Andrew L Macaulay Certified Global Architect, Capgemini Enterprise Architecture Where’s the Business?

Andrew L MacaulayCertified Global Architect, Capgemini

Enterprise ArchitectureWhere’s the Business?

Agenda

Introduction and Agenda

The Quest for Business/IT Alignment

What is Business Architecture

Organisational Barriers

Moving to a Strategic Value Focus

Changing the Game

Summary

2Copyright © 2007 Capgemini UK

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Brief Biography

Worked in IT since early 1980’s

Joined Capgemini’s Architecture team in the UK in 1993, working across sectors (including government and finance)

Remain active Enterprise Architect both developing architecture and architecture capability with clients

Active in Capgemini’s Global Architects Community, including being elected Global Head of the Community for 2005/2006 Major contributor to Capgemini’s Integrated Architecture Framework Senior trainer (facilitator) in architecture for Capgemini and our clients Active contributor to the Capgemini Architects Learning Programme

Capgemini Certified Global Architect, Open Group Master Certified IT Architect and Microsoft Infrastructure Architect MVP


Connecting IT with the Business

Business and IT often remain poorly aligned/connected

IT Departments are often still seen as a cost

Business and IT find it hard to communicate effectively

This lack of alignment often results in: Costs of IT being significantly

larger than necessary Strategic investments being

under-utilised

Service Oriented Architecture makes this even more critical


Business is Having to Adapt and Change

“Executives need to stop looking at IT projects as technology installations and start looking at them as periods of organizational change that they have the responsibility to manage”

Harvard Business Review, November 2006 by Andrew McAfee, Associate Professor, Harvard Business School


Managing the Portfolio & Reacting to Business Change


Based on Maslow's Hierarchy of Needs

Bu

siness B

en

efitB

usin

ess Be

nefit

SpendSpend

Progressively more difficult to identify what to spend on Cost reduction/efficiency Improving existing estate Investment in new projects

And how can you align this with the real business needs?

Source: report by the Economist (sponsored by Capgemini)

Architecture can provide a Common Language

Enterprise ArchitectureEnterprise Architecture

Enterprise ITArchitectureEnterprise ITArchitecture

Enterprise IT Information Systems Architecture

Enterprise IT Information Systems Architecture

Enterprise ITTechnology Infrastructure Architecture

Enterprise ITTechnology Infrastructure Architecture

Software Architecture, Network Architecture, Storage Architecture, …Software Architecture, Network Architecture, Storage Architecture, …

(Enterprise)BusinessArchitecture

(Enterprise)BusinessArchitecture

Organisation and People

Organisation and People

Services andProcess

Services andProcess


(Enterprise)InformationArchitecture

(Enterprise)InformationArchitecture

Enterp

riseS

ecurity Architecture

Enterp

riseS

ecurity Architecture

Enterp

riseG

overnance A

rchitectureE

nterprise

Govern

ance Architecture

SolutionArchitecture

includes:Business,

Information,Apps/Systems,Infrastructure,Security andGovernance

SolutionArchitecture

includes:Business,

Information,Apps/Systems,Infrastructure,Security andGovernance

“Traditional” Organisational Barriers Get in the Way


BusinessGoals

BusinessGoals

IT / ISStrategy

IT / ISStrategy

Enterprise ITArchitectureEnterprise ITArchitecture

IT Projects

IT Projects

IT Projects

IT Projects

IT Projects

IT Projects

BusinessExploration /

Discovery

BusinessExploration /

Discovery

Business Transformation

Design

Business Transformation

DesignBusinessChange

Programme

BusinessChange

Programme

“Traditional” Business Strategyand Transformation Process

“Traditional” IT Strategy andArchitecture Process

Start

IT get engaged late in Technology Implementation Projects after ability

to collaborate has largely passed

IT get engaged late in Technology Implementation Projects after ability

to collaborate has largely passed

“BusinessArchitecture”

(Defined)

“BusinessArchitecture”

(Defined)

Portfolio and Solution

Architecture

Portfolio and Solution

Architecture

Business Transformation Initiatives are started here, outside of the IT

strategy process

Business Transformation Initiatives are started here, outside of the IT

strategy process

ITBusiness

Business/IT Alignment needs a Collaborative Approach

A common understanding of business priorities/timescales

A coherent view of Enterprise Architecture that supports and informs both business and IT

Clear sponsorship from across the Business as well as IT

Business and IT working together as one, with IT seen as an integral (and valuable) part of the business


But how can you break down the barriers?But how can you break down the barriers?

