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VIRKSOMHEDENS DIGITALE TRANSFORMATION
Virksomhedens digitale transformation
• Digital Transformations are changes to the digital value
delivery system of an enterprise. They are complex, risky and
exhaustive to the entire organization, yet an inevitable
consequence of digital strategy.
• Digital Transformations aim to change the values, motivation
and capabilities of an enterprise – focused on the digital value
delivery system – including people, processes and technology.
The transformation is orchestrated by the Digital Transformer,
and performed by the troika of transformation; the line
managers, project managers and digital architects.
Jan Amtoft, IT direktør EDC Gruppen a/s
4. November 2015 Dansk IT’s EA 2015 konference
JAN AMTOFT
+45 26225 5684 | janamtoft@gmail.com | www.janamtoft.dk | jan.amtoft Telephone Mail Website Skype ID
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Digital Strategy feeds on 3 key factors
Investment Capital:
To understand share performance. The dynamics of financing and ownership.
Disruptive business models:
To understand the fundamentals of digital transformation. To understand the digital operating model and how it can be leveraged in both pure and hybrid business models.
Disruptive Technology:
Digital technology trends. To understand how emerging technologies can be tracked and how timing can be decided for inclusion in strategies.
Disruptive Business Models
Disruptive Techno-
logy
Investment Capital
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Digital Architects are experts in Technology Trends
Digital Innovation feeds on Disruptive Technology
Short-range Medium-range Long-range
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
mean?
Why Digital Architecture is the ”Mother” of Strategy
15-20 years
Strategy 1
Strategy 2
Strategy 3
Strategy 4
One Digital Architecture
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
THE DIGITAL TRANSFORMER AT WORK
Implementing strategy within an enterprise architecture
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
The Transformer role in Digital Transformation
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Transformer - Orchestrator • Setting the team: Planting,
growing, challenging • Focusing on strategy and
results
Project Manager
Architect Line
Manager
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Leader - People • Accountable for results • Providing resources • Role-modeling change • Encouraging behavior • Engaging everybody
Digital Architect – Content • Setting guidelines, norms,
blueprints, designs • Defining, consulting,
policing artefacts of the Digital Operating Model
Project Manager – Process • Making the plan and
keeping it • Coordinating, informing,
resolving conflicts
Men det går ofte galt...
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Digital Transformation fejler ofte, men hvorfor?
You’ll need a very good Transformation Cockpit
Technology gaps • Immature technology • Sunset technology • Wrong technology
Capability gaps • Business capabilities • IT capabilities • Leadership capabilities
Ownership gaps (sponsor level) • Ignorance at senior level • Mistrust at senior level • Power fights • Personal issues
Change management gaps (staff) • User anxiety, frustration • Rumours not facts driven • Pessimism or over-optimism • No burning platform
Focus and planning gaps • Endless elaboration • Led astray by radical ambitions • Estimation and planning gaps • Lack of communicable case-for-action
Relevance gaps (utilitarian) • Next big thing – outpaced • Macro-economic climate • Diminishing business case • Financial constraints
IS/IT Risk Compass
Tech
no
logy
Ow
ne
rsh
ip
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Examples
Techn
olo
gy
Ow
ne
rsh
ip
Techn
olo
gy
Ow
ne
rsh
ip
Techn
olo
gy
Ow
ne
rsh
ip
Lack of capabilities And ownership
Ok! Lack of capabilities Focus/planning and change
Management
The Secret of Success – is people focus
% Detractors % Promoters Net Promoter Score = -
PROMOTERS PASSIVES DETRACTORS
Promoters 58%
Passives 23%
Detractors - ERP 10%
Detractors - other
9%
Other 19%
NPS - end users – 41% in week 42
Promoters; 50 Promoters; 52 Promoters; 56 Promoters; 59
Passive; 27 Passive; 26 Passive; 24 Passive; 23
Detractors; 23 Detractors; 22 Detractors; 20 Detractors; 18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Week 40 Week 41 Week 42 Week 43
THE ROLE OF THE DIGITAL ARCHITECT
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
The Architect
Product breakdown structure = { feature = { product backlog item }}
Purely digital companies often have operating models much different from analog companies. Their operating models are more social, asset-light, global, virtual and multi-sourced, than most analog companies. Their most valuable asset is relationships, next comes information. Goods and money are ranking
below these two. These companies are operating at market prices, but with high capital efficiency.
