1. Maximizing EA Impact: Using Business Architecture to Achieve Alignment David Baker Chief Architect,Diamond Management & Technology Consultants david.baker@diamondconsultants.comOctober 25, 2006

2. Business / IT Alignment occurs when IT delivers the right solution, at the right time, for the right costIT Business Managers wants to knowwant to know EnterpriseHow can I innovate?Have we done this before?Architecture How quickly can I get it?How do we get it done? How much does it cost / save?How do I make sure its done What are the risks? correctly?Whats possible? Whats possible? TechnicalStaffwants to know What do I build? What do I build it with?When do I build it? 3. Alignment has traditionally been hard to achieve, one cause being the siloed approach to Business and IT StrategiesExternal BusinessIT Strategy Strategy OrganizationalITInternal infrastructureinfrastructure and processes and processesBusiness Information Technology Old Model(Henderson and Venkatraman 1993) 4. Additional roadblocks often thwart alignment IT does not engage the Business Technology driven solutions offered to the Business Solutions looking for problems to solve Organizational anomalies Business strategy is too vague Mission, vision, goals exist Then what? Complexity of the business Do we plan for the whole enterprise? Enterprise Architecture considered too complex, too costly 5. What you can do to achieve alignment IT should engage the Business Eat the elephant one bite at a time Measure the result (Business metrics, not IT metrics) Change the organization 6. Alignment can be achieved through collaboration on a business- driven plan Business ownsBusiness Architecture Leadership (strategy & operations) Business SMEs IT FacilitatesSolution Architecture IT owns (platform independent) Business approves Technical Architecture IT owns (infrastructure & processes) Governed by Business andSolution ArchitectureSuggested Approach 7. The result is a business-capability driven blueprint that integrates business strategy, business operations and IT solution supportBusiness ArchitectureBusiness BusinessStrategyOperationsDesired Business Capabilities Blueprint &Solution ArchitectureRoadmap Information Application InterfaceModelModel Model Infrastructure Model Technology Architecture Data App DevelopmentExecution Operations Network Security Models Models ModelsModelsModelsModelsModels 8. Business architecture and blueprinting must be integrated into the IT operating modelAs-Built Architecture Approved Projects BusinessEnterprise Release ProjectPlanningBusiness StrategicArchitecture Execution (Portfolio (SDLC)Operations Planning BlueprintingMgmt)IT Governance (incl. EA) Objectives & Measurement Indicators BusinessArchitecture Benefit ResultsMetricsBusiness Benefit Results 9. Engage the Business through development of Business Guiding Principles A collection of position statements used to assist decision making Positions unlikely to change over the next two to three years Filters for decision-making . . . guidelines, not hard and fast rules Eliminate blueprint solutions that are not consistent with the organizations goals and objectives Defined jointly by Business and IT leadership 10. There are two ways to engage the Business in development of Guiding Principles To what extent should common1 business processes across business unitsbe standardized?None AllBusiness Units areA sub-set of common Business processes arefree to use their own processes arestandardized across allstandards forstandardized across business units common processes business units Current Position 1Common Desired Positionis defined as being shared by two or more business units Workbook MethodWorkshop MethodCreate workbooks Create workbooksDistribute to business SMEs Hold consensus building workshopCollect results document resultsHold feedback / consensus meeting 11. Engage the Business by documenting, and driving additional detail into, the business strategyStrategic Business Architecture A comprehensive statement coveringMISSIONthe major functions and operations that the program addresses KEY DRIVERS & GUIDING An inspirational, forward-thinking VISIONview of what the program wants to achievePRINCIPLES The top priorities that would achieve GOALGOAL GOAL GOALthe vision A set of realistic outcomes tracked by PERFORMANCE performance indicators thatOBJECTIVE INDICATORS collectively support goal attainmentCAPABILITIES A description of how the business plans to achieve the objectives REQUIREMENTS A description of what should be implemented 12. Strategic Business Architecture deliverables from a FederalAgency EA SBA Doc What it isWhat was doneWorking Documents Guiding principles provide Used a Guiding Principles Guidingfilters and guidelines to ensure workbook to gather individualPrinciplesthat solutions are consistent SME opinions, held feedbackwith DOJs strategic goals andmeetings to reconcile Word doc & PowerPointobjectives. Identifies forces for change Research and document Key Driversthat affect how DOJ conductslegislation, directives, andits business and approaches department level strategicthe UFMS program. documents Excel spreadsheet Mission, The mission, vision, goals, and Utilized existing mission,Vision, objectives articulate the vision and goals. Leveraged Goals, programs strategy in a SMEs to verify and drive out Objectives structured manner.objectives (per goal) PowerPoint Identifies metrics to measure IT Utilized existing performance Performanceperformance. Establishes a indicators, linked indicators toIndicatorsclear line of sight from the their appropriate objectivesstrategy to the measures. Excel spreadsheet These statements describe, in Worked with SMEs to developBusinessbusiness terms, how the goals detailed enterprise-level Capabilities and objectives are realized and capabilities, linked thoseprioritize their individual capabilities to appropriateimportance to the business. objectives Excel spreadsheet 13. Excerpted capabilities (4 of 55 total) CapabilityLinked Goal Maintain common processes centrally Improve financial performance across the Department to support centralized administration and standardization Support ad hoc data access across all Improve operating efficiency of financial LOBs. This will provide a simplified, management and procurement functions single source for report information in a timely fashion Generate performance and Consistently comply with federal, accountability reports, within OMBaccounting, and system standards specified timeline Capability for drill-down to transaction Improve financial performance level information 14. Engage the Business by documenting, and avoiding excessivedetail