Category Archives: digital technologies

Customer Experience and Transformation in Financial Services – Part 2

By Stuart Macgregor, CEO, Real IRM and The Open Group South Africa

This is Part 2 of a two part series.  Part 1 can be found here.

The financial services industry is undergoing massive change. For financial services companies to achieve transformation and digitisation, addressing the architectural foundations is the starting point.

Chapter 4 – Customer Engagement Model (Part 2)

So, this is not simply about technological advancement. The harsh reality is that financial companies have fallen out of touch with customer needs. These disruptors have arrived to serve an unmet need.

In the era of the modern-day customer, more demanding and empowered than that of decades ago, should banks still be rolling out vanilla services like cheque accounts, credit cards, and rewards programmes?

Should banks still be classifying customers into vast segments based primarily on monthly income? Should they still be quantifying affordability and risk in the same way? Should they still seek to derive their non-interest income from monthly fees and transaction fees?

The entrance of new disruptors proves that most of these practices, embedded into the anatomy of a bank, often prevent the bank from meeting the modern customers’ expectations.

For another perspective on the needs and expectations of digital customers, we can look at The Open Group ‘ROADS principles’. These can be summarised as follows:

  • Real Time: The customer can commence or progress a journey at any time, with responses and updates tailored in real-time to meet the customer’s evolving needs.
  • On Demand:The service provider has the flexibility to adapt and adjust the services delivered to the customer on demand.
  • All-Online: The customer is able to accomplish all activities and transactions associated with the journey online. An offline channel need only be used if absolutely required to handle a physical product or service.
  • Do-It-Yourself: The customer is provided with the capability, and has the choice, to complete the activities and transactions associated with the journey alone. Interaction with a service provider representative is not required.
  • Social: The journey is tightly integrated with digital social media, so at any stage of the journey the customer is able to access social media for advice, recommendations and feedback.

Financial companies’ general inability to respond  to these demands can often be linked back to fundamental architectures and tools.

These are the outdated architectures that are unable to conduct impact assessments, not able to fully leverage resources and technical capabilities, and not able to find meaning in the masses of customer data and documentation stored inside their four walls.

We can define this as the concept of Big Data: teasing out the learnings from the masses of structured and unstructured customer data streamed from various sources and systems – with the goal of creating customer-specific engagement tactics.

Chapter 5 – Customer Engagement Model (Part 3)

To survive the onslaught from advancing attackers to the financial services industry, we advocate ‘outside-in thinking’ – working backwards from the customer frontline (designing the experiences that customers will love) – and then plotting the internal processes that support the customer experience vision.

This systems-thinking approach uncovers the optimal roles and relationships within the organisation, the metrics on which to evaluate success, and maps the reinforcing loops that will accelerate change and enhance value delivery. Keeping EA at the centre of the reengineering process ensures a sharp focus on the information that’s required to make these new processes successful.

Organisations can now understand where underlying data is housed, how it can be best integrated between systems and across functions, and how information should be delivered to  those team members that are tasked with supporting customers. This is brought to bear in business capability maps, causal loop diagrams, process models, value-chain diagramming, and the like.

The leading financial services firms of tomorrow will use these these insights, to invest in architectures and systems that creates superior customer experiences. Ultimately, this is the only approach that can help financial companies stay relevant in the face of new and disruptive threats.

It goes without saying that customer experience is felt at the various digital and traditional touchpoints with which customers engage. But ‘touchpoints’ in the truest sense of the word incorporate any engagement that the consumer has with the financial services brand, products, services, or staff.

A number of models seek to define these customer touchpoints. The Open Group’s Customer Experience Reference Model, for example, notes that any organisation needs to look beyond itself, and take a wider view of the broader ecosystem when understanding the customer journey.

To measure progress, the Customer Experience Reference Model suggests defining a set of key performance indicators. Depending on the organisation and its strategy, these could take a multitude of forms – including Net Promoter Scores, click-through rates, churn rates, average revenue per customer, cart abandonment rates, valency indexes, conversion rates, and much more.

Scenario: customer journey in the Insurance sector

Insurance policies traditionally involve reams of paper, reliance on customers to enter information accurately, and high back-office administration costs. They are typically updated on an annual basis, and do not reflect an accurate assessment of risk.

As a result of the inefficiencies in the system, insurance tends to be a very expensive item in household budgets.

But in the next few years, insurers will start consolidating feeds from connected devices within cars, geolocation data from smartphones, smart keys, as well as wearables (like smartwatches) and even ‘digestibles’.

Known in technology circles as the Internet of Things, this example shows how an insurer can far more accurately assess and mitigate risk – by tracking everything from driving behaviour, to cardiovascular activity, smoking habits, or whether or not a person has locked their house.

By developing customer insights at this level of detailed granularity, insurers are able to package accurate, personalised insurance premiums (rather than segmenting customers into broad risk groups, as they do today). Of course, customers who want to benefit from preferential, personalised rates, will sacrifice some level of personal privacy.

This leads us to the ethics of tracking intimate customer details for use in designing such personalised and fluid insurance policies – which dynamically adjust based on customer behaviour (for example, a trip overseas to a country with high crime statistics many cause a temporary increase in one’s premium).

Chapter 6 – Development Agenda

When considering the financial services enterprise of the future, it’s not enough to simply aim for excellent customer service. Unless this generates higher levels of profitability, better customer retention or improved customer acquisition, any customer service effort is going to be in vain.

These three questions above – relating to a financial services company’s business goals – should be guiding forces for the architecture team, as they create the optimal design for the future.

In essence, the firm’s architecture needs to enable the flow of information and investment of resources to the markets, segments, demographics and regions that offer the most profitable opportunities at any given time.

As financial companies come under increasing threat from new competitors, narrowing the focus to certain services, or markets, is a way of maintaining profitable leadership positions in certain areas – while exiting over-traded, hyper-competitive or unprofitable markets.

However, this is no longer a static, consistent landscape. To succeed, financial services firms should be “striving for continuous improvement and renewal”, as a recent Backbase/Efma Report describes.

From an EA perspective, this means one’s technology and application architecture must support the rapid and continuous delivery of new services and features to customers.

“The innovation planning cycle is far too slow for today’s high-speed digital banking environment,” notes the report, adding: “Today’s big digital players in other industries test and learn as part of an iterative process. They’re agile and experiment in real-time with their own customer base. The decision-making process is much faster and the rollout is fast … very fast!”

Across the breadth of architecture realms – from business, information, data, applications and technology – one’s EA frameworks should be designed with rapid prototyping and delivery in mind. By doing so, financial companies are able to capture new windows of profitable opportunity, react faster to changing customer demands, and produce new services in a cost-effective manner.

