Your Mobile Phone’s Bundled Services

Apps Software Services

ICT Network Services

Call Centre

Services

Reseller Services

Phone Supply

Services

Your Mobile Phone’s Service Architectural Components

Eg SayTelstra EA Specs for its Mobile Phone Product Lines

Remember our discussions about business service configuration ?

EA Specs of other Product Lines

There will be various EA of say Telstra’s products of its different Business Units, all collectively functioning to support some underlying strategic programs

Your Service Oriented Mobile PhoneProduct

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

EA Value translation into Business Value

EA = STRATEGY + BUSINESS + TECHNOLOGY

ICT Business Activities

EA creates sustainable Business Value when its compliance ensures:1. ICT resources are used efficaciously in strategic and improvement projects

contributing to competitive business service affordability & quality2. ICT enabled services are configured and sustained in the provisioning of

business services to create & sustain strategic and/or operating value

The Value of EA as an Enterprise Service Resource

EA Strategy Planning

EA as an in-house service needs to be used efficaciously:

• Its co$t of development & on-going maintenance must be affordable

• Its compliance in projects that create strategic advantage and/or operating improvements in business value must be effective, including easier & least time needed to comply & update if needed

The Value of EA as an Enterprise Service Resource

EA Strategy Planning

In strategy (and any other levels of) planning activities, EA provides a whole of organisational perspective of how IT can be infuse with other resources to configure value adding business service. EA does this by:1. Giving clarity in projects of what business value their development of ICT

enabled business services can bring to contribute to strategic & business operating goals

2. It improves strategy planning because it aligns strategy with business and technology development and operating capabilities

3. It improves decision making by clarifying what is involved in configuring and using resources to create value adding ICT enabled business services

4. It improves communication by having a common and shareable documentation approach and artefacts to convey & change service configurations for strategic and improvement reasons

KPI is a metric system for qualifying or quantifying resource and business value

Key Performance Indicator (KPI)

Measure

Objective

Corporate level

Business Level ICT Level

is measured by 1..n

Measures 1..n

Quantifies/qualifies 1..n

Is quantified/qualified 1..n

Sub-classifies

Corporate Strategy Core Competency Service

Business Strategy Service Technology Strategy Service

Eg Financial indicators can include:• Different types of costs• Different financial ratios

Eg Financial cost indicators can include:• Labour costs, which is measured annually

or quarterly or monthly in the currencies of regions/countries a firm operates in

Eg Strategic objective is create cost advantage in regions A, B, C

Example of KPI + Measures

Source: http://www.dpcd.vic.gov.au/__data/assets/pdf_file/0009/206694/LGPRF-Indicator-Workbook-Version-3.1.pdf

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 Risks

1. Financial risks: cost too much to build & maintain EA capacity

2. Lack of Acceptance by Power Brokers

3. Lack of Key EA Personnel

4. Project Delays additional EA development & compliance

5. EA Documentation complexity in maintaining synchronised current & future EA views

Source: http://eapad.dk/ea3-cube/book/section1/chapter-3-the-value-and-risk-of-creating-an-enterprise-architecture/

Risk Management

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

Risk Management

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

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?

Strategy Planning 101

Corporate Level Strategy Planning

Strategic BU Strategy Planning

Operating BUStrategy Planning

Core Competencies (Strategic Service)

Development Projects’ Plans

Business Service Improvement Projects’ Plans Strengthened by

higher operating efficacy

Delivered by strategic projects’

outcomes

The Devil is i

n the details

Global strategiesRegional strategiesMulti-domestic strategies

EA in the Alignment of Strategy, Business & Technology

Corporate BU Market strategy plans

Product & Service Lines

RealisedBusiness Results

Product & Service Configurations

Ensures Strategy influence business &

ICT decisions, changes & project scope &

outcomes

Ensures business requirements are

captured and modelled appropriately to guide ICT project & operations work

& outcomes

Strategic Requirements Target Market Share Outcomes

Evaluates Outcome

Variances to identify causes in resource/service

quality & configuration

An (over simplified) view of how corporate level strategy influences all other levels of strategy planning to value adding service development

Corporate Strategy Contexts

Must drive

Need to understand

which service configuration

design components & packaging

are strategically

& operationally value adding

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

2 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