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Digital transformation of traditional enterprises faces many challenges
In 2023, which is about to pass, events such as the chatGPT large model and the entry of data assets into the table indicate that the digital economy is accelerating. The digital economy is the third economic form of human society after the agricultural economy and industrial economy. It will promote profound changes in production methods, lifestyles, and governance methods, and will have a major impact on countries, enterprises, and individuals. Currently, we are at a critical stage of entering the digital economy era. How can enterprises and individuals seize this major opportunity to achieve rapid development instead of being eliminated by the times? This is an issue that deserves the attention and consideration of every business and every one of us.
The country attaches great importance to the development of the digital economy and regards the development of the digital economy as a new driving force for development. In March 2021, the country released the "14th Five-Year Plan for National Economic and Social Development and the Outline of Long-term Goals for 2035", proposing to "accelerate digital development and build a Digital China." In March this year, the Central Committee of the Communist Party of China and the State Council issued the "Overall Layout Plan for the Construction of Digital China", sounding the clarion call for comprehensively building a digital China and realizing Chinese-style modernization.
With the vigorous development of the digital economy, many companies have begun to undergo digital transformation, hoping to seize the opportunities of the times and achieve a magnificent turnaround. But this process is not smooth sailing and will face many setbacks and even failures. According to data from the world-famous consulting firm McKinsey, the failure rate of digital transformation of traditional enterprises is very high, and even as high as 80% of enterprises will experience failure.
Why is this so? Digital transformation is about realizing business changes through the empowerment of data and digital technology. However, many companies are faced with problems such as missing or unimplemented strategies, fragmented business processes, data silos, poor data quality, dual skins of business and technology, and numerous system silos. Difficult question. These problems are left over from years of development and can be described as chronic diseases that hinder the pace of digital transformation of enterprises.
02
SABOE's five-ring digital transformation method clears the fog of enterprise transformation
So how do companies achieve effective digital transformation? Digital transformation is actually a very complex system project that requires a complete set of methodologies for guidance. The State-owned Assets Supervision and Administration Commission clearly stated in the "Notice on Accelerating the Digital Transformation of State-owned Enterprises": "Accelerate the upgrading of enterprise digital governance models, means, and methods, build a modern IT governance system with enterprise architecture as the core, and promote IT investment and business transformation and development. Continuously adapt.”
SABOE’s five-ring digital transformation method is a methodology that takes enterprise architecture as the core and covers the entire digital transformation process end-to-end. It was developed by Wu Yanjun, an expert in enterprise architecture and digital transformation. Mr. Wang has nearly 20 years of experience in corporate informatization work and practical experience in the digital transformation of central enterprises and banks.
SABOE’s five-ring approach to digital transformation, as shown in the figure below. It is called the five-ring method because it mainly consists of 5 links, includingDigital Strategy(Strategy)< a i=3>, digital architecture design (Architecture) , digital construction (Build), Digital Operation(Operation)and Digital Assessment a>, SABOE is composed of the first letters of five words. （Evaluation）
There are many misunderstandings in the digital transformation of traditional enterprises. For example, they regard digital transformation as a matter for the technology department, or think that just a few digital projects will be enough, and the transformation will be successful when the project goes online. Or let the business departments and technology departments do their own thing and let a hundred flowers bloom. These misunderstandings will cause companies to invest a lot of resources but find it difficult to see transformation effects, and digital transformation has become a movement.
SABOE's five-ring approach to digital transformation believes that in order for an enterprise's digital transformation to be truly effective and lay a solid foundation for its long-term development, it must pay attention to five aspects:
1.Enterprise transformation starts with formulating a digital strategy, using the strategy to guide the transformation direction of the enterprise, and promoting it with the personal participation of business owners and management. In terms of strategy, the SABOE Five-ring Method proposed a strategic planning method of four observations and three determinations, and introduced the business leader model BLM adopted by Huawei.
2.Enterprise transformation should further carry out digital architecture design based on strategic planning, integrate organization, process, and data IT to form a complete architecture blueprint, and then carry out related construction. In terms of architecture, SABOE's five-ring approach proposed the DEAF digital enterprise architecture framework, which integrates and upgrades other traditional enterprise architecture methods. It has five characteristics: data-based, intelligent, agile, ecological and experiential, and is more adaptable to the digital economy. the needs of the times.
3.During the construction process, the architectural blueprint must be strictly followed to ensure that the blueprint is drawn to the end. At the same time, we attach great importance to change management, remove resistance to change, and ensure the smooth progress of transformation work. The SABOE five-ring method introduces methods and cases such as project management, architecture control, change management, goal management, organizational capacity building, and data capacity building to help enterprises complete the implementation of architecture project groups.
4.Enterprise transformation must pay attention to operations and combine digital capabilities with business reality through operations to realize business value. The SABOE five-ring method proposes a framework and methods for digital operations to help enterprises carry out digital operations that integrate user value operations, internal and external collaborative operations, and technology operations.
5.Enterprise transformation is a long-term and continuous process that requires regular review and summary. Through digital assessment, companies can clarify the current situation, analyze gaps, and clarify next-step development ideas. The SABOE Five-Ring Method proposes the digital maturity assessment model UDM to help enterprises carry out scientific digital assessment work.
In addition, SABOE’s Five-Ring Method for Digital Transformation also proposes two major cycles and five major principles to provide guidance for enterprise transformation work. SABOE's five-ring approach to digital transformation covers everything from strategy formulation, architecture design, capability building, daily operations to review and evaluation, and can provide complete and comprehensive guidance for enterprise transformation. This methodology has been summarized into a book"Enterprise Architecture Drives Digital Transformation: Architecture-centered End-to-End Transformation Methodology", published by Machinery Industry Press It was published recently and is available on JD.com.
What if you are:
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Enterprise CