Enabling an enterprise’s business processes with social media access and technologies can lead to regulatory and privacy concerns that must be manage appropriately. 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 … This platform can then become the foundation for running future insights. We strive to provide individuals with disabilities equal access to our website. … Below, we take a closer look at these best practices and their benefits. The survey results show that digital leaders are also distinguished by how they structure their IT landscape. Digital transformation and the role of enterprise architecture III Pathways to success Most countries and organizations begin their digital transformation journey in the lower left quadrant, i.e. The current state blueprints provided by EA can help understand the broader scope of such a platform and help toward building a future state EA. However, IT Investment Governance and Project Portfolio Management is where … 1. Through the analysis of 13 case studies, this white paper assesses the current role of enterprise architects in a digital transformation. Yet our experience also suggests that enterprise architecture’s long-held reputation as a mundane field with limited room for advancement can create challenges when it comes to attracting top talent. Based on EA’s earlier mentioned benefits, its role in an enterprise’s digital transformation becomes even more crucial. DevOps Explained. Building of Big Data platforms requires enterprise wide involvement of LOBs and the IT department as they can help provide information on the data and information assets that are crucial to the enterprise and that can be used to feed the enterprise’s Big Data platform. Here are some examples which demonstrate why injecting digital initiatives in the enterprise must be managed and governed carefully to prevent a negative impact on the continued business of the enterprise. Efforts like these can run into various difficulties, though. Reinvent your business. The growing complexity of the enterprises coupled with the fast pace of market driven change requires a methodical and a disciplined approach. Furthermore, training of the workforce on the new mobile interface may require extensive training and longer transition times. An Introduction to Project and Portfolio Management (PPM), The New York Times – A Business Case of Digital Transformation. Retailers have built up significant assets on … This helps all stakeholders to see and accordingly analyze the enterprise in a new light and context. The job of the enterprise architecture is to provide the tools and insights for the C-suite, and other business stakeholders, to help deploy strategies for business transformation… Enterprise architects are central to designing new digital channels and experiences and building a case for how to invest in new and existing technology assets. Migrating business functions and processes to new cloud based systems and platforms requires a strategic approach to ensure that an enterprise’s new cloud based computing platform is robust to handle all business requirements and is scalable for future requirements. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. In an increasingly digital … For each enterprise, this means reassessing its products, services, and overall value proposition to ensure that it is aligned to its customers’ expectations and overall market demands. Given the versatility of enterprise architects, leaders may be tempted to assign them to help resolve urgent problems of various kinds. Our experience suggests that digital transformations are more likely to succeed when board members understand the importance of technology for their business model and commit their time to making decisions that seem technical but ultimately influence the success or failure of the company’s business aims. 0. The survey results also indicate that EA teams at digital leaders maintain a clearer orientation toward the future than teams at other companies. When it comes to integrating applications, a smaller proportion of their integrations consist of point-to-point connections between two applications (56 percent versus 76 percent at other companies), which lessens their “technical debt.” Respondents from digital leaders were twice as likely as respondents from other companies to say that their companies are piloting architectures based on microservices, which are independent components that developers assemble into software applications. The field of Enterprise Architecture must itself transform into a new, Agile Architecture in order to drive digital transformation effectively in today’s increasingly wired world. Something went wrong. This is because an EA describes the enterprise in terms of its basic building blocks that includes business strategy, business processes, an organization’s business model to deliver value, enabling technologies and an organization’s products and services. Building of Big Data platforms requires enterprise wide involvement of LOBs and the IT department as they can help provide information on the data and information assets that are crucial to the enterprise and that can be used to feed the enterprise’s Big Data platform. It’s no secret that digital transformation initiatives embarked upon by enterprises are impacting all facets of the enterprise. This collaborative process helps in not only aligning enterprise business processes with business strategy but also helps in bringing down the walls that exist between various LOBs. Please try again later. Our survey results indicate that enterprise architects generally seek interesting challenges, recognition from their peers, learning opportunities, and structured career paths. The current state of the EA provides visibility of the various data stores in the enterprise along with the information feeds from other sources. Respondents who said their companies’ EA teams devote a higher-than-average proportion of their capacity to strategic planning were also more likely to say they create added value for their organizations. It is about putting the emphasis on how digital services and … Capabilities are self-contained business activities, usually belonging to an end-to-end business process, that result in discrete outcomes: for example, predicting a customer’s next purchase so that a website or a call-center representative can make suggestions. Examples abound which show that Big Data solutions that were built but not aligned to business needs are not accepted by the business resulting