Courtesy of Software AG's David Ferré, below is a transcript of the webinar session on 'Enterprise architecture as an enabler for effective innovation management' to Build a Thriving Enterprise.
Enterprise architecture as an enabler for effective innovation management
Innovation has become increasingly critical to the survival of companies in today’s febrile business environment. It is an essential part of staying ahead of competitors and mastering digital transformation. Innovation is a two-way process. Business strategy and ideas can lead to innovative, potentially patentable business models, products and services. Technology innovations open up new opportunities to, e.g., offer a special customer experience, as well as sleek, self-learning operating models. In this presentation, supported with a short demonstration of Software AG’s EA solution, Alfabet, we will look at how EA can facilitate innovation management with capabilities such as impact analysis and innovation road mapping.
Welcome to everybody. Thank you for joining this presentation today. And thank you for the organizers for giving us the opportunity to present.
I'll be talking about Enterprise Architecture and Innovation Management, and how one can help the other and how is enterprise architecture. Practitioners can get involved in the innovation management process.
To do that, I'm going to use a couple of slides to talk about the topic.
And then I'll actually close with a short demonstration showing how we do that using software ages, enterprise architecture, tool, alphabets.
Start off with the topic of innovation, I went on mute, for some reason, but I'm back.
And what I wanted to do is start off with some inspiration, some of the positive things that might help us to get involved in innovation.
And some quotes, so to do that.
I'll just pull in the quotes. The first one here is actually from Charles Kettering.
Charles Kettering, is apparently a holder underneath six patents.
He was head of research for General Motors for a long time.
one of the things he said is that if you've always done something in a certain way, it's probably wrong.
I think there's a quite provoking statement because it really tells us to question the things that we do and how we do it as a source of innovation.
because many things we do, we do out of tradition, not necessarily, because this may stop optimized way.
Another question here from Edison, He's talking about the value of an idea, inherent licensing, the using of it, and he's really encouraging is to be practical nuts us, too.
Do they philosophical?
Part of innovation, come up with the good ideas, but just have to put our hands, get our hands dirty, and try them out, and that's the only benefit, really, of the idea at the end of the day.
A third one here is from Tom Fessenden, Tom Fast, and that she's one of the founding members of the team that created MTV.
And he said Innovation is taking two things that exist and putting them together in a new way, which with music, and video, and channels, he did create MTV, but I find this good, because it really means part of innovation is just taking a look around, us, and trying to think about how we could do things in a different way, and that the solutions, behind innovation might not be that far from, from, as they might be in front of us.
We just need to try out some combinator work.
And the last one is here from Alfred Nobel, and he said, If I, if I have one thousand ideas, 91 turns out to be good, then I'm satisfied.
And this is really saying, Don't don't be disheartened with failure.
Uh, if you don't try things and you'll never reach anything, in part, to try things, is that some of them work and some of them don't, and so, this should really encourages to keep innovating.
So, with that, I'd like to have to take in some inspiration to, that was a carrot, and this is more like mistake, say why we need to innovate. And really, it's more important than ever before.
And this is just a graph showing the average life, lifespan of a company on the SP 500. There are many reasons that lifespan is getting shorter. Also investment life cycles are getting shorter. But one of the reasons is that companies are just not surviving as long as they used to.
And this has to do with various things.
We see things in the market changing this first mover advantage and brand building want to be increasingly associated with digital projects and services. So we need to be innovative in this area.
But also, the innovations behind that becoming, are coming out in shorter and shorter cycles in shorter lead times.
So we have to be extremely aware of what's going on around us to be able to keep up with the innovation that's going on around us, and to be able to keep ahead in the market.
And in the markets that we're in, it might be that when it takes the oil is not a topic, it is obviously in some digital markets.
But it's also coming, coming outside, breaking into something that the automotive market is extremely difficult, we've seen that with innovation teszler.
Certainly, they entered that market, and certainly caused a radical change to that market.
But it's unusual.
So it's really good to be ahead on the innovation curve, it gives you a big advantage.
And obviously, there are many companies and organizations that we know, where do two, either not realizing in innovation, or changing the market, or not reacting to it, these companies are no longer existing, or no longer speak as well.
So this really is, it wants to underline why we need to innovate.
Now, I know, think about innovation, when we talk about it, and our team, we tend to look at it from two directions.
one is technology innovation.
