Sandvik Materials Technology Enterprise Architecture (SIE)

Cecilia Persson & Stefan Eriksson

EA 4B Presentation for Open Group 2011-11-09

Lean Business Development

Managing the Business Architecture through Business Capabilities

Sandvik Materials Technology Enterprise Architecture (SIE)

Who are we?

Cecilia Persson From the public sector in Stockholm to

Sandvik 2007 Working with EA at SMT since 2010 Responsible for Methods & Processes

Stefan Eriksson

From pulp & paper industri to Sandvik 2007 Working with EA at SMT since 2009 Responsible for Enterprise Information

Architecture

Sandvik Materials Technology Enterprise Architecture (SIE)

Order intake Invoiced sales Return on capital employed Operating margin Sandvik 61% ownership in Seco Tools

Proportion of shares outside Sweden Investments in property, plant and equipment No. of production units worldwide No. of employees, 31 Dec 2009

SEK 71,285 M SEK 71,937 M

-1.3% -2.0%

33% SEK 4,625 M

137 44,355

Sandvik Group 2009

SANDVIK TOOLING SANDVIK MINING AND CONSTRUCTION SANDVIK MATERIALS TECHNOLOGY

19,078 MSEK 15,328 MSEK 32,621 MSEK

Sandvik – Global leader

Sandvik Materials Technology Enterprise Architecture (SIE) page 4

Future Operational structure

Sandvik Materials Technology

Sandvik Machining Solutions

Sandvik Mining

Sandvik Construction

Sandvik Venture

Finance, Indirect purchasing, HR, IT, Communication

Group Executive Management Group and Support Functions

page 4

Tube Strip Wire and Heating Technology Primary Products

Sandvik Coromant Walter Safety

Underground Mining Surface Mining

Construction Process Systems Parts of Med Tech* Hard Materials Diamond Innovations Wolfram Dormer

* To be divested

Sandvik Materials Technology Enterprise Architecture (SIE)

Enterprise Architecture Delivered Value

The Essence of Enterprise Architecture EA should

Embrace All and Engage All within the company.

In order to Ensure Alignment

and Enable Agility.

Sandvik Materials Technology Enterprise Architecture (SIE)

Enterprise Solution Architecture (ESA): automated processes Solutions, services, information stores and integrations. Services /Solutions enabling business capabilities into IT support. Combines artifacts in the other three viewpoints. Enterprise Technical Architecture (ETA): the technical infrastructure on which IT solutions are provided (servers, network, operating systems, DBMS, middleware, directories, etc).

page 6

Enterprise Architecture Perspectives

Enterprise Business Architecture (EBA): business principles, organizational structures, business events, capabilities and processes. Enterprise Information Architecture (EIA): definition of business information entities such as Customer and Product, their attributes, identifiers and relations. Their flow between capabilities; ontologies and taxonomies; terminologies.

Sandvik Materials Technology Enterprise Architecture (SIE)

HOW ARE THE ARTIFACTS WITHIN THE COMPANY RELATED?

Sandvik Materials Technology Enterprise Architecture (SIE) page 8

Business Strategy

KPI

Organization

Regulates

Automated in

Enabled by

Measures Refined in Executes

Owned by

Manage Performance

Implemented in

Business Capability

Information

Process

System

Business Objective

Directs

Defines

Define expected Business Value

Carrying Business Value

Deliver Business Value

Measure delivered Business Value

Sandvik Materials Technology Enterprise Architecture (SIE) page 9

WHY BUSINESS CAPABILITIES?

Sandvik Materials Technology Enterprise Architecture (SIE) page 10

Business Capability – “The What’s”

Provide a stable point of reference for business functions and processes Partition business architecture into manageable parts that can be

understood by both business and IT people Identify candidates for harmonization and/or outsourcing

Create a better understanding of how the Company generates value Enable technology neutral discussions of the business’ need for IT

support Identify redundancies in organizations, processes and applications Point out dependencies between projects/initiatives Enable prioritization between and within projects

Sandvik Materials Technology Enterprise Architecture (SIE)

MANAGE INFORMATION

Sandvik Materials Technology Enterprise Architecture (SIE)

Sandvik Materials Technology Enterprise Architecture (SIE)

Cross references

Business rules

Responsibility

Information quality

Knowledge

Path of least resistance for individual integrations

Project driven Integration

Sandvik Materials Technology Enterprise Architecture (SIE)

Situation

Demand

Supply

SU SU SU SU SU

PU PU PU PU PU

Sandvik Materials Technology Enterprise Architecture (SIE)

Enterprise Information Management - Areas of Enterprise Information & Common capabilities

Business Events

Transactional Information • Orders • Invoices • Etc

Business Structure

Structure Information • Customer • Product • Asset • Country • Currency • Etc

Business Decisions

Performance Management Information • KPI´s • Measures

Information Presentation • Reports • Decision Support • Data Warehouse • Etc

Unstructured Business

Information

User created Business Information • Content • Search • Portal/Web • Collaboration • Business Forms