Earning the Right

To move towards this goal, the IT Function needs to…

Improve each line-of-business’ opinion of the value it can and will get from involving (appropriate) representation from IT

Demonstrate the ability to successfully deliver strategic business value including getting recognition of this success from the business

Offer credible and value-adding business-focused IT advisory expertise to early-phase business transformation work

Provide transparency of TCO for the full life cycle of the deployment of IT solutions driven from business transformation and improvement initiatives


Architectural Thinking Does Not Need Only Apply to IT

The definition of architecture in ANSI/IEEE Std 1471-2000 is“The fundamental organization of a system, embodied in its components, their relationships to each other and the environment, and the principles governing its design and evolution.”

This can be applied equally well to business as well as IT

But, Business Architecture is often little more than a business model developed by/for the architects to document the solution requirements or to identify business impact of an IT solution

Business Architecture can be used to Architect the Business and drive business change in a holistic way supported by IT


Business Architecture enabling Business Change

Business Architecture can be developed based on Services view of the business Modelled as Business Activities,

Goals, Roles and Objects Plus the information aspects of

Information Objects

Logical and Physical Business Components then derived Organisational, Role and

Process-based perspectives Leading to the overall view for

new physical organisation, roles and process definitions


Capgemini’s Integrated Architecture Framework (IAF)

IT Focus

Projects are reactive to the individual business owners

New project budgets in existing stove-pipes, resulting in stove-piped solutions & inefficiencies

IT owns decisions about budget and seen as ‘getting in the way’ of business

Regulatory impacts such as for compliance result in IT projects and see as simply a cost

Strategic Business Focus

IT and business have shared view of the (coherent) business and IT strategies

Projects are linked to and measured against strategic objectives

Projects have business case (ROI) driven by business and measured post implementation

Business and IT can see how value is achieved and jointly justify the investment

Moving from an IT focus to a Strategic Business focus


Some Key Activities to Move You Forward

Joint-Team Transformation Discovery Initiatives

Consulting ‘discovery’ techniques are well developed, but generally developed for business-only use – use of a Concurrent Business/IT approach greatly improves the value delivered

Joint-Team Capability Creation and Development

Identify the organisational and skills required to successfully deliver this joint delivery approach

Most organisations need to evolve their own capabilities and processes needed to be successful with the new approach

Combined Business and Technology Roadmap Definition

Identifying the framework to evaluate the candidate technologies might be that support the business and technical functions in order to realise the benefits identified for the business initiatives


Architecting your EA Function


Some Potential Organisational/Governance Models


Hierarchical Governance Model Lifecycle Governance Model

Getting Started (Some Tips and Tricks)

Work on the business perception of IT first to build up credibility, before attempting to use IT to change the business What are the barriers on the business side to effective business

partnership with IT? What does the business actually want from IT?

Make IT transparent to the business by showing IT in business language and highlight areas of opportunity in business terms

Focus on the link between strategy, principles, standards, portfolio management and commercial governance first Then develop the big-picture models, language and mindset that are

shared across business and IT

Look for clear sponsorship from inside the Business – both at the C-level and deeper in the organisation

Avoid the “IT science project” – pick three things to do that are meaningful to the business and do those first and well


Summary

Business/IT Alignment is a Real Issue Today Business is driving ever more need for change Architecture helps Business/IT Alignment

Architecture is often seen as an IT function Collaboration/partnership between Business and IT is needed Should the Architecture Function be inside the Business?

Using Business Architecture can help you connect better with the business and provide a common language

There are some simple steps to help you on the way!


Additional Reading

Capgemini Resources http://www.capgemini.com/soa http://www.capgemini.com/architecture http://www.capgemini.com/iaf http://www.capgemini.com/ctoblog

Published Case Studies http://www.capgemini.com/resources/success-stories/nato/ http://www.capgemini.com/resources/success-stories/kbc_group/

Open Group Architecture Resources http://www.opengroup.org/togaf http://www.opengroup.org/itac


www.capgemini.com

[email protected]

Andrew L Macaulay Certified Global Architect, Capgemini Enterprise Architecture Where’s the Business?

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