Part 3: Lecture 4a - Operating Model Flashcards
When does IS application portfolios develop a Design Debt?
Lots of firms have an emerging business problem that leads to the need for better data, systems, etc. That results in a project proposal and an IT project portfolio which results in new applications that can support or solve the business problem. This is what regular IS experts do and the outcome is a design debt.
How can EA contribute to a lower design debt and lower complexity?
Emerging business problems is one of the internal drivers for EA. Architecture of the organization, processes, applications, data and technologies is the norm of set of models for a good IT project proposal and a good IT project portfolio. This leads to an IS application portfolio with lower deign debt and lower complexity.
What is a good project proposal?
A good project proposal takes into account the enterprise architecture models and guidelines.
What is a good IT project portfolio?
A good IT project portfolio is a portfolio that helps implement the enterprise architecture.
What are methods to achieve a good Enterprise architecture?
Zachman framework, Picture Approach, Ross & Weill
What is the difference between EA and IT project portfolio?
IT project portfolio is a set of projects that the firm currently executes and EA are the norms.
What is the vision of Ross & Weill?
Ross & Weill focuses on strategy analysis, choice and implementation.
Why limited the vision of Ross & Weill for the future?
It is based on findings in ‘large firms’ and only a few ‘early adopters’. Also it’s somewhat outdated (2006).
What is the network perspective of EA (McDonald)?
Linking internal processes and EA to strategic position and objectives. –> EA links strategy and implementation of different disciplines.
McDonald adds three models for implementing the operating model for EA at the business network level. Which three models are these?
- Value Network Diagram
- Capabilities Diagram
- Capabilities Blueprint
Explain EA as IT governance instrument.
EA positioned as an instrument, a management tool, to implement the business strategy.
Why should a firm do EA? Give three drivers of EA from organization theory.
- Division of labor and co-ordination: which people do which processes
- Centralization and decentralization: centralized division making or decentralized self-steering managers. Concentrated in one person or de-concentration over several teams.
- Standardization
What went wrong in firms without EA?
- Traditional IT architecture efforts are remote from business and it cost a huge effort to link IT to the business.
- Modeling for software development is not the same as modeling for understanding an organization.
You need to be able to link people with the architecture view of the firm.
How defines Ross & Weill EA?
As the organizing logic for core business processes and IT infrastructure reflecting the standardization and integration of a company’s operating model. –> Drivers for EA.
What are three indicators of trouble / business drivers for EA?
- Different parts of our company give different answers to the same customer questions: firm-wide information needed to make key product and customer decisions are not available.
- Our business lacks agility: every new strategic initiative is like starting from scratch. IT is consistently a bottleneck for change.
- There are different business business processes completing the same activity across the company, each with a different IT system. We don’t know whether our company gets good value from IT.
Explain the Apparent contradiction: Stable EA versus Agile EA of Ross & Weill
Ross & Weill state that tap-performing companies create a stable base in a fast changing business world. They digitize core processes and create the core processes into a foundation for execution. The stable foundation for execution makes them more agile and more efficient than their competitors.
What is a Foundation for Execution?
A foundation for execution is “routine tasks in a firm need to be automated so that they are executed reliably and predictably without requiring any thought”. What they basically say is that it’s linking the IT world with business core capabilities.
Explain EA as a strategy perspective and use the foundation for execution.
The foundation for execution is the IT infrastructure and the digitized business processes. Together automating a company’s core capabilities.
Why use a foundation for executing?
- Reduce complexity: there’s a growing comp-lexity in companies that fossilize operations
- Enhance business agility: this strategy necessity depends on the Foundation for Execution
- Fulfill needs for regulatory and legal compliance.
What are the three models which build a Foundation of Execution?
- Operation model: vision on organization by top management (what we are)
- EA Maturity model: creating maturity leadership. Translate vision into IT leadership (what we can do)
- IT Engagement model; the vision on IT governance. Realization of the vision “One project at a time” IT Governance
What is an Operating Model?
The operating model represents the necessary level of business process integration and standardization for delivering goods and service to customers. It describes how a company wants to thrive and grow.
Basically, the operating model is a choice about what IT project and business projects are going to be supported.
What are two growth strategies?
- Organic growth
- Acquisition driven growth
The operating model helps both
What are the two dimensions of the Operating Model?
- Business Process Standardization: choosing how a process will be executed regardless of who is performing the process and where it is completed.
- Business process integration: choosing how to link organizational units through shared data.
What are the four Operating models?
- Diversification
- Coordination
- Replication
- Unification
