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Artificial Intelligence (AI) is one area considered by many executives to enable Automation and steer positive growth. A couple of years ago, most executives thought that deployment of Artificial Intelligence isn’t a big deal. However, revamping traditional systems, implementing AI, and scaling it, in reality, is not as simple as it seems. A survey by PwC [...]
Artificial Intelligence (AI) is one area considered by many executives to enable Automation and steer positive growth. A couple of years ago, most executives thought that deployment of Artificial Intelligence isn’t a big deal. However, revamping traditional systems, implementing AI, and scaling it, in reality, is not as simple as it seems.
A survey by PwC Research in 2020, which gathered responses of 1062 business leaders, validates that scaling and industrializing AI is not straightforward at all. Only 4% of the respondents asserted that they plan on implementing organization-wide AI in 2020. A year earlier, the same survey revealed 20% of the executives planning to do that. The survey shows a significant decrease in the number of senior leaders thinking of executing AI.
The reason for this dwindling interest in AI deployment is mainly because of the tough prerequisites necessary—contemplation, resources, preparedness, overhauling legacy systems, and integration of technology applications—for enterprise-wide AI implementation.
A robust AI Implementation Strategy needs to be first devised in order to assist the organizations in moving forward with their AI deployment plans. Research reveals 5 key priorities of AI Strategy that businesses should follow to position themselves as AI leaders and reap value from Transformation in future. These priorities not only highlight the key requirements for AI deployment but also pinpoint ways to maximize pay offs associated with the initiative:
- Boring AI
- AI-ready Workforce
- Responsible and Ethical AI
- AI Operationalization
- Business Model Innovation
Let’s delve deeper into a few of these key priorities.
Boring AI
One of the key reasons to employ AI, as cited by PwC research, is to automate routine administrative functions—e.g., using AI to pull information from tax forms, bills of lading, or invoices that can otherwise take up long hours of human effort. 44% of respondents revealed that AI will help them operate more efficiently.
To ensure AI adds value to the business, leaders should develop a strategy to identify the areas where AI can have a much deeper impact; build capabilities to do that; develop AI solutions, govern them, and embed them with existing systems.
AI-ready Workforce
Building or enhancing the capabilities of the workforce to become AI ready is critical today not only for technology enterprises but also for other businesses. Organizations should identify the skills required for AI and train their people to deploy AI solutions.
However, thinking of achieving this through traditional means of offering training sessions isn’t a viable strategy to tap the opportunities offered by AI. In addition to training people, organizations should cross-skill their people in multiple trades and provide them the opportunities to apply and hone in the skills learnt. In fact, organizations should reward people who apply what they learn into real-time problem-solving and productivity enhancement.
Responsible and Ethical AI
AI can be perilous if adequate understanding of its responsible use and necessary procedures to protect against its risks and negative usage are not taken. There are growing apprehensions around AI related risks e.g., biased algorithms, facial recognition tools, and deep fakes. As per PwC survey, a large majority of respondents, using AI routinely, declared readiness in their organizations in terms of taking sufficient measures to protect against AI risks.
However, in reality most organizations are quite far from implementing controls around data and decisions generated using AI. Just about 33% businesses mentioned having the ability to fully tackle risks associated with data powering AI, AI models, outputs, and reporting. It is imperative to have rigorous Risk Management processes in place to effectively use AI in the workplace and address the risks associated with it. AI risks can be mitigated by integrating processes, tools, and controls needed to address AI bias, explainability, security, accountability, and ethics.
Interested in learning more about the other key strategic priorities essential for AI deployment readiness? You can download an editable PowerPoint on Artificial Intelligence Strategy: Top Priorities here on the Flevy documents marketplace.
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– Bill Branson, Founder at Strategic Business Architects
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– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
Agile is a robust approach to value creation. More and more organizations are adopting Agile Software Development approach. Becoming Agile is imperative to meet and exceed customer expectations and emerging business trends. Implementing the Agile approach to Software Development leverages significant benefits, including: Rapid design and development of new product and service offerings Revolutionizing processes [...]
Agile is a robust approach to value creation. More and more organizations are adopting Agile Software Development approach.
Becoming Agile is imperative to meet and exceed customer expectations and emerging business trends. Implementing the Agile approach to Software Development leverages significant benefits, including:
- Rapid design and development of new product and service offerings
- Revolutionizing processes
- Managing talent
- Reforming organizations
However, Agile alone is not enough. Agile Transformation can slip-up as Agile teams can stagger while working together and depending on others. In order to become an effective Digital organization, companies have to steer clear of the obstacles that bog down the rapid progress of Agile software development. These organizational obstacles to Agile include:
- Rigid Technology Architecture
- Poor Talent Management
- Lack of Product Mindset
Overcoming these barriers necessitates sincere harmonization, persistent effort, and commitment from the business and technology leadership. Anticipating and addressing these major organizational obstacles is integral to becoming Agile.
