Digital Transformation: Using Open Standards to Accelerate the Journey

Copyright © The Open Group 2016

Webinar: Digital Transformation: Strategy to Implementation using Open Group StandardsBy Sriram Sabesan & Dave Hornfordof Conexiam04 April, 2017


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Everything we do, is intended to …

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Final Thought“You have a choice: you can either create your own future, or you can become the victim of a future that

someone else creates for you.”Vice Admiral (ret.) Arthur K. Cebrowski


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Recording of the Webinarhttps://www2.opengroup.org/ogsys/catalog/D191


Agenda

» Who we are» Why This Whitepaper» Terms of Reference» Architecture as Guidance» A Quick Walkthrough» Takeaways» Q&A

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Who Conexiam, Dave & Sri are

» Conexiam is a specialist enterprise architecture firm» Key Services

– Straightforward & executable enterprise architecture – Enhance client’s in-house EA capability

» Very active in industry standards development– Open Group & SABSA Institute– TOGAF® & IT4IT® Standards– Data Lake, Digital Customer & EA Capability papers

» Sriram, Conexiam Partner» Dave, Conexiam Managing Partner

www.conexiam.com7


Why This Whitepaper» Conexiam’s Philosophy

– Share our practice– Use open standards as base of service offering

We don’t reinvent the basics of the wheel– Conexiam only does EA & EA Capability development

» Acceleration– Use Open Group standards, best practices, snapshots, and publications to accelerate digital

business transformation.– Frames conversations about strategy, IT delivery, governance, and digitization at all levels of the

enterprise– Highlight TOGAF’s framework support for Digital Transformation

» Effective guidance to our clients– Business Cycle alignment 8


Components Required for a Digital Enterprise

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Drives Agility and Improves MarginOperational Backbone

(Location Agnostic, Easily Replaceable, Highly Scalable)

Digital Backbone(End-to-End Visibility into Business

Processes)

External Engagement(Transforms Go-To Market Strategy)

Digital Products(Transforms

Business & Revenue Model)

Revenue and Margin


Terms & References

» Digital Enterprise / Service Provider– almost all processes automated / Has ability to respond to external stimuli in short

duration.– provides a channel to aggregate, store, or distribute contents

» Digital Strategy and Transformation– gain a competitive advantage by digitization of operations– changing the organizational behavior to work with fast feedback cycles

» Digital Fluidity– ability to change course with ease like a stream of water

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Transformation Project Stages

» It’s a cycle– Support Goals & Objectives– Manage Portfolio

• deliver competitive edge• sustain competitive edge

– Deliver products and services

– Support products and services

– Be Customer Centric

Strategy

Investment Planning

Delivery of Solutions

Operating Solutions

Usage Tracking


Rhythm of Business

– Even privately held businesses have a pattern.

– Based on calendar year or fiscal controls

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Capability Based Planning

» Capability– Not a decomposition model– An investment planning structure– Guides the transformation project– Sustain current operations

» Investment Approach

– Offset the capability investment recommendation by at least 6 months before the decision

» Debt (Business and Technical)– Value not realized– Time-to-Market not enabled

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Processes)




Revenue and Margin


EA as a Management Tool

» Iterative and incremental– Guide decisions with just

enough detail– Supporting strategic

decisions to operational control.

– Exercise all phases of TOGAF ADM

– Drill down to other standards as needed

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Assessing the Enterprise

» Directional vs Specific– Leadership focus is directional– Transformation is multi-

dimensional– Technology includes

applications, information, and infrastructure

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Guiding Investment Decisions

» Portfolio Decisions– An architected approach supports and guides decisions– Each purpose based architecture delivered in 7 week sprints– Solution Delivery phase controls 80% of effort and spend– Earlier phases are critical to guide this investment

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Why do we use Open Standards?

