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Software Architecture Guide

Foundation for Execution

Explanation

Section titled “Explanation”

A foundation for execution is the automation and digitizing of a company’s core capabilities. The foundation combines IT infrastructure with digitized business processes.

Three keys. A strong foundation includes three parts:

  • An operating model: the level of process integration and standardization the company needs to serve customers. See the article Operating Model.
  • An enterprise architecture: the organizing logic for business processes and IT infrastructure. It reflects the integration and standardization needs of the operating model. See Enterprise Architecture (Ross/Weill/Robertson definition).
  • An IT engagement model: a governance system. It makes project decisions follow the enterprise architecture. It links company-wide decisions to project-level decisions.

Standardization and integration. Standardizing processes creates efficiencies across business units. The cost is less room to customize services. Integration allows end-to-end processing and a single face to the customer.

Why the operating model matters. Once chosen, the operating model guides how capabilities are developed. Without one, management jumps from one market opportunity to the next. It cannot reuse capabilities.

How it is built. The enterprise architecture gives a long-term view of processes, systems and technologies. Individual projects then build capabilities instead of only meeting immediate needs. Ongoing projects build the foundation step by step. This can lower IT costs and raise efficiency. It is not a one-off project. It is an ongoing way of managing the company.

Maturity and agility. Companies pass through four architecture stages: Business Silos, Standardized Technology, Optimized Core and Business Modularity. The foundation gains strategic importance as they advance. Business agility depends on it. Agile companies have digitized core processes.

The authors even argue that architecture may matter more than strategy.

Example

Section titled “Example”

A retailer decides that order handling and delivery tracking are core capabilities. It digitizes both and runs them on shared systems. Every new project, such as a mobile app or a new warehouse, must use these shared processes. A governance step checks each project against the architecture. Over time, the core runs the same way everywhere. New offers reuse it instead of rebuilding it.

Trade-offs

Section titled “Trade-offs”

Standardization brings efficiency across business units but limits how much a service can be customized. Integration enables end-to-end processing and a single customer face. The foundation is not built in one step. It takes ongoing projects and steady governance, and it only works if an operating model has been chosen first.

The three keys and how projects build the foundation.

Diagram source 
flowchart TD
  OM[Operating model] --> EA[Enterprise architecture]
  EA --> F[Foundation for execution]
  IEM[IT engagement model] --> P[Projects]
  EA --> IEM
  P --> F

Checks

Section titled “Checks”
  • The document names the operating model, the enterprise architecture and the IT engagement model as the basis for execution.
  • The chosen level of process integration and standardization is stated explicitly.
  • A governance mechanism makes project decisions follow the enterprise architecture.
  • Core processes and the capabilities they automate are identified.
Section titled “Related”

Sources

Section titled “Sources”