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Dual Capabili y EAM o Agili y in Business Capabili y Building : A Sys ems Theo e ical
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© 2021 SCITEPRESS
Accep ed e sion (Final d a )
Pou anen, Jouko; Pulkkinen, Mi ja
Pou anen, J., & Pulkkinen, M. (2021). Dual Capabili y EAM o Agili y in Business Capabili y
Building : A Sys ems Theo e ical View. In J. Filipe, M. Smialek, A. B odsky, & S. Hammoudi
(Eds.), ICEIS 2021 : P oceedings o he 23 d In e na ional Con e ence on En e p ise In o ma ion
Sys ems. Volume 2 (pp. 726-734). SCITEPRESS Science And Technology Publica ions.
h ps://doi.o g/10.5220/0010455007260734
2021
Dual capabili y EAM o agili y in business capabili y building:
A sys ems heo e ical iew
Jouko Pou anen, Mi ja Pulkkinen
a
Facul y o In o ma ion Technology, Uni e si y o Jy askyla, Finland
jouko. .pou anen@s uden .jyu. i, mi ja.pulkkinen@jyu. i
Keywo ds: En e p ise A chi ec u e Managemen ; Complex Adap i e Sys ems; Business Agili y, dual capabili y EAM
Abs ac : Th ough wo cases o IT-enabled business capabili y building in la ge en e p ises, his pape elucida es how
he sys ems heo y app oach can explain he en e p ise a chi ec u e managemen (EAM) challenge o suppo
business agili y. The obse a ion in bo h o hese cases is ha a legacy EAM app oach does no adap o a
business de elopmen scena io in ol ing agili y. This leads o a s udy o he na u e o he challenges in EAM
when enabling s a egic business mo es in ol ing new echnologies, a he business uni le el. Fo he ype
o p ojec s as in hese cases, we do no ind a i ing pa adigm in he EAM li e a u e. Sugges ed solu ions a e
IT bimodali y, o Two Speed IT. Howe e , i s combina ion wi h EAM is sca ce in ea lie esea ch. To be able
o p o ide guiding ideas o he u he de elopmen o a dual capabili y EAM app oach, wi h an e iden need,
we de elop a sys ems heo e ical s a ing poin o examine he cases. Complex Adap i e Sys em (CAS)
cha ac e is ics appea o gi e he necessa y explana ions o build on. Suppo ed by his heo e ical
de elopmen , he s udy esul s in p inciples o a dual capabili y EAM, o agile s a egic business capabili y
building in ol ing en e p ise e-s uc u ing.
1. INTRODUCTION
As en e p ises see dazzling business oppo uni ies
wi h new echnologies, hey ace go e nance
challenges in he a eas o e.g. isk and secu i y
managemen . IT Go e nance as he b oadly accep ed,
alue based app oach (Op’ Land e al. 2008), wi h
En e p ise A chi ec u e Managemen (EAM) as a
ool, poin s o he need o conside he alue o any IT
in es men o he en e p ise, as well as di ec and
moni o he planning and implemen a ion o he
induced business change. This equi es a balanced
de elopmen a he co po a e le el, as opposed o
indi idual business uni s de eloping hei speci ic
solu ions and unning he isk o pa ial op imiza ion,
po en ially e en coun e p oduc i e o he co po a e
goals (Ahlemann e al. 2012, Pe e son 2004). The
EAM p ocess, suppo ing he goal o ci cumspec
decision making, joins he echnological iewpoin o
he business goals. I a no el IT solu ion needs
in eg a ion o he exis ing a chi ec u es, engaging he
co po a e IT unc ion is necessa y, and hei
esponsibili y con inues wi h he planning and
execu ing o he ope a ion, suppo and main enance
a
h ps://o cid.o g/0000-0002-5313-8666
o he new sys em. Howe e , he co po a e IT and
EAM aiming a he alignmen o business and IT
de elopmen s wi h an a chi ec u al app oach
(Ahlemann e al. 2012) can be ques ioned as a
“legacy” app oach, wi h “bu eauc a ic” go e nance
models hampe ing agile de elopmen bo h o he
business and o IT (D ews e al. 2017). The e o e,
EAM p ac ices migh need a e ision o cases o
agile IT-d i en business uni le el de elopmen ,
enabling he swi seizing o new digi al business
oppo uni ies. In hei co e ing e iew o
o ganiza ional (business and IT) agili y, Tallon e al.
