In this slide deck 451 Research Principal Analyst Carl Lehmann explore how to execute digital transformation and agile integration from strategy to practice.

1. Digital Transformation and Agile
Integration: Strategy and Practice
Carl Lehmann | Principal Analyst
Architecture, Automation & Integration

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Digital transformation is not so new…
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CATV Headend circa 1990’sCATV coaxial cable = Ethernet

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Business Drivers
The Drive Toward Digital Transformation
The Need for New Competitive Advantage
Technology Drivers
Research Findings: Strategy and Enablers
New Approaches to Agile Development & Integration
The Emergence of Digital Automation & Hybrid
Integration Platforms
Capabilities, agility and potential weaknesses to digital
transformation strategy
Conclusions

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What is digital transformation?
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The result of IT innovation that is aligned with and driven by a business strategy with the goal of
transforming how organizations:
• Serve customers, employees and partners
• Support continuous improvement in business operations
• Disrupt existing businesses and markets
• Invent new businesses and business models
Different companies view it
differently…

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It means different things to different companies
To Sprint it means…
• Under pressure from large rivals
• Moving to agile
• Hadoop-based data lake
• Analyzing customer experience data
• Determine customer abandonment
• Redesign customer journey based on
data

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It means different things to different companies
To Putnam Investments in means…
• Insights for advisors
• Facebook-like collaboration tools for
IT and business
• Google-like search and workflow
automation tools
• Retire legacy apps, go Agile
• Invest in data analytics
• Data science COE client insights
• Nudge partners to work in new ways

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It means different things to different companies
To JetBlue it means…
• Deploy high-speed internet and
streaming
• Mobile payments, and tools to improve
passengers’ experiences
• Looking at near field communication
(close proximity interaction) to replace
kiosks and check-in desks
• JetBlue Technology Ventures (JTV)
invest in analytics, ML, and new
customer service approaches

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It means different things to different companies
Unilever acquired Dollar Shave
Club, giving it a platform from
which to sell razors online
Caterpillar acquired Yard Club to
rent heavy machines through an
online marketplace
Cleveland Clinic sells algorithms for
analyzing cardiology and oncology
through Apervita's online
marketplace

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Threats
• New aggressive rivals enter markets
• Disrupt and redefine how business gets done
• Reset customer expectations
• Change decision criteria
• Empower customers
Benefits
• Better customer satisfaction scores
• Less customer churn
• Improved gross margins
• Improved net income
• Improved competitive win ratio
Why do it?
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But, many say its complex & only marginally effective, especially
when…

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…its more than just IT
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Enabling new competitive advantage is an ongoing
imperative

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Improve success: 3 critical transformation questions…
What do my customers expect?
What are my rivals doing?
What, and how good, are my
core processes?
‘How’, and ‘how well’, I do things,
in the eyes of the customer compared to rivals?

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Changes how we buy, make, move and sell things…
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But, ‘differentiation’ does not mean
‘advantage.’
What is competitive advantage?

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“A systematic way of examining all the activities a firm performs and how
they interact is necessary for analyzing the source of competitive advantage.”
Competitive advantage is achieved by doing the same things as rivals but
differently, and/or doing different things that are acknowledged by
customers to be superior to rivals.
What is competitive advantage?
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‘How’ and ‘how
well’?

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Source: The Adaptive Loop from Adaptive Enterprise
Advantage through rapid sense & response
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Rapid adaptation through
instrumentation
Change?
Risk?
Opportunity?
Variance?
Need?
Customers?
Markets?
Systems?
Partners?
Rivals?

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But how do you do this?
The Value Chain Meets the Adaptive Loop
Advantage via intelligent process automation & agile integration
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Business Drivers
The Drive Toward Digital Transformation
The Need for New Competitive Advantage
Technology Drivers
Research Findings: Strategy and Enablers
New Approaches to Agile Development & Integration
The Emergence of Digital Automation & Hybrid
Integration Platforms
Capabilities, agility and potential weaknesses to digital
transformation strategy
Conclusions

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Source: 451 Research’s Voice of the Connected User Landscape, Corporate Mobility and Digital Transformation Representative Survey, 1H 2017
Differentiating attributes of digital transformation strategy
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Source: 451 Research VoCUL: Corporate Mobility and Digital Transformation Representative Survey
Digital strategy: an integral four-part approach
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Digital strategy: an integral four-part approach
Requires new approaches and an integral
environment…
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Source: 451 Research VoCUL: Corporate Mobility and Digital Transformation Representative Survey

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New approaches to development and integration are needed
Integrated development environments (IDE),
service-oriented architecture (SOA) are complex and costly
Waterfall methods – systematic but slow
Monolithic architecture is inflexible
Agile development, cloud-native preferred
IT teams with business, collaborate, prototype
Run in multiple venues, hybrid architectures
< Then
Now >
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Use of Multiple Infrastructure Environments by
Workload
Reasons for Multiple Infrastructure
Environments
Report: Voice of the Enterprise: Cloud, Hosting and Managed Services, Workloads and Key Projects - Quarterly Advisory Report
Source: 451 Research’s Voice of the Enterprise: Cloud Hosting & Managed Services, Workloads and Key Projects, 2018

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Take advantage of distributed architectures,
containers, microservices
Agile integration an imperative
Assemble logic, automate processes, integrate &
adapt
Automate dev to production, CI/CD, DevOps
Make software & integrations configurable &
programmatic
Apply Machine Learning/Artificial Intelligence
Scale
New approaches must…
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Next-generation automation & integration platforms
emerge…

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Business Drivers
The Drive Toward Digital Transformation
The Need for New Competitive Advantage
Technology Drivers
Research Findings: Strategy and Enablers
New Approaches to Agile Development & Integration
The Emergence of Digital Automation & Hybrid
Integration Platforms
Capabilities, agility and potential weaknesses to digital
transformation strategy
Conclusions

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What’s needed: agile platform capabilities
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SaaS
PaaS
SaaS
IaaS

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What’s needed: agile platform capabilities
25
SaaS
PaaS
SaaS
IaaS

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What’s needed: agile platform capabilities
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SaaS
PaaS
SaaS
IaaS

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What’s needed: agile platform capabilities, interoperable
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SaaS
PaaS
SaaS
IaaS

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Exploits distributed architectures, containers,
microservices
Quickly assemble logic, automate processes, integrate &
adapt
Dev to production automated, CI/CD
• Dev and Ops in same platform = simple DevOps
Configurable rapid prototyping
• Can shave 50-90% off development time
But (potential weaknesses)…
Programmatic capabilities needed for differentiation,
instrumentation, performance & scale
ML/AI must be part of instrumentation and be trained to
execute Adaptive Loop in Value Chains = rapid sense &
response
Value: intelligent process automation & agile integration
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29. 451RESEARCH.COM
©2018 451 Research. All Rights Reserved.
Business Drivers
The Drive Toward Digital Transformation
The Need for New Competitive Advantage
Technology Drivers
Research Findings: Strategy and Enablers
New Approaches to Agile Development & Integration
The Emergence of Digital Automation & Hybrid
Integration Platforms
Capabilities, agility and potential weaknesses to digital
transformation strategy
Conclusions

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Conclusions: Agile Integration – Strategy and Practice
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Rivalry and empowered customers require
continuous transformation to enable new
competitive advantage
Digital application strategies require new means
for automation and integration
DAPs & HIPs unite collaborative business and IT
teams, enable intelligent process automation,
craft new customer experiences, integrate
distributed resources
Programmatic controls add instrumentation,
performance & scale
Value Chain + Adaptive Loop + Unified Platform +
Programmatic control = Competitive Advantage
Enable uniform environments & capabilities for digital strategy at
scale

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carl.lehmann@451research.com
Thank you
@451Research
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