By Sunil Kr. Singh, Senior Architecture and Digital Consultant at TATA Consultancy Services
Driving Digital Transformation Using Enterprise Architecture as a Problem Solving Tool Set
If I start talking to an audience and start with, “Enterprise Architecture is required for driving Digital Transformation of an organization”, I guess, I would be talking to an empty hall in 30 seconds. However, I believe it is worth the effort; too many transformations are on. You might be starting to wonder what I have here to say.
Changes are happening rapidly
Business Transformation is becoming the normalized playing ground for everyone! It is happening more frequently and far rapidly. It does not end here; it further makes it more challenging by reducing the time to play catch up. As this Digital Tsunami is hitting us, adopting and developing a standardized approach to implement or execute digital transformation initiatives is important to be successful. The key is to develop the competency to be agile or incremental in a very dynamic environment.
Consumerization and Commoditisation of Product and Services, driven by innovation, knowledge sharing, collaboration and crowd-driven mechanics, is driving rapid evolution of business landscape. The desire to use information in better ways was always there. However, the cost and the scale with which it is possible now was only in books and labs even a decade back. If I still have you here and everything sounds familiar, you might be starting to wonder what is so special about the Digital Transformation. This is the right question and I would encourage you to ask this question many times, as you take up the Digital Transformation journey!
I strongly believe that transformation is definitely an old subject for you. Business has been engaged in transformation for a long time; driving transformation by formulating new business strategies. The same is true for Information Technology (IT) departments; they had moved from mainframe to distributed systems, from independent web applications to Portals to mobile applications. We are all seasoned soldiers of Transformation! Still…
One of the biggest causes of starting to feel the butterflies are the uncertainties around how big of a force is the Tsunami. As we see business domains collapse, we wonder what we should do now. Shall we act or watch and catch the next wave? Which waves to catch, there’s no abating of waves!
Too often disruption in business model
The driver for Google Compare is unprecedented! Who can become the car manufacturer? Alternatively, who wants to play in the card payment market? All establishment looks like pack of cards; they are to be blown away and rebuilt by the Digital Tsunami.
The speciality here is, change in pattern for “Transformation” when the prefix “Digital” gets associated. It is no longer IT for Business. It is technology-enabled business, literally! The basics of market place of how one get their 4Ps together to generate values is changing and thus newer Business Model. That is where the critical differentiation comes in. This drives in a couple of thoughts: A) Business Gurus need to understand information and technology B) Technical Gurus need to understand business. It is no longer a question of business and IT alignment, it is a question of merger and how the mix looks like!
Everyone understands this and understands that change is unavoidable. However, they are also apprehensive of repeating “past failures to transform”. Though enough transformation experience exists, it has also taught the Knights that it was never easy and this time the target itself is fuzzy.
Nevertheless, with tons of questions in their mind, everyone is queuing up for getting a makeover done! Key question for the image makeover gurus, what image makeover tools are at their disposal?
EA is the short answer. Nevertheless, not everyone is doing EA – how can someone explain the success stories that are out there? I am sure there are plenty of individual charismatic leaders who do these in Godly ways. However, the challenge starts when they start to convey their ideas to others. Our expressions are always, “She or he doesn’t get all the Challenges!” Alternatively, “The Devil is in the detail!” Neither do we get what they are trying to drive us to. The friction is huge and more than often companies are stuck here, missing their agility! Is there anything that can break the stalemate?
In this situation the toolset that will be of help are tools around Enterprise Architecture (EA). I can see jaws drop – “What?” “We’ll never be able to transform if we let the Enterprise Architecture drive the show!” Let us take away the people aspects. The tool tries to present a merged image of business and IT. This is the need of the hour. I agree with the challenges that the industry has been experiencing with EA, however, there is a lot of potential to this practice. On the other hand, EA needs to mature as well. This is the symbiotic opportunity! I would like to hear about options available other than EA to drive Digital Transformation.
The point that I am going to make here is simple. The challenge in front of Business Leaders and IT leaders is to drive things quickly and deliver continuous business value through incremental adoption of change. The opportunity for the transformation team is to use a set of tools around EA to let the leaders achieve their goals.