(2019) gi e a ho ough unde s anding o he
complexi y o he p oblem. While capabili y building
and he dynamic capabili ies domina e as heo e ical
s ance, wi h some, he ques ion o a chi ec u al
modula i y (Tiwana and Konsynski 2010) and
decision igh s Tiwana and Kim (2015) poin o
simila obse a ions as a e igge ing ou in e es in
his s udy, especially he co-loca ion o knowledge
and he decision igh s poin ed ou in Tiwana and Kim
(2015).
Resea ch has e idenced he IT co po a e unc ions
ans o ming o Bi-modal o wo-speed IT (Ha ke e
al. 2017; Ho lach e al, 2016). In academia, he e m
ambidex e i y has been coined o he dual IT
unc ion capabili y (Lee e al. 2015). An IT uni wi h
his double app oach se es he business no only
wi h agile de elopmen , bu also wi h new cul u e-
changing app oaches, as De Ops, u he joined wi h
he business de elope s o BizDe Ops (G uhn e al.
2015). The duali y means also ensu ing sus ained
suppo o balanced long- e m planning and
go e nance wi h isk managemen a a ious le els.
A ‘ as IT’, howe e , is a solu ion only whe e he
de elopmen s a e conduc ed in-house, wi h he
en e p ise IT esou ces.
In ou case s udy, we obse e he need o a
business agili y, whe e IT solu ions new o bo h he
business and he IT in he en e p ises a e a s a egic
choice as new business capabili y enable s. Bo h
cases, howe e , see a co po a e s a egy equi ing an
assu ed and well managed EA as well. As no all o
he de elopmen esou ce is coming om in-house, a
e-o ganiza ion o he IT unc ion alone is no sol ing
ou case p oblem. The mo e pe inen ques ion is,
how o enable simila , agile s a egic mo es in u u e,
as he p esen EAM app oach, in hese en e p ises and
in gene al, appea s no o ackle he si ua ion. The
ques ion o his s udy is:
RQ How can EAM suppo business capabili y
de elopmen in an agile manne , when i in ol es he
building o a new sys em and a new uni , changing he
en e p ise s uc u e?
To unde s and he manage ial challenge, on bo h
he business and he IT side, and o p opose a solu ion
o hese cases, we look a po en ial heo e ical
explana ions. Al eady exis ing solu ions a e sc eened
in a li e a u e e iew o En e p ise A chi ec u e
Managemen and Bimodal o Two Speed IT.
Dealing wi h a complex se ing wi h business
sys ems embedded in an en i onmen o an en e p ise
as a sys em o sys ems, we p opose a sys ems
heo e ic explana ion o he si ua ion a hand in
Sec ion 2, and discuss he EAM ole. In sec ion 3, we
desc ibe wo cases o new echnology induced
business de elopmen , and p esen an analysis in
Sec ion 4. We e lec he analysis o EAM in sec ion
5. As a esul , we p opose guidelines o a business
agili y enabling, dual capabili y EAM in Sec ion 6.
1.1 Ea lie S udies
Fo he li e a u e e iew, conduc ed in ea ly 2019,
we i s checked bo h he IEEE Xplo e po al and
Google Schola and used he sea ch s ings
i)“’Bimodal IT’ AND ‘En e p ise A chi ec u e
Managemen ’”, and ii)“’Two Speed IT’ AND
‘En e p ise A chi ec u e Managemen ’”. As
IEEEXplo e did no yield esul s, Google Schola
a ains b oade co e age o his a he no el a ea. A
u he gain is o ind non-published schola ly wo k
such as heses. The esul s wi h he wo sea ch s ings
espec i ely yielded eigh and nine hi s, and a e
dele ing o e laps in he wo se s, plus excluding wo k
no w i en in English, he ollowing i ems emain:
• Th ee MSc Theses: (Boekhol z 2017; Schmid
2018; Na alucci & Manzo i 2016), he las one wi h
a gene ic s ance on digi aliza ion.
• A disse a ion (Ande sen 2016), ocusing on
he echnology dimension o EA,
• Fou schola ly pee - e iewed a icles (D ews
e al. 2017; Fo mann e al. 2019; Kelle e al. 2018;
Legne e al. 2017).
• Fu he h ee a icles, published o ano he
ield o esea ch, appea ed o be no in he scope.
The sea ch was no limi ed wi h ime o
publica ion meaning ha his opic only has eme ged.
