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The Centre Cannot Hold:

Making IT Architecture
Relevant In A Post IT World

Alan McSweeney
The Second Coming, William Butler Yeats, 1919

Turning and turning in the widening gyre


The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.

16 May 2017 2
Wall Separating Real Business Concerns With
Transient IT Technology Trends
What The Business Wants Apparent IT Technology
1. Securing the IT environment
Trends
2. Managing and retaining data
1. AI and Advanced Machine Learning
3. Managing IT risk and compliance
2. Intelligent Apps
4. Ensuring privacy
3. Intelligent Things
5. Enabling decision support and analytics
4. Virtual and Augmented Reality
6. Managing System Implementations
5. Digital Twin
7. Preventing and responding to computer
6. Blockchain
fraud
7. Conversational Systems
8. Governing and managing IT investment/
8. Mesh App and Service Architecture
spending
9. Digital Technology Platforms
9. Leveraging emerging technologies
10. Adaptive Security Architecture
10. Managing vendors and service providers

May 16, 2017 3


The Business Experience Of IT

The business experience of IT systems are:


Slow and costly to deliver and all to frequently late and not what
the business needs
Unmanageably complex and costly to maintain
Hindering the organisation's ability to respond to business and
economic changing environment
Not integrated
Mission-critical information is consistently out-of-date
and/or actually incorrect and/or only partially available
A culture of distrust persists between the business and
technology functions of the organisation

May 16, 2017 4


IT Too Often Fails to Support Business Change
Effectively
Technology integration is costly, risky and complicated
Information is everywhere but getting access to the right
information at the right time is very difficult
The business wants IT to be fast and flexibility
The business gets IT that is sluggish and rigid
Modifying system behaviour takes too long and changes
are difficult to communicate and implement effectively
Much of IT system and operations expenditure is bloated
and fixed where operations run with excess redundant
capacity
IT seen as a cost centre and not a source of business value

May 16, 2017 5


Trends In Business Use Of IT Affecting The Relevance
Of IT Architecture
Business need to
Business shift to respond to the
cloud service interrelated
providers developments of
offering digital, mobile and
infrastructure- social computing
less solutions and perceived
with no inability of the
perceived IT central IT function
involvement to respond

Outsourcing and the


divestment of IT
functions in response to
business wishes to
16 May 2017
remove the overhead 6
Trends In Business Use Of IT Affecting The Relevance
Of IT Architecture
Business shift to cloud service
providers offering infrastructure-
less solutions with no perceived
IT involvement that can be
operational quickly Business avails of
Business need to respond to the these trends to
interrelated developments of bypass what they
digital, mobile and social view and experience
computing and perceived as an unresponsive
inability of the central IT function central IT function
to respond and go directly to
Outsourcing and the divestment external providers
of IT functions in response to
business wishes to remove the
overhead
16 May 2017 7
Trends In Business Use Of IT Affecting The Relevance
Of IT Architecture
Business is tending to shift from internal IT function to external
solution and service providers because of perceptions that the
internal IT function cannot deliver solutions to meet business
needs
IT provides a competitive advantage to businesses but the IT
solutions do not have to be provided internally
Business can and does bypass the IT function if it does not
listen to the business and deliver solutions that enable delivery
of business objectives
The business will look elsewhere for the necessary IT solutions
The consequence will be a fragmented and balkanised IT
solution landscape that is costly to operate and support
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Trends In Business Use Of IT Affecting The Relevance
Of IT Architecture
It is now all too easy for the business to bypass the central
IT function
There are many easy options for the business while
selecting the internal IT function is too commonly the hard
option

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Increasing Trend In Outsourcing Non-Core Functions

Increasing and continuing trend of organisations moving


from in-house solution delivery to sourcing solutions
externally
Intended to improve operational efficiencies by using
external suppliers perceived abilities to provide cost-
effective, fit-for-purpose solutions quickly using the right
technology
Responsibility and accountability for solution delivery and
operation stills lies with the acquiring organisation

May 16, 2017 10


IT Solution Acquisition Trends

Greater level of solution acquisition rather than custom


development
Greater acquisition of services with lengthier service
relationships
Under the Cover acquisition/outsourcing in the form of
cloud/XaaS
Cloud leading to ad hoc proliferation of outsourced services as
business functions bypass what is perceived as slow, expensive IT

