enterprise architecture and · pdf file• it portfolio services or deliverables from the...

Enterprise Architectureand Governance

reducing risk, adding value,

driving changewww.realirm.co.za

The Open GroupBrusselsApril, 2004

2

Copyright © Real IRM Solutions (Pty) Ltd

2001 – 2004All Rights Reserved

Agenda

q Case Study

q Enterprise Architecture and Governance

q Case Study

q Conclusion

Introduction

3



Business Alignment by Design

Mq Regular assessment of all IT

processesq Compliance with and quality

of controls

Monitoring (M)

Planning&

Organisation(PO)

POq Strategy and tactics for IT

contributionq Meeting Business objectivesq Appropriately planned,

communicated and managedq Proper organisation and

technology infrastructureq An Enterprise Architecture is

definedq Quality is managed

Acquisition&

Implementation(AI)

AIq Realisation of IT strategyq Solutions identified,

developed, or acquired and implemented

q Solutions integrated into business process

q Change and maintenance of systems

Delivery&

Support(DS)

DSq Actual delivery of required

servicesq Actual operations through

security, including trainingq Establishment of support

processesq Actual processing of data by

applications

In order to provide the information that the organization needs to achieve its objectives, IT resources need to be managed by a set of naturally grouped processes.

Enterprise Architecture Process Thread

Introduction

4

www.isaca.org

5



Agenda

q Introduction

q Case Study


q Case Study

q Conclusion

Case Study

6



South African Breweries Ltd (Case Study April 1999)q South African Breweries plc case study: http://www.isaca.org/ctcase8.htm

q COBIT Framework used in the development of an IT Strategy (April – June1999)

Ø For each of the 34 COBIT processes documented:

• SAB Ltd Target Environment

• Business Objectives

• IT portfolio services or deliverables from the IT process,

• The current situation, and

• Strategy and action items needed to move from the current state to the desired state.

ØResearch material from Gartner, META Group, PwC, Forrester etc.

• Linked to COBIT IT processes

• Impact and Timing

q Key Themes = IT Governance Objectives

Case Study

7



IT Governance ObjectivesS

ervi

ce

cost

time

CheaperCheaper

Ser

vice

qu

ality

time

BetterBetter

time

ControlledControlledSecureSecure

time

FasterFaster

Del

iver

ytim

e

Sup

port

busi

ness

time

AlignedAligned

StakeholderValue

IT Governance is defined as a system to direct and control the organisation in order to achieve its goals by adding value while balancing risk versus return over IT and its processes.

IT Governance Objectivesq IT is aligned with the Business,

enables the Business and maximises benefits

q IT resources are used responsibly

q IT related risks are managed appropriately

IT r

isks

Case Study

8



SAB plc Case Study (June – October 2000)

1. ConfirmUnderstanding

of BusinessDirection

4. CurrentIT Inventory

7. Information& Data

8. Applications

9. TechnicalInfrastructure

10. Organisation& Governance

5. EstablishProgramme

Office

3. Consolidate & ConfirmBusiness Process Vision

6. Set Context

Business Insight Investment

11. ChangeProgramme

Design

optio

ns

op

tio

ns

0.

Mobilisation

2. UnderstandImpact of Key

Issues

12. Business case development

checkpoints

q Business Model

q Current Position

q Drivers for Change

q Challenges

q Best practice

q Key OpportunitiesPotential areas for commonality

q Business Capabilities

q Business Priorities

Business Architecture IT Architecture

IT Governance

IT Architecture





8. Applications




Office


6. Set Context


11. ChangeProgramme

Design

optio

ns

op

tio

ns

0.

Mobilisation


Issues


checkpoints

q Business Model

q Current Position


q Challenges

q Best practice





IT Governance

IT Architecture

Case Study

9



SAB plc Case Study (June – October 2000)

qSAB Global IT Strategy (June – October 2000) Used COBIT Extensively:

ØAssess IT process capability maturity (actual and desired) for South Africa, Africa and Europe IT departments

ØIdentify the steps or actions required to improve IT process capability maturity

ØIdentify and understand areas of knowledge sharing across the group

ØFacilitate IT organisational design

ØDefining IT services from CobiT IT process

ØIdentify the “key headlines” or what we need to focus on in order to support the business achieve desired capabilities

Case Study

11



Determine Technological Direction (PO3)Business ObjectiveTo take advantage of available and emerging technology to drive and make possible the business strategy.

