Digital upends old models. 6. There are several dimensions to scope. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. tab. Empirical evidence is required because there are currently very few benchmarks companies can use to build a world-class IT organization and governance program. A formal definition of EA from the Federation of Enterprise Architecture Professional Organizationsstates: This stems from the formal definition of architecture provided by the Institute of Electrical and Electronics Engineers(IEEE-1471-2000): Typically, this is three to five years and coincides with the budget planning cycle in large organizations. Organizing for enterprise architecture success Improve the contributions of your enterprise architecture functions. To this point, there has been little agreement, but to help answer these questions, a team from McKinsey and colleagues at the Henley Business School is undertaking a survey of IT professionals and senior IT and business leaders. Organize Your Enterprise Architecture Effort: Planning for EA Success Published: 18 September 2008 ID: G00157426 Analyst(s): Deborah Weiss, Bruce Robertson Summary Enterprise architecture … Using those findings as proof points, EA departments and other stakeholders in the business and in IT can assess and agree upon specific key performance indicators that are aligned with the company’s overarching strategy. You will learn how to harness the power of Enterprise Architect … Informally, we’ve seen companies realize performance improvements when implementing one or several of the following ten principles. Information architecture . The Scope of Enterprise ArchitectureThe scope of an enterprise architecture establishes the range or extent that it needs to address. An enterprise architecture (EA) is a conceptual blueprint for conducting enterprise analysis, design, planning, and implementation, using a comprehensive approach at all times, for the successful development and execution of strategy. Enterprise Architecture helps large or growing organizationsmerge their IT infrastructure with their business goals. Finding EA leaders can be challenging. Enterprise Architecture Planning # Integrate and consolidate enterprise architecture # Analyze enterprise and IT strategy $ derive implications on enterprise architecture # Analyze … The goal is to help create some consensus—specifically, to create a fact-based perspective on best practices in EA governance and the degree to which these practices contribute to successful digital transformations. What makes for world-class organization and governance of corporate IT systems? According to Marcus Blosch, Vice President Analyst at Gartner: “By 2021, 40 percent of organization… Many offer CPE credit. This approach is useful for ensuring that all perspectives are heard and that all system requirements are accounted for. This cynicism comes from what seems to be the common life-cycle of enterprise architecture … © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. For instance, there is likely no need for a central EA department for a financial holding company that owns a telecommunications company and a retail bank. Even a set of just ten applications could have hundreds of interfaces among them and would need to incorporate hundreds of process steps and elements of the enterprise architecture. Hopefully this approach offers a simplified theme on the journey to install an enterprise architecture framework and also its practice. 2. Please use UP and DOWN arrow keys to review autocomplete results. The EA department exists to regulate processing activities among business groups; the nature of its work is to assess and account for varying system and process requirements across the company. This practice promotesthe translation of strategies into understandable, clearly defined procedures,processes, and technological requirements. It's an easy concept to define, but more difficult to implement effectively. Please click "Accept" to help us improve its usefulness with additional cookies. The EA department should keep it simple. Welcome to the Enterprise Architect User Guide. The EA department should keep strategy-related tasks separate from operational ones. The organization of enterprise architecture should reflect the organization of the business. Corporate strategy insights for your industry, Explore Corporate strategy insights for your industry, Financial Services Regulatory Insights Center, Explore Financial Services Regulatory Insights Center, Explore Risk, Regulatory and Compliance Insights, Explore Corporate Strategy and Mergers & Acquisitions, Customer service transformation & technology. The EA department should collaborate closely with the business and the IT organization. All rights reserved. ... provide a way to organize … The company should invest in EA leaders. 2. Event-Driven Architecture is emerging as a key cornerstone enabling modern enterprises to operate in real-time, adapt to changes quickly, and make intelligent business decisions. Unleash their potential. 9. The organization of enterprise architecture should reflect the organization of the business. For all the big-picture work they do, EA departments can also end up taking over immediate tasks from the business and the IT department—for instance, helping the supply-chain group build the business case for undertaking a large IT-transformation project or helping the IT group manage a systems-migration project. Enterprise Architecture. Different business units may interpret elements of the enterprise architecture in different ways, which has the potential to create communication issues. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Press enter to select and open the results on a new page. When we talk about repository structure – the heavyweight users tend … ... goal oriented self organizing behavior — Enterprise Architects often refer to goals and measures but … Let’s explore enterprise architecture and how it’s vital to business growth. Some are focused on continually measuring IT performance and adjusting business processes and systems as needed. The purpose of enterprise architecture … Use minimal essential Enterprise architecture applies architecture … Think of an enterprise as a collection of organizations that have a common set of goals in delivering products or services to their market. Perhaps even more important, the greater responsibility may help the EA group attract the operations and leadership talent it needs to design and support IT systems effectively. 1. The company should keep accountability for elements of the enterprise architecture in one group. The survey data we plan to collect may inspire other insights and can inform our understanding of the ten principles discussed in this article. 1. As it turns out, I can get pretty cynical about enterprise architecture. 