Enterprise Architecture Business Outcomes & KPIs

[Kranthi P]

ServiceNow® Enterprise Architecture 

ServiceNow Enterprise architecture (EA) allows your organization to see its business capabilities and value streams based on all key elements of the enterprise. EA helps you understand and connect business, technology, people, and processes to gain a single, complete picture of the organization today, and to develop an integrated vision of the future. EA allows you to simplify your organization, while reducing costs and risks, as well as understanding and managing technical debt. It provides greater insight into how the elements of your enterprise function in concert to deliver business capabilities. That insight accelerates strategic transformation and the ability to optimize all elements of the enterprise. 

Introduction 

ServiceNow Enterprise Architecture empowers organizations to align IT strategy with business goals, enabling better decision-making, optimized investments, and streamlined operations to drive tangible business outcomes. 

Key Enterprise Architecture (EA) Business Outcomes 

The table below summarizes the most frequent EA business outcomes along with specific objectives that support these outcomes. Think about how each of these outcomes supports your organization’s business goals and create a ranked list. Choose the top outcomes and share these with your stakeholders to get alignment on priorities. Then, evaluate how many of these agreed outcomes you can reasonably address in your initial EA rollout, and which ones need to be delivered in future phases. Use this to create an EA roadmap that is aligned with your strategic goals, and, once again, share this with your stakeholders to get their agreement and support. Note that you can achieve all the business outcomes below over time. However, by prioritizing which ones to target first, you accelerate time to value and avoid casting your net too wide. 

Enterprise Architecture Business Outcomes	Enterprise Architecture - Business Objectives
Rationalize / consolidate application portfolio​	Make data-driven decisions on whether to invest, sustain, or replace your business applications.  Retire current system being used to manage application portfolio management.
Increase application lifecycle management efficiency	Manage applications in a more effective manner with all relevant information in one place, streamlined reporting, and link between technology and business
Increase Enterprise Architect efficiency	Manage enterprise architecture in a more effective manner with a single intuitive interface with scorecards, roadmaps, insights and a modelling tool.
Increase technology portfolio alignment to business strategy	Align technology investments and services to business value streams via capability-based planning.
Reduce non-compliance from unapproved technology	Minimize penalties from regulation breaches by increasing application compliance to technology standards.
Migrate applications to cloud	Identify opportunities to migrate applications from on premise to the cloud, thereby reducing application total cost of ownership.
Reduce technical debt	Reduce operational risk to business by monitoring and managing the lifecycle of applications and technology versions in the   tech stack. Success metric can vary by the customer based on the score used to track tech debt

Enterprise Architecture key performance indicators 

Here are examples of the KPIs that ServiceNow Enterprise Architecture customers use most frequently to measure success. Note that these do not map one-to-one with the business objectives we’ve just discussed — one KPI may be applicable to multiple business outcomes. Select the KPIs that support your chosen business outcomes and identify how you are going to measure these. It’s also important to establish a baseline for your selected KPIs. For instance, if your KPI target is a 10% increase in NPS for support calls, you need to know your current NPS so you can measure your progress. Once again, make sure you share your KPI targets and timelines with your stakeholders and get their buy-in. This will allow you to set clear expectations on what success looks like and to demonstrate that success once you have achieved these targets. 

  

	Enterprise Architecture Key Performance Indicators Examples
1	8% reduction in avg. time spent on data stewardship & lifecycle management per app (hours)
2	10% increase in Enterprise Architect efficiency
3	10% reduction in on-premise business applications
4	15% increase in number of business applications retired
5	5% reduction in business applications with unapproved tech
6	12% reduction in business applications not aligned to business capability