Enterprise Architecture & Digitalization - pragmatic stage wise approach

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Information about Enterprise Architecture & Digitalization - pragmatic stage wise approach

Published on June 14, 2019

Author: AdityaBhelke

Source: slideshare.net

1. - Enterprise Architecture and Digitalization: A pragmatic stagewise approach Aditya Bhelke Syngenta Pune, India adityabhelke@gmail.com Bhanu Singh Syngenta Pune, India bhanu.singh@live.in Abstract— in this paper the authors try to establish the concepts of a typical phased Digital journey leading to Digitalization. While doing this there is emphasis on the 7 levers of Digital Transformation and their relationship with an EA framework. The TOGAF EA ADM is examined to establish a relationship with the 7 levers. Using these 7 levers the importance of having a formal EA as a foundation for a successful Digitalization journey is established. With the use of two examples/use cases, one from a public government and another for a private enterprise the theory is validated. Finally a conclusion is presented that the Digitalization journey will happen in stages with a higher rate of success in the presence of a formal EA. Keywords— Enterprise Architecture Digitization Digitalization Digital Transformation Levers Phase Stage TOGAF ADM EA I. ASSUMPTIONS The preliminary phases of EA as per TOGAF i.e. to setup an EA function have been assumed to be performed and finished when we use the TOGAF model. This phase has therefore not been explicitly mentioned anywhere in the scenarios, diagrams, figures & description II. DEFINITIONS Digitization  Digitization is the process of changing from analog to digital form, also known as digital enablement. Said another way, digitization takes an analog process and changes it to a digital form without any different-in-kind changes to the process itself. [1] Digitalization:  Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.  This can be achieved by integration of digital technologies into everyday life by the digitization of everything that can be digitized. [2] Digital Transformation  Digital transformation is the process of using digital technologies radically improve the performance or reach of an organization. It can also be used to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements.  This reimagining of business in the digital age is digital transformation. [3] [4] Operating Model  OM is both an abstract or visual representation (model) of how an organization delivers value to its customers or beneficiaries as well as how an organization actually runs itself III. CONTEXT A. What is a Digital Transformation? Building on the definition, we can determine that in a digitally transformed business, digital technologies enable improved processes, engaged talent, and new business models. 1) Digital Transformation Strategy A successful digitally transformed business will require a Digital transformation strategy. This strategy will need to align itself with the existing Corporate Strategy. The Corporate Strategy which can be decomposed into Operational & Functional Strategy will need to support the Digital transformation strategy. This concept is explained in detail in a paper by Matt, C., Hess, T. & Benlian, A. Bus [5] The below diagram (Figure 1) from their paper explains this briefly. 2) 7 Levers of Digital Transformation It has also been realized that for a successful implementation of a Digital transformation strategy some key aspects need to be recognized as a part of the broader Digital Transformation Strategy. Figure 1 - Digital transformation strategy

2. As per the white paper titled “The seven levers of Digital Transformation” such key aspects or as the authors call them ‘levers’ will form the foundation of the Digital transformation journey. [6] Seven such levers have been identified. The 7 levers are: 1. Business Process Transformation 2. Customer Engagement & Experience 3. Product or Service Digitization 4. IT & Delivery Transformation 5. Organization Culture 6. Strategy 7. Ecosystem & Business Model We have taken the liberty to redraw their conceptual diagram to denote our line of thoughts. The change which we have proposed is that Organization Culture (lever 5) & Strategy (lever 6) overlap, while the original diagram shows a hard boundary. Below diagram (Figure 2) depict the 7 levers. 3) The TOGAF Architecture Development Method (ADM) cycle The 7 levers of Digital transformation journey recognize the TOGAF EA framework. Accordingly we have also considered the TOGAF Architecture Development Method (ADM) cycle to form the context of this paper. Other EA frameworks like e.g. Zachman EA framework may be considered. The overall context will remain the same while the implementation methodology may differ. The ADM cycle diagram (Figure 3) shows 4 iteration cycles. [7] The four high level iteration cycles are: 1. Architecture Context 2. Architecture Delivery 3. Transition Planning 4. Architecture Governance Each distinct phase inside each cycle will need to continually revisit the Requirement Management phase. This is an important aspect from a Digitalization point of view and a key success criteria. 4) Steps leading to Digital Transformation A compelling business problem or a business requirement will need a major transformation to happen. This can be depicted in the follow diagram (Figure 4) which addresses:  Problem statement  Solution  Journey(s)  Mission statement revision This process can be termed as a Digital Transformation 5) Relationship between the 7 levers and TOGAF ADM The Digital Transformation Strategy will need to be aware of the 7 levers and consciously ensure focus on those levers. The chosen EA methodology, e.g. TOGAF ADM will need to incorporate the 7 levers within the individual Phases and also in the iterative cycles. Doing this will ensure a successful intended outcome as we have examined using scenarios in this paper. IV. RELATING THE DIGITAL TRANSFORMATION TO EA In this section we try to relate all the stages of Digitalization and Enterprise Architecture; specifically using the TOGAF ADM as a reference. A. The Stagewise Model - A pragmatic stagewise approach to Digital Transformation The transformation lifecycle with respect to EA will help create the broader Digital transformation strategy. The diagram (Figure 5 and/or 6) below depicts such a lifecycle. We introduce some terms as a part of this lifecycle as follows: IT and Delivery Transformation 4 Business Process Transformation 1 Customer Engagement & Experience 2 Product or Service Digitization 3 Ecosystem & Business Model 7 Strategy 6 Organizational Culture 5 Figure 2 - 7 Levers of Digital Transformation Figure 3 - TOGAF ADM phases & iterative cycles Mission statement revision Problem statement Solution Journey 1 Journey n Figure 4 - Steps leading to Digital Transformation