Below I have picked up three different focus areas where EA Practice and its tool set can be valuable for enabling the Digital Transformation.
- Unified View:
As we are all experiencing, at any given point in time there are multiple different strategies in execution in different areas of the organization. For example, what is commonly being observed these days, as some team is creating a 360 degree view of their partner, other team may be engaged in various phases of IT system reengineering. I need not get into the details of how they influence each other!
The above phenomenon is almost like solving the Rubik’s cube. When we try to align one side, arrangement on the other side is broken. The different sides of the Rubik’s cube are like different areas of the organization or initiatives. Enterprise Architecture explicitly handles these through Views. Case in point, during an eGovernance initiative to reorganize the IT Systems and Processes, the organization had to start a parallel initiative to modernize the Data Center. It did not end here, the Government was planning to enable unprecedented amount of self-service to the public. Different business departments were driving these; the IT teams were in silos. Result was a no brainer! Multiple starts and stop resulting in overshooting of budget and timeline!
Let us see the Digital Transformation situation. For most contemporary situations, an organization will have cyber security initiatives, digital initiatives, core system modernizations and a few innovation initiatives, all running in parallel.
Therefore, how the situation on the ground does look like? A typical meeting room situation! In a meeting room of a particular program the lead architect or a shared developer points out – “Oh, I know there is a security initiative going on in the data center and that may impact our time line”. The project manager makes a note of it to check this out. The subsequent situations would be familiar too. When the project manager communicates to her counterpart, no one really understands the language of each other (though they are speaking the same language, English, German or Hindi). They decide to keep each one of them separate so that each one can go live! What is the Result? The organization now has two different security gateways!
The above paragraph is an imaginary situation. However, we can all recollect many similar situations. When these different teams or their representatives get into conversations, they may not have all the structures in front of them to understand the possible impacts. It may sound obvious, however, the devils are in the details; and the details are in different jargon or lingo of each initiative.
The EA exactly tries to solve this problem and drive organization forward. There are many different tools, for example, Vision, Business Motivation Models, Business Capability Models, Business Services Models, Business Processes Models, IT Services Models, and Technology Models, which helps in sustained dialogue. The stakeholders within the enterprise will understand the impact of an initiative when they understand the behaviour of the target state; it is possible to explain the behaviour when there is a good structure to depict and define the behaviour.
There is a classical problem here, whether to focus on the forest and ignore the trees or to look at an individual tree and ignore the forest. In reality one need to do both! The tools mentioned above helps to orchestrate between these different perspectives. It provides a mechanism to do it in a relatively easy way. I have mentioned relatively because nothing is easy if one does not put in effort to build the competency around it.
Let us consider the area under Digital Transformation, Digital Experience, which is most widely in vocabulary today. It touches almost every part of the Enterprise. This initiative may directly affect some process simplification and improvement initiatives that may be underway to drive Operational Excellence. The organization typically gets into a chicken and egg scenario and this result into losing momentum over how to resolve the issues. Instead of trying to tie everything together, the EA tools will help to create building blocks. These building blocks are implemented independently. They are then moved to operations independently and magic, it works.
One way to let initiatives move independently and be confident of their effectiveness is through the usage of Architecture Contract.
It is important to understand what the expected outcome is. For example, in case of “Customer Digital Experience” the question would be, is it a pure Information Technology initiative or does it influence the Business Architecture and Business Model? This is a decisive moment to understand whether the changes are just to leverage some new technology capabilities like Mobile, Wearable, or Big Data. For all good reasons, the initiative may be just that. In that case recommendation would be to run them under any typical IT programs and please do not boil the ocean by putting them under the “Digital Transformation” initiatives. However, if one organization were really looking for changing the business playing field, then adopting EA practices would help immensely.
- Enterprise Architecture Tools:
For Digital Transformation, Business Architecture, Technology Architecture, Information Architecture Views and various tools related to them are pillars of the Enterprise Architecture. In fact understanding the Business Capabilities and being able to map the impact of the Digital Forces on the capabilities will be critical for final success of the outcome.
However, a few other areas of the Enterprise Architecture practice help in navigating through the entire effort of Enterprise Architecture, when one is trying to solve the problem of Digital Transformation. For now, I thought of venturing into these EA Tools; may return to applying Business Architecture, Information Architecture and Technology Architecture tools and practices to Digital Transformation in a latter article.
You might be wondering why I am ignoring the pillars. The pillars are something, which we have to go through anyways, however, to get them in place there are other vehicles required and I often find that the teams are struggling with them. For instance, Business Capabilities are going to be the pillars of Business Architecture for driving the Digital Transformation work; however, teams often struggle to find out what business motivations are going to affect the existing capabilities.
Now let us go through a few of the tools here.
To find out what is required to realize the Digital Strategy – If the organization has developed a Digital Strategy, then that is a big achievement. However, that is not the end of the journey. We have all been in situation where it takes months to decide on next steps and years to see the strategy taking bloom. One may like to see a few common reasons why Strategies fail.
A tool that can help untangle different aspects of what you are trying to achieve through the Digital strategy is the Business Motivation Model (BMM). The ArchiMate® supports to create a very effective abridged version of BMM. BMM can help in identifying the next set of activities by helping you to create a model that relates requirement to goals to stakeholders. This can quickly let one see through the next steps and what values it is trying to bring in to move towards the desired target.
EA Methodology – The idea is to move incrementally. Fail with an idea faster so that one can learn faster and apply the learning for success sooner! It is desirable to take incremental steps through modifications of existing Business Model using Business Architecture, keep the IT Architecture aligned during the iterations and the intermediate steps.
TOGAF®, an Open Group standard, ADM is a good place to start; other frameworks like, DODAF, FEA and methodologies around them can help to enrich the ADM. The important point to look for while one is iterating through the ADM or even evaluating it is to consider the kinds of customization required for the enterprise in scope. However, focus to mature the methodology incrementally.
Stakeholders Management: who is impacted and how – In a complex engagement like implementing Digital Transformation, stakeholder management can be challenging. Understanding the stakeholder’s goals and drivers can be daunting. Besides, understanding the real need and what does it mean, under the applicable constraints can be confusing. I have seen organizations stuck in tackling stakeholders and unable to come out of the labyrinth for months to years. There are tools within Archimate to lay down the stakeholders, connect them to their drivers, assessment, goals, and requirement. There are other tools, which independently or with ArchiMate extensions helps in doing the same.
It would be a good idea to lay down multiple levels of stakeholders, overall Digital Organization level, Program level and then various initiatives/project levels. Having an interaction model among these will help one to understand various Enterprise Architecture Views required in meeting the objectives of different stakeholders.
What does the enterprise wants to achieve during the incremental initiative: EA Vision – This is a critical and tricky part. Until now, the Digital Strategy work had mapped the Business Strategy to a clear Business Vision, mapped tactics to realize the Business Strategy. Sometime, each of the tactics may entail into EA Vision for the cycle (there may be multiple EA cycles for an EA vision too – pyramid of visions is the theme). I have seen organizations running with big transformation exercises and not all stakeholders clearly understand all different aspects; there is a lack of EA vision or there is not a well-developed structure other than Words of Mouth and slides. The recommendation is to lay down the EA vision as a subset of the organizational vision; however, the alignment needs to be clear by following a well-defined approach.
Make the EA vision clear, however, need not be something too insurmountable to achieve over a given period. EA Vision is not a blue-sky dream that may take one to the top of the mountain! It is a pragmatic value proposition that the organization is trying to achieve.
How do the milestones on the road look like: Roadmap – The recommendation will be to execute the road mapping activities under the EA initiative of the Digital Transformation. This will allow creating the right alignment from Business Perspective and will help to bind all the stakeholders to the common cause. There is significant number of examples where large programs have surprised the stakeholders with the outcome in a negative way. It would be a more difficult journey for Digital Transformation without the right level of effort or EA effort.
Can we do it better next time: Housekeeping – A significant part of the EA assets and activities that exist today in Literature and are more popular, are around the Housekeeping activities. One of them is EA repository. This is extremely important; however, practitioners should recognize this and appropriately position the activities around the Repository. I would not think positioning a significant amount of housekeeping activities while one is trying to build the house would do justice to the time and effort spent.
Nevertheless, this would be a good time where you can start with a clean EA repository and start populating with the artifacts being produced. Then, in a parallel thread or latter thread start tying things together. The benefit of this approach is to be able to avoid diluting the focus area of using EA as a problem-solving tool and keep the accelerated momentum of the transformation on.
The EA Repository can be helpful for Managing Business Assets, especially those focused around Information Technology (we are discussing technology enabled business transformation). Business Capability creation, impacts on business capabilities, visibility to key stakeholders will receive a boost, through traceability and reusability.
It may appear that the transformation team will adopt the tools and techniques, mentioned above, even without the EA umbrella. The point is – instead of doing these activities in silos of Business or IT at different points in time, the EA can bring all these together. It will help the organization make efficient progress. A few ways these can help, create “Views” for different “concern or focus” areas; thus allowing different groups to visualize their respective stake and impact, as different initiatives run in parallel. All these initiatives are large which is transforming the DNA of the organization; it would be important to understand the impact and be able to manoeuvre the steering.
- Enterprise Agility:
Why Enterprise “Agility” is important in the context of Digital Transformation? Is it just because Agility is the fad these days? I believe it is the environment. It has become very dynamic, for all reasons mentioned above. On the other hand, agility is being driven by the fact that it is possible to be agile with both information and tools available. We have moved quite far since the days of Mr. Ford’s era of “Any customer can have a car painted any colour that he wants as long as it is black.” In a very dynamic environment, ability to iterate is important. The points shared so far will help to achieve agility and make incremental progress. The main pillars to achieve incremental transformation are:
- Ability to have a single coherent view, though multiple threads are being run independently
- Conceptualize and initiate multiple iterations of Enterprise Architecture, driven by a vision (or pyramid of visions)
- A strong enterprise architecture repository so that every iterations and every independent thread is contributing to the common goal; this doesn’t mean that it is the most important thing (one of the important element)
As one is moving through the transformation, it is imperative to have a clear vision of what one wants to achieve. Then, it is required to break it down (architectural decomposition) into smaller achievable chunks and then iteratively implement the chunks. Approaches other than EA would fail to maintain the stability of the Enterprise System, after each of the viable iteration. This means that at every point in time during the transformation business should function in a seamless way with transformed and existing business and IT functions; there should be seamless flow of information across all business functions. Moreover, business benefits should be clear and measurable during each of the iteration.
Summing it up, if the technical initiatives with Big Data, Machine Learning or Artificial Intelligence or Cloud or Mobility or Social does not affect the Business (apart from adoption of new Information Services or Technology Services) then EA may not be required. However, if one wants to change business functions by leveraging digital tools or would have to change it because of Digital Forces, then EA would be the best vehicle to board to take up the journey of transformation!
The risk of not taking an architecture-centric approach is that it is too complex to handle the different variables that can influence the net outcome of Digital Transformation. The immediate success can soon wane out into an unmanageable mess of different organizations, departments, roles, systems and information. There are too many variables; which a few individuals can relate them, communicate them, and track them as they changes.
The promise of Digital in the business space is the capability to use information, move incrementally, and continuously optimize. Transformation of Enterprises (large or small) incrementally is not an easy affair, as we have realized and experienced it! Thus, without using a tool set that helps to ease out the transformation, the cost of technology and its rapid evolution will be difficult to manage.
During the whole journey of transformation, EA can produce tangible outputs. The organization can refer back to these outputs at any point in time to understand the rational for failure or success. Organizations, not matured in implementing strategies often, grapple with the outcome if it is not a great success. Their success seems to depend too much on the binary nature of success or failure, though business is continuous. There is plenty of opportunity to avoid the binary result and follow a path of incremental change.
Sunil Kr. Singh is a Senior Architecture and Digital Consultant at TATA Consultancy Services. He has more than 16 years of experience with Information Technology driven transformation and developing IT systems for business solutions. He has a wide range of hands on experience; established Enterprise Architecture Practices, streamlined IT and business processes, developed, designed and architected business systems.
The opinions expressed in this article/presentation are those of the author; no organization that the author is affiliated or works for is related to these views.
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