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Transnet, South Africa

Enterprise Architecture Value Creation

Customer Success Story

Kevin Govender Group Chief Enterprise Architect

BUSINESS CONTEXT

Transnet is a public company, wholly owned by the Government of the Republic of South Africa and is the custodian of rail, ports and pipelines. We are responsible for enabling the competitiveness, growth and development of the South African economy through delivering reliable freight transport and handling services that satisfy customer demand. In order to achieve our mandate, mission and vision, the Company is structured to provide the transport services as set out below:

TRANSNET’S MANDATE, VISION AND MISSION

To assist in lowering the cost of doing business in South Africa and enabling economic growth through providing appropriate ports, rail and pipeline infrastructure and operations in a cost-effective and efficient manner.

Vision

Transnet will meet customer demand for reliable freight transport and handling services through: • Fully integrating and maximising the use of our unique set of assets • Continuously driving cost efficiencies • A demonstrated concern for sustainability in everything we do

To enable the competitiveness, growth and development of the South African economy by delivering reliable freight transport and handling services that satisfy customer demand.

“We deliver freight reliably.”

BUSINESS OBJECTIVES

The shareholder has become increasingly articulate in respect of its expectations of Transnet. In the Statement of

Strategic Intent issued by the Minister of Public Enterprises on 19 November 2012, the overarching objectives for the

Company, in the context of the national transport system objectives, are defined as follows:

UNDERSTANDING TRANSNET’S BUSINESS ENVIRONMENT

In order to achieve operational excellence the optimisation of the freight value chain is a business imperative. The rail and ports need to be integrated.

KEY BUSINESS CHALLENGES

1. Limited Integrated Planning, Scheduling and Forecasting

2. Disparate business processes across value chain

3. Limited visibility of the end-to-end value chain

4. Limited innovation due to high reliance and dependency on legacy business

applications and obsolete technology

5. Limited real-time information available for decision making

The key Business Challenges that we need to address:

Business challenges…

STRATEGIC BUSINESS IT ALIGNMENT

Transnet’s Market Demand

Strategy IT Strategy

Innovation Opportunities

Business Vision and Strategy

Applications Architecture

Technology Architecture

Enterprise Architecture

Security Architecture

Information Architecture

Integration Architecture

Integration Architecture

Future Business Requirements

Future Business Requirements

Corporate Plan

Innovation Research

Strategic Initiatives

Business Architecture

KEY ICT CHALLENGES

ICT’s aim is to enable Transnet’s objectives through collaborative thought leadership, with

strategic focus on:

Business interruptions arising from lack of availability of systems, applications or

databases

Changes in the regulatory environment (i.e. Protection of Personal Information (POPI

Act), and ensure conformance to the information management and compliance

requirements)

Limited innovation due to high reliance and dependency on legacy business applications

and obsolete technology

Limited real-time information available for decision making, hence management

decision-making capability not always occurring in a timely manner

ENTERPRISE ARCHITECTURE VISION

The key objective of Enterprise Architecture is to provide leadership and direction as

well as develops, maintains and leverages the Enterprise Architecture (EA) across the

organization to support the Transnet Strategy and focus on business outcomes.

The key objective of Enterprise Architecture is to translate Transnet’s vision and strategy

into effective business capabilities and services and to ensure the reliability,

interoperability and sustainability of business capability in accordance with the Transnet

Strategy.

Enterprise Architecture is important and the most common reasons are:

A recognition that EA processes and methodologies can be used to help the

business make better decisions and deliver strategic planning;

A desire to "align" or "integrate" IT and business initiatives and investments, and

A need to demonstrate business impact and value from EA efforts.

ENTERPRISE ARCHITECTURE OBJECTIVES

Agility - Rapid and controlled response to change, based on an understanding of evolving business needs, is critical to the Transnet’s ability to fulfill its mission under changing conditions.

Innovation - Creation of business value and the ability to respond to new and unforeseen challenges in new ways by leveraging new ideas, products, services, processes, work practices, and technologies.

Usability - An environment that provides technology transparency, intuitiveness and easy access which enables the users to focus on the creation of business value.

Cost Effectiveness - Maximise the business value of IT investments.

Risk Management - The ability to effectively conduct Transnets business operations in a manner that minimises the exposure of Transnet as well as provide a safe and secure environment to operate in.

Scalability – Ability to scale solutions using the existing design to cater for evolving business needs.

HIGH LEVEL ENTERPRISE ARCHITECTURE STRATEGY

Agility EA

Objectives Innovation

Roadmaps

EA

Domains

Usability Risk

Management Cost

Effectiveness

Applications Security Technology Data /

Information

Business

Drivers

Technology Innovation

Program Content

… …

… …

… …

Program Content

… …

… …

… …

Framework

Enterprise

Architecture

Ba

se

line

Environm

ent

Implementation

Drivers

EA Program

Gap Analysis

Business

Implementation Analysis

Metrics

Scalability

ENTERPRISE ARCHITECTURE FRAMEWORK

ENTERPRISE ARCHITECTURE MODEL

Recognized as a Leader in the EA Management Suites Market

RECOGNITION BY ANALYSTS

ARIS ENTERPRISE ARCHITECTURE TOOL

Market-leading software

Proven methodology

Leading practices

Integrate IT architecture and process management in a single repository

Create a uniform inventory of systems and technologies

Generate views of current and target Architecture

Ensure consistency and transparency in the documentation of your IT landscape

Reduce costs and complexity of your IT environment

Quickly document, analyze and monitor your current situation

Reduce the complexity of your IT environment

Understand the impact IT system changes have on your processes and organization

ENTERPRISE ARCHITECTURE USE CASES

IT Transformation

Definition and analysis of architecture scenarios, impact analysis, creation of roadmaps, timelines and building of

application portfolios.

IT Governance, Risk & Compliance

Impact analysis of technological risk on business, integration with

information architecture addresses corporate data security, insights into information security risks and threats.

IT Architecture Management

Application harmonization, technology standardization, IT

portfolio transparency, IT infrastructure consolidation.

BUSINESS BENEFITS

Align

Business IT

Achieve IT

Transparency

Improve IT Agility

Reduce IT

Improve Flexibility

&

Cost & Complexity

RESULTS

RESULTS – ENTRY MODEL

RESULTS – ORGANISATION STRUCTURE DIAGRAMS

RESULTS – ORGANISATION STRUCTURE DIAGRAMS

RESULTS – BUSINESS CAPABILITY

NETWORK DIAGRAMS

SERVER DIAGRAMS

ENTERPRISE ARCHITECTURE MODEL

KEY BENEFITS

Using ARIS Enterprise Architecture we adopted the standard framework, Open

Group Architecture Framework (TOGAF®)

Uniform inventory of systems, applications and technologies

Consistency and transparency in the documentation of our IT landscape

Generate views of current and target Architecture

Help manage complexity of our IT environment

SUMMARY

“EA is successful when it is actually

being used by the business and by IT to

make better decisions that impact

business value.” Betsy Burton, VP Distinguished Analyst, Gartner

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Thank You