Th ee empi ical s udies, (D ews e al. 2017; Kelle e
al. 2018; Legne e al. 2017) p esen elabo a ions o
he p oblem a ea. Howe e , i s o hem, as also he
MSc heses, p esen digi al-only business cases in he
sec o in he on -line o digi aliza ion: banking and
inancial. Ano he pape (Fo mann e al. 2019)
s udies he de elopmen s o e ime wi hin an IT uni
in a digi aliza ion case, and Kelle e al. (2018) collec
gene al p ac i ione knowledge om IT-depa men s.
Ou s udy, on i s pa , in es iga es wo cases whe e a
digi al ool o a new se ice is only a pa o he
business po olio in a non-digi al business, and we
go beyond he s udies o he IT depa men /IT
unc ion. The echnologies (AI and IoT) a e no el o
he en e p ises, bo h p o iling as la ecome
digi alise s (Kohli e al. 2011). Fo bo h, he p ojec
means new business capabili y de elopmen .
A he same ime, due o he de elopmen p ojec ,
ou cases p esen en e p ises wi h a challenge in he
IT go e nance de-/cen aliza ion ques ion (Pe e son
2004), and also de ining he ole o hei EAM eam
as pa o he go e nance. The in ol emen o he IT
unc ion du ing de elopmen p ojec s low, hus no
sugges ing ha a dual capabili y o mul imodal IT
unc ion would sol e all o he p oblem. Fu he , he
solu ions a e no buil on sys ems al eady ope a ed on,
so De Ops, o BizDe Ops al hough in e es ing
app oaches, a e no a i ing pa adigm.
2. KEY CONCEPTS
2.1 En e p ises as Sys ems o
Sys ems
Beyond he p ac ical solu ions, as in oducing agili y
o he o ganiza ion o he IT unc ion (e.g. Ha ke e
al. 2017), and me hods o agile de elopmen , also
ex ended o EA (e.g. D ews e al. 2017), mo e
undamen al ques ions o he p oblem ield o EAM
ha e been p esen ed (Ab aham e al. 2013; Buckl e
al. 2009). To sol e he p oblem o he con o e sial
oles o EA o EA managemen : An enable o agili y
on one hand, howe e , on he o he , ques ioned as a
‘bu eauc a ic’ and he e o e slow app oach, we s udy
he unde lying con o e sy by examining he sys ems
na u e o en e p ises. The cases we s udy show he
need o an a chi ec u al go e nance o comply wi h
he ITG and co po a e go e nance, bu on he o he
hand, also he u gency o apidly espond o he
business en i onmen change in ol ing echnology.
The la e is as compelling om he business side by
co po a e go e nance, o sus ain and imp o e he
alue c ea ion in he en e p ise.
Sys ems heo ies gi e a widely emb aced e en
hough no ully u ilized heo e ical scheme,
unde lying he EA ield, as a ecen e iew inds
(Niemi e al. 2018). Figu e 1 p esen s a simple ske ch
o he in e ac ing sys ems in a sys em o sys ems, as
an en e p ise can be analy ically seen. We lean on he
main idea in he Gene al Sys ems Theo y (GST) and
Li ing Sys ems Theo y (LST), bo h p oposing
hie a chical le els o sys ems complexi y (Ab aham
e al. 2013; Nu mi e al. 2018). Wi hin he en e p ise,
comp ising a la ge complex, adap i e sys em (CAS)
(Janssen & Kuk 2016), he e a e bo h ully
manageable, p edic able echnical sub-sys ems, some
mo e complex socio- echnical sub-sys ems, as well as
adap i e sub-sys ems (whe e he decision eedom is
gi en by he sys em-o -sys ems managemen sys em,
con olling he sys ems/sub-sys ems wi hin he
en e p ise). A CAS is capable o di ec ing and e-
di ec ing hei ac ions and esou ces a hei disposal,
acco ding o he signals hey pe cei e om hei
en i onmen . The new business capabili y ( ha also
can be pe cei ed a new “socio- echnical” sys em),
o ms a sub-sub-sys em unde he auspices o a sub-
CAS. I s owne ship is no mally wi h a business uni
( he sub-CAS), he whole en e p ise hus seen as a
CAS-o -CASs. In a simila ein, Ab aham e al. (2013)
ha e in oduced en e p ises as “hie a chical, mul i-
le el sys ems”, howe e , lea ing he adap i eness
aspec o u he s udy.