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Divestment Of Non-Core Functions

Organisations divesting
themselves of what they see as Non
non-core functions Core
Function
Example of the application of
Coases Law on the Nature of Non Non
Core Core
the Firm Function Function
A firm will tend to expand until the
cost of organising an extra Core
transaction within the firm become
equal to the costs of carrying out Business
the same transaction on the open
market Non Non
When it is cheaper to buy the Core Core
service externally it will generally Function Function
be bought externally Non
Core
Function

May 16, 2017 12


Divestment Of Non-Core Functions

Non
Outsourcing of IT is because
Core maintaining an internal IT
Function function is seen as not relevant
Non Non or no longer offers a
Core Core competitive advantage
Function Function
Shrinking core competency
Core
focus as organisations move
Business
from in-house solution delivery
Non Non to sourcing solutions externally
Core Core
Function Function
Non
Core
Function

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Business View of IT

IT is viewed by the business as being


Expensive
Not connected with business strategy and operations
Unresponsive to the changing needs of business
Viewed as a critical issue as business agility and responsiveness are essential
for competitiveness
Undefined and unclear as a business asset
In terms of financial cost and value
Return on investment and value for money from IT is relatively poor
The capability the asset should deliver to the business
Not delivering its promises
Business change projects cost more and deliver less value than
expected or promised

May 16, 2017 14


Causes of Business View of IT

Business applications tend to be implemented on a project


by project basis for specific purposes without overall
context
Project benefits and success have been measured on
specific project costs, value and time to market without
measuring the long term enterprise-wide cost and value
Average 70% of total IT budget on run-the-business
operations and 30% on new solution investment
Technology innovation has tended to deliver specific short-
term benefits but in the long term can make matters
worse

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Shadow IT Expenditure IT Architecture Failure And
A Post-IT World
CEB Global - estimate in 2013 that 40% of IT expenditure does
not go through the central IT function
Everest Group - estimate in 2017 that 50% of IT expenditure
does not go through the central IT function
The problem of the business bypassing the central IT function is
getting worse
Shadow IT is an unpleasant reality
Shadow IT is a symptom of a post-IT world
The central IT function loses relevance and control
Businesses reduce their reliance on the core IT function
The extent of the problem may be masked by IT outsourcing
which may be notionally counted as a central IT spend
The failure of IT architecture to engage with business
requirements owns part of the blame
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Pressures On Business
Globalisation
Service
Cost and
Focus and
Efficiency
Customer
Pressures
Expectations

Challenging
Increased Pace
Economic
of Change
Circumstances

Business
New Business
Consolidation
Models

Increased
Competition
Regulation

Mobile and
Business and
Social
Technology
Computing
Changes
Changes

May 16, 2017 17


Business Pressures Are Driving Business And The
Need for IT Change
Globalisation Mobile and Social Computing Changes
Customers, partners, suppliers and greater competition New platforms and technologies creating customer new
Connectedness driving value chains expectations of business that IT must respond to
Service Focus and Customer Expectations New platforms and technologies offering opportunities
Differentiation and shareholder value increasingly to change the way in which business is conducted that
derived from service experience must be supported by IT system changes
Challenging Economic Circumstances New platforms and technologies allowing competitors to
Need to cut costs and demonstrate real savings differentiate themselves that IT must help the business
Justify technology investments in responding to
Consolidation Competition
Mergers, acquisitions, takeovers and the need to Greater competition from businesses with different
integrate IT systems, platforms and data business models means both the need to reduce cost,
improve efficiency and change business structures and
Increased Regulation
Industry regulations, consumer pressure and competition driving associated IT systems
openness New Business Models
Increased regulation and governance - business is turning to IT to Newer ways of doing business means the need for new
help and IT struggling to respond IT systems and technologies
Business and Technology Changes Increased Pace of Change
IT becoming commoditised - growth of standards-based Change is happening more quickly reducing the time the
technology means that proprietary solutions provide business and IT has to react
less differentiation
Cost and Efficiency Pressures
Speed of technology change
Need to do more with the same or less
Outsourcing where the right outsourcing decisions
require an understanding of how systems contribute to
the business

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Business Pressures And Business IT Needs
Globalisation

