Module 6 Essentials of Enterprise Architecture Tools

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1 Process-Centric Service-Oriented Module 6 Essentials of Enterprise Architecture Tools Capability-Driven Understand the need and necessity for a EA Tool IASA Global - India Chapter Webinar by Vinu Jade Information Systems Strategy Advisor With Acknowledgement to Mr. Reed Taneja MEGA APAC & Gartner 2014 Assessment of Tools for EA

2 Agenda Process-Centric Service-Oriented Capability-Driven 1. Discuss what are EA Tools, what do they feature and High Level Requisites 2. Requisites of an EA suite 3. Challenges Tools focus 4. Recommandations and Strength and Weakness of Tools 2

3 What are EA Tools? Used effectively, EA tools enable organizations to meet the challenges facing business by capturing, integrating, and analyzing information to enable business decisions. The EA tool market is fragmented and has shown little change in the past year, with a few exceptions. Enterprise architecture (EA) tools are software applications targeted primarily at supporting the direct participants and stakeholders of the EA discipline in their strategically driven planning through to execution. Support for strategic decision making is provided through capturing vital enterprise context, along with content development and analysis capabilities across the business, information, technology and solution architectures. Quoted from Gartner

4 What does EA Tools Feature? EA tools capture, store, structure and analyze information pertaining to EA and present the information to enterprise stakeholders. The tools should facilitate the implementation of a business strategy focused on business outcomes and risk mitigation. The information must be presented to a variety of stakeholders set on transition-planning the future-state architecture across a number of viewpoints, including business, information, technology and solutions. This is done to enable business change that supports the direction and strategy of the organization while confronting many types of business disruptions. At a minimum, EA tools should integrate with project and portfolio management solutions to ensure the best investment mix of projects to execute on business direction, vision and strategy. Quoted from Gartner

5 High - level Requisites for an EA Tool EA tools must address the requirements of a variety of business and IT stakeholders in the organization, and the tools must contain: A repository that supports, at a minimum, the business, information, technology and solution viewpoints and their relationships. The repository must also support business direction, vision and strategy, as well as business disruptions. Modelling capabilities that support the minimum viewpoints of business, information, solutions and technology. Decision analysis capabilities, such as gap analysis, impact analysis, scenario planning and system thinking. Quoted from Gartner

6 High - level Requisites for an EA Tool Presentation capabilities that are visual or interactive to meet the demands of a myriad of stakeholders. Administration capabilities that enable security, user management and other tasks. Configurability capabilities that are extensive, simple and straightforward to accomplish while supporting multiple environments. Support for frameworks and standards, often used while providing the flexibility to customize the framework. Usability, including intuitive, flexible and easy-to-learn user interfaces (UIs). Quoted from Gartner

7 Agenda Process-Centric Service-Oriented Capability-Driven 1. Discuss what are EA Tools, what do they feature and High Level Requisites 2. Requisites of an EA suite 3. Challenges Tools focus 4. Recommandations and Strength and Weakness of Tools 7

8 1.Supply Demand, 2. Business IT, & 3. Strategic Execution Lets Derive the Requisites of an EA Tool BUSINESS CENTRIC CHALLENGES Must Have An Approach and Methodology for Business Strategy Modeling, helping in Agile Business and Agile IT. Value thru Strategic Planning? Improve the Supply & Demand Alignment (SAD) with improved Product Utilization, Leverage Levels(PULL) in market and meet Agile Customer Experience(ACE) Qualitative Domain modeling? IT & DATA CENTRIC CHALLENGES Technology Strategy ( IT inclusive and NOT conclusive!) to enable the consumer meet the product. - Logical Process Modeling? GRC CENTRIC CHALLENGES Operational Strategy for Support, Sustain and Succeed (ICE) with agile Technology enablement?,, with Governance and Process Model(GAP) Should We Adopt Enterprise Architecture Tools? Quoted from MEGA

9 Hence An Overview of EA Tool Requisites GOVERNANCE, RISK AND COMPLIANCE Solutions for Leaders of Assurance functions Risk, Control, Compliance and Internal Audit - to consistently manage the risk exposure of the organization in collaboration with the Business lines and the IT Function. BUSINESS AND OPERATIONS Solutions for Business Leaders to Analyse, Manage and Transform their Operating Model, in order to deliver on the Organizational and Strategic objectives of the company. IT AND DATA Solutions for IT Leaders to Analyse, Manage and Transform their IT Assets, in order to support the Business Model, contribute to Business Performance and navigate Digital Transformation. ENTERPRISE REPOSITORY Quoted from MEGA 9

