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Why EA Needs to Be Part of Your Digital Transformation Strategy

Enterprise architecture (EA) isn’t dead, you’re just using it wrong. Part three of erwin’s digital transformation blog series.  

I’ll let you in on a little secret: the rumor of enterprise architecture’s demise has been greatly exaggerated. However, the truth for many of today’s fast-moving businesses is that enterprise architecture fails. But why?

Enterprise architecture is invaluable for internal business intelligence (but is rarely used for real intelligence), governance (but often has a very narrow focus), management insights (but doesn’t typically provide useful insights), and transformation and planning (ok, now we have something!).

In reality, most organizations do not leverage EA teams to their true potential. Instead they rely on consultants, trends, regulations and legislation to drive strategy.

Why does this happen?

Don’t Put Enterprise Architecture in a Corner

EA has remained in its traditional comfort zone of IT. EA is not only about IT …  but yet, EA lives within IT, focuses on IT and therefore loses its business dimension and support.

It remains isolated and is rarely, if ever, involved in:

  • Assessing, planning and running business transformation initiatives
  • Providing real, enterprise-wide insights
  • Producing actionable initiatives

Instead, it focuses on managing “stuff”:

  • Understanding existing “stuff” by gathering exhaustively detailed information
  • Running “stuff”-deployment projects
  • Managing cost “stuff”
  • “Moving to the cloud” (the solution to … everything)

Enterprise Architecture

What Prevents Enterprise Architecture from Being Successful?

There are three main reasons why EA has been pigeon-holed:

  1. Lack of trust in the available information
    • Information is mostly collected, entered and maintained manually
    • Automated data collection and connection is costly and error-prone
    • Identification of issues can be very difficult and time-consuming
  1. Lack of true asset governance and collaboration
    • Enterprise architecture becomes ring-fenced within a department
    • Few stakeholders willing to be actively involved in owning assets and be responsible for them
    • Collaboration on EA is seen as secondary and mostly focused on reports and status updates
  1. Lack of practical insights (insights, analyses and management views)
    • Too small and narrow thinking of what EA can provide
    • The few analyses performed focus on immediate questions, rarely planning and strategy
    • Collaboration on EA is seen as secondary and mostly focused on reports and status updates

Because of this, EA fails to deliver the relevant insights that management needs to make decisions – in a timely manner – and loses its credibility.

But the fact is EA should be, and was designed to be, about actionable insights leading to innovative architecture, not about only managing “stuff!”

Don’t Slow Your Roll. Elevate Your Role.

It’s clear that the role of EA in driving digital transformation needs to be elevated. It needs to be a strategic partner with the business.

According to a McKinsey report on the “Five Enterprise-Architecture Practices That Add Value to Digital Transformations,” EA teams need to:

“Translate architecture issues into terms that senior executives will understand. Enterprise architects can promote closer alignment between business and IT by helping to translate architecture issues for business leaders and managers who aren’t technology savvy. Engaging senior management in discussions about enterprise architecture requires management to dedicate time and actively work on technology topics. It also requires the EA team to explain technology matters in terms that business leaders can relate to.”

With that said, to further change the perception of EA within the organization you need to serve what management needs. To do this, enterprise architects need to develop innovative business, not IT insights, and make them dynamic. Next, enterprise architects need to gather information you can trust and then maintain.

To provide these strategic insights, you don’t need to focus on everything — you need to focus on what management wants you to focus on. The rest is just IT being IT. And, finally, you need to collaborate – like your life depends on it.

Giving Digital Transformation an Enterprise Architecture EDGE

The job of the enterprise architecture is to provide the tools and insights for the C-suite, and other business stakeholders, to help deploy strategies for business transformation.

Let’s say the CEO has a brilliant idea and wants to test it. This is EA’s sweet spot and opportunity to shine. And this is where erwin lives by providing an easy, automated way to deliver collaboration, speed and responsiveness.

erwin is about providing the right information to the right people at the right time. We are focused on empowering the forward-thinking enterprise architect by providing:

  • Superb, near real-time understanding of information
  • Excellent, intuitive collaboration
  • Dynamic, interactive dashboards (vertical and horizontal)
  • Actual, realistic, business-oriented insights
  • Assessment, planning and implementation support

Data-Driven Business Transformation

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Constructing a Digital Transformation Strategy: Putting the Data in Digital Transformation

Having a clearly defined digital transformation strategy is an essential best practice for successful digital transformation. But what makes a digital transformation strategy viable?

Part Two of the Digital Transformation Journey …

In our last blog on driving digital transformation, we explored how business architecture and process (BP) modeling are pivotal factors in a viable digital transformation strategy.

EA and BP modeling squeeze risk out of the digital transformation process by helping organizations really understand their businesses as they are today. It gives them the ability to identify what challenges and opportunities exist, and provides a low-cost, low-risk environment to model new options and collaborate with key stakeholders to figure out what needs to change, what shouldn’t change, and what’s the most important changes are.

Once you’ve determined what part(s) of your business you’ll be innovating — the next step in a digital transformation strategy is using data to get there.

Digital Transformation Examples

Constructing a Digital Transformation Strategy: Data Enablement

Many organizations prioritize data collection as part of their digital transformation strategy. However, few organizations truly understand their data or know how to consistently maximize its value.

If your business is like most, you collect and analyze some data from a subset of sources to make product improvements, enhance customer service, reduce expenses and inform other, mostly tactical decisions.

The real question is: are you reaping all the value you can from all your data? Probably not.

