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Chapter Five 
Chapter Five 
Constructing the e-
Business Architecture:
Enterprise Apps

www.ebstrategy.
com
2 -
© e-Business Strategies,
Inc.
The Premise
The Premise
CEOs want next gen enterprise apps that make their
businesses more competitive and deliver quicker benefits
CIOs challenge: develop e-business architecture

Bridge chasm between customers, back-office operations and
supply chain

Cost of the chasm: several million dollars in higher service
costs and longer order-fulfillment cycles
Application design and business design irrevocably linked

How you manage information determines whether you win or
lose
Companies manage information through business apps
Central theme of e-business execution: Linking isolated
business apps into a cohesive architecture

www.ebstrategy.


com
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© e-Business Strategies,
Inc.
The Vision
The Vision
Enterprise apps (ERP, CRM , SCM): well-integrated,
modular building blocks for modern business designs

Common platform for apps in a given functionality

Backbone of modern enterprise
Emphasis on enterprise apps grew in mid 1990s

To root out old legacy apps incapable of meeting stresses of
the global economy
Today, as companies race towards information
economy, their structures are made up of interlocking
business apps

Isolated, standalone apps are history
Vision of e-business

How to integrate an intricate set of apps to manage, organize,
route and transform information, like a well-oiled machine

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com
4 -
© e-Business Strategies,

Inc.
The Challenge
The Challenge
Not an easy to achieve vision

Failures more frequent that successes

TCI, Hershey Foods
Reason: many solutions dead-on-arrival

Complexity of problems implies long lead times for
solutions

But rapid morphing of problems demands short
lifetime solutions
App investment decisions rising to the top of
mgmt agenda

Actual cost of enterprise apps greater than what
firms anticipate

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com
5 -
© e-Business Strategies,
Inc.
The Implication
The Implication
When businesses apply technology to address
new opportunities, bond between business

design and application architecture grows closer

Steering this relationship urgent
Senior managers must become corporate
architects to shape the app infrastructure

Meet customers demands

Build lasting value by connecting business strategy
with operational reality

Cannot afford to leave the task to developers and
lower-level managers who don’t see big picture

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com
6 -
© e-Business Strategies,
Inc.
In This Chapter …
In This Chapter …
Take a multiyear planning perspective to

Identify important business and technology
megatrends driving app architecture

Identify key areas of investment necessary to
harness and exploit business apps

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com
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© e-Business Strategies,
Inc.
Trends Driving e-Business Architecture
Trends Driving e-Business Architecture
Velocity of business increasing
Enterprise boundaries disappearing
Expectations for technology solutions rising
Other internal IT events also happening

Integrating apps from mergers and acquisitions

Moving apps to the Internet

Moving apps from legacy systems to new platforms

Upgrading network infrastructure to handle high-
bandwidth traffic

Building an integrated data model

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com
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© e-Business Strategies,
Inc.
New Customer-Care Objectives
New Customer-Care Objectives
Integrated application architecture key to serving the

customer seamlessly
Amazon.com

Seamless buying and order fulfillment

Can potentially enable frequent inventory turnover
For richer customer experience, firms need to integrate
Web sites with their back-office systems

Inventory mgmt, order processing, financials, and customer
service
Companies must practice fundamentals of fast, error-
free service

As customer become Internet savvy, their tolerance for
wasted time and lack of integrated processes diminishes

Companies must refine business processes

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com
9 -
© e-Business Strategies,
Inc.
New Competitive Conditions
New Competitive Conditions
The changing competitive environment is driving
the need for integrated apps
New Brunswick Power


Deregulation and demand for better customer
service began to strain existing apps

Forced to reevaluate business processes, esp.
customer service functions

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com
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© e-Business Strategies,
Inc.
Fast Moving Competitors
Fast Moving Competitors
Established firms forced to scrutinize existing app architecture

M&As

Compete with new entrants
Norwest Mortgage
Traditional Norwest
Systems
Required For Future
Success
Norwest’s Challenge
Design the Future

Business and customer
focused proactive

Structured in line with

business support
objectives

Shift in emphasis to front
office support

Emphasis on business
skills

Customer knowledge

Business knowledge

Strategic planning

Customer service
philosophy

E-business must
become a partner to
the Business Units

E-business must be
the engine for sales
and growth

E-business must
develop a customer
focus and embed
business knowledge


E-business must be
the operational
enabler of efficiency

Internally focused;
reactive

Structured around
technical

Chief role in
providing back

Emphasis on
technology skills

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