leading(digital(transformation with(business(architecture · leading(digital(transformation...
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Leading(Digital(Transformationwith(Business(Architecture
Mike(RosenResearch(VP,(Strategic(Architecture
3(November(2016
Digital'Disruption'– Innovation'Matters
2
Airbus'A380Not'an'airplane,''
but'a'flying'
datacenter700+'applications
Hitachi'
Visualization'
Predictive'Crime'
Analytics
American'Standard'
DXV'Designer'
Fixtures
Low'volume,'highH
margin,'fashion'
products
Takes'hunches'and'
intuition'and'backs'
up'with'data
In(Many(Forms(and(Industries
©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 3
Leadership(Transformation
OmniGExperience(Transformation
InformationTransformation
Operating(ModelTransformation
WorkSourceTransformation
66%(of(CEOs(will(have(
digital(transformation(at(the(heart(of(their(corporate(strategy
80%(of(organizations(will(
overhaul(their("digital(front(door"(
to(personally(support(1,000x(more(customers
65%(of(large(enterprises(will(be(information(based(companies
25%(of(manufacturers(will(generate(over(
half(of(their(revenue(from(digitally(based(
services
10%(of(work(will(be(sourced(from(“skillGbased(
marketplaces”
$1.3T&Invested&in&DX&Initiatives&Worldwide&in&2016
Investment: Collectively,(organizations(will(invest(over($3(trillion(on(3rd(Platform(initiatives(in(2016
Source:'IDC,'2016Success Rates: By(2018,(70%(of(siloed digital(transformation(initiatives(will(fail
Business: 2/3rd of(the(G2000(will(put(digital(transformation(at(the(center(of(their(business(strategy
Technology'Underpins'Digital'Transformation'
4
Will'these'Technologies'Transform'Your'Industry?
Fraud(ReducedCognitive'analytics'reduce'fraud,'waste,'and'
abuse'by'10%,'resulting'in'$300'billion'in'
global'savings'
Public(Safety(Transformed75%'of'State'and'Local'Governments'Use'
Citizen'Data'in'Transportation'Management'
and'RealHTime'Crime'Centers.
Data(Breaches(Mitigated50%'of'the'top'100'global'retailers'encrypt'all'
customer'data'in'flight'and'at'rest,'declaring'
“Trusted'Data'Certification”
Surgery(AutomatedSurgeons'use'computerHassisted'or'robotic'
surgery'techniques'to'assist'in'50%'of'the'most'
complex'surgeries.
Logistics((‘Last(Mile’(Revolutionized60%'of'manufacturers'are'able'to'choose'
between'same'day'supply'chain'and'3D'printed
Field(Service(RevolutionizedField'service'team'staffs'drop'by'40%
In'the'Next'3Q5'Years
The'Internet'of'Things
©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 6
#IDCDirections
The Internet Of Things @ IDC
© IDC Visit us at IDC.com and follow us on Twitter: @IDC12
Connected Car
Smart Products
Smart Utilities
Smart Analytics
‘Makers’‘Users’
Home IoT
Industrial IoT
Information Technology
Operations Technology
Wearables
Platforms
Intelligent Gateways
Consumers
Connected Health Smart Energy
Smart Transportation Smart Factories
Enterprise ‘Edge’
IoT Connected'Device'Forecast
©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 7#IDCDirections
IoT Connected Device Forecast 2015 – 2025*
© IDC Visit us at IDC.com and follow us on Twitter: @IDC17
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* Scenario Based ( 2020 – 2025)
4 8 0 0, connected IoT devices per minuteToday
#IDCDirections
IoT Connected Device Forecast 2015 – 2025*
© IDC Visit us at IDC.com and follow us on Twitter: @IDC18
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Billio
ns
* Scenario Based ( 2020 – 2025)
1 5 2 2 0 0, connected IoT devices per minuteBy 2025
IoT Data'Sources
©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 8#IDCDirections
The Data Sources For IoT: 2015 – 2025
© IDC Visit us at IDC.com and follow us on Twitter: @IDC19
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40
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Classically Created IoT Relevant IoT Actionable
ZByt
es
* Scenario Based ( 2020 – 2025)
Growth From2020 - 2025
1.3 X
3.8 X
8.6 X
Source:'IDC'Feb'2016'analysis'of'CB'InsightsdatabaseW'IDC'industry/function'categorization'of'results'of'search'for'companies'with'keywords''“Machine'Learning”'and/or'“AI”
IoT CognitiveComputing
Next'Generation'Apps
12
