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VOLUME 14 ISSUE 2                                         magazine

              BUILDING A
     NEW FUTURE
                                              The End of the ERP?
                                            The Parallels Between
                                                 Architecture and
                                             the Building Industry
                                          Intelligent Operations,
                                      Real-Time Decision Making
                                                and the Business
                                                    of the Future
NEW FUTURE BUILDING A - Astea
FROM THE EDITOR

 PUBLISHER
                                                              Building a New Future
 Nikki Glaser                                                  in the World of EA
 EDITOR-IN-CHIEF
 George S. Paras                                                       BY GEORGE S. PARAS
 MANAGING EDITOR
 Holt Hackney
 CONTRIBUTING WRITER
                                             I n this issue, we take a snapshot of the future in tech-
                                               nology, through the lens of enterprise architecture.
                                                 In the first article, author David F. Giannetto writes
 Monte Rummer
                                             about “The End of the ERP,” focusing on “how technol-
 ART DIRECTION & DESIGN
                                             ogy change is redefining the role of ERP applications.”
 The Roberts Group
                                                 Inevitably, the decision will come down to a stra-
 Architecture & Governance                   tegic choice. Those companies that chose a more pro-
 12301 Research Blvd.                        gressive, customer-oriented strategy will be forced to
 Building V, Suite 101
                                             adopt a best-of- breed approach. Those companies that
                                             seek to lead in highly competitive markets will also lean in the same di-
 Austin TX 78759
                                             rection. This will give them the best chance of moving beyond traditional
 512-536-6270                                business models, staying ahead of the competition and differentiating their
 www.ArchitectureandGovernance.com
                                             products and services. But many companies and industries still rely primarily
                                             upon price, or upon the pure strength of their products, to compete. These
 Architecture & Governance
 Magazine is a publication of                will be able to remain more wedded to traditional ERP applications, at least
 Planview. Entire contents © 2018            until someone in their industry turns the table on them. A&G
 Planview. All rights reserved.
 Reproduction of this publication            GEORGE S. PARAS is editor-in-chief of A&G and an EA mentor at EAdirections. Read
 in any form without prior written           his blog at eadirections.com.
 permission is forbidden. The
 information contained herein has
 been obtained from sources believed
 to be reliable. Planview disclaims
 all warranties as to the accuracy,
 completeness, or adequacy of such
 information. The opinions expressed
 herein are those of the authors, and
 are subject to change without notice.

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THIS ISSUE        2 From the Editor 3 The End of the ERP? 7 The Parallels Between Architecture and the
                  Building Industry 10 Intelligent Operations, Real-Time Decision Making and the Business of the
                  Future 12 A&G Calendar

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The End of the ERP?
How technology                                                 it is the very nature of the ERPs themselves. Perhaps
                                                               the logical design at the heart of ERPs simply isn’t well
change is redefining                                           suited to meet the rapidly changing demands of what
                                                               businesses now require in their rapidly changing mar-
the role of ERP                                                kets—and try as they might, organizations cannot force
                                                               them to.
applications                                                       In many organizations, enterprise-level application
                                                               selection is still highly influenced by IT. For IT leaders
                                                               mega-vendors such as SAP and Oracle are the logical
By David F. Giannetto
                                                               choice. If nothing else, they are the safe choice—few
                                                               CIOs and CTOs get fired for designing their enterprise
C     omputer Weekly states that most SAP projects have
      a 50 percent chance of failure. Resulting IT, an
SAP advisory service, surveyed 105 SAP project owners
                                                               architecture around a market leader. But business lead-
                                                               ers who fail to meet revenue and profitability goals of-
                                                               ten do get fired, and pointing at multiyear ERP projects
to find that 52 percent were over budget. Few people
                                                               as the problem will rarely save them. The choice then
who’ve worked on ERP implementations would be sur-
                                                               becomes a question of who should be selecting the en-
prised by these statistics. Why is it then that one of the
                                                               terprise technology most responsible for driving orga-
world’s most popular enterprise resource planning appli-
                                                               nizational performance—IT or the business? It is the
cations so frequently fails to meet the needs of today’s
                                                               classic “stack-shop” versus best-of-breed battle taking
leading organizations?
                                                               place on the rapidly changing landscape businesses are
    It can’t be maturity. SAP ERP is based upon 1992
                                                               now forced to compete upon.
R/3 technology, and Oracle’s ERP, EBS, was first released
in 2001. It can’t be lack of expertise. ERP developers                                                  MORE ON PAGE 4
can be found in every corner of the globe. Perhaps then,

