IT Strategy and
Enterprise Architecture
Aligning Business and IT
Chicago CIO Council
EA Council
November 11, 2005
Lloyd L. Smith
Partner, Healthcare Practice
DiamondCluster International
David Baker
IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
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
An IT Strategy examines a broad set of IT capabilities
Organization
Skills and Competencies
Learning
Human Resources
Facilities 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 Portfolio
Project Portfolio Management
IT Governance
Finance and Accounting
Vendors and Partners
Program and Project Management
Communications 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 Models Strategic IT Planning and Investment
Business/IT Relationship
Usability and Technology Adoption
Business/IT Service Levels
Ensuring that the IT organization is aligned with the business throughout the entire cycle of innovation,
planning and delivery
Strategy and
Business 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 architectures
Guiding Principles
Metrics and Measures
Architecture Processes and Governance
Architecture Organization and Skills
Repositories of all technology assets
IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
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”
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?
Business
wants to know
IT
Managers
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?
Technical
Staff
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,
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
Establishing an EA capability is a multi-faceted endeavor
Architecture Guiding
Principlesserve as guideposts for strategic and tactical
technology decision-making and are a necessary
communication tool to unite business and technology constituencies.
Architecture Governanceis a comprehensive set of policies, processes and procedures that ensure proper, yet flexible, guidance and approval checkpoints for architecture.
Organization & Skillsdetails the structure, capabilities and qualifications needed at the various levels of the
organization to build, maintain, and implement the architecture.
The Architecture Repositoryis the control point for all architectures assets – blueprints, processes, metrics. The repository is accessed and managed thru the architecture toolset.
Metrics & Measurements
describe the quantitative and qualitative goals for the enterprise architecture to ensure that value is measured and communicated. Architecture Processes Architecture Blueprints Arch. Guiding
Principles Organization & SkillsPlanning and Technology
Strategy and
Planning Solutions Technical Architecture Technology Resaerch Planning and Technology Strategy and
Planning Solutions Technical Architecture Technology Resaerch Architecture Repository Metrics & Measurement Architecture Governance
Blueprintsdescribe the business requirements and technology components in a way that enables their linkages to be traced from business owner to system developer.
IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
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.
Business
Strategic
Planning
Enterprise
Architecture
Blueprinting
Release
Planning
(Portfolio Mgmt)
Project
Execution
(SDLC)
Business
Operations
Metrics
EA Governance
Objectives & Measurement Indicators
Business Benefit Results Architecture Benefit Results As-Built Architecture
Business, Systems, and Technical Blueprints articulate the linkage
between business strategies and IT assets
Business
Architecture
Systems
Architecture
Technical
Architecture
The Business Architecturedescribes and interrelates mission, vision, goals, and strategies with core processes, constituents, and interactions.
The Systems Architecture
describes, in a platform independent way, the high-level processes, applications, data, and technology that enable the business architecture
Business Driven T
echnology
Strategy
The Technical Architecture describes the physical implementation of the technology, 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
The blueprinting process delivers both current and future state views
of the business and supporting systems
Business Architecture
Systems Architecture
1H05 2H05 1H06 2H06
The me 1 Initiative 01 Initiative 12 Initiative 04 The me 2 Initiative 07 Initiative 09 Initiative 02 The me 3 Initiative 03 Initiative 05 Initiative 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
Blueprints are created in an incremental fashion, accumulating until
the entire enterprise is described
Project / Release Business Domains / LOBs
Enterprise
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
IT Strategy
Enterprise Architecture
IT Strategy & EA in Action
Appendix – DiamondCluster International
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 Work
We 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 Are
A 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
Business Operations
Strategy
&
Analy
tics
Systems
Integrators/Outsourcers
Execution
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
Small, experienced,
MULTIDISCIPLINARY
teams
Integrated, collaborative, and hands-on approach to
problem solving and delivery
Deep skills in analytics, technology, business
operations, and transformation
PRAGMATIC AND OBJECTIVE
advice
Informed 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
Experience Level
DiamondCluster helps clients ask and answer the right questions and then find and
successfully implement optimal solutions.
Helping clients address the
KEY ISSUES
existing at the intersection of
BUSINESS
OPERATIONS
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?
