lunes, 27 de marzo de 2017

Any Business Innovation and Transformation requieres an Enterprise Architecture

Everyone realizes that organizations have to be innovating or continually transforming themselves to be competitive in a changing world like the present one. Both Innovation (doing something different or something new) and Transformation (making changes to something that already exists: optimizing, improving ...) will involve making changes in the organization to take it from a current state to a future state with the changes implemented. Considering that "55% of the current 500 Fortune organizations will not be in the Fortune elite in 2025" according to the OECD, "86% of executives say that innovation is extremely or very important to strategy of growth of their companies, but only 19% believe they succeed with any of the components needed" according to IBM Global, and "72% of transformation programs fail to meet their real objectives" according to McKinsey, we must wonder how to carry out this process of innovation or business transformation.
In the area of business processes, you have to consider what dimension reach the innovation or transformation project, since we can talk about Process Improvement (the process works but we want it to be more efficient, effective, more optimal ...), Process Redesign (the process is not functioning as it should, correcting it by changing the flow, eliminating parts of the process, automating parts ...), Process Reengineering (fundamental revision and radical redesign of processes for dramatic improvements in critical metrics) or Paradigm Shift to a Process Oriented Company (a change in the basic assumptions that implies a major change in the culture of the organization), and its management of change, risks and impacts in the organization should be controlled and made the right decisions so as not to fail.
If we think about our home and about a possible reform by adding a bathroom, we would have to study the viability of this project, and for it, we will have to take into account that the legislation allows us to make modifications in our house (for example, to create a window outside from the new bathroom), which can be carried out (more hot water capacity, longer pipes, throwing a wall ...) when studying the plans (foundation, distribution, electrical system, plumbing system). The study will be able to make a budget and a project of realization. In the same way, companies need to study their Enterprise Architecture (an integral image of their organization and the relationships among the main assets of a company, including processes, people, products, services, applications, technology, documents, etc.) to carry out any project of business innovation or transformation, because it is required to know with the maximum certainty what, where, when, how, how much it costs, what risks it has and why to carry out that project.

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