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Sandvik Materials Technology Enterprise Architecture (SIE)
Cecilia Persson & Stefan Eriksson
EA 4B Presentation for Open Group 2011-11-09
Lean Business Development
Managing the Business Architecture through Business Capabilities
Sandvik Materials Technology Enterprise Architecture (SIE)
Who are we?
Cecilia Persson From the public sector in Stockholm to
Sandvik 2007 Working with EA at SMT since 2010 Responsible for Methods & Processes
Stefan Eriksson
From pulp & paper industri to Sandvik 2007 Working with EA at SMT since 2009 Responsible for Enterprise Information
Architecture
Sandvik Materials Technology Enterprise Architecture (SIE)
Order intake Invoiced sales Return on capital employed Operating margin Sandvik 61% ownership in Seco Tools
Proportion of shares outside Sweden Investments in property, plant and equipment No. of production units worldwide No. of employees, 31 Dec 2009
SEK 71,285 M SEK 71,937 M
-1.3% -2.0%
33% SEK 4,625 M
137 44,355
Sandvik Group 2009
SANDVIK TOOLING SANDVIK MINING AND CONSTRUCTION SANDVIK MATERIALS TECHNOLOGY
19,078 MSEK 15,328 MSEK 32,621 MSEK
Sandvik – Global leader
Sandvik Materials Technology Enterprise Architecture (SIE) page 4
Future Operational structure
Sandvik Materials Technology
Sandvik Machining Solutions
Sandvik Mining
Sandvik Construction
Sandvik Venture
Finance, Indirect purchasing, HR, IT, Communication
Group Executive Management Group and Support Functions
page 4
Tube Strip Wire and Heating Technology Primary Products
Sandvik Coromant Walter Safety
Underground Mining Surface Mining
Construction Process Systems Parts of Med Tech* Hard Materials Diamond Innovations Wolfram Dormer
* To be divested
Sandvik Materials Technology Enterprise Architecture (SIE)
Enterprise Architecture Delivered Value
The Essence of Enterprise Architecture EA should
Embrace All and Engage All within the company.
In order to Ensure Alignment
and Enable Agility.
Sandvik Materials Technology Enterprise Architecture (SIE)
Enterprise Solution Architecture (ESA): automated processes Solutions, services, information stores and integrations. Services /Solutions enabling business capabilities into IT support. Combines artifacts in the other three viewpoints. Enterprise Technical Architecture (ETA): the technical infrastructure on which IT solutions are provided (servers, network, operating systems, DBMS, middleware, directories, etc).
page 6
Enterprise Architecture Perspectives
Enterprise Business Architecture (EBA): business principles, organizational structures, business events, capabilities and processes. Enterprise Information Architecture (EIA): definition of business information entities such as Customer and Product, their attributes, identifiers and relations. Their flow between capabilities; ontologies and taxonomies; terminologies.
Sandvik Materials Technology Enterprise Architecture (SIE)
HOW ARE THE ARTIFACTS WITHIN THE COMPANY RELATED?
Sandvik Materials Technology Enterprise Architecture (SIE) page 8
Business Strategy
KPI
Organization
Regulates
Automated in
Enabled by
Measures Refined in Executes
Owned by
Manage Performance
Implemented in
Business Capability
Information
Process
System
Business Objective
Directs
Defines
Define expected Business Value
Carrying Business Value
Deliver Business Value
Measure delivered Business Value
Sandvik Materials Technology Enterprise Architecture (SIE) page 10
Business Capability – “The What’s”
Provide a stable point of reference for business functions and processes Partition business architecture into manageable parts that can be
understood by both business and IT people Identify candidates for harmonization and/or outsourcing
Create a better understanding of how the Company generates value Enable technology neutral discussions of the business’ need for IT
support Identify redundancies in organizations, processes and applications Point out dependencies between projects/initiatives Enable prioritization between and within projects
Sandvik Materials Technology Enterprise Architecture (SIE)
Cross references
Business rules
Responsibility
Information quality
Knowledge
Path of least resistance for individual integrations
Project driven Integration
Sandvik Materials Technology Enterprise Architecture (SIE)
Situation
Demand
Supply
SU SU SU SU SU
PU PU PU PU PU
Sandvik Materials Technology Enterprise Architecture (SIE)
Enterprise Information Management - Areas of Enterprise Information & Common capabilities
Business Events
Transactional Information • Orders • Invoices • Etc
Business Structure
Structure Information • Customer • Product • Asset • Country • Currency • Etc
Business Decisions
Performance Management Information • KPI´s • Measures
Information Presentation • Reports • Decision Support • Data Warehouse • Etc
Unstructured Business
Information
User created Business Information • Content • Search • Portal/Web • Collaboration • Business Forms
Manage Information Lifecycle, Metadata and Quality
Manage Information Security (SICS)
Manage & Monitor Information Logistics
Information Architecture
page 15
Manage Technologies & Domains
Sandvik Materials Technology Enterprise Architecture (SIE)
Enterprise Information Management - Structure
page 16
• What values to deliver Vision & Strategy
• Who decides what Governance
• What to do Capabilities
• How to ensure value delivery • Who performs it Organization
• Delivery of solutions, tools & technologies Infrastructure
Sandvik Materials Technology Enterprise Architecture (SIE)
SMT Enterprise Information Architecture Framework
Physical Data Model
Logical Information Model
Business Information Model
Business Information Landscape
Business Capability
KPI
System
Contract / Integration
Business Objective
Organization
Bu
sin
ess
IT
Sandvik Materials Technology Enterprise Architecture (SIE)
Thinking Behind
Look at Information as a product of a Business Process.
