16 July 2016
Digital strategy is not simply about marketing. It is about a better engagement with potential and existing customers. It is about the perception of the brand created with customers though close interaction via social media and close communication leading to a value proposition that can better serve their actual and future needs.
As with any business strategy, the enterprise architecture discipline is there to support the business transformation to success with a design strategy. It is useful here to remind everyone that enterprise architecture is not just another name for an enterprise wide view of the IT Architecture and the underlying infrastructure architecture
The term ‘Enterprise’ in Enterprise Architecture refers to the greater scope of the organisation which includes the Customers, contacts, stakeholders in the wider market environment which is addressed by the Digital Strategy.
Enterprise Architecture will help organisations to drive innovations and new business capabilities across their entire value chain and to better understand the digital environment in which they will be operating.
Joe Tucci, Chairman and CEO, EMC Corp.– “To stay relevant in this new, always-connected digital universe, businesses in virtually every industry are reinventing their business models for unprecedented customer access, interaction, speed, and scale.”
Using Enterprise Architecture to provide a blueprint for digital strategy
Enterprise architecture consists of the following primary architecture domains.
- Performance Architecture
- Business Architecture
- Information/Data Architecture
- Service/Application Architecture
- Infrastructure/Technical Architecture
- Business Transformation/ EA Roadmap
In addition to these usual enterprise architecture domains, I propose that further Architecture Domains are required for supporting a Digital Strategy.
|Additional Architecture Domains|
|Modelling the Customers’ own Environment, their processes, usage scenarios, customer journeys. Includes the communication channels used for communications directly to the customers and other external stakeholders.|
|Market Architecture||Modelling the outside-in view of what is happening outside the organisation boundaries in the Environment in which the enterprise does business, Social media, Competitors, Competitors Value propositions.|
|The branding, value proposition, projected identity that provides value to the customers for the lifecycle of the business. Includes generic communication to the customer and market, advertising the brand and value propositions.|
Figure 1 Enterprise Architecture for Digital Strategy
Obtain clarity on the goals, objectives and principles guiding your digital strategy Business strategy /Digital strategy
- Business motivation model
- Business Model
- Goals and objectives
Identify the environmental, industry and internal factors that are influencing the digital strategy.
- Market environment
- Modelling what the competition is doing
- Competitors and their activities
- Who else is in your space?
- How do you differentiate?
- Market trends
- Threats and opportunities
- Blue ocean
- Search topics
As usual this means developing Business Scenarios and Customers Journeys, but also modelling the customers (potential and actual) own business processes.
These models will help to understand the customer touch points with the organisation and their desired brand and product experiences.
The Customer Architecture will also include a Connection Model to understand the relationships with customers, communities, to better understand the customers own information and process flows.
A current state Connection Model will capture the Communities, External online nodes, web sites, collaboration social networks (Facebook, Twitter), mobile platforms (IOS, Android) and cloud platforms (Evernote, Google Drive, DropBox, OneDrive) where content exists and customers will go to visit. This Connections model will also include Search sites (Google),
multimedia sites (Flickr), advertising (Ad-Words), entertainment and gaming sites eCommerce sites (Amazon, eBay ), Mobile applications (from Apple Store, Google Play), Smart TV applications etc.
This is similar to a Context Diagram showing interaction between the Organisation and its Stakeholders, but in this case the organisation is not in the centre of the diagram and may not be shown at all in a current state (as-is) Connection Model. The organisation will however be shown in a target state Connection Model.
In a target state Connection model, it will be important to model how the organisations internal models will be coordinated and aligned to the Customers connection Model.
- Outside-in perspectives
- Obtain clarity on who the customer, consumer, partners are, their roles and their values.
- Business Scenarios
- Customers journeys
- Wardley Models
- Customers own processes
- Understand the customer touch points and the desired brand and product experiences
- Connect relationships with customers to better understand them over time
- Customers own information and process flow
- External online nodes, web sites, networks, platforms where content exists and customers visit
- Obtain clarity on how the organisation means to listen and respond to consumers.
