From Police to Partner: Transformation of EA at Cummins, Sherry Jordan, Portfolio Management, Enterprise Architecture, Cummins
Session abstract: From once being perceived by business leaders as operational support to now being viewed as business partners, the Enterprise Architecture area at Cummins is experiencing rapid transformation. Executives and staff at all levels of the organization are beginning to understand the benefits of their investments in centralized and standard architecture. One example of this commitment is the investment in people, processes and technology required to set the foundation for utilizing IT as a key enabler to achieve strategic business objectives globally.
This presentation offers a glimpse into the experiences and vision that drives EA forward at Cummins. Key areas of focus include:
- Business climate and drivers for EA
- Pitfalls, challenges and risk points
- Keys to success
- The way forward (with Troux)
Cummins manufacturers diesel engines and related products. Challenges of manufacturing sector: image and understanding of IT, maturity of the market. Manufacturing views IT as ‘keeping the lights on’.
Drivers for EA at Cummins: Cost reduction, aligning with strategic business objects & eliminating redundant capabilities across functions. Organizational structure makes the latter difficult. [Ties back to VW presentation, structure & strategy must move together to execute].
EA Evolution (organization): Organized by business (decentralized); centralized shared service organizations, operating in silos; shared service organizations, working in common processes.
EA Mindset: Historically, EA seen as traffic cop. The organization that constrains the business from doing their job. Next, dedicated EA developed. Recognized need, but limited understanding of value. Future: providing architecture ahead of the business and recognized as strategic partners.
Climate of EA Market: First, information focused on infrastructure. Then, pockets of focus. Now, business and investment focused tools.
Cummins has been building the EA foundation over the past year. Sherry calls out Eric Christian, Cummins new Chief Architect. [Eric has previously been at BofA and GM].
Cummins EA framework is based on Oracle’s EA Framework. ”Providing technologies that enable the business to be competitive”.
Cummins went through an EA tool selection process, choose Troux. Use Troux for TOGAF, Standards, Optimization and Alignment”.
Looking forward. 18-month roadmap:
- Standards management and architecture governance
- TOGAF, establish app portfolio, capability mapping
- enterprise IT planning, rationalization across enterprise
Future gains:
- reduced technologies (lower cost)
- improved efficiencies
- [something]
Police to Partner
- Business strategic objectives driving standards
- Information available further upstream
- Governance model inclusive of key stakeholders
Lessons Learned
- Executive support absolutely critcal
- Business users don’t care about operating systems or database systems
- Major transformation takes a long time, need to show value incrementally
- Ability to articulate EA value is essential
Editorial comment: It is always interesting to see new waves of Enterprise Architecture adoption by industry. Shows the increasing dependence of technology for all businesses, and the increasing awareness of executives on the importance of technology investment management. With cost/investment under control, organizations are better positioned to deliver strategic and tactical value to the business.