Capabili y as an “abili y o execu e a de ined and
epea able pa e n o ac i i ies” o p oduce a a ge ed
ou come in a gi en en i onmen , has been ound a
p ac icable uni o analysing he business
a chi ec u e as pa o EA (Simon e al. 2014). A
business capabili y en ails he espec i e p ocesses,
en i ies, o ganiza ions, people, cul u e, and esou ces
needed o success ully pe o m an ac i i y o i s
a ge ed business ou come. A business capabili y can
be dependen on IT (IT-enabled), o imp o ed by IT
(IT-enhanced).
Figu e 2: En e p ise as a collec ion o mul iple, mul i-le el sys ems a di e en le els o complexi y
The concep o capabili y, howe e , highligh s he
need o an “ensemble o esou ces” o building a
‘socio- echnical sys em’ om he ‘ echnical sys em’
wi h he business esou ces be o e i can pe o m.
Whe e he e a e esou ces, he e is also
owne ship, managemen and decision making powe .
The decision making le els (Pulkkinen 2006;
Pulkkinen & Hi onen 2005) as well as he sys ems
heo ies analy ically p esen ing hem (Ab aham e al.
2013); ha e been a subjec o s udy in EAM. We see
ha an e olu i e, explo a i e EAM ha allows o
pilo ing solu ions a he business uni le el (a.k.a EA
segmen , o domain; see B uls e al. 2010; Pulkkinen
2006) is a ques ion o an ins ance o sys ems
e olu ion, inducing he e-s uc u ing o he (sub-)
sys ems wi hin he en e p ise.
Impo an ly, he uni s o he en e p ise use hei
domain knowledge (Tiwana and Kim 2015), bo h in
cap u ing and in e p e ing signals u ging o
esponse om hei en i onmen in en i onmen al
scan (Tallon e al. 2019), in oducing he sel -
o ganising ai o CAS. As essen ial is also he
in e nal domain knowledge, also o he exis ing IT
esou ces, managed wi h EA. This is needed o he
planning and enac ing he change in he sys ems o
espond, e en p oac i ely, o he en i onmen
p essu es, as he eme gence ai in CAS: Adap ing
(sub)sys ems o he business en i onmen changes.
2.2 En e p ise A chi ec u e
Managemen
Re lec ing on he heo e ical ame in Figu e 1,
he ole o EAM is o a ain awa eness, assu ance and
alignmen , ac oss all he sys ems, as well as he need
o analy ical ools and planning aid (Ahlemann e al.
2012, Douce e al. 2009; Aie e al. 2009). This is
needed o he IT ( echnical sys ems), oge he wi h
he business managemen and go e nance (Ahlemann
e al. 2012). The de elopmen o new capabili ies
equi es awa eness o he exis ing IT (and o he )
esou ces and a chi ec u es, as well as he alignmen
o goals and esou ces. Analysis o bo h business and
IT a chi ec u es, and suppo o planning as he EA
echniques does, can suppo agili y in capabili y
building and e-building (Pulkkinen & Hi onen
2005). Me hods o agile EA de elopmen (Boekhol z
2017, Ben e e al. 2012) howe e , do no guide in
de eloping a manage ial sys em o o e sigh and
con ol (EAM).
The EAM as a ool o ITG o bo h exploi a ion
and explo a ion should possess mechanisms ha
allow i o pu esou ces in conduc ing he
en i onmen al scan and subsequen ly, o plan and
implemen change as needed, howe e , backed up
wi h he co po a e EA p inciples o ensu e
compliance, in e ope abili y and balance. The EAM
is o be equipped o i s ly, enabling he a chi ec u al
lexibili y needed, secondly, he e-s uc u ing o he
sys ems, e en e lec ing o en e p ise s uc u es i
needed a e new sys em implemen a ion.
3. CASE STUDY
Ou wo cases aced a common p oblem, al hough
undamen ally di e en : “Alpha” is a la ge public
agency, “Be a” a p i a e co po a ion. A s a egic
choice in bo h is, o de elop a new business capabili y
wi h a echnology new o he en e p ise, he co po a e
IT and he business uni s. The s a egic in en en ails
a as mo e. Alpha is building a i ual cus ome
se ice assis an le e aging AI, and aims a a ‘ i s
mo e ’ ad an age wi h his echnology. Be a
implemen s a new business se ice concep applying
IoT, o suppo he use s o hei physical echnology-
in ensi e p oduc cus ome s.
