Simulating the Enterprise for Smart CIO

In the last blog, we discussed how CIOs should build their organizations to align with the business and we specifically discussed "Cost Pressures of CIO and Variabalization"

We concluded that a CIO needs to fine tune his priorities and decisions based on these three dimensions in addition to other aspects:

Financial Risk Appetite and cultural acceptance index of the organization
Business rhythm - what is the topline and bottom line predictively; whether the organization can afford to have captive units or need to variabilize costs
Lifecycle - determining the phase the business is in: planning, expanding, rationalizing, optimizing, etc; whether a major M&A is planned; whether there is a push to comply with a new regulation etc.

But the success and business appreciation or business value of any IT initiative is a complex function which involves thousands of variables in the Enterprise. So, in order to develop the ability to assess the DNA of the organization, one needs to know how to scientifically simulate the Enterprise and create a scalable model which will allow addition of any variable within the Enterprise.

The Science of modeling and simulating the organization is called - Enterprise Architecture. All of us know Enterprise Architecture, but most of the organizations use EA to model Applications and Infrastructure Portfolio. Unfortunately that is NOT EA!

The reason I did mention simulating along with modeling is simple. Modeling alone is capable of deriving very limited benefits. With just modeling, one may know the current state of the Enterprise or do some impact analysis. However, if you want to predict the future of an Enterprise, you need to simulate it.

Also to derive the true benefits from EA, one needs to implement EA end-to-end - from Business to Application and Information to Infrastructure, so that the correlation between any Business and IT entity can be established.

Will discuss more in the next blog!

About the Author

Mandar Vanarse for last 2 decades, Mandar has been in various leadership roles in IT Consulting industry in the U.S., the Middle East, APAC, ANZ and India. He is the Author of ASSIMPLER Framework for EA and IT Strategy. He has led many cross-cultural teams onshore and offshore. His experience spans across Energy and Utilities, Telecom, BFSI, Pharma, Infrastructure and Government. Mandar has also led Practices, ODCs and start-up organizations in the capacity of Head, CTO and CEO, to successful profit centers. He is a strategy Coach and Mentor to many Country-wide & Organization wide transformational initiatives. The countrywide EA framework project which he directed has also received UN award. Mandar currently works in Global Transformation (GT) Office of Wipro. GT focusses on transformation initiatives for Wipro’s key clients and has been instrumental in evangelization of next-generation IT platforms.

Reach out to GT office at Wipro to contact Mandar.

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