Strategic Management: From the Coherency Architect’s Point of View!

Enterprise Architecture in Combination with Strategic Management

According to the discipline of Enterprise Architecture and Coherency Management then all organizations have an Enterprise Architecture. If an organization hasn’t an Enterprise Architecture then it isn’t able to deliver any kind of products or services.

The question then is how the organization is able to understand and later adapt the concepts of Enterprise Architecture to achieve better results and gain competitive advantage.

It is essential for the organization to gain the competitive advantage to lea the market and to survive in the long run.

According to Doucet et al. (2009) then Strategic Management and the concept of Coherency Management is from a strategic stand point a combination of Enterprise Architecture and Strategic Management. The combination of the two concepts have to result in better “alignment”, “Assurance” and “Agility”.

Alignment

Alignment is dealing with how various elements of an organization can be configured so they offer the optimal potential so value can be generated for the organization. The concept of alignment can together with the concept assurance and the concept of accuracy deliver “synergy” to the enterprise. The concept of “synergy” will be dealt with later in this blog post.

Alignment can be achieved by applying a framework (EA Approach) to understand the Enterprise Architecture.

Assurance

Assurance is dealing with the issue of control and openness. The control element deals with knowledge of that the amount of resources are committed to execute the processes and the products and services that the enterprise produces

Agility

Deals with the ability to adapt to change in the organization’s domain. E.g., new competitors, new technology, new substituting products and services. That also have implications for the internal situation for the organization e.g., what sort of technology that should be applied .

Synergy

Synergy deals with creating an effect that enables the organization to perform better by using the same amounts of components that are configured in a different way. Mintzberg quotes Ansoff for saying “He referred to it as the ‘2 + 2 = 5’ effect to denote the fact the firm seeks as a product – market posture with a combined performance that is greater than the sum of its parts”. (Mintzberg 2000, p. 45).

The overall idea is to use enterprise architecture to create the foundation for synergy. If the enterprise hasn’t an established EA program then it an idea to emphasize organizational change where Kotter’s Eight Phased approach can be applied.

The reason for this is that the members of the organization might be orthodox and therefore return to the original processes and work forms.

Conclusion

Synergy can be created and enhanced by using Enterprise Architecture. The more mature an enterprise architecture becomes the better the organization will be to cope with agility, alignment and assurance. To establish this organizational change management has to be applied to ensure that the change from the old ways of doing things to the new ones for this the Kotter’s approach to organizational change.

Sources

Doucet, G. et al., 2009. Coherency Management: Architecting the Enterprise for Alignment, Agility and Assurance, International Enterprise Architecture Institute.

Mintzberg, H., 2000. The Rise and Fall of Strategic Planning, Financial Times/ Prentice Hall.

Download the paper here.

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