Digital Enterprise Transformation - 360° Journal

METHODOLOGY | RESEARCH24Enterprise Architecture (EA)EA models the fundamental (i.e. no details) structureof an organization concerning►►the business (strategy & organization)►►information systems (IS)►►information technology (IT).In addition to modeling the components and dependenciesof that structure, EA also deals withguidelines and principles that govern the structure’sdesign process and evolution.Enterprise Architecture Management (EAM)EAM provides support for decisions regardingthe design and further development of EA andinvolves a wide set of stakeholders in businessand IT.Examples of EAM goals are: enhancing the transparency,consistency, simplification, flexibility, oragility of the organization. In many practice settings,EAM is designated “EA governance”.In addition to offering decision support, EAM alwaysneeds to have a holistic perspective, i.e. itnot only covers the entire business-to-IT relation,but also spans a complete business unit, companyor corporation. This positioning distinguishesEA from functional architecture management disciplines(IT architecture, business architecture)as well as partial architectures (project view, departmentview).One of the well-known EA frameworks is “TheOpen Group Architecture Framework” (TOGAF)(The Open Group 2011).Further summarized reading about EAM is alsoavailable in Aier et al. (2009).Business Transformation (BT)A BT is a fundamental change of the way a companyoperates, be it e.g. by moving into a newmarket or by overhauling its internal processes.This fundamental change aims to meet long-termobjectives. BT affects many functional areas ofa company, including organization, human resources,IT or financials. BT is closely related toa company’s strategy, its value, and its risks. Inorder to be effective, BT needs to align changesin people, processes, and technology.Business Transformation Management (BTM)BTM encompasses the planning, implementation,and control of BT as well as the support fordecisions related to the design and developmentof business transformations. BTM involves a wideset of stakeholders in business and IT.Examples of BTM goals are: strategy change(e.g. re-focus, diversification), technology-driveninnovation, increased agility, or cultural change(e.g. customer orientation).BTM should always follow a holistic and interdisciplinaryperspective, i.e. not only focus on financialsor IT, but also consider skills, strategy, value,risk, or project management. BTM is applied tolarge transformation projects or transformationprograms that usually affect significant parts ofa company.Theoretical foundation for business transformationsis available in e.g. Rouse (2005).An example for a BTM framework is BTM 2 (Uhland Gollenia, eds., 2012).Table 1:Definitionof EnterpriseArchitecture andBusinessTransformation(Management)Although Enterprise Architecture (EA)includes many business aspects, its keystakeholders are always somehow involvedin IT – be it directly (supply side)or indirectly (demand side). Thus, thepeople who benefit most from EA aretypically the CIO and the CIO’s subordinatelevel. In comparison to BTM, EA isa more technical, engineered approach.Further stakeholders from the demandside of IT are enterprise and solutionarchitects, portfolio managers, servicemanagers, line or business heads. Incontrast, the typical key Business Transformation(BT) stakeholders are boardmembers, the C-level management,business unit managers, program andproject managers, including many ofthe EA stakeholders. In other words,BTM focuses on the business side, withrather limited consideration of IT issues.Although stakeholder management is a