Enterprise Architecture As Strategy: Creating a Foundation for Business Execution [Hardcover]

Jeanne W. Ross (Author), Peter Weill (Author), David Robertson (Author)

Book Description

Publication Date: August 1, 2006

Does it seem you’ve formulated a rock-solid strategy, yet your firm still can’t get ahead? If so, construct a solid foundation for business execution—an IT infrastructure and digitized business processes to automate your company’s core capabilities. In Enterprise Architecture as Strategy: Creating a Foundation for Business Execution, authors Jeanne W. Ross, Peter Weill, and David C. Robertson show you how.

The key? Make tough decisions about which processes you must execute well, then implement the IT systems needed to digitize those processes. Citing numerous companies worldwide, the authors show how constructing the right enterprise architecture enhances profitability and time to market, improves strategy execution, and even lowers IT costs. Though clear, engaging explanation, they demonstrate how to define your operating model—your vision of how your firm will survive and grow—and implement it through your enterprise architecture. Their counterintuitive but vital message: when it comes to executing your strategy, your enterprise architecture may matter far more than your strategy itself.

Editorial Reviews

About the Author

Jeanne W. Ross is Principal Research Scientist, MIT Sloan Center for Information Systems Research.

Peter Weill is Director at the Center for Information Systems Research, MIT Sloan School of Management. He lives in Cambridge, MA.

David C. Robertson is Professor if Technology and Strategy at IMD International.

Product Details

• Hardcover: 256 pages
• Publisher: Harvard Business Review Press (August 1, 2006)
• Language: English
• ISBN-10: 1591398398
• ISBN-13: 978-1591398394
• Product Dimensions: 6.5 x 0.9 x 9.6 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (66 customer reviews)
• Amazon Best Sellers Rank: #10,453 in Books (See Top 100 in Books)
  • #3 in Books > Business & Investing > Management & Leadership > Industrial
  • #9 in Books > Business & Investing > Industries & Professions > Information Management
  • #38 in Books > Business & Investing > Management & Leadership > Systems & Planning

Most Helpful Customer Reviews

61 of 64 people found the following review helpful

5.0 out of 5 stars Enterprise Architecture for Executives where it belongs August 6, 2006

By Mark P. McDonald TOP 1000 REVIEWERVINE™ VOICE

Format:Hardcover

Ross, Weill and Robertson do what no one else has done in the area of Enterprise Architecture (EA). They have made it understandable and accessible for the executive. EA is an over abused term, often by IT people to intimidate business users and others. Ross, Weill and Roberston provide a well researched, clearly written approach for enterprise architecture and how it applied to business and technical strategy.

The subject may sound dry, but think of it this way -- how do you design your company for current success and future flexibility and you have an idea of the power behind the practices in this book. I say practices rather than ideas because this book is filled with well documented case studies and discussions of what real executives are doing. UPS, CEMEX, Delta Airlines, ING Direct, TD Banknorth are all companies that have realized value. This makes the book practitioner focused and all the more valuable.

Enterprise Architecture zealots will find this book wanting in terms of detailed diagrams and statement professing the unqualified necessity of EA. That is a signal to business executives that this is a book for them to understand the business implications of enterprise design and architecture.

This work is the result of careful examination and study of the topic from a business perspective and that care shows. The book is a balanced and action oriented view on EA, rather than a source of gushing enthusiasm which is something you find in more consulting oriented books....

If you are thinking about how your enterprise can become and sustain its competitive power, change at low risk, and take advantage of new opportunities; then EA may be an answer and this book is the clearest business description of EA, how to implement it and how it works out there.

If you are an IT person, read this book to see how IT concepts like EA are really business initiatives and how to explain them as such to your executives. If you have unbridled enthusiasm for EA then you may be disappointed in this straightforward, business focused discussion.

The book is organized clearly and presents a well structured argument that can lead executives to better understand the value of an enterprise level design.

Chapter 1: To execute your strategy, first build your foundation. This chapter discusses the factors that underpin a well designed organization that is agile and efficient.