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THE END OF THE ERP?
A&G

       Cloud has taken away the                                 ●●   Integration. Choosing best-of-breed applications
                                                                     has always had one major drawback: integration. In
       advantage mega-vendors once had,                              the past, IT could always rely upon the complexi-
                                                                     ties, and cost, of integration to scare the business
       leveling the playing field for many                           into agreement. But today people are used to seeing
                                                                     their social profile, phone contacts, and personal
       applications—if those applications                            data shared seamlessly across a wide variety of often
                                                                     very different online applications (even if they
       can all easily work together the                              would rather it wasn’t). They see the same flow of
                                                                     data between business platforms, applications, and
       same way broad ERPs do.                                       websites. Integration has become a natural part of
                                                                     life and a competitive necessity, and it too is also
                                                                     piggybacking off of the move toward the cloud.
                                                                     Microsoft Azure, Amazon, and even Google are
MAJOR TRENDS DRIVING A NEW THOUGHT
                                                                     locked in an application arms race that makes more
PROCESS
                                                                     standard connectors and cloud middleware available
Every new technology creates a leap forward in capabili-             every month. Smart software vendors are taking
ties. But it also triggers more subtle shifts in attitudes on        advantage of this, and with the integration concern
traditional topics. As what was once thought of as pro-              mitigated, the conversation more squarely focuses
gressive becomes mainstream, it shifts the power away                on what application will bring greater value.
from IT experts and often creates conflict between IT           ●●   A focus on value. Value was once an intangible
and the business, where senior leadership is often vying             term, and perhaps for start-ups in emerging tech-
for political power. This is especially true right now on            nology industries it still is, but for the majority of
the topic of who should lead technology changes that                 companies in mature industries, value now directly
directly drive business performance:                                 equates to revenue. This is forcing companies
●●   Cloudy with a chance of change. It is easy to focus             to look at the ERP versus best-of-breed decision
     on the obvious benefits of the cloud: high availabil-                                                  MORE ON PAGE 5
     ity and scalability, built in back-up and redundancy,
     and the simplification of internal architecture. But
     the hidden benefit of putting enterprise applica-                  The more forward thinking the
     tions in the cloud is the simplification of IT staff-
     ing. In-house IT experts who understand how each                   business leadership, the more likely
     application uses infrastructure are no longer needed.
     While this is beneficial to the overall organization,              they are to lean toward applications
     it leaves IT with an unclear role. IT experts now
     add more value as advisors, allowing the business                  designed by best-of-breed
     to make application choices based upon functional
     needs. Business leaders have been happy to take                    vendors who have the expertise to
     this responsibility on, since it has such a significant
     impact upon their success. This has opened the door                understand the nuances of their
     to an in-depth analysis of how each application
     meets the organization’s current and future needs.                 industry—not a strength of ERP
     Cloud has taken away the advantage mega-vendors
     once had, leveling the playing field for many ap-                  applications that seek to appeal to
     plications—if those applications can all easily work
     together the same way broad ERPs do.                               the masses across all industries.