Bo h o ganiza ions ha e a co po a e IT
depa men , wi h an associa ed EAM unc ion o
guide en e p ise IT de elopmen s. In bo h cases alike,
a business unc ion speci ic goal, sensed a he le el
o he unc ion managemen , igge s a new business
capabili y de elopmen . The business unc ion le el
echnology scan (al hough no o icially assigned o
do his!) in bo h cases spo ed new echnology
enable s (AI, IoT) on he ma ke , no cu en ly used
in hei o ganiza ion. Fo a apid s a egic mo e,
building a new IT capabili y wi hin hei co po a e IT
uni s equi ed o AI/IoT would ake oo much ime
and is he e o e ejec ed in bo h cases. The
ans o ming o he IT uni o bimodali y would no
sol e he p oblem. The EAM, on i s pa , is o ensu e
compliance and isk managemen as he new
echnological capabili y enable s a e in eg a ed in o
he en e p ise IT a chi ec u es.
Table 1 The da a o he quali a i e analysis
Da a sou ces a ailable
Case
Alpha
Case Be a
S a egy and plans
Yes
Yes
O ganiza ional
guidelines & s anda ds
(documen s)
5
4
P ojec plan
Yes
Yes
Numbe o design
wo kshops (1-2 hou s
each)
21
18
Numbe o wo kshop
pa icipan s om
o ganiza ion
5-6
2-11

Resea ch me hod. The esea ch da a (see Table
1 abo e) used o he quali a i e con en analysis
e e s o he wo k documen s, in e iews and
wo kshops du ing case p ojec s. The i s au ho was
obse ing he cases du ing he p ojec li e ime: Alpha
6 mon hs, Be a 12 mon hs. The wo kshop pa icipan s
we e business p ocess owne s, and membe s o LoBs,
business de elopmen and IT depa men s.
4. CASE ANALYSIS
As seen in Table 2, bo h cases examined in ol e he
implemen a ion o he o ganiza ion s a egy.
Howe e , he scanning and sensing ha igge s he
de elopmen comes om a lowe echelon. The
u gency elemen in bo h poin s o business agili y.
Ini ia i e owne ship: The lead in he explo a i e
de elopmen is wi h he line o business (LoB). They
ha e he equi ed knowledge o he cus ome needs
and a ision o he new se ice, i.e. he unde s anding
wha he echnology can do o he business. The LoB
is also esponsible o he end esul : In case Alpha, an
imp o ed cus ome se ice, and o Be a, a new
e enue c ea ing a e -sales se ice. The LoB as a
decision uni needs o ha e he necessa y decision
eedom o he e olu ion o he sys ems i has
owne ship on.
Poin ing o a business capabili y pe spec i e, i
was c ucial o app oach he de elopmen om he
cus ome and p ocess pe spec i e, i.e. including all
business capabili y elemen s, iden i ying new
p ocesses and oles, inally c ea ing an eme ging
socio- echnical sys em. Au oma ed se ice equi es a
new le el o unde s anding he cus ome needs. The
AI componen s and con en managemen equi e new
asks, skills and ooling. Especially, o he AI
solu ion, managing he co pus and he g ound u h
aining and es ing we e no el addi ions o Alpha
capabili ies.
Role o EA: The alue o quali y EA a e ac s is
e iden in p o iding he con ex and he new solu ion
con en , as well as unde s anding he e ec on
exis ing p ocesses. In case Alpha, EA p o ided he
necessa y unde s anding o he con ex o he pilo ed
solu ion and was he basis o he design o he o-be
a chi ec u e. In case Be a, i p o ided he in o ma ion
Table 2 The Case Analysis: The Eme ging o a New Capabili y as a Sub-Subsys em
Case a ibu e
Alpha
Be a
1
Business d i e
S a egy deploymen , cus ome
se ice imp o emen
S a egy deploymen , g ow h
gene a ion
2
Capabili y de eloped
New AI-based i ual assis an
se ice channel o cus ome s
New business concep : A e -sales
p oduc se ice wi h IoT suppo
3
Business goals
Se ice quali y imp o emen
Cos sa ings
Fi s agency o deploy AI
New e enue om no el se ice
business
Cus ome commi men o p oduc
4
Key echnological goal o
de elop en e p ise IT
AI adop ion in a pilo se ice a ea o
u he deploymen
IoT pla o m deploymen
Senso da a analy ics adop ion
5
Ini ia i e and p ojec
owne ship
Cus ome Se ice De elopmen Uni
– o be handed o e o cus ome
channel managemen
Business De elopmen Uni – o be
handed o e o a new uni
6
No el y o he solu ion
High (no p io AI implemen a ions)
High (no p io implemen a ions o
IoT / SDA)
7
Type o solu ion
Pilo implemen a ion
P oduc ion quali y
Table 3 The ole o EAM p io o he p ojec
Role o EAM
Alpha
Be a
Focus o he EAM eam
Business sys ems,
Adminis a i e sys ems
Adminis a i e sys ems
EAM ole in he p ojec
In o med
Consul ed
Pe cei ed ole o EAM
Slow, no alue
Slow, limi ed alue
EAM ole in pos -
implemen a ion phase
S anda diza ion o he solu ion
C ea ed EA knowledge e en ion
S anda diza ion o he solu ion
C ea ed EA knowledge e en ion
Case a ibu e
Alpha
Be a
Business d i e
S a egy deploymen , cus ome
se ice imp o emen
S a egy deploymen , g ow h
gene a ion
Capabili y de eloped
New se ice channel o cus ome
se ice
New business concep (A e -sales
p oduc suppo se ice)
o he in eg a ion equi emen s and da a models. In
bo h cases, he solu ion a chi ec u e will e ol e o be
pa o he new business and IT a chi ec u es.
