How to direct your investments for digital transformation
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Short discussion of Conexiam's method to assess and recommend architecture work packages to realize digital transformation projects.
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How to direct your investments for digital transformation
- 1. How to Direct your investments for Digital Transformation Chasing the Right Architectural Trade-Offs Sriram Sabesan 1/23/2017 1
- 2. 1/23/2017 2 04INTRO + Traversing the standards + Supporting 4 vectors of CISR study + Creating the Path Take Aways Pages 29–23 + Business Cycle Alignment + Capability-Investment Continuity + Governance for Transformation Guiding Trade-Off 03 Pages 24–28 + Parameters of Measurement + Assessment + Customer Centricity + System Boundaries (PACE Variant) The Method 02 Pages 10–23 + Characteristics + Benefits + Challenges + Who is & Is not Digital Transformation 01 Pages 5–9Pages 3–4 What do you get out of this?
- 3. Your Presenter: Sriram Sabesan • Sriram Sabesan, Consulting Partner • 20+ years in Consulting • Active in improving architecture profession • IEEE • Customer eXperience & IASA • Active in Open Group • Board of The Open Group • Open CA Certification Board • DBCX and Architecture Forum • Co-Author • World Class EA: A Leader’s Approach to Establishing and Evolving an EA Capability • Digital Transformation Strategy to Implementation using Open Group Standards • World Class EA: A Practitioner’s Approach to Developing Enterprise Architecture Following the TOGAF® ADM • Contact: sriram.sabesan@conexiam.com 1/23/2017 3
- 4. Conexiam • Management consulting company • Delivers value through an enterprise architecture approach • Operate in North America, Europe & the Middle East • Start with Open Standards & public best practices • IT4IT, TOGAF, SABSA, APQC, BMC, Strategy Map • Extend & integrate open practices with in-house method • Navigate, Pilot & Atlas • Enabled by Avolution ABACUS • We work to evolve these standards Key work is demonstrating how they are used • Leader’s Approach to Establishing & Evolving an EA Capability • Practical Guide to SOA & TOGAF • Integrating Risk and Security within an Enterprise Architecture 1/23/2017 4
- 6. Characteristics of Digital Organization • Both backbone blocks are extremely important for success. • Most organization struggle in maturing these, leading to partial success in External Engagement or creation of Digital Products / Solutions • Common issues: Continued Financial Allocation, Consistent Trade-off Instructions to Product Owners / Project Managers 1/23/2017 6 Operational Backbone (Location Agnostic, Easily Replaceable, Highly Scalable) Digital Backbone (End-to-End Visibility into Business Processes) External Engagement (Transforms Go-To Market Strategy) Digital Products (Transforms Business & Revenue Model) Inspired by CISR Working Paper on Digital Organization
- 7. Benefit of Digital Organization 1/23/2017 7 Drives Agility and Improves MarginOperational Backbone (Location Agnostic, Easily Replaceable, Highly Scalable) Digital Backbone (End-to-End Visibility into Business Processes) External Engagement (Transforms Go-To Market Strategy) Digital Products (Transforms Business & Revenue Model) Revenue and Margin
- 8. Where is the Challenge? • Available Investment $ directed to “External Engagement” and “Digital Products” • Unclear on Assets to be Protected • Gaming Experience vs Consoles • Trust vs Transactional Management • Shopping Experience vs Unique pieces 1/23/2017 8 Operational Backbone (Location Agnostic, Easily Replaceable, Highly Scalable) Digital Backbone (End-to-End Visibility into Business Processes) External Engagement (Transforms Go-To Market Strategy) Digital Products (Transforms Business & Revenue Model)
- 9. Digital Enterprise and Digital Fluidity • Which Enterprise is not Digitized? • The moment automation is introduced to a business process or an activity, there is digitization. • So, pretty much every enterprise has some digital footprint. • What matters? • Fluidity: Ability to change course with ease; feedback & correction loop is instantaneous, not noticeable. 1/23/2017 9
- 11. Method Steps and Summary • Enterprise Context • Purpose • Value • Sustainability • Assessment • Agility Parameters • Follow vs Lead • Assessment to Recommendation • Service Design Template • A variant of Pace Layering – System Boundaries 1/23/2017 11
- 12. Context, Sustainability, Purpose & Value • Context • The problem the enterprise is solving for & why • Other players solving same or similar problem • Sustainability • Continue to pursue stated purpose • Purpose • Architecture to enable a change & sustain the enterprise • Value • Architecture is used and value is realized 1/23/2017 12
- 13. Approach Summary • Align to Purpose • Align to Business Cycle • Cross-Employ techniques for assessment • Develop Roadmap • Direct with Customer Experience 1/23/2017 13
- 14. Four Agility Parameters • Frequency Changes to process Operational Stack • Recency & Relevance Data & Information Business Rules 1/23/2017 14 • Depth and Breadth of Impact Number of moving parts to notify / update • Geographic Spread • Scale • Performance • Connectivity
- 15. Two Comparison Parameters • Follow Best Practice • Best Practices from leading solutions meets my needs. • Focus on the seams – how the solutions are integrated. • Find ways to eliminate “swivel chairs”. • Defines Me • I create my own • Breaking Ground • Can’t afford heavy overhead • We are the best 1/23/2017 15 • Share of Wallet and Value • Essential Portfolio • Flexibility to “In-source” and “Out-source”
- 16. Assessment And Realization: Method • Score for ability & appetite to change and retain • Digital Strategy (DSB+I) • Brand Identity (BI) • Customer Experience (CX) • Current Assets (Ac) • Current Skills (Sc) • Process Change (PD) • Information Change (ID) • Technology Change (TD) • Supplier & Channel Change (Cc) • Freedom to Invest (F2I) • Time to Release (T2R) * See Notes Inspired by Digital Transformation article by V Srinivasa Rao, DataQuest, February 2014 issue and Digital Capability Index, Forrester Research
- 17. Service Design Map Explained 1/23/2017 17 Outside-Out & Outside-In Identify Intent Identify Patterns Anticipate Research Provide Experience Continuity! Friction in hand-off from creative design to delivery! Inside Out What am I protecting? What am I tracking? What am I controlling? Enable Decision Continuity! Empower Frontline! Analysis What is the gap between customer success factor and process owner’s success factor? Is that architecturally sound? What do I need to anticipate and identify patterns? – Enable Fluidity!
- 18. 1/23/2017 18 Stage / Step Step 1 Step 2 Step 3 Step … Step n External: User (Customer or Machine) External: Influencers (Internet Search / Face-to-Face Friends / Social Media) Expect / Think / Frame Do Reality / Feel Channel / Touchpoint Internal: Do: (Employee, Partner, Website, Ads/Packaging) Internal Processes & Owner Touchpoint Owner Employee: Feel Other (internal) interacting Teams Information Technology Systems Policies / Rules Metric (Customer Measure) Metric (System Measure for each system) Metric (Employee Measure) Points to Ponder Identify the Persona (Actor), it is okay to repeat the name across all stages Line of Interaction Line of Visibility (for the Enterprise) Everything Below this point is Internal Systems, Process & Actions (explore Silo’s here) Outside-Out Exploration. Point of Engagement Assessment Assessment Depends on the System. Either end point or interaction point. Assessment Identify All Identify All Include RACI, Handshakes & “sleep” times For each stage, document pace of change & triggers of change Outside-Out&Outside-InInside-OutAnalysis Inspired by Service Design & Customer Journey models from Practical Service Design, California College of Arts, and uie.com
- 19. 1/23/2017 19 Stage / Step Touch-Point-Zero First Contact Step … First Use User: Artist, Spouse, Manager, Lab Tech Need a Memorable Piece, Specimen Tracking Connoisseur, Spouse, Employee, Lab Tech Influencer: Artists, Friends, Colleagues What was I thinking when I spoke to / saw blah! Think Sleek, Fits any environment, Conversation Piece, Maintainable Inspiring visuals; speaks to me. Do Internet Search, Talk Browse website View Installation, Open Package Feel Aha! Or Time-loss Not sure whether they would sell small orders. Can I see it being used? Wow! I need to tell the World! Channel Search Engine, Phone call, Email Corporate Website / Phone Call. White Glove Delivery, Post Content Admin: Sales Rep: Upkeep website / Tell a story Redirect across microsites! Sorry – here is the number of other team. Logistics Partner Internal Processes & Owner Channel Manager(s) Pre-Sales and Marketing Line of Business Owners Touchpoint Owner Line of Business Channel Manager(s) Logistics Manager Feel: Content Admin: Sales Rep: Too many duplicates. Maintenance Nightmare. Wish I had one Content Management & eCommerce system. Wish I closed the call. Logistics Provider: Wow! Other (internal) interacting Teams Inventory Managers of each of Line of Business Finance Customer Support Information Technology Systems Content Management Systems eCommerce Team Content Management System Middleware and Integration Tracking and Notification systems Revenue Recognition Web Content Systems Policies / Rules Tight Cash Flow Control Post on my site Points to Ponder Can web traffic & inventory help cash flow? Why not collate from the web?
