Product differentiation deals with competitive distinction at the level of a product. In this section, we set the scene for the report, briefly articulating what we mean by strategic differentiation and considering the IT context and pressures out of which EA emerged. Because this is the big frontier that we see in addressing the business-IT alignment gap, and because this is critical to tuning up enterprise architecture so that it can indeed play a role as strategic differentiator, this is the area that we focus on in this report. By the same token, technologists need to enhance their strategy skills they must learn the language and concerns of business leadership so that they can be effective in translating business strategy into technical strategy and in leading the execution of that strategy. Business leaders need a more effective strategy-setting process that includes high-level architects and takes into account the role of technology in creating strategic advantage. The bridge that will span this chasm must be built from both sides. Despite broad agreement about the role of architecture, the biggest chasm that remains is between the business leaders and the technology community. We work with clients across the spectrum, from huge Fortune 100 companies to smaller companies working in niche markets. In our consulting and training work, wherever we make these points, they are met with agreement - this is the role of architecture and architects. Architects are the bridge between the business and technical communities. This strategy framework highlights the importance of capabilities in shaping the organization's identity and in delivering differentiating value propositions that give the organization highly leveraged advantages in the arenas in which it competes.Īrchitecture is about optimizing across boundaries to achieve system goals it is the translation of strategy into implementation. We expand the concept of enterprise architecture to business capabilities architecture and present a new framework for strategy that brings capabilities, rather than simply processes, into the spotlight of the strategy creation and execution process. In this report, we explore the evolution of enterprise architecture, considering whether EA as an IT practice can be a strategic differentiator. In broad outline, this Executive Report confronts the realities of the IT world that EA grew up in: a world of legacy systems, a world of sincere efforts to do good for the business, and a world where the business-IT alignment gap exists because there is a pervasive assumption that technology is a tactical rather than a strategic concern. In some places we may use this tool to maintain parity with our competitors, and in others we may use it to build capabilities that are critical to our strategic differentiation strategy.
At the same time, IT is also fundamental to business activities in which we are not choosing to excel but merely opting to do well enough. That is, technology is fundamental to differentiating capabilities, whether we choose to compete on operational excellence, customer intimacy, or innovation. Information technology is used to underpin various strategies from industry-beating reductions in inventory costs, to customer delight through individualized tailoring of the consumer experience, to new products or services that shake up the competitive order. Though its competitors have access to much the same technology, labor pool, and value network, Wal-Mart puts these factors together in a way that works superbly for its competitive strategy. Consider the example set by Wal-Mart: It has proven that what everyone in mass merchandizing has to do, namely distribution and inventory management, can be done so well that it can become a tremendous competitive advantage. Yet jumping to the conclusion that IT is nonstrategic could be dangerous. What It Takes to Be a Great Enterprise Architectĭownload your complimentary copy of this Executive Report by Dana Bredemeyer and Ruth Malan and discover the key characteristics for success that emerge from the historical story of James Madison and the creation of the United States Constitution, and how they resonate with top architects around the world.
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