Strategic architecture

Strategic ArchitectureBas van Gils <[email protected]>

Strategic ArchitectureBas van Gils <[email protected]>

Strategic Architecture 2

The name of the gameThe name of the game is communication! A quick overview of tools and techniques that help

Setting the sceneWhat is meant by strategy and architecture

Strategic architectureHow an architecture approach helps to add value in organizations

Resources & contact informationReferences, links and contact information

Agenda

In this section a high-level overview of strategic management and architecture is given. Each discipline is introduced after which typical questions are discussed and frameworks / models presented.

SETTING THE SCENE


Strategic Management


Strategic management is the discipline concerned with the strategy of an organization. It is mainly concerned with positioning the organization with respect to its environment

Goal: meaningful survival of the organization by aligning it to its environment

Process: the process of strategizing can be both planned or incremental, rational or intuitive.

Documentation: strategies may be documented in a strategic plan. This does not hold for the incremental perspective where a “pattern of decisions” may be recognized in hindsight

• What is our product offering?• With which activity system and resources base

do we realize this product offering?• What markets are we in?• What is our competitive advantage?• Should we strive for synergy between business units, or

optimize market responsiveness?• Should our strategic processes be logical and planned, or

creative and incremental?• Should our strategic processes be bottom-up or top-down?


Questions for strategists


In strategic decision making, there is a natural tension between an inside-out perspective (building on your own strengths) and an outside-in perspective (look for

opportunities in the environment and adapt the business system)


For multi-business firms, there is a tension between maximizing responsiveness to the markets for each of the business units at the cost of synergies or vice versa.


Porter’s value chain model is the model for analyzing the chain of value adding / supporting activities of an organization.


In positioning a product offering (or set thereof), firms may adopt a different approach.


The traditional 5-forces model (Porter) and the PEST-drivers can be used to analyze the relation of the organization to its environment

Enterprise architecture


Enterprise architecture is the discipline concerned with the constitution of the organization. It answers the question: how should we organize ourselves?

Goal: there are many goals for `doing architecture’, revolving around the question how we should be organized (and how to get there)

Process: many approaches have been proposed for doing architecture. A common trait is the rational, planned approach that is taken

Documentation: every (organization) system has an architecture, whether it is documented or not. Architecture documentation tends to come in the form of models and principles

• What products and services do we offer to our customers, and via which channels?

• How and where do we realize these products and services?

• How is our organization structured, and who performs/ is responsible for what?

• What information is used by whom, and who is responsible for managing this information?

• What IT support do we need, and which IT do we currently have?

• Is our current organization efficient, or should we reorganize? How? In what phases? Who are the stakeholders?


Questions for architects


StrategicArchitecture

SegmentArchitecture

CapabilityArchitecture

An architecture approach can be used at different levels of an organization. The TOGAF standard distinguishes between strategic level, segment architecture, and capability

architecture


View-points

Process Language

Enterprise Continuum, Repository, Reference Models

Enterprise Continuum, Repository, Reference Models

ArchiMateTOGAF

An architecture approach / framework consists of both a process and a language. TOGAF and ArchiMate are complementary open standards that are both maintained by

the Open Group


The TOGAF standard consists of six components of which the Architecture Development Method (ADM) is the core. The Architecture Content Framework can be mapped onto

the ArchiMate language


ArchiMate is the defacto architecture modeling language at the enterprise level. It covers the business, application, and technology levels of an organization. Recent

additions cover the implementation/migration and motivation domains.


The ADM is the core of TOGAF. This process is iterative and incremental and combines with ArchiMate. The original specification maps to phases B,C, and D. Extensions have

been developed for the other phases


The core concepts used in developing architectures are described in the architecture content framework. This figure shows ho the ArchiMate concepts cover all areas of this

content framework in more detail.

In this section the relation between strategic management and architecture is discussed. The goal is to show how the two disciplines can reinforce each other.

STRATEGIC ARCHITECTURE


Overlap in scope


Products & services

Products & services

ProcurementProcurement SalesSales ProductionProduction……

Supporting functions: HR, IT, …Supporting functions: HR, IT, …

Competitors Partners CustomersSuppliers

Strategy: aligning the organization w

ith its environment

Arch

itect

ure:

alig

ning

&

stru

ctur

ing

the

orga

niza

tion

Strategic management is concerned with external positioning, whereas architecture is concerned with internal design. The disciplines overlap in touching e.g. products and

services, as well as high-level structuring.

Overlap in models


In strategic management the Value Chain model by Porter plays an important role in assessing how an organization is organized

In enterprise architecture, the function model can be used to represent the same information

In strategic management, products and services relate the organization to its environment

In enterprise architecture, a product architecture represents the same information. Even more, details are provided with respect to their realization.

Business function

Business function Business role

Business actor

Business object

Business serviceContract

Business product

Business interface

Application service

Application functionData objectApplication component

Application interface

Infrastructure service Infrastructure interface

System softwareDevice

Node

Artifact

Value chain & function model


Example: service realization


Mutual reinforcement


In the light of long term, meaningful survival of the organization, strategists and architects should join forces in aligning the organization to its environment &

developing a suitable / effective organization.

StrategicManagement

EnterpriseArchitecture

• Provide guidance and direction

• Leading discipline• Set qualitative and

quantitative goals for the organization

• Give insight in architecture of org.

• Present “evidence” to guide decision making

• Develop solution alternatives for (future) strategic directions

• Impact analysis of choices

The name of the game is communication. In many cases, the relation between architects and strategists is hampered by misunderstanding. This section provides insight in aligning architecture processes to existing frameworks in the enterprise and improving communication.

THE NAME OF THE GAME


Conflicting worldviews


Architecture: Systemic perspective

The organization is a legal entity and uses resources to achieve (fixed) goals

The organization can be governed, changed etc. as if it were a machine

The organization is a `thing’ that exists on its own and has a clear boundary

Architecture: Systemic perspective

The organization is a legal entity and uses resources to achieve (fixed) goals

The organization can be governed, changed etc. as if it were a machine

The organization is a `thing’ that exists on its own and has a clear boundary

Strategy: societal perspective

The organization is a society of individuals forming alliances to achieve goals

Maximize freedom to adapt to changing conditions, goals, society; non-deterministic

No clear boundaries of the organization; employees are not “part of” the organization

Strategy: societal perspective

The organization is a society of individuals forming alliances to achieve goals

Maximize freedom to adapt to changing conditions, goals, society; non-deterministic

No clear boundaries of the organization; employees are not “part of” the organization

The predominant way of considering organization differs greatly between the fields of strategic management and enterprise architecture. This causes many communication

problems between practitioners.

Keeping options vs optimization


In order for the organization to survive, strategists keep their options open in aligning the organization

to its environment

In order for the organization to survive, strategists keep their options open in aligning the organization

to its environment

In order to function, an organization must be organized. Architecting implies creating a structure

and therefore limits strategic options

In order to function, an organization must be organized. Architecting implies creating a structure

and therefore limits strategic options

Dialog instead of debate


Like many practitioners, architects tend to have a natural reaction to “want to be right”Like many practitioners, architects tend to have a natural reaction to “want to be right”

Being right is less important than meaningful survival of the organizationBeing right is less important than meaningful survival of the organization

Rather than debating who’s right (debate), communicate and help! Without communication there is no alignment between strategy and architecture

Rather than debating who’s right (debate), communicate and help! Without communication there is no alignment between strategy and architecture

5 commandments for architects


11 Be relevant: make sure that what you do adds value to the organization. A nice architecture (drawing) is nice, but no more than that!

22Be prepared: make sure you know what you’re talking about. Do the work. Gather information about the architecture of the enterprise, structure and store it for later reuse.

33Walk the walk and talk the talk: learn how to communicate in the language of the people you’re helping. Answers to questions and a summary of findings may be of more use to strategists than the models on which they are based

44Less is more: at the strategic level of an organization, detailed architecture models and diagrams contain too much information. Condense the information, provide guidance and insight (and be prepared to follow up!)

55Ask and inspire: improving communication takes commitment of both parties. It takes time. When things are unclear – ask for more information, and inspire strategists to join in the dialogue!

Example: BriteLite• BriteLite is a manufacturer of lighting

products based in the Netherlands. BriteLite currently has two production facilities in Veghel and Dordrecht. Traditional light bulbs will disappear in the next 5-10 years.

• BriteLite’s strategy therefore is to actively promote LED lighting systems and phase out production of traditional bulbs.

• The Architectecture department is asked to come up with a roadmap for the organization to make this happen in order for marketing to come up with new campaigns in line with the new strategic direction



Step 1 - analysisA first step for the architects is to analyze which business functions are executed at

which locations. IT is only in Dordrecht, Marketing, Sales, HR, and Procurement is only in Veghel. Productsion and Logistics are at both locations


Proposition – phase 1In the first phase, production capacity in Dordrecht is used to continue production of

old bulbs. New products are developed in Veghel.


Proposition – phase 2In the second phase, both facilities produce LED-products.

All “old” production capacity related to light bulbs is phased out

The advice


Architects advice to do a phased migration. Further analysis shows that LEDs are relatively easy to customize. New IT will make it easier to track orders through

production and diversification (light solution consulting) is considered

After careful consideration, the proposal is accepted and

BriteLite enters a new market

After careful consideration, the proposal is accepted and

BriteLite enters a new market

• BriteLite is not a “real” company and the analysis presented here is greatly simplified

• Architectural analysis based on only business functions is very high-level. More detailed analysis includes among other things:

• Roles and responsibilities related to processes• Information use and management, both in

business and IT terms• Flow of information and goods• Application and infrastructure support

• TOGAF and ArchiMate combined can be used to add value to strategic decision making


Remarks

RESOURCES & CONTACT INFORMATION


Resources


B. De Wit & R. Meyer. Strategy Synthesis, Revolving Strategy Paradoxes to Create Competitive Advantage - Concise version. Thomson, 2006 . ISBN: 1408018993

The Open Group. TOGAF version 9. Van Haren Publishing, 2009. ISBN: 9789087535995

The Open Group. ArchiMate 1.0 Specification. Van Haren Publishing, 2009 . ISBN: 9789087535025

B. van Gils. Strategy and Architecture - Reconciling Worldviews. In: First NAF Academy Working Conference on Practice-Driven Research on Enterprise Transformation. LNBIP, vol: 28, pp: 181-196. Springer Verlag, 2009

Dr. Bas van Gils• Email: [email protected] • Web: http://www.van-gils.org/~bas • Blog: http://strategic-architecture.bpogspot.com • Twitter: http://twitter.com/basvg


Bas is an enterprise architect with a passion for business and IT. His first involvement in this field was in his studies in Information management and technology at Tilburg University. After receiving his MSc from Tilburg University (the Netherlands) and his PhD from Radboud University (Nijmegen, the Netherlands) he has continued to explore this field. His experience ranges from enterprise architecture to strategic management and leadership. A balance between adding value in practice and continuous learning is an essential ingredient of his attitude towards work. His ambition is to work on complex issues in the field of strategic architecture. Bas is currently active as consultant, researcher and trainer/lecturer for BiZZdesign.

mailto:[email protected]

http://www.van-gils.org/~bas

http://strategic-architecture.bpogspot.com/

http://twitter.com/basvg

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Strategic architecture