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Architecting the Digital Business:

Planning for the Third Era of


Enterprise IT
Brian Burke
@brian__burke

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"With competitive technology IT


needs to be half in technology
research, and half in traditional IT."
Alan Matula
CIO, Royal Dutch Shell

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Strategic Planning Assumption

By 2016, 30% of global organizations


will establish a clear role distinction
between foundational and vanguard
enterprise architects.

IT Industrialization

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Digitalization

Key Issues
1. What are the key enabling technologies that
will make digital business different?

2. How can you make sense of evolving


technology disruptions?
3. How can you contextualize opportunities
for your organization?

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Digital Business

The creation of new business


designs by blurring the
digital and physical worlds
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Disruptive Technologies Are


Solutions Looking for Business
Problems to Solve

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A Near-Term Explosion of
Enabling Technologies
Digital and physical worlds
are blurred when:
Atoms behave like bits

Machines become
smarter than people
Everything is connected

Smart
Advisors

Internet
of Things

3D
Autonomous Printing

Big
Data
Gesture
Control

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Augmented
Reality

Sensors

Vehicles

Virtual
Personal
Assistants

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Mobile
Robots

Drones
Location
Intelligence

Human
Augmentation

Digital Business Enables Entirely


New Business Designs

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An Explosion of Business Opportunities

What business models will emerge when:


Fabrication is local
and automated

Assets are shared


and fully utilized
Humans are
augmented
or replaced

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The Role of the Vanguard EA:


Rethinking What Is Possible
Vanguard EAs must
throw away all the
old assumptions.
Rethink:
- Customer value proposition.
- Partner value exchange.

- Employee value proposition.


- Business processes.
- Information and analytics.

What does this mean


for your business?
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Atoms are the new bits.

Making Sense of the Trends:


Disruptive Technologies Mature
Over Years or Decades

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Technology Innovation: Lead Response


to Emerging Disruptive Technologies
0

1
Disruptive
Trend Ideation

Actionable
Deliverables

Diagnostic
Deliverables

Deliverables

Rationalize
Business
Outcomes

3
Evaluate
Opportunity
and Risk

Create Business
Transformation
Road Maps

Exploratory Technology
Proposals

Opportunity Proposals

Opportunity Viability
Proposals

Innovation Strategic
Plan

Technology Analysis

Business Scenario
Analysis

Risk Profiling

Impact Appraisal

Market Analysis

Business Capability
Impact Assessment

Benefit Profiling

Road Map

Readiness Assessment

Gaps and Opportunities

Ideation Analysis
Opportunity Identification

Enabling

Opportunity Analysis
Business Outcome Stmts.

Market Research

Business Strategy

Risk Tolerance

Industry Research

Business Capability Maps

Financial Controls, Policy


and Value Drivers

Technology Research

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Integrated IT Portfolio
Analysis
Related Strategies

Understanding Disruptions:
Phase 0 & 1
0

1
Disruptive
Trend Ideation

Actionable
Deliverables

Diagnostic
Deliverables

Deliverables

Rationalize
Business
Outcomes

3
Evaluate
Opportunity
and Risk

Create Business
Transformation
Road Maps

Exploratory Technology
Proposals

Opportunity Proposals

Opportunity Viability
Proposals

Innovation Strategic
Plan

Technology Analysis

Business Scenario
Analysis

Risk Profiling

Impact Appraisal

Market Analysis

Business Capability
Impact Assessment

Benefit Profiling

Road Map

Readiness Assessment

Gaps and Opportunities

Ideation Analysis
Opportunity Identification

Enabling

Opportunity Analysis
Business Outcome Stmts.

Market Research

Business Strategy

Risk Tolerance

Industry Research

Business Capability Maps

Financial Controls, Policy


and Value Drivers

Technology Research

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Integrated IT Portfolio
Analysis
Related Strategies

Technology Analysis: What Does It Do?


Generation

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Market Analysis:
What Are the Use Cases?
Medical Robots
Disaster Response

Food Preparation

Robot Soldiers
Household Helpers

Assistive Care

Agriculture
Drilling
Bomb Disposal
Vacuum Cleaning
Packaging
Painting

2 Yrs. to 5 Yrs. <2 Yrs.

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Surgery
Welding
Pick and Place
Material Handling

Deployed Today

<2 Yrs. 2 Yrs. to 5 Yrs.

Ideation Analysis
Swarm

Crowdsourced

Innovation
Community

Specific

Fuzzy

Specialist
Teams

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R&D Teams

Squad

Opportunity Identification:
What Problem Does It Solve?
Pattern Match to
Business Capabilities

Robotics
Painting
Drilling
Welding
Materials Handling
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Manufacturing

Actionable Deliverable:
Exploratory Technology Proposals
Stage gate the
process to avoid
blind alleys
Seek approval to
proceed to the
next step

Ensure that business


and IT management is
onboard with the
direction of research
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Making Sense of the


Opportunities: Contextualize
Disruption for Your Organization

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Business Scenario Analysis:


Alignment With Business Direction
Material Handling

Improve Product Quality

Painting

Drive Customer Intimacy

Welding

Extend Global Reach

Drilling

Standardize Processes

Pick and Place

Develop Employee Skills

Vacuum Cleaning

Cut Production Costs

or create a new strategy based on disruptive technology!


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Business Capability Impact Assessment


Strategic, Future-State Business Capabilities
(Three Years) and Incremental Investments
Deliver Personalized Customer Experience

Develop Market and Brand

Create "Next Payments" R&D

Support
Personalized
Campaigns

Contextualize
d Interactions

Personalized
Risk,
Reputation &
Fraud Mgmt.

Develop
Product
Strategy

Market
Products

Operate
Customer
Intelligence

Develop
Risk Models

Create
Sandbox

Crowdsource
Innovation

Onboard
Customers

Create and
Maintain
Reputation

Manage
Customer
Identity and
Preferences

Operate
Competitive
Intelligence

Define
Business
Direction

Set Pricing

Develop New
Innovation
Channels

Create Rapid
POC Cycle

Develop
Customer as
Innovator

Provide Account Services

Develop Multichannel

Operate Business

Service
Deposits

Offer
Credit/Debit
Card

Offer
Corporate
Loans and
Make Deposits

Service
Payments

Support
Multichannel
Payments

Support
Dynamic
Facilities

Govern
Technology
Investment

Maximize
Human Capital

Optimize
Facilities

Provide
Consumer
Credit

Deliver Wealth
Management
Services

Provide
Corporate
Credit (SMB)

Provide Credit
Services

Support
Universal
BYOD

Create Digital
Services

Support
Investors

Develop
Strategic
Planning

Manage
Financial

Develop Partner Ecosystem

Proactively Detect and Resolve Risk

Execute Investment Products

Define
Partner
Aggregators

Broker
Crowd
Funding

Manage
Channel
Partners

Detect Fraud

Evaluate Risk

Manage
Information
Security

Execute
Personalized
Investments

Deliver
Corporate
Financing

Manage
Corporate
Investments

Use Credit
Brokers

Support
Peer-to-Peer
Partners

New Channel
Partners

Model New
Fraud

Balance
Transparency

Manage
Privacy
Maxims

Provide
Investment
Services

Execute
Fund
Management

Offer
Corporate Tax
Services

Primary Investment (Above $5 Million [M])


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Secondary Investment ($3M to $5M)

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Tertiary Investment ($1M to $3M)


Minor Investment (<$1M)

Strategic Areas

Opportunity Analysis:
Leverage the Option Graph
Robotics Options Graph
Affinity < Bubble Size
Material Handling
Order Picking

Opportunity

Welding
Drilling
Piece Pick and
Place
Packaging
Vacuum Cleaning

Maturity
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Painting

Business Outcome Statements


A business outcome is a specific and measurable result that
includes (1) measurable business benefit, (2) achieved within a
time frame, and (3) in support of the business strategy.
A business outcome should consider business disruptions
(threats and opportunities).
For example:
Streamlining sales processes (business outcome) to shorten the sales cycle by
30% (business metric) in 12 months which decreases cost-of-sales by 10%
(financial value).
Creating a design forum to enable customers to participate in product design
(business outcome) thereby increasing R&D success index by 20% (business
metric) within 2 years which increases revenue by 5% (financial value).
Leveraging "vested outsourcing" (business outcome) to reduce operating costs
by 15% (business metric) over the next year increasing profit margin by 3%
(financial value).
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Actionable Deliverable:
Opportunity Proposals
Demonstrate technology use cases
Match business opportunity

Align to business direction

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Making It Actionable
Analyzing opportunities
is not enough.
Vanguard enterprise
architect must be a
catalyst for change.
Determine the costs,
benefits, risks of
emerging technology
opportunities.
Create a signature-ready
proposal to pilot
or prototype.
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Catalyst: An agent that


provokes or speeds
significant change or action.
Merriam-Webster

Recommendations
Understand and track technological disruptions
that will have an impact on your industry.

Develop contextualized options graphs for


highest impact disruptions.

Create signature-ready proposals to leverage


opportunities created by digital disruptions.

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Recommended Gartner Research


Forecast: The Internet of Things, Worldwide, 2013
Peter Middleton, Peter Kjeldsen and Jim Tully (G00259115)
Uncover Value From the Internet of Things With the
Four Fundamental Usage Scenarios
Stephen Prentice and Hung LeHong (G00249065)
The Disruptive Era of Smart Machines Is Upon Us
Tom Austin (G00257743)
Smart Machines Mean Big Impacts: Benefits, Risks
and Massive Disruption
Tom Austin (G00255663)
For more information, stop by Gartner Research Zone.

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