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[TermProjectReport]UnderstandingofEnterpriseArchitecture-EssencesandFrameworkInBong(I.B)JeonMBA2007April28,2007BADM590:ITGovernance,InformationTrust,andRiskManagementProfessorMikeShaw1TABLEOFCONTENTSAbstract31.DefinitionofEnterpriseArchitecture42.EssencesofEnterpriseArchitecture63.FrameworkofEnterpriseArchitecture83.1.BusinessArchitecture3.2.ITArchitecture3.3.ArchitectureGovernance3.4.ImplementationofArchitecture4.CriticalSuccessFactors16ConclusionandFindings17Appendix18Reference202ABSTRACTAsthesizesandscopesofbusinessentitiesareexpanding,theITgovernancebecomesmuchmorecomplicatedandimportantthanbefore.BecausecontrollingITgovernancebecamethemostcriticalpartofbusinessactivitiesespeciallyforcompanieswhoseorganizationsaredecentralizedorhavemanysub-divisions,EnterpriseArchitectureisemerginginmanybusinessentities.Themorebusinessfunctionsare,themoredifficulttheITgovernanceworks.Becauseeachbusinessunithasitsownagendaoftheunit’sbusinessgoalswithownITinfrastructure,eachbusinessunitmightbeoutoflinefromthewholebusinessstrategy.Organizationalsub-units’efficiencymightnotresultinthebestefficiencyoftheaggregatewholebusinessentity.Itisnecessarytohighertheefficiencyofeachsub-unitandthatofthewholebusinessentityatthesametime.EnterpriseArchitectureisnotapartofITgovernancebutitisacriticalsystemtohelpITgovernanceworkefficientlyintermsofEffectiveness,TransparencyandAccountability.IwouldliketodefineEnterpriseArchitectureasthestructureofmanagementandcontrolforITgovernanceasawhole.TounderstandtheconceptofEnterpriseArchitecturethroughthispaper,IamgoingtodescribeessentialfeaturesofEA(EnterpriseArchitecture)andtheframeworkofitingeneral.31.DefinitionofEnterpriseArchitectureEnterpriseArchitecture(EA)isthepracticeofapplyingacomprehensiveandrigorousmethodfordescribingacurrentand/orfuturestructureandbehaviorforanorganization'sprocesses,informationsystems,personnelandorganizationalsub-units,sothattheyalignwiththeorganization'scoregoalsandstrategicdirection.Althoughoftenassociatedstrictlywithinformationtechnology,itrelatesmorebroadlytothepracticeofbusinessoptimizationinthatitaddressesbusinessarchitecture,performancemanagement,organizationalstructureandprocessarchitectureaswell.EnterpriseArchitectureisbecomingacommonpracticewithintheU.S.FederalGovernmenttoinformtheCapitalPlanningandInvestmentControl(CPIC)process.TheFederalEnterpriseArchitecture(FEA)referencemodelsserveasaframeworktoguideFederalAgenciesinthedevelopmentoftheirarchitectures.TheprimarypurposeofcreatinganEnterpriseArchitectureistoensurethatbusinessstrategyandITinvestmentsarealigned.Assuch,enterprisearchitectureallowstraceabilityfromthebusinessstrategydowntotheunderlyingtechnology.4BecauseEnterpriseArchitectureiscloselyrelatedwithITGovernance,IwouldlikepointoutsomebasicthingsaboutITgovernancefirstbeforewegetintomoreaboutEnterpriseArchitecture.InformationTechnologyGovernance,ITGovernanceorICTGovernance,isasubsetdisciplineofCorporateGovernancefocusedoninformationtechnologysystemsandtheirperformanceandriskmanagement.TherisinginterestinITgovernanceispartlyduetocomplianceinitiatives(e.g.Sarbanes-Oxley(USA)andBaselII(Europe)),aswellastheacknowledgementthatITprojectscaneasilygetoutofcontrolandprofoundlyaffecttheperformanceofanorganization.AcharacteristicthemeofITgovernancediscussionsisthattheITcapabilitycannolongerbeablackbox.ThetraditionalhandlingofITmanagementbyboard-levelexecutivesisthatduetolimitedtechnicalexperienceandITcomplexity,keydecisionsaredeferredtoITprofessionals.ITgovernanceimpliesasysteminwhichallstakeholders,includingtheboard,internalcustomersandrelatedareassuchasfinance,havethenecessaryinputintothedecisionmakingprocess.Thispreventsasinglestakeholder,typicallyIT,beingblamedforpoordecisions.Italsopreventsusersfromlatercomplainingthatthesystemdoesnotbehaveorperformasexpected:52.EssencesofEnterpriseArchitectureToday’scorporateinformationsystemisbeingfullofcomplexity.Eveninaformofsystem,therearecentralizedsystemsanddistributedsystemaltogether.Buildinginfrastructuresandpurchasinghardwareandsoftwarearedonebydifferentsubjects.Sometimespartieswhichleadbuildingsystemshaveinitiativeswhilesometimesuserpartiestakeinitiatives.However,standardsforusingITsystemareusuallymadeincasebycaseinfact.Asaresultofthistrend,thereareinchaosofplatforms,networksanddatabaseinmanycompanies.Ithaseventuallymadethosecompaniesinefficientinitssystemandeveninbusinessitself.PercentageofITinvestmentinbusinessentitieshasincreased.EffectiveandefficientITinvestmentshavebeencriticaltomanagementunderthisseverelycompetitivebusinesscondition.Ontheotherhand,technologicalinnovationkeepevolving,butitisnoteasytocatchupwiththefastevolutionofITwithexistinginformationsystems.Ifitfailstodoso,therewillbealotofproblemsinITmanagement.Tosolvethiskindofproblems,6EA(EnterpriseArchitecture)hasbeenemerginginbusinesscircumstances.Fromtheendof1990’s,thenumberofcompaniestointroduceEAhasbeenincreasing.AlthoughtherearemanywaystointerpretEA,IamgoingtodefinethetermofEAintermsof“theframeworkofsupportingmanagementdecisionsaboutITinvestmentandst