So You Think You Need A

Digital Strategy

Alan McSweeney
http://ie.linkedin.com/in/alanmcsweeney

I Want A Digital
Strategy

And
Big Data

And It Must
Include The
Internet of
Things

And It
Must Be
Agile

And
Innovative

What About
Cloud?

October 27, 2015

Bingo
2

Be Careful Of The Bumpy Ride On The Hypecycle

Just because consultants and vendors are all talking about

digital does not mean you should rush recklessly into it

October 27, 2015

Some Meaningless Slide About Classical Greek

Military Terms

Originally strategy meant generalship

Tactics meant the organisation of military forces

Strategoi (generals) could be punished, exiled or even

executed for failure to use initiative, even if they
succeeded in battle, by soldiers or the assembly

How many digital strategists face a similar fate?

How many Chief Marketing Officers and consultants are

made drink hemlock if their digital strategy fails?

October 27, 2015

General Aspects Of A Strategy

Definition/
Diagnosis

Governing
Policies and
Principles

Action Plans

Define the circumstances of the issue that give rise

to the need for a strategy

Detail the core objectives of the strategy to address

the circumstances

Expand into a series of co-ordinated and integration

actions to achieve the core objectives

What Success Looks Like And How You Intend To Achieve It

October 27, 2015

Digital Strategy

Digital strategy is a statement about the organisations

digital positioning, competitors and customer and
collaborator needs and behaviour to achieve a direction
for innovation, communication, transaction and promotion

October 27, 2015

Not All About Digital

Business priorities

Keep the business running

Improve customer service
Reduce costs
Increase productivity and efficiency
Increase revenue
Develop new and enhance existing products and services
Find new business opportunities

An effective and balanced approach to digital can assist with

delivering on business priorities
Remember that technology generally accelerates existing
business momentum rather than being the originator of
momentum
Digital is not a panacea
October 27, 2015

Digital Has Become a Catch-All Term For

Enabling
operational
efficiencies and
cost reductions

Greater webbased
transactional
functionality

Multi-media
and enterprise
content
management

Customer portal,
greater customer
intimacy, greater
geographic reach

Enhanced and
extended web
presence, digital
brand awareness and
development

Customer self
service, greater
automation of
web
interactions
Greater
enablement of
non-PC web
access such as
mobile
technologies

Collection and
analysis of web
interaction data

Multi-channel
information
access

October 27, 2015

Mobile
selling,
B2B, B2C,
M2M

Direct sales,
ecommerce,
ebusiness

Greater use of
and integration
with social
media
platforms

Unrealistic Digital Expectations Have Become A Bit

Of An Elephant In The Room

October 27, 2015

First Things First

Know what you mean by digital and have a common

understanding to avoid confusion

Enables business expectations to be understood and

managed

October 27, 2015

10

Digital In Business and IT Context

Any digital initiatives sit within an overall business and IT

context and their multiple balancing acts between:
Control

Freedom

Reduce Cost

Deliver More

Security

Openness

Delivery

Strategy

Efficiency

Responsiveness

Standardisation

Customisation

Focus On Overall Organisation

Focus On Individual Business Units

Predictability

Agility

October 27, 2015

11

Business and IT Balancing Act

October 27, 2015

12

Organisation Business Landscape

Shareholder

Intermediary

Competitor

Service
Provider

Supplier

Contractor

Researcher
Retail
Customer

Public

Collaborator
Business
Customer

Outsourcer

Organisation

Partner

Regulator

Dealer
Distributor

Agent
Client
October 27, 2015

Representative

Franchisee

Counterparty

Sub-Contractor
13

Organisation Business Landscape

Organisations typically operate in a complex environment

with multiple interactions with different communication
with many parties of many different type over different
channels
External Actors - xActors

Digital is concerned with new ways of interacting with

some or all of these xActors

Digital is not just about customer interactions, though this

may be its main focus

October 27, 2015

14

Organisation Business Landscape

Shareholder

Researcher
Intermediary

Shareholder

Representative

Sub-Contractor

Public
Intermediary

Agent

Counterparty
Collaborator

Service
Provider

Supplier
Regulator

Franchisee

Distributor
Contractor

Business
Customer

Client
Retail
Customer

October 27, 2015

Outsourcer
Partner

Dealer

Competitor

15

Organisation Business Landscape

Not xActors the organisation interacts with have equal
importance or of equal value
Each xActor and communications channel has different
characteristics:

