The Future of EA in the Digital Business of 2025

8/10/2019 The Future of EA in the Digital Business of 2025

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The Future of EA in the DigitalBusiness of 2025

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Your Digital Business Strategy Is YourBusiness Strategy

• Digital business is focused on the broader business opportunity

to compete (or serve).• Digital business is about the peer exchange between business

people and physical things as equal entities.

• Digital businesses are digitalizing their physical and virtual assets.

"Digital business" reflectsan emerging trend oforganizations creatingnew business designs

by blurring the physicaland digital worlds.




Journey to Digital Business: EveryPerson, Business and Thing Is a Peer

E-Business Digital Marketing Digital Business Autonomous

Focus

TransformSalesChannel

Exploits Nexusto Drive Efficiency

ExpendsPotentialCustomersto "Things"

Smart,SemiautonomousThings BecomePrimary Customers

OutcomesOptimize

Channel

Optimize

Interactions

BuildNew Business

Models

MaximizeRelationships

With Things

EntitiesPeopleBusiness

PeopleBusiness

PeopleBusinessThings

PeopleBusinessThings

Disruptions

Automation

of BusinessOperations

Deeper Customer

Relationship Analytics

Creationof New Value

With Things asCustomers

Smart Machines

and Things asCustomers

Technologies EDI Mobile BI, Big Data SocialSensors, 3DPrinting SmartMachines

Robotics,Smarter Machines,

Automation




Does Your Organization Have a DigitalBusiness Strategy?

52% of CEOs and Senior Executives Say That

They Currently Have a Digital Business Strategy

4% 4% 5%18%

51%

25%

41%

75%

45%

18%

16%

11%

14%

19%

14%

20%

23%

43%

28%

49%

26%

7%

30%

41%

22%8% 10% 11% 18%

Mfg./+Resources(n = 149)

FinServ/Insurance(n = 71)

Services(n = 63)

HealthcareProviders(n = 27*)

Comm./Media

(n = 28*)

Retail(n = 20*)

Wholesale/Trade

(n = 22*)

We have nothing werecognize as digitalstrategy

We have some strategyin that area, but not calledout as digital

We have a digital strategy,separate to our mainbusiness strategy

Digital strategy is anintegrated part of our main business strategy

Our digital strategy isour business strategy

Survey of CIOs:

8 out of 10 digital

business leadersadmit they will need

adaptation and learning,in order to be effective

in the new world




Key Issues

1. Perspective — How is EA evolving to respondto the disruptions of digital business?

2. Engagement — What is the future of EA

in 2025?3. Capabilities — What can organizations do

today to prepare for the future?




World of Digital Business:Car Crash Scenario




• Smartphone Car Crash Technology

• Fire and Law Enforcement• Sanitary and Cleanup Services

• First Responders• Emergency Rooms

• Insurance (P&C)• Banks (Loan Risks)

• Damage Control Sensors• Safety Deployment

• SMART Clothing

New Partnerships, Technologies, andPeople as Peers

Consumer Electronics

Government

Healthcare

Financial Services

Automotive

Retailers




Traditional EA: Inside-out Perspective

Business

IT

Focus on ITsystems andon delivering

business valueby providing amore stable IT

foundation.

Goal to manage,consolidate,standardizeand simplifythe IT landscapeto supportthe business.






EA for Digital Business: Outside-outPerspective

Interactions with and across known andunknown customers, constituencies,

partners and stakeholders.

Focus on architecting your enterprise from anoutside-out perspective – as well as outside-in andinside-out - perspective to competitively capitalize

on emerging digital business opportunities.




Key Issues


2. Engagement — What is the future of EAin 2025?

3. Capabilities — What can organizations dotoday to prepare for the future?




Gartner 2011 Prediction:Future of EA 2020

IT Architecture

Integralto Business

& IT Strategy

No LongerSupports EA

AbsorbedInto Business

Strategy

Not a Distinct Discipline

A Distinct Discipline

Businessand IT Strategy

Only ITDecisions Focus

S c o p e

4% Probability 55% Probability

40% Probability1% Probability





IT Architecture

Integralto Business

& IT Strategy

No LongerSupports EA

AbsorbedInto Business

Strategy

Not a Distinct Discipline

A Distinct Discipline

Businessand IT Strategy

Only ITDecisions Focus

S c o p e

4% Probability 55% Probability

40% Probability1% Probability

By 2020, the majority of organizations will support EAas integral to business & IT strategy.





OrchestrateBusiness

Biosphere

InfluenceBusiness

Ecosystem

Optimize

Operations

Maximize

BusinessOutcomes

60% probability35% probability


Inside-out

Outside-out

HighLowChange Impact

P e r s

p e c t i v e





OrchestrateBusiness

Biosphere

InfluenceBusiness

Ecosystem

Optimize

Operations

Maximize

BusinessOutcomes



Inside-out

Outside-out


P e r s

p e c t i v e

By 2025, enterprise architects will predominantlyfocus on delivering business outcomes from the

perspectives of their business ecosystem.





OrchestrateBusiness

Biosphere

InfluenceBusiness

Ecosystem

Optimize

Operations

Maximize

BusinessOutcomes



Inside-out

Outside-out


P e r s

p e c t i v e







OrchestrateBusiness

Biosphere

InfluenceBusiness

Ecosystem

Optimize

Operations

Maximize

BusinessOutcomes



Inside-out

Outside-out


P e r s

p e c t i v e

By 2016, 30% of organizations willestablish a clear role distinction between

foundational and vanguardenterprise architects.




The Evolution of Enterprise Architecture

Focus Technology Business OutcomesDigital Business

Ecosystem

CapabilitiesReference

architectures, policies &standards

Business architecture,strategy execution

Business Designs,Innovation, Scenario

Planning

EngagementWithin the IT

organization, ‘back

office’

Treat business peers ascustomers, focused onhow to execute on their

strategy

Treat businesscolleagues as partners,

engageexternal customers

Business

OutcomesBroad technology

capabilitiesMeasurable, business

strategy and operations

Measurable impactdigital business

innovation

Inside-Out Outside-In Outside-out




Business Outcome-driven EA FuelsDigital Business Strategy

DigitalDisruptions

BusinessOutcomes

ImpactOpportunities

and Threats

Future StateScenarios

Signature-ready Deliverables

Digital Business Strategy

Set actionable direction forleveraging digital business

to deliver outcomes

Guides whereand howto invest

Definessignposts,

indicators ofchange

Identifiesimplications,

risks, constraintsand touchpoints

Explores theworld of possible

disruptions

Guide decisions

and investmentsand drivesexecution




Key Issues


2. Engagement — What is the future of EAin 2025?

3. Capabilities — What can organizations dotoday to prepare for the future?




Five Key Capabilities for EA Emerge

Role Capability

Digital Business

Innovation

Providing the future focused business andIT leadership to seek out new opportunitiesand threats

Digital Business

Leadership

Providing the insight, structure and process

to benefit from digital innovation

Digital ExecutionGuides and informs both investmentdecisions, including people, businessprocess, information and technology

Delivering Business

Outcomes

Ensuring strategy and business outcomes

are efficiently achieved

Technology InnovationLeverage developments in technology andservices to innovate the operating model



Di it l L d hi Ri f E t i



© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

#GartnerSYM

Digital Leadership: Rise of EnterpriseArchitect as Digital Strategist

Strategist

Catalyst Visionary

Di it l B i E ti




#GartnerSYM

Gap

Digital Business Execution:Develop Your Business Road Map

Deliver Personalized Customer Experience

SupportPersonalizedCampaigns

OnboardCustomers

ContextualizedInteractions

Create andMaintain

Reputation

PersonalizedRisk,

Reputation &Fraud Mgmt.

ManageCustomer

Identify andPreferences

Proactively Detect and Resolve Risk

DetectFraud

ModelNew Fraud

EvaluateRisk

BalanceTransparency

ManageInformation

Security

ManagePrivacyMaxims

Create "Next Payments" R&D

DevelopRisk Models

Develop NewInnovationChannels

CreateSandbox

Create RapidPOC Cycle

CrowdsourceInnovation

DevelopCustomer

as Innovator

By 2017, 20% of purchases over $1000 at retailers and automobile dealers will befunded by competitive instant loans obtained using mobile devices.

