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Digital strategy is a statement about the organisation’s digital positioning, competitors and customer and collaborator needs and behaviour to achieve a direction for innovation, communication, transaction and promotion. This describes facets of exploring the options for digital to ensure that the resulting strategy is realistic, achievable and will deliver a return.Enterprise Architecture needs to be involved in the development of digital architecture. Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture.Technology generally accelerates existing business momentum rather than being the originator of momentum. Digital is not a panacea. Digital interactions with third parties gives rise to expectationsDigital will make weaknesses in business processes and underlying technology very evident very quickly. Iterate through digital initiatives, starting small and focussed, learning from experience.
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So You Think You Need A Digital Strategy
Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney
I Want A Digital Strategy
… And It Must Include The Internet of Things …
… And Big Data
…
… And It Must Be Agile …
What About Cloud?
Bingo
… And Innovative…
October 27, 2015 2
Be Careful Of The Bumpy Ride On The Hypecycle
• Just because consultants and vendors are all talking about digital does not mean you should rush recklessly into it
October 27, 2015 3
Some Meaningless Slide About Classical Greek Military Terms
• Originally strategy meant generalship
• Tactics meant the organisation of military forces
• Strategoi (generals) could be punished, exiled or even executed for failure to use initiative, even if they succeeded in battle, by soldiers or the assembly
• How many digital strategists face a similar fate?
• How many Chief Marketing Officers and consultants are made drink hemlock if their digital strategy fails?
October 27, 2015 4
General Aspects Of A Strategy
Definition/ Diagnosis
Governing Policies and Principles
Action Plans
October 27, 2015 5
Define the circumstances of the issue that give rise to the need for a strategy
Detail the core objectives of the strategy to address the circumstances
Expand into a series of co-ordinated and integration actions to achieve the core objectives
What Success Looks Like And How You Intend To Achieve It
Digital Strategy
• Digital strategy is a statement about the organisation’s digital positioning, competitors and customer and collaborator needs and behaviour to achieve a direction for innovation, communication, transaction and promotion
October 27, 2015 6
Not All About Digital
• Business priorities − Keep the business running − Improve customer service − Reduce costs − Increase productivity and efficiency − Increase revenue − Develop new and enhance existing products and services − Find new business opportunities
• An effective and balanced approach to digital can assist with delivering on business priorities
• Remember that technology generally accelerates existing business momentum rather than being the originator of momentum
• Digital is not a panacea
October 27, 2015 7
Digital Has Become a Catch-All Term For …
October 27, 2015 8
Enhanced and extended web
presence, digital brand awareness and
development
Customer portal, greater customer intimacy, greater geographic reach
Multi-media and enterprise
content management
Greater web-based
transactional functionality Enabling
operational efficiencies and cost reductions
Greater enablement of
non-PC web access such as
mobile technologies
Multi-channel information
access
Customer self service, greater automation of
web interactions
Collection and analysis of web interaction data
Greater use of and integration
with social media
platforms Direct sales, ecommerce,
ebusiness
Mobile selling,
B2B, B2C, M2M
First Things First
• Know what you mean by digital and have a common understanding to avoid confusion
• Enables business expectations to be understood and managed
October 27, 2015 10
Digital In Business and IT Context
• Any digital initiatives sit within an overall business and IT context and their multiple balancing acts between:
October 27, 2015 11
Control Freedom Reduce Cost Deliver More
Security Openness
Delivery Strategy
Efficiency Responsiveness
Standardisation Customisation
Focus On Overall Organisation Focus On Individual Business Units
Predictability Agility
Organisation Business Landscape
October 27, 2015 13
Organisation
Business Customer
Contractor
Outsourcer
Regulator Partner
Dealer
Agent
Franchisee Representative Sub-Contractor
Intermediary
Client
Distributor
Researcher
Shareholder
Collaborator
Counterparty
Retail Customer
Service Provider Competitor
Supplier
Public
Organisation Business Landscape
