Company

Business
Strategy
Enterprise
Architecture
Richard Hillier
Created for BCS EA SG Conference 2017
 WHERE DOES EA FIT ? BETWEEN STRATEGY & EXECUTION Business Strategy / Strategic Planning
• Led by Strategy Group / Committee
S
Business Strategy / • Periodic / one-off formulation & review.
Strategic Planning • Includes IT Strategy (usage & delivery)
T
• EA & business units are consulted
BusineSss Model • Op Model defines org. structure,
R
responsibilities & controls - includes CIO
Operating Model Informs Advise role & EA Mission
A
Enterprise Architecture
T
Owned by CIO / Led by EA team + virtual
Enterprise Architecture team from business units
E
Bus Data Apps Infra
Arch Business Units
G
Arch Arch Arch Planning, Projects, Operations in line with
Arch Roadmap strategy & EA. Includes interlocks and matrix
Y
organizations.
Includes IT provider(s) – who may report to
E the CIO.
X Business Units
Planning Informs Advise Business Consultants (external); may consult
M across strategy, EA execution. Sometimes calling
E A
C N their work “architecture” !
Projects
A
G “Non-elevated” view: EA is seen by some business
U E
T Operations consultancies as a business unit (CIO/IT) level
I control set-up on a peer-to-peer basis.
O

N
 WHAT IS THE TYPICAL MISSION OF EA ? INTEGRATION !
“The company conducts its business as an enterprise by sharing information”

EA is based on an Implicit / explicit strategy decision to integrate the business by organized information sharing
• Accounting can be a key advocate - information sent to them must be reliable enough to base external accounts on.
• CIO tasked to organize the information sharing using IT.
• EA has a popular value proposition of ensuring “business / IT alignment” (i.e. business-IT-business)

EA artefacts can be seen as an “integration model” comprising

• Business architecture (the business activity – based on strategy, plans ,org, processes – to be integrated)
• Information architecture (the information to be exchanged / shared)
• Applications & Infrastructure architecture (the technical means of doing so).
• + EA roadmaps define how the model changes over time in synch with business transformation plans
• & EA governance ensures projects adhere to the EA

Innovation / Internal consulting (Architectural Studies) is often added into EA

• Business; leading BPR / BPM initiatives
• Information: Business Intelligence, Big Data, Enterprise Analytics, Knowledge Management etc
• Applications & Infrastructure: New Technology. IoT

Notable variations:
• Jeanne Ross (MIT) “EA as Strategy” merges EA with operating model to form a “foundation for execution” !
• EA combined with a Business Transformation PMO
• + New “aspirational” Bus Arch definitions (Bizbok) expand Bus Arch footprint into strategy & planning (& beyond EA ?)
 E A - DEFINING THE OPERATIONAL (RUN-TIME) BUSINESS / IT RELATIONSHIP

System Architecture definition (ISO): “fundamental concepts or properties of a system in its environment
embodied in its elements1, relationships2, and in the principles of its design and evolution3”

B INFORMATION
“The Bus / IT relationship(2)”
RUN USINESS TECHNOLOGY
-- at Enterprise Level--- Systems / Machines /
A
TIME Programs(1,2) …on… Devices
CTIVITY
People
Processes (2, 1?)
Things
E nterprise Architecture
Artefacts Process – Applications <- EITA “views”
EBA “view”s ->
Map (2) Information Model (2)
Technical Operational Model (1)
- Roadmaps, Guidelines &
Standards (3)
-
• Business Processes (1?) may be an element (part of the “system”) or an external reference (to the “IT system”).

• The EA business – IT relationship becomes a definition of business integration overall (business – IT – business)

• EA is both Holistic (enterprise view) and Atomistic (of all programs on all devices)
 ANOTHER EA VIEW: THE ARCHITECTURE OF THE SYSTEM OF SYSTEMS (SoS)
External
Two types of constituent systems
The company as a system 1. Business Units / Functions
Markets 2. IT Systems
(Ecosystem => elements of the SoS
s) WebSite
C Marketing
EA defines the architecture of the SoS,
U mainly the relationship between
S
T CRM elements (the dotted lines).
M Sales
OE A
EA does not define the structure of
R
S G constituent systems
- IT systems (defined by IT solution
T
E ERP architecture & design)
Admin
N - Business units (defined by business
A T
L planning, process design /
S
S engineering)
E - OT (operational technology / aka
U Manufacture OT EDW ICS)
defined by plant engineering
N
RT P  except by setting standards in order
E to achieve integration.
P
G L Accounting
(all) E-mail
I External markets “Ecosystems”
U E interactions viewed as being through
L Etc Etc
R
business units (even when web based)
A S e.g. customers are guests of sales !
T
The EA as Town Planning analogy applies in this context !

