Enterprise Architecture to Support the Resolution of IT Governance Problems in Regional Banks

Abstract

Digital transformation in the banking sector requires organizations to establish information technology governance that can align business strategy, processes, data, applications, and organizational structures. Bank XYZ, as a regional development bank, faces three main IT governance problems: application portfolio inefficiency, weak data governance, and limited organizational alignment. This study aims to analyze how the development of Enterprise Architecture (EA) can support the resolution of these three problems. This research applies a qualitative approach using a case study method. Data were collected through documentation studies of strategic documents, governance documents, application catalogues, data catalogues, as well as discussions and assessments involving business and IT units of Bank XYZ. The analysis was conducted by mapping the identified problems to relevant EA artifacts, evaluating their suitability using COBIT 2019 APO03 Managed Enterprise Architecture, and confirming the analysis results with relevant stakeholders. The findings show that EA supports the improvement of application portfolio inefficiency through the application landscape and application communication diagram, which provide visibility into application distribution, functions, and inter-system dependencies. In terms of data governance, the data architecture and data catalogue help clarify data domains, data definitions, and the relationship between data, business processes, applications, and organizational units. For organizational alignment, the cascading of EA artifacts from the metamodel to level 2 business processes and the demonstration of the Event Driven Process Chain show how processes, data, applications, and organizational units can be integrated within a single architectural framework. The APO03 evaluation indicates a capability score of 2.70, meaning that EA management has passed Capability Level 2 but has not yet reached Capability Level 3. Stakeholder confirmation also indicates that the EA artifacts are considered suitable and relevant to the organization’s needs, particularly in addressing the three IT governance problems. However, stakeholders expressed concerns regarding implementation, especially in ensuring that EA artifacts can be managed, updated, and used continuously. These findings indicate that EA can serve as an IT governance analysis instrument that helps organizations understand architectural complexity and determine improvement priorities more systematically. Therefore, Bank XYZ needs to strengthen its EA management policy, establish a RACI matrix, and develop an EA implementation plan integrated with organizational program and project governance.