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Building an adaptive enterprise architecture capability for our rapidly evolving digital world

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This is the first part of a two part co-presentation by Rob Livingstone (Principal, Livingstone Advisory) and Dr Asif Gill (University of Technology Sydney) delivered at the CFOEdge conference in Sydney on November 9th, 2017

New, digitally enabled ways of working and living require a fundamental shift in the design and implementation of enterprise strategies and architectures. Problem is, many established organisations struggle with the lack of adaptability and agility of their IT infrastructure and associated technologies.

Question is, how can organisations rapidly overcome this challenge without:
- elevating cost,
- increasing cyber and business risk,
- eroding business value or
- compromising effective governance in the face of increasing disruption, change, risks and uncertainty?

In this presentation, a proven, robust and scalable approach to building a sustainable adaptive enterprise architecture capability to drive continuous efficiency and innovation will be explored.

This presentation was followed by Dr Gill's presentation a real-world case study of involving a major Australian financial services organisation’s journey of building this adaptive enterprise architecture capability.

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Building an adaptive enterprise architecture capability for our rapidly evolving digital world

  1. 1. Building an Adaptive Enterprise Architecture Capability for our Rapidly Evolving Digital World © All rights reserved
  2. 2. Presentation overview LA is using an adaptive enterprise design framework (The Gill Framework™ V3) authored by Dr Asif Gill to help my clients in building adaptive capabilities. This is an open source framework – which Asif Gill will be exploring in the 2nd half of this presentation. For my part, I will be sharing my insights and experience in helping organisations along their journey of building resilience. © All rights reserved
  3. 3. My presentation segment explores: 1. Focus question 2. The declining value of precedence in fast changing ecosystems 3. Key attributes of the Adaptive enterprise. 4. Adaptive enterprise strategy and architecture capability for continuous innovation and efficiency 5. Key role that CFO has in guiding the adaptive enterprise journey © All rights reserved
  4. 4. 1. Focus question for the C-suite © All rights reserved livingstoneadvisory.com
  5. 5. © All rights reserved Focus question for the C-suite: How can we design and implement a robust, adaptive and scalable enterprise-wide continuous change capability
  6. 6. © All rights reserved Focus question for the C-suite: How can we design and implement a robust, adaptive and scalable enterprise-wide continuous change capability that is itself intrinsically adaptive, agile, internally coherent, secure, customer centric and well understood by all
  7. 7. © All rights reserved Focus question for the C-suite: How can we design and implement a robust, adaptive and scalable enterprise-wide continuous change capability that is itself intrinsically adaptive, agile, internally coherent, secure, customer centric and well understood by all so that our organisation can sense, anticipate and respond to expected and unexpected changes
  8. 8. © All rights reserved Focus question for the C-suite: How can we design and implement a robust, adaptive and scalable enterprise-wide continuous change capability that is itself intrinsically adaptive, agile, internally coherent, secure, customer centric and well understood by all so that our organisation can sense, anticipate and respond to expected and unexpected changes in order that the organisation and its staff will excel in the face of continuous change and increasing uncertainty?
  9. 9. 2. The declining value of precedence and ‘best practice’ in fast changing ecosystems © All rights reserved livingstoneadvisory.com
  10. 10. © All rights reserved In times of rapid change, experience could be your worst enemy. J. Paul Getty 2. The declining value of precedence and ‘best practice’ in fast changing ecosystems
  11. 11. © All rights reserved Adaptive Enterprise Strategy Journey Management Your journey for building an adaptive business strategy and execution capability in a rapidly changing and increasingly digital world. (2017) By Asif Qumer Gill & Rob Livingstone. 2. The declining value of precedence and ‘best practice’ in the face of constant change
  12. 12. © All rights reserved Adaptive Enterprise Strategy Journey Management Your journey for building an adaptive business strategy and execution capability in a rapidly changing and increasingly digital world. (2017) By Asif Qumer Gill & Rob Livingstone. In the rapidly changing ‘new world of IT’ – driven by multiple, concurrent influences - reliance on ‘best practice’ can be problematic, if not risky, for your organisation. Precedence is of limited value in fast changing ecosystems 2. The declining value of precedence and ‘best practice’ in the face of constant change
  13. 13. 3. Key attributes of the Adaptive enterprise © All rights reserved livingstoneadvisory.com
  14. 14. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 1. Is a more proactive approach in contrast to reactive change management approaches and practices.
  15. 15. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 1. Is a more proactive approach in contrast to reactive change management approaches and practices. 2. Continuously tests the validity of the key business, risk and technical assumptions on which the change initiative was originally based.
  16. 16. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 1. Is a more proactive approach in contrast to reactive change management approaches and practices. 2. Continuously tests the validity of the key business, risk and technical assumptions on which the change initiative was originally based. 3. Engrains the capability for active monitoring, predicting, and adapting to changes or opportunities with an appropriate degree of clarity, accuracy and in a well-orchestrated and timely manner.