And this is really saying, OK, in terms of our innovation process, what's going on outside our organization, which is going to change and impact us.
And how do we need to react to that?
Then, we talk about business innovation, and this is really the opposite side, saying, OK, what are we as an organization trying to do to be innovative in the market? And it's two different questions behind it.
Technology innovation is a bit like, what's this fall?
And this is, I've just invented the wheel, and what can I do with it?
And the other one is saying, OK, I've got this great idea for an electric car, but how do I realize it?
So, it's two different approaches to innovation. And both of them are valid in every, probably, every organization.
So what can we do as a practitioners' to nurture innovation, what sort of things stand out?
I want to go through four of these.
1 is two, actually, and this is especially in the area of technology innovations, just gathering roadmap those innovations.
Have some idea and some structure behind what's going out in the world, what's going on in the world, and when we expect it to happen.
The second is to then look at those and look at our own business innovations, and understand their impact and potential.
A third one is, if we want to, once we've understood the potential, then act on it, then start road mapping the implementation of that innovation, and this becomes very cool or EA work when we talk about transformation planning. This sort of thing.
And the fourth one is to involve people, encourage collaboration around innovation.
And innovation is something that's not best done alone in the corner.
It's sort of something that if if there's if it's a group activity. If it's a community activity, a lot more ideas come up, and there's more inspiration.
So let's look at these in a bit more detail.
So if we talk about gathering and road mapping innovations, um, one thing has to be said is that this needs time. It's not something that's a free lunch.
If we do not dedicate, um, people in our organizational part of the time, if people in our organization to do this.
Whether it's it within the EA organization or within the product houses, or wherever innovation is being looked at, and then it won't happen.
Why do we want to gather them, want to give structure to what to our innovation process to help.
Um, Define a process which gives us insights, decision making, et cetera, to make sure that our organization, in a way, is, B, being showing due diligence in how it how it works with innovation.
The other is it avoids duplication if we find out that the same sorts of things are being looked at in various parts of our larger organization, then we can hopefully consolidate that.
and those two processes can feed into each other, so it happens more quickly.
It provides transparency in terms of what's going on in the market, road mapping, the innovations that we gather, that is not implementation.
This is just saying, OK, when do we expect something like artificial intelligence to be big to impact our organization? When do we expect to be able to use it?
This helps provide a timeframe for our asset, but it also supports decision making and communication.
If we have a transparent roadmap for, for some of the main things that we're looking at, then it helps explain why we're not doing this year, this, this year. But we're focusing on this topic.
Um, the next topic, it was after the gathering and road mapping was the assessing of impact and potential.
And many of these things are the same, whether we're looking at technology or business innovation. It's like differences.
But, obviously, when we do this, we want to consider two things.
one, is, what is the business impact of the innovation that, that we see?
This could be the, an innovative, new product, that we're doing a business innovation way.
We want to know, OK, how much is revenue, where you're going to get? Is it going to involve a strategy change, or a marketing change?
What capabilities, processes, or organizations do we need to deliver it?
Um, or, it could be technology innovation, where we want to understand, is this new innovation going to affect the way we create products?
Yeah, we want to understand this sort of business impact, but we also want to understand whether it's going to change our technologies.
Do we need to implement new technologies, or do we need a new platform strategy, service strategy, et cetera, et cetera. And we want to look at these two things from different perspectives. Maybe from more than two perspectives, I'm sure something like finance would be a perspective.
The sort of questions we might be asking is, are things like, is this opportunities strategic or operational? Or, we're looking at new business models or an innovation that's going to make our operating model work for half the price. That would be big in innovation.
associated associated associated with that. We'd want to understand the KPIs, What outcomes are we expecting, an increasing customer engagement, for example.
And we'd want to measure that.
We want to look at timeframes. When will this be realized? When we were the innovation be available when come our organization, our specific organization, digest this innovation and make use of it, And that's an internal roadmap.
We look at feasibility, do we have the skills?
If not, when can we acquire them? How do you want to address skills? How do we want to look at innovation realization the incubation approach.
But we also understand things like our standards being developed, if not, other risks involved that they might be, and that we might go down the wrong track.
Is there any architectural impact, its major, and obviously, cost is always factor, and we'd be looking at things like acquisition costs, know-how transfer, implementation programs, really strain financing, et cetera.
The sorts of assessments we do, obviously, we want to communicate and would use, not necessarily portfolio diagram. So, before I go diagrams are quite good for communication.
Radar diagram, so whatever we might use, but we need the sorts of imagery to make things that we found out with our assessments, easily digestible to the people that making decisions.
It's typical that we have this type of visualization.
Let me look at the actual implementation.
Don't know, gathering, we've done an assessment, We've decided to go for a specific innovation, then, we'll be looking at the classic, sort of transformation program, obviously, linked with some major, maybe, milestones inside, or outside the organization, concerning, in cases, maybe, of technology innovations.
And, typically, we would do this, This is, again, charts.
And we see here release trains program increments, and we see certain milestones, dependences, that's part of a typical rollout.
But, we'd also maybe see things like this. And, this is where we're looking at, OK.
We have an understanding of our operating model, which organizations are in processes, An IT is involved, and are we, do we have a migration plan? And this is the sort of thing that we're looking at, which might help to help us communicate better with certain stakeholders, when they'll be moving from doing things one way to another way.
And important also, is outside the KPIs for business, OK?
Based on this sort of approach that we're taking with our innovation, we expect, in this case, our customer engagement be better, And we've got a roadmap for when we expect that engagement.
This obviously puts our neck in the news because it will be measured by it, but it's also part of the road mapping of the innovation.
We don't just want to understand the implementation, We want to understand the benefits, and have milestones about when certain things, such as products and services are going to be available.
And, last but not least, we talked about involving people in listening. And the three things we can do there, one, is sharing the knowledge Sophie.
Do gather and collect the innovations.
We can obviously, making that available in portals, that share that knowledge, That people also have that in the organization.
It also make transparent, apparent where we are, and what we're looking at.
We could obviously create teams, MS teams, groups, et cetera, et cetera, to talk about certain things, and then use that as a feedback and communication loop onset and topics.
And we can maybe encourage people to self registration, register for these things.
It's good to be open.
I imagine if you have an ideation process and every idea that comes in is actually then rejected the after a while and MRI ideas come in.
And even if we reject an idea, we're obviously not going to accept every idea that comes in. We'll probably reject most of them.
But, it's good to be communicative, in that, to say, OK, we've looked at it. This is the results of what we've seen. Maybe it doesn't fit into our core business model currently, et cetera, et cetera. A bit of an explanation behind that.
Sponsor experiments, obviously, that requires budget.
But it's very important to try things out. Without it, there's no innovation.
And as we saw in one of the quotes at the beginning, some of those will fail and we have to tolerate it.
The result of not tolerating failure isn't nobody tries to innovate, and that is obviously causes too stand where we are and go nowhere.
So those are some of the thoughts I just wanted to.
That plays, before going on to the demo part of the presentation of that, I'm going to leave the brow, leave the presentation and go over to the browser.
My session was just about time out. Here I'm actually logged onto Alphabet.
Looks quite busy.
This is actually the interface where we'd call it a profile for a program manager of an application portfolio program. that's not the topic today.
I just wanted to use it to point out that we have this idea of different access for different types of users. And here is an APM Program manager.
He's got information here over the most expensive applications, how many are being faced in and out.
And he has certain objects that he looks at all the time here on the left-hand side, such as capabilities, applications, IT, and locations, this sort of thing.
But we're actually talking about innovation, so I'm going to change profile. Typically, you don't have one profile.
But you can change between different profiles, and we're going to look at the one for the Innovation Manager to look at the sorts of things that we might want to consider.
It's part of the work and how that is supported with software. So, here we are logged on as an Innovation Manager.
We see here that the sorts of things that he's looking at on the left-hand side are different.
He has things like innovations, ideas, trends, patents, strategy, and then some operating models, capabilities, such as such as operating model artifacts, such as capabilities, processes, and organizations.
This is configurable.
The sorts of roles that we have in the organization tend to be not necessarily the same in every organization.
It's also, some people have fuzzy roles and not necessarily core roles. And so, these sort of things need to be configurable.
You can obviously, here create new things as part of it, see recent objects that have been visited, and there are certain widgets up here that explain, express the status of certain projects. What we also see here is an innovation roadmap.
