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Understanding EA Value starts with understanding What is IT Generated Value?
ICT Business Activities
IT as an Resource Value is:1. Featured in its• Hardware • Software• Supported business
processes• People skills
2. Measured by productivity, on-time & quality indicators
The interaction of IT & Bus creates business value, which:
1. Is of an economic and/or strategic nature;
2. Has different facets, depending on business priorities;
3. Can be measured using different metrics (KPI + measures) relevant to the appropriate business contexts;
4. Are created via projects of BUs
Adapted from: http://www.mckinsey.com/insights/business_technology/how_cios_should_think_about_business_value ;
http://docs.health.vic.gov.au/docs/doc/EF8861765B99DB1ECA257B19007DBA75/$FILE/understanding_program_logic.pdf
http://evaluationtoolbox.net.au/index.php?option=com_content&view=article&id=30&Itemid=136
Example: Business Value created by use of EA
Source: http://davidfrico.com/rico07a-s.pdf
Case Study – Project that aligns the ICT of USA federal, state & local governments. The cost-benefit analysis findings (business value):
1. Financial Cost Savings2. Service Provisioning Improvements3. Lesser Duplications & Waste4. Higher economic growth building capacities5. Consistent community services independent
of political changes
Example: Business Value created by use of EASame Case Study – More in-depth analysis of cost savings by each USA state
Source: http://davidfrico.com/rico07a-s.pdf
EA Value
Strategic elementsBusiness elementsTechnology elements
Better Enterprise Resource Planning
• Shorter planning to deployment cycles
• Identifies & reduces resource & workduplication optimises staff nos.
• Identifies & improves resource integration & performance
Better Communications between strategists, business & ICT staff:
• More effective meetings
• More shareable reference info about strategy, business & ICT matters
Better Decision Making
• Faster decision making
Value varies depending on:1. Size & complexity of organisation2. Type & number of IT performance issues/gaps3. Degree of ICT resource duplication4. How supportive are stakeholders for IT
“No such thing as a free lunch”
The cost of getting value is accommodating some degree of risk
WHAT IS RISK?
Managing EA Risk – What is Risk?
Risk - the effect (positive or negative) of uncertainty on objectives. Risk is considered with reference to possible consequences and likelihood of occurrence (ISO definition)
The actual consequences of risks are often called problems and issues
Objective Target KPI
Below KPI
Above KPI
Aims for
Over achieves
Under achievesRisk Occurrence results in KPI variances & other unforseen effects
Risk Assessment:1. ID the uncertainty causes of KPI
variances & other dangers2. Measures the impacts of risks3. ID the appropriate risk prevention,
mitigation (containment) and recovery strategies
If EA is to enable the creation of value adding ICT enable services, then think of what causal factors (risks) that can erode the work performance of this intent.
Examine the value creation of EA in text and think of the reverse and what may cause it
Strategic or operational
Managing EA Risk - Risk Management Process Concepts
Example of a typical Risk Management Process Model Source: https://ppl.app.uq.edu.au/content/1.80.01-enterprise-risk-management
1. Risks Prevention2. Risks Mitigation3. Risks Recovery
EA Value / Risk
Strategic elementsBusiness elementsTechnology elements
Better Enterprise Resource Planning
Better Communications between strategists, business & ICT staff
Better Decision Making
1. Current & Future EA Planning involves more $2. EA as a new resource mgt method is not always accepted3. Require specialist skills – availability issues high salaries4. Time to document may delay projects5. Lack of comprehensive & integrated EA management &
modelling tools
EA ValueEA Risks
Managing EA Risk – from a Risk Prevention Perspective
1. Don’t be first adopter of EA advances in method changes & tools dev
2. Secure executive commitment & support for EA adoption
3. Identify EA costs and allocate to project budgets capacity to zoom in/out EA cost components
4. Have EA team succession planning – training and recruitment backup strategies
5. Integrate EA management methodology into project management methodology, as part of project governance; include EA management in corporate governance system
Deeper into EA Cost RisksUnderstanding the Cost Drivers of EA
SETUP + COMPLIANCE + UPDATE
1. EA Staffing & Consultant Costs
2. EA Activity Costs
3. EA Equipment/Tools’ Costs
4. Involvement of other Stakeholders – the costs of their time, resource provided, etc
In Projects
Cost Drivers can be potential Cost Risks – How?