Manage Information Lifecycle, Metadata and Quality

Manage Information Security (SICS)

Manage & Monitor Information Logistics

Information Architecture

page 15

Manage Technologies & Domains

Sandvik Materials Technology Enterprise Architecture (SIE)

Enterprise Information Management - Structure

page 16

• What values to deliver Vision & Strategy

• Who decides what Governance

• What to do Capabilities

• How to ensure value delivery • Who performs it Organization

• Delivery of solutions, tools & technologies Infrastructure

Sandvik Materials Technology Enterprise Architecture (SIE)

SMT Enterprise Information Architecture Framework

Physical Data Model

Logical Information Model

Business Information Model

Business Information Landscape

Business Capability

KPI

System

Contract / Integration

Business Objective

Organization

Bu

sin

ess

IT

Sandvik Materials Technology Enterprise Architecture (SIE)

Thinking Behind

Look at Information as a product of a Business Process.

A role of IT (CIO-Office) is to ensure that SMT Business has the information required, to perform their assigned task and deliver the expected value in the most efficient way.

Information Exchange (Integration) is therefore a central component in our IT-Strategy. We call it Information Logistics.

Sandvik Materials Technology Enterprise Architecture (SIE)

Target Picture

Demand

Supply

SU SU SU SU SU

PU PU PU PU PU

Common agreed Information

Sandvik Materials Technology Enterprise Architecture (SIE)

Internal data representation Message sequence Guaranteed delivery Dead letter

Content enricher Security Message router Resequencer

Aggregator Channel adapter Pub/Sub Content filter

Envelope Validation Transport/MEP transformation

Content transformation Common format Message filter

Produce Deliver Consume

Structured error handling

Sandvik Materials Technology Enterprise Architecture (SIE)

Produce Deliver Consume

Structured error handling

Business Process & System Responsibility

Central Governance Business Process & System Responsibility

Sandvik Materials Technology Enterprise Architecture (SIE)

SMT EIM Framework

EIM VISION & STRATEGY

Vision

Mission

Strategy

Goals & Objectives

Value Proposition

EIM GOVERNANCE

Sponsorship

Ownership

Principles & Guidelines

Alignment

Governance Structure & Processes

EIM CAPABILITIES

Manage Business Event

Manage Business Structure

Manage Business Decision

Manage Unstructured

Business Information

Manage Common EIM Capabilities

EIM ORGANIZATION

KPI´s & Measures

Operating Structure & Processes

Roles & Responsibilities

Functional Services

EIM INFRASTRUCTURE

Enterprise Technology Framework

page 22

Sandvik Materials Technology Enterprise Architecture (SIE) page 23

IMPROVING PROCESSES OR THE BUSINESS?

Sandvik Materials Technology Enterprise Architecture (SIE) page 24

Business Strategy

KPI

Organization

Regulates

Automated in

Enabled by

Measures Refined in Executes

Owned by

Manage Performance

Implemented in

Business Capability

Information

Process

System

Business Objective

Directs

Defines

Sandvik Materials Technology Enterprise Architecture (SIE) page 25

A Business Capability map

Sandvik Materials Technology Enterprise Architecture (SIE) page 26

Business Strategy

KPI

Organization

Regulates

Automated in

Enabled by

Measures Refined in Executes

Owned by

Manage Performance

Implemented in

Business Capability

Information

Process

System

Business Objective

Directs

Defines

Add new information Manage Information

Automate information creation

IT-Capabilities help improving?

HOW TO IMPROVE?

The way we source

Sandvik Materials Technology Enterprise Architecture (SIE)

KPI

Organization

Automated in

Enabled by

Measures Refined in Executes

Owned by

Implemented in

Business Capability

Information

Process

Automated Processes

(System)

Directs

Defines

Platforms Products

Domains IT Capabilities

Business Services

Improve delivered value Reduce human operation Decrease redundancies

(multiple implemenations)

Evaluate current products Adjust, add, reduce

Producs & Platforms

Reducing the amount of implementation and

Products, will effect skills, Competencies & head count

required.

Sandvik Materials Technology Enterprise Architecture (SIE) page 28

Business Strategy

KPI

Organization

Regulates

Automated in

Enabled by

Measures Refined in Executes

Owned by

Manage Performance

Implemented in

Business Capability

Information

Process

System

Business Objective

Directs

Defines

Sandvik Materials Technology Enterprise Architecture (SIE)

Enterprise Architecture for Business – EA4B –

External input and influences Business Capability framework • APQC Process Classification Framework • Microsoft Motion (business architecture methodology, part of Microsoft Consulting Service, Enterprise Strategy) • Deloitte Enterprise Value Map • ISA95 (International standard, process control)

Special Thanks to: Ric Merrifield Microsoft Integration standard • Open Applications Integration Specification, OAGIS

Modelling tools and techniques • ARIS platform • IRM (information modelling and process modelling)