Target EnvironmentCreate and maintain a technological infrastructure plan that sets and manages clear and realistic expectations of what technology can offer in terms of products, services and delivery mechanisms.

IT Service Component

qTechnology roadmap

qTechnology standards

q IT Infrastructure planning

qR&D Services

Process Commonality Opportunities for sharing

qExisting IT Standards

q IT laboratory

qTechnology Blueprint

q IT Research

Level of Consistency

Lev

el o

fC

on

solid

atio

n

Glo

bal

Reg

iona

lLo

cal

Local Regional Global

Case Study

13



Determine Technological Direction (PO3)

From

q Reactive and operationally focused approach to planning.

q Future decisions are based on current investment and not on strategic direction

q Individual technology bias and mindset

q Technology directions are driven by the often-contradictory product evolution plans of hardware, systems software and applications software vendors.

To

q Roadmaps and migration strategies exist to take XYZ from the current state to the future state of IT infrastructure.

q Technology Forum and Steering Committee approval of new and changed technological directions.

q A research function reviews emerging and evolving technologies and benchmarks XYZ against industry norms.They demonstrate business value and focus on identifying constraints and opportunities.

q Governance mechanisms review to ensure adherence to approved architectures

Implication

q Develop an Enterprise Architecture Capability that integrates the Business, Information (Data), Application and Technology architectures, and reviews adherence to approved architectures

q Implement an IT research, prototyping and testing facility.

q Partner with key vendors based on the understanding of their long-term technology and product development plans, consistent with XYZ direction.

Basic (Initial)

Developing (Repeatable)

Established(Defined)

Sophisticated (Managed)

Leading edge (Optimising)

0 1 2 3 4

Capability Maturity

“As-Is”

Desired “To-Be”

IllustrativeIllustrative

Year 1 Target

Case Study

14



IT Risk and Maturity Assessment

Case Study

15



SAB plc Case Study (June – October 2000)q SAB Group Led Globally: Strategy, Planning, Governance and IT

Performance Measurement

q CobiT 3rd edition provides a global performance improvement framework

Ø Identifying and focusing on key determinants of IT performance;

ØEstablishing common key performance indicators across the group to enable internal and external benchmarking comparisons;

ØProviding template business processes supported by systems to enable rapid transfer of good practice, and

ØSupporting less people-intensive and more consistent ways of sharing knowledge, by encapsulating the best thinking into the process models and supporting documentation.

q Enterprise Architecture is a strategic imperative

Case Study

16



Agenda

q Introduction

q Case Study


q Case Study

q Conclusion

Enterprise Architecture and Governance

17



Enterprise Architecture is a Strategic Imperative

Information Technology

BUSINESS FOCUS

TECHNOLOGY FOCUS

Enterprise Enterprise GovernanceEnterprise Governance

IT GovernanceIT Governance

Enterprise Architecture

Process

18



Enterprise ArchitectureqConsists of current and future state

models

q Is implemented through the Enterprise:

Ø Business architecture,

Ø Information architecture,

Ø Data Architecture,

Ø Applications portfolio, and

Ø Enterprise-wide technical architecture

qProvides organizations with the ability to conduct impact assessments, analyze alternative scenarios and implement appropriate strategies

q (Re-)Defines the business design for sustainable competitive advantage

Business Architecture

Information Architecture

DataArchitecture

ApplicationsArchitecture

TechnologyArchitecture

Knowledgeq Principles

q Inventory

q Models

q Standards

Enterprise Architecture and Governance

19



Enterprise Architecture Capability


© Real IRM Solutions© Real IRM Solutions

Illustrative Knowledge Frameworks

Arc

hit

ectu

re

Secto

r

Group /

Enterpr

ise

Busine

ss

Prod

uct.A

pplic

ation

Other

Intell

ectua

l Cap

ital



Data Architecture

Applications Architecture

Technology ArchitectureEn

terpri

se Arch

itectu

re

Capab

ility

Peo

ple

Pro

cess

es

Co

nte

nt

To

ols

Pro

du

cts

and

Ser

vice

s

20



Zachman FrameworkWhen used as an organizing mechanism for knowledge management and collaboration

Product Frameworks

Business Frameworks

Application.SAP R/3 ®

Division.XYZ.”To-Be”

Enterprise Architecture Framework

Template.Banking Sector

Template.CRM

Enterprise.XYZ

Division.XYZ.”As-Is”

q Manage the impact of change on the organization

q Prioritise initiatives

q Accelerate application development, package selection & implementation and cross enterprise integration

q Benchmarking, Knowledge Management and Intellectual Capital

q Accelerate M&As

q Business and IT Fusion…

…these frameworks facilitate Enterprise Architecture and Governance.

