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