Distance from the core of the organisation composite

measure of value and importance to the organisation
Volume of interactions
Complexity of interactions
Type of interaction informational or transactional

Every organisation will have a different xActor and

distance profile
Follow the value

October 27, 2015

16

xActor Data Models

Build logical data model for each external party to link

possible requirements to required capabilities and
associated processes

Will be different for each organisation

Enable identification of current and future interactions,

the impact and data requirements

Enable effective decisions on costs and benefits of digital

October 27, 2015

17

xActor Data Models Sample For Energy Utility

Post-Pay Customer

October 27, 2015

18

Depth And Breadth Of Implementation And

Operation Of Digital Strategy
Number Of Processes Automated

Collaborations Implemented

Customer
Service
Provider

Partner
Regulator
Agent

October 27, 2015

19

Digital Strategy And Business Processes

A key aspect of implementing a digital strategy is the

extension of internal processes to specific parties over
specific channels outside the organisations

This extension will be phased based on standard delivery

criteria:
Cost
Resource
Amount of change the organisation can absorb

October 27, 2015

20

Extended Dimensions Of Digital Strategy

External Parties
Participating in
Digital
Interaction/
Collaboration

Numbers and Types of

Interactions/ Collaborations and
Business Processes Included in
Digital Strategy

Channels
Included in
Digital
Strategy
October 27, 2015

21

Dimensions Of Digital Strategy

External Parties Participating in Digital Interaction/

Collaboration who of the many parties in your
organisation landscape do you interact with digitally

Numbers and Types of Interactions/ Collaborations and

Business Processes Included in Digital Strategy which
types of interactions and associated business processes do
you digitally implement

Channels Included in Digital Strategy what digital

channels do you interact over

October 27, 2015

22

Dimensions Of Digital Strategy

You cannot realistically achieve work across all dimensions

The change, cost, risk, resources and time required to implement
digital across combinations is too great
A - External Parties Participating in Digital Interaction/ Collaboration
B - Numbers and Types of Interactions/ Collaborations and Business Processes Included in
Digital Strategy
C - Channels Included in Digital Strategy

AxBxC
Is just too large a number
You need to prioritise implementation based on factors such as
value
You need to be realistic about what can be achieved
You need to understand the enabling technologies and changes to
existing system needed to make the implementation of a digital
strategy work
October 27, 2015

23

Dimensions Of Implementation Of Digital Strategy

Phase 1

Phase 2
Phase 3

External Parties
Participating in
Digital
Interaction/
Collaboration

Numbers and Types of

Interactions/ Collaborations and
Business Processes Included in
Digital Strategy

Channels
Included in
Digital
Strategy
October 27, 2015

24

Digital Initiative xActor Delivery Radar

Mapping the
planned and
phased depth
and breadth of
digital
interactions
with xActors
relevant to the
organisation

October 27, 2015

25

Organisation Operational Silos

October 27, 2015

26

Operational Silos
There are too many operational units that operate
independently with walls effectively between them
There is too much lobbing of work over the walls between
operational units with no cross-functional/cross-capability,
end-to-end view and no seamless operation
When you extend business processes outside the
organisation, you need to ensure cross-functional/crosscapability operation
External parties are not concerned with process limitations
caused by a siloed organisation not operating efficiently
Lack of seamless operation of business processes not
evident (to a lesser or greater extent) to the outside world

October 27, 2015

27

Digital Strategy And Business Processes

Digital Means
Extending and
Exposing Business
Processes Outside
the Organisation
The Organisation Is
being Opened-Up

Business Processes Within

The Organisation
October 27, 2015

28

Extending The Organisations Boundaries

How Far to
Push the
Boundary
and How
Porous
Should the
Boundary
Be?

