Briefly explain enterprise architecture and enterprise architecture maturity model. Discuss the relationship between enterprise architecture and an organization’s outsourcing strategy.
Enterprise architecture entails an enterprise/ firm’s technological standards about business requirements. It involves how technological aspects are utilized to fulfill an enterprise’s needs, for instance, information technology in allowing for efficiency, effectiveness, and economy in various business processes like order and supplies processing. The enterprise architecture maturity model provides some stages for strategic IT application in business. For example, business silos, standardized technology, rationalized processes, and business modularity. Enterprise architecture and an organization’s outsourcing strategy are directly related in that when it is efficient, the outsourcing practices are successful and vice versa (Ross 2003).
Identify and briefly explain the types of outsourcing arrangements an organization can use.
There are various types of outsourcing arrangements that can be utilized in an organization, for instance, an arrangement where a strategic partnership exists and a vendor is charged with almost all the responsibilities in a transaction and the client does very little. This is essential in moving from stage one to stage two of architecture maturity. Another arrangement entails the existence of a co-sourcing alliance where the vendor and the client are in a close relationship and share responsibilities, almost equally. This is essential in moving from stage two to stage three of architecture maturity. Outsourcing can also occur through transaction exchange where the vendor carries out business processes on behalf of a client. This helps in the transition of the clients from the rationalized processes stage to the business modularity stage (Ross, and Beath 2006).
Briefly describe the outsourcing arrangement with Campbell Soup Company.
The outsourcing arrangement in Campbell Soup Company entails a strategic partnership (with IBM Company) form of outsourcing where it outsources various processes. For example, computer operations, application development, and maintenance from outside (in this case the IBM) and it does not have to necessarily be actively involved. This has in a great way helped the company to move from the business silo stage to standardized technology. The company deals with the core functions strategically leaving the rest to IBM. The efficient IT processes provided by IBM have brought about various advantages to Campbell including cost-saving hence increased profitability (Ross, and Beath 2006).
Briefly describe the outsourcing arrangement between Dow and Accenture.
A co-sourcing alliance arrangement exists between Dow Chemical Company and Accenture. This entails sharing of responsibilities and accountability between two parties in an almost equal portion to help each other achieve strategic goals. Dow Company relies on Accenture organization in terms of project management and technical expertise. Some processes are specifically undertaken by Dow Company, others by Accenture Company while others are performed jointly. The Dow – Accenture alliance is associated with a lot of benefits to both companies (Ross, and Beath 2006).
Briefly describe the outsourcing arrangement with e-Funds.
The outsourcing arrangement present in e-Funds is the transaction exchange type where a vendor engages in business transactions on behalf of the clients to improve their business processes which in return enhances their productivity and profitability. eFunds provide beneficial services especially to financial related organizations where it offers financial services that many organizations cannot provide hence outsource them. Cost-saving is a major aspect that is enjoyed by organizations that outsource eFunds services mainly because of economies of scale. The application of advanced technology in the outsourcing processes, for instance, in data processing and analysis has enabled eFunds to be very successful in the provision of services to various clients without difficulties (Ross, and Beath 2006).
Reference List
Ross, J.W., 2003. Creating a Strategic IT Architecture Competency: Learning in Stages. MIS Quarterly Executive, Vol. 2, No. 1, pp. 31-43.
Ross, J.W., and Beath, C.M., 2006. Sustainable IT Outsourcing Success: Let Enterprise Architecture Be Your Guide. MIS Quarterly Executive, Vol. 5, No. 4, pp. 181-192.