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Can Business Transformation Decrease Risk?

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I see Fortune 1000 companies take on transformation initiatives, integrating technology and business, to propel their business forward – and sometime reinvent their business - in today’s modern markets. I also witness changes in their operations and methodologies to develop and deploy new business capabilities. In doing so, they must also adapt current strategies to manage risk.

One thing that is obvious to me is that, in a transformative company, IT is a strategic business partner, essential to the success of the company. They focus on the business’ goals and architect business capabilities that will foster change and agility. They recognize that agility is requisite and change is perpetual in a digital world. They also recognize that ongoing evolution of architecture, sometimes referred to as continuous architecture, is not without concern.

I often hear from critics of this movement that continuous change increases risk for the business. Their belief is that frequent and ongoing changes will create instability and vulnerability over time. However, I believe that risk may be avoided or more easily mitigated. Here’s why …

  • Business transformation is an iterative process and by architecting for a specific outcome, one that has been vetted with the business, risks are more easily managed. Project scope is smaller and the visibility is greater, making it easier to identify and mitigate risk.
  • In an agile environment, development and testing is completed in shortened time intervals – sometimes in two week increments. These intervals serve as check-ins throughout the change process, and this enables the business to identify and manage unexpected risks before they become a problem.
  • Incremental changes can also help identify the systems of most value to the business, which in turn can create a clear path from legacy resources and functional silos to a service-oriented approach. The days where projects were conceived, designed and implemented over years with minimal to no change in requirements are gone, even if the business changed around it.
  • Markets are evolving too quickly and businesses must be nimble because the biggest risk to any company is status quo.

I believe that intimate knowledge of the business – the technology, processes and people, and an understanding of “what if” scenarios – can aid IT in developing business capabilities that can sustain continuous evolution. In the age of business transformation, enterprise architecture should be a strategic asset. Knowing how applications, processes and people are connected provides valuable insights that can help identify, monitor and mitigate the risks tied to continuous architecture and drive business transformation.

Comment
MEGA

I see Fortune 1000 companies take on transformation initiatives, integrating technology and business, to propel their business forward – and sometime reinvent their business - in today’s modern markets. I also witness changes in their operations and methodologies to develop and deploy new business capabilities. In doing so, they must also adapt current strategies to manage risk.

One thing that is obvious to me is that, in a transformative company, IT is a strategic business partner, essential to the success of the company. They focus on the business’ goals and architect business capabilities that will foster change and agility. They recognize that agility is requisite and change is perpetual in a digital world. They also recognize that ongoing evolution of architecture, sometimes referred to as continuous architecture, is not without concern.

I often hear from critics of this movement that continuous change increases risk for the business. Their belief is that frequent and ongoing changes will create instability and vulnerability over time. However, I believe that risk may be avoided or more easily mitigated. Here’s why …

  • Business transformation is an iterative process and by architecting for a specific outcome, one that has been vetted with the business, risks are more easily managed. Project scope is smaller and the visibility is greater, making it easier to identify and mitigate risk.
  • In an agile environment, development and testing is completed in shortened time intervals – sometimes in two week increments. These intervals serve as check-ins throughout the change process, and this enables the business to identify and manage unexpected risks before they become a problem.
  • Incremental changes can also help identify the systems of most value to the business, which in turn can create a clear path from legacy resources and functional silos to a service-oriented approach. The days where projects were conceived, designed and implemented over years with minimal to no change in requirements are gone, even if the business changed around it.
  • Markets are evolving too quickly and businesses must be nimble because the biggest risk to any company is status quo.

I believe that intimate knowledge of the business – the technology, processes and people, and an understanding of “what if” scenarios – can aid IT in developing business capabilities that can sustain continuous evolution. In the age of business transformation, enterprise architecture should be a strategic asset. Knowing how applications, processes and people are connected provides valuable insights that can help identify, monitor and mitigate the risks tied to continuous architecture and drive business transformation.