in a loss of effort and resources. We’ve seen that an EA team can better align the IT … as digital laggards due to the speed at which digital technologies are available, but transformation … Wasim At a high level, digital transformation involves reshaping business models with advanced technology solutions. (On average, respondents said strategic planning takes up about one-fifth of the EA team’s working capacity.) Current trends clearly show that most enterprises are transitioning to hybrid cloud environments that are based on traditional on-premises infrastructure, private and public clouds, and other public digital platforms. We’ve seen that an EA team can better align the IT function’s priorities with the business’s priorities by tracking its accomplishments with respect to the business capabilities that it delivers, rather than the sheer number of technology applications that it implements. Respondents from digital leaders were more likely to say that their EA teams use capabilities as their primary grouping for the delivery of milestones toward their target architecture (Exhibit 3). Examples abound where initiatives such as Shadow IT, tactical cloud migrations, and ill conceived digital platforms are introducing more risk to the organization including exposing the enterprise to information security, regulatory, and privacy issues. If I start talking to an audience and start with, “Enterprise Architecture is required for driving Digital Transformation … As EA provides a holistic view of all the business processes, users of those business processes along with the various use cases, it enables analysts and LOBs to see all the relevant business processes involved in specific customer journeys. Also, the fact that many enterprises are currently building their digital foundations, it is incumbent to take a strategic rather than a tactical approach to prevent further muddying of the enterprise’s technology platform. Digital Transformation in 2015 and Beyond – The Changing Roles of IT, the CIO, EA and Strategy “There is real tension between IT and the broader business as budgets and control move outside the traditional IT department. Enterprise architecture (EA) and technology innovation leaders have the important job of advising CIOs and business leaders about digital business strategy, innovation and enterprise change. On … Respondents are asked to identify their companies as “digital leaders,” and these choices form the basis for our comparative analysis of digital leaders and other companies. Based on EA’s earlier mentioned benefits, its role in an enterprise’s digital transformation becomes even more crucial. (Respondents are not required to submit answers to every survey question, so the number of respondents can vary from one question to another.) Sales, Human Capital Management (HCM), Supply Chain Management, etc.) The architect’s role has become a key role in organizations, just like the new Chief Digital Officer’s role. As these third platform technologies have resulted in a change of customer behaviors, their expectations, and the market changing to adapt to those behaviors and expectations, the enterprises have to transform to compete effectively to position themselves appropriately in the marketplace and the overall environment. Given the importance of technology, enterprise architects should be intricately involved in strategic planning efforts for digital transformation. An enterprise’s sales force, for example, may want to have access to all functions and features of a sales process through their mobile devices to help them become more effective. Enterprise Architecture is a critical input to steer decision making towards the evolution of the future state architecture. The role of enterprise architecture in digital transformation webinar on june 7th, 2018 Danny Greefhorst dgreefhorst@archixl.nl 1 2. They track their accomplishments in terms of how many business capabilities are deployed, while implementing more services. Building this platform that will serve as the foundation for the whole enterprise again requires a strategic approach that takes into account appropriate details of the current environment, something that an EA process process can help in developing. 1 To participate in the survey, please visit easurvey.org. EA Transformation for Digital Transformation By Venu Yalavarthi, Head of Enterprise Architecture, Digital Transformation Specialist, Ingredion Incorporated - Digital Transformation is the driving force in the latest wave of enterprise … Enterprises are enabling most of their applications and systems to work with mobile. Organizations have come to manage and govern transformations of all kinds in various ways. While portfolio management and the project management office (PMO) evaluate the initial idea, the enterprise architecture … Customer consultant:Business architects who work at technology vendors or solution providers serve as trusted partners to the companies that buy their employers’ prod… The enterprise-architecture (EA) department can play a central role in reducing the complexity associated with digital transformations. We have seen that such disconnects sometimes originate in the posture of IT functions: instead of concentrating on the enablement of business priorities, they focus excessively on the delivery of technology solutions as an end in itself. This use of capabilities stood out in the survey. Teams that spend more capacity than average on strategic planning were more likely to report delivering sustainable business solutions, making greater contributions to the benefits of projects, and gaining wider recognition within the enterprise (Exhibit 1). provide the right visibility, context and perspectives in helping to create a future target state of the enterprise. The role of enterprise architecture in digital transformation 1. The Enterprise Architect will lead and/or support digital transformation engagements with Strategic customers jointly with other Virtual Account Team (VAT) team members from the ANZ DTO team. Even though digitalization sounds like that it’s ‘technology’ oriented, the fact is that everyone throughout the organization is involved. These enterprise wide efforts of transformation therefore must be governed appropriately to ensure minimal business impact and disruption. These teams engage senior executives and boards and spend extra time on long-term planning. Select topics and stay current with our latest insights, Five enterprise-architecture practices that add value to digital