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 organisations 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

Digital Strategy, Architecture And Transformation

Extending And
Exposing Business
Processes Outside
The Organisation

Digital
Transformation
Statement About The
Organisations Digital
Positioning, Operating
Model, Competitors And
Customer And Collaborator
Needs And Behaviour

Digital
Strategy

September 7, 2016

Future State
Application, Data
and Technology
View To Achieve
Digital Operating
Status

Digital
Architecture

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

Lack Of An Enterprise Architecture View Leads To

Unmanaged IT Complexity
Unmanaged
Complexity in IT
Landscape

Leads
To ..

September 7, 2016

Increased Cost

Duplication in
Resources to
Develop, Operate
and Maintain
Business Systems

Reduced
Flexibility

Cannot to Exploit
Economies of
Loading and
Scale

Delays in
Delivering
Changes

Complexity
Causes
Difficulties and
Uncertainties

Thus
Negatively
Impacting on
Business
Performance

Longer Design,
Build, Test and
Delivery Time
5

Why Enterprise Architecture?

To Address This
Complexity

Provides a Set of
Tools and Methods

Provides

Enterprise
Architecture

September 7, 2016

But

Need to Measure
Effectiveness of
Enterprise
Architecture In
Order to Maximise
Business Value
6

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

September 7, 2016

Enterprise Architecture And Digital Transformation

Enterprise architecture provides the tools and the

approaches to manage the complexity of digital
transformation

September 7, 2016

General Aspects Of A Digital Strategy

Definition/
Diagnosis

Governing
Policies and
Principles

Action Plans

Define the
circumstances of the
issue that give rise
to the need for a
strategy

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?

Detail the core

objectives of the
strategy to address
the circumstances

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?

Expand into a series

of co-ordinated and
integration actions
to achieve the core
objectives

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

September 7, 2016

External Interactions And Internal Organisation

Reality
External Organisation Interactions

Internal Organisation Reality

September 7, 2016

10

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:

September 7, 2016

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Objectives Of Digital Strategy

Relationships And
Information
Commerce And
Transactions
Content and Management

Objectives

Marketing and
Communications
Efficiency
Brand
Innovation

Digital Strategy

Profit
Technology
Achieved By

Processes
People

September 7, 2016

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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
September 7, 2016

13

Getting Digital Transformation Right Means

Greater
Efficiency

Increased Ability To Provide

Innovative Products And
Services To Customers And
Partners Across Multiple
Channels

Greater
Responsiveness

Increased
Customer
Satisfaction

September 7, 2016

Reduced
Cost

Improved
Competitive
Positioning

Increased
Customer
Retention

Increased
Agility
14

Getting Digital Transformation Wrong Means

Wasted
Investment

Wasted Time and

Lost Opportunity
Cost

Unfulfilled
Expectations

Wasted
Resources

Frustrated
Customers And
Employees
September 7, 2016

Lost Revenue
And Profits

Loss Of
Customers
Loss Of
Competitive
Positioning
15

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
September 7, 2016

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Digital Strategy In Business And IT Context

Required
Operational
Business
Systems

Business
Processes

Systems
Design/
Selection

Business
Strategy

Business
Objectives

Business
Operational
Model

Business IT
Strategy

Enterprise
Architecture

IT Function
Strategy

Management
And
Operations

Systems
Design/
Selection

Required
Support
Business
Systems

Digital
Strategy

Digital IT
Architecture
September 7, 2016

Solution
Implementation
and
Delivery

Required
Operational
Processes
17

Digital Strategy And Enterprise Architecture

Required
Operational
Business
Systems

Business
Processes

Systems
Design/
Selection

Business
Strategy

Business
Objectives

Business
Operational
Model

Enterprise
Architecture

Business IT
Strategy

IT Function
Strategy

Digital
Strategy

Digital IT
Architecture
September 7, 2016

Solution
Implementation
and
Delivery

Management
And
Operations

Systems
Design/
Selection

Required
Support
Business
Systems

Required
Operational
Processes
18

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
September 7, 2016

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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
September 7, 2016

20

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

September 7, 2016

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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

September 7, 2016

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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

September 7, 2016

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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

September 7, 2016

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Digital Architecture In Context

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

Enterprise Architecture needs to be involved in the development of digital

architecture
Digital architecture needs to be at the core of the organisations wider Enterprise
Architecture
September 7, 2016

