digital transformation and enterprise architecture

Digital Transformation And Enterprise Architecture

Alan McSweeney

http://ie.linkedin.com/in/alanmcsweeney



Digital Strategy And Digital Transformation

• Digital strategy is a statement about the organisation’s digital positioning, operating model, competitors and customer and collaborator needs and behaviour to achieve a direction for innovation, communication, transaction and promotion

• Digital transformation is concerned with moving the organisation from its current state to one that involves extending and exposing business processes outside the organisation along the dimensions of: − External Parties Participating in Digital Interaction/Collaboration –

who of the many parties in your organisation landscape do you interact with digitally

− Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy – which types of interactions and associated business processes do you digitally implement

− Channels Included in Digital Strategy – what digital channels do you interact over

September 7, 2016 2

Digital Strategy, Architecture And Transformation

September 7, 2016 3

Digital Transformation

Digital Strategy

Digital Architecture

Statement About The Organisation’s Digital

Positioning, Operating Model, Competitors And

Customer And Collaborator Needs And Behaviour

Extending And Exposing Business Processes Outside The Organisation

Future State Application, Data and Technology View To Achieve Digital Operating

Status

Digital Transformation And Underlying Digital Architecture

• Is all about enabling technology and its successful implementation and operation including: − Organisation changes − Business process changes

• Digital transformation is (very) complex

• Management must appreciate the technology focus and the benefits of an enterprise architecture approach

• Early involvement of enterprise architecture increases successes and reduces failures

• Management must trust and involve enterprise architecture

• Enterprise architecture function must accept and rise to the challenge and deliver

• Enterprise architecture function must allow its value to be measured

September 7, 2016 4

September 7, 2016 5

Lack Of An Enterprise Architecture View Leads To Unmanaged IT Complexity

Unmanaged Complexity in IT

Landscape Increased Cost

Reduced Flexibility

Delays in Delivering Changes

Duplication in Resources to

Develop, Operate and Maintain

Business Systems

Cannot to Exploit Economies of Loading and

Scale

Longer Design, Build, Test and Delivery Time

Complexity Causes

Difficulties and Uncertainties

Leads To ..

… Thus Negatively

Impacting on Business

Performance …

September 7, 2016 6

Why Enterprise Architecture?

Enterprise Architecture

Provides a Set of Tools and Methods

Need to Measure Effectiveness of

Enterprise Architecture In

Order to Maximise Business Value

Provides…

… To Address This Complexity …

But

September 7, 2016 7

Value of Enterprise Architecture

Appropriate and Effective


… Promotes Actions and

Decisions That …

Align Information Technology Plans and Investments with Business Priorities and Requirements

Result in More Integrated Operations Responsive to Customer and Business Requirements

Promote a More Efficient and Effective IT Infrastructure

Facilitate Cross-Organisational Sharing of Enterprise Information

Recognise Innovations and Best Practices Across the Enterprise

Ensure Traceability of Decisions Back to Principles and Rules

Enterprise Architecture And Digital Transformation

• Enterprise architecture provides the tools and the approaches to manage the complexity of digital transformation

September 7, 2016 8

General Aspects Of A Digital Strategy

Definition/ Diagnosis

Governing Policies and Principles

Action Plans

September 7, 2016 9

Define the circumstances of the issue that give rise to the need for a

strategy

Detail the core objectives of the

strategy to address the circumstances

Expand into a series of co-ordinated and integration actions to achieve the core

objectives

Why are we doing it? What gives rise to the need for a digital strategy?

What problems are we trying to solve? What challenges are we trying to address?

What constraints are we looking to remove?

What are our objectives? Who are we looking to connect with digitally and how?

What is our long-term digital strategy? How will be communicate our strategy?

What type of connections are we looking to implement? How will we measure the achievement of the objectives?

How will the implementation be phased?

What is the schedule for implementation – which parties, what types of interaction over what channels? What are the technology, system, resource and

organisation pre-requisites to achieving success? What are the risks and dependencies?

How can this work be formulated into a realistic and achievable plan?

