Architecture using the framework of Zachman. Now, that's very interesting. In the last few sessions, we have thought about it. You know, what are the limiting factors or limitations in most of the 'things' that have the suffix or the "framework" prefix and you know we've been discussing it further.
Do you use the architecture as a template to implement a solution, a project? We have had a few discussions about why architecture is beyond that.
In the enterprise context, architecture should be the basis for better and easier operations management, acting as a catalyst and a great tool, a template, a reference for creating new opportunities.
What are the digital architecture's key components, and you know how we can actually apply it? We will look at a few specific cases.
We'll look at how the Zachman framework basically helps us address the two most important issues we 're facing at the moment.
One is our capacity in the digital economy to execute a plan, that is to say, a business strategy. How does the execution work out? How do you transform your business idea and ready for a successful operation?
The second thing that is very important, we are trying to achieve without great success, is our ability to manage complexity.
So I will discuss these two aspects, how the framework by John (Zachman Framework) can be a great tool and a foundation. Every industry, whether it's a retailer, a bank or a financial institution, or education or healthcare, etc., every business has a very strong need to reinvent itself and try to find better ways to exploit new digital opportunities in terms of service channels, product and service formats, pricing models or delivery options, and everybody is trying to do that.
Making it happen easily is truly difficult. There are quite a few common issues. There are sales and marketing related problems, the ability to attract a new client. How to improve your operation? If you are trying to increase performance or profitability, more automation is required.
Such problems and difficulties aren't in solitary confinement. I've picked up about nine different opportunities or you know they 're the solution for a CEO or Head of Department, or Head of Product or Head of IT or Sales.
We 're trying to move into new markets and new areas in some cases. Management is looking to consolidate somewhere else. They 're trying to remove one they're not focusing on.
A profitable attempt to know how to optimize IT investment, rationalize the portfolio of businesses, attempt to develop new products and services, recognize cost savings areas, etc. If I will concentrate on nine such opportunities, nine separate project leaders are handling such opportunities and solutions, and each of them, in turn, may have one or more projects for delivery. In this whole exercise, what we do not realize is that these issues, challenges, and opportunities do not live in isolation. Everyone has a direct dependency.
Business profitability would require you to have more customers and new customers, and that would require expanding new businesses that compete in the new market, with new products that require new digital solutions, as well as consolidating your existing portfolio of products. The new services need business process change, improved management, and multiple levels of optimization. Very high dependence, meaning you can't achieve cost savings or productivity without coping with all these problems.
IT teams are co-ordinating and finding out the best Digital Technologies (infrastructure) such as IoT, Big data, Wearable computing, Cloud computing, Social media, E-Commerce, Robots, Drones, Mobile Apps, and how to apply them to automation, infotainment, remote maintenance, digital products, etc.
At the same time teams from Sales, Marketing, Support, Production, Engineering, R&D, Finance, HR, Legal, etc. are identifying the areas to make the changes for becoming digital-ready.
That's why digital transformation is not one project, it's not a one-department project, it's really an assembly of cross-initiatives. It may be 30-40 projects. Unfortunately, we miss this view when we are just involved in one or two projects only. Often the project view is blind to the enterprise view.
Such projects, which have many technical problems, can have a high degree of exposure in the minds of the teams involved, but from an enterprise viewpoint, it is simply a series of programs that have to tick together to make a significant return.
Interdependent Projects Collection? It's so complex that you know the intricacies cannot be conceived and hard to visualize easily.
Often, these specifics are informal, unstructured, and that's exactly the most important thing we need to look at before you begin your digital transformation. Digital Transformation is not a project in itself. I can estimate, with fair certainty, that over the next five to seven years you will have 300 such projects. In the absence of architecture, the company will look like the broken-down cities of today. What appears to be a great opportunity, will in fact be the biggest drag in the next 36 months.
If you look closely in every industry, you can find that our capacity to handle complexity is pretty close to zero in the absence of architecture, and that is why digital architecture is a must for digital transformation.
You may of course gradually evolve the Architecture. Before you start your digital transformation, having a Digital Anatomy is so necessary though.
The next question comes, can I start using any framework to create my digital architecture? Which building blocks are key? How do I know if it's info on architecture or implementation? Come back next week for these questions please. And I will tell you what has happened in the last 50-60 years and what we've learned.