Architecting digital transformation

1. Architecting #digital
#transformation
Alexander Samarin

2. • The situation at the ICT department
– Legacy in-house ERP (slow and expensive to evolve)
– Many other small applications developed by external companies
– No internal knowledge about enterprise information systems
• The task as formulated by the CIO
– Reduce in a few times the time-to-market for delivery of software-
intensive digital business solutions
• The action (proposed)
– Transform the application architecture (#apparch) including
decomposition of the in-house ERP
– Execute the transformation as not just technology refactoring but
a way to bring business innovations including digital
© A. Samarin 2015 Architecting a digital transformation v1 2
Business case

3. Pillars of the transformation
© A. Samarin 2015 Architecting a digital transformation v1 3
• Platform-centric architecture (business execution platform)
– http://improving-bpm-systems.blogspot.ch/search/label/PEAS
• Ladder of business processes
– http://improving-bpm-systems.blogspot.ch/2014/09/bpm-ladder-of-
business-process-practices.html
• Cloud-friendly architecture (inspired by microservices)
– http://improving-bpm-
systems.blogspot.ch/search/label/%23microservices
• Digital
– http://improving-bpm-systems.blogspot.ch/2015/03/entarch-view-
on-ditigal.html

4. Several paths of transformation
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• Because it is not possible to define everything in advance, it
is necessary to considered the following paths
1. Process-innovation centric
2. ERP-decomposition centric
3. Off-The-Shelf (OTS) product centric
4. Project-opportunity centric
5. Operational-improvement centric
• And be capable to handle all of them TOGETHER

5. To know about each path
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• Initiators
• Pre-requisites
• Benefits
• Potential targets / examples
• Risk factor
• Expected ROI
• Business execution platform readiness
• Priority

6. Generic approach
© A. Samarin 2015 Architecting a digital transformation v1 6
• Following the enterprise pattern STEP – http://improving-
bpm-systems.blogspot.ch/2012/06/writing-it-strategy-from-
business.html
• Establish dependencies between the following enterprise
artefacts
– business process (E2E, macro-process, individual process, etc.)
– legacy application (including functionality in ERP)
– capability (business and technical ones)
– tools and technologies
– business benefits
• Quantify those dependencies

7. Business-innovation centric path
© A. Samarin 2015 Architecting a digital transformation v1
E2E or macro
process (P1)
Innovation
(I2)
benefits from
B1
Innovation
(I1)
is built on
is enabled by
E2E or macro
process (P2)
Capability
(C1)
Technology /
tool (T1)
Technology /
tool (T2)
Capability
(C2)
7

8. ERP-decomposition centric path
© A. Samarin 2015 Architecting a digital transformation v1
ERP functionality
(F1)
Capability
(C2)
is improved by
B2
Capability
(C1)
Technology /
tool (T1)
Technology /
tool (T2)
is enabled by
ERP functionality
(M2)
8

9. OTS-product-centric path
© A. Samarin 2015 Architecting a digital transformation v1
OTS product
Capabilities
(C1)
Capabilities
(C2)
E2E process
(Pn)
ERP functionality
(Fn)
is provided by
is improved by
B3
9
BPM-suite

10. Project-opportunity centric examples
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Project (J1)
Capability
(C2)
requires
Capability
(C1)
Technology /
tool (T1)
is enabled by
OTS product
B4

11. Operational-improvement centric
© A. Samarin 2015 Architecting a digital transformation v1 11
Capabilities
(C1)
Capabilities
(C2)
E2E process
(Pn) can be improved by
B5

12. What is a capability?
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• Capability is a measure of the ability of a component to
achieve a particular result
• A lot of people are able to play football. How may of them
are capable to play at the Champions League final?
• The most popular measure is the maturity level
• Thus to know your gaps
Capabilities
(C1)
Capabilities
(C2)
E2E process
(Pn)
needs level 4 of C1
needs level 3 of C2
current level of C1 is 3
current level of C1 is 3

13. Proposed approach
© A. Samarin 2015 Architecting a digital transformation v1
• Consider all paths together
• Capability as a unifying artefact
• Use business-business viewpoint for planning and execution
• Fuse processes, case-management and business-rules
• Combine business improvements with technological changes
• Use the power of Enterprise Architecture
• Quick experimenting
• SMACT (social, mobile, analytics, cloud, things)
• Know your gaps and manage how to close them
13

14. Architecting a digital transformation v1
An example of
As-Is – To-Be Architectures
vs
AS-IS TO-BE
internal vs off-the-shelf
in-house vs in-cloud
proprietary vs standard
© A. Samarin 2015 14
The transformation will be carried out in the several rounds.

15. • QUESTIONS?
• Personal website: http://www.samarin.biz
• Blog http://improving-bpm-systems.blogspot.com
• LinkedIn: http://www.linkedin.com/in/alexandersamarin
• E-mail: alexandre.samarine@gmail.com
• Twitter: @samarin
• Mobile: +41 76 573 40 61
• Book: www.samarin.biz/book
Architecting a digital transformation v1 15
Thanks
© A. Samarin 2015