What Success Looks Like And How You Intend To Achieve It

External Interactions And Internal Organisation Reality

September 7, 2016 10

External Organisation Interactions

Internal Organisation Reality

Digital Transformation Is About …


Moving the organisation from one that is internally focussed around its siloed structures:

To one that is focussed on customer (external party) straight-through interactions:

Objectives Of Digital Strategy


Digital Strategy

Objectives

Relationships And Information

Commerce And Transactions

Content and Management

Marketing and Communications

Efficiency

Brand

Innovation

Profit

Achieved By

Technology

Processes

People

Objectives Of Digital Strategy

• The objectives of a digital strategy are: − Relationships And Information – manage and maintain relationships with existing

external parties, provide external parties access to information on accounts and transactions including analysis and reporting, provide personalised experience, have a consistent message across all channels

− Commerce And Transactions – enable external parties transact online – pay bills, order and buy products and services in new ways

− Content and Management – provide external parties with current, relevant, quality, meaningful content with easy access to maintain external party conversation

− Marketing and Communications – provide external parties with personalised and customised information and offers on new products and services based on an intelligent analysis of their likelihood to avail of the offer

− Efficiency – make existing business processes more efficient, remove siloed operation, implement cross-functional/cross-capability processes that mirror external party interactions and transactions

− Brand – articulate the organisation brand more effectively − Innovation – make products and services better, develop new products and

services − Profit – make more money and/or reduce cost

• These objectives and outcomes of a digital strategy are actualised by technology, processes and people


Getting Digital Transformation Right Means …


Greater Efficiency

Reduced Cost

Increased Agility

Improved Competitive Positioning

Greater Responsiveness

Increased Customer

Satisfaction Increased Customer Retention

Increased Ability To Provide Innovative Products And

Services To Customers And Partners Across Multiple

Channels

Getting Digital Transformation Wrong Means …


Wasted Investment

Lost Revenue And Profits

Loss Of Customers

Unfulfilled Expectations Wasted

Resources

Frustrated Customers And

Employees Loss Of

Competitive Positioning

Wasted Time and Lost Opportunity

Cost

Digital Enablement Technology Iceberg


In Order to Extend and Expose Capabilities and Business

Processes Outside the Organisation …

… You Will Need a Substantial Amount of Enabling Technology, Systems,

Resources and Supporting Processes and Organisation Change

Successful Digital Operations Require

Investment and Commitment

Business Objectives

Business Operational

Model


Solution Implementation

and Delivery

Management And

Operations

Business Processes

Required Operational

Business Systems

Business Strategy

Systems Design/

Selection

Business IT Strategy

IT Function Strategy

Digital Strategy

Required Operational Processes

Required Support

Business Systems

Systems Design/

Selection

Digital IT Architecture

Digital Strategy In Business And IT Context


Business Objectives

Business Operational

Model


Solution Implementation

and Delivery

Management And

Operations

Business Processes

Required Operational

Business Systems

Business Strategy

Systems Design/

Selection

Business IT Strategy

IT Function Strategy

Digital Strategy

Required Operational Processes

Required Support

Business Systems

Systems Design/

Selection

Digital IT Architecture

Digital Strategy And Enterprise Architecture


Key Digital Design And Operating Principles

• Flexible and adaptable for addition of new features quickly

• Short development cycle for new features

• Ease of static content generation and maintenance with federated and devolved approach - COPE (Create Once and Publish Everywhere)

• Focus on content and value-added information and function for positive customer experience – content and usefulness drives usage

• All information available online

• All transactions available online

• Flexible and adaptable for addition of new features quickly

• Short development cycle for new features

• Measure everything

• Integrated messaging across all channels

• Recognise the offline customers

• Digital is not a project – it is an ongoing organisation-wide activity

• Digital is not easy – it is hard


Creating A Digital Implementation Statement Of Direction

• Creating a well-defined statement of direction for a digital investment involves: −Defining vision and guiding values for digital exploitation

−Define a business strategy that incorporates the use of digital to achieve business results

−Defining a digital functionality roadmap/high-level schedule

−Describing a digital reference architecture

−Assessing organisation readiness for digital

− Identifying the skills gaps that need to be filled

−Managing internal and external expectations

− Producing a business case that draws this information together with identified and quantified benefits


Digital Functionality Delivery Roadmap

• Defines, prioritises and creates an integrated schedule for the delivery of digital functions and related required enabling technologies for a agreed time frame −Need to agree the prioritisation process

− Roadmap is always subject to constraints such as budget, resources

−Dependencies can be identified and tracked

− Capability roadmap can be grouped by business area or process group, external party or channel


Digital Transformation Is Underpinned By Information Technology Changes

• The implementation of digital transformation involves − Implementing new systems and technologies − Building connections to existing applications − IT is fundamental to successful digital transformation

