 So a warm welcome, please, for Daniel Spar and Kevin Corcoran. Thank you. Thank you. Leveraging EA for digital transformation. This is taking up a level from what Johann just spoke about. It's incredibly important. It's a great theme for the open group to embrace because it truly is disrupting the industries across the globe. What we're going to do is we're going to break this down into three basic parts this morning. Talking about leveraging digital technology, the nuts and bolts of it. What we're going to do is pull from our research. We essentially engaged over a thousand global 2000 firms. We do this every year. We gather extensive data with CXOs, CIOs. We pull them, we interview them, and we pull out some of what we refer to as the key technology trends. We're going to touch on eight of those because it's really important as builders, designers, and architects, it's important to understand the elements associated with transformation. So we're going to touch on that. Also, since the theme of this conference is about digital transformation, we're going to talk about defining it and we're going to talk about some disruptors. Some of those disruptors can be quite scary in an industry, but really what we're going to do is define how they can provide architects and industry opportunities. And then lastly, Dr. Sparr is going to finalize with our operating model and we're going to close out the session with a Q&A. Digital strategy. What is digital transformation? Jeff Bezos has a great phrase that he uses with his firm. We need to slow down the death of Amazon. And really digital transformation is about future-proofing your business. And when you think about it, it's absolutely critical because your digital technology has to align with innovation. I really liked how Yoan talked about some of the open standards associated with APIs, the API economy, understanding not just your organization but the ecosystem in which your company operates. And what we're seeing is a tremendous amount of disruption in that space. And then we also work closely with MIT Media Labs, Lincoln Laboratory, and Singulary University. We talk about the exponentials. These are the macro-level factors that are impacting the world that will impact your strategy, planning, and design as an architect. So it's really important to understand what we refer to as the exponentials are, what the disruptors are, and how you can perform more effectively in the market. So let's talk about some of the disruptive forces. So eight disruptors in this instance. So we start with the consumer. We all know, based on the proliferation of the smartphone, consumerization of the enterprise. So when we look at businesses today, how many of you have been in a briefing where the expectation of your end users is that I compare it to, well, I have this on my smartphone, why can't I get this in my enterprise? How many people experience that when you talk about an investment, when you talk about innovation? Just a quick show of hands. So what we're seeing is increased consumerization expectations, a greater tie to the consumer. We're even shifting the mindset from what we consider the end user experience to the human experience. The human experience has a more emotive quality to it. What emotion are you trying to draw out of a transaction within your enterprise? Not just in the commercial space. Talk about the global income gap. What we're trying to do is get ubiquity with the solutions that we deliver. We want to make sure that it's universally applicable. It's extensible. When we talk about digital transformation and the definition, we talked about scalability. That scalability is building and designing solutions that drive to a very diverse population. So that's very, very important. Let's go to the bottom part, the competition. We have to think about the disruptors. My organization, our tagline is, imagine, innovate and disrupt. So first you have to imagine, you have to then understand who the disruptors are. It's good to disrupt, but you can often be disrupted. Who knows the largest retail real estate hospitality industry right now in the world? Airbnb. It's Airbnb. They didn't even exist eight years ago. Excuse me? You said something about assets? Do they? That's the point of disruption because the way that you monetize assets, digital assets, the digital economy, cryptocurrency, all different ways to disrupt industries, fundamentally an industry disruptor. Also looking at nontraditional providers of services. If you look at Amazon, they are now viewed as an infrastructure provider. They are viewed as an analytics firm. They are viewed in the retail sector. So increasingly you have less and less boundaries to your competitive landscape. So how do you, as an architect, as a designer, how do you navigate through that increasingly complex and confusing landscape? So it's really important to understand those disruptions. Configuration. I'm going to touch on the skills piece because that's probably most important. There really is a war for talent in the competitive landscape to get the right resources. We're seeing, in some cases, an aging workforce. We're seeing a workforce that cannot keep up with the strategic imperatives in the technology space. So it's incumbent upon this group and others to make sure that you're training and retaining the absolute best talent because you could have the best strategy in the world if you don't have the workforce and if you don't have the culture to drive your digital transformation strategy, you're not going to be able to get there. It's like we say in Silicon Valley, culture will kill strategy every day. You have to have the culture first. And then lastly we talk about the macro forces at play in the technology environment, the changing climate, the investor pressure, the changing expectations associated with the triple bottom line. So you want to make sure that