3.  Stage(s) – 3 distinct stages (S1, S2, S3): o Analog to Digital (Digitization) (S1), leading to Transformation o Digital to Digitalization (Digitalization) (S2), leading to Digital Transformation o Ever Evolving Digitalization (S3), leading to Ongoing Digital Transformation  Journey(s) – is/are within effort phase (J1, J2... Jn) of the Stages  Continual – ongoing effort which is applicable to: o Journeys within specific TOGAF ADM phases:  Requirement Management  Opportunities & Solutions  Technical Architecture  Migration planning o In the ever evolving Digitalization Stage (S3)  Operating Model (OM) – A part of the Digital transformation strategy o Target OM – An update to the original OM which will be necessary to drive the transformation strategy o Digital Target OM - An update to the Target OM which will be necessary to drive the Digital transformation strategy for Digitalization  Realization – The phase of a stage where the outcomes will start to materialize and can be measured either qualitatively or quantitatively  Outcomes – A measure of success of the transformation strategy will be achieving the intended outcomes Model diagram also available full page in Appendix. B. How does this model help? The Stagewise Model will help in identifying and understanding the following:  Stages o What are the distinct stages and the various transformations o In what stage is the organization currently with respect to certain business transformation requirements o The ability to clearly distinguish between the maturity of the transformations  Journey o Multiple journeys may be possible to meet the transformation objectives  Continual o Digital Transformation is continual in nature  Operating Model o How and when the Operating Model has to evolve to meet the transformation requirements o Definitions of what the Target OM and Digital TOM need to look like  Realization o When the realization can happen, how to measure it, how to ensure corrections are applied when necessary  Outcomes o What are the possible outcomes and when they can be achieved V. SCENARIO BASED ASSESSMENT A. Scenario selection and validation The authors researched to find colleagues & peers who had participated in projects / programs related to Enterprise Architecture with Transformation objectives. This lead to identification of many use cases and actual Digital & Digitalization transformation projects. After initial shortlisting, two suitable scenarios were selected for detailed assessment of the stated hypothesis. Additional discussions & interview based approach with project participants helped understand the scenarios from the point of view of this paper. B. Scenario 1 - Digitisation of land records by State Government 1) Introduction State Government Land Records Department is responsible for registering & providing details of land records to their customer’s viz. citizens, other Govt. departments, Courts etc. They are completely dependent on a manual ways of working with physical copies of the records. These records are stored in large warehouses. Department employees manually search and update records using a legacy physical system of files, folders, boxes and shelves. The Department is facing problems:  Poor Customer Satisfaction o Due to ever increasing turnaround time o Error prone system  Increasing cost o Wear and tear of records o Increasing operational costs like additional warehouses, additional man power After assessing many approaches & solutions, the following were identified as necessary actions:  Convert physical records to digital E.g.Outcomes:  Save money E.g.Outcomes:  Earn money (streams, cross selling)  Stronger engagement  Improved CSAT  Foster Innovation  Adopt Innovation  Ease of use  Disrupt  Handle disruption D-TOM OM Stages: S1: Analog to Digital (Digitization) S2: Digital to Digitalization (Digitalization) S3: Ever Evolving Digitalization Requirement Management A: EA Vision B: Business Architecture C: IT Architecture D: Technical Architecture E: Opportunities & Sol F: Migration Planning G: Implementation Governance H: EA Change Management J1 Jn J2 JcJ J1 J2 Jn Jc O1 O2 Oc J1 J2 Jn S_= Stages J_ = Journeys within Phases c = Continual OM = Operating Model TOM = Target OM D-TOM = Digital Target OM for Digitalization D1 = Digital D2= Digitalization Dc= Continual Digitalization J1 J2 Jn D1 D1realization D2 D2realization Dc J J_ Journey specific requirements at start O_ Phase specific Opp & Sol assessments Iterative Requirement management J1 J2 Jn Outcomes TOGAF ADM Phases (A to H) 4 iteration cycles of TOGAF TOM Figure 5 - The stagewise model

