By Jeanne W. Ross
Company structure defines a firm's wishes for standardized initiatives, task roles, structures, infrastructure, and information in center enterprise procedures. hence, it is helping an organization to articulate the way it will compete in a electronic economic climate and it courses managers' day-by-day judgements to gain their imaginative and prescient of luck. This publication in actual fact explains company architecture's very important position in enabling--or constraining--the execution of industrial method. The e-book presents transparent frameworks, considerate case examples, and a proven-effective dependent procedure for designing and imposing potent firm architectures.
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Additional info for Enterprise Architecture As Strategy: Creating a Foundation for Business Execution
Example text
For example, the need to integrate business processes, as in Coordination and Unification operating models, makes acquisition more challenging because the new company must reconcile disparate data definitions. On the other hand, the process integration of the Coordination and Unification models facilitates organic growth through expansion into new markets or extensions of current product lines. Process standardization, as in Unification and Replication models, enables growth through a rip-and-replace approach to acquisitions.
Segments and/or channels) the company serves. Next, list the key processes to be standardized and integrated. Then identify the shared data needed to better integrate processes and serve customers. Finally, if there are key technologies that either automate FIGURE 3-2 Unification core diagram ------" m u e Q. f_ - - - - - - / - - - Required - - - Q) Optional Business process E ~ o Customer types © 2005 MIT Sloan Center for Information Systems Research and IMD. Used with permission. SS Enterprise Architecture for a Diversification Model The Diversification operating model is the opposite of the Unification model and entails both low integration and low standardization.
Process standardization, as in Unification and Replication models, enables growth through a rip-and-replace approach to acquisitions. When the acquisition is intended to create a mirror image, a company can replace the systems and processes of the acquired 39 Define Your Operating Model FIGURE 2-3 Different operating models position companies for different types of growth c 0 i... <: 0> I ~III Coordination Unification • Organic: stream of product innovations easily made available to existing customers using existing integrated channels • Acquisition: can acquire new customers for existing products but must integrate data • Organic: leverage economies of scale by introducing existing products/ services in new markets; grow product line incrementally • Acquisition: can acquire competitors to leverage existing foundation; must rip and replace infrastructure Diversification Replication • Organic: small business units may feed core business; company grows through business unit growth • Acquisition: unlimited opportunities; must ensure shareholder value • Organic: replicate best practices in new markets; innovations extended globally • Acquisition: can acquire competitors to expand market reach; must rip and replace III Q) () e Q.
