TEN#41:
ROI of Enterprise Architecture and Technology
Courses
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CONTENTS
Introduction
June 2, 2008:
In the last issue of TEN,
TEN40, I discussed the various Enterprise Architecture
(EA) courses whose copyright is being offered for sale, in
relation to my planned retirement in October, 2008. A
significant number of Education and Consulting companies
responded, expressing interest in the courses. Thanks to all
for your interest.
This issue expands on the
courses introduced in
TEN40. It discusses the Course Groups that are
available, and the Return on Investment (ROI) of
Enterprise Architecture (EA) and Technology courses
developed by Clive Finkelstein of Information Engineering
Services Pty Ltd (IES).
The financial details of these
courses are provided in the Course ROI document, which
is available to Education and Consulting companies.
Questions relating to this document can be emailed to
clive.finkelstein@ies.aust.com.
If
you do not want to receive future TEN mailings, please send an email
to
unsubscribe@ies.aust.com
with “Remove” and your email address in the Subject line.
Clive Finkelstein
Publisher, The Enterprise Newsletter (TEN)
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ROI of Enterprise Architecture Courses
This issue expands on the
courses introduced in
TEN40. It discusses the Return on Investment (ROI) of
Enterprise Architecture (EA) and Technology courses
developed by Clive Finkelstein of Information Engineering
Services Pty Ltd (IES).
1. The
Courses:
Links to download the course
descriptions in PDF are provided below for the following
courses:
EA Courses:
1.
Introduction to Enterprise Architecture for Managers and IT
- Day 1 of EA Courses 2 - 3 below (1 day)
2.
Rapid Delivery Workshop for Enterprise Architecture Maturity
(2 days)
3.
Rapid Delivery Workshop for Enterprise Architecture Maturity
(3 days)
Technology Courses:
1.
Rapid Delivery SOA Technologies for Enterprise Architecture
(1 day)
2.
Enterprise Integration Technologies (2 days)
3.
Enterprise and e-Government Portals (3 days)
Webcast Courses:
Webcast courses based on the
above courses have been developed for self-study training of
clients via the Internet or corporate Intranets. They also
help to promote the inhouse courses.
All of the above courses will
enable Education and Consulting Services companies (and also
Software companies) to offer public and inhouse education
courses and consulting services based on these course
materials to their relevant markets.
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2.
Course Groups
The above courses enable
groups of courses to be tailored – comprising seminars and
skills-transfer workshops – typically based on 5 days of
inhouse course presentation as follows:
Rapid Delivery EA Course Group:
This course group provides
introductory training for business and IT staff in
Enterprise Architecture concepts and principles plus
skills-transfer training in hands-on workshop teams of 4 – 5
students, who work together on EA problems and exercises
with sample solutions.
The Rapid Delivery EA Course
Group comprises EA Course 1 (see above) – “Introduction
to Enterprise Architecture for Managers and IT ” (1 day)
and EA Course 3 – “Rapid
Delivery Workshop for Enterprise Architecture Maturity”
(3 days) above, plus Technology Course 1 – “Rapid
Delivery SOA Technologies for Enterprise Architecture”
(1 day). For typical class sizes of 21-30 this course group
can be presented in 4 days. With larger class sizes of 81-90
the course is presented in 5 days because of the larger
number of workshop teams for the instructor to supervise.
Data Modeling Course Group:
This course group provides
introductory data modeling training for business and IT
staff in “Business-Driven Data Modeling Concepts” and
“Business Normalization Concepts”. It includes the “Data
Modeling Case Study Workshop”.
The Business-Driven Data
Modeling Concepts and Business Normalization Concepts
components of the Data Modeling Course Group can be
presented in 3 days. Each student personally completes the
workshop in their own time after the inhouse training.
Successful later personal completion of this workshop
qualifies each student as a Certified Business Data Modeler
(CBDM). This course group is also sold online by IES through
its Online Store at
http://shop.ies.aust.com/ as the CBDM Self-Study Course.