8. These people do not need to be experts in coding or supply-chain planning or store operations, but they do need basic knowledge of all those things—and more. The enterprise architecture time extent identifies the planning time horizon. The perception in many companies is that the EA department can have only limited impact on overarching corporate initiatives, particularly compared with other technology-oriented groups (application development, for instance) that tend to have bigger budgets and direct responsibility for core operational areas. This paper introduces an assessment model to help enterprise architecture … The main rationale for doing this is that the company anticipates only limited synergies between business groups. Our multi-disciplinary approach and deep, practical industry knowledge, skills and capabilities help our clients meet challenges and respond to opportunities. Enterprise Architecture Defined. The company should analyze and measure the effects of enterprise architecture on the business. Do you know what to expect from enterprise architecture? An effective information architecture … Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. In one bank, for instance, the IT department and the business were working with two different capability maps that were only loosely related, and no one person was assigned to merge them. That’s because the individuals who take on EA-management responsibilities need a combination of deep smarts in business strategy and expertise on IT trends and technologies, integration patterns, business-process steps, and running a closed IT environment. Enterprise Architecture (EA)is a way of organizing the operations and structure of a business. Clearly, pursuing any of these success factors would provide a great start for today’s technology leaders, but to what degree do each of these ten points resonate? We use cookies essential for this site to function well. The scope of enterprise architecture … TOGAF – The Open Group Architecture Framework (TOGAF) is a proven methodology to help enterprises define and organize business requirements and align them with IT goals. tab, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Something went wrong. Most companies have a dedicated enterprise-architecture (EA) department that oversees the entire systems architecture, including business processes and IT infrastructure, and helps establish technology-enabled processes across business units so companies can deliver goods and services effectively. Archived recordings can be accessed anytime. This paper introduces an assessment model to help enterprise architecture (EA) stakeholders – including senior executives, business unit leaders, CIOs, IT executives and architecture professionals – build a common understanding about what enterprise architecture can do for them, and most importantly, what they should do to better exploit EA’s potential. Do you know what to expect from enterprise architecture? Here we offer our latest thinking and top-of-mind resources. Managing complexity in enterprise architecture is challenging not because of the number of elements within a system, but because of the number of connections between and among those elements. Please try again later. The EA … It is in the best position to oversee and help implement any proposed changes to the IT architecture. “An enterprise architecture (EA) is a conceptual blueprint that defines the structure and operation of organizations. Our flagship business publication has been defining and informing the senior-management agenda since 1964. In fact, trying to harmonize the technologies and processes across these very different businesses would likely create more inefficiencies than solutions. Having an information architecture strategy is an important part of successfully implementing an enterprise content management solution. So which approach is right? Enterprise architecture defined is a method of organizing a business to be successful. an assessment model for the basic roles of EA. hereLearn more about cookies, Opens in new Enterprise Architecture, Solution Architecture and Software Architecture. Hence, a centralized enterprise architecture is usually the preferred option. This is often because of the mix of skills required by the typical team member in an EA group. In a perfect world, the EA department would be able to show the impact of the work it is doing by relying on a series of key performance indicators that are linked to higher-level profit-and-loss objectives, anchored in operational tasks, and not dependent on contributions from outside the department. In our work with large global organizations and in our conversations with senior IT leaders across multiple industries, we’ve heard anecdotal evidence supporting all those beliefs and more. The role of enterprise architecture is to provide decision support, in the context of the enterprise strategy, for the use of resources (including processes and procedures) in the enterprise. Still, staffers in EA groups should strive to communicate their work effectively—not just to business units but all the way up to the board level. Enterprise Architecture is sociological, biological, linguistic, and metaphysical. When it comes time to implement new technologies or IT-enabled processes, most companies tend to bring all relevant stakeholders to the table. Would you like to learn more about our Business Technology Practice? Otherwise, the policies and guidelines the EA department develops may never gain traction across the company. Some companies, however, have opted to divide responsibilities for enterprise architecture among business units. Enterprise architecture (EA) as practiced in federal government agencies distinguishes among enterprise, segment, and solution levels of architectural analysis. EA leaders can facilitate a balance between short-term and long-term tasks by dedicating a subset of team members to perform continual pulse checks on the current architecture and assess how it should develop over the next three to five years. For the technology part of the architecture, a business-oriented structure often makes less sense, as much of the technical infrastructure of an enterprise cuts across business or information domains. And some companies say good governance can happen only if they have empowered EA leaders who promote collaboration and accountability among teams in IT and business functions. The broadest is enterprise architecture, which encompasses the entire organization. But not all companies agree on what constitutes best practice in EA management. But when disagreements occur, those around the table will tend to deflect blame onto the EA department and absolve themselves of responsibility—particularly when multimillion-dollar IT infrastructure updates and system replacements are at stake. The work of the EA department is conceptual in nature. This translation process is consideredby many to be EA’s greatest strength. “Event-driven architecture … Reinvent your business. Our conversations with EA professionals suggest that most are still focused inward; they tend to spend twice as much time talking with suppliers, for instance, as they do with C-suite and other business leaders. collaboration with select social media and trusted analytics partners As the members of the EA department immerse themselves in making sense of these details, they commonly become isolated from the rest of the organization. A retailer’s e-commerce division, for instance, would likely require certain digital capabilities that are less relevant for the retailer’s physical stores, and the EA group could anticipate the potential system interdependencies and incompatibilities. Explore challenges and top-of-mind concerns of business leaders today. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. We'll email you when new articles are published on this topic. Connect with us via webcast, podcast, or in person at industry events. People create and sustain change. Teams of system architects and software developers are charged with designing complex technology frameworks, the success of which may hinge upon multiple interdependent criteria—for instance, different types of input data, myriad business processes, time and talent required for delivery of software and services, overall business objectives, and scope of individual IT projects. To participate in the enterprise-architecture survey, please visit easurvey.org. For many EA staffers, being seen as a valuable contributor to the bottom line may be more of an incentive than receiving incremental monetary rewards. The result is typically a comprehensive system map, with lots of boxes, dotted lines, and labels in small font sizes—information that addresses all the requirements but is almost impossible for the IT organization and the business to interpret. Join us for upcoming webcast events. our use of cookies, and How can IT and business leaders determine the best way to combine and weight each of these factors, given industry context? KPMG does not provide legal advice. Most transformations fail. This guide provides information on how to use the tools, features and capabilities that have made Enterprise Architect the tool of choice for Enterprise, Business, System, Standards and Technology modeling worldwide. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Identify your business questions. There is no simple formula for measuring absolute impact, but one feasible approach might be to analyze the effects of enterprise architecture within a small pilot project, using business-specific metrics that account for interdependencies—for instance, how many applications and how many point-to-point interfaces are involved in the project, how many applications are demonstrating overlapping functionally, what portion of the overall application-development effort is dedicated to integration testing, and whether management tasks are easier and less costly as a result of the pilot project. Enterprise architecture (EA) is the definition and representation of a high-level view of an enterprise‘s business processes and IT systems, their interrelationships, and the extent to which these processes and systems are shared by different parts of the enterprise… ... program and enterprise architect provide the legal & organizational boundaries and principles this is a way how to organize … 7. Participation is free, and results will be shared with all respondents. And as new technologies emerge, how will these success factors change? With technology driving the business strategy, companies must rethink how they approach IT to attain sustainable growth in the ever-changing marketplace. The next two zero in on specific components in solution and infrastructure architecture. The first thing I do with a client is discuss the questions that are … Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. 5. Enterprise architecture … Enterprise architecture (EA) is "a well-defined practice for conducting enterprise analysis, design, planning, and implementation, using a comprehensive approach at all times, for the successful development and execution of strategy. Never miss an insight. 10. Increasing enterprise architecture’s impact has clear strategic benefits: A retail organization case study is included. The company should be clear about who is accountable for EA decisions. The company should use one tool to rule all elements of the architecture. As a result, members of this group can be plugged into any project and hit the ground running. Processes were inefficient; there were duplicate efforts in some areas and tasks going undone in others. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities. To thrive in today's marketplace, one must never stop learning. The company should give the EA department approval rights. Select topics and stay current with our latest insights, Ten practical ideas for organizing and managing your enterprise architecture. Learn about Zachman Framework – The Zachman Framework is a formal and structured view and definition of a given enterprise. To manage these interconnections effectively and efficiently, the EA department must deploy one consistent operating model and a single management tool throughout the entire company—for instance, visualization software that can provide a comprehensive diagnostic view of the landscape, or a means by which to track project portfolios. Enterprise architecture is about how to organize, govern, and utilize common process and product platforms while still allowing business units or departments to maintain some autonomy. 3. The Zachman Framework uses a 36-column matrix to help organize your company’s enterprise architecture and lend insight into your organization’s IT assets. They can set joint targets and continually adjust them as corporate and IT strategies evolve. Improving business performance, turning risk and compliance into opportunities, developing strategies and enhancing value are at the core of what we do for leading organizations. Have the modelers in mind. cookies, Nine questions to help you get your digital transformation right, Organizing for digital acceleration: Making a two-speed IT operating model work. 4. As mentioned previously, the work EA departments do is complex and sometimes confusing to the rest of the organization. Tune in to KPMG Advisory podcasts to hear perspectives on today's business issues. Flip the odds. An enterprise architecture (EA) is a conceptual blueprint that defines the structure and operation of organizations. Enterprise architecture is a different topic, how to organize multiple applications in an enterprise into a coherent whole. Find out what KPMG can do for your business. But implementing clear accountability, establishing lean processes, and defining who has the final decision rights increase the likelihood that EA departments will be perceived as supporters of, not obstacles to, business growth. 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