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Growing Business Agility to Create Competitive Advantage - Digital Transformation
In an earlier Sparx Systems White Paper the scenario of a jigsaw puzzle was used as a metaphor for agile, flexible and collaborative response to the creation of a shared vision within an environment that is in a state of high flux. The process of digital transformation will increase the probability of technology failure and change to complex systems will heighten risk exposure. It is essential that organisations mitigate these threats by deploying tools to support the creation of enterprise wide, agile responses. This paper discusses the inter relationship between managing digital transformation, collaborative agile tools and approaches and provides relevant examples of industry responses to digital disruption.
In the puzzle scenario, the mutual dependencies and unpredictability could be analogous to the challenges of digital transformation. Traditional business models will be driven to change by the forces of disruption and current business and IT portfolios will need to meet future demand. The agility with which organisations respond to these changes will be the key factor that governs their future success or their relegation to the beleaguered, whose business models have been made redundant.
These forces of digital disruption actually encourage business agility. The scalability afforded by cloud technology for example enables highly flexible service costs. Gartner predicts that “By 2017, 40 percent of utilities with smart metering solutions will use cloud-based big data analytics to address asset-, commodity-, customer- or revenue-related needs.” In another example the just released “2014 Airlines IT Trends Survey” reveals that “the disruption caused by mobile is so significant that airlines feel that they must invest in mobile services to ensure that they are not left behind.” The survey also reports that “Today, 100% of airlines are investing in the mobile space.” In the retail industry social media on mobile phones is creating a constant feedback loop that informs the development of business agility. As it permits real-time interactions with customers, it also drives growth. The 17th Annual Global CEO Survey by PricewaterhouseCoopers, reports that technology is already having a far-reaching impact on healthcare delivery and CEOs are already planning ways to take advantage of this trend. 89% plan to improve their ability to innovate; 93% plan to change their technology investments; and 95% are exploring better ways of using and managing big data.
Across industry, successful business evolution over the next decade will be based on the extent to which organisations can harness the forces of disruption and become the disrupting force. Organisational risk profiles will be changed by these forces and the new profiles will inform strategy and decision making. To translate business vision and digital strategy into effective enterprise change will require that leaders possess the ability to visualise, simulate and optimise the target state and ensure that the activities of everyone in the business are co-ordinated.
A systematic approach to the management of change provides an inclusive framework that considers the whole enterprise as well as the needs of different stakeholders. This agile business approach ensures that during the change process lifecycle, priorities are regularly assessed and progress continually monitored. As requirements are identified adjustments are made by managers and their teams, and not left to the end.
Data visualisation enables insights that support faster and more effective decision making while improving communication and bridging the IT – Business divide. To enable agility and insight to support decision making, organisations must also address silos in legacy systems, business, and information.
Enterprise Architect is and remains a technology that is fit for purpose in meeting the challenges of the changing business and IT environment. Visually powerful, it provides a fantastic viewpoint of multiple technologies and organizational units, all working together. Team review, shared data models and model mail are all in-built tools that can improve communication and break down silos, because everyone is using the same data/info/model.
To more effectively manage growing complexity and to stay focused and in control, agile and traditional teams choose Enterprise Architect. Due to very competitive total cost of ownership, large and distributed teams can collaborate more effectively and increase speed and ease, in the design, build, and management of their solutions and processes.
The industry tested traceability features of Enterprise Architect speak directly to shared awareness and clarity on what has been previously achieved. According to Gartner, “An agile, multidimensional approach to architecture is absolutely essential to support continuous development and innovation. Give developers the tools to fail fast, iterate quickly and innovate for business transformation.” The Kanban burndown charts that have been added to Enterprise Architect help to bring project reality into clear focus by showing the work done against the timeline, decision impacts and eliminate fuzziness about time based goals and deadlines.
Sparx Systems Enterprise Architect combines Agile projects with non Agile projects in a single projects portfolio, eliminating the necessity for any additional tools. For further information on tools for digital transformation and the creation of a shared vision within an environment that is in a state of high flux go to:
Back to the Future
Not since Y2K, has there been tumult of anticipation and apprehension about the impact of technology change that is predicted by the Nexus of Forces (Cloud, Social, Mobile and Big Data).
At the turn of the millennium, the perceived threat was enough for governments to take action before the event, which serendipitously strengthened the existing computer infrastructure. The “millennium bug” crisis created an opportunity to get rid of antiquated systems and modernise and according to an IDC report from 2006 the global cost of remediation was $308 billion (or $422B adjusted for inflation).