The Data Modeling Case Study
Workshop can alternatively be conducted in a classroom
workshop environment with students working in teams of 4 – 5
students each, over 2 – 3 days. Assessment for CBDM
qualification is then made by the instructor based on
personal performance in the workshop teams.
Technology Course Group:
This course group provides
training for business and IT staff in the concepts and
principles of rapid delivery technologies for Enterprise
Architecture.
The Technology Course Group
uses Technology Course 2 – “Enterprise
Integration Technologies” (2 days) and Technology Course
3 – “Enterprise
and e-Government Portals” (3 days) from above. This
course group can be presented as two seminars over 5 days
for larger class sizes of several hundred.
Webcast Course Group:
This course group provides
self-study training for business and IT staff in the
concepts and principles for rapid delivery of Enterprise
Architecture and rapid delivery technologies.
An overview of some of the
Webcast Course Group has been created by Clive Finkelstein
using Visual Communicator from Adobe. This can be viewed
online at
http://www.ies.aust.com/ies-courses/courses_index.htm#Video_Courses.
These webcast courses can be re-recorded by professional TV
presenters in TV Newsroom quality using Visual Communicator.
This helps to promote and sell inhouse courses and EA
projects.
EA Project Course Group:
This course group provides
project team training for business and IT staff in
Enterprise Architecture rapid project implementation. It
requires prerequisite attendance and completion of the Rapid
Delivery EA Course Group and the Technology Course Group. It
provides training in Project Management of rapid delivery EA
projects plus skills-transfer training in hands-on workshop
teams of 4 – 5 students: with each team working on priority
parts of the client’s own EA project.
This inhouse EA Project
Course Group is used to fast-start the training of a
client’s EA project team for project implementation. It
leads to and is used in conjunction with EA Consulting
services.
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3. Course Materials
The course materials for the
above courses and course groups are available in Microsoft
PowerPoint. Documentation of these courses for instructors
is provided as detailed Instructor Notes in PowerPoint.
Course Handouts for students can be printed as Handouts,
with two visuals per page in PDF or as Instructor Notes in
PDF.
The Reference Text for these
courses is the book: “Enterprise Architecture for
Integration: Rapid Delivery Methods and Technologies”, Clive
Finkelstein, Artech House, Norwood MA (March 2006). The book
is reviewed at
www.ies.aust.com/ten/ten32.htm. This book is available
for purchase for each course group above and can be ordered
in bulk directly from the Publisher’s web site of
www.artechhouse.com at bulk purchase discounts of up to
30%.
The quality of the course
materials can be seen from the presentation by Clive
Finkelstein: “Modelling
Tool Support for Rapid Delivery of Enterprise Architecture”
presented in London at the Enterprise Architecture
Conference Europe 2008. This can be downloaded from:
www.ies.aust.com/downloads/eac/download-pdfs.htm.
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4.
Revenue Opportunity
Each course group is sold for
inhouse presentation based on class attendance numbers,
generating daily and weekly revenue. This revenue is
summarized in Table 1 of the
Course ROI. This document, with
its included financial details, is available to interested Educational and Consulting companies.
Questions relating to this document can be emailed to:
clive.finkelstein@ies.aust.com.
A typical inhouse class size
is 21-30 students. For very experienced EA instructors,
larger class sizes of 81-90 students are feasible. Such
courses are very cost-effective for clients, significantly
below public course rates in terms of per-student cost.
An added benefit for clients
is that inhouse courses can be tailored to the client’s
unique requirements – an option that is not feasible for
public courses. Such inhouse courses also generate on-going
project consulting revenue, from consultants who are
assigned to advise trained clients in the implementation of
their EA projects through Quality Assurance Consulting
services. Furthermore, public courses and inhouse courses
help to sell consulting, while consulting and public courses
are complementary and help to sell inhouse courses.
-
For larger education and
consulting companies, total revenue generation potential
is directly proportional to the number of sales people
and instructors who can be assigned to sell and present
these courses.
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5. Market Potential
The Enterprise Architecture
market is rapidly growing in most countries throughout the
world, based on a common need by Government, Commercial and
Defense organizations to achieve Enterprise Integration. EA
has been promoted world-wide through the public and inhouse
courses presented by people such as
John Zachman,
Stan Locke,
Clive Finkelstein and many others.
