Digital Architecture – The Missing
Link in Digital Transformation
Success
Tan Eng Tsze
Principal Lecturer & Consultant, Digital Strategy and Leadership Practice
[ 33 slides]
1#ISSLearningFest
Learning Outcome
Upon completion of this session, you will be able to understand:
Digital Architecture
Digital Architecture Linking Digital Strategy to Execution
Digital Architecture Framework
Importance of Architecture Thinking and Mindset
2#ISSLearningFest
3
77 million customer
details stolen
Service down for X days
Costed USD $250
million
Why are some Internet retailers able to make crucial changes to their ecommerce
websites in hours while it takes brick-and-mortar retailers three months or more to
do the same?
How come just a few car manufacturers can rapidly make online updates to their
products in the field, be they to their infotainment systems or to fuel and engine
performance—a practice that is becoming crucial in a world of servitization,
where manufactured products come with digital services attached to them?
And how is the new wave of cloud-based enterprise software vendors able to
make software updates to their products in days or weeks, rather than the months it
takes traditional enterprise software vendors to do so?
In this Digital Age…
#ISSLearningFest
Architecture Practices of the Past and
Current?
4
1. In designing business operations companies develop technology and methodology that
support inward-looking view
2. No acute need to continually infuse new Technology-enabled business capabilities
into operations
3. Tightly coupled business applications - ERP, SCM, PLM and CRM- change in one part
of application impact many other parts
4. IT integration platform – heavyweight Enterprise Service Bus (ESB), most business
logic was written into the bus
5. IT Infrastructure Services – centrally managed by an independent team. After the
developers and code testers were through with their tasks, they threw it over the wall to
production, whose complex test and handover process could delay the delivery of a new
system to the market for weeks or months.
6. Information and Communications Technology – was costly to implement and thus it
had to be deployed carefully as a costly (but necessary) expense that had to be
minimized. This is a key reason for the intense pressure to consolidate, outsource and
offshore IT to drive costs down.
#ISSLearningFest
Siloed Processes, Applications, Data, Technologies
5
77 million
customer details
stolen
Service down for
X days
Costed USD $250
million
Source: Designed for Digital, MIT
Press, Jeanne W. Ross etc, 2019,
6
77 million
customer details
stolen
Service down for
X days
Costed USD $250
million
How are companies able to compete against Digital Natives like
Amazon, Netflix, Uber, Spotify and PayPal which began life on the
Internet and have rapidly gained share in sectors ranging from
retail and entertainment to banking and transportation.
Unburdened of having to connect their new digital systems to aging
technologies, today’s digital natives can build greenfield digital
business processes unconstrained from prior work, in online
marketing, sales, distribution, and other areas. That is a key reason
why they’re thriving in this era of digitalization, product servitization,
and dramatically reduced software release cycles—all at a time in
which those three trends thwart the incumbents.
In this Digital Age…
#ISSLearningFest
Digital Enterprise
7
The Digital Enterprise is about applying digital technology to adapt or change:
• The Strategy of the Enterprise
• The Product or Services it markets
• The Experience it delivers to customers, employees and other
stakeholders
• Its Operating Model
#ISSLearningFest
8
77 million
customer details
stolen
Service down for
X days
Costed USD $250
million
Traditional versus Digital Transformation
Principles
Source: Forrester Research
#ISSLearningFest
Most Digital Transformations are like this…what is
missing here?
9
Digital
Transformation
Strategy
Digital Design,
Development
& Deployment
Digital
Transformation
Strategy
Digital
Architecture
Digital Design,
Development
& Deployment
Linking Strategy
to Execution
#ISSLearningFest
Defining Digital Architecture
10
• Digital Architecture is the design of Digital Solutions through the
application and integration of Digital Technologies to enable the Digital
Transformation of the company and deliver value to the customers.
• The real essence of digital architecture lies in the way it approaches to
problems; it redefines the solutions design process and shifts the focus
from the problem to the customer experience.
