Monday, August 14, 2017

Enterprise Architecture 101: Digital Strategy Execution enabled by an ARB

A while ago, I had blogged a Pulse article about Digital Strategy Execution (ref link). This is a topic I continue to observe and reflect on since organizations continue to execute their corporate digitization strategies.

The Editor at Cutter Consortium reached out to me asking if I could expand on the topic, especially in the context of Architecture governance. This viewpoint - Digital Strategy Execution via Architecture Review Board (ARB) - was recently published as an executive update by Cutter Consortium.  I realize the report is firewalled, so for those without access to Cutter’s subscription, here is a detailed summary. I have also posted some of the diagrams from the report in a slideshare (link)
Enabling digital strategies requires CIOs, Enterprise Architects and IT leaders to engage with business stakeholders. Such engagement of IS with business stakeholders must be governed by the organization’s processes, operating model, and technology governance to ensure robust, scalable architectures. The resultant roadmaps should also be governed by a well-functioning ARB.

Digitization and Information Systems

There are lots of discussions and viewpoints on ‘digital strategies,’ and they must be contextualized for an organization. Examples of such user stories include medical insurance companies motivating consumers to video-chat with doctors, auto insurers offering “usage-based insurance” after analysis of driver data from devices on cars, and banks minimizing foot traffic at the branches while enhancing digital transactions. As an enterprise architect responsible for governance at a multinational organization, I had an opportunity to review several digital transformations. Most of them seem to fall into three distinct categories (see Figure):




  • Lights-on digitization (a.k.a IS led digitization)
  • Digital excellence
  • Customer-centric digitization

    Most lights-on digitization efforts - like migrating application platforms to cloud hosting, introducing new software as a service (SaaS), enhanced data management, automation of existing processes etc - are driven by IT leaders, who should take the opportunity to align these with other transformations.

    Technology and business leaders continually scan the external landscape for new and innovative solutions. Digital excellence initiatives include the introduction of innovative vendor solutions that can drive business growth. Examples include use of blockchain technology, tools to analyze big/unstructured data; speech recognition and interactive voice response (IVR) enabled processes, and incremental use of virtual assistants and transcription or translation services.

    Customer-centric digitization programs aim to enhance digital engagement with the company’s customers, business partners, vendors, suppliers, and other third parties. These initiatives require strong business insights and are generally sponsored and steered by senior executives. IT leaders facilitate ideation and technology foresight, and ensure seamless introduction of these solutions.

    Customer-centric digitization might also be designed to address threats from digital innovators. For instance, the travel and hospitality industry is reacting to disruptors like Uber, Lyft, and Airbnb. Innovations in robotics, Internet of Things, and artificial intelligence–driven planning and modeling are beginning to disrupt the existing ways of working in manufacturing industries.
    In the report, I expand the context of Architecture Governance (figure) and execution that requires executive support and an operational cadence. Digital strategies and roadmaps continually evolve and change in response to economic conditions, changing customer preferences, competitive pressures, and external market forces. Therefore, the basic design of an ARB should be simple but extensible. Please feel free to review the references:

    Thanks for reading! 
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