Let’s discuss these obstacles in detail.
Rigid Technology Architecture
Using and expanding the same old codes and plugging gaps with software patches renders the IT Architecture cumbersome and unyielding, at most organizations. Many organizations have outdated systems to manage operations and facilitate their customers. The integration of these outdated systems with modern applications and IT architecture isn’t easy, making them inflexible. Most of these systems and aps are inter-reliant and connected. A small change in a code has serious implications on other connected applications.
IT executives have to consider a number of factors before modernizing their IT architecture. These factors include potential value envisaged from the new architecture, requirement for new functionalities, risk of disruption, complications involved in the process, extent of fragmented data, and costs. Based on thorough evaluation of these factors, executives select one of these 4 common approaches to revolutionize their IT architecture:
- Inaction – The investment in overhauling certain applications is thought to be nonviable as their impact is considered insignificant in the overall architecture.
- Integrate – Uncover the old system’s essential function / elements and connect them with modern systems using interfaces (APIs).
- Overhaul – Modify the design of applications—e.g. dissecting the code into distinct, autonomous sections and eliminating any hard-coded values.
- Replace – Design innovative applications and deploy latest architecture (e.g. micro-services).
Poor Talent Management
Most leaders understand the importance of finding and staffing top talent in becoming Agile. However, outdated HR Management practices at some organizations become a major hurdle in attracting and retaining talented individuals. The issue with IT management at most technology firms in the recent past was their shortcoming in visualizing the problems through a business perspective. This led to the depletion of technical capabilities due to hiring of more and more people with strong business sense, but inadequate technological prowess.
Another factor compounding the talent deficit is entrusting the hiring function to external contractors by scores of IT organizations. This practice, although, assists in staffing talent and gaining new capabilities promptly, but diverts much of the executives’ time in supervising the external contractors. This leaves little time for them to acquire new technical skills and gives the contractors too much control over innovation. Outsourcing the software maintenance to 3rd parties is another factor that leads to poor accountability and Talent Management.
To mitigate these issues, technology companies need to transform, strengthen their technical capabilities, eliminate dependencies on 3rd parties, and clearly define responsibilities.
Interested in learning more about the obstacles to becoming Agile? You can download an editable PowerPoint on 3 Organizational Obstacles to Agile here on the Flevy documents marketplace.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
Digital Transformation in Manufacturing, or Digital Manufacturing for short, is a matter of survival now for manufacturing concerns. Manufacturing companies desirous of survival have no choice but to hop on the Digital Transformation bandwagon, rapidly. Business Transformation of any kind is not an easy endeavor. Change Management of Digital Manufacturing is typically more difficult than any Change or Transformation Program [...]
Digital Transformation in Manufacturing, or Digital Manufacturing for short, is a matter of survival now for manufacturing concerns. Manufacturing companies desirous of survival have no choice but to hop on the Digital Transformation bandwagon, rapidly.
Business Transformation of any kind is not an easy endeavor. Change Management of Digital Manufacturing is typically more difficult than any Change or Transformation Program that an organization may undertake.
Forming a strategy to leverage digital technologies is the 1st step in transforming a manufacturing concern towards Digital Manufacturing. Bigger challenges are faced in strategy execution.
For Transformation execution to be effective, CEOs must reconsider almost everything about the way their companies work; for instance, establish new Business Models, reorganize their Organizational Design, and also rethink their Leadership style.
Specifically, there are 3 key pillars of Digital Manufacturing execution that need careful consideration for the Transformation to be successful:
- Business Model over Technology
- Independence of Digital Operations
- CEO-driven Digital Transformation
Let us consider the key pillars a little more in detail.
Business Model over Technology
Shifting from old technology to new is easier than changing the Business Model of any concern, especially a manufacturing concern. Customarily, manufacturers sell machinery, hand out software as complementary, and offer after sales repair and maintenance service for the machinery.
For Digital Transformation to be truly successful, the whole way of doing business has to change. Manufacturers have to look at what they are selling i.e., outcome instead of a product. What is important is manufacturers should be willing to do away with existing Business Models to create and capture new value.
Value creation is achievable in many ways using industrial Internet of Things (IoT) by manufacturers. All of the avenues for value creation should be used in parallel so as to gain the largest impact.
Value created through Digital Manufacturing can be captured in 2 ways:
- Software as a Service and Subscriptions/Licenses
- Offering Success as a Service
Independence of Digital Operations
Digital operations can create a meaningful impact only when they are independent of the main business. Independence is important but so is proper linkage with the industrial business.
Initially, understanding regarding value provided by Digital operations may be very limited in the manufacturing business therefore cooperation may be inhibited. Finding ways to link Digital operations with the manufacturing business must cater to the requirement of understanding how the machines work.