Most organizations don’t use all the data they’re flooded with to reach deeper conclusions or make other strategic decisions. They don’t know exactly what data they have or even where some of it is, and they struggle to integrate known data in various formats and from numerous systems—especially if they don’t have a way to automate those processes.

How does your business become more adept at wringing all the value it can from its data?

The reality is there’s not enough time, people and money for true data management using manual processes. Therefore, an automation framework for data management has to be part of the foundations of a digital transformation strategy.

Your organization won’t be able to take complete advantage of analytics tools to become data-driven unless you establish a foundation for agile and complete data management.

You need automated data mapping and cataloging through the integration lifecycle process, inclusive of data at rest and data in motion.

An automated, metadata-driven framework for cataloging data assets and their flows across the business provides an efficient, agile and dynamic way to generate data lineage from operational source systems (databases, data models, file-based systems, unstructured files and more) across the information management architecture; construct business glossaries; assess what data aligns with specific business rules and policies; and inform how that data is transformed, integrated and federated throughout business processes—complete with full documentation.

Without this framework and the ability to automate many of its processes, business transformation will be stymied. Companies, especially large ones with thousands of systems, files and processes, will be particularly challenged by taking a manual approach. Outsourcing these data management efforts to professional services firms only delays schedules and increases costs.

With automation, data quality is systemically assured. The data pipeline is seamlessly governed and operationalized to the benefit of all stakeholders.

Constructing a Digital Transformation Strategy: Smarter Data

Ultimately, data is the foundation of the new digital business model. Companies that have the ability to harness, secure and leverage information effectively may be better equipped than others to promote digital transformation and gain a competitive advantage.

While data collection and storage continues to happen at a dramatic clip, organizations typically analyze and use less than 0.5 percent of the information they take in – that’s a huge loss of potential. Companies have to know what data they have and understand what it means in common, standardized terms so they can act on it to the benefit of the organization.

Unfortunately, organizations spend a lot more time searching for data rather than actually putting it to work. In fact, data professionals spend 80 percent of their time looking for and preparing data and only 20 percent of their time on analysis, according to IDC.

The solution is data intelligence. It improves IT and business data literacy and knowledge, supporting enterprise data governance and business enablement.

It helps solve the lack of visibility and control over “data at rest” in databases, data lakes and data warehouses and “data in motion” as it is integrated with and used by key applications.

Organizations need a real-time, accurate picture of the metadata landscape to:

  • Discover data – Identify and interrogate metadata from various data management silos.
  • Harvest data – Automate metadata collection from various data management silos and consolidate it into a single source.
  • Structure and deploy data sources – Connect physical metadata to specific data models, business terms, definitions and reusable design standards.
  • Analyze metadata – Understand how data relates to the business and what attributes it has.
  • Map data flows – Identify where to integrate data and track how it moves and transforms.
  • Govern data – Develop a governance model to manage standards, policies and best practices and associate them with physical assets.
  • Socialize data – Empower stakeholders to see data in one place and in the context of their roles.

The Right Tools

When it comes to digital transformation (like most things), organizations want to do it right. Do it faster. Do it cheaper. And do it without the risk of breaking everything. To accomplish all of this, you need the right tools.

The erwin Data Intelligence (DI) Suite is the heart of the erwin EDGE platform for creating an “enterprise data governance experience.” erwin DI combines data cataloging and data literacy capabilities to provide greater awareness of and access to available data assets, guidance on how to use them, and guardrails to ensure data policies and best practices are followed.

erwin Data Catalog automates enterprise metadata management, data mapping, reference data management, code generation, data lineage and impact analysis. It efficiently integrates and activates data in a single, unified catalog in accordance with business requirements. With it, you can:

  • Schedule ongoing scans of metadata from the widest array of data sources.
  • Keep metadata current with full versioning and change management.
  • Easily map data elements from source to target, including data in motion, and harmonize data integration across platforms.

erwin Data Literacy provides self-service, role-based, contextual data views. It also provides a business glossary for the collaborative definition of enterprise data in business terms, complete with built-in accountability and workflows. With it, you can:

  • Enable data consumers to define and discover data relevant to their roles.
  • Facilitate the understanding and use of data within a business context.
  • Ensure the organization is fluent in the language of data.

With data governance and intelligence, enterprises can discover, understand, govern and socialize mission-critical information. And because many of the associated processes can be automated, you reduce errors and reliance on technical resources while increasing the speed and quality of your data pipeline to accomplish whatever your strategic objectives are, including digital transformation.

Check out our latest whitepaper, Data Intelligence: Empowering the Citizen Analyst with Democratized Data.

Data Intelligence: Empowering the Citizen Analyst with Democratized Data

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Using Strategic Data Governance to Manage GDPR/CCPA Complexity

In light of recent, high-profile data breaches, it’s past-time we re-examined strategic data governance and its role in managing regulatory requirements.

News broke earlier this week of British Airways being fined 183 million pounds – or $228 million – by the U.K. for alleged violations of the European Union’s General Data Protection Regulation (GDPR). While not the first, it is the largest penalty levied since the GDPR went into effect in May 2018.

Given this, Oppenheimer & Co. cautions:

“European regulators could accelerate the crackdown on GDPR violators, which in turn could accelerate demand for GDPR readiness. Although the CCPA [California Consumer Privacy Act, the U.S. equivalent of GDPR] will not become effective until 2020, we believe that new developments in GDPR enforcement may influence the regulatory framework of the still fluid CCPA.”

With all the advance notice and significant chatter for GDPR/CCPA,  why aren’t organizations more prepared to deal with data regulations?