EA Governance Concepts
Corporate Governance & ImplementationEA Governance in Projects
SoA GovernanceBalancing SoA Agility & Quality Value/Risks
Corporate Governance
Organisation’s “Rules”
Expected to:
1. Be reflected in all people’s behaviours (conduct)
2. Represented in all decision making, operational & project activities
3. Check compliance & intervene to correct non compliance
Corporate Governance Implementation
Organisation’s Governance Framework
EA Governance
Can be part of
affects all ICT enabled operational & project
work
Operations
Projects
Governance Framework
OrCan be part of
EA Governance in Projects
EA Governance work is about checking that people follows EA principles, policies, standards & best practices in their projects, ie compliance oversee
How do you deal with non compliance?
Depends on:• Your management style• Organisation culture
Compliance accountability behaviours & penalties
Risk taking behaviours
EA Governance StylesChiefdom
IT or Business MonarchyDuopoly – some business & IT
executives controlDemocracy
Anarchy – no clear authority
EA Governance in Projects
EA Governance enablers:
1. Communication effectiveness
2. Available of quality EA tools
3. Showing visibility of compliance
4. Compliance rewards / non compliance penalty
5. Change management decision evaluation & execution accountability
EA Governance & Compliance Enablers
Communication Enablers EA Training Programs
EA HRM Provision
EA Knowledge Management Practice
EA Automation
Clear & common understanding
Recruitment & HR Plans for EA
Regular Access to EA Training
Specialist Networks & Forums
EA System Tools
SoA Governance – rules for exercising control over services
Service Perspectives
Strategic Service
Business Services
IT App Services
Network Services
1. Design rules2. Runtime rules3. Change mgt rules
Example: Using EA3 Layering
SoA Agility
TimeQuality
Balancing Quality & Agility Value/Risks in SoA Projects
SoA Quality
TimeCost
Less time
More time
More quality More time
The more agile a SOA implementation becomes, the more time is required to ensure quality, and as a result, it isn’t long until quality activities become so time-consuming that the agility of the implementation is at risk.
The only way to obtain the balance between agility and quality the business requires is to take an iterative approach to a SOA initiative, where each iteration is bounded either by scope or cost
Quality = More Time & Cost
Agility = Quality + More Time = (More Time & Cost) + Time
Ramifications of balancing SoA Quality & Agility in Projects
EA work is executing both
EA Management + “analysis & design” modelling
Agile iterations bounded by scope & costs executingmanaging
Some Basic SoA Concepts
Service Definitions
Service Design Concepts: ZAPTHINK vs Open Standards SoA Design
Symbolic & Semantics Service Design Modelling
ZAPTHINK – a SoA future roadmap
Classification of EA Domains
Application Integration Domain
Information/Data Domain
Technical Infrastructure Domain
Business Architecture Domain
The classification of EA documentation areas (domains) can vary across EA standards
What is a Service?
ITIL Definition: “A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.“
SoA Definition: “A self-contained unit of software that performs a specific task.”
Business Service Infrastructure Service
1. “Are services that perform specific business functions and are required for the successful completion of a business process”
2. Also called application services
1. “Services provide the technical functionality necessary for the implementation of business processes in SOA, but do not directly add business value”
Source: https://www.mulesoft.com/resources/esb/services-in-soa
Understanding Service Concepts:ZAPthink Service Abstraction Concepts
ZAPthink Service Concepts:
1. Service Abstraction reveals1. How a service is
configured & implemented
2. How a service interface with another? Via WSDL
3. What is the nature (type) of a service? Is it strategic, business, IT or deeper classification types under each of these 3 core service lines.
ICT enabled Services
ICT enabled Services
1, 3
2
1, 3
Understanding Service Concepts: Open Standards – SoA Design Principles
SoA Design Principles
1. Service Abstraction = Hiding as much details of a service as possible via using service contracts that only contain essential information about services:
Uses metadata to describe services service contract information = metadata
the type of a service abstraction is related to the logic in hiding / revealing info
Understanding Service Concepts: Open Standards: SoA Service Design Principles
SoA Design Principles
2. Types of Service Abstraction Functional Technology
Program Logic
ServiceQuality
See http://serviceorientation.com/soaglossary/meta_abstraction_types for details
Functional abstraction what a service is capable of doing
Technology abstraction what technologies are used to build a service
Program Logic abstraction how the functions of a service are designed & programmed
Service quality abstraction What are the runtime behavior, performance or reliability requirements, or other QoS details required of a service
Summary - Levels of Service Abstractions
Service Contract defines service• Type• Implementation
specs
ServiceMetadata
Service Contract defines service• Type• Implementation
specs
Service Interface Contract
Functional Contract
Program Logic
Contract
TechnologyContract
QualityContract
1
2
3
Integrating ZAPTHINK and open standards’ SoA Design concepts
Levels of Service Abstraction
Two methods for modelling SoA services:
1. Symbolically – modelling the service’s structural properties for organising contents eg Entity Relationship objects
2. Semantically – modelling the service meanings of contents eg ontology objects
Symbolic & Semantic EA Modelling Examples
ER Modelling: Object’s Structural Relationships mapping
Ontology modelling: Object’s Structural & Contents’ Relationships mapping
Zapthink Vision - SoA development Roadmap
5 Business Trends
3 ICT Trends
Influencing SoA analysis & design
developments
Tutorial Qs
Q1. What are some of the areas of value that are generated by an EA program?