you're driving against investor expectations which continue to change. Sorry, this isn't... Okay, there we go. So we break it down into three areas. When we talk about digital transformation, we break it down into three areas. We talk about digital experiences first. Digital experiences are how we engage with our customers. That could be at the enterprise level. That could be at the consumer level. Then we talk about digital at the core. The digital at the core is taking your enterprise and making it more intelligent, making it an elastic sensing organization. When Johann was talking about machine learning and AI, we see that pervasive in every successful digital strategy. If you do not incorporate that and you do not take into account the disruptive nature of AI and how it's actually displacing elements of the workforce in actually some positive ways. Because, for example, in oil and gas, it allows you to operate at a higher degree of abstraction. So a lot of the tasks that are typically performed on a manual basis and considered a low-scale automation basis, RPA, Robotic Process Automation, is a great example of that. That's not particularly intelligent, but it's a great precursor to get into more AI machine learning infused processes. And the open group is doing a great job with RPA, and I would love to see them continue to drive on the AI and the machine learning frontier as well. Because that really goes to the next piece, which is the digital horizon. What are the next set of disruptors that you're going to grapple with to really create and drive value in your organization? That's absolutely critical because at the end of the day, this is about value creation and it's about competitive differentiation. And if you can't achieve that by managing through all of these disruptors, you will be that organization that gets disintermediated by an Airbnb. So that's why it's so important to really understand and grapple with the changing aspects of digital transformation. And so we come up with this term digital vanguards. And what does the data tell us? The data tells us that there are certain decisions and behaviors that make you a more digitally agile organization. So we look at prioritizing innovation. I've touched on it a couple of times already. 43% for baseline, 57% for digital vanguards. Focusing on change and growth rather than building out the stack, 62 to 43. Big gap there. So the budget is allocated to drive innovation. When I talk with CIOs and CXOs, it's really a struggle for a lot of their organizations to get out of the day-to-day operations and maintenance costs, which consume so much of their budget. But in a time of abundance and in a time when we see macro trends like network storage and compute costs going down, we have to take those abundance opportunities and really figure out how we can leverage innovation. So we should be able to do more with the same and then prevent rising costs, and then the difference between that margin should be driven into innovation. And then lastly, the CIO has to own the digital strategy, and then his entire organization has to own the digital strategy in order to drive digital transformation. If you do not get that organizational alignment, you won't meet your objectives. So what are the other pieces? I talked a little bit about the war for talent and the importance of culture and how quickly technologies and the skills to support, drive, and build the next enterprise in your digital transformation are absolutely critical. When we look at attracting and retaining top talent, number one thing, and when you talk to most CXOs, they say, hey, I have two things I'm most worried about. The war on talent and the competition for our customers or our market. Those are the two biggest things. And unfortunately, we hear those words a lot and it's not appropriately addressed in our digital transformation strategy. So this has to be a fundamental component of your digital transformation strategy. So tech talent, all aspects of building your organization of the future. A lot of times organizations do not move towards where the organization wants to head in the future and you start recruiting and retaining a workforce that is good for your current state. So think of transforming also your workforce because you cannot have digital transformation without a fundamentally transformed workforce. Absolutely critical. And then when we talk about investments, we talk about confidence, does your architecture today actually support future-proofing your business? Does it support innovation? And often what I hear are processes or our architecture is too brittle to really face what we need to move towards in the future. So how do you get out of that brittle architecture? How do you move and become a more agile, digitally transformative organization? We talked about AI and machine learning in a number of instances. I think this is part of not just an immediate tech trend, but this is a trend that we see expanding in what we refer to as the digital frontier. And then lastly, the cyber piece. This is really, really important because this is what a lot of organizations are spending a disproportionate amount of their resources on today to remediate the deficiencies that they have in their enterprise. So enterprise security, architecture, security by design, embedding within your organization. If you don't have those basic fundamental tenants of cybersecurity built into your organization, you're going to be at a distinct disadvantage remediating any of your cyber-related incidents. It's what we refer to as organizational resilience. If you have the appropriate level of resilience, you can now innovate. It's an essential building block to drive your organization forward. Lacking that resilience, you'll have a very, very tough time driving digital transformation. So I mentioned eight what we refer to as tech trends. These are