• Organisations typically operate in a complex environment with multiple interactions with different communication with many parties of many different type over different channels − External Actors - xActors
• Digital is concerned with new ways of interacting with some or all of these xActors
• Digital is not just about customer interactions, though this may be its main focus
October 27, 2015 14
Organisation Business Landscape
Business Customer
Retail Customer
Shareholder
Shareholder
Partner Dealer
Outsourcer
Competitor
Supplier
Regulator
Contractor
Service Provider
Distributor
Intermediary Collaborator
Sub-Contractor
Franchisee
Counterparty
Intermediary Representative Agent Researcher
Client
Public
October 27, 2015 15
Organisation Business Landscape
• Not xActors the organisation interacts with have equal importance or of equal value
• Each xActor and communications channel has different characteristics: − “Distance” from the core of the organisation – composite
measure of value and importance to the organisation −Volume of interactions − Complexity of interactions − Type of interaction – informational or transactional
• Every organisation will have a different xActor and distance profile
• Follow the value
October 27, 2015 16
xActor Data Models
• Build logical data model for each external party to link possible requirements to required capabilities and associated processes
• Will be different for each organisation
• Enable identification of current and future interactions, the impact and data requirements
• Enable effective decisions on costs and benefits of digital
October 27, 2015 17
Depth And Breadth Of Implementation And Operation Of Digital Strategy
Customer
Service Provider
Partner
Regulator
Agent
…
October 27, 2015 19
Number Of Processes Automated
Co
llab
ora
tio
ns
Imp
lem
en
ted
Digital Strategy And Business Processes
• A key aspect of implementing a digital strategy is the extension of internal processes to specific parties over specific channels outside the organisations
• This extension will be phased based on standard delivery criteria: − Cost
− Resource
−Amount of change the organisation can absorb
October 27, 2015 20
Extended Dimensions Of Digital Strategy
October 27, 2015 21
External Parties Participating in
Digital Interaction/
Collaboration Numbers and Types of Interactions/ Collaborations and Business Processes Included in
Digital Strategy
Channels Included in
Digital Strategy
Dimensions Of Digital Strategy
• 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
October 27, 2015 22
Dimensions Of Digital Strategy
• You cannot realistically achieve work across all dimensions
• The change, cost, risk, resources and time required to implement digital across combinations is too great
A - External Parties Participating in Digital Interaction/ Collaboration
B - Numbers and Types of Interactions/ Collaborations and Business Processes Included in Digital Strategy
C - Channels Included in Digital Strategy
A x B x C
• Is just too large a number
• You need to prioritise implementation based on factors such as value
• You need to be realistic about what can be achieved
• You need to understand the enabling technologies and changes to existing system needed to make the implementation of a digital strategy work
October 27, 2015 23
Dimensions Of Implementation Of Digital Strategy
October 27, 2015 24
Phase 1
Phase 2
Phase 3 External Parties Participating in
Digital Interaction/
Collaboration Numbers and Types of Interactions/ Collaborations and Business Processes Included in
Digital Strategy
Channels Included in
Digital Strategy
Digital Initiative xActor Delivery Radar
• Mapping the planned and phased depth and breadth of digital interactions with xActors relevant to the organisation
October 27, 2015 25
Operational Silos
• There are too many operational units that operate independently with walls effectively between them
• There is too much lobbing of work over the walls between operational units with no cross-functional/cross-capability, end-to-end view and no seamless operation
• When you extend business processes outside the organisation, you need to ensure cross-functional/cross-capability operation
• External parties are not concerned with process limitations caused by a siloed organisation not operating efficiently
• Lack of seamless operation of business processes not evident (to a lesser or greater extent) to the outside world
October 27, 2015 27
Digital Strategy And Business Processes
October 27, 2015 28
Business Processes Within The Organisation
Digital Means Extending and
Exposing Business Processes Outside the Organisation – The Organisation Is being Opened-Up
Extending The Organisation’s Boundaries
October 27, 2015 29
Business Processes Within The Organisation
How Far to Push the Boundary and How Porous
Should the Boundary
Be?
Digital Creates User Expectations
• Understand, manage, control and deliver on the expectations
October 27, 2015 30
• Digital reduces the expected and tolerated latency and the asynchronicity of communications between the organisation and external parties
Digital User Expectations
October 27, 2015 31
First time problem resolution or response to
request Support is available
whenever it is needed
All information is accurate and available online all the
time
Products and services can be ordered and their
delivery tracked
Access is available from anywhere at any time
Proactive notifications
Range of channels and functions affects decision to
do business Demand multi-channel
experience
Simple, consistent, easy to use
Provide advice and assistance
Loyalty and rewards
Immediate access and response
Be Careful These User Expectations Do Not Explore In Your Face
October 27, 2015 32
First time problem resolution or response to
request Support is available
whenever it is needed
All information is accurate and available online all the
time
Products and services can be ordered and their
delivery tracked
Access is available from anywhere at any time
Proactive notifications
Range of channels and functions affects decision to
do business Demand multi-channel
experience
Simple, consistent, easy to use
Provide advice and assistance
Loyalty and rewards
Immediate access and response
Expectations Of Digital
• Don’t let your digital strategy be crushed by the weight of internal and external expectations
October 27, 2015 33
User Expectations
Business Expectations
Digital Strategy is All About Connectivity And Integration
October 27, 2015 34
Connectivity Between
External Parties and the
Organisation Connectivity
Between Business Functions
Connectivity Between Applications and Data
Digital Enablement Technology Iceberg
October 27, 2015 35
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
Digital Strategy And Business Processes
• Extending and exposing existing possibly siloed and functionally not integrated business processes outside the organisation may uncover problems with their operation
• Digital interactions with third parties gives rise to expectations of: − Velocity − Responsiveness − Accuracy − Completeness
• Digital will make weaknesses in business processes and underlying technology very evident very quickly
• Failure to deliver expectations will affect the success of the digital strategy
October 27, 2015 36
Operational Silos – Breaking Through The Walls To Enable Cross-Functional/Cross-Capability Working
October 27, 2015 37
Digital Strategy And Business Processes
• You need to break through the organisation barriers preventing cross-functional/cross-capability business process operation as a pre-requisite for successful and efficient digital implementation and operation
October 27, 2015 38
General Aspects Of A Digital Strategy
Definition/ Diagnosis
Governing Policies and Principles
Action Plans
October 27, 2015 39
Define the circumstances of the issue that give rise to the need for a
strategy
Detail the core objectives of the
strategy to address the circumstances
Expand into a series of co-ordinated and integration actions to achieve the core
objectives
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?
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?
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
Fallacies Of Distributed Computing Digital
October 27, 2015 40
• Fallacies of distributed computing are assumptions made by developers of distributed applications identified by Peter Deutsch at Sun Microsystems
• Assumptions are false and the consequences of making them include some or all of system failure, increased costs, project delays, reduction in scope or substantial redesign and rework
• Fallacies apply equally to digital initiatives
• Don’t relearn forgotten lessons the hard way
Fallacy In the Digital World 1.The network is reliable The external network is outside your control. It is inherently unreliable. It has uncertain
performance
2.Latency is zero Latency is pervasive
3.Bandwidth is infinite Assumptions about bandwidth lead to network-intensive applications that lead to poor and erratic performance
4.The network is secure No it is not. Lack of concern about widespread security threats will leads to weaknesses
5.Topology doesn't change It changes all the time and no one tells you
6.There is one administrator
There are many administrators and they are not all under your control. In some cases no one is in control
7.Transport cost is zero Network bandwidth can have significant costs
8.The network is homogeneous
The digital network is mixed, much of it is outside your control and there are many pinch points
Objectives Of Digital Strategy
October 27, 2015 41
Digital Strategy
Objectives
Relationships And Information
Commerce And Transactions
Content and Management
Marketing and Communications
Efficiency
Brand
Innovation
Profit
Achieved By
Technology
Processes
People
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
October 27, 2015 42
Digital Strategy – Some Questions
• What parts of the business make the most margin?
• What parts of the business give rise to the greatest costs?
• What return are existing digital investments currently providing?
• How can digital investment increase revenue, increase margin and/or decrease costs?
• What reducible friction do our collaborators hate?
• What is possible to realistically envision and achieve in 1-2 years?
October 27, 2015 43
Digital Strategy Must Fit With Organisation Brand Strategy And Not The Other Way Around
October 27, 2015 44
Core Brand Strategy
Digital Brand Strategy
Digital Channels and Media
Technology, Processes, People
Elements Of Brand
• Targeted – being appropriate to the market and product set
• Clear – delivering an instantly comprehensible message
• Desirable – something customers want to have or to be part of
• Unique – differentiated standing out in the crowd
• Meaningful – matching customers’ expectations
• Consistent – across all aspects of the company
• Recognisable – clear, easily identified, repeatable
• Actionable – can be leveraged and supported
• Extensible – supports new products and partners
• Digital must support and enhance this
October 27, 2015 45
Beware Of Digital For Its Own Sake
• A potential false promise of a digital strategy is that content will magically turn into revenue without effort
• The reality is that views does not equal customers
• The digital strategy has to produce revenue from all the content and functionality
• Need to concentrate resources on the greatest opportunities to increase revenue and margin and achieve a sustainable competitive advantage
October 27, 2015 46
Beware Of The Illusion of Outcomes
• Outcomes cannot be managed, only influenced
• Outcomes include: − Sales
− Sales conversion rate
− Revenue
− Profit
− Cashflow
• Outcomes can only be influenced through activities: − Improved customer satisfaction
− More sales activity
− Greater value for money
• Focussing on digital-enabled cross-functional processes is a key way to influence outcomes and deliver value
• But digital might generate a lot of activities that do not generate outcomes
October 27, 2015 47
October 27, 2015 48
Illusion Of Attempting To Manage Outcomes
Sell More Products/
Services and More
Profitably
Generate More Profit
Identify the Right Customers
Fulfil Orders Correctly and Satisfactorily
Manage Customer Relationships
Be Easy to Do Business With
Be an Organisation Customers Want to Do Business With
Generate and Maintain High Customer Satisfaction
Develop and Sell the Right Product at the Right Price
Digital Activities Outcomes
You cannot force customers to buy
more products and services …
… But you can make it easier for
customers to do so with an
appropriate digital strategy
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
October 27, 2015 49
Security And Privacy
• Implementation of digital strategy needs to have external party security and privacy as a fundamental design and operating principle
• Privacy and security represent a trade-off
• More security means greater cost and greater inconvenience for external parties − Need to balance costs and
inconvenience
• Different views on the: − Perceived risk of a security breach − Relative weight/importance of
privacy
• Steps to implement external party privacy and security − Analyse security risks − Analyse security requirements and
trade-offs − Develop a security plan − Define a security policy − Develop procedures for applying
security policies − Implement the technical strategy
and security procedures − Test the security and update it if
any problems are found − Maintain security
October 27, 2015 50
Scope of Digital Strategy
October 27, 2015 51
Digital Vision,
Strategy and
Culture
User Experience
Content and Process
Technology Platforms
Data, Services
and Operational
Systems
Digital Overlap With Customer Experience Strategy
October 27, 2015 52
Digital Strategy
Digital Customer Strategy
Customer Experience
Strategy
Digital Technical Strategy
Digital Operations
Strategy Business Strategy
Tools And
Systems
Processes
People
Customer Experience
• Digital is largely about third-party/customer experience
• Third-party/ customer experience needs to be at the heart of digital programme
• Management cite limitations from inflexible technology, siloed organisations, and insufficient investments as the biggest obstacles to delivering the best possible customer experience
October 27, 2015 53
Stated Obstacle % Identified Limitations of inflexible technology and application infrastructure 29%
Difficulty regularly tracking performance measures and customer feedback 24%
Don't have a consolidated, accurate, 360-degree customer view across all touch points 23%
Siloed systems that prevent us from easily sharing information or supporting continuous processes across touch points
18%
Siloed organisations/ conflicting key performance indicators (KPIs)/incentives between different channels/ business units
27%
Lack of money allocated to customer experience initiatives 27%
Customer Experience Survey Results
• Oracle surveyed more than 1,300 senior executives across 18 countries in North America, Latin America, Europe, and Asia Pacific to assess: − The financial impact of the customer experience − The challenges businesses face delivering great customer
experiences − The types of programs and initiatives that have been most
effective in delivering results −Where businesses are investing to improve the customer
experience
• An independent market research firm – worked on behalf of Oracle to conduct online interviews with 1,342 global senior executives from a wide variety of industries in August and September of 2012
October 27, 2015 54
Europe Customer Portal Survey Key Findings
October 27, 2015 55
Average potential annual revenue lost as a result of not offering a positive, consistent,
and brand-relevant customer experience