10 Requisites of an EA suite CxOs Govern BUSINESS STRATEGY & EXECUTION Assurance Functions Control and Manage Risk INTERNAL AUDIT MANAGEMENT ENTERPRISE RISK MANAGEMENT COMPLIANCE MANAGEMENT Organization Design Analyse Assess - Improve - Transform Business and Operations BUSINESS ARCHITECTURE OPERATIONAL GOVERNANCE IT and Data ENTERPRISE ARCHITECTURE IT PORFTFOLIO MANAGEMENT Quoted from MEGA 10

11 One approach to key challenges 1 3 lines of defense integrated and consistent ERM Process Compliance Management Internal Audit articulated with Business Lines balanced with performance risk driven and streamlined Governance, Risk & Compliance BUSINESS IT & DATA 1 2 Execution of the Business Strategy Operational Governance, Risk & Compliance 3 Development of 6 Business Capabilities Digital Transformation Alignment and Agility of the IT Landscape Management of the Application Portfolio Transformation of Operating Model Analysis and Improvement of Business Processes Alignment of the Business-IT partnership Mitigation of the IT Risk Exposure Information Portfolio Management Solution Blueprint Quoted from MEGA 11

12 Agenda Process-Centric Service-Oriented Capability-Driven 1. Discuss what are EA Tools, what do they feature and High Level Requisites 2. Requisites of an EA suite 3. Challenges Tools focus 4. Recommandations and Strength and Weakness of Tools 12

13 Challenges 1. Challenges Tools focus a) Business & Operations centric b) IT & Data centric c) GRC centric 13

14 Business Centric Challenges GOVERNANCE, RISK AND COMPLIANCE BUSINESS AND OPERATIONS CHALLENGES 1 2 Execution of the Operational Governance, Business Strategy Risk and Compliance 3 Evolution of Business Transformation of the 4 Model capabilities Operating Model 5 Analysis and Improvement Alignment of the 6 of Business Processes Business-IT Partnership IT AND DATA Quoted from MEGA 14

15 Business Centric Challenges (1/3) 1 Execution of Business Strategy Multiple business lines Sophisticated strategies Complex organization Tools help CxOs to Design the business strategy and consistently Define its execution through organizational objectives, transformation programs and improvement projects. Design and manage a robust strategic planning process Align strategic intent, organizational objectives and KPIs Identify the strategic contribution of organizational assets Monitor the execution of strategy through programs and projects 2 Operational governance, Risk and Compliance Highly regulated environment Significant impact of risk High impact of non compliance Tools help Business Leaders to Ensure the compliance of their business practices with external/internal regulations and Manage the risk exposure of their operations in line with the risk appetite of the company. Manage the impact of regulations and policies on business operations Assess the business risks and the risk of non-compliance Implement preventive and corrective actions to mitigate risk exposure Comply with external/internal requirements through controls 15

16 Business Centric Challenges (2/3) 3 Evolution of Business Model Capabilities Fast changing business environment Complex business models Transformation too critical to fail Tools help Business Architects to Analyze actual capabilities of the organization, Make educated decision about changes needed to support new Business objectives and then Roadmap the development of capabilities through projects, processes and IT applications Understand the existing business capability landscape Identify capabilities required to support new business plans Alignment the Business & IT Roadmaps on the expected capabilities Review investments vs capability roadmap 4 Transformation of the Operating Model Merger & Acquisition Process Standardization Initiative Deployment of a major new IT System Tools help Business Leaders to Understand the impact of a change internal or external on existing operating models, Analyse the different potential implementation scenarios and Manage the organizational transformation toward the Target Operating Model Review operating model and understand existing implementation Identify and analyze potential transformation scenario Define potential target operating model and make decisions Analyse impact and communicate to facilitate change Quoted from MEGA 16

17 Business Centric Challenges (3/3) 5 Analysis and Improvement of Business Processes Tools help Business Architects to Analyze how the company s value chain delivers on customer s expectations, Review the performance of key processes, Explore the support they get from IT and Assess impact on key business informations. Analyse and drill-down processes, functions, IT and Data Manage business performance through KPIs Identify and simulate the improvement scenarios Numerous business processes Undocumented and unmanaged Looking for process improvement 6 Alignment of the Business - IT Partnership Complex and Heterogeneous IT Landscape IT and Business strongly intricate Major business impact of digital transformation Tools help Business Leaders to Identify the opportunities and fully Concretize the benefits of IT as a competitiveness factor and a source of differentiation. We help IT Leaders to Adapt Agilely IT Assets in order to Deliver business requirements, while guaranteeing that IT investments sustainably Align with the Strategy. Provide transparency on how IT supports business operations Increase business agility in safely analyzing impact of required IT changes Analyse IT contribution to business to better drive the IT Investment process Identify and assess the potential business benefits of untapped IT capabilities Quoted from MEGA 17

18 IT Centric Challenges GOVERNANCE, RISK AND COMPLIANCE BUSINESS AND OPERATIONS IT AND DATA CENTRIC CHALLENGES 1 2 Alignment and Agility of Digital Transformation the IT Landscape 3 Management of the Mitigation of 4 Application Portfolio IT Risk Exposure 5 6 Information Portfolio Solution Blueprint Management Quoted from MEGA 18

19 IT Centric Challenges (1/3) 1 Digital Transformation Industry with strategic IT role Risk of disruption by non traditional players Complex customers interaction and operating model Tools help CEOs or CIOs to Embrace digital transformation Digitization, Mobility, Cloud, Big Data, Social - by Analyzing organizational impact of digitally enabled change scenario and by Providing insight to support the associated business and IT transformation. Review scenario for digitally modified business Identify business or IT capability expected or impacted Analyse the impact on the existing organization and business model Plan the development/adaptation of capabilities and the organizational transformation 2 Alignement and Agility of the IT Landscape Heterogeneous IT Assets Various stakeholders Vendors, Outsourcers, internal team Multiplication of interfaces Tools help CIOs and IT Leaders to develop control over the IT Assets and dependencies Business, Application, Data, Infra - to safely Analyze the impact of project changes, to Enable IT rationalization and to Develop the business agility of the Information System. Get a full insight into the Information System and the component IT Assets Understand up- and downstream dependencies to analyze impact of change Measure and guarantee alignment of IT Assets on Business Priorities Support rationalization of IT capabilities and Technology standardization Quoted from MEGA 19

20 IT Centric Challenges (2/3) 3 Management of the Application Portfolio Large number of applications Investments limited due to growing maintenance cost Delegated or decentralized ownership of applications Tools help Head of Applications to manage a more and more complex Application Portfolio In House, Packaged Solutions, Shadow IT -, to identify opportunities for freeing investment capabilities and to make transparent IT investment decisions based on indisputable data. Build and maintain a precise application inventory, with IT and Business stakeholders Assess the portfolios vs numerous criteria such as cost, business, risk, technology Identify improvements, rationalization opportunities and compare scenario Develop the transparency of the IT investment Process based on reliable data 4 Mitigation of IT Risk Exposure Criticality of IT to support operations Multiplication of channels to access sensitive data Opened and integrated information system Tools help Head of IT Risks to manage and reduce the IT Risk Exposure of the organization, by analyzing the business impacts of IT Risks and by implementing a sound Risk Management Process for the IT Assets from Identification to Mitigation. Build the risk library, identify the IT Assets Assess risks, consolidate risk exposure and analyze the impact on business Implement and test preventive and corrective measures Monitor and Report on IT Risk Exposure and Business IT Risk Exposure Quoted from MEGA 20

21 5 IT Centric Challenges (3/3) Information Portfolio Management Diversification of products, channels, customer segments Multiplication of sources of data Master Data Management initiative Tools help Chief Data Officer to manage the portfolio of Information assets, to improve data alignment through business dictionary and logical models, to control the lifecycle of key data within the Business and IT processes and to identify potential risks. Understand context and nature of critical data and information sources in your organization Get a clear view on data lineage, dependency of applications and business processes Understand the end-to-end data flow and the potential risk to key data Manage and consistently design information layers, from Business to conceptual to physical 6 Solution Blueprint Complex solutions built over the time Difficulties in tracking of business requirements impacts Tumultuous Interactions User/IT Project team Tools help IT Project Leader to turn business scenario into transparent traceable solution requirements to ensure customer satisfaction. We help Solution Architect to blueprint solutions relying on the existing Information System and complying with the Architecture rules defined by IT Governance to protect the IT agility. Manage business needs and keep track of corresponding IT requirements, Streamline the design process by leveraging standards and industry best practices Support IT Governance and enforce architecture standards throughout the IT Projects 21