what we view as key trends that are going to impact us in the next three to five-year horizon. You have to understand that the pace of change is accelerating year over year. If you see reports that provide a forecast five to ten years, I would challenge that a lot of the observations and conclusions will be dated within 18 months. It's just the cycle of the business that we're seeing today is so rapid that you have to understand the implications of those macro forces. I touched on the lower cost of network storage and compute. It continues to drive downward. We see increased commoditization of services. We really see the migration from infrastructure as a service, platform as a service, software as a service. We are very close to really seeing pervasive what we call IT as a service, which is going to be AI and machine learning driven. It's going to be self-healing, it's going to be resilient, and it's not too far away. There's a lot of organizations that are successfully experimenting with it right now. So that's something that's really, really important to put on your horizon. So when we talk about that architectural vision, that vision has to include that component, as well as all the aspects of AI. You could have a whole separate session about the benefits of AI, the disruptive nature of AI, absolutely critical to respond to that change. Who's familiar with NOOP, serverless constructs? So more and more what we're seeing is an increased abstraction of provision of services and provision of network. So we're going to be getting more and more out of the business what we said earlier that running the O&M, it's really important to understand that that NOOP's environment is going to drive opportunity. It's going to drive opportunity because it's going to free up your IT teams to perform higher order work and drive more of a value proposition. Talked about connectivity, so Internet of Things. Again, this is an area where we're seeing a lot of value creation and unintended second and third order impacts associated with increased connectivity We talked a little bit about the API economy, as well as intelligent interfaces, so not just open standard APIs, but intelligent APIs, intelligent interfaces. Beyond marketing, again, I don't know how relevant that is to this audience, but DevSecOps and the Cyber Imperative, absolutely, particularly emphasizing cyber resiliency, building in a cyber resilient architecture, absolutely critical. And then lastly, mapping your vision to the appropriate digital frontier. I'm going to be mindful of the time. I'm just going to go real quick through digital strategy. Again, what we do when we look at digital transformation first and foremost is the value creation and the future proofing of the business. We really want to identify the key business priorities, the key business challenges, drive through measurable outcomes, so what we call the impact. What is the impact to the business? What is the impact to the customer? What is the impact to the market? And how can you either disrupt, innovate, or take a competitive market share of your competition? Leveraging the digital strategy, Dr. Spar is going to touch on this a little bit more in terms of connecting the current state to the future state, and I'm going to hand it over to Dan and he's going to bring it home. Thank you, Kevin. Well, I'm going to be mindful of the time, so I'm going to cut my next three hours down to two and a half. Okay, so I'm the man between you and the coffee break, so let's cut to one of the tricky questions. As architects, and this is an architecture conference, we hear a lot of people in our business talk about our need to digitally transform, but how do we make it happen? Any of you dealing with this challenge right now? So how do you make it happen? Well, one of the challenges is you've got many different stakeholders who see the world in different ways. You have some top-down perspective as people think about what consumers need and what the strategy should be, and you've got some bottom-up perspective as well. We've seen already several topics today from Johann and Kevin that speak to some of the ways we need to think more top-down and some of the ways we can solve the problem bottom-up, and it's architecture that can bring the two together, but usually it's through a confluence of different types of architects. How many of you have had the challenge of the word architect being misunderstood in your organization? Okay, you're going to get a lot of exercise from these questions, right, because I mean, we're all experiencing that. Well, what we see in a lot of organizations when we go there is the word architect is used so ubiquitously, it almost has no meaning anymore. So what we really try to do is clarify some of the roles and enterprise architect should be having that strategic breath, but projects typically are implemented by solution architects with the assistance of technology architects. So you've got the city planner, the building designer, and the electrician. They all have different perspectives, and that's something that Zachman spoke about in his framework way back in 1978. However, what's very important is not for one architect group to be dismissive of the others, and oftentimes we see that because solution architects say, enterprise architects have great ideas, but they're in an ivory tower. I don't know how to use what they provide. So it's very important to recognize that without a clean handoff between each type of architect, the work won't be done according to plan, and that's why it's so important to leverage architecture models and frameworks so that way the ambiguity is removed. One of the other things that we see when we meet with CXOs is they speak about a grand vision, and then Kevin and I will meet with the CIO, and the CIO will say, I would love so much to be doing some leading edge digital work, but they don't