Enterprise Architecture (2006) Flashcards
(17 cards)
Operating Model
Business proces integration and standardization for delivering goods and services to customers
Define an operating model to support business goals and strategy
Different from strategy: Strategy is ‘what’, operating model is ‘how, by whom, and with what tools’
* How a company implements business processes and IT infrastructure
* Is implemented at enterprise level, and different models can be adopted in different BUs
Key dimensions of Operating Model
Standardization
* Defining exactly how a process will be executed regardless of who is performing the process or where it is completed.
Integration
* Links the efforts of organizational units through shared data.
Diversification
- Low standardization and integration
- Few shared customers or suppliers
- Operationally unique BUs
- Shared services (often IT), but not integration
Coordination
- Low standardization, high integration
- Share customers, product, etc.
- Integration through customer service and transparency in supply-chain-processes
- Low standardization, as BU’s are operationally unique and demand unique capabilities
In JPMC: Shared data in AWM, and local flexibility in GenAI modules (Coach, PlanningGPT).
Replication
- High standardization, low integration
- Grant autonomy to business units but run operations in a highly standardized fashion
- The business units are not dependent on one another’s transactions or data, but on standardized processes and IT infrastructure which fosters global innovation and efficiency
Unification
- High standardization, high integration
- Integrated business units through shared customer data. Standardized processes support integration and increases efficiency
JPMC in implementing LLM Suite (centrally built) as standardized global platform. Shared security, compliance and risk-control.
Enterprise Architecture (EA)
The organizing logic for core business processes and IT infrastructure reflecting the standardization and integration of a company’s operating model
EA maturity
An enterprise’s ability to use EA to create value. The goal is business modularity.
Stage 1: Business Silos
- Maximize individual business unit needs or functional needs
- Minimal standardization and integration
- Local optimization and decisionmaking
- Limited IT governance
They struggle to:
* Share data = poor customer relations
* React quickly on changes in the market
* Implement new strategies are expensive
Stage 2: Standardized technology
- Consolidate and standardize IT infrastructure globally, but without changing business processes
- Shared IT platform to improve efficiency and decrease cost (limit the number of IT-solutions)
- Business processes are still silo = many different ways to do things / processes, but now on shared platforms
- Standardized in terms of IT-platform but NOT in business processes and also not integrated data.
Stage 3: Optimized core
- Standardized and integrated
- Shared core processes and data
- High efficiency and lower costs
- Missing flexibility = changes demand changes to the whole architecture
Stage 4: Business modularity
- Companies manage and reuse loosely coupled IT-enabled business process components to preserve global standards while enabling local differences
- API’s create integration and modularity
- Fosters innovation and quick adaptation, without disrupting processes and other modules.
- Decentralized decisionmaking with centralized governance
IT Engagement model
- The system of governance mechanisms assuring that business and IT projects achieve local and company-wide objectives
- Assigning responsibilities of IT-projects when changing EA.
- Align the company’s IT and business activities to ensure that value is generated from IT investments
- Helps leaders recognize and resolve their differences in accordance with companywide business objectives
Companywide IT governance
Engagement model
- Decision rights and accountability framework to encourage desirable behavior in the
use of IT - Establishes high-level goals and incentives
- Five IT-decisions
In JPMC:
* Governance is decided by committee
* GenAI is used through risk assessment and control
Project management
Engagement model
- Formalized project methodology, with
clear deliverables and regular checkpoints - Applies the best practices of company-specific project management tools and techniques to every major project, ensuring local project success.
In JPMC:
* Decentralized innovation under centralized control and governance
* Crawl-walk-run strategy
Linking mechanisms
Engagement model
- Processes and decision-making bodies
that align incentives and connect the project-level activities to the overall IT governance - Connects companywide governance and projects
- Ensure that, as projects move forward,
they reflect and inform the goals and priorities of all parties
In JPMC:
* Projects inform governance and architecture
* Alignment through AI-days were leaders and employees contribute to the EA
Core diagram
Visual representation of a company’s operating model and the EA that supports it.
One core diagram for each operating model.
