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IFEAD

People -- Process -- Business -- Technology
IFEAD is an independent research and information exchange organization working on the future state of Enterprise Architecture.






Enterprise Architecture Validation

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By Jaap Schekkerman, B.Sc.Ñ

Thought Leader Business Technology Strategy & Enterprise Architecture

President of IFEAD

Revised Version

Abstract

Executive Summary and Value Proposition.

2    Enterprise Architecture, The holistic view.

2.1     What is Enterprise Architecture?

2.2     Enterprise Architecture Program.

2.3     Enterprise Architecture Program View.

3    Critical Success Factors for Enterprise Architectures.

4    The Validation, EA Program & Measurement Process.

4.1     Validation.

4.2     Enterprise Architecture Program.

4.2.1  Using Business Behaviour instead of Business Processes as part of the EA Framework

4.2.2  Using Solution Sets instead of Information Systems itself as part of the E2A Framework

4.2.3  Traceability and Alignment

4.2.4  Enterprise Architecture Framework Solutions decomposition.

4.3     EA Measurement Process.

4.3.1  Value Net Based Assessment

4.3.2  Measurement and Valuation.

4.3.3  Enterprise Architectures: Normalized Solutions

4.3.4  Effective Deployment via Enterprise Program Management

4.3.5  Non-Prescriptive Objectivity.

4.3.6  Expected results from an Enterprise Architecture Program.

4.3.7  Enterprise Architecture Program Maturity Model

5    Today’s Practice.

6    References & Bibliography.


1        Executive Summary and Value Proposition


Good is Good Enough

An Enterprise Architect knows he has achieved the perfect solution not when there is nothing left to add, but when there is nothing left to take away. [In analogy of Saint-Exupery [1]

 

 

Recent Surveys of CEO's, CIO's and other executives provide some evidence of the growing importance of Enterprise Architecture over the last few years. In one of the most recent studies of the Institute For Enterprise Architecture Developments (IFEAD) [2] , Enterprise Architecture was ranked near the top of the list of most important issues considered by top management, CEO's and CIO's.

The various decisions related to business development and technology innovations need to be considered in a systemic manner within the Enterprise Architecture framework of various aspect architectures.

Choices of methods and techniques have to be made in the context of the goals and objectives and a program has to be established to achieve these goals & objectives.

So what's the problem? Many organizations have been paralysed by the complexity of the business & technology and the rate of change in business & technology. Organizations that have decided to pursue IT projects still show an unacceptably high failure rate: IT project failures in industry and Government account for an astounding $75 billion in losses each year, according to Gartner Inc. [3] .

Our great leap forward in business & technology driven productivity has created a plethora of overlapping and confusing solutions, products and standards that increase the complexity and risks associated with every decision a CEO and CIO makes.

Exaggerated claims by vendors and standards bodies promoting the latest panacea product or standard are mind numbing. It is extremely difficult to construct an Enterprise Architecture based framework that properly relates the vast array of overlapping solutions, products and standards, much less an enterprise framework that can be explained to financial decision-makers or the end user community.

All this puts Business & IT executives at a crossroads. There are tremendous rewards for organizations that are able to harness the vast array of available options into a holistic EA framework of flexible domains and supportive technology that meet the rapidly evolving needs of their stakeholder communities. Enterprise Architecture process and framework must effectively align business & IT resources and processes that they enable.

Both government and industry have recognized the role Enterprise Architecture plays in both business and IT effectiveness.

2        Enterprise Architecture, The holistic view

2.1     What is Enterprise Architecture?

Enterprise Architecture (EA) is a complete expression of the enterprise; a master plan which “acts as a collaboration force” between aspects of business planning such as goals, visions, strategies and governance principles; aspects of business operations such as business terms, organisation structures, tasks, activities and information; aspects of automation such as information systems and databases; and the enabling technological infrastructure of the business such as computers, operating systems and networks.

In a large modern enterprise, a rigorously defined EA framework is necessary to be able to capture a vision of the "entire enterprise" in all its dimensions and complexity.

Enterprise Architecture (EA) is a program supported by a framework and approach, which is able to coordinate the many facets that make up the fundamental essence of an enterprise at a holistic way.

 

2.2     Enterprise Architecture Program

Enterprise Architecture provides a mechanism that enables communication about the essential elements and functioning of the enterprise.

It yields centralized, stable, and consistent information about the enterprise environment. In a financial organisation, for example, an EA program would help executives pinpoint the organisations more lucrative markets, understand how well the organisations current resources are meeting customer needs in those locations, and determine what kind of systems might be needed to improve services.

The precise, high-quality information an EA program provides also make it much easier for the organization to respond to the forces of change and make better decisions. And finally, because an EA program enables organizations to reduce duplication and inconsistencies in information, they can dramatically improve ROI for future IT implementations common enterprise architecture information and building a repository to store it.

2.3     Enterprise Architecture Program View

This EA program view addresses at a holistic way the elements of strategy, frameworks, the overall EA process, methods & techniques, standards and tools.