Resistance from the manufacturing business is expected when the 2 forces combine, especially when the Digital operations grow. Delineating who handles customer relationship and all factors associated with it, is also a question that may spring up in cooperation between manufacturing and digital operations.
Ways to obtain gains from linking vertical business and the horizontal digital function must be found.
CEO-driven Digital Transformation
Sponsor of the Digital Manufacturing initiative has to be the CEO. Only the CEO has the influence to decide the divergences between the old manufacturing business and the new digital business.
CEOs have to drive the Digital Manufacturing shift. Leading from the front to make everyone understand that Digital Transformation is a very serious and important endeavor.
CEOs must have the will and resolve to challenge incumbency, obliviousness, and existing state of affairs. While remaining firm on the strategic direction, CEOs must be flexible enough to experiment, learn, and adjust course.
Interested in learning more about Digital Manufacturing? You can download an editable PowerPoint on Digital Manufacturing here on the Flevy documents marketplace.
Editor’s Note:
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Supply Chain Management (SCM) is the design, planning, execution, control, and monitoring of Supply Chain activities. It also captures the management of the flow of goods and services.
In February of 2020, COVID-19 disrupted—and in many cases halted—global Supply Chains, revealing just how fragile they have become. By April, many countries experienced declines of over 40% in domestic and international trade.
COVID-19 has likewise changed how Supply Chain Executives approach and think about SCM. In the pre-COVID-19 era of globalization, the objective was to be Lean and Cost-effective. In the post-COVID-19 world, companies must now focus on making their Supply Chains Resilient, Agile, and Smart. Additional trends include Digitization, Sustainability, and Manufacturing Reshoring.
Learn about our Supply Chain Management (SCM) Best Practice Frameworks here.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
With most Transformation initiatives people gradually revert back to their old habits of doing things. Sustainable Change Management necessitates 4 key processes: Chartering—defining the scope, rationale, and team for the change initiative. Learning—testing and refining ideas before a full-blown execution of the initiative. Mobilizing—using symbols and metaphors to engage people and gain their buy-in for [...]
With most Transformation initiatives people gradually revert back to their old habits of doing things. Sustainable Change Management necessitates 4 key processes:
- Chartering—defining the scope, rationale, and team for the change initiative.
- Learning—testing and refining ideas before a full-blown execution of the initiative.
- Mobilizing—using symbols and metaphors to engage people and gain their buy-in for the change program.
- Realigning—redefining the roles and responsibilities and managing performance of the initiative and the people driving it.
These processes are critical to enable an Organizational Culture which encourages execution of lasting change.
In addition to these key processes, for the change to entrench into the organizational fabric, Leadership needs to put in place the environment necessary for the people to embrace and own the new processes, systems, and desired behaviors.
The 4 critical processes aid in creating the enabling conditions necessary for institutionalizing change in the organization. These enabling conditions for sustainable Change take place in 3 settings:
- Structural Context
- Procedural Context
- Emotional Context
The environment for sustainable change must be put in place way before the actual execution of the Transformation initiative. These enabling conditions encompass making changes to the organization’s structure, procedures, and sentiments / behaviors.
Let’s dive deeper into the 3 conditions critical to enable sustainable change in the institution.
Structural Context
The first element of the enabling environment requires the change leadership to work on reshaping the organizational structure. The 4 key processes have a direct bearing on the organization’s structure. Their effect pervades over:
- The organization’s hierarchy and reporting lines.
- Compensations, benefits, and rewards systems.
- Monitoring and control systems.
The Structural Context significantly affects the way employees’ work and expend their time and their interest in certain types of projects.
The structural context is altered during the Realigning process of Transformation in the way new personnel practices are employed. The Learning process informs the redefinition of linkage between the leadership and field staff. The Mobilizing process informs the changes to be made in the roles and responsibilities of the management and front-line people—through storytelling and metaphors. Whereas, the Chartering process helps instill a reformed, team-building culture in the organization. Together, these changes in the structural context cascade down across the organization.
Procedural Context
The Procedural context pertains to a feeling of objectivity and authenticity of new processes and systems. The Procedural environment involves the perception of people that their views are taken seriously and acted upon while designing and implementing a new initiative.
Procedural authenticity is critical in gaining commitment from the employees on initiatives that were not validated by them earlier. It involves belief of the people that the change initiative integrates well with the philosophies of the organization and the way business should be done. It makes the people feel heard, ensures trustworthiness of the change leadership through positive track records and effective decision making abilities, and alignment of the change initiative with the core values of the organization.
Interested in learning more about the other enabling conditions mandatory for institutionalizing change? You can download an editable PowerPoint on Conditions for Sustainable Change here on the Flevy documents marketplace.
Did You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
Initiatives aimed at improving performance are often launched with great uproar, costing an organization significant investments. Such initiatives necessitate extensive changes in the Organizational Culture and the way the enterprise systems and processes function. However, most initiatives fall short of realizing success. Decades of scholarly research on Change Management reveals that the issues that contribute [...]
Initiatives aimed at improving performance are often launched with great uproar, costing an organization significant investments. Such initiatives necessitate extensive changes in the Organizational Culture and the way the enterprise systems and processes function.
However, most initiatives fall short of realizing success. Decades of scholarly research on Change Management reveals that the issues that contribute the most to the failure of strategic initiatives are:
- Incompetence in sustaining process improvement.
- Lack of trust on senior leadership.
- Failure to embrace new ways of doing business.
- Performance relapse.
- Inability of the initiative to produce any positive financial returns.
- Skepticism towards the desired behaviors and return of impractical employee behaviors.
Researchers have carried out scores of studies to isolate the drivers of lasting change. Research published in MIT SMR in 2005 discusses how leadership can design and execute Transformation initiatives that bring lasting changes in the organization. The study entailed in-depth analysis of the strategic Customer Service Enhancement (CSE) initiative undertaken by a large clothing retailer, having franchises in multiple geographic locations.
The researchers conducted 20 semi-structured interviews with leaders, in-store operations and support function managers. Detailed notes of the interviews were shared amongst the researchers alongside an exhaustive literature review. A case study of the initiative was prepared using independent research to have an unprejudiced viewpoint, free from any bias. Feedback from the organization’s management was gathered and incorporated throughout the study to seek clarifications or corrections. Data analysis was carried out employing a coding scheme developed using Atlas.ti tool. Comparative analysis was conducted and similarities and differences in conclusions were discussed.
The study brought to light 4 key processes necessary for change to stick in an organization. These key processes assist in laying the foundation for successful institutionalization of change initiatives by creating a company-wide culture that encourages enduring change:
- Chartering
- Learning
- Mobilizing
- Realigning
Let’s delve deeper into the first 2 processes.
Chartering
Chartering is a process through which an enterprise classifies the purpose, scope, and the way people interact with each other on a strategic initiative. Clear delineation of project boundaries, resources, responsibilities, and reporting lines are the elements integral for the success of a change initiative.
The Chartering process entails 2 critical components:
- Boundary Setting
- Team Design
Boundary Setting involves the key steps a team takes for accurate definition of change initiative’s scope.
The project team should clearly outline the problem(s) that the project is, and isn’t, going to tackle. Ideally, while designing and executing a change initiative, the focus of the engagement should be on confronting the most crucial problem area. The leadership should ensure not to confuse the core team by eyeing too many priorities to deal with through the strategic initiative.
The Team Design element of Chartering involves ascertaining the roles, accountabilities, and guiding principles for team’s collaboration. Team design entails creating ground rules for team members to interact, devising mechanisms to manage conflicts. The leadership needs to not only maintain diversity of the project team’s expertise, but also ensure they complement each other, and inculcate a standardized approach to decision making in project teams. There needs to be fostered a culture of positive discourse and testing ideas amongst the team members. Incorporating these guidelines helps spark thinking, learning, and decision making.
Learning
Learning aids in anticipating and dealing with hurdles during implementation of Transformation initiatives. Learning enables the managers to improve the quality of the new processes. it is a process through which managers develop, test, and refine ideas before full-scale implementation. The process entails 2 critical components:
- Discovery
- Experimentation
For more information on Learning and Development and how to elevate your organization into a Learning Organization, check out the frameworks and tools on Flevy here: https://flevy.com/business-toolkit/learning-organization
The discovery element involves gathering data to identify the objectives of the change initiative and outlining ways to achieve those objectives. Before rolling out a complete implementation of a change initiative, testing and refining the individual elements of the initiative immensely assists in the success of the initiative. Gathering adequate information relevant to the initiative, setting up baseline metrics to measure performance, and identifying issues hampering customer satisfactions are the key aspects of this phase. The team should learn from the failures of prior initiatives, introduce change in a systemic fashion rather than piecemeal, and encourage people to change rationally as well as emotionally.
Interested in learning more about the other processes critical for change to stick? You can download an editable PowerPoint on 4 Processes of Sustainable Change here on the Flevy documents marketplace.
Did You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
Enterprise Architecture (EA) denotes management best practices for lining up business and technology resources to realize strategic results, expand upon Organizational Performance, achieve Cost Optimization, and steer departments to achieve their core missions through Operational Excellence. Federal Enterprise Architecture Framework (FEAF) was first introduced in September 1999 by the Federal CIO Council for evolving an EA within any [...]
Enterprise Architecture (EA) denotes management best practices for lining up business and technology resources to realize strategic results, expand upon Organizational Performance, achieve Cost Optimization, and steer departments to achieve their core missions through Operational Excellence.
Federal Enterprise Architecture Framework (FEAF) was first introduced in September 1999 by the Federal CIO Council for evolving an EA within any U.S. federal agency. FEAF assists through documentation and information that conveys a summarized outlook of an enterprise at various tiers of scope and detail.
