digital transformation and enterprise architecture
TRANSCRIPT
Digital Transformation And Enterprise Architecture
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
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
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
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
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 …
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
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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
Enterprise Architecture And Digital Transformation
• Enterprise architecture provides the tools and the approaches to manage the complexity of digital transformation
September 7, 2016 8
General Aspects Of A Digital Strategy
Definition/ Diagnosis
Governing Policies and Principles
Action Plans
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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
External Interactions And Internal Organisation Reality
September 7, 2016 10
External Organisation Interactions
Internal Organisation Reality
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:
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
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
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Getting Digital Transformation Right Means …
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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
Getting Digital Transformation Wrong Means …
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Wasted Investment
Lost Revenue And Profits
Loss Of Customers
Unfulfilled Expectations Wasted
Resources
Frustrated Customers And
Employees Loss Of
Competitive Positioning
Wasted Time and Lost Opportunity
Cost
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
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
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
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
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
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
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
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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
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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
= = = = =
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
Digital Organisation Capabilities Organisational 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
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
Digital Organisation Capabilities Organisational 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
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
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
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
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
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
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
September 7, 2016 56
More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney