Jan amtoft

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 | [email protected] | 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


Digital Architects are experts in Technology Trends

Digital Innovation feeds on Disruptive Technology

Short-range Medium-range Long-range


mean?

Why Digital Architecture is the ”Mother” of Strategy

15-20 years

Strategy 1

Strategy 2

Strategy 3

Strategy 4

One Digital Architecture


THE DIGITAL TRANSFORMER AT WORK

Implementing strategy within an enterprise architecture


The Transformer role in Digital Transformation


Transformer - Orchestrator • Setting the team: Planting,

growing, challenging • Focusing on strategy and

results

Project Manager

Architect Line

Manager


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...


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


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


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.


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


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.


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.


QUESTIONS?