Service Focus and Required


Customer Expectations Business Operational
Processes Business
Challenging Economic Systems
Circumstances

Consolidation
Information
Increased Regulation Technology
Business and Technology
Changes
Business
Strategy
Business
Objectives
Business
Operational
Model
Business IT
Strategy = The Business
Needs To
Operate,
Competition
Respond To
Mobile and Social Pressures And
Computing Changes Innovate
New Business Models The pressures the business experiences
Increased Pace of Change gets passed to the IT function in order to
Cost and deliver solutions to meet the challenges
Efficiency Pressures

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Pressures On Business Means Pressures On IT

If the IT function
cannot react to
Business the IT Strategy
Business
Strategy and requirements of and
Pressures the business, the
Requirements Delivery
business will go
elsewhere

Business shift to Outsourcing and the Business need to


cloud service divestment of IT respond to the
providers offering functions in interrelated
infrastructure-less response to business developments of
solutions with no wishes to remove digital, mobile and
perceived IT the overhead social computing
involvement and perceived
inability of the
central IT function to
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Idealised View Of Business And IT Linkage And
Alignment Required
Business Operational
Processes Business
Systems
Solution
Design/
Selection/
Sourcing

Solution
Business Business IT Management
Business Business Implementation
Operational IT And
Strategy Objectives Architecture And
Model Strategy Operations
Delivery

IT Infrastructural
Function
IT architecture should act Strategy
Systems
Design/
Selection/
as a glue joining the Sourcing

business strategy to the IT


strategy IT Function
Structure,
Required IT
Infrastructure
Approaches, Business
Standards Systems
IT architects should be the
enablers of this orientation IT Function Required
of business and IT Resourcing And
Management
IT Operational
Processes
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Idealised View Of Business And IT Linkage And
Alignment
The idealised view of the alignment of business and IT
shows a direct link between business strategy to business
IT strategy to IT function strategy
The IT architecture function plays a key role in joining both
sides

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The Theoretical Benefits Of IT Architecture
Duplication in
Unmanaged Resources to
Complexity in IT Increased Cost Develop, Operate
Landscape and Maintain
Business Systems

Cannot to Exploit
Leads To .. Reduced Economies of
Flexibility Loading and
Scale

Complexity
Delays in
Causes
Delivering
Difficulties and
Changes
Uncertainties

Thus Negatively Longer Design,


Impacting on Build, Test and
Business Performance Delivery Time

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But An Ineffective IT Architecture Function Causes
The Problems It Should Be Solving
Duplication in
Unmanaged Resources to
Complexity in IT Increased Cost Develop, Operate
Landscape and Maintain
Business Systems

Cannot to Exploit
Reduced Economies of
But An Flexibility Loading and
Ineffective Scale
Architecture
Function Leads to
Business
Bypassing IT Complexity
Delays in
Causes
Delivering
Difficulties and
Changes
Uncertainties

Multiple Longer Design,


Separate Unmanaged Build, Test and
Solutions Complexity in IT Delivery Time
Selected Without Landscape
Con-ordination
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Notional Value Of IT Architecture
Appropriate
and Effective IT Promotes
Architecture Actions and
Decisions That

Align Information Technology Plans and Investments with


Business Priorities and Requirements

Result in More Integrated Operations Responsive to


Customer and Business Requirements

Promote a More Efficient and Effective IT Infrastructure

Facilitate Cross-Organisational Sharing of Enterprise


Information

Recognise Innovations and Best Practices Across the


Enterprise

Ensure Traceability of Decisions Back to Principles and


Rules
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Notional Value Of IT Architecture Not Achieved
But the IT And Fails To
Appropriate
Architecture Deliver The
and Effective IT
Function is All Expected
Architecture
Too Ineffective Benefits

Align Information Technology Plans and Investments with


Business Priorities and Requirements

Result in More Integrated Operations Responsive to


Customer and Business Requirements

Promote a More Efficient and Effective IT Infrastructure

Facilitate Cross-Organisational Sharing of Enterprise


Information

Recognise Innovations and Best Practices Across the


Enterprise

Ensure Traceability of Decisions Back to Principles and


Rules
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Dimensions Of Business Needs Of IT Solutions