in, the business operationsOperational Business Architecture BUSINESS CONTEXT Business Architecture Functional DiagramsDomain Level LEVEL 0 FUNCTION ORGANIZATIONBusiness LEVEL 1 FUNCTION STAKEHOLDER LOCATION Process DiagramsProcess design usually Process Design PROCESS / SUB-PROCESSProject Level done AFTER a blueprint Business exists, as part of a funded project. TASK 15. Operational Business Architecture deliverables from a Federal Agency EA Deliverables & WorkingWhat it isHow to do it Documents Describes the functional Work with LOB to define high- Operationalconcept for the LOB, level organization andBusinesscomprising process,responsibilities, create Architecture organization, and data classes business context diagram,documentthat are foundational to identify business locations Visio diagrams & Wordbusiness operations document Top-down description of level Defined best-in-class, end-to-High-Level0 and level 1 LOB func. Each end IDEF-0 maps andFunctionallevel has 5-10 steps. Used todefinitions for relevant Descriptions assess any gap with detailed financial management andprocesses. procurement functions Visio diagramsCapabilities Detailed mapping of SBA Examined the level 1 Mapped tobusiness capabilities to their processes and identify the Level 1supporting level 1 functionscharacteristics that enableFunctions the business capabilities(from the SBA) Excel spreadsheet Observations, risks, Compare the high-levelimplications and plannedprocesses with the currentresolutions for observedstate detailed processes Gap Analysisgaps between high-level Identify new capabilities andprocesses and current state the process required to(detailed processes)support them PowerPoint presentation, Worddocument, & Visio diagrams 16. Use the Business and Solution Architectures to derive a roadmap of business capabilities Operational Business ArchitectureStrategic Business ArchitectureSolution ArchitecturePresentation Services Internet Services PlatformThird-Party ApplicationsWAPWebS / MMS Proxy and Traffic Server Server Centre ServerW-LANStreamingService Services PersonlizaRules CommunityLocation Personal Information ManagementEmail Attachment Self CareQ-SpaceServices Based App.RIM-tionEngine Unified Corporate MessagingContentSearch MessagingM Commerce EngineManagementCustomer Facing Applications Consumer Remote Messaging MonitoringOperations Support SystemsBusiness Application SystemsCommon Application Services EAI ORB/Common System Single Location DataMedia Services ProfilingGISInformation (ETL)ServicesSRB APIServicesSign-On ServicesServices Persistence FrameworkData Services For Launch Application Enterprise File MgtUser Profile Location/Geographic DataFuture Offerings Data Stores Data StoresServices Data1H062H061H072H07Capability 01Theme 1Capability 12Capability 04 Roadmap ofCapability 07Theme 2 Theme 3 when eachCapability 09capability isCapability 02 deliveredCapability 03Capability 05Capability 08Business CapabilitiesRequiring IT Support 17. Tackle the enterprise, one Line of Business (LOB) at a timeEnterpriseBusiness Domains / LOBsProject / ReleaseDomain 1 modelsProject / Release ArchitectureProject / Release ArchitectureProject / Release Architecture Domain 2 modelsProject / Release Architecture Enterprise level modelsProject / Release Architecture... Project / Release ArchitectureDomain n modelsProject / Release ArchitectureProject / Release ArchitectureProject / Release Architecture EA Repository 18. The Business Architecture generates metrics by which IT progress can be measured and governed Performance Indicators Business specific metrics linked to objectives and goals Alignment Metrics Number of projects involved with each goal Exception and deferral impact on goals IT spend per goal IT spend per objective Quantitative view of blueprint delivery progress Blueprint value management 19. Example: Value Creation Report Purpose: To provide visibility into the alignment of the actual release state with original target release goals Description: The Value Creation Report illustrates the current status of each function in accordance with its alignment with functional and technical business capabilities. This report takes into account the impact of exceptions and deferrals on the intended release state of each domain and exposes any gaps that have formed between target and actual end-states Empty circle - Not addressed in release Half circle - Core functionality met, high exception score 3/2 circle - Core functionality met, low exception score Full Circle - On target with goal 20. Consider organizational changes that increase the likelihood of achieving Business/IT alignment Consider dedicated Enterprise Architects Assigned to specific Business domains Oversee Business and Solution Architecture Consider combining Business and IT strategy functions Single Strategy organization Consider a dedicated EA Governance organization Lightweight, few resources Tiered governance, focusing on high dollar, high risk projects 21. Avoid some common pitfalls when building a Blueprint Do not start with requirements, start with capabilities Requirements are good for implementation but bog down theplanning process Capabilities provide a manageable level of detail forprioritization and release planning Do not start with processes, start with functions Process engineering requires a tremendous amount of detail Functions allow coarse-grained prioritization and justification forfollow-on detailed process work Hold off on reference architectures until a couple blueprints exist Ensure you are working on the highest priority common services 22. You do NOT need an EA tool to get started All work was accomplished with MS Office Excel (linking), and PowerPoint (models), and Word (reports) Major drawbacks are that the work is static and difficult to update EA tools are necessary to scale beyond one or two domains The experience gained hand-crafting the architecture is invaluable to appropriately evaluate and select an EA tool Assess standard meta-model Assess ability to link from Strategic to Operational to Solutionmodels Assess ability to track and report progress Visualization is different from modeling 23. Key Takeaways IT must engage the Business Develop Guiding Principles Document the Strategic Business Architecture Document the Operational Business Architecture Eat the elephant one bite at a time Divide the enterprise into manageable domains Blueprint each one in succession Measure the result Use Business Architecture metrics to manage and govern Change the organization if needed Create renaissance roles for Enterprise Architects, Business Architecture, and Governance 24. Thank You Questions?