Leading(Digital(Transformation with(Business(Architecture · Leading(Digital(Transformation...

Leading(Digital(Transformationwith(Business(Architecture

Mike(RosenResearch(VP,(Strategic(Architecture

3(November(2016

Digital'Disruption'– Innovation'Matters

2

Airbus'A380Not'an'airplane,''

but'a'flying'

datacenter700+'applications

Hitachi'

Visualization'

Predictive'Crime'

Analytics

American'Standard'

DXV'Designer'

Fixtures

Low'volume,'highH

margin,'fashion'

products

Takes'hunches'and'

intuition'and'backs'

up'with'data

In(Many(Forms(and(Industries

©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 3

Leadership(Transformation

OmniGExperience(Transformation

InformationTransformation

Operating(ModelTransformation

WorkSourceTransformation

66%(of(CEOs(will(have(

digital(transformation(at(the(heart(of(their(corporate(strategy

80%(of(organizations(will(

overhaul(their("digital(front(door"(

to(personally(support(1,000x(more(customers

65%(of(large(enterprises(will(be(information(based(companies

25%(of(manufacturers(will(generate(over(

half(of(their(revenue(from(digitally(based(

services

10%(of(work(will(be(sourced(from(“skillGbased(

marketplaces”

$1.3T&Invested&in&DX&Initiatives&Worldwide&in&2016

Investment: Collectively,(organizations(will(invest(over($3(trillion(on(3rd(Platform(initiatives(in(2016

Source:'IDC,'2016Success Rates: By(2018,(70%(of(siloed digital(transformation(initiatives(will(fail

Business: 2/3rd of(the(G2000(will(put(digital(transformation(at(the(center(of(their(business(strategy

Technology'Underpins'Digital'Transformation'

4

Will'these'Technologies'Transform'Your'Industry?

Fraud(ReducedCognitive'analytics'reduce'fraud,'waste,'and'

abuse'by'10%,'resulting'in'$300'billion'in'

global'savings'

Public(Safety(Transformed75%'of'State'and'Local'Governments'Use'

Citizen'Data'in'Transportation'Management'

and'RealHTime'Crime'Centers.

Data(Breaches(Mitigated50%'of'the'top'100'global'retailers'encrypt'all'

customer'data'in'flight'and'at'rest,'declaring'

“Trusted'Data'Certification”

Surgery(AutomatedSurgeons'use'computerHassisted'or'robotic'

surgery'techniques'to'assist'in'50%'of'the'most'

complex'surgeries.

Logistics((‘Last(Mile’(Revolutionized60%'of'manufacturers'are'able'to'choose'

between'same'day'supply'chain'and'3D'printed

Field(Service(RevolutionizedField'service'team'staffs'drop'by'40%

In'the'Next'3Q5'Years

The'Internet'of'Things


#IDCDirections

The Internet Of Things @ IDC

© IDC Visit us at IDC.com and follow us on Twitter: @IDC12

Connected Car

Smart Products

Smart Utilities

Smart Analytics

‘Makers’‘Users’

Home IoT

Industrial IoT

Information Technology

Operations Technology

Wearables

Platforms

Intelligent Gateways

Consumers

Connected Health Smart Energy

Smart Transportation Smart Factories

Enterprise ‘Edge’

IoT Connected'Device'Forecast

©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 7#IDCDirections

IoT Connected Device Forecast 2015 – 2025*


0

10

20

30

40

50

60

70

80

90

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Billio

ns

* Scenario Based ( 2020 – 2025)

4 8 0 0, connected IoT devices per minuteToday

#IDCDirections

IoT Connected Device Forecast 2015 – 2025*


0

10

20

30

40

50

60

70

80

90

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Billio

ns


1 5 2 2 0 0, connected IoT devices per minuteBy 2025

IoT Data'Sources

©'IDC'''Visit'us'at'IDC.com'and'follow'us'on'Twitter:'@IDC 8#IDCDirections

The Data Sources For IoT: 2015 – 2025


-

20

40

60

80

100

120

140

160

180

200

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Classically Created IoT Relevant IoT Actionable

ZByt

es


Growth From2020 - 2025

1.3 X

3.8 X

8.6 X

Source:'IDC'Feb'2016'analysis'of'CB'InsightsdatabaseW'IDC'industry/function'categorization'of'results'of'search'for'companies'with'keywords''“Machine'Learning”'and/or'“AI”

IoT CognitiveComputing

Next'Generation'Apps

Journey'to'the'Product(Innovation(Platform

10

Source:'IDC'DX'Practice,'2016

11

Source:'IDC'DX'Practice,'2016

The(3(Masteries(Within(Digital(Transformation

12

“By 2017, 60% of digital transformation initiatives will not be able to scale due to a lack of

strategic architecture”