trust me because I can't get the email system to run. They don't trust me because SAP is not working properly and I'm 18 months behind, so they don't want me to be their digital transformation leader. Sounds like from the reaction some of you have seen that as well. So one of the things to think about in digital transformation is there going to be different levels of maturity. Now there's the idea of multi-speed IT where you can approach multiple initiatives, but I think as Johann said, the common denominator for all of these is going to be the data. So if you can really put a focus on understanding what data you need, at least fix the data in the fundamental defensive corner and then you can leverage it in some of the more aggressive, offensive, expansionary approaches. We talked about the role of architects. It's so important that architects recognize their role is to define with structure and remove ambiguity. One of the challenges though is that the more structure you put into a model, the harder it is for business people sometimes to understand it. But if you start at the business architecture with a real focus, you define the concept of operations up front in some graphics, using some ideas possibly from the DoD architecture frameworks, operational view one, that's described also in TOGAP in the business architecture. Use some ideas, describe your concept of operations, identify a complete set of stakeholders and their relationships with each other, define the capabilities that you're trying to create. These are things that architects can lend structure to and business people can contribute to and recognize the value from right away. And then come up with test cases at the time that you think of the representative scenarios. I've seen so many architectures where I've been asked, can you review this and give us some feedback? And I'll say, great, what's the architecture intended to do? Well, you know, just kind of guide us. Really guide you to what? What would be a test case? Tell me a representative scenario, something you need to do. So get a library of those. They guide you up front and they let you validate the architecture in the backside. It's very similar to what you see in the agile world of test-based development. Thinking about the supporting processes and data would be a natural follow-on from capabilities and then mapping them to the systems. So quite a bit that architects can do. Capability mapping is a really popular area. This isn't meant to be readable because it's real work, but the idea here is take a look at the business capabilities that exist today and recognize how well are they supporting the transformation the organization needs. You can heat map it with colors and then take a look at the applications and say, in the lower left, how well are the applications supporting the business capabilities? And then, how healthy are the applications? So three quick heat maps, understandable by business and the reason why I'm really emphasizing that point of understandable by business is that without the business being closely linked with the architects, you're in a tangent and the work is not going to be valued. So this is the way to not only make the work valued, but make the work correct. By giving architects a role that more and more helps define the strategy, then that world of intersection that Kevin described between business and IT with their overlapping strategy can come to fruition. We've all seen the different layers of the enterprise architecture and we've talked about how the current state and the future state need to be gap analyzed so the transformation can be created. Same thing with digital. What's critical, though, is consider the line of sight. What business architecture elements or capabilities and stakeholders call on what aspects of application architecture, calling on what data, running in what infrastructure and then the backplane of security and how is all of it secured. So as you think about your future state, think about moving there in milestones as per traditional TOGAP methodology with the ADM. Think about... Excuse me, I get all choked up when I talk about architecture. But think about how you can evolve in milestones achieving the digital objectives that we spoke about so far. Security has come to fruition to no longer be recognized as an afterthought and one of the very helpful aspects of security is that it's caused a forcing function for organizations to consider all aspects of the enterprise architecture that in the past they weren't considering. Because of security, because of security having to be addressed more holistically, approaches such as SABSA and this is the SABSA-Zachman framework overlay where they identify different components of an enterprise security architecture. And because of this SABSA work, along with the open group, you're seeing that there's a recognition that if security is to be done right, you need to understand it across all layers of the architecture and across all viewpoints. And that's actually a gift for enterprise architects because it's absolutely reinforced that you can't perform security without enterprise architecture. In the United States, the National Institute of Standards and Technology, NIST, set out comprehensive guidelines in their 800-53 document, which is a gold stated for security around the globe. And in it, they explain, you cannot have security without an enterprise architecture. I'm a former Army guy. We were always told, build a perimeter, secure a perimeter. Well, most organizations are trying to secure a perimeter that's not defined. Well, how are you going to define that perimeter? Have some architectural components. Follow some guidance from SABSA TOGAF and you'll create a perimeter that you can begin to lock down. Artifacts that I described earlier, this is just a small representation. The idea is capture the knowledge in a structured