In a word? Complexity.

The complexity of regulatory requirements in and of themselves is aggravated by the complexity of the business and data landscapes within most enterprises.

So it’s important to understand how to use strategic data governance to manage the complexity of regulatory compliance and other business objectives …

Designing and Operationalizing Regulatory Compliance Strategy

It’s not easy to design and deploy compliance in an environment that’s not well understood and difficult in which to maneuver. First you need to analyze and design your compliance strategy and tactics, and then you need to operationalize them.

Modern, strategic data governance, which involves both IT and the business, enables organizations to plan and document how they will discover and understand their data within context, track its physical existence and lineage, and maximize its security, quality and value. It also helps enterprises put these strategic capabilities into action by:

  • Understanding their business, technology and data architectures and their inter-relationships, aligning them with their goals and defining the people, processes and technologies required to achieve compliance.
  • Creating and automating a curated enterprise data catalog, complete with physical assets, data models, data movement, data quality and on-demand lineage.
  • Activating their metadata to drive agile data preparation and governance through integrated data glossaries and dictionaries that associate policies to enable stakeholder data literacy.

Strategic Data Governance for GDPR/CCPA

Five Steps to GDPR/CCPA Compliance

With the right technology, GDPR/CCPA compliance can be automated and accelerated in these five steps:

  1. Catalog systems

Harvest, enrich/transform and catalog data from a wide array of sources to enable any stakeholder to see the interrelationships of data assets across the organization.

  1. Govern PII “at rest”

Classify, flag and socialize the use and governance of personally identifiable information regardless of where it is stored.

  1. Govern PII “in motion”

Scan, catalog and map personally identifiable information to understand how it moves inside and outside the organization and how it changes along the way.

  1. Manage policies and rules

Govern business terminology in addition to data policies and rules, depicting relationships to physical data catalogs and the applications that use them with lineage and impact analysis views.

  1. Strengthen data security

Identify regulatory risks and guide the fortification of network and encryption security standards and policies by understanding where all personally identifiable information is stored, processed and used.

How erwin Can Help

erwin is the only software provider with a complete, metadata-driven approach to data governance through our integrated enterprise modeling and data intelligence suites. We help customers overcome their data governance challenges, with risk management and regulatory compliance being primary concerns.

However, the erwin EDGE also delivers an “enterprise data governance experience” in terms of agile innovation and business transformation – from creating new products and services to keeping customers happy to generating more revenue.

Whatever your organization’s key drivers are, a strategic data governance approach – through  business process, enterprise architecture and data modeling combined with data cataloging and data literacy – is key to success in our modern, digital world.

If you’d like to get a handle on handling your data, you can sign up for a free, one-on-one demo of erwin Data Intelligence.

For more information on GDPR/CCPA, we’ve also published a white paper on the Regulatory Rationale for Integrating Data Management and Data Governance.

GDPR White Paper

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Business Architecture and Process Modeling for Digital Transformation

At a fundamental level, digital transformation is about further synthesizing an organization’s operations and technology, so involving business architecture and process modeling is a best practice organizations cannot ignore.

This post outlines how business architecture and process modeling come together to facilitate efficient and successful digital transformation efforts.

Business Process Modeling: The First Step to Giving Customers What They Expect

Salesforce recently released the State of the Connected Customer report, with 75 percent of customers saying they expect companies to use new technologies to create better experiences. So the business and digital transformation playbook has to be updated.

These efforts must be carried out with continuous improvement in mind. Today’s constantly evolving business environment totally reinforces the old adage that change is the only constant.

Even historically reluctant-to-change banks now realize they need to innovate, adopting digital transformation to acquire and retain customers. Innovate or die is another adage that holds truer than ever before.

Fidelity International is an example of a successful digital transformation adopter and innovator. The company realized that different generations want different information and have distinct communication preferences.

For instance, millennials are adept at using digital channels, and they are the fastest-growing customer base for financial services companies. Fidelity knew it needed to understand customer needs and adapt its processes around key customer touch points and build centers of excellence to support them.

Business architecture and process modeling

Business Architecture and Process Modeling

Planning and working toward a flexible, responsive and adaptable future is no longer enough – the modern organization must be able to visualize not only the end state (the infamous and so-elusive “to-be”) but also perform detailed and comprehensive impact analysis on each scenario, often in real time. This analysis also needs to span multiple departments, extending beyond business and process architecture to IT, compliance and even HR and legal.

The ability of process owners to provide this information to management is central to ensuring the success of any transformation initiative. And new requirements and initiatives need to be managed in new ways. Digital and business transformation is about being able to do three things at the same time, all working toward the same goals:

  • Collect, document and analyze requirements
  • Establish all information layers impacted by the requirements
  • Develop and test the impact of multiple alternative scenarios

Comprehensive business process modeling underpins all of the above, providing the central information axis around which initiatives are scoped, evaluated, planned, implemented and ultimately managed.

Because of its central role, business process modeling must expand to modeling information from other layers within the organization, including:

  • System and application usage information
  • Supporting and reference documentation
  • Compliance, project and initiative information
  • Data usage

All these information layers must be captured and modeled at the appropriate levels, then connected to form a comprehensive information ecosystem that enables parts of the organization running transformation and other initiatives to instantly access and leverage it for decision-making, simulation and scenario evaluation, and planning, management and maintenance.

No Longer a Necessary Evil

Traditionally, digital and business transformation initiatives relied almost exclusively on human knowledge and experience regarding processes, procedures, how things worked, and how they fit together to provide a comprehensive and accurate framework. Today, technology can aggregate and manage all this information – and more – in a structured, organized and easily accessible way.