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Digital Architecture In Context

Digital architecture does not exist in isolation entirely

separate from an organisations 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

September 7, 2016

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Digital Architecture In Context Linkages

Enterprise Architecture
Security
Standards

Overall Architecture Framework

Information and Data Architecture

Data
Architecture

Business Process, Products

Solution Design
Business Context
Infrastructure
Architecture

Information
Systems
Architecture

Solutions
and
Application
Architecture

Business
Architecture

Digital
Architecture

Service and
Integration
Architecture

Security
Architecture

Technology
Architecture

Service Operation
and Support
September 7, 2016

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Digital Reference Architecture

External Party Interaction Zones, Channels and Facilities

Digital Specific Applications and Tools
Internal Interaction Management
Security,
Identity ,
Access and
Profile
Management

Responsive
Infrastructure

Integration

Operational and
Business Systems

September 7, 2016

Applications Delivery and

Management Tools and
Frameworks
System Development,
Deployment and
Management
28

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
September 7, 2016

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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
September 7, 2016

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External Party Interaction Zones, Channels and

Facilities Level 2 Elements

Web Pages
and Web
Forms

Web
Browsers

Mobile
Channels

Product and
Service
Catalogue

Web Chat

Search

Applications

Web Content
Management

Call Centre

Preferences

Payments
and
Transactions

Social
Networks

SMS

Data Access
and
Presentation

September 7, 2016

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Security, Identity , Access and Profile Management

Level 2 Elements

September 7, 2016

User Directory

Single Signon

Personalisation

Certificate
Management

Authentication

Logging

Access Control

Monitoring

Identity and
Access
Management

32

Digital Specific Applications and Tools Level 2

Elements

Web Content
Management
System

Content Authoring

September 7, 2016

Multi-Channel
Analytics

Data Collection,
Storage and
Management

Product and Service

Catalogue
Management

Next Best Action

Document
Management

Payment Gateway
and Merchant
Services
33

Responsive Infrastructure Level 2 Elements

September 7, 2016

Resilient and
Scalable Firewalls

Resilient and
Scalable Traffic
Management

Resilient and
Scalable Application
Servers

Data Security and

Encryption

Resilient and
Scalable Load
Balancers

Resilient and
Scalable Web
Servers

Resilient and
Scalable Data
Storage

Usage and
Performance
Monitoring
34

Internal Interaction Management Level 2 Elements

September 7, 2016

Business Process
Management

Case
Management

Resource
Management

Customer
Relationship
Management

Service
Management

Product
Management

Sales and
Marketing

35

Integration Level 2 Elements

September 7, 2016

Service Co-ordination
and Orchestration

ETL Services

Data Management

Application Integration
Services

Integration
Development and
Deployment

Monitoring and
Management
36

Operational and Business Systems Level 2

Elements

Billing and
Assurance

Fulfilment
Management
September 7, 2016

Customer
Information and
Relationship
Management

Partner Relationship
Management

Human Resource
Management

Finance
Management

Legal, Regulatory,
Environment,
Health and Safety
Management

Facilities
Management
37

Applications Delivery and Management Tools and

Frameworks Level 2 Elements

IT Leadership
and Governance

Programme and
Project
Management

Business Process
Management

Capacity Planning,
Forecasting ,
Demand and
Supply
Management

Strategic and
Business
Planning

Sourcing and
Selection
Management

Benefits
Assessment and
Realisation

Organisation
Design, Planning
and Management

September 7, 2016

Infrastructure,
Networks and
Communications

Security,
Continuity and
Disaster Recovery
38

System Development, Deployment And

Management Level 2 Elements

September 7, 2016

Solution
Architecture and
Design

User Experience
Design

Solution
Development and
Delivery

Testing

Business and
Process Analysis
and Design

Service Provisioning,
Service Delivery and
Service
Management

Change and Change

Management

Data, Information,
Knowledge Asset
Management
39

Digital Reference Architecture

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
September 7, 2016

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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

September 7, 2016

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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

September 7, 2016

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Digital Reference Architecture

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 organisations Enterprise Architecture and other
subsidiary architectures

September 7, 2016

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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
September 7, 2016

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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
September 7, 2016

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
45

Route To Digital
Digital Transition
And
Transformation

Digital
Architecture
And IT Strategy

Digital Execution,
Delivery and
Operations

Business Strategy

Digital and IT
Strategy

Digital Capability
Delivery Roadmap

Vision and Guiding

Values for Digital
Exploitation

Organisation
Readiness For
Digital

Digital Solutions

Digital Architecture

Supporting
Solutions

Measurement
Framework

Measurement and
Reassessment

September 7, 2016

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Digital Organisation Capabilities

Organisational
Capabilities for
Digital

Strategy,
Culture, Change
and
Governance

Digital
Architecture

Digital Solution
Delivery

Digital
Operation

Customer
Experience

Analytics and
Insight

Digital
Technology
Foundation and
Infrastructure

External Party
Interaction
Zones,
Channels and
Facilities

Personalisation

Programme
Management

Service Delivery
and
Management

Research and
Analysis

Single View of
the Customer

Infrastructure

Digital (and
Other) Solution
Governance

Content
Management

Security,
Identity ,
Access and
Profile
Management

Portfolio
Project
Management

Service
Analytics

Marketing and
Advertising

Analysis and
Reporting

Security

Organisation
Change for
Digital

Responsive
Infrastructure

Digital Specific
Applications
and Tools

Business
Analysis and
Engagement

Organisation
Management

Design

Data Collection
and
Management

Integration

Process
Management

Internal
Interaction
Management

Integration

Tool Selection
and Delivery

Capacity
Planning

Usability

Customer
Segmentation
and Insight

Enterprise
Architecture

Operational
and Business
Systems

Applications
Delivery and
Management
Tools and
Frameworks

Solution
Architecture

Digital Strategy
Development

September 7, 2016

System
Development,
Deployment
and
Management

Customer
Journey
Management

Service Delivery
and
Management

Solution
Delivery
47

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

September 7, 2016

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Digital Organisation Capabilities

Organisational
Capabilities for
Digital

Strategy,
Culture, Change
and
Governance

Digital
Architecture

Digital Solution
Delivery

Digital
Operation

Customer
Experience

Analytics and
Insight

Digital
Technology
Foundation and
Infrastructure

External Party
Interaction
Zones,
Channels and
Facilities

Personalisation

Programme
Management

Service Delivery
and
Management

Research and
Analysis

Single View of
the Customer

Infrastructure

Digital (and
Other) Solution
Governance

Content
Management

Security,
Identity ,
Access and
Profile
Management

Portfolio
Project
Management

Service
Analytics

Marketing and
Advertising

Analysis and
Reporting

Security

Organisation
Change for
Digital

Responsive
Infrastructure

Digital Specific
Applications
and Tools

Business
Analysis and
Engagement

Organisation
Management

Design

Data Collection
and
Management

Integration

Process
Management

Internal
Interaction
Management

Integration

Tool Selection
and Delivery

Capacity
Planning

Usability

Customer
Segmentation
and Insight

Enterprise
Architecture

Operational
and Business
Systems

Applications
Delivery and
Management
Tools and
Frameworks

Solution
Architecture

Digital Strategy
Development

September 7, 2016

System
Development,
Deployment
and
Management

Customer
Journey
Management

Service Delivery
and
Management

Solution
Delivery
49

Digital Operational Technology Layers

Customer Access and Interaction
Content Aggregation and Management

Extensions to Existing Systems/Data Integration

Operational Systems
Analytic Systems
September 7, 2016

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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

September 7, 2016

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Indicative View Of The Operational/Technology

Components And Interfaces To Realise A Digital Strategy
Social Media Platforms

External Party-Facing
Web Accessible
Applications

Content Management
System

Process, Service and

Data Integration

xRM

Core System Interfaces

Master Data
Management

Core Transaction
Processing System(s)

Other Operational
System(s)

Campaign Management
September 7, 2016

52

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
September 7, 2016

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Operational/Technology Layers And Their Components

Social Media Platforms

External Party-Facing
Web Accessible
Applications

Content Management
System

Process, Service and

Data Integration

Customer Access and Interaction

xRM

Content Aggregation and Management

Core System
Interfaces
Extensions to Existing
Systems/Data
Integration

Master Data
Management

Campaign Management

September 7, 2016

Core Transaction
Processing System(s)

Operational Systems

Other Operational
System(s)

Analytic Systems
54

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
organisations overall enterprise architecture
Digital architecture must exist within the within the wider enterprise
architecture context
September 7, 2016

55

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

September 7, 2016

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