Chapter 2: Define your operating model. This chapter covers the missing piece for many company strategies and plans -- how are we going to operate. This section includes an analysis of four major operating model types and what makes them successful.

Chapter 3: Implement the operating model via enterprise architecture. This chapter is among the most important as it puts EA in its proper place as a tool for strategy realization rather than as an end to itself.

Chapter 4: Navigate the states of Enterprise Architecture Maturity. This is a look at the benefits executives should expect as they invest in and realize results from EA

Chapter 5: Cash In on Learning. This chapter discusses the use of management practices and the ability to improve the enterprise because it has an explicit detailed design in the EA.

Chapter 6: Build the foundation one project at a time. With the rational and value of EA understood the book now turns to how you establish an EA and realize its value.

Chapter 7: Use Enterprise Architecture to guide outsourcing. Outsourcing is a big issue that will not go away and one that is subject to abuse, unless it is part of an enterprise design and therefore part of the EA.

Chapter 8 Now- exploit your foundation for profitable growth. This chapter should be read early by executives to understand what is possible for the business, top and bottom line growth.

Chapter 9 Take Charge! The Leadership Agenda discusses the actions and principles needed to make the enterprise successful through EA. This chapter is pretty standard, but it does a great job of showing how EA fits with what executives already know about leadership and growth. Read more ›

57 of 62 people found the following review helpful

5.0 out of 5 stars How to achieve and then sustain superior execution August 15, 2006

By Robert Morris HALL OF FAMETOP 100 REVIEWERVINE™ VOICE

Format:Hardcover

I do not recall reading another business book in recent years which I found more intellectually stimulating...and practical. Where to begin? Perhaps the most appropriate approach would be to quote the authors. In their Preface, Ross, Weill, and Robertson suggest that, until now, research and executive education have failed to make a breakthrough in understanding and improving IT architecture efforts. They then recall Albert Einstein's observation, "The significant problems we face cannot be solved by the same level of thinking that created them." What do the authors recommend? "The focus needs to be higher - on [in italics] enterprise architecture [end italics], the organizing logic for core business processes and IT infrastructure reflecting the standardization and integration of a company's operating model...[Therefore] enterprise architecture boils down to these two concepts: business process integration and business process standardization. In short, enterprise architecture is not an IT issue - it's a business issue."

Ross, Weill, and Robertson arrived at their conclusions after rigorous and extensive research which revealed what certain top-performing organizations do and how they do it. In this volume, they share what they learned so that other organizations can be guided and informed in their efforts to improve their own performance. More specifically, they respond to questions such as these:

1. What are the most common symptoms ("warning signs") of an inadequate foundation for execution?

2. Which three disciplines must be mastered in order to build one which is solid?

3. What are the key dimensions of an appropriate business model?

4. How to implement the operating model via enterprise architecture?

5.... What are the four stages of enterprise architecture development and how must each be navigated?

6. What are the specific benefits during the implementation of the enterprise architecture?

7. When establishing a foundation for execution, why is it best to build it "one project at a time"?

8. How can - and should - enterprise architecture be helpful when outsourcing?

9. How to leverage its foundation for profitable growth?

10. What are the "Top Ten Leadership Principles" for creating and exploiting a foundation for execution?

With regard to the last question, it is important to keep in mind that Ross, Weill, and Robertson's recommendations refer to enterprise-wide initiatives. Therefore, there must be effective leadership at all levels and in all areas of a given organization while creating a foundation for business execution. Everyone involved must be committed to the foundation, help to identify and remove barriers to progress, "feed the core" with continuous experimentation, use the architecture as a "compass and communication tool," and collaborate with others while proceeding through each stage. These are the capabilities of exemplary companies such as Merrill Lynch Global Private Client, Dow Chemical, JM Family Enterprises, and TD Bankworth. "And what makes [these capabilities] a competitive advantage is that only a small percentage of companies do it well - we estimate 5 percent of firms or less." I presume to suggest that the material in this book is relevant to all organizations, regardless of size or nature. Even with their differences in terms of scale and available resources, they face the same challenge: effective application of the principles recommended by the authors.