Business architecture extends beyond simple modeling; it also incorporates automation to reduce manual effort, remove potential for error, and guarantee effective data governance – with visibility from strategy all the way down to data entry and the ability to trace and manage data lineage. It requires robotics to cross-reference mass amounts of information, never before integrated to support effective decision-making.

The above are not options that are “nice to have,” but rather necessary gateways to taking business process management into the future. And the only way to leverage them is through systemic, organized and comprehensive business architecture modeling and analysis.

Therefore, business architecture and process modeling are no longer a necessary evil. They are critical success factors to any digital or business transformation journey.

A Competitive Weapon

Experts confirm the need to rethink and revise business processes to incorporate more digital automation. Forrester notes in its report, The Growing Importance of Process to Digital Transformation, that the changes in how business is conducted are driving the push “to reframe organizational operational processes around digital transformation efforts.” In a dramatic illustration of the need to move in this direction, the research firm writes that “business leaders are looking to use process as a competitive weapon.”

If a company hasn’t done a good job of documenting its processes, it can’t realize a future in which digital transformation is part of everyday operations. It’s never too late to start, though. In a fast-moving and pressure cooker business environment, companies need to implement business process models that make it possible to visually and analytically represent the steps that will add value to the company – either around internal operations or external ones, such as product or service delivery.

erwin BP, part of the erwin EDGE Platform, enables effective business architecture and process modeling. With it, any transformation initiative becomes a simple, streamlined exercise to support distributed information capture and management, object-oriented modeling, simulation and collaboration.

To find out about how erwin can help in empowering your transformation initiatives, please click here.

data-driven business transformation

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Choosing the Right Data Modeling Tool

The need for an effective data modeling tool is more significant than ever.

For decades, data modeling has provided the optimal way to design and deploy new relational databases with high-quality data sources and support application development. But it provides even greater value for modern enterprises where critical data exists in both structured and unstructured formats and lives both on premise and in the cloud.

In today’s hyper-competitive, data-driven business landscape, organizations are awash with data and the applications, databases and schema required to manage it.

For example, an organization may have 300 applications, with 50 different databases and a different schema for each. Additional challenges, such as increasing regulatory pressures – from the General Data Protection Regulation (GDPR) to the Health Insurance Privacy and Portability Act (HIPPA) – and growing stores of unstructured data also underscore the increasing importance of a data modeling tool.

Data modeling, quite simply, describes the process of discovering, analyzing, representing and communicating data requirements in a precise form called the data model. There’s an expression: measure twice, cut once. Data modeling is the upfront “measuring tool” that helps organizations reduce time and avoid guesswork in a low-cost environment.

From a business-outcome perspective, a data modeling tool is used to help organizations:

  • Effectively manage and govern massive volumes of data
  • Consolidate and build applications with hybrid architectures, including traditional, Big Data, cloud and on premise
  • Support expanding regulatory requirements, such as GDPR and the California Consumer Privacy Act (CCPA)
  • Simplify collaboration across key roles and improve information alignment
  • Improve business processes for operational efficiency and compliance
  • Empower employees with self-service access for enterprise data capability, fluency and accountability

Data Modeling Tool

Evaluating a Data Modeling Tool – Key Features

Organizations seeking to invest in a new data modeling tool should consider these four key features.

  1. Ability to visualize business and technical database structures through an integrated, graphical model.

Due to the amount of database platforms available, it’s important that an organization’s data modeling tool supports a sufficient (to your organization) array of platforms. The chosen data modeling tool should be able to read the technical formats of each of these platforms and translate them into highly graphical models rich in metadata. Schema can be deployed from models in an automated fashion and iteratively updated so that new development can take place via model-driven design.

  1. Empowering of end-user BI/analytics by data source discovery, analysis and integration. 

A data modeling tool should give business users confidence in the information they use to make decisions. Such confidence comes from the ability to provide a common, contextual, easily accessible source of data element definitions to ensure they are able to draw upon the correct data; understand what it represents, including where it comes from; and know how it’s connected to other entities.

A data modeling tool can also be used to pull in data sources via self-service BI and analytics dashboards. The data modeling tool should also have the ability to integrate its models into whatever format is required for downstream consumption.

  1. The ability to store business definitions and data-centric business rules in the model along with technical database schemas, procedures and other information.

With business definitions and rules on board, technical implementations can be better aligned with the needs of the organization. Using an advanced design layer architecture, model “layers” can be created with one or more models focused on the business requirements that then can be linked to one or more database implementations. Design-layer metadata can also be connected from conceptual through logical to physical data models.

  1. Rationalize platform inconsistencies and deliver a single source of truth for all enterprise business data.

Many organizations struggle to breakdown data silos and unify data into a single source of truth, due in large part to varying data sources and difficulty managing unstructured data. Being able to model any data from anywhere accounts for this with on-demand modeling for non-relational databases that offer speed, horizontal scalability and other real-time application advantages.

With NoSQL support, model structures from non-relational databases, such as Couchbase and MongoDB can be created automatically. Existing Couchbase and MongoDB data sources can be easily discovered, understood and documented through modeling and visualization. Existing entity-relationship diagrams and SQL databases can be migrated to Couchbase and MongoDB too. Relational schema also will be transformed to query-optimized NoSQL constructs.

Other considerations include the ability to:

  • Compare models and databases.
  • Increase enterprise collaboration.
  • Perform impact analysis.
  • Enable business and IT infrastructure interoperability.