Sustainable'DX'Requires'Strategic'Architecture

Drivers

• IT'spending'shift'to'LOB• Independent'sourcing'actions'increase'costs'and'complexity

• Need'for'agility'and'quickness

Benefits

• Improved'customer'experience

• Maximum'value'and'synergy

• Speed'and'flexibility• Positioned'for'continual'change

Challenges

• Tactical'imperatives'versus'strategic'concerns

• Culture• LoBs want'to'maintain'local'control

• Inconsistency'and'redundancies

Business

Information

Application

Technology

Supportdecisions

ManageInformation

Providecapabilities

Provideinfrastructure

Security

Protectassets

Performance

Ensureoutcomes

Service

ManageServices

Governance

Manageinvestment

Architecture'Program,'Organization,'Team

Internal Drivers''''''''''''''''''''''''''''''''ExternalBusiness• Strategy'+'Tactics• Goals'+'Objectives

Technology• Costs,'Complexity• Lifecycles

Business• Competition• Regulations

Technology• Trends• 3rd Platform

Strategic'Architecture'Framework

©'IDC'''2015 13

2

Consumer

Provider

Interface Function Data

Implementation

Business Financial

Operational Technology Broker, Integrate, Manage

Charge, Meter, Cost

Functions, Information

SOA, Platform, Infrastructure

Contract

Every Service has four dimensions

Every Service has a consumer, separated from the provider by an interface, and joined by a contract, spanning the 4 dimensions

Broker

Business'

Service

Anatomy'of'a'Service

©'IDC'''2015 14

3

Consumer

Business

Foundational

Interface

Implementation

Technical

Platform

Domain

Supporting

Operations

Contract

Business(Provider)

BusinessQ0riented'Service

Implementation

Business'Oriented'ITaaS Services

©'IDC'''2015 15


• RELIABLE(COMPUTING(AND(COMMUNICATIONS

• EMPLOYEE(PROUCTIVITY

• SYSTEMS(RESILIENT(TO(DISASTER

IT'Services

CustomerHFacing'

Business'Services

Ecosystem

Business'Services

• CUSTOMER(ACQUISTION(AND(RETENTION

• CONTEXTUALIZED(CUSTOMER(EXPERIENCE

• NEW(REVENUE(STREAMS

• INFORMATION(AS(A(PRODUCT

• CONNECTED(SERVICES((AUTOMATION)

• NEW(BUSINESS(MODEL

Enterprise'

Business'Services

• DATA(FOR(IMPROVED(DECISION(MAKING

• EFFICIENT(BUSINESS(PROCESSES

• SECURE(CORPORATE(DATA

SERVICE(LAYER BUSINESS(OUTCOMES

CustomerGFacing(&(Ecosystem(Business(Services

What'is'Business'Architecture?! “A(blueprint(of(the(enterprise(that(provides(a(common(understanding(of(the(organization(and(is(used(to(align(strategic(objectives(and(tactical(demands.”(

! A'way'for'business'to'express'its'intentions'consistently'and'unambiguously'while'staying'focused'on'stakeholder'value

! NOT'a'replacement'for• Planning• Business'Analysis• Good'management'and'judgment• Governance• IT'Architecture

©'IDC'''2015 17

What'is'the'Business'Architecture?! Could'we'have'built'a'Business'Architecture'for'this'company'in'1928?

! How'would'it'compare'to'the'BA'today?! How'would'the'Enterprise'Architecture'compare?

Fiat'Lingotto Plant'Q1928©'IDC'''2015 18

Capability

Information Value(Stream

Organization

Foundations

Vision,(Strategy,(Tactics

Policies,(Regulations

Extensions

Stakeholders

Products,(Services

Events

Metrics,(Measures

Initiatives

Processes,(Rules

Elements'of'Business'Architecture

Adapted'from'BIZBOK™'V4.1Business'Architecture'Body'of'Knowledge©'IDC'''2015 19

Capability

Information Value(Stream

Organization

Foundations


Policies,(Regulations

Extensions

Stakeholders

Products,(Services

Events

Metrics,(Measures

Initiatives

Processes,(Rules

Elements'of'Business'Architecture

WhyWho/When

What

How

When

HowWell

Adapted'from'BIZBOK™'V4.1Business'Architecture'Body'of'Knowledge©'IDC'''2015 20

Business'Architecture'FoundationsStrategic

Strategic'Planning

PartnerRelations Marketing

Predictive'Analysis

Risk'Management Innovation

Core

InventoryManagement

Customer'Management

ProductManagement

Logistics ExchangeNetwork IT

SupportHR Finance Legal

Register'for'Exchange

Advertise'Items

Provide'order'info

ProcessOrder Notify

Independent

ABC$Insurance

Property$&$Casualty

Life$&$Disability

Health

EnterpriseDiagram'Key

Business$Unit

IT

Finance

Marketing

Legal$Dept.