“By 2017, 60% of digital transformation initiatives will not be able to scale due to a lack of
strategic architecture”
Sustainable'DX'Requires'Strategic'Architecture
Drivers
• IT'spending'shift'to'LOB• Independent'sourcing'actions'increase'costs'and'complexity
• Need'for'agility'and'quickness
Benefits
• Improved'customer'experience
• Maximum'value'and'synergy
• Speed'and'flexibility• Positioned'for'continual'change
Challenges
• Tactical'imperatives'versus'strategic'concerns
• Culture• LoBs want'to'maintain'local'control
• Inconsistency'and'redundancies
Business
Information
Application
Technology
Supportdecisions
ManageInformation
Providecapabilities
Provideinfrastructure
Security
Protectassets
Performance
Ensureoutcomes
Service
ManageServices
Governance
Manageinvestment
Architecture'Program,'Organization,'Team
Internal Drivers''''''''''''''''''''''''''''''''ExternalBusiness• Strategy'+'Tactics• Goals'+'Objectives
Technology• Costs,'Complexity• Lifecycles
Business• Competition• Regulations
Technology• Trends• 3rd Platform
Strategic'Architecture'Framework
©'IDC'''2015 13
2
Consumer
Provider
Interface Function Data
Implementation
Business Financial
Operational Technology Broker, Integrate, Manage
Charge, Meter, Cost
Functions, Information
SOA, Platform, Infrastructure
Contract
Every Service has four dimensions
Every Service has a consumer, separated from the provider by an interface, and joined by a contract, spanning the 4 dimensions
Broker
Business'
Service
Anatomy'of'a'Service
©'IDC'''2015 14
3
Consumer
Business
Foundational
Interface
Implementation
Technical
Platform
Domain
Supporting
Operations
Contract
Business(Provider)
BusinessQ0riented'Service
Implementation
Business'Oriented'ITaaS Services
©'IDC'''2015 15
©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 16
• RELIABLE(COMPUTING(AND(COMMUNICATIONS
• EMPLOYEE(PROUCTIVITY
• SYSTEMS(RESILIENT(TO(DISASTER
IT'Services
CustomerHFacing'
Business'Services
Ecosystem
Business'Services
• CUSTOMER(ACQUISTION(AND(RETENTION
• CONTEXTUALIZED(CUSTOMER(EXPERIENCE
• NEW(REVENUE(STREAMS
• INFORMATION(AS(A(PRODUCT
• CONNECTED(SERVICES((AUTOMATION)
• NEW(BUSINESS(MODEL
Enterprise'
Business'Services
• DATA(FOR(IMPROVED(DECISION(MAKING
• EFFICIENT(BUSINESS(PROCESSES
• SECURE(CORPORATE(DATA
SERVICE(LAYER BUSINESS(OUTCOMES
CustomerGFacing(&(Ecosystem(Business(Services
What'is'Business'Architecture?! “A(blueprint(of(the(enterprise(that(provides(a(common(understanding(of(the(organization(and(is(used(to(align(strategic(objectives(and(tactical(demands.”(
! A'way'for'business'to'express'its'intentions'consistently'and'unambiguously'while'staying'focused'on'stakeholder'value
! NOT'a'replacement'for• Planning• Business'Analysis• Good'management'and'judgment• Governance• IT'Architecture
©'IDC'''2015 17
What'is'the'Business'Architecture?! Could'we'have'built'a'Business'Architecture'for'this'company'in'1928?
! How'would'it'compare'to'the'BA'today?! How'would'the'Enterprise'Architecture'compare?
Fiat'Lingotto Plant'Q1928©'IDC'''2015 18
Capability
Information Value(Stream
Organization
Foundations
Vision,(Strategy,(Tactics
Policies,(Regulations
Extensions
Stakeholders
Products,(Services
Events
Metrics,(Measures
Initiatives
Processes,(Rules
Elements'of'Business'Architecture
Adapted'from'BIZBOK™'V4.1Business'Architecture'Body'of'Knowledge©'IDC'''2015 19
Capability
Information Value(Stream
Organization
Foundations
Vision,(Strategy,(Tactics
Policies,(Regulations
Extensions
Stakeholders
Products,(Services
Events
Metrics,(Measures
Initiatives
Processes,(Rules
Elements'of'Business'Architecture
WhyWho/When
What
How
When
HowWell
Adapted'from'BIZBOK™'V4.1Business'Architecture'Body'of'Knowledge©'IDC'''2015 20
Business'Architecture'FoundationsStrategic
Strategic'Planning
PartnerRelations Marketing
Predictive'Analysis
Risk'Management Innovation
Core
InventoryManagement
Customer'Management
ProductManagement
Logistics ExchangeNetwork IT
SupportHR Finance Legal
Register'for'Exchange
Advertise'Items
Provide'order'info
ProcessOrder Notify
Independent
ABC$Insurance
Property$&$Casualty
Life$&$Disability
Health
EnterpriseDiagram'Key
Business$Unit
IT
Finance
Marketing
Legal$Dept.
