Truth Lumor TOWARDS THE DESIGN OF AN AGILE ENTERPRISE ARCHITECTURE MANAGEMENT METHOD UNIVERSITY OF JYVÄSKYLÄ DEPARTMENT OF COMPUTER SCIENCE AND INFORMATION SYSTEMS 2016 ABSTRACT Lumor, Truth Towards the Design of an Agile Enterprise Architecture Management Method Jyväskylä: University of Jyväskylä, 2016, 158p. Information Systems, Master’s Thesis Pulkkinen, Mirja and Hirvonen, P. Ari Enterprises engage in dynamic environments and do need capabilities that will enable them to (re)configure and integrate existing capabilities or create new capabilities in order to remain viable and competitive in such environments. Enterprise Architecture (EA) by definition has the propensity to contribute to the agility of the enterprise in turbulent environments provided it is managed and guided by a methodic approach in a way that strengthens the capabilities with which the enterprise senses and responds to changes in its environment. However, the agility of the Enterprise Architecture Management (EAM) func- tion and its relation with the agility of the enterprise as a whole has been spar- ingly studies in the EA literature. This thesis contributes to the EA literature by designing an agile EAM method that supports the agility of the EAM function and the agility of the enterprise as a whole. A number of steps were taken to this end. First, the factors that influence the agility of the enterprise, namely; agility drivers, agility providers and agility capabilities, were identified. Second, litera- ture on enterprise architecture, lean and agile principles and values, and a set of proposed theories were reviewed to form the theoretical foundation for the method design effort. Third, the lean and agile principles and values were adapted for EAM work. Fourth, the adapted lean and agile principles and values were consolidated into eight essential elements (EEs) that an agile EAM should possess in order to support the agility of the EAM function and the agility of the enterprise. Finally, an agile EAM method (Agile EAMM) was constructed to embody the EEs. The proposed Agile EAMM acts as a dynamic capability that provides the sensing capabilities, the leaning capabilities and the coordinating capabilities needed to effectively carry out enterprise architecting as an integrat- ing capability in transforming as-is architecture (existing operational capabili- ties) into to-be architecture (reconfigured operational capabilities). The compat- ibility of the Agile EAMM with existing methods was demonstrated using TO- GAF’s ADM, and its efficacy was evaluated by means of an illustrative scenario. Conceptually, the Agile EAMM has the propensity to support the agility of the EAM function and the agility of the enterprise as a whole. Aside the Agile EAMM, the thesis contributes lean and agile principles and values applicable to EAM, the eight EEs, and areas for further research to the EA literature. Keywords: Enterprise Architecture Management, Agile Methods, Enterprise Agility Lumor, Truth Ketterä yrityksen kokonaisarkkitehtuurin johtamisen metodi ja sen suunnittelu Jyväskylä: Jyväskylän yliopisto, 2016, 158p. Tietojärjestelmien, Pro gradu-tutkielma Pulkkinen, Mirja and Hirvonen, P. Ari Dynaamisissa ympäristöissä toimiessaan yritykset tarvitsevat kyvykkyyksiä, jotka mahdollistavat sekä nykyisten että uusien voimavarojen (uudelleen)määrittelyn ja integroinnin. Tällaiset kyvykkyydet mahdollistavat kilpailukykyisenä säilymisen. Yrityksen kokonaisarkkitehtuuri (EA) pyrkii edistämään yrityksen ketteryyttä vaihtelevissa ympäristöissä. Se voi vahvistaa kyvykkyyksiä, joiden avulla yritys tunnistaa ja vastaa ympäristössään tapahtuviin muutoksiin, mikäli sitä käytetään metodisena lähestymistapana johtamisessa. Kuitenkin Yrityksen kokonaisarkkiteh- tuurin johtamisen (EAM) toimintoa ja sen suhdetta yrityksen kokonaisvaltaiseen ketteryyteen on tutkittu vasta vähän. Tässä tutkielmassa suunnitellaan ketterä yri- tyksen kokonaisarkkitehtuurin johtamisen metodi, joka tukee yrityksen ko- konaisarkkitehtuurin johtamisen toimintoa ja yrityksen ketteryyttä kokonaisuudes- saan. Mallin suunnittelua edelsi useita vaiheita. Ensimmäisenä pyrittiin tunnista- maan yrityksen ketteryyteen vaikuttavia tekijöitä, eli sitä edistäviä ja mahdollista- via tekijöitä sekä ketteryyskyvykkyyksiä. Tämän jälkeen tarkasteltiin yritysark- kitehtuuria, kevyen ja ketterän kehittämisen taustalla olevia periaatteita ja arvoja sekä ehdotettuja teorioita käsittelevää kirjallisuutta. Tätä aineistoa käytettiin te- oreettisena tukena metodin suunnittelun taustalla. Tämän jälkeen kevyet ja ketterät periaatteet ja arvot muokattiin sopiviksi yrityksen kokonaisarkkitehtuurin johtamiseen. Sitten nämä muokatut periaatteet ja arvot koottiin yhteen kahdeksaksi keskeiseksi elementiksi (EE), joita ketterän yrityksen kokonaisarkkitehtuurin johtamisen metodin tulisi sisältää tukeakseen ketterää yrityksen kokonaisarkkiteh- tuurin johtamisen toimintoa sekä koko yrityksen ketteryyttä. Viimeisenä ketterä yrityksen kokonaisarkkitehtuurin johtamisen metodi (Agile EAMM) muodostettiin ilmentämään aiemmin tunnistettuja kahdeksaa keskeistä elementtiä. Ehdotettu ket- terä yrityksen kokonaisarkkitehtuurin johtamisen metodi toimii dynaamisena kyvykkyytenä, joka tarjoaa tunnistavia kyvykkyyksiä, yksinkertaistavia kyvyk- kyyksiä ja koordinoivia kyvykkyyksiä. Näitä tarvitaan muuttaessa yrityksen ko- konaisarkkitehtuuria nykyisestä arkkitehtuurista paranneltuun arkkitehtuuriin, eli olemassa olevista toiminnallisista kyvykkyyksistä uudelleenjäsenneltyihin