Here is why Enterprise Architects need a quick primer in Finance, Costs and P&L

I periodically engage in digital forums discussing the practice of Enterprise Architecture and Technology Management. Many of the conversations focus on EA building blocks, domains and on aspirations like getting a ‘seat at the table,’ closer engagement with business. However, such aspirations remain academic, unless substantiated by business fundamentals including an understanding of costs and financials.

The goal of a commercial enterprise is rather straightforward: maximize shareholder value, and increase returns for investors. Most other goals, including profit generation and operational excellence are inherent in this. However, cost and financial reviews are generally absent during Enterprise Architecture reviews. Even EA frameworks - including TOGAF, Zachman – miss the big elephant in the room or deliberately underplay it.

What is the cost of your roadmap realization?

This rather simple sounding question is likely to stump many Enterprise Architects, and leave them fumbling for a response. Even when an EA has some information on costs, s/he can easily get overwhelmed when the discussions get deeper into TCO, financials of the Business case, levers impacting the business value or a discussion on CapEx and OpEx that ultimately drive the P&L. To be fair, defining Architecture roadmaps for BDAT, functional and technical domains can be a rather involved exercise. During such Architecture reviews, practitioners might make a lot of assumptions and SWAGs and may not get down to the costs and financials. 

In an earlier blog post (link), I described the process of reconciling EA roadmaps across functional and technology domains. Such reconciliation of roadmaps and capabilities across the landscape requires the extended team to agree on a few criteria, including a common table of contents (TOC), guiding principles and capture of the requirements, assumptions, timelines and other building blocks.

During roadmap reconciliation, Architects engage with their stakeholders to validate their assumptions, drivers and timelines. This is also an opportune time to engage in conversations on the cost and benefits of capability realization since KPIs, and success factors are generally tied to financials.  

I have engaged with business partners and stakeholders at various stages of digital transformation - from ideation to the translation of such strategies into actionable programs and projects (link). In many cases, the conversations remain at a ‘ballpark’ and SWAG level and might get less ambiguous as the programs evolve. However, Enterprise Architecture inputs are required while strategies translate to programs not after that.

Case in point: Cost benefits of migrating a portfolio to the cloud

A few years ago, my organization decided to move forward with a cloud migration plan, and I took on the responsibility for assessing the portfolio of 2000+ application platforms. The ‘cloud suitability’ assessment of individual platforms unearthed unique challenges and dependencies across the landscape. The underlying cost of platforms including application support, hosting and infrastructure, and complex licensing costs were shared across the landscape. Some of the costs and licenses had been negotiated years ago. While individual application owners understood and tracked the cost of ‘their’ applications, most of the shared costs were tracked globally. A phased migration to the selected cloud options – IaaS, Paas and SaaS – would upend the status quo.

It was obvious that a summary of the transformation cost had to be communicated to the stakeholders. An early review of the TCO and an understanding of the different levers of ‘cost benefits’ would minimize a ‘sticker shock’ when the individual transformation programs began to take shape. The team began data gathering and engaged a financial analyst to help with the modelling and validation of scenarios.

Break through the silos

In many organizations, there seems to be an unintentional ‘Chinese Wall’ that separates folks with experience in technology costing - Program Managers, Delivery Managers, Business Partners etc – and the architecture community. Architects are expected to focus on the BDAT dimensions while the ‘managers’ bring in the cost/benefit perspectives. The reason for such segregation includes the need to take ‘unconstrained’ view of solutions and ideas.

There is a merit to the argument since an early cost review could sway the solution options: after all, you don’t want a city-planner designing a township for the next century to be constrained by today’s costs. You might want him to be unconstrained and futuristic. Even this city-planner analogy is a bit flawed since businesses, and even governments are constrained by costs.

Bottomline: Enterprise Architects should remain grounded, especially when most of their business stakeholders focus on the costs and financials. 

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 Reposted from my linkedin Pulse blog |

Enterprise Architecture Q&A : How important is it for an Enterprise Architect to have business domain knowledge?

