Benefits of an Enterprise Architecture

Introduction

Welcome this series on articles on introduction in Enterprise Architecture. The series is structured into four articles, each of them discussing one of the following questions:

1. What is an Architecture?
2. What is an Enterprise Architecture?
3. Which benefits are provided by an Enterprise Architecture?
4. Which benefits are provided by Enterprise Architecture Frameworks?

The intended audience are all of you, being affected by the topic of Enterprise Architecture. Such as a decision maker, who wants to understand a topic being highly relevant for many companies and organizations. As well as an architect, who already knows about the complexity of Enterprise Architecture and is looking for conclusive and consistent suggestions on how to answer the questions mentioned before.

While the preceding articles aimed to provide a fundamental understanding of Architecture and Enterprise Architecture the current article is going to discuss the benefits of Enterprise Architecture.

Benefits and success factors

Based on the definition of Enterprise, Architecture and Enterprise Architecture it can be assumed that appropriate application of these concepts provides added value to the whole organization, to the complete enterprise. In my opinion, before discussing the benefits and added values a common understanding on the goals behind the application of the concept of Enterprise Architecture needs to be established.

Most companies, with the exception of some specialized consulting companies, do not apply Enterprise Architecture as a business on it self but as a tool set to achieve business goals. Consequently Enterprise Architecture needs to provide added value which enables the organization to achieve its goals more efficiently. More efficiently means

1. the added value shall outweigh the required Enterprise Architecture efforts and
2. the degree of the organizations goal achievement (e.g. growth, profit, etc.) in a defined period of time shall be measurable and higher as it would have been without the application of Enterprise Architecture.

Since Enterprise Architecture is more often than not no business case on its own, its added values shall be visible to the stakeholders of the organization which are directly providing value to the organizations business model. This applies as well to the daily business as to the management level.

This is why the following guidance shall be considered:

• Enterprise Architecture supports communication for all stakeholders by providing common syntax, language and methodology.
• Enterprise Architecture supports common structured planning for all stakeholders. This concept is related to the support of communication, since most humans have an individual understanding on structure. Enterprise Architecture supports the shift from individual understanding to common understanding.
• Enterprise Architecture supports long term usability and reuse of the achieved results.

Considering this guidance leads to an understanding that added value and benefits can be considered as those only if they are recognized within an organization or an enterprise. The visibility of benefits and added value is also one of the most decisive success factors for Enterprise Architecture within an organization. Without added value no acceptance and without acceptance even the best concept, the best methodology, has a hard time to be recognized as beneficial.

Consequently praxis has shown, that the benefits of Enterprise Architecture

1. shall be clearly pointed out
2. shall be defined in a way that they can be measured
3. shall be recognized as decisive success factors by all stakeholders.

Strong benefits which are also good practice and decisive success factors can be:

• more efficient business processes
• more efficient IT processes
• protection of investments (existing as well as future investments)
• more efficient procurement processes

Added value and success factors according to TOGAF

The reason why the success factors discussed before have been established is, that they do not focus on one group of stakeholders only but can be visible as added value from many stakeholders. Also, regarding a concrete context, they can be generalized as well as specified in more detail. This is important, since the success of Enterprise Architecture depends on the identification of all stakeholders with the related goals and results. Enterprise Architecture should be accepted as real benefit and not as a scientific end in it self.

Literature on the subject of Enterprise Architecture generally and TOGAF specifically support this concept by recommending an discussing some of the important and relevant added values.

More efficient business operation

In its paragraph on * … a more efficient business operation * TOGAF points to the following benefits and success factors of Enterprise Architecture

• Lower business operation costs,, meaning lower cost in the implementation of business processes. Key is the enormous benefit of adequately documented business processes. An Enterprise Architecture which enables an understandable documentation of business processes, including process demarcation and interfaces, is the source for a common sense regarding those processes for all stakeholders in the enterprise. More often than not it enables the identification of potential for optimization regarding the business operation.
• More agile organization and
• Business capabilities shared across the organization …
  Similar to the discussion on the costs common sense on business processes is key for an organization to use existing capabilities optimally. This applies specifically to the capability to reuse existing competence without the need to reinvent in other units of the organization.
• Lower change management costs,
• More flexible workforce as well as
• Improved business productivity.
  Also for those topics an appropriate documentation of business processes is key to achieve the added values discussed before. An adequate mapping of business process within an Enterprise Architecture enables the identification of how change might effect the processes. This supports not only the effective implementation of change if required but prevents also unpleasant surprise by unknown interrelationship between the business processes.
  By knowing the business processes members of an organization can identify synergies and prevent undesirable side effects.
  Appropriate and adequate documentation and communication of an Enterprise Architecture enable increased productivity which is the best justification for all the efforts in creation, maintenance and communication.