- Multi-channel / Omni channel communications
- Communications flows both ways via whatever channel the customer is comfortable with
- Customers’ ideas
- Many channels and many messages
- Understanding and analysis of those messages
- Gaining customers’ attention
- Earning their trust
- Customers motivation
- How customers share content
A brand’s look and feel and tone of voice is as important as its identity, experiences and value proposition.
- Creating brand experiences
- Brand story
- Brand Strategy – Developing a creative brand strategy that is fit for purpose, up to date and distinctive is key to establishing all marketing communications.
- Who engages with your brand?
- Selling the Experience
- Understand the customer touch points and the intended brand and product experiences
- Insights about Customers – observations that trigger innovations
- Blue ocean strategies
The internal mode of the organisations Brand will need to be part of the Value Proposition model and show where the Brand messages will be projected.
- Modelling what the customers will love to buy
- Modelling how customers interact via social media
- Causal loop model (system dynamics)
- Modelling what customers are interested in.
- Mapping to the value proposition
- Minimum viable concept
- Behaviour change model
- Value and truth about the value propositions offered
- Value propositions
- Business Services
Business model canvas
Create the structure required to understand the business model required to realise your digital strategy
Create transparency and traceability across the market model, products and business services model, and the target operating model
Business capability model
- Create a view of the organisational capabilities across people, process, information and technology required to deliver the brand and product experiences.
- Capability assessment against goals and objectives
- Business Capability based Requirements
- Improve the way you manage your digital requirements
- Business Capabilities can be informed by the user needs identified by using Wardley models
Manage information from data architecture and information security through to delivering key messages to the market environment
- Content management
- Understand the content management approach and how it is enabled.
- Value of each bit of content.
- Relationship of content to value proposition
- System dynamics model (stocks and flows / cause and effect)
- System thinking
Provide clarity over decision making across the digital architecture
Business Transformation / EA roadmap
Create an understanding of the extent at which your current capabilities are able to support your digital strategy
Create clarity of the EA roadmap required to support the digital strategy
Obtain consensus, commitment and support for your digital strategy and roadmap which we believe are critical to the success of your strategy
Obtain clarity on your measures of success and identify plans to measure and monitor them
- Investment case
- Programme/Project Portfolio management
- Delivery plan
As usual if you don’t measure, then you can’t manage. However, it is surprising just how many enterprises fail to measure anything at all, including what they have done and what they plan to do.
- Define Metrics and create measures
- Critical Success factors
- Capability Maturity models
27 June 2013
The Enterprise Architecture team has a lifecycle of its own, but doesn’t operate in a vacuum. The Enterprise Architecture capability fails if it is seen too much as blue sky thinking in an ivory tower.
The Enterprise Architecture team will interact closely with all the other management processes in an organisation, especially the IT management processes. When all these processes work together effectively, an enterprise will be able to successfully manage strategic changes and drive business transformation effectively and efficiently. Often in organisations little thought has been given to the integration of the EA processes to the other management processes. This contributes to making the EA team into an ivory tower, seemingly unconnected with everything else. The aim of this post is to shine some light the EA lifecycle and its interactions.
One of the goals when establishing or maturing an enterprise architecture capability is to make sure that the enterprise architecture a fundamental and normal part of the business-as-usual decision making flow rather than considered as an afterthought.
Too often I have seen major changes apparently started directly at the project initiation phase before there has been any serious appraisal of the business fit, technical fit and feasibility of that change undertaken, not least by the enterprise architects.
The Enterprise Architecture capability is driven by understanding the business strategy and strategic scenarios which drive the business and IT enabled changes in an organisation. It is there to ensure that any strategic change is viable in the future, but it also identifies the dependencies, feasibility, risks, issues, costs, and informs the subsequent investment decisions that need to be made.
The current state and future state enterprise architecture models will be developed (typically using the TOGAF ADM).
In the EA roadmap, the strategic changes will be prioritised and arranged into a meaningful sequence to inform the decisions made by the programme and project portfolio management and before any projects are initiated.