Lots Of
Unnecessary
Functionality At
How Quickly
The Expense Of
The Solution
Long Delivery
Is Operable
Time Is Not
And Usable
What Is Needed

What The
Solution Does

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Dimensions Of Business Needs

The business needs appropriate solutions delivered quickly


The business needs leadership in understanding what the
need
The business needs active engagement from the IT
function and IT architecture

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Business And IT Linkage And Alignment The Reality
Required
Business Operational
Processes Business
Systems

Business Business
Business
Business IT
Information
Operational
Strategy Objectives
Model
Strategy Technology
Function

What really happens is that the IT function all too


frequently reacts slowly and only partially to business
pressures and needs
The operation of the IT function is opaque to the business
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IT Architecture Role Landscape
Enterprise Architecture

Business
Architecture
Information
Architecture

Enterprise IT Enterprise
Enterprise Information Systems Architecture Solution
Information Architecture Enterprise Architecture
Governance Security
Technology Architecture
Architecture Enterprise IT
Technology
Infrastructure
Architecture

Multiple overlapping inward-looking technology-focussed


dogmatic siloed disciplines
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IT Architecture Role Landscape Some Questions

Is the complexity of IT architecture and its multiple separate


views contributing to the problems between business and IT?
Are the separate IT architecture functions too inwardly
focussed rather than being business focussed?
Is the hierarchy within IT architecture roles with enterprise
architecture perceived as the highest ranking function part of
the problem?
Is there a need for an overarching IT architecture function not
enterprise architecture - that co-ordinates the activities of
specific IT architecture roles?
Is there a need for non-technology involvement in IT
architecture to provide a business dimension to ensure linkage
between architecture and business exploitation of technology?
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IT Architecture Is Rarely About The Enterprise

All to frequently inwardly focussed, staffed by IT personnel


Demonstrates aspects of groupthink and focalism
Too remote from business concerns and not business oriented and focussed
Concerned with documenting current IT technology state, standards and
processes in detail
Too dogmatic
Focused on compliance, control and government and adherence to rules
Obsessed with architecture frameworks, models and patterns
Overly controlling
Reactive
Inflexible
Communicates to the business badly, if at all
Not concerned with delivery
Does not measure its delivery in terms of business benefits realised

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IT Architecture Function Groupthink

The need for agreement, accord and compliance within


the group results in a flawed, illogical and inhibited
decision-making processes and decisions
Group becomes dominated by small number or single
individual who forces their beliefs on the group
Tendency for consensus and agreement and the desire to
minimise contention means alternatives are not fully
evaluated
Group isolates itself from information on alternatives
Disagreement and dissent are quashed or concealed
through self-censorship

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Groupthink Symptoms And Characteristics
Illusion of Members ignore obvious danger, take extreme risk, and
Exaggeration Of The Invulnerability are overly optimistic
Power And Rightness
Of The Group Illusion of Members believe their decisions are morally correct,
Morality ignoring the ethical consequences of their decisions

Collective Members discredit and explain away warning contrary to


Rationalisation group thinking
Closed-Mindedness
Excessive The group constructs negative stereotypes of rivals
Groupthink Stereotyping outside the group

Members pressure any in the group who express


Pressure for
arguments against the group's stereotypes, illusions, or
Conformity commitments, viewing such opposition as disloyalty

Self- Members withhold their dissenting views and counter-


Uniformity, Censorship arguments
Unanimity and
Suppression of
Dissent Illusion of Members perceive falsely that everyone agrees with the
Unanimity group's decision; silence is seen as consent

Some group members appoint themselves to the role of


Mindguards protecting the group from adverse information that might
threaten group complacency
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Technology Influences And Impacts On Business And
IT
An effective business oriented IT architecture function can
get the correct balance between too little and too much,
too slowly and too quickly

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IT Architecture As Internal Business Consulting And
Advisory Function
What IT Architecture Can Do

Identify trends in advance that offer opportunities or


represent challenges
Assist with the design and development of new
business models
Acquire the skills and experience to be a credible
business advisor What IT Architecture Must Do To Achieve
Be able to translate innovation and creativity into Its Potential
practical, realistic, implemented and operated
business solutions
Take an appropriate and sufficient approach to
architecture
Take a realistic approach to innovation
Radical innovation
Incremental innovation
Innovation By reapplication
Focus on simplicity and speed rather than
completeness and perfection
Understand appropriate complexity
Be able to react to changes quickly

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IT Architecture Translating What Into How

Translate the What of

What business requirements into


the How of technology and
process
How

Translate the What of new


How technologies into the How of
the application to the business
What

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Co-Ordinated And Business Focussed IT Architecture
Function Structure

IT Architecture Management, Co- Business Involvement


ordination and Delivery

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IT Architecture Team

Needs to operate as a team rather than a set of siloed


internally focussed IT roles
Involve business as well as technologists

May 16, 2017 39


Co-Ordinated And Business Focussed IT Architecture
Function
Eliminate the divisions between the separate IT
architecture roles
Get the business involved in the IT architecture function
Manage and co-ordinate all IT architecture centrally
Measure delivery and benefits achieved
Outward, future-oriented

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The Importance Of Early Engagement In IT
Architecture
Early engagement in the solution delivery process occurs
before any solution delivery project is initiated
The objective is to is understand the scope, requirements,
objectives, approach, options and to get a high-level
understanding of the likely resources, timescale and cost
required before starting the project
Allow the feasibility of the solution options to be assessed
Converts a request from the business to an explored and
refined high-level solution proposal that facilities informed
decision-making
Early engagement is the IT function providing true consulting
services and value to the business
Being a partner to the business

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Solution Delivery Phases And Early Engagement
Time

Project Stages/ Timeline


Manage
Early
Concept Initiate Plan Design Build Test Deploy and
Engagement
Operate
Project
Management

Business Function
Project Activity/ Function

Business Business Analysis

Functions/ IT Architecture
Roles
Implementation
and Delivery
Solution
Test and Quality
Delivery
Organisation
Readiness
Service
Management
Infrastructure and
Communications

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An Effective Early Engagement Process Requires

A consistent, organised and controlled approach to


performing such engagements
A standard method for performing analysis, collecting
information, engaging with the business, making
assessment and solution option identification
A process for managing early engagements from resources
required to engagement with the business to prioritisation
to quality management, assurance and control
A standard and consistent approach for representing the
results of the engagement

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IT Needs To Deliver Business-Oriented
Solutions
IT Lens

Supplier
Ecosystem

Business

Required IT Needs To
IT Focus
Appropriate
Solutions Services on
Technology Appropriate
Landscape Suppliers and
Technologies

IT Needs to Mediate Between the


Business and Suppliers/ Technologies,
Acting as a Lens Focussing Business
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Needs on Appropriate Solutions 44
IT Lens

The IT function needs to be a lens focussing and


concentrating solution needs onto solution options
The IT function needs to successfully mediate between the
business as the originator of a solution requirement and
the solution and its provider, either internal or external or
both
The IT function needs to be good at moving from analysis
and option identification to an implementation decision
quickly and effectively
IT architecture is the solution lens

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IT Function Mediating Between Solution
Requirements And Solutions Delivered
The IT function needs be skilled at the co-ordination of the
acquisition and procurement of delivered operable usable
solutions
IT architecture needs to design solution landscape to meet
the business needs
IT needs to be good at solution delivery and provision
along the solution journey from initial need to service
introduction and transfer to production

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IT Architecture In Business And IT Context
Required
Business Operational
Processes Business
Systems
Systems
Design/
Selection

Solution
Business Management
Business Business Business IT IT Implementation
Operational And
Strategy Objectives Strategy Architecture and
Model Operations
Delivery

IT Architecture needs to be able to contribute to the development of business strategy and to be trusted to
be able to make a contribution

How the business can use technologies and how the business should be shaped to take advantage of
technologies

Provide advice on the potential of new technologies and how to react to technology changes

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Offer real business consulting and the addition of business value 47
Three Interrelated Strategies Business, Overall
Organisation IT Strategy And Internal IT Function Strategy
Business Strategy
Defines the strategic goals,
imperatives and initiatives to
direct the business
Business strategy is the
principal driver of IT strategy
IT strategy is developed to
support the business strategy
IT can also provide
opportunities to reshape the
business strategy
Organisation IT Strategy
Defines the strategic direction
of information technology
within the organisation
required to support and
achieve business strategy.
IT Business Function
Strategy IT Business Function Strategy
Defines the strategic direction
of the IT function to develop, Locations Business Organisation
deploy, operate, manage and and Offices Processes
support the IT systems
needed by the business
Includes processes and Systems and Technology Information
supporting technology Applications and Data