• In addition, a well-thought-out digital architecture guides an enterprise’s
gradual maturation in delivering digital solutions that empower
customer experiences, integrations, and insights
#ISSLearningFest
11
77 million
customer details
stolen
Service down for
X days
Costed USD $250
million
Operational Backbone and Digital Platform are
Linked
Source: Designed for Digital, Jeanne W. Ross etc, MIT Press, 2019,
#ISSLearningFest
12
77 million
customer details
stolen
Service down for
X days
Costed USD $250
million
#ISSLearningFest
Digital Reference Architecture
The Digital Reference Architecture describes how digital and traditional capabilities function
Collaboratively to drive Digital
Source: Capgemini
Digital Architecture – The Main Architecture
Domains
13
Business Architecture
Data
Architecture
Application
Architecture
Technology Architecture
SecurityArchitecture
#ISSLearningFest
14
Business Architecture
• Business Architecture is the design of
• product and/or service strategy and the
• organizational, functional, process,
• information and geographic aspects
of the business environment
that the enterprise must deploy and practice in order to
satisfy its customers, compete in the market, partner with
suppliers, care for its employees and meet regulatory
requirements
• Defining the business capabilities to enable the
organisation’s Digital Transformation
• Forms the foundation for Digital Architecture (i.e. it
is the high level requirement for the AA, DA, TA)
• Essential as part of the digital transformation
#ISSLearningFest
15
What’s your Digital Business Model?
Source: Thriving in an Increasingly Digital Ecosystems, MIT Sloan Management Review
Business Capability Map
16#ISSLearningFest
Data Architecture - The Data-Strategy Spectrum
17
Data-driven Organisation
18
“ A data-driven organisation is one in
which critical business data automatically
drives the decisions and actions of your
business.”
Currently…
Executives make a decision then find data
to support it
Reliance on “gut feel”
Should be…
Data tells you not only that a decision
needs to be made, but also often tells you
what that decision should be.
SOURCE: Data-Driven Business Transformation, erwin
#ISSLearningFest
Application Architecture
• Application Architecture defines the
major kinds of applications needed to
support the business capabilities of the
Digital Enterprise
• Applications here are logical groups of
capabilities that support the business
capabilities in the Business Architecture
• Addresses the following concerns
– Digital-ready application portfolios
– Building engagement layers to
shield customers from internal
complexities and to hide non-user
friendly interfaces
– Meeting the business capabilities
needs and goals
– Open and Agile architectures
– Modernising, wrapping and
extending legacy architectures
19#ISSLearningFest
Application Agility
• In the Digital Age, it becomes critical to
adapt your applications so they
address the continuously evolving
needs of the business
• Applications architectures are adapted
to enable them to scale up and down
according to customer demand. Their
deployment is also automated to
enable faster release of new
functionality
• To enable the delivery of new
functionality quickly, three elements
should be combined:
– Cloud Computing
– Agile Development Methods
– DevOps Automation
20#ISSLearningFest
• Cloud First refers to software solutions designed
specifically to utilize modern cloud computing
functionality
• These solutions leverage modern cloud hosting
providers (Azure, Amazon, and Google) to
maximize investment
• A cloud first service or application was not
updated and migrated to the cloud. Instead, the
design of the application is from scratch i.e.
Cloud Native
• Cloud first applications and services are better
performing and in many cases more stable than
traditional application models.
21
Technology Architecture - Cloud First
Strategy
#ISSLearningFest
• A hybrid IT strategy is where neither 100% cloud
or 100% physical infrastructure is used
• There is a mix of cloud services and in-house
services being used within the IT environment
• Hybrid IT strategy allows businesses to maintain a
centralised approach whilst also utilising the
benefits of cloud such as its scalability,
performance and a generally reduced price
• Driven by factors like:
• A need to maintain control of data
• The cost-effectiveness of cloud components
(e.g. Software-as-a-Service, Storage-as-a-
Service)
• A desire to respond rapidly to changing
business needs and priorities.
22
Technology Architecture - Hybrid IT
Strategy
#ISSLearningFest
Security in the Digital Age
23#ISSLearningFest
Security as a Cross-Cutting Concern in Digital Architecture
24#ISSLearningFest
Digital Architecture Framework
25
Pathway to Digital Transformation
Digital Vision &
Guiding Principles
Domain
Solutions
Digital Strategy
• What business outcomes are we
trying to achieve and why is this
important?
• What are our core guiding
principles for digital
transformation?
Functional Solutions
Digital Operating
Model
Digital
Capabilities
Digital Architecture
Digital Roadmap
• What capabilities do we
need to enable for solution
design, development and
delivery in radically faster
cycles?
• What are the gaps in
technology required for
enabling digital capabilities?
• What is the Digital Architecture
Vision and Strategy?
• What should the data,
application and technology
architecture look like?