Here are a few Questions on Enterprise Architecture that I answered recently.

How important is it for an Enterprise Architect to have business domain knowledge?

There is no doubt that an Enterprise Architect must have EXCELLENT technical knowledge. Usually an Enterprise Architect is a person who has worked as Application Architect in the past, sometimes in various applications for business domains such as Telecom, Finance or Insurance. In this role, the person concentrates on using technical skill to build an application. This person is unlikely to concentrate on building business domain knowledge (also called functional knowledge) and only learning it to build the application.

Meanwhile a Business Analyst (BA) concentrates only on gaining business domain knowledge. A Business Analyst provides the business input required by the Application Architect. 

Does an Enterprise Architect need to have excellent knowledge of business domain? If so, how can this person gain it they have been working as an Application Architect in the past?

Yours is a multi-part question.

Enterprise architects could come from an IT background, in which case the EA will have “have EXCELLENT technical knowledge” (as you mentioned.) However, many Enterprise Architects also come from management consulting, Business Partnering and from business functions. Such Enterprise Architects will have extensive business domain knowledge.

Let us look at your other questions:

• Does an Enterprise Architect need to have excellent knowledge of business domain?

Yes, a knowledge of business domain certainly helps. However, the term “excellent” is a bit of a misnomer, especially for large, complex businesses with many lines of business or operations across geographies. In such organizations, breadth of knowledge of business operations and domains will help more than an endless pursuit of depth in all domains

• If so, how can this person gain it they have been working as an Application Architect in the past?

When I was hired as an EA for a multinational Ag-Chemical company, I had little knowledge of the complex supply chain of chemicals (pesticides, herbicides and insecticides) or the complexities in GMO or breeding of seeds. (Check out my blog on the topic)

I began attending appropriate training and 101-orientation sessions on the business -business models and continue to learn during my engagements with functional stakeholders.

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Which is the best EAI tool?

If you can tell me the best Car I can buy, then I can advice you on the ‘best EAI tool’

If you think I am being cheeky, think again. Buying a car is highly context sensitive. Unless you know me and my needs, and requirements, your advise is going to highly subjective and useless!

In the same way, your adviser will need a lot of information on your context, landscape and requirements before s/he can suggest the ‘best EAI tool’ for your organization’s needs!

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Can you effectively practice as a Enterprise Architect or a Solutions Architect without the ability to code?

Even my 7-year-old is ‘learning to code’ at school. So I will assume the OP implies “ability to write production ready code using the processes, tools and techniques used in the organization.” Using this assumption, my answer is simple:

• Enterprise Architect - Yes, you can effectively practice as a Enterprise Architect without the ability to code.
• Solutions Architect - A qualified Yes for this role too.

Why do I say this?

Enterprise Architects could come from any of the BIDAT domains and only those from an ‘A’pplication background may know to code. Even assuming an EA came from an application development background with hands-on coding experience, s/he may not be proficient in the newer languages and programming paradigms.

Executives who let their Enterprise Architects roll-up their sleeves and code are not making the best use of their (the EA’s) talent.


Solutions Architects are expected to bring a depth of the Application life cycle including development and integration. Many of them may also have a ‘coding’ background, but the ability to visualize and communicate solutions is more important than the ability to code. In smaller organizations, it is not unusual for the SA to sit with developers to prototype and validate solutions.

Are the reasons Donald Trump gave for withdrawing from Paris climate deal valid?

President Trump’s decision to yank America out of Paris climate deal shouldn’t surprise many of us who have heard his election-time rhetoric.



