Creating a Foundation for Business Execution with Enterprise Architecture as Strategy: PDF Book Review
Enterprise Architecture as Strategy: Creating a Foundation for Business Execution PDF Free Download
If you are looking for a way to align your business strategy with your IT capabilities, improve your operational efficiency and agility, and create a competitive advantage in the market, you might be interested in learning more about enterprise architecture as strategy.
enterprise architecture as strategy creating a foundation for business execution pdf free download
Enterprise architecture as strategy is a book by Jeanne W. Ross, Peter Weill, and David C. Robertson that provides a comprehensive and practical guide on how to create a foundation for business execution with enterprise architecture.
In this article, we will give you an overview of the main concepts and frameworks from the book, as well as the benefits and challenges of applying them in your organization. We will also provide you with a link to download the PDF version of the book for free.
Introduction
What is enterprise architecture?
Enterprise architecture (EA) is the process of designing, planning, and implementing the structure, processes, systems, and data of an organization to support its strategic goals and objectives.
EA helps to ensure that the organization's IT capabilities are aligned with its business needs, that the IT resources are used efficiently and effectively, and that the IT systems are flexible and adaptable to changing business requirements.
Why is enterprise architecture important for business strategy?
EA is important for business strategy because it enables the organization to:
Create a clear and coherent vision of how the organization operates and delivers value to its customers and stakeholders.
Identify and prioritize the critical business capabilities that differentiate the organization from its competitors and drive its performance.
Optimize the integration and coordination of the business processes, systems, and data across the organization to reduce complexity, redundancy, and costs.
Increase the agility and responsiveness of the organization to changing market conditions, customer expectations, and technological innovations.
Enhance the innovation and learning capabilities of the organization by enabling experimentation, collaboration, and knowledge sharing.
How to create a foundation for business execution with enterprise architecture?
The book Enterprise Architecture as Strategy proposes a four-step approach to create a foundation for business execution with EA:
Define the operating model: The operating model is a high-level description of how the organization delivers value to its customers and stakeholders. It defines the degree of integration and standardization of the business processes, systems, and data across the organization.
Design the core diagram: The core diagram is a visual representation of the core business processes, systems, and data that support the operating model. It identifies the key components of the EA that are essential for achieving the strategic goals and objectives of the organization.
Build the enterprise standards: The enterprise standards are the policies, guidelines, and rules that govern the design, development, and deployment of the EA components. They ensure the consistency, compatibility, and quality of the EA across the organization.
Implement the governance mechanisms: The governance mechanisms are the structures, roles, and processes that enable the effective management and oversight of the EA. They ensure the alignment, coordination, and communication of the EA with the business strategy and stakeholders.
Key Concepts and Frameworks
The four types of enterprise architecture
The book Enterprise Architecture as Strategy distinguishes between four types of EA based on the degree of integration and standardization of the business processes, systems, and data across the organization. Each type of EA corresponds to a different operating model and has different implications for the business strategy and execution.
Business modularity
Business modularity is a type of EA that supports a high degree of integration and a low degree of standardization. It enables the organization to deliver customized and differentiated products and services to its customers by leveraging its core competencies and capabilities. It requires a high level of coordination and collaboration among the business units and partners, as well as a high level of flexibility and adaptability of the IT systems.
Core diagram
Core diagram is a type of EA that supports a high degree of integration and a high degree of standardization. It enables the organization to deliver standardized and efficient products and services to its customers by optimizing its core processes and systems. It requires a high level of centralization and consolidation of the IT resources, as well as a high level of alignment and compliance with the enterprise standards.
Operating model
Operating model is a type of EA that supports a low degree of integration and a high degree of standardization. It enables the organization to deliver consistent and reliable products and services to its customers by replicating its best practices and systems across the business units. It requires a high level of autonomy and empowerment of the business units, as well as a high level of standardization and harmonization of the IT systems.
Enterprise standards
Enterprise standards is a type of EA that supports a low degree of integration and a low degree of standardization. It enables the organization to deliver diverse and innovative products and services to its customers by encouraging experimentation and variation among the business units. It requires a low level of coordination and control over the IT resources, as well as a low level of conformity and uniformity of the IT systems.
The three stages of enterprise architecture maturity
The book Enterprise Architecture as Strategy also describes three stages of EA maturity that reflect the evolution and progression of the EA capabilities in an organization. Each stage has different characteristics, challenges, and opportunities for improving the business execution.