So here, we see, actually, this is actually a business innovation.
I can tell by the icon, but this is business innovation. And we see things such as milestones.
When do we expect this innovation to be available, and when do we expect as an organization to realize benefits from it? So we can do some road mapping to manage the expectations within the organization.
What I'd like to do is look at this topic of ideas. First, ideation is part of the innovation process.
And here we just have an overview of the list as a tabular view of the ideas that this innovation managers receive to look at. Some of them have already been reviewed, so he has a little box. Here are reviewed ideas. Some of them are still open.
And there are filters. And the typical things, you'd have to be able to look at this in different perspectives.
You could sort it, for example, by impacts or by name, et cetera.
I want to take a closer look at one of them. So, I look at this one here, establish a new customer advisory service.
And this is an idea that was submitted by somebody else, and we see certain things that were entered by the person that submitted.
It was actually submitted here by this guy called Picker who's in Sales.
And, um, it's actually got a status here, it's gone through to approved and the description, the description here is something that the submitter Putin, it might be enhanced, obviously by the person who's reviewing or looking at it later.
And we see here's some business benefits that they described.
And during submission, they have the option to associate it with various objects. That is something that is in context.
So, as a salesman, he has actually offered as objects, in the way this is configured.
things like products, the processes that says processes and come to the applications he uses he does not have to associate. It, obviously, just makes it easier to direct it to a certain person to look at if it's associate.
And that's configurable.
I could like this idea. If I do, then the number of likes will go up.
So, this is sort of basic information.
We also have the possibility here to look at her collaborations. This is a discussion thread that was started for this idea and there are different people that have contributed to it.
And such these sorts of discussion threads obviously useful in involving people in getting the social community know-how approach.
And there are two things I'd like to look at before leaving this, this dashboard, as we call it.
one is this, this is, this idea is quite advanced in the analysis.
And it's been broken down actually into here into what we would call demands or epics, so it's been broken down into pieces other than actionable.
The idea is submitted was not actionable, but we've broken it down into actionable ideas. And we've actually given those then roadmaps.
And we've associated, actually, SP Here is a project with one of these demands, so we've actually gone a step further and started to create project.
So, this is the way that we can go from the idea to the actual implementation, mantrap some sort of transition from one to the other.
This is just a pie chart showing the status and below, we see the impacted architecture. So, we see that this is going to impact certain implicate applications, capabilities, processes, and these are actually products, technology products.
And this helps us, obviously, to understand the impact of the idea and to plan our development and how we might want to change it, but it also helps us consolidate.
We might actually see there are other ideas or other demands out there that impact to similar objects, and we can then do a consolidation analysis.
With that, let's go back to the homepage.
And just take a quick look at here, My ideas, So this is something that each user could have.
And this is basically a view of the ideas that you've submitted yourself.
The viewer, so similar, it's tabular, But it can be changed if you want to make it more colorful.
one of the things that you can do here is also look at the workflow, this workflow behind this process.
And, we can look at this and understand, OK, currently, the idea, I submitted it to the owner of the product that I associated it with so we can follow the steps, step by step. How my idea is being processed if we allowed users to see this, which we would, we think transparencies is best.
So, with that, I'd like to then switch over to actually the innovation side of the discussion.
After that, we're going to look at the innovations here.
And here, you'll see that we have here.
Business innovations, it's actually split into operating model innovations and product and service innovations.
This is a grouping structure that you can freely describe yourself as a taxonomy in that sense, and same here with technology innovations.
We're going to take a closer look at these technology innovations.
We've decided to split it by what it could impact. So we saying, OK, this could be something impreza customer experience or fintech.
This is actually a bank, our IOT technology attempts or our mobile technologies, as sort of this sort of thing, idea.
If we open this up further, we see that.
the actual innovations are in this group. So we say.
A set of innovations have been defined that are going to impact customer experience and one of them artfully artificial intelligence Because I open up again.
And what we have here is the possibility to say, OK, this innovation of artificial intelligence, It's not like one single innovation.
It's actually a grouping of technologies that are coming together to give us to give us this so we can describe that innovation.
And this gives us the option, If we just click on one of these, to actually then link into our normal technology, a classic technology architecture. So, here, we see, OK, this event stream processing.
It's already being supported or tried out in our organization by certain products.
