Architecting to Cause or
Mitigate Disruption
Chasing the Right Architecture
Sriram Sabesan
1/31/2017 1

Your Presenter: Sriram Sabesan
• Sriram Sabesan
• Partner, Conexiam
• sriram.sabesan@conexiam.com
• 20+ years in Consulting
• Active in improving architecture profession
• IEEE
• Digital Transformation
• IASA
• Active in Open Group
• Board of The Open Group
• Open CA Certification Board
• Architecture and Open Platform 3.0TM Forum
• Co-Author
• World Class EA: A Leader’s Approach to Establishing and Evolving an EA Capability
• Digital Transformation: Strategy to Implementation using Open Group Standards
• World Class EA: A Practitioner’s Approach to Developing Enterprise Architecture Following the TOGAF®
ADM
1/31/2017 2

Conexiam
• A management consulting company that
• Employs enterprise architecture as a tool of trade
• Operates in North America, Europe & the Middle East
• Uses a sprint based engagement model
• Provides strategic architecture to implementation guidance and governance services
• Uses open standards & public best practices
• IT4IT, TOGAF, SABSA, APQC, BMC, BMD, Strategy Map
• Extend & integrate open practices with in-house method
• Navigate & Pilot
• We work to evolve these standards
Key work is demonstrating how they are used
• Leader’s Approach to Establishing & Evolving an EA Capability
• Practical Guide to SOA & TOGAF
• Integrating Risk and Security within an Enterprise Architecture
• Digital Transformation: Strategy to Implementation using Open Group Standards
• 2 more documents under publication review
1/31/2017 3

“…disrupters start by appealing to low-end or
unserved consumers and then migrate to the
mainstream market…”
- Clayton M. Christensen
(HBR Oct 2015)
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A Contrarian View
There are no Disruptions…
only failures to see patterns or connect the
dots…
or act on time…
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Balancing Needs
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Frustration
Friction
Failures
Passion
Productivity
Profitability

Initiators
T-Mobile
Failure: Smartphone release
cycle and Contract cycle; Core
of Business – wireless product,
not devices
Result: Contract less plans;
ease of device upgrade
BBVA
Frustration: Credit Reports
Friction: Third Party Integration
Result: History with the
company or utility bills
1/31/2017 7

Preventers
T-Mobile
Lesson from Adjacent Industry:
History with T-Mobile to
get high end devices under
installment plan
Lease of equipment
Result: Improved profits and
growth in EBIDTA
Compliance Management
Company
Our Finding: Increase
Productivity AND Reduce
Friction (improve self-service)
Result: Work in Progress
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The Age of Customer Impact
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Liquid Expectations
• Expectation from one industry seeps to another
• Simplicity of Uber for road transport & lack of it for quick serve
restaurant or self-serve grocery
• Return experience in Zappos vs Airline cancellation
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A Page From Our Cookbook
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First Steps
• Moderated Executive Discussion
• Expert Assessment
• Quantitative Insights
• Organization Readiness Assessments
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What Do We Focus On?
Score for ability & appetite to change and retain
Value Focus
• Strategy
• Brand Identity
• Customer Experience
Operations
• Process
• Technologies
• Suppliers
• Channels
People
• Current Assets
• Current Skills
Flexibility
• Freedom to Invest
• Time to Release
• Rate of Change in Process and
Rules
13
* See Notes

Glimpse into Assessment Model
• Appetite to get benefits out of current assets informs us strategy to employ – the
company is interested in migration over rip-and-replace. Coexistence is a
challenge to address. Scale of 1 to 5. 1 being okay to change all assets and 5
being want to reap maximum benefits. When the value is 1, we can go to cloud
easily by running a parallel team on next generation technologies.
• Lesser the freedom to invest in transformation, the ability to influence rate of
change comes down or informs the need to look for managed services. Scale of
1 to 5, 1 being limited freedom and 5 being total freedom.
• Above two forms a trade-off condition for ability to grow and change with time. A
value of 5 in freedom to invest and 1 in current asset utilization is ideal to
accelerate digital transformation. Opposite end of values is a path to irrelevancy.
A value of 3 to both is a clear indication of risk aversion, need for highly selective
migration to SMAC & IoT solutions.
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2x4 Action Framework
1/31/2017 15
Commoditize DifferentiateProductized Co-Create
Delegate /
Buy
Direct
Engagement
Visualization inspired by Simon Wardley’s work
We had 5 categories. Differentiate or Market Leader –
build in-house. Co-create or customize with help of third
party provider. Managed – delegate part of operations to
third party; leverage out of the box as much as possible,
bolt-on features developed and managed by third party
specialist. Productized – use only out of the box features
or build for scale. Commoditize – if you have to
productize, make sure someone else can make profit
feeding and caring it. After careful review of work by
Simon Wardley, we didn’t value you pursuing
“Managed”… we settled on four stages.