 Whether you believe in climate change (or not), a few things to keep in mind:

• The deal was signed by President Obama using his ‘Executive powers’ and didn’t need the support of US lawmakers and Congress.
• President Trump, using the same ‘Executive powers’ has reversed his predecessor’s decision.
• Such reversals of executive actions happen all the time, although they may impact a few people and smaller issues like actions on a few immigration issues.
• Such a sweeping reversal by a major economic power can unravel the Paris climate agreement

Is this going to be the end of the war on climate-change? If you believe – like Mr. Trump – that climate change is a hoax, this reversal is no-big deal. For the rest of us believers, and for future generations on mother-earth, it is really a big deal!
Will the pullout of Paris deal lead to more American jobs? The facts on this are clear as mud
Bottomline: There is an old adage in business consulting – if you can’t convince them, confuse them.
We are surely confused and scratching our heads; but make no mistake. Mr. Trump is an extremely shrewd man. This move is sure to polarize Americans further and confuse them on issues like climate change. More importantly, it will distract us from issues like the economy, healthcare, job creation, the investigation over Russia and the firing of FBI director. 

Enterprise Architecture Q&A : Is Enterprise Architecture still relevant in the Digital Age?

Here are a couple of questions that on EA from an online forum that I responded to 

Is Enterprise Architecture still relevant in the Digital Age?

Let us take the overly simplistic description of EA from Wikipedia “Enterprise architecture (EA) is "a well-defined practice for conducting enterprise analysis, design, planning, and implementation, using a holistic approach at all times, for the successful development and execution of strategy.”

This need for “conducting enterprise analysis, design, planning, and implementation, using a holistic approach” continues to be relevant in the digital age.

A strong EA based approach will guide the development of a strategy and roadmap for realization. More importantly, it will guide the execution of a digital strategy[1] too.

You may be interested in my article: What is Digital Strategy Execution? And what it means to IS Executives

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How can I be an expert in enterprise architecture?

Let me change the premise of the question before trying to answer it. One doesn’t become an “expert in enterprise architecture” just like one doesn’t become an “expert in medicine” or “expert in law” or “expert in business”

Building on one of these examples, one becomes proficient in law, and gains expertise in a branch, say patent-law or criminal-law. After a lot of hard work and working in the trenches, one gets recognized as a good lawyer and perhaps an expert in patent filings.

Most Enterprise Architects are generalists in many of the BIDAT EA domains, while some may also be recognized as experts in a domain or sub-domain. For instance, An EA might be recognized as an ‘expert’ in Networking and Infrastructure with a strong background in virtualization and cloud hosting, while his peer in the organization may bring in expertise in transforming HR processes. By complementing their skills, they enhance the practice of EA in their enterprise.

If the question was “How do I learn more about Enterprise Architecture?” I can point you to several books, references and online forums on the topic. (ref: “Enterprise Architecture References”)

Infosys, dust off the slogan “Powered by Intellect, Driven by Values”?

Years ago when I worked for the software services giant, Infosys, the corporate tagline was “Powered by Intellect, Driven by Values.” It perhaps symbolized the quintessential Indian middle-class values of service and sharing, values that prompted the founders to share the wealth they created by giving away stock options, grants and ESOPS to hundreds of early employees. This story was the stuff of corporate legends in the nineties through 2000s.

The founders took turns running the business, and had an astute sense of the market and a handle on public relations, at least in India. Of course, the company was a media darling and could do no wrong. Occasional incidents involving employees or its executives – like the Phaneesh Murthy scandal or investigation over H1 Visa-fraud – were shrugged off as one-off.

The co-founder-CEOs, vested with millions in stock grants and options, had little need or interest in begrudging “pay and bonus” of a fellow co-founder. They didn’t feel the need to voice their opinion in public, especially since they also enjoyed a seat at the board. This was also a time of tremendous growth at the company. The founders and employees who joined early were happy: their stocks and options were rising with the tide of offshoring.  

As a former-employee continuing to hold a percentage of his net-worth in the company’s stock, I try to stay updated on the news about the company: Infosys continues to be in my list of RSS reader searches that I periodically browse. Fast forward to present day Infosys where there seems to be a nexus of forces at play.