FEAF offers a shared approach for the consolidation of strategic, business, and technology management as a component of Organization Design and Performance Management. FEAF introduced a methodology for an Enterprise Architecture that transcended several interagency boundaries.
The Collaborative Planning Methodology suggested along with FEAF is envisioned as a complete planning and implementation lifecycle, for employment down all tiers of scope defined in the Common Approach to Federal Enterprise Architecture—i.e., International, National, Federal, Sector, Agency, Segment, System, and Application.
May 2012 saw a full new guide, called the “Common Approach to Federal Enterprise Architecture.” The guide offers an overall approach to establishing and employing Enterprise Architecture in the Federal Government for expanding joint approaches to IT service delivery. The Common Approach homogenizes the expansion and employment of architectures within and between Federal Agencies.
A 2nd version of FEAF was published in January 2013, meeting the criteria set forth by the Common Approach. It underscores the importance of Strategic Planning and Strategic Goals as the source for driving business services, which consequentially provides the requirements for enabling technologies. At the heart of it is the Consolidated Reference Model (CRM), which links 6 reference models and equips all departments with a shared language and framework to explain and evaluate investments.
The FEAF comprises of 6 interconnected Reference Models, linked through Consolidated Reference Model (CRM), each relating to a sub-architectural domain of the framework.
These Reference Models convey word-based abstractions of original architectural data and deliver a structure for relating significant elements of the FEA in a collective and uniform manner:
- Strategy Domain -> Performance Reference Model (PRM)
- Business Domain -> Business Reference Model (BRM)
- Data Domain -> Data Reference Model (DRM)
- Applications Domain -> Application Reference Model (ARM)
- Infrastructure Domain -> Infrastructure Reference Model (IRM)
- Security Domain -> Security Reference Model (SRM)
CRM is intended to permit inter-agency evaluation and detection of overlapping investments, disparities and prospects for cooperation within and across agencies.
By means of the collection of reference models a common nomenclature and system is cultivated for describing IT resources. Making use of this standard framework and terminology, IT portfolios can be managed more suitably and taken advantage of throughout the Federal Government.
A brief description of the reference models is as follows:
Performance Reference Model (PRM)
PRM relates agency strategy, internal business factors, and investments, presenting a way to measure the influence of those investments on strategic outcomes.
Business Reference Model (BRM)
BRM depicts an organization through arrangement of common mission and support service segments rather than through vertical lines of control, thus encouraging cooperation within and across agencies.
Data Reference Model (DRM)
DRM assists in detection of existing data assets located in solitary storages and aids in comprehending the meaning of that data, ways of accessing it, and means for leveraging it for supporting performance outcomes.
Application Reference Model (ARM)
ARM classifies the standards and technologies involving systems and applications that support the delivery of service capabilities, allowing agencies to share and reuse common solutions and benefit from economies of scale.
The Infrastructure Reference Model (IRM)
IRM sorts the standards and technologies relating to network/cloud to aid and facilitate the provision of voice, data, video, and mobile service components and facilities.
The Security Reference Model (SRM)
SRM offers a mutual language and approach for deliberating on security and privacy in connection with Federal agencies’ business and performance goals.
Interested in learning more about Federal Enterprise Architecture Framework (FEAF) and its reference models?” “You can download an editable PowerPoint on Federal Enterprise Architecture Framework (FEAF) Primer here and FEAF associated PowerPoint series presentations on the Flevy documents marketplace.
Do You Find Value in This Framework?
You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library. FlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:
“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”
– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
Mergers and Acquisitions enable numerous opportunities for growth. Organizations pursue these initiatives for a number of reasons—e.g. to expand further, attract more clients, or to broaden their product / service offerings. Scores of M&A transactions materialize across the globe each year, but not all of them achieve the synergies such deals promise. As a matter [...]
Mergers and Acquisitions enable numerous opportunities for growth. Organizations pursue these initiatives for a number of reasons—e.g. to expand further, attract more clients, or to broaden their product / service offerings. Scores of M&A transactions materialize across the globe each year, but not all of them achieve the synergies such deals promise. As a matter of fact, the success ratio is just around 27%.
The M&A Growth Framework is a structured approach to enhance the odds of a successful M&A transaction. This approach is instrumental in helping organizations capitalize on growth opportunities locked in M&A deals. The framework comprises 10 phases scattered across 3 timeframes:
- Pre-deal Preparation
- First 100 Days
- Post-deal Closure
The 10 phases of the M&A Growth Framework organized under the 3 timeframes include:
- PRE-CLOSE PLANNING & PREPARATION
- Growth Opportunities
- Go-to-Market Strategy
- Customer Experience Strategy
- FIRST 100 DAYS
- Customer and Partner Readiness
- Cross-sell Strategies
- Pricing Management
- Brand and Digital Presence Building
- POST-DAY 1 ENVIRONMENT
- Product and Service Roadmap
- Sales Force Transformation
- Long-term Revenue Synergies
The M&A Growth Framework facilitates in finding growth opportunities, aligning them with Go-to-Market Strategy, reinforcing Customer Experience, and enabling Organizational Readiness for integration after the M&A.
