Contributed on September 8, 2016

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Enterprise Architecture, Project Management & Digital Transformation

Description

It is well known that an effective PMO is key to successful and efficient program and project execution. In other words, doing things “right”. Enterprise Architecture is the discipline that plans and monitors enterprise transformation and aligns the business strategy with information technology capabilities. In other words, doing the “right things” to support the business.

Why is it organizations despite having both of these disciplines still struggle with effective enterprise transformation? What can we done to use these disciplines more effectively to effect better business outcomes? What are the roles of each discipline and how do they work together to create business value?

In this presentation, Riaz will address these questions and will provide real life examples that can help build a strong relationship between the PMO and Enterprise Architecture.

Learning Objectives:
• How to build a strong relationship between the PMO and Enterprise Architecture (EA) to deliver positive outcomes for your organization
• Identify the different roles and functions of the PMO and EA as well as their similarities

Transcript

Enterprise Architecture, Project
Management & Business
Transformation
Riaz A. Khan, BSc (Hons.) CS, TOGAF,
ITAC-M
Instructor, Course Designer,
Faculty Advisor
Practice Leader,
Enterprise Architecture
Today’s Failures
What’s the problem
Digital &
Transformation
Enterprise
Architecture
Project
Management
Best Practices for
integration
Agenda
A bit about me
Dec ‘07 – Certified as a Open Group
Master ITA & Appointed to the IBM ITA
Profession Board
Dec ’13 Appointed as Instructor of
Enterprise Architecture, University of
Toronto
Provided architecture consulting to
senior executives across North America
VP & CA of Sears Canada – Enterprise
Transformation
Currently building out EY’s Enterprise
Architecture capabilities in Canada.
Hons. Software Engineering/Computer
Science Degree – University of Toronto
“Everybody has a plan before they get
punched in the face”
– Mike Tyson
Transformation through Innovation is
imperative if you are going to survive in the
new Digital world
Technology shifts, alternative business models, and
customer experience? Who’s Job is it?
Nike has made the transition with a move to Social Media and
Digital Technologies like NikeID
Disney has made a strong
transition to the Digital world
Ideas, products, services, money,
relationships are crossing the globe at the
speed of light.
digital business transformation
customer
experience digitisation
“Anytime,anywhere
access”
“Create seamless
experiences along
the customer
journey”
“Drive proactive
customer acquisition”
“Drive digitally
enabled customer
engagement”
“Enhance crosssell ”
“Develop deep insight
into customer
behaviour”
“Deliver hyper
personalised customer
experience”
“Drive digital adoption
across customer base”
“Digitise ‘channel to
fulfilment’ through
Business Service
Redesign”
“Drive simplification and
straightthrough
processing”
“Deploy new way of
working in Operationsand
IT”
value
customer delight, acquisition &retention
reduced cost to serve & cycle time
CUSTOMER JOURNEY
ENGINEERING
focused on shaping, designing and engineering delightful customer
experience
will be anchored around key themes
delivering superior customer experience through technology enabled
differentiation
digitally connect customers,
employees, assets,suppliersand
partnersinrealtime irrespective of
location
rapid fulfilment of customer and
employee needsthroughadoption
of straight-through processing and
paperlessoperation
leveragenetworkof partnerships
and offer relevant products /
services linked to customer life cycle
and goals
insight drivenactions,
interactions and decisions
based on sound
understanding ofcustomer
behaviour,journeyandgoals
truemulti-speedITcapableto
flex and deliverrapidbusiness
change andinnovation,
maintaining operationaland
portfoliocontrols
future-proof technology infrastructure
to ensure business agility, scalability,
rapid provisioning and state of the art
security
1990 1995 2000 2005 2010 2015
Store
Customer Journey Design Model
Observe
Learn
React
RequestDetail
Reserve
