The Four Stages of Enterprise Architecture

An exclusive MIT survey maps the evolution of IT architecture and explains why you can't skip any steps.

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It is at this third stage that architecture begins to mean more than IT infrastructure. Data architecture, IT governance, Six Sigma process optimization and business-IT alignment become critical aspects of the enterprise architecture, with the focus of IT shifting from simply managing the technology plumbing efficiently to contributing to the business’s operational excellence. Efficiency remains important, but its goal has changed from saving money for the sake of reducing costs to freeing up resources that can be used to grow the business, says Petrey.

For example, TD Banknorth began paying much more attention to data architecture as it entered Stage 3. "You need to put real resources into evolving and planning it," says Petrey. That involves ensuring standard definitions of data to make it easier for multiple systems to work with the same data and interpret it correctly, as well as to be able to glean patterns that help better serve customers.

TD Banknorth has designated IT staff who entrench themselves in the lines of business and act as relationship managers with their business colleagues to ensure true IT-business alignment.

Although TD Banknorth has standardized its technology platforms, it didn’t always enforce its architectural standards on the applications it bought or created. "It happened because of the rapid growth—we were most concerned with just getting something in," recalls Petrey. "We’ve recognized that we committed these sins in the past and that it reduced our service levels and interfered with our ability to move the company forward." Petrey is now working to make those architecturally deviant systems fit his new IT architecture, so TD Banknorth can continue to mature into Stage 4. And stricter governance is now in place to make sure it doesn’t happen again.

A focus on architecture can also lay the groundwork for future benefit, says Joe Solfaro, executive director of information management at pharmaceutical maker Merck. Much of the company’s IT efforts are focused on standardizing its platforms, but it’s also mapping its business processes and data architecture so it can be more agile once it has a more cost-effective platform on which to operate. The company began two separate data-standardization efforts several years ago but more recently brought in enterprise architects to develop a common data architecture to underlie both. "Even if the systems have tactical differences, they’ll still support the same strategic direction," he says. That means easier data management that will ultimately support a full-blown, Stage 4 SOA.

Culturally, Stage 3 requires both IT and business staff to let go. "You have to stop being tactical. You need to trust others to manage the details," Petrey says. Some of that shift occurs in moving from Stage 1 to Stage 2, but in Stage 3 the letting go is more difficult because now very different types of people—IT and business—must depend on and trust each other. And as with the change from Stage 1 to Stage 2, the shift to Stage 3 happens over time as the organization sees the ROI of the new approach and buys into the transformation.


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