mit 8090 intro - j. mack robinson college of business · mit 8090 intro day 1 “seng the stage”...
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MIT8090Intro
Day1“Se3ngthestage”May23,2009
Professor:DuaneTruex
2
CogniBveMapof8090
ISArchitecturesasStrategyWeill,Ross&Robertson,“Enterprise
ArchitectureasStrategy”
WorkSystemsModelsS.Alter,“WorkSystemMethod”
ISarchitecturalcomponentsanddevelopmentMid‐RangeModeling
ArchitecturalModelingopBons
ERPasinstanBaBonofArchitectures
3
Lag
Data
Applications
Infrastructure
Traditional Approach to Systems Implementation
Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press, 2006.
Strategic Initiative
New Idea
Lag
Solution Design
4
The Result of Traditional System Implementation Approaches
Corporate Data
Technology Platforms
Applications
Data
5
The systems landscape we'd like to have DataWarehouse
Technology Platforms
Applications
Data
Middleware
6
There Are Four Operating Models
Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press, 2006.
Bus
ines
s P
roce
ss In
tegr
atio
n
Hig
h
Coordination Unique business units with a need
to know each other’s transactions Examples: Merrill Lynch GPC,
PepsiAmericas, MetLife
Key IT capability: access to shared data, through standard technology interfaces
Unification Single business with global process
standards and global data access Examples: Southwest Airlines, Dow
Chemical, UPS Package Delivery
Key IT capability: enterprise systems reinforcing standard processes and providing global data access
Low
Diversification Independent business units with
different customers and expertise Examples: Johnson & Johnson, GE, ING
Key IT capability: provide economies of scale without limiting independence
Replication Independent but similar business
units Examples: Marriott, CEMEX, ING
DIRECT
Key IT capability: provide standard infrastructure and application components for global efficiencies
Low High
Business Process Standardization
7
Different Standardization Requirements of the Four Operating Models
Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press, 2006.
Bus
ines
s P
roce
ss In
tegr
atio
n
Hig
h
Coordination Customer and product data Shared services Infrastructure, portal, and
middleware technology
Unification Operational and decision making
processes Customer and product data Shared services Infrastructure technology and
application systems
Low
Diversification Shared services Infrastructure technology
Replication Operational processes Shared services Infrastructure technology and
application systems
Low High
Business Process Standardization
8
Business Silos
Standardized Technology
Optimized Core
Business Modularity
Business Agility
25% 46% 27% 2% % of Firms
Companies gradually mature enterprise architecture and build out their platforms.
Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press, 2006. Percentage of firms in each stage is updated based on a 2007 survey of 1508 IT executives.
StandardizedEnterpriseProcesses/
Data
StandardInterfaces
andBusinessComponenBzaBon
Enterprise‐WideTechnologyStandards
LocallyOpBmalBusinessSoluBons
9
BusinessSilos
StandardizedTechnology
OpBmizedCore
BusinessModularity
Architecture maturity increases global agility.
Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, D. Robertson, HBS Press, 2006.
GlobalAgilityLocal
Flexibility
10
IT spending changes as architecture matures.
IT budgets are based on a 2007 survey of 1508 IT executives. Business silos budget is the baseline. Budgets for other stages are represented as a percentage of the baseline budget.
StrategicChoices
OperaBonalEfficiency
ITEfficiency
Local/FuncBonalOpBmizaBon
BusinessModularity
OpBmizedCore
StandardizedTechnology
BusinessSilos
0%
100%
Percen
tageofITInvestmen
t
LocalApplicaBons
SharedData
EnterpriseSystems
SharedInfrastructure
100% 84% 92% 145%ITBudget
StrategicImplicaBonsofIT
ArchitectureMaturity
36%
35%
25%
40%
16%
35%
15%
33%
18%
21%32% 34%
11% 14% 17% 18%
11
ArchitecturePlanningandDesign
StandardsManagement
ITFundingProjectManagement
Firmslearnbybuildingmanagementcompetencies.
Management practices within each practice set are statistically significantly correlated with each other. All four competencies are significantly correlated with architecture benefits.
Project methodology Post-implementation assessment IT program managers Business leadership of project teams
Senior executive oversight Enterprise architecture guiding principles Enterprise architecture graphic Process owners Full-time enterprise architecture team
Business cases Centralized funding of enterprise apps Infrastructure renewal process IT Steering Committee
Architects on project teams Technology research & adoption process Architecture exception process Formal compliance process Centralized standards team
12
Ge3ngfrom‘as‐is’toidealstate
MIT/CIS 8090 Intro
Opera&ngModelDefinesintegraBonandstandardizaBonrequirements
Founda&onforExecu&on• CoreBusinessprocesses
• ITinfrastructure
EnterpriseArchitecture
EngagementModel
StrategicIniBaBveStrategicIniBaBveStrategicIniBaBveStrategicIniBaBve
StrategicIniBaBve
StrategicIniBaBve
StrategicIniBaBve
EstablishesprioriBes
Learning
and
exploitaBon
13
Ge3ngfrom‘as‐is’toidealstate
MIT/CIS 8090 Intro
Opera&ngModelDefinesintegraBonandstandardizaBonrequirements
Founda&onforExecu&on• CoreBusinessprocesses
• ITinfrastructure
EnterpriseArchitecture
EngagementModel
StrategicIniBaBveStrategicIniBaBveStrategicIniBaBveStrategicIniBaBve
StrategicIniBaBve
StrategicIniBaBve
StrategicIniBaBve
EstablishesprioriBes
Learning
and
exploitaBon
14
Ge3ngfrom‘as‐is’toidealstate
MIT/CIS 8090 Intro
Opera&ngModelDefinesintegraBonandstandardizaBonrequirements
Founda&onforExecu&on• CoreBusinessprocesses
• ITinfrastructure
EnterpriseArchitecture
EngagementModel
StrategicIniBaBveStrategicIniBaBveStrategicIniBaBveStrategicIniBaBve
StrategicIniBaBve
StrategicIniBaBve
StrategicIniBaBve
EstablishesprioriBes
Learning
and
exploitaBon
15
Alter’sWorkSystemFramework
16
Alter’sWorkSystemFramework
17
WorkSystemSnapshot
18
WorksystemsareNOTInformaBonSystems
19
CogniBveMapof8090
ISArchitecturesasStrategyWeill,Ross&Robertson,“Enterprise
ArchitectureasStrategy”
WorkSystemsModelsS.Alter,“WorkSystemMethod”
ISarchitecturalcomponentsanddevelopmentMid‐RangeModeling
ArchitecturalModelingopBons
ERPasinstanBaBonofArchitectures
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