» Limits the need to reinvent» Focus on customer problems than “how to”» Provides a platform to evaluate products / solutions» Accelerates time-to-market for us and our customers

» Makes it easy to assess any enterprise» Enables decision makers to narrow down their differentiators» Consistency of execution across solution implementers


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Publications as Management Guidance

Security

(Digital) Solution Delivery

IT4IT

Strategy & Enterprise

Governance

TOGAF ADM

Implementation Approach

MSA, SOA RA, O-BDL, Open Platform 3.0

Infrastructure

Cloud Computing

Digital Strategy & Customer Experience

Open Platform 3.0


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Consideration forSolution Delivery

Application of a Standard or Publication How is it used?

Delivery AgilitySolution Delivery Environment Virtualization

The Open Group Standard: Service-Oriented Cloud Computing Infrastructure (SOCCI) Framework (for private or public cloud)

• metering service, billing service - (Maps to Usage Component, Chargeback and Showback component in IT4IT)

• monitoring and event management, capacity, performance and provisioning management, and configuration management (Maps to Detect to Correct Value Stream in IT4IT)

• resource pooling and virtualization (Maps to Fulfillment Execution component in IT4IT)

• operational (aka non-functional considerations) • solution platform (integration and health of solution)• managing usage (quality of service)This helps the architect define appropriate work packages and architecture specifications.

The Open Group Standard: SOA Reference Architecture (SOA RA)

Agile and DevOps The Open Group White Paper: IT4IT™ Agile Scenario: Using the Reference Architecture

Delivery Agility & Ease of ChangeArchitectural styles(for solutions to follow)

The Open Group White Paper: Microservices ArchitecturePublications related to SOA and Open Platform 3.0

Architecture specifications for workflow service, validation service, coordination service, or modes of navigation


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Consideration forSolution Delivery

Application of a Standard or Publication How is it used?

Ease of ChangeService Interface Management(of the solutions)

The Open Group Snapshot: Open Platform 3.0™

Architecture specifications for sensors, controllers, and ecosystem participants’ services interface-to-interface message transformation service (white-box brokering service)

Ease of Developing InsightsAnalytics and Data Mining Microservices and Business Data Lake (BDL) Architecture specifications, Operational Agility, Ability to identify

new revenue streamsIntegrating Systems of Perception (SoP) and Systems of Engagement (SoE)

SOCCI and SOA RA standards, and O-BDL Techniques like Complex Event Processing and Business Activity Monitoring to improve operational agility

Security & RiskSecurity Architecture The Open Group Guide: Open Enterprise

Security Architecture (O-ESA)The Open Group Guide: Integrating Risk and Security within a TOGAF® Enterprise ArchitectureThe Open Group White Paper: An Architectural View of Security for Cloud

Assessments, Governance, Architecture Specifications

Risk The Open Group Guide: Integrating Risk and Security within a TOGAF® Enterprise ArchitectureOpen FAIR™

Assessments, Governance, Architecture Specifications


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Refining your Assessment

» Service Design(Design Thinking)Has three parts:

– Outside-In– Inside-Out– Analysis

» Open ThinkingUse open standards

– accelerate– achieve scale


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Transformation Project Stages

» It’s a cycle– Support Goals & Objectives– Manage Portfolio

• deliver competitive edge• sustain competitive edge

– Deliver products and services

– Support products and services

– Be Customer Centric

Strategy

Investment Planning

Delivery of Solutions

Operating Solutions

Usage Tracking


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Architecture to Support Strategy

