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The Future of EA in the Digital

Business of 2025
Betsy Burton

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Your Digital Business Strategy Is Your


Business Strategy
"Digital business" reflects
an emerging trend of
organizations creating
new business designs
by blurring the physical
and digital worlds.
Digital business is focused on the broader business opportunity
to compete (or serve).
Digital business is about the peer exchange between business
people and physical things as equal entities.

Digital businesses are digitalizing their physical and virtual assets.


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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Journey to Digital Business: Every


Person, Business and Thing Is a Peer
E-Business

Transform
Focus Sales
Channel
Optimize
Outcomes
Channel
People
Entities
Business
Automation
Disruptions of Business
Operations

Technologies EDI Mobile

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Digital Marketing

Digital Business

Autonomous

Exploits Nexus
to Drive Efficiency

Expends
Potential
Customers
to "Things"

Smart,
Semiautonomous
Things Become
Primary Customers

Optimize
Interactions

Build
New Business
Models

Maximize
Relationships
With Things

People
Business

People
Business
Things

People
Business
Things

Deeper Customer
Relationship
Analytics

Creation
of New Value
With Things as
Customers

Smart Machines
and Things as
Customers

BI, Big Data Social

Sensors, 3D
Printing Smart
Machines

Robotics,
Smarter Machines,
Automation

Does Your Organization Have a Digital


Business Strategy?
Survey of CIOs:
We have nothing we
recognize as digital
strategy
We have some strategy
in that area, but not called
out as digital

We have a digital strategy,


separate to our main
business strategy
Digital strategy is an
integrated part of our
main business strategy
Our digital strategy is
our business strategy

8%

10%

11%

22%

7%
18%

14%
28%

30%

26%
49%

41%
8 out of 10 digital
20%
19%
business leaders
75%
admit
they
will
need
14%
23%
45%
51%
16%adaptation
and
learning,
41%
25% to be effective
in order
18%
18%
5%
4%
4%
in the new
world
43%

Mfg./+
Resources
(n = 149)

11%

FinServ/
Insurance
(n = 71)

Services
(n = 63)

Healthcare
Providers
(n = 27*)

Comm./
Media
(n = 28*)

Retail
(n = 20*)

Wholesale/
Trade
(n = 22*)

52% of CEOs and Senior Executives Say That


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They Currently Have a Digital Business Strategy
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues
1. Perspective How is EA evolving to respond
to the disruptions of digital business?

2. Engagement What is the future of EA


in 2025?
3. Capabilities What can organizations do
today to prepare for the future?

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

World of Digital Business:


Car Crash Scenario

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New Partnerships, Technologies, and


People as Peers
Consumer Electronics
Government

Smartphone Car Crash Technology


Fire and Law Enforcement
Sanitary and Cleanup Services

Healthcare

First Responders
Emergency Rooms

Financial Services

Insurance (P&C)
Banks (Loan Risks)

Automotive

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Retailers

Damage Control Sensors


Safety Deployment
SMART Clothing

Traditional EA: Inside-out Perspective

Focus on IT
systems and
on delivering
business value
by providing a
more stable IT
foundation.

IT

Business
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Goal to manage,
consolidate,
standardize
and simplify
the IT landscape
to support
the business.

Modern EA: Outside-in Perspective


Focus on
the business
outcomes
needed to
deliver value
to customers,
constituencies,
partners and
stakeholders,
then working
inward

Customers

Partners

Industry
Peers
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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

EA for Digital Business: Outside-out


Perspective

Focus on architecting your enterprise from an


outside-out perspective as well as outside-in and
inside-out - perspective to competitively capitalize
on emerging digital business opportunities.

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Interactions with and across known and


unknown customers, constituencies,
partners and stakeholders.

2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues
1. Perspective How is EA evolving to respond
to the disruptions of digital business?

2. Engagement What is the future of EA


in 2025?
3. Capabilities What can organizations do
today to prepare for the future?