The Enterprise Architecture capability will govern what parts of the future state enterprise architecture are developed and delivered by the projects, and thereafter ensure that the delivered solutions and services remain compliant with it. The compliance stage will also capture and approve any innovations that are identified as useful. The enterprise architecture team and/or a technical design authority will provide design assurance for the projects, to ensure that principles, standards, patterns, policies and guidelines are being followed.
It’s worth noting that the EA lifecycle is not a part of the project solution development lifecycle as many organisations seem to imagine it is, but is a separate lifecycle that operates in parallel at a strategic level. Neither is the EA lifecycle the same as the TOGAF Architecture Development Method.
After a solution has been delivered, the enterprise architecture team will harvest the results in order to update the current state enterprise architecture, to measure performance and to publish a dashboard for the senior management team.
The following diagram illustrates the major stages and processes that are undertaken by an Enterprise Architecture team, for each iteration they undertake.
These Enterprise Architecture processes can be best understood in the wider scope and context of all the processes defined by the COBIT5 framework for the governance and management of enterprise IT. http://en.wikipedia.org/wiki/COBIT http://www.isaca.org/cobit/pages/default.aspx
I’m surprised that COBIT is not used more in UK based organisations, but it is more popular in Europe. I would recommend COBIT5 is used as a broad framework for assessing the risk and value of IT and the governance of all IT management processes.
The following view is broadly based on the COBIT processes, and illustrates the position of the Enterprise Architecture processes relative to the other IT management processes identified by COBIT.
Starting from the Strategy & Vision there is an overall clockwise cycle through all the processes. The Enterprise Architecture capability is responsible or accountable for the processes shown in red, and is consulted and informed about the other processes. The responsibilities will, of course, vary in each organisation and in many cases the enterprise architecture team will be additionally responsible with many more of the Solution Development processes (for example, Select, Acquire, and maintain COTS software products).
In a more mature enterprise Architecture environment, all these processes will be expected to consume and contribute to the knowledge, information and models held in the Enterprise Architecture repository (illustrated in the centre of the diagram). The management dashboard of performance metrics, charts and graphs will be generated from the EA repository.
The above diagram is based on the COBIT processes. The latest version of COBIT5 is more explicit about enterprise architecture than earlier versions were. The following table shows the COBIT5 processes that directly relate to or are supported by an Enterprise Architecture team and an Enterprise Architecture Governance Board.
|APO03||Managing Enterprise Architecture|
|APO02||Define Strategy (in this context this usually means the IT strategy)|
|APO04||Manage Innovation (via the Enterprise Architecture Governance Board)|
|BAI08||Manage Knowledge (via the EA Repository)|
|BAI06||Manage Changes (i.e. Strategic changes and IT enabled Business changes that drive the future state enterprise architecture)|
|MEA03||Monitor and assess compliance with external requirements (via the Architecture Governance Board)|
|APO05||Manage Portfolios (with EA Roadmap)|
|APO011||Manage Quality (via EA Appraisals)|
|APO012||Manage Risk (via EA Appraisals)|
|EDM01||Set and Maintain Governance Framework|
|EDM02||Ensure Value Optimisation|
|EDM03||Ensure Risk Optimisation|
The following table shows who is Responsible, Accountable, Informed or Consulted in regard to the services provided by the Enterprise Architecture team and an Enterprise Architecture Governance Board.
Implementing the EA lifecycle and integrating it with the IT management processes in an organisation will help the Enterprise Architecture capability to avoid the challenges and misperceptions that it is some kind of ivory tower that can be wilfully ignored and disbanded when looking for budget cuts.
Senior management teams will instead come to appreciate the valuable contribution that Enterprise Architecture makes to strategic planning, appraising investments in change, driving business transformations, finding opportunities and innovations, and to understand the value EA has to the organisation as a whole.
23 March 2013
Tom Graves recently participated in an Open Group TweetJam on Business Architecture. You can read about the results of this at http://weblog.tetradian.com/2013/03/20/opengroup-on-bizarch/
Unfortunately I didn’t hear about this in time to participate but I thought I’d record my own thoughts here.
The questions were:
- How do you define Business Architecture?
