Post on 15-Jan-2015
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IT Strategy and Enterprise Architecture
Aligning Business and IT
Chicago CIO CouncilEA CouncilNovember 11, 2005
Lloyd L. SmithPartner, Healthcare PracticeDiamondCluster InternationalLloyd.Smith@diamondcluster.com
David BakerPartner & Chief ArchitectDiamondCluster InternationalDavid.baker@diamondcluster.com
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IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
Agenda
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An IT Strategy is a plan for managing IT, holistically, as a business
Ensuring that the IT organization is aligned
with the business throughout the cycle of
innovation, planning and delivery
Defining the technology architectures and the
processes for developing, deploying,
enhancing and supporting business
capabilities using technology solutions
Aligning the IT organization’s structure,
skills and sourcing strategy with the needs of the business, while promoting employee
learning and satisfaction
Managing IT resources and operations to
ensure effective and efficient support of
business and financial goals
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An IT Strategy examines a broad set of IT capabilities
OrganizationSkills and CompetenciesLearningHuman ResourcesFacilities and Work Environment
Aligning the IT organization’s structure, skills and sourcing strategy with the needs of the business, while promoting
employee learning and satisfaction
Organization and Skills
Current Technology PortfolioProject Portfolio ManagementIT GovernanceFinance and AccountingVendors and PartnersProgram and Project ManagementCommunications and Marketing
Managing IT resources and operations to ensure effective and efficient support of business and financial goals
Management and Governance
Strategic and Operational Business ModelsStrategic IT Planning and InvestmentBusiness/IT RelationshipUsability and Technology AdoptionBusiness/IT Service Levels
Ensuring that the IT organization is aligned with the business throughout the entire cycle of innovation,
planning and delivery
Strategy andBusiness Alignment
Defining the technology architectures and the processes for developing, deploying, enhancing and supporting
business capabilities using technology solutions
Technology and Architecture
Architecture Blueprints for standard application, data and infrastructure architecturesGuiding PrinciplesMetrics and MeasuresArchitecture Processes and GovernanceArchitecture Organization and SkillsRepositories of all technology assetsTechnology Management and Utilization
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IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
Agenda
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Enterprise Architecture is used to describe an entire organization –using both business and technical views
“The enterprise architecture is the organizing logic for a firm’s core business processes and IT capabilities captured in a set of principles, policies, and technical choices to achieve the business standardization and integration requirements of the firm’s operating model.”
- MIT Center for Information Systems Research, 2004
“A strategic information asset base, which defines the mission, the information necessary to perform the mission and the technologies necessary to perform the mission, and the transitional processes for implementing new technologies in response to the changing mission needs. An enterprise architecture includes a baseline architecture, target architecture, and a sequencing plan.”
- Federal Enterprise Architecture Framework, 1999
“Enterprise architecture is the capture of all behavior that goes on in an organization: the data that is processed, who does what, where everything is, and why everything is done. In a sentence, the who, what, why, when, where, and how of the business at every level from high-level corporate goals to the code of low-level programs that implement business processes used to achieve those goals.”
- The Open Group
“Enterprise” may be a whole organization, that organization plus its external customers/suppliers, or a segment of an organization. However, “enterprise”
ALWAYS refers to the combination of business and technical views.
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Enterprise Architecture answers key questions for IT stakeholders
Have we done this before?How do we get it done?
How do I make sure it’s done correctly?What’s possible?
Businesswants to know
ITManagers
want to know
How can I innovate?How quickly can I get it?
How much does it cost / save?What are the risks?What’s possible?
TechnicalStaff
wants to know
What do I build?What do I build it with?
Enterprise Architecture
Enterprise Architecture is the broker between Business and IT. It provides the benefit of knowing why we need to build, what to build,
when to build it, and how to build it.