Effect of Shift Left
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Commoditize DifferentiateProductized Co-Create
Delegate /
Buy
Direct
Engagement
Most companies are motivated to shift left.
Though it appears to be good in the long run,
organizations forget about the impact they
leave with partners, suppliers, employees and
customers. Add the need to respond to market
rapidly, invariably rigidity gets built in. Creates
frustrations, frictions and eventually failures.

Worked out Example
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Commoditize DifferentiateProductized Co-Create
Delegate /
Buy
Something User
/ Customer
Values or White
Space
Sustainability
(Tom’s
Footwear)
Ecosystem
Impact
(India Banking /
iPhone)
Retain Market
/
Customer
Base
Operational Efficiency
/ Automation / Scale
(AWS or Utilities)
Aggregate / Last-Mile
Connection
(Expedia / Uber)
Operational Management
(ERP / CRM / Productivity
/ Communications)
Guidance
(CISR /
McKinsey Labs /
Conexiam)
Content /
Research
Audit /
Certification
(E&Y / KPMG)
Direct
Engagement

Open Standards
Our take and how we have assembled them
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1/31/2017 19
Architecture to Support Strategy
Strategic, Phase A
Strategic, Partial Phase B
Strategic, Partial Phase C
Strategic, Partial Phase D
Architecture to Support Portfolio
Segment, Phase A
Segment, Partial Phase B
Segment, Partial Phase C
Segment, Partial Phase D
Strategy to Portfolio
(IT4IT)
Budget Planning Budget Preparation Budget Allocation Budget Control
Partial Phase E, F, G
Architecture to Support Project
Capability, Partial Phase B
Capability, Partial Phase C
Capability, Partial Phase D
Requirement to
Deploy (IT4IT)
Capability, Partial Phase E
Partial Phase F, G, H
Request to Fulfill
(IT4IT)
Detect
to
Correct
Architecture to Support Solution Delivery
Capability, Partial Phase B
Capability, Partial Phase C
Capability, Partial Phase D
Capability, Partial Phase E
Partial Phase F, G, H
SOA RA
Microservices Architecture
Open Platform 3.0
Open Business Data Lake
Customer Experience (DBCX)
Cloud Computing Infrastructure
SOCCI
Governance, Security
Inform Strategy
Improve Product
Or Service Excellence
Strategy&GovernanceSolutionDelivery
ImplementationApproach
Infrastructure
Segment, Partial Phase E
Strategic, Partial Phase F
Margin & Revenue
Opportunities
TOGAF

Preventive Disruption
– converted employees into brand ambassador
– shares profits with employees and customers
S – Modernization and Futuristic
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Take Aways…
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Disruption is imminent…
• When you spend too much time talking about “non-core”
areas of the business
• When you experience is plateau in your growth
• When your Investment to Revenue ratio is going south
1/31/2017 22

The Choice is Yours
Create React
1/31/2017 23
OR

Q & A
Send your feedback to: sriram.sabesan@conexiam.com
Visit us at: www.conexiam.com
1/31/2017 24

Suggested Reading
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Reference List
• Disruptive Innovation: Mark, Christensen, Clayton, et al., 2008, "Reinventing Your
Business Model, Harvard Business Review, December 2008.
• https://inc42.com/resources/what-disruption-means-why-you-are-using-it-wrong/
• https://www.interaction-design.org/literature/book/the-encyclopedia-of-human-
computer-interaction-2nd-ed/disruptive-innovation
• http://sloanreview.mit.edu/article/how-useful-is-the-theory-of-disruptive-
innovation/
• http://www.opengroup.org/public/member/proceedings/Austin-2016-
07/Presentations/street.pdf
• http://www.opengroup.org/public/member/proceedings/Austin-2016-
07/Presentations/sabesan.pdf
• http://www.opengroup.org/public/member/proceedings/Austin-2016-
07/Presentations/hornford.pdf
• http://www.strategy-business.com/article/00324?gko=1c407
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Disruption Impact Tree
1/31/2017 27
Enterprise
Disrupt
Create New
Ecosystem /
Business
Model
Market /
Revenue
Model
Remediate /
React
Be Disrupted
Perish
Improved Services
/ Features
New Products /
Services
Adjacent /
Complementary
Services
Essential
Services
Stack Support
Efficiency Gains
Efficiency / Agility
Gains
Perish
Re-Focus
Understand
Your Core