- What is the role of the business architect? What real world business problems does Business Architecture solve?
- How is the role of the business architect changing? What are the drivers of this change?
- How does Business Architecture differ from Enterprise Architecture?
- How can business architects and enterprise architects work together?
- What’s in store for Business Architecture in the future?
How do you define Business Architecture?
Business Architecture is one of the primary domains within Enterprise Architecture. It deals with the architecture of the business, ideally from a business perspective and is expressed in business terminology.
It should not really be considered a separate discipline from Enterprise Architecture but often is by those who persist in misunderstanding that Enterprise Architecture is only about IT and not about the whole of the enterprise.
Business Architecture deals with the structure and design of how an enterprise operates, makes money or delivers value, how it organises itself in order to provide products and business services to its customers, clients and consumers. It should be expressed independently of how the business architecture will be mapped to the underlying application architecture and infrastructure architecture, but is more connected to the business/contextual view of the information/data architecture and will include the organisation architecture.
Business Architecture is centred on the business and the business strategy, not on IT or on the IT Strategy and should not be considered just a source of requirements for IT projects (which is the impression that TOGAF gives of Business Architecture).
In general Business Architecture includes the following deliverables:
What is the role of the business architect?
As a specialised type of Enterprise Architect, they are in a leadership role, close to business management working for the CxOs to evaluate and elaborate possible future strategic scenarios.
They have a responsibility to guide, recommend and oversee the realisation of the business strategies identified by the CxOs, but they don’t control the business strategy or make the actual investment and strategic change decisions.
What real world business problems does Business Architecture solve?
As a type of Enterprise Architect, a Business Architect deals with strategic change, business transformation activities concerning topics such as:
- Ecommerce changes
- Cost reduction
- Process improvement and efficiency
- New organisation design
- Mergers & Acquisitions
- Reuse of shared services
- New markets
- Regulatory and legal changes
One should not forget that, by definition, an Enterprise Architecture model covers everything about the enterprise including the environment and market which it operates in, its Business Strategies, its Business Architecture as well as the rest of the Enterprise Architect domains.
How is the role of the business architect changing? What are the drivers of this change?
The role of a Business Architect is becoming much more distinct than it has been. many organisations are maturing their enterprise architecture functions that were previously just centred on IT architecture and are now specifically introducing a Business Architect role.
How the Business Architect role differs from other roles such as a Business Analyst, Business Change manager, Business Transformation Manager etc. is still playing out. I discussed this to some extent in a previous blog post – The difference between a Business Architect and a Business Analyst.
Another current difference is that a Business Architect is often closely associated with the Business units (and perhaps reports to a business line manager of sorts) and therefore is seen as being on the ‘Demand’ side of a business, whereas the rest of the Enterprise Architects (including IT Architects) are often lumped into the IT department and therefore are seen as being on the ‘Supply’ side. In theory, the Enterprise Architects, including Business Architects, should only ever be on the ‘Demand’side and not seen as part of IT. They should report to the CxOs, ideally seen as part of a CEO Office.
How does Business Architecture differ from Enterprise Architecture?
A Business Architect is a type of (a ‘real’) Enterprise Architect. Business Architecture is a sub domain of Enterprise Architecture.
How can business architects and enterprise architects work together?
Of course they can. The distinction in the question is artificial anyway, since a Business Architect is just a type of Enterprise Architect that specialises in the Business Architecture domain.
But in reality many organisations do have an unfortunate tendency to make up their own interpretation of what these roles actually are.
What’s in store for Business Architecture in the future?
We will see more and more Business Architecture roles in the future as organisations mature their enterprise architecture strategy and capabilities, and they realise that they need to get to grips with their business model and how it is realised. They will need Business Architects to help them do that.
For most enterprises embarking on large scale strategic planning and business transformation programmes it is all about staying robust, viable and efficient, continuing to deliver good outcomes and value to their customers/consumers/clients in the future. Enterprises should be wanting to stay competitive and efficient and beat the competition.
If the enterprise is to succeed, it must make strategic decisions and investments in change based on a thorough architectural gap analysis/impact analysis that is only possible with business architecture as a key part of their enterprise architecture function.
