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Digital Transformation And Enterprise Architecture

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Digital transformation - extending and exposing business processes outside the organisation - by implementing a digital strategy – a statement about the organisation’s digital positioning, operating model, competitors and customer and collaborator needs and behaviour through the delivery of digital solutions defined in a digital architecture – a future state application, data and technology view to achieve digital operating status - is potentially (very) complex.

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.

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

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

The early involvement of enterprise architecture increases successes and reduces failures. Management must trust and involve enterprise architecture. The enterprise architecture function must accept and rise to the challenge and deliver. The enterprise architecture function must allow its value to be measured.

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Digital Transformation And Enterprise Architecture

  1. 1. Digital Transformation And Enterprise Architecture Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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 …
  6. 6. 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
  7. 7. September 7, 2016 7 Value of Enterprise Architecture Appropriate and Effective Enterprise Architecture … 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
  8. 8. Enterprise Architecture And Digital Transformation • Enterprise architecture provides the tools and the approaches to manage the complexity of digital transformation September 7, 2016 8
  9. 9. 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
  10. 10. External Interactions And Internal Organisation Reality September 7, 2016 10 External Organisation Interactions Internal Organisation Reality
  11. 11. Digital Transformation Is About … September 7, 2016 11 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:
  12. 12. Objectives Of Digital Strategy September 7, 2016 12 Digital Strategy Objectives Relationships And Information Commerce And Transactions Content and Management Marketing and Communications Efficiency Brand Innovation Profit Achieved By Technology Processes People
  13. 13. 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 September 7, 2016 13
  14. 14. Getting Digital Transformation Right Means … September 7, 2016 14 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
  15. 15. Getting Digital Transformation Wrong Means … September 7, 2016 15 Wasted Investment Lost Revenue And Profits Loss Of Customers Unfulfilled ExpectationsWasted Resources Frustrated Customers And Employees Loss Of Competitive Positioning Wasted Time and Lost Opportunity Cost
  16. 16. Digital Enablement Technology Iceberg September 7, 2016 16 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
  17. 17. Business Objectives Business Operational Model Enterprise Architecture 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 September 7, 2016 17
  18. 18. Business Objectives Business Operational Model Enterprise Architecture 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 September 7, 2016 18
  19. 19. 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 September 7, 2016 19
  20. 20. 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 September 7, 2016 20
  21. 21. 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 September 7, 2016 21
  22. 22. 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 September 7, 2016 22
  23. 23. 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 September 7, 2016 23
  24. 24. 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 September 7, 2016 24
  25. 25. 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 Enterprise Architecture Information and Data Architecture Information Systems Architecture Solutions and Application Architecture Business Architecture Technology Architecture Digital Architecture Service and Integration Architecture Security Architecture
  26. 26. Digital Architecture In Context • 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 September 7, 2016 26
  27. 27. Digital Architecture In Context – Linkages September 7, 2016 27 Enterprise Architecture Information and Data Architecture Information Systems Architecture Solutions and Application Architecture Business Architecture Technology Architecture Digital 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
  28. 28. Digital Reference Architecture September 7, 2016 28 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
  29. 29. Digital Reference Architecture – Multiple Layers September 7, 2016 29 Digital Architecture In Context Level 1 View Of Components Of Digital Architecture Level 2 View Of The Elements Of a Component Of Digital Architecture
  30. 30. 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 September 7, 2016 30
  31. 31. External Party Interaction Zones, Channels and Facilities – Level 2 Elements September 7, 2016 31 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
  32. 32. Security, Identity , Access and Profile Management – Level 2 Elements September 7, 2016 32 User Directory Authentication Single Signon Logging Personalisation Access Control Certificate Management Monitoring Identity and Access Management
  33. 33. Digital Specific Applications and Tools – Level 2 Elements September 7, 2016 33 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
  34. 34. Responsive Infrastructure – Level 2 Elements September 7, 2016 34 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
  35. 35. Internal Interaction Management – Level 2 Elements September 7, 2016 35 Business Process Management Customer Relationship Management Case Management Service Management Resource Management Product Management Sales and Marketing
  36. 36. Integration – Level 2 Elements September 7, 2016 36 Service Co-ordination and Orchestration Application Integration Services ETL Services Integration Development and Deployment Data Management Monitoring and Management
  37. 37. Operational and Business Systems – Level 2 Elements September 7, 2016 37 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
  38. 38. Applications Delivery and Management Tools and Frameworks – Level 2 Elements September 7, 2016 38 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
  39. 39. System Development, Deployment And Management – Level 2 Elements September 7, 2016 39 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
  40. 40. Digital Reference Architecture • 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 September 7, 2016 40
  41. 41. 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 September 7, 2016 41
  42. 42. 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 September 7, 2016 42
  43. 43. Digital Reference Architecture • 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 September 7, 2016 43
  44. 44. 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 September 7, 2016 44
  45. 45. Organisation Readiness For Digital – Assessment Framework September 7, 2016 45 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 = = = = =
  46. 46. Route To Digital September 7, 2016 46 Digital Transition And Transformation Digital Architecture And IT Strategy Digital Execution, Delivery and Operations Vision and Guiding Values for Digital Exploitation Business Strategy Organisation Readiness For Digital Digital Architecture Digital Capability Delivery Roadmap Digital Solutions Supporting Solutions Measurement and Reassessment Measurement Framework Digital and IT Strategy
  47. 47. Digital Organisation CapabilitiesOrganisational Capabilities for Digital Strategy, Culture, Change and Governance Digital Strategy Development Digital (and Other) Solution Governance Organisation Change for Digital Process Management Digital Architecture External Party Interaction Zones, Channels and Facilities Personalisation Content Management 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 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 Enterprise Architecture Service Delivery and Management September 7, 2016 47
  48. 48. 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 September 7, 2016 48
  49. 49. Digital Organisation CapabilitiesOrganisational Capabilities for Digital Strategy, Culture, Change and Governance Digital Strategy Development Digital (and Other) Solution Governance Organisation Change for Digital Process Management Digital Architecture External Party Interaction Zones, Channels and Facilities Personalisation Content Management 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 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 Enterprise Architecture Service Delivery and Management September 7, 2016 49
  50. 50. Digital Operational Technology Layers September 7, 2016 50 Customer Access and Interaction Content Aggregation and Management Extensions to Existing Systems/Data Integration Operational Systems Analytic Systems
  51. 51. Operational/Technology Component Layers September 7, 2016 51 Layer Function Customer Access and Interaction Presents information and functionality to external parties of agreed types across agreed channels and access mechanisms Content Aggregation and Management 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
  52. 52. Indicative View Of The Operational/Technology Components And Interfaces To Realise A Digital Strategy September 7, 2016 52 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
  53. 53. 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 September 7, 2016 53
  54. 54. Operational/Technology Layers And Their Components September 7, 2016 54 Customer Access and Interaction Content Aggregation and Management 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
  55. 55. 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 September 7, 2016 55
  56. 56. September 7, 2016 56 More Information Alan McSweeney http://ie.linkedin.com/in/alanmcsweeney

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