digital transformation strategy

THE SILVESTRI GROUP

Digital Transformation Strategy

The CPMO Enterprise

Thomas Silvestri

3/18/2016

THE SILVESTRI GROUP | Thomas Silvestri, Managing Partner | 3600 N Lake Shore Drive #2608, Chicago, IL. 60613 | [email protected] | www.thomassilvestri.com

Digital Transformation Strategy

The CPMO Enterprise

In the frantically evolving modern business world we need to "Embrace the Citizen Integrator Approach to Improve Business Users Productivity and Agility"

~Gartner 2016

Summary The new digital era and the promise of complete machine to machine transformation isn't a mystery, but does require mastery of some "easier said than done" IT CPMO practices. IT executives, consultants, and change agents will benefit from using these CPMO transformation strategies by creating best practices inside their organizations as a digital transformation strategy alignment with the business strategy to execute superior service delivery to customers and clients worldwide in five key areas of discovery and development:

Globalization and Innovation Automated Decision-making Systems Intelligent Enterprise Modeling

New Customer Service Channels Value Network Optimization

The Future Assumptions of Digital Technology

By 2020, in large organizations at least 65% of new integration flows will be developed outside the control of IT departments.

By 2022, in most organizations at least 50% of new integration flows will be implemented by citizen integrators.

By 2025, 35% of enterprises will consolidate their data integration and application

integration competencies as one team for aligning disciplines and technologies.

By 2030, more than 40% of large organizations will have established a hybrid integration platform.

Overview New IT digital teams that are enterprise aware will work closely with enterprise professionals, such as enterprise architects and operations staff, to ensure that they are leveraging and better yet enhancing the existing infrastructure. Their architectures will their organization’s technical roadmap and similarly the scope of their effort will reflect their organization’s business roadmap. They will follow existing development guidelines and enhance them where appropriate. IT digital teams can achieve higher levels of success in a CPMO enterprise aware manner:


Higher levels of productivity because they are less likely to reinvent the wheel Quicker times to deployment/market because they have less work to do Higher return on investment (ROI) because they have less work to do Higher levels of quality through following common conventions

Digital Business Hierarchy Integration Services - Reshaping your integration strategy toward a bimodal and self-service "pervasive integration" approach is required to achieve sustainable advantage in the frantically evolving and increasingly digital business world. Follow our five integration best practices to successfully tackle this challenge. Digital Ecosystem — a "nonintegrated digital business" is an oxymoron. Digitalization does give organizations an opportunity to establish personalized and responsive relationships by enabling "right-time" integration with their constituents via social media, business networks, mobile applications and APIs. Bimodal IT — To support the digital era's rapid pace of change, organizations of every size, in every geography and in every industry are increasingly looking at a two-speed (bimodal) IT strategies where slowly evolving, "run the business" IT systems (Mode 1) need to coexist and interoperate with fast-changing and innovative "transform the business" initiatives (Mode 2). Postmodern application strategies — often, organizations look at cloud as the primary source of innovation in business applications and technology platforms — while trying to reduce their IT operation costs. However, cloud services must be integrated with established, usually on-premises, system-of-record applications in the context of postmodern application strategies. Internet of Things — The Internet of Things (IoT) can enable unprecedented degrees of efficiency and business model innovation. However, it also requires organizations to integrate the new world of "smart things" and the data they produce with back-end business processes, data and analytical environments. The quest for sustainable competitive advantage — Modern technologies (such as social, mobile, analytics, cloud and the IoT) are easily accessible to any organization, but also to its competitors. They can therefore give organizations short-term, first-mover benefits; but, alone, cannot help to build a sustainable competitive advantage. Organizations can, however, maintain differentiation through original, smart and fast integration of such technologies (see Note 1). Volatile business relationships — Business relationships are becoming more transient and volatile; therefore, not only the ability to rapidly integrate, but also to quickly disintegrate is critical. For example, rapidly disengaging from a supplier to replace it with a more efficient alternative; substituting, with minimal disruption, a cloud service with a more innovative offering; or switching to alternative IoT devices can make a big difference from a business perspective.


Digital Citizen Integrators Business users' adoption of these platforms to address this class of "personal" integration needs is giving rise to the phenomenon of "citizen integrators" (see "Embrace the Citizen Integrator Approach to Improve Business Users' Productivity and Agility”). You cannot ignore this phenomenon; it's going to happen whether you approve it or not. You have to manage it, because you don't want individual business users to pursue DIY integration in a spontaneous, unregulated fashion. Ungoverned DIY integration would potentially expose your organization to the same risks that stem from unmanaged adaptive integration — only an order of magnitude higher. Key Challenges

Influence: Transformation leaders assume everyone understands the objectives of the business transformation, and fail to develop a common vision that unifies everyone's understanding and points them in the right direction. This is where failure starts.

Communication: Conflicting messages about what is changing splinter the audience and,

ultimately, will derail a transformation effort.

Actionable Intelligence: Top-down messages that are too general or full of "enterprise-speak" leave much open to interpretation and do not enable those in the organization who will need to support the change to take specific action.

Change Management and Training: Organizational change activities are often an afterthought and commonly associated with training.

Recommendations

Make the re-envisioning of your digital transformation strategy a top priority, because a holistic, pervasive and "high touch" bimodal integration approach is an entry ticket to the digital era.

Encourage and enable global systems and platform investments and governance by

driving transformational support and guardrails for all encompassing spectrum of users. The systematic and adaptive modeling through a "facilitation team" that complements business and IT management to build centralized organizations.

Develop new innovation models for internal and external application development (AD) project leaders into a design-for-interoperability approach by pushing an decision-making business driven API-first style supported by appropriate technology.