Digital Transformation Architecture - Right Practice #4

In this article, I discuss one of the biggest challenges of digital transformation and propose a "right practice" solution.

Challenge

Enterprise Architects and Solution Architects are concerned with creating digital solutions that are reusable, secure, integrated, and portable. On the other side, some agile advocates consider architecture as a burden and favor abandoning enterprise architecture in order to accomplish a successful agile transformation program. This conflict leads to confusion in investment plans.

Market General Approach

Enterprises adopt multiple but somehow similar frameworks and methodologies to concentrate on controlling their digital transformation programs. These frameworks include a wide range from No Architecture to Enterprise Architecture, Business Process Management, Risk Management, Business Architecture, Data Architecture, Applications Architecture, Business Operating Models, Technology Architecture, Service-Oriented Architecture, Portfolio Management, Project Management, Agile Methods, Business Analysis, Change Management and so on.

These frameworks are mostly not aligned with each other within enterprises, reasonably resourced, and effectively implemented.

Right Practice

Leading Chief Architects are more interested in designing a resilient enterprise capability that ensures a data-driven decision-making business environment while supporting integrated continuous solution delivery with [ideally no but really] minimum interruption to business performance.

This enterprise capability is responsible to guide enterprise changes at any level to ensure that all changes are aligned with the overall business strategy and architecture.

Digital Transformation needs Architecture

The discipline of Architecture is concerned with the building blocks and relationships of a specific context. In a modern business environment, it is crucial to know where all business building blocks are, how they are managed, and how these components are connected with each other in order to deliver business value to customers, staff, partners, and shareholders.

and Finance Decision Making Has To Change

Traditionally, most CFOs try to reduce the number of investments that do not fulfill the leadership expectations. Therefore, their teams focus heavily on appraising the business cases that make the leadership sure that they do not bet on the wrong horse. This is a defensive approach that slows down the growth of even successful enterprises.

WHAT IF ....

... CFOs let their teams concentrate on investments that promote drastic growth measures like what Digital Transformation through enterprise architecture promises. To achieve the complete potential of digital transformation investments, they start to focus on designing a decision-making environment in which investments will work and digital transformation will exceed leadership expectations.

To design such an environment, CFOs will Encourage [external] risk identification as a core part of appraising business cases and Provide resources and funding for “highly possible to achieve” digital transformation programs.

In this newly designed environment, with the guidance of enterprise architecture, CFOs Enable making funds available for exploratory initiatives QUICK, Identify funding adjustments EARLY, Cancel underperforming investments FAST, and Redirect funds to in-progress programs that need more resources NOW.

Happy to discuss this further if it makes sense to you. Or even if you disagree, share your thoughts on this.