Purchasing

HR

Decomposes$into

Decomposes$into

Decomposes$into

Decomposes$into

Decomposes$into

Decomposes$into

Decomposes$into

Decomposes$into

Decomposes$into

Source:(TSG,(Inc.

CapabilityDefines'‘what’'the'business'does'(not'how).'Capability'maps'provides'a'categorized'and'hierarchical'organization'of'those'capabilities.

Value,Stream

Provides'a'stakeholder'perspective'of'value'accretion'across'their'endQtoQend'interaction'with'the'business.'Typical'external'stakeholders'are'customers,'partners,'and'suppliers.'

Information

Identifies'the'critical'information'(fundamental'business'entities)'that'is'needed'to'support'the'capabilities'and'operate'the'business.'Particularly'important'is'the'information'that'is'shared'across'the'enterprise'to'provide'a'consistent'omniQexperience.

Organization

Identifies'the'organizational'structure'of'the'enterprise'and'the'responsibilities'and'resources'of'each'organizational'unit.'Stresses'the'interactions'and'collaboration'across'business'units'rather'than'the'hierarchical'reporting'structure'of'an'organization'chart.

©'IDC'''2015 21

Business'Architecture'Scenarios! Customer'attrition'reversal! Building'a'360'degree'customer'view! Investment'analysis'and'funding! Merger'and'acquisition'planning'and'deployment! Application'rationalization! Strengthening'the'supply'chain! Business'unit'consolidation

! New'customer'engagement! New'digital'product'or'service'! Business'transformation

©'IDC'''2015 22

Infrastructure

Enterprise'Solution'Framework

Interfaces

Rich'User'Experience

Big Data &

Analytics

Social Business

Socialytics

ExecutiveDecisionSupport

Collaboration,Community,(Exchange

Measurement

Cloud

Internet'of'Things

Mobility

CustomerExperience

Outcomes

Big'Data'

Business'Processes

Interface(Touch(Points

Enterprise'CX'SolutionsStrategic,Business,Architecture

Data/,Information,Architecture

Enterprise,Security,Architecture

Enterprise,Application,Architecture

Enterprise,Technology,Architecture

PerformanceArchitecture

Stakeholder'Perspective! 3rd platform'technologies'are'forcing'business'redesigned'around'user'experience

! Fundamental'Questions:• Given'all'the'possible'actions…

• What'are'the'key'interface'touch'points?

• What'will'provide'the'best'omniQexperience?

• What'information'is'needed,'or'can'be'acquired?

• What'will'provide'the'best'value'for'the'user,'AND'the'enterprise?

! Business'architecture'helps:• Understand'the'customer'interaction'scenarios

• Understand'the'value'proposition

• Explore'and'identify

©'IDC'''2015 24

Value(AddedDifferentiation

Added&cost&/&complexityoutweighed&by&business&value

Consistency,'Interoperability,'Complexity! Identify'what'should'be'common in'order'to'maximize:

• Brand,'customer,'experience,'infrastructure• Efficiency'and'effectiveness

! Identify'what'could'be'different in'order'to'maximize:• Channel,'customer'segmentation,'geography• Market'differentiation,'competitive'advantage

! Define'interfaces'to'extend'the'common'to'support'valuable'differentiation

25

DX(&(3rd Plaftorm Services

ExtensibiliyInterface

Catalog&of&integrated,&brokered,&managed&IT&Business&Services

DX(&(3rd Plaftorm Services

Common(Business(Services

Common(Infrastructure

• EVERY place'that'something'is'different'results'in'added'costs'and'complexity

• Architecture'provides'a'framework'for'cost/benefit'analysis'

Integrated(OmniGExperienceCommon&where&possible.&Different&where&competitive.

Impact'Analysis:'Synergy'and'Conflict

Advertise'Items

Provide'order'info

ProcessOrder Notify Advertise'

ItemsProvide'order'info

ProcessOrder NotifyAdvertise'

ItemsProvide'order'info

ProcessOrder Notify

Customer'Management

Customer'AcquisitionAttraction

Data'Collection

Validation

Customer'InformationCreation

Removal

Maintenance

Customer'ServiceProblem'Resolution

History'Tracking

Outreach

Customer'ProfilingAggregation

Analysis

Demographics

Value'Stream'A Value'Stream'B Value'Stream'C

Capability(to(Value(Stream(Mapping(tells(us(that(the(same(capability(is(used(in(multiple(places

Synergy:(This(enhancement(could(add(value(elsewhere.