Formalised Customer Experience Program:
Are still assessing or planning with no active implementations
Have one or more active implementations
36%
42%
Biggest Obstacles:
Lack of money (31%) #1
Siloed organisations (25%) #2
#3
15% In the next two years, European companies will
invest in:
28% Integrated customer view across all channels
27% Business and customer analytics solutions
26% Loyalty management system
Most Successful Customer Experience Projects:
31% Implementing a technology to improve customer service
28% Building a training program/incentives for employees
27% Implementing an SLA with any customer contact
Average planned increase on customer experience technology spending in the next two years
Difficulty tracking performance/customer feedback (24%)
Consider their CX initiative advanced 20%
18%
18%
The Perception Chasm - Businesses and Customers Are Worlds Apart
October 27, 2015 56
49% 89% But …
44% 86% While…
of executives believe customers will switch brands
due to poor customer
experience
of customers say they have switched
because of poor customer experience
of executives believe customers are willing to pay
for great customer experience
of customers say they are already
doing so
Business executives underestimate the importance of the customer experience on customer behavior
Executives Underestimate The Risk and Opportunity
Digital Operational Technology Layers
October 27, 2015 57
Customer Access and Interaction
Content Aggregation and Management
Extensions to Existing Systems/Data Integration
Operational Systems
Analytic Systems
Operational/Technology Component Layers
October 27, 2015 58
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
Indicative View Of The Operational/Technology Components And Interfaces To Realise A Digital Strategy
October 27, 2015 59
External Party-Facing Web Accessible
Applications Social Media Platforms
Process, Service and Data Integration
Core System Interfaces
Core Transaction Processing System(s)
Other Operational System(s)
Content Management System
Master Data Management
Campaign Management
xRM
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
October 27, 2015 60
Operational/Technology Layers And Their Components
October 27, 2015 61
Customer Access and Interaction
Content Aggregation and Management
Extensions to Existing Systems/Data Integration
Operational Systems
Analytic Systems
External Party-Facing Web Accessible
Applications Social Media Platforms
Process, Service and Data Integration
Core System Interfaces
Core Transaction Processing System(s)
Other Operational System(s)
Content Management System
Master Data Management
Campaign Management
xRM
Measuring The Return Of A Move To Digital
Benefits Available
Increased Revenue
Improved Sales
Pricing Improvements
Better Segmentation
Faster and Cheaper Acquisition
Increased Spend
Product Groups/ Bundles
Increased Return on Marketing Spend
Campaign Granularity
Increased Campaign Response Rate
Improved Service Improved Client Satisfaction
Client Loyalty/ Brand Affinity
Client Tenure/ Retention
Client Referrals
Improved Operating Efficiency
Reduced Operating Costs
Call Optimisation
Service Levels
Capacity
Reduce Marketing Costs Campaign Cost
Product Catalog Size
October 27, 2015 62
Measuring The Return Of A Move To Digital
• Agree and implement a measurement framework and associated data collection and gauge success of digital initiatives
October 27, 2015 63
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
October 27, 2015 64
Iterate Through Digital Initiatives
• Iterate through digital initiatives, starting small and focussed, learning from experience
October 27, 2015 65
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
October 27, 2015 66
Digital Functionality Delivery Roadmap
Year 1 Q1
Year 1 Q2
Year 1 Q3
Year 1 Q4
Year 2 Q1
Year 2 Q2
Year 3 Q3
Year 3 Q4
Business Domain
External Party
Channel
Channel
Channel
External Party
Channel
Channel
Channel
Business Domain
External Party
Channel
Channel
Channel
External Party
Channel
Channel
Channel
Technology Dependencies
Technology Initiative 1
Technology Initiative 2
Technology Initiative 3
October 27, 2015 67
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 organisation’s Enterprise Architecture and other subsidiary architectures
October 27, 2015 68
Digital Reference Architecture In Context
• Enterprise Architecture needs to be involved in the development of digital architecture
• Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture October 27, 2015 69
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
Digital Reference Architecture
October 27, 2015 70
External Party Interaction Zones, Channels and Facilities
Security, Identity ,
Access and Profile
Management
Responsive Infrastructure
Digital Specific Applications and Tools
Internal Interaction Management
Integration
Operational and Business Systems
Applications Delivery and Management Tools and
Frameworks
System Development, Deployment and
Management
Digital Reference Architecture
• 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
October 27, 2015 71
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
October 27, 2015 72
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
October 27, 2015 73
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
October 27, 2015 74
Business Objectives
Business Operational
Model
Enterprise Architecture
Solution Implementation
and Delivery
Management And
Operations
Business Processes
Required Operational
Business Systems
Business Strategy
Systems Design/
