Architecting the Digital Business: Planning for the Third Era of Enterprise IT
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Transcript of Architecting the Digital Business: Planning for the Third Era of Enterprise IT
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
Brian Burke @brian__burke
Architecting the Digital Business: Planning for the Third Era of Enterprise IT
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
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"With competitive technology IT
needs to be half in technology
research, and half in traditional IT."
Alan Matula CIO, Royal Dutch Shell
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Strategic Planning Assumption
Digitalization
IT Industrialization
By 2016, 30% of global organizations will establish a clear role distinction between foundational and vanguard enterprise architects.
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Key Issues
1. What are the key enabling technologies that will make digital business different?
2. How can you make sense of evolving technology disruptions?
3. How can you contextualize opportunities for your organization?
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The creation of new business
designs by blurring the
digital and physical worlds
Digital Business
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Disruptive Technologies Are
Solutions Looking for Business
Problems to Solve
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A Near-Term Explosion of Enabling Technologies
Smart
Advisors
Internet
of Things Mobile
Robots
Sensors Autonomous
Vehicles
3D
Printing
Augmented
Reality
Virtual
Personal
Assistants
Big
Data Human
Augmentation
Drones
Gesture
Control
Location
Intelligence
Digital and physical worlds are blurred when:
• Atoms behave like bits
• Machines become smarter than people
• Everything is connected
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Digital Business Enables Entirely
New Business Designs
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An Explosion of Business Opportunities
What business models will emerge when:
• Fabrication is local and automated
• Assets are shared and fully utilized
• Humans are augmented or replaced
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The Role of the Vanguard EA: Rethinking What Is Possible
• Vanguard EAs must throw away all the old assumptions.
• Rethink:
- Customer value proposition.
- Partner value exchange.
- Employee value proposition.
- Business processes.
- Information and analytics.
• What does this mean for your business?
Atoms are the new bits.
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Making Sense of the Trends:
Disruptive Technologies Mature
Over Years or Decades
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Technology Innovation: Lead Response to Emerging Disruptive Technologies
Disruptive
Trend Ideation
Evaluate
Opportunity
and Risk
Create Business
Transformation
Road Maps
Diagnostic
Deliverables
Enabling
Deliverables
Actionable
Deliverables
Rationalize
Business
Outcomes
Ideation Analysis
Technology Analysis
Industry Research
Market Research
Exploratory Technology
Proposals
Business Scenario
Analysis
Business Strategy
Risk Profiling
Readiness Assessment
Risk Tolerance
Opportunity Proposals Opportunity Viability
Proposals
Innovation Strategic
Plan
Benefit Profiling Business Capability
Impact Assessment
Business Capability Maps Financial Controls, Policy and Value Drivers
Technology Research
1 2 3 0
Opportunity Analysis
Impact Appraisal
Gaps and Opportunities
Road Map
Integrated IT Portfolio
Analysis
Related Strategies
Opportunity Identification Business Outcome Stmts.
Market Analysis
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Understanding Disruptions: Phase 0 & 1
Disruptive
Trend Ideation
Evaluate
Opportunity
and Risk
Create Business
Transformation
Road Maps
Diagnostic
Deliverables
Enabling
Deliverables
Actionable
Deliverables
Rationalize
Business
Outcomes
Ideation Analysis
Technology Analysis
Industry Research
Market Research
Exploratory Technology
Proposals
Business Scenario
Analysis
Business Strategy
Risk Profiling
Readiness Assessment
Risk Tolerance
Opportunity Proposals Opportunity Viability
Proposals
Innovation Strategic
Plan
Benefit Profiling Business Capability
Impact Assessment
Business Capability Maps Financial Controls, Policy and Value Drivers
Technology Research
1 2 3 0
Opportunity Analysis
Impact Appraisal
Gaps and Opportunities
Road Map
Integrated IT Portfolio
Analysis
Related Strategies
Opportunity Identification Business Outcome Stmts.
Market Analysis
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Generation
Technology Analysis: What Does It Do?
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Market Analysis: What Are the Use Cases?
Painting
Drilling
Welding
Pick and Place
Material Handling
Surgery
Assistive Care
Vacuum Cleaning
Packaging
Disaster Response
Bomb Disposal
Food Preparation
Robot Soldiers
Household Helpers
Agriculture
Medical Robots
Deployed Today <2 Yrs. 2 Yrs. to 5 Yrs. 2 Yrs. to 5 Yrs. <2 Yrs.
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Crowdsourced Innovation Community
Specialist Teams
R&D Teams
Ideation Analysis
Specific Fuzzy
Swarm
Squad
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Opportunity Identification: What Problem Does It Solve?