R
 ARCHITECTURE LEVELS & DOMAINS
Architecture Scope ---------------- Architecture Domains -------------------- • Infrastructure subdomains may
exist (Security, Network, Servers,
Business Information Infrastructure
Applications EUD, Quality Print etc)
/ Data (Technology) • Enterprise level is the highest
level architecture for organization
Enterprise / enterprise / CIO realm. But a
/ Strategic common variation is for
“enterprise” to mean all
architectures & “strategic” to
Business mean top level
P
M Segments / • Business Segments / Domains
Domains may be included in EA and not a
/ distinct level. They are aligned to
business units e.g. sales, HR,
P Solution / accounting, IT and/or capabilities
M Project e.g. CRM.
O
• Architecture governance extends
to solution / project architecture.
Project / IT quality must then
Engineer / Analyse / Design / Code / Test
ensure architecture is followed !

Architecture roles are best classified in two dimensions (domain & level)
Architects need to be “T” shaped by level (i.e. understand other domains in enterprise / project)
Depth of content varies by domain & Level e.g. Info & Tech top down / Bus & Apps bottom up !
 EA & BUSINESS TRANSFORMATION: A PARTNERSHIP

The strategy must include all aspects of

transformation - including business, org, IT Business Strategy
/ other resources & investment plan.

Strategy identifies EA is revised for the

Transformation transformation as needed
Management (EA may have advised on
strategy beforehand)
PMO Organization Options:
a) Dedicated Bus Unit. Bus. Transformation - Interlock - Enterprise
b) Within another unit Management (PMO) Arch Roadmap Architecture
(e.g. bus dev) With Planning
c) Within IT delivery Master plans /
d) Combined with EA Informs & Governs: Solution
Interlock / Architecture / Designs
PM rather than Architecture Manage /
+ with a virtual team (Must adhere to EA)
Control

Business units / IT / Vendors

Business: Process Reengineering etc Projects / IT: Software engineering etc

Sub-projects
+ others: Engineering & Construction etc

=> In IT profession terms an Architecture and Project Management partnership is the key !
 FINAL THOUGHTS

• The most sustainable “Right Sized” positioning of Enterprise Architecture seems to be;
• Company (the legal entity)
• Business Strategy (the definition of the activity of the company and it’s basic organization & responsibilities)
• Enterprise Architecture (the model & standards for working “as an enterprise” by sharing information, as part of a CIO mission)
=> i.e. lower down than some presentations as “architecture of the enterprise” where “enterprise” is the company.
• Aligns with business teachings / MBA programs where the overwhelming depictions in books, syllabi & consulting practices is that EA –
if mentioned at all – is a business control mechanism below strategy & akin to other controls e.g. regulatory.
• Aligns with the market view that EA is a means of business / IT alignment; though there are many variation on the EA definition, the
business / IT alignment & overall business integration missions remains predominant.
• Aligns with the view that the formulation of Business Strategy should include Technology & IT Strategy from the outset and not as a
follow on through the EA program.
• Positions EA to focus on the massive changes and opportunities for businesses inherent in developments in the Information sphere:
Big Data, Business Intelligence, Enterprise Analytics, Machine Learning, Knowledge Management etc
• But still emphasizing that the EA function acts as advisors to business strategy, planning, business design activities on their basis of
their understanding of the EA models and standards.

About the author: Richard Hillier worked in IT for 30 years with IBM corporation - 10 years in applications development, 14 in EA roles in
IBM CIO/transformation HQ (New York & Paris) then 6 years as an external customer consultant mostly in n financial & public sectors.
Retired since 2011, retaining a keen interest in Enterprise Architecture trends.