Geographic markets such as
the USA, Canada, Australia and UK are well-advanced, through
US Federal Government initiatives such as FEAF (the Federal
Enterprise Architecture Framework), Dept of Defense
initiatives such as DoDAF and MoDAF (the Dept of Defense
Architecture Framework in USA and the Ministry of Defence
Architecture Framework in UK) and TOGAF (the Open Group
Architecture Framework). The courses are directly applicable
and can be used with each of these EA approaches.
Many software vendors also
support and grow the EA market with their EA-focused
Modeling Tools, such as IBM System Architect (previously
called Popkin System Architect), Sparx Systems’ Enterprise
Architect from Australia and Visible Advantage and Visible
Analyst from Visible Systems Corporation in the USA.
As discussed above, inhouse
courses also generate on-going project consulting revenue,
based on consultants who are assigned to advise
inhouse-trained clients in the implementation of their EA
projects through Quality Assurance Consulting services.
Furthermore, public courses and inhouse courses help to sell
consulting, while consulting and public courses help to sell
inhouse courses.
The market potential in each
geographic market for the EA courses discussed in this issue
is best assessed by the various EA Education and Consulting
Services companies that operate in those geographic markets.
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6. Purchase Options
There are multiple companies
from various countries who have expressed interest in
acquiring the rights to present the EA and Technology
courses discussed in this issue in their respective
geographic markets. Two purchase options are available to
these companies:
6.1 Option 1: Franchising
-
This is a lower-cost option
that enables the purchase of Exclusive Franchise Rights
to present and support EA courses in specific Geographic
Markets.
-
It involves a one-time
Franchise Fee for these rights plus training of
instructors and sales staff.
-
Start-up Teach the Teacher (TTT)
training courses for instructors and sales staff are
presented on the Franchisee’s premises personally by
Clive Finkelstein.
-
This option includes an
On-Going License Fee based on a royalty percentage of
gross education and consulting revenue generated from
the courses.
-
The purchase of Exclusive
Franchise Rights also includes the right to promote and
present public courses based on the franchised course
materials. Such public courses provide a subtle
marketing opportunity to sell prospective clients on the
benefits of the EA and Technology courses for inhouse
presentation and consulting support.
-
This sales strategy has been
successfully used by IES for many years, where prospects
effectively pay for a limited number of their people to
attend these courses at public course rates, so they can
evaluate the courses for potential future inhouse
presentation and tailoring.
-
Public courses provide
additional revenue and profit potential and represent a
sales strategy of “prospect-paid marketing”.
6.2 Option 2: Copyright Purchase
-
This is a higher-cost option
than Franchising as it involves outright purchase of the
Copyright in the courses and the world-wide rights to
the courses for presentation, and trademarks used to
describe and promote the education courses and
consulting services.
-
It includes the right for
such Copyright Purchasing Companies to promote
themselves as the “successor” to Clive Finkelstein and
Information Engineering Services Pty Ltd (IES) as the
owner of these EA and Technology courses and consulting
services.
-
It involves a one-time
Purchase of the Copyright in the course materials and
ownership of the trademarks plus training of instructors
and sales staff.
-
Start-up Teach the Teacher (TTT)
training courses for instructors and sales staff are
presented on the Copyright Purchaser’s premises
personally by Clive Finkelstein.
-
This option does not involve
any ongoing license fees based on a royalty percentage
of gross education and consulting revenue generated from
the courses.
-
The purchase of the
Copyright also includes the right to promote and present
public courses based on the copyrighted course
materials. Such public courses provide a subtle
marketing opportunity to sell prospective clients on the
benefits of the EA and Technology courses for inhouse
presentation and consulting support.
-
This sales strategy has been
successfully used by IES for many years, where prospects
effectively pay for a limited number of their people to
attend these courses at public course rates, so they can
evaluate the courses for potential future inhouse
presentation and tailoring.
-
Public courses provide
additional revenue and profit potential and represent a
sales strategy of “prospect-paid marketing”.