This could come in the form of instant home loan approvals, new services for wearable technology, or a concerted focus on a niche insurance segment. The specific opportunities depend on the company in question and where they are at a given point in time.

In short, having the architecture to unleash digital transformation, opens up new value streams for the bank and increasing satisfaction and loyalty for the customer.

Chapter 7 – Capabilities and Insights

The final McKinsey “timeless tests” looks at how to anchor customer centricity within the organisation, and align governance approaches and staff incentives to fit with the new customer service ethos.

From an Enterprise Architecture perspective, this is reflected in the maturity from ‘EA execution’ to ‘EA leadership’. The concluding article in our series on change management in EA highlights the hallmarks of a mature-state EA practice – the state of EA leadership.

EA helps to create the structures that will thrust customer-centricity to the forefront of all business decision-making. Specifically, it can support the organisation’s customer experience vision in the areas of:

  • Mandate and governance
  • Strategy
  • Performance management
  • Organisational transformation

But the reality is that so few firms ultimately realise the value of EA in their customer experience and digital transformation ambitions. Another of our series – on what catastrophes often cause the EA practice to implode – addresses the common reasons for this.

Because so few organisations fully leverage the power of EA, those financial services firms that do get it right, have a tremendous competitive advantage over their peers – who continue struggle away in disjointed silos, bondaged in unnecessary red tape.

Addressing these final two McKinsey tests requires a relentless focus on customer insights; and then ensuring the voice of the customer be heard when structuring, integrating or re-designing all business processes.

Without EA at the core of these endeavours, the organisation’s leadership cannot take full advantage of these rich sources of insights. More specifically, they wouldn’t have the architectural work products to improve resource allocation, reduce decision-making biases, assess strategic alternatives, manage change and complexity, or chart the innovation journey.

In this way, EA provides deeper insights into the unintended consequences of certain potential decisions – like company restructuring or deciding to enter a new market.

To conclude, the McKinsey tests represent the important questions that financial services organisations need to ask themselves as they seek to put the customer at the heart of their digital transformation initiatives.

And, as we’ve teased out in this series, having the fundamental architecture to support these goals, and prepare for an uncertain and volatile future, is an absolute prerequisite for success.

by-stuart-macgregor-ceo-real-irmStuart Macgregor is the CEO, Real IRM Solutions and  The Open Group South Africa. Through his personal achievements, he has gained the reputation of an Enterprise Architecture and IT Governance specialist, both in South Africa and internationally.

Macgregor participated in the development of the Microsoft Enterprise Computing Roadmap in Seattle. He was then invited by John Zachman to Scottsdale, Arizona to present a paper on using the Zachman framework to implement ERP systems. In addition, Macgregor was selected as a member of both the SAP AG Global Customer Council for Knowledge Management, and of the panel that developed COBIT 3rd Edition Management Guidelines. He has also assisted a global Life Sciences manufacturer to define their IT Governance framework, a major financial institution to define their global, regional and local IT organizational designs and strategy. He was also selected as a core member of the team that developed the South African Breweries (SABMiller) plc global IT strategy.

Stuart, as the lead researcher, assisted the IT Governance Institute map CobiT 4.0 to TOGAF®, an Open Group standard. This mapping document was published by ISACA and The Open Group. He participated in the COBIT 5 development workshop held in London in 2010.

 

Leave a comment

Filed under digital business, digital strategy, digital technologies, Digital Transformation, Enterprise Transformation, Standards, The Open Group, Uncategorized

Customer Experience and Transformation In Financial Services – Part 1

By Stuart Macgregor, CEO, Real IRM and The Open Group South Africa

This is Part 1 in a two part series.

Chapter 1 – Introduction

The financial services industry is undergoing massive change.

Around the world, organisations offering banking, lending, insurance, trading, and payments services are realising that customer-centric, design-led approaches can revolutionise the way that financial services are delivered to a new generation of consumers.

But to achieve practical, sustainable transformation, financial services firms must turn their attention to their business architecture. Combined with sage business strategies, having the right architecture unleashes the dynamism and agility to succeed in the new digital era.

In other words, for financial services companies to achieve transformation and digitisation, addressing the architectural foundations is the starting point.

In this series, we’ll apply an Enterprise Architecture lens to McKinsey’s ‘10 timeless tests’ from its ‘Banking on customer centricity’ white paper’ – a litmus test for an organisation’s customer experience qualities.

These ‘tests’ are essentially questions that financial services companies need to ask themselves, areas to address, and activities they need to perform as they steer their way towards transformation and customer-centricity. They are housed within four distinct (but inter-related) groupings:

  • Vision and positioning: shaping the strategic direction, so that customers want to use your products and services, and employees feel highly engaged within your organisation.
  • Customer engagement model: defining the solutions and developing the go-to-market approach that will deliver exceptional customer value.
  • Development agenda: Ensuring your short-term growth and long-term success, with customer-oriented activities rooted in the pursuit of economic goals (and not just customer satisfaction).
  • Organisation, capabilities and insights: Anchoring customer-centricity within your organisation by creating optimal structures, incentives, capabilities and governance frameworks.

In this series, we’ll explore how the right business architecture is essential for your organisation to progress along any of these four dimensions.

Business architecture becomes the common vocabulary to define your organisation – across business units, silos, or geographies. It allows leaders to understand the complex, organic structures of the organisation. It forms the basis for strategy implementation and the context for programmes and projects.

More broadly, we’ll look at how Enterprise Architecture helps to free financial services firms from the tangled mess of legacy infrastructure, entwined over decades and decades, which hold them back from delivering exceptional customer experiences.

We’ll explore the ways in which Business Architecture supports rapid innovation and helps financial services companies to fend off the challenges from leaner start-ups in the FinTech space, from local telcos and retailers, and borderless digital giants like Google, Apple and Facebook.

And we’ll show how business architecture brings a new richness of customer insights – to develop closer customer engagement and tailor-made solutions.

Chapter 2 – Visioning and Positioning

Across nearly all industries, a brand’s value is increasingly dependent on the delivery of exceptional customer experiences.

In fact, services-oriented industries are those with the most burning need to create superb experiences that surround the direct (transactional) engagement.

Whether they’re in wealth management, business asset financing, general retail banking, insurance, or anything in-between, financial services firms will only remain relevant by continually delighting their customers. For this reason, embedding experience design into every facet of their services has become the mantra for any forward-thinking financial services organisation.

But – with often millions of customers to look after – so many financial organisations are struggling to translate these lofty ideals into tangible reality.

