Download presentation
Presentation is loading. Please wait.
1
Disruptive Technology...
Changing Enterprise Architecture as we know it David Turner Head of Architecture @djturner90 davidjamesturner Good afternoon, pleasure to be stood in front of you all this afternoon to talk about DT and more specifically to look at… how modern Enterprise Architecture is having to change to meet the demands of the business, deliver innovations and plan for disruptive technology As Head of Architecture at Hermes I spend some of my time working with other IT stakeholders and business areas to investigate and evaluate potential disruptions: 3D printing Robotics Smart machines internet of things crowd-sourcing Gamification Wearables So would like to expand on a little of this and discuss how disruptive technology is changing Enterprise Architecture as we know it...
2
About Hermes Key facts: Re-branded from Parcelnet in 2009
Handled nearly 220 million parcels in 2014 Hermes is now the second largest carrier in the UK to Royal Mail Largest carrier for FGH, JLP, Next, ASOS, QVC, Clarkes and more… Presence in UK, Germany, Austria, Italy and Russia Almost doubled in parcel volume over the last 5 years Operates a network of over 10,000 lifestyle couriers and 5,000 ParcelShops designed to give end customer choice and convenience Largest European PUDO network (35,000+) Launched C2C parcel delivery service myhermes.co.uk in 2009 But first a shameless plug…
3
Hermes Today We recognised for low cost and multichannel choice.
Our Services: Fully tracked parcel delivery services: 24hr and 48hr services, 7 days a week To home via 10,000 95% 1st time success rate To ParcelShop via 5, % 1st time success rate Offer International delivery services So certainly in our industry we are seeing the advent of the digital business And seeing an increase in the pace of potential disruptions through new technologies - both in our industry and looking over the fence in near-neighbour industries like retail
4
Outline What do we mean by Disruptive Technology? A look at some potential disruptions 3D Printing Gamification How Enterprise Architecture is changing? What does that mean for EA? Tips on how to tackle this
5
Disruptive Technology
Helps to creates a new market or entirely new industry Will eventually disrupt an existing market Displaces earlier technology Improves a product or service in a way the market does not expect Example So an example would be the way the personal computer displaced the typewriter, which changed forever how we work and communicate Arguable the laptop and mobile computing then created the possibility for a mobile workforce who could connect to corporate networks on the move and collaborate anywhere. In many companies the PC has been displaced by the laptop The rise of tablets/ smartphones, the app market and how this has led to the consumerisation of IT arguable is displacing the laptop The point is there have always been disruptive technologies – the locomotive, the mass-produced automobile, the light bulb However, in the past the cost of entry has always been high which creates a barrier – meaning few ideas made it through The digital revolution, the break through of this idea that every business is a digital business rewrites these rules because all of sudden the cost/ barrier to entry is lower. Digital disruption is happening at a much faster pace than every before
6
Sustaining Technologies Disruptive Technologies
The Challenge Sustaining Technologies Disruptive Technologies Incremental Improvements Already established technology Existing market Existing customer base Sits more comfortably with corporate goals Lack refinement New technology Market may not yet exist Lack of an audience Value difficult to measure Sustaininng Technologies – sit more comfortably with organisations because they sustain their focus, goals and customers Improve existing products and increase customer satisfaction Improvements in the things that the current customer wants E.g. Christensen gives in his book is disk drives – with high capacity and smaller. This was driven by PC customer’s wants Disruptive Technologies Initially do not improve the focus of the company Markets may not yet exist – they have to created They may also underperform established methods Which way does your organisation swing? So Clayton Christensen summarised well the reason some larger corporate companies fail.. They stay close to their customers
7
Clayton Christensen… “…a more fundamental reason lies at the heart of the paradox: leading companies succumb to one of the most popular, and valuable, management dogmas. They stay close to their customers.” The problem is customers wield extraordinary power in directing a company’s investments particularly for large corporations as there is more at risk Before managers decide to launch a technology, develop a product, build a plant, or establish new channels of distribution they must look to their customers first: Do their customers want it? How big will the market be? Will the investment be profitable? But are these the right questions to be asking when looking at disruptive technology? Are existing customers the right people to be asking? Who isn’t use your product/ services? Why not?