Business Processes Within

The Organisation
October 27, 2015

29

Digital Creates User Expectations

Digital reduces the expected and tolerated latency and the

asynchronicity of communications between the organisation
and external parties

Understand, manage, control and deliver on the expectations

October 27, 2015

30

Digital User Expectations

First time problem
resolution or response to
request

Support is available
whenever it is needed

Immediate access
and response

Access is available from

anywhere at any time

All information is accurate

and available online all the
time

Products and services can

be ordered and their
delivery tracked

Loyalty and
rewards

Proactive
notifications
October 27, 2015

Simple, consistent,
easy to use

Provide advice and

assistance
Range of channels and
functions affects decision to
do business

Demand multi-channel
experience
31

Be Careful These User Expectations Do Not Explore

In Your Face
First time problem
resolution or response to
request

Support is available
whenever it is needed

Simple, consistent,
easy to use

Immediate access
and response

Access is available from

anywhere at any time

All information is accurate

and available online all the
time

Products and services can

be ordered and their
delivery tracked

Loyalty and
rewards

Proactive
notifications
October 27, 2015

Range of channels and

functions affects decision to
do business

Provide advice and

assistance

Demand multi-channel
experience
32

Expectations Of Digital

Dont let your digital strategy be crushed by the weight of

internal and external expectations
User
Expectations

October 27, 2015

Business
Expectations

33

Digital Strategy is All About Connectivity And

Integration
Connectivity
Between
External Parties
and the
Organisation

Connectivity
Between
Business
Functions

Connectivity Between
Applications and Data
October 27, 2015

34

Digital Enablement Technology Iceberg

In Order to Extend and Expose
Capabilities and Business
Processes Outside the
Organisation

You Will Need a Substantial Amount

of Enabling Technology, Systems,
Resources and Supporting Processes
and Organisation Change

Successful Digital Operations Require

Investment and Commitment
October 27, 2015

35

Digital Strategy And Business Processes

Extending and exposing existing possibly siloed and functionally

not integrated business processes outside the organisation may
uncover problems with their operation
Digital interactions with third parties gives rise to expectations
of:
Velocity
Responsiveness
Accuracy
Completeness

Digital will make weaknesses in business processes and

underlying technology very evident very quickly
Failure to deliver expectations will affect the success of the
digital strategy
October 27, 2015

36

Operational Silos Breaking Through The Walls To

Enable Cross-Functional/Cross-Capability Working

October 27, 2015

37

Digital Strategy And Business Processes

You need to break through the organisation barriers

preventing cross-functional/cross-capability business
process operation as a pre-requisite for successful and
efficient digital implementation and operation

October 27, 2015

38

General Aspects Of A Digital Strategy

Definition/
Diagnosis

Governing
Policies and
Principles

Action Plans

Define the
circumstances of the
issue that give rise
to the need for a
strategy

Why are we doing it?

What gives rise to the need for a digital strategy?
What problems are we trying to solve?
What challenges are we trying to address?
What constraints are we looking to remove?

Detail the core

objectives of the
strategy to address
the circumstances

What are our objectives?

Who are we looking to connect with digitally and how?
What is our long-term digital strategy?
How will be communicate our strategy?
What type of connections are we looking to implement?
How will we measure the achievement of the objectives?
How will the implementation be phased?

Expand into a series

of co-ordinated and
integration actions
to achieve the core
objectives

What is the schedule for implementation which parties,

what types of interaction over what channels?
What are the technology, system, resource and
organisation pre-requisites to achieving success?
What are the risks and dependencies?
How can this work be formulated into a realistic and
achievable plan?

What Success Looks Like And How You Intend To Achieve It

October 27, 2015

39

Fallacies Of Distributed Computing Digital

Fallacies of distributed computing are assumptions made by developers of distributed

applications identified by Peter Deutsch at Sun Microsystems
Assumptions are false and the consequences of making them include some or all of system
failure, increased costs, project delays, reduction in scope or substantial redesign and
rework
Fallacies apply equally to digital initiatives
Dont relearn forgotten lessons the hard way

Fallacy

In the Digital World

1.The network is reliable

The external network is outside your control. It is inherently unreliable. It has uncertain
performance
Latency is pervasive
Assumptions about bandwidth lead to network-intensive applications that lead to poor
and erratic performance
No it is not. Lack of concern about widespread security threats will leads to weaknesses

2.Latency is zero
3.Bandwidth is infinite
4.The network is secure

5.Topology doesn't change It changes all the time and no one tells you
6.There is one
There are many administrators and they are not all under your control. In some cases no
administrator
one is in control
7.Transport cost is zero
Network bandwidth can have significant costs
8.The network is
The digital network is mixed, much of it is outside your control and there are many
homogeneous
pinch points
October 27, 2015