Let’s dive deeper into the first 3 phases of the M&A Growth Framework for now.
Growth Opportunities
The first step in achieving growth from a Merger or Acquisition deal is to identify and analyze the opportunities essential for growth.
Identification of growth opportunities necessitates:
- Gauging the ability of the new company to enter target markets.
- Conducting one-to-one interviews and Focus Group Discussions with key people from the management and customers to develop points of reference for existing key competencies.
- Identifying and translating growth opportunities into initiatives.
- Quantifying growth with timeline requirements.
- Prioritizing opportunities based on their magnitude, viability, and potential for effective execution.
- Utilizing clean teams to ensure confidentiality of data.
Go-to-Market Strategy
Identification and prioritization of growth opportunities necessitates delineating the Go-to-Market Strategy of the combined entity. This phase assists in achieving the newly-formed company’s stated growth targets, business continuity objectives, and proficient utilization of unified team and resources.
Key steps involved in this phase include:
- Combining the acquired entity’s product/service portfolio with the buyer’s offerings.
- Ascertaining and prioritizing strategic inputs.
- Translating the information and inputs available into prioritized action items.
- Segmenting the customers and their needs.
- Creating Go-to-Market plans.
- Connecting the sales channels with the unified company’s product mix.
- Ensuring resource readiness, sales targets, coverage, and channel mix.
- Finalizing marketing plans: communication, branding, targeting, product mix.
Customer Experience Strategy
As part of integrating the 2 unified companies, it is critical for the senior leadership to develop and deploy a Customer Experience (CE) Strategy. A consistent Customer Experience derives more value from existing customers, aids in the continuation of operations, and boosts customer spending.
Key steps in this phase entail:
- Appraising the existing customer experience, interactions, and customer pain points.
- Developing a customer-focused organization by creating seamless CE “personas” and customer journey maps.
- Identifying and ranking CE improvement initiatives.
- Implementing CE enhancement initiatives, monitoring outcomes, and correcting the course.
- Integrating the customers and Customer Experiences of the acquirer and the target companies.
Interested in learning more about the other phases of the M&A Growth Framework ? You can download an editable PowerPoint on M&A Growth Framework here on the Flevy documents marketplace.
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Understanding others has a lot to do with collaboration, performance management, and building effective teams. Developed by Taibi Kahler in the 1970s, Process Communication Model (PCM) is a prominent psychometric tool for individual and team development. The main utility of the PCM model is in understanding others’ personality types, discovering one’s own personality, and personifying [...]
Understanding others has a lot to do with collaboration, performance management, and building effective teams.
Developed by Taibi Kahler in the 1970s, Process Communication Model (PCM) is a prominent psychometric tool for individual and team development. The main utility of the PCM model is in understanding others’ personality types, discovering one’s own personality, and personifying others’ personality types to have better relationships.
PCM allows the executives to understand others’ needs, influence others, find practical solutions to problems, and manage conflict. The model has found its utilization in a number of Fortune 500 organizations. NASA has used PCM for the training and selection of its astronauts for over 20 years.
As per the PCM model, each individual embodies an assortment of behaviors, each with its own set of psychological requirements, strengths, weaknesses, communication style, and motivations. The Process Communication Model describes that each of us exemplify a combination of 6 personality types—each of personality type has its strengths and weaknesses—but one personality dominates the others in an individual. The 6 personality types are:
- Harmonizer
- Rebel
- Thinker
- Persister
- Imaginer
- Promoter
Let’s discuss these personality types in a bit detail.
Harmonizer
Individuals with a dominating Harmonizer personality type are humble, quiet, and naturally gifted at forming relationships with others. The Harmonizers care for their family and friends, are compassionate, and use their feelings to judge the world around them. They treat others cordially, make them feel comfortable, listen to them attentively, and do not shy away from making physical contact.
Recognition of their personality and others’ amiable communication style motivate the Harmonizers. Under difficult circumstances, these individuals tend to become apprehensive, lack firmness, act irrationally, and make grave mistakes / incoherent decisions.
Rebel
The individuals possessing a Rebel personality are generally creative, fun loving, and radiate positive energy for others. These individuals respond promptly, reciprocate righteousness with virtue, and enjoy the present. The Rebels are valued for their extemporaneous humor, interest in others, energy, and problem-solving ability. They are a bit impulsive and judge the world around them through their likes and dislikes.
Others upbeat communication style and stimulation through playful contact motivate the Rebels. Under stress, the Rebels tend to get confused, whine, irritate others, leave complex situations, and bounce responsibility to others.