Measurement techniques in terms of risk, costs and benefits have to be added to all elements of the enterprise architecture program to validate their contribution to the overall result.

 

  3        Critical Success Factors for Enterprise Architectures [5]

An effective Enterprise Architecture approach and accompanying framework and methodology produces Enterprise Architectures that can deal with the ever-changing business and technology needs.

 

To accomplish this, an Enterprise Architecture approach must be: Holistic in Scope: It must address all aspects of the Extended Enterprise and directly associated with business technology alignment: business structure, business activities, business processes, information flows, information-systems, and infrastructure, standards, policies. The notion of "Extended Enterprising" is growing in importance, and extends stakeholder status to include external value net members.
  • Collaboration Based: The effort must include representatives from all key stakeholders and value net members into the EA program: Business Domains, Senior Management, Business Partners, and customers.
  • Alignment Driven: It must address the need to directly align 'extended' business and technology drivers in a way that is comprehensible and transparent to all key stakeholders, with a continued process of tracing enterprise architecture initiatives to the business strategy.
  • Value Driven: It must provide mechanisms to define business cases that help ensure and demonstrate the business value of enterprise architecture solutions.
  • Dynamic Environments: It must include analytical methods that support the development of enterprise architectures that are flexible and dynamic to changing business drivers, new opportunities or roadblocks, and enterprise architectures that provide transformation options that mitigate risks and are flexible and dynamic to budget and other organizational constraints.
  • Normative Results: It must provide the ability to define solution sets that can be measured, validated and mapped to real world solutions.
  • Non-Prescriptive: It must not presume an implementation approach. That's out of the scope of the enterprise architecture program.

4        The Validation, EA Program & Measurement Process

4.1     Validation

While every organization’s budgeting and capital planning process is different, and the Enterprise Architecture integration with these processes will vary, there are several critical success factors associated with a successful Enterprise Architecture Program implementation.

The next figure outlines IFEAD’s view on the relationships among Enterprise Architecture, Enterprise Program Management, Solution Architectures, and the Budgeting Process integrating into the overall EA Validation, Program & Measurement Process.

 

 

 

4.2     Enterprise Architecture Program

4.2.1        Using Business Behaviour instead of Business Processes as part of the EA Framework

Most EA frameworks have business processes as an element of the enterprise architecture, when in fact a business process as an organizational entity typically has more to do with the decomposition of functions, or the needs of structuring the organisation, then it has to do with modern enterprise architecture. Using business processes as an organizing entity in enterprise architecture will most likely lead to inflexibility and fixed structures. Do you recognise the quick implementation of fixed inflexible business processes in ERP systems. It’s like a foundation of reinforced concrete.So instead of addressing traditional well described business processes it is better to focus on what is called business behaviour when dealing with enterprise architecture.

4.2.1.1                   Business Behaviour [4]

Business behaviour (BB) is an ordering of tasks and/or activities that accomplish business goals and satisfy business commitments. It may include manual or automated operations that complete units of work.

Behaviour manipulates various resources in the business in order to produce the desired result, and resources of all kinds enable it.

Business behaviour is quite recursive, although various reasons and methods for imposing specific structure on aspects of business behaviour can be discussed.

 

 

4.2.2        Using Solution Sets [5] instead of Information Systems itself as part of the E2A Framework

Using information-systems itself as an organizing entity in enterprise architecture will most likely lead to misalignment. The aspect area of Information-Systems Architecture is useful; however don’t refer to applications itself rather then to solution sets that can be supported by information-systems.

As illustrated next, a properly described solution-driven approach, which abstracts from the business behaviour design the function and feature requirements for this behaviour into “solution sets”. This will result in much better alignment and will reduce inefficiencies from gaps and overlaps that result from a more typical application centric approach.

 

4.2.2 Using Solution Sets instead of Information Systems itself as part of the E2A Framework

A Solution Set contains a description of the common required functions and features required by the tasks / activities of different business areas it supports.  Translating those functions and features into IS solution areas and IS services / applications determine gaps and overlaps within existing or future products, will help the organisation in defining the best IT solution support.

4.2.3        Traceability and Alignment

A successful Enterprise Architecture provides a mechanism for mapping business drivers to significant architectural solution areas that make up the overall enterprise model of the future state.  That mapping should eliminate any ambiguity that exists about the reason for implementing that solution.  The alignment also will provide the basic construct for building the business case for the solutions justification.  Building the business case for an architectural solution area requires that that solution can be mapped to a business or organizational driver, and that its benefits, cost, risks, and interdependencies can be quantified. 

4.2.4   Enterprise Architecture Framework Solutions decomposition

A business solution set is a part of the overall framework that is significant enough in itself to be considered from a design, costing or implementation standpoint. Decomposing the enterprise architecture into business solutions is key to enabling the analysis process.  It allows for multidiscipline teams to iteratively work together creating an enterprise view, while at the same time, dispersing into discipline specific teams performing detailed analysis and validation.