When it comes to data modeling, no one knows it better. For more than 30 years, erwin Data Modeler has been the market leader. It is built on the vision and experience of data modelers worldwide and is the de-facto standard in data model integration.

You can learn more about driving business value and underpinning governance with erwin DM in this free white paper.

Data Modeling Drives Business Value

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The Importance of EA/BP for Mergers and Acquisitions

Over the past few weeks several huge mergers and acquisitions (M&A) have been announced, including Raytheon and United Technologies, the Salesforce acquisition of Tableau and the Merck acquisition of Tilos Therapeutics.

According to collated research and a Harvard Business Review report, the M&A failure rate sits between 70 and 90 percent. Additionally, McKinsey estimates that around 70 percent of mergers do not achieve their expected “revenue synergies.”

Combining two organizations into one is complicated. And following a merger or acquisition, businesses typically find themselves with duplicate applications and business capabilities that are costly and obviously redundant, making alignment difficult.

Enterprise architecture is essential to successful mergers and acquisitions. It helps alignment by providing a business- outcome perspective for IT and guiding transformation. It also helps define strategy and models, improving interdepartmental cohesion and communication. Roadmaps can be used to provide a common focus throughout the new company, and if existing roadmaps are in place, they can be modified to fit the new landscape.

Additionally, an organization must understand both sets of processes being brought to the table. Without business process modeling, this is near impossible.

In an M&A scenario, businesses need to ensure their systems are fully documented and rationalized. This way, they can comb through their inventories to make more informed decisions about which systems to cut or phase out to operate more efficiently and then deliver the roadmap to enable those changes.

Mergers and Acquisitions

Getting Rid of Duplications Duplications

Mergers and acquisitions are daunting. Depending on the size of the businesses, hundreds of systems and processes need to be accounted for, which can be difficult, and even impossible to do in advance.

Enterprise architecture aids in rooting out process and operational duplications, making the new entity more cost efficient. Needless to say, the behind-the-scenes complexities are many and can include discovering that the merging enterprises use the same solution but under different names in different parts of the organizations, for example.

Determinations also may need to be made about whether particular functions, that are expected to become business-critical, have a solid, scalable base to build upon. If an existing application won’t be able to handle the increased data load and processing, then those previously planned investments don’t need to be made.

Gaining business-wide visibility of data and enterprise architecture all within a central repository enables relevant parties across merging companies to work from a single source of information. This provides insights to help determine whether, for example, two equally adept applications of the same nature can continue to be used as the companies merge, because they share common underlying data infrastructures that make it possible for them to interoperate across a single source of synched information.

Or, in another scenario, it may be obvious that it is better to keep only one of the applications because it alone serves as the system of record for what the organization has determined are valuable conceptual data entities in its data model.

At the same time, it can reveal the location of data that might otherwise have been unwittingly discharged with the elimination of an application, enabling it to be moved to a lower-cost storage tier for potential future use.

Knowledge Retention – Avoiding Brain Drain

When employees come and go, as they tend to during mergers and acquisitions, they take critical institutional knowledge with them.

Unlocking knowledge and then putting systems in place to retain that knowledge is one key benefit of business process modeling. Knowledge retention and training has become a pivotal area in which businesses will either succeed or fail.

Different organizations tend to speak different languages. For instance, one company might refer to a customer as “customer,” while another might refer to them as a “client.” Business process modeling is a great way to get everybody in the organization using the same language, referring to things in the same way.

Drawing out this knowledge then allows a centralized and uniform process to be adopted across the company. In any department within any company, individuals and teams develop processes for doing things. Business process modeling extracts all these pieces of information from individuals and teams so they can be turned into centrally adopted processes.

 

[FREE EBOOK] Application Portfolio Management For Mergers & Acquisitions 

 

Ensuring Compliance

Industry and government regulations affect businesses that work in or do business with any number of industries or in specific geographies. Industry-specific regulations in areas like healthcare, pharmaceuticals and financial services have been in place for some time.

Now, broader mandates like the European Union’s Generation Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) require businesses across industries to think about their compliance efforts. Business process modeling helps organizations prove what they are doing to meet compliance requirements and understand how changes to their processes impact compliance efforts (and vice versa).

In highly regulated industries like financial services and pharmaceuticals, where mergers and acquisitions activity is frequent, identifying and standardizing business processes meets the scrutiny of regulatory compliance.

Business process modeling makes it easier to document processes, align documentation within document control and learning management systems, and give R&D employees easy access and intuitive navigation so they can find the information they need.

Introducing Business Architecture

Organizations often interchange the terms “business process” and “enterprise architecture” because both are strategic functions with many interdependencies.

However, business process architecture defines the elements of a business and how they interact with the aim of aligning people, processes, data, technologies and applications. Enterprise architecture defines the structure and operation of an organization with the purpose of determining how it can achieve its current and future objectives most effectively, translating those goals into a blueprint of IT capabilities.

Although both disciplines seek to achieve the organization’s desired outcomes, both have largely operated in silos.

To learn more about how erwin provides modeling and analysis software to support both business process and enterprise architecture practices and enable their broader collaboration, click here.

Cloud-based enterprise architecture and business process

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Digital Transformation Examples: Three Industries Dominating Digital Transformation

Digital transformation examples can be found almost anywhere, in almost any industry. Its past successes – and future potential – are well documented, chronicled in the billion-dollar valuations of the frontrunners in the practice.