R1C5 R1C6R1C4R1C3R1C2R1C1





Data Function Communications UsersDependencies / schedule

Rules/ Strategy

Strategic Scope Model [Contextual]

(Planner)

Model of the Business [Conceptual]

(Owner)

System Model[Logical]

(Designer)

Technology Model [Physical](Builder)

Detailed Representations(Sub -contractor)

Functioning System(User)

Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman







Rules/ Strategy


(Planner)


(Owner)


(Designer)




Data(What?)

Function(How?)

Network(Where?)

People(Who?)

Time(When?)

Values(Why?)

© John Zachman


21



Content – Models and the Zachman Framework


(Planner)


(Owner)

System Model [Logical]

(Designer)


Detailed Representations(Sub-contractor)


Data(What?)

(R1C1)

(R2C1)

(R3C1)

(R4C1)

(R5C1)

(R6C1)

List of thingsimportant tothe business

Entity Relationshipdiagram

Data model

Data design

Data designdescription

Data


R2C1Semantic model – A model of the actual enterprise objects (i.e., things, assets) that are significant to the enterprise.

Typically, the semantic model would be represented as an entity/relationship model and would be at a high level of definition expressing concepts (i.e. terms and facts) used in the significant business objectives/strategies that would later be implemented as business rules.


22



© Real IRM Solutions (Pty) LtdAll Rights Reserved

© Real IRM Solutions© Real IRM Solutions

Project B – Business Project A

rch

itec

ture

Do

mai

ns

Other



Data Architecture


Technology Architecture

Intell

ectua

l Cap

ital

Projec

t A

Enter

prise

Archite

cture

Capab

ility

Peo

ple

Pro

cess

es

Co

nte

nt

To

ols

Pro

du

cts

/ Ser

vice

s

Busines

s Proje

ct

(Soluti

on Fo

cus) C - Operate an EA Office

Programme Management of Enterprise Architecture


23



Programme Management of Enterprise ArchitectureProgramme Mandate

Identifying a programme

Defining a programme

Programme Brief

Vision Statement

and Blueprint

Establishing a programme

Closing a programme

Programme Benefits Review

Delivery of Blueprint

Running a programme

Managing the portfolio

Delivering benefits

PRINCE2

A. Enterprise Architecture CapabilityB. Business Project (Solution Focus)

C. Operate a Value-adding and Cost Effective EA Office

Enterprise Architecture

Process


24



Real IRM Product Categoriesq EA Framework (39+ product items)

q EA Methodology and Standards (28+ product items)

q EA Enabling Products (42+ product items)

q EA Communication

q EA Training (20+ product items)

q EA Content Products

q EA Configuration Management


25



Intell

ectua

l Cap

ital

B

I

D

A

T

Peo

ple

Pro

cess

es

Co

nte

nt

To

ols

Pro

du

cts

and

Ser

vice

s

HArchitecture

ChangeManagement

GImplementation

Governance

FMigrationPlanning

EOpportunitiesAnd Solutions

DTechnologyArchitecture

CInformation

SystemArchitecture

BBusiness

Architecture

REQUIREMENTSMANAGEMENT

AArchitecture

Vision

D A

A A

Enter

prise

Archite

cture

Capab

ility

I A

Preliminary Phase

Proje

ct Fo

cus

EA Capability and TOGAF (adapted)


26



Manage the EA Capability as a Business





8. Applications




Office


6. Set Context


11. ChangeProgramme

Design

optio

ns

op

tio

ns

0.

Mobilisation


Issues


checkpoints

q Business Model

q Current Position


q Challenges

q Best practice





IT Governance

IT Architecture





8. Applications




Office


6. Set Context


11. ChangeProgramme

Design

optio

ns

op

tio

ns

0.