4.3     EA Measurement Process

4.3.1  Value Net [6] Based Assessment

Interrelationship among the solution sets can be maintained using cross-reference models, tables and matrices.  Those matrices must properly allocate the benefit, cost and risk contributions of each enterprise architectural solution.

The logical way of doing this is to organize the various disciplined business or EA solution sets in conformance with their position in the value net.

4.3.2   Measurement and Valuation

Each enterprise architectural solution sets must include metrics for evaluating its contribution and cost to the overall enterprise value net.   Both quantitative and qualitative benefits and cost metrics can be captured for each discrete solution or product and their contributions to the value net allocated. 

In the next example, IS Services / application costs are allocated at both the Solution Set level and at the Task / Activity level.  Cost would be allocated at a Task / Activity level when those Task / Activities have serious cost impacts on there own, and need to be evaluated separately.   

4.3.3  Enterprise Architectures: Normalized Solutions

An Enterprise Architecture that uses solution sets and normalization to analyze business needs and IT opportunities allows the development of a neutral cost / risk analysis.   This cost / risk analysis allows you to understand how brittle or adaptive your chosen transformation will be. 

4.3.4        Effective Deployment via Enterprise Program Management

A major predictor of the extent to which enterprise architecture influences the actual business & IT asset base is the quality of the transformation plan.  The plan factors in the competing forces impacting transformation, which typically include:
1. Potential ROI;
2. New opportunities provided by recently developed technology enablers;
3. Organizational and budgetary constraints;
4. The need to amortize existing and ongoing business & IT investments;
5. Maturity of the organisation and the capabilities of the people;
6. Maturity of technological alternatives and other implementation related risk factors.

4.3.5        Non-Prescriptive Objectivity

Many of the Enterprise Architecture Frameworks that are gaining currency today very much resemble the early phases, and, in some cases, the later phases, of a software development life cycle.  This leads to a fair amount of unnecessary work and a loss of focus, as the level of specificity goes way beyond what is required at the Enterprise Architecture level. 

4.3.6        Expected results from an Enterprise Architecture Program

The ultimate operational goal of any organization is to optimise the alignment of their customer & partner needs, business strategy, organizational culture, business, people, processes and technology.   This optimisation, not only provides for efficient and cost effective performance, but also helps ensure proper execution of the defined organizational goals and objectives. 

4.3.7  Enterprise Architecture Program Maturity Model [7]

The table below provides a maturity model for the implementation of the Enterprise Architecture Program that can help organisations to identify the level off roll out of their Enterprise Architecture program.

5        Today’s Practice

Both industry and government all over the world have recognized the special value of Enterprise Architecture.

Industry has been motivated by the simple reality that they need Enterprise Architectures to remain competitive and support business continuity as they consolidate their long spending efforts on disparate IT resources.

While this is a positive move, a fundamental problem remains. In the rush to implement Enterprise Architectures, most current frameworks and methods are in need of updating to address today's realities.

The virtual plethora of options and overlapping products and standards, and the focus on package integration, create a much more complex environment then the environment that most of these frameworks and processes were designed to address. Most frameworks are focused on providing detailed modelling of systems and activities that are only moderately relevant at the enterprise level. Many of these descriptive models and frameworks have their pedigree in the systems engineering arena, and so much of what is prescribed is more suitably addressed in either domain specific solution architectures or software design efforts.

This level of detail in the Enterprise Architecting effort can be a significant impediment to engaging the stakeholders effectively in the enterprise architecture team.

Finally, while most Enterprise Architecture frameworks and processes do a fairly good job at providing a means for describing current and future state enterprise architectures, and typically prescribe significant participation from key stakeholders in the effort, they do not effectively address the enterprise value net, alignment, traceability, performance measurement and the need for extended enterprise architectures that are actionable.

6                 References & Bibliography

1. 'Maturity model for the implementation of Enterprise Architecture Activities', Schekkerman Jaap, Published IFEAD, 2004.
2. Antoine de Saint-Exupery; http://www.thinkexist.com/English/Author/x/Author_1147_3.htm
3. IFEAD, Enterprise Architecture Survey 2003, http://www.enterprise-architecture.info
4. Gartner Inc.; http://www3.gartner.com/Init
5. The Open Group; http://www.opengroup.org/
6. Book 'How to survive in the jungle of Enterprise Architecture Frameworks'; Schekkerman Jaap, will be published November 2003.
7. 'Good is good enough' see ref. 2
8. 'A Standard for Business Architecture description' McDavid D.W., published in IBM Systems Journal 1999.
9. 'Solution Sets'; White Paper, Interoperability Clearing House, USA, 2002.
10. Book 'Architectuur, besturingssysteem voor adaptieve organisaties' Rijsenbrij, Schekkerman, Hendrick, Publisher Lemma, 2002.
11. Refined and combined version of the Meta Group "Enterprise Process Maturity Model"