4.  Train employees to adopt this digital way of working The above are nothing but Digitization 2) Digitization Stage (S1)  The Department hired an agency to convert physical records to digital and store them in a data base (This can be termed as Analog to Digital)  A front end application was developed by the agency to allow quick retrieval & updating of records  Digital scanners were installed in all the offices and simple to use process was developed  Employees were consulted in all the phases of this transformation, ensure that the solutions met the actual requirements  Training was imparted to employees to use the new system  User/customer feedback system was incorporated which was used to measure CSAT and share feedback to the Agency  Based on the feedback, the system & processes were improved  There was a distinct effort phase (D1) where Requirements (employees & customers) and their Opportunities & Solutions (O1) were identified by the Agency  A Target Operating Model (TOM) was as outcome of D1 – which was nothing but a way of working, processes & sequences in the form of SOP’s for the employees  The multiple warehouses were not required anymore leading to large cost savings  Also the manpower required for the operational activities was optimized leading to cost savings  This led to a second phase of the Digital realization (D1 realization) where the outcomes were met  The Operating Model was used as guidance  Requirement Management was iterative and continually visited as per the ADM  This solution & journey was based on the TOGAF ADM 3) New Challenges  There was strong user feedback asking for self-service system instead of physical visits to the Department offices  The new digital solution was hosted on servers in the Departments Central Office. This did not allow the solution to scale to meet increasing demands on services rendered 4) Digitalization Stage (S2)  An Agency was again hired to address the new challenges  TOGAF (ADM) was used as an Enterprise Architecture guiding framework.  Multiple Digital Transformation Journeys (J1, J2, Jn) where identified  They had a distinct effort phase (D2) where Requirements and their Opportunities & Solutions (O2) were identified.  Since the previous TOM was unable to guide the Organization in the new Journeys, a new Digital Target Operating Model (D-TOM) was created  One of the Journey was to create a new web based self-service portal to allow customers to manage their land record related activities online  Another Journey was to migrate the solution to a managed Cloud solution which allowed scaling  The Department addressed the Change by using all 7 levers of Digital Transformation. 5) Conclusion  Department was able to achieve both the stages i.e. Digitization & Digitalization successfully  Because of the Enterprise Architecture framework adoption it its core, the Organization Change Management was streamlined  During the Realization phases of both the stages the benefits of cost reduction & scalability was measurably achieved  Based on the TOGAF ADM adoption there was a continuous evaluation against the requirements (from both customers & employees). This led to precise delivery of the scope, cost efficiency & time bound outcomes  Phase 1 Realization built a strong foundation in the form of o Implementing Digital solution leading to modern ways of working for the employees o Enabling customer base to consume services with ease  This strong foundation was necessary for the success of Phase 2 and beyond  The Central Government has in the meantime come up with a Citizen Identification System and expects all State Departments to integrate with it for providing seamless services to Citizens  The Department will therefore need to focus on the next phase i.e. S3 Ever Evolving Digitalization to address such ongoing environmental challenges C. Scenario 2 - Digitalization of mid size organisation 1) Introduction  Mid-sized organization operating in a traditional manner (weakly coupled teams,

5. manual processes, data silos, paper based touch points, weak collaboration) was facing challenges of high operating cost & inability to scale.  After assessing many approaches & solutions, the following were identified as necessary actions: o Adopt latest technologies o Adopt modern methods & ways of working o Adopt frameworks, standards, best practices to measure & improve efficiencies  The above are nothing but Digitization 2) Digitization Stage (S1)  They adopted a Business Services / Shared Services model as a solution.  This solution proposed via a single journey to transform the organization to adopt Analog to Digital solutions.  The journey had a distinct effort phase (D1) where Requirements and their Opportunities & Solutions (O1) were identified.  A Target Operating Model (TOM) was as outcome of D1  This led to a second phase of the Digital realization (D1 realization) where the outcomes were met  The Operating Model was used as guidance  Requirement Management was iterative and continually visited as per the ADM  This solution & journey was based on the TOGAF (ADM) as an EA framework 3) New Challenges  The Business Services having met the intended objectives was unable to address the disruption happening in the industry. Many new entrants presented themselves as industry challengers.  The journey started in S1 was not helping address the above challenges  The organization recognized that the Business Services had outlived its purpose and decommissioned it by embarking on the next stage (S2). 4) Digitalization Stage (S2)  Multiple Digital Transformation Journeys (J1, J2, ... Jn) where identified.  They had a distinct effort phase (D2) where Requirements and their Opportunities & Solutions (O2) were identified.  Since the previous TOM was unable to guide the Organization in the new Journeys, a new Digital Target Operating Model (D-TOM) was created  The Organization Culture & Strategy had to adopt itself to meet the transformation objectives.  Org Culture & Strategy were two critical levers out of the 7 levers of Digital Transformation. The other 5 levers were also applicable during this stage. The same TOGAF (ADM) as an EA framework was used 5) Conclusion  Organization was able to achieve both the stages i.e. Digitization & Digitalization successfully  Because of the Enterprise Architecture framework adoption it its core, the Organization Change Management was streamlined  During the Realization phases of both the stages the benefits of cost reduction & scalability was measurably achieved  Based on the TOGAF ADM adoption there was a continuous evaluation against the requirements. This led to precise delivery of the scope, cost efficiency & time bound outcomes  Being conscious of the 7 levers was one of the reasons for a successful outcome  Phase 1 Realization built a strong foundation in the form of o Scalable TOM based on people, processes, technology o Cost efficiency based on concepts like rightsizing & prioritization  This strong foundation was necessary for the success of Phase 2 and beyond  The organization will need to focus on the next phase i.e. S3 Ever Evolving Digitalization VI. CONCLUSION  A revision of the strategy into a Digital transformation strategy is the most important step to successful Digitalization  Being aware of the 7 levers of digital transformation will help drive the transformations seamlessly  Being aware of the Stages of Digitalization will help understand what is necessary for strong foundations  Using The Stagewise Model will help become aware that Digitalization is a continual process with many stages, and journeys within  Using The Stagewise Model will help identify how and when the Operating Model has to evolve to meet the transformation requirements  Using an EA framework for guidance will o ensure success by meeting requirements in an efficient and manner o ensure that the multiple journeys within the Digitalization transformation become sustainable and not disruptors within the organization. VII. REFERENCES

6. [1] Gartner Digitization, "IT Glossary," [Online]. Available: https://www.gartner.com/it- glossary/digitization/. [2] Gartner Digitalization, "IT Glossary," [Online]. Available: https://www.gartner.com/it- glossary/digitalization/. [3] SalesForce, "What Is Digital Transformation," [Online]. Available: https://www.salesforce.com/products/platform/what- is-digital-transformation/. [4] Deloitte, "Digital Enablement," [Online]. Available: https://www2.deloitte.com/content/dam/Deloitte/ie/ Documents/Technology/IE_C_HC_campaign.pdf. [5] C. &. H. T. &. B. A. Matt, "Digital Transformation Strategies. Business & Information Systems Engineering.," Vols. 57. 339-343. 10.1007/s12599- 015-0401-5, 2015. [6] Dave Hornford, Conexiam; Sriram Sabesan, Conexiam; Vidhya Sriram, Saashvata; and Ken Street, Conexiam, "7 Levers of Digital Transformation," The Open Group, White Papers, 29 Sep 2017. [7] thunk.technology, "TOGAF ADM And The Big Bang Theory," 7 March 2016. [Online]. Available: https://thunk.technology/blog/togaf-adm-big-bang- theory/. VIII.APENDIX The Stagewise Model diagram (full page) E.g.Outcomes:  Save money E.g.Outcomes:  Earn money (streams, cross selling)  Stronger engagement  Improved CSAT  Foster Innovation  Adopt Innovation  Ease of use  Disrupt  Handle disruption D-TOM OM Stages: S1: Analog to Digital (Digitization) S2: Digital to Digitalization (Digitalization) S3: Ever Evolving Digitalization Requirement Management A: EA Vision B: Business Architecture C: IT Architecture D: Technical Architecture E: Opportunities & Sol F: Migration Planning G: Implementation Governance H: EA Change Management J1 Jn J2 JcJ J1 J2 Jn Jc O1 O2 Oc J1 J2 Jn S_= Stages J_ = Journeys within Phases c = Continual OM = Operating Model TOM = Target OM D-TOM = Digital Target OM for Digitalization D1 = Digital D2= Digitalization Dc= Continual Digitalization J1 J2 Jn D1 D1realization D2 D2realization Dc J J_ Journey specific requirements at start O_ Phase specific Opp & Sol assessments Iterative Requirement management J1 J2 Jn Outcomes TOGAF ADM Phases (A to H) 4 iteration cycles of TOGAF TOM Figure 6 - The stagewise model (full page)

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