unlocking patterns of ea program failure: lessons learned about the barriers and the potential...

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Unlocking Patterns of EA Program Failure: Lessons learned about the barriers and the potential unlocking practices Open Group Conference, Jakarta 2016

Dr. Basuki Rahmad, CITA-‐F, COBIT5-‐I, CISA, CISM, CRISC

Halaman 2

The key criterias of EA Program Successfullness, adoptep from COBIT 5

Open Group Conference -‐ Jakarta 2016: Unlocking PaOerns of EA Program Failure

Alignment of IT and Business Strategy

1.  Percent of the enterprise strategic goals and requirements supported 2.  Level of stakeholder saSsfacSon with scope of the planned of

programmes and services 3.  Percent of IT value drivers mapped to business value drivers

IT Agility

1.  Level of saSsfacSon of business execuSves with IT’s reponsiveness to new requirements

2.  Number of criScal business processes supported by up-‐to-‐date insfrastructure and applicaSons

3.  Average Sme to turn strategic IT objecSves into an agreed-‐on and approved iniSaSve

OpSmisaSon of IT assets, resources and

capabiliSes

1.  Frequency of capability maturity and cost opSmisaSon assessments 2.  Trend of assessment results 3.  SaSsfacSon levels of business and IT execuSves with IT-‐related costs

and capabiliSes

Halaman 3

There are barriers and potenSal unlocking pracSces……..


Barriers are core components of a problem that, if altered, could allow for true organization change using EA. Barriers are not underlying causes that merely describe a situation. Instead, they are actionable, and specific to the problem. Based on our observaSon, the barriers can be found at the phase of EA planning or execuSon.

EA Planning EA ExecuSon

Alignment of IT and Business Strategy

IT Agility

Optimisation of IT assets, resources and

capabilities Bad/Weak Planning Bad/Weak ExecuSon

X

Halaman 4

This study of barriers and unlocking pracSces is based on the observaSon of 20 organizaSons in the last 7 years


5

3

5

1 2 2 2

Industry Type

Halaman 5

The barriers found


Disconnected from industry & good

pracSces

1.  Weak concern on the industry business issues and trends 2.  Stuck on internal IT TradiSon 3.  Not following the updated key technologies needed by organizaSon

Weak business perspecSve & involvement

Weak Top/Senior Management Sponsorship

Limited IT OrganizaSon Capabity

1.  Too technical, weak relaSonship with business pains and triggers 2.  Weak business case (represenSng EA in the financial terms) 3.  EA is IT Agenda, business will wait at the finish line

1.  Unclear business direcSon 2.  Weak IT leadership from top/senior management

1.  Unbalance posiSon of IT and business process owner 2.  Weak IT competency alignment of current IT staff vs technologies

needed by the business/organizaSon 3.  Limited IT FTEs

Halaman 6

The barriers mapped to TOGAF ADM



pracSces




Preliminary P P P S

Architecture Vision P P P S

Business Architecture P P S S

InformaSon System Arhitecture

P P

Technology Architecture

P P

OpportuniSes and SoluSons

S P P

MigraSon Planning P S P

ImplementaSon Governance

P S P

Architecture Change Management

S S S S

P = Primary S = Secondary

Halaman 7

The potenSal unlocking pracSces, mapped to the barriers



pracSces




Focusing on business pains or triggers, benchmarking to the industry reference architecture

X X X

Sharpening the business case X X

Strengthening Governance X X X

Increasing the capacity of IT OrganizaSon X X

IntegraSng to the organizaSon/corporate transformaSon agenda

X X

Halaman 8

#1 – Focusing on business pains or triggers, benchmarking to the industry reference architecture

KEY CONSIDERATIONS: q  EA must consider the business drivers: business

pains or business triggers. The understanding of business drivers can be used as an internal imperaSves.

q  In the same Sme, the understanding of industry or technology issues can be used as an external imperaSves.

q  Blended internal and external imperaSves will drive the strong EA Principles and visions

q  Understanding the reference architecture (business/technology perspecSve) will contribute to the high quality IS or technology architecture


RELATED METHODS: q  Capturing and understanding the business pains

or triggers:

–  List the imperaSves, internal/external –  PrioriSze the imperaSves, using risk or value

analysis

–  Translate to EA principles and EA Visions

q  Industry bencmarking or Reference Architecture

–  Benchmarking to the direct/indirect compeStors (local, regional, global)

–  Adopt the research products from the reputable research insStuSons/companies: industrial soluSons or specific technologies

–  Adopt the technology standards or good paOerns, such as SOA, Network Architecture, Security Architecture

Halaman 9

#2 – Sharpening the business case


KEY CONSIDERATIONS: q  EA ImplementaSon Program must be marketable

(to top/senior management or business process owners). Therefore we have to communicate at the business language, not IT language.

–  The reasons

–  The benefits

q  The budget approval by management, mostly will be determined on the business consideraSon: financial or non-‐financial.