A programming bug and a poor understanding of process and outcomes caused the millennium crisis and factors which have relevance today. Together with an absence of standardised processes and ad-hoc decision making, (no repositories or collaboration tools) a lack of adherence to programming standards, project expedience, un-coordinated codebase modifications and uncompleted changes are some of the many factors that lead to technical debt or IT debt. In 2010 Gartner estimated “global 'IT Debt' to be $500 Billion with potential to grow to $1 Trillion by 2015”.
Applications drive the business and management makes decisions based on these applications, many of which were built to meet the needs of discreet business areas at a time when the idea of holistic management of applications as a portfolio was uncommon. With the need to create a single view of the customer from all parts of the enterprise the application silos must now be addressed. However, enterprise will continue to rely on those applications and adapt them to meet the nexus of forces.
The next period of uncertainty presents global industry with risk and opportunity in equal measure and just as with the response to Y2K, the forces of change can be harnessed to drive the digital workplace and promote workplace agility. If not maintained applications will eventually cause problems that can threaten the hard won competitive advantage of an organization and the ability to succeed through periods of dramatic change.
If there was ever a clear measure of change since the beginning of the 21st century one must only look at the growth of the forces in the digital convergence. In 1999, the total amount of data globally was 1.5 Exabytes, in 2010, 1.2Zb (12000 Eb) and will reach 7.9Zb in 2015. There were 300 million mobile phone subscribers in 1999 and today there are more than 7 billion. In 1999 there were 248 million Internet subscribers and today there are 3 billion. Such exponential growth has an impact on enterprise architecture, creating a demand for visual tools that are capable of engaging the whole organisation. Through the innovative use of technology, the enterprise can become a disrupting influence rather than be subjected to disrupting influences, while using the tide of digital change to reinvent itself.
The adoption of standards based tools that provide the templates and frameworks to reduce risk and increase efficiency is a major step towards technical debt reduction. The automation of processes will provide the time savings demanded by the agile enterprise while improving data quality. This in turn will reduce costs, create savings and support better informed investments, improved decision making and the fostering of innovation. The digital future requires both speed and agility while nurturing and growing organizational innovation.
Standards codify the best practices of an industry, with the built in adaptability and flexibility that is informed by having an eye to the future. In situations where compliance is mandated or where there is uncertainty, such as that generated by digital convergence, standards are designed to provide assurance and guidance.
Enterprise Architect supports the collaborative visualisation to remediate the software legacy and take control of the software development for evolving systems. This award winning, repository based technology, which is built on open standards, offers a number of automated best practices that can be adopted to shrink technical debt, while supporting the diverse viewpoints of stakeholders, geographically distributed throughout the enterprise. A powerful low cost solution to integrate critical information legacy with future systems design.
Data Synthesis and Systems Integration
The success of business models lies in their agility, the extent to which they adapt to changing market conditions and how they maintain efficiency and competitiveness in international supply chains. Today markets are changing at an unprecedented pace, driven by mobile, social, cloud and data technology.
IDC states that “by 2020, a third of the data in the digital universe (more than 13,000 exabytes) will have Big Data value, but only if it is tagged and analysed”
In an ideal world, large enterprises want to be able to respond to market change, with the speed of smaller competitors. This agility lies in the organisational ability, to create innovation cycles at the technology, people and process levels- the development of new applications based on insights crystallised, from the effective collection, management and analysis of data. These cycles have the potential to continually drive, innovation and solutions.
An Enterprise Data Architecture identifies the strategic data requirements and the related components of the information management solution at the enterprise level, and supports the ability to leverage data into business intelligence.
Such architecture informs organisation strategy and provides a formal approach to creating and managing the flow of data and data processing across IT systems and applications. This includes defining objectives for the improvement of data collection and use, process improvement, effective decision making on new and modified solutions, data warehousing, integration and reporting initiatives.
The dollars are in the detail when it comes to data management practice. If organisations are to reap this value, they will need to enable data synthesis on a shared, intra-organisation basis, and for this, modelling of data assets is imperative. Enterprise Architect has a built in data modelling profile and further information can be found here http://www.sparxsystems.com.au/enterprise-architect/information-data-modeling/information-data-modeling.html
Gartner recommends that “enterprises should adopt a portfolio of data integration tools that support a range of data delivery styles” including “federated and virtualized views of data.” It is recommended to take into account both existing data integration processes and future needs relative to a range of use-cases including data warehousing, operational application integration, system migrations and data conversions, and intra-enterprise data sharing.
The Big Data Survey http://www.gartner.com/newsroom/id/2593815 conducted by Gartner in 2013 reveals that “64 Percent of organizations have invested or plan to invest in Big Data in 2013”.