• Complexity increases

• Need to avoid unmanaged complexity

• Unmanaged complexity in IT landscape leads to greater cost and less flexibility − Issues include lack of standards, redundant applications, multiple platforms, and

inconsistent data − Hinders the organisation's ability to respond to business and economic changes − Enterprise architecture defines a set of tools and methods to address this

complexity

• Taking an Enterprise Architecture approach is a means of addressing these issues systematically − Reduces the complexity associated with digital transformation − Ensures work occurs in the context of a target architecture


Digital Transformation

• Involves even greater short-term complexity as: −New and old systems must co-exist

−Digital projects are implemented

− Pilot systems are applied in business functions and units

− There are organisation and process changes

−Applications are reworked


Digital Transformation And Enterprise Architecture

• The management function that drives digital transformation needs to involve the enterprise architecture function in the design and implementation of digital strategy and organisation, process and policies and the creation of a digital architecture


Digital Architecture In Context

• Enterprise Architecture needs to be involved in the development of digital architecture

• Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture September 7, 2016 25


Information and Data Architecture

Information Systems

Architecture

Solutions and

Application Architecture

Business Architecture

Technology Architecture


Service and Integration

Architecture

Security Architecture


• Digital architecture does not exist in isolation entirely separate from an organisation’s overall enterprise architecture

• Digital architecture must exist within the within the wider enterprise architecture context

• Digital architecture links to other architectural components within the IT function and the overall organisation


Digital Architecture In Context – Linkages



Information and Data Architecture

Information Systems

Architecture

Solutions and

Application Architecture

Business Architecture

Technology Architecture


Service and Integration

Architecture

Security Architecture

Overall Architecture Framework Security Standards

Service Operation and Support

Data Architecture

Infrastructure Architecture

Business Context Solution Design

Business Process, Products

Digital Reference Architecture


External Party Interaction Zones, Channels and Facilities

Security, Identity ,

Access and Profile

Management

Responsive Infrastructure

Digital Specific Applications and Tools

Internal Interaction Management

Integration

Operational and Business Systems

Applications Delivery and Management Tools and

Frameworks

System Development, Deployment and

Management

Digital Reference Architecture – Multiple Layers



Level 1 View Of Components Of


Level 2 View Of The Elements Of a Component Of


Digital Reference Architecture – Components

• External Party Interaction Zones, Channels and Facilities – the set of facilities and applications that are presented to those external parties being interacted with and the channels used

• Security, Identity , Access and Profile Management – internal and external security tools and processes

• Responsive Infrastructure – digital application deployment and operating infrastructure

• Digital Specific Applications and Tools – the portfolio of specific tools acquired to deliver and operate digital functions

• Internal Interaction Management – the set of internal applications that are used to manage external party interactions

• Integration – the data, service and process integration layer and associated APIs

• Applications Delivery and Management Tools and Frameworks – set of tools used to deliver and manage digital applications

• System Development, Deployment and Management – the digital application development facility within the organisation

• Operational and Business Systems – the existing organisation operational and business systems


