Enterprise Architecture: Value and Risks - Chapter 3 Overview
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Questions and Answers

What is one of the main concepts discussed in Chapter 3 about Enterprise Architecture (EA)?

  • EA integrates strategy, business, and technology. (correct)
  • EA represents a traditional approach to resource management.
  • EA helps to increase costs and risks within an enterprise.
  • EA focuses solely on short-term planning activities.

    • Why is it important to justify the significant cost of creating an EA?

  • To ensure that users of EA products see value in their planning and decision-making activities. (correct)
  • To align with current industry trends.
  • To promote competition among different departments.
  • To increase the complexity of an enterprise's operations.

    • What is one way in which an EA program can help an enterprise respond to changes in its operating environment?

  • By outsourcing all IT functions.
  • By increasing the performance gaps across the enterprise.
  • By modeling different future operating scenarios. (correct)
  • By focusing solely on current operational practices.

    • Why is integrating strategy, business, and technology important in EA?

    <p>To provide a holistic view of the enterprise.</p> Signup and view all the answers

    What is one of the risks associated with implementing an EA program?

    <p>Inability to adapt to changes in the operating environment.</p> Signup and view all the answers

    How does an EA program help in identifying and resolving performance gaps in an enterprise?

    <p>By establishing integrated IT resource planning and decision-making processes.</p> Signup and view all the answers

    What is a potential risk associated with creating an Enterprise Architecture (EA) for an entire enterprise?

    <p>Time-consuming and costly process</p> Signup and view all the answers

    Why might hiring and/or training architects and supporting analysts be considered a cost element of developing detailed EA documentation?

    <p>To increase the overall cost of the EA development</p> Signup and view all the answers

    What is a key benefit of Enterprise Architecture (EA) according to the text?

    <p>Facilitating the development of more efficient common operating environments</p> Signup and view all the answers

    How does Enterprise Architecture (EA) contribute to an enterprise's agility according to the text?

    <p>By making the enterprise more proactive and cost-efficient</p> Signup and view all the answers

    What is a potential consequence if stakeholders do not buy-in to the concept of Enterprise Architecture (EA)?

    <p>Reduced benefits from the EA implementation</p> Signup and view all the answers

    How does Enterprise Architecture (EA) support better decision-making according to the text?

    <p>By enhancing communication and reducing misunderstandings</p> Signup and view all the answers

    Study Notes

    Value and Risk of Creating an Enterprise Architecture

    • Creating an EA program in an enterprise has both value and risk associated with it.
    • The value of EA lies in its ability to bring together views of strategy, business, and technology, allowing an enterprise to see itself in current and future operating states.

    Value of EA

    • EA supports the modeling of different future operating scenarios, helping the enterprise respond to changes in the internal and external operating environment.
    • EA establishes an integrated set of IT resource planning, decision-making, and implementation processes to identify and resolve performance gaps across the enterprise.
    • EA promotes enterprise-wide thinking about resource utilization, replacing systems-level approaches to IT resource development.
    • EA develops more efficient enterprise-wide common operating environments for business and technology, making an enterprise more agile and competitive.

    Benefits of EA

    • EA helps identify existing duplication in functional capability, generating additional savings.
    • EA documentation helps identify current and future performance gaps, enabling the enterprise to be more proactive and cost-efficient in addressing solutions.
    • EA enhances resource-planning capabilities and supports better decision-making through improved communication and reduced misunderstandings.

    Risks of EA

    • Creating an EA for an entire enterprise can be time-consuming, costly, and disruptive to business services.
    • Developing detailed EA documentation can be time-consuming and costly.
    • Hiring and/or training architects and supporting analysts, and the cost of EA documentation tools and on-line repositories, are additional cost elements.
    • There is a risk that the EA will not be used by stakeholders if they do not buy-in to the concept of EA or its perceived value.

    Measuring Costs and Benefits of EA

    • The benefits of EA should outweigh the costs of doing an EA, or the program should not be established.
    • An EA program can pay for itself by identifying combined solutions to business and technology requirements, and generating cost savings.

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    Description

    Explore the concepts of enterprise architecture (EA) value and risks in Chapter 3. Learn about the importance of justifying the significant cost of creating an EA in terms of the value it brings to users for planning and decision-making.

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