Purchasing
HR
Decomposes$into
Decomposes$into
Decomposes$into
Decomposes$into
Decomposes$into
Decomposes$into
Decomposes$into
Decomposes$into
Decomposes$into
Source:(TSG,(Inc.
CapabilityDefines'‘what’'the'business'does'(not'how).'Capability'maps'provides'a'categorized'and'hierarchical'organization'of'those'capabilities.
Value,Stream
Provides'a'stakeholder'perspective'of'value'accretion'across'their'endQtoQend'interaction'with'the'business.'Typical'external'stakeholders'are'customers,'partners,'and'suppliers.'
Information
Identifies'the'critical'information'(fundamental'business'entities)'that'is'needed'to'support'the'capabilities'and'operate'the'business.'Particularly'important'is'the'information'that'is'shared'across'the'enterprise'to'provide'a'consistent'omniQexperience.
Organization
Identifies'the'organizational'structure'of'the'enterprise'and'the'responsibilities'and'resources'of'each'organizational'unit.'Stresses'the'interactions'and'collaboration'across'business'units'rather'than'the'hierarchical'reporting'structure'of'an'organization'chart.
©'IDC'''2015 21
Business'Architecture'Scenarios! Customer'attrition'reversal! Building'a'360'degree'customer'view! Investment'analysis'and'funding! Merger'and'acquisition'planning'and'deployment! Application'rationalization! Strengthening'the'supply'chain! Business'unit'consolidation
! New'customer'engagement! New'digital'product'or'service'! Business'transformation
©'IDC'''2015 22
Infrastructure
Enterprise'Solution'Framework
Interfaces
Rich'User'Experience
Big Data &
Analytics
Social Business
Socialytics
ExecutiveDecisionSupport
Collaboration,Community,(Exchange
Measurement
Cloud
Internet'of'Things
Mobility
CustomerExperience
Outcomes
Big'Data'
Business'Processes
Interface(Touch(Points
Enterprise'CX'SolutionsStrategic,Business,Architecture
Data/,Information,Architecture
Enterprise,Security,Architecture
Enterprise,Application,Architecture
Enterprise,Technology,Architecture
PerformanceArchitecture
Stakeholder'Perspective! 3rd platform'technologies'are'forcing'business'redesigned'around'user'experience
! Fundamental'Questions:• Given'all'the'possible'actions…
• What'are'the'key'interface'touch'points?
• What'will'provide'the'best'omniQexperience?
• What'information'is'needed,'or'can'be'acquired?
• What'will'provide'the'best'value'for'the'user,'AND'the'enterprise?
! Business'architecture'helps:• Understand'the'customer'interaction'scenarios
• Understand'the'value'proposition
• Explore'and'identify
©'IDC'''2015 24
Value(AddedDifferentiation
Added&cost&/&complexityoutweighed&by&business&value
Consistency,'Interoperability,'Complexity! Identify'what'should'be'common in'order'to'maximize:
• Brand,'customer,'experience,'infrastructure• Efficiency'and'effectiveness
! Identify'what'could'be'different in'order'to'maximize:• Channel,'customer'segmentation,'geography• Market'differentiation,'competitive'advantage
! Define'interfaces'to'extend'the'common'to'support'valuable'differentiation
25
DX(&(3rd Plaftorm Services
ExtensibiliyInterface
Catalog&of&integrated,&brokered,&managed&IT&Business&Services
DX(&(3rd Plaftorm Services
Common(Business(Services
Common(Infrastructure
• EVERY place'that'something'is'different'results'in'added'costs'and'complexity
• Architecture'provides'a'framework'for'cost/benefit'analysis'
Integrated(OmniGExperienceCommon&where&possible.&Different&where&competitive.
Impact'Analysis:'Synergy'and'Conflict
Advertise'Items
Provide'order'info
ProcessOrder Notify Advertise'
ItemsProvide'order'info
ProcessOrder NotifyAdvertise'
ItemsProvide'order'info
ProcessOrder Notify
Customer'Management
Customer'AcquisitionAttraction
Data'Collection
Validation
Customer'InformationCreation
Removal
Maintenance
Customer'ServiceProblem'Resolution
History'Tracking
Outreach
Customer'ProfilingAggregation
Analysis
Demographics
Value'Stream'A Value'Stream'B Value'Stream'C
Capability(to(Value(Stream(Mapping(tells(us(that(the(same(capability(is(used(in(multiple(places
Synergy:(This(enhancement(could(add(value(elsewhere.