Painting
Drilling
Welding
Materials Handling
Manufacturing
Robotics
Pattern Match to
Business Capabilities
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• Stage gate the process to avoid blind alleys
• Seek approval to proceed to the next step
• Ensure that business and IT management is onboard with the direction of research
Actionable Deliverable: Exploratory Technology Proposals
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Making Sense of the
Opportunities: Contextualize
Disruption for Your Organization
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Business Scenario Analysis: Alignment With Business Direction
Painting
Welding
Drilling
Material Handling
Pick and Place
Vacuum Cleaning
Drive Customer Intimacy
Extend Global Reach
Standardize Processes
Improve Product Quality
Develop Employee Skills
Cut Production Costs
… or create a new strategy based on disruptive technology!
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Deliver Personalized Customer Experience
Support Personalized Campaigns
Onboard Customers
Contextualized Interactions
Create and Maintain
Reputation
Personalized Risk,
Reputation & Fraud Mgmt.
Manage Customer
Identity and Preferences
Develop Partner Ecosystem
Define Partner
Aggregators
Use Credit Brokers
Broker Crowd
Funding
Support Peer-to-Peer
Partners
Manage Channel Partners
New Channel Partners
Provide Account Services
Service Deposits
Provide Consumer
Credit
Offer Credit/Debit
Card
Deliver Wealth Management
Services
Offer Corporate Loans and
Make Deposits
Provide Corporate
Credit (SMB)
Service Payments
Provide Credit Services
Develop Multichannel
Support Multichannel
Payments
Support Universal
BYOD
Create Digital Services
Support Dynamic Facilities
Develop Market and Brand
Develop Product Strategy
Operate Competitive Intelligence
Market Products
Define Business Direction
Operate Customer
Intelligence
Set Pricing
Proactively Detect and Resolve Risk
Detect Fraud
Model New Fraud
Evaluate Risk
Balance Transparency
Manage Information
Security
Manage Privacy Maxims
Create "Next Payments" R&D
Develop Risk Models
Develop New Innovation Channels
Create Sandbox
Create Rapid POC Cycle
Crowdsource Innovation
Develop Customer as
Innovator
Operate Business
Govern Technology Investment
Support Investors
Maximize Human Capital
Develop Strategic Planning
Optimize Facilities
Manage Financial
Execute Investment Products
Execute Personalized Investments
Provide Investment Services
Deliver Corporate Financing
Execute Fund
Management
Manage Corporate
Investments
Offer Corporate Tax
Services
Business Capability Impact Assessment
Strategic, Future-State Business Capabilities (Three Years) and Incremental Investments
Secondary Investment ($3M to $5M)
Primary Investment (Above $5 Million [M]) Tertiary Investment ($1M to $3M)
Minor Investment (<$1M) Strategic Areas
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Opportunity Analysis: Leverage the Option Graph
Welding
Painting
Packaging
Piece Pick and Place
Material Handling Order Picking
Vacuum Cleaning
Drilling
Op
po
rtu
nit
y
Maturity
Robotics Options Graph
Affinity < Bubble Size
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Business Outcome Statements
A business outcome is a specific and measurable result that includes (1) measurable business benefit, (2) achieved within a time frame, and (3) in support of the business strategy.
A business outcome should consider business disruptions (threats and opportunities).
For example:
• Streamlining sales processes (business outcome) to shorten the sales cycle by 30% (business metric) in 12 months which decreases cost-of-sales by 10% (financial value).
• Creating a design forum to enable customers to participate in product design (business outcome) thereby increasing R&D success index by 20% (business metric) within 2 years which increases revenue by 5% (financial value).
• Leveraging "vested outsourcing" (business outcome) to reduce operating costs by 15% (business metric) over the next year increasing profit margin by 3% (financial value).
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Actionable Deliverable: Opportunity Proposals
• Demonstrate technology use cases
• Match business opportunity
• Align to business direction
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Making It Actionable
• Analyzing opportunities is not enough.
• Vanguard enterprise architect must be a catalyst for change.
• Determine the costs, benefits, risks of emerging technology opportunities.
• Create a signature-ready proposal to pilot or prototype.
Catalyst: An agent that provokes or speeds
significant change or action. — Merriam-Webster
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Recommendations
Understand and track technological disruptions
that will have an impact on your industry.
Develop contextualized options graphs for
highest impact disruptions.
Create signature-ready proposals to leverage
opportunities created by digital disruptions.
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Recommended Gartner Research
Forecast: The Internet of Things, Worldwide, 2013 Peter Middleton, Peter Kjeldsen and Jim Tully (G00259115)
Uncover Value From the Internet of Things With the Four Fundamental Usage Scenarios Stephen Prentice and Hung LeHong (G00249065)
The Disruptive Era of Smart Machines Is Upon Us Tom Austin (G00257743)
Smart Machines Mean Big Impacts: Benefits, Risks and Massive Disruption Tom Austin (G00255663)
For more information, stop by Gartner Research Zone.