Enterprises currently live in the era of Digitization, Digital Transformation, and Digital Disruptions. Let us take the first step and review some working definitions:
Digitization is about enabling, improving, transforming business operations, business functions, business models by leveraging digital technologies and a broader use and context of data, turned into targeted business outcomes. Nearly every enterprise has to consider its relevance in a digital world.
Digital Transformation is the realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touchpoint in the customer experience and operations lifecycle.
Digital Disruption is about offering exponentially higher value to the customers in a way with a new product or business model that existing firms cannot compete with directly. Many have already been impacted by digital disruption and are struggling with what to do about it.
In the book “Digital Vortex” published by Global Center for Digital Business Transformation, the authors state “Digital Disruption is the new and improved value created for the end customer that matters, not the value chain that produces products or services”. Disruptors do not replicate the value chains of traditional companies. Instead, they use digital business models to lower costs (cost value), build better customer experiences (experience value), and create scale rapidly that can serve a vast set of customers (platform value). Mature companies can act like disruptors themselves by enhancing these three forms of value – cost value, experience value, and platform value – to create their digital business models and offerings.
A platform is a structure that allows multiple products and services to be built on the same technical framework thereby enabling multiple business models to be built and supported.
The most disruptive companies create “combinatorial disruption,” blending all three forms of value (cost value, experience value, and platform value) for customers, yielding a competitive advantage incumbents struggle to match.
Let us break down the key technology enablers of digital disruption in an enterprise as illustrated in the following figure.
At the core of every enterprise digital transformation and digital disruption, it is about creating new forms of customer value by blending all three forms of Experience, Platform and Cost values. The new forms of customer value, in turn, drive business outcomes and new business models through innovation. Their innovation is powered by delivering context-aware experiences with automation at scale, integrating across Enterprise IT/OT business processes and systems. Artificial Intelligence through machine learning algorithms does the trick in sifting through massive data and deliver predictive capabilities across the spectrum with adaptive security and privacy.
Context-aware experiences reduce user distraction by dynamically adjusting their behaviors to the current context, that is, the current state of the user, the current computational environment, and the current physical environment. Context information is derived from an array of diverse information sources, such as network, location sensors, weather or traffic sensors, and the status of computational or human services. A fundamental challenge, then, is to collect raw data from thousands of diverse sensors, process the data into context information, and disseminate the information to hundreds of diverse applications running on thousands of devices, while scaling to large numbers of sources, applications, and users, securing context information from unauthorized uses, and respecting individuals’ privacy.
Automation of Enterprise IT systems delivers cost value with speed and scale. Netflix leaped from DVD rental to streaming service successfully for its customers enabling a new business model disruption in its industry. It was largely possible through its Chaos Monkey automation platform discussed earlier in this chapter. As Reed Hastings, the CEO of Netflix, simply said: “companies rarely die from moving too fast, and they frequently die from moving too slowly.”
Increasingly, new context-aware experiences and business models are made possible through Internet of Things (IoT). The foundation for the new business models enabled by the IoT is the digitization of the physical world. However, delivering new forms of customer value through IoT requires integration and automation across IT and OT (operational technology) systems. For example, enterprises can gain amazingly detailed insights into the customer relationship by collecting and analyzing product usage data to understand how the product is performing, how much is it being utilized, which features are being used, and which features are not. This allows enterprises to improve segmentation, deploy more granular and targeted pricing models, deliver new, value-added services, and anticipate the needs of their customers. Harley-Davidson could drive automation-driven equipment utilization through IoT-enablement of its factory and integrate the data collected from sensors to its existing asset management system.
As the complexity of a system gets greater, the task of enabling new digital business models gets exponentially harder. As in any profession, we can progress only by learning, both from our mistakes and from our successes. Design patterns have helped narrow this gap by documenting a well-working solution to a problem that occurs repeatedly in a given context.
A pattern is a recurring design element in the world. An old saying applies: “Twice is a coincidence; three times is a pattern.” You start to note similarities in how something is implemented and used when you’ve seen something happen at least three times. A pattern can be seen and used in hundreds of places but never be precisely the same in all the places. The goal of a pattern writer is to share the knowledge of how to reuse and achieve the benefits of the pattern’s solution.
EnterpriseDigitizationPatterns.org is a community site dedicated to documenting the patterns catalog comprised of design patterns that capture and modularize technology-centric solutions distinct or relevant to modern-day enterprise digital platforms and enable enterprise digital business models.
Enterprise Digitization Patterns
Therefore, the key technology enablers of every digital transformation or disruption form the three pillars of this book (“the Whats”), namely:
PILLAR One: Context-Aware Experience
PILLAR Two: Enterprise IoT Automation
PILLAR Three: Autonomous IT Systems
Each of the three pillars requires Artificial Intelligence (AI)-driven algorithms with Adaptive security and privacy to deliver business outcomes and new business models.
These design patterns are focused on new forms of interactive digital experiences in an enterprise, new forms of customer value through actionable insights using operational and business automation with Digital Technologies i.e. Context aware infrastructure, Adaptive security, IOT, Machine Learning.
A reference architecture is a generic high-level conceptual model for a specific domain to provide a common framework of reference. A reference architecture does not represent the system architecture of a specific domain. In stead, it is intended to facilitate the understanding the intricacies of various actors, capabilities and functions.
We have mapped how each design pattern fits within each of the overall reference architectures for Context-aware Experience, Enterprise IOT and Autonomous Systems.