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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affili ates. This publication may not be reproduced or di stributed inany form without Gartner's prior written permission. If you are authorized to access this publicati on, your use of it is subj ect to theUsage Guidelines for Gartner Services posted ongartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner di sclaims all warranties as to the accuracy, completenessor adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's researchorganization and should not be construed as statements of fact. The opinions expressed herein are subject to change without n otice. Although Gartner research may include adiscussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its
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Betsy Burton
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.
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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
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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
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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?
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World of Digital Business:Car Crash Scenario
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• 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
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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.
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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.
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Key Issues
1. Perspective — How is EA evolving to respondto the disruptions of digital business?
2. Engagement — What is the future of EAin 2025?
3. Capabilities — What can organizations dotoday to prepare for the future?
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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
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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
By 2020, the majority of organizations will support EAas integral to business & IT strategy.
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Gartner 2014 Prediction:Future of EA 2025
OrchestrateBusiness
Biosphere
InfluenceBusiness
Ecosystem
Optimize
Operations
Maximize
BusinessOutcomes
60% probability35% probability
4% probability1% probability
Inside-out
Outside-out
HighLowChange Impact
P e r s
p e c t i v e
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Gartner 2014 Prediction:Future of EA 2025
OrchestrateBusiness
Biosphere
InfluenceBusiness
Ecosystem
Optimize
Operations
Maximize
BusinessOutcomes
60% probability35% probability
4% probability1% probability
Inside-out
Outside-out
HighLowChange Impact
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.
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Gartner 2014 Prediction:Future of EA 2025
OrchestrateBusiness
Biosphere
InfluenceBusiness
Ecosystem
Optimize
Operations
Maximize
BusinessOutcomes
60% probability35% probability
4% probability1% probability
Inside-out
Outside-out
HighLowChange Impact
P e r s
p e c t i v e
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Gartner 2014 Prediction:Future of EA 2025
OrchestrateBusiness
Biosphere
InfluenceBusiness
Ecosystem
Optimize
Operations
Maximize
BusinessOutcomes
60% probability35% probability
4% probability1% probability
Inside-out
Outside-out
HighLowChange Impact
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.
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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
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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
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Key Issues
1. Perspective — How is EA evolving to respondto the disruptions of digital business?
2. Engagement — What is the future of EAin 2025?
3. Capabilities — What can organizations dotoday to prepare for the future?
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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
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Di it l L d hi Ri f E t i
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#GartnerSYM
Digital Leadership: Rise of EnterpriseArchitect as Digital Strategist
Strategist
Catalyst Visionary
Di it l B i E ti
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#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
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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.
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#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.
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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.
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#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.