Volume 8, Issue 12, December – 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Enterprise Architecture in Modern Business

Transformation
Fajrillah1*, Jam’an Amandi2, May Handri3, Junaidi Hasan 4, Juliani5
Program Studi Manajemen, Fakultas Ilmu Sosial dan Humaniora, Universitas IBBI
Medan, Sumatera Utara, Indonesia

Corresponding Author: - Fajrillah1*

Program Studi Manajemen, Fakultas Ilmu Sosial dan Humaniora, Universitas IBBI
Orcid ID: https://orcid.org/0000-0003-4569-9751

Abstract:- This document presents a comprehensive utilizing enterprise architecture systems, offering guidance,
overview of enterprise architecture tailored for the principles, and best practices (Chillingworth, 2023).
digital era. It explores the crucial role enterprise
architecture plays in the digital age, delves into the In order to remain competitive in the market,
challenge’s organizations encounter when formulating organizations need to embrace the digital landscape and
and executing a successful enterprise architecture, and undertake digital transformation. Digital transformation
suggests optimal approaches to address these challenges. involves the incorporation of digital technologies across all
In today's dynamic digital landscape, businesses aspects of business, resulting in substantial alterations to
confront unprecedented challenges as they strive to operational methods and the delivery of value to customers.
remain competitive and relevant in an ever-evolving Key technologies like cloud computing, big data, the
market. Enterprise architecture serves as a pivotal tool Internet of Things (IoT), artificial intelligence (AI), and
for companies seeking to navigate these challenges and blockchain are instrumental in steering this transformative
accomplish their strategic objectives. However, the process. To realize digital transformation, organizations can
process of developing and implementing an effective adopt strategies that encompass digital initiatives, instigate
enterprise architecture is intricate and challenging. To cultural shifts, prioritize customer-centric approaches, and
provide a holistic understanding of this critical theme, a foster innovation (Gartner, 2022). The Intel case study
diverse array of academic and business sources, illustrates the company's adaptation of its current enterprise
including case studies, empirical research, and expert architecture to enable digital transformation, yielding
opinions, is employed. The conclusion of the document positive outcomes. Intel pursued a strategic approach that
offers guidance for businesses aiming to establish and encompassed the formulation of a digital strategy, the
leverage effective enterprise architecture in the digital construction and implementation of a new architecture, and
age. the integration of this architecture into the organization's
operational framework. Each phase of the strategy was
Keywords:- Agile Mindset, Digital Transformation, executed through a systematic three-step process. As
Enterprise, IT. highlighted by Kaushik and Aeron, the results included
enhancements in decision-making, agility, innovation, and
I. INTRODUCTION customer satisfaction. Establishing a transparent enterprise
architecture and populating it with comprehensive data
In the contemporary digital landscape, enterprise instills the confidence to proactively navigate towards a
architecture takes on a critical role in effectively managing digitally transformed future (Kharade et al., 2017).
dynamic digital environments and facilitating business
evolution. The purpose of this study is to explore In the current dynamic and intricate landscape, change
enhancements to traditional enterprise architecture, aiming is marked by discontinuity, unpredictability, and a pace that
to improve its capacity to drive digital transformation and outstrips the ability to respond effectively. In the context of
prevent businesses from falling behind in a competitive this hypercompetitive environment, strategic positions that
market. Enterprise architecture serves as a blueprint that are defensible or resources that are valuable, scarce,
details how individuals, processes, and technologies can inimitable, and irreplaceable no longer guarantee a
collaboratively contribute to an organization's goals, vision, sustainable competitive advantage. The strategy in such an
and strategy. Its main objectives are to optimize IT environment revolves around cultivating a series of
alignment with business needs, ensure information temporary advantages through a semi-structured strategic
availability for decision-making, maintain operational process, facilitating dynamic strategic repositioning.
oversight, and establish a well-structured roadmap for the Competitive advantages are increasingly found in the
advancement of the enterprise IT infrastructure. Enterprise dynamic capacity to identify and capitalize on emerging
architecture models describe strategies for building and opportunities, coupled with the ability to swiftly reconfigure
the organization in response to evolving circumstances. In