• What are the core set of digital
business capabilities needed to
be enabled by the business?
• Which business capabilities
can digital technology
enable?
• Which ones do we have and
need?
• What are the key business role
and reporting relationships to
get work done?
• What business and digital
initiatives and project are
needed to implement the
digital strategy?
• What is the sequence in
which these should be
delivered?
• How will we realise the digital
vision?
Digital Business
Transformation
Digital
Architecture
Digital
Development
& Deployment
#ISSLearningFest
Digital Architecture Design Objectives
26
77 million
customer details
stolen
Service down for
X days
Costed USD $250
million
The digital architecture must:
• Enable the enterprise to successfully drive digital
strategies
• Embrace and flex to accommodate current and
emerging digital technologies
• Integrate with and fully exploit critical core existing IT
assets and systems
#ISSLearningFest
27
77 million
customer details
stolen
Service down for
X days
Costed USD $250
million
Key Characteristics of Digital Architecture
• Customer Centricity
• Collaborative Design
• Speed Governance
• Scalability
• Evolutionary Architecture
#ISSLearningFest
Why is Digital Architecture Important?
28
• Increase agility and reduce time to deliver as well as
cost of new capabilities by leveraging pre-defined
services, components, templates and approaches
Agility
• Alignment between digital strategies and technology
capabilitiesAlignment
• Effective coordination and bi-directional influence between
Digital Architecture and the various domains resulting in a
unified and multi-dimensional set of architectures
Effective
Coordination
• Provide structured approach to technology
enablement of enterprise Digital Transformation
Technology
Enablement
• Provide an integrated, living roadmap of the desired
technology future along with agile processes to incorporate
new solutions and remove outdated components
Integrated
Roadmap
#ISSLearningFest
29
Digital Architecture – Describing Coherence
#ISSLearningFest
© National University of Singapore. All Rights Reserved.
30
Summary
 Important to have Architecture Thinking and Mindset
 Digital Architecture and its importance linking successful
Digital Strategy and Transformation to execution
 The Digital Architecture Design Objectives and Characteristics
 Digital Architecture Framework to enable Digital
Transformation
31#ISSLearningFest
32#ISSLearningFest
Thank You!
isstet@nus.edu.sg
33#ISSLearningFest
Give Us Your Feedback
#ISSLearningFest
Day 2 Programme

Digital Architecture – The Missing Link in Digital Transformation Success

  • 1.
    Digital Architecture –The Missing Link in Digital Transformation Success Tan Eng Tsze Principal Lecturer & Consultant, Digital Strategy and Leadership Practice [ 33 slides] 1#ISSLearningFest
  • 2.
    Learning Outcome Upon completionof this session, you will be able to understand: Digital Architecture Digital Architecture Linking Digital Strategy to Execution Digital Architecture Framework Importance of Architecture Thinking and Mindset 2#ISSLearningFest
  • 3.
    3 77 million customer detailsstolen Service down for X days Costed USD $250 million Why are some Internet retailers able to make crucial changes to their ecommerce websites in hours while it takes brick-and-mortar retailers three months or more to do the same? How come just a few car manufacturers can rapidly make online updates to their products in the field, be they to their infotainment systems or to fuel and engine performance—a practice that is becoming crucial in a world of servitization, where manufactured products come with digital services attached to them? And how is the new wave of cloud-based enterprise software vendors able to make software updates to their products in days or weeks, rather than the months it takes traditional enterprise software vendors to do so? In this Digital Age… #ISSLearningFest
  • 4.
    Architecture Practices ofthe Past and Current? 4 1. In designing business operations companies develop technology and methodology that support inward-looking view 2. No acute need to continually infuse new Technology-enabled business capabilities into operations 3. Tightly coupled business applications - ERP, SCM, PLM and CRM- change in one part of application impact many other parts 4. IT integration platform – heavyweight Enterprise Service Bus (ESB), most business logic was written into the bus 5. IT Infrastructure Services – centrally managed by an independent team. After the developers and code testers were through with their tasks, they threw it over the wall to production, whose complex test and handover process could delay the delivery of a new system to the market for weeks or months. 6. Information and Communications Technology – was costly to implement and thus it had to be deployed carefully as a costly (but necessary) expense that had to be minimized. This is a key reason for the intense pressure to consolidate, outsource and offshore IT to drive costs down. #ISSLearningFest
  • 5.
