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Importance of IT architecture in mitigating organisational risk, improving corporate governance

Part 3- Enterprise architecture framework

By Terry Ramabulana
Johannesburg, 06 Jun 2011

Overview and domains of enterprise architecture

The wide range of different domains and scope of enterprise architecture and its high complexity are characteristics of enterprise architecture. In the following a framework is introduced, which structures enterprise architecture in key domains and building blocks, in order to give a comprehensive view on all relevant aspects of enterprise architecture.

Comparing different classifications for enterprise architecture, naming and structuring of architecture domains differ, but the following key domains can be identified: the business, information system, and technology architecture. (The Open Group Architecture framework, TOGAF 2003. META Group 2002, for example, defines information architecture as a separate architecture; see also Foegen and Battenfeld 2001).

The architecture framework introduced in this document follows the basic structuring of TOGAF and details the domains in architecture building blocks to give a comprehensive overview of all constituents of enterprise architecture (figure 1). The three basic domains of the enterprise architecture framework are defined as:

* Business architecture
* Application architecture
* Infrastructure architecture

With this architecture definition in mind, it should be obvious that enterprise architecture is more than the collection of the constituent architectures. The interrelationships among these architectures, and their joint properties, are essential to the enterprise architecture.

Enterprise architecture framework

The business architecture describes the fundamental organisation and requirements of the business based on business strategy and objectives. It is composed of the four building blocks business model, organisational architecture, process architecture, and information architecture. The business model gives a high level view on the nature of the business in terms of products and services offered in the market, the value chain, business partners, market channels utilised, and the combination of resources and information for generating value add.

The organisational architecture describes the organisational design of the enterprise and the principal co-operation with customers and suppliers. The process architecture classifies and describes all processes of the business and their respective value adds. It is the core building block of the business architecture. Within Siemens, a reference process house was developed which describes standardised process architecture across Siemens (Siemens RPH 2004). The process architecture is classified in the core business processes customer relationship management, supply chain management, product life cycle management and the management and support processes.

The information architecture shows the logical structure of all information entities like products, business partners, logistic information, etc.

The application architecture gives an overview on all applications supporting the processes of the business with the building blocks enterprise applications, portal and information management platform, data repositories, and EAI services.

Enterprise applications are supporting the automation of business processes and can be assigned to the respective process in terms of their functional support.

The portal and information management platform is the universal access to all company information and knowledge. Portals are designed to specific user groups like customer, business partner, and employees. Data repositories are the physical storage of all relevant company data and provide an integrated view on product, customer and business partner, logistic or financial data. Enterprise application integration services provide the integration of applications and data across the company. Integration technology spans from message exchange, data exchange to process integration.

The infrastructure architecture, also referred to as technology architecture, comprises the software, hardware and network infrastructure required for operations of all applications. Infrastructure building blocks are basic services, workplace services, server systems and storage, and the network.

Basic services are essential applications providing a specific functional support, which are independent from business processes. Examples are communication services like e-mail or telco, directory or search services, and administration services like single sign-on or PKI. Web services are emerging services which transfer the concept of basic service to the Internet. Basic services are modules to be used in different applications.

Workplace services provide for presentation and work with information and for productivity support at the workplace (office desk, shop floor, etc). They comprise fixed and mobile devices at the client site and include basic office applications and browser. Server systems support all back-end resources like applications, data repositories, integration services, etc. Storage provides all memory capacity for running the applications on the server. Networks provide the communication links in the LAN and WAN, within the company, between companies and in the Internet. Security is integral part of all architecture building blocks and described in an overlaying structure.

An enterprise architecture, however, includes not only the three domains for the “as is” architecture (baseline architecture) and the target architecture. It includes also a strategic information base with clear definition of business objectives and strategy. The strategy is needed for the transitional processes in order to implement new technologies in response to the changing business needs. That means the enterprise architecture includes also the process to create, update and manage the evolution of the architecture domains in line with business strategy. Along this line, architecture design of all building blocks should follow the following objectives and principles:

* Flexibility
* Open and standard-based architecture
* Modular, component-based approach
* Adaptability
* Re-usable solutions
* Scalability of building blocks
* Reliability
* Facilitates completeness and quality assurance
* Availability based on defined service levels

Blueprints for architecture deployment

Dependencies of architecture building blocks:

Enterprise architecture is more than the collection of the constituent architectures. The interrelationships among these architectures, and their joint properties, are essential to the enterprise architecture. Thus, the architecture domains should not be approached in isolation. Key element of architecture design is to account for interdependencies among the building blocks of architecture.

Blueprints are introduced as a means in planning the deployment of architecture on a large scale.

Blueprints give a comprehensive view on the building blocks and how the interact. They show the effects of architecture design between business, application, and infrastructure architecture.

In the focus of enterprise architectures is the alignment of business and IT. In other words, the design of the business architecture determines the IT architecture, which has to support and enable business.

The building blocks of business architecture with the process architecture as the core define the frame for the design of the IT landscape. The dependencies between the different architectures can be described in blueprints. A blueprint is a plan which describes the deployment of an architecture building block across the enterprise. It pictures the landscape of this building block in a matrix of two business dimensions.

The Figure 2 illustrates the derivation of main IT blueprints from the organisation and process architecture.

The application landscape describes for each business process how it is supported by applications. The second dimension shows the deployment in organisational units, like divisions, business segment, etc.

The data repository landscape describes the deployment with databases and how to support defined information clusters of the information architecture. The second dimension shows the deployment of the databases in organisational units. The service landscape shows the deployment of infrastructure services and the support of applications.

The second dimension shows the deployment in organisational units. In general, different types of blueprints can be generated depending which dependency of business, applications, and IT infrastructure architecture or building block is in focus. Also, the matrix dimensions can be chosen in different level of detail, although the experience in architecture projects shows that a high level is sufficient in order to derive decisions for architecture development.

Generating detailed blueprints involves a lot of resources and time without enriching the decision base in the same degree. The three blueprints introduced provide a good information base for management decisions.

Conclusion

By integrating enterprise architecture with business process analysis, process mapping and strategic risk management, most solutions from consulting companies like TIS Holdings Consulting division supports IT governance, business process improvement, performance management and change management; which ensures that the business executive realise a better return on investment.

It is imperative to realise that by aligning risk management to enterprise architecture and IT governance, the total process eventually increases the in-depth view of business processes and facilitates critical business decision-making.

This final solution helps establish an integrated and adapted corporate governance system based on the correlation of complex risks and processes to concisely address all facets of ERM (enterprise risk management), internal audit and IT.

Sources:

a. IBM: Information Systems Planning Guide (GE20-0527-4)
b. Strategic Risk Management: A Foundation for improving Enterprise Risk Management and Governance by: Mark .L. Frigo and Richard .J. Anderson
c. Data Quality: M.Com Thesis (RAU) 1995 by M.T. Ramabulana
d. Survey by KPMG titled “Risk Management - A Driver of Enterprise Value in Emerging Environments”
e. Michael Rohloff, Siemens AG, Corporate Information Office, Business Administration CIO BA PMT; Processes, Methods & Tools

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