Business Architecture: Critical for Digital Transformation

This Advisor presents an overview of improving Agile techniques and practices by using design thinking within the Agile space and describes three techniques from design thinking methodologies that tend to yield benefits to Agile practitioners.

Can a method like EVM, developed to control projects with well-defined objectives, be applied to control product development initiatives that evolve continuously toward a “moving target”? In an Agile environment, we are faced with the dynamic evolution of a finite boundary of integrated scope, cost, time, and resources; this finiteness — essential for business management and decisions — is the cradle for project management techniques, tools, methods, and frameworks. The EVM method was first developed to help with managing complex R&D projects mostly characterized by an unstable, volatile, and evolving scope. It is therefore no surprise that EVM applies to Agile projects.

Every business must deal with crisis, risk, and compliance challenges. Teams chartered with addressing these challenges are often split across business units and regions, which fragments crisis, risk, and compliance management efforts. Business unit silos and related complexities obscure ecosystem transparency, which in turn constrain an organization’s ability to identify risks, assure compliance, and prevent and disarm crises. Business architecture delivers business ecosystem transparency as a basis for improving a business’s ability to collectively address challenges related to crisis, risk, and compliance. 

For technology-dependent products, companies, institutions, and even societies, sustainability depends on learning how to manage technical debt. Like most transformations, incorporating new practices into our organizations will likely be an iterative process. We already recognize the problem, and researchers are making progress, albeit mostly on technical issues. This Executive Update proposes a policy-centered approach to the problem. It begins with a principle that can serve as a guide for constructing technical debt management policy, and then shows how to apply that principle to develop nine recommendations that enable organizations to manage technical debt effectively.

If you start changing an organization toward an Agile mindset, there’s no real end. Agile is about creating an organization of continuous learning and the transformation is done when there is nothing new to learn, which will probably be never. This puts an enormous challenge on middle management.

Beyond buzzwords, what we are seeing is a seismic shift in the role of technology in organizations. Technology is more and more embedded in everything we do as we move into an increasingly hyper-connected digital world, a world in which technology is driving significant social, organizational, and industry change.

At the Cutter Digital Transformation & Innovation Bootcamp, Cutter Fellow and Harvard Business School Professor Karim Lakhani talked about digitally-driven disruption of traditional business models for value creation and capture, discussing platform models like Facebook and Twitter. To date, Twitter has clearly done a good job “creating value.” But unlike Facebook, it continues to struggle with the capture part of the equation.

Roadmaps have two key functions in strategy planning. The first is to outline planned architectural changes that will deliver the required strategies; the second is to outline alternative ways to achieve the same results.

Artificial general intelligence (AGI) is currently emerging as an area where recent developments are likely to have a major impact on the way organizations do business, societies organize themselves, and even on how we address values and ethics.

The fact is that AGI already exists in our daily life. A common example is the GPS systems present in many new cars manufactured today; and let’s not forget the drones being used to deliver pizzas and cars that drive themselves. While automatic pilots have been used in commercial planes for quite some time, what AGI is about to offer to general business and human activity is well beyond what most of us have seen so far.