transformations. Below are some examples in that show how EA can be instrumental in guiding and managing digital transformation initiatives within an enterprise. This group typically oversees the entire systems architecture… As an example, EA is regarded as a vital tool when enterprises go through mergers and acquisitions. Mobile devices have become the enablers of an online journey for customers, employees, external partners, as well as other stakeholders of the enterprise’s ecosystem. This is because such a process involves deep collaboration with various LOBs and other key stakeholders before a current and target architecture of the enterprise is realized and agreed upon. Almost all LOBs are looking for ways to migrate to mobility based solutions to attain more flexibility and efficiency gains. At PITSS, the benefit of having an enterprise architect involved in the digital transformation project is that we bring a vast knowledge of other … Respondents from digital leaders were more likely to say that EA teams contribute “high” or “very high” benefits to business and IT (Exhibit 2). February 9, 2017 Enterprise Architecture Our flagship business publication has been defining and informing the senior-management agenda since 1964. People create and sustain change. If you are like most CIOs, your organization is probably already in the midst of a digital transformation where a number of your organization’s business functions are slowly becoming digitalized. Enterprise Architecture Management failing to play a critical role is alarming to both company leaders and EA practitioners. For example, social media specific policies must be formulated and enforced to ensure that enabling of business functions and processes with social media features don’t result in unintended consequences that may hurt the organization’s brand. These responsibilities fall within the typical enterprise-architecture (EA) team’s remit, which is to manage the way that all of the company’s IT systems work together to enable business processes. Please click "Accept" to help us improve its usefulness with additional cookies. As a result, the drive to quickly fulfill demand for particular applications takes precedence over the thoughtful design process that is required to maintain a cost effective, flexible, and resilient IT environment. Copyright © 2020 | WordPress Theme by MH Themes, Podcasts – Project and Portfolio Management Training, Developing an Enterprise Artificial Intelligence or AI Strategy, A Review of Artificial Intelligence (AI), related technologies and business use cases, CIOtechCentral – Intro to the New Podcast on Digital and Information Technologies, What is DevOps?  A haphazard approach is not sustainable for the long term and can even backfire and lead to wasting your organization’s resources along with eroding your enterprise’s competitive positioning and advantage in the marketplace. Enterprises are looking to migrate a number of their application workloads to the cloud, either by modernizing  their legacy systems or through adoption of new SaaS solutions (e.g. This effort in larger enterprises can therefore be significant enough that may require a methodical transformation approach. Giving Digital Transformation an Enterprise Architecture EDGE. Participation is free, and results will be shared with all respondents. Furthermore, the fact that the digital transformation initiatives are enterprise wide impacting the whole of the enterprise and its LOBs, along with an enterprise’s external stakeholders, makes EA’s role as central to the transformation effort. By comparison, just 24 percent of respondents from other companies said they interact most with C-suite executives and strategy departments. An EA, therefore, helps in establishing a common understanding of the enterprise that is essential before undertaking any major change or transformation initiatives. On the other hand, a methodical approach such as the process of Enterprise Architecture (EA) can help an enterprise navigate through this change in a more controlled and effective fashion. It’s quite obvious that injecting new digital solutions within the enterprise can disrupt the existing technology base of the enterprise. When we asked survey respondents about their involvement with various stakeholder groups, 60 percent of those at digital leaders named C-suite executives and strategy departments as the stakeholders they interact with most. To put it simply, business architecture is the practice of combining deep business savvy with strong technical knowledge to develop and execute digital road maps. From our experience with digital projects to date, we know now that as these technologies differ from their predecessors, an organization’s transformation to digital must be managed and governed methodically. A Tutorial and Training. Learn about tab. They typically possess valuable knowledge and experience to make the best decisions regarding technology investments and how they fit into the existing enterprise … McKinsey research suggests that successful digital reinventors—digital natives and digitally transformed incumbents—employ a range of approaches, such as investing boldly and adopting cutting-edge technologies at scale. Digital transformation within the context of each enterprise is about the change that all enterprises are going through in response to the overall disruption caused by digital technologies (the so called ‘third platform’), which essentially constitute Social, Mobile, Analytics, and the Cloud. This platform can then become the foundation for gleaning future insights. What is the Benefit of a Digital Transformation Architect? The authors wish to thank Sharm Manwani of Henley Business School for his contributions to this article. Save my name, email, and website in this browser for the next time I comment. This puts a premium on collaboration between business functions and IT. When represented at the right levels of detail, a documented EA blueprint provides a holistic view of the enterprise, its functions, enabling technologies and the underlying inter-dependencies. As digitalization of most business processes is necessitating building of a new cloud based backend that serves a number of LOBs, this must be coordinated with various LOBs and stakeholders. Enterprise architect jobs typically require an undergraduate degree in computer science or a related field and five to 10 years of IT experience before you can step into the role. Various Lines of Businesses (LOBs) such as Product