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Gartner - Re-Compose Your Future Business With Todays Enterprise Architecture
Gartner - Re-Compose Your Future Business With Todays Enterprise Architecture
Gartner - Re-Compose Your Future Business With Todays Enterprise Architecture
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Philip Allega
VP Analyst
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Enterprise Architecture
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This remains Gartner’s definition since 2009. Previous definitions w ere equally w ithout reference to technology alone.
A composable business is an
organization that is architected for real-
time adaptability and resilience in the
face of uncertainty.
- Gartner (2020)
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See “Seize the Moment to Compose a Resilient Future: Key Insights From the 2020 Gartner IT Symposium/Xpo Keynote”
Today’s Agenda
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Market State and
Strategy Ontology
Shape EA Response to
Federation/Distribution
Composability
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Federated PESTLE/STEEPLE Differences
Disruption Preparedness Response May
Vary By Trend Indicators
Storm
No Storm Clouds
Brewing
The The
Storm Storm has
Abates Landed
The
Storm
Continues
10
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© 2021 Gartner, Inc. and/or its affiliates. All rights reserved. These may vary by market
PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. STEEPLE stands for Social, Technological, Economic, Environmental, Political, Legal, and Ethical.
Note: Don’t forget the demographics of people (e.g., customers, employees, partners, etc.)
ANSOFF’S MATRIX PORTER’S MATRIX BCG MATRIX
Grow your business by products in Find your competitive advantage Where to invest based upon market
markets performance
Markets Where Business Competes Relative Market Share
Existing Products New Products BROAD NARROW LOW HIGH
Markets
Existing
COSTS
Sources of Competitive
HIGH
Cost Focus
Advantage
Selling target customer Decline Invest
DIFFERENTIATION
Markets
LOW
Market Differentiation Differentiation
New
13
RESTRICTED DISTRIBUTION It’s Imperative to Envision Your Future State
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Traditional Composable
Business Business
D. Answer
E. Answer
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What’s Driving Us In
This Direction?
Uncertainty.
A New Appetite for IT.
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A Lesson We All Know, But Have We Learned?
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Disruption Radar Map Example From DHL:
Taking Positions and Adjusting Desirability
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Source: “Logistics Trend Radar,” DHL
Strategy and
Influences
Innovation Analysis Visual Roadmap
Business/Market
Product/Service/
Influences Capability/Systems
Technology/Skills/
Disruption Radar Map Competences/Resources
Today Future
Source: EIRMA (1997), Gartner Modifications (2019)
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What is Your Board Expecting of Digital from You?
Impact of COVID-19 Disruptions on Organizations’ Digital Business Initiatives
1 Accelerate Digital Business Initiatives 69%
Increased Focus on Improving Operational
2 Excellence Through Digital Business
60%
Increased Focus to Drive Higher Levels of Cost
3 50%
Optimization Through Digital Initiatives
4 Increase Investment in Digital Business 48%
Increased Focus to Completely Transform the
5 39%
Business Model Through Digital Business
No Change in Enterprise Behavior With
8%
Respect to Digital Business
Reduce Investment in Digital Business 3%
0% 50% 100%
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Source: 2021 Gartner View From the Board of Directors (n = 260, all respondents, excluding “Don’t Know ”), multiple responses allow ed),
Q02: ”What kind of impact do disruptions caused by COVID-19 have on your organization’s digital business initiatives?”
CEOs See CIOs Key Drivers of Business Strategy
Looking ahead 3-5 years, who do you anticipate will be/will need
to be the key driver of business strategy (other than
yourself/CEO) for your organization?
CIO
40%
Board
26%
CFO
11%
CMO
CDO 3%
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21 © 2021 Gartner, Inc. and/or its affiliates. All rights reserved. 10%
Source: May 2020 Deloitte and WSJ Intelligence global survey (n=100) 10%
“The past 12 months have
shown how crucial the
chief information officer
is; now the focus is on
building seamless
customer journeys and
delivering growth”
- Sean Hargrave, former innovation editor of The Sunday Times
(28 March 2021)
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The Primary Focus of EA for Composability:
Are you asked to focus here, or there?