toimin- nallisiin kyvykkyyksiin. Tämän muodostetun yrityksen kokonaisarkkitehtuurin johtamisen metodin yhteensopivuus olemassa olevien metodien kanssa varmistet- tiin TOGAFin ADM:n avulla, ja sen toimivuutta arvioitiin esimerkkiskenaarion avulla. Käsitteellisesti, kehitetty malli tukee yrityksen kokonaisarkkitehtuurin johtamisen toiminnon sekä koko yrityksen ketteryyttä. Tämän lisäksi tutkielma esittelee kevyitä ja ketteriä arvoja ja periaatteita, jotka ovat sovellettavissa yrityksen kokonaisarkkitehtuurin johtamisessa, kahdeksan keskeistä elementtiä, sekä eh- dotuksia jatkotutkimusaiheille. Avainsanat: Yrityksen arkkitehtuurin hallinta, Ketterä metodi, Ketterä yritys ACKNOWLEDGEMENT I am sincerely grateful to my supervisors: Dr. Mirja Pulkkinen and Dr. Ari Hirvonen, for entrusting such a timely industry project to me, and for provid- ing guidance and insightful comments throughout the research process. Many thanks go to the teaching and non-teaching staff of the Department of Comput- er Science and Information Systems especially, the Head of SIM (Professor Tu- ure Tuunanen), the International Coordinator (Ms Niina Ormshaw), and the Study Advisor (Dr. Oleksiy Mazhelis), for their immense support during my studies. To my colleagues: Aseem, Dicle, Hojat, Jari, and Kamila, I say a big thank you for giving me a “family away from home” experience. Last but not the least; I thank my wife, daughter, son, and mum, for permitting me to spend such a long time away from home in pursuit of a master’s degree. Asantewaa, Dzodzi, Elikem, and Aku, I absolutely owe you a lot. FIGURES Figure 1: EA, Enterprise Architecting, and EAM .................................................... 27 Figure 2: The Deming Cycle ....................................................................................... 48 Figure 3: "A framework for representing the proposed measurable model of dynamic capabilities" Source: Pavlou and El Sawy (2011) .................................... 59 Figure 4: Constructing the conceptual model ......................................................... 69 Figure 5: Conceptual Model for the Research ......................................................... 70 Figure 6: Alignment of the thesis chapters with the DSR Process Model in Peffers et. al (2007) ....................................................................................................... 73 Figure 7: Transportation Waste in Manufacturing and in EAM ......................... 85 Figure 8: Reduced Transportation Waste in Manufacturing and in EAM .......... 85 Figure 9: Summary of average rating per interviewee ........................................... 97 Figure 10: EA Components as IT-Enabled Resources .......................................... 105 Figure 11: An Extension of the EAM Grid in Hirvonen & Pulkkinen (2004).... 107 Figure 12: Exemplifying collaborative decision making mechanism ................ 109 Figure 13: EAM as a Dynamic Capability .............................................................. 113 Figure 14: The structure of the Agile EAM Method ............................................. 115 Figure 15: Structure of the EA Component ............................................................ 116 Figure 16: Integration of EA Components ............................................................. 118 Figure 17: The Agile Enterprise Architecture Management Process ................. 121 Figure 18: Realized conceptual model of the research ......................................... 134 TABLES Table 1: Agility Drivers, Agility Capabilities and Agility Providers ................... 22 Table 2: Organizational Benefits of EA ..................................................................... 28 Table 3: Comparison of EA Frameworks ................................................................. 31 Table 4: EA Domains and Levels ............................................................................... 32 Table 5: Components of EAM in Extant Literature ................................................ 40 Table 6: Agile Values and Principles ........................................................................ 45 Table 7: Lean Principles and Lean Wastes ............................................................... 46 Table 8: Literature sources on business – IS relationships..................................... 51 Table 9: Summary of systematic research process to identify the CSFs of EAM 73 Table 10: Critical Success Factors of Enterprise Architecture Management ....... 75 Table 11: Adapted Agile Values for Agile EAM ..................................................... 81 Table 12: Adapted Agile Principles for Agile EAM ................................................ 81 Table 13: Adapted Lean Principles for Agile EAM................................................. 83 Table 14: The Seven Lean Wastes Adapted for Agile EAM .................................. 86 Table 15: Proposed Essential Elements for an Agile EAM .................................... 88 Table 16: The evaluation of the EEs for completeness ........................................... 94 Table 17: Summary of Interview Process ................................................................. 97 Table 18: Mean ratings for each of the EEs per interviewee .................................. 98 Table 19: Levels of EAM Endeavor ......................................................................... 104 TABLE OF CONTENTS 1 CHAPTER 1 INTRODUCTION ........................................................................ 