As noted by this Open Group paper titled Roads to a digital customer experience new technologies “are rendering obsolete the traditional frameworks and models that companies have been using to capture and design customer journeys and customer experiences”.

The answer? Start with the architectural building blocks

It’s only by developing the right architectures, processes, and systems that the organisation’s customer experience vision can find solid footing. By taking an Enterprise Architecture (EA) approach to experience design, the vision becomes a defined set of behaviours, incentives, and operational processes.

Ultimately, this spawns a new culture of customer-centricity that delivers meaningful enhancements to customers’ experiences. Empowered by new technologies and unshackled from outdated ways-of-working, staff are given the tools to execute on the customer experience vision.

EA enables the organisation to build a clear roadmap to transition from its current state, to its desired target state – by looking through the lenses of Business, Information, Data, Applications, and Technology (BIDAT).

By developing the roadmap in the context of these five domains, the organisation can pinpoint exactly how EA can facilitate the organisation’s goals of delivering exceptional customer experiences.

It unearths the complex inter-relationships within the organisation that impact customer experience, supports those that are responsible for designing and implementing the change.

For instance, EA helps firms understand where their customers’ data is housed, helps to eliminate duplications of this content, or identify overlapping systems that are trying to achieve the same objectives.

Ensure the brand and vision are guiding behaviour

As the financial services organisation moves from a product focus, to a customer experience focus, it becomes imperative to look at the internal company culture –  and eliminate the ways-of-working, cultures and habits that are no longer competitive.

This requires all areas of the organisation to come together and agree on the vision, and the definition of the target state that everyone will work towards.

By taking a transformative, almost ‘entrepreneurial’ approach to one’s operations, it becomes possible to start optimising and digitising processes, and decluttering wherever inefficiencies exist.

At a foundational level, EA enables the organisation to clearly delineate and distinguish between one’s functions, processes and capabilities.

EA enables the organisation’s leadership to link roles to processes, generate useful process guides, and define the training needs analysis for those various roles. Not only does this give individuals clear career paths; it also reduces the costs of producing training material (now that roles and processes are clarified and standardised).

Chapter 3 – Customer Engagement Model (Part 1)

In its paper ‘Disrupting beliefs: a new approach to business-model innovation’ McKinsey’s starting point is that “every industry is built around long-standing, often implicit, beliefs about how to make money”.

In retail banking for example, these beliefs include industry concepts like ‘share of wallet’, ‘cross-sell opportunities’, ‘acquisition costs’, and ‘lifecycle value’, among many others.

“[These beliefs] are often considered inviolable, “ continues the McKinsey paper, “until someone comes along to violate them. Almost always, it’s an attacker from outside the industry.”

Nowhere is this more apt than in financial services. Attackers from other industries are certainly threatening to invade the hallowed turf once reserved exclusively for banks, insurers, investment and trading providers, and others.

In retail banking, for example, these disruptive forces include the likes of:

  • Mobile wallets (such as M-Pesa)
  • New payments solutions (like Apple Pay or Square)
  • Cryptocurrencies (such a bitcoin)
  • Social lending (eg The Lending Club or Prosper)
  • Personal financial management tools (like Moven)
  • Crowdfunding (eg KickStarter)
  • Non-banks offering financial services (like Virgin or Discovery)

Other areas of financial services are certainly not immune to change as well. In the insurance realm, for example, disruptions like:

  • Usage-based vehicle insurance using GPS and accelerometers in smartphones or sensors
  • Online insurance aggregators and marketplaces
  • Other industries encroaching (eg insurance bundled offers from cellular providers or retailers)
  • Peer-to-peer insurance networks
  • Autonomous, self-driving vehicles in the not-too-distant future.

For incumbents, this presents a worrying reality: newer and more agile attackers won’t have the internal cost structural issues, the legacy infrastructure and higher head-counts – meaning these cost-efficiencies can be passed down to the consumer.

Part 2 to be published on The Open Group blog on November 29, 2016.

by-stuart-macgregor-ceo-real-irmStuart Macgregor is the CEO, Real IRM Solutions and  The Open Group South Africa. Through his personal achievements, he has gained the reputation of an Enterprise Architecture and IT Governance specialist, both in South Africa and internationally.

Macgregor participated in the development of the Microsoft Enterprise Computing Roadmap in Seattle. He was then invited by John Zachman to Scottsdale, Arizona to present a paper on using the Zachman framework to implement ERP systems. In addition, Macgregor was selected as a member of both the SAP AG Global Customer Council for Knowledge Management, and of the panel that developed COBIT 3rd Edition Management Guidelines. He has also assisted a global Life Sciences manufacturer to define their IT Governance framework, a major financial institution to define their global, regional and local IT organizational designs and strategy. He was also selected as a core member of the team that developed the South African Breweries (SABMiller) plc global IT strategy.

Stuart, as the lead researcher, assisted the IT Governance Institute map CobiT 4.0 to TOGAF®, an Open Group standard. This mapping document was published by ISACA and The Open Group. He participated in the COBIT 5 development workshop held in London in 2010.

 

2 Comments

Filed under digital strategy, digital technologies, Digital Transformation, EA, Enterprise Architecture, Standards, The Open Group, Uncategorized

The Open Group Austin 2016 Event Highlights

By Loren K. Baynes, Director, Global Marketing Communications, The Open Group

During the week of July 18th, The Open Group hosted over 200  attendees from 12 countries at the Four Seasons hotel on the beautiful banks of Lady Bird Lake in Austin, Texas, USA.

On Monday, July 18, Steve Nunn, President and CEO of The Open Group, welcomed the audience and set the stage for all the great upcoming speakers and content.

Steve’s remarks included the recent release of the Open Business Architecture (O-BA) Preliminary Standard Part I to Support Business Transformation.  This is the first in a series of installments that will help Business Architects get to grips with transformation initiatives and manage the demands of key stakeholders within the organization. Steve also referenced William Ulrich, President, Business Architecture Guild, who consulted on the development of the standard.

The plenary began with Jeff Scott, President, Business Innovation Partners, with his presentation “The Future of Business Architecture, Challenges and Opportunities”.  Jeff stated some interesting facts, which included noting that Architects are among the best and brightest members of our organizations.  He also stated that Business Architects need support from a wide group of senior managers, not just the CEO. The ultimate goal of Business Architecture is not to model the organization but to unlock organizational capacity and move forward.