8
Predicting the future is hard
One thing is certain… Predicting the future is hard So what do we do?
9
Look for what’s difficult and remove friction
“…we can understand the future if we understand what people are doing when it's hard” Henry Jenkins
10
Look for what’s difficult and remove friction
1999 2011 2013 1990 Each step in this evolution removed some friction versus the previous step. People struggled in the 90s to digitise their vinyl collections Napster – gave us peer to peer file sharing and playlist creation from our 400MB hard drive PCs, with 486DX processors! Enter the MP3 player… listening to digitised tracks becomes mass market. Enter Spotify… you can listen to streamed music on multiple devices (car, tv, pc, phone) at your convenience, And if you go premium go play offline And don’t bother to own the media!
11
Removing Friction Removes the friction of taking payments
More than 2 million US individuals and businesses use Square, and they process $15bn in annualised transactions Removing Friction Can Catapult new market entrants
12
Removing friction catapults new market entrants
Founded in 2008 Rent out lodgings – connects hosts and travellers without owning any rooms itself Opens up new opportunities for travellers and home owners 1 millionth booking in 2011 Now valued at 10 billion dollars 250 employees
13
A disruption long in the making?
Digitally disrupting your product and process People will never do it, it will cost too much Barclays account holders can photograph their cheques via their smartphones to pay them in Digital disruption..to build a better product experience Create stronger customer relationships Test and measure - expect and accept failures Small teams to generate innovations/ ideas quickly able to photograph their cheques and send them electronically from their smartphone - Barclays customers £300million worth of cheques are never paid in
14
And the disruptions just keep on coming!
Users and business colleagues are empowered by choice Thanks to consumerisation they now have more choices They are seeking help outside of traditional IT to deliver innovative business solutions Their expectations have changed Speedy delivery of new features
15
Printing is back and now it’s cool!
3D Printing….. Printing is back and now it’s cool! Printing is back and cool. Should it have died 10 years ago – remember the paperless office? But it’s back Actually 3D printing is 25 years old! 40 manufactures worldwide Consumer-oriented devices Makerbot, Airwolf, Cube Dropping in price all the time - £600 at Maplin for a velleman printer kit
16
3D Printing….. Or is it scary?
3d Printer – working gun, 50,000 copies of blueprint were downloaded almost immediately 3D printer – counterfeiting goods, loss in intellectual property, toy manufacturers (lego). 3D Printing – chaos, who owns the templates, who is responsible for assembling the parts together, who is responsible for the quality 3D printing of tissues and organs (bioprinting) – print human skin for people who have been burnt Human liver tissue is been printed How far will it go? Will we be comfortable with it – if we were it wouldn’t be disruptive
17
3D Printing In Logistics
The end of the globalised supply chain? Massive investment from manufacturers Localised/ Regional printing Impact on logistics 3D print centres close to sales markets Reduced shipping needs Evaluation/ Action Longer term impact still unclear Next 5 years, “not significant” to “low” risk Observe, possible pilot 3D printing service Over the last few years, the technology has evolved at a rapid pace Market share of additive manufacturing is likely to grow. Rapidly growth in various 3D print technologies - more and more industries will invest in it. Localised printing/ 3D printing centres Will it reduce need for shipping? People just pop into local store 3d blueprint is purchased and transferred to a local printing station and constructed/ collected at your convenience Will the logistics firms of the future be 3D printing stations?
18
Gamification…..The Fun Way to Engage
The "gamification" of business processes One of the latest phenomena aimed at making the workplace more engaging and more productive. Companies are starting to recognising the potential benefits of gamification Apply feedback, measurements and incentives Same techniques that game designers use to keep game players interested To continuously improve business processes.