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Volume 8, Issue 12, December – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
less dynamic markets, this dynamic capability manifests as
"detailed analytical routines heavily reliant on existing Concerning models that encompass these elements,
knowledge," while high-velocity markets necessitate there is a tendency for the quality and comprehensiveness of
"simple experimental routines grounded in new knowledge information to decrease when moving from the upper to the
tailored for the situation." lower layers. Typically, the upper tiers of architecture
models contain more thorough and current information.
In the realm of global competition and collaboration, However, gathering and maintaining information about
the demand is for interconnected business ecosystems that specific IT services and applications at the lower levels can
seamlessly integrate specialized capabilities in a non-linear be challenging. The entire set of IT solutions and
fashion, eliminating constraints of time and distance. applications utilized by a company to support its functions
Simultaneously, the impact of information technology is and operations is commonly referred to as enterprise IT (E-
profound for both organizations and society on a grand IT). Sometimes, this segment is labeled as the Enterprise
scale: unparalleled computing power, boundless virtual Information System (EIS) and may involve diverse ERP
space, and pervasive connectivity offer vast potential for components [5]. Furthermore, the integration of smart and
enhancing enterprise efficiency, increasing adaptability, and connected products introduces a surge in data at the lower
fostering entirely new business models. To navigate the level, facilitated by Cyber-Physical Systems (CPS) and the
substantial complexity arising from the integration of Internet of Things (IoT). CPS and IoT generate data through
business and information technology, Enterprise numerous communicating entities, typically IT components
Architecture (EA) is proposed as a discipline. Its role is to embedded in products, denoted as product IT (P-IT).
ensure a cohesive structure, unveil the underlying Notably, companies in manufacturing and sectors where IT
organizational systems, and facilitate adaptability to change. components play a significant role in product value creation
are discovering numerous opportunities arising from the
While enterprise architecture has been recommended seamless, real-time integration of physical and IT systems.
for overseeing enterprise transformation, it has been Analyzing enterprise architecture in real-time using data
observed that many EA frameworks lack the necessary from these sources has historically been challenging due to
modeling and analysis capabilities to support adaptation in limitations in IT capabilities (constraints on data collection
rapidly changing environments. Traditionally, enterprise volume, variety, and speed) and the prevailing perception
architecture has emphasized the standardization and that P-IT and EA are distinct entities. While advancements
integration of processes, rather than prioritizing continuous in big data address the first challenge [4], the second
adaptation to the evolving landscapes of business, challenge necessitates finding integrated approaches to
information, social dynamics, and technology. manage E-IT and P-IT, encompassing both managerial and
operational considerations. Despite significant research in
In the contemporary business landscape, characterized the fields of EA and various P-IT variants in the past decade,
by dynamic changes and the swift evolution of information there has been limited effort to integrate them, i.e.,
technology (IT) capabilities, along with the emergence of incorporate P-IT into Enterprise Architecture Management
phenomena like the Internet of Things (IoT), cyber-physical (EAM) considerations. Similar gaps are evident in enterprise
systems (CPS), machine learning, and self-organizing modeling techniques used to represent different facets of EA
systems, enterprises are faced with both new opportunities and support EAM. Consequently, it is evident in industrial
and challenges. This dynamic environment offers enterprises practice that digital transformation can manifest in diverse
fresh avenues to structure their business models, practices, forms and present a range of challenges. Numerous
processes, customer communication, service delivery, instances exist of successful new startups that have
product development, and more. These organizational shifts effectively embraced the wave of digitalization.
are frequently deliberated in the context of concepts such as
digital transformation (DT) and enterprise digitalization. In a Conversely, there is evidence indicating that
broad sense, as articulated by Kotler, P., Kartajaya, H., & conventional enterprises with well-established IT
Setiawan, I. (2019), digital transformation refers to the architectures encounter greater difficulty in embracing and
transition from the conventional (often physical) creation harnessing digitalization to propel their business forward in
and delivery of customer value, along with the associated the present era. Further insights are required to better
operational procedures, to the extensive utilization of digital understand which methods and approaches can effectively
technologies that enhance or substitute traditional products underpin the practical implementation of digital
with intelligent, interconnected products. Despite the new transformation in various industries.
opportunities that companies may discover through this
transformation, they also encounter challenges. Digital II. RESEARCH METHODS
transformation can impact various facets of a company,
including organizational structure, business processes, The systematic literature review (SLR) undertaken for
information systems, and infrastructure, collectively this research followed the methodology commonly
constituting an Enterprise Architecture (EA). EA employed in information systems (IS) literature reviews. A
management, as a discipline, aims to ensure the harmonious four-phase approach was implemented to differentiate the
alignment among these aspects by adopting a body of knowledge pertinent to this review from other
comprehensive perspective that encompasses the entirety of literature not aligned with the analysis's purpose. The
EA. scientific literature search in this study aimed to retrieve