4 September 2012
I recently saw a Forrester blog entry from George Colony at: http://blogs.forrester.com/george_colony/12-08-27-enterprise_architects_for_dummies_ceos
And recently I’ve been reading an interesting book called Good to Great by James Collins. See http://en.wikipedia.org/wiki/Good_to_Great
The Forrester blog talks about succeeding with realizing the business strategy by involving enterprise architects, whereas the Good to Great book doesn’t mention enterprise architects but just talks about needing the best people to achieve great things.
It raises the question ‘Does an organisation need enterprise architects to achieve greatness?’, and ‘What does an enterprise architect need to do to be great themselves?’.
An Enterprise architect will certainly bring a logical enterprise-wide view of strategic change, usually cutting across organisation boundaries. They will look at the strategic design of the enterprise vision in terms of interconnecting business capabilities, where a business capability is a similar concept to a ‘system’ as described in system thinking and the viable system model. They will help with the business thinking.
But is this how senior executives see strategic change?
I’ve experienced organisation restructuring close up at a large number of organisations over recent years and in all cases, the enterprise architects were not involved at all. The re-structuring tends to be done along business functional lines. Nothing wrong with that perhaps, but it does tend to bake in the old silo boundaries and restrict cross functional reuse of business capabilities.
Is this good or great, or merely good enough?
How do senior executives see enterprise architects?
Enterprise architects work with the executives, senior business stakeholders and heads of all the business functions to build a holistic enterprise architecture vision model that links the enterprise’s mission, business strategies and priorities to the current and future needs in an efficient and viable fashion.
For enterprise architects it’s typically not sufficient to merely produce a good vision and good roadmap, but the focus should be on producing a great one that is robust and viable way into the future.
Quick and dirty is not a great approach and is often a waste of money from a long term enterprise perspective.
There will inevitably be a sort of creative tension between the various lines of business and enterprise architecture. Part of the reason for this this is that the lines of business invariably take a top down view and the enterprise architects are naturally working across functional silos. There is often a sort of conflict of overlapping RACIs, a clash of who appears to be responsible for making a decision. Generally that is easy, it’s the business strategy owned by the business that makes the decisions.
But as George Colony observes in his blog, it’s the enterprise architects that span both the business and technical domains and act as ‘an internal trusted advisor who marries the best interests of the business with long-term technology strategy’.
An analogy is within the realm of politics, where the politicians take the decisions helped and supported by their advisors. Also like politics, the lines of business are often challenging each other and pandering to popularity polls.
This raises another thought, should an enterprise architect be popular or be professional? Can they be both at the same time? Should an enterprise architect indeed be a kind of politician following the whims of the time, or should they be seen to be standing up for doing the right things for the future?
Tactical short term changes are invariably much easier to build a business case and obtain investment for than multi-year long term strategic changes will ever be. Should an enterprise architect just focus on short term fixes, or do their job and focus on strategic change. Like a politician, should an enterprise architect aim to be liked and popular, or respected for their work furthering the best interests of the enterprise?
It’s rather like a politician who can only achieve changes within a single parliament, and therefore shies away from embarking on initiatives that will take a long time and multiple parliaments to achieve. Should an enterprise architect just be popular and play politics? Does this make an enterprise architect great? In fact, what does make a great enterprise architect? Ideally 40% of our job is communication. Maybe communication really means playing to the populous crowds? Does promising bread and circuses make things great?
James Collins says that good to great companies follow the principle of “First Who, Then What” and hire good people. Collins talks about good CEO’s typically have much humility. So maybe a great enterprise architect should also be humble? Perhaps a great enterprise architect is one who makes great decisions? But then if it is only the lines of business who make the decisions, what then? Often the enterprise architect is not in the position to make enterprise level decisions, only recommendations.
To be great enterprise architects should be focused on being neutral and not taking sides, working faithfully for the enterprise as a trusted advisor, taking the enterprise in whatever direction it chooses to go at whatever speed it wants to go, realizing the collective enterprise vision. In turn, the enterprise needs to treat enterprise architects as true trusted advisors and not just delivery agents. Enterprise architects should follow a set of principles, be honourable, forthright and avoid compromise, keeping the organisation honest. Maybe in doing that they won’t always be popular but they will be doing their job.