40

Objectives Of Digital Strategy

Relationships And
Information
Commerce And
Transactions
Content and Management

Objectives

Marketing and
Communications
Efficiency
Brand
Innovation

Digital Strategy

Profit
Technology
Achieved By

Processes
People

October 27, 2015

41

Objectives Of Digital Strategy

The objectives of a digital strategy are:

Relationships And Information manage and maintain relationships with existing

external parties, provide external parties access to information on accounts and
transactions including analysis and reporting, provide personalised experience,
have a consistent message across all channels
Commerce And Transactions enable external parties transact online pay bills,
order and buy products and services in new ways
Content and Management provide external parties with current, relevant,
quality, meaningful content with easy access to maintain external party
conversation
Marketing and Communications provide external parties with personalised and
customised information and offers on new products and services based on an
intelligent analysis of their likelihood to avail of the offer
Efficiency make existing business processes more efficient, remove siloed
operation, implement cross-functional/cross-capability processes that mirror
external party interactions and transactions
Brand articulate the organisation brand more effectively
Innovation make products and services better, develop new products and
services
Profit make more money and/or reduce cost

These objectives and outcomes of a digital strategy are actualised by

technology, processes and people
October 27, 2015

42

Digital Strategy Some Questions

What parts of the business make the most margin?

What parts of the business give rise to the greatest costs?

What return are existing digital investments currently

providing?

How can digital investment increase revenue, increase

margin and/or decrease costs?

What reducible friction do our collaborators hate?

What is possible to realistically envision and achieve in 1-2

years?

October 27, 2015

43

Digital Strategy Must Fit With Organisation Brand

Strategy And Not The Other Way Around

Core Brand Strategy

Digital Brand Strategy

Digital Channels and Media

Technology, Processes, People

October 27, 2015

44

Elements Of Brand

Targeted being appropriate to the market and product set

Clear delivering an instantly comprehensible message
Desirable something customers want to have or to be part of
Unique differentiated standing out in the crowd
Meaningful matching customers expectations
Consistent across all aspects of the company
Recognisable clear, easily identified, repeatable
Actionable can be leveraged and supported
Extensible supports new products and partners

Digital must support and enhance this

October 27, 2015

45

Beware Of Digital For Its Own Sake

A potential false promise of a digital strategy is that

content will magically turn into revenue without effort

The reality is that views does not equal customers

The digital strategy has to produce revenue from all the

content and functionality

Need to concentrate resources on the greatest

opportunities to increase revenue and margin and achieve
a sustainable competitive advantage

October 27, 2015

46

Beware Of The Illusion of Outcomes

Outcomes cannot be managed, only influenced

Outcomes include:

Sales
Sales conversion rate
Revenue
Profit
Cashflow

Outcomes can only be influenced through activities:

Improved customer satisfaction
More sales activity
Greater value for money

Focussing on digital-enabled cross-functional processes is a key way to

influence outcomes and deliver value

But digital might generate a lot of activities that do not generate outcomes
October 27, 2015

47

Illusion Of Attempting To Manage Outcomes

Digital Activities

Outcomes

Develop and Sell the Right Product at the

Right Price

You cannot force

customers to buy
more products and
services

Identify the Right Customers

Fulfil Orders Correctly and Satisfactorily

Manage Customer Relationships

Sell More
Products/
Services and
More
Profitably

Generate More
Profit

Be Easy to Do Business With

Be an Organisation Customers Want to Do

Business With
Generate and Maintain High Customer
Satisfaction
October 27, 2015

But you can

make it easier for
customers to do so
with an
appropriate digital
strategy
48

Key Digital Design And Operating Principles

Flexible and adaptable for addition of new features quickly

Short development cycle for new features
Ease of static content generation and maintenance with federated and devolved
approach - COPE (Create Once and Publish Everywhere)
Focus on content and value-added information and function for positive customer
experience content and usefulness drives usage
All information available online
All transactions available online
Flexible and adaptable for addition of new features quickly
Short development cycle for new features
Measure everything
Integrated messaging across all channels
Recognise the offline customers
Digital is not a project it is an ongoing organisation-wide activity
Digital is not easy it is hard
October 27, 2015

49

Security And Privacy

Implementation of digital
strategy needs to have external
party security and privacy as a
fundamental design and
operating principle
Privacy and security represent a
trade-off
More security means greater
cost and greater inconvenience
for external parties
Need to balance costs and
inconvenience

Different views on the:

Steps to implement external

party privacy and security

Analyse security risks

Analyse security requirements and
trade-offs
Develop a security plan
Define a security policy
Develop procedures for applying
security policies
Implement the technical strategy
and security procedures
Test the security and update it if
any problems are found
Maintain security

Perceived risk of a security breach

Relative weight/importance of
privacy

October 27, 2015

50

Scope of Digital Strategy

Digital
Vision,
Strategy
and
Culture

October 27, 2015

User
Experience

Content and
Process

Technology
Platforms

Data,
Services
and
Operational
Systems

51

Digital Overlap With Customer Experience Strategy

Digital
Customer
Strategy
Business
Strategy
Customer
Experience
Strategy

Digital
Operations
Strategy

Processes

People

Tools
And
Systems
October 27, 2015

Digital
Strategy

Digital
Technical
Strategy
52

Customer Experience

Digital is largely about third-party/customer experience

Third-party/ customer experience needs to be at the heart of
digital programme
Management cite limitations from inflexible technology, siloed
organisations, and insufficient investments as the biggest
obstacles to delivering the best possible customer experience
Stated Obstacle

% Identified

Limitations of inflexible technology and application infrastructure

29%

Difficulty regularly tracking performance measures and customer feedback

24%

Don't have a consolidated, accurate, 360-degree customer view across all touch points

23%

Siloed systems that prevent us from easily sharing information or supporting continuous
processes across touch points
Siloed organisations/ conflicting key performance indicators (KPIs)/incentives between
different channels/ business units
Lack of money allocated to customer experience initiatives

18%

October 27, 2015

27%
27%
53

Customer Experience Survey Results

Oracle surveyed more than 1,300 senior executives across

18 countries in North America, Latin America, Europe, and
Asia Pacific to assess:
The financial impact of the customer experience
The challenges businesses face delivering great customer
experiences
The types of programs and initiatives that have been most
effective in delivering results
Where businesses are investing to improve the customer
experience

An independent market research firm worked on behalf

of Oracle to conduct online interviews with 1,342 global
senior executives from a wide variety of industries in
August and September of 2012
October 27, 2015

54

Europe Customer Portal Survey Key Findings

18%

18%

Average potential annual revenue lost as a

result of not offering a positive, consistent,
and brand-relevant customer experience

Formalised Customer Experience Program:

36%

Are still assessing or planning with no active

implementations

42%

Have one or more active implementations

20%

Consider their CX initiative advanced

Biggest Obstacles:
#1
#2
#3

October 27, 2015

Lack of money (31%)

Siloed organisations (25%)
Difficulty tracking performance/customer
feedback (24%)

15%

Average planned increase on customer experience

technology spending in the next two years

In the next two years, European companies will

invest in:

28% Integrated customer view across all channels

27% Business and customer analytics solutions
26% Loyalty management system
Most Successful Customer Experience Projects:

31% Implementing a technology to improve customer service

28% Building a training program/incentives for employees
27% Implementing an SLA with any customer contact

55

The Perception Chasm - Businesses and Customers

Are Worlds Apart
Business executives underestimate the importance
of the customer experience on customer behavior
49%
of executives
believe customers
will switch brands
due to poor
customer
experience

But

89%
of customers say
they have switched
because of poor
customer experience

44%
of executives
believe customers
are willing to pay
for great customer
experience

While

86%
of customers say
they are already
doing so

Executives Underestimate The Risk and Opportunity

October 27, 2015

56

Digital Operational Technology Layers

Customer Access and Interaction
Content Aggregation and Management
Extensions to Existing Systems/Data Integration

Operational Systems
Analytic Systems
October 27, 2015

57

Operational/Technology Component Layers

Layer

Function

Customer Access and Interaction

Presents information and functionality to external

parties of agreed types across agreed channels and
access mechanisms

Content Aggregation and

Management

Provisions and manages static and dynamic

information to external parties
Implements COPE (Create Once and Publish
Everywhere)

Extensions to Existing
Systems/Service and Data
Integration

Provides direct access to core data and functions of

operational systems

Operational Systems

Existing (and possibly new) business systems

Analytic Systems

Provides data analytics and campaign management

facilities

October 27, 2015

58

Indicative View Of The Operational/Technology

Components And Interfaces To Realise A Digital Strategy
Social Media Platforms

External Party-Facing
Web Accessible
Applications

Content Management
System

Process, Service and

Data Integration

xRM

Core System Interfaces

Master Data
Management

Core Transaction
Processing System(s)

