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Showing posts with label Digital. Show all posts
Showing posts with label Digital. Show all posts

Saturday, March 23, 2019

Enterprise Architecture and the Need for EA Agility

What enterprise doesn’t need management and technology practices that improve its performance by enabling it to see holistic and integrated views of their strategic direction, business practices, information flows and technology resources? Without current and future enterprise views, it becomes hard to manage the transition from current state to the future operating state, while adding more duplication and disjuncture to existing systems.
Alignment within an enterprise leads to the optimization of the usage of resources. This is where EA comes in, it helps ensure enterprise activities are not disjointed and helps reduce duplication of processes and applications. It also leads to a complete approach to management, planning and documentation; creating aligned strategy and business driven views of the enterprise. EA also should help ensure that investments have a linkage to strategic goals and business outcomes are obtained in the most efficient manner, if your EA is not doing this for you, then it isn’t being effective (Bernard, 2012, Chapter 1).
How does EA promote this alignment exactly? It draws from accepted standards and promotes the use of non-proprietary commercial solutions, enhancing integration and allowing for the “plug and play” of components, promoting agility to address change (if your EA has shifted to allow for this). EA can ensure separate sub-architectures are not needed to reflect different levels of the enterprise and it will enable you to provide ongoing capability and coordinated views of the strategic direction of the enterprise, and in regards to the business services, information flows and resources. An effective EA allows decision makers to make optimal judgments by obtaining coordinated information. This capability is aided by the standard language and methodology that EA brings, which all stakeholders can speak, in alignment (Bernard, 2012, Chapter 3).
How do we know whether our EA practice is actually delivering on the items we have outlined? Defining and tracking EA business-value metrics (qualitative and quantitative) improves the value proposition and impact of EA efforts (Brand & Smith, 2018). Projects guided by EA principles, road-maps, guidance and standards can also be measured directly and indirectly. “The direct measure of the impact of standards is the number of exceptions or waivers that are granted during the architecture assurance process. The indirect measure of the impact of standards is the business outcomes” (Burke & Burton, 2017, p. 9).
So, we know what EA is, what it does or should do. However, why is EA not effective in every organization? And why is it perceived by many, including decision makers that I have interacted with, as cumbersome, slow, and counterproductive? That is perhaps a direct result of the traditional EA vs. the Outcome-Driven EA dilemma.
An Outcome-Driven EA allows us to directly address the business outcomes of highest priority to the enterprise by aligning deliverables to the business direction, and vision, and the highest value added deliverables. In contrast, the traditional EA is too focused on collecting the current state architecture, which generates large amounts of objects and relationships that do not have a direct linkage to business outcomes, which wastes time and resources. The Outcome-Driven EA follows a methodology that simplifies it's development by creating a stage plan that exclusively targets the delivery of stakeholder value. Lastly, measurable outcomes are relevant; we should seek observable change in key business performance metrics within a defined time-frame (Bernard, 2012, Chapter 4).
How does this get enforced? At the center of the Outcome-Driven EA is the architect, rather than documenting the current state endlessly, and “filling out” the traditional framework, they should focus on developing the EA by targeting a limited set of outcomes and framing deliverables that are directly linked to business outcomes and key business disruptions. The architect’s focus should be exclusively on the deliverables required to address the target business outcomes, which can be achieved by effectively executing the stage plan through the re-focused EA delivery life-cycle (Burke & Burton, 2017).
However, the traditional EA is not without merit, and components of it must be leveraged. The current view of the architecture is important since it provides a set of baseline artifacts that can be used for planning and decision making, as a reference. The current view of the enterprise helps clearly show associations, dependencies and performance gaps in the enterprise’s business requirements and current capabilities. We can also observe which resources are being used in which LOB (line of business) to support the achievement of their strategic goals (Bernard, 2012, Chapters 1, 3, 7). There is great value in capturing the current operating environment because resources may not be aligned to the strategic goals and business services that the enterprise wishes to target, furthermore, significant duplication in functions and tools may exist. Even a traditional framework will be able to help map how to close gaps between the current and future state by utilizing the information from the current view, like having the blue prints to a home. Additionally, in documenting the current view of the enterprise, performance gaps that were not visible before may emerge (Allega & Burton, 2018).
That being said, organizations should forego the traditional EA approach given the issues mentioned. Additionally, with the traditional approach, the architect’s focus is on completing the framework and “filling everything out”, leaving little room for innovation. Instead, organizations should streamline EA development and focus on deliverables that directly address the highest priority business outcomes (Burke & Burton, 2017). The best way to accomplish this is to integrate agile practices with your outcome-driven EA, by doing so leaders will embrace innovation and take advantage of digital technology by using the design capability of EA in order to harness the creativity and talent already in their organization, to help create optimal solutions. An agile EA will also drive digital innovation by using design thinking created by lean techniques (Blosch, Burton & Walker, 2017). Agile focuses on rapid testing of market opportunities, experience and engagement, as well as experimentation led by disruptive innovation and collaboration across partner ecosystems; it also focuses on outcomes and sees failures as an opportunity to learn. Lastly, from a technology perspective, this EA will use reusable components and solution-driven techniques (Blosch, Osmond & Norton, 2016). In short, the Agile, Outcome-Driven EA, will enable the enterprise to truly embrace the digital era and survive major disruptions, where traditional EA may not be up to the challenge and be seen as an impediment, as we discussed earlier.

The above guidance is solid, however, we must note that the impact of agile practices in your EA won't be as great without having an outcome driven EA that seeks to support the business strategy and objectives that are mapped to the main business disruptions that your organization is facing (Burke & Burton, 2017), this means you have to know what those are. The key is to focus on producing signature-ready deliverables that drive business change; using Agile is great but efforts must be focused on high value deliverables that are mapped to business objectives. Agile can speed up delivery on items but the focus should remain on deliverables that address the highest-priority business outcomes that help address key disruptions and concerns of key stakeholders. To this end, agile practices should be combined with a design capability that helps drive digital innovation which can maximize the creativity and talent within the organization to help create optimal solutions (Blosch, Burton & Walker, 2017). If the aforementioned is not accomplished by using the EA, or rather, if the EA does not facilitate the accomplishment of said strategic goals and helps address business disruption, then the business will find ways to "address" those concerns by working around the EA, and the vicious cycle of shadow IT, duplication of systems, convoluted processes, lack of governance, etc. will inevitably ensue.

References


Allega, P., Burton, B. (2018). Massively Disruptive Events Require a Nonlinear Approach to Enterprise Architecture. Gartner. February.

Bernard, S. A. (2012). An introduction to enterprise architecture. Chapters 1, 3, 4, 7. AuthorHouse.

Blosch, M., Burton, B., Walker, M. (2017). Build the Design Capability of Your EA Practice to Drive Digital Innovation. Gartner. February.

Blosch, M., Osmond, N., Norton, D. (2016). Enterprise Architects Combine Design Thinking, Lean Startup and Agile to Drive Digital Innovation. Gartner. February.

Brand, S., Smith, M. (2018). EA Business-Value Metrics You Must Have Today. Gartner. May.

Burke, B., Burton, B. (2017). Stage Planning a Business-Outcome-Driven Enterprise Architecture. Gartner. p. 9. March.



Tuesday, January 29, 2019

Digital Disruption

Digital disruption is all around us; it has been for a while and continues to leave its mark. Depending on which industry you are working at you will see the impact of the digital era and its disruption more clearly, and that is highly dependent upon the business and operating model of your enterprise. Olanrewaju and Willmott speak in regards to this in their article, Finding your Digital Sweet Spot. This article speaks in regards to the potential impact of digital and how it varies by industry.

The article covers three clusters of industries that face varying levels of change in regards to digital transformation. There are the long-term multi-channel industries, like grocery retailing and apparel, which despite innovations in that sector are not as heavily impacted, in terms of digital, at least as compared to the “eye of the storm” industries, such as retail banking and mobile telecommunications, which are highly susceptible to digital disruption, due to having a cost base which is largely focused on processing and servicing. Then the authors speak about the “new digital normal” industries, which have completed several rounds of digital disruption, like music retailing, airlines and hotels. This article is a good exercise in terms of making you think where your industry finds itself in terms of digital disruption and how much change is expected in those sectors as a factor of that disruption.

One thing is certain, digital can reshape all aspects of any modern enterprise and that is why the modern Enterprise Architect must ensure that the EA (Enterprise Architecture), instead of being an agent of change, that it becomes an architect of change, as Bloomberg points out. The typical EA and the outdated frameworks will not be agile enough to support the digital goals of the business, and depending of the industry, that business may not be able to survive without fast adoption of the changes that must occur as a factor of digital disruption.

I think an important aspect of allowing the digital transformation to take place is to, as Larry Hawes notes on his Network of Services article, think of enterprise software, and the stack, as a “network of functionality that helps all constituents of the business achieve their objectives”, which will in turn allow software functionality in the enterprise to flow dynamically and fluently, better serving the different lines of business all across the enterprise. The old layered and hierarchical approaches will not be able to allow for digital transformation to occur as swiftly as it should in order to combat digital disruption, especially if you find yourself in the “eye of the digital storm”, as far as your industry goes.

References

Bloomberg, J. (2016, June 16). Change As Core Competency: Transforming The Role Of The Enterprise Architect. Retrieved from https://www.forbes.com/sites/jasonbloomberg/2016/06/16/change-as-core-competency-transforming-the-role-of-the-enterprise-architect/#67240731164a

Hawes, L. (2012, March 15). Enterprise Software Architecture: A Network of Services, Not a Layered Stack. Retrieved from https://www.forbes.com/sites/larryhawes/2012/03/14/enterprise-software-architecture-a-network-of-services-not-a-layered-stack/#5c37fdb07229

Olanrewaju, T., & Willmott, P. (n.d.). Finding your digital sweet spot. Retrieved from https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/finding-your-digital-sweet-spot.