Capabilities Gap

Assessment Business People Process Information Technology Priority

Develop Risk Models 3 3 2 2 2 High

Manage CustomerIdentify andPreferences

5 5 5 3 4 Medium

Model New Fraud 5 3 5 5 5 High

Onboard Customer 1 2 2 3 3 Low

* gap assessment high (1) to low (5)

D li i B i O t




#GartnerSYM

Delivering Business Outcomes:Line of Sight to Digital Business Strategy

Integrate sensors, beacons and devices into ournew line of products to increase our competitive

wins by 5% by end of year 2015.

Leverage use of smart devices in banking tocreate custom products that reduce risk by 10%.

Improve situational awareness by 20% forenvironmental events by incorporatingsmart machines and sensors.






#GartnerSYM

Recommendations

•

Invest at least 20% of EA team time in understanding emergingbusiness designs and technologies, with a specific focus onshort-term and long-term strategic value and impact.

• Use the definitions and future state scenario in this note todetermine your organization’s future state for EA.

- Determine what focus for EA will be needed to support your businessin the next ten, five and two years.

- Compare these future states with your current focus for EA.

• Identify and focus the resources and operations EA into twogroups, including:

Vanguard - Fast-paced, leading-edge EA efforts required toexplore digital business opportunities

Foundational - From the more stability and reliably focused EAefforts, required to support ongoing business operations.




#GartnerSYM

Recommended Gartner Research

Leveraging Enterprise Architecture to Lead theEnterprise Response to Disruptive TechnologiesBrian Burke, Betsy Burton, Mike J. Walker andDavid W. Cearley (G00266770)

Seven Best Practices for Using EnterpriseArchitecture to Power Digital Business Marcus Blosch and Betsy Burton (G00263326)

Cool Vendors in Digital Business, 2014

Betsy Burton and others (G00262558) Hype Cycle for Enterprise Architecture, 2014

Betsy Burton and Philip Allega (G00261507)

For more information, stop by Gartner Research Zone.

http://www.gartner.com/document/2850218?ref=QuickSearch&sthkw=Leveraging%20Enterprise%20Architecture%20to%20Lead%20the%20Enterprise%20Response%20to%20Disruptive%20Technologies&refval=142494828


http://www.gartner.com/document/2743917?ref=QuickSearch&sthkw=Seven%20Best%20Practices%20for%20Using%20Enterprise%20Architecture%20to%20Power%20Digital%20Business&refval=141197633


http://www.gartner.com/document/2724819?ref=QuickSearch&sthkw=Cool%20Vendors%20in%20Digital%20Business,%202014&refval=141197660

http://www.gartner.com/document/2804819?ref=QuickSearch&sthkw=Hype%20Cycle%20for%20Enterprise%20Architecture,%202014&refval=141197677

http://www.gartner.com/document/2804819?ref=QuickSearch&sthkw=Hype%20Cycle%20for%20Enterprise%20Architecture,%202014&refval=141197677

http://www.gartner.com/document/2724819?ref=QuickSearch&sthkw=Cool%20Vendors%20in%20Digital%20Business,%202014&refval=141197660









© 2014 Gartner Inc and/or its affiliates All rights reserved

#GartnerSYM

Recommended Gartner Research

Seven Ways to Build Your Business Ecosystemfor Greater Impact on Business and IT Planning Marcus Blosch (G00260466)

Master the Six Essential Elements of a

Digital Strategy Stephen Prentice and Ken McGee (G00247641)

Combine Adaptive Sourcing andEnterprise Architecture to Drive SustainableDigital Transformation

Marcus Blosch and others (G00260467)

For more information, stop by Gartner Research Zone.

http://www.gartner.com/document/2664315?ref=QuickSearch&sthkw=Seven%20Ways%20to%20Build%20Your%20Business%20Ecosystem%20for%20Greater%20Impact%20on%20Business%20and%20IT%20Planning&refval=141197695


http://www.gartner.com/document/2591116?ref=QuickSearch&sthkw=Master%20the%20Six%20Essential%20Elements%20of%20a%20Digital%20Strategy&refval=141197701


http://www.gartner.com/document/2695318?ref=QuickSearch&sthkw=Combine%20Adaptive%20Sourcing%20and%20Enterprise%20Architecture%20to%20Drive%20Sustainable%20Digital%20Transformation&refval=141197709


















Documents

The Future of EA in the Digital Business of 2025