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Gartner 2011 Prediction:


Future of EA 2020
A Distinct Discipline
IT
Architecture

Integral
to Business
& IT Strategy

4% Probability

55% Probability

Only IT
Decisions

Business
and IT Strategy

No Longer
Supports EA
1% Probability

Scope

Focus

Absorbed
Into Business
Strategy
40% Probability

Not a Distinct Discipline


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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Gartner 2011 Prediction:


Future of EA 2020
A Distinct Discipline
IT
Architecture

Integral
to Business
& IT Strategy

4% Probability

55% Probability

No Longer
Supports EA
1% Probability

Scope

By 2020,
the majority of organizations will support
EA
Only
IT
Business
as integralFocus
to business & IT strategy. and IT Strategy
Decisions
Absorbed
Into Business
Strategy
40% Probability

Not a Distinct Discipline


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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Gartner 2014 Prediction:


Future of EA 2025
Outside-out
Influence
Business
Ecosystem

35% probability

60% probability

High

Change Impact

Optimize
Operations

Perspective

Low

Orchestrate
Business
Biosphere

1% probability

Inside-out
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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Maximize
Business
Outcomes
4% probability

Gartner 2014 Prediction:


Future of EA 2025
Outside-out
Orchestrate
Business
Biosphere

Influence
Business
Ecosystem

35% probability

60% probability

Optimize
Operations

Perspective

By 2025, enterprise architects will predominantly


Low
High
focus onChange
delivering
business outcomes from
the
Impact
perspectives of their business ecosystem.

1% probability

Inside-out
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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Maximize
Business
Outcomes
4% probability

Gartner 2014 Prediction:


Future of EA 2025
Outside-out
Influence
Business
Ecosystem

35% probability

60% probability

High

Change Impact

Optimize
Operations

Perspective

Low

Orchestrate
Business
Biosphere

1% probability

Inside-out
#GartnerSYM
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Maximize
Business
Outcomes
4% probability

Gartner 2014 Prediction:


Future of EA 2025
Outside-out
Influence
Vanguard
Business
Ecosystem
Enterprise

35% probability

Architects
60% probability
High

Change Impact

Perspective

Low

Orchestrate
Business
Biosphere

Foundational
Optimize
Enterprise
Operations
Architects
1% probability
Inside-out
#GartnerSYM
2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Maximize
Business
Outcomes
4% probability

Gartner 2014 Prediction:


Future of EA 2025
Outside-out
Orchestrate
Business
Biosphere

Influence
Business
Ecosystem

Optimize
Operations

Perspective

By35%
2016,
30% of organizations
probability
60% probabilitywill
establish a clear role distinction between
Low
High
foundational
and vanguard
Change
Impact
enterprise architects.

1% probability

Inside-out
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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Maximize
Business
Outcomes
4% probability

The Evolution of Enterprise Architecture

Inside-Out

Outside-In

Outside-out

Focus

Technology

Business Outcomes

Digital Business
Ecosystem

Capabilities

Reference
architectures, policies &
standards

Business architecture,
strategy execution

Business Designs,
Innovation, Scenario
Planning

Engagement

Within the IT
organization, back
office

Treat business peers as


customers, focused on
how to execute on their
strategy

Treat business
colleagues as partners,
engage
external customers

Business
Outcomes

Broad technology
capabilities

Measurable, business
strategy and operations

Measurable impact
digital business
innovation

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Business Outcome-driven EA Fuels


Digital Business Strategy Set actionable direction for
leveraging digital business
to deliver outcomes

Digital Business
Strategy
Explores
the

Guides where
and how
to invest

world of possible
disruptions

Business
OutcomesDefines

signposts,
indicators of
change

Future State
Scenarios

Digital
Disruptions

Identifies
implications,
risks, constraints
and touchpoints

Impact
Guide Opportunities
decisions
and investments
and Threats
and drives
execution

Signature-ready Deliverables
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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Key Issues
1. Perspective How is EA evolving to respond
to the disruptions of digital business?

2. Engagement What is the future of EA


in 2025?
3. Capabilities What can organizations do
today to prepare for the future?

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Five Key Capabilities for EA Emerge


Role

Capability

Digital Business
Innovation

Providing the future focused business and


IT leadership to seek out new opportunities
and threats

Digital Business
Leadership

Providing the insight, structure and process


to benefit from digital innovation

Digital Execution

Guides and informs both investment


decisions, including people, business
process, information and technology

Delivering Business
Outcomes

Ensuring strategy and business outcomes


are efficiently achieved

Technology Innovation

Leverage developments in technology and


services to innovate the operating model

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Digital Business Innovations:


Scan the World of the Possible
1. Identify 5 to 10 far-neighbor possible
partners, customers, competitors
2. Include people, business and things
3. Explore impact of disruptive trends on their
business, as well as your ecosystem
Luminaries