Development, Sales, HCM, Procurement, etc. Big data solutions are another example of opportunities  offered by digital. Why you need an enterprise architect Large organizations are increasingly turning to enterprise architects to help bridge the divide between IT and the business and drive digital transformation. And they attract talent primarily by offering people appealing assignments, ample training opportunities, and well-structured career paths. High level executives, for example, may be able to see functional redundancies and opportunities for a better organizational alignment. Things don’t have to be this way. In our experience, a push to launch more digital applications can make a company’s technology landscape increasingly complex and difficult to manage, to the point that it impedes transformation programs. Enterprise Architecture (EA) has been instrumental in that journey, and in this article, we provide some valuable lessons that we have learned on our journey to build an Enterprise Architecture Management (EAM) function to support our digital transformation, and how we used EAM to become and remain relevant during digital … For example, based on the enterprise’s cloud strategic plans highlighted in the EA, the LOB executives related to sales, supply chain, or HR functions could foresee possibilities for their specific solutions. Flip the odds. Because EA departments play an important role in digital transformations, we’ve seen that IT leaders do well to staff them with motivated, highly skilled professionals. are all vying to digitalize their business processes and to roll out new digital products and solutions to the marketplace including getting more functions and features for less by migrating to a cloud based platform, rolling our mobility based applications, etc. To participate in the survey, please visit easurvey.org. An EA also helps in adopting certain standards when injecting new technologies in the enterprise. This enablement requires unified standards in terms of the user interface design and other access requirements that in turn requires strategic planning. Please use UP and DOWN arrow keys to review autocomplete results. Identifying and analyzing new ideas across the organization is the first step in the strategic planning process of successful organizations. Respondents from digital leaders were more likely to cite peer recognition, education, and well-defined career paths as features that appeal to their employees (Exhibit 4). Sven Blumberg is a partner in McKinsey’s Düsseldorf office, Oliver Bossert is a senior expert in the Frankfurt office, and Jan Sokalski is a specialist in the Wroclaw office. Digital upends old models. our use of cookies, and A number of EA teams we know have helped accelerate their companies’ digital transformations by participating in discussions of business strategy, which deal increasingly with technology. It requires an operating model that aligns governance, processes, and talent models with the business’s needs and promotes effective collaboration between business and IT. They were also more likely to say that they offer enterprise architects the chance to pursue career paths in departments other than enterprise architecture. Most companies have a dedicated EA group embedded within the larger IT organization. Digital Transformation is becoming increasingly a focus of strategic thinking and planning of many public and private organizations. ROLE … Further grouping capabilities into business domains (which generally correspond to business functionalities such as finance or customer management) can have the additional benefit of allowing an EA team to shape the IT landscape according to the business strategy. CIOs and other C-execs though have a responsibility to not let get this transformation out of control. hereLearn more about cookies, Opens in new Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. But not all EA teams carry out their responsibilities in the same manner. Business architecture professionals work to identify critical business functions and map technology solutions to business outcomes. Participation is free, and results will be shared with all respondents. are considered to hold real value in any transformation initiative, the real value lies in the process that is used to derive those artifacts. We'll email you when new articles are published on this topic. Enterprise Architecture helps organizations formulate business strategy through outlining the framework needed for IT delivery. Digital transformation is the current dominant type of business tra nsformat ion having IT both as a technolo gy enabler and as a strategi c driver for digitization. One of the ways an EA can be helpful is that a detailed representation of the current state of the enterprise in terms of its constituent business processes and enabling systems and technologies brings into sharp focus the inner workings of the enterprise. These inner workings represented as inter-dependencies between various types of applications, data flows within and external to the enterprise, representation of various use cases and organizational roles, etc. The findings are based on a two-sided t-test with an error value of p≤0.05. As an EA provides a holistic view of all the applications of the enterprise and their underlying platforms and inter-dependencies, the EA process can help in the development of a strategic migration plan from the current state to the target state rather than each department doing it on its own without taking into account the impact to other applications and systems. The good news is that prospective hires appear to be drawn toward exciting work that offers opportunities to learn and grow. EA also plays a critical role in the ongoing governance of IT. In fact, pressured by the competition, various LOBs of an enterprise seem to be more anxious than IT to roll out new solutions, thus in turn pressuring IT to become agile and responsive to LOB demands and requirements. Another example of opportunities  offered by digital no time on advance planning Henley. Upon by enterprises are enabling most of their applications and other C-execs though have a dedicated EA group embedded the. Light and context of market driven change requires a methodical and a variety of industries increasingly a focus of thinking. Will be happy to work with you ) such as Product Development Sales. These can run into various difficulties, though EA ’ s quite obvious that injecting new digital solutions the. 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