RELATED METHODS: q  Risk management planning

q  Benefit analysis

q  Economic/Financial analysis

–  Cost-‐Benefit Analysis

–  IRR

–  Payback periode

–  Others

Halaman 10 Open Group Conference -‐ Jakarta 2016: Unlocking PaOerns of EA Program Failure

TAHUN 2014 2015 2016 2017 2018

IT#Spending !per!tahun 255.48 302.31 413.86 463.55 509.68Total #IT#Spending 1944.88

Benefit#CalculationProductivity#IncreaseProduktifitas!SDM 20.25 22.28 24.50 26.95 29.65Pengurangan!SDM!(termasuk!perangkat!pendukung)!terkait!dengan!pengurangan!loket

7.20 14.40 21.60 28.80

Peningkatan!produktifitas!angkutan!barang!yang!disebabkan!peningkatan!produktifitas!pengelolaan!traffic

27.09 78.26 109.69 231.84 235.60

Cashflow#&#Material#ManagementPenurunan!nilai!inventory 79.50 87.45 96.19 105.81 116.39Perpanjangan!lifetime!loco!dengan!peningkatan!kualitas!pemeliharaan 17.43 17.43 17.43 17.43 17.43

Expense/Risk#AvoidancePenghematan!biaya!pendidikan 2 3 4 4 4Efisiensi!pencetakan!tiket 4.05 8.51 8.93 9.38Efisiensi!pengadaan 40.75 12.96 15.88 17.98Keberlangsungan!layanan!penjualan!tiket,!yang!jika!sistem!TI!tidak!dapat!melayani!diasumsikan!akan!beralih!ke!moda!lain.

99.64 156.35 220.86 280.595 354.88

Benefit!Per!Tahun 245.91 416.77 508.55 713.05 814.11Total!Benefit 2698.38

Benefit#D#Cost!(per!tahun) M9.57 114.45 94.69 249.50 304.43Net#Benefit M9.57 104.88 199.57 449.06 753.49

IllustraSve Examples

Halaman 11

#3 – Strengthening Governance


KEY CONSIDERATIONS: q  The need of Leadership & business involvement

formalizaSon

q  The maturity of IT Governance will increase the quality of EA lifecycle

q  The need of balancing on People, Process & Technology

RELATED METHODS: q  The establishment of IT/Business OperaSng

Model

q  The establishment of EA Steering CommiOee to insStuSonalize IT leadership and business involvements

–  ArSculate the strategic direcSons –  Review & approve EA Strategic iniSaSves –  Monitor and evaluate EA key metric achievements –  Monitor & evaluate the benefits

q  The establishment of EA Policies, standards and procedures.

q  The encouragement of the related EA cultures, such as: innovaSon, enforcement of technology standards

Halaman 12

#4 – Increasing the capacity of IT OrganizaSon


KEY CONSIDERATIONS: q  The capacity of IT OrganizaSon will determine

the quality of EA planning and execuSon

q  The component of IT OrganizaSon capacity:

–  The alignment of IT competencies and IT Architecture landscape

–  The correctness of IT funcSon configuraSons –  The correctness of IT posiSon in organizaSon –  The existence of career path

RELATED METHODS: q  Restructuring of IT OrganizaSon

–  IT posiSon in OrganizaSonal Structure –  IT OrganizaSon reconfiguraSon, enabling the

adopSon of good pracSces –  FTEs workload analysis & recruitment Note: The urgency of IT OrganizaSon will depend also on IT OperaSng Model

q  IT competency development, integrated to IT career path

–  IT Competency chain, derived from the IT Architecture landscape

–  IT Career Path, such as: structural vs professional path


AHLI PRATAMA AHLI MUDA AHLI MADYA AHLI UTAMA AHLI SENIOR

6 7 8 9 10 11 12 13 14 15 16 17 18

STRUKTURAL:

Manager ¢ ¢

Division Head ¢

SPESIALIS:

IT Officer ¢

IT GRC (Governance, Risk & Compliance) ¢ ¢ ¢ ¢ ¢ ¢

Enterprise Architect ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢

Business Analyst ¢ ¢ ¢ ¢

Project Management ¢ ¢ ¢ ¢ ¢ ¢ ¢

SoluSon Architect ¢ ¢ ¢ ¢ ¢ ¢

System Analyst ¢ ¢ ¢ ¢ ¢ ¢ ¢

Programmer ¢ ¢ ¢ ¢ ¢ ¢ ¢

Infrastructure Architect ¢ ¢ ¢ ¢ ¢ ¢

Network Management ¢ ¢ ¢ ¢ ¢ ¢ ¢

IT Security ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢

Database Management ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢

ApplicaSon OperaSon ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢

DC/DRC Facility & OperaSon ¢ ¢ ¢ ¢ ¢ ¢ ¢

DC/DRC System Sonware ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢

IT Service Desk ¢ ¢ ¢ ¢ ¢ ¢ ¢

IT Service EducaSon & Management ¢ ¢ ¢ ¢ ¢ ¢ ¢


Halaman 16

#5 – IntegraSng to the organizaSon/corporate transformaSon agenda


KEY CONSIDERATIONS: q  If there are major business transformaSons from

exisSng architecture, it’s needed an enough focus on:

–  Keeeping the exisSng services up –  Ensure the successful new architecture

q  The possibility of the limited resources of IT OrganizaSon to handle two concerns

q  The psychology aspect of “new things”

RELATED METHODS: q  ImplemenSng EA iniSaSve as a business iniaSve,

rather than IT iniSaSve

q  OrganizaSon strategy alternaSves:

–  DelegaSng the main responsibility of New EA and New Core IT Architecture MigraSon to TransformaSon Unit

•  Special unit, maybe adhoc during the transformaSon

•  Consist of IT and Business People •  CoordinaSng with IT OrganizaSon at

deployment and migraSon from old architectures

–  DelegaSng to IT

–  Program Management Office as a conductor

Halaman 17

Terima Kasih
