SBM4303 Assessment 3: Enterprise Architecture Report

This report provides a detailed analysis of Enterprise Architecture concepts through three case studies: SteelCo, MultiCorp, and FinCorp. The report begins by examining SteelCo's architecture function, including necessary positions and architect requirements. It then delves into MultiCorp's operatio...Read More

Enterprise Architecture

Table of Contents
Assessment 3....................................................................................................................................1
Report 1.1. (Case Study)..................................................................................................................1
1. Report on way to structure the architecture function by SteelCo in terms of necessary
architecture positions...................................................................................................................1
2. Architects need for each position require to structure the architecture function.....................1
Report 1.2 (Operational Model of a Multi-profile company)..........................................................2
1. Operating Model of MultiCorp with explanation of three strategic business units.................2
2. Business process that standardised company at wide level and within each business units. . .5
3. Data integrated across company and in its each business units...............................................7
4. Highest-level structure of IT landscape in MutliCorp and in its each business units..............7
Report 1.3.......................................................................................................................................11
1. Issues with installation of EA tool.........................................................................................11
2. Arguments on whether EA tool adding value to FinCorp.....................................................11
3. Way to utilise EA tool for facilitating the business and IT alignment..................................11
4. Steps for maximising the value of tool for FinCorp..............................................................12

Assessment 3
Report 1.1. (Case Study)
1. Report on way to structure the architecture function by SteelCo in terms of necessary
architecture positions
SteelCo is one of the largest steel manufacturing companies, which has grown its business
through merger and acquisition strategies. It’s business at present is split into the two main
divisions as Division Alpha and Division Beta, where both are governed under central head
office. Since, both companies have their own agendas and work individually without overlapping
their suppliers, distributors and more. Therefore, it is essential for this company to must follow
appropriate structure for monitoring performance of each division, as shown below –
2. Architects need for each position require to structure the architecture function
As SteelCo Company has two main branches which are working independently from each
other, therefore, it needs to employ architects individually for both branches. It has evaluated that
first branch i.e. Division Alpha specialises on fabricating the single unit of product therefore, one
architect is enough for this firm, who has capabilities to design specific structure for monitoring
performance of each and every function separately. While the other branch i.e. Division Beta, as
it has three product lines, therefore, architects for each position needs to employed.
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Centre Head Office
(SteelCo)
Division Alpha Division Beta
Only one core line of
product
First Core Line of
Product
Second Core Line of
Product
Third Core Line of
Product

Report 1.2 (Operational Model of a Multi-profile company)
1. Operating Model of MultiCorp with explanation of three strategic business units
As MultiCorp is the diversified and multi-profile company, whose main role is to oversight
the subsidiary units of business as well as measure financial performance indicators. But, it has
no operational interventions because the given three subsidiaries have their own managing
directors. Therefore, operating model of this company will be
Figure 1: Beta Operating model
With respect to its first business unit i.e. Unit Alpha it is food manufacturing business and
responsible to produce and distribute a range of goods to local food shops and major retailers at
marketplace. For managing quality of each range of product, it has separate product department,
having specialised production process, transportation approaches and arrangement for storage.
Along with this, all product lines are specifically served by number of functions such as logistics,
legal, accounting, HR and more. Therefore, operating model of Unit Alpha (the subsidiary
branch of MultiCorp) could be –
2