In the final chapter, Ross, Weill, and Robertson identify and briefly discuss a number of pressures that will make a foundation for execution even more important in the coming years. They explain why companies which have learned how to implement and manage standardized and integrated processes are best prepared for the realities of the marketplace. "A foundation for execution allows a company to automate predictable processes so management can focus on higher-value tasks like innovating, partnering, and identifying new opportunities. The foundation empowers employees and enriches jobs by reducing redundant and tedious tasks while providing the information needed to innovate and customize."

After reading this brilliant book, many executives will conclude that their organization lacks a solid foundation for business execution. They will have become convinced by Ross, Weill, and Robertson of the importance of enterprise architecture as strategy. Now they are not only willing but eager to enlist the support of others to engage their organization in what is certain to be a difficult (albeit essential) "design and construction" process. However, people need to be convinced. They usually have the same two questions: "Why must we do this?" and "What's in it for me?" Fortunately, everything needed to answer these two questions is provided in the final chapter and the same material will also be invaluable during the preparation of a formal proposal to obtain institutional support throughout the given enterprise.

To Ross, Weill, and Robertson, I offer "Bravo!"

Those who share my high regard for this book are urged to check out James O'Toole and Edward E. Lawler III's The New American Workplace, Lawler and Christopher G. Worley's Built to Change, Richard Boyatzis and Annie McKee's Resonant Leadership, and George S. Day and Paul J.H. Schoemaker's Peripheral Vision. Read more ›

17 of 18 people found the following review helpful

5.0 out of 5 stars The book that bridges the gap between business and IT leadership ways of thinking. June 8, 2009

By S. A. Axelrod

Format:Hardcover

Senior management of every company is (or at least should be) concerned about optimizing performance.
Peter Weill, Jeanne Ross and David Robertson's book "Enterprise Architecture as Strategy" draws from a wealth of case studies (totaling close to 500) and proves that the ability to transform a company into a top performer is very much predicated on development of a robust foundation for execution and Enterprise Architecture.

"Enterprise Architecture as Strategy" lays out a common vision and best practices for both Business and IT leaders that are necessary if a company is going to thrive in the modern fast-paced economy. As such, it bridges the gap between the business and IT leadership way of thinking in the area of strategic planning.

Now, this is not the first book ever written on either strategic planning or Enterprise Architecture. There are plenty of books that provide business leaders with advice on how to improve performance of their companies through a strategic planning process. However, this book is unique because it presents a more methodical and architecturally-sound way of achieving desired results. Further, it does so with in-depth analysis of strategic use of information technology. This more systematic, methodical, and technology-oriented approach (as compared to other management methodologies), is based on creating Enterprise Architecture - "the organizing logic for core business processes and IT infrastructure reflecting the standardization and integration of a company's operating model".

There are also plenty of books on Enterprise Architecture written by technologists. While they provide an in-depth analysis of technological aspects of EA (i.e...., Infrastructure Architecture, Information and Data Architecture, Systems and Application Architecture), most of these books fall short of clearly explaining to top business executives why it is so important for them not only to support but also be actively involved in development of EA in their companies. "Enterprise Architecture as Strategy" addresses this issue by answering the most important question that business executives ask about EA: "what's in it for me?" It does so in a way that technology leadership can build upon by connecting business strategic priorities and operating model on one side with the strategic information technology development on the other.

It is important to acknowledge that, from the technologist's point of view, this book is about conceptual Enterprise Architecture, and not technical Enterprise Architecture. So if you are looking for a more detailed recommendation on how to build different EA constituencies -- Infrastructure, Information and Data, Systems and Application Architectures -- this book is not going to answer your questions.

For me, as an Enterprise Architecture practitioner whose work's success often (some would even say -- always) depends on support and understanding of business leaders, this book provides invaluable material that I have successfully applied working with business leaders on multiple levels. It has helped me talk to business executives in their own language, free from intimidating techno-speak and confusing technical diagrams, and arrive on common understanding of business priorities and technology objectives. Further, I was able to transform this common vision developed jointly with business leadership into comprehensive view of technology architecture that provided technical architects enough information to assure alignment between business and technology goals.

