Define an EA Operating Model

Define an EA Operating Model

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  Info-Tech Research Group1Info-Tech Research Group 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2017 Info-Tech Research Group Inc. Define an EA Operating Model Realize the benefits of EA by balancing the need for controls with the desire for business engagement. Info-Tech's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns.© 1997-2017 Info-Tech Research Group
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  Info-Tech Research Group2Info-Tech Research Group 2 Architecture groups often start practicing EA based on the path of least resistance, which often results in an inability to deliver on a set of promises of value. EA groups need to create an operating model that positions them to best deliver on those promises of value while embedding the architectural activities in the broader enterprise. Gopi Bheemavarapu, Director, CIO Advisory Info-Tech Research Group Structure the enterprise architecture (EA) function with the value proposition in mind. ANALYST PERSPECTIVE
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  Info-Tech Research Group3Info-Tech Research Group 3 This Research is Designed For: This Research Will Help You: This Research Will Assist: This Research Will Help You: This Research Is Designed For: This Research Will Help You: This Research Will Also Assist: This Research Will Help Them: Our understanding of the problem CIO Head of enterprise architecture Enterprise architects Domain architects – business, data, application, infrastructure, and security Operationalize the EA practice and ensure that the group is best positioned to deliver the value identified in the EA strategy. Integrate EA activities into the broader organizational ecosystem to maximize value. Develop an architectural framework tailored to your organizational needs. Right-size architecture governance that is aligned to organizational goals. Head of PMO Solution architects IT application owners Business process owners Outline their roles and understand the expectations within the larger EA function. Establish how the EA group will interact with the rest of the organization.
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  Info-Tech Research Group4Info-Tech Research Group 4 Resolution Situation Complication Executive summary • Organizations have invested significant resources into EA programs that promise decreased costs, reduced complexity, or increased agility. • To achieve the promised benefits, EA serves as a centralized decision- making entity, with a holistic perspective of the organization. • EA tends to rely heavily on frameworks such as TOGAF and Zachman. • EA makes enterprise-affecting decisions in isolation as a result of an inability to effectively engage organizational stakeholders. • Even after deciding what services to provide, EA groups lack a right- sized methodology to complete the necessary activities. • An overreliance on frameworks makes it more difficult for EA to adapt and be flexible to organizational changes. • EA program placement and structure matters. Ensure that it is best positioned to deliver enterprise value. • Create an engagement model to seamlessly integrate or embed EA activities into organizational processes. • Adopt a governance approach that encourages collaboration without being overly intrusive. • Configure an architecture development framework that works best for your organization while adapting the best practices and industry frameworks. • Increase your chances of success by creating a practical operational plan. Get your EA program strategy right before making operational process changes. The benefits of an EA program are only realized when the various operating model components enable the goals and objectives of the program. • Create a balance between governance and motivational aspects when addressing structure and stakeholder relations. • Beginning the project based on a framework is a good starting point, but it must be tailored to your organizational context.
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  Info-Tech Research Group5Info-Tech Research Group 5 Business strategy first, EA strategy second, and EA operating model third Business Strategy EA Strategy EA Operating Model “Why does our enterprise exist in the market?” “What does EA need to be and do to support the enterprise’s ability to meet its goals? What is EA’s value proposition?” “How does EA need to operate on a daily basis to deliver the value proposition?”
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  Info-Tech Research Group6Info-Tech Research Group 6 Key challenges that organizations face in improving EA maturity Source: Burns, 2009 An effective EA operating model addresses these common challenges and unlocks the full potential of EA. 40% 40% 24% 18% 7% Strategic Alignment Staff Competence Performance Measurement Organization Structure Formal Process Percentage of organizations that report said element as an issue.
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  Info-Tech Research Group7Info-Tech Research Group 7 Both business and EA operating models seek to address how the entities achieve their set goals Business Operating Model “How do we compete?” “How do we add value?” “How do we interact?” EA Operating Model “How do we position our EA function?” “How do we organize and staff EA?” “How do we interact with the organization?” “How do we ensure awareness of and adherence to architectural standards?” “How do we deliver EA services?”
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  Info-Tech Research Group8Info-Tech Research Group 8 Elements of an EA operating model EA Function Design • Placement of the EA function relative to the rest of the organization. • Roles and responsibilities needed to deliver EA services. • The staff to fill those roles and their needed competencies. • Assess current governing bodies and identify points for architecture governance (architecture review boards). • Define EA policy and the architectural review process. • Integration of EA processes into existing organizational processes. • Identify and define stakeholder interactions. • Tailor an architecture development process to your organizational context. • Analyze and select a minimum-viable set of architectural views that guide decision making. • Draft a communication plan to engage with stakeholders. • Create a change management plan to efficiently operationalize the EA operating model. EA Engagement Model Architectural Development Framework Architectural Governance Operational Plan
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  Info-Tech Research Group9Info-Tech Research Group 9 Situation Life Inc., a major insurance company in North America, was looking to overhaul its business processes and modernize IT assets. The CIO gave the mandate to a senior IT leader (Head of EA) to set up an EA program and lead the transformation effort. Complication The organization had two previous failed attempts at starting an EA program because the guidance provided was top-down heavy and did not take into consideration practicalities. As a result, there was skepticism over the merit of the initiative. Furthermore, the previous attempts were mostly focused on technology transformation and were missing the business perspective. The organization did not have the internal skillsets to start a business-focused EA program. Resolution Info-Tech worked with the organization to build an EA operating model that included business architecture and provided a platform to engage both business and technology stakeholders. Skill gaps were identified and talent was recruited to plan the business transformation. Since the operating model was built to be well grounded and tailored to the organization, the engagement levels were high, which resulted in a successful transformation. The EA operating model covers the following components: CASE STUDY Industry Source Insurance Info-Tech Component falls into the scope of the case study Legend EA organization structure EA engagement model EA governance Architecture development framework Operational plan An insurance company created an operating model to kick- start a successful EA function
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  Info-Tech Research Group10Info-Tech Research Group 10 Metrics will help you connect changes to the operating model to business outcomes Business Performance • Increase the number of EA-enabled innovations that led to common shared solutions by X in the fiscal year. • Increase the number of business processes (or business capabilities) that utilize EA- enabled services in the fiscal year. IT Performance • Increase the percentage of enterprise strategic goals and requirements supported by IT strategic goals by X percent in the fiscal year. • Raise the satisfaction levels of business and IT executives with IT-related costs and capabilities by X percent. Reduced Risk • Improve the rate of timely publishing for new regulations that are reliant on EA services. • Decrease the number of overdue regulatory filings that are reliant on EA services by X. Customer • Decrease the average customer wait time when receiving replies on EA services by X (could be call wait time or in-person wait time). • Decrease the average handling time and average wrap-up time for EA service requests by X (could apply to customer service time or sales cycle time). Metrics adapted from COBIT 5: A Business Framework for the Governance and Management of Enterprise IT
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  Info-Tech Research Group11Info-Tech Research Group 11 Additional operational metrics will help you track the changes to individual operating model elements Process • Increase the dollar value of project benefits realized that can be traced back to EA involvement. • Increase satisfaction with architecture program by X percent. Organizational Structure • Number of people trained in the EA methodology and tool set. • Percent of staff whose architecture skills are sufficient for the competencies required for their role. Governance • Decrease the number of exceptions to architecture standards and baselines applications by X percent in the next three years. • Number of identified gaps in models across architectural domains. Metrics adapted from COBIT 5: A Business Framework for the Governance and Management of Enterprise IT
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