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1、 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise Architecture as Strategy Monday, 2 July 2007 Target Operating Models Firm-wide Business Process Integration High Coordination 16% of firms Unification 57% of firms Low Diversification 16% of firms Replication 11% of firms
2、 Low Data show operating models reported by IT executives at 70 companies. High Business Process Standardization Center for Information Systems Research 2007 MIT Sloan CISR Weill Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robe
3、rtson, Harvard Business School Press, 2006. Johnson & Johnson's Multiple Operating Models1 Business Process Integration Coordination High US Pharmaceuticals Unification McNeil Healthcare European Consumer Companies J&J Consumer Products Diversification Low J&J Corporate Replication E
4、uropean Pharmaceuticals Low High Business Process Standardization Center for Information Systems Research 2007 MIT Sloan CISR Weill 1 Source: Researcher approximation based on historical data. Professor Peter Weill Page 6 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise
5、Architecture as Strategy Monday, 2 July 2007 Different Standardization Requirements of the Four Operating Models Business Process Integration Coordination Unification Technology Customer and Product Data Shared Services Core Processes such as Operations, Customer Service, Logistics R&D, Marketin
6、g/Sales Technology Customer and Product Data Shared Services High Diversification Replication Technology Shared Services Core Processes such as Operations, Customer Services, Logistics R&D, Marketing/Sales Low Technology Shared Services Low High Business Process Standardization Center for Inform
7、ation Systems Research 2007 MIT Sloan CISR Weill Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. Toyota's Operating Model Transitions Coordination Business Process Integration Uni
8、que business units with a need to know each other's "Required": transactions Transparency for Examples: Merrill Lynch, Toyota Virtual Supply and Motor Marketing Europe, MetLife Demand Chain Key IT capability: access to shared data, through standard technology interfaces Unification Sin
9、gle business with global process standards and global data access "Desirable": Examples:Standardized Delta Air Lines, Dow Chemical, Pepsi Americas Systems to Reduce Cost Key IT capability: enterprise systems reinforcing standard processes and providing global data access High Diversificati
10、on Independent business units with different customers and 1999 Position: expertiseDecentralized Independent Examples: Johnson & Johnson, Country Carlson Companies, GE Operations Key IT capability: provide economies of scale without limiting independence Replication Independent but similar busin
11、ess units Examples: Marriott, CEMEX, ING DIRECT Key IT capability: provide standard infrastructure and application components for global efficiencies Low Low Center for Information Systems Research 2007 MIT Sloan CISR Weill High Source: Presentation by Peter Heinckiens, Chief Architect, Toyota Motor
12、 Marketing Europe to IMD OWP Program, June 30, 2005. Business Process Standardization Professor Peter Weill Page 7 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise Architecture as Strategy Monday, 2 July 2007 MetLife's Coordination Model Application Presentation Tier
13、 Portal Presentation Integration Application Business Logic and Data Tier Security & Licensing Rates & Entitlements Calcs Suitability Forms & Requirements Customer Screen Entry & Validation Marketing Illustrations Order Entry Underwriting Billing/Payment ACORD XML ACORD JLife Sign-on
14、 Producer Navigation Search Sales Office Sessions Operational Data Store Business Rules Integration Hub Party Management Underwriter Service Eligibility Underwriting & Issue XM AC OR D L Call Center Claims Product Admin Service Provider Partner Portals Events Service Workflow Recording Center fo
15、r Information Systems Research 2007 MIT Sloan CISR Weill Source: Adapted from MetLife documents used with permission. Carlson's Enterprise Architecture Customer Requirements Business Initiatives Travel Management Loyalty Hotel Distribution CRM Business Process Enterprise Portal Presentation Secu
16、rity Application Data Trust Common Infrastructure Middleware Data Object Platform Network Source: Carlson Company Center for Information Systems Research 2007 MIT Sloan CISR Weill IT Resilience Professor Peter Weill Page 8 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise
17、 Architecture as Strategy Monday, 2 July 2007 Delta's Unification Model Operational Pipeline Allocate Resources Prepare for Flight Departure Load Aircraft Flight Departure and Closeout E V E N T S Delta Nervous System Electronic Events Monitor Flight Flight Arrival and Closeout Unload Aircraft C
18、lean/ Service Aircraft Pagers Voice Video Gate Readers Kiosks Hand Helds Business Reflexes Location Equip. Flight Schedule Aircraft Maint. Employee Relationship Management Employee Customer Ticket Cell Phones Desktops Laptops Nine Core Databases PDAs P R O F I L E Skycap Scanners Reservation Systems
19、 Skylinks Skymiles Reservations Travel Agent Ticket Counter Crown Room Boarding Loyalty Programs Inflight Baggage Personalization Digital Relationships Customer Experience Center for Information Systems Research 2007 MIT Sloan CISR Weill Source: Adapted from Delta Air Lines documents. Used with perm
20、ission. Stages of Architecture Maturity Local/Functional Optimization 100% 36% Percentage of IT Investment 25% Strategic Implications of IT IT Efficiency Operational Efficiency 16% Strategic Agility 15% Local Applications Enterprise Systems 21% 18% 32% 34% 35% 40% 35% 33% Shared Infrastructure 0% 11
21、% 14% 17% 18% Shared Data Business Silo 12 100% Percent of firms IT Budget1 1 Standardized Technology 48 85% Optimized Core (Rationalized Data or Process Business Modularity 6 120% 34 75% IT budgets from 103 firms are corrected for industry differences. Application silo budget is the baseline. Budge
22、ts for other stages are represented as a percentage of the baseline budget. Only five firms in stage four reported their IT budgets so data is not reliable. Center for Information Systems Research 2007 MIT Sloan CISR Weill Source: Enterprise Architecture as Strategy: Creating a Foundation for Busine
23、ss Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. Professor Peter Weill Page 9 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise Architecture as Strategy Monday, 2 July 2007 Enterprise Architecture Benefits by Stages 5 4.5 4 3.5 3 IT
24、Responsiveness (1 Risk Management (2 CIO Rating 2.5 2 1.5 1 0.5 0 Business Silos Standardized Technology Optimized Core Business Modularity Managerial Satisfaction (3 Strategic Business Impacts (4 Architecture Stage Center for Information Systems Research 2007 MIT Sloan CISR Weill (1 Development tim
25、e. (2 Business risk, security breaches and disaster tolerance. (3 Senior management and business unit management satisfaction. (4 Operational excellence, customer intimacy, product leadership and strategic agility. Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execu
26、tion, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. but there are tradeoffs in flexibility Architecture Maturity Business Silos High flexibility Standardized Technology Optimized Core Business Modularity Global flexibility Local flexibility Low flexibility Center for Info
27、rmation Systems Research 2007 MIT Sloan CISR Weill Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. Professor Peter Weill Page 10 Innovation Value Institute Creating IT Enabled Busines
28、s Innovation Enterprise Architecture as Strategy Monday, 2 July 2007 ING DIRECT: Business Efficiency Agility ING DIRECT, a subsidiary of the Dutch financial services giant, ING, was founded in 1997 as a telephone bank in Canada. Second fastest growing company in history, ING DIRECT is a direct-tocus
29、tomer operation, offering simple banking products to 13 million customers of 9 country bank organizations. The #1 direct bank (in terms of retail funds entrusted in every one of the 9 countries in which it operates. Each of ING DIRECT's country-based businesses operates autonomously, but they sh
30、are a common set of standardized technical infrastructure components, as well as a set of standardized business service groupings (e.g., customer relationship services, common business services, channel access services. Standardized services has reduced operational costs to only 0.43% of assets, as
31、compared to 2.5% for a typical full-service bank. Business efficiency agility allows the company to offer higher savings rates and lower-cost loans than other banks. Center for Information Systems Research 2007 MIT Sloan CISR Weill Source: D. Robertson, "ING Direct: The IT Challenge (A and (B,&
32、quot; working paper, IMD, 2003 and J. Ross, P. Weill, and D. Robertson, Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, HBS Publishing, 2006. ING Direct a Modular Business Model External Services Prospect Fulfillment Statement Fulfillment Payments Checks Reports Lo
33、cal/HQ/Tax Customer Relationship Services CIF Contact History CRM Product Info Core Banking Services Mutual Brokerage Funds Banking Engine Credit Score Common Business Services Transactions Customers Products Services Channel Services IVR/CTI server Imaging server Customer Contact: Call Center, IVR,
34、 E-mail, Direct mail E-mail server Web server Gateway server Self-Service: Internet, MinTel, ATM, WAP, (WebTV Services not implemented in all countries Center for Information Systems Research 2007 MIT Sloan CISR Weill Source: Robertson, D. "ING Direct: The IT Challenge (B", 2003, IMD-3-134
