Business Architecture Is The Foundation For EA – Join Our BA Research Team

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Awkward title, I know. But this blog is about two related points. 

Forrester has long believed that business and technology have become inseparable. The Business Technology organization that embraces this reality is replacing the Information Technology organization that thought of itself as separate from business.  

Enterprise architecture is also shifting — from a technology and application-centered function (“IT architecture”) where the business was simply a source of requirements to a business-focused, strategic, and pragmatic discipline broader than the team called EA. We see signs of this shift everywhere — just look at the winners of the 2011 InfoWorld/Forrester Enterprise Architecture Awards. 

As part of this shift, business architecture has become the foundation of enterprise architecture — making possible strategy, planning, and change management of the fused business+technology reality of today’s enterprises. Forrester’s Enterprise Architecture research focus is to help our clients make this shift, providing them with best and next practices ranging from removing barriers between business and architecture, to creating frameworks and models that provide insight and drive decisions, to measuring and communicating benefits.

Which is where the second part of this post – and potentially you who are reading this – come in. We are expanding our business architecture research team to deepen depth, utility, and value to our clients. 

If you:

  • Are “business first and center” in how you think,
  • Have your own ideas and want to refine them as part of a team to create a body of research more impactful than any single analyst can create,
  • Want to engage with clients both to advise them and to learn from them,
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The State Of Enterprise Architecture In 2011

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To paraphrase a now-marginalized US political figure: “How you’all doing?”

Every year, Forrester’s Enterprise Architecture team looks at how enterprise architecture, as a practice and a function within business, is doing. We look at everything from how firms organize their EA programs, to where they are getting their support from, what roles exist within the EA team, completeness of architecture and the degree of standardization, expected technology change, and priorities and challenges. We ask the same questions year over year to discern any trends.

On December 9, we’ll be presenting the results of the 2011 State of Enterprise Architecture survey, compiling the inputs from 543 firms across North America, Europe, and Asia/PAC. (Note: this teleconference is for Forrester clients. A separate teleconference will be offered for non-client respondents to this survey.) A wide variety of industries are represented: financial services, manufacturing, retail, business services, and public sector. A few highlights:

  • The structure of firms’ EA functions continues to shift – with both centralized and completely decentralized increasing. 
  • Architecture staffing continues its growth. The business architect role is one factor driving this growth. 
  • Awareness and support by the broader business and IT organization continue to climb – both by the CIO, other IT functions, and by line of business management. 
  • Drivers for EA show a significant shift – with “improving business agility” rising to the top. 
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Announcing The Winners Of The 2011 InfoWorld/Forrester Enterprise Architecture Awards

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Enterprise Architecture is a challenged role in IT. While more than 50% of all IT shops – and all large IT shops (greater than $100M budget) – have an EA practice in some form, most EA teams struggle with defining a mission that is relevant to their business and executing on this mission to produce the benefits their business needs. This struggle leads to frequent re-organizations, struggles for credibility and influence, and often an EA focus on the low-hanging fruit of technology standardization. 

But this is changing. 

Last year, Forrester teamed up with InfoWorld to select five EA programs that were having a measurable impact on their businesses. Our purpose for this awards program was to spotlight highly effective programs that embodied practices that we could all learn from. We found EA programs that were producing results ranging from saving millions of dollars per year in IT expenditures, to guiding IT transformation into business partners, to guiding business planning. 

Today we announced the winners of the 2011 InfoWorld/Forrester Enterprise Architecture Awards. We set out to identify five leading organizations, just like we did last year. But our practitioner judges – last year’s winners – decided that due to the quality of so many submissions, they had to identify six:

  • American Express, for how it uses reference architecture and technologies road maps;
  • Bayer HealthCare, for how it approaches EA management in a complex organization;
  • First Data Corporation, for its buildout of a global EA function to drive efficiency, simplicity, cost effectiveness, and agility;
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Mastering Customer Data: The Next EA Opportunity – And Challenge

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Several recent Forrester reports home in on what we call “The Age Of The Customer” in which firms must seek to become customer-obsessed to build differentiation and loyalty. Those firms that embrace this will ramp up investment in four priority areas: 1) real-time customer intelligence; 2) customer experience and customer service; 3) sales channels that deliver customer intelligence; and 4) useful content and interactive marketing. All these needs are technology-infused – wholly dependent on technology and in categories where technology is evolving rapidly. Underlying these investments is the need to master the flow of data about customers: capturing/collecting data about them, analyzing it, distributing to those points of engagement, and, finally, integrating the insights into the customer experience. 

Companies can’t succeed at doing this without a close partnership between the business areas leading the charge and IT. The rate of change of your customers, markets, business opportunities, and technology is simply too fast. Forrester is exploring this theme in our first CIO/CMO joint forum

The reality, though, is companies flounder at this marketing-IT partnership. They flounder because of:

  • More ideas than capacity. A plethora of desired initiatives are constantly being surfaced – beyond the limits of available budget and with no mechanism to sort them into an achievable plan that IT can deliver on.   
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Follow The Conversation From Forrester's IT Forum 2011

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Today we’re kicking off Forrester's IT Forum 2011 at The Palazzo in Las Vegas. Prepare for three exciting days of keynote presentations and track sessions focused on business and technology alignment. Use the Twitter widget below to follow the Forum conversation by tracking our event hashtag #ITF11 on Twitter. Attendees are encouraged to tweet throughout the Forum and to tweet any questions for our keynote presenters to #ITF11.

Is Your EA Program Making A Difference?