And if I want to find out more about that, I could drill into this, and I'd come to the information on the technology architecture, any standards that we've defined, et cetera.
Uh, any usage of that, I could say, OK, which applications use this technology? It just gives us a link from the innovation into the classic architecture from the technology perspective.
If we take a look at the artificial intelligence, it's an innovation itself, We can see more information on what's been gathered. What's in our venture of innovations.
We see things such as here the probability available, probable availability data, benefit, benefit realization, date, it's been assigned to an owning organization.
And here we see that, although it's a scientific, customer experience is also seen to be impacting IOT technologies in fintech.
So, we see this being used in different ways in the organization.
Um, we also see the pin certain assessments already that have been done. We can say that transformational is the probability.
We've assessed risks, benefits, alignment, and effort. This supports is in our portfolio decisions.
We can relate it to any ideas that have been submitted. So, here we see are the idea that we looked at the new customer advisory service.
Something that is also looking at changing the customer experience, we've related them, there any trends that we're gathering.
And here, again, we see a roadmap.
Another aspect that we can consider here is also this business survey.
And, what has been done here is a link to the other side to say, What's the business impact? And this has been done in this case, By looking at the capabilities you're impacted.
So, here, we see a capability map to the organization, and we've highlighted certain capabilities that we really think are going to be impacted by artificial intelligence.
What we've also done is then initiate a survey, and this survey has gone to the people that are responsible for these capabilities.
So if we look at this, status of the survey will see that there are three participants. They have different roles. one is the owner. The capability to them have been given a role innovation contribute to fill the capability, and they've done a survey.
They figured it out, and the results are actually here in this scorecard.
And this is just another way of having engagement with the different stakeholders to try and get feedback, try and get them in the innovation process.
If we go a level higher, again, will we, we're what we'd call the group level.
We see here, again, a roadmap. What I wanted to just point out, is the portfolio assessments.
We, there are various here that have been defined.
If we look at one of them, just quickly, that we see here, one, OK, what is the risk of that?
The innovation proposes in terms of our ability to use it and what is the benefit.
Obviously, the things here at the bottom, with the low risk and high benefit of the things are going to interest us.
But we also see we have further indicators, such as the color, which is the, the impacts, whether it's going to happen to be transformational or not.
And here, it's very transformational. And the size, which is the effort.
So obviously, something like this, which is in the right quadrant and little effort, and big impact, and sort of thing we focus on, it's a, it would be, considered more of a quick win.
But this sort of thing, again, just supports that decision making process.
And if we go to the very top level, again, to the technology innovations, we see the roadmap that we started the presentation. And, this is just one way or another way of communicating.
The status of our innovation management program, but it also helps us to see certain things.
That's roadmap, is, we call it a circular roadmap. There's probably a better name for it.
But really, it's showing here with the different shows how far in the future we expect the innovation to occur and become relevant to us in this case.
So, the further out, the less likely we have urgency to look at it now.
We also see how many areas it's going to impact in our organization.
That is the different segments, obviously, the ones that are in this three, the ones that probably have a bigger impact on us. So we might want to focus on those.
What we also see is a color. This is red is transformational and a shape.
And the shape here is actually, there are three shapes that are used in this view.
one is saying, OK, we've gathered the innovation.
We, we've documented it.
The second says that we've broken it down into executable demands and we saw that we can do that.
These executable demands are associated as something that we understand so we have an idea of what we can do.
And the last shape, the diamond says we've associated with a project. That means there's something already happening.
Now what this helps us do is identify things that urgency wrong.
This case is urgently wrong with this blockchain.
It's very transformational, but nothing has been done with it yet. We don't have any idea of what we need to do with it.
We don't have any projects, but it's not far out the same with this chatbot advisors. So again, it gives us the ability to say, OK, this is where we are and this is why we have to act urgently on this topic and support those sorts of management discussions.
So with that, I'll just bring in the presentation again and close the demo.
And anyway, just like two, go back to the first slide to summarize again, the sorts of things that we were looking at.
Sorry. I'm just flashing of it here.
This one, where we look, we talked about gathering and road mapping innovations, assessing their impact and potential, the roadmap topic. Once we've got the innovation, just made the decision and the fact that we need to involve people.
And listen, I, these are, I think, really for core things that we as he can contribute to innovation management, and I think it's very important topic, Which, If we can get involved in it, I think, helps us.
also with our profile in the organization, but also, it's something we with EA, especially with the knowledge that we have in the sort of tools that we have, can really contribute to ensure that organization is better innovating.
So, with that, I think I'd just like to close the presentation part and open up the Q and A Michelle, I don't know if you have any questions for me.
Yes. We do have a couple of questions.
The first one, you show the innovation radar at the end, Can I change this report to use different KPIs or attributes?
Yeah, the circle with the different triangles and dots and colors on it, this is a report that we have, we call it a circular read might report.
And, it's, it's one of the configurable reports that we have. We have many different types of reports that federal configurable, such as the Gantt Chart that we saw on the portfolio diagram we saw. And we have reports assistance to help us create those reports.
And so, you can change the KPIs on there.
You can change also, uh, what's represented for each one obviously, So you could, instead of shape, you can have a color for a certain KPI, or color or shape, you could change that.
But you can also create these sorts of secular roadmaps. We call them for different types of objects, so it doesn't have to be for an innovation.
It could also be for your application landscape.
If you have a roadmap for that, or for your strategy, strategic themes that you wanted to have, that sort of roadmap chart showing the different strategic themes. And which areas of the organization they impact. So yes, it's something that you can do, and it's a very useful tool.
Great. We have another one here, specifically to slide 10, And the question is, What software products were used to produce the innovation roadmap on slide 10?
Um, the innovation roadmap was he was Alphabet. That's an alphabet gunshot.
The assumed rate, I'll just go to slide, tend to make sure we're talking about this the right thing.
So all these are actually screenshots from alphabet, or three of them.
Great, and on that note, can Alphabet integrate with RS?
Yes, there's a standard standard interoperability that we have and it's a standard module.
This supports the exchange of artifacts between the two products. You can also link between the two interfaces, that sort of thing.
Great. Thank you. So the next question is: Do I have to use the alphabet for our discussion on an idea, or can I use our standard collaboration platform?
OK, yeah, the way I showed you here was with our internal discussion thread, but we also have integration to collaboration platforms, such as MS Teams, and you can then use that to show views and diagrams and things like that.
And I mean MS teams, you can have discussion which is being contribute to either from the MS Team's interface or from the Alphabet interface and it all comes into the same discussion. So that's sort of collaboration with external platforms that we support.
Question about Kanban: do you support Kanban for IDS?
Yeah. Good question. Yes, we do, actually.
We have, again, this one of these reports that we have, you can configure and it has an assistant And we provide Kanban sample reports for ideas, for demand's, features.
And also, for other artifacts, you don't. It's, again, it's a report that you can actually focus around any type of artifact and you can use it to change the status or to change the relationship to another object.
That's quite powerful and it's quite useful tools, I quite like eating them alone, different purposes.
Great, and we've got one final question.
Is the business capability road the business capability map following a specific methodology or a standard, for example, telegraph as far as that compatible with RS and or arch made?
The capabilities? We have them. Yeah. They're compatible. We actually have as part of the standard interoperability, also the exchange of capabilities.
Um, the methodology is it's something that I think is the same in most frameworks, for how you create capability maps.
I don't think that's an issue, and it's toe golf is one of the ones that we support as he's Archie Mate.
Um, yeah. I think the answer to those questions is, yes.
Great. Thank you. Yes, so with that, we've completed our Q&A portion of the session. We'll go ahead and wrap things up.
Thank you, David, for presenting. And thank you so much to the organizers for making the session happen today. We so appreciate it. And thank you to the audience for joining us in today's session. Again, the recording will be made available, will also follow up with you, And feel free to reach out to us if you have any other questions.
Thank you so much.
And thank you, Mike, from my side.
Director Product Management,
David Ferré is Director Product Management at Software AG for Alfabet, the leading EA and IT portfolio management solution. David’s responsibilities include market analysis, use-case and value-proposition deduction, sales enablement, and topic evangelism. Previously, he was a company officer and Vice President of the Data Centre business unit with Beta Systems Software AG, where he had P&L responsibility for their identity management and scheduling portfolios. David graduated in mathematics from the University of Sheffield.
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Read this article about Cisco, one of our finalists, in the category Best Achievement of Operational Excellence in Internet, Education, Media & ...