Amazon began as a disruptor to brick-and-mortar bookstores, eventually becoming one of the most obvious digital transformation examples as it went on to revolutionize online shopping.

Netflix’s origins were similar – annihilating its former rival Blockbuster and the entire DVD rental market to become a dominant streaming platform and media publisher.

Disruption is the common theme. Netflix decimated the DVD rental market while Amazon continues to play a role in “high-street” shopping’s decline.

As technology continues to disrupt markets, digital transformation is do or die.

According to IDC’s digital transformation predictions report for 2019, these types of initiatives are going to flood the enterprise during the next five years.

The following three examples highlight the extent to which digital transformation is reshaping the nature of business and government and how we – as a society – interact with the world.

Digital Transformation in Retail

The inherently competitive nature of retail has made the sector a leader in adopting data-driven strategy.

From loyalty cards to targeted online ads, retail has always had to adapt to stay relevant.

Four main areas in retail demonstrate digital transformation, with a healthy data governance initiative driving them all.

Digital transformation examples

With accurate, relevant and accessible data, organizations can address the following:

  • Customer experience: If your data shows a lot of abandoned carts from mobile app users, then that’s an area to investigate, and good data will identify it.
  • Competitive differentiation: Are personalized offers increasing sales and creating customer loyalty? This is an important data point for marketing strategy.
  • Supply chain:Can a problem with quality be related to items shipping from a certain warehouse? Data will zero in on the location of the problem.
  • Partnerships:Are your partnerships helping grow other parts of your business and creating new customers? Or are your existing customers using partners in place of visiting your store? Data can tell you.

This article further explores digital transformation and data governance in retail.

Digital Transformation in Hospitality

Hospitality is another industry awash in digital transformation examples. Brick-and-mortar travel agencies are ceding ground to mobile-first (and mobile-only) businesses.

Their offerings range from purchasing vacation packages to the ability to check in and order room service via mobile devices.

With augmented and virtual reality, it even may be possible to one day “test drive” holiday plans from the comfort of the sofa – say before swimming with sharks or going on safari.

The extent of digitization now possible in the hospitality industry means these businesses have to account for and manage an abundance of data types and sources to glean insights to fuel the best customer experiences.

Unsurprisingly, this is yet another area where a healthy data governance initiative can be the difference between industry-disrupting success and abject failure.

This piece further discusses how data is transforming the hospitality industry and the role of data governance in it.

Digital Transformation in Municipal Government

Historically, municipal government isn’t seen as an area at the forefront of adopting emerging technology.

But the emergence of “smart cities” is a prominent example of digital transformation.

Even the concept of a smart city is a response to existing digital transformation in the private sector, as governments have been coerced into updating infrastructure to reflect the modern world.

Today, municipal governments around the world are using digital transformation to improve residents’ quality of life, from improving transportation and public safety to making it convenient to pay bills or request services online.

Of course, when going “smart,” municipal governments will need an understanding of data governance best practices.

This article analyzes how municipal governments can be “smart” about their transformation efforts.

Mitigating Digital Transformation Risks

Risks come with any investment. But in the context of digital transformation, taking risks is both a necessity and an inevitability.

Organizations also will need to consult their data to ensure they transform themselves the right way – and not just for transformation’s sake.

A recent PwC study found that successful digital transformation risk-takers “find the right fit for emerging technologies.”

Doing so points to the need for both effective data governance to find, understand and socialize the most relevant data assets and healthy enterprise architecture to learn what systems and applications create, store and use those data assets.

With application portfolio management and impact analysis, organizations can identify immediate opportunities for digital transformation and areas where more consideration and planning may be necessary before making changes.

As the data governance company, we provide data governance as well as enterprise architecture software, plus tools for business process and data modeling, data cataloging and data literacy. As an integrated software platform, organizations ensure IT and business collaboration to drive risk management, innovation and transformation efforts.

If you’d like to learn more about digital transformation and other use cases for data governance technologies, stay up to date with the erwin Experts here.

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erwin Expert Blog

Democratizing Data and the Rise of the Citizen Analyst

Data innovation is flourishing, driven by the confluence of exploding data production, a lowered barrier to entry for big data, as well as advanced analytics, artificial intelligence and machine learning.

Additionally, the ability to access and analyze all of this information has given rise to the “citizen analyst” – a business-oriented problem-solver with enough technical knowledge to understand how to apply analytical techniques to collections of massive data sets to identify business opportunities.

Empowering the citizen analyst relies on, or rather demands, data democratization – making shared enterprise assets available to a set of data consumer communities in a governed way.

This idea of democratizing data has become increasingly popular as more organizations realize that data is everyone’s business in a data-driven organization. Those that embrace digital transformation, regardless of industry, experience new levels of relevance and success.

Securing the Asset

Consumers and businesses alike have started to view data as an asset they must take steps to secure. It’s both a lucrative target for cyber criminals and a combustible spark for PR fires.

However, siloing data can be just as costly.

For some perspective, we can draw parallels between a data pipeline and a factory production line.

In the latter example, not being able to get the right parts to the right people at the right time leads to bottlenecks that stall both production and potential profits.

The exact same logic can be applied to data. To ensure efficient processes, organizations need to make the right data available to the right people at the right time.

In essence, this is data democratization. And the importance of democratized data governance cannot be stressed enough. Data security is imperative, so organizations need both technology and personnel to achieve it.

And in regard to the human element, organizations need to ensure the relevant parties understand what particular data assets can be used and for what. Assuming that employees know when, what and how to use data can make otherwise extremely valuable data resources useless due to not understanding its potential.