way and there's a lot more you can do with it. One of the things that you heard in Kevin's talk is that you can't achieve a digital transformation without a focus on the operating model. We see a lot of organizations and they think, well, if we create a different customer experience, we're digital now, right? But that's not the end of the game. You need to think externally for customers and partners, but you also need to think internally, are my employees experiencing a different digital environment in the way they perform their work? Just because our company produced a better looking web page that allows some digital functions, that doesn't mean we've transformed the way our employees do our work. And the third piece is have we changed our operating model for the way that we form teams, for the way that we iterate through projects, for the way that we recognize what success needs to be defined to look like. And that's a lot of the culture that Kevin spoke to earlier. So it's not enough to just externally make a few changes for the customers. You've got to change the way employees do work and you've got to change the way you're organized around that. Typically in enterprise architecture, we talk about an operating model being federated where ideas that are necessary to be propagated throughout the organization come from a central group and autonomy is granted elsewhere. But you need more than just the traditional enterprise architecture operating model to achieve the digital transformation we just spoke about. Most stakeholders are going to think, in essence, what's in it for me? And if you don't have a clear answer of what's in it for me, for every major stakeholder, what they need to provide and what they need to receive, then the operating model hasn't been thoroughly vetted. Last concept is DevSecOps is getting a lot of attention and it's not enough to just build, to vision and then architect a digital transformation. You need to operate with a digital transformation and to operate with a digital transformation, you need to consider all the operating model concepts I just reviewed combined with the concept of DevSecOps, bring together the DevOps methodology with security and recognize that that's a critical piece of ensuring ongoing digital transformation success. So in summary, the world is changing. You knew that before you came here. Hopefully, though, you have a few more structures you can use to get your arms around that change. Business strategies and IT strategies are converging at digital. Enterprise architecture gives you the structure to model what that looks like today and in the future. And the operating model is the vital piece that's usually ignored but means the difference between an architecture succeeding or an organization largely staying the same and that just being considered this year's effort. So vision the idea, architect the idea, operate the transformation. Quite a few questions came in. First one for Kevin. You quoted that 26% of digital Vanguard enterprises allocate budget to IT innovation as opposed to 18% of non-vanguards. Isn't it surprising that 74% of vanguards don't budget that way? That's a great question. I think what you see is it's a tale of two cities. You have organizations that fundamentally embrace innovation and invest in it. There's a lot of organizations that we survey and have involved discussions with. They talk a lot about innovation. It's what I would consider an economy of effort when you look at it from a budgetary standpoint. And unfortunately they are not making the sufficient investment at scale to really move the lever in terms of an innovative organization. Okay. Can you say a little more about, you referenced sometimes the different types of architects and architecture disciplines don't always value each other or see eye to eye. Can you say a little bit about how you might go about orchestrating that or getting them to play nice? Well, that's a great question and that's really the key of an operating model. I would say one of the most important things to think about is how does your organization actually complete their work? How do they actually perform their projects? What should be the role of the city planner, the enterprise architect? How can their role become more guidance than governance? Because no one likes the governance police. So how can you recognize from your organization what would a project team value as input from the enterprise architect city planner that the solution architect says, that's really helpful, I could really use that. One thing we've seen commonly succeeding in that area is a collection of reference models. If you have some reference architectures and reference models that are the right way to solve problems across each domain of the architecture, then a solution architect says, you just made my life easier, you're welcome to the table anytime. That's a little what we're seeing in the open group is activity on reference architectures and models to take it down another level. And for each of those roles to clearly convey their value proposition to the organization, a lot of times what we see is great work, but not a clear linkage to the business to demonstrate value because it really is the articulation of the value and making a fundamental impact on the business. Right, absolutely. Besides technology innovation and cultural change, the operational model needs to change, we've just been talking about. How, I've got to turn this around, how should this be handled in a digital business transformation? It actually says how business transformation and digital product services should be handled? Well, there's a couple of ways you can look at it. One, from a cultural perspective, if you're taking on agile, a very creative process, human-centered design, human experience-driven processes, one, you need the right levels of creativity. You need the appropriate