The Forrester Blog For Enterprise Architecture Professionals
This blog is a roll-up of all the posts from analysts who serve Enterprise Architecture Professionals. Individual analyst blogs are listed below. Visit Forrester.com to learn how we make Enterprise Architecture Professionals successful every day.
IT has too many separate portfolios to manage, and that hinders its ability to help business change. We have project portfolios, application portfolios, technology portfolios, and IT service portfolios – each managed in silos. These portfolios are all IT-centric – they generally mean nothing to business leaders. The business has products, customers, partners, and processes – and the connection between these business portfolios and the IT portfolios isn't readily apparent and usually not even documented. Change in the business – in any of these areas – is connected to IT only in the requirements document of a siloed project. Lots of requirement documents for lots of siloed projects leads to more complexity and less ability to support business change.
How do we connect these business concepts to IT? What's the "unit" that connects IT projects, apps, and technology with business processes and products?
It's not "business capabilities" – they are an abstraction most useful for prioritizing, analysis, and planning. We need a term to manage the day-to-day adaptation and implementation of these capabilities – the implementation with all its messiness such as fragmented processes and redundant apps – that we can use to manage any type of change.
We believe the best term for this unit is "business services," with this definition:
The output of a business capability with links to the implementation of people, processes, information, and technology necessary to provide that output.
As promised in my blog last week, here is part 2. In part 1, I introduced the two trends reports we did this year and showed the list of trends for business technology. These are trends and technologies to consider first with your "business hat" on. This blog post lists the other 10 trends to view first from a technology lens because they are of lower interest or impact to the business.
We have created four new categories to make IT stakeholder identification easier: 1) application platforms will be of high interest to your app dev and management teams; 2) integration will be of interest to app dev, data integration specialists, and even process folks (considering that processes can and should be integrated with apps and data); 3) infrastructure and operations; and 4) mobile computing, which spans infrastructure, app dev, and possibly line-of-business relationship managers who are very keen on mobility. And don't forget your security and compliance stakeholders, who will generally care about all of these!
Before listing the trends and technologies, I also want to introduce a new twist to our research this year - we have identified four major themes that run through many of our business technology and technology trends. These themes are so broad and far reaching that we thought it worth calling them out separately; we are advising our clients to understand these themes as the context for responding to individual trends:
Lexmark International acquired Netherlands-based Pallas Athena and will combine the company with its recent acquisition of Perceptive Software, a fast-growing ECM provider. Together this is a very complete software unit for the ECM, BPM, and dynamic case management market. Pallas received good reviews well in the recent Forrester Wave™ for dynamic case management solutions and has a strong overall BPM technology. North American exposure, and distribution in general, was the big issue. Perceptive had an easy-to-deploy workflow management solution but lacked case managenent or extension beyond departmental applications. Combining Perceptive and Pallas Athena should should work well. The challenge and potential is to create synergy and focus with Lexmark’s growing managed print services business — which means focusing on office document automation that supports the knowledge worker.
In 2007 Larry Elison said: "We think the paradigm for doing business, how people do their daily jobs is changing and is moving to a search paradigm.” For years Oracle has worked on weaving its search functionality into and across Oracle applications. It's called Secure Enterprise Search (SES) and it's invisible to Content & Collaboration (C&C) professionals because it's inside the Fusion platform, rarely sold as a standalone solution. With SES integrated in Oracle products, Oracle envisions "action-oriented" enterprise search. What does that look like? When workers don't just search for pending expense reports, they also can pay them from the search UI.
When search is an embeddable service, it makes it easier to use search to get tasks done. This is why I think infrastructure vendors (HP, Oracle, Microsoft, Dassault) acquiring specialized vendors (Autonomy, Endeca, Fast, and Exalead, respectively) is a good thing for C&C professionals. What's missing from these marriages? Semantic search capabilities -- where search surfaces unstated concepts and allows users to visualize the patterns and trends locked inside volumes of text. (IBM is one to watch for this vision -- a leader in BI, they have recently commingled their search and content analytics technology to create a new product.)