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ISSN No:-2456-2165
credible academic peer-reviewed content from reputable ensure the coherent integration of these intricate
sources of scientific knowledge, utilizing databases and relationships, yielding improved or novel service
scientific literature search engines such as Scopus, capabilities.
SpringerLink, ScienceDirect, and IEEExplore. As part of the
literature, acknowledged publications from a substantial
community of practitioners in the Enterprise Architecture
(EA) field were included in this study. Consequently, The
Open Group's EA standards were considered a pertinent
knowledge source in line with the project's interests and
objectives. The inclusion of MIS Quarterly Executive,
recognized for its practice-based research and the highest
number of recent publications in the context of digital
transformation, contributed valuable insights to this SLR
knowledge pool. The preliminary findings addressing RQ1
identified specific constructs that warrant consideration in
the traditional approach to conducting EA efforts in the
context of digital transformation:
Gambar 1: Digital Transformation and Enterprise
Architecture
III. RESULTS AND DISCUSSION
Nonetheless, there exists an indistinct differentiation
A. Enterprise Architecture for Digital Transformation
between digital business transformation and digital
According to Syam & Muhammad (2023), "Digital
transformation, given that both concepts involve significant
transformation can encompass a spectrum, ranging from IT
alterations to business models through the utilization and
modernization (e.g., cloud computing) and digital
leveraging of digital technologies. Consequently, in this
optimization to the innovation of novel digital business
research, these terms are collectively considered as digital
models." In essence, it refers to initiatives or activities
transformation (DT). The inclusive interpretation
leveraging emerging digital technologies for significant
encompasses both within the context of the entire business
enhancements in business processes, impacting various
or organization, encapsulating the assimilation of
facets of customers' lives. On the other hand, digital
digitalization projects aimed at transforming internal
business transformation is described as "the utilization of
business processes and strategies. Above all, it emphasizes
digital technologies and associated capabilities to create
the enterprise's growth and impactful outreach facilitated by
robust new digital business models." This involves
digital capabilities.
employing technology strategically to orchestrate changes
and adjustments to an organization's business processes and
B. Agility and Architectural Evolution
strategies, aligning them with evolving customer needs and
Existing Enterprise Architecture (EA) mechanisms are
dynamic market demands. Fauziyyah (2022) characterizes
designed to chart intricate structures within organizations
digitalization as "the application of digital technologies to
presumed to operate at a uniform pace. However, the
revolutionize business models, generating new revenue
reviewed study underscores the significance of agility with
streams and value-creating opportunities; it entails the shift
respect to multi-level velocity across the architecture,
toward digital business." In practice, digitalization explores
essential for the successful execution of digital
how digital technologies enable the execution of tasks
transformation initiatives. In contrast, EA adheres to a
traditionally associated with human activities in everyday
waterfall mechanism, while Digital Transformation favors
settings. Finally, digitization involves the conversion of
an agile approach (Wakil et al., 2022). Specifically, the
analog resources to digital format, such as the
lifecycle phases embraced by EA involve development-
transformation of physical documents from paper to a digital
maintenance documentation, whereas agile follows a
medium.
development-use-maintenance documentation sequence.
Notably, concepts like Minimum Viable Architecture and
As illustrated in Figure 1, the conceptual model depicts
Sacrifice Architecture advocate for experimentation,
the scope of the aforementioned terms within the
fostering a rapid cycle of ongoing innovation within
organizational context and their breadth in relation to
organizations and aligning with the fundamental business
Enterprise Architecture (EA). Adopting a bottom-up
agility principles inherent in digital transformation
perspective, digitalization is implemented at the enterprise's
endeavors. As a result, proposed enhancements and
lowest level, where activities like information digitalization
adjustments to current EA approaches include the
offer novel ways for the organization to access and share
formulation of effective adaptive operating models.
data across its business units. EA provides a systematic
Consequently, the expansion of such a model should
approach to delineate these technological mechanisms in
facilitate guided and incremental change across multiple
response to business requirements. Meanwhile, digitization
dimensions of an architecture without a predetermined end
initiatives focus on executing projects and utilizing
state, emphasizing the concept of an evolutionary
technology to automate, optimize, or modernize the
architecture.
company's business operations and processes. Consequently,
the foundational elements of architecture and solutions