19
Increased customer complaints Lack of engagement
Gamification…..Why? Work can be boring Increased errors Increased customer complaints Lack of engagement Create culture of continuous improvements Clear and immediate feedback Believe it or not work can be "boring" And when it is… it results in errors, customer complaints, employee burnout High personnel turnover. So you need to increased employee engagement driven by well-designed business processes using gamification enables immediate feedback clarity of the goal and clear rules for engagement
20
Provide visible outcomes to employees
Gamification…..How? Provide visible outcomes to employees Assign value to each activity or task What and how will you measure? How will you reward? Metrics, UI, Game Design Use of game mechanics in non-entertainment environments Motivate a change in user behaviour Game designers spend a lot of time understanding how to keep players interest Data coming out of operational systems can be made visible and actionable through this automation, and gamification can be applied using technology already in Use by employees - desktop computers, mobile devices, wearables
21
Gamification…..Be Careful
Wow factor Cost versus Benefit UX/ Game Design skills Culture Big Data Plan for Iterations/ “Game Fatigue” Don’t fall victim to the wow factor Work with the business to understand the business processes that need improving May be to digitise the process first Costly to build/ implement and maintain versus benefit UX/ Gaming skills may be required Culture – not everyone is motivated in the same way. May back fire Big Data Data sets required – both structured and unstructured, high volume, low latency challenges Game fatique
22
Enterprise Architects…
This digital revolution will impact every business and not just those that deal directly with consumers Every business is an IT business Technology will change what we do – it rewrites the rules of innovation IT changes the way we live, work and play Which quite frankly is great news for Enterprise Architecture Organisations are refocusing their efforts on EA Great News! EA is now more important than ever before
23
Enterprise Architecture is Changing…
To meet new demands of the business To focus on business outcomes and results To proactively generate ideas To evaluate disruptive technology To determines the impact To create radars, transformation roadmaps To become a technical business partner Users and business colleagues are empowered by choice Thanks to consumerisation they now have more choices They are seeking help outside of traditional IT to deliver innovative business solutions Their expectations have changed Speedy delivery of new features Evaluating disruptive technology Likley to impact your industry Looking at near-neighbour industries to provide cluse Evaluating their capailities, use cases and opportunities
24
Vanguard Architecture
The EA disciplines… Vanguard Architecture The advanced guard, leading the Charge Primary Concerns: Drive innovation Disruptive Technology Foundational Architecture Maintain the estate Primary Concerns: Systems of Record Maintain primary technology estate Vanguard enterprise architects Primarily concerned with driving innovation with disruptive technologies Systems of Engagement – touch customers, partners, employees New channels and enablers via smartphone, tablets Focus on “Business moments” delivery Foundational enterprise architects Concerned with systems of record and maintaining the (primarily technology) estate ERP-type systems that run our core business processes Long development and deployment cycles BUT in reality the world doesn't divide in two that easily Have to balance the two Vanguard – 20% of your time
25
Roles and Competencies
Vanguard Foundational Business Understand the business, the organisation and the culture Understand and analyse the business model and ecosystem Focus on the customer Develop a keen business insight Adopt a global mindset Take accountability and behaviour with an entrepreneurial spirit Behavioural Think strategically Thinking creatively Influencing and persuading Risk taking – be bold Decisiveness – make a decision and act Technical Understand existing systems and technology Designing and developing solutions Integrating solutions
26
What does that mean for EA?
Identify disruptive trends and technologies that you will investigate Develop clear method for prioritising Work with business to understand opportunities Develop business outcomes statements Evaluate the opportunity, cost, risk and impact Prioritise into set of roadmaps Show timings Interdependencies across projects/ channels Firstly identify the disruptive technologies that you will analyse – more on this in the next slide Prioritise those that merit further investigation Rationalise and carry out deeper analysis in the context of business scenarios Interact with the business and other IT groups Develop business outcomes statements E.g. To deliver 100% first time delivery success to customers Evaluate Does it cause you to rethink your future state of architecture?