Strategic, Phase A

Strategic, Partial Phase B

Strategic, Partial Phase C

Strategic, Partial Phase D

Architecture to Support Portfolio

Segment, Phase A

Segment, Partial Phase B

Segment, Partial Phase C

Segment, Partial Phase D

Strategy to Portfolio

Budget Planning Budget Preparation Budget Allocation Budget Control

Partial Phase E, F, G

Architecture to Support ProjectCapability, Partial Phase

BCapability, Partial Phase

CCapability, Partial Phase

D

Requirement to Deploy

Capability, Partial Phase E

Partial Phase F, G, H

Request to Fulfill

Detect to

Correct

Architecture to Support Solution DeliveryCapability, Partial Phase

BCapability, Partial Phase

CCapability, Partial Phase

DCapability, Partial Phase

EPartial Phase F, G, H

SOA RA

Microservices Architecture

Open Platform 3.0

Open Business Data Lake

Customer Experience

Cloud Computing Infrastructure

SOCCI

Governance, Security

Inform Strategy

Improve ProductOr Service Excellence

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Segment, Partial Phase EStrategic, Partial Phase F

Margin & RevenueOpportunities

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Processes)




Revenue and Margin


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List of Publications for a Quick Start» TOGAF® Version 9.1, an Open Group Standard (G116), December 2011, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/g116.htm.» The TOGAF® Leader’s Guide to Establishing and Evolving an EA Capability, an Open Group Guide (G168), December 2016, published by The Open Group; refer to:

www.opengroup.org/bookstore/catalog/g168.htm.» World-Class Enterprise Architecture, White Paper (W102), April 2010, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/w102.htm.» World-Class EA: A Practitioners’ Approach to Developing Enterprise Architecture Following the TOGAF® ADM (W174), Jan 2017, published by The Open Group.» The Open Group IT4IT™ Reference Architecture, Version 2.0, an Open Group Standard (C155), October 2015, published by The Open Group; refer to:

www.opengroup.org/bookstore/catalog/c155.htm.» IT4IT™ Agile Scenario: Using the Reference Architecture, White Paper (W162), February 2016, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/w162.htm.» An Architectural View of Security for Cloud, White Paper (W116), May 2011, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/w116.htm.» Service-Oriented Cloud Computing Infrastructure (SOCCI) Framework, an Open Group Standard (C120), December 2011, published by The Open Group; refer to

www.opengroup.org/bookstore/catalog/c120.htm.» SOA Reference Architecture, an Open Group Standard (C119), December 2011, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/c119.htm.» The Open Group Cloud Ecosystem Reference Model (C141), an Open Group Standard, January 2014, published by The Open Group; refer to:

www.opengroup.org/bookstore/catalog/c141.htm.» The Open Group Service Integration Maturity Model (OSIMM), Version 2, an Open Group Standard (C117), November 2011, published by The Open Group; refer to:

www.opengroup.org/bookstore/catalog/c117.htm.» A Framework for Digital Customer Experience, White Paper (W165), March 2016, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/w165.htm.» Microservices Architecture, White Paper (W169), July 2016, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/w169.htm.» Open Platform 3.0™, Open Group Snapshot (S152), October 2015, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/s152.htm.» Customer Experience-Driven Enterprise Architecture: How to Revitalize your DSP Business, White Paper (W166), April 2016, published by The Open Group; refer to:

www.opengroup.org/bookstore/catalog/w166.htm.» Integrating Risk and Security within a TOGAF® Enterprise Architecture, an Open Group Guide (G152), January 2016, published by The Open Group; refer to:

www.opengroup.org/bookstore/catalog/g152.htm.» Open Enterprise Security Architecture (O-ESA), an Open Group Guide (G112), April 2011, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/g112.htm

www.opengroup.org/bookstore/catalog/g112.htm.» TOGAF® and SABSA® Integration, White Paper (W117), October 2011, published by The Open Group; refer to: www.opengroup.org/bookstore/catalog/w117.htm.

http://www.opengroup.org/bookstore/catalog/g116.htm


http://www.opengroup.org/bookstore/catalog/w102.htm

http://www.opengroup.org/bookstore/catalog/c155.htm









http://www.opengroup.org/bookstore/catalog/s152.htm





Q & AThank You!


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Extract from Q&A Session» In light of Digital Transformation, is EA due to a transformation itself?

