Ross & Weil - Chapter 3 (Implement Operating Model through EA)

Question 1

What do companies need other than an operating model to build a strong foundation for execution?

Answer 1

Enterprise Architecture to guide their efforts.
This EA looks at the integration and standardization, but also at key processes, systems and data composing the core of the companies operations

Question 2

What does EA direct?

Answer 2

The digitization of the foundation for execution

Question 3

What is the key purpose/goal to effective EA?

Answer 3

To identify processes, data, technologies and customer interfaces that take the operating model from vision to reality.

Question 4

What does an EA not provide?

Answer 4

Necessary detail to map out technical or process design requirements.

It does create shared understanding of how the company will operate, and based on this understanding the convergence of people, process and technologies can be mapped out (by IT).

Question 5

Which 4 levels of architecture do IT units typically address below the EA?

(Also called IT Architecture -> NOT EA)

Answer 5

• Business Process Architecture
• Data/Information Architecture (shared data + definitions)
• Application Architecture (individual applications + interfaces)
• Technology Architecture (infrastructure)

Question 6

What is a core diagram?

Answer 6

A high-level view of the processes, data and technologies constituting the desired foundation for execution.

• Helps facilitate discussion between business and IT managers to clarify requirements for the companies foundation for execution
• Helps communicate the vision;

Question 7

What are the key elements in every core diagram?

Answer 7

• Core business processes (stable set of company-wide capabilities to execute operating model)
• Shared data driving core processes
• Key linking and automation technologies (applications, middleware, major software packages, portals)
• Key customers

Question 8

What are the characteristics of a unification core diagram?

Answer 8

• Integration and standardization demand technology to link and automate processes.
• First identify key customers, then linked and standard processes, then shared data, then linking and automating technologies.
• The core processes have shared databases. Software to access these is the nervous system (linking technology)

Question 9

How does the unification core diagram look like (visually)?

Answer 9

In the middle you have a big hexagon representing data. Around that you have a big circle indicating the linking technologies. These linking technologies touch everything from business processes that can be spread around the circle and the big block of customer types.

• There can also be (linked) technology circles around the processes

Question 10

What are the characteristics of the diversification core diagram?

Answer 10

• Low integration and standardization mean BU’s to be run independently, with possibility of shared services.
• Core diagram only shows the shared services and the technical infrastructure providing them .
• First identify shared technologies, then shared processes, then (if needed) BU specific data and BU specific customers.
• No common interface to common customers

Question 11

How does the diversification core diagram look like visually?

Answer 11

• Big circles (there are multiple that are individual) of the (potential) shared technologies in the middle;
• Business processes around it, but they do not touch each other or touch the shared technologies.

Question 12

What are the characteristics of the coordination core diagram?

Answer 12

• Integration requires shared key data across BU, specifically from customers
• Standardized portal to gain access to data (because of compliance requirements)
• First shared customers, then shared data, then integrating technology, then linked processes (last not always needed as they are so unique)

Question 13

How does the coordination core diagram look like visually?

Answer 13

• Big hexagon of data in the middle, around it a big circle of shared technology. This technology touches the big block of key customers on the right.
• Around it you might position key processes, but not needed. They can touch the technology circle.

Question 14

What are the characteristics of the replication core diagram?

Answer 14

• Key processes are standardized across company and supported by automated technology (rapid expansion possible)
• BU operate independently, but with shared standardized business solutions and technical infrastructure components
• No data sharing (but standardized processes can be digitized)
• First standardized processes, then key/linking technologies, then (potentially) BU specific data and BU specific customers

Question 15

How does the replication core diagram look like visually?

Answer 15

• Put some of the most important, shared processes. Y
• You can put technology circles around those processes (per process, or combine processes in technology circles)
• You can put extra technology circles in the diagram that do not contain business processes as well.
• Customers are often not included, nor is data.

Question 16

How should the EA model be guided/started?

Answer 16

• It should start with senior management debating the operating model. They need to decide what’s the core of the company and populate an EA core diagram.
  This will force decision on general vision.

Question 17

How can IT leaders involve senior executives in taking the lead for the EA process?

Answer 17

• IT facilitating senior management discussion
  Often involves operational and organization re-engineering.
  Essence of the company will stay the same, business conditions might change.
• IT leaders design the core diagram
  and then use it to communicate to senior management the underlying logic for IT develpment