Who Should Lead Strategic Investment Planning?

Alex Cullen

Mike Gilpin poses this question in the most recent post to his blog.  This question was sparked at Forrester’s Business Process & Application Delivery Forum during a conversation during the session “Using The Next Generation PMO To Promote Innovation.” What’s interesting is that the question came from an attendee -- presumably aligned with their firm’s PMO -- who said that in their firm, strategic investment planning is led by their enterprise architecture team, which is responsible for the strategic planning and business architecture processes. 

There are multiple ways to come up with the “best answer” to this question. Nigel Fenwick discusses the answer in terms of the CIO’s responsibility to own strategy development -- and the coordination of functions necessary to carry out strategy. I’d like to answer this from the perspective of “what does it take to have an effective strategic investment planning process?”, examining the value the EA function and the PMO can provide. 

My colleague Craig Symons, who is Forrester’s expert on IT governance, defines effective governance as ensuring the best answers to these questions:

Effective governance answers the "4 Ares"

 

 

 

What EA can provide

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Vote For Forrester's IT Forum 2011 Theme

Alex Cullen

Are you ready for Forrester's IT Forum 2011? Mark your calendars for May 25-27 in Las Vegas and June 8-10 in Barcelona — and help us design an event that is as relevant and productive for you as possible. We've come up with three potential draft themes and need your vote for the best IT Forum 2011 theme:

1. Unleash your empowered enterprise.

As technology becomes more accessible through mediums beyond IT's control, you have but one choice: Get proactive by empowering employees, or swim against the current. Successful BT leaders will react not by blocking access but by lending their expertise to increase the chances of technology success and empowering the users to solve customer and business problems. This year's IT Forum will provide a blueprint for reaping the benefits of your empowered organization — complete with case studies, methodologies, and step-by-step advice tailored to each IT role.

2. Capitalize on the intersection of business and technology.

IT leaders have long struggled to deliver business and technology alignment.  But alignment implies a waterfall process: decide on a business strategy, and then build your technology on that foundation. Today, our businesses move too fast for the traditional IT model. Instead, Business Technology leaders must join the leaders of their lines of business to create business and technology strategy simultaneously.  That means working with new business partners inside and outside your organization, operationalizing innovation through standards, and above all, saying, "yes, and..." instead of "yes, but..." This year, we'll dedicate IT Forum to building bridges to new business partners, scaling innovative solutions, and co-creating business and technology strategy.

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Some Specifics On Those Top 15 Tech Trends

Gene Leganza

I've taken some heat in comments at the ZDNET version of my post about the top 15 tech trends research piece. Apparently, to non-Forrester clients who don't have access to the research on the website (except for a rather steep by-the-drink price), the blog post comes off as a teaser with no payoff. Mea culpa. Here's the deal: My process, like that of many analysts these days, is to do research, publish it on our website, and then yak about it via social media. While I'm very careful in Twitter to point out when links will take you to something that's free versus something that's for Forrester clients, I wrote the blog post that found its way to ZDNET's site mostly with Forrester clients in mind. It mostly says "Hey, check out this research doc. Here's what I was thinking when I set out to publish it."

What happens next is that the various analysts who contributed to the trends doc will post blog entries about their areas of expertise, specifically about the topics we talked about in the trends doc. So, in a few weeks, there will be lots of info for non-Forrester clients to read to dig into what we're talking about in this trends piece.

But for now, the social media campaign is looking too much like we're withholding the bottom line just to squeeze some bucks out of the public. Not so. In the interest of addressing that issue, here is a table of the tech trends in that piece, sorted by highest impact (over the next 3 years).

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Tom Seaver On Performance Management

Craig Le Clair

OK, a bit of a stretch here, but I did spend 15 minutes one-on-one with the great hurler last week at the Xerox analyst conference at Citi Field in New York. And thankfully, the Mets were not playing. Tom signed my baseball as I toyed with asking him about Roger Clemens, steroids, and Hall-of-Fame-type questions, and the best I could come up with was simply asking how hard he threw the ball in his prime. He scowled and looked at me as if talking to a 5-year-old and said, "There are three important things about pitching — and yes velocity is one, but location, and the ball's movement are the others, and speed is the least important." So I thought about this, and it occurred to me that we focus on speed — in this case — only because we have radar guns that can measure it well. Movement and location are more difficult, so we just ignore them. And perhaps this is a problem with performance management in business today. We focus not on the more important metrics, but the ones we can conveniently grasp. Contact center call duration, as an example, is much less important than the time or the number of successful customer encounters. So thanks, Tom, for this insight, and perhaps we should spend a bit more time taking an outside in approach to metrics.

Choosing "A Single EA Repository Of Truth For Enterprise": A Dream Turning Into A Nightmare

Henry Peyret

As Forrester’s EA tools analyst specialist, I am regularly receiving inquiries from EA teams that are encountering trouble choosing the "single repository of truth" for the entire enterprise. Generally, they are oscillating between two products after a long decision process, hesitating in many cases because no one product is able to satisfy all the architects: the EAs, the solution architects, and sometimes the business architects. One product satisfies some architects and not the others, and vice versa; in the end, choosing one single product would not satisfy anyone because for each option that will satisfy a few, some will not use it (generally, for good reason), and it will not give others the information they require to do their job. Therefore, for these EA teams, the dream of getting a "single repository of truth" is becoming a nightmare. I encounter this sort of dilemma in half of the inquiries I receive about EA tools and particularly within the largest companies.