Role o EAM ini ially (depic ed in Table 3)
e ol es o enabling he echnology ans e o di use
he solu ion in he o ganiza ion, suppo ing o
gene alize i o o he use cases. The legacy ole o
he EAM eam, a ‘ egula o y’ one as pe cei ed in
bo h cases in he beginning, is he e o e challenged.
EAM is ex ended o a suppo i e ole o business and
sys ems e olu ion. T adi ionally, EAM in gene al has
a ole o con ol and ensu e con o mi y wi h
s anda ds. Fo as p og ess, sou cing mus be
ex ended beyond own esou ces. In he case o no el
echnology, an o ganiza ion migh no ha e he
equisi e IT knowledge, nei he ime o de elop i .
Sou cing managemen can be suppo ed by EAM as
well. Finally, inco po a ing he esul s and he new
knowledge o he EA o u he use is, howe e ,
essen ial.
In agile business de elopmen si ua ions, EA is a
ool o an agile bu balanced managemen , wi h
sound bu lexible, dual capabili y EAM. The EAM
may ha e a consul a i e ole du ing he de elopmen ,
o ake on only a e wa ds. A e he p ojec , he EAM
eam e ains a chi ec u al knowledge and manages
he u he deploymen o he de eloped solu ions.
Bo h cases highligh he ask o EAM o main ain and
upda e he EA ela ed in o ma ion (as an example o
“ca og aphy”, [32]) o u he de elopmen s. F om
a CAS poin o iew, he EAM suppo s he
eme gence o he no el socio- echnical sys em,
isola ed o de elopmen ime and a e wa ds being
adjus ed in o he new EA baseline, and a new
o ganiza ion s uc u e eme ging wi h he
de elopmen . We discuss his nex .
5. DISCUSSION
En e p ise A chi ec u e and EA managemen ela e o
he sys ems na u e o en e p ises (Ab aham e al.
2013). Fo EAM, ea lie s udies sugges explaining
models (Ab aham e al. 2013; Buckl e al. 2009) bu
ocusing on he EAM i sel , lea ing he en e p ise as
a sys em o sys ems in he backg ound. Theo e ical
explana ions gi e an analy ical ool o unde s and he
p oblem ield and u he consequences:
We looked a he esea ch ques ion: How can
EAM suppo business capabili y de elopmen in an
agile manne , when i in ol es he building o a new
sys em and a new uni , changing he en e p ise
s uc u e?
The poin o iew o he EAM is an embedded
go e nance sys em o he sys em o sys ems.
Looking a he cases, we see ha he incu ing
phenomena can be explained as a “sys emic
e olu ion” o he en e p ise as a sys em o sys ems.
I sel being a CAS (o CASs), he en e p ise con ains
a numbe o sub-CASs. The ocal poin in ou s udy
a e he business line managemen in cha ge o
business pe o mance on hei own a ea, hus in
cha ge o a sub-CAS.
Wi hin he decision eedom gi en in he
en e p ise s a egy hey de elop he LoB s a egically.