– We don’t think so. We see EAs who focus on IT transformation (adopting cloud or DevOps) or managers of landscape documentation or guide change. For the people who guide change, there is no need to transform. It is just that time to provide useful inputs before decision has changed. Successful organizations revisit their portfolio several times in a year. They have to provide guidance to maintain direction and perform just enough course-correction.

» why would digitized processes make the company more agile? I did not get it yet. It feels like a digitized process fixes the flow of the

stream instead of making it agile.– Digitization of processes is not enough. We need to have the processes instrumented as well. An instrumented process renders insights into cycle times

and fractures in the flow. It also tells you where there are services that operate like a “monolithic blackbox”. As you break this blackbox, new insights emerge. Insights that tell you “accommodative” thresholds of the users. Eg: Time on page, abandonment rate, bounce rate. You not only fix the flow stream, you will change the stream as often as necessary, until the “sticky” patterns emerge. Once you address the flow, you will see rate of change of business rules. Based on business rules, you will change service, hence workflow. So, agility is driven by digitized process and process change is driven by agility.

» Have you been able to implement actionable BI through inputs at various levels of the enterprise and how are conflicts between

various inputs at various levels handled and how are responses co-ordinated in practice in an enterprise– Useful BI is what we chase. As you have seen from our presentation, we think architecture guides and supports decision making. Decision making should

be fact based. Executive and operational decisions always balance stakeholder concerns. We have to solve for all concerns – not just a few. Operational BI rolls up into directional strategic BI data. We constrain the data to be collected and reported upon based on concerns at various levels. When people see data, they will try to use them & make inferences – whether it is helpful or not. By guiding what to collect, why they are being collected and which form of visualization helps fact based decision making, we are able to avoid conflicts and we are able to coordinate across all levels.


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Extract from Q&A Session» How do you relate capability-increments to capability time-lines in practice in the enterprise. ie how do you establish

capability points along the spokes of each dimension in a "spider-diagram" for example. How do we communicate these increments>clients

– When we roadmap, we define the transition stages as value realization / stopping points. Capabilities are defined to increment in maturity. These increment levels are defined based on assessments against the target and gap against current state. For example, if we want the client to improve portfolio management, we define the increment stages as “assessment”, “end-to-end coverage”, “value enablement”, “bi-directional – strategy driven and operational adjustments”. By articulating these at the beginning of the transformation journey, supported by measurements and indicators that demonstrate achievement of the increment level, we are able to show the movement in the spider diagram against the target and stakeholder concerns.

» How do you improve response-times in cloud-computing methodologies especially public clouds where resources are

located at large distances– There are lot of techniques. To state a few:

• Think about CDNs; Breaking the number of assets in a page; converting asset types from dynamic to static; caching and edge computing; API gateways / REST APIs.

• Separate transactional interaction from back office operations; minimize transactional interaction – leverage data about the customer / user from back office data; Do just enough interaction;

• Think about enabling interaction with the customer / user in the most important bits, as rest of the page continues to render;• Unless we know the specifics of your business, we can’t get to a specific recipe for your challenge


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Extract from Q&A Session» I understand the benefits of using TOGAF and following the ADM concepts, but have challenges in convincing customers who are not familiar. Can

you speak to this?– To be honest, we don’t talk about ADM at all. We provide assurance to the customer that we use an Open Standard, that is peer reviewed and widely adopted. The brand

guarantee and method guarantee is all that matters. We communicate delivering value on time, short sprints, usable architecture. Customers want to know about our ability to solve their problem and the approach we use is well established and proven. In the first week of our engagement, we train our customer’s EA team on our method. At the end of the engagement, after the key stakeholders have seen the proof that there is a roadmap to solve their problems / challenges, we show the EA team, how ADM was applied and the work they did over the past 7 weeks is actually exercising the ADM. This way, all barriers are broken; both the client and us get the value we wanted.