By Loren K. Baynes

Jeff Scott

The Business Architecture (BA) theme continued with Aaron Rorstrom, Principal Enterprise Architect, Capgemini.  Aaron further elaborated on The Open Business Architecture (O-BA) Standard.  The O-BA Standard provides guidance to companies for establishing BA practice and addresses three transformation challenges: consistent communication, alignment and governance, systemic nature.

The sessions were followed by Q&A moderated by Steve Nunn.

Up next was “ArchiMate® 3.0 – A New Standard for Architecture” with Marc Lankhorst, Managing Consultant and Service Line Manager, Enterprise Architect, BiZZdesign and Iver Band, Enterprise Architect, Cambia Health Solutions.

Marc and Iver discussed practical experiences and a Healthcare case study, which included a discussion on personal health and wellness websites.

ArchiMate®, an Open Group standard, provides a language with concepts to describe architectures; a framework to organize these concepts; a graphical notation for these concepts; a vision on visualizations for different stakeholders. ArchiMate 3.0 has recently been released due to: the increasing demand for relating Enterprise Architecture (EA) to business strategy; technology innovations that mix IT and physical world; usage in new domains (i.e. manufacturing, healthcare, retail); improved consistency and comprehensibility; improved alignment between Open Group standards, notably TOGAF®.

The final session of Monday’s plenary featured a panel on “Architecture Standards Development” with Marc Lankhorst, Iver Band, Mike Lambert (Fellow of The Open Group) and Harry Hendrickx (Business Architect, Hewlett Packard Enterprise).  Moderated by Chris Forde, GM, Asia Pacific and VP, Enterprise Architecture, The Open Group, the panel represented a diverse group of the population contributing to the development of open standards.

In the afternoon, sessions were divided into tracks – Security, ArchiMate, Open Business Architecture.

Don Bartusiak, Chief Engineer, Process Control, ExxonMobil Research & Engineering presented “Security in Industrial Controls – Bringing Open Standards to Process Control Systems”.  Don went into detail on the Breakthrough R&D project which is designed to make step-change improvement to reduce cost to replace and to increase value generation via control system.  ExxonMobil is working with The Open Group and others to start-up a consortium of end user companies, system integrators, suppliers, and standards organizations for sustained success of the architecture.

Also featured was “Applying Open FAIR in Industrial Control System Risk Scenarios” by Jim Hietala, VP, Business Development and Security, The Open Group.  The focus of ICS systems is reliability and safety.  Jim also shared some scenarios of recent real life cyberattacks.

The evening concluded with guests enjoying a lively networking reception at the Four Seasons.

Day two on Tuesday, July 19 kicked off the Open Source/Open Standards day with a discussion between Steve Nunn and Andras Szakal, VP & CTO, IBM U.S. Federal. Steve and Andras shared their views on Executable Standards: convergence of creation of open source and innovation standards; the difference between Executable Standards and traditional standards (i.e. paper standards); emergence of open source; ensuring interoperability and standardization becomes more effective of time. They further explored open technology as driving the software defined enterprise with SOA, social, Open Cloud architecture, e-Business, mobile, big data & analytics, and dynamic cloud.

A panel session continued the conversation on Open Standards and Open Source.  The panel was moderated by Dave Lounsbury, CTO and VP, Services for The Open Group.  Panelists were Phil Beauvoir, Archi Product Manager, Consultant; John Stough, Senior Software Architect, JHNA, Inc.; Karl Schopmeyer, Independent Consultant and representing Executable Standards activity in The Open Group.  Topics included describing Archi, Future Airborne Capability Environment (FACE™, a consortium of The Open Group) and OpenPegasus™, an open-source implementation of the DMTF, CIM and WBEM standards.

The Open Group solves business problems with the development and use of open standards.  Interoperability is key.  Generally, no big barriers exist, but there are some limitations and those must be realized and understood.

Steve presented Karl with a plaque in recognition of his outstanding leadership for over 20 years of The Open Group Enterprise Management Forum and OpenPegasus Project.

Rick Solis, IT Business Architect, ExxonMobil Global Services Co. presented “Driving IT Strategic Planning at IT4IT™ with ExxonMobil”.  Business is looking for IT to be more efficient and add value. ExxonMobil has been successfully leveraging IT4IT concepts and value chain. The IT4IT™ vision is a vendor-neutral Reference Architecture for managing the business of IT.  Rich emphasized people need to think about the value streams in the organization that add up to the business value.  Furthermore, it is key to think seamlessly across the organization.

Joanne Woytek, Program Manager for the NASA SEWP Program, NASA spoke about “Enabling Trust in the Supply Chain”.  SEWP (Solutions for Enterprise-Wide Procurement) is the second biggest IT contract in the US government.  Joanne gave a brief history of their use of standards, experience with identifying risks and goal to improve acquisition process for government and industry.

Andras Szakal again took the stage to discuss mitigating maliciously tainted and counterfeit products with standards and accreditation programs.  The Open Trusted Technology Provider™ Standard (O-TTPS) is an open standard to enhance the security of the global supply chain and the integrity of Commercial Off The Shelf (COTS) Information and Communication Technology (ICT). It has been approved as an ISO/IEC international standard.

Afternoon tracks consisted of Healthcare, IT4IT™, Open Platform 3.0™ and Professional Development.  Speakers came from organizations such as IBM, Salesforce, Huawei, HPE and Conexiam.

The evening culminated with an authentic Texas BBQ and live band at Laguna Gloria, a historic lakefront landmark with strong ties to Texas culture.

By Loren K. Baynes

The Open Group Austin 2016 at Laguna Gloria

Wednesday, July 20 was another very full day.  Tracks featured Academia Partnering, Enterprise Architecture, Open Platform 3.0 (Internet of Things, Cloud, Big Data, Smart Cities), ArchiMate®.  Other companies represented include San Jose State University, Quest Diagnostics, Boeing, Nationwide and Asurion.

The presentations are freely available only to members of The Open Group and event attendees.  For the full agenda, please click here.

In parallel with the Wednesday tracks, The Open Group hosted the third TOGAF® User Group Meeting.  The meeting is a lively, interactive, engaging discussion about TOGAF, an Open Group standard.  Steve Nunn welcomed the group and announced there are almost 58,000 people certified in TOGAF.  It is a very large community with global demand and interest.  The key motivation for offering the meeting is to hear from people who aren’t necessarily ‘living and breathing’ TOGAF. The goal is to share what has worked, hasn’t worked and meet other folks who have learned a lot from TOGAF.

Terry Blevins, Fellow of The Open Group, was the emcee.  The format was an “Oxford Style” debate with Paul Homan, Enterprise Architect, IBM and Chris Armstrong, President, Armstrong Processing Group (APG).  The Proposition Declaration: Business Architecture and Business Architects should be within the business side of an organization. Chris took the ‘pro’ position and Paul was ‘con’.