10 1.1 Background ................................................................................................. 10 1.2 Motivation for the Thesis .......................................................................... 12 1.3 Research Question ..................................................................................... 13 1.4 Expected Outcome ..................................................................................... 13 1.5 Research Method ....................................................................................... 13 1.6 Findings ....................................................................................................... 14 1.7 Limitations .................................................................................................. 14 1.8 Structure of the Rest of the Thesis ........................................................... 15 2 CHAPTER 2 ENTERPRISE AGILITY AND ENTERPRISE ARCHITECTURE ......................................................................................................... 17 2.1 Enterprise agility ........................................................................................ 17 2.1.1 Definition of Enterprise Agility ...................................................... 18 2.1.2 Types of enterprise agility ............................................................... 20 2.1.3 Agility Drivers, Agility Capabilities and Agility Providers ...... 20 2.1.4 Information Systems and Enterprise Agility ................................ 23 2.2 Enterprise Architecture ............................................................................. 24 2.2.1 Definition of Enterprise Architecture ............................................ 24 2.2.2 Enterprise Architecting ................................................................... 25 2.2.3 Enterprise Architecture Management ........................................... 26 2.2.4 Organizational Benefits of Enterprise Architecture .................... 27 2.2.5 Challenges of Enterprise Architecture Management .................. 29 2.2.6 Enterprise Architecture Frameworks ............................................ 30 2.2.7 Enterprise Architecture Domains and Levels .............................. 31 2.2.8 Enterprise Architecture Principles ................................................. 33 2.2.9 Enterprise Architecture Governance ............................................. 34 2.2.10 Enterprise Architecture Planning .............................................. 36 2.2.11 Components (Building Blocks) of Enterprise Architecture Management ..................................................................................... 37 2.3 Summary ..................................................................................................... 42 3 CHAPTER 3 THEORETICAL FOUNDATION FOR ADAPTING LEAN AND AGILE PRINCIPLES AND VALUES .............................................................. 43 3.1 Probable Theoretical Glue ........................................................................ 43 3.2 Lean and Agile Principles and Values .................................................... 44 3.2.1 Agile Principles and Values ............................................................ 44 3.2.2 Lean Principles and Wastes ............................................................ 45 3.2.3 Why Lean and Agile? ...................................................................... 46 3.2.4 Lean and Agile for Continuous Improvement ............................ 47 3.3 Review of the Probable Theoretical Glue ............................................... 49 3.3.1 Collaborative Decision Making ...................................................... 49 3.3.2 Participatory Design ........................................................................ 52 3.3.3 Organizational Fitness ..................................................................... 53 3.3.4 Contingency Based Requirement Management .......................... 55 3.3.5 Dynamic Capabilities ....................................................................... 57 3.4 Critical Success factors of Enterprise Architecture Management ....... 59 3.5 Chapter Summary...................................................................................... 66 4 CHAPTER 4 RESEARCH METHODOLOGY ................................................. 67 4.1 Literature Review ...................................................................................... 67 4.2 Selection of research method ................................................................... 68 4.3 Conceptual Model for the Research ........................................................ 69 4.4 The DSRM Process Model and the Structure of this Thesis ................ 71 4.5 Critical Success Factors for Enterprise Architecture Management .... 73 4.6 Evaluation of the Essential Elements of an Agile EAM Method ..... 77 4.6.1 Evaluation for Completeness .......................................................... 77 4.6.2 Evaluation for Relevance................................................................. 77 4.7 Design of the Agile EAM Method ........................................................... 78 4.8 Evaluation of the Agile EAM Method .................................................... 78 4.9 Chapter Summary...................................................................................... 79 5 CHAPTER 5 ESSENTIAL ELEMENTS OF AN AGILE ENTERPRISE ARCHITECTURE MANAGEMENT METHOD ...................................................... 