architecting the digital business: planning for the third era of enterprise it

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Brian Burke @brian__burke

Architecting the Digital Business: Planning for the Third Era of Enterprise IT

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"With competitive technology IT

needs to be half in technology

research, and half in traditional IT."

Alan Matula CIO, Royal Dutch Shell


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Strategic Planning Assumption

Digitalization

IT Industrialization

By 2016, 30% of global organizations will establish a clear role distinction between foundational and vanguard enterprise architects.


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Key Issues

1. What are the key enabling technologies that will make digital business different?

2. How can you make sense of evolving technology disruptions?

3. How can you contextualize opportunities for your organization?


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The creation of new business

designs by blurring the

digital and physical worlds

Digital Business


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Disruptive Technologies Are

Solutions Looking for Business

Problems to Solve


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A Near-Term Explosion of Enabling Technologies

Smart

Advisors

Internet

of Things Mobile

Robots

Sensors Autonomous

Vehicles

3D

Printing

Augmented

Reality

Virtual

Personal

Assistants

Big

Data Human

Augmentation

Drones

Gesture

Control

Location

Intelligence

Digital and physical worlds are blurred when:

• Atoms behave like bits

• Machines become smarter than people

• Everything is connected


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Digital Business Enables Entirely

New Business Designs


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An Explosion of Business Opportunities

What business models will emerge when:

• Fabrication is local and automated

• Assets are shared and fully utilized

• Humans are augmented or replaced


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The Role of the Vanguard EA: Rethinking What Is Possible

• Vanguard EAs must throw away all the old assumptions.

• Rethink:

- Customer value proposition.

- Partner value exchange.

- Employee value proposition.

- Business processes.

- Information and analytics.

• What does this mean for your business?

Atoms are the new bits.


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Making Sense of the Trends:

Disruptive Technologies Mature

Over Years or Decades


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Technology Innovation: Lead Response to Emerging Disruptive Technologies

Disruptive

Trend Ideation

Evaluate

Opportunity

and Risk

Create Business

Transformation

Road Maps

Diagnostic

Deliverables

Enabling

Deliverables

Actionable

Deliverables

Rationalize

Business

Outcomes

Ideation Analysis

Technology Analysis

Industry Research

Market Research

Exploratory Technology

Proposals

Business Scenario

Analysis

Business Strategy

Risk Profiling

Readiness Assessment

Risk Tolerance

Opportunity Proposals Opportunity Viability

Proposals

Innovation Strategic

Plan

Benefit Profiling Business Capability

Impact Assessment

Business Capability Maps Financial Controls, Policy and Value Drivers

Technology Research

1 2 3 0

Opportunity Analysis

Impact Appraisal

Gaps and Opportunities

Road Map

Integrated IT Portfolio

Analysis

Related Strategies

Opportunity Identification Business Outcome Stmts.

Market Analysis


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Understanding Disruptions: Phase 0 & 1

Disruptive

Trend Ideation

Evaluate

Opportunity

and Risk

Create Business

Transformation

Road Maps

Diagnostic

Deliverables

Enabling

Deliverables

Actionable

Deliverables

Rationalize

Business

Outcomes

Ideation Analysis

Technology Analysis

Industry Research

Market Research

Exploratory Technology

Proposals

Business Scenario

Analysis

Business Strategy

Risk Profiling

Readiness Assessment

Risk Tolerance

Opportunity Proposals Opportunity Viability

Proposals

Innovation Strategic

Plan

Benefit Profiling Business Capability

Impact Assessment

Business Capability Maps Financial Controls, Policy and Value Drivers

Technology Research

1 2 3 0

Opportunity Analysis

Impact Appraisal

Gaps and Opportunities

Road Map

Integrated IT Portfolio

Analysis

Related Strategies

Opportunity Identification Business Outcome Stmts.

Market Analysis


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Generation

Technology Analysis: What Does It Do?


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Market Analysis: What Are the Use Cases?

Painting

Drilling

Welding

Pick and Place

Material Handling

Surgery

Assistive Care

Vacuum Cleaning

Packaging

Disaster Response

Bomb Disposal

Food Preparation

Robot Soldiers

Household Helpers

Agriculture

Medical Robots

Deployed Today <2 Yrs. 2 Yrs. to 5 Yrs. 2 Yrs. to 5 Yrs. <2 Yrs.


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Crowdsourced Innovation Community

Specialist Teams

R&D Teams

Ideation Analysis

Specific Fuzzy

Swarm

Squad


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Opportunity Identification: What Problem Does It Solve?

