Digital Transformation And Enterprise Architecture

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

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

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
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

External Interactions And Internal Organisation
Reality
September 7, 2016 10
External Organisation Interactions
Internal Organisation Reality

Digital Transformation Is About …
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
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

Getting Digital Transformation Right Means …
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 …
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

Digital Enablement Technology Iceberg
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

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

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

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

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

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

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

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

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
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

Digital Architecture In Context – Linkages
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
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
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

External Party Interaction Zones, Channels and
Facilities – Level 2 Elements
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
User Directory
Authentication
Single Signon
Logging
Personalisation
Access Control
Certificate
Management
Monitoring
Identity and
Access
Management

Digital Specific Applications and Tools – Level 2
Elements
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
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
Business Process
Management
Customer
Relationship
Management
Case
Management
Service
Management
Resource
Management
Product
Management
Sales and
Marketing

Integration – Level 2 Elements
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
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
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
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

• 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

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

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

• 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

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

Organisation Readiness For Digital – Assessment
Framework
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
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 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

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

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

Digital Operational Technology Layers
Customer Access and Interaction
Content Aggregation and Management
Extensions to Existing Systems/Data Integration
Operational Systems
Analytic Systems

Operational/Technology Component Layers
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
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

Operational/Technology Layers And Their Components
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

More Information
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

Digital Transformation And Enterprise Architecture

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