Other Operational
System(s)

Campaign Management
October 27, 2015

59

Indicative View Of The Operational/Technology

Components And Interfaces To Realise A Digital Strategy

Initial architecture of the overall technology solution to

implement the digital strategy
Provides a basis for solution design
Know what needs to be done
Makes the strategy implementable
Breaks it down into achievable chunks of work eat the
elephant (in the room)

Architecture needs to be validated, enhanced and

modified if necessary by detailed design phase
Business case is for analysis and design exercise to produce
detailed solution architecture and implementation plan

Review available commercial products and tools available

Validate costs and benefits
October 27, 2015

60

Operational/Technology Layers And Their Components

Social Media Platforms

External Party-Facing
Web Accessible
Applications

Content Management
System

Process, Service and

Data Integration

Customer Access and Interaction

xRM

Content Aggregation and Management

Core System
Interfaces
Extensions to Existing
Systems/Data
Integration

Master Data
Management

Campaign Management

October 27, 2015

Core Transaction
Processing System(s)

Operational Systems

Other Operational
System(s)

Analytic Systems
61

Measuring The Return Of A Move To Digital

Pricing Improvements
Better Segmentation
Improved Sales

Faster and Cheaper Acquisition

Increased Spend

Increased Revenue

Product Groups/ Bundles

Increased Return on Marketing
Spend

Campaign Granularity
Increased Campaign Response
Rate
Client Loyalty/ Brand Affinity

Benefits Available

Improved Service

Improved Client Satisfaction

Client Tenure/ Retention

Client Referrals
Call Optimisation

Reduced Operating Costs

Service Levels
Capacity

Improved Operating Efficiency

Campaign Cost
Reduce Marketing Costs
Product Catalog Size
October 27, 2015

62

Measuring The Return Of A Move To Digital

Agree and implement a measurement framework and

associated data collection and gauge success of digital
initiatives

October 27, 2015

63

Creating A Digital Implementation Statement Of

Direction

Creating a well-defined statement of direction for a digital

investment involves:
Defining vision and guiding values for digital exploitation
Define a business strategy that incorporates the use of digital to
achieve business results
Defining a digital functionality roadmap/high-level schedule
Describing a digital reference architecture
Assessing organisation readiness for digital
Identifying the skills gaps that need to be filled
Managing internal and external expectations
Producing a business case that draws this information together
with identified and quantified benefits
October 27, 2015

64

Iterate Through Digital Initiatives

Iterate through
digital initiatives,
starting small and
focussed, learning
from experience
October 27, 2015

65

Digital Functionality Delivery Roadmap

Defines, prioritises and creates an integrated schedule for

the delivery of digital functions and related required
enabling technologies for a agreed time frame
Need to agree the prioritisation process
Roadmap is always subject to constraints such as budget,
resources
Dependencies can be identified and tracked
Capability roadmap can be grouped by business area or process
group, external party or channel

October 27, 2015

66

Digital Functionality Delivery Roadmap

Year 1
Q1

Year 1
Q2

Year 1
Q3

Year 1
Q4

Year 2
Q1

Year 2
Q2

Year 3
Q3

Year 3
Q4

Channel
External
Party
Business
Domain
External
Party
External
Party
Business
Domain
External
Party

Channel

Channel
Channel
Channel
Channel
Channel
Channel
Channel
Channel
Channel
Channel

Technology Dependencies
Technology Initiative 1

Technology Initiative 2
Technology Initiative 3
October 27, 2015

67

Digital Reference Architecture

Digital Reference Architecture defines a template solution

for the underlying and enabling technology solutions and
components required

Reference Architecture defines the target end-state

architecture and the set of interim transitional phases
required to enable the delivery of the Digital Functionality
Delivery Roadmap

Digital Reference Architecture exists within the context of

the organisations Enterprise Architecture and other
subsidiary architectures

October 27, 2015

68

Digital Reference Architecture In Context

Enterprise Architecture
Information and Data Architecture

Information
Systems
Architecture

Solutions
and
Application
Architecture

Business
Architecture

Technology
Architecture

Digital
Architecture

Service and
Integration
Architecture

Security
Architecture

Enterprise Architecture needs to be involved in the development of digital

architecture
Digital architecture needs to be at the core of the organisations wider Enterprise
Architecture
October 27, 2015

