Issue 3

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A Decade of Running Lean Impacts Business’ Ability to Recover – Implications for Enterprise Architects

While statistical indicators point to increased productivity and excess capacity from our current workforce, other sources caution against assuming any of that dynamic is sustainable over the next few years. Managing our way through an investment-averse business climate since 2001, significant labor reductions since 2007, and expected baby boomer retirement after 2010, we need to prepare our enterprise for significant cultural and environmental change. Though “running lean” is the new expectation for managing our businesses, we may be transposing expectations for current productivity levels with future state capabilities as the economy improves. Enterprise Architects will serve a unique role in helping our organizations navigate their way out of recession and into a sustainable growth model during the next economic recovery.

Future Research Topics in Enterprise Architecture Management – A Knowledge Management Perspective

Identifying, gathering, and maintaining information on the current, planned, and target states of the architecture of an enterprise is one major challenge of enterprise architecture (EA) management. A multitude of approaches towards EA management are proposed in literature greatly differing regarding the underlying perception of EA management and the description of the function for performing EA management. The aforementioned plurality of methods and models can be interpreted as an indicator for the low maturity of the research area or as an inevitable consequence of the diversity of the enterprises under consideration pointing to the enterprise-specificity of the topic. In this article, we use a knowledge management perspective to analyze selected EA management approaches from literature. Thereby, we elicit constituents, which should be considered in every EA management function from the knowledge management cycle proposed by Probst. Based on the analysis results, we propose future research topics for the area of EA management.

Using Enterprise Architecture for the Alignment of Information Systems in Supply Chain Management

Using information systems in supply chain management (SCM) has become commonplace, and therefore architectural issue are part of the agenda for this domain. This article uses three perspectives on enterprise architecture (EA) in the supply chain: The “correlation view,” the “remote view” and the “institutional view.” It is shown that the EA in the domain of supply chain has to meet quite a complicated set of demands. Drawing strongly Doucet et al. (2009) attention is given to the consideration on practical alignment and assurance strategies between EA and SCM. A case of an apparel company with a global supply chain using a bespoke ERP system for the supply chain support is presented and discussed. The case outlines potentials for an enhanced alignment and coherence between management, business processes and underlying information system; innovation is led by tighter integration with business partners, higher versatility in the adaption to formal business requirements and compliance. The case study suggests EA with Information Systems approach can work as a platform of comprehending and planning the changes of an enterprise on its own grounds.

Reducing Communication Overhead in Enterprise Architecture

Enterprise architecture (EA) is based on the principle that integrating strategic, business, and technology planning optimizes the use of information resources across non-technical disciplines and organizational lines. It offers a practical ability to make technical architecture a reflection of business intent. Achieving this top-down effect requires a clear entry point into EA for strategic decisions and efficient communication that translates strategic ideas into the EA components that drive on-going system development. Language differences along the architectural progression are barriers to implementing an EA program as a strategic initiative. The term friction captures the effect of language gaps on the quality of communication throughout the scope of EA. Friction is a primary determinant of the relevance of information-based capabilities to operational performance and its corresponding business outcomes. Minimizing friction is a primary goal of EA governance, achieved by a combination of EA repository assessment, tool selection, and methodology integration that harmonizes business intent across EA related disciplines. Analyzing the transformations that occur at communication boundaries suggests ways to overcome friction. Most possible solutions are limited by the fundamentally different skills required of specialized practitioners on either side of a boundary. Short of converting strategists into enterprise architects or vice versa the most practical compromise lies in adopting two dominant characteristics when expressing business strategy, tactics, and capabilities– a high degree of structure and semantics that require minimal translation along the system development path. This article defines friction and identifies its sources in an EA program. It outlines techniques for assessing the friction profile of an EA repository. Based on this profile, it suggests EA governance techniques that reduce friction and thus improve the usefulness of EA artifacts as enablers of effective communication along the strategy – implementation continuum. This article also identifies service strategy and design as an existing, mature, and technically relevant discipline that exhibits low friction across a long span of EA activities. The Information Technology Infrastructure Library (ITIL) makes a detailed and compelling case that business service management is a primary strategic asset1. The corresponding service management lifecycle provides a useful pattern for assessing the efficiency of transforming a business service into its architectural counterpart in the form of service oriented architecture (SOA). This indicates that service orientation is a useful point of departure for design of a tangible strategy for minimizing friction in an EA program.

Application Portfolio Rationalization in Large International Enterprises

Today, most of large and international enterprises have already enterprise resource planning, business intelligence and customer relationship management systems in place. Some of the enterprises have integrated their other business applications to these systems. Increased complexity and spend of IT have emerged companies to rationalize and consolidate their application portfolio. Rationalization can mean shutting down applications, replacing them, or modifying their functionality and usage across the organization. Major challenges in rationalization are enterprise level decision making and cost of cleaning activities. This case study provides an example of setting up application portfolio management in a large international enterprise that has expanded through years by mergers and acquisitions. The results show key performance indicators and objectives for such portfolio management. The general portfolio theories are not always applicable as such in real life circumstances, but when applied they provide solid base for application portfolio re-thinking in an organization. CIOs, controllers and application responsible professionals can directly apply the results in their daily work.