Case Study Enterprise Architecture at Best Buy June

Case Study: Enterprise Architecture at Best Buy June 8, 2004 Eric Dungan Wizard, Enterprise Architecture Center of Excellence eric. dungan@bestbuy. com (612) 291 -4626 Curt Abraham Sage, Enterprise Architecture Center of Excellence curt. abraham@bestbuy. com (612) 291 -4620

Agenda l Overview of Best Buy l Challenges that drive the need for Enterprise Architecture (EA) What is the value created by Enterprise Architecture? Agility: Model based, service oriented Enterprise Architecture at Best Buy Acknowledgements / Questions l l l

Best Buy 80, 000 Employees 763 Stores $24. 5 B Revenue

Challenges that drive the need for EA Consumer Expectations l Change with the marketplace l Understand & exceed customer needs l Enhance the customer experience across channels

Challenges that drive the need for EA Business Imperatives Four Company Strategic Priorities Customer Centricity Win the Home with Service Efficient Enterprise Win Entertainment

Challenges that drive the need for EA IS Challenges l Complex Interdependencies l New Architectures Web Services Architecture l Reducing Complexity l Scalability, reliability and availability Service Oriented Architecture

The Value Created by Enterprise Architecture Agility Architecture l Why did Best Buy create the Agility Architecture? Ask Sarah Winchester l Fact: Mrs. Winchester never had a master set of blueprints, but did sketch out individual rooms on paper and even tablecloths!

The Value Created by Enterprise Architecture Agility Architecture • Agility gives us a universal blueprint throughout the Enterprise to rebuild, add-on, or sunset parts of our house! Business Team IS Team Best Buy Retail Domination

The Value Created by Enterprise Architecture Agility Architecture • Helps business and IS work toward a common framework and roadmap • Identifies redundancies & silos Helps IS & business customers make more informed decisions Increases leverage with acquisitions and alliances Leverages knowledge management • • •

Enterprise Architecture at Best Buy Agility Enterprise Architecture l In the next few slides – Overview of the Agility Architecture Framework – Overview of the Agility Architecture Methodology – Impacts of Agility Enterprise Architecture at Best Buy

Enterprise Architecture at Best Buy Agility Enterprise Architecture Framework Proact Holistic Framework Business View REQUIREMENTS Business Market & Product Planners l Operational, Process, & Organizational Planners l Systems Planners l Technology Infrastructure Planners & Designers CAPABILITIES Systems View REQUIREMENTS l CAPABILITIES Operational View REQUIREMENTS Enterprise Architecture Models for… CAPABILITIES Technology View REQUIREMENTS CAPABILITIES Proact Business Transformation Toolkit® - Copyright 2004 Used with permission

Enterprise Architecture at Best Buy Agility Enterprise Architecture Methodology Proact Business Transformation Toolkit® - Copyright 2004 Used with permission

Enterprise Architecture at Best Buy Agility Reference Models Operations Reference Model Systems Reference Model Proact Business Transformation Toolkit® - Copyright 2004 Used with permission Technology Services Reference Model

Enterprise Architecture at Best Buy Agility Target System Architecture Target System Diagram System Information Exchange Diagram Proact Business Transformation Toolkit® - Copyright 2004 Used with permission System Family Information Exchange Diagram System Sequence Diagram

Enterprise Architecture at Best Buy Agility Migration Strategy Planning Target Architecture Current Architecture Project ~~~~~~~ Aligned with project approval & funding Roadmaps Aligned with planning & budgeting Portfolio ~~~~~~~ Investment Plans Project Plans Alignment with cross project dependencies (function, and schedule). Proact Business Transformation Toolkit® - Copyright 2004 Used with permission

Enterprise Architecture at Best Buy Impacts of Agility Enterprise Architecture l l l l Cost savings by getting alignment of capabilities Elevated role of Enterprise Architecture within Business and Operational planning IS department was re-organized around capability areas IS plans are aligned to Agility roadmaps IS capability leaders are aligned to Agility program Creates additional governance capabilities for IS IS technology services consolidated

Acknowledgements & Questions Acknowledgements IS and Business Leadership at Best Buy Enterprise Architecture Group at Best Buy Proact Business Transformation Inc. www. proact-ea. com Questions