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THE END OF THE ERP?
A&G

     through a new lens where IT is a cost center whose               Inevitably, the decision will come down to a strategic
     primary responsibility is to help the business chart         choice. Those companies that chose a more progressive,
     a road map toward ever-increasingly greater profit-          customer-oriented strategy will be forced to adopt a best-
     ability and differentiation. For the business, it is a       of-breed approach. Those companies that seek to lead
     matter of giving its personnel the tools that will al-       in highly competitive markets will also lean in the same
     low them to most effectively drive revenue, reduce           direction. This will give them the best chance of mov-
     expense, and improve the customer experience.
                                                                  ing beyond traditional business models, staying ahead of
     This was the original intent of ERPs: planning to
                                                                  the competition and differentiating their products and
     use the enterprise resources in the most effective
     way possible. But the very nature of best-of-breed           services. But many companies and industries still rely
     technology makes it more effective at doing this             primarily upon price, or upon the pure strength of their
     than broad ERPs, and as a result, the business is            products, to compete. These will be able to remain more
     naturally drawn toward this technology. To those on          wedded to traditional ERP applications, at least until
     the frontline trying to differentiate themselves day         someone in their industry turns the table on them.
     in and day out, ERPs have become back office auto-               Regardless of the path down which an organization
     mation. And an efficient back office might reduce            travels, IT will always play an important role in the se-
     expense, but it rarely adds value in the eyes of ever        lection of enterprise architecture. Only they can vet ap-
     more demanding customers.                                    plication design and architecture, and assess the stability
●●   Differentiation. Functionally oriented enterprise-           and scalability of on-premises or cloud infrastructures.
     level best-of-breed solutions will always offer deeper       The business does trust that IT will help it effectively
     and more robust operational functionality. That is           manage risk, even if it may find its IT leadership a bit
     the value proposition they are based upon. But busi-         too conservative to help it achieve revenue goals that
     ness leaders also have limited resources and have            are rarely conservative. IT leaders might feel slighted,
     been conditioned to know that each new applica-              or prone to let the business go it on its own if it really
     tion—on-premises or in the cloud—adds expense.               wants to make IT decisions, but this too is changing in
     The mega-vendor reputation for failure and project           the world’s best companies. They understand that to
     overruns has eroded the perceived advantage of sim-
                                                                  succeed in an era where technology is advancing faster
     plification that they have traditionally had, but it is
                                                                  than any other area of business, IT leaders who under-
     still a question of what is necessary for an operation
     to effectively compete, not what they would ideally          stand their business and can give good advice and guid-
     want. This means that the more forward thinking              ance might just decide not only who succeeds, but who
     the business leadership, the more likely they are to         survives. A&G
     lean toward applications designed by best-of-breed
     vendors who have the expertise to understand the
                                                                    DAVID F. GIANNETTO is
     nuances of their industry—not a strength of ERP                the author of two books
     applications that seek to appeal to the masses across          on how enterprise-level
     all industries.                                                technology drives business
                                                                    performance, including his
A QUESTION OF STRATEGY                                              latest Big Social Mobile
                                                                    (Palgrave Macmillan).
Given a choice, every business would pick a combina-                He is the COO of Astea
tion of best-of-breed applications to run their business—           International and has been
and perhaps that is what the enterprise architecture of             named a business thought-
                                                                    leader by the American
the future will look like. But for now, most IT organiza-           Management Association,
tions will fight this inevitability with all of their political     Business Finance Magazine,
muscles.                                                            and Consumer Goods Technology Magazine.

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Enterprise Architecture graduate
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The Parallels Between
       ARCHITECTURE AND THE
        BUILDING INDUSTRY
By Neil Rerup

T    here’s a shift going on in architecture today, and it’s rooted in the base
     function of IT. The function of IT is, at its core, to build and then main-
tain solutions to problems. Ignore the technologies for a second and focus
on that core functionality—“build and maintain.” When you wonder where
that shift is going to take you, start by looking at other industries that parallel
the “build and maintain” core functionality.
    The IT industry, as it’s structured today, has been around since the mid-
1980s. Sure, there were mainframes before that but, with the development
of the personal computer, IT became
something much more adaptable and
modular. Honestly, it’s a really young
industry. The advent of networking
begin in the early 1990s, and then
the Internet came of age in the late
1990s. So, really, IT is only around 30
years old.
    Now what industry parallels the
core functionality of “build and main-
tain” that is much older? The building
industry does. The parallels between
the building industry and the IT in-
dustry are extremely close. Both in-
dustries have their architects, though
they focus on different technologies.
Both have a core group of “property
developers,” but in IT’s case, we are
talking about the CIO and IT man-
agement. The general contractor in IT is the project manager. The trades-
people in the building industry parallel the administrators and the coders in
IT. And, once a solution has been built, there is a need to maintain the end
result, which is typically done by outsourcers.
    No, if we want to know where this shift is taking us, don’t look at the
technologies. Technologies will change continuously over time. Rather, look
at how solutions are put into place and then compare the building and the
IT industries. The building industry follows a business model where the prop-
erty developers, who have property they want to develop, will hire a building
                                                                  MORE ON PAGE 8

