Chapter Five
Chapter Five
Constructing the e-
Business Architecture:
Enterprise Apps
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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
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Bridge chasm between customers, back-office operations and
supply chain
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Cost of the chasm: several million dollars in higher service
costs and longer order-fulfillment cycles
Application design and business design irrevocably linked
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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
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The Vision
The Vision
Enterprise apps (ERP, CRM , SCM): well-integrated,
modular building blocks for modern business designs
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Common platform for apps in a given functionality
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Backbone of modern enterprise
Emphasis on enterprise apps grew in mid 1990s
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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
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Isolated, standalone apps are history
Vision of e-business
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How to integrate an intricate set of apps to manage, organize,
route and transform information, like a well-oiled machine
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The Challenge
The Challenge
Not an easy to achieve vision
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Failures more frequent that successes
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TCI, Hershey Foods
Reason: many solutions dead-on-arrival
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Complexity of problems implies long lead times for
solutions
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But rapid morphing of problems demands short
lifetime solutions
App investment decisions rising to the top of
mgmt agenda
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Actual cost of enterprise apps greater than what
firms anticipate
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com
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© e-Business Strategies,
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The Implication
The Implication
When businesses apply technology to address
new opportunities, bond between business
design and application architecture grows closer
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Steering this relationship urgent
Senior managers must become corporate
architects to shape the app infrastructure
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Meet customers demands
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Build lasting value by connecting business strategy
with operational reality
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Cannot afford to leave the task to developers and
lower-level managers who don’t see big picture
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com
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© e-Business Strategies,
Inc.
In This Chapter …
In This Chapter …
Take a multiyear planning perspective to
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Identify important business and technology
megatrends driving app architecture
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Identify key areas of investment necessary to
harness and exploit business apps
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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
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Integrating apps from mergers and acquisitions
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Moving apps to the Internet
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Moving apps from legacy systems to new platforms
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Upgrading network infrastructure to handle high-
bandwidth traffic
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Building an integrated data model
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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
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Seamless buying and order fulfillment
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Can potentially enable frequent inventory turnover
For richer customer experience, firms need to integrate
Web sites with their back-office systems
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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
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© e-Business Strategies,
Inc.
New Competitive Conditions
New Competitive Conditions
The changing competitive environment is driving
the need for integrated apps
New Brunswick Power
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Deregulation and demand for better customer
service began to strain existing apps
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Forced to reevaluate business processes, esp.
customer service functions
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Inc.
Fast Moving Competitors
Fast Moving Competitors
Established firms forced to scrutinize existing app architecture
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M&As
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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
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Emphasis on business
skills
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Customer knowledge
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Business knowledge
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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
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E-business must
develop a customer
focus and embed
business knowledge
•
E-business must be
the operational
enabler of efficiency
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Internally focused;
reactive
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Structured around
technical
•
Chief role in
providing back
•
Emphasis on
technology skills