Thinker
Individuals with a dominating Thinker personality believe in data, logic, and perfectionism. They take on a methodical approach to doing things, ask too many queries, and only attend meetings when there is a formal agenda set in advance. The Thinker personality likes to evaluate detailed information before drawing any conclusions. These people are valued for their planning and organization ability, dependability, structuring ideas logically, and clear expression.
Recognition of their thoughts and accomplishments motivates the Thinkers. Under stress, they reverse delegate tasks and start doing those themselves, try to gather as much detail as possible to understand the situation, and may start arguments or even attack others. These people need time and assurance of their abilities to return to their organized selves.
Interested in learning more about PCM and its other personality profiles? You can download an editable PowerPoint presentation on Process Communication Model: Personality Types here on the Flevy documents marketplace.
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Futuristic, technology-driven business models are weakening the conventional advantages of Economies of Scale. Large corporations, founded on Scale, nevertheless have areas that they can exploit if they reposition rapidly. For the best part of over a century, Economies of Scale—Cost Advantages that businesses achieve owing to their scale of operation—fashioned the corporation into a perfect [...]
Futuristic, technology-driven business models are weakening the conventional advantages of Economies of Scale. Large corporations, founded on Scale, nevertheless have areas that they can exploit if they reposition rapidly.
For the best part of over a century, Economies of Scale—Cost Advantages that businesses achieve owing to their scale of operation—fashioned the corporation into a perfect engine of business. The economic concept of Economies of Scale was first floated in the Adam Smith era where the idea of obtaining larger production returns through the use of division of labor was introduced.
A technological rush, distinct in history, was observed near the beginning of the 20th century. These new technologies were accompanied by scale i.e., bulk production and access to huge markets. The Economies of Scale guided business success—the strong inverse relationship connecting fixed costs and output grew into a basis of Competitive Advantage.
Back then, investments in scale was the most sensible proposition. Not only did it lower fixed costs but also created a formidable barrier for competitors, denying them entry in the market. Every type of business spent the 20th century in the quest for scale.
The advent of game-changing new technologies such as mobile devices, social media, and cloud computing, augmented by Artificial Intelligence (AI), is whirling Economies of Scale into Economies of Unscale.
Specifically, rise of Software as a Service (SaaS) and emergence of Product to Platform Transformations—coupled with AI’s ability to customize—overthrows bulk production and mass marketing as a basis of Competitive Advantage. These progressions have battered the powerful inverse correlation between fixed costs and output that delineated Economies of Scale.
Today, minor, unscaled businesses, leveraging Platform Scaling Strategies while renting SaaS, can hunt in niche markets, effectively contesting big companies that are strained by decades of investment in scale, i.e., in large-scale production, distribution, and marketing.
The triumphant companies in the current tech rush—enabled by Platforms and SaaS—are the ones led by Customer-centric Design, providing each customer precisely what they want, that too while making a profit, and not companies offering everyone uniform products.
Large corporations can remain relevant in this era of niche marketing by taking leverage of their existing infrastructure through astute modifications in their use. They can deploy 3 key tactics to accomplish this:
- Product to Platform Transformation
- Absolute Product Focus
- Dynamic Rebundling
Let us delve a little deeper into the details of the 3 tactics for leveraging Economies of Unscale.
Product to Platform Transformation
Dynamic corporations have expended decades building scale which is extremely specialized for their industry. Efficient factories, distribution channels, retail outlets, supply chains, marketing expertise, and global partnerships have been painstakingly developed. It is time for these corporations to take a decision on whether it is more viable to rent out this capability to other companies or not.
An example of such an approach is that of P&G’s Connect + Develop program that has been running for more than a decade.
Absolute Product Focus
As corporations become bigger, emphasis on control becomes more pronounced—processes, regulations, stock prices, and a variety of non-core issues take precedence over great product offering. Niche market focus blurs and attempts are made to make a product that may appeal to the masses in an effort to create Economies of Scale.
In this age of Unscale, the product/customer-focused competitor preys on such weakness. Large corporations can mitigate the repercussion of such weakness by organizing as a network of small businesses focusing on core function while outsourcing non-core functions. Each business, completely dedicated to creating a product perfect for its part of the market.
Apple Inc. contracts out manufacturing to Chinese companies while keeping the R&D and innovation—its core function—in the U.S.
Dynamic Rebundling
Successful companies in this day and age of Unscale are the ones that make every customer feel like a market of one. A corporation—a compendium of products—can match this by initially understanding its customer, then bundling its products as per each customer’s needs.
A great example is The Honest Co., which in 2012, began selling specialized line of diapers and wipes by subscription. First year, the company raked in $10 million in revenue by supplying a niche customer, a niche product, dissimilar to mass-market brands. By 2016 it was making sales exceeding $300 million.
