Define an EA Operating Model Realize the benefits

Define an EA Operating Model Realize the benefits of EA by balancing the need for controls with the desire for business engagement. Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with Info-Tech's products and services combine actionable insight and advice ready-to-use tools and templates that cover the fullrelevant spectrum of IT with concerns. and templates that cover the full spectrum IT concerns. © 1997 -2017 Info-Tech Group © of 1997 -2017 Info-Tech Research Group Research Inc. Info-Tech Research Group 1

ANALYST PERSPECTIVE Structure the enterprise architecture (EA) function with the value proposition in mind. Architecture groups often start practicing EA based on the path of least resistance, which often results in an inability to deliver on a set of promises of value. EA groups need to create an operating model that positions them to best deliver on those promises of value while embedding the architectural activities in the broader enterprise. Gopi Bheemavarapu, Director, CIO Advisory Info-Tech Research Group 2

Our understanding of the problem This Research is Is Designed For: This Research Will Help You: üCIO üHead of enterprise architecture üEnterprise architects üDomain architects – business, data, üOperationalize the EA practice and ensure that application, infrastructure, and security the group is best positioned to deliver the value identified in the EA strategy. üIntegrate EA activities into the broader organizational ecosystem to maximize value. üDevelop an architectural framework tailored to your organizational needs. üRight-size architecture governance that is aligned to organizational goals. This Research Will Also Assist: This Research Will Help You: Them: üHead of PMO üSolution architects üIT application owners üBusiness process owners üOutline their roles and understand the expectations within the larger EA function. üEstablish how the EA group will interact with the rest of the organization. Info-Tech Research Group 3

Executive summary Situation • Organizations have invested significant resources into EA programs that • • promise decreased costs, reduced complexity, or increased agility. To achieve the promised benefits, EA serves as a centralized decisionmaking entity, with a holistic perspective of the organization. EA tends to rely heavily on frameworks such as TOGAF and Zachman. Complication • EA makes enterprise-affecting decisions in isolation as a result of an • • inability to effectively engage organizational stakeholders. Even after deciding what services to provide, EA groups lack a rightsized methodology to complete the necessary activities. An overreliance on frameworks makes it more difficult for EA to adapt and be flexible to organizational changes. Get your EA program strategy right before making operational process changes. The benefits of an EA program are only realized when the various operating model components enable the goals and objectives of the program. • Create a balance between governance and motivational aspects when addressing structure and stakeholder relations. • Beginning the project based on a framework is a good starting point, but it must be tailored to your organizational context. Resolution • • • EA program placement and structure matters. Ensure that it is best positioned to deliver enterprise value. Create an engagement model to seamlessly integrate or embed EA activities into organizational processes. Adopt a governance approach that encourages collaboration without being overly intrusive. Configure an architecture development framework that works best for your organization while adapting the best practices and industry frameworks. Increase your chances of success by creating a practical operational plan. Info-Tech Research Group 4

Business strategy first, EA strategy second, and EA operating model third Business Strategy EA Strategy “Why does our enterprise exist in the market? ” “What does EA need to be and do to support the enterprise’s ability to meet its goals? What is EA’s value proposition? ” EA Operating Model “How does EA need to operate on a daily basis to deliver the value proposition? ” Info-Tech Research Group 5

Key challenges that organizations face in improving EA maturity An effective EA operating model addresses these common challenges and unlocks the full potential of EA. Percentage of organizations that report said element as an issue. Formal Process Organization Structure Performance Measurement 7% 18% 24% Staff Competence 40% Strategic Alignment 40% Source: Burns, 2009 Info-Tech Research Group 6

Both business and EA operating models seek to address how the entities achieve their set goals EA Operating Model Business Operating Model “How do we compete? ” “How do we add value? ” “How do we interact? ” “How do we position our EA function? ” “How do we organize and staff EA? ” “How do we interact with the organization? ” “How do we ensure awareness of and adherence to architectural standards? ” “How do we deliver EA services? ” Info-Tech Research Group 7

Elements of an EA operating model EA Function Design • Placement of the EA function relative to the rest of the organization. • Roles and responsibilities needed to deliver EA services. • The staff to fill those roles and their needed competencies. EA Engagement Model • Integration of EA processes into existing organizational processes. • Identify and define stakeholder interactions. Architectural Governance • Assess current governing bodies and identify points for architecture governance (architecture review boards). • Define EA policy and the architectural review process. Architectural Development Framework • Tailor an architecture development process to your organizational context. • Analyze and select a minimum-viable set of architectural views that guide decision making. Operational Plan • Draft a communication plan to engage with stakeholders. • Create a change management plan to efficiently operationalize the EA operating model. Info-Tech Research Group 8

An insurance company created an operating model to kickstart a successful EA function CASE STUDY Industry Insurance Source Info-Tech Situation Life Inc. , a major insurance company in North America, was looking to overhaul its business processes and modernize IT assets. The CIO gave the mandate to a senior IT leader (Head of EA) to set up an EA program and lead the transformation effort. The EA operating model covers the following components: EA organization structure Complication The organization had two previous failed attempts at starting an EA program because the guidance provided was top-down heavy and did not take into consideration practicalities. As a result, there was skepticism over the merit of the initiative. Furthermore, the previous attempts were mostly focused on technology transformation and were missing the business perspective. The organization did not have the internal skillsets to start a business-focused EA program. EA engagement model EA governance Architecture development framework Resolution Info-Tech worked with the organization to build an EA operating model that included business architecture and provided a platform to engage both business and technology stakeholders. Skill gaps were identified and talent was recruited to plan the business transformation. Since the operating model was built to be well grounded and tailored to the organization, the engagement levels were high, which resulted in a successful transformation. Operational plan Legend Component falls into the scope of the case study Info-Tech Research Group 9

Metrics will help you connect changes to the operating model to business outcomes Business Performance • Increase the number of EA-enabled innovations that led to common shared solutions by X in the fiscal year. • Increase the number of business processes (or business capabilities) that utilize EAenabled services in the fiscal year. IT Performance • Increase the percentage of enterprise strategic goals and requirements supported by IT strategic goals by X percent in the fiscal year. • Raise the satisfaction levels of business and IT executives with IT-related costs and capabilities by X percent. Reduced Risk • Improve the rate of timely publishing for new regulations that are reliant on EA services. • Decrease the number of overdue regulatory filings that are reliant on EA services by X. Customer • Decrease the average customer wait time when receiving replies on EA services by X (could be call wait time or in-person wait time). • Decrease the average handling time and average wrap-up time for EA service requests by X (could apply to customer service time or sales cycle time). Metrics adapted from COBIT 5: A Business Framework for the Governance and Management of Enterprise IT Info-Tech Research Group 10

Additional operational metrics will help you track the changes to individual operating model elements Governance • Decrease the number of exceptions to architecture standards and baselines applications by X percent in the next three years. • Number of identified gaps in models across architectural domains. Process • Increase the dollar value of project benefits realized that can be traced back to EA involvement. • Increase satisfaction with architecture program by X percent. Organizational Structure • Number of people trained in the EA methodology and tool set. • Percent of staff whose architecture skills are sufficient for the competencies required for their role. Metrics adapted from COBIT 5: A Business Framework for the Governance and Management of Enterprise IT Info-Tech Research Group 11

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