Enterprise Architecture is not about software, it's about Business Kevin Vertrees & Richard Owen

Our Background

Kevin Vertrees - VP / Enterprise Architect for Forest City Enterprises. Prior to this role, he was the CIO for Forest City Ratner Companies and served as the overall technical lead for their SAP implementation. He is TOGAF 9 certified and is also a musician, farmer, and on the board of several creative and environmental

organizations.

Rich Owen - An IT professional with 35 years of Business and Technology experience; Enterprise Architect (TOGAF 9 certified), SAP Professional (SAP ASAP, Value Management Academy, R3, ABAP), PMI PMP / PMO, ITIL, etc. Co-developed EA organizations starting in 2008 to date, ran multiple PMO’s prior and SAP Consulting practices as well; “gear head” otherwise.

● Forest City Enterprises, Inc. is an owner, developer and manager

of a diverse portfolio of premier real estate property located

throughout the United States. We have assets of approximately

$10.7 billion as of 10/31/12 and operate under three strategic

business units;

● The Commercial Group is Forest City's largest business unit, with

96 retail, office, arena, hotel and mixed-use properties;

● The Residential Group owns and/or manages rental units in urban

and suburban apartment communities;

● Core Markets – Boston, New York City, San Francisco, Philadelphia,

Los Angeles, Washington, D.C./Baltimore, Denver, Chicago and

Dallas.

Community Property System

As architecture influences FCE’s ability to envision, develop and support our communities, properties and building support systems and infrastructure...

Level of detail

Enterprise Architecture

Why would I form an architecture group ?

What methodology or framework should I consider ?

Is specific automated tooling essential for success ?

Any other tips or things to potentially avoid ?

Why form an architecture group ?

What is the purpose of Architecture ?

Why form an architecture group ?

What happens when form, fit or function is not fully considered ?

Why form an architecture group ?

What is the cost over time when this is not addressed ?

The Typical IT PMO Process ?

Business & IT Boards

Some Level of Strategy and Integration

PMO

Conditions for Success

Fin

ance

Strategic Planning

Solution Deployment

Missed Opportunities

Information sharing

IT Review Board(s) / Budget Review Drives IT Strategy and Priorities

Logis

tics

Sale

s

Manufa

ctu

ring

Oth

er

Solution Development

Why form an architecture group ?

Business Value approach

…Resulting in Underachieving Projects and Portfolios A missed opportunity for many organizations is their inability to systematically generate value from all investments, including SAP.

Expected Value Poor Selection and Prioritization

Inefficient Project Execution

Poor Absorption and Value Tracking

Realized Value

100%

5% – 10%

10% – 15%

20% – 25%

50-65%

Source: Corporate Executive Board -Applications Executive Council Research

Focusing on business outcomes throughout the lifecycle of a project reduces “Value Leakage”

Building the Right Things

Building Things Right Exploiting What We Built

Governance

Fitting Value Management in the organization

Value management process owner VMO mission: Enterprise process transformation IT portfolio capabilities & TCO Shareholder value Competitive advantage

Decision rights go hand in hand with who owns the budget

Autonomy drives complexity

VS

KPI's - Value to Executives

Consistent KPI definition

Inconsistency in KPI

definition

Detail

Aggregate

Architecture Layers

Process

Input 1

Output 1

Input 2

Input 3

Process Output 2

Maintenance Work Completion - Dash3000 (As Is)

Analyze Work Records SubmissionRecord WorkPerform WorkPlan Work

Re

liab

ility

Te

chP

ub

sM

tce

Cre

w

Mtc

e

Co

ntr

ol

Sa

bre

Bo

rne

ma

nn

JD E

dw

ard

sH

P

Sys

tem

Operational

Budget

Schedule

A/C

Maintenance

Control

Finances

Perform

A/C

Maintenance

Analyze Data

Record

A/C

Maintenance

Create &

Maintain

Task Cards

Develop A/C

Maintenance

Program

Work

Effectiveness

Mtce

Reqts

Flight

Times

Payroll

Processing

Bu

sin

ess

Da

ta

Applic

atio

n

Techn

olo

gy

Maturity, knowing where to start

Business Architecture approach

BEST PRACTICES

SAP Value Management

BEST PRACTICES – SAP Value Management

BEST PRACTICES – SAP Value Management

BEST PRACTICES – TOGAF v9

BEST PRACTICES – TOGAF v9

BEST PRACTICES – TOGAF v9

BEST PRACTICES – TOGAF v9

“An Enterprise Architecture is only as good as the decision making framework that is established around its governance”.

Architecture Review Board

IT Prioritization Committee

BI Steering Committee

Business Case Review Board

Business Context

Architecture Principles

Portfolio / Project Management

Change Management

Architecture Repository • Business • Application • Information • Technology

Future State

OP EX Working Committee

• Business Case Development.

• Review and evaluation of initiatives.

Operation Excellence Steering Committee

Governance

Aligning Frameworks (Framework Soup) !

BEST PRACTICES – Tooling and Frameworks

ARIS

The ARIS house ● ARIS

– ARchitecture of Integrated information Systems

– Conceptual framework used to describe organizations and application software

– Developed by Prof. Dr.

August Wilhelm Scheer

– Modeling method and tool

ARIS Platform for Process Excellence

Visualization of Strategy Balanced Scorecard Planning of KPIs

From Model to Execution From Process to Application From Design to Implementation and Operation

Modeling Analysis Reporting Publication

Measuring Performance Monitoring Risks and Controls

Support in all phases of the BPM lifecycle

Business Architecture approach

So the suggested starting point for Enterprise Architecture is the Business Architecture. The Business Architecture includes:

•Business Models •Business processes / Business capabilities • Organization structure • Business terms • Metrics / KPI’s

Enterprise Architecture approach

Areas in which ARIS is used

Capability Model

Mission: To be a leading owner, operator & developer of distinctive and diversified real estate projects in select core markets, which create value for our customers, shareholders, and communities through place create, sustainable practices, and a long term investment perspective.

Modeling: visualizing business aspects

Process Modeling

Information Architecture

• Conceptual model of key subject areas • Dimensions • Facts • Subject/Content areas • Documents and unstructured data

• Inventory of existing reporting solutions, cubes and ETL processes

• Classification Map of key data/information points to the capability model

• Future state organizational vision, decision trees, and

• Roadmap of BI, ECM and big data/social media initiatives.

• Decision trees and product roadmaps

Application Architecture

• Organized by application class / business capability • System Lifecycle: outlook, when to retire • Business and Technical attributes • System of innovation, differentiation, record

portfolio attributes reporting

Some key points to take away…

IT Program and Project management can be cost not

value driven.

The right KPI’s at the proper level defines value.

Portfolio and Value Management are EA “themes”.

Language and Governance is the key to architecture.

Value is ultimately measured by business outcomes.

“Don’t shoot where the bird is, but where you anticipate is going to be”.

EA will be measured by the Value it provides…

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