External Party Interaction Zones, Channels and Facilities – Level 2 Elements


Web Pages and Web

Forms

Web Content Management

Web Browsers

Call Centre

Mobile Channels

Preferences

Product and Service

Catalogue

Payments and

Transactions

Web Chat

Social Networks

Search

SMS

Applications

Data Access and

Presentation

Security, Identity , Access and Profile Management – Level 2 Elements


User Directory

Authentication

Single Signon

Logging

Personalisation

Access Control

Certificate Management

Monitoring

Identity and Access

Management

Digital Specific Applications and Tools – Level 2 Elements


Web Content Management

System

Content Authoring

Multi-Channel Analytics

Next Best Action

Data Collection, Storage and

Management

Document Management

Product and Service Catalogue

Management

Payment Gateway and Merchant

Services

Responsive Infrastructure – Level 2 Elements


Resilient and Scalable Firewalls

Resilient and Scalable Load

Balancers

Resilient and Scalable Traffic Management

Resilient and Scalable Web

Servers

Resilient and Scalable Application

Servers

Resilient and Scalable Data

Storage

Data Security and Encryption

Usage and Performance Monitoring

Internal Interaction Management – Level 2 Elements


Business Process Management

Customer Relationship Management

Case Management

Service Management

Resource Management

Product Management

Sales and Marketing

Integration – Level 2 Elements


Service Co-ordination and Orchestration

Application Integration Services

ETL Services

Integration Development and

Deployment

Data Management

Monitoring and Management

Operational and Business Systems – Level 2 Elements


Billing and Assurance

Fulfilment Management

Customer Information and

Relationship Management

Finance Management

Partner Relationship Management

Legal, Regulatory, Environment,

Health and Safety Management

Human Resource Management

Facilities Management

Applications Delivery and Management Tools and Frameworks – Level 2 Elements


IT Leadership and Governance

Strategic and Business Planning

Programme and Project

Management

Sourcing and Selection

Management

Business Process Management

Benefits Assessment and

Realisation

Capacity Planning, Forecasting , Demand and

Supply Management

Organisation Design, Planning

and Management

Infrastructure, Networks and

Communications

Security, Continuity and

Disaster Recovery

System Development, Deployment And Management – Level 2 Elements


Solution Architecture and

Design

Business and Process Analysis

and Design

User Experience Design

Service Provisioning, Service Delivery and

Service Management

Solution Development and

Delivery

Change and Change Management

Testing

Data, Information, Knowledge Asset

Management


• The objectives of a digital (or any reference) architecture are: − Consistent, personalised and rich user experience across all channels

− Reliable and resilience operation

− Ease of management and administration

− Integration of data and services from multiple sources

− Ease of development and deployment of new services

− Collection of usage information for analysis

• This means: − Federated operation with support of multiple services

− Ability to unify services for delivery

− Standard and powerful approach to integration

− Management and administration tools


Digital Reference Architecture – Service Catalog

• Services here mean functions/offers accessed by external parties

• Consider a facility to author and manage functions/offers and enable access by defined set of external parties

• Link services to xActor data models defined earlier


Digital Reference Architecture In Context

• An enterprise digital strategy exists in a wider organisation and IT context − The organisation will have an overall IT strategy to accomplish the

organisation strategy and associated objectives − The IT function will then need its own internal IT strategy that will

structure the function in order to ensure that it can deliver on the wider organisation strategy

− The enterprise digital strategy is connected to the overall IT strategy, the enterprise architecture and the internal IT strategy

− The enterprise digital strategy will be implemented and operated through an digital architecture that is part of the overall enterprise architecture

− This context is important in ensuring that the enterprise digital strategy fits into the overall IT and wider organisational structure

− The enterprise digital strategy exists to ultimately deliver a business benefit and contribute to the achievement of the business strategy

− The strategy must be translated into an operational framework to enable the strategy to be actualised



• Digital Reference Architecture defines a template solution for the underlying and enabling technology solutions and components required

• Reference Architecture defines the target end-state architecture and the set of interim transitional phases required to enable the delivery of the Digital Functionality Delivery Roadmap

• Digital Reference Architecture exists within the context of the organisation’s Enterprise Architecture and other subsidiary architectures


Organisation Readiness For Digital

• Like all major organisation transformation programmes implementing digital initiatives will change the organisation − Cross-functional and business process changes − Technology delivery changes

• The organisation must be ready for digital in three ways: − Be able to deliver digital initiatives that comprise the strategy − Be able to change itself to enable the implementation and

operation of digital initiatives − Be able to operate digital initiatives

• Need to assess the current state of the organisation, its readiness for digital and what is needed to achieve the desired state of readiness