69

Digital Reference Architecture

External Party Interaction Zones, Channels and Facilities

Digital Specific Applications and Tools

Internal Interaction Management
Security,
Identity ,
Access and
Profile
Management

Responsive
Infrastructure

Integration

Operational and
Business Systems

October 27, 2015

Applications Delivery and

Management Tools and
Frameworks
System Development,
Deployment and
Management
70

Digital Reference Architecture

External Party Interaction Zones, Channels and Facilities the set of facilities and
applications that are presented to those external parties being interacted with
and the channels used
Security, Identity , Access and Profile Management internal and external
security tools and processes
Responsive Infrastructure digital application deployment and operating
infrastructure
Digital Specific Applications and Tools the portfolio of specific tools acquired to
deliver and operate digital functions
Internal Interaction Management the set of internal applications that are used
to manage external party interactions
Integration the data, service and process integration layer and associated APIs
Applications Delivery and Management Tools and Frameworks set of tools used
to deliver and manage digital applications
System Development, Deployment and Management the digital application
development facility within the organisation
Operational and Business Systems the existing organisation operational and
business systems
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Digital Reference Architecture

The objectives of a digital (or any reference) architecture are:

Consistent, personalised and rich user experience across all channels
Reliable and resilience operation
Ease of management and administration
Integration of data and services from multiple sources
Ease of development and deployment of new services
Collection of usage information for analysis

This means:
Federated operation with support of multiple services
Ability to unify services for delivery
Standard and powerful approach to integration
Management and administration tools
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Digital Reference Architecture Service Catalog

Services here mean functions/offers accessed by external

parties

Consider a facility to author and manage functions/offers

and enable access by defined set of external parties

Link services to xActor data models defined earlier

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Digital Reference Architecture In Context

An enterprise digital strategy exists in a wider organisation and

IT context

The organisation will have an overall IT strategy to accomplish the

organisation strategy and associated objectives
The IT function will then need its own internal IT strategy that will
structure the function in order to ensure that it can deliver on the wider
organisation strategy
The enterprise digital strategy is connected to the overall IT strategy,
the enterprise architecture and the internal IT strategy
The enterprise digital strategy will be implemented and operated
through an digital architecture that is part of the overall enterprise
architecture
This context is important in ensuring that the enterprise digital strategy
fits into the overall IT and wider organisational structure
The enterprise digital strategy exists to ultimately deliver a business
benefit and contribute to the achievement of the business strategy
The strategy must be translated into an operational framework to
enable the strategy to be actualised

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Digital Strategy In Business And IT Context

Required
Operational
Business
Systems

Business
Processes

Systems
Design/
Selection

Business
Strategy

Business
Objectives

Business
Operational
Model

Business IT
Strategy

Enterprise
Architecture

IT Function
Strategy

Management
And
Operations

Systems
Design/
Selection

Required
Support
Business
Systems

Digital
Strategy

Digital IT
Architecture
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Solution
Implementation
and
Delivery

Required
Operational
Processes
75

Organisation Readiness For Digital

Like all major organisation transformation programmes

implementing digital initiatives will change the
organisation
Cross-functional and business process changes
Technology delivery changes

The organisation must be ready for digital in three ways:

Be able to deliver digital initiatives that comprise the strategy
Be able to change itself to enable the implementation and
operation of digital initiatives
Be able to operate digital initiatives

Need to assess the current state of the organisation, its

readiness for digital and what is needed to achieve the
desired state of readiness
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Organisation Readiness For Digital Assessment

Framework
Organisation Readiness For
Digital

Digital Programme
Delivery and Execution
Digital Management and
Governance

Delivery Approach,
Methodologies and
Processes
Delivery Team Roles
Delivery Organisation
Structure and Change
Management
Delivery Transfer to
Production Operations
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Digital Operations

=
=
=
=
=

Operations Management
and Governance

Operations Business
Process Use and
Management
Operations Team Roles
Operations Organisation
Structure and Change
Management
Operations Service
Delivery and Management
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Route To Digital
Digital Transition
And
Transformation

Digital
Architecture
And IT Strategy

Digital Execution,
Delivery and
Operations

Business Strategy

Digital and IT
Strategy

Digital Capability
Delivery Roadmap

Vision and Guiding

Values for Digital
Exploitation

Organisation
Readiness For
Digital

Digital Solutions

Digital Architecture

Supporting
Solutions

Measurement
Framework

Measurement and
Reassessment

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Digital Organisation Capabilities