Chris believes there is no misalignment with Business and IT; business got exactly what they wanted.  Paul queried where do the Business Architectures live within the organization? BA is a business-wide asset.  There is a need to do all that in one place.

Following the debate, there was an open floor with audience questions and challenges. Questions and answers covered strategy in Architecture and role of the Architect.

The meeting also featured an ‘Ask the Experts’ panel with Chris Forde; Jason Uppal, Chief Architect, QRS; Bill Estrem, TOGAF Trainer, Metaplexity Associates; Len Fehskens, Chief Editor, Journal of Enterprise Architecture, along with Chris Armstrong and Paul.

Organizations in attendance included BMC Software, City of Austin, Texas Dept. of Transportation, General Motors, Texas Mutual Insurance, HPE, IBM.

A more detailed blog of the TOGAF User Group meeting will be forthcoming.

A special ‘thank you’ to all of our sponsors and exhibitors:  avolution, BiZZdesign, Good e-Learning, Hewlett Packard Enterprise, AEA, Orbus Software, Van Haren Publishing

@the opengroup #ogAUS

Hope to see you at The Open Group Paris 2016! #ogPARIS

By Loren K. BaynesLoren K. Baynes, Director, Global Marketing Communications, joined The Open Group in 2013 and spearheads corporate marketing initiatives, primarily the website, blog, media relations and social media. Loren has over 20 years experience in brand marketing and public relations and, prior to The Open Group, was with The Walt Disney Company for over 10 years. Loren holds a Bachelor of Business Administration from Texas A&M University. She is based in the US.

 

 

Comments Off on The Open Group Austin 2016 Event Highlights

Filed under Accreditations, ArchiMate, ArchiMate®, Association of Enterprise Architects, Business Architecture, Business Transformation, Certifications, Cloud, COTS, Cybersecurity, digital technologies, Digital Transformation, EA, enterprise architecture, Internet of Things, Interoperability, Jeff Kyle, O-TTPS, Open FAIR, Open Platform 3.0, Professional Development, Security, Standards, Steve Nunn, The Open Group Austin 2016, TOGAF®, TOGAF®

Digital Disruption for Enterprise Architecture

By Myles F. Suer, Chief Platform Evangelist, Informatica

Recently, I got to sit at the font of wisdom which is Jeanne Ross, and get her view into digital disruption and the role of Enterprise Architecture in enabling firms to respond. I am going to summarize her main points here which I hope will be as useful to you as it was for me.

Jeanne, Research Director and Principal Research Scientist, MIT Sloan School of Management, started her talk by saying that she has a passion for Enterprise Architecture. And she said for me and for you, as the digital economy has arrived, I have felt this was our moment. We were going to have integrated channels, seamless end-to-end transactions, real understanding of customer data, and real tight security. “And this of course means architecture”. And she in jest says that she was hoping that the whole world had come to this very same conclusion. Clearly, she said, it hasn’t happened yet but Jeanne importantly believes with the march to becoming digital, it will happen soon.

Success in the digital economy is not guaranteed

Jeanne says one thing is becoming increasingly clear–enterprises will not be successful if they are not architected to execute their firm’s business strategies. At the very same time, she has found with the companies (existing successful enterprises) that she talks to believe their success is not guaranteed in the digital economy. Given this, Jeanne decided to research what incumbent enterprises actually look like that have taken concrete steps to respond to the digital economy’s mandates. The 27 companies :

  • The challenges they are facing
  • The disruptions that they had identified
  • The strategies they were moving forward with
  • The changes that they had already put in place

She found that digital strategies were inspired by the capabilities of powerful readily available technologies including things like social, mobile, analytics, cloud, and internet of things. Digital strategies were forcing companies around a rallying point but surprisingly there was not much distinction behind the rallying point more than, “I want to be the Amazon or Uber of my industry”. But Jeanne claims this is okay because competitive advantage is not going to be about strategy but instead about execution. And being the best at execution is going to eventually take you in a different direction than other market participants.

Competitive advantage today requires executing on integrated capabilities

At this point, Jeanne stressed that there is no competitive advantage in a single capability. This is why Uber has so much competition. But for established companies, advantage will come from an integrated established set of capabilities. “Competitive advantage will come from taking capabilities that others may or may not have and integrating them in ways that make something extraordinarily powerful”. This in Jeanne’s mind is how established companies can best startups because as we know, startups “can only do one thing well”. Integrating business capabilities provides a whole value proposition that is hard for others to copy.

Jeanne says that there is one more thing that existing companies need to get good at. They need to become responsive. Startups are constantly monitoring and learning what to do next. Think about Christopher Columbus and what an established company and a startup would do. The startup would pivot and learn how to do something different. Established companies need to learn how to do this too.

Now as we move into the digital economy, there are two strategies possible. And established companies must choose one to lead with. They are customer engagement or digitized solutions. Customer engagement means that every day, you wake up trying to figure out what you can do next to make customers love you. The great example that Jeanne gave is Nordstrom. She said that Nordstrom a few years ago was clearly being disrupted. And Nordstrom responded by creating a personalized shopping experience. This was enabled by combining capabilities around a transparent shopping experience and transparent supply chain. This of course is layered on top with predictive analytics. This allows them to predict what a customer needs and to know how to get it to them regardless of channel.

The second strategy is digitized solutions. Here you figure out what customers need that they don’t know they need. GE is doing this today as an industrial company. They are moving the value from the physical asset to asset performance management.

Her parting remarks

If your company has not embraced either of these then it doesn’t get the digital economy. You need to pick one to execute now. Enterprise Architects have a major role to play here. In the past, architecture was largely a divide-and-conquer approach. Today it is about integration. Today architecture is about empowering and partnering. We need to architect for agility. This means flatter organizations. Today, we need to be able to use data for decisions. The jobs of architects are incredibly important. You see the change that is necessary and you are in a unique position to help get your company there.

By Myles F. Suer, Chief Platform Evangelist, Informatica

Myles Suer acts as a Chief Platform Evangelist at Informatica Corporation. In this role, Mr. Suer is focused upon solutions for key audiences including CIOs and Chief Enterprise Architects and the application of Informatica’s Platform to verticals like manufacturing. Much of Mr. Suer’s experience is as a BI practitioner. At HP and Peregrine, Mr. Suer led the product management team applying analytics and big data technology to the company’s IT management.

