This week's reading was interesting - how to define your new EA model and integrate it into your existing company. An EA must support a company's strategy to be relevant, plan and simple. Ross & Co explain how a company operating model is the facet by which a company integrates its processes to deliver its goods to the customer (Ross 27).
An operating model can be broken down into its standardization and its integration. Standardization refers to how a process will be executed, regardless of who or what is performing the process. For example, a company might tell a salesperson exactly what process they are to use to get a new sale. Maybe this is backed by data showing greater success when this process is followed. Whatever, the case, standardization generally results in greater efficiency and predictability, guaranteeing that a customer will receive more or less the same end product at the end of multiple transactions (Ross 28). Integration is essentially the linking of the company's efforts across multiple process to make sure customers receive the same service time and time again. Integration also increases process efficiency,
What I found interesting is that there isn't really one business model where a company strives for utmost standardization and utmost integration. At least, there are other options and benefits to not doing so. The four main operating models are as follows:
Coordination (high integration, low standardization)
Unification (high integration, high standardization)
Diversification (low integration, low standardization)
Replication (low integration, high standardization)
While the architecture for a new building is captured in blueprints, enterprise architecture is often represented in principles, policies, and technology choices (Ross 51). This quote really hit home with me; it explains why EA is so elusive at most companies. EA itself is simply made up of ideals - many of which can change over time with the culture of the company. Ross goes on that the core diagram will help managers and stakeholders understand their company's EA. In order to be effective, the core diagram should consist of at least the following four elements: core business processes, shared data driving core processes, key linking and automation technologies, and key customers. It's crazy to see how quickly an EA, developed or otherwise, can become confusing and unwieldy. Figure 3-1 on page 53 of the text shows Delta Airline's core diagram, and I highly recommend you give it a quick look. Not only does it incorporate these four elements in an easy to follow way, but it also incorporates an operational pipeline - employee resources, etc.
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