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NEW FUTURE BUILDING A - Astea
THE PARALLELS BETWEEN ARCHITECTURE AND THE BUILDING INDUSTRY
A&G

architect to create a design, and then the building archi-         So where does that leave the architect? Let’s look at
tect will provide oversight over the general contractor        the building industry again. In the building industry, the
to ensure the design is implemented properly.                  developer will hire an architect who will put together
    In IT, we currently see architects being hired on a        the designs for the end product. In IT, I believe the shift
“time and materials” basis for various projects. If an or-     will be to a similar model. Enterprises (or the outsourc-
ganization has enough projects, the IT architect will be       ers) will end up hiring the architect to create the design
a function brought in-house as an employee. But, pre-          and then provide oversight with the outsourcer to make
dominantly, architects are a function used on a contrac-       sure the solution is implemented appropriately.
tual basis specifically on projects. And, again, paid on           The architects may or may not focus on specific
a “time and materials” basis. That, my friends, is where       product suites, and there are pros and cons to either ap-
the shift is coming from.                                      proach. If you focus on a specific company’s products, you
    Outsourcing has been going on for quite a while be-        can get really good at delivering those products. But not
cause enterprises have realized that their core function-      all companies will want those products and, let’s face it,
ality isn’t IT, it’s whatever their market niche is. The IT    there are few “one size fits all” technology products. The
function is something that is better done by someone           other approach is that you focus on the requirements of
outside the organization. But outsourcing is associated        the customer and then find the best fit. It may take a lit-
with the “manage” aspect of IT. It parallels the building      tle longer to implement, but there’s a higher alignment
maintenance organizations that you find in the build-          of the end solution with the customer’s requirements.
ing industry, and it charges a “fixed fee” for specific ac-        So, if this is an accurate view on what the business
tivities. Want a new server instance created? Here’s the       model will end up being, what will happen next for IT
charge. Want a firewall managed? Here’s your monthly           architects?
cost.                                                              Well, building architects bill based on projects rather
    The “build’’ is typically done by a solution provider      than time and materials. It’s a “fixed fee” charge model.
that focuses on delivering projects. But the solution pro-     You already see this type of fee structure in larger proj-
vider ends up having to work with the outsourcer to get        ects that solution providers deliver. Why wouldn’t ar-
technologies implemented. As a result, you get the solu-       chitects be charging in the same manner? I can hear the
tion provider and the outsourcer fighting because they         arguments already. “Architects do all sorts of different
both have a stake in the game and they are both typi-          activities” and “No project is the same as the next proj-
cally rather inflexible. It’s also the reason why many out-    ect,” and so on.
sourcers are using the “management of boxes” as a way of
getting the much more profitable projects. They’ll know                                                   MORE ON PAGE 9
about the need for a project long before a solution pro-
vider does.

                                               Now, if you have standardized processes and templates,

                                               and you combine that with architects being a function

                                               that is brought on by “developers” on a project by project

                                               basis, isn’t that a foundation for an architecture firm?