SelectProduct/Service
PlaceOrder
Receive
Use
ReviewUsage
EvaluateValue
ManageProfile/Service
ReceiveHelp
ReceiveResolution
ReceiveNotification
Verifyordispute
Topup/Pay
EnhanceSelection
Renewcontract
Referproduct/Service
Gainloyalty
Feedback
Discontinue
Be Aware Interact Choose Consume Manage Pay Renew
Recomm
end Leave
Buying Using Sharing
Py Leave
Copyright © The Open Group
2015
Tmforum Customer Journey Reference
Model
 ARMU
 Average Revenue per market
 ARPU
 Average Revenue per user
 Cart Abandonmentrate
 The loss of conversion of user journey end goalthat
is not complete
 Churn
 The rate of loss of customers from aservice
 Click through rate
 Percentage of user visit to next stage evaluation
 Conversion rate
 The percentage of user activity that achieved the
user journey outcome goal, for example,purchased
the product instore.
 Confidence Level
 level of percentage confidence limit probability
accuracy of location datapoint
 Latency
 The speed of IOT response protocol e.g.Bluetooth
LE 6 ms
Digital KPIs
 Location-basedAttribution
 The ability to ascribe a cause or effect from or to a
location. Is able to be measured and attributed
typically to a sale or an influencer that moved a
customer from one stage to the next in a customer
journey.
 Net Promoter Score NPS
 A measure of the level of traffic movement towardsa
brand or web site or touch point
 Open Rate
 The percentage of user that accessed the productor
service from an event trigger, for example from a
advert or email prompt.
 Reoccurring Revenue Rate(RRR)
 Often taken as an average, it is is the level of repeat
business revenue from a user and or service, typically
as a subscription
 User Cadence (usage rate)
 The frequency a Touchpoint is activated
 Valency index
 Ameasure of the attractiveness of a touch point
cluster driving convergence to it
A blueprint for the business
Would you build a skyscraper without a complete architecture?
• Implementing a business
transformation without an
architecture is like building a
skyscraper without plans.
– You need specific models such as the
floor plans, electrical, plumbing, and
HVAC schematics
– You need the models that show what
the finished product will look like and
how it will fit with its surroundings
• The business architecture ties the
strategies, goals, and objectives of the
organization to the systems and
solutions that provide for them
Business model
Operating model
Capability model
IT architectures
Business Architecture for Business
Transformation
An architecture provides clear benefits
A look at two examples approaching the same business problem
Without an architecture, projects and solutions
become entangled, leading to:
• Long, arduous, drawn out projects with no clear
end date or success criteria
• Redundant, expensive systems and processes
• Insufficient requirements traceability
• Overly complex integrations and higher long
term maintenance cost
• A “worn out” business that has no appetite for
change
Business Architecture for Business
Transformation
Architecture-based execution, on the other hand:
• Options and opportunities prioritized based on
business value and outcomes
• Efficient, streamlined business processes
supported by data and applications with
appropriate governance
• Traceability of solution components to business
requirements and originating goals and objectives
• Targeted integrations using effective, repeatable
patterns
Examples of aggregate spend reporting solutions from pharmaceutical industry
Leadership
Itisclear– strongexecutiveleadership,aclearobjectiveandtimeframe,andindividualmetric alignmentarethekeyfactors forsuccess
Success demonstration
Metric alignment &
accountability definition
Delivery & engagement
► There is a direct correlation
between successful initiatives
and executive sponsorship – in
each case the initiative has
been led by a C-level
executive
► Furthermore these initiatives
have been led by a single
person as opposed to a team
of people
► In cases where leadership has
changed regularly or been
passed from one role to
another, the initiative has not
enjoyed as much success
► Initiatives that clearly
articulate the end-game are
successful
► In each case where the
initiative has been successful,
the business architecture
team has had a clear way to
demonstrate success through
