15 – 18 November 2016

Goa, India
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Architecting the Digital Business

Brian Burke

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express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 Digital Business Makes Our Business More Porous

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 Think Like an Architect

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 Environment
Society
Culture
People Structural
Communities Engineering

Form
Function
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 Ecosystems

Mobile,
Customer Information
Cloud, Social,
Experience Systems
Data

IoT & Physical

Smart World
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 New Digital Business Realities

New Architectural Perspectives

Architecting Digital Business

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 New Digital Business Realities

New Architectural Perspectives

Architecting Digital Business

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Challenge: Digital Business Economic Agents Change
Roles Situationally Partner,
Providing Goods,
Competitor, Providing a for Information
Service, for Information
Partner, Providing
Information, for Customer, Collecting
Information Information, for a Fee
Sensor,
Providing a
Service, for
a Fee
Thing,
Brokering Supplier, Providing
Connections Sensor, Goods, for
for Ads. Providing a Information
Service, for a Fee

Business, Providing Consumer, Seeking Smart Advisor, Providing

Goods for a Fee Goods, for a Fee a Service, for a Fee

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Challenge: Digital Business Economic Agents Change
Roles Situationally Business,
Providing Goods,
Customer, Seeking a for Information
Service, for Information
Partner, Providing
Information, for Business, Collecting
Information Information, for a Fee
Sensor,
Providing a
Service, for
a Fee
Thing,
Brokering Competitor,
Connections Smart Advisor, Providing Goods,
for Ads. Providing a for Information
Service, for a Fee

Business, Providing Business Partner, Smart Advisor, Providing

Goods for Goods Seeking Goods, for a Fee a Service, for a Fee

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Digital Business Changes How We View and Manage
Customers, Partners, Competitors

Customers Partner Market Supply Chain

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Contracts Research
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Digital Business Changes How Connect and Collect
Customers, Partners, Competitors Information

Digital Integration Infrastructure

APIs Analytics EIM

Customers Partner Market Supply

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 By 2018, 30% of organizations will manage their
customer, partner and supplier relationships and
experiences using the same business processes,
applications and technology.

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 New Digital Business Realities

New Architectural Perspectives

Architecting Digital Business

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Traditional Architectural Approach
--
-- --
Ecosystems

Customer Intelligence Information

Things
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Traditional Architectural Approach
--
-- --
VISION & STRATEGY

COMPONENT BLOCKS CAPABILITIES INFRASTRUCTURE

Customer Intelligence Information

TOUCHPOINTS

Things
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Business Outcome-Driven Architectural Approach
--
-- --
VISION & STRATEGY

COMPONENT BLOCKS CAPABILITIES INFRASTRUCTURE

Customer Intelligence Information

TOUCHPOINTS

Things
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Architectural Building Blocks For Digital Business

VISION & STRATEGY CAPABILITIES

Goals Business Models
Strategic Actions Design
Business Outcomes Markets & Products
Opportunities and Threats Economics

COMPONENT BLOCKS TOUCHPOINTS INFRASTRUCTURE

Processes Integration Delivery
Technologies Security Network
Apps/Applications Governance Operations
Information Analytics Scale, Speed, Recovery

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Architectural Building Blocks For Digital Business

VISION & STRATEGY CAPABILITIES

Goals Business Models
Strategic Actions Design
Business Outcomes Markets & Products
Opportunities and Threats Economics

COMPONENT BLOCKS TOUCHPOINTS INFRASTRUCTURE

Processes Integration Delivery
Technologies Security Network
Apps/Applications Governance Operations
Information Analytics Scale, Speed, Recovery

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 Digital Business Architecture Building Blocks
Stakeholders
--
-- --

CEO, VISION & STRATEGY

CIO COO

COMPONENT BLOCKS CAPABILITIES INFRASTRUCTURE

Customer

I&O
CDO SME
Biz
SME
TOUCHPOINTS
Tech
SME
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 Inside
OUT

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 Outside
IN

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 OUTSIDE
OUT

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Take Advantage of Internal and External Business
Algorithms

Business
Ecosystem
Platform

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Digital Business Examples

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 New Digital Business Realities

New Architectural Perspectives

Architecting Digital Business

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 VISION & STRATEGY
Goals
Strategic Actions
Business Outcomes
Opportunities and Threat

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Clearly Identify Your Digital Business Vision and Strategy

Grow

Business
Reinvent Strategy Experiment

Adapt Orchestrate
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Strategically Managing Opportunities and Risk
Open

Share Lead
the the
Wealth Revolution
My Business
Enterprise Enterprise
Core Edge
Guard Expand
the the
Jewels Empire

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Closed
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 CAPABILITIES
Business Models
Design
Markets & Products
Economics

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Elements of a Platform Ecosystem

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 TOUCHPOINTS
Integration
Security
Governance
Analytics

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Take Advantage of Internal and External Business
Algorithms

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Take Advantage of Internal and External Business
Algorithms
Data Integration
APIs

Business
Ecosystem
Platform

Governance Security Strategy

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 COMPONENT BLOCKS
Processes
Technologies
Apps/Applications
Information

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 Even Deeper Under the Covers: Microservices Provide
Speed, Scale, and Agility
A monolithic application puts A microservices architecture puts
all its functionality into a each element of functionality into
single process … a separate service …
… and scales by replicating the … and scales by distributing these
monolith on multiple servers. services across servers, replicating as needed.

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 Example: The Emerging IoT Platform
IoT Solution
IoT Platform
Holistic Cloud Mobile Business
Processing Outcomes
and Fulfillment Analytics

Orchestration
Customers
Delivery Fulfillment Data

APIs/Integration/MOM APIs/Integration/MOM
Processing Initiation Aggregated Device
Management IT Apps OT Apps
Business
Partners
Moment
Fulfillment Communications
Gateways

(ERP, CRM, …) (MES, BMS, …)

Agents
IoT Endpoints = OT and Consumer Things +
Things
Endpoints
= IoT Localized Device/Data Management,
Apps/Analytics, Communications, Security.

= APIs

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 INFRASTRUCTURE
Delivery
Network
Operations
Scale, Speed, Recovery

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Recommendations: Five Digital Business Architecture
Rules to Live By
Your people, business and computing ecosystem is going to get
1 Proactively track business and ecosystem evolutions
more complex

2 You willonnever
Focus whatfix
is or
critical
control
for everything
your future state as a digital business

In a moment, every consumer, customer, business, partner, thing could be

3 Architect for situational awareness
an opportunity

4 Starting with
Leverage capability,
what youecosystem,
have first,customer
will limit your
experience
ability modeling
to compete

5 Start thinking
Stop by Thinking
of business
More About
as your "customer" – business
Technology-Enabled Business
and technology

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Recommended Gartner Research

 Architect Your Business to Sense, Respond and Create Business Moments

Betsy Burton (G00269234)
 Externally Focused Digital Business Initiatives Require Strategic Positioning
Hank Barnes and Don Scheibenreif (G00277702)
 Five Business Ecosystem Strategies Drive Digital Innovation
Marcus Blosch and Betsy Burton (G00291298)
 Follow the Leaders: Digital Business Is a Big Opportunity to Evolve Your
EA Practice
Marcus Blosch, Betsy Burton and Mike J. Walker (G00272411)
 Digital Businesses Will Compete and Seek Opportunity in the Span of a Moment
Don Scheibenreif (G00292313)

For more information, stop by Gartner Research Zone.

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