Enterprise Architecture: Investment Planning & Management

Study Notes

Capital Planning: The management and decision-making process related to investments in resources (systems, networks, knowledge warehouses, support services) for an enterprise. This includes planning, selection, control, and evaluation.
EA Program Effectiveness: The enterprise's resources must be effectively applied to operational performance gaps for the EA program to be effective. This requires investment in people, money, facilities, software, hardware, training, and other resources, through ongoing development and improvement projects. If there are no operational performance gaps, then there's no need for new or upgraded EA components.
Architecture Analogy: Similar to a home, the owner's requirements must be met within the available budget for an architect's design to be approved. The architect (Enterprise Architect) then works with a builder (project team) to ensure the design (EA components) is properly constructed, the schedule is met, and the budget isn't exceeded.

CPIC Process: This process supports EA by planning, selecting, controlling, and evaluating investments in new or upgraded EA components. This cyclic process ensures the attainment of specific goals.

1. Operational Performance Gaps: Identifying gaps in enterprise operational performance.
2. EA Component Identification: Identifying new or upgraded EA components to address identified performance gaps.
3. Business Case Development: Developing business cases for new or updated EA components, which consider alternatives, alignment, and value.
4. Portfolio Management: Developing and managing an overall portfolio of investments in the enterprise's EA.
5. Investment Value Maximization: Maximizing the value of individual investments in EA components.
6. Learning Culture Promotion: Encouraging a culture of learning & improvement by evaluating completed investments.

1. Standardization: Standardizing how technology requirements are identified within a strategic and business context (metrics - which?).
2. Association: Connecting technology requirements with specific EA components (e.g., Cloud Computing).
3. Investment Decision: Making the necessary investment decision regarding the associated EA component.
4. Implementation: Implementing the solution via standardized project management practices.

A cyclical process depicting the phases of the capital planning process. Shows the phases of planning, selection, control and evaluation where the phases overlap to show the cycle of completing a project.

Executive Summary: Includes a project description, project sponsorship, stakeholders, strategic alignment with the overall goals, and value/impact on strategic initiatives.
Architectural Alignment: Aligning with enterprise architecture, integration with existing resources, standards and product selection strategy, system development lifecycle methodology, system performance metrics, and system standard operating procedures.
Business Case Analysis: Includes Alternatives Analysis, Cost-Benefit Analysis, and Return-on-Investment Analysis.
Project Controls: Involves Cost Controls, Project Budget, Schedule and Work Breakdown Structure, Project Performance Goals & Metrics, Risk Management.

Projects: Activities that result in new or updated resources/capabilities.
Programs: Encompass projects and ongoing governance, management of existing resources, which could relate to legacy system maintenance.

Integration Importance: Why is it crucial to integrate the EA Management Program with the enterprise's capital planning & project management practices?
Capital Planning Phases: Describe the four fundamental phases of the capital planning process.
Future Investment Decisions: How does the capital planning process contribute to sound decisions on investing in future EA component upgrades or new capabilities?