Figure 2: Operating Model of Unit Alpha
In context with second subsidiary unit of MultiCorp i.e. Unit Beta, it competes within
restaurant business and controls a chain of fast-food restaurants. Currently, near about 80 chain
of restaurants that are located within various geographies, all having same interior, menus, meals
and other services. But each restaurant has its own management, marketing and branding system
to run independently. Therefore, it follows the below operating model –
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Figure 3: Operating Model of Beta
While the third subsidiary of MultiCorp – Unit Gamma, it operates a chain of the resort
hotels which are gravitated towards offering the premium quality of services to targeted
customers, with high-end price. Its competitive strategy mainly implies on making improvement
in brand recognition, in order to achieve the high customer experience. It follows the given
operating model to achieve its current objective –
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Figure 4: Operational Model of Unit Gamma
2. Business process that standardised company at wide level and within each business units
In order to standardised the company at wide level, it is essential for managing director of
each firm to make strategic choice, for earning high-satisfaction of customers. Standardise means
to produce maximum variety of goods and services, through minimum resources and materials.
Steps to standardise the food safety by Unit Alpha –
For standardising business, this subsidiary of MultiCorp needs to adopt operative
marketing instruments. It must work on Front-end offers and Back-end process, by digitising the
marketing and supply chain process. For this purpose, by considering on following procedure, its
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management or each department will analyse manner in which they have to perform their role for
enhancing its image at marketplace.
Figure 5: Supply chain process
Steps to standardise the food safety by Unit Beta –
As restaurant chains need to work more harder to develop and maintain standardisation of
business, to remain longer at marketplace. For this purpose, they must adopt the digital work
management process which would help in digitising the processes, by guiding the staff how to
enforce process for leading the customers to receive consistent experience, at their each and
every site. This process also helps in enhancing food safety management; improving control and
monitoring performance in real-time manner; ensuring that customer gain consistent taste
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experience; and supporting greater productivity to ensure that each chain operates efficiently
with productive staff.
Steps to standardise the business by Unit Gamma –
To develop and meet standardisation of business, management of Unit Gamma need to
consider on maintaining the four standards. It includes time (reservation confirmation must
deliver within 24 hours via e-mail), productivity (in terms of norms), quality (must be subjective
but less measurable); and last is cost (amount of inventories, labour costs etc.). All these aspects
will aid to this subsidiary to maintain its business standardisation. Along with this, management
of this unit also need to develop efficient marketing strategy to oversee the customers’ views for
maintaining consistency of their experience. This would help in making modification in
operational activities, for providing best services to customers, that will lead further to develop
brand image of given firm.
3. Data integrated across company and in its each business units
Data which needs to be integrated in MultiCorp includes profit & loss statement of each
subsidiary, that helps this firm in measuring the financial condition of them at individual level.
While data regarding with inventories, quality of food and delivery report could integrate into
Unit Alpha, to manage its inventories. In context with Unit Beta and Gamma, both are required
to collect data about customer satisfaction, so that brand image can be improved and
management, by making changes in business process if needed.
4. Highest-level structure of IT landscape in MutliCorp and in its each business units
As MultiCorp is responsible to handle all three subsidiaries therefore, highest level
structure followed by this company is -
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The Unit Alpha follows the given IT landscape structure to manage all its functions –
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While Unit Beta follows given structure –
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The Unit Gamma follows structure as given below –
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Report 1.3
1. Issues with installation of EA tool
In order accommodate EA practices and boost its initiative with growing problems of non-
transparency of IT, FinCorp which is a mid-size financial company, installed a newly EA tool.
This tool is much powerful and expensive but after installation, it has seen that it is just a
sophisticated repository regarding with current-state information. Another main problem that
have seen is about its usage i.e. this tool can only be used by 4 to 5 people of entire team of
architects. It doesn’t facilitate any timely information regarding with business decisions to
stakeholders in desired manner. Along with this, as main objective of FinCorp if to take
initiatives for improving business functions and IT alignment, therefore, it has seen by CIO of
present firm that new EA tool fails in meeting the same.
2. Arguments on whether EA tool adding value to FinCorp
However, it has seen that CIO of FinCorp was much skeptical towards installation of
chosen EA tool, but establishing the central repository in order to store architectural information,
as well as sent team of architecture for specialised training help this firm in improving much of
its work. Getting appropriate training helps architects to documented most of the areas of IT
landscape, including other business processes within EA repository, give advantage to present
firm in aligning its information technology more efficiently. It is further identified that architects
of this financial firm also satisfied to work with features of new EA tool, in terms of modelling,
analytical capabilities and visualisation. Therefore, all these evidences indicate that investment in
purchasing and installation of new EA tool, add value to business of FinCorp.
3. Way to utilise EA tool for facilitating the business and IT alignment
As alignment of information technology and business processes is considered as the top
concerns of IT department of a company, because it directly impacts on agility and flexibility of
business to change as per organisational need. Therefore, for this purpose, to assess and achieve
these alignment, installing new EA (enterprise architecture) seems to be more valuable. But due
to different domains of such tool, it sometimes fails to deal in an integrated manner. Along with
this, each domain has its own language, describes own model as well as using individual tools
and techniques. In this regard, to tackle these challenges and aligning business or IT with new
EA tool, it is recommended to architects of FinCorp, to analyse the current condition first, that
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helps in determining strategy to utilise this tool appropriately. After then, document current
architecture state and design future one. For this purpose, they need to evaluate comprehensive
and accurate state of company, in terms of all domains such as business processes, organisational
structure, applications, information and infrastructure etc. Along with this, they can also utilise
TARTARUS Model that helps in developing a framework, for aligning business data and
architecture processes, in following way –
4. Steps for maximising the value of tool for FinCorp
As EA (Enterprise Architects) is considered the highest pain discipline within IT function
of a company. Therefore, to maximise its utilisation, company must ensure that all professionals
must be highly skilled. The skills and highly experiences architects with combination of right EA
tools, will give support company in terms of business agility, having lowered exposure to risk. In
this regard, as FinCorp mainly willing to align right business strategy and execution of IT
function properly. Therefore, to utilise EA tool for meeting this demand and increase its value
for getting support to increase future capabilities of business, management of respective firm
needs excellent strategic thinking, effective communication as well as problem solving skills.
Along with this, they also require to bring broad range of technical capabilities, which would can
only be possible by hiring some new architects, who are highly experiences in given field. In
addition to this, introducing enterprise-wide collaborative tools, new EA tool which is installed
currently by FinCorp can start to break down the silos across entire business architecture,
information system and architecture, in order to better directing the development priorities of
organisation.
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