Business silos
Business silos is the first stage of EA maturity, where the organization has no or very limited EA capabilities. The business units operate independently from each other, with their own processes, systems, and data. The IT systems are customized and fragmented, resulting in high complexity, redundancy, and costs. The organization lacks a clear vision and direction for its business strategy and execution.
Standardized technology
Standardized technology is the second stage of EA maturity, where the organization has developed some basic EA capabilities. The organization has implemented some common IT infrastructure, platforms, and applications across the business units, reducing some complexity, redundancy, and costs. The organization has also defined some enterprise standards for IT design, development, and deployment. However, the organization still lacks integration and coordination among its core processes, systems, and data.
Optimized core
Optimized core is the third stage of EA maturity, where the organization has achieved advanced EA capabilities. The organization has aligned its core processes, systems, and data with its operating model, creating a foundation for business execution. The organization has also established effective governance mechanisms for managing and overseeing its EA. The organization can leverage its EA to improve its operational efficiency, agility, innovation, and learning.
The four steps to implement enterprise architecture as strategy
The book Enterprise Architecture as Strategy provides a four-step approach to implement EA as strategy in an organization. The steps are:
Define the operating model
The first step is to define the operating model that best suits the strategic goals and objectives of the organization. The operating model should reflect how the organization delivers value to its customers and stakeholders, how it differentiates itself from its competitors, how it coordinates its activities across its business units and partners, how it standardizes its processes, systems, and data across its organization.
such as the customer segments, the value proposition, the competitive advantage, the business model, the organizational structure, the culture, and the external environment of the organization.
The operating model can also be classified into one of the four types of EA: business modularity, core diagram, operating model, or enterprise standards. The type of EA should match the degree of integration and standardization of the processes, systems, and data across the organization.
Design the core diagram
The second step is to design the core diagram that represents the core processes, systems, and data that support the operating model. The core diagram should identify the key components of the EA that are essential for achieving the strategic goals and objectives of the organization.
The core diagram can be created by mapping out the main activities and outcomes of the value chain, identifying the core processes that deliver value to the customers and stakeholders, identifying the core systems that enable and automate the core processes, identifying the core data that capture and store the information needed for the core processes and systems.
The core diagram can also be validated by testing its completeness, consistency, clarity, and alignment with the operating model and the business strategy.
Build the enterprise standards
The third step is to build the enterprise standards that define the policies, guidelines, and rules that govern the design, development, and deployment of the EA components. The enterprise standards should ensure the consistency, compatibility, and quality of the EA across the organization.
The enterprise standards can be developed by establishing a common IT architecture framework that specifies the principles, patterns, models, and standards for IT design, development, and deployment. The framework should cover various aspects of IT architecture such as business architecture, data architecture, application architecture, technology architecture, security architecture, and governance architecture.
The enterprise standards can also be enforced by implementing a common IT infrastructure that provides a shared platform for IT services such as network, storage, computing, security, communication, collaboration, and integration.
Implement the governance mechanisms
The fourth step is to implement the governance mechanisms that enable the effective management and oversight of the EA. The governance mechanisms should ensure the alignment, coordination, and communication of the EA with the business strategy and stakeholders.
the roles, responsibilities, and authorities of the EA stakeholders such as the business leaders, the IT leaders, the EA team, the project managers, and the IT vendors. The structure should also specify the decision-making processes and criteria for EA-related issues such as EA strategy, EA design, EA implementation, EA change, and EA evaluation.
The governance mechanisms can also be supported by creating a governance system that provides the tools, methods, and metrics for EA management and oversight. The system should include various elements such as EA repository, EA documentation, EA communication, EA assessment, EA performance measurement, and EA feedback.
Benefits and Challenges
What are the benefits of enterprise architecture as strategy?
Enterprise architecture as strategy can provide various benefits for an organization such as:
Improved business alignment: EA can help to align the IT capabilities with the business needs, ensuring that the IT systems support and enable the business strategy and execution.
Improved operational efficiency: EA can help to optimize the integration and coordination of the business processes, systems, and data across the organization, reducing complexity, redundancy, and costs.
Improved business agility: EA can help to increase the flexibility and adaptability of the IT systems to changing business requirements, enabling the organization to respond quickly and effectively to market opportunities and threats.
Improved business innovation: EA can help to enhance the innovation and learning capabilities of the organization by enabling experimentation, collaboration, and knowledge sharing among the business units and partners.
Improved business performance: EA can help to improve the overall performance and competitiveness of the organization by delivering value to its customers and stakeholders in a consistent, reliable, efficient, and differentiated way.
What are the challenges of enterprise architecture as strategy?