Interested in learning more about the 3 tactics for leveraging Economies of Unscale and how corporations have, in their own way, taken advantage? You can download an editable PowerPoint on Economies of Unscale here on the Flevy documents marketplace.
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“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
The phenomenal success of tech innovators using Platforms has spurred a desire in companies, from a greater variety of sectors and markets, to gain advantage of Product to Platform Transformation. This Transformation is based on the need to model businesses on a Customer-Centric Design approach. The need has arisen because the concept of Economies of Scale has [...]
The phenomenal success of tech innovators using Platforms has spurred a desire in companies, from a greater variety of sectors and markets, to gain advantage of Product to Platform Transformation.
This Transformation is based on the need to model businesses on a Customer-Centric Design approach. The need has arisen because the concept of Economies of Scale has become archaic and has been taken over by Economies of Unscale. Each customer is now being offered customized products and solutions.
The phenomenal success, by the trailblazing tech innovators, was achieved partly by deploying Platform Scaling that enabled Business Transformation and monopolization of the market. Though, this monopolization and questionable use of the Platform, especially data generated therefrom, saw attempts to regulate these tech companies—making the decision to scale a complex one. Understanding the intricacies of Platform Scaling is thus critical to the development and deployment of any Platform Strategy.
When considering Platform Scaling Strategy, there are 2 key aspects that are of utmost significance:
Regulatory Complexity
Regulatory Complexity means present level of legal and regulatory impediments that govern Platform entry and operation in a sector.
Regulatory Risk
Regulatory Risk refers to the probability of an upsurge in Legal and Regulatory Costs and Complexity in the future.
Some equitable and measurable metrics for calculating Regulatory Risks do exist but generally it is extremely challenging to predict policy outcomes or even ascribe odds to various outcomes.
A straightforward approach for Platform owners and operators to understand and evaluate the prospective combinations of Regulatory Complexity and Risk is to create a 2×2 matrix of high vs. low for the 2 factors.
Regulatory Complexity and Risk are turning out to be the determining factors in the strategic decision between Fast and Slow Scaling.
Fast Scaling, which has also been referred to as Blitzscaling, requires choosing speed over efficiency. Fast Scaling has the strategic objective of growing briskly, experimenting swiftly to tweak product-market fit, and taking advantage of robust network effects to achieve and maintain a leading market share.
Fast Scaling is required to activate 3 interconnected positive feedback loops:
- Network Loop
- Data Loop
- Capital Loop.
Slow Scaling is the most sensible strategy in areas with both High Regulatory Complexity and High Regulatory Risk. Slow Scaling does not disregard the quest for network effects, which are a requirement for success of platform businesses, but it gives preference to analysis, constant growth, and risk curtailment instead of speed.
Platform businesses functioning in High-Risk, High Complexity situations may evade pitfalls by employing 4 key components of Slow-Scaling strategy:
- Analysis of the Macro Environment
- Careful Risk Management
- Investment in Stakeholder Trust
- Incremental Geographic Expansion.
Let us now delve a little deeper into the various permutations of Regulatory Complexity and Risk, quadrant-wise, in the matrix.
QUADRANT 1
Regulatory Risk Regulatory Complexity
Low Low
Compliance costs are comparatively low in such situations and there are no serious deliberations among regulators and policy makers concerning restrictions on business models or operations.
The Strategy in this case is to Scale Fast.
QUADRANT 2
Regulatory Risk Regulatory Complexity
Low High
Sectors in such scenarios are highly regulated e.g., financial services sector. Significant workforce is employed in governance, risk management, and compliance activities. Entering such markets necessitates careful consideration of Regulatory Complexity.
The strategy in such scenarios is to Scale Fast.
QUADRANT 3
Regulatory Risk Regulatory Complexity
High Low
Operations are generally in a Regulatory void—i.e., no established and powerful regulatory authority, tight net of rules, or strict barriers to entry. There is a great degree of ambiguity regarding how regulators may react. Environment in such markets makes it difficult for businesses to mature discrete policy scenarios, allocate probabilities, and make strong assumptions on timing.
Strategy is to Scale Fast in such environments.
QUADRANT 4
Regulatory Risk Regulatory Complexity
High High
There is high Regulatory Complexity, such as unclear approach by various regulators in the various markets. There are strong chances of sudden change in regulator and policy maker’s approach due to a particular incident. Precipitous increase in entire sector’s Regulatory Risk triggered by events is highly likely.
The most sensible strategy in such cases is to Scale Slow.
Interested in learning more about the permutations of these 2 Scaling Strategies, areas of strategic focus, and the 4 components of Slow Scaling Strategy? You can download an editable PowerPoint on Platform Scaling Strategy here on the Flevy documents marketplace.
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– Bill Branson, Founder at Strategic Business Architects
“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”
– David Coloma, Consulting Area Manager at Cynertia Consulting
“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight – it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”
– Roderick Cameron, Founding Partner at SGFE Ltd