  17. 17. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 1. Is a more proactive approach in contrast to reactive change management approaches and practices. 2. Continuously tests the validity of the key business, risk and technical assumptions on which the change initiative was originally based. 3. Engrains the capability for active monitoring, predicting, and adapting to changes or opportunities with an appropriate degree of clarity, accuracy and in a well-orchestrated and timely manner. 4. Ensures that at no stage are there material inconsistencies or misalignments between the organisation’s mission, strategies, tactics and operations
  18. 18. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 5. Embodies feedback (error correcting) and feedforward (predictive, proactive) capabilities.
  19. 19. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 5. Embodies feedback (error correcting) and feedforward (predictive, proactive) capabilities. 6. Supports a culture of continuous learning and improvement.
  20. 20. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 5. Embodies feedback (error correcting) and feedforward (predictive, proactive) capabilities. 6. Supports a culture of continuous learning and improvement. 7. Builds cross-functional capabilities across silos
  21. 21. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 5. Embodies feedback (error correcting) and feedforward (predictive, proactive) capabilities. 6. Supports a culture of continuous learning and improvement. 7. Builds cross-functional capabilities across silos 8. Is intrinsically non-adversarial – whole of business common intent
  22. 22. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 5. Embodies feedback (error correcting) and feedforward (predictive, proactive) capabilities. 6. Supports a culture of continuous learning and improvement. 7. Builds cross-functional capabilities across silos 8. Is intrinsically non-adversarial – whole of business common intent 9. Drives fast iterations of value delivery
  23. 23. © All rights reserved 3. Key attributes of the Adaptive enterprise The adaptive capability: 5. Embodies feedback (error correcting) and feedforward (predictive, proactive) capabilities. 6. Supports a culture of continuous learning and improvement. 7. Builds cross-functional capabilities across silos 8. Is intrinsically non-adversarial – whole of business common intent 9. Drives fast iterations of value delivery 10. Rarely exists in organisations that operate within top-down, functionally aligned structures and fixed strategic management approaches.
  24. 24. 4. Adaptive enterprise strategy and architecture capability for continuous innovation and efficiency © All rights reserved livingstoneadvisory.com
  25. 25. © All rights reserved 4. Adaptive enterprise strategy and architecture capability for continuous innovation & efficiency Questions to be asked of peer executives: How do we, as an organisation, measure the value of responsiveness, adaptability and agility?
  26. 26. © All rights reserved The Gill Framework® is an agile or adaptive meta-framework for architecting Adaptive Enterprises as Adaptive Enterprise Service Systems. Dr. Asif Gill is the author of this unique framework, which can be freely used for internal purposes within any organisation, and at no cost by just acknowledging the source and copyright holder (Dr Asif Q. Gill). Initiatives are executed through adaptive value streams of initiate-journey-close feedback loops for continuous efficiency and innovation. • Requirements continuously emerge in this value chain (which represents the ‘real world’), which are managed via adaptive enterprise requirements management capability. 4. Adaptive enterprise strategy and architecture capability for continuous innovation & efficiency
  27. 27. 5. Key role that the CFO can play in building an enterprise-wide adaptive capability © All rights reserved livingstoneadvisory.com
  28. 28. The journey for developing an adaptive capability can have a profoundly positive impact on intra-organisational and customer engagements as it: • Requires the ongoing collaboration between multiple stakeholders within and across your organisation in a well orchestrated, agile manner without compromising effective governance. • Involves the identification and co-creation of realisable business value, which simultaneously includes aspects such as revenue, cost, risk and governance. • Improves enterprise resilience and information security capabilities as the evolution of an adaptive capability is a deeply integrated activity across all aspects of the organisation 5. Key role that the CFO can play in building an enterprise- wide adaptive capability © All rights reserved
  29. 29. In Summary • Adaptive strategy and practice drive organisational adaptability. • Work towards building the value chain of integrated adaptive strategy, architecture, governance, project delivery and service operations capabilities • The journey is far more important than the destination (to state the obvious!) • This journey is, itself adaptive. • It is not a ‘boil the ocean’ or major ‘transformation’ initiative. © All rights reserved
  30. 30. In Summary • Adaptive strategy and practice drive organisational adaptability. • Work towards building the value chain of integrated adaptive strategy, architecture, governance, project delivery and service operations capabilities • The journey is far more important than the destination (to state the obvious!) • This journey is, itself adaptive. • It is not a ‘boil the ocean’ or major ‘transformation’ initiative. © All rights reserved
  31. 31. Rob Livingstone Advisory Practice Principal Fellow, University of Technology, Sydney CONTACT DETAILS PHONE: Landline: +61 2 8005 1972 Mobile: +61 419 632 673 EMAIL: Rob Direct: rob@livingstoneadvisory.com Web: www.livingstoneadvisory.com

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