Enterprise architecture as strategy can also pose various challenges for an organization such as:
Complexity and uncertainty: EA can be complex and uncertain due to the dynamic and interrelated nature of the business processes, systems, and data across the organization. It can be difficult to define, design, implement, and manage a coherent and consistent EA that meets the diverse and changing needs of the business units and stakeholders.
Resistance and conflict: EA can encounter resistance and conflict from various sources such as the business units that may perceive EA as a threat to their autonomy and empowerment; the IT units that may perceive EA as a constraint to their creativity and flexibility; or the external partners that may perceive EA as a barrier to their collaboration and integration.
and time to develop and maintain, especially in large and complex organizations. It can be challenging to allocate and justify the necessary resources and time for EA, especially when there are competing priorities and demands from the business units and stakeholders.
Measurement and evaluation: EA can be difficult to measure and evaluate in terms of its impact and value for the organization. It can be hard to define and collect the relevant metrics and indicators for EA, as well as to attribute and quantify the benefits and costs of EA.
How to overcome the challenges of enterprise architecture as strategy?
The book Enterprise Architecture as Strategy suggests some ways to overcome the challenges of EA as strategy such as:
Establishing a clear and compelling vision and direction for EA that aligns with the business strategy and objectives, and communicates it effectively to the business units and stakeholders.
Engaging and involving the business units and stakeholders in the EA process, ensuring their participation, input, feedback, and support for EA.
Adopting a pragmatic and iterative approach to EA, starting with the core components of EA that are most critical and valuable for the organization, and gradually expanding and refining EA over time.
Leveraging best practices and frameworks for EA that provide guidance, structure, and standards for EA design, development, and deployment.
Establishing a dedicated and competent EA team that has the skills, knowledge, and authority to lead and manage EA in the organization.
Monitoring and evaluating the EA performance and outcomes regularly, using appropriate metrics and indicators, and adjusting and improving EA accordingly.
Conclusion
Summary of the main points
In this article, we have given you an overview of the main concepts and frameworks from the book Enterprise Architecture as Strategy by Jeanne W. Ross, Peter Weill, and David C. Robertson. We have also discussed the benefits and challenges of applying them in your organization.
We have learned that:
Enterprise architecture (EA) is the process of designing, planning, and implementing the structure, processes, systems, and data of an organization to support its strategic goals and objectives.
and agility, and create a competitive advantage in the market.
EA can be classified into four types based on the degree of integration and standardization of the processes, systems, and data across the organization: business modularity, core diagram, operating model, or enterprise standards.
EA can also be described by three stages of maturity that reflect the evolution and progression of the EA capabilities in an organization: business silos, standardized technology, or optimized core.
EA can be implemented by following a four-step approach that consists of defining the operating model, designing the core diagram, building the enterprise standards, and implementing the governance mechanisms.
EA can provide various benefits for an organization such as improved business alignment, operational efficiency, business agility, business innovation, and business performance.
EA can also pose various challenges for an organization such as complexity and uncertainty, resistance and conflict, resource and time constraints, and measurement and evaluation.
EA can be overcome by establishing a clear and compelling vision and direction for EA, engaging and involving the business units and stakeholders in the EA process, adopting a pragmatic and iterative approach to EA, leveraging best practices and frameworks for EA, establishing a dedicated and competent EA team, and monitoring and evaluating the EA performance and outcomes regularly.
Call to action and resources
If you are interested in learning more about enterprise architecture as strategy and how to apply it in your organization, we recommend you to read the book Enterprise Architecture as Strategy by Jeanne W. Ross, Peter Weill, and David C. Robertson. The book provides a comprehensive and practical guide on how to create a foundation for business execution with EA.
You can download the PDF version of the book for free from this link: https://www.researchgate.net/publication/228127836_Enterprise_Architecture_As_Strategy_Creating_a_Foundation_for_Business_Execution
We hope you have enjoyed this article and found it useful. If you have any questions or feedback, please feel free to contact us. We would love to hear from you!
FAQs
What is enterprise architecture?
processes, systems, and data of an organization to support its strategic goals and objectives.
Why is enterprise architecture important for business strategy?
EA is important for business strategy because it enables the organization to align its IT capabilities with its business needs, optimize its operational efficiency and agility, and create a competitive advantage in the market.
How to create a foundation for business execution with enterprise architecture?
The book Enterprise Architecture as Strategy proposes a four-step approach to create a foundation for business execution with EA: define the operating model, design the core diagram, build the enterprise standards, and implement the governance mechanisms.
What are the benefits of enterprise architecture as strategy?
EA can provide various benefits for