Po en ial changes in he decision making s uc u es,
and he e-s uc u ing o he uni s is a delica e ma e ,
also in he case o he new capabili y building. As new
manage ial asks and oles may open wi h he new
business capabili y, and he e-o ganiza ion o he
uni s may be necessa y, a nega i e de elopmen may
ollow in o he pa s. This calls o enabling he
e olu ion and he bi h o a new sub-CAS (a uni ) on
one hand (sel -o ganising and eme gence
cha ac e is ic o CAS), and on he o he hand, he
e ision o he en e p ise s uc u es and lines o
decision making, as needed.
IT de elopmen s no mally a e moni o ed by he
EAM unc ion o deploy he cu en en e p ise
s a egy ( om he poin o iew o he business), and
o ollow he se EA p inciples and s anda ds ( om
he IT manage ial iewpoin ). The moni o ing and
con ol o compliance equi es o mal p ocesses,
akes ime, and in oduces igidi y o de elopmen
p ojec s. A pilo p ojec means expe imen al lea ning,
and he s a egic choice in ou cases was o lea e he
de elopmen in o he hands o he LoBs (in bo h cases
unning a empo a y p ojec o ganiza ion). In his
si ua ion, i.e. an o ganiza ional change
(o ganiza ional e-design), an in e im, de elopmen -
ime s uc u e (Pulkkinen 2006) is keeping he p ojec
as a “de elopmen ime EA segmen ” (o domain),
managed by he empo a y eam ha is de eloping he
new capabili y. Fo de elopmen ime, i is isola ed
om he es o he en e p ise s uc u es and EA. The
eam engages bo h en e p ise and ou sou ced
capaci ies (p o ide expe s). This enables he new
capabili y building and es ing p io o in eg a ing i
o he es o he en e p ise and i s EA, as well as a
managed ansi ion o a new o ganiza ional s uc u e.
This p o ides a me hod o implemen eme gen
beha iou o a CAS in a con olled manne .
Fo he IT o ganiza ion and EAM, in bo h cases,
he solu ion o choice was no o es ablish a new
“agile IT” uni , wi h, o wi hou EAM, bu o employ
esou ces as needed, which esembles mo e he
BizDe Ops – ype (G uhn e al. 2015) o o ganizing
in a empo a y eam. Howe e , he De Ops mode was
no a possibili y, since he e we e no sys em ope a o s
o be in ol ed, as he de elopmen was no on
exis ing sys ems. The de elope s we e o a la ge
ex en hi ed. The en e p ise s a egic managemen
suppo s in bo h cases he agile pilo ing, jus i ied by
he impo o knowledge (use o IT p o ide s) o
injec knowledge and o os e o ganiza ional lea ning
and de elopmen , since he s a egy sees o u he
deploymen o he chosen echnology. The
o ganiza ion and EA design c ea ed in he
de elopmen domain can be cap u ed as a new
e sion o segmen business a chi ec u e and, wi h he
knowledge c ea ed in he pilo p ojec , eplica ed as
e e ence a chi ec u e o o he segmen s o his
en e p ise o hei capabili y de elopmen .
As o he explaining heo ies, changes in he EA
segmen s uc u es mean ha he sys ems s uc u e o
he en e p ise e ol es. New echnology is he co e
echnical sys em, en ailing a new socio- echnical
sys em o eme ge, wi h among o he hings a new
business p ocess o be designed as he co e o a new
capabili y o be es ablished. New EA segmen
s uc u e means e olu ion o he sub-CASs wi hin he
en e p ise.
The s a ing poin o an e olu ion s ep can be a
sub-CAS (a business uni ) pe cei ing i sel u ging
signals om i s en i onmen , and – wi h he
managemen sys em, i.e. he op echelon, allowing –
can ac upon hem, inally leading o modi ica ions,
o “sys emic e olu ion”, in he s uc u e o sub-CASs
wi hin he en e p ise.
The signal igge ing a new capabili y
de elopmen a ises om he business en i onmen .
Fo he en e p ise go e nance, i may be no clea
which LoBs a e a ec ed. Fo a gi en signal, he LoB
whose domain knowledge unde s ands he use case
bes , is also amilia wi h he speci ic equi emen s,
such as legisla ion and indus y s anda ds. The sel -
o ganizing beha iou acco ding o he heo y on CAS
is enabled by he lexible EAM, ha conside s bo h
he po en ial in achie ing goals (i.e. business
pe o mance) and he isks in ol ed. In addi ion,
when he LoB is allowed o inno a e, new use ul
pa e ns migh eme ge, ha a e no pa o he cu en
EA ( equisi e a ie y), bu can be po en ially use ul
o u he uni s in he en e p ise. This is one o he
known bene i s o a managed EA, and he
segmen a ion o EA as an aspec o i , allowing o
agile pilo ing – a capaci y o he EA wi h de ined
segmen s.