✓ ✗ Conflict:(The(proposed(change(would(break(this(existing(value(stream."
Strategy(requires(an(enhancement(to(support(a(new(customer(experience
©'IDC'''2015 26
Strategic'Perspective
! Strategic'execution'is'a'weak'link
! Strategic'fidelity'is'worse• By'the'time'the'‘strategy’'it'passed'down'2'or'3'levels,'as'much'as'50%'of'the'intent'and'context'is'lost
! Business'architecture'helps:• Quickly'evaluate'options'for'strategic'direction• Clearly,'unambiguously'articulate'strategic'intent• Define'initiatives'to'implement'the'strategy
“In(preparing(for(battle,(I(have(always(found(that(plans(are(useless,(but(planning(is(indispensable.”( Dwight,D.,Eisenhower
Only'37%'of'executives'say'their'companies'are'“very'good'or'excellent”'at'strategic'execution
Only'23%'blame'current'economic'conditions'as'a'major'factor'in'their'lack'of'executionSource:''2010'HBR'Survey'of'1000'executives
©'IDC'''2015 27
suggests
scenarioexploration
Capability
Vision,(Strategy,(Tactics
Initiativessynergies,&conflicts
priorities
support
Experience,Events
engage
Information
support
Metrics,(Measures
ensure
Organization
implement
Value(Stream
Stakeholders
engage Products,(Services
Enhancing'Design'Decisions
©'IDC'''2015 28
Make'RBS'a'Great'Bank
Retail'Customers
Pay'Bills
Date,'email,'adQhoc,'…
Bill'Payer,'Overdraft,'fraud
Vendor',amount,'history,'time','location
Bill'payer,'trending,'acct'history,'
overdraft,'fraud,'compliance…
Mobile'bill'pay
Adoption'%,'satisfaction,'error'rate,'failure'rate,'abandon'rate
Business'architecture'enables'effective'initiative'planning'and'improved'strategic'execution'
! Identifying'the'most'important'things'to'change'/'enhance'in'order'to'achieve'strategic'outcomes'and'improve'customer'experience'and'value
! Maximizing'synergies'and'avoiding'conflicts! Creating'metrics'to'measure'outcomes
©'IDC'''2015 29
Business'/'IT'Transformation
Information'Map
Business(Architecture IT(Architecture
Data'Architecture
Value'MapCompetitors
External
Business1DomainE
get1consolidatedinformation
consolidatedinformation
req.1land1lines1billing1info
land1lines1billing1info
get1billing1info
billing1info
add1service
change1service
req1service
info
service1info
reql1fault1info
fault1info
req.1marketing1info marketing1info.
req.1mobil1billing1infomobile1billing1info.
req.1customer1info.
updatecustom
erbilling
Internet1billing1info
req.1Internet1billing1info
customer1info
Service1Provis ioning
Customer Portal
Billing
FaultManagement
MobilePhones
Internet
Land1Lines
CustomerManagement
Marketing
Process'and'Case'Mgmt,UI'Deployment
Implemented(by
Capability'Map
Party&management&service
Document&management&service
Motor&Vehicle&Report&(J2EE)
Document&management&system&(FileNet)
Policy&Management&service
Location&management&service
Commercial&auto&Policy&and&Products&administration
(CICS,&mainframe)
Commercial&property&Policy&and&Products&administration&
(CICS,&mainframe)
Commercial&property&
rating&(CICS,&mainframe)
Centrus&(standalone&Java)
Insurance&to&value&amount&for&a&
location&calculator&(VB6,&Microsoft)Policy&Financials&
Database
Existing&Systems
Business&Services
Business&Components
Integration&Access
ISO&Public&Protection&Codes&Database
Commercial&auto&rating&(VB6,&
Microsoft)
Generate&Policy¬ice&
(VB6,&Microsoft)
SOA'Business'Services
©'IDC'''2015 30
Three'Actions'Toward'Digital'Transformation
31
Create(expectationG
altering(customer(experiences
1
Use(information(as(a(competitive(
advantage
3
Create(new(revenue(streams(with(connected(
services
2
Business'Architecture'provides'the'context'for'sustainable'transformation
Architecture'Value'Proposition
©2015'IDC''''''''''''32
Enterprise Scope Consistency Clarity Cost + Complexity Risk Mitigation
Value Proposition
StrategicArchitecture
DX Strategy
Portfolio
Management
Business / IT
Roadmap
Strategy to
ExecutionSourcing
3rd Platform Business, IT, and Digital Transformation