27
Identify Disruptive Technology
Build a process that quickly allows you to identify disruptive tech Market Research Industry-specific journals Look at competitors Near Neigbour Industries Hype cycles and waves Near neighbour industries can provide clues about how such technology may be leveraged So for Hermes that would be retailers
28
Build a Radar We love radars at Hermes – because our execs don’t like words It is an effective communication tool, can put it up in depts as a poster This one shows relevance, maturity, distance from the market
29
Build a Radar And this one Shows business segment/ channel Timeline
Colour coded relating to customer facing or operational And the horizon shows our business vision/ ambition programme So shows how we propose aligning to the business strategy
30
E.g. RFID tags Understand availability, maturity and impact of the tech Developed in 1980s Expensive Only used in high-value application Now costs have dropped Commonplace Hotel Room Keys Ski Pass What are likely use cases for the business? Use your radar to chart expected timeframes So in 1980s very expensive – one of early deployments Used to track high-value vehicles Track nuclear material It needed high-value to incur deployment costs Now costs dramatically reduced Commonplace Casinos used RFID enabled chips to communicate with sensors/ antennas throughout casinos Track gamblers average bets/ location of high-denomination chips Famously thwarted 1.5 million dollar robbery from Bellagio in 2010 Chips were immediately deactivated when they left the hotel
31
Develop a set of performance metrics Build into objectives
Business-driven Measures Develop a set of performance metrics Build into objectives Communicate with key stakeholders Increase Customer Satisfaction Increase business efficiency Increase in new revenue Faster time to market Decrease Business Understand the business, the organisation and the culture Understand and analyse the business model and ecosystem Focus on the customer Develop a keen business insight Adopt a global mindset Take accountability and behaviour with an entrepreneurial spirit Behavioural Think strategically Thinking creatively Influencing and persuading Risk taking – be bold Decisiveness – make a decision and act Technical Understand existing systems and technology Designing and developing solutions Integrating solutions
32
Use a heat map or RAG status to show benefit…
This shows timeline – years to mainstream adoption And benefit Colour code to allow execs to understand where to focus their attention
33
Create an Innovation Team and Charter
Clarify what innovation & enabling technologies means How it will be successfully delivered? Define purpose, scope and success measures Involves people from all across the business not just IT Gain executive support to officially empower the team Key metrics to measure Quality of the innovation Innovation reach, Small teams to generate innovation and ideas quickly Test, measure and repeat Expect and accept failures It can means different things to different people – it can be negatively charged Initiatives fail - become of ambiguous goals, inconsistent support from wider enterprise
34
And Those Pesky Drones…
How long before we see 30 minute delivery from point of order? 30 minute delivery for customers (initially within 10 miles of a fulfilment centre) Aim to have it up and running within 5 years. DHL already runs a regular drone service to a little German island in the North sea 2 years? 5 years? 10 years? 15 years?
35
Our Answer… We just so happen to share our name and it would appear logo! with a miltary UAV Perhaps we can use these to shoot down Amazon drones! That would certainly reduce their first time delivery success!
36
But they are disruptive…
Parcels/ packets under 2kg Customer within 10 miles of fulfilment centre Automous road transport more likely to impact Gartner 2014
37
Key Takeaways… Next Week? Assess current scope of EA
Include time for Vanguard Architecture Next 30 days Align objectives to business outcomes Develop an Innovations Radar Extend scope to an Innovations Charter in partnership with business Next 60 days Form a small innovations team Generate ideas/ prototypes Test/ Measure “ Signature-ready” business decisions
38
Takes months to mature from one level to another and is living and continually evolving, so this isn’t a short-term fix
Similar presentations
© 2025 SlidePlayer.com Inc.
All rights reserved.