22 GRC Centric Challenges GOVERNANCE, RISK AND COMPLIANCE CHALLENGES lines of defense integrated and consistent ERM Process articulated with Business Lines 3 Compliance Management balanced with performance Internal Audit risk driven and streamlined 4 BUSINESS AND OPERATIONS IT AND DATA Quoted from MEGA 22

23 1 GRC Challenges (1/2) 3 lines of defense integrated and consistent Silo effect among Risk, Compliance and Audit Difficulties to build a consistent Risk reporting for the board Duplication of information, inconsistency of practices Tools help the Board to Implement and Guarantee a sound collaboration between the Assurance Functions through a common platform that centralizes key Risk & Control Data, supports consistent practices and consolidates reporting. Support collaborative workflow between Risk, Audit and Compliance Centralize risk & control data in a common secured repository Implement consistent practices to guarantee consistency of assessment Ensure the relevance of reporting based on a single framework 2 ERM Process articulated with Business Lines Multiple business lines Sophisticated strategies Complex organization Tools help the Risk Management Department to Assess the organization s exposure to risk, Ensure that risks are controlled appropriately by all departments and sustainably Include business lines as active stakeholders of the Enterprise Risk Management Process. Facilitates risk mapping, assessment, and control Support collaborative risk identification & assessment with Business Lines Analyse business impact analysis of risk on the organization Automate the consolidation and communication of exposure to risk 23

24 GRC Challenges (2/2) 3 Compliance Management balanced with Business Performance Multiplication of regulation and policies Frequent changes of business practices and regulations Increasing cost of controls, decreasing business agility Tools help the Compliance Department to Manage the regulatory and policy requirements of the company, Analyse their impact on the organization, Ensure a sound communication of standard practices and Test their implementation. Manage and maintain libraries of regulation, requirements and policies Analyse the impact on the Business, Operations & IT Collaboratively design and deploy practices balancing control and performance Assess and Improve the compliance to standard practices 4 Internal Audit risk driven and streamlined Highly regulated environment Multiplication and diversity of business practices Limited Internal Audit resources Tools help the Internal Audit to Improve the quality of the Audit process by enabling to Plan and Execute Risk Driven Audits, and to Increase the execution capabilities of the department through automation of activities and monitoring. Build risk driven audit plan and optimize allocation of resources Automate low-added value activities to increase audit capabilities Monitor execution to optimize effectiveness Follow-up on recommendation to guarantee improvement of business practices Quoted from MEGA 24

25 Agenda Process-Centric Service-Oriented Capability-Driven 1. Discuss what are EA Tools, what do they feature and High Level Requisites 2. Requisites of an EA suite 3. Challenges Tools focus 4. Recommandations and Strength and Weakness of Tools 25

26 Use tools for Assessment & Transformation Easily deploy a best practice portfolio management process End-to-end out-of-the-box process workflow Take advantage of out-of-the box reports and dashboard Business alignement Technology standardization Cost Analysis Transformation Roadmap

27 Gartner Recommends! Business-outcome-driven EA is a practical approach to supporting EA that starts and ends with a focus on delivering signature-ready recommendations to business and IT leaders for adjusting policies and projects to achieve target business outcomes, based on the business direction that capitalizes on relevant business disruptions (see "EA Practitioners Must Focus on Outcome-Oriented Deliverables," "Define the Business Outcome Statement to Guide Enterprise Architecture Efforts" and "Stage Planning a Business-Outcome-Driven Enterprise Architecture"). By putting business direction (strategy and operations), disruptions (opportunities and risks) and outcomes first in developing EA signature-ready guidance and actions, chief enterprise architects will become empowered to drive enterprise change, deliver high-impact value and lead the business forward in a competitive environment (see "Enterprise Architecture Leaders Focus on Business Impact"). Quoted from MEGA

28 Magic Quadrant Gartner 2014

29 mega

30 Software AG

31 Troux

32 IBM

33 End of Module 6 Questions, Discussions

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