IT strategic planningConduct annual IT strategic planning to close the business performance gaps. ^ TOP
Analyze business perfomance gapsAnalyze enterprise business performance gaps based on the areas in the Performance Reference Model.
Segment ArchitectureEnterprise Architecture is incrementaly established via segment architecture base on enterprise business need as described in volue 1. ^ TOP
Close performance gap with segment architectureEA take direction from strategic planning. The effort of Enterprise Architecture is to diagnosis what is broken first and then design the architecture to cure the performance gap rather than design the architecture based on the idology of architects in the ivory tower. The most important value of enterprise architect is to provide the enterprise picture from a intangiable form to a tangialbe presentation so that the decision makers are able to diagnosis the performance gap based on their expectation and performance measurement. The stratgist can formulate business strategy to close the gaps . Align to the strategy , the process engineers conduct business reengineering, the application architects , th data architects and the technology architecture identity the consolidated automation solutions accordingly by learning and reuse from the same line of business.
Investment decision and budget planning has been a major challenge for senior managers. With strategic direction and EA, the management can prepare the capital investment decision and budget planning in a systematic approach rather than an artistic effort.
This article illustrate the relation between strategic planning, EA and capital investment as shown in the following figure where the strategic planning pump out the strategy direction based on the performance gaps in the areas of mission, customer satifaction, business result, business process, human resource and technolgy. Enterprise Architecture serve two purpurpose, it provide the enterprise big picture for holistic strategic planning and it align to the strategic direction to enable the business transformation. From the outcome of strategic planning and Enterpirse architecture, the manager can make their capital investment and plan their short term and long term budget with reasonalble justification.
What is strategic planning
The Unversity of southern Queensland (USQ) in Australa define strategic planning as :
The planning activity through which one confronts the major strategic decisions facing the organization. A decision is not rendered strategic merely by being important. Strategic decisions or issues fulfill the following criteria:
• Define the institution’s relationship to its environment.
• Generally take the whole organization as the unit of analysis.
• Depend on inputs from a number of functional areas.
• Provide direction for, and constraints on, administrative and operational activities throughout the institution.
Performance based strategic planning
Strategic planning must based on business performance rather than by some wise men to establish the strategic direction from an ivory tower. Industry have establish their business strategy based on business performance results . The Government Performance Result Act (GPRA) require government agency to conduct strategic based on business performance result. The FEAPMO performance based strategic direction framework as shown in the following figure. It that strategic direction is based on the business performance gap between the business performance expectation and the actual business result rather just the enterprise vision from some wise man. .The framework identify the performance measurement areas which include mission, customer satisfaction, business result such as cost performance, business process optimization, technology result and human capital.
EA enable holistic strategic planning.
EA enable holistic strategic planning rather than a redundant of strategic planning. EA is the dedicate effort to see the enterprise big picture and understand how the enterprise works, It enable a holistic strategic planning effort. In a analogy to medical practice, business performance gap analysis is analogy to diagnosis effort, EA is analogy as the anatomy to understand how the enterprise work. Anatomy is essential to modern medical practice so does EA is essential to modern strategic planning. Performing strategic planning without EA is no different to ancient medical practice without human body anatomy.
Align EA to strategic planning.
In addition to provide the big picture, EA also serve as the mechanism to enable business transformation based on strategic direction. EA must align to the enterprise strategic diction rather than based on the architecture ideology. It is a continuous effort to align to the change of strategic direction rather the a development a large system or construct a large complex to base on static blue print.
Align capital investment to strategic direction and EA
Strategic planning and EA can make capital investment and budget planning reasonable. Both strategic planning and EA are the means to achieve the goal of optimized capital investment and budget planning. Strategic planning and EA serve practical purpose to justify capital investment and budget planning rather than just a document to satisfy government requirements. Leverage on strategic direction and EA, capital investment and budget planning is no longer a judgment call by decision makers, It is must based on solid strategic planning effort and architecture design.