Chapter 12 • Planning Information Systems Resources 525
Strategic Implications of IT
Architecture Maturity
Local/Functional
Optimization
Process
Optimization
Strategic
Choices
Applications
Local
Customization
Non-core
Business Needs
Local Knowledge
Specific Worker Support
Business
Needs Wired
Business
Core
Core Process
Integration
Shared Product
&/or Customer
Data bases
Accessible Core
Data Objects
Technology
Standardization
Standardized
Technology
Rationalized
Data
Modular
Data Warehouses
Data Center
Application Silo
Infrastructure
Data
IT
Efficiency
FIGURE 12.5 Changing Information Resources Across 4 IT Architecture Stages (Ross, 2003)
organization to quickly leverage these processes with
new features as the competitive landscape changes.
- Modular Architecture—Recognizing that core busi-
ness processes of a multinational organization will need
flexibility to compete locally, this architecture stage
brings back customized modules that are extensions of
the standardized core. Although the study (Ross, 2003)
found no organizations in this stage, we can now see
that the newer architectural options, such as Service-
Oriented Architecture and Cloud Computing, will sup-
port this stage and that many organizations are pursuing
them (see the box “Service-Oriented Architecture and
Cloud Computing”).
This stage model reminds us that organizations
need to learn as they evolve, and that a move from stage
1 to stage 3 (i.e., application silos to rationalized
processes and data) will be very risky because the
learning that results from standardizing the technology
infrastructure has not yet been achieved. This can be
seen in the differences needed for IT capabilities for
stage 1 versus stage 3, as shown in Figure 12.6. A move
Application
Silo
IT Capability
Business Case
for IT
Standardized
Technology
Rationalized
Data Modular
IT applications
serve isolated
business needs
Firm-wide
technology
standards
IT focused on
wiring core
process
Modules enable
business model
extensions
ROI of
applications
Reduced IT costs;
interoperability
Improved
business
performance;
integration
Speed to market;
strategic agility
FIGURE 12.6 IT Capabilities and Business Metrics for 4 IT Architecture Stages (Based on
Ross, 2003)