-
This option presents an
opportunity for the Copyright Purchaser to establish its
own Franchising capability as described above, for training
and support of Franchisees or instead to train and
support business partners and “value-added resellers”.
This would be an additional profit centre.
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7. ROI of Purchase Options
Separate course groups can be
selected for franchising or copyright purchase from the
course groups described earlier. The above options have a
Return on Investment for each course group which provides
early break-even as discussed next. The
Course ROI
document includes financial details.
7.1 Option 1: Franchising ROI
Break-Even
-
The one-time Exclusive
Franchise Rights in Option 1 for each course group has a
ROI break-even of 37.5 days inhouse course revenue:
based on the revenue rates for typical inhouse class
sizes of 21-30 students, as quoted in Table 1 of the
Course ROI document.
-
The On-Going License Fee for
each course group is based on a minimum royalty (see
Course ROI document) of gross education and consulting
revenue generated from the courses.
-
Charges for each course
group of the TTT training of instructors and sales staff
is charged by IES to the Franchisee at the same rates as
quoted in Table 1 of the Course ROI document, based on
the number of staff to be trained, together with the
international airfare from Perth, Western Australia to
the Franchisee’s premises plus airport taxis, hotel
accommodation and meals.
-
Where multiple companies are
competing for the Exclusive Franchise Rights for each
course group in a specific geographic market, these
rights will be secured by the company that tenders the
highest royalty for the On-Going License Fee based on
their projected annual gross course and consulting
revenue.
-
Tenders must be submitted using the
Tender Offer Form, available with the
Course ROI document, with
questions to
clive.finkelstein@ies.aust.com.
7.2 Option 2: Copyright Purchase
ROI Break-Even
-
As Option 2 would also
enable the successful Copyright Purchaser to generate
its own Franchising Revenue as a profit centre for each
course group as described in Option 1, the successful
Copyright Purchaser will need to tender for a multiple
of the one-time Exclusive Franchise Rights in Option 1
for each course group.
-
This Copyright Purchase will
therefore have a ROI break-even that will be a similar
multiple of 37.5 days inhouse course revenue for each
course group based on the revenue rates for typical
inhouse class sizes of 21-30 students, as quoted in
Table 1.
-
Charges for each course
group of the TTT training of instructors and sales staff
is charged by IES to the Copyright Purchaser at the same
rates as quoted in Table 1, based on the number of staff
to be trained, together with the international airfare
from Perth, Western Australia to the Copyright
Purchaser’s premises plus airport taxis, hotel
accommodation and meals.
-
This Copyright Purchase ROI
break-even will be further improved based on the amount
of Franchise Revenue that the successful Copyright
Purchaser can additionally generate itself from
world-wide Franchise Fees in its Franchising Profit
Centre.
-
Where multiple companies are
competing for the Copyright Purchase of each course
group in a specific geographic market, these rights will
be secured by the company that tenders the highest
amount for purchase of the copyright in the courses and
the ownership of the trademarks.
-
Tenders must be submitted using the
Tender Offer Form, available with the
Course ROI document, with
questions to
clive.finkelstein@ies.aust.com.
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8. Ongoing
Course Maintenance
Ongoing Course Maintenance of
the above courses and course groups can be provided
personally by Clive Finkelstein for the successful Copyright
Purchaser. This reflects changes in the courses due to
methodology and technology advancements, such as
incorporated by Clive Finkelstein in the Second Edition of
his book: “Enterprise Architecture for Integration: Rapid
Delivery Methods and Technologies”, Clive Finkelstein,
Artech House, Norwood MA (March 2006). This is anticipated
to be published in 2010.
If required, this maintenance
can also include the preparation of additional webcast
courses, using Visual Communicator for the creation of
visuals and Teleprompter text to be used for recording by
professional TV presenters. These courses can be published
to the Internet for online self-study sales and also for
promotion of inhouse courses and EA consulting projects.
Ongoing Course Maintenance by Clive Finkelstein is secured
by payment of a monthly retainer fee to IES.