More efficient IT operation

In its paragraph on a more efficient IT operation TOGAF references the added value of Enterprise Architecture regarding IT processes. The following benefits are discussed:

• Increased portability of applications
• Improved interoperability and easier system and network management
• Improved ability to address critical enterprise-wide issues like security
• Easier upgrade and exchange of system components

Key benefits for IT operation are:

• The reusability and portability of IT applications without the limitations caused due to procurement limitations
• A better interoperability between IT systems and a more effective network management. Interoperability relates especially to compatible system interfaces and the capability of loss-free data exchange.
• An additional benefit discussed by TOGAF is the capability to address sensitive areas and incidents (e.g. IT- and cyber security incidents) within the enterprise more effectively
• The capability to update or change system components.

This can be explained by the proactive documentation of interrelationship and dependencies with an Enterprise Architecture which enables risk detection, prevention and minimization before system changes or upgrades.

Maximized efficiency of existing investments and minimized risk of future investments

Discussing … better return on existing investment, reduced risk for future investment the following statement is given:

• Reduced complexity in the business and IT

This statement is in my opinion misleading, since Enterprise Architecture can not reduce the complexity of things. However, what Enterprise Architecture can do is the transparent and appropriate documentation of the complexity of business and IT. This leads to better decisions for investment (e.g. the procurement of IT) as the decision would have been without Enterprise Architecture. This results in the achievement of a maximized return on invest regarding the existing business and IT infrastructure. An Enterprise Architecture focussing on the dependencies between processes and IT on the one hand side and the enterprise core processes and the supporting processes on the other hand side can support proper decisions on development, procurement or outsourcing of business and IT services. It also can show the effects on the enterprise. It should be understood that an Enterprise Architecture provides those aims not by its own, it needs to be specified regarding the focus and the goals and should be seen by all stakeholders as an important tool in achieving those goals.
Based on an appropriate understanding and application of Enterprise Architecture it can support the reduction of risk on investments and therefore support the reduction of operational costs.

…faster, easier and cheaper procurement

There is a close relationship between business- and IT-processes, added value regarding existing and future investments and the added values regarding the procurement processes and procurement organization in an Enterprise. In particular those added values can be identified as enablers for short term optimization. Also those added values can be measured directly. According to TOGAF procurement decisions will be easier and more effective since all required information is appropriately collected and visualized for all shareholders by a common methodology. The simplification of the decision making process leads to faster procurement. As far as the procurement processes follow the guidance and principles designed in the Enterprise Architecture new systems and services integrate seamlessly into the existing environment and will not be regarded as isolated silos harming the existing processes and systems. Appropriate documentation with a focus on services but systems enables an enterprise to apply its procurement processes to heterogeneous system- and service environment provided by various vendors.

Applying the benefits of Enterprise Architecture to procurement processes leads to significant cost decrease and the overall economic success of the Enterprise

Summary

This article discusses added value and benefits by appropriately and result oriented application of Enterprise Architecture within an organization. It is recommended to enable a common understanding of the concept of Enterprise Architecture and than to identify the benefits which shall be achieved. The following principles where provided:

1. Enterprise Architecture supports communication for all stakeholders by providing common syntax, language and methodology.
2. Enterprise Architecture supports common structured planning for all stakeholders. This concept is related to the support of communication, since most humans have an individual understanding on structure. Enterprise Architecture supports the shift from individual understanding to common understanding.
3. Enterprise Architecture supports long term usability and reuse of the achieved results.

Based on this understanding it was recommended that the benefits of Enterprise Architecture

1. shall be clearly pointed out
2. shall be defined in a way that they can be measured
3. shall be recognized as decisive success factors by all stakeholders.

In addition the major benefits o Enterprise Architecture as identified in TOGAF have been discussed in detail.

• more efficient business processes
• more efficient IT processes
• protection of investments (existing as well as future investments)
• more efficient procurement processes

Finally it shall be understood, that Enterprise Architecture is for most organizations no business on it self. It should be also understood that the added values discussed in the article are commonly accepted examples only, meaning that each Enterprise needs to identify and weight the desired benefits before using Enterprise Architecture as an appropriate tool to achieve them.

Based on the understanding on added value and benefits of Enterprise Architecture an other article will discuss the added values of Enterprise Architecture Frameworks.