Remember our discussions about business service configuration ?

1. Remember our discussions about business service configuration ? Your Mobile Phone’s Service Architectural Components Your Mobile Phone’s Bundled Services Call Centre Services Apps Software Services Reseller Services ICT Network Services Your Service Oriented Mobile Phone Product Phone Supply Services EgSayTelstra EA Specs for its Mobile Phone 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 EA Specs of other Product Lines

2. Understanding EA Value starts with understanding What is IT Generated Value? • IT as an Resource Value is: • Featured in its • Hardware • Software • Supported business processes • People skills • Measured by productivity, on-time & quality indicators The interaction of IT & Bus creates business value, which: Is of an economic and/or strategic nature; Has different facets, depending on business priorities; Can be measured using different metrics (KPI + measures) relevant to the appropriate business contexts; Are created via projects of BUs ICT Business Activities 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

3. EA Value translation into Business Value EA = Strategy + Business + Technology ICT Business Activities EA creates sustainable Business Value when its compliance ensures: ICT resources are used efficaciously in strategic and improvement projects  contributing to competitive business service affordability & quality ICT enabled services are configured and sustained in the provisioning of business services to create & sustain strategic and/or operating value

4. 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

5. 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: Giving clarity in projects of what business value their development of ICT enabled business services can bring to contribute to strategic & business operating goals It improves strategy planning because it aligns strategy with business and technology development and operating capabilities It improves decision making by clarifying what is involved in configuring and using resources to create value adding ICT enabled business services It improves communication by having a common and shareable documentation approach and artefacts to convey & change service configurations for strategic and improvement reasons

6. KPI is a metric system for qualifying or quantifying resource and business value Corporate Strategy  Core Competency Service Corporate level Technology Strategy  Service Business Strategy  Service ICT Level Business Level Objective Eg Strategic objective is create cost advantage in regions A, B, C Measures 1..n is measured by 1..n Key Performance Indicator (KPI) • Eg Financial indicators can include: • Different types of costs • Different financial ratios Sub-classifies Quantifies/qualifies 1..n Is quantified/qualified 1..n Measure • 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

7. Example of KPI + Measures Source: http://www.dpcd.vic.gov.au/__data/assets/pdf_file/0009/206694/LGPRF-Indicator-Workbook-Version-3.1.pdf

8. Example: Business Value created by use of EA • Case Study – Project that aligns the ICT of USA federal, state & local governments. • The cost-benefit analysis findings (business value): • Financial Cost Savings • Service Provisioning Improvements • Lesser Duplications & Waste • Higher economic growth building capacities • Consistent community services independent of political changes Source: http://davidfrico.com/rico07a-s.pdf

9. Example: Business Value created by use of EA Same Case Study – More in-depth analysis of cost savings by each USA state Source: http://davidfrico.com/rico07a-s.pdf

10. EA Risks Financial risks: cost too much to build & maintain EA capacity Lack of Acceptance by Power Brokers Lack of Key EA Personnel Project Delays  additional EA development & compliance 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/

11. Risk Management Example of a typical Risk Management Process Model Source: https://ppl.app.uq.edu.au/content/1.80.01-enterprise-risk-management Risks Prevention Risks Mitigation Risks Recovery

12. 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 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 Over achieves Above KPI Aims for Objective Target KPI Risk Occurrence results in KPI variances & other unforseen effects Below KPI Under achieves Risk Assessment: ID the uncertainty causes of KPI variances & other dangers Measures the impacts of risks ID the appropriate risk prevention, mitigation (containment) and recovery strategies

13. Cost Drivers of EA In Projects Setup + Compliance + UPDATE EA Staffing & Consultant Costs EA Activity Costs EA Equipment/Tools’ Costs Involvement of other Stakeholders – the costs of their time, resource provided, etc Cost Drivers can be potential Cost Risks – How?

14. Strategy Planning 101 Global strategies Regional strategies Multi-domestic strategies The Devil is in the details 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

15. EA in the Alignment of Strategy, Business & Technology Corporate  BU  Market strategy plans Target Market Share Outcomes Strategic Requirements Evaluates Outcome Variances to identify causes in resource/service quality & configuration Ensures business requirements are captured and modelled appropriately to guide ICT project & operations work & outcomes Ensures Strategy influence business & ICT decisions, changes & project scope & outcomes Realised Business Results Product & Service Lines Product & Service Configurations

16. 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

17. Case Study Analysis What is the potential value of DMC EA proposal? What are the possible risks in the DMC EA proposal? How can EA can help develop views of this business’s strategic direction and goals; business services and supporting resources?

18. Q8 Do you agree with the need for an EA program in the case study? Sales & Inventory Tracking System (SITS) – ~2 years RoI, $3mio++ • Integrate info across • Sales • Inventory • Production Capacity to compete with competitor Mitigate production inefficiency Kate Jarvis (COO) Rob Danforth(CEO) Gerald Montes (Chief Council) Decision Options: Buy 1, Buy 2? Improve cost management Scene 1 Cost Accounting Module WELLCO ERP System 18 months RoI, <$600K Jim Gorman (CFO) Sam Young (CIO)

19. EA will align each current & future departments, increase cost savings into the future, BUT will cost additionally $121,600 & 2 months ...... Lily Jefferson System Analyst 3 Discuss the merits and limitations of the CIO’s (Sam) EA Plan for Financial and Production Segments? What is the value in terms of cost savings & scalability of solution? Vince The Albright Infer DMC’s Strategic Goals Eg New Custom Order Line of Business for Next Year 1 What is DMC organisation culture? Architect 2 Can you describe DMC organisation structure? Analyse Kate & Jim’s System Requirements Scene 2 Sales & Production Department Finance Department

20. Given the mandate to develop 2 segments of DMC’s EA. First deliverable: business case & EA Dev project plan Produced Meeting Discussion Highlights 2 Critical Success Factors Inclusive stakeholder involvement Agreed EA Methodology DMC EA Plan: Financial & Production Segments Report EATeam 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 Scene 3 Meeting Outcomes: Agreed EA Methodology & EA Documentation Framework Next Meeting Goals: Understand how the 2 outcomes are used to document the current & future models of Jim + Kate’s business units/departments

21. Given the mandate to develop 2 segments of DMC’s EA. First deliverable: business case & EA dev project plan Produced • 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 DMC EA Plan: Financial & Production Segments Report EATeam • 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 Scene 3