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ISSN No:-2456-2165
In order to embrace agile and adaptable work supporting your critical business applications, you can take
methodologies, organizations undertaking digital preventive measures. Likewise, a comprehensive awareness
transformation initiatives must contemplate alterations in of your application portfolio landscape allows for more
roles and responsibilities across various business units. effective handling of urgent business support requests.
Implementing these changes necessitates consistency, Having all the necessary information at your disposal
considering systematic shifts in processes, technology, and (Sabitha et al., 2021) enables swift action and prevents
data. Grasping such interconnections poses a challenge, others from claiming potential savings.
particularly within the intricate design of Enterprise
Architecture (EA), where considerations such as culture and E. Core Contributor to Digital Transformation
social cohesion also demand attention. Digital In the realm of digital transformation, the role of the
transformation transcends conventional architectural enterprise architect (EA) holds significant importance. Both
principles, propelling organizations into novel operational organizational leaders and practitioners in enterprise
paradigms and, notably, fostering collaboration. EA architecture are likely to feel uneasy if the management of
methodologies need to assimilate the emerging digital enterprise architecture is not executed efficiently. A key
transformation-driven culture throughout the enterprise and contributing factor to the crucial role of enterprise
decipher the intricate relationships among actors, architecture in digital transformation is the growing
technologies, data, and business processes. emphasis on transparency and the alignment of business and
IT. The challenges of continuous transformation, essential
A crucial requirement for both Digital Transformation for organizational survival, become formidable without a
(DT) initiatives and Enterprise Architecture (EA) clear understanding of an organization's data, applications,
approaches is the seamless adoption of architecture. In the and business capabilities. EAs are expected to demonstrate
execution of DT projects, the EA approach needs to be that their primary focus extends beyond the development of
modular and cross-functional, incorporating distributed models and frameworks, encompassing the generation of
business processes that enhance interoperability within and business value and the enhancement of operational
between ecosystems. These specialized ecosystems function efficiency (Westmoreland, 2022).
as standalone, self-organizing systems that, when combined,
generate value. According to Tyoso (2016), "Modularity is Effectively prioritizing the identification of critical
about decomposing a system into loosely coupled parts," data objects, applications, and business capabilities that
with a system encompassing entities spanning human, drive the business is paramount in efficient enterprise
social, and technical realms. Consequently, implementing architecture. This information serves as the foundation for
digital transformation initiatives through a modularized constructing communication tools that stakeholders in both
architecture yields an enterprise that is not only flexible, the enterprise and IT can leverage to identify potential
adaptable, and agile but also resilient to change, all while improvements and address operational challenges.
sustaining the delivery of value to customers. Moreover, EAs bear the responsibility of proactively
recognizing and resolving operational challenges that may
C. The Importance of Business Data divert attention from strategic initiatives (Algabri et al.,
There's a popular saying that "data is the new oil," 2021). This entails staying abreast of the latest technological
underscoring the importance of understanding the data developments and taking a proactive stance in anticipating
driving your organization. Once you've identified the most potential issues before they manifest. In essence, the EA
critical applications, addressed any pressing issues, and function is indispensable within the framework of digital
enhanced business processes, the focus shifts to the data transformation. EAs are tasked with prioritizing
aspect. This typically involves delving into two distinct transparency and alignment between business and
levels of detail concurrently. Emphasizing the significance information technology while showcasing their value to the
of meeting stakeholders' needs is paramount. To avoid organization through the enhancement of operational
falling into the ivory tower fallacy, it is crucial to prioritize efficiency and the delivery of business value. By adeptly
power generation, ensuring the availability of high-quality managing enterprise architecture and addressing operational
data, and delivering tangible business value. challenges, EAs play a pivotal role in helping organizations
navigate the complexities of continuous transformation,
D. Removal of Operational Interference ensuring their resilience in the rapidly evolving digital
As an enterprise architect, ongoing operational issues landscape (Babar & Yu, 2015).
can divert your attention from strategic projects. Managing
urgent requests for business support, dealing with operating The primary essential factor is the capacity for
system updates, unexpected technology crises, or effective execution. The conventional approach of
participating in cost reduction initiatives may make it constructing an enterprise model in isolation is no longer
challenging to maintain a broader perspective. To avoid sufficient in the rapidly evolving business landscape of
getting caught in this constant cycle (Rosado, 2019), it's today. Contemporary enterprise architects must evaluate
crucial to proactively identify and address these issues existing systems and processes while foreseeing
before they escalate into disruptive challenges. For instance, forthcoming challenges and opportunities. They need the
changes to operating systems or databases might lead to capability to comprehend, organize, and analyze information
disruptions if the potential impact on applications is unclear. that aids in troubleshooting the future enterprise landscape.
However, with a clear understanding of the key technologies Forward-thinking enterprise architects proactively suggest