IT Executive EA
Asset Costs TA, Standards
ITaaRevenueGenerator BA
See “What Is an I&T Operating Model, and How Do You Accelerate Its Design Process?” and “Toolkit: Enterprise Architecture Value and the I&T Operating Model Optimizing Patterns”
Polling Question 2 of 3
How to participate in our polling
What should be the primary focus of If you are in full screen mode – click Esc
“architects?” The poll question is on the “Vote” tab.
Please click the box to make your selection.
Upon voting you will see the results.
A. Technology Standards and Debt Management
B. Supporting Application Delivery Thank you!
C. Answer
D. Answer
E. Answer
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Considering
Composability with
Supporting Models,
Diagnostics, and
Analytical Processes
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What Is Composable in Your Business?
Customer
A Business Model reflects
why value is created and delivered to Value
Financials
customers or constituents. Proposition
Business capabilities are the linchpin that links these together, Business
Capabilities
telling us what the organization must do for the how to deliver the why. Capabilities
An Operating Model reflects Value Governance
how value is created and delivered. Streams
Resources
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Are Teams of People Composable? Qualifications
Experience
Cultural Adaptability
Belief Systems
Dexterity
Results Location
Country Knowledge
Language
Time Zone
27
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The Most Important Operating Model Resource?
See “IBM: A history of inclusiveness” (2015), “Diversity as Strategy” (2004), “Building an Equal Opportunity Workforce” (2021, looking back to the 1950s at IBM),
The Culture Map: Decoding How People Think, Lead, and Get Things Done Across Cultures (Meyer, 2015)
Since Brexit (2016), this EA Principle states:
“Architect for …
Resurgence
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3 Types of Investments Everyone Must Consider
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See “3 Essential Steps to Evaluate the Business Case for New Product Investments ”
Support Resilience in the Face of Disruptions
Before During After
**Heatmap **Strategic
Roadmapping
**Anchor 4 5
Model(s) 1
**Portfolio 3 6 IMT
Assessment
Decisions
Planning
2 8 7
9 10
**Trends
Mitigation Mitigation **Debt Clean-Up
Assessment
Results Execution Management
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Plausible “could”
Probable “likely”
Projected “expected”
Preferable “wanted”
Potential
“Everything beyond
the current moment”
Time
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Note: These options w ill be show n on Business Capability Models (and their substitutes) and Roadmaps communicating the state of change
As Conditions Change, Fitness Changes
25% 75%
Probability Probability 100% Certainty
# Trend # Trend # Trend
Triggers Likely Triggers Likely Triggers Likely
Core ERP System
• Domain Guidance
Customer Service Chatbot Solution • Reference Model
• Domain Guidance
Robotic Warehouse Solution • Reference Model
High Fitness
Low Fitness
No Fitness
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Federated Model: A Common Complication
Fo
I Core
Common Distinct F
Distinct E
M&A
Distinct D Divest
Separate
Distinct C
LOB/BU
Distinct A Architectures
Distinct B
Complicated by:
• Layers of abstraction
• Breadth of content
• EA Methods/Services Ownership
• Business/IT Span of Control
A • Fo = Degrees of Freedom
• Local Maturity/Skills
• Perceptions of IT Role
34
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• Expectations of Governance
See “Use Enterprise Architecture to Build Collaboration and Cooperation in Federated Organizations” and “Balancing Your Approach to IT Centralization, Decentralization and Federation ” and “Take a Decision
Matrix Approach to Balancing IT Decision Rights in a Federated Enterprise ” and “Market Trends: Telecom BSS Evolving as a Set of Federated Capabilities”
Federation & Business Capabilities:
Mashing Up Categorization Schemas
Deliver Personalized Customer Experience Develop Market and Brand Create "Next Payments" R&D
Support Personalized Risk, Operate
Contextualized Develop Product Develop Crowdsource
Personalized Reputation and Market Products Customer Create Sandbox
Interactions Strategy Risk Models Innovation
Campaigns Fraud Management Intelligence
Develop Partner Ecosystem Proactively Detect and Resolve Risk Execute Investment Products
Manage Execute Manage
Define Partner Broker Manage Channel Deliver Corporate
Detect Fraud Evaluate Risk Information Consumer Corporate
Aggregators Crowd Funding Partners Financing
Security Investments Investments
Core
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Moving Beyond The
Four Walls of The
Business
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From Business Model to Digital Ecosystem Model
Customer Participants