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    But is that true? Yes and no. Yes, projects are differ-         ments are done. Again, these are things that have
ent each time. But the WAY you deliver projects will                been done by contractors. You can’t tell me that you
be consistent. It’s the reason why we have architecture             haven’t seen one of the Big 4 consulting companies
frameworks like TOGAF and Zachman. So if the way                    come in to create strategies for your organization.
you deliver is the same, doesn’t that mean you should               Isn’t that, at its heart, what enterprise architecture
be able to standardize processes and templates and have             is, regardless of the domain?
rough estimates of how long it will take to deliver cer-       ●●   The Project Delivery layer is what the solution archi-
tain artifacts?                                                     tect would do. If you look at the standard waterfall
    And before you argue with that, I will point out that           methodology, you’d have things like requirements
most enterprises that have architecture practices inter-            gathering, vendor selection (though this could be
nally do exactly that—they make use of standardized                 done at the Strategy Layer if you are following a
templates and processes in order to have some consis-               best-suite approach for your organization), solu-
tency of deliverables.                                              tion architectures, test plans, and build documents
                                                                    (amongst others).
    Now, if you have standardized processes and tem-
plates, and you combine that with architects being a              Every activity that I’ve identified is something that
function that is brought on by “developers” on a project       typically can have a standardized template and that you
by project basis, isn’t that a foundation for an architec-     do the same way each time. If you do it the same way
ture firm? They have that in the building industry; de-        each time, then you have a standardized process and can
velopers go to architecture firms for their designs, and       give a rough estimate on the effort for each activity. And
the architecture firms charge fixed fees for end solutions.    THAT is the basis for providing “architecture as a ser-
So why not in the IT industry? The only reason that            vice” for a fixed fee.
it hasn’t caught on yet is because of how young the IT            So, architecture is shifting, and it’s shifting away
industry is.                                                   from the enterprise to a business model where IT man-
    Now that we’ve agreed that architecture will end up        agement will hire architecture firms to deliver architec-
as something that the enterprise’s IT management will          ture artifacts and provide oversight while their designs
bring in, let’s talk about some of the artifacts that the IT   are implemented by the outsourcers. The only ques-
architect delivers. The logical grouping of those artifacts    tion now is who will be the Arthur Erickson of the IT
may determine if you are talking about an enterprise ar-       industry? A&G
chitect or a solution architect. The domain architect
will do the same things, regardless of whether they are
                                                                    NEIL RERUP is a leading cybersecurity expert and
an application architect or a security architect or an in-          strategic IT security advisor to many of North America’s
frastructure architect. Those activities end up being the           most important companies, utilities, and other entities
services that you deliver.                                          requiring cutting-edge systems
                                                                    and processes to protect their
    There are three logical layers of activities.
                                                                    intellectual property, business
●●   The Governance Layer is typically owned by the                 information, and customer
     chief architect or the enterprise’s IT management.             data. An enterprise security
                                                                    architect and cybersecurity
     That’s where you talk about architecture policies              entrepreneur, Rerup is the
     and standards, architecture guidance documents,                founder/CEO of Vancouver-
     and architecture principles. This layer provides the           based Enterprise CyberSecurity
     oversight over lower levels like architecture strategy         Architects (ECSA), where he
     activities or project architecture activities. And             leads a strategy team that
                                                                    designs and implements IT
     please don’t tell me you haven’t seen those func-
                                                                    security defenses, provides IT
     tions being filled by contractors.                             security architectural services,
●●   The Program and Strategy layer is where things like            and otherwise supports the cybersecurity defense
                                                                    efforts of enterprise clients. He is also the author of
     key decision documents, architecture strategies and            Hands-On Cybersecurity for Architects, scheduled for
     road maps, white papers, and current state assess-             August 2018 release (Packt).
NEW FUTURE BUILDING A - Astea
INTELLIGENT
     OPERATIONS,
     REAL-TIME DECISION
     MAKING AND
     THE
     BUSINESS
     OF THE
     FUTURE
By Debbie Polishook                                                       concerned with disruption and competitive threats, es-
                                                                          pecially from new digitally savvy market entrants.

B   usinesses should embrace real-time, insight-led de-
    cision making and what Accenture is calling “Intel-
ligent Operations” if they are to be fit for the future. This
                                                                              Data holds the key to addressing these threats. When
                                                                          collected and analyzed in the right way, data can yield
                                                                          new insights for unlocking efficiency and innovation.
was the conclusion of a new research study that Accen-                    However, the report reveals that most organizations are
ture undertook with services research specialist HfS1.                    currently unable to make data-driven decisions due to a
The reason is that the pace and scale of change have                      paucity of skills and the lack of technology to properly
accelerated to such an extent that businesses that fail to                manage the vast amounts of diverse data they encoun-
transform their operations and processes will struggle to                 ter. For nearly 80 percent of organizations in the survey,
keep up. Today, business agility is a key driver of success               50 to 90 percent of data is reported as unstructured and
and one that no business can afford to ignore.                            largely inaccessible.
                                                                              The report goes on to suggest that these inefficien-
WHAT’S DRIVING CHANGE?                                                    cies are exacerbated by poor integration between the
The numbers from the research are stark and serve to                      back, middle, and front offices within many enterprises.
highlight just how important operational changes are for                  In fact, half of the organizations we spoke to reported
businesses across all industries of all sizes. In fact, the re-           that their back office is not keeping pace with front of-
search suggests that the move to Intelligent Operations                   fice requirements to support digital capabilities and meet
is fast becoming a make-or-break proposition for organi-                  evolving customer expectations.
zations, with 80 percent of respondents saying they are                       In some respects, these challenges are all just different
1. See More. Do More. Be More. The Future Belongs to Intelligent Opera-
tions, Accenture/HfS, 2018                                                                                           MORE ON PAGE 11

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INTELLIGENT OPERATIONS, REAL-TIME DECISION MAKING AND THE BUSINESS OF THE FUTURE
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facets of the same problem: how organizations can seamlessly source, on-
board, integrate, and use high volumes of structured and unstructured
data across their organization. Businesses that solve this challenge will
be best placed to create compelling customer experiences, effortlessly
adjust to change, and operate efficiently.
                                                                                                                                 The Future Belongs to Intelligent Operations