It seems that every week another vendor slaps “big data” into its marketing material – and it’s going to get worse. Should you look beyond the vendor hype and pay attention? Absolutely yes! Why? Because big data has the potential to shape your market’s next winners and losers.
At Forrester, we think clients must develop an intuitive understanding of big data by learning: 1) what is new about it; 2) what it is; and 3) how it will influence their market.
What is new about big data? We estimate that firms effectively utilize less than 5% of available data. Why so little? The rest is simply too expensive to deal with. Big data is new because it lets firms affordably dip into that other 95%. If two companies use data with the same effectiveness but one can handle 15% of available data and one is stuck at 5%, who do you think will win? The deal, however, is that big data is not like your traditional BI tools; it will require new processes and may totally redefine your approach to data governance.
Perhaps no one understands better than Dan Ranta, Director of Knowledge Sharing at ConocoPhillips, that the challenge of sharing knowledge is very real — while the potential payoff can be large. Seven years ago, ConocoPhillips launched a large initiative to create internal communities of practice that would enhance knowledge sharing within the firm. With operations in more than 30 countries, encompassing job sites often in remote locations, the international energy company knew that to continue on its success trajectory, it needed to rapidly and effectively harness the knowledge of its highly skilled but geographically distributed workforce.
Today, the ConocoPhillips' knowledge-sharing program — built upon 150 global "networks of excellence" — is ranked as best-in-class across industries, and has documented hundreds of millions of dollars in estimated cash flow from its start in 2004 to the present. To learn more about how firms can drive business excellence with formal, global networks, I spoke with Dan in preparation for his keynote this week at Forrester’s Content & Collaboration Forum.
1) Can you explain the reasoning behind the proactive and reactive components of your networks of excellence?
Enterprise Architecture is a challenged role in IT. While more than 50% of all IT shops – and all large IT shops (greater than $100M budget) – have an EA practice in some form, most EA teams struggle with defining a mission that is relevant to their business and executing on this mission to produce the benefits their business needs. This struggle leads to frequent re-organizations, struggles for credibility and influence, and often an EA focus on the low-hanging fruit of technology standardization.
But this is changing.
Last year, Forrester teamed up with InfoWorld to select five EA programs that were having a measurable impact on their businesses. Our purpose for this awards program was to spotlight highly effective programs that embodied practices that we could all learn from. We found EA programs that were producing results ranging from saving millions of dollars per year in IT expenditures, to guiding IT transformation into business partners, to guiding business planning.
We are seeing firms migrating away from traditional IT-centric approaches. Why? They have to: Customers are now empowered — and companies are not. So you have to ask yourself a few questions:
How long will packaged apps survive?
How long will it take before customer engagement wins out over the desire to control?
How do enterprises prepare to move to a federated deployment approach to meet process goals?
Federated deployments grab best-of-breed functions from the app Internet and SaaS-based solutions and use emerging technologies like dynamic case management, analytics, and collaboration. Figuring out how to implement these types of deployments to meet the business process needs companies will have in 2020 requires Big Thinking — and we will be addressing this as one of the main topics of discussion at Forrester’s Business Process Forum next week in Boston.
We at Forrester have written a lot about the “empowered era” in the past year. We’re talking about the empowerment of customers and employees, the consumerization of technology, and grass-roots-based, tech-enabled innovation. There are lots of great case studies around illustrating these forces and how they can benefit the enterprise, but those success stories are only part of the picture. Behind the scenes, there is disruption and confusion about who’s planning the road ahead regarding the technology in our organizations’ future. It used to be that the CIO made sure that happened by making it the exclusive domain of strategic planners and enterprise architects. But isn’t centralized — and IT-based — tech planning the opposite of empowerment? Wouldn’t sticking with the old approach result in missing out on all this employee innovation that’s supposed to be so powerful? Should the CIO no longer establish the technology the enterprise will use? Does the empowerment era mean the end of tech planning as we know it?