6. CONCLUSIONS
Concluding om he obse a ions and hei analysis,
an eme gen model o a dual capabili y EAM o
building new capabili ies can be summa ized as
ollows:
 A e conside a ion o business po en ial and
isk, a empo a y eam is o med, led by he
LoB ha owns he case (as a sel -o ganizing
CAS)
 Rep esen a i es om he a ec ed LoBs (co-
e olu ion) a e engaged in he eam, and he
equisi e a chi ec u al and echnical skills
a e ensu ed wi h a necessa y le el o
ou sou cing.
 The con ex o he solu ion is s udied,
e lec ing on he cu en EA, necessa ily
including he business a chi ec u e.
 The scope o he pilo is educed o co e
only he no el elemen s, as a de elopmen -
ime EA segmen . Fo echnology
de elopmen , a empo a y de elopmen
en i onmen is c ea ed; Cloud and
i ualiza ion echnologies a e he agili y
enable s he e.
 Du ing he expe imen a ion phase,
necessa y changes o he business p ocesses,
owne ships (“decision uni ”) and oles a e
designed and assigned, o a leas d a ed.
This means a e-w i ing o pa s o he
business a chi ec u e, o ming also he new
o modi ied EA-segmen ing s uc u es: The
new o ganiza ion.
 A he IT a chi ec u e le el, he equi ed
sys ems in eg a ions a all le els o sys ems
and he cons ain s like s anda ds o be
applied a e iden i ied
 Wo k and p og ess a e measu ed wi h
minimized managemen and EAM con ol.
 The iabili y o he solu ion and he
p oposed alue is e alua ed du ing and a he
end o he p ojec .
 I he ou come is posi i e and alue- o -
business can c ea ed, he solu ion will be
consolida ed, and i will be s anda dized
wi h he help o he EAM eam o
eplica ion in u he segmen s wi h simila
use cases. This b ings in he mo e adi ional
EAM ole o ensu e cohe ency and
consis ency o e he whole en e p ise IT.
IT is in bo h cases a igge o he s a egic
de elopmen case, leading o changes in he business
po olios, business a chi ec u e s uc u es, oles and
esponsibili ies, and inally po en ially he decision
uni s, i.e. en e p ise s uc u e. Inducing his ype o
o ganiza ional change is di icul , and he empo a ily
isola ed de elopmen ime segmen could gi e he
en e p ise change managemen he necessa y space
and ime o adjus men s. Thus he EAM allowing o
he de elopmen - ime segmen enables a smoo h
ansi ion, o he use o a new ope a ional echnical
sys em, as well as an eme ging ope a ional socio-
echnical sys em.
Di e en om ea lie cases we do no sugges a
pe manen “ as IT EAM” o enable eme gen
capabili y de elopmen . Po en ially, wi h ime, such
eam also uns in o simila p oblems as poin ed ou
wi h he bimodali y o IT (Ha ke e al. 2017).
Ins ead, he exis ing EAM p o isions EA in o ma ion
(baseline), and enables he wo k o he empo a y
eam esou ced wi h EA skills. The use o a
empo a y eam o ms he co e o his dual EAM
capabili y. A e he p ojec , he s abiliza ion and
s anda disa ion o he solu ions a e gi en o e o he
EAM eam.
Bo h cases conce ned building no el capabili ies
ha ha e clea and limi ed in eg a ion poin s o he
exis ing a chi ec u e. When upg ading exis ing
sys ems, he e o could be mo e demanding, due o
exis ing in e connec ions be ween sys em elemen s.
The dependencies would limi he eedom.
Wi h only wo cases in s udy, he gene alizabili y
o he esul migh be limi ed. On he o he hand, he
o ganiza ions we e undamen ally di e en : Thei
owne ship (public / p i a e), he na u e o hei
business (se ice / manu ac u ing). Also, he
solu ions used di e en echnology (AI / IoT). In spi e
o hese di e ences, he new echnology p ojec
o ganiza ion and ex ending he ole o EAM o a dual
capabili y app oach in i we e simila . Fu he s udy
is needed, i e.g. he no el solu ion would be mo e
in e connec ed wi hin i s con ex , and o cou se wi h
u he ypes o o ganiza ions.
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