Organisation Readiness For Digital – Assessment Framework


Organisation Readiness For Digital

Digital Programme Delivery and Execution

Digital Management and Governance

Delivery Approach, Methodologies and Processes

Delivery Team Roles

Delivery Organisation Structure and Change Management

Delivery Transfer to Production Operations

Digital Operations

Operations Management and Governance

Operations Business Process Use and Management

Operations Team Roles

Operations Organisation Structure and Change

Management

Operations Service Delivery and Management

= = = = =

Route To Digital


Digital Transition And

Transformation


And IT Strategy

Digital Execution, Delivery and Operations

Vision and Guiding Values for Digital

Exploitation

Business Strategy

Organisation Readiness For

Digital


Digital Capability Delivery Roadmap

Digital Solutions

Supporting Solutions

Measurement and Reassessment

Measurement Framework

Digital and IT Strategy

Digital Organisation Capabilities Organisational Capabilities for

Digital

Strategy, Culture, Change

and Governance

Digital Strategy Development

Digital (and Other) Solution

Governance

Organisation Change for

Digital

Process Management


External Party Interaction

Zones, Channels and

Facilities

Personalisation

Content Management


Access and Profile

Management


Digital Specific Applications

and Tools

Internal Interaction

Management Integration

Operational and Business

Systems

Applications Delivery and Management

Tools and Frameworks

System Development, Deployment

and Management

Digital Solution Delivery

Programme Management

Portfolio Project

Management

Business Analysis and Engagement

Tool Selection and Delivery

Solution Architecture

Solution Delivery

Digital Operation

Service Delivery and

Management

Service Analytics

Organisation Management

Capacity Planning

Customer Experience

Research and Analysis

Marketing and Advertising

Design

Usability

Customer Journey

Management

Analytics and Insight

Single View of the Customer

Analysis and Reporting

Data Collection and

Management

Customer Segmentation

and Insight

Digital Technology

Foundation and Infrastructure

Infrastructure

Security

Integration



Management


Digital Organisation Capabilities

• What the organisation needs to be good at in order to develop and deliver on a digital strategy − There is substantial overlap between these skills and those of

other programme delivery

• Framework to measure where you are and where you need to be

• Develop framework in relation to the digital strategy and what you intend to achieve

• Use to develop plan to address gaps


Digital Organisation Capabilities Organisational Capabilities for

Digital

Strategy, Culture, Change

and Governance

Digital Strategy Development

Digital (and Other) Solution

Governance

Organisation Change for

Digital

Process Management


External Party Interaction

Zones, Channels and

Facilities

Personalisation

Content Management


Access and Profile

Management


Digital Specific Applications

and Tools

Internal Interaction

Management Integration

Operational and Business

Systems

Applications Delivery and Management

Tools and Frameworks

System Development, Deployment

and Management

Digital Solution Delivery

Programme Management

Portfolio Project

Management

Business Analysis and Engagement

Tool Selection and Delivery

Solution Architecture

Solution Delivery

Digital Operation


Management

Service Analytics

Organisation Management

Capacity Planning

Customer Experience

Research and Analysis

Marketing and Advertising

Design

Usability

Customer Journey

Management

Analytics and Insight

Single View of the Customer

Analysis and Reporting

Data Collection and

Management

Customer Segmentation

and Insight

Digital Technology

Foundation and Infrastructure

Infrastructure

Security

Integration



Management


Digital Operational Technology Layers


Customer Access and Interaction

Content Aggregation and Management

Extensions to Existing Systems/Data Integration

Operational Systems

Analytic Systems

Operational/Technology Component Layers


Layer Function

Customer Access and Interaction Presents information and functionality to external parties of agreed types across agreed channels and access mechanisms


Provisions and manages static and dynamic information to external parties Implements COPE (Create Once and Publish Everywhere)

Extensions to Existing Systems/Service and Data Integration

Provides direct access to core data and functions of operational systems

Operational Systems Existing (and possibly new) business systems

Analytic Systems Provides data analytics and campaign management facilities

Indicative View Of The Operational/Technology Components And Interfaces To Realise A Digital Strategy


External Party-Facing Web Accessible

Applications Social Media Platforms

Process, Service and Data Integration

Core System Interfaces

Core Transaction Processing System(s)

Other Operational System(s)

Content Management System

Master Data Management

Campaign Management

xRM

Indicative View Of The Operational/Technology Components And Interfaces To Realise A Digital Strategy

• Initial architecture of the overall technology solution to implement the digital strategy − Provides a basis for solution design − Know what needs to be done −Makes the strategy implementable − Breaks it down into achievable chunks of work – “eat the

elephant” (in the room)

• Architecture needs to be validated, enhanced and modified if necessary by detailed design phase

• Business case is for analysis and design exercise to produce detailed solution architecture and implementation plan − Review available commercial products and tools available −Validate costs and benefits


Operational/Technology Layers And Their Components


Customer Access and Interaction


Extensions to Existing Systems/Data Integration

Operational Systems

Analytic Systems

External Party-Facing Web Accessible

Applications Social Media Platforms

Process, Service and Data Integration

Core System Interfaces

Core Transaction Processing System(s)

Other Operational System(s)

Content Management System

Master Data Management

Campaign Management

xRM

Summary

• Digital transformation is (very) complex

• Enterprise architecture provides the tools and the approaches to manage the complexity of digital transformation

• Management must appreciate the technology focus and the benefits of an enterprise architecture approach

• Early involvement of enterprise architecture increases successes and reduces failures

• Management must trust and involve enterprise architecture

• Enterprise architecture function must accept and rise to the challenge and deliver

• Enterprise architecture function must allow its value to be measured

• Digital architecture does not exist in isolation entirely separate from an organisation’s overall enterprise architecture

• Digital architecture must exist within the within the wider enterprise architecture context



More Information

Alan McSweeney