Selection
Business IT Strategy
IT Function Strategy
Digital Strategy
Required Operational Processes
Required Support
Business Systems
Systems Design/
Selection
Digital IT Architecture
Digital Strategy In Business And IT Context
October 27, 2015 75
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
October 27, 2015 76
Organisation Readiness For Digital – Assessment Framework
October 27, 2015 77
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
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
= = = = =
Route To Digital
October 27, 2015 78
Digital Transition And
Transformation
Digital Architecture
And IT Strategy
Digital Execution, Delivery and Operations
Vision and Guiding Values for Digital
Exploitation
Business Strategy
Organisation Readiness For
Digital
Digital Architecture
Digital Capability Delivery Roadmap
Digital Solutions
Supporting Solutions
Measurement and Reassessment
Measurement Framework
Digital and IT Strategy
Digital Organisation Capabilities Organisational Capabilities for
Digital
Strategy, Culture, Change
and Governance
Digital Strategy Development
Digital (and Other) Solution
Governance
Organisation Change for
Digital
Process Management
Digital Architecture
External Party Interaction
Zones, Channels and
Facilities
Personalisation
Content Management
Security, Identity ,
Access and Profile
Management
Responsive Infrastructure
Digital Specific Applications
and Tools
Internal Interaction
Management Integration
Operational and Business
Systems
Applications Delivery and Management
Tools and Frameworks
System Development, Deployment
and Management
Digital Solution Delivery
Programme Management
Portfolio Project
Management
Business Analysis and Engagement
Tool Selection and Delivery
Solution Architecture
Solution Delivery
Digital Operation
Service Delivery and
Management
Service Analytics
Organisation Management
Capacity Planning
Customer Experience
Research and Analysis
Marketing and Advertising
Design
Usability
Customer Journey
Management
Analytics and Insight
Single View of the Customer
Analysis and Reporting
Data Collection and
Management
Customer Segmentation
and Insight
Digital Technology
Foundation and Infrastructure
Infrastructure
Security
Integration
Enterprise Architecture
Service Delivery and
Management
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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
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Digital Organisation Capabilities Organisational Capabilities for
Digital
Strategy, Culture, Change
and Governance
Digital Strategy Development
Digital (and Other) Solution
Governance
Organisation Change for
Digital
Process Management
Digital Architecture
External Party Interaction
Zones, Channels and
Facilities
Personalisation
Content Management
Security, Identity ,
Access and Profile
Management
Responsive Infrastructure
Digital Specific Applications
and Tools
Internal Interaction
Management Integration
Operational and Business
Systems
Applications Delivery and Management
Tools and Frameworks
System Development, Deployment
and Management
Digital Solution Delivery
Programme Management
Portfolio Project
Management
Business Analysis and Engagement
Tool Selection and Delivery
Solution Architecture
Solution Delivery
Digital Operation
Service Delivery and
Management
Service Analytics
Organisation Management
Capacity Planning
Customer Experience
Research and Analysis
Marketing and Advertising
Design
Usability
Customer Journey
Management
Analytics and Insight
Single View of the Customer
Analysis and Reporting
Data Collection and
Management
Customer Segmentation
and Insight
Digital Technology
Foundation and Infrastructure
Infrastructure
Security
Integration
Enterprise Architecture
Service Delivery and
Management
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Bringing It All Together
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Dimensions of Digital Strategy
Digital Organisation Capabilities
Objectives of Digital Strategy
Measuring The Return Of A Move To Digital
Operational Layers and
Components
Route to Digital
Bringing It All Together
• Use the different facets of digital analysis and impact assessment described here to generate a comprehensive and realistic understanding of what digital means, what a move to digital involves, requires and what it will deliver
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Summary
• Remember that technology generally accelerates existing business momentum rather than being the originator of momentum
• Digital is not a panacea
• Know what you mean by digital and have a common understanding to avoid confusion
• You need to be realistic about what can be achieved
• Follow the value
• You need to understand the enabling technologies and changes to existing system needed to make the implementation of a digital strategy work
• Digital architecture needs to be at the core of the organisation’s wider Enterprise Architecture
• Digital reduces the expected and tolerated latency and the asynchronicity of communications between the organisation and external parties
• Don’t let your digital strategy be crushed by the weight of internal and external expectations
• Digital interactions with third parties gives rise to expectations
• Digital will make weaknesses in business processes and underlying technology very evident very quickly
• Iterate through digital initiatives, starting small and focussed, learning from experience
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