Painting

Drilling

Welding

Materials Handling

Manufacturing

Robotics

Pattern Match to

Business Capabilities


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• Stage gate the process to avoid blind alleys

• Seek approval to proceed to the next step

• Ensure that business and IT management is onboard with the direction of research

Actionable Deliverable: Exploratory Technology Proposals


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Making Sense of the

Opportunities: Contextualize

Disruption for Your Organization


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Business Scenario Analysis: Alignment With Business Direction

Painting

Welding

Drilling

Material Handling

Pick and Place

Vacuum Cleaning

Drive Customer Intimacy

Extend Global Reach

Standardize Processes

Improve Product Quality

Develop Employee Skills

Cut Production Costs

… or create a new strategy based on disruptive technology!


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Deliver Personalized Customer Experience

Support Personalized Campaigns

Onboard Customers

Contextualized Interactions

Create and Maintain

Reputation

Personalized Risk,

Reputation & Fraud Mgmt.

Manage Customer

Identity and Preferences

Develop Partner Ecosystem

Define Partner

Aggregators

Use Credit Brokers

Broker Crowd

Funding

Support Peer-to-Peer

Partners

Manage Channel Partners

New Channel Partners

Provide Account Services

Service Deposits

Provide Consumer

Credit

Offer Credit/Debit

Card

Deliver Wealth Management

Services

Offer Corporate Loans and

Make Deposits

Provide Corporate

Credit (SMB)

Service Payments

Provide Credit Services

Develop Multichannel

Support Multichannel

Payments

Support Universal

BYOD

Create Digital Services

Support Dynamic Facilities

Develop Market and Brand

Develop Product Strategy

Operate Competitive Intelligence

Market Products

Define Business Direction

Operate Customer

Intelligence

Set Pricing

Proactively Detect and Resolve Risk

Detect Fraud

Model New Fraud

Evaluate Risk

Balance Transparency

Manage Information

Security

Manage Privacy Maxims

Create "Next Payments" R&D

Develop Risk Models

Develop New Innovation Channels

Create Sandbox

Create Rapid POC Cycle

Crowdsource Innovation

Develop Customer as

Innovator

Operate Business

Govern Technology Investment

Support Investors

Maximize Human Capital

Develop Strategic Planning

Optimize Facilities

Manage Financial

Execute Investment Products

Execute Personalized Investments

Provide Investment Services

Deliver Corporate Financing

Execute Fund

Management

Manage Corporate

Investments

Offer Corporate Tax

Services

Business Capability Impact Assessment

Strategic, Future-State Business Capabilities (Three Years) and Incremental Investments

Secondary Investment ($3M to $5M)

Primary Investment (Above $5 Million [M]) Tertiary Investment ($1M to $3M)

Minor Investment (<$1M) Strategic Areas


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Opportunity Analysis: Leverage the Option Graph

Welding

Painting

Packaging

Piece Pick and Place

Material Handling Order Picking

Vacuum Cleaning

Drilling

Op

po

rtu

nit

y

Maturity

Robotics Options Graph

Affinity < Bubble Size


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Business Outcome Statements

A business outcome is a specific and measurable result that includes (1) measurable business benefit, (2) achieved within a time frame, and (3) in support of the business strategy.

A business outcome should consider business disruptions (threats and opportunities).

For example:

• Streamlining sales processes (business outcome) to shorten the sales cycle by 30% (business metric) in 12 months which decreases cost-of-sales by 10% (financial value).

• Creating a design forum to enable customers to participate in product design (business outcome) thereby increasing R&D success index by 20% (business metric) within 2 years which increases revenue by 5% (financial value).

• Leveraging "vested outsourcing" (business outcome) to reduce operating costs by 15% (business metric) over the next year increasing profit margin by 3% (financial value).


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Actionable Deliverable: Opportunity Proposals

• Demonstrate technology use cases

• Match business opportunity

• Align to business direction


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Making It Actionable

• Analyzing opportunities is not enough.

• Vanguard enterprise architect must be a catalyst for change.

• Determine the costs, benefits, risks of emerging technology opportunities.

• Create a signature-ready proposal to pilot or prototype.

Catalyst: An agent that provokes or speeds

significant change or action. — Merriam-Webster


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Recommendations

Understand and track technological disruptions

that will have an impact on your industry.

Develop contextualized options graphs for

highest impact disruptions.

Create signature-ready proposals to leverage

opportunities created by digital disruptions.


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Recommended Gartner Research

Forecast: The Internet of Things, Worldwide, 2013 Peter Middleton, Peter Kjeldsen and Jim Tully (G00259115)

Uncover Value From the Internet of Things With the Four Fundamental Usage Scenarios Stephen Prentice and Hung LeHong (G00249065)

The Disruptive Era of Smart Machines Is Upon Us Tom Austin (G00257743)

Smart Machines Mean Big Impacts: Benefits, Risks and Massive Disruption Tom Austin (G00255663)

For more information, stop by Gartner Research Zone.

http://www.gartner.com/document/2625419?ref=QuickSearch&sthkw=G00259115&refval=137374429








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