FIVE STEPS TO INTELLIGENT OPERATIONS
                                                                                     THE FUTURE BELONGS TO
This is where Intelligent Operations come into play. Intelligent Opera-              INTELLIGENT OPERATIONS                                                                         LINK

tions combine new advances in technology with process innovation and                 Those organizations that harness diverse data driven by
                                                                                     applied intelligence and human ingenuity to empower
                                                                                     insight-led decision making, superior customer
a solid focus on talent. Businesses that embed Intelligent Operations will           experiences and breakthrough business outcomes.

become agile by design with the ability to draw on real-time processes,
human ingenuity, and data to realize exceptional customer experiences                WHY NOW?
                                                                                     In today’s increasingly disruptive and complex world, change comes quickly,

and business outcomes. They will be able to pivot on a dime and make                 turning current operational best practices into tomorrow’s liabilities.

the very best decision each time to drive efficiency, innovation, and,                                 80%                                80%                                  50%
ultimately, growth.                                                                          Nearly 80% are concerned
                                                                                                with disruption and
                                                                                                                                 Almost 80% estimate that
                                                                                                                                   50%-90% of their data
                                                                                                                                                                          50% say their back
                                                                                                                                                                         office is not keeping

    We have built a list of five initial steps for getting to Intelligent                      competitive threats.                  is unstructured and
                                                                                                                                    largely inaccessible.
                                                                                                                                                                       pace with requirements.

Operations:
                                                                                     THE FIVE ESSENTIALS OF
1 Transform your talent strategy: Soon, businesses will need access to               INTELLIGENT OPERATIONS
   a new mix of talent including designers, digital technicians, busi-
                                                                                        #1
   ness process experts, and industry specialists. Organizations should                 INNOVATIVE
                                                                                        TALENT
                                                                                                                                                       50%                          1/2

   review their talent strategies in the light of this need. A good place               Organizations need creative and
                                                                                        entrepreneurial talent who understand
                                                                                        digital technologies, industry and
                                                                                                                                                     Top workforce
                                                                                                                                                     requirements today:
                                                                                                                                                     50% creativity,
                                                                                                                                                                                 But nearly half believe
                                                                                                                                                                                 HR talent acquisition is
                                                                                                                                                                                 not keeping up with the

   to start is by running trials of more agile talent sourcing models
                                                                                        functional priorities.                                       entrepreneurial spirit.     needs of the business.

                                                                                        Do you have the right talent to navigate the future?

   that draw on the growing pool of freelance and contract labor.
                                                                                        #2
   These models allow enterprises to flex their workforce in-line with                  DATA-DRIVEN                                                     92%                        80%
                                                                                        BACKBONE
   market demand and provide access to scarce but essential skills.                     Structured and unstructured data
                                                                                        across internal and external
                                                                                                                                                     For 92% predictive
                                                                                                                                                     decisions based
                                                                                                                                                                                 But almost 80%
                                                                                                                                                                                 estimate that 50% to
                                                                                        ecosystems is the backbone

   Businesses should also review their internal training strategies to
                                                                                                                                                     on real-time data           90% of their data is
                                                                                        for breakthrough insights.                                   are a key driver            unstructured and
                                                                                                                                                     impacting business.         largely inaccessible.

                                                                                        Can you get to the right data to drive real transformation?
   ensure that workers are being given new skills aligned with business
   requirements.                                                                        #3
                                                                                        APPLIED
                                                                                                   LINK

                                                                                                                                                       90%                         50%
                                                                                        INTELLIGENCE
2 Invest in a data-driven backbone: Capturing the “exhaust” data                        Integrated Automation,
                                                                                        Smart Analytics, and
                                                                                        Artificial Intelligence can
                                                                                                                                                     Nearly 90% believe
                                                                                                                                                     automation and AI will
                                                                                                                                                     help them achieve their
                                                                                                                                                                                 Over 50% stated it
                                                                                                                                                                                 takes months or years
                                                                                                                                                                                 for business functions

   from business processes to inform current performance and improve
                                                                                        help transform operations.                                   business goals.             to change in response
                                                                                                                                                                                 to business needs.