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Digital Architects are experts in Digital Operating Models
16
THE DIGITAL PURE-PLAY OPERATING MODEL
R & D Marke-
ting
Digital store-front
Flow of Goods
Flow of Money
Ideas
Out-sourced
Mfg.
Out-sourced Distri- bution
Products
Demand signal Feedback
Flow of Goods
Shipment order
Co
nsu
me
r
Specs
Packaging
In-house
Multi-sourced
Demand
Social Media / Big Data
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Digital Architects are experts in Digital Operating Models
The DNA of a Digital Architecture
• Integration
• Standardization
• Longevity
• Scalability
• Stability
• Diversity
• Collaborated
• Geography
• Competition
• Security
• Sustainability
Tomorrow’s enterprise is a loosely knit system of processes, people, resources, goals and plans.
It will be dynamic and flexible and contain as few or many internal and external parties as required to maximize value and return on capital employed.
The enterprise owns its value proposition and it claims access to the customer – all other activities are considered non-core.
Focus is on the critical dimensions: customers, products, geography, time, strategic business units and function measuring effort, cost, revenue, profit and capital.
The core capability is extra-enterprise integration and collaboration.
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
Conglomerate Businesses or United Business?
Operating strategies
• Business integration - one or multiple
instances – and are they business or
technology driven?
• Harmonized business procedures or
diversified business procedures
• The architecture must be designed to
accomodate the operating strategy of
the enterprise. The architecture
possibilities vary much within these 4
operating strategies.
(Design for Integration and standardization)
Integration
Replication
Unification
Diversification
- Process standardization -
- O
pe
rati
on
al i
nte
grat
ion
-
HIGH LOW
LOW
H
IGH
One company,
one source, one brand
Holding company
strategy with autonomous
entities
Subsidiaries provide varied
products to the same
customers
Franchisees or Replicated Facilities of
an Integrated Strategy
Centralized IT • Operational Synergies • Common IS/IT lifecycle
management • Common governance • Common resources
Federated IT • Solution Synergies • Developments and
templates • Portfolio prioritization • Global projects
Decentralized IT • Infrastructure synergies • Policies and standards • Procurement • Compliance and audit • Financial reporting
+
+
Bu
sin
ess
Mo
del
Ch
ange
Rat
e
IS/IT delivery model
High
Low
Componentized
Monolithic
Off The Shelf customized
Off The Shelf standard
Standardized Specialized
(Design for Longevity)
The 4 digital architect roles
Interpret the requirements of your enterprise and choose and configure the options.
The pitfalls and opportunities: Spending too much time in the ivory tower will not justify your existence. Constantly communicate and discuss the options openly. Don’t hide, don’t be afraid of challenging discussions. Get your act together and show the deepest professionalism when discussing.
Guide the delivery teams to understand the configured architecture
The pitfalls and opportunities: Architects often come from a practical background, they are unfortunately often sucked into practical problem solving. The more they solve, the less capable the delivery teams will be at the end of the day. Be consultative and supportive, do not drive or direct the delivery teams tightly.
Make sure the architecture sticks. Check for compliance and be firm.
The pitfalls and opportunities: Policemen or even judges are not liked well by a dynamic business climate. Rigid and thorough architects working slowly and surely with great precision will be taken over by cowboys simply doing their own thing instead of waiting. You have to be the fastes gun in the west to survive and have your governance survive.
Technology Watch is the process of tracking potentially disruptive technology, giving valuable inputs to the digital strategy process.
The pitfalls: Lagging enterprises risk missing the potential advantages of well-timed adoption of digital business opportunities. Digital Architects can find themselves struggle for diminishing resources and sponsors.
COPYRIGHT (C) 2015 JAN AMTOFT – ALL RIGHTS RESERVED
QUESTIONS?
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