My answers are sometimes difficult for these EA teams to hear:

  • First: Do all team members agree on EA objectives for the next two to three years? Do all architects know and share the same IT objectives and priorities? If EA and IT objectives/priorities are not clear, it is not surprising that they want different tools, because a universal EA tool does not really exist at this time. The recent document I published about the EA management suite as a third generation of EA tools explains how the most recent two generations complement each other.
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InfoWorld/Forrester EA Award Winners Announced

Gene Leganza

Readers of this blog are all likely to agree that EA is important, but it's also true that EA teams struggle for influence, laboring mightily in the shadows, out of the limelight. Forrester and InfoWorld have teamed up to end all that. Well, OK, we may not be able to do a lot about the struggling and laboring mightily, but we can certainly do something about the limelight thing.

InfoWorld and Forrester are working together to publicize EA programs that are making a difference to their businesses. A distinguished panel of judges, including Forrester analysts and real-world EA leaders from our EA Council, vetted detailed entries to the InfoWorld/Forrester EA awards contest, and we have picked five winners. These winners show different aspects of high-impact EA programs – but a review of their stories shows some things they have in common as well, including the insight to prioritize the right direction for EA at the right time.

The winners are, in alphabetical order:

  • Aetna: Capability maps
  • Barclays Bank: Road maps and strategic architectural alignment
  • Discover Financial Services: Driving value with EA
  • Skandia UK & International: Transformation delivered through EA
  • Wells Fargo: Living target architecture

We can all learn about the application of EA best practices from these companies’ stories. I strongly encourage you to read the write-ups here. As always, we’re very interested in your comments and ideas!

Forrester Is Hiring — Join Our Global Enterprise Architecture Team!

Alex Cullen

You know how technology is changing how businesses operate — how they engage with their customers, deliver products and services, and understand their markets. The burgeoning importance of technology is changing how IT operates in these businesses. Forrester has termed this transformation "BT" for business technology. And in our recent book, Empowered, Josh Bernoff and Ted Schadler describe how IT must support empowered businesspeople who are using emerging technology to solve their business problems. 

Enterprise architecture is a critical discipline for IT as its business relationship changes. Our clients have asked us to help them better understand emerging technology in a business and architecture context — and so we’re looking for a senior analyst to address these questions. This is a plum job, because it will put you right in the center of transformation that's happening with business technology. 

You'll spend your time speaking with people in companies that are actually implementing emerging technologies like mobile solutions, social networks, and even telematics and remote sensor technologies — gathering information about what works, what doesn't, and where the industry is going. You’ll write reports on these topics and work with clients on their technology strategies.

Our current analysts on this team are working in Cambridge, Massachusetts; Foster City, California; New York; London; Paris; and Amsterdam — or from their homes. For this position, we're inclined to hire an analyst who can work in one of our research locations.

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What Technology Trends Will Impact Your Organization In The Next 3 Years?

Gene Leganza

Despite the lack of a sustained full-on recovery in the global economy, one gets the feeling that we're at the beginning of a period of tech expansion and growth, doesn't one? For many, 2011 budgeting planning is happening now, so it remains to be seen what your expansion and growth will be in the near term, but there's certainly no shortage of interesting new developments from technology vendors to whet your appetite.

While it's fun to look at emerging tech and imagine what impact it might have several years from now, it's a bit more pragmatic to focus on the technology trends that will be hitting the mainstream and making significant waves in the corporate world and in the public sector in the next few years. 

In Q4 of last year Forrester published The Top 15 Technology Trends EA Should Watch. The author, analyst Alex Cullen, spoke with a few dozen analysts for input and then applied strict criteria for inclusion of a particular tech trend in the doc: 1) significant business or IT impact in the next 3 years; 2) newness, with implications not only for new business capabilities but also for the organization's understanding of the technology and how to manage it; and 3) complexity, especially regarding cross-functional impact to the organization.

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IBM Acquires Datacap: Rabbit Punch To Kofax And EMC

Craig Le Clair

You might think summer would be a good time to give acquisitions a break - to let things settle a bit. But the pace of key acquisitions continues and many deserve comment. Datacap, as we all know, is not new to IBM having many - probably 20 - joint customers. This helps shore up IBM's already packed ECM portfolio - which depended for capture on Kofax - and other partners like Datacap. The original capture assets, acquired with FileNet, were adequate but lacked forms processing and a distributed capture strategy. This acquisition plugs those gaps but more importantly provides a needed platform to overlay IBM's suite of analytics products to improve business processes with metadata extraction, document classification, and ultimately to bring text analytics to transactional business processes. Advanced capture will also help IBM in advancing areas of dynamic case management and medical records.    

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Architects! Join Our Data Management Tweet Jam On MDM’s Next Evolution: Tuesday July 20 3-4 PM ET

Gene Leganza

A number of Forrester analysts have been collaborating on a series of Tweet Jams on topics related to data management. The last session was on BI, and the next one up is on MDM. These are very lively sessions involving many points of view on some quite provocative topics. I'm pasting in text from analyst Rob Karel's blog post on the upcoming MDM session on July 20 in case architects who read our EA blog don't read the business process blog where Rob posts. For most of the EA folks I have spoken with lately, information architecture and MDM are very relevant -- not to mention thorny -- topics. I hope you join us for a great discussion!

Rob's description of the session:

Many large organizations have finally “seen the light” and are trying to figure out the best way to treat their critical data as the trusted asset it should be.  As a result, master data management (MDM) strategies, and the enabling architectures, organizational and governance models, methodologies and technologies that support the delivery of MDM capabilities are…in a word…HOT! But the concept of MDM - and the homegrown or vendor-enabled technologies that attempt to deliver that elusive “single version of truth”, “golden record”, or “360-degree view” - has been around for decades in one form or another (e.g., data warehousing, BI, data quality, EII, CRM, ERP, etc. have all at one time or another promised to deliver that single version of truth in one form or another).

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