Business Shared
Capabilities
Capabilities
Capabilities Capabilities
Resources Resources
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See “The Gartner Digital Ecosystem Framew ork: How to Describe Ecosystems in the Digital Age”
Ecosystems Need Style, Focus and Ambition:
Requires an Answer to Your Future State Vision
Transformation:
Ecosystem Style
Optimization:
Platform-Led Expand Your Ecosystem
Participate in Other Ecosystems
Digital Enablement:
Value Chain Improve Your Ecosystem
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Simple View of Business Process Debt Types
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Note: This is under development in Gartner Research and w ill be different upon publication
For Solution/Application/Information/Technical
Architects, The Internal Side of I&T is Changing
Composed Application Experiences
See “Use Gartner’s Reference Model to Deliver Intelligent Composable Business Applications” and “Strategic Architecture Roadmap for Composable Enterprise Applications (Presentation)”
As You Digitize, Measure
(Externally Facing, Average % Revenue/Turnover)
60%
50%
50%
Progress in digitizing processes is typically much easier
than progress in digital “business” as shown by faster
progress along the x-axis than the y-axis.
No industry has, on average, entered the upper-right
Digital "Business"
Insurance
30% Government
Healthcare and Other
Insurers
Higher Education
20% Life Sciences, Medical Equipment and Healthcare
Other Science-Based Manufacturers Providers
Transportation
10% Heavy Manufacturing
0%
0% 10% 20% 30% 40% 50% 60%
50%
Digital Processes
(Internally Facing, Average %)
n varies by segment
Q: y -axis — How much of your organization’s total turnover/budget/revenue can be attributed to fully digital services (or products) delivered to your external constituents (see Note 2)
Q: x-axis — What percentage of your organization’s processes (core and support) have been optimized (made more efficient) through digital means?
Source: 2020 Gartner CIO Survey
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Polling Question 3 of 3
How to participate in our polling
When it comes to composable business, I If you are in full screen mode – click Esc
would be classify my organization in the The poll question is on the “Vote” tab.
following stage: Please click the box to make your selection.
Upon voting you will see the results.
A. Uninterested
Thank you!
B. Curious, but doing nothing now
C. Planning to engage in this concept within the
next planning cycle
Q. Polling Question
D. Focused upon composable information (please choose 1 answer)
technology only
A. Answer
E. Working on this right now
B. Answer
C. Answer
D. Answer
E. Answer
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Are YOU Ready?
Techniques to Vet the
Appetite for
Composable Business
Support from the EA
Team
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“If you’re a CIO reporting to the COO,
you’ll only have conversations about
operations and if you’re reporting to the
CFO, you’re only ever going to be asked to
reduce costs. The trick is to get in front
of the CEO and see what they want to
achieve to grow the business. We have to
be entrepreneurial and see how you can
proactively fit in and deliver that growth.”
- Lyn Grobler, CIO, Howden Group, The Sunday Times (28 March 2021)
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What’s the 1st Rule of Fight Club?
• Avoid the phrase “enterprise architecture,”
unless directly asked
• Don’t sell, educate
• Don’t “talk tech,” unless you can explain in terms
of business value and outcomes as part of the
strategic ontological beliefs of your executives
• Don’t mix up your aspirations with expectations
• Be clear on your value proposition to, minimally,
the IT executive
• Speak to how you (and your team) will help
others make smarter decisions
• Use storyboarding to vet acceptance of
composability to deliver value proposition to your
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47
organization
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Internal/External
Trends Radar Map Feeds Candidates to…
Business Ecosystem
Updates Model Engages
A/B
A. Leadership Team Named
Creates B. Technology Leaders Executive
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Ask your questions
Send Question
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The World’s Most Important Gathering
of CIOs and IT Executives™
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Top Priorities for IT:
Leadership Vision
for 2021
Emerging trends, expected challenges and
next steps for enterprise architecture
leaders in 2021
Download
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Keep
learning
@Gartner_IT Gartner for IT
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Essential insights and advice for every
leader across the enterprise.
Contact Us
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