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Getting and Measuring Value From Ardoq

Capture data in Ardoq. Get an introduction to metrics, what they are, their value and how to use them.

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Written by Jim Down
Updated over a year ago

Introduction

Having deployed Ardoq and configured it to support your specific business need, how can you show your company that both the tool and the EA team delivered added value. How can you demonstrate that this was a good use of time, resources, and investment? How can you show what the Return on Investment really is? How can you improve the quality of decision-making and re-allocating time from boring governance tasks to strategic design?

The answer to all these questions is through the use of metrics, and specifically through capturing and visualizing metric data in Ardoq itself!

The following document describes what metrics for EA-led improvement are, how they are applied and used, and how they can demonstrate real value to your organization.

Metrics: Definition and Types

Metrics are simply variables, identified within Ardoq, to which a value is assigned. These values can be financial, quantitative, simple values, percentages and examples include what percentage of applications are on-premise and the cost of annual application maintenance.

By analyzing and measuring metrics over time, including before implementing change, it will be easy to determine how effective changes to the business, as determined and measured using Ardoq, have been.

Metrics can show the efficacy of a change, from pre-start to finish, how a change is progressing (KPI), and the longer-term benefits highlighted by measuring metrics on a continuous and long-term basis.

There are 3 areas we focus on for collecting metrics to help illustrate the value of change:

Data Quality - These metrics measure the completeness and accuracy of your data set over time. The more accurate your data is the more informed your decisions will be. The goal is that the value will remain consistent over time or, ideally, go up, e.g. percentage of the application portfolio that has been reviewed.

Business Value - These metrics measure the realization of the market and operational performance objectives.

Productivity - These metrics indicate improvements seen by EA as a result of operating more efficiently.

When defining your metrics it is important to keep the 5 principles of effective metric definition in mind:

  1. Simple and easy to understand

  2. Designed with the end result in mind

  3. Easy to benchmark

  4. Progressively more detailed as needed

  5. Communicated to the right audience

With those principles in mind, we can begin to formulate what metrics would be relevant to the organization and how they could be implemented and tracked in Ardoq.

There are various mechanisms that can be used when defining metrics in your organization.

Standalone Metrics - The standalone metric is used to track generalized improvements over a specified period e.g. (2 hours). At the end of the predefined timeframe, we collect the realized outcome (0.5 hours) and measure it.

Aggregated Metrics - The aggregated metric is used to track several values and then aggregate them up to an average e.g. time spent doing Impact Analysis. In this example, we can tie this metric directly to change initiatives to collect impact analysis improvements across all initiatives. We can then aggregate up to return what the average improvement was.

Like the Standalone Metric, first, we establish a baseline and expected outcome. Then we can calculate the realized outcome through a calculated field

Many of our Use Case Guides, for example, Application Lifecycle Management, contain example metrics that you can find in the Metrics workspace. These are examples to inspire and help get you started, but it is up to you to identify what metrics are relevant for you to track.

Using Metrics

For each identified metric three values of data need to be determined and documented as follows:

  1. Baseline data – the value of the metric before any change has been instigated and, potentially, before Ardoq has been implemented

  2. Estimated outcome – what you expect the value of the metric to be once the envisaged change or changes have been applied

  3. Realized outcome – the actual value of the metric once the change or changes have been made

The collection process for data depends on the metrics and the metric types. Some data collection can be automated. For example data quality today versus data quality 1 year ago.

Alternatively, data collection could be manual. For example, was the discovery process easier today than it was 1 year ago?

With three values you can determine and present predicted benefits to the company as well as the real, tangible, benefits that change has delivered. Benefits can be monetary, quantitative, or statistical but will always feedback on the financial performance of the company.

Ardoq itself is used to track the changes in the value of those variables enabling you to visualize the trend over time.

Metrics do not have to be perfect or comprehensive. It is simply important to start with something which appears valuable for your business and then refine them over time.

Some metrics can rely on subjective estimation. Our experience is that this still provides a useful measure of benefit that can be discussed with your stakeholders in the organization.

Presenting Metric Data

Once suitable metrics have been identified, and the data for each one collected, they need to be presented in an understandable and user-friendly manner. The normal way to do this is through a metrics dashboard.

A dashboard simply provides a high-level overview of your data. You can create insightful dashboards through widgets based on surveys, advanced search, or gremlin queries.

To understand how to create and set up a dashboard please see a description in the file How to create a Dashboard.

Ardoq takes a snapshot of your data every night. That collection of snapshots creates a time series of values that are presented in the dashboard widget. Changes to the values are therefore tracked automatically and subsequently used to show status and trends.

An example of some key Metrics contained in the dashboard is as follows:

Similar graphics exist for all metrics defined within Ardoq.