the achievement of agreed
outcomes with key
stakeholders
► Teams that do not articulate
how they will measure or
demonstrate success are not
considered as valuable
► Celebrating success is also a
characteristic of better teams
► Success is this space involves
articulating who is
accountable for what across
three areas:
► Business architecture team
– defining what this team
will do and what is
responsible for
► Other teams and
professions – specifically
how the business
architecture team will
interact with them
► Individual metric alignment
– specifically how
individual roles and
rewards will align to the
(new) objective
► Successful business
architecture delivers across
shorter timeframes and
communicates outcomes and
status regularly
► It becomes the fulcrum
around which other
professions pivot, pulling in
expertise as needed
► Use qualified and experienced
professionals. Programs that
use subject matter experts in
place of architecture
professionals have a much
higher rate of failure than
those who use both correctly
How to get it right: success criteria
Getting it right isn’t easy and requires qualified professionals
Despitedifferentindustries,geographiesandbusinessmodelssomecommonthemeshaveemergedwithinorganizationstoensure successfulbusiness
architectureinitiatives
Enterprise Architecture & the Enterprise
Enterprise Strategy
Fire and
hope!
Enterprise Architecture
Business Operating Environment
and IT Infrastructure
Transition
Planning
Architecture
Governance
Bus Architecture IT Architecture
AEI
Corporate
Yankee
Group
Saturn
Group
Yarn
Division
Knits
Division
Seneca
Plant
Raleigh
Plant
Cash
Management
Shipping
Accounting
Component
Design
Yarn Buying
Order Entry
Component
Scheduling
Yarn
Dyeing
Inventory
Assortment
Planning
Component
Knitting
Tagging &
Packing
Business Structure
Business Locations
Classically, EA is the “planning” function between strategy formulation and
delivery…
ProgramfocusEnterprisewidefocus
Strategy
Planning
Design
and
Delivery
Change Programs
Soln Outline Macro Design Micro Design Devt, etc.
Program Architecture
Soln Outline Macro Design Micro Design Devt, etc.
Program Architecture
Enterprise
Architecture
= “the city plan”
System Design
= “the buildings”
Strategy
= “the city’s purpose & goals”Technology
Availability
Business
Opportunity
Bus Strategy IT Strategy
“Do the Right Things”
“Do the Right Things Right”
PROJECT MANAGEMENT CORE
PROCESSES
Quality
Cost
Human
Resources
Communication
Project
Risk
Procurement
Integration
Scope
Schedule
Core Processes explained
Stakeholder
Management
Making sure that
people concerned
with the project
are continuously
engaged and their
expectations met.
Core Processes continued
Shared Industry Challenges
28
The business will fund the EA functions it believes are
delivering value and jettison the rest to partners and
vendors
The focus will be on the Business and Information layers in
the Architecture domain stack because this is where EA
has the most impact on the bottom line.
Shared Industry Challenges
29
For the PMO, the focus is on maturing strategic
capabilities and implementing a more robust investment
portfolio.
Increase knowledge of Business and Information
Architecture.
Deliver pragmatic and immediate benefits.
Industry Response – System Integration
Soft skills and Business understanding
Complete project metadata
Rudimentary inventory of IT assets and services
Lack technical knowledge of business information
architectures.
Inconsistent data and vocabulary to the business
Lack soft skills
Limited project metadata collected to begin to
understand transformation
Complete inventory of business and IT assets related
across multiple portfolios
Technical knowledge of business and information
architectures
Inconsistent data and vocabulary to the business
PPM
(PMO)
EA
31
EA vs PPM
Business Expectations EA & PPM Challenges
• Increase focus on Business
Value
• Increase knowledge of
Business & Information
Architecture
• More collaboration, less silos
• Focus on prioritization
• Focus on delivering pragmatic
& immediate benefits
• Must understand &
translate business value
into execution
• Soft skills are critical
• Understand enterprise
strategic priorities
• Architect for the business
• Work differently
EA vs. PPM
Interdependent
Process
EA Role PPM Role