The first four chapters are as follows:
* Chapter 1 "To Execute Your Strategy, First Build Your Foundation";
* Chapter 2 "Define Your Operating Model";
* Chapter 3 "Implement the Operating Model via Enterprise Architecture";
* Chapter 4 "Navigate the Stages of Enterprise Architecture Maturity";

These first four chapters are absolutely required reading if one is to derive appropriate value from this excellent book. They form a straightforward and robust foundation that every business and IT executive needs to understand, internalize and embrace in order to successfully guide his/her company in the complex modern global technology-based economy. Some foundational concepts defined and explained in detail in these chapters are:
* Foundation for execution - digitized business processes and technology that supports them;
* Operating model - the desired level of business process integration (dictated by the common customers and products) and standardization (balance of enterprise versus local Business Units' and Divisions' interests);
* Four different types of operating model - Diversification, Replication, Coordination, and Unification;
* Architectural maturity stages - Business Silos, Standardized Technology, Optimized Core, and Business Modularity.

The rest of the book builds on the first four chapters by methodically guiding management teams thru a difficult and some times treacherous path towards building Enterprise Architecture as a foundation for a superior performing enterprise.

Chapter 5 "Cash In on the Learning."
This chapter explains that while your company would mature through all the levels of EA (from 1 to 4) as explained in Chapter 4, there are specific benefits that can be reaped at each level: Reduced IT Costs, Increased IT Responsiveness, Increased Management Satisfaction, and Enhanced Strategic Business Outcomes. The specific management practices that go along with each state are also proposed.

Chapter 6 "Build the Foundation One Project at a Time."
This chapter guides through aligning individual project priorities with the strategic direction outlined in the company's EA model. It describes IT Engagement Model that is instrumental for the goal above. The proposed IT Engagement Model has three main components:
* Companywide IT Governance
* Project Management
* Linking mechanism (between the two components above)
This chapter should be extremely valuable for any EA practitioner. Many great EA initiatives have been derailed by the mismatch between the companywide objectives of the EA and parochial interest of multiple projects that each report into own business organization and are evaluated solely on the business unit's criteria.

Chapter 7 "Use Enterprise Architecture to Guide Outsourcing."
This chapter lays out a simple taxonomy of outsourcing categories:
* Strategic partnership;
* Cosourcing alliance;
* Transaction relationship;
It explains what is being outsourced in each of the categories above as well as provides specific metrics to be used for evaluating outsourcing relationships. This chapter also establishes important connection between the Enterprise Architecture Maturity stages (as described in Chapter 4) with the aforementioned outsourcing categories.

Chapter 8 "Now -- Exploit Your Foundation For Profitable Growth."
This chapter is one more (in addition to the first four) that is an absolute must-read for business leaders. It demonstrates how profitable growth is achievable within four different types of operating models defined in Chapter 2 -- Diversification, Replication, Coordination, and Unification -- if a robust foundation for execution is built though correct application of EA principles. It is worth mentioning that the fifth stage of architectural maturity is proposed in this chapter - Dynamic Venturing.

Chapter 9 "Take Charge! The Leadership Agenda"
This chapter starts with the valuable checklist describing nine symptoms of ineffective foundation for execution. It then proposes six key steps to building a successful foundation. It continues with the Top 10 Leadership Principles needed to build successful foundation for execution.

To conclude, I would like to offer some advice to my fellow readers. While "Enterprise Architecture as Strategy" definitely provides great value if read on its own, for those who are interested in additional guidance on how to align technology investment with business objectives, I recommend another book by the same authors "IT Governance: How Top Performers Manage IT Decision Rights for Superior Results." If you have time to read both books, and I highly recommend it, you will see that they can essentially be viewed as volumes 1 and 2 of a seminal work on strategic alignment of business and IT priorities. The books connect extremely well (not surprisingly) and provide enough information for a complete and thorough discussion and implementation of both IT Governance and Enterprise Architecture.
IT Governance: How Top Performers Manage IT Decision Rights for Superior Results Read more ›