Types of Metrics that can be used within Ardoq

As outlined above metrics can be used for many different areas of the business using Ardoq. Their definition and application will depend on your business and your implementation of the application.

The type and usage of metrics are extremely varied and can be specific to your business. The following examples demonstrate a range of metrics that can be defined for different areas of your business, what they can measure, and how they can be applied:

Business focus

Metric

Metric classification

Application Lifecycle Management

Cost savings and cost avoidance due to process efficiency, technology standardization, retirement, and consolidation

Ownership of applications including identification of "unowned" applications

Higher satisfaction with the renewal/replacement process due to better portfolio lifecycle planning

Percentage of the portfolio that was reviewed within the month, and reviewed more than 1 year later

Business Value

Productivity

Productivity

Data Quality

Business Capability Realization

Percentage of completeness of Business Capabilities

Percentage of applications/services used by more than one business/ product mix offering

Data Quality

Productivity

Data Quality

Infrastructure Time Lifecycle Management

Percentage of application Portfolio that has direct cost associated

Percentage of infrastructure portfolio that has identified owner

Time savings/efficiencies

on cost documentation for planning/budget
​

Cost savings and cost avoidance due to process efficiency, technology standardization, retirement, and consolidation

Percentage of IT infrastructure on Premise

Percentage of IT infrastructure hosted in Cloud

Breakdown Percentage of Infrastructure by Production, Staging, and Development environments

Infrastructure by age broken down in line with warranty/guidelines e.g. 2-3 years end/user consumer devices, 3-5 years on servers, 5-7 years network devices. This gives visibility of the IT refresh cycle for budget planning

Business Value

Data Quality

Business Value

Business Value

Business Value

Business Value

Business Value

Business Value

Application Integration Management

Percentage of systems with identified interfaces

Percentage of systems with identified connections

Time improvement spent on impact analysis

Time spent on integration compliance checking

Data Quality

Data Quality

Productivity

Productivity

IT Optimization Metrics

Application Rationalization number of opportunities

Application Rationalization Average number of applications per capability

Cloud Migration number of outages due to infrastructure

Cloud Migration number of opportunities

Business Value

Business Value

Business Value

Business Value

IT Cost Management

Time spent on cost documentation for planning/budget

Enterprise architecture used to inform IT investment decisions

Percentage of the portfolio that has a direct cost associated with it

Productivity

Business Value

Business Value

Data Quality

Data Lineage Metrics

Percentage for completeness of Data Entities

Number for time spent during Data Discovery

Data Quality

Business Value

Reference Architecture

Number of projects that leverage EA repository for future-state designs /reference architectures

Data Quality

Generic

Time saving on creating custom diagrams

Productivity

Strategic to Execution Objectives and Metrics

Strategy to Execution Insights and Impacts Metrics

Percentage of company level objective alignment

Percentage of IT objectives aligned to business objectives

Percentage of strategic investment ratio

Percentage of objective completeness

Percentage of resources over allocated

Percentage showing strategic investment ratio

Investment for budgeted strategic investment (Run)

Number of active initiatives in resource conflict

Percentage of initiatives that completed on budget

Business Value

Business Value

Business Value

Business Value

Business Value

Business Value

Business Value

Business Value

Productivity

Business Value

Benefits of Using Metrics

There are several clear benefits of defining and using metrics for your organization that include:

  1. Validation of the benefit that your EA team, and tooling, are delivering to your business. One or more metrics can show the monetary impact (benefits) that changes identified by EA have on the business

  2. Improving the quality of decision making by providing a focus on required strategic changes

  3. Improving time management by re-allocating time from boring governance tasks to strategic design

  4. Metrics that show a negative or smaller than expected impact of a change are likely to be the result of a poorly implemented change or a poorly defined metric. They indicate areas where further work is required.

Getting started with metrics in Ardoq

Setting up metrics in Ardoq is a straightforward process comprising the following steps:

  1. Create a separate workspace to keep your metric components

  2. Create a component type called Metric

  3. Create three number field types:

a) Baseline Metric

b) Estimated outcome

c) Realized outcome

4. Apply the 3 fields to the defined metric component

metric component

Now you can use other tools such as surveys and broadcasts to collect the metrics baseline result and subsequent follow-ups to begin populating the change and track that change over time using dashboards.

Summary

Many customers have asked how they can prove both their value and the value of using an EA tool, and Ardoq, in particular.

Using metrics is one of the main ways to do this. By identifying relevant metrics for your business, determining their baseline value, the expected value post-change, and then the actual value because of change, you will quickly and efficiently determine the financial benefits resulting from the use of the EA tool.

Metrics can be used in the short term, or over a longer period, and can be modified as required by the business.

By adding a dashboard in Ardoq the latest metric data will be up to date and available for use in strategy and decision making.

In summary, therefore, metrics are used to calculate real, financial, benefits resulting from planned changes within the business.

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