Working at real-time for efficiency
James, Research Director, Enterprise Architecture and Application Integration,
Gartner, tells what a Real-Time Enterprise (RTE) is. And how a good enterprise
architecture is instrumental in moving an organization towards RTE. by Minu
What according to you is RTE, and what does it offer?
Real Time Enterprise is an organization that uses up-to-date
information to progressively remove delays in managing and executing its critical
business processes. Not every process in a RTE is instantaneous, but it should
remove delays progressively.
RTE is profoundly important to the future of global
business and fundamentally depends on architecture. Enterprises should understand
how important its architecture is to the business, and need to position it in
terms of the business problems it solves.
It's also important to look at the time it takes to
extract vital information from its core processes.
This will help provide the business case and performance
targets necessary to achieve business leader commitment.
What role does enterprise architecture play in enabling
RTE can help an organization deliver certain business
benefits. Capturing and quantifying these benefits provides a business-based
justification for implementing an enterprise architecture. It is however important
to understand that new business models may require new or ongoing architectural
IT advancements make new business capabilities possible,
and the pressure for new business capabilities fuels investment in IT. There
is a symbiotic relationship between the two. If the business expects to accelerate
its operations and critical decision-making by leveraging IT, it's IT investments
may also need to accelerate to take advantage of rapidly evolving capabilities.
Any new technology will in-turn, require periodic reconsideration
of architectural frameworks and constructs. Often, CTOs confuse the capabilities
of a technical architecture with the business capabilities it enables. The architecture
exists solely to facilitate modern business models and strategies.
How do you define a good or an efficient enterprise architecture?
An architecture that works in partnership with business
is considered a good architecture. When a project is being proposed the architects
should be involved from the beginning. The proposal should put together the
solution and take into account all the technology aspects of the organization.
Adherence to enterprise architecture involves a balance
between the short- and long-term goals and between the goals of individual business
units and enterprise-wide goals.
A good enterprise architecture is not purely a technical
undertaking. Although many technical challenges need to be resolved, the success
of architecture is primarily dependent on the way in which it is managed.
What kind of architecture will be needed to enable a RTE?
There is no out-of-the box architecture, which will
enable RTE. It is an ongoing process. An ideal situation is where IT has made
possible critical decisions regarding business, and there is trust and a sense
of partnership between business and IT. Part of the success is in removing delays
from business processes.
In the 80s companies used large data models, which
were isolated from business realities. Today, IT needs to be in partnership
with the business, and the company has to decide on the areas it needs to be
How can enterprise architecture address business needs?
Though an effective enterprise architecture addresses
the needs of an individual enterprise, it must also take into account interactions
with other enterprises, namely the virtual enterprise.
An IT architecture promises significant benefits. A
major benefit is lower IT costs through economies of scale in purchasing, reduced
training, lesser support staff, and simpler upgrades. Savings estimates could
range from 10 to 20 percent of infrastructure costs. Another benefit is improved
system operability through simplified interfaces and data sharing.
Other benefits include improved scalability, agility,
security management, backup and recovery, fault tracing and rectification, software
distribution, testing and configuration management.
What are the typical obstacles one faces while moving
towards this kind of architecture?
It varies depending on the nature of a business. If
a business is consumer-based, the infrastructure is a huge challenge. If you
have good control over your infrastructure, it is easier to have the desired
architecture in place.
The RTE architecture is not free of challenges. Designing
and deploying an IT architecture is time-consuming and expensive. An IT architecture
means a long-term commitment to a continuous update process.
What are the industry verticals that have begun using
The global leaders in deploying this kind of an architecture
are the financial services organizations, particularly wholesale banking and
merchant banking. Earlier, during equity trade, money was available five days
after the trade but now it has moved to a t+3 and lately to a t+1 settlement
scenario. All this has been accomplished in a remarkably short period because
there is total control over the infrastructure.
The telecommunications industry used to face delays
in processes. For example, if you applied for a new connection you had to wait
for a few days before the services were activated. But today you walk out of
the shop with the activation.
The services industry companies have been early movers,
but will face challenges to move towards this architecture, This is due to the
nature of the related business processes and infrastructure.
Minu Sirsalewala can be reached at: email@example.com
- Look at what is needed as a process. Follow it up by planning a good
project. The project must comply with the architecture.
- A characteristic of a successful architecture is its link to the
- One must use business processes to communicate the benefits of enterprise
architecture. Obtain agreement from the management for a high-level
process on which to focus the implementation of architecture frameworks,
standards and guidelines. Now use this process to prioritize the allocation
of scarce architecture resources.
- List the types of projects that can undertake architecture compliance
- All other projects must gain a sign-off from the lead enterprise
- Document the process for approving exceptions to the architecture.
List the criteria that will be applied in reaching approval like TCO,
QoS, impact on business strategy, and short-term business benefits.
- Include reassessment of architecture compliance within the project
change approval process.
- Initial project approval may be subject to review of key deliverables
like high-level design documents, selected detail designs, and sign-off
at implementation time.