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IT Strategy Contexts and Perspectives on Change
and Impact
Two `required components of the strategy of
the IT function

Business-Oriented IT Strategy Context


Business-Oriented Strategy Context Business Processes focuses on the actions, how and
Locations Business in what sequence activities are carried out, what
and Offices Processes Organisation rules are followed, and the types of results obtained
Organisation focuses on the people and organisations
involved in the change: their culture, capabilities,
Systems and Information capacities, roles, structures, and organisational units
Applications Technology and Data Location and Offices focuses on the geographic
distribution of locations where business is conducted
and the characteristics of various location types

Technology-Oriented IT Strategy Context


Technology-Oriented Strategy Context Information and Data focuses on business rules,
Locations Business content, structure, relationships, and the
and Offices Processes Organisation transformation of information used by processes and
applications
Systems and Applications focuses on the capabilities,
Systems and Technology Information structure, and user interface of software applications
Applications and Data and components
Technology focuses on the hardware, system
software, and communications infrastructure used to
enable and support systems and services
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Getting The Introduction of New Technologies
Balancing Act Right
React Too Quickly

Implement Implement
Too Little Too Much

React Too Slowly


An effective business oriented IT architecture function can get the
correct balance between too little and too much, too slowly and too
quickly
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Technology Influences And Impacts On Business And
IT
New technologies offer New technologies may not
the potential for new deliver their apparent
opportunities, if promise and potential
effectively implemented
and used

The use of new Implementing new


technologies by technologies has direct
competitors and and indirect costs to the
customers forces the organisation: lost
organisation to react opportunity elsewhere
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Extended IT Architecture Balancing Act
Organisation- React Too
Wide Quickly

Implement Strategic
Too Little Focus

Tactical
Focus Implement
Too Much

React Too Limited to


Slowly Business
Function
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IT Architecture And The I Word

The word Innovation is being used and misused pervasively without


clear definition, meaning or understanding
Every organisation claims to be pursuing and driving innovation or
offering innovation development services
But are they?
Innovation is not just about ideas
Innovation is about driving the generation of good ideas and
ensuring their appropriate adoption in order to generate value
Innovation is or can be a process (that can be measured)
Innovation is about generating business value an idea without
implementation has little meaning
IT architecture needs to be an IT innovation powerhouse

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Innovation =

Good Idea That is Defined and Validated

+ Appropriate Implementation and Adoption

+ Generation of Value

May 16, 2017 54


Innovation Can Be

A new idea

OR

An existing idea or process that is improved

OR

An existing idea or process implemented or applied elsewhere

May 16, 2017 55


Innovation

Is not necessarily one big idea

It can be lots of little ideas

May 16, 2017 56


Innovation Is All About Value

Sometimes

{ Value
} >> { Value
}

May 16, 2017 57


Where And What Are The Innovation Ideas?
Incremental Innovation By
Innovation Area Radical Innovation
Innovation Reapplication
Business Model

Networking and Alliances

Core Processes

Enabling Processes

Product Performance

Product System

Service

Channel

Brand

Customer Experience
May 16, 2017 58
Summary

Business has a consistently poor experience of the internal IT function


It is now all too easy for the business to bypass the central IT function
If the IT function cannot react to the requirements of the business due to business
pressures, the business will go elsewhere
Shadow IT - the acquisition of IT solutions outside the control of the IT function - is an
unpleasant and common reality
Shadow IT is a symptom of a post-IT world
The central IT function loses relevance and control
Businesses reduce their reliance on the core IT function
IT architecture should act as a glue joining the business strategy to the IT strategy
IT architecture needs to operate as an internal business consulting And advisory function
An effective business oriented IT architecture function can get the correct balance between
too little and too much, too slowly and too quickly
The IT Architecture team needs to operate as a team rather than a set of siloed internally
focussed IT roles, involving business as well as technologists
IT architecture can lead the innovative application of IT to delivery business value
Effective early engagement in the solution delivery process delivered through IT
architecture occurs before any solution delivery project is initiated

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More Information

Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

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