Information Technology Reference
In-Depth Information
Chapter IV
Optimizing the ROI
of Enterprise Architecture
Using Real Options
David F. Rico
Independent Consultant, USA
abstraCt
This chapter illustrates how to optimize the return on investment (ROI) of enterprise architecture.
Enterprise architecture is a blueprint for defining the structure and operation of organizations such
as local, state, and federal agencies. Done well, enterprise architecture results in leaner and more ef-
fective information systems that satisfy organizational goals and objectives. This chapter introduces a
suite of simple metrics and models for measuring the ROI of enterprise architecture. This chapter also
introduces real options, which is a contemporary approach to measuring ROI. Whereas typical measures
tend to underestimate ROI, real options have the ability to unearth business value hidden deep within
the economics of investments in enterprise architecture.
overview
safely storing, processing, retrieving, and trans-
mitting data and information. John A. Zachman
is credited with creating enterprise architecture,
though its foundations date back to the early 1900s
(Zachman, 1987).
Enterprise architecture has five major layers:
(a) scope, (b) business model, (c) system model,
(d) technology model, and (e) components as
shown in Table 1. The purpose of the layers is to
align an organization's strategy with its informa-
Enterprise architecture is a comprehensive frame-
work or taxonomy of systems analysis models for
aligning organizational strategy with information
technology. Strategies are plans to satisfy organi-
zational goals and objectives by competing based
on size, cost, variety, speed, quality, uniqueness,
or innovation. Information technology refers to
the computers, software, and networks used for
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