www.pwc.

com

Programme Pembudayaan
EA & ISP KKM
Successful Implementation of EA
December
2014

PwC

AGENDA

ition

EA Implementation in Malaysia

Start

m Other Agencies

ation

PwC

A quick recap on Definition of EA

PwC

A quick recap

We are careful about our use of the term Enterprise

Architecture in order to avoid ambiguity
As a Discipline - Enterprise Architecture is a discipline for systematically
understanding, planning, aligning and enabling relationships among strategy,
business capabilities, information and technology.

As a set of Deliverables Enterprise Architecture documents direction and

standards on how the organization should be designed and transformed to achieve
a desired outcome. These deliverables are then used to govern enterprise
transformation.

As a Depiction Enterprise architecture is a set of integrated models at

appropriate levels of abstraction that represent the current and/or future
functioning of the organization.

PwC

Key conversations to identify issues where

Enterprise Architecture would need to considered

Is there a
clear vision
and strategy
for
technology
in the
Enterprise?

PwC

Are
investments
in
technology
realising
their
potential?

Are projects
delivering
technology
solutions
successfully?

Is
technology
cost
effective, or
can more be
done for a
lot less?

Is business
value being
harnessed
from new and
emerging
technologies?

How do you
integrate the
IT in a
merger or
acquisition?

What EA means to an Organisation

A more efficient business operation:
Lower business operation costs
Business capabilities shared across the organization
Lower change management costs
More flexible workforce
Improved business productivity
A more efficient IT operation:
Lower software development, support, and maintenance costs
Improved interoperability and easier system management
Improved ability to address enterprise-wide issues like security
Easier upgrade and exchange of system components
Better return on existing investment, reduced risk for future investment:
Reduced complexity in the business and IT
Maximum return on investment in existing business and IT infrastructure
The flexibility to make, buy, or out-source business and IT solutions

PwC

A quick recap

Why Isn't EA more prominent in the eyes of Health

Leaders ?
One reason is the current preoccupation with operational
issues both people and funding are so heavily tied to EMRs and
quality metrics that organizations are struggling to find capacity for
much else.
Another reason is the industry's general preference for buying
as opposed to building (except real estate). Unlike many other
technology-related areas, EA is not a commodity, and it can only be
matured through internal investment. It's also not just a technology
issue.
Let's be honest -- EA is not broadly understood yet.

PwC

Positioning of Technology Strategy vs. EA

Enterprise Strategy
Strategy

Plan

Business Goals ,
Needs etc

Business Strategy

Technology BusinessEnablement Strategy

Technology Supply,
Availability etc

Enterprise Architecture

Design

Business Architecture
Structure
Process
People

Technology Architecture
Applications
Data
Network

Transition Plan & Governance

Execution

PwC

Delivery

Project/Portfolio Management, IT Solutions,

Individual Projects etc

March 2014
8

Key Benefits of EA Implementation

PwC

Benefit realisation

The typical benefits realized from mature EA

organizations have been significant
Value Drivers

1
Alignment
2
Innovation

Governance and delivery assurance

Improved compliance, disaster
recovery, and security

Richer customer experience,

satisfaction, and retention
Shared business data and platforms
Accelerated adoption of pioneering
technologies

PwC

*Source: PwC Engagement results, across multiple industries

Typical Benefits*

60-70%

improvement in delivering
business value of projects

30-40%

of IT budget re-allocated to
strategic investments

10-15%

improvement in customer
conversion rates

7-10% increase in sales revenue

45-60% improvement in product
design to launch cycle time

10

Benefit realisation

The typical benefits realized from mature EA

organizations have been significant
Value Drivers

3
Agility

Re-use through repeatable, scalable

solutions
Accelerated acquisition integration
Reduced complexity and operating
cost
Disciplined execution with reduced
delivery time and cost

PwC
*Source: PwC Engagement results, across multiple industries

Typical Benefits*

15-25% reduction in operating costs

20-25% reduction in system support
and maintenance costs

20-30%

improvement in service levels

11

A quick overview of EA

in Malaysian

Public Sector

PwC

12

How mature is EA in the Malaysian Public Sector?

#1

Architecture Fram eworks, Principles & Processes

#9

Performance Metrics

Architecture Vision

4
3

1.622
1.54

quirements Management Objectiv es

1.69
1.67

5 out of 9 of the EA areas assessed are only in an

2.46

As expected, EA in the Malaysian Public

Sector is still very much in its infancy
with the Public Sector just starting to
embark on formalising EA practices

Initial
limited ad-hoc
state.
Business, Data,
Applicationor
& Technology
Architecture

2.01

4 out of 9

The remaining
EA areas are in a
Formalised state but are not widely adopted or measured.

2.12

2.16 1.95

#1 Architecture Vision is the most

Architecture Change Management

Opportunities & Solutions

mature EA area, most likely resulting from the mature

ICT Strategy Planning across the Government

Implem entation Gov ernance

Migration Planning

#9 Performance Metrics or KPIs was the

weakest EA area which is unsurprising given the
infancy of the other EA areas

Average
(1.91)

0
None

1
Initial

2
Formalised

Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

PwC

3
Used

4
Measured

5
Optimised
13

Adoption of an EA Framework is in its infancy

across the Public Sector
2%

4%

US National
Health Institute
(NHI) Model

Unrecognised

80%

2%

None

84% of Ministries/Agencies surveyed have

no formal recognised EA Framework:

80% of Ministries/Agencies surveyed

have no formal EA Framework at
all and are conducting Architecture on an
ad-hoc or unstructured basis

4% of the respondents stated that they

used a non-recognised EA Framework
such as ISO/IEC 270001: 2007
Information Security Management
System (ISMS)

Zachman

6%
Proprietary

6%
TOGAF

2
11

Enterprise
Architecture
Frameworks

41

16% of Ministries/Agencies surveyed have a

recognised EA Framework

A standard Government-wide EA Framework is required to

ensure a common Architecture dialogue and Methodology
Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)
PwC

14

Standardised EA Tools are not widely adopted yet

2%
2% SAP Sybase

Sparx Systems Enterprise Architect

PowerDesigner

2%

31%

QPR Enterprise Architect

5%

None

IBM Rational
System Architect

2%
CA Gen EA

1 1 1
17

EA Tools
56%

31

Microsoft Visio

31% of respondents have no EA

Tools at all with a further 56%
only currently having access to
Microsoft Visio for basic
Architecture modelling.
EA Tool adoption is very
sporadic with each
Ministry/Agency choosing its own
distinct tool set
Of the 69% who do use an EA
Tool, only 18% with EA Tools
actually use them

A standard set of EA Tools provides for compatible, re-usable

Architecture Designs and understanding
Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)
PwC

15

Theres a lack of EA Certified individuals across

the Public Sector
2%

2%

EA Certification is
important in understanding
and helping drive the
development of EA however
80% of Ministries/Agencies
responding have no EA
Certified Employees

Only 20% currently have

employees with EA Certification
with the majority having between
1 and 5 Certified EA
employees

>20 Certified

10<Certified<=20

80%

16%

No Certified

0<Certified<=5

8
EA Certified
Employees at
Ministries/
Agencies

39

EA Certified resources are needed to steer the implementation of

the 1GovEA initiative and to assist with future development
Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)
PwC

16

Our overall view on EA Maturity in the Public Sector

EA Frameworks

Tools

Only 16% Ministries/Agencies have a

defined EA Framework

EA Tools are not widespread or

standardised

There is no Government-wide EA
Framework standard with many Agencies
having proprietary Frameworks

Only 18% of Agencies which have EA Tools

actually use them

Governance

Only 17% of Agencies have an

Architecture Governance structure
There is very little Enterprise
Architecture Governance and no
Government-wide Governance Structure

Standards

There are too many Technical Standards

defined at Agency-only level

Skills

Only 20% of Agencies have EA certified

Architects with the vast majority of those
having less than 5 Certified Architects.

Overall, there is no standardised approach to EA across

the Public Sector Each Ministry/Agency has developed
their own practices and processes or not at all
Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)
PwC

17

To success, you must know where to you

PwC

start ??

18

Where to start ?

Launching EA project starts with having the right

focus

PwC

Define
Right Focus

Start
Small

Apply
Use Tool and
Organisational
Manage
Change
Knowledge
Management
Gaps
Throughout

19

Where to start ?

Focus should be demand and opportunity

driven
Boil the Ocean
Focus

Demand-Driven
Focus

.vs

Create services without clear

linkage to business problem

Aligns with business needs and

is of material significance

Create set of processes that are

not used

Is practical and able to be

achieved

Burns out resources due to

focusing on too many things at
once

3
4

Demonstrates value quickly

4
5
PwC

Limits investment exposure

Causes analysis paralysis

Exhausts EA budget rapidly

Builds early commitment and

momentum for EA

20

Start small, pilot, iterate, learn & expand

LongTerm

EA Capability Rollout Model

Near Term

e
ris
rp
te
&
En
ts
ec s
oj tie
Pr ili
l e ab
tip ap
le
ul C
tip s
M EA
ul ct
M roje
P

Starts small and selects a

program / project with EA
challenges to rapidly put
new model into action

Iterates EA capabilities
during piloting efforts before
rolling out to next layer of IT

Builds early credibility by

demonstrating quick results

Pilot
(1 prj )
Project

Establishes platform and

allows for incorporation of
key lessons learned to
facilitate rollout to other
areas

Enterprise
Organizational Reach

PwC

21

Use a Tool and define knowledge Gap

1
2
3

PwC

It is true, a fool with a tool is still a fool. In our teaching and consulting
practice we have found; however, that adoption of a flexible and easy to use
tool can be a strong driver in pushing the EA initiative forward.
EA brings together valuable information that greatly enhances
decision making, whether on a strategic or more operational level. This
knowledge not only needs to be efficiently managed and maintained, it also
needs to be communicated to the right stakeholder at the right time, and
even more importantly, in the right format.
EA has a diverse audience that has business and technical backgrounds, and
each of the stakeholders needs to be addressed in a language that is
understood by all.

22

Change is necessary

Ensuring the continuity of programme management through

a dedicated change management office upon the completion of
projects.
Continuous involvement of leadership level, execution and
monitoring of change management activities to maximise
benefits realisation.

PwC

1.

Create awareness and understanding on EA

2.

Ensure continuity and consistency of the change

programme

3.

Ensure smooth and uninterrupted delivery of the EA

implementation

4.

Establish a model for Change Management

implementation in your Agency

Early engagement with Business Users is important

23

For success you must know what are your

Critical Success Factors .

PwC

24

Critical Success Factors for successful

implementation of EA project
Firm and
continuous topdown support
and
commitment

Strong
Governance and
methodology
Tools

PwC

Skilled Team
Training and
Education are
key

Clearly defined,
agreed and
communicated
project scope and
the expected
deliverables

Availability of the
identified
resources from IT
and Business in
undertaking EA
related work

Close monitoring
and tracking of
project progress
including the
project issues and
risks

25

What can we learn from EA implementation at

other Agencies ?

PwC

26

Key Lessons Leant from the EA implementation of 5

Agencies in Malaysia
Reasons for
embarking on
EA
EA
Framework
EA
Governance

EA Tools
Training

Agencies are clear on the reasons for embarking

on EA (e.g. the need to streamline and align
business process with IT)

A defined framework have been used to develop

the EA Blueprint (e.g TOGAF, Zachman, proprietary
framework)

Elements of EA governance exist in the blueprint.

However, in few instances, the governance have not
been able to be implemented

Most agencies have not defined/implemented EA

tools to support the EA operation

Agencies have few personnel with EA knowledge

when they embark on the EA blueprint development.

Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

PwC

27

Key Lessons Leant from the EA implementation of 5

Agencies

Common
issues &
challenges

Follow up programmes (after EA Blueprint has been

established)
Establishing and maintaining continuous awareness on EA to
the business users
Essential knowledge on EA among the project team members

Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

PwC

28

What can we learn from EA implementation at

other Countries ?

PwC

29

Overview of EA implementation at Other Countries

United Kingdom
Cross Government EA (xGEA )

Tagline: Transformational Government-Enabled by

Technology
Key focus areas:
IT services designed around citizens and businesses
Shared services approach
Broadening Governments professionalism
Developed in 2005, updated in 2012

South Korea
Korean Government EA (KGEA)

Singapore

Singapore EA (SGEA)

United States

Federal EA Framework (FEAF)

EA framework for US Federal

Agencies
An initiative established due to
Clinger-Cohen Act 1996.
Developed in 1996, updated in 2012

Key enabler in realising Singapores eGOV2015

Master Plan
Aims at establishing an effective and innovative
workforce and inter-agency collaboration
Developed in 2002, updated in 2010

Australia
Australian Government Architecture (AGA)

New Zealand

Mandated public entities to adopt

EA in 2005
15,000 information systems have
been registered in the
Governments EA portal (GEAP)
84% Koreans used eGovernment
services in 2012
Developed in 2005, updated in
2010

Aims to assist in the delivery of more consistent and cohesive

services to citizens; and
Support cost-effective delivery of ICT services by
Government.
Developed in 2007, updated in 2011

Government EA New Zealand (GEA-NZ)

Framework to describe common business processes, ICT capabilities and solution to optimise
Governments service delivery
Uses a Just Enough approach towards establishing an EA framework
Developed
in 2003,
updated
in 2013
Kajian Pembangunan Enterprise
Architecture
Sektor
Awam
(1GovEA)

PwC

30

Common Issues & Challenges faced by the Countries

Business
Processes
ICT
Organisation
& Workforce
Investment
Information
Management
Security &
Privacy

Business processes are agency/system centric hampering integration efforts.

Too focused on building & operating infrastructure neglecting management and strategy
portion;
Services are too agency-centric discouraging reuse; and
Similar system capabilities are still found duplicated across Agencies.
ICT initiatives & investments are agency-centric driven; and
Short term investment planning & heavy towards infrastructure and purchase &
maintenance of capital assets.
Fragmented & inconsistent accountability & responsibilities;
Information & data is stuck to specific applications; and
Information management legislation, policy & practices have not been designed for non-digital
formats.
Slow adoption rate of information security standards.

