IT complexity hurts business. This is even more the case when a company has global markets and global operations. Essential business needs such as a single integrated view of global customers, or consistent product or service portfolio become impossible to achieve.
Managing IT complexity to support business strategy is a big challenge for enterprise architects at large companieswhen a company has global operations, as is the case for Telstra, an Asia-based telecommunications firm. However Telstra’s enterprise architecture (EA) team addressed its challenges by focusing on customer engagement, improved agility, and global business strategy enablement. Because of their success, they were one of the six firms to win the InfoWorld/Forrester Enterprise Architecture Award in 2012.
Build Capability Maps To Link Business Goals And Transformation Requirements. Business capability maps are a core tool that enterprise architects use to identify their organization’s strengths and gaps and support its business strategy. Architects should leverage industry standard frameworks like eTOM to build a custom map, overlay it with business goals, and use it to assess and prioritize needed changes.
The InfoWorld/Forrester Enterprise Architecture Awards recognize excellent EA programs — ones that due to their business focus, and strategic yet pragmatic orientation, provide sustained value to their business. I caught up with two of our 2012 winners to find out what they have been doing in the year since their award submission. I was specifically interested in hearing:
Have there been changes to business strategy or IT strategy since one year ago that they’ve had to respond to?
What would they say has been their greatest accomplishment over the past year?
The priorities for their EA programs today — changes in the scope, mission, or organization?
What would they say is a key learning of their EA program, or the larger IT organization about making EA effective?
As architects, we all know the importance of context. The right architecture for one context – say, an organically growing company – doesn’t work for a company growing by acquisition. The right technology strategy for a medium-size American company doesn’t work for a China-based one.
Well, the context for enterprise architecture itself is changing. We’ve got The Age Of The Customer forcing companies to transform outside-in. We have what is called technology consumerization – our business users have access to ever more powerful technology solutions independent of IT. We have digital-fueled business disruption, as described in James McQuivey’s book, Digital Disruption. And all this is driving the demand for greater business agility – the ability to quickly sense and adeptly respond to new opportunities and threats in their context.
What a great opportunity for enterprise architecture programs! But this is only possible if they shift from a focus on cost to a focus on opportunity, change from controlling to enabling technology, and adapt their practices to the need for quickness with “just enough insight.”
In Forrester’s EA Practice Playbook, we describe high-performance enterprise architecture programs as “business-focused, strategic, and pragmatic.” They are business-focused so that the direction and guidance EA provides has clear business relevance and value. They are strategic because the greatest value EA brings is to help its business to achieve its business strategies. They are pragmatic because, well, the path to strategy is never straight, and EA teams who aren’t agile in their approach get pushed aside.
National Grid, facing the enormous changes to the utility industry, developed an enterprisewide business capability model and made that the center of their joint business-IS planning. The result? All the way up to the C-level, EA is being recognized as a strategic change agent.
Scottish Widows Investment Partnership “reinvented” their EA program, centered on a business capability model developed over four weeks, and used to organize and link all the EA portfolios. They now have business managers as well as EA using their architecture planning tool.