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Value proposition of Enterprise Architecture

Projects
YAWL
Business Process Management for the Creative Industries
Enterprise Information Infrastructure
BABEL
Next Generation Reference Process Models
Locating Items in Distribution Networks
Value proposition of Enterprise Architecture
Modelling in the Large
Ontological Distance
PASS
Business Object-centric BPM
Service Ecosystems Management
SAFAI
Service Choreography
MOCO
Evaluation and Acceptance of Process Modelling Grammars

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Chief Investigator: Prof Michael Rosemann

Industry partner: Water Corporation, Leederville, WA, Australia

Administering Institution: Queensland University of Technology (QUT)

Period: June 2003 - March 2006

Funding: ARC Linkage

  • $ 71,300 (ARC)
  • $ 25,000 (Water Corporation)

Category: 2801 - INFORMATION SYSTEMS

Summary:

Enterprise architecture (EA) approaches are widely accepted as a valuable means in order to enable businesses to gain back control over their IT systems, to lower costs and to accelerate decision making. However, even if various authors promise a variety of benefits from the use of enterprise architectures the real value proposition of an enterprise architecture remains unclear. As well as the costs to be invested are only vaguely known by categories, authors also fail to prove the benefits to be expected in objective and comparable terms. Therefore withholding the company's management with comprehensible and reasonable evidence of the EA's value proposition.

Consequently the proposed project aims to establish a value proposition framework enabling managers to assess an EA approach in an objective and and competent manner. As a prerequisite firstly the project will establish a comprehensive terms and definition framework concerning the domain under investigation. Afterwards the value proposition of EA approaches will be investigated in more detail. Thereby the project will pay substantial attention to the different kinds of stakeholders involved. Finally an EA value proposition framework will be established.

Project details

Significance and Innovation

Although Enterprise Architecture (EA) approaches are widely regarded as a valuable means in order to lower costs, to better align business goals and IT infrastructure and to accelerate decision making the current literature fails to provide comprehensible evidences concerning their actual value proposition. Furthermore the term Enterprise Architecture lacks a commonly agreed definition since the majority of the authors provide their own approaches. Last but not least sometimes the idea of an Enterprise Architecture seems to abused as a buzzword promising the universal solution to current IT management problems. In order to disclose the secret of Enterprise Architecture approaches a scientific procedure is needed to work out benefits and costs involved, enabling users to deduct the EA's value proposition.

This work supports the evolution of the Enterprise Architecture domain by providing:

  • a consistent term and definitions framework
  • a systematic and categorized compilation of the costs involved in and the benefits offered by an EA approach

Therefore it will contribute to a more mature discussion concerning this domain. Subsequently the area of Enterprise Architecture will turn into a better understood management topic, providing the management with a valuable (IT respectively business) governance utility. The latter will be even more supported by the value proposition framework to be developed enabling the assessment of an EA's potential value proposition beforehand.

Approach

Firstly, the project will establish a well-founded framework concerning the terms and definitions dealt with. This in turn will enable to conduct and analyse the results of a world wide survey in a consistent manner.

Secondly, case study interviews will be held at industry partners' sites analysing the attitudes of the different EA stakeholders in a company. These will provide the research fundamentals necessary in order to deduct the costs and benefits involved in an EA approach. They will also be used in order to prove the research results found by undertaking literature reviews.

Concluding the benefits and cost instances found will be based on a consistent basis and compiled into a common framework. The latter is aimed to be applied easily by any company. It will enable managers to assess the value proposition of a current or future EA approach within the enterprise beforehand, therefore facilitating them to make a well-founded investment decision. Firstly the project will establish a well-founded framework concerning the terms and definitions dealt with. This in turn will enable the project to conduct and analyse the results of a world wide survey in a consistent manner.

Research team

Professor Michael Rosemann (QUT)
Mr Eddie Chalk (Water Corporation, Perth)
Mr Rainer Schreibehenne (Deutsche Telekom AG) (in 2004)
Ms Marit Schallert (QUT, now BP London) (in 2004)
Mr Christian Kluge (sd&m AG)

Publications

M. Rosemann: Application Reference Models and Building Blocks for Management and Control (ERP Systems). In: Handbook of Enterprise Architecture. Eds.: P. Bernus, L. Nemes, G. Schmidt. Springer-Verlag: Berlin et al. 2003, pp. 595-615.

M. Schallert, M. Rosemann: Issues in the Design of Enterprise Architectures: Insights from a Case Study. Proceedings of the Conference on Enterprise Architecture and Enterprise Application Integration. St. Gallen, Switzerland, 28 May 2003, eds. J. Schelp and R. Winter, pp.42-49.

Kluge, C., Dietzsch, A., Rosemann, M. (2006): How to realise corporate value from Enterprise Architecture. Paper to be presented at the 14th European Conference on Information Systems, Göteborg, Sweden

Kluge, C., Dietzsch, A., Rosemann, M. (2006): Fostering an Enterprise Architecture’s Value Proposition Using Dedicated Presentation Strategies. Paper to be presented at Business-IT Alignment Workshop (BUSITAL' 06) to be held at 18th Conference on Advanced Information Systems Engineering (CAISE'06), Luxembourg, Grand-Duchy of Luxembourg

Dietzsch, A., Kluge, C. (2006): Strategies to Realise Corporate Value from Enterprise Architecture. Case study presentation at the Enterprise Architecture Conference Europe (EAC 2006), London, United Kingdom