The objectives of governed data democratization include:

  • Raising data awareness among the different data consumer communities to increase awareness of the data assets that can be used for reporting and analysis,
  • Improving data literacy so that individuals will understand how the different data assets can be used,
  • Supporting observance of data policies to support regulatory compliance, and
  • Simplifying data accessibility and use to support citizen analysts’ needs.

Democratizing Data: Introducing Democratized Data

To successfully introduce and oversee the idea of democratized data, organizations must ensure that information about data assets is accumulated, documented and published for context-rich use across the organization.

This knowledge and understanding are a huge part of data intelligence.

Data intelligence is produced by coordinated processes to survey the data landscape to collect, collate and publish critical information, namely:

  • Reconnaissance: Understanding the data environment and the corresponding business contexts and collecting as much information as possible;
  • Surveillance: Monitoring the environment for changes to data sources;
  • Logistics and Planning: Mapping the collected information production flows and mapping how data moves across the enterprise
  • Impact Assessment: Using what you have learned to assess how external changes impact the environment
  • Synthesis: Empowering data consumers by providing a holistic perspective associated with specific business terms
  • Sustainability: Embracing automation to always provide up-to-date and correct intelligence; and
  • Auditability: Providing oversight and being able to explain what you have learned and why

erwin recently sponsored a white paper about data intelligence and democratizing data.

Written by David Loshin of Knowledge Integrity, Inc., it take a deep dive into this topic and includes crucial advice on how organizations should evaluate data intelligence software prior to investment.

Data Intelligence: Democratizing Data

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erwin Expert Blog Enterprise Architecture

Data-Driven Enterprise Architecture

It’s time to consider data-driven enterprise architecture.

The traditional approach to enterprise architecture – the analysis, design, planning and implementation of IT capabilities for the successful execution of enterprise strategy – seems to be missing something … data.

I’m not saying that enterprise architects only worry about business structure and high-level processes without regard for business needs, information requirements, data processes, and technology changes necessary to execute strategy.

But I am saying that enterprise architects should look at data, technology and strategy as a whole to develop perspectives in line with all enterprise requirements.

That’s right. When it comes to technology and governance strategies, policies and standards, data should be at the center.

Strategic Building Blocks for Data-Driven EA

The typical notion is that enterprise architects and data (and metadata) architects are in opposite corners. Therefore, most frameworks fail to address the distance.

At Avydium, we believe there’s an important middle ground where different architecture disciplines coexist, including enterprise, solution, application, data, metadata and technical architectures. This is what we call the Mezzo.

Avydium Compass Mezzo view
Figure 1 – The Avydium Compass™ Mezzo view

So we created a set of methods, frameworks and reference architectures that address all these different disciplines, strata and domains. We treat them as a set of deeply connected components, objects, concepts and principles that guide a holistic approach to vision, strategy, solutioning and implementations for clients.

For us at Avydium, we see the layers of this large and complex architecture continuum as a set of building blocks that need to work together – each supporting the others.

Avydium Compass view of enterprise architecture
Figure 2 – The Avydium Compass® view of enterprise architecture

For instance, you can’t develop a proper enterprise strategy without implementing a proper governance strategy, and you can’t have an application strategy without first building your data and metadata strategies. And they all need to support your infrastructure and technology strategies.

Where do these layers connect? With governance, which sets its fundamental components firmly on data, metadata and infrastructure. For any enterprise to make the leap from being a reactive organization to a true leader in its space, it must focus on data as the driver of that transformation.

DATA-DRIVEN BUSINESS TRANSFORMATION – USING DATA AS A STRATEGIC ASSET AND TRANSFORMATIONAL TOOL TO SUCCEED IN THE DIGITAL AGE

 

Data-Driven Enterprise Architecture and Cloud Migration

Let’s look at the example of cloud migration, which most enterprises see as a way to shorten development cycles, scale at demand, and reduce operational expenses. But as cloud migrations become more prevalent, we’re seeing more application modernization efforts fail, which should concern all of us in enterprise architecture.

The most common cause for these failures is disregarding data and metadata, omitting these catalogs from inventory efforts, part of application rationalization and portfolio consolidation that must occur prior to any application being migrated to the cloud.

Thus, key steps of application migration planning, such as data preparation, master data management and reference data management, end up being ignored with disastrous and costly ramifications. Applications fail to work together, data is integrated incorrectly causing massive duplication, and worse.

At Avydium, our data-driven enterprise architecture approach puts data and metadata at the center of cloud migration or any application modernization or digital transformation effort. That’s because we want to understand – and help clients understand – important nuances only visible at the data level, such as compliance and privacy/security risks (remember GDPR?). You want to be proactive in identifying potential issues with sensitive data so you can plan accordingly.

The one piece of advice we give most often to our clients contemplating a move to the cloud – or any application modernization effort for that matter – is take a long hard look at their applications and the associated data.

Start by understanding your business requirements and then determine your technology capabilities so you can balance the two. Then look at your data to ensure you understand what you have, where it is, how it is used and by whom. Only with answers to these questions can you plan and executive a successful move to the cloud.

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erwin Expert Blog Enterprise Architecture

Agile Enterprise Architecture for DevOps Explained …

How do organizations innovate? Taking an idea from concept to delivery requires strategic planning and the ability to execute. In the case of software development, understanding agile enterprise architecture and its relevance to DevOps is also key.

DevOps, the fusion of software development and IT operations, stems from the agile development movement. In more practical terms, it integrates developers and operations teams to improve collaboration and productivity by automating infrastructure, workflows and continuously measuring application performance.