- 20. Using System Boundaries 1/23/2017 20 System of Engagement System of Integration System of Record Workload Aware Infrastructure Services SystemofPerception Infrastructure Services 1. System of Engagement • Productivity, Experience and Delight • Customer Interaction • Front Line Enablement (Partners, Employees) • Instrument, Learn, handle “Spread” 2. System of Record • Protect Right Assets • Financial Control • Asset Management (customer, employee, material) • Not the differentiators 1 2
- 21. Using System Boundaries 1/23/2017 21 System of Engagement System of Integration System of Record Workload Aware Infrastructure Services SystemofPerception Infrastructure Services 3. Infrastructure Services • Bare Metal • Virtualized • Software Defined • Enable “Location Unaware” data and applications • Enable “Sandboxes” • – Handheld, IoT, Servers 3 3
- 22. Using System Boundaries 1/23/2017 22 System of Engagement System of Integration System of Record Workload Aware Infrastructure Services SystemofPerception Infrastructure Services 4. System of Perception • Create Standards to enable Analysis • Enable “Isolation” & “Flexibility” • Architecting for the Unknown • Perform “what-if”, highly transient • Human interaction • Machine behavior • Potential Revenue Stream • But don’t work for it… get everything else right 4
- 23. Using System Boundaries 1/23/2017 23 System of Engagement System of Integration System of Record Workload Aware Infrastructure Services SystemofPerception Infrastructure Services 5. System of Integration • Home of most rules & processes • Guide solutions to manage impact of RDF • Separate Business Transaction from Insight Transactions • Not just “ESB” or “MQ” 5
- 24. Trade-off Before Key Business Decisions 1/23/2017 24
- 25. Business Cycle Alignment 1/23/2017 25 • Architecture supports change • Architecture simplifies decisions • Architecture reduces burden of value realization Budget Planning Budget Preparation Budget Allocation Budget Control Architecture to Support Strategy Architecture to Support Portfolio Architecture to Support Projects Architecture to Support Solution Delivery
- 26. Business Cycle Alignment 1/23/2017 26 Budget Planning Budget Preparation Budget Allocation Budget Control Architecture to Support Strategy Architecture to Support Portfolio Architecture to Support Projects Architecture to Support Solution Delivery • Portfolio decision is very important • Defines what not to do immediately and why • Finds resources to invest in transformation • Effort to track and report value realization to be added explicitly to the portfolio
- 27. Business Cycle Alignment 1/23/2017 27 Budget Planning Budget Preparation Budget Allocation Budget Control Architecture to Support Strategy Architecture to Support Portfolio Architecture to Support Projects Architecture to Support Solution Delivery • Find money – with Architecture to Support Portfolio • Realize Value – Guide Delivery
- 28. Focus Why & What to Invest 1/23/2017 28 Sustain (At Par with Others) Sustain (Same level of Advantage over Others) Improve (Create New Competitive Advantage) Improve (Create New Revenue Streams) • Identifying opportunities for “new revenue” stream is the hardest and takes time • Watch for transitions from “Improve” to “Sustain” bucket • Improve includes innovation & new digital solutions • Needs a graceful transition of portfolio – People, Hardware / Software, Applications • Always balance for business continuity
- 30. Remember the Time to Value 1/23/2017 30 Change Introduced Initiation of Operations Value Leveling Value Realization / Maximization Time ValueRealized Current Solutions It is all about shrinking time to Leveling value • Change has to be supported by time to get to same value & realizing. • Common gap – missing value monitoring & realization efforts in the portfolio. Recommendation to change
- 31. Remember the Time to Value 1/23/2017 31 • Architecture Project ends well before Value is Realized. If no value realization validation project is added to the portfolio, the architect is introducing a new gap. • A recommendation after the decision is of no value. Align to the business cycle. • Understand when to deep dive – use Service Design at appropriate time. • Keep your capabilities aligned to investment buckets. Capability for analysis and modeling is acceptable. However, delivering value and differentiation outweighs any other usage of capabilities. • Use the concept of system boundaries to pay attention to what matters – during operations
- 32. Using System Boundaries 1/23/2017 32 System of Engagement System of Integration System of Record Workload Aware Infrastructure Services SystemofPerception Infrastructure Services • Govern this “T” • Informs and Isolates the impact of RDFS • Manage Security, Throttling, Monitoring • Business Continuity & Decision Support • Maximize Creativity in System of Engagement
- 33. There is no “It Depends” • As architects, our one and only job is to • Protect Value • Drive a meaningful change • Be Specific – Eliminate Noise • Allow room for creativity 1/23/2017 33
- 34. Modern Concepts & EA Capability • Problem – Solution fit • Organizational Change – Purpose Driven Architecture • Product – Market fit • SMACIT solutions – Experience & Commercial Activity Demand • RFDSS • Recency, Frequency, Depth, Spread, Share 1/23/2017 34
- 35. Q & A Send your feedback to: sriram.sabesan@conexiam.com Visit us at: www.conexiam.com 1/23/2017 35
Editor's Notes
- Challenges: Disney’s room key and Alaska’s tag
