Lecture 1 Summary http://www.youtube.com/watch?v=d1MPEmMBqc0 This short video will give you a metaphorical explanation of what is EA?

Lecture Outline Analysis Definitions: Architecture, Stakeholder, Enterprise, Enterprise Architecture (EA) What is EA? EA = Strategy + Business + Technology Organising influence of EA What is EA? – as a governance concept EA as a Meta Discipline EA Architecture Approach: framework of methodology, standards, best practices &v artefacts EA Process Groups: EA Management Program + Current EA & Future Scenario Analysis & Design EA Management Program Purpose – Strategic alignment  by aligning resource & capability requirements to enterprise strategy plans EA Analysis & Design work Purpose – document EA analysis findings and design proposals for current and future EA scenarios From lecture 1, you need to grasp an initial understanding of: What is EA? How is EA carried out? Over time, you should enhance your answers with more detail insights about EA.

What is EA? Slide 1 Slide 2 Slide 4 Slide 3 With some of Lecture 1 slides, you should be able to identify some of the basic concepts to help you build a good lecture evidence based definition of what is EA? When defining EA, do NOT start with defining how it is carried out – this is the most common mistake when students write out their answers, especially in exams. Instead describe WHAT it is first, then a brief summary of its processes. From the diagram above, an example of a definition narrative can be constructed as follows: EA is a management function that effectively integrates an enterprise’s strategic, business and ICT resources and capabilities to shape its ICT enabled strategic and operational capabilities and service oriented products for achieving enterprise goals (derived from slide 1) EA is an integrated strategic, business and ICT framework for achieving an enterprise objectives, which is guided by one or a mix of a guiding methodology (process guidelines); artefacts (documentation specifications), best practice and standards (slide 1 and 2) EA can also be regarded as a meta management function, that oversees and hence governs how an enterprise’s strategic, business and ICT capabilities are integrated (by using grounded management and ICT standards and methods) to develop & implement best practices that seamlessly coordinate strategic, business and ICT management work to efficaciously achieve the enterprise’s objectives (slide 1, 2,4). From this definition perspective, EA can be regarded as a meta (above) management practice that is part of a corporate to project governance structures (slide 2). You can illustrate your definition contents using the slides and quoting the original sources of the slides’ contents, if you are asked to address such a question in assignment.

How is EA conducted? Simply put, the above diagram tells you that EA has two process-groups (see Bernard for more details): EA management program processes, which involve: Strategic alignment of corporate-level, business units’ and organisational projects’ goals, activities and resources Compliance to corporate to project governance requirements, especially standardized and corporate to business governance compliant policies for identifying, procuring, using, developing, integrating and configuring, and optimising enterprise resources Clarifying visible strategic, business and ICT decision criteria for making ICT resource decisions at any level of corporate, business unit, project and design or problem solving decision making Create consistency in ICT project management and development lifecycles, to enable clarity of their alignment to strategic business and operating financial management cycles EA analysis and design processes, which Provide a repository structural framework for organising EA artefacts ie its analysis and design documentation specifications; Defining what EA artefacts are needed for different strategic, business and ICT work purposes Defining EA artefacts that specify the current EA environment Defining EA artefacts that specify one or more future EA environment-scenarios Defining the transition or change management plan for transforming the current EA environment into the desired future EA environment/s Categorising EA artefacts as threads, that mixed artefacts to give different enterprise to project work grouping perspectives of EA documentation

How is EA conducted? Management Program perspective EA management program processes involve: Strategic alignment of corporate-level, business units’ and organisational projects’ goals, activities and resources Compliance to corporate to project governance requirements, especially standardized and corporate to business governance compliant policies for identifying, procuring, using, developing, integrating and configuring, and optimising enterprise resources Clarifying visible strategic, business and ICT decision criteria for making ICT resource decisions at any level of corporate, business unit, project and design or problem solving decision making Create consistency in ICT project management and development lifecycles, to enable clarity of their alignment to strategic business and operating financial management cycles

How is EA conducted? EA Analysis & Design perspective CURRENT BUSINESS ENVIRONMENT CURRENT BUSINESS ENVIRONMENT CURRENT BUSINESS ENVIRONMENT FUTURE BUSINESS ENVIRONMENT SCENARIOS EA (Implementation) Management Plan EA analysis and design processes: Provide a repository structural framework for organising EA artefacts ie its analysis and design documentation specifications; Defining what EA artefacts are needed for different strategic, business and ICT work purposes Defining EA artefacts that specify the current EA environment Defining EA artefacts that specify one or more future EA environment-scenarios Defining the transition or change management plan for transforming the current EA environment into the desired future EA environment/s Categorising EA artefacts as threads, that mixed artefacts to give different enterprise to project work grouping perspectives of EA documentation

How is EA conducted? EA Analysis & Design perspective CURRENT BUSINESS ENVIRONMENT CURRENT BUSINESS ENVIRONMENT CURRENT BUSINESS ENVIRONMENT FUTURE BUSINESS ENVIRONMENT SCENARIOS EA (Implementation) Management Plan How to transform current into desired future EA? Specified in Specified in involves involves Analyse future business scenarios considered by business Agree with business one or more business scenarios to model – including the planning assumptions for each scenario Identify and document/model each future business scenario’s EA artefacts Specified in Analyse current business and document/model its EA artefacts Identify business improvement opportunities Identify EA documentation gaps EA analysis and design processes: Provide a repository structural framework for organising EA artefacts ie its analysis and design documentation specifications; Defining what EA artefacts are needed for different strategic, business and ICT work purposes Defining EA artefacts that specify the current EA environment Defining EA artefacts that specify one or more future EA environment-scenarios Defining the transition or change management plan for transforming the current EA environment into the desired future EA environment/s Categorising EA artefacts as threads, that mixed artefacts to give different enterprise to project work grouping perspectives of EA documentation Compliance to EA Mgt Program Plan