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9. Clive Finkelstein
Clive Finkelstein is
acknowledged worldwide as the "Father" of Information
Engineering, and is the Managing Director of Information
Engineering Services Pty Ltd in Australia. He has over 46
years' experience in the Computer Industry. He has published
many books and papers, and contributed Chapters and
Forewords to books published by McGraw-Hill and Springer-Verlag.
Clive has authored the following books:
-
“Information Engineering”,
James Martin and Clive Finkelstein, Savant Institute,
Carnforth: Lancs UK (1981). This was the book that
started the Information Engineering Revolution in the
1980’s.
-
"An Introduction to
Information Engineering", Clive Finkelstein,
Addison-Wesley, Sydney: Australia (1989). This book
covers the history and evolution of Information
Engineering.
-
"Information Engineering:
Strategic Systems Development", Clive Finkelstein,
Addison-Wesley, Sydney: Australia (1992). This is the
“how-to” book on using Information Engineering.
-
"Building Corporate Portals
with XML", Clive Finkelstein and Peter Aiken,
McGraw-Hill New York: NY (2000). This book covers
methodologies and technologies for Enterprise Portals.
-
“Enterprise Architecture for
Integration: Rapid Delivery Methods and Technologies”,
Clive Finkelstein, Artech House, Norwood MA (March 2006.
This book is the Reference text for the courses and
course groups in this issue.
Clive Finkelstein is an
internationally renowned consultant and instructor, and has
completed projects for Defense, Government and Commercial
organizations throughout the world and in most industries.
The emphasis of these projects has been to bridge from
strategic business plans to information systems, so aligning
systems closely with corporate goals. Many projects have
involved the Zachman Framework for Enterprise Architecture,
using the latest methods and technologies for rapid delivery
of priority processes into production. These methods use
Enterprise Engineering for rapid definition of Enterprise
Architecture. His technology focus addresses Enterprise
Integration technologies using XML, Enterprise Application
Integration (EAI), Enterprise Portals, Web Services and
Service-Oriented Architecture (SOA) for Business Process
Management (BPM) using XML-based BPM languages such as
Business Process Execution Language (BPEL), Business Process
Modeling Language (BPML) and Business Process Specification
Schema (BPSS also called ebBP) for ebXML.
His application of these
methods in large and medium Government, Defense and
Commercial enterprises results in Business Transformation
Enablement, so that business and IT managers and their
staffs can plan for and achieve rapid business change.
Enterprise Architecture provides a Governance Analysis
Framework that supports Sarbanes-Oxley and other Governance
Audit requirements. It provides direct support and linkage
to Balanced Scorecard for Strategy-Focused Organizations, to
ensure that IT systems and databases support defined
scorecard strategies and governance requirements for
Enterprise Architecture maturity.
He provides world-wide
training through public and inhouse courses – plus
consulting – in all aspects of the Zachman Framework for
Enterprise Architecture, with rapid delivery of standardized
processes using Enterprise Engineering. During
implementation he also moves organizations to rapid
implementation using XML, Enterprise Portals, Web Services,
BPM and SOA. These provide a central gateway to the
information and knowledge resources of an enterprise on its
Intranet and via the Internet. Enterprise Architecture,
Enterprise Portals, Web Services, SOA and BPM will be key
development methods and delivery technologies for most
enterprises in the 21st century.
Clive writes a monthly online
column on Enterprise Architecture for the BEye Network
online magazine in the USA. He also publishes a free,
quarterly technology newsletter via email: “The Enterprise
Newsletter (TEN)”. Past issues of TEN are at:
http://www.ies.aust.com/ten/TEN_index.htm. His books,
papers and projects are summarized at
http://www.ies.aust.com/cbfindex.htm. He can be
contacted at <cfink@ies.aust.com>. Many in-house
skills-transfer workshops, seminars and online webcast
courses presented by Clive Finkelstein are available at
http://shop.ies.aust.com/.
 |
Contact
Details
Clive Finkelstein,
Managing Director
Information Engineering
Services Pty Ltd
PO Box 246, Hillarys
Perth WA 6923 Australia
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