Enterprise Architecture for Medium-Sized Businesses: Does It Make Sense?

Posted by André Christ on March 5, 2014

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Tips from an expert by Thomas Mannmeusel, CIO of Webstato SE

Enterprise Architecture Management (EAM) is still seen as topic that only applies to large companies. In the near future small- and medium-sized business cannot afford to further ignore EAM, since international competition is intensifying even for them. Only companies will persist that are able to react to dynamic changes in the market, and companies can only react when they are in control of their IT. The good news is: Even with a small budget, EAM is possible and will deliver concrete results.

Why do medium-sized companies fall behind?

Only few medium-sized companies are actively managing their Enterprise Architecture so far, due to specific obstacles to EAM in smaller businesses. EAM activities mostly have mid-term or long-term effects. Since smaller businesses traditionally enjoy a high degree of flexibility and pragmatism they do not see the benefits of EAM – until there are radical changes in the market (e.g disruptive technologies or even a merger). Then, EAM is invaluable!
Another obstacle is the fact that EAM programs are enhancing collaboration between business and IT but are seldom accepted by business departments. In its initial phase technical problems are in the focus of EAM – all non-technical departments are therefore scared away, before they can experience the benefits. Even worse, EAM often relies on a very technical language that business workers cannot understand without a huge effort. All these factors lead to the danger that EAM activities will be abandoned or exist only as silos.

Tips for successful implementation

These obstacles are no reason to further delay EAM. Instead, you have to focus on the following aspects:

- Explain the advantages
Only if non-technical business units are able to understand how they can benefit from it, EAM programs can be implemented successfully. Focus on the needs of the business: EAM makes it possible to finally align applications to business objectives. Applications, technologies and services are applied more economically. Technology risks and data security risks can be displayed and therefore treated. IT complexity can finally be reduced. The result: More flexibility and space for innovation!

- Avoid technical focus
The priority has to be the benefit of the company. Focus on concrete question from the operational business: e.g. “How can we reach new target groups in online sales?” Or “How can we support distribution abroad?”
This is not the place for discussions about methods or frameworks. Try to avoid the term EAM completely, if you talk to your colleagues or the management. Business Support Matrix is easy comprehensible and makes it clear what you mean – even to colleagues that are not firm with IT.

- Stay pragmatic
In a medium-sized business you will not meet an enterprise architect that can look after all technical details. That is no problem at all. In comparison to big businesses, your Enterprise Architecture is less complex. Use the crowd instead and try to focus only on information that is relevant for daily operations. This means to ask questions like these: “What business operations are supported by which applications?” “How good is functional coverage?” “Where are gaps?” “Do applications overlap?” “How will business processes change in 2-5 years?“
This way, data collection is easy and can be performed even by non-technical workers. For each department it only means few man-days of work. You will quickly reach the important step of the program: analysis and evaluation.

- Define clear responsibilities
EAM should provide a holistic view of all relevant business areas. It therefore needs a central point where knowledge is stored and the interaction of business processes, applications and organization can be evaluated. Define the responsible manager for Enterprise Architecture. Commonly, it is a person of the IT department, but this is only one option, since the incorporation of all affected departments should not be neglected. In order to achieve the expected benefits for the company and implement the target architecture the collaboration of all affected units is crucial.

Dr. Thomas Mannmeusel is CIO of automotive supplier Webasto SE, Stockdorf since 2009. He is responsible for IT strategy, development and operation of the global IT landscape. Before, he had different leading positions in the areas of IT, personal and supply chain management for ADVA AG Optical Networking and Infineon Technologies AG. Among his responsibilities were IT strategy, innovations and architecture management, business process management, business intelligence, as well as project management for supply chain management and advanced planning systems.
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