Q2. What are some of the risks associated with implementing an EA program?
Q3. How does EA help an enterprise to view its strategic direction/goals?
Q4. How does EA help an enterprise to view its business services?
Q5. How does EA help an enterprise to view technology resources?
Q6. What is meant by managing risk? Provide two methods to manage risk.
Q7. How does EA link to strategy, business and technology?
Case Study Analysis
1. What is the potential value of DMC EA proposal?
2. What are the possible risks in the DMC EA proposal?
3. How can EA can help develop views of this business’s strategic direction and goals; business services and supporting resources?
Q8 Do you agree with the need for an EA program in the case study?
Kate Jarvis (COO)
Sales & Inventory Tracking System(SITS) – ~2 years RoI, $3mio++
Integrate info across• Sales• Inventory• Production
Cost Accounting ModuleWELLCO ERP System18 months RoI, <$600K
Sam Young(CIO)
Jim Gorman(CFO)
Capacity to compete with competitorMitigate production inefficiency
Improve cost management
Decision Options: Buy 1, Buy 2?
Rob Danforth(CEO)
Gerald Montes(Chief Council)
SCENE 1
Lily Jefferson
System Analyst
VinceThe Albright
Architect
Sales & ProductionDepartment
FinanceDepartment
Analyse Kate & Jim’s System Requirements
Infer DMC’s Strategic GoalsEg New Custom Order Line of
Business for Next Year
What is the value in terms of cost savings & scalability of
solution?
EA will align each current & future departments,
increase cost savings into the future, BUT will cost
additionally $121,600 & 2 months ......
1What is DMC
organisation culture?
3 Discuss the merits and limitations of the CIO’s (Sam) EA Plan for Financial and Production Segments?
2Can you describe
DMC organisation structure?
SCENE 2
EATeam
Given the mandate to develop 2 segments of DMC’s EA.First deliverable: business case & EA Dev project plan
Two Critical Success Factors1. Inclusive stakeholder involvement2. Agreed EA Methodology
DMC EA Plan: Financial & Production Segments
Report
Produced
Elaborate the EA Approach / Methodology proposed in report
• EA Development timeline• EA modelling steps involved• Planning & decision making information specs, including preferred
documents’ formats• Selection of EA modelling techniques & tools• EA scenarios – Current & Several Future views• Agreement of planning assumptions• Evaluation of Kate/Jim’s systems and retrofit in EA scenarios• Explanation of how the EA methodology’s framework to structure DMC
EA and guide its various EA modelling/ documentation activities
Meeting Discussion Highlights
Meeting Outcomes: Agreed EA Methodology & EA Documentation FrameworkNext Meeting Goals: Understand how the 2 outcomes are used to document the current & future
models of Jim + Kate’s business units/departments
SCENE 3
EATeam
Given the mandate to develop 2 segments of DMC’s EA.First deliverable: business case & EA dev project plan
DMC EA Plan: Financial & Production Segments
Report
Produced
Inferred Methodology Contents• EA Development timeline• EA modelling steps involved• Planning & decision making information specs, including preferred
documents’ formats• Selection of EA modelling techniques & tools• EA scenarios – Current & Several Future views• Agreement of planning assumptions• Evaluation of Kate/Jim’s systems and retrofit in EA scenarios• Explanation of how the EA methodology’s framework to structure DMC
EA and guide its various EA modelling/ documentation activities
This Meeting’s Goals Achieved: To Agree the proposed EA Methodology & EA Documentation Framework
Inferred Business Case Contents• Chosen Jim/Kate’s areas as the 2 EA segments because they
cover several lines of business (LoB)• Analyse DMC’s strategic goals, business activities &
technology capabilities• Specified the 2 areas’ business and ICT requirements
SCENE 3
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