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ISSN No:-2456-2165
and explore feasible solutions while maintaining an IV. CONCLUSIONS
approachable and supportive demeanor, readily providing
additional assistance until a resolution is achieved (Pattij et Enterprise architecture has been utilized by numerous
al., 2022). To effectively address the demands of digital businesses over the years, either to rejuvenate existing
transformation, a modern enterprise architect should architectures or construct compelling new business
embody five crucial characteristics: structures, leveraging IT infrastructure as a pivotal element
 Technological Proficiency: In the era of digitalization, to establish a business environment that provides value to
enterprise architects must possess a thorough clients and differentiates them in a competitive market. In
understanding of emerging technologies and their the contemporary digital era, the adoption of a new
potential impacts on organizations. Adeptness in enterprise architecture becomes imperative to meet the
technology is vital for enterprise architects, as they need requisites of digital transformation, given the escalating
to proactively acquire digital skills crucial for achieving internet usage spurred by a proliferation of disruptive
digital transformation. Mastery in areas such as APIs, technologies. While much of the literature advocates for
microservices, DevOps practices, and emerging database adaptive enterprise architectures fostering digital
technologies is essential. Additionally, modern enterprise transformation, the specific adaptive capabilities inherent in
architects play a pivotal role in assessing whether modern enterprise architectures are not extensively
proposed technologies or services will positively or elaborated in this paper. Any organization operating in the
negatively affect the organization. digital age should contemplate the implementation of a
 Data-Driven Decision-Making: As per Bjorn Goerke's digital enterprise architecture, facilitating the integration of
prediction, "Data will become a strategic asset for legacy and cutting-edge technologies and propelling the
adaptive companies," emphasizing that analytics will organization towards digital transformation.
enable organizations to discern signals from distractions
and focus on achieving business ROI. In today's business The initial findings of this research highlight that the
landscape, corporate architects are mandated to base all onset of the digital transformation era has introduced a fresh
their decisions on data. Organizations can enhance their set of challenges to prevailing enterprise architecture
competitive advantage by prioritizing impactful tasks practices. Key concepts such as architectural agility and
and making strategic investments when decisions are evolution, architectural modularity, social alignment,
rooted in data, guiding thoughtful deliberations corporate culture, and context-sensitive value creation
(Sonavane, 2021). models form a robust foundation for reconfiguring existing
 Evangelism: An evangelistic enterprise architect is enterprise architecture approaches, paving the way for a
someone passionate about newly released software or clear trajectory toward effective digital transformation.
services, effectively communicating the benefits of these Ongoing research endeavors involve the advanced
innovations to their team. They select a crucial subject, exploration of enterprise architecture frameworks, methods,
such as cloud migration, DevOps, or microservices, and and techniques tailored for digital transformation
conduct thorough research to become a compelling (addressing RQ2) and their applicability across diverse
advocate for the cause. Successful enterprise architects industries, including manufacturing (addressing RQ3).
recognize the need for a mindset shift to thrive in digital Future efforts will focus on adapting conventional enterprise
transformation. While different businesses may have architecture practices to align with the requirements of
varying criteria for the ideal modern Vanguard enterprise digital services, covering aspects such as (1) customer
architect, successful organizations ensure that EAs are journey and customer experience; (2) architecture agility
not confined to the IT department and have a conducive and evolution; (3) architecture modularity (interoperability);
working environment close to the corporate office. and (4) social alignment and enterprise culture.
Collaborating with CXOs, enterprise architects can
proactively raise the visibility of the EA department and ACKNOWLEDGMENT
provide reports that aid in designing and executing
technical initiatives, ultimately generating business value We express our gratitude to the Rector of IBBI
from technology (Naikwadi, 2021). University, Vice Rector I for Academic Affairs, the Dean of
 Agile Mindset: Agility is a crucial trait for high- the Faculty of Social Sciences and Humanities (FISH), the
performing enterprise architects. Modern EAs are well- Institute for Research and Community Service (LPPM) of
versed in agile development methodologies like Scrum IBBI University, colleagues at IBBI University, as well as
and Kanban, utilizing them to expedite software our spouses and children for their unwavering support in our
deployment timelines and achieve faster results. Shifting commitment to fulfilling the tridharma of higher education.
from an "Ivory Tower" mindset to a project manager
mindset allows EAs to strategically map out systems,
ensuring high project delivery rates, rapid results, and
the production of reliable business-critical data while
upholding essential requirements such as security, data
privacy, and compliance.

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ISSN No:-2456-2165
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