A role of IT (CIO-Office) is to ensure that SMT Business has the information required, to perform their assigned task and deliver the expected value in the most efficient way.
Information Exchange (Integration) is therefore a central component in our IT-Strategy. We call it Information Logistics.
Sandvik Materials Technology Enterprise Architecture (SIE)
Target Picture
Demand
Supply
SU SU SU SU SU
PU PU PU PU PU
Common agreed Information
Sandvik Materials Technology Enterprise Architecture (SIE)
Internal data representation Message sequence Guaranteed delivery Dead letter
Content enricher Security Message router Resequencer
Aggregator Channel adapter Pub/Sub Content filter
Envelope Validation Transport/MEP transformation
Content transformation Common format Message filter
Produce Deliver Consume
Structured error handling
Sandvik Materials Technology Enterprise Architecture (SIE)
Produce Deliver Consume
Structured error handling
Business Process & System Responsibility
Central Governance Business Process & System Responsibility
Sandvik Materials Technology Enterprise Architecture (SIE)
SMT EIM Framework
EIM VISION & STRATEGY
Vision
Mission
Strategy
Goals & Objectives
Value Proposition
EIM GOVERNANCE
Sponsorship
Ownership
Principles & Guidelines
Alignment
Governance Structure & Processes
EIM CAPABILITIES
Manage Business Event
Manage Business Structure
Manage Business Decision
Manage Unstructured
Business Information
Manage Common EIM Capabilities
EIM ORGANIZATION
KPI´s & Measures
Operating Structure & Processes
Roles & Responsibilities
Functional Services
EIM INFRASTRUCTURE
Enterprise Technology Framework
page 22
Sandvik Materials Technology Enterprise Architecture (SIE) page 23
IMPROVING PROCESSES OR THE BUSINESS?
Sandvik Materials Technology Enterprise Architecture (SIE) page 24
Business Strategy
KPI
Organization
Regulates
Automated in
Enabled by
Measures Refined in Executes
Owned by
Manage Performance
Implemented in
Business Capability
Information
Process
System
Business Objective
Directs
Defines
Sandvik Materials Technology Enterprise Architecture (SIE) page 26
Business Strategy
KPI
Organization
Regulates
Automated in
Enabled by
Measures Refined in Executes
Owned by
Manage Performance
Implemented in
Business Capability
Information
Process
System
Business Objective
Directs
Defines
Add new information Manage Information
Automate information creation
IT-Capabilities help improving?
HOW TO IMPROVE?
The way we source
Sandvik Materials Technology Enterprise Architecture (SIE)
KPI
Organization
Automated in
Enabled by
Measures Refined in Executes
Owned by
Implemented in
Business Capability
Information
Process
Automated Processes
(System)
Directs
Defines
Platforms Products
Domains IT Capabilities
Business Services
Improve delivered value Reduce human operation Decrease redundancies
(multiple implemenations)
Evaluate current products Adjust, add, reduce
Producs & Platforms
Reducing the amount of implementation and
Products, will effect skills, Competencies & head count
required.
Sandvik Materials Technology Enterprise Architecture (SIE) page 28
Business Strategy
KPI
Organization
Regulates
Automated in
Enabled by
Measures Refined in Executes
Owned by
Manage Performance
Implemented in
Business Capability
Information
Process
System
Business Objective
Directs
Defines
Sandvik Materials Technology Enterprise Architecture (SIE)
Enterprise Architecture for Business – EA4B –
External input and influences Business Capability framework • APQC Process Classification Framework • Microsoft Motion (business architecture methodology, part of Microsoft Consulting Service, Enterprise Strategy) • Deloitte Enterprise Value Map • ISA95 (International standard, process control)
Special Thanks to: Ric Merrifield Microsoft Integration standard • Open Applications Integration Specification, OAGIS
Modelling tools and techniques • ARIS platform • IRM (information modelling and process modelling)