    Siloed Processes, Applications,Data, Technologies 5 77 million customer details stolen Service down for X days Costed USD $250 million Source: Designed for Digital, MIT Press, Jeanne W. Ross etc, 2019,
  • 6.
    6 77 million customer details stolen Servicedown for X days Costed USD $250 million How are companies able to compete against Digital Natives like Amazon, Netflix, Uber, Spotify and PayPal which began life on the Internet and have rapidly gained share in sectors ranging from retail and entertainment to banking and transportation. Unburdened of having to connect their new digital systems to aging technologies, today’s digital natives can build greenfield digital business processes unconstrained from prior work, in online marketing, sales, distribution, and other areas. That is a key reason why they’re thriving in this era of digitalization, product servitization, and dramatically reduced software release cycles—all at a time in which those three trends thwart the incumbents. In this Digital Age… #ISSLearningFest
  • 7.
    Digital Enterprise 7 The DigitalEnterprise is about applying digital technology to adapt or change: • The Strategy of the Enterprise • The Product or Services it markets • The Experience it delivers to customers, employees and other stakeholders • Its Operating Model #ISSLearningFest
  • 8.
    8 77 million customer details stolen Servicedown for X days Costed USD $250 million Traditional versus Digital Transformation Principles Source: Forrester Research #ISSLearningFest
  • 9.
    Most Digital Transformationsare like this…what is missing here? 9 Digital Transformation Strategy Digital Design, Development & Deployment Digital Transformation Strategy Digital Architecture Digital Design, Development & Deployment Linking Strategy to Execution #ISSLearningFest
  • 10.
    Defining Digital Architecture 10 •Digital Architecture is the design of Digital Solutions through the application and integration of Digital Technologies to enable the Digital Transformation of the company and deliver value to the customers. • The real essence of digital architecture lies in the way it approaches to problems; it redefines the solutions design process and shifts the focus from the problem to the customer experience. • In addition, a well-thought-out digital architecture guides an enterprise’s gradual maturation in delivering digital solutions that empower customer experiences, integrations, and insights #ISSLearningFest
  • 11.
    11 77 million customer details stolen Servicedown for X days Costed USD $250 million Operational Backbone and Digital Platform are Linked Source: Designed for Digital, Jeanne W. Ross etc, MIT Press, 2019, #ISSLearningFest
  • 12.
    12 77 million customer details stolen Servicedown for X days Costed USD $250 million #ISSLearningFest Digital Reference Architecture The Digital Reference Architecture describes how digital and traditional capabilities function Collaboratively to drive Digital Source: Capgemini
  • 13.
    Digital Architecture –The Main Architecture Domains 13 Business Architecture Data Architecture Application Architecture Technology Architecture SecurityArchitecture #ISSLearningFest
  • 14.
    14 Business Architecture • BusinessArchitecture is the design of • product and/or service strategy and the • organizational, functional, process, • information and geographic aspects of the business environment that the enterprise must deploy and practice in order to satisfy its customers, compete in the market, partner with suppliers, care for its employees and meet regulatory requirements • Defining the business capabilities to enable the organisation’s Digital Transformation • Forms the foundation for Digital Architecture (i.e. it is the high level requirement for the AA, DA, TA) • Essential as part of the digital transformation #ISSLearningFest
  • 15.
    15 What’s your DigitalBusiness Model? Source: Thriving in an Increasingly Digital Ecosystems, MIT Sloan Management Review
  • 16.
  • 17.
    Data Architecture -The Data-Strategy Spectrum 17
  • 18.
    Data-driven Organisation 18 “ Adata-driven organisation is one in which critical business data automatically drives the decisions and actions of your business.” Currently… Executives make a decision then find data to support it Reliance on “gut feel” Should be… Data tells you not only that a decision needs to be made, but also often tells you what that decision should be. SOURCE: Data-Driven Business Transformation, erwin #ISSLearningFest
  • 19.
    Application Architecture • ApplicationArchitecture defines the major kinds of applications needed to support the business capabilities of the Digital Enterprise • Applications here are logical groups of capabilities that support the business capabilities in the Business Architecture • Addresses the following concerns – Digital-ready application portfolios – Building engagement layers to shield customers from internal complexities and to hide non-user friendly interfaces – Meeting the business capabilities needs and goals – Open and Agile architectures – Modernising, wrapping and extending legacy architectures 19#ISSLearningFest
  • 20.
    Application Agility • Inthe Digital Age, it becomes critical to adapt your applications so they address the continuously evolving needs of the business • Applications architectures are adapted to enable them to scale up and down according to customer demand. Their deployment is also automated to enable faster release of new functionality • To enable the delivery of new functionality quickly, three elements should be combined: – Cloud Computing – Agile Development Methods – DevOps Automation 20#ISSLearningFest
  • 21.
    • Cloud Firstrefers to software solutions designed specifically to utilize modern cloud computing functionality • These solutions leverage modern cloud hosting providers (Azure, Amazon, and Google) to maximize investment • A cloud first service or application was not updated and migrated to the cloud. Instead, the design of the application is from scratch i.e. Cloud Native • Cloud first applications and services are better performing and in many cases more stable than traditional application models. 21 Technology Architecture - Cloud First Strategy #ISSLearningFest
  • 22.
    • A hybridIT strategy is where neither 100% cloud or 100% physical infrastructure is used • There is a mix of cloud services and in-house services being used within the IT environment • Hybrid IT strategy allows businesses to maintain a centralised approach whilst also utilising the benefits of cloud such as its scalability, performance and a generally reduced price • Driven by factors like: • A need to maintain control of data • The cost-effectiveness of cloud components (e.g. Software-as-a-Service, Storage-as-a- Service) • A desire to respond rapidly to changing business needs and priorities. 22 Technology Architecture - Hybrid IT Strategy #ISSLearningFest
  • 23.
    Security in theDigital Age 23#ISSLearningFest
  • 24.
    Security as aCross-Cutting Concern in Digital Architecture 24#ISSLearningFest
  • 25.
    Digital Architecture Framework 25 Pathwayto Digital Transformation Digital Vision & Guiding Principles Domain Solutions Digital Strategy • What business outcomes are we trying to achieve and why is this important? • What are our core guiding principles for digital transformation? Functional Solutions Digital Operating Model Digital Capabilities Digital Architecture Digital Roadmap • What capabilities do we need to enable for solution design, development and delivery in radically faster cycles? • What are the gaps in technology required for enabling digital capabilities? • What is the Digital Architecture Vision and Strategy? • What should the data, application and technology architecture look like? • What are the core set of digital business capabilities needed to be enabled by the business? • Which business capabilities can digital technology enable? • Which ones do we have and need? • What are the key business role and reporting relationships to get work done? • What business and digital initiatives and project are needed to implement the digital strategy? • What is the sequence in which these should be delivered? • How will we realise the digital vision? Digital Business Transformation Digital Architecture Digital Development & Deployment #ISSLearningFest
  • 26.
    Digital Architecture DesignObjectives 26 77 million customer details stolen Service down for X days Costed USD $250 million The digital architecture must: • Enable the enterprise to successfully drive digital strategies • Embrace and flex to accommodate current and emerging digital technologies • Integrate with and fully exploit critical core existing IT assets and systems #ISSLearningFest
  • 27.
    27 77 million customer details stolen Servicedown for X days Costed USD $250 million Key Characteristics of Digital Architecture • Customer Centricity • Collaborative Design • Speed Governance • Scalability • Evolutionary Architecture #ISSLearningFest
  • 28.
    Why is DigitalArchitecture Important? 28 • Increase agility and reduce time to deliver as well as cost of new capabilities by leveraging pre-defined services, components, templates and approaches Agility • Alignment between digital strategies and technology capabilitiesAlignment • Effective coordination and bi-directional influence between Digital Architecture and the various domains resulting in a unified and multi-dimensional set of architectures Effective Coordination • Provide structured approach to technology enablement of enterprise Digital Transformation Technology Enablement • Provide an integrated, living roadmap of the desired technology future along with agile processes to incorporate new solutions and remove outdated components Integrated Roadmap #ISSLearningFest
  • 29.
    29 Digital Architecture –Describing Coherence #ISSLearningFest
  • 30.
    © National Universityof Singapore. All Rights Reserved. 30
  • 31.
    Summary  Important tohave Architecture Thinking and Mindset  Digital Architecture and its importance linking successful Digital Strategy and Transformation to execution  The Digital Architecture Design Objectives and Characteristics  Digital Architecture Framework to enable Digital Transformation 31#ISSLearningFest
  • 32.
  • 33.
  • 34.
    Give Us YourFeedback #ISSLearningFest Day 2 Programme