Geng Lin - Enterprise Architecture for Digital Business: Transforming IT
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Digital transformation has accelerated nearly tenfold in recent years as both a business and technology journey. Yet, most white papers and how-to guides still focus solely on the business side, rather than include methods for optimizing the technology behind it. This handbook shows CIOs, IT directors, and architects how to balance these two concerns successfully.
Youll explore current technology trends and shifts required to build a digital business, including how enterprise architecture should evolve if its to sustain and grow your business. A CIO who can handle digital transformation along with business interests is a rare find. This is the ideal guide to modernizing IT.
Youll examine:
- The latest trends and technologies driving the need for a digital enterprise architecture
- New components, layers, and concepts that comprise a framework for digital enterprise architecture
- Skills and technologies you need to modernize an enterprise architecture for a digital business
- Domains and characteristics of a digital enterprise architecture
- How to map digital enterprise technologies to the appropriate teams
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by Geng Lin and Lori A. MacVittie
Copyright 2022 OReilly Media, Inc. All rights reserved.
Printed in the United States of America.
Published by OReilly Media, Inc. , 1005 Gravenstein Highway North, Sebastopol, CA 95472.
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- July 2022: First Edition
- 2022-07-14: First Release
See http://oreilly.com/catalog/errata.csp?isbn=9781098121457 for release details.
The OReilly logo is a registered trademark of OReilly Media, Inc. Enterprise Architecture for Digital Business, the cover image, and related trade dress are trademarks of OReilly Media, Inc.
The views expressed in this work are those of the authors and do not represent the publishers views. While the publisher and the authors have used good faith efforts to ensure that the information and instructions contained in this work are accurate, the publisher and the authors disclaim all responsibility for errors or omissions, including without limitation responsibility for damages resulting from the use of or reliance on this work. Use of the information and instructions contained in this work is at your own risk. If any code samples or other technology this work contains or describes is subject to open source licenses or the intellectual property rights of others, it is your responsibility to ensure that your use thereof complies with such licenses and/or rights.
This work is part of a collaboration between OReilly and F5. See our statement of editorial independence.
978-1-098-12145-7
[LSI]
Geng Lin, F5 CTO, and Lori MacVittie, F5 principal technical evangelist
The destination of the digital transformation journey is a digital business.
During the first two decades of the 21st century, a digital transformation trend has driven the global economy. Over just two yearsfrom 2019 to 2020the pace of that transformation accelerated nearly tenfold.
The forces behind this acceleration span a broad spectrum of technological and societal changes that are not likely to slow for decades: wireless access for billions of people, the smartphone as an app platform, the increased speed and size of applications built on the cloud, the constrained number of engineers and developers, and customer demand for better, simpler experiences that empower them. The common theme of all these forces is the increased need and demand for innovation.
The outlines of this digital transformation journey are starting to take shape. What is emerging is a transformation to fully digital and automated businesses, resulting in the adaptability needed to respond to changes in the ecosystem, society, technology, and customer needs with a laser focus on customer experience, new ways of creating value, and a reshaping of the technical foundation of the businesses. At the heart of this transformation is the need to optimize business and technology for innovation.
Today, most companies have a consistent theme of being stable at their core and innovating at the edge. If a business has a profitable product line or service, it wont gamble with the core capabilities required to support it on a whim. However, company leaders might try new ideas on a small number of customers to discover whether the new product or service has traction without risking the whole business.
This is often reflected in the amount of money spent on maintaining core capabilities, which has consumed the bulk of corporate technology budgets for decades. Even after the explosive acceleration of digital transformation
In a normal environment, this is not necessarily bad. But we are not in a normal environment. We have shifted into a business cycle in which organizations need to innovate.
Budget alone does not adequately express the ability of a business to adapt. A better measure is based on the capacity to engage in innovation, and that measure ultimately relies on people. The good news is that despite the additional burdens placed on IT by recent moves to a largely hybrid (remote/office) workforce, nearly half (40%) of organizations plan to expand their IT staff to meet demand.
The bad news is that more people maintaining the corekeeping the lights ondoes not necessarily contribute to the businesss ability to innovate. For that, technology needs to be used to enable staff to focus on adding value through innovation, rather than maintaining value by sustaining the status quo.
Consider an example: a company has been in business for 40 years. It has multiple product lines that are all profitable and can launch one or two new products or services a year. Maintaining its core ties up most of the businesss resources, and only a small percentage of the staff and resources are focused on developing new products or services. Most of its staff and budget are sustaining operations.
This means that the companys ability to adapt is low. The business cant take advantage of shifts in the market, putting it at a significant competitive disadvantage.
With the advent of the public cloud and subsequent adoption of its operating model, much of the core infrastructure needed to build products or run services became available as an operational cost and required minimal personnel to use. This shift was largely due to the ability of the public cloud to bear the cost of managing the infrastructure needed to deliver applications. All the budget and people dedicated to provisioning, scaling, monitoring, and operating infrastructure can be freed to focus on innovation.
But even with a jump in adaptability, we still have a significant shortage of skilled people to address market demand. A recent survey found that although half (50%) of employers are increasing hires, nearly all (92%) report difficulty finding talent with the right skills. Exacerbating the challenge is their struggle to retain existing talent in a fiercely competitive market.
Organizations need to find another way to realize an order-of-magnitude jump in their capacity to innovatenot just to survive, but also thrive, in a digital economy.
The goal of every business should be to achieve a budget and staff that increases the capacity to innovate. This requires more staff working on innovation than those maintaining the core. This is simply not possible for most organizations because of the following four key issues:
An operating model and culture intolerant of failure, leading to resistance to changeA majority of digital leaders (62%) see the traditional, ticket-based approach to ITOps as a waste of time because IT spends too much time figuring out how to respond to a digital incident.
A security strategy based on control that requires significant resources rather than one based on adaptable risk managementAn average of 46% of organizations report reductions in managing risk after adopting AI for security operations, with nearly half (44%) reporting cost reductions of up to 20% across all functions.
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