Organisational
Capabilities for
Digital

Strategy,
Culture, Change
and
Governance

Digital
Architecture

Digital Solution
Delivery

Digital
Operation

Customer
Experience

Analytics and
Insight

Digital
Technology
Foundation and
Infrastructure

External Party
Interaction
Zones,
Channels and
Facilities

Personalisation

Programme
Management

Service Delivery
and
Management

Research and
Analysis

Single View of
the Customer

Infrastructure

Digital (and
Other) Solution
Governance

Content
Management

Security,
Identity ,
Access and
Profile
Management

Portfolio
Project
Management

Service
Analytics

Marketing and
Advertising

Analysis and
Reporting

Security

Organisation
Change for
Digital

Responsive
Infrastructure

Digital Specific
Applications
and Tools

Business
Analysis and
Engagement

Organisation
Management

Design

Data Collection
and
Management

Integration

Process
Management

Internal
Interaction
Management

Integration

Tool Selection
and Delivery

Capacity
Planning

Usability

Customer
Segmentation
and Insight

Enterprise
Architecture

Operational
and Business
Systems

Applications
Delivery and
Management
Tools and
Frameworks

Solution
Architecture

Digital Strategy
Development

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System
Development,
Deployment
and
Management

Customer
Journey
Management

Service Delivery
and
Management

Solution
Delivery
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Digital Organisation Capabilities

What the organisation needs to be good at in order to

develop and deliver on a digital strategy
There is substantial overlap between these skills and those of
other programme delivery

Framework to measure where you are and where you

need to be

Develop framework in relation to the digital strategy and

what you intend to achieve

Use to develop plan to address gaps

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Digital Organisation Capabilities

Organisational
Capabilities for
Digital

Strategy,
Culture, Change
and
Governance

Digital
Architecture

Digital Solution
Delivery

Digital
Operation

Customer
Experience

Analytics and
Insight

Digital
Technology
Foundation and
Infrastructure

External Party
Interaction
Zones,
Channels and
Facilities

Personalisation

Programme
Management

Service Delivery
and
Management

Research and
Analysis

Single View of
the Customer

Infrastructure

Digital (and
Other) Solution
Governance

Content
Management

Security,
Identity ,
Access and
Profile
Management

Portfolio
Project
Management

Service
Analytics

Marketing and
Advertising

Analysis and
Reporting

Security

Organisation
Change for
Digital

Responsive
Infrastructure

Digital Specific
Applications
and Tools

Business
Analysis and
Engagement

Organisation
Management

Design

Data Collection
and
Management

Integration

Process
Management

Internal
Interaction
Management

Integration

Tool Selection
and Delivery

Capacity
Planning

Usability

Customer
Segmentation
and Insight

Enterprise
Architecture

Operational
and Business
Systems

Applications
Delivery and
Management
Tools and
Frameworks

Solution
Architecture

Digital Strategy
Development

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System
Development,
Deployment
and
Management

Customer
Journey
Management

Service Delivery
and
Management

Solution
Delivery
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Bringing It All Together

Dimensions of Digital
Strategy

Objectives
of Digital
Strategy

Digital
Organisation
Capabilities

Operational
Layers and
Components

Measuring
The Return
Of A Move
To Digital

Route to Digital
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Bringing It All Together

Use the different facets of digital analysis and impact

assessment described here to generate a comprehensive
and realistic understanding of what digital means, what a
move to digital involves, requires and what it will deliver

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Reduce The Risk Of Your Dive Into Digital

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Summary

Remember that technology generally accelerates existing business momentum rather than
being the originator of momentum
Digital is not a panacea
Know what you mean by digital and have a common understanding to avoid confusion
You need to be realistic about what can be achieved
Follow the value
You need to understand the enabling technologies and changes to existing system needed
to make the implementation of a digital strategy work
Digital architecture needs to be at the core of the organisations wider Enterprise
Architecture
Digital reduces the expected and tolerated latency and the asynchronicity of
communications between the organisation and external parties
Dont let your digital strategy be crushed by the weight of internal and external
expectations
Digital interactions with third parties gives rise to expectations
Digital will make weaknesses in business processes and underlying technology very evident
very quickly
Iterate through digital initiatives, starting small and focussed, learning from experience
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