Technology
Platforms

Difficulty in standardising technology implemented across Agencies.

Projects

Projects are too large, expensive & high-risk for a single Agency; and
Common issues of overspending & delays.

Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

PwC

31

Lessons Learnt that is Shared by the Countries

Countries

Lessons Learnt

SK

Implementation & advancement of EA

framework was not completed in a single
stage

UK

Address all political issues at the start

of the EA initiative

US

Additional attention required for the

evaluation model on maturity and cost

SG

Increased outsourcing have drained

architecting/design expertise maturity
within the Agencies/Ministries

AU

Assignment of accountability to the

right party is key; and
Sharing mechanism cross-agency is
important

NZ

Realistic approach to achieve ICT

goals
Development of a Maturity
Assessment Model

Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

PwC

A strong governance
mechanism builds the
foundation;
Revision of components
within the implemented EA
Framework is necessary to keep
up with advancement;
Focus on key areas of
interest or is most beneficial;
EA should be driven by the
entire organisation
(Business & IT); and
EA programmes should not be
disconnected / isolated from
the organisation.

32

Standard Principles & Guidelines of EA

N/A Not Apparent

Principles /
Guidelines

SK

UK

US

SG

AU

NZ

TOGAF

Common
Vocabulary & Data
Dictionary

Data is Accessible

Data is Shared

Interoperability

Maximise Benefits

Common Use Apps

N/A

N/A

Ease-of-Use

N/A

N/A

Information
Management is
Everyones
Business

N/A

N/A

Data is an Asset

N/A

N/A

N/A

Data Security

N/A

N/A

N/A

N/A

Business
Continuity

N/A

N/A

N/A

N/A

N/A

Kajian Pembangunan Enterprise Architecture Sektor Awam (1GovEA)

PwC

33

Success story of South Korea

PwC

34

South Koreas EA Vision

Customer-centric citizen services and enhanced public participation;

Intelligent administrative services through digital government network;

Real-time public safety information network; and

Strengthened e-Government infrastructure through enhanced privacy and

security.

South Koreas Vision for Enterprise Architecture is to have an

integration of e-Government systems for seamless delivery to
the public [1]

PwC

35

Successful Implementation of EA in South Korea?

South Korea had an impressive e-Government journey in the past decade. It leaped from 13 th place on
the UN E-Government Study to 1st place in a gap of 8 years. Its stunning development phase was
divided into 3 phases; e-Govt Infrastructure development (1987 2002), full-fledge implementation of
e-Govt (2003-2007) and further advancement of e-Government (2008-2012).

Ranking
South Korea ranks 1st in the world e-Government
ranking

Strengths/Best Practices
Took a staggered approach in building towards a
unified solution;
The stunning development on SKs e-Govt is a
result of years of planning and execution without
losing sight of the big picture
Similarities to Malaysia
Just like Malaysia, SK started with a similar
economic size back in the 60s and 70s[2]

Rank

Country

E-Government Development
Index

0.9283 [1]

Republic of
Korea

Netherlands

0.9125

United Kingdom

0.8960

Denmark

0.8889

United States

0.8687

France

0.8635

Sweden

0.8599

Norway

0.8593

Finland

0.8505

10

Singapore

0.8474

11

Canada

0.8430

12

Australia

0.8390

13

South Korea

0.8381

40

Malaysia

0.6703

[1] United Nationals E-Government Survey 2012 World e-Government rankings

[2] World Development Indicators, http://databank.worldbank.org/data/views/reports/tableview.aspx#, 2014 (accessed 19 February 2014)

PwC

36

EA Benefits Observed for South Korea

Benefits Planned[1]
Citizen-centered Govt Service: Addressing inconvenient processes & enhancing
satisfaction levels;
Market-based e-Govt for the Private Sector;
Achieving a Transparent & Efficient Govt; and
Cost Saving from an e-Govt System.

Benefits Realised[2]
$ 88.8 million saved by reviewing the 2010 national IT investments based on EA;
EA-based IT management established;
A commanding view on the governments IT resources (4,214 systems, 10,854
hardware, 5,393 software, etc); and
413 data redundancies detected using 1,569 standard data defined in DRM.

[1] Koreas e-Government Completion of e-Government Framework, South Korea, Special Committee for e-Government Republic of Korea, 2003, pp. 28-40
[2] - Korea e-Govt : Government EA(Enterprise Architecture) & e-Govt standard Framework, South Korea, National Information Society Agency, 2011, p. 14

PwC

37

Thank You

2014 PricewaterhouseCoopers Advisory Services Sdn Bhd. All rights reserved. In this document, PwC refers to [insert legal name of
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