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Enterprise Architecture helps organizations manage IT complexity and make better investment decisions
• Ensure architectural alignment with business goals– Include business strategy and operations as enterprise architecture models
• Ensure architectural alignment across enterprise initiatives– Integrate enterprise level blueprints with individual project execution (SDLC)
• Realize savings through optimal usage of the organization’s architecture– Define, and monitor compliance with, enterprise shared services
• Maintain architectural quality standards across enterprise initiatives– Integrate enterprise architectural oversight into the Software Development Lifecycle
• Assess an organization’s architectural health– Establish enterprise architecture measurements and dashboards
Enterprise Architecture requires the use of multidisciplinary expertise and frameworks.
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Establishing an EA capability is a multi-faceted endeavor
Architecture Guiding Principles serve as guideposts for strategic and tactical technology decision-making and are a necessary communication tool to unite business and technology constituencies.
Architecture Governance is a comprehensive set of policies, processes and procedures that ensure proper, yet flexible, guidance and approval checkpoints for architecture.
Organization & Skills details the structure, capabilities and qualifications needed at the various levels of the organization to build, maintain, and implement the architecture.
The Architecture Repository is the control point for all architectures assets –blueprints, processes, metrics. The repository is accessed and managed thru the architecture toolset.
Metrics & Measurementsdescribe the quantitative and qualitative goals for the enterprise architecture to ensure that value is measured and communicated.
ArchitectureProcesses
ArchitectureBlueprints
Arch.Guiding
PrinciplesOrganization & Skills
Planning andTechnology
Strategy andPlanning Solutions Technical
ArchitectureTechnology Resaerch
Planning andTechnology
Strategy andPlanning Solutions Technical
ArchitectureTechnology Resaerch
ArchitectureRepository
Metrics & Measurement
Architecture Governance
Blueprints describe the business requirements and technology components in a way that enables their linkages to be traced from business owner to system developer.
Architecture Processes document how architecture design is performed and how architecture is communicated and implemented in the organization.
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IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
Agenda
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EA plays a critical role in the overall IT Lifecycle and is a primary element of any IT Strategy
Blueprinting brings engineering discipline to strategic planning and identifies the underlying, enabling technologies to implement the strategies.
BusinessStrategicPlanning
EnterpriseArchitectureBlueprinting
Release Planning
(Portfolio Mgmt)
ProjectExecution
(SDLC)
BusinessOperations
Metrics
EA Governance
Objectives & Measurement Indicators
Business Benefit Results
Architecture Benefit Results
As-Built Architecture
Approved Projects
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Business, Systems, and Technical Blueprints articulate the linkage between business strategies and IT assets
BusinessArchitecture
SystemsArchitecture
TechnicalArchitecture
The Business Architecture describes and
interrelates mission, vision, goals,and strategies with core processes,
constituents, and interactions.
The Systems Architecturedescribes, in a platform
independent way, the high-levelprocesses, applications, data,
and technology that enable thebusiness architecture
Business D
riven Technology Strategy The Technical Architecture describes the
physical implementation of thetechnology, including standards
• Strategic Business Architecture
• Operational Business Architecture
• Process Architecture• Application Architecture• Information Architecture• Infrastructure Architecture• Integration Architecture
• Enterprise standards and architecture services
• Domain level physical inventories and wiring diagrams
Blueprints provide the foundation for creating an actionable EA and therefore, an actionable IT Strategy
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The blueprinting process delivers both current and future state views of the business and supporting systems
BusinessArchitecture
SystemsArchitecture
1H05 2H05 1H06 2H06
Theme 1
Initiative 01Initiative 12Initiative 04Them
e 2
Initiative 07Initiative 09Initiative 02Them
e 3
Initiative 03Initiative 05Initiative 08
Technical architecture (standards and reference architectures) are delivered as part of the projects identified in the roadmap.
Roadmap
The Current State Architecture provides the context for designing the To-Be solution
The Future State Architecture defines the target architectural solution
The Roadmap provides an actionable way to move from the Current State to the Future State solution and articulates the costs
and benefits of the future state architecture
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Blueprints are created in an incremental fashion, accumulating until the entire enterprise is described
Project / ReleaseBusiness Domains / LOBsEnterprise
Enterprise level models
Domain 1 models
Domain 2 models
Domain n models
Project / Release Architecture
Project / Release Architecture
Project / Release Architecture
Project / Release Architecture
Project / Release Architecture
Project / Release Architecture
Project / Release Architecture
Project / Release Architecture
Project / Release Architecture
. . .
EA Repository
Developing a full enterprise architecture takes time, as various models are developed in an incremental fashion.
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IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
Appendix – DiamondCluster International
Agenda
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DiamondCluster is a global management consulting firm focused on combining strong industry experience with deep expertise in leveraging the strategic value of technology
How We WorkWe deploy SMALL, MULTIDISCIPLINARY teams of experienced professionals
We have strong INDUSTRY PRACTICES to ensure experience in specific industries: insurance is our largest industry practice
Who We AreA GLOBAL FIRM serving clients in over 35 COUNTRIES
We have OVER 600 PROFESSIONALS in 10 offices across North America, Europe and Latin America
Our SERVICE OFFERINGS build new strategic capabilities and create business/IT alignment to ensure successful implementation and achievement of business objectives
BARCELONA
DÜSSELDORFLONDON
PARIS
MÜNCHEN
SÃO PAULO
LISBOA
MADRIDSAN FRANCISCONEW YORK
CHICAGO
BOSTON
STOCKHOLM
BARCELONA
DÜSSELDORFLONDON
PARIS
MÜNCHEN
SÃO PAULO
LISBOA
MADRID
CHICAGO
STOCKHOLM
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Business Operations
Stra
tegy
& A
naly
tics
Systems Integrators/OutsourcersEx
ecut
ion
Technology
Functional or Industry-Specific
Consultants
Traditional Strategy Consultants
Ex Big 5 Consulting Practices
DiamondCluster: Business and
Technology Strategy
Our firm is uniquely positioned in the management and advisory space – combining business strategy and information strategy with strong insurance industry expertise
We believe that combining deep industry expertise, change management leadership and information technology skills is critical to creating and sustaining high-performing business
models and innovative customer value propositions.
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Small, experienced, MULTIDISCIPLINARY teamsIntegrated, collaborative, and hands-on approach to problem solving and delivery
Deep skills in analytics, technology, business operations, and transformation
PRAGMATIC AND OBJECTIVE adviceInformed and unbiased recommendations
No incentive to recommend specific products or services
Practical solutions, grounded in reality
Rapid delivery of TANGIBLE RESULTS AND MEASURABLE VALUE
4-16% improvement of annual EBITDA
60-70% improvement in delivered project value
15–25% reduction in IT operating costs
30–45% improvement in IT productivity
Collaboration between a small, senior and objective DiamondCluster team and the client personnel, results in greater value and lasting impact.
We support this positioning with a distinct way of deploying our people and working with clients
Staffing Model
Staffing Levels
Expe
rienc
e Le
vel
Diamond vs. standard pyramidal staffing model
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DiamondCluster helps clients ask and answer the right questions and then find and successfully implement optimal solutions.
Helping clients address the KEY ISSUESexisting at the intersection of BUSINESSOPERATIONS and TECHNOLOGY
IT Outsourcing Advisory
IT Assessment & Strategy
Customer Value Management
Strategic Architecture
Customer Service Excellence
Multi-Channel Management
Service Offerings
Customer Relationship Management
Operations Improvement
Technology Transformation
PMO Set-Up and Execution
New Growth
How can I best align my technology investments with business strategy and goals?
How can I use technology to reach and serve my customers better? Reduce my supply chain costs?
How can I use customer data to reduce churn and increase market share?
Can I use technology to organize my firm differently?
Can my technology platform support growth plans?
How can I use technology to put more power in my management control systems?
How do I ensure IT project delivery success?
Should I outsource? What, when and how?
The work we do addresses the key issues faced today by senior executives