It has been said that ‘business leaders rarely succeed in marrying empirical rigor and creative thinking’, so it is the enterprise architects task to help them do this better and achieve a great enterprise and not just one that is just good enough. Just good enough is never good enough.
In my opinion, without enterprise architects, an enterprise cannot easily become great and may only achieve greatness through simple luck.
10 January 2012
I’m often confronted by solution architects, IT and technical architects who don’t understand what Enterprise Architecture is all about. They usually misinterpret enterprise architecture from their own perspective as some kind of system design of ‘enterprise’ scale IS/IT systems and become frustrated when they discover that it is really something else. It often turns out that they are not usually working at the right level or with the right stakeholders in their organisation to be true enterprise architects. They are not working with the leadership team but within the scope of a small development project.
They can’t therefore see the wood (the ‘Enterprise’) for the trees (a project), let alone the helicopter view…
Enterprise architecture is in reality one of the most powerful management approaches that can be used by an organisation. It is not intended to be used (only) at a solution or project level but for the big decisions that an organisation’s leadership team have to make. The leadership (i.e. the C-level executives, and heads of divisions etc.) have to make the decisions based on the facts and knowledge base (the Enterprise Architecture repository) delivered by the enterprise architecture function. Those decisions are supported by the enterprise architecture function planning their execution in the EA roadmap. Each initiative in the EA roadmap is typically a new or changed Capability or Capability Increment (see MODAF and http://www.mod.uk/NR/rdonlyres/E43D93F6-6F43-4382-86BD-4C3B203F4AC6/0/20090217_CreatingCapabilityArchitectures_V1_0_U.pdf).
Typically the focus of Enterprise Architecture is on:
- Increasing the return on business and IT investments by more closely aligning them with business needs.
- Identifying areas for consolidating and reducing costs
- Improving executive decision making
- Increasing the benefits from innovation
- Delivering strategic change initiatives
- Managing business transformation activities
The Enterprise Architecture is also characterised across the following multiple dimensions:
- Direction: Enterprise Architecture is focused on strategic planning (i.e. business transformation, strategic change programmes) and not on operational change (i.e. run the business, six sigma, lean processes)
- Scope: Enterprise Architecture is focused on the whole of the business (i.e. the Business Model and Business Operating Model) for all business and IS/IT functions, and not just on the IS/IT components.
- Timeline: Enterprise Architecture is focused on the long term view of the future scenarios (up to 3/5 years in the future) and not just on a short term view of current state. Enterprise Architecture is focused on a roadmap of changes to an organisation’s capabilities.
- Value Chain: Enterprise Architecture is focused on the whole of the enterprise (i.e. the extended organization and value chain) and not just on the scope of a delivery project
- Stakeholders: Enterprise Architecture is focused on the needs and concerns of the C-level executives (CEO, CIO, COO etc.), business executives, corporate and business strategists, investors, strategic planners.
(ps. I tried to draw a diagram to illustrate where Enterprise Architecture lies on these dimensions but couldn’t visualise a multi-dimensional space…)
So overall, the primary purpose of Enterprise Architecture is to support strategic change such as :
- The introduction of new customer and supplier channels such as eCommerce
- The consolidation of the existing portfolio of people, processes, application and infrastructure etc.
- The reduction of costs and risks, ensuring the enterprise will remain viable and profitable
- The design of a new organisation, business model and business operating model.
- The due diligence for mergers and acquisitions and management of the resulting integration programme.
- The development of smarter and more effective systems (not just IT systems).
- The introduction of shared services and applications.
- The introduction of new technology, platforms and infrastructure such as SaaS, Cloud etc.
- The introduction of regulatory and legal changes such as Basel 3
In my future blog entries I will explore how Enterprise Architecture supports some of these areas.
The first one will be about how Enterprise Architecture is used to support Due Diligence activities prior to mergers and acquisitions.