» Slide 24, do you have the keys defined as per the disparate colours

– Good question. Deep blue on the top is TOGAF. Followed by brown is about Open FAIR and O-ESA. Turquoise in the middle is IT4IT. Deep purple is Open Platform 3.0 and SOA family of documents. Finally, the green is about SOA for Cloud. Light blue feedback loop is just an indicator – not standards or publication.

» In your experience, do you find that this framework applies more to traditional enterprises (med to large) v. startups/disruptors? I am coming at it from

Lean Startups from Eric Reis– Good question. This could be a long conversation. Best handled offline. Drop an email to [email protected]. Also, see my presentation at the Open Group

conference earlier this year at San Francisco.– However, here is a short version. This method applies to Lean Startups as well. During the webinar, you heard us say “value” several times. We use Business Model

Canvas to clarity the customer segment and what is of value to the customer. When value is defined, we can then identify cost and price; what drives cost and what demands premium pricing. Next is clarifying the configuration of a value chain. Large enterprises are likely to develop blind spots about frictions in their processes and customer experiences. This top down model helps them see the gaps. A start up, invariably start with an intuition about the gaps and begin to deliver. They don’t want to think about standards, but deliver working solution. Because, many people deliver the building blocks using the standards – say an m8 fastener or “infrastructure-as-a-service” or SWIFT for international money movement. A start up that is well aware of these methods, reduce their time to market dramatically. That is also why, our method is customized to deliver value every 7 weeks.

mailto:[email protected]


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Extract from Q&A Session

» when stakeholders have conflicting interests - surely the decision will go with the person with the deepest pocket and strongest personality

– That is exactly why we classify stakeholders as “Sponsors”, “Decision Makers”, “Subject Matter Experts”, “Users” and “Governors”. We provide role clarity and decision rights at the beginning of our engagement; remind our client participants as often as necessary. When we present the roadmap and portfolio with clear linkage and traceability to goals/objectives/value, we see a shift in the mindset of these “deep pocket” personalities. We also solve for the concerns of all stakeholders. So, they are able to see themselves in the roadmap and the impact they provide for the overall value of the enterprise. This also satisfies them. However, we are not successful always. We follow a three-strike model. We will present the roadmap and decision path twice – we will disagree with such stakeholders twice. Not the third time.


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Thank you for your attentionI hope you have a great event with us …


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Here is what I was thinking...a) Tell about why we align to business cycleb) Tell about capability based planning, risk and debtc) Digital Transformation requires clarity of purpose - hence the slide from CISR

(a), (b) and (c) are crucial to guide an enterprise.

So, how do we go about it.

1) Use Architecture for a purpose to frame the conversation and constrain the roadmap2) Talk about 20-80 spend & effort... 20% on planning drives rest of the 80%. That 80% is in solution delivery.2a) Agile / Predictable EA2b) We use standards/ reference models, etc… to speed our delivery3) As architects, our job is to help teams deliver consistently and faster. Decision makers need to know components and what to govern. Implementers need building blocks.3a) We need to get out of the way - architecture isn’t design (thinking of CSC, Strategic Roadmap to Pega…)4) IT4IT provides components, governance and building blocks5) DT is heavily reliant on cloud, API and cross boundary information flow.6) Open Standards based platforms make it easy to select a provider for cloud based compute, storage, and data movement.7) API is a representation of services and its granularity. It is guided by rest of the standards.8) We, at Conexiam, use these standards to define the work packages and building blocks. Using standards based definitions makes communication and governance easy. Implementers know what they need to deliver against and how to deliver.

9) There is a cycle. Strategy Formulation to Solution Implementation; Tracking the usage of the implemented solution to create next (better) version of the solution or create new services. Design Thinking / Service Design and deep tracking of customer experience helps complete the loop. Design thinking reduced friction in first time adoption. Customer Experience management validates intent vs reality. This last part is where, we have extended the standard and we are in the process of creating a new guide or a framework.

Digital Transformation: Using Open Standards to Accelerate the Journey

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Transcript of Digital Transformation: Using Open Standards to Accelerate the Journey