Mr. Suer has also been a thought leader for numerous industry standards including ITIL and COBIT. As part of this, Mr. Suer was a reviewer for the ITIL Version 3 standard. For COBIT, Mr. Suer has written extensive. Most recently, he published in COBIT Focus, “Using COBIT 5 to Deliver Information and Data Governance”. Prior to HP, Mr. Suer led new product initiatives at start-ups and large companies. This included doing a restart of a Complex Event Processing Company. Mr. Suer has also been a software industry analyst. Mr. Suer holds a Master of Science degree from UC Irvine and a 2nd Masters in Business Administration in Strategic Planning from the University of Southern California.

Twitter: @MylesSuer

Further Reading

Jeanne Ross of MIT/CISR talks on Digital Disruption

Should the CDO drive corporate Digital Disruption?

The Importance of data in Digital Disruption Via @ComputerWorld

What is the role of government in Digital Disruption?

Are you acting like a software company? Your business may depend upon it

Using data and IT to gain Competitive Advantage

Leadership in an age of  digital disruption

Business model change: how does digital disruption drive the need for it?

@theopengroup

 

Comments Off on Digital Disruption for Enterprise Architecture

Filed under digital strategy, digital technologies, Digital Transformation, Uncategorized

Enterprise Architects “Know Nothing”: A Conversation with Ron Tolido

By The Open Group

It has been well documented that the digital economy is sending many companies—not to mention industries— into a tailspin. Customer expectations, demands for innovation and a rapid change are creating an IT landscape that is not only difficult to manage but nearly impossible to predict. And according to Capgemini’s Ron Tolido, Enterprise Architects need to prepare to function in a world where they have no idea what type of solutions and innovations their clients may need, even in the near future—a world where Enterprise Architects “know nothing.”

Tolido, who spoke at The Open Group London 2016 in April, believes organizations must begin to look to “I don’t know” architectures if they are to survive in the digital economy. Traditional IT methods and architectural practices that were established during the 1980s and 1990s are no longer relevant in the digital age.

Because customer and business needs are constantly changing there really is no way to know what IT landscapes will look like in the future or what type of solutions organizations will need, Tolido says. Therefore, rather than asking clients what they need, IT must instead provide users an architected platform of services that can be mixed and matched to meet a variety needs, enabling business customers to go in any direction they want.

As such, Tolido says Enterprise Architects in this emerging digital era are comparable to the character Jon Snow from HBO’s Game of Thronesa character who is often told “You know nothing.” Like Jon Snow, today Enterprise Architects effectively know nothing because businesses have no idea what the future will hold, whether two days or ten years from now. With new business scenarios developing in real-time, architectures can no longer be painstakingly planned for or designed.

So where does that leave Enterprise Architects? What can they offer in a world where they know nothing and are heading blindly into an environment that is constantly in flux?

Tolido says it’s time for enterprise architectures to stop trying to make predictions as to what architectures should look like and instead provide the business a digital platform that will allow for a new style of architecting, one that drives continuous transformation rather than requirements-driven, step-by-step change.

To do this, Tolido says Enterprise Architects must enable “the art of the possible” within organizations, providing their clients with a catalog of possibilities—a listing of potential things they could be doing to help companies continually transform themselves.

This is a huge shift for most IT departments, Tolido says, which are still stuck in the mindset that the business is different from IT and that business requirements must drive IT initiatives, with architecture sitting somewhere between the two. No longer can architects be content to place architectures somewhere in the middle between the business and IT, Tolido says, because in the next generation of IT—the era of the platform—there is no distinction between business and IT. They are one and the same. With the “third platform”—or Open Platform 3.0™—the platform must allow the business to continually adapt to the needs of customers and market forces.

This brave new world will also require Enterprise Architects to become more adaptable themselves and give up control of their architectures, Tolido says. The role of architects is evolving with them becoming business enablers, or platform “maesters.”

Currently, many established enterprises are having a difficult time adjusting to this new reality; thus all the digital disruption we are seeing across industries, Tolido says. Start-ups and newer technology players have some advantage here because they are already in a state of change and their systems have been designed to deal with that.

One way, Tolido suggests, that enterprises can make transformation easier on themselves would be to create a “parallel IT universe” alongside their existing systems that explores a more service-oriented model and allows for them to transition. Although such a system might cannibalize existing services or products, it may also be the only way to keep up with disruptive market forces. “Better to eat yourself and be your own disruptor than have someone else do it to you,” Tolido says.

As “platform maesters,” Enterprise Architects will also need to become much more proactive in helping company stakeholders understand the necessity of a platform play for continuous business transformation. That means proving that the EA role is much more about designing a continuously enabling platform than actually designing solutions, which is a shift in role for EAs. Tolido believes EAs must also become better at telling the digital story and outlining the business possibilities that services can enable. “They need to become real change agents. This will require more imagination from architects as well.”

Enabling unhindered, continuous transformation may actually allow businesses to move closer to The Open Group vision of Boundaryless Information Flow™, Tolido says. Standards will have a significant role to play here because companies designing platforms that allow for constant change will need the help of standards. The work being done in The Open Group Open Platform 3.0 Forum can help organizations better understand what open platforms designed for micro services and ad hoc application composition will look like. For example, Tolido says, the concept of the Open Business Data Lake—an environment that combines services, data retrieval and storage in a fluid way to provides dynamic outlets and uses for the data, is an indicator of how the landscape will look differently. “Standards are crucial for helping people understand how that landscape should look and giving guidance as to how organizations can work with microservices and agility,” Tolido says.

Despite all the upheaval going on at companies and in IT today, Tolido believes these are exciting times for IT because the discipline is going through a revolution that will effect everything that businesses do. Although it may take some adjustments for Enterprise Architects, Tolido says the new landscape will provide a lot of compelling challenges for architects who accept that they know “nothing”, go with the flow and who can adapt to uncertainty.

“It’s a new world. There’s more change than you can absorb right now. Better enjoy the ride.”

@theopengroup

By The Open Group

Ron Tolido is Senior Vice President and Chief Technology Officer of Application Services Continental Europe, Capgemini. He is also a Director on The Open Group Governing Board and blogger for Capgemini’s multiple award-winning CTO blog, as well as the lead author of Capgemini’s TechnoVision and the global Application Landscape Reports. As a noted Digital Transformation ambassador, Tolido speaks and writes about IT strategy, innovation, applications and architecture. Based in the Netherlands, Mr. Tolido currently takes interest in apps rationalization, Cloud, enterprise mobility, the power of open, Slow Tech, process technologies, the Internet of Things, Design Thinking and – above all – radical simplification.