• The pace of growth in the business of offshoring has slowed down considerably. The industry is bracing for headwinds in key markets - thanks to Mr. Trump in North America and Ms Theresa May in Europe – and clients of offshoring services are taking a wait-and-watch when it comes to big technology investments. The stock market is beginning to discount the valuations of Indian software service firms.
• The board-of-directors of the company now consists primarily of non-founders. (ref: Infosys) The venerable Narayana Murthy stepped down as Chairman of the board in 2015, though his opinions continue to be quoted as gospel by the media. After all, the “promoter & promoter Group” still hold about 12.75% of the total number of shares which gives them a significant voice. (ref: Infosys holdings)
• A couple of years ago, the board selected Vishal Sikka as the first outsider CEO to lead the company. After Mr. Sikka took charge, there was a large-scale churn of senior executives.

The latest series of headlines seem to be centered on “governance” of the company, primarily on the multi-million-dollar compensation being offered to the CEO, and a large exit package for its former CFO. (ref: NDTV summary) The jury is still out on Mr. Sikka’s scorecard and performance during the past couple of years. By many accounts, the company hasn’t done much worse (or better) than peers in the business of offshoring IT Services.

In a public company, small shareholders like me are generally inclined to trust the checks and balances in the system. And that the board of directors elected by the majority of us are executing on their fiduciary duty. This goes to the heart of corporate governance.

As a passive stakeholder, I left shaking my head over this “controversy” surrounding the company, wondering if this is a case of a storm in a teacup orchestrated by the media-and its founders founder (ref Prabal Roy’s writeup ). Or if the smoke blowing out of Electronics City is an indicator of a major fire. Either way, it is perhaps time for Infosys’ board to dust off the slogan “Powered by Intellect, Driven by Values,” and focus on re-communicating its values.

(Reposted from my LinkedinPulse blog)

Recent Q&A on NRIs

Here are my recent responses to questions about  NRIs on Quora. Do keep the questions coming. I will try and respond on this blog or Quora  

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Question: Why are Indians so obsessed with the NRI status?

The purchasing power of NRIs -essentially the “rich uncle” syndrome is part of the reason for the obsession.

But that alone doesn't explain the full story. Different groups in the society are obsessed for different reasons:

• Relatives of NRIs: Obsessed with the rich uncle/aunt/cousin whom they can lean on for foreign goodies and some $$s
• Real-estate agents, builders and brokers: Opportunity to “sell” a slice of Indian dream to this affluent market segment
• Students and youngsters: Look to NRIs as global role model: “If my cousin could go to US to study and get a nice job at Google/Microsoft, so can I!”
• Rest of the digirati and Junta: Always looking for interesting stories. NRI did well in ….. America, England, elsewhere is and interesting story.
• Media and Journalists: Always looking for a juicy story to sell to the above groups. NRIs stories sell!

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Question:  What do we do with left over money after the visit to India as an NRI? 

The question is too open ended. Your options would depend on :

• NRI status and intent: Are you a transient NRI (e.g working for a service company with an Indian passport) or hold a foreign passport (and only occasionally travel to India)
• Amount of money we are talking about.
• If it is a few hundred rupees, why not just donate it to charity?
• If it is a larger amount - hundreds of thousands - you need to think if you want to “invest” it or repatriate it back “home” in Dollars, Euros or Pounds
• Bank accounts in India: Many long-term NRIs who just visit India occasionally may not have bank accounts or the means to manage their investments in India. For them, holding Indian currency is meaningless
• Other factors: your investment preference, inclination to donate to charity etc etc.
• More recent factor: Is the money in OLD 500s and 1000s. If so, is the Amount in India or with you overseas? Check out: Indian Government's decision to do away with 500, 1000 RUPEE NOTES! Impact on NRIs )

Think about it a do good!

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Question:   What should the Indians abroad in possession of ₹500 and ₹1000 notes do if they are not returning till 31 Mar 2017? 

