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Enterprise Architecture Driven Innovation
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Q & A 2 B. Hartje When future state is unknown, defining the destination state is mandatory based on experience, market potential. this will help to understand capability gap between existing (current) and future (where we want to reach) so that building blocks can defined to reach that state.
by L. Yenda
Sunday, January 27, 2019
Webinar Q & A 0 A. Levine Have a look at questions and answers from the first session. Login to add your comments and any other questions below. Enterprise Architecture and Innovation  Session #1: Enterprise Architecture Questions and Answers Q: Incremental process improvements are innovations. Most management wants small wins for a new innovation program. A: We can declare anything an Innovation, and you are probably not wrong. Innovation context for these webinars is – a dramatic change or transformation of current value chain and the change is enabled by protectable thing that helps create a lasting competitive advantage. Q: How do we differentiate between Innovation and standard requirements that business comes up? - either to reduce cost, increase revenues etc... A: By Standard Requirements you mean – incremental or dramatic improvement to current capabilities. If these improvements already exist and competition is either using them or can adopt them, then there is not much of a strategic advantage. Addressing the standard requirements therefore will not create lasting advantage. The innovation requirements when addressed help create lasting advantage, monopoly like powers and help generate necessary margins to support the cause – the innovation was driven to do. Q: How do you quantify value of an organization you are not part of? A: There are two points – first understand what is Value Generated by the current Value chain. The Value is the reason why the Organization exist. Then the second question is what Value your Innovation help generate and more importantly – how the incremental Value will be distributed. For example – you know the Value generated by a hospital, government department, phone company .. you don’t need to be part of the company. Q: Are there techniques for quantifying value of an organization A: I think you are mixing the Value Generated by the Org/Industry versus the Value of a Company. There are many techniques to determine the value of a company. Most important technique is what somebody will pay for your company.  Q: How developed should an Innovation be before approaching mgmt for funding? A: it could be two pages, as long as you can convince somebody what you are asking for, what you will do and how much skin they and you will have in the game. Simple rule – less the better , less doesn’t mean it is poorly defined. We will more discussion during the remaining sessions to deal with this question.  Q: Do you think this method is valid for different cultures, like Middle eastern organizations? A: I think so – because innovation is often driven by the need. As long as there is need – the method applies. It is the communication technique that might be different.  Q: How do you cope when your org has many interrelated pain points and thus scope is too large? A: Bigger scope is not a reason not to do something. The focus of the Innovation should be to solve the whole problem, The solution could be in bite size chucks. If you think about the problem we are solving – it is laughable and many people did laugh at me. They are not laughing after 7 years.  Q: Can you expand on the comment that after 7 years and looking back you would do it differently? A: I think the trickiest part is to know when you have a Minimum Viable Product. Go too early – you will waste resources and wait too late your innovation will be stolen by somebody else. This requires a complex org and really smart people ready to pounce with you. I would spend more time preparing for the day we have a MVP.  Q: Is innovation always for a pain point ? can it be not a pain point ..? A: you have to have a reason to Innovate. I want to make more money is hardly a good reason if you are already earning a comfortable living. The painpoint – physical, mental or moral pretty covers everything. Read the stories about the innovators – sacrifices they had to make.  Q: what is your approach for innovation without budget? in other words, how can you make improvements that show value, but don't cost the client capital expense? A: first innovation doesn’t have to be without budget. Just know what you need and how to get it. Not doing anything because you don’t have money – is an excuse not do something. Remember the old rule – my effort + my excuses are never results. Only results are results.  Q: Innovation is scary for senior management and hence because A: Off course it is. Managers are not entrepreneurs, hence by definition are risk averse. It is our job as EA to help manage risk and get management to understand the degree of risk they are being exposed to. Q: How you differentiate physical pain points from mental pain point?  A: I will give you an example using Hospital as a context   Physical – patient feels pain when you did something wrong to them.   Mental – care providers feels the pain when they know they could have done better. Hence burnout, suicide among care providers is 5 times more than average population.   Moral – it is not fair for people to not have access to affordable and high quality care when it is possible for us to deliver, - this is pain the innovator feels,   You innovation could address all pain points, it is not just one.  Q: Do you think the recent shifts in Technology like Big Data, AI have by itself created innovative environment in the industry like faster methods of delivering information, Gathering more meaningful info from the data that would not have been possible earlier? A: I think these are disruptive forces that are giving rise to possibilities. Today every industry is disruptable and is being disrupted. Disrupt yours.   Q: Do these innovative ideas come from business' CxOs or is this something Enterprise Architects come up with?   A: No it is the EA who develops these models, CEO can support it. Unless your CEO is acting like an EA. More progressive CEO – like Musk are EAs. They see things beefier anybody else and have the courage to tackle them.   Q: Is Innovation about a NEW thing or about a new thing for your organisation?   A: if it could change the Value Chain of your Organization and competition cant copy it – then it is innovation. Like using windows 10 is not an innovation, it might be for yoru company. But everybody else can have it. but if it enables you to do something – then it is necessary but not sufficient.   Q: Is this correct: if the top business management has no interest in the Innovation in IT, there is no way to deal with such Innovation and such Innovation is nothing?   A: Depends on your Org’s business. If your business is IT, and your management have no interest in IT innovation then that is a problem. But if your business is not IT then management should not have any interest in IT Innovation. They should focus on business innovation. IT could be enabler and protector of innovation.   Q: Does "What if?" include business consequences or only technological (IT related) and who in business need to review these business consequences? A: Find a person who cares about the consequences. In many organizations it is a dangerous territory, do recognize that. If your org only allows communication through the established hierarchy, think twice. Bottom lead Innovation is not suitable for every org culture. If your org does not have the right culture – look outside, do your own thing. You still have 30 hours per week when you are not working for living. Q: A Business Capability is a business function that when realize/delivers particular result - with or without processes, people or technology, which together constitute the resources needed for the business functionality to realise. Depending on the business task, the may be no people (full automatization) or without processes that are replaced by adaptive cases or without technology. TOGAF has to update to modern reality. A: TOGAF is a broad framework that covers all views and view points. There might be an eventuality where a capability doesn’t have people, process and technology. But I have not seen it yet. That doesn’t mean there can’t a singular point. Point well taken. In fully automated process, there are still people who care and feed the automation, unless it is singular point where technologies manages itself from birth to death. I think we are long way off from that day. Q: How do you go about defining the parameters? How did you come up with less than $1 per person per year? A: Parameters are defined by you in response to the need. We came up with a one dollar – knowing the cost to manage healthcare information in US/Canada exceeds $100/person/year. That is a lot of money for 7.3 billion people in the world. We set the stretch goal of 1 dollar – because both India and China will need 2.5 billion dollar to provide quality care to its people. It is a stretch goal. Q: Is it important to identify current products, income, and customers when mapping out the value chain in this exercise? A: Yes off course. Without understanding the Value and Customer, we can’t define Value Chain. Q: I have this feelings as people or business looks some new solution to take big margin or huge profit . Be it any industry. A: Yes that is true statement. But for Innovation to be part of an organization culture it can’t be about making more money for shareholders. I believe to advance Innovation Agenda, the culture has to exist, we will discuss more in subsequent webinars Q: If the problem is big and you suggest changes in a big bang, enterprise managers will reject the associated risk A: The problem could be big, but change could be increment. Transition plan describes how big the change is. 
by A. Levine
Friday, January 19, 2018
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