Top
technology
trends

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Industry
dynamics

Competitor
plays

Tech. firms
and
startups

Digital Leadership: Rise of Enterprise


Architect as Digital Strategist

Strategist
Catalyst
Visionary

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Digital Business Execution:


Develop Your Business Road Map
By 2017, 20% of purchases over $1000 at retailers and automobile dealers will be
funded by competitive instant loans obtained using mobile devices.
Deliver Personalized Customer Experience

Proactively Detect and Resolve Risk

Create "Next Payments" R&D

Support
Personalized
Campaigns

Contextualized
Interactions

Personalized
Risk,
Reputation &
Fraud Mgmt.

Detect
Fraud

Evaluate
Risk

Manage
Information
Security

Develop
Risk Models

Create
Sandbox

Crowdsource
Innovation

Onboard
Customers

Create and
Maintain
Reputation

Manage
Customer
Identify and
Preferences

Model
New Fraud

Balance
Transparency

Manage
Privacy
Maxims

Develop New
Innovation
Channels

Create Rapid
POC Cycle

Develop
Customer
as Innovator

Capabilities Gap
Assessment

Business

People

Process

Information

Technology

Priority

Develop Risk Models

High

Manage Customer
Identify and
Preferences

Medium

Model New Fraud

High

Onboard Customer

Low

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Gap

* gap assessment high (1) to low (5)

Delivering Business Outcomes:


Line of Sight to Digital Business Strategy
Integrate sensors, beacons and devices into our
new line of products to increase our competitive
wins by 5% by end of year 2015.
Leverage use of smart devices in banking to
create custom products that reduce risk by 10%.
Improve situational awareness by 20% for
environmental events by incorporating
smart machines and sensors.
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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Technology Innovation: Lead Response


to Emerging Disruptive Technologies
Disruptive
Trend
Ideation

Actionable
Deliverables

Diagnostic
Deliverables

Rationalize
Business
Outcomes

Evaluate
Opportunity
& Risk

Exploratory
Technology
Proposals

Opportunity
Proposals

Business Viability
Proposals

Innovation
Strategic Plan

Technology
Analysis

Business Scenario
Analysis

Risk Profiling

Impact Appraisal

Market Analysis

Business Impact
Assessment

Benefit Profiling

Roadmap

Market Research

Business Strategy

Risk Tolerance

Integrated IT
Portfolio Analysis

Technology
Research

Business
Capability Maps

Financial Controls,
& Value Drivers

Related Strategies

Enabling
Deliverables

Create
Business
Transformation
Road Maps

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommendations

Invest at least 20% of EA team time in understanding emerging


business designs and technologies, with a specific focus on
short-term and long-term strategic value and impact.

Use the definitions and future state scenario in this note to


determine your organizations future state for EA.
- Determine what focus for EA will be needed to support your business
in the next ten, five and two years.
- Compare these future states with your current focus for EA.

Identify and focus the resources and operations EA into two


groups, including:
Vanguard - Fast-paced, leading-edge EA efforts required to
explore digital business opportunities

Foundational - From the more stability and reliably focused EA


efforts, required to support ongoing business operations.
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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommended Gartner Research


Leveraging Enterprise Architecture to Lead the
Enterprise Response to Disruptive Technologies
Brian Burke, Betsy Burton, Mike J. Walker and
David W. Cearley (G00266770)
Seven Best Practices for Using Enterprise
Architecture to Power Digital Business
Marcus Blosch and Betsy Burton (G00263326)
Cool Vendors in Digital Business, 2014
Betsy Burton and others (G00262558)

Hype Cycle for Enterprise Architecture, 2014


Betsy Burton and Philip Allega (G00261507)
For more information, stop by Gartner Research Zone.

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

Recommended Gartner Research


Seven Ways to Build Your Business Ecosystem
for Greater Impact on Business and IT Planning
Marcus Blosch (G00260466)
Master the Six Essential Elements of a
Digital Strategy
Stephen Prentice and Ken McGee (G00247641)

Combine Adaptive Sourcing and


Enterprise Architecture to Drive Sustainable
Digital Transformation
Marcus Blosch and others (G00260467)

For more information, stop by Gartner Research Zone.

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2014 Gartner, Inc. and/or its affiliates. All rights reserved.

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