Enterprise Architecture

Enterprise Architecture CUSTOM ESSAY

Enterprise Architecture

Paper details

Identify an organization you know well. (Microsoft, Nike or Boeing)

Describe the operating model of your organization.

Given the characteristics of your organization, is that the appropriate operating model for the enterprise?

Enterprise Architecture

The following case study discusses the designing of Enterprise Architecture. The enterprise architecture is the organizing logic for business processes and IT infrastructure, reflecting the integration and standardization requirements of the company’s operating model (Ross, Weill, & Robertson, 2006).

Operating model.–The operating model is the necessary level of business process integration and standardization for delivering goods and services to customers (Ross, Weill, & Robertson, 2006).

Standardization refers to ‘‘defining exactly how a process will be executed regardless of who is performing the process or where it is completed’’ (Ross et al., 2006, p. 27).

In order to decide the level of standardization at your organization, you need to respond to the question: To what extent does the company benefit by having business units run their operations in the same way? (Ross, Weill, & Robertson, 2006)

Standardization offers both efficiency and predictability across the organi- zation, yet it limits local innovation and often requires the replacement of existing systems by standard, even perhaps inferior, systems. Integration ‘‘links the efforts of organizational units through shared data . . . between processes to enable end- to-end transaction processing, or across processes to allow the company to present a single face to customers (Ross et al., 2006, pp. 27–28). In order to decide the relevant level of integration for your firm, you should respond to the question: To what extent is the successful completion of one business unit’s transactions dependent on the availability, accuracy, and timeliness of other business unit’s data? (Ross et al., 2006, p. 30).

Ross, Weill, & Robertson assert four possible operating models:

The diversification model (low standardization, low integration) is used by organizations that follow a decentralized organizational design, pursuing different markets with different products and services, and that benefit from local autonomy (Sabherwal & Becerra-Fernandez, 2011).

The coordination model (low standardization, high integration) is used by firms that have high levels of integration through the sharing of customers, products, suppliers, and partners. At the same time, they have little standardization of processes, and business unit leaders are given the autonomy to define their individualistic business processes in order to best serve their customers (Sabherwal & Becerra-Fernandez, 2011).

The replication model (high standardization, low integration) is used by firms that provide their units with the autonomy to run independently following highly standardized business processes. For firms in this model, their units do not depend on each other’s transactions or data, and their success depends on their ability to innovate globally while implementing highly standardized and optimized business processes (Sabherwal & Becerra-Fernandez, 2011).

The unification model (high standardization, high integration) is used by organizations that are highly integrated around standardized business processes, through integrated supply chains that share transaction, customer, and supplier data (Sabherwal & Becerra-Fernandez, 2011).

Identify an organization you know well. (Microsoft, Nike or Boeing)

Describe the operating model of your organization.

Given the characteristics of your organization, is that the appropriate operating model for the enterprise?

 

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