Your enterprise architecture is incomplete without accurate cost models
Conclusion: Recognition of revenue and recording of objectively verifiable historical costs are the foundation of globally accepted accounting practices. These practices in turn provide transparency and consistency of reporting to improve the confidence with which enterprises conduct business and undertake trade, nationally as well as internationally.
Unfortunately, many enterprise architectures lack models that address this most critical of elements within an organisation. This absence of cost analysis means the recommendations from enterprise architects (EAs) can lack business credibility, rely on subjective assessments or are stymied by biases, cultural drag and ignorance of the true cost of the technology portfolio. Therefore, EAs must present business leaders with analysis from enterprise architecture (EA) that not only contains cost based on basic accounting practices, but also employs other important economic models, analysis and reporting techniques such as total cost of ownership, activity-based costing and technical debt.
About The Advisor
Sam Higgins was an IBRS advisor between 2017 and 2020 with over 20 years of both tactical and strategic experience in the application of information and communications technology (ICT) to achieve business outcomes from large complex organisations. Through previous roles as a leading ICT executive, strategist, architect, industry analyst, program consultant and advisor, Sam has developed an extensive knowledge of key markets including as-a-Service (Cloud) computing, enterprise architecture (including service-orientation and information management), enterprise applications and development, business intelligence; along with ICT management and governance practices such as ICT planning, strategic sourcing, portfolio and project management. Sam’s knowledge of service-oriented architecture and associated business models is widely recognised, and he was a contributing author on the Paul Allen book Service-orientation: Winning Strategies and Best Practices, released in 2006 by Cambridge University Press. As the former Research Director for Longhaus he undertook the first in depth research into the implications of cloud computing and other “as-a-Service” ICT offerings on the Australian and near shore markets. The 2010 report entitled, Defining cloud computing highlights provider gaps in the Australian ICT market, was widely reported in both the online ICT industry press and mainstream media.