First things first. What will NOT work

• Panicking about this is not going to help. Unless you have stashed away hundreds of thousands of rupees in 500 and 1000 rupee notes in your bedroom or bank locker overseas, there is no reason to panic.
• If you had a lot - hundreds of thousands - of currency notes with you while traveling overseas, ask yourself:Has the money had already been taxed in India? If yes, just hold on to the currency till your next trip back to India and follow RBI guidelines ( check out Indian Governemtn statement )On the other hand, If the money had not been taxed, or it was a "cash payment" you received, ask yourself if you should just count your losses and walk http://away.As per RBI regulations, Foreigners and Indians are not legally "allowed to carry any Indian notes with them." Although the rule, which is part of Foreign Exchange Management Act (FEMA), has been in place for quite sometime now, it is only now that the central bank is trying to enforce it.If you walk into an Indian Embassy or Consulate overseas with a suitcase full of 500 or 1000 rupee notes, you could be in trouble!
• Branches of "Indian" banks like State Bank of India, ICICI and other banks in the US and Canada operate as local banks. They are not authorized to operate your "Indian" NRI or NRO accounts. Therefore, they will not take your 500 or 1000 rupee notes for deposit.
• Currency exchange ( money-exchange ) outlets in foreign countries may NOT accept the old 500 or 1000 rupee notes. There are already accounts in media that commercial money exchange outlets overseas have reportedly refused to accept the old 500 and 1000 notes.

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Here are a few facts and practical tips for NRIs, left with "some" Indian currency in hand:

1. Carry the cash with you to India: According to a press release by India's Ministry of Finance, individuals can exchange the old notes till December 30, 2016.
2. If you have some money left back in India, you could authorize another person in India to deposit the notes: According to RBI guidelines, if you have old banknotes in India, others may be authorized to deposit the notes into your Non-Resident Ordinary (NRO) or Non-Resident External (NRE) bank account. The authorized person should go to the bank branch with the old banknotes and authorization letter from you. He or she should also carry a valid Indian identity proof
3. Send the rupees back to India with someone you trust. If the person is traveling before end of 2016, he or she can deposit it into your account (similar to step 2)

 Mohan Babu K, Indian American, OCI... Once an Indian, always an Indian at heart

Recent Q&A on Enterprise Architecture

Here are my recent responses to questions on Enterprise Architecture asked by fellow EA's on Quora. Do keep the questions coming. I will try and respond here or on Quora or Linkedin Pulse. 

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Are EA tools really helpful in enterprise architecture?

An Enterprise Architect uses several tools including Word (for documentation), Document repositories (to store artifacts), Powerpoint, Visio etc to communicate visual viewpoints.

In some scenarios, EA tools are helpful too. Check out my earlier answer to “What are the best enterprise architecture design tools?”

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Do I have to build models in order to do Enterprise Architecture?

Modeling is one of the most effective ways of communicating architectures. Why? As the old adage goes, a picture is worth a thousand words. It is easy to visualize architecture models including integration between processes and platforms.

Enterprise Architects use several modes of communication including

• Verbal and nonverbal - in meetings, sessions and workshops
• Written - emails, memos, reference documents etc etc
• Formal Viewpoints, Whitepapers etc
• Blogs, wikis and other social media tools (internally in an organization and externally like this Quora post)

Models - including reference architectures certainly help in such communications.

So, back to your question: Do you have to build models in order to do Enterprise Architecture? You don’t always have to. However modelling skills are expected and effective in communicating your viewpoints.

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What recent technology trends are important to Enterprise Architecture?

Enterprise Architects continually scan the landscape for emerging trends in technology and business. Most of us review “lists” published by analysts and consultants (e.g Gartner's Special Report : 10 Strategic Technology Trends for 2016,McKiney’s Ten IT-enabled business trends for the decade ahead , BCG’s Ten Trends That Are Reshaping the Retail Industry etc etc).

EA’s also try to contextualize the trends specific to their industry or vertical channels - e.g Retail, Finance, Insurance, Chemicals, Supply Chain, Digital etc).

Given this context, it won’t be fair for me to list “technology trends” here on Quora since such a list is bound to be outdated very soon. You should continue to scan the landscape and some of the references I have posted to formulate an opinion of your own.

Answers by  Mohan Babu K, Enterprise Architect for a global 1000 company.