- Appetite to get benefits out of current assets informs us strategy to employ – the company is interested in migration over rip-and-replace. Coexistence is a challenge to address. Scale of 1 to 5. 1 being okay to change all assets and 5 being want to reap maximum benefits. When the value is 1, we can go to cloud easily by running a parallel team on next generation technologies. Lesser the freedom to invest in transformation, the ability to influence rate of change comes down or informs the need to look for managed services. Scale of 1 to 5, 1 being limited freedom and 5 being total freedom. Above two forms a trade-off condition for ability to grow and change with time. A value of 5 in freedom to invest and 1 in current asset utilization is ideal to accelerate digital transformation. Opposite end of values is a path to irrelevancy. A value of 3 to both is a clear indication of risk aversion, highly selective migration to SMAC & IoT solutions. Difficulty to change process. Scale of 1 to 5. 1 = very easy to change and 5 = very difficult to change. A score of 5 is good for some, bad for some. Good = Revenue and tax reporting. Bad = Product release or website change. Target state of 1 informs the need to employ Microservices. Difficulty to change Supplier & Channel. Scale of 1 to 5. 1 = easy to employ multiple channels, 5 = mostly single channel, difficult to change or add channels. Informs the impact of suppliers and partners in the value chain. Higher the difficulty, higher to cost of change. Also informs the number of layers of security and trust to establish. Difficulty to manage change or release. Scale of 1 to 5. 1 = easy to manage change. 5 = very difficult to manage change. Directly informs separation of duties across systems, suppliers and partners. A value of 5 is good for scenarios like inventory acceptance and quality control and bad in scenarios like customer engagement. Control over Brand Identity: Scale of 1 to 5, 1 = no impact to brand identity and 5 = high impact to brand identity. Informs how to measure and engage partners – and focus on right assets. 1 is acceptable value for expense approval process. 5 is the required value for call center services (more so, when provided by a partner or managed service provider). Anything in 1 is a potential candidate to send to a managed service provider. These assessments are applied at a process level, then to applications (technology and information). The assessment is taken for ‘as-is’ state and desired state, in comparison to peers by process or capability. The gap between the states is supported by data from service-design template, to fine-tune the focus on pain points and frictions in the organization. We have a portfolio that balances investment profile of the company and its values. Delivery and project control is clearly defined. Project Managers will do the right trade-off when delivery timeline is challenged – protect future value, not delivery scope.
- All channels – Omni vs Multi SoR: Legacy and typically slow moving… need to inject agility here. Can SoRs become Microservices – well not always… think of functional needs… end of day, month, quarter book keeping vs transactional integrity. SoRs typically drive most of the sustain. It is about Mode 1 operations. We define Mode 1 more from sustain parity or current level of differentiation. SoE is typically the differentiator and experimentations. Mostly Mode 2.
- SoP – all insights about product usage, process metrics, machine behavior, machine learning, etc., It has three purposes – record, analyze, and present. Easier said than done are the infrastructure services – mainly because of the considerations it imposes on software developers, financial controllers People who have no technical knowledge are deciding choice of dark fibre usage and load shifting characteristics. Remember non-functional is the new functional!
- SoP – all insights about product usage, process metrics, machine behavior, machine learning, etc., It has three purposes – record, analyze, and present. Easier said than done are the infrastructure services – mainly because of the considerations it imposes on software developers, financial controllers People who have no technical knowledge are deciding choice of dark fibre usage and load shifting characteristics. Remember non-functional is the new functional!
- This is the glue to hold the speeds between the two. Holds the organization together, enables transition through mode 1 and mode 2. It also supports innovation – by isolating the organization from experimental and accidental data impacting production. Tell the story of paid MQ connectors and stripping of internal book transfers.
- Any recommendation and data supporting after the day of decision is actually leaving a record of mistakes made by leadership. It is a sure path to finding a new job, not doing the right thing.
- Any recommendation and data supporting after the day of decision is actually leaving a record of mistakes made by leadership. It is a sure path to finding a new job, not doing the right thing. ROI is always on cost benefit this year. It is not about IT go live date and it is all about business go live date. Loss of revenue is higher as compared to cost of operations. (Amazon Kindle) Migration to cloud may force use of an anti-pattern in the short run (integration via data store). It is perfectly acceptable, considering investment to acquire skillset and delivering business value.
- The trick lies in two places – focus on portfolio & guide the product owner / project manager to make appropriate trade off – never to lose value.
- Redundant spend is another factor that can find you money Capability simplification Cost to stop may be higher than saving from stopping… so go to reframe the problems…
- This is the glue to hold the speeds between the two. Holds the organization together, enables transition through mode 1 and mode 2. It also supports innovation – by isolating the organization from experimental and accidental data impacting production.