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Several recent reports on Forrester.com start with the sentence: "EA organizations often toil out of the limelight . . . " There are fewer and fewer reasons why this should be the case. 

InfoWorld Enterprise Architecture AwardWe hear fewer stories of EA teams as purely "the standards police" or with "their heads in the clouds, not producing anything useful." We hear more and more stories of EA teams changing how business and IT plan, taking the lead in application simplification and rationalization, or being the broker for innovation. Infoworld and Forrester want to recognize these success stories with the 2011 Enterprise Architecture Award.

Our 2010 Award winners show the range of ways EA teams are making a difference:

  • Discover Financial created an EA repository that aggregates information from its Service Catalog, Fixed Asset, PPM, and Business Goals to provide decision-making insights that saved more than $1M of avoided costs.
  • Aetna used its Business Capability Map to combine more than 30 business unit strategies and road maps, highlighting common opportunities and gaps that it then used for its annual planning.
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Architect Angst On Their Readiness For Empowered Business

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Forrester sees business empowerment — where business areas seek greater autonomy to address their own technology needs — as an inevitable trend. We’ve seen this before: New technology brings business areas new opportunities to improve their performance — from finance (PCs and spreadsheets) to marketing (web and eCommerce) to sales (PDAs). When this occurred, IT was unconnected to the frontlines of the business; IT’s technology was viewed as hard to use, and the result was business-initiated “shadow IT.”

At the recent Forrester Enterprise Architecture Forum in San Francisco, we offered attendees a copy of the new book Empowered, by Forrester analysts Josh Bernoff and Ted Schadler. To get a copy, attendees had to complete a two-question survey. The questions directly related to their readiness to support this round of business empowerment:

“On a scale of 1-5, where 1 = ‘This doesn’t sound like my company at all’ and 5 = ‘This sounds exactly like my company,’ please rate the following questions about your organization:

  1. The EA function has close ties with business management.
  2. Our technology strategy and standards allow for rapidly changing technologies.”
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Best Practices For Influencing Business? Tips For Revitalizing IT Standards? Join Our Community Discussions!

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Architects frequently tell us how much they value insights from practitioners like themselves. We at Forrester equally value these insights, as they are the foundation of our research. To serve you and us, we've launched The Forrester Community For Enterprise Architecture Professionals.

The community is open to all, whether you're a Forrester client or not. Check out the community, and you'll see conversations focused on the key challenges that you face – from influencing the thinking of your business execs to revitalizing an IT standards program to asking if application portfolio management (APM) is a responsibility of EA or the IT function supporting apps. Participating architects and Forrester analysts are sharing their perspectives – on these questions, plus other questions like the use of Wikis for architecture standards.

You can use these discussions to get better at your role – plus you'll be able to shape our research agenda by posting your questions or highlighting a topic you think demands further investigation. Our leading analysts – like Jeff Scott, Randy Heffner, Henry Peyret, Galen Schreck, and Gene Leganza – will also post the topics they are working on to get your input on them. 

Here's what you’ll find in The Forrester Community For Enterprise Architecture Professionals:

  • A simple platform on which you can pose your questions and get advice from peers who face the same business challenges.
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Forrester EA Forum Keynotes Map EA’s Shift From IT To Business

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When I started as an architect, I was part of the team called “IT Architecture.” It was clear what we did and who we did it for – we standardized technology and designs so that IT would be more reliable, deliver business solutions more quickly, and cost less. We were an IT-centric function. Then the term “Enterprise Architecture” came in – and spurred debates as to “isn’t EA about the business?,” “what’s the right scope for EA?,” and “should EA report to the CEO?” We debated it, published books and blogs about it – but it didn’t change what most architects did; they did some flavor of IT Architecture.

Meanwhile, the interplay of business and technology changed . . . Technology became embedded and central to business results, and business leaders became technology advocates. The locus of technology innovation moved from the “heavy lifting” of core system implementations to the edges of the business, where business staff see opportunities and demand more autonomy to seize them. For enterprise architects, this means that regardless of what EA has been, in the future it must become a business-focused and embedded discipline. Mapping this shift is a key theme of Forrester’s Enterprise Architecture Forum 2011

Gene Leganza, who will be presenting the opening keynote “EA In The Year 2020: Strategic Nexus Or Oblivion?,” states it this way:

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Business Technology 2020 – Questions And Answers

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What will business and technology be like in 2020 – and what’s IT’s place in this new world? This is the subject of a teleconference that James Staten and I held for our clients yesterday and also the subject of an upcoming Forrester report.

In this teleconference, we painted a picture of the impact of business-ready, self-service technology, a tech-savvy and self-sufficient workforce, and a business world in which today’s emerging economies dwarf the established ones, bringing a billion new consumers with a radically different view of products and services, as well as in which surging resource costs – especially energy costs – crush today’s global business models. 

In the past, when new waves of technology swept into our businesses – everything from the 1980s’ PCs to today’s empowered technologies – the reaction was the swinging pendulum of “decentralized/embedded IT” followed by “centralized/industrialized IT.” These tired old reactions won’t work in the world 2020. Instead, businesses must move to a model we call Empowered BT.

Empowered BT empowers business to pursue opportunities at the edge and the grassroots – but to balance this empowerment with enterprise concerns. Key to this balance is the interplay between four new “meta roles” – visionaries, consultants, integrators, and sustainability experts – combined with a new operating model based on guidelines, mentoring, and inspection. Also key is IT changing from a mindset in which it needs to control technology to one in which it embraces business ownership of technology decisions.

The teleconference chat window was busy as James and I presented our research. Here are the questions we weren’t able to answer due to time.

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