80 5.1 Adapted Agile Principles and Values ..................................................... 81 5.2 Adapted Lean Principles and Wastes ..................................................... 82 5.2.1 Adapted Lean Principles for Agile EAM ...................................... 83 5.2.2 Adapted Lean Wastes for Agile EAM ........................................... 84 5.3 Proposed Essential Elements of an Agile EAM Method ...................... 88 5.4 Evaluation of the Essential Elements of an Agile EAM Method ...... 93 5.4.1 Evaluation for Completeness .......................................................... 93 5.4.2 Evaluation for Relevance................................................................. 96 5.5 Chapter Summary.................................................................................... 102 6 CHAPTER 6 CONSTRUCTION OF THE AGILE ENTERPRISE ARCHITECTURE MANAGEMENT METHOD .................................................... 103 6.1 EA Domains and Enterprise Levels ...................................................... 103 6.2 EA Components as “IT-Enable Resources” ......................................... 104 6.3 Collaborative Decision Making and Governance Mechanisms ........ 105 6.3.1 Collaborative Decision Making Mechanism .............................. 108 6.3.2 EA Visions, Strategies, Goals, Principles, and Plans ................. 109 6.3.3 Governance Mechanism ................................................................ 110 6.3.4 EA Change Management Mechanism ......................................... 110 6.4 The Agile EAM Method .......................................................................... 111 6.4.1 Enterprise Architecture Management as a Dynamic Capability111 6.4.2 The Structure of the Agile EAM Method .................................... 113 6.4.3 Integration of the EA components ............................................... 116 6.4.4 Agile Enterprise Architecture Management Process ................ 118 6.5 Instantiation of the Agile EAM Method ............................................... 122 6.5.1 Selection of EA Domains and Enterprise Levels ....................... 122 6.5.2 Representation of EA Components as “IT-Enabled Resources”123 6.5.3 Appropriation of EAM Mechanisms and Role .......................... 123 6.5.4 Development and Enactment of EA Principles and Guidelines124 6.6 Demonstration and Evaluation of the Agile EAM Method ............... 124 6.6.1 Demonstration of Compatibility with TOGAF’s Architecture Development Method (ADM) ...................................................... 125 6.6.2 Illustrative Scenario Analysis with a Hypothetical Case ......... 126 6.7 Chapter Summary.................................................................................... 128 7 CHAPTER 7 DISCUSSIONS AND CONCLUSION ..................................... 130 7.1 Discussions ............................................................................................... 130 7.2 Limitations ................................................................................................ 134 7.3 Further Research ...................................................................................... 135 7.4 Conclusions............................................................................................... 135 1 CHAPTER 1 INTRODUCTION 1.1 Background As enterprises are exposed to continuously changing environments fueled by factors including; changing market requirements, regulations, advancements in technologies, and competitor actions; they are forced to develop capabilities that enable them to sense and respond to these changes in ways that promote their sustainability and competitiveness over time. One of these capabilities is enterprise agility. In this thesis, enterprise agility is defined as; “the ability of the enterprise to quickly (i) sense relevant changes that affect its competitive ba- ses (e.g. speed, flexibility, innovation proactivity, quality and profitability), and (ii) appropri- ately respond to such changes through the building or reconfiguration of requisite capabilities (including IT-enabled resources, practices, processes, and relationships) to remain innovative and competitive in a fast changing business environment” Within the enterprise architecture community, enterprise architecture (EA) is believed to possess the ability to foster business strategy, to align ICT capabili- ties to such strategies, and to drive organizational impact, for example, in the form of enterprise agility (Espinosa, Boh, & DeLone, 2011). However, enterpris- es do face challenges in realizing these potentials (Buckl et al., 2011; Kaisler, Armour, & Valivullah, 2005; Lucke, Krell, & Lechner, 2010). For instance, D. Simon, Fischbach, & Schoder (2013) claim that the inability of some architecture teams to harness the full potential of EA at enterprise level occurs when IT and business alignment is relegated to operational level. Indeed, EA has the propensity to promote enterprise agility provided it is managed and guided by a methodic approach in a way that strengthens the ca- pabilities of the enterprise that enables it to sense and respond to changes in the business environment. However, ‘agility’ is not generally seen as an attribute of EA management methodologies. For instance, most prior research efforts at de- veloping the building blocks or components of Enterprise Architecture Man- agement (EAM) either do not consider “agility” as an attribute of the EAM itself