What are the modelling areas in EA analysis & design? How the EA artefacts are “bundled” to give an enterprise functional perspectives of its strategic, business & ICT integrated requirements EA analysis and design processes, which Provide a repository structural framework for organising EA artefacts ie its analysis and design documentation specifications; Defining what EA artefacts are needed for different strategic, business and ICT work purposes Defining EA artefacts that specify the current EA environment Defining EA artefacts that specify one or more future EA environment-scenarios Defining the transition or change management plan for transforming the current EA environment into the desired future EA environment/s Categorising EA artefacts as threads, that mixed artefacts to give different enterprise to project work grouping perspectives of EA documentation Specific EA Artefacts

What is EA3? EA3 is a proprietary EA framework There are other best practice & proprietary EA frameworks which you will learn some in future lectures eg TOGAF, Zachman Not all EA frameworks are complete in having or equally good/strong in defining a methodology, best practice features, standards specifications and artefacts – you will need to research and understand each one is good or weak in what components of a EA framework model in future lectures

Class Discussions The question “What is EA?” requires you: Describe EA as a strategic, business & ICT management function, which requires one to : Plan how strategy, business and ICT requirements can be integrated to represent current and future business scenarios Execute this plan via a number or projects and in compliance to EA (and also projects’) governance requirements Track & report EA execution progress, correct variances and non compliance activities where needed, to ensure achievement of the EA (implementation) management plan. You may decide to get a glimpse of what are the 2 major management process groups involved, ie the EA management program and EA analysis and design work – this part 2 is NOT the complete answer to the question. Use the contents of your lecture notes, this tutorial summary and references to construct the answer by following these guidelines.

Class Discussions Examine the EA3 framework and discuss What is its methodology? What best practice and standards it aim to achieve or already uses? What are its EA modelling artefacts and how are they coordinated to define EA functions that specify the integration dimensions of strategic, business and ICT alignment ?

Tutorial Exercises What are some of the differences between enterprise architecture (EA) and a systems-level planning approach? Why is EA described as both a management program and an analysis and design method? What are the four elements of an EA management program and the six elements of an EA analysis and design method? What are some of the EA components and documentation artifacts that would be included in current and future views at each level of the EACube framework? 3 Can EA be used by all types of enterprises? If so, why? How does an EA repository support the implementation methodology? Choose a real-world large-size enterprise and determine: a. Is information technology seen as a strategic asset? b. Does an enterprise architecture program exist? c. Are there gaps in business/technology performance that an enterprise architecture program could help identify and correct? Hint: you may refer to the “Danforth Manufacturing Company” Scene, given in the following pages. 8. Read the case study: Danforth Manufacturing Company. Do you agree with the need for an EA Program? Discuss.

Some concepts to help you answer tutorial questions

Strategic Assets Are Resources Creates/Deepen Market Shares, Increases Profit$ Creates sustainable competitive advantage Changes in Operations Are Resources Physical Infrastructure Amenities Assets also know as resources What are they? What do you mean by strategic assets? People Networks ICT Networks Business Networks

Operating Assets Are Resources Improves Efficiency & Effectiveness  Better Margins Supporting Operations Are Resources Physical Infrastructure Amenities What do you mean by operating assets? People Networks ICT Networks Business Networks

Strategic  Operational ICT Strategies are implemented via org. project management structures Portfolios Programs Projects Strategies are deployed (implemented) via organisational project management structures (ie portfolios (groups of programs and projects that deliver strategic value), programs (group of interrelated projects, usually on a critical path) and projects. Through these structures, ICT can be leveraged to help achieve strategic and operational objectives. Strategic ICT Operational ICT Create new market shares Increase existing market shares Gives sustainable competitive advantage Improves Efficiency Improves Services Improve/Increase Margins

What is a System Level Program ? Operating Improvements R&D Testing Strategic Structurally is a collection of projects and sub-programs grouped together to serve a business purpose. Process wise –like project management, includes planning, execution monitoring & variance controlling activities Supports A Business Purpose System Level Program System Projects System Projects System Projects

Why is EA Important? Operating Improvements R&D Testing Strategic Supports A Business Purpose Not my problem Program Managers System Level Program People working at a system level create silo projects, resulting in fragmentation of systems and business integration complexities/challenges. Not my problem System Projects System Projects System Projects Project Managers & Their Teams

Why is EA Important? Result in

Q8 Danforth Manufacturing Case Study Why EA? http://www.youtube.com/watch?v=qDI2oF1bASk

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 http://www.ibm.com/developerworks/rational/library/enterprise-architecture-resistance/ http://www.booz.com/media/uploads/Building_Value_through_Enterprise_Architecture.pdf Improve cost management Cost Accounting Module WELLCO ERP System 18 months RoI, <$600K Jim Gorman (CFO) Sam Young (CIO)