                                                                                        Are you deploying applied intelligence to innovate faster?

   future operations is essential. Enterprises need to collect, store,
                                                                                        #4
   process, deploy, and monetize diverse data sets. Our research found                  LEVERAGING THE                                                  90%                         49%
                                                                                        POWER OF THE CLOUD
   that over 85 percent of enterprises are developing a strategy around                 Cloud ties together all the ingredients
                                                                                        of Intelligent Operations integrating                        Over 90% expect
                                                                                                                                                     cloud-enabled
                                                                                                                                                                                 But 49% still have
                                                                                                                                                                                 legacy technology
                                                                                        diverse data, across platforms in

   data aggregation, data lakes, or data curation as well as mechanisms
                                                                                                                                                     capabilities.               across half their
                                                                                        a secure environment.                                                                    enterprise functions.

                                                                                        Is your infrastructure agile and flexible to anticipate
   for turning data into insights and then actions—these organizations                  customer requirements?

   will forge ahead of the competition.                                                 #5
                                                                                        SMART PARTNERSHIP                                              90%                         46%
                                                                                        ECOSYSTEM
3 Invest in automation, analytics, and AI: Applied Intelligence is the                  The ecosystem brings complementary
                                                                                        skill sets and new technologies to                           Over 90% said working       46% said new ways

   intersection of automation, analytics, and AI. These emerging
                                                                                                                                                     with partners will help     of partnering across the
                                                                                        drive innovation.                                            them meet their             ecosystem is a top-three
                                                                                                                                                     business objectives.        talent need.

   technologies are the future, and soon no business will be able to                    Are you establishing smart partnerships and
                                                                                        leveraging their innovation potential?

   succeed without them. In our research, nearly 90 percent of the
   businesses we spoke to believe that Applied Intelligence will be                  ADAPT, TRANSFORM
   fundamentally important for transforming their operations. Enter-                 OR BE LEFT BEHIND
                                                                                     www.accenture.com/IntelligentOperations
                                                                                     Source: The Future Belongs to Intelligent Operations, 460 enterprise respondents survey, 2017, HfS Research and Accenture.
                                                                                     Copyright © 2018 Accenture All rights reserved.

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INTELLIGENT OPERATIONS, REAL-TIME DECISION MAKING AND THE BUSINESS OF THE FUTURE
A&G

   prises must put data at the core of what they do and              at their existing ecosystem and consider whether
   leverage the full spectrum of Applied Intelligence to             any of these relationships can deliver more value
   unlock unique insights and operational efficiencies.              through closer collaboration. Businesses should
   This human-machine capability is required to drive                also identify gaps in their capabilities and then
   innovation. The sooner businesses start experiment-               weigh whether these can be best solved through in-
   ing with their data, the sooner they will be able to              house development or by collaborating with a new
   realize significant value from these technologies.                partner.
4 Embrace the cloud: With market uncertainty                         If an organization has not made progress on one or all
   stronger than ever, operational agility gives busi-           of these steps, the time to act is now. The cost of doing
   nesses the ability to respond rapidly and get ahead           nothing is extreme: businesses that fail to adopt Intel-
   of competitors. Today, a robust ecosystem of cloud            ligent Operations will struggle to enhance the customer
   solutions provides businesses with the highest levels         experience, drive a competitive edge, and increase pro-
   of agility at the lowest cost points. Through the             ductivity. On the other hand, businesses that immedi-
   cloud, businesses can accelerate innovation, lower            ately invest in a more strategic, data-driven approach to
   IT costs, and enable the agility and scalability              their operations and processes stand to win it all.
   needed to react to change, dialling resources up and              Click here to download Accenture and HfS Re-
   down to match market requirements.                            search’s Intelligent Operations report. A&G
5 Establish smart partnerships: An increasingly
   important way for businesses to increase innovation              DEBBIE POLISHOOK is group
   is through connected ecosystems of partners that                 chief executive of Accenture
                                                                    Operations. In this role,
   co-create, collaborate, and share. In these ecosys-
                                                                    she oversees Accenture’s
   tems, partners can pull from a wide set of capabili-             comprehensive portfolio of
   ties and resources to support near-term innovation               business process services
   objectives. This broad ecosystem is made possible                as well as infrastructure and
                                                                    cloud services, including the
   through shared platforms with tech providers, start-             Accenture Cloud Platform.
   ups, universities, suppliers, distributors, and product
   companies. As a first step, organizations should look

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