✓ ✗ Conflict:(The(proposed(change(would(break(this(existing(value(stream."

Strategy(requires(an(enhancement(to(support(a(new(customer(experience

©'IDC'''2015 26

Strategic'Perspective

! Strategic'execution'is'a'weak'link

! Strategic'fidelity'is'worse• By'the'time'the'‘strategy’'it'passed'down'2'or'3'levels,'as'much'as'50%'of'the'intent'and'context'is'lost

! Business'architecture'helps:• Quickly'evaluate'options'for'strategic'direction• Clearly,'unambiguously'articulate'strategic'intent• Define'initiatives'to'implement'the'strategy

“In(preparing(for(battle,(I(have(always(found(that(plans(are(useless,(but(planning(is(indispensable.”( Dwight,D.,Eisenhower

Only'37%'of'executives'say'their'companies'are'“very'good'or'excellent”'at'strategic'execution

Only'23%'blame'current'economic'conditions'as'a'major'factor'in'their'lack'of'executionSource:''2010'HBR'Survey'of'1000'executives

©'IDC'''2015 27

suggests

scenarioexploration

Capability


Initiativessynergies,&conflicts

priorities

support

Experience,Events

engage

Information

support

Metrics,(Measures

ensure

Organization

implement

Value(Stream

Stakeholders

engage Products,(Services

Enhancing'Design'Decisions

©'IDC'''2015 28

Make'RBS'a'Great'Bank

Retail'Customers

Pay'Bills

Date,'email,'adQhoc,'…

Bill'Payer,'Overdraft,'fraud

Vendor',amount,'history,'time','location

Bill'payer,'trending,'acct'history,'

overdraft,'fraud,'compliance…

Mobile'bill'pay

Adoption'%,'satisfaction,'error'rate,'failure'rate,'abandon'rate

Business'architecture'enables'effective'initiative'planning'and'improved'strategic'execution'

! Identifying'the'most'important'things'to'change'/'enhance'in'order'to'achieve'strategic'outcomes'and'improve'customer'experience'and'value

! Maximizing'synergies'and'avoiding'conflicts! Creating'metrics'to'measure'outcomes

©'IDC'''2015 29

Business'/'IT'Transformation

Information'Map

Business(Architecture IT(Architecture

Data'Architecture

Value'MapCompetitors

External

Business1DomainE

get1consolidatedinformation

consolidatedinformation

req.1land1lines1billing1info

land1lines1billing1info

get1billing1info

billing1info

add1service

change1service

req1service

info

service1info

reql1fault1info

fault1info

req.1marketing1info marketing1info.

req.1mobil1billing1infomobile1billing1info.

req.1customer1info.

updatecustom

erbilling

Internet1billing1info

req.1Internet1billing1info

customer1info

Service1Provis ioning

Customer Portal

Billing

FaultManagement

MobilePhones

Internet

Land1Lines

CustomerManagement

Marketing

Process'and'Case'Mgmt,UI'Deployment

Implemented(by

Capability'Map

Party&management&service

Document&management&service

Motor&Vehicle&Report&(J2EE)

Document&management&system&(FileNet)

Policy&Management&service

Location&management&service

Commercial&auto&Policy&and&Products&administration

(CICS,&mainframe)

Commercial&property&Policy&and&Products&administration&

(CICS,&mainframe)

Commercial&property&

rating&(CICS,&mainframe)

Centrus&(standalone&Java)

Insurance&to&value&amount&for&a&

location&calculator&(VB6,&Microsoft)Policy&Financials&

Database

Existing&Systems

Business&Services

Business&Components

Integration&Access

ISO&Public&Protection&Codes&Database

Commercial&auto&rating&(VB6,&

Microsoft)

Generate&Policy&notice&

(VB6,&Microsoft)

SOA'Business'Services

©'IDC'''2015 30

Three'Actions'Toward'Digital'Transformation

31

Create(expectationG

altering(customer(experiences

1

Use(information(as(a(competitive(

advantage

3

Create(new(revenue(streams(with(connected(

services

2

Business'Architecture'provides'the'context'for'sustainable'transformation

Architecture'Value'Proposition

©2015'IDC''''''''''''32

Enterprise Scope Consistency Clarity Cost + Complexity Risk Mitigation

Value Proposition

StrategicArchitecture

DX Strategy

Portfolio

Management

Business / IT

Roadmap

Strategy to

ExecutionSourcing

3rd Platform Business, IT, and Digital Transformation

Mike(RosenResearch(Vice(President

[email protected]@mikerosen99

Leading(Digital(Transformation with(Business(Architecture · Leading(Digital(Transformation...

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