The goal is to balance the competing needs of getting new products into production while maintaining 99.9-percent application uptime for customers in an agile manner. 

To understand this increase in complexity, we need to look at how new features and functions are applied to software delivery. The world of mobile apps, middleware and cloud deployment has reduced release cycles to days and weeks not months — with an emphasis on delivering incremental change.

Previously, a software release would occur every few months with a series of modules that were hopefully still relevant to the business goals.

The shorter, continuous-delivery lifecycle helps organizations:

  • Achieve shorter releases by incremental delivery and delivering faster innovation
  • Be more responsive to business needs by improved collaboration, better quality and more frequent releases
  • Manage the number of applications impacted by a business release by allowing local variants for a global business and continuous delivery within releases

The DevOps approach achieves this by providing an environment that:

  • Minimizes software delivery batch sizes to increase flexibility and enable continuous feedback as every team delivers features to production as they are completed
  • Replaces projects with release trains that minimize batch-waiting time to reduce lead times and waste
  • Shifts from central planning to decentralized execution with a pull philosophy, thus minimizing batch transaction cost to improve efficiency
  • Makes DevOps economically feasible through test virtualization, build automation and automated release management as we prioritize and sequence batches to maximize business value and select the right batches, sequence them in the right order, guide the implementation, track execution and make planning adjustments to maximize business value

An Approach with an Enterprise Architecture View

So far, we have only looked at the delivery aspects. So how does this approach integrate with an enterprise architecture view?

To understand this, we need to look more closely at the strategic planning lifecycle. The figure below shows how the strategic planning lifecycle supports an ‘ideas-to-delivery’ framework.

Agile Enterprise Architecture: The Strategic Planning Lifecycle

Figure 1: The strategic planning lifecycle

You can see the high-level relationship between the strategy and goals of an organization and the projects that deliver the change to meet these goals. Enterprise architecture provides the model to govern the delivery of projects in line with these goals.

However, we must ensure that any model built include ‘just-enough’ enterprise architecture to produce the right level of analysis for driving change. The agile enterprise architecture model, then, is then one that enables enough analysis to plan which projects should be undertaken and ensures full architectural governance for delivery. The last part of this is achieved by connecting to the tools used in the agile space.

Agile Enterprise Architecture: Detailed View of the Strategic Planning Lifecycle

Figure 2: Detailed view of the strategic planning lifecycle

The Agile Enterprise Architecture Lifecycle

An agile enterprise architecture has its own lifecycle with six stages.

Vision and strategy: Initially, the organization begins by revisiting its corporate vision and strategy. What things will differentiate the organization from its competitors in five years? What value propositions will it offer customers to create that differentiation? The organization can create a series of campaigns or challenges to solicit new ideas and requirements for its vision and strategy.

Value proposition: The ideas and requirements are rationalized into a value proposition that can be examined in more detail.

Resources: The company can look at what resources it needs to have on both the business side and the IT side to deliver the capabilities needed to realize the value propositions. For example, a superior customer experience might demand better internet interactions and new applications, processes, and infrastructure on which to run. Once the needs are understood, they are compared to what the organization already has. The transition planning determines how the gaps will be addressed.

Execution: With the strategy and transition plan in place, enterprise architecture execution begins. The transition plan provides input to project prioritization and planning since those projects aligned with the transition plan are typically prioritized over those that do not align. This determines which projects are funded and entered into or continue to the DevOps stage.

Guidelines: As the solutions are developed, enterprise architecture assets such as models, building blocks, rules, patterns, constraints and guidelines are used and followed. Where the standard assets aren’t suitable for a project, exceptions are requested from the governance board. These exceptions are tracked carefully. Where assets are frequently the subject of exception requests, they must be examined to see if they really are suitable for the organization.

Updates: Periodic updates to the organization’s vision and strategy require a reassessment of the to-be state of the enterprise architecture. This typically results in another look at how the organization will differentiate itself in five years, what value propositions it will offer, the capabilities and resources needed, and so on. If we’re not doing things the way we said we wanted them done, then we must ask if our target architectures are still correct. This helps keep the enterprise architecture current and useful.

Enterprise Architecture Tools for DevOps

DevOps can use a number of enterprise architecture solutions. For example, erwin’s enterprise architecture products use open standards to link to other products within the overall lifecycle. This approach integrates agile enterprise architecture with agile development, connecting project delivery with effective governance of the project lifecycle. Even if the software delivery process is agile, goals and associated business needs are linked and can be met.

To achieve this goal, a number of internal processes must be interoperable. This is a significant challenge, but one that can be met by building an internal center of excellence and finding a solution by starting small and building a working environment.

The erwin EA product line takes a rigorous approach to enterprise architecture to ensure that current and future states are published for a wider audience to consume. The erwin EA repository can be used as an enterprise continuum (in TOGAF terms).

Available as a cloud-based platform or on-premise, erwin EA solutions provide a quick and cost-effective path for launching a collaborative enterprise architecture program. With built-in support for such industry frameworks as ArchiMate® and TOGAF®,  erwin enables you to model the enterprise, capture the IT blueprint, generate roadmaps and provide meaningful insights to both technical and business stakeholders.

According to Gartner, enterprise architecture is becoming a “form of internal management consulting,” helping define and shape business and operating models, identify risks and opportunities, and then create technology roadmaps. Understanding how vision and strategy impacts enterprise architecture is important – with an overall goal of traceability from our ideas and initiatives all the way through delivery.

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