Strategy Ensures Business & IT Strategy align Supports Strategic Planning
Investment Influences investment decisions & IT budget
formulation
Supports budget formulation process
& monitors investments
Investment
Support
Integral member of integrated project team
developing business case & solution
Provides standards, tools, assists with
scope, schedules, budget, risks &
communications
Investment Review
Process
Member of review process, project portfolio
planning & review board which monitors
portfolio & project performance against
scope, schedule, costs, risks, etc.
Leads review process. Adds new
projects to portfolios, monitors &
reports demand, risks/issues &
performance problems
Acquisition
Oversight
Ensures IT acquisitions align with target
architectures & Technology Standards
lifecycle. Promotes RE-USE.
Provides acquisition support (lab &
governance process)
Supports development of acquisition
package (alternative analysis, cost
estimates, RFPs & selection plan.
EA vs. PPM
Current & Target
Architecture
Enterprise
Architecture
Business
Strategy
Business
Direction
Capability Planning
Portfolio Management
Structured
Direction
Program
Management
Project
Management
StrategyExecution
Aligning PMO and EA Functions
Demand
Management
Enterprise
Architecture
Portfolio
Management
Project
Initiation
Project
Planning
Project Closure
EA
Governance
Enterprise
Architecture
Project
Execution
Project
Monitoring and
Control
Architecture
Development
Implementation
Governance
EA
Governance
1 2
3
4
5
6
1
2
3
4
5
6
ImplementationRoadmap
Architecture DefinitionDocument
ImplementationRoadmap
Updated EA Content Framework
Existing Capabilities
Domain Expertise
Architecture ComplianceChecks
Step Outs
Updated EA Content
Enhanced EA Practice
EA’s Specific Contribution to Portfolio Management
Initial Portfolio
Assessment
Detailed
Portfolio
Assessment
Portfolio
Prioritization
Enterprise
Architecture
1
1
2
Existing Capabilities
Domain Expertise
ImplementationRoadmap
Domain Expertise
Enterprise
Architecture
2
Demand
Management
Portfolio
Management
Project
Initiation
Project
Planning
Project Closure
Project
Execution
Project
Monitoring and
Control
36
Industry Response – System Intergation
PPM
EAMS
Business
Successful companies are
beginning to integrate their
systems.
Shuffling stewarded data back
and forth between systems.
37
Industry Response- System Integration
Extend and integrate systems for a 360°view of Project
and Architecture metadata
Extend EAMS to fully enable the
execution of project data and
apply to applications
Extend PPM dimensions to include
business capabilities and risk
• Common language/taxonomy – establish consistency.
• Leverage system of record data and metrics to improve portfolio decisions, analysis &
execution.
• Support integrated bi-directional use cases e.g., compliance, impact analysis, financial,
and demand management
Industry Response – System
Integration
38
Establish Integrated Premise – Systems of Record
Compliance
PPM EAMS
Industry Response
Portfolio and
Resource
Management
Capability and
Technology
Management
Strategy and
Investments
Products
Applications
and Services
Projects
Technology
Business
Capabilities
Independent solutions or Integrated into one portfolio.
Integrated Strategic Planning and Execution
Optimize
Your
Resources
PPM EA
40
Best Practice
Improve project selection decisions
• Prioritize by determining which future business capability is
supported and align with strategy and architectures.
Improve strategic leverage of technology
• Leverage technologies by linking to business outcomes.
Increase business value delivery
• Reuse of reference models, patterns and technical standards
(assets).
Build a Case for Integration – Focused on Business Value
Outcomes
41
Best Practice
• Proposed Project/Business Cases
• Project Dependencies Report
• Project Fulfillment of EA Requirements
• PPM/EA Governance Process
• Project Design Reviews
• PPM Training for EA staff
Ensure PPM Provides Key Deliverables to EA
Best Practice
42
Actionable and Diagnostic Deliverables;
• Enterprise context
• Collaborative new project or project
change proposals:
• Project architectural assessments
• EA road maps
• Project Waivers
• EA training for PPM staff
Ensure EA Provides Key Deliverables to PPM
riazkhan@bell.net
https://ca.linkedin.com/in/riazakhan