35、5. Used with permission. Professor Peter Weill Page 11 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise Architecture as Strategy Monday, 2 July 2007 Learning Requirements of the Architecture Stages Stage Name Business Silos Standardized Technology Shared technical platfo
36、rms Reduced IT costs Optimized Core Enterprise-wide hardwired processes or databases Cost and quality of business operations Enterprise applications and data stores Core enterprise process definition and measurement Senior management and process leaders Align project priorities with architecture obj
37、ectives Business Modularity Plug & play business process modules Speed to market; Strategic agility Reusable business process components Management of reusable business processes IT, business and industry leaders Define, source & fund business modules IT Capability Local IT applications Busi
38、ness Objectives Funding Priorities ROI of local business initiatives Individual applications Shared infrastructure services Design and update of standards; funding shared services IT & business unit leaders Establish local/ regional/global responsibilities Key TechnologyManagement enabled change
39、 Capability management Who Defines Applications Key IT Governance Issues Local business leaders Measure and communicate value Center for Information Systems Research 2007 MIT Sloan CISR Weill Source: Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill
40、, and D. Robertson, Harvard Business School Press, 2006. Four Critical Architecture Competencies Architecture Planning and Design Senior Executive Oversight Enterprise Architecture Guiding Principles Enterprise Architecture Graphic Process Owners Full-Time Enterprise Architecture Team Project Manage
41、ment Project Methodology Post-Implementation Assessment IT Program Managers Business Leadership of Project Teams IT Funding Business Cases Centralized Funding of Enterprise Apps Infrastructure Renewal Process IT Steering Committee Standards Management Architects on Project Teams Technology Research
42、& Adoption Process Architecture Exception Process Formal Compliance Process Centralized Standards Team Center for Information Systems Research 2007 MIT Sloan CISR Weill Management practices within each practice set are statistically significantly correlated with each other. All four competencies
43、 are significantly correlated with architecture benefits. Professor Peter Weill Page 12 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise Architecture as Strategy Monday, 2 July 2007 Reinforcing Organization Learning with Governance Business Silos Business cases Project m
44、ethodology Standardized Technology Architects on project teams IT Steering Committee Architecture exception process* Formal compliance process* Infrastructure renewal process* Centralized funding of enterprise applications* Centralized standards team Optimized Core Business Modularity Process owners
45、* Enterprise architecture guiding principles* Business leadership of project teams* Senior executive oversight* IT Program Managers* Enterprise architecture graphic* Post-implementation assessment* Technology research and adoption process* Full-time Enterprise Architecture team Color Code: Architect
46、ure Planning & Design Project Management IT Funding Standards Management Architecture Maturity Center for Information Systems Research 2007 MIT Sloan CISR Weill * Reported value of asterisked items is statistically significantly related to architecture maturity stage. Source: Enterprise Architec
47、ture as Strategy: Creating a Foundation for Business Execution, J. Ross, P. Weill, and D. Robertson, Harvard Business School Press, 2006. How to Succeed with Enterprise Architecture Governance institutionalizes learning. Light weight governance helps firms not re-learn the same lesson Make tough cho
48、ices. Enterprise architecture enables and constrains business strategy by creating a stable platform for business execution. Management must specify how to operate. Build capabilities, not solutions. This is the only way to avoid silos and create a powerful foundation for execution. Do not skip stag
49、es. Generating value from architecture investments is a learning process. Aggressive investment in IT capabilities can be slow to generate a return. Allow time for learning. Introduce key management practices and don't give up on them. There is no substitute for strong senior management leadersh
50、ip. Firms getting strategic business benefits from an operating model have senior business leaders who are actively involved in its design, management and implementation. Center for Information Systems Research 2007 MIT Sloan CISR Weill Professor Peter Weill Page 13 Innovation Value Institute Creating IT Enabled Business Innovation Enterprise Architecture as Strategy Monday, 2 July 2007 Characteristics of the Four Operating Models Coordination Shared customers, products or suppliers Impact on other business unit t
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