Mobilisation


Issues


checkpoints

q Business Model

q Current Position


q Challenges

q Best practice





IT Governance

IT Architecture

Enterprise Architecture and IT Governance

27

www.isaca.org

28



IT Services Summarized by Domain and Commonality

Planning &Organization (PO)

Acquisition & Implementation (AI)

Delivery &Support (DS) Monitoring (M)

Strategic Planning PO1 PO1 PO1 PO4 PO4

Enterprise Architecture Management PO2 AI1 AI1 AI1 AI6 DS9 DS11DS9

IT Process Commonality


Level

of

Co

nso

lid

ati

on

Glo

bal

Reg

iona

lLo

cal


G

GLL

R

RL

GR



Level

of

Co

nso

lid

ati

on

Glo

bal

Reg

iona

lLo

cal


G

GLL

R

RL

GR

Application Delivery AI1AI1 AI2 AI4 - 6

Financial Management PO6 PO6 PO6 DS6 DS6

Operations Management AI3 AI3 DS3 DS3 DS3 DS3

DS7

DS8

DS13

DS9

DS3

DS4 DS4 DS4

DS7 DS7

DS8 DS8

DS9 DS9

DS10 DS10

DS13 DS13 DS13


Other …

Other …


29



Process Commonality



Level

of

Co

nso

lid

ati

on

Glo

bal

Reg

iona

lLo

cal


G

GLL

R

RL

GR



Level

of

Co

nso

lid

ati

on

Glo

bal

Reg

iona

lLo

cal


G

GLL

R

RL

GR

The level of consolidation defines the number of physical or logical locations that an IT process is executed

The framework provides a matrix approach to allocating responsibility for the IT services, supports global collaboration and facilitates local innovation.

IT Process is owned and executed by the Business Unit (Local), no adherence to Regional or Global principles, guidelines, or standards & procedures. “Do your own thing”

Shared Services such as a Data Center

IT Process is owned and executed by the Business Unit (Local), adherence to

Regional principles, guidelines, and standards & procedures. “Middle ground”

The level of consistency defines the extent of adherence to common principles, guidelines, and standards & procedures.

A globally consistent process executed at the local Business Unit“Business in a box”

E.g. A group of countries I.e. Americas

A consolidated global process (e.g. Custodian of group IT standards and procedures)


30



Enterprise Architecture Control Point Focus

Data Standards and Common Data

Definitions PO2

Enterprise Data Modeling

PO2

Enterprise Process Modeling

PO2


PO2

Identify and Evaluate Emerging

TechnologiesPO3

Develop and Manage Technical

ArchitecturesPO3

Identify Technical Standards

PO3

Systems Selection AI1

Define Application Portfolio Direction

AI1

Feasibility Studies AI1

Systems Selection AI1

Define Application Portfolio Direction

AI1

Change Management

Procedures AI6

Change Assessment AI6

Configuration Management

DS9

Middleware and Integration

DS9

AI1 Identify solutions

Data / Content Management

DS11

DS11 Manage data

PO2 Define the information architecture

PO3 Determine the technological direction

AI6 Manage changes

DS9 Manage the configuration

Secondary Focus

Primary Focus



Level

of

Co

nso

lid

ati

on

Glo

bal

Reg

iona

lLo

cal


G

GLL

R

RL

GR



Level

of

Co

nso

lid

ati

on

Glo

bal

Reg

iona

lLo

cal


G

GLL

R

RL

GR


Other …

Other …


31



Enterprise Architecture ManagementPurposeTransform a legacy of fragmented applications, organizational structures and processes (both manual and automated) into an integrated environment with optimized processes that are responsive to change and the delivery of the business strategy.

Primary Focus

q Optimize the organization of information systems.

q Take advantage of available and emerging technology to drive and make possible the business strategy.

q Other…

Critical Success Factors

q A high level, corporate Enterprise Architecture function is established, with sufficient authority to administer the enterprise models, principles, and standards

q An automated repository is used to ensure consistency between the components of the Enterprise Architecture

q Roadmaps and strategies exist to take the organization from the current state to the future state of IT infrastructure and applications portfolio.

q Other…

Goal and Performance Indicatorsq Faster application development.

q Reduction of data redundancy.

q Increased operability between systems and applications.

q Decrease number of non-compatible technologies and platforms.

q Reuse of models. IllustrativeIllustrative


enterprise architecture and · pdf file• it portfolio services or deliverables from the...

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