Week 12
We are all busy, in life at work, all the time. When you are busy, it is very easy to get stuck in moving from one decision to the next, just getting through the day. At work, this looks like tactical decisions that help us deal with the issues immediately in front of us. However, it can be very hard to step back and be strategic in our thinking. Strategic plans require us to step back and make better decisions. Even decisions that can be painful in the short term.
The book we read for this class, Enterprise Architecture as Strategy, show how Enterprise Architecture can really help be strategic in looking at a company starting with the operating model, the enterprise architecture including the organizing logic for business processes and IT infrastructure, and the IT engagement model. One important piece of that is to implement standardized processes that while may causing organizational change offer simplified technology environments, lower operational costs and great agility. This idea is particularly important for companies dealing with a changing regulatory environment. Companies that have implemented good enterprise architecture principles have transparent information and a easy ability to access to data that makes reacting to new regulations easy because the data needed is already available.
Focus on operating model is important because it can enable a company to develop IT and business process capabilities that provide a stable foundation and helps to identify future strategic initiatives. The operating model becomes a driver of business strategy. Once the operating model is clear, enterprise architecture can align business and technology initiatives. Also, key processes, systems and data that make up core operations can be identified and digitized to create a foundation for execution.
One key to making enterprise architecture successful is to ensure that enterprise architecture uses high-level logic so that a shared understanding of how the company will operate can be created. At the same time detailed plans for the deployment of people, process and technology are required. Enterprise architecture can help with this shared understanding by creating high level artifacts or core diagrams, such as a high-level one-page picture of the processes, data and technologies that make up the foundation of a company. This diagram must include core business processes, shared data, key linking and automation technologies and the key customer groups served by the company.
By capturing the essence of a company, this core diagram can help management develop a simple vision of their organization. This can then help management understand the core process that need to be digitized, the data included in those processes and the technology that makes this possible.
One difficulty in moving to standardized, digitized core process is that the current system and processes are what make daily operations work. These changes must be implemented without impacting daily operations. However, these changes are required to enable reduced IT operating costs and to achieve the strategic agility needed to thrive in today's ever changing environment.
The web of linkages between disparate legacy systems that do not directly communicate over time create incredibly complex systems which are very difficult and risky to change. This can significantly increase time to market for any new idea. Standardizing technology can reduce IT costs and reduce risk. Standardizing and digitizing core processes and data can make it difficult to change business processes and data, but allow new products and services to be added quickly and easily. Thus standardization and digitization actually enable innovation.
Moving to a more standardized and digitized architecture takes flexibility away from business units. However, it increases the ability of a company to enable global flexibility as data becomes more transparent and processes are more predictable.
To be successful, companies must focus their architecture efforts on strategic organizational processes and trying to eliminate process and technology silos that limit business efficiency and agility. Implementation should be incremental so that small improvements can be realized over time. Architecture capabilities should be built in house to ensure a clear understanding of business strategy and IT architecture which can only occur if there is a close relationship between IT and the business. Once applied, a mature architecture can increase success in achieving strategic goals.
We are all busy, in life at work, all the time. When you are busy, it is very easy to get stuck in moving from one decision to the next, just getting through the day. At work, this looks like tactical decisions that help us deal with the issues immediately in front of us. However, it can be very hard to step back and be strategic in our thinking. Strategic plans require us to step back and make better decisions. Even decisions that can be painful in the short term.
Focus on operating model is important because it can enable a company to develop IT and business process capabilities that provide a stable foundation and helps to identify future strategic initiatives. The operating model becomes a driver of business strategy. Once the operating model is clear, enterprise architecture can align business and technology initiatives. Also, key processes, systems and data that make up core operations can be identified and digitized to create a foundation for execution.
One key to making enterprise architecture successful is to ensure that enterprise architecture uses high-level logic so that a shared understanding of how the company will operate can be created. At the same time detailed plans for the deployment of people, process and technology are required. Enterprise architecture can help with this shared understanding by creating high level artifacts or core diagrams, such as a high-level one-page picture of the processes, data and technologies that make up the foundation of a company. This diagram must include core business processes, shared data, key linking and automation technologies and the key customer groups served by the company.
By capturing the essence of a company, this core diagram can help management develop a simple vision of their organization. This can then help management understand the core process that need to be digitized, the data included in those processes and the technology that makes this possible.
One difficulty in moving to standardized, digitized core process is that the current system and processes are what make daily operations work. These changes must be implemented without impacting daily operations. However, these changes are required to enable reduced IT operating costs and to achieve the strategic agility needed to thrive in today's ever changing environment.
The web of linkages between disparate legacy systems that do not directly communicate over time create incredibly complex systems which are very difficult and risky to change. This can significantly increase time to market for any new idea. Standardizing technology can reduce IT costs and reduce risk. Standardizing and digitizing core processes and data can make it difficult to change business processes and data, but allow new products and services to be added quickly and easily. Thus standardization and digitization actually enable innovation.
Moving to a more standardized and digitized architecture takes flexibility away from business units. However, it increases the ability of a company to enable global flexibility as data becomes more transparent and processes are more predictable.
To be successful, companies must focus their architecture efforts on strategic organizational processes and trying to eliminate process and technology silos that limit business efficiency and agility. Implementation should be incremental so that small improvements can be realized over time. Architecture capabilities should be built in house to ensure a clear understanding of business strategy and IT architecture which can only occur if there is a close relationship between IT and the business. Once applied, a mature architecture can increase success in achieving strategic goals.
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