culture, safe environment. You often hear with both innovation and creativity, the ability to fail fast, fail forward, be reflective on that. Again, having the right incentives in your organization, you want to make sure you have appropriate role models and leaders in all facets of the organization that support that creativity and innovation. Often what we see is innovation starting at lower levels of an organization, and sometimes it becomes stifled because there is an appropriate executive or mid-level support to drive some of that innovation. I would just add that in some organizations, it's like trying to turn the aircraft carrier. It's not going to make a U-turn. So what's ideal is take everything that Kevin said and see if that can be set up in a pilot area or a pilot project, because the reality is you're not going to see a top 10 bank completely change the way they do business over the weekend, so develop pilot projects. You've seen some of the larger banks in the U.S. very successfully move toward FinTech, which is essentially a digital transformation in the banking world, by creating separate units with separate reporting structures almost completely removed from the bank so they're able to produce a different culture and environment. Kind of prove it first. And they did. Kevin, you mentioned the battle for talent as a key differentiator. What do you see as the critical elements in the development of a digital workforce? Sure. One, it's a diversity of experiences. In our organization, we start from the very day someone walks in the door to make sure that they embrace what we view as a digital native. So that's the cultural piece that starts at the beginning. It's making appropriate investment in the workforce. It's also having a sufficiently flexible what we consider the workforce of the future model. You may have some individuals that are more on a freelance basis, so you're going to have this. So this goes to the ecosystem that I mentioned. You're going to have this semi-permeable layer between your enterprise, your organization, and external actors, partners. So you create ecosystems of talent, and as you need to draw that talent in, you bring it in as you need to diminish that number. You can move those individuals around your organization. That also provides a diversity of experience, developmental roles, and again, it's the investment at every professional level that we find, particularly with millennials. We find that it's absolutely critical to give them a diversity of experience in the digital transformation space. I'll give a shameless plug for an activity in the open group, a digital practitioner's work group, which is looking exactly that and working on a body of knowledge to be a digital practitioner going forward. That's expected. It's in second snapshot right now, which is open group speak, for this is roughly what it looks like, comment and looking for a full version of it later this year. That's great. Let's see. How would a digital reference model fit into a strategy? A digital reference model? A digital reference model can have some parameters around it. Are you looking for a digital reference model to define the organization of the future? If so, that may be oriented more at the business architecture level, but it will succeed best when it's accompanied with reference models that speak to what are the application functions needed to support that new business operating model? What are the categories of master data objects that will support that? I don't know. I don't know. I don't know. I don't know where it may fit into from an infrastructure standpoint. But I would say at the end of the day, even though we're moving towards digital reference models, you still have stakeholders, you still have capabilities, you still have scenarios, and those all should be thought of as you move towards what it means to now perform this more digitally. What you will get is you'll get what you need to move towards. Great. I like that answer. That's great. So, we are kind of out of time, but in practical terms, have you any tips on how you get this balance between the... You talked about it specifically, Kevin, the balance between the day-to-day operations, the funding going into that, as opposed to being able to invest in digital transformation and innovation. Can you go about freeing up some of that investment or some of that? Well, first, we find that fear is a pretty important emotion in this, and if a company does not have a digital transformation strategy, it is an existential threat to that organization. So that's the first piece, is framing the speed and the severity of the change, the disruptors that we talked about. Can I even tell you how many times either at the CXO or board level when you lay down the future of work or the future of a particular market and all of the disruptors that are impacting them and the potential impact on market or shareholder value, it really wakes them up and then you have to prioritize what investments that organization can make. What we often find is it's not the monetary resources, it's the talent and then it's the absorption capacity of the organization to actually make some of those changes. So it's getting those elements in sync, making sure you have the right resources in terms of people and funding but also changing the culture and making sure that there's an organizational disposition to accept rapid prototyping to potentially have a competitive R&D organization to make sure that there is safe, what we call safe recognition of internal competition, that you will have some winners and losers in the prototyping process but that is okay because that's at the heart of innovation. Not everyone can win. No. Gentlemen we'll leave it there because I see some thirsty people out there but thank you both very much for your insight. So round of applause please for Dr. Dan Spahn, Kevin Paul.