 

7 Comments

Filed under Boundaryless Information Flow™, Business Transformation, Data Lake, digital technologies, Enterprise Architecture, enterprise architecture, Enterprise Transformation, Internet of Things, IoT, Open Platform 3.0, Ron Tolido, Standards, The Open Group

Choose UNIX® Inside

By The Open Group

In 1991, Intel Corporation started their “Intel Inside” marketing and branding campaign that turned Intel into a household name.[1] The power of “Intel Inside” was that it allowed consumers to quickly understand the value of what was “in-the-box” and make an informed buying decision.

UNIX® is another great example of a strong brand platform “inside” a bigger solution and, in some opinions, the UNIX platform has showcased a broader impact on technology than Intel.[2] An operating system (OS) that becomes UNIX certified has gone through the rigorous testing process to verify compliance with the Single UNIX Specification – The UNIX Standard.[3]  This certification provides an assurance to customers, independent software vendors, developers, integrators, and system vendors that a UNIX OS will work in a deterministic and well-defined way. “UNIX inside” allows IT decision-makers to quickly understand what is in the solution, even though the operating system is one component of the broader solution including hardware, applications, etc.

Another apt comparison to The UNIX Standard and  “Intel Inside” is UL certification mark often seen on devices using electricity. Underwriters Laboratories (UL) dates back to 1894 providing “safety-related certification, validation, testing inspection, auditing, advising and training services” around electrical devices and components.[4] From the early days of commercialized electronics a UL listed product gave confidence to consumers that what they buy would meet a rigorous set of standards from components, to wiring, to the product itself.

In the case of UNIX, The Open Group serves as the lab providing assurance to the end customers that every UNIX OS will deliver a set of rich feature sets, stability, scalability, and portability.  The UNIX® registered trademark is used in conjunction with a certified UNIX OS such as HPE HP-UX, Oracle® Solaris, IBM AIX, and many other brands to showcase its conformance.[5]

The UNIX OS has been a foundation of innovation for more than 45 years and the Single UNIX Specification (the UNIX Standard) has been in place for 20 years. “UNIX continues to be at the heart of the IT industry as it is an important enabler of other technologies such as Cloud.  Oracle Solaris 11, a UNIX OS, is a complete, integrated, and open platform engineered for large-scale enterprise Cloud which is why Oracle customers continue to prefer Solaris under the hood,” said Chris Armes, Vice President, Oracle Solaris Engineering. Global 100 and Fortune 100 customers choose “UNIX inside” for always-on mission critical computing.  Apple chose “UNIX inside” as the basis of their flagship operating system – MAC OS X / El Capitan.[6]

By The Open Group

Learn more about UNIX innovation with the resources listed below and why so many companies have chosen “UNIX inside”.

© The Open Group 2016.

UNIX is a registered trademark of The Open Group.  HP-UX is a registered trademark of HPE.  AIX is a registered trademark of IBM.  Oracle Solaris is a registered trademark of Oracle Corporation. El Capitan and Mac OS X are trademarks of Apple Inc.

[1] https://en.wikipedia.org/wiki/Intel#Intel_Inside

[2] The UNIX Evolution: An Innovative History Blog:  https://blog.opengroup.org/2016/02/23/the-unix-evolution-an-innovative-history/

[3] The Single UNIX Specification: http://www.unix.org/version4/overview.html

[4] https://en.wikipedia.org/wiki/UL_%28safety_organization%29

[5] http://www.opengroup.org/openbrand/register/

[6] https://blog.opengroup.org/2015/10/02/mac-os-x-el-capitan-achieves-unix-certification/

 

 

 

2 Comments

Filed under Cloud, digital business, digital technologies, Enterprise Architecture, Single UNIX Specification, Standards, UNIX

Balancing Complexity and Continuous Improvements – A Case Study from the Automotive Industry

By The Open Group

Background

The automotive industry is currently facing massive challenges. For the past 30-40 years, automakers have faced stiff competition in the marketplace, as well as constant pressure to make more innovative and efficient vehicles while reducing the costs to manufacture them.

At the same time, current technological advances are making the industry—and the technology inside automobiles—increasingly complex. Digitalization is also affecting not only how automobiles work but is forcing changes in the manufacturing process and in how automakers run their businesses. With technology now touching nearly every part of the business and how it functions, the IT landscape for automakers is becoming a web of interconnected systems running both inside and outside of the business.

In addition, with computing systems becoming a more integral part of the systems that run vehicles, the lines between traditional IT functions and IT within cars themselves are beginning to blur. With trends such as Big Data and analytics, the Internet of Things and The Open Group Open Platform 3.0™ making cars, manufacturers, dealers and owners increasingly interconnected, automotive company IT departments are being forced to get involved in areas of the business, such as product development and maintenance, in ways they’ve never been before.

Between economic forces and technological change, automakers, like many businesses today, are facing massive upheaval and the need for major transformation in order to deal with levels of business complexity they’ve never seen before.

Company

These challenges are very real for the automotive company in this case study. In addition to general economic and technological change, the company has gone through a number of transitions that have created additional infrastructure issues for the company. Over the past two decades, the company was bought then sold and bought again, bringing in two new owners and technological systems. Between the company’s original legacy IT systems and the systems brought in by its subsequent owners, the company’s IT landscape had become extremely complicated. In addition, the company is in the process of extending its footprint in the burgeoning Chinese market, a step that requires the company to invest in additional infrastructure in order to take advantage of China’s growing economic wealth to speed sales.

Between the company’s existing systems, the need to grow into emerging markets and increased digitalization across the company and its products, the company was in need of new approach to its overall architecture.

Problem

Although the company started early on to utilize IT to make the information flows across the company value chain as effective as possible, the existing IT environment had grown organically as the company had changed owners. In order to prepare themselves for an increasingly digital business environment, the company needed to address the increasing complexity of its systems without adding more complexity and while designing systems that could scale and run for the long haul.

Previously, the company had begun to consider using an Enterprise Architecture approach to address its growing complexity. Although the company had a number of solutions architects on staff, they soon realized that they needed a more holistic approach that could address the entire enterprise, not just the individual solutions that made up that IT landscape.

In an industry where time to market is of outmost importance there will always be challenges in balancing short-term solutions with strategic investments. As such, the company initially decided to invest in an Enterprise Architecture capability with the objective of addressing internal complexities to better understand and eventually deal with them. Because TOGAF®, an Open Group standard was seen as the de-facto industry standard for Enterprise Architecture it was the natural choice for the company to create its architecture framework. The majority of the Enterprise and solution Architects at the company were then trained and certified in TOGAF 9. Subsequently, TOGAF was adopted by the architecture community in the IT organization.

Within the IT department, TOGAF provided an ontology for discussing IT issues, and it also provided a foundation for the Enterprise Architecture repository. However, it was seen within the organization primarily as an IT architecture concern, not a framework for transformational change. The EA team decided that in order to really benefit from TOGAF and address the complexity challenges throughout the enterprise, they would need to prove that TOGAF could be used to add value throughout the entire organization and influence how changes were delivered to the IT landscape, as well as prove the value of a structured approach to addressing internal issues.

In order to prove that TOGAF could help with its overall transformation, the team decided to put together a couple of pilot projects within different business areas to showcase the benefits of using a structured approach to change. Due to a need to fix how the company sourced product components, the team decided to first pilot a TOGAF-based approach for its procurement process, since it was widely viewed as one of the most complex areas of the business.

A New Procurement Platform

The initial pilot project was aimed at modernizing the company’s procurement landscape. Although procurement is normally a fairly straightforward process, in the automotive business the intricacies and variations within the product structure, combined with a desire to control logistic costs and material flows, represented a major challenge for the company. In short, to save costs, the company only wanted to buy things they would actually use in the vehicle manufacturing process—no more, no less.

Over the years the IT supporting the company’s procurement process had become very fragmented due to investments in various point solutions and different partnerships that had been established over time. In addition, some parts of the system had been closed down, all of which made the information flow, including all the systems integrations that had occurred along the way, very difficult to map. There were also several significant gaps in the IT support of the procurement process that severely limited the transparency and integrity of the process.

Solution

Using TOGAF as an architecture framework and method in conjunction with ArchiMate®, an Open Group standard, for modelling notations and Sparx Enterprise Architect (EA) as a modelling tool, the team set out to establish a roadmap for implementing a new procurement platform. The TOGAF Architecture Development Method (ADM) was used to establish the architecture vision, and the architecture development phases were completed outlining a target architecture and a subsequent roadmap. No major adaptions were made to the ADM but the sourcing process for the platform was run in parallel to putting together the ADM, requiring an iterative approach to be used

As part of the roadmap, the following ArchiMate views were developed:

  • Motivation views
  • Information structure views
  • Baseline and target business process views
  • Baseline and target business function views
  • Baseline and target application function views
  • Baseline and target application landscape views
  • Baseline and target application usage views
  • Baseline and target infrastructure landscape views
  • Baseline and target infrastructure usage views

Each view was created using Sparx EA configured to facilitate the ADM process and acting as the architecture repository.

The TOGAF ADM provided a structured approach for developing a roadmap whose results could be traced back to the original vision. Having a well-defined methodology with clear deliverables and an artifacts meta-model made the work focused, and both TOGAF and ArchiMate were relatively easy to get buy in for.

The challenges for the project were mainly in one area—aligning the architecture development with the IT solution sourcing process. Because the company wanted to identify sourcing solutions early to assess costs and initiate negotiation, that emphasis pushed the project into identifying solutions building blocks very early on. In most cases, the output from the ADM process could directly be used as input for sourcing commercial of solutions; however, in this case, sourcing soon took precedence over the architecture development process. Usually moving through the ADM phases A to E can be done within a couple of months but evaluating solutions and securing funding within this company proved to be much more difficult and time consuming.

Results

With a new procurement process roadmap in hand, the company has now begun to use the ADM to engage with and get Requests for Information (RFIs) from new suppliers. In addition, using TOGAF and ArchiMate to map the company’s procurement process and design an infrastructure roadmap helped to demystify what had been seen as an extremely complex procurement process. The project allowed the IT team to identify where the real complexities were in the process, many of which are at the component level rather than within the system itself. In addition, the company has been able to identify the areas that they need to prioritize as they begin their implementation process.

Observations

Initially TOGAF was seen as a silver bullet within the organization. However, companies must realize that the TOGAF methodology represents best practices, and there is still a need within any organization to have skilled, knowledgeable Enterprise Architects available and with the mandate to do the work.

As part of the project, the following benefits were provided by TOGAF:

  • Provided structure to the analysis
  • Ensured a holistic perspective for all domains
  • Kept the team focused on the outcome, definition, roadmap, etc.
  • Provided a good view into current and future data for the roadmap
  • Provided proven credibility for the analysis

ArchiMate added additional support by providing well-defined viewpoints, and Sparx EA is a cost effective modelling tool and repository that can easily be deployed to all stakeholder in an initiative.

However, within this particular organization, there were a number of challenges that need to be overcome, many of which can hinder the adoption of TOGAF. These challenges included:

  • Competing processes, methodologies and capabilities
  • Strong focus on solution design rather than architecture
  • Strong focus on project delivery tradition rather than managing programs and outcomes
  • Governance for solutions rather than architecture

Adopting Archimate proved to be more straightforward internally at this organization because it could be used to address immediate modelling needs but without requiring a coordinated approach around methodology and governance.

In cases such as this, it is probably best to sell the TOGAF and ArchiMate methodologies into the business organization as common sense solutions rather than as specific technology architecture methodologies. Although they may be presented as such to the EA community within the organization, it makes the decision process simpler not to oversell the technical solution, as it were, to the business, instead selling them the business benefits of the process.

Future

Currently the company is beginning to move through the implementation phase of their roadmap. In addition, individuals throughout the organization have begun to regularly use ArchiMate as a tool for modeling different business areas within the organization. In addition the tools and concepts of TOGAF have been put into use successfully in several initiatives. The timeframe however for formally implementing a more comprehensive Enterprise Architecture Framework throughout other parts of the organization has been slowed down due to the company’s current focus on the release of new models. This is cyclical within the company and once the immediate focus on product delivery weakens, the need for consolidation and simplification will become a priority once again.

As with most companies, the key to a implementing a successful Enterprise Architecture capability within this company will come down to establishing a more effective partnership between the IT organization and the business organizations that IT is supporting. As such, for projects such as this, early engagement is key, and the IT organization must position itself not only as a delivery organization but a business partner that provides investment advice and helps minimize business risk through improved processes and technology based business transformation (as is prescribed by methodologies such as TOGAF and ArchiMate). This requires a unified view of the company mission and its business objectives and associated approaches from IT. Project managers, business analysts and Enterprise Architects must have a common view as to how to approach engagements for them to succeed. Without buy-in throughout the organization, the tools will only be useful techniques used by individuals and their real potential may not be realized.

Comments Off on Balancing Complexity and Continuous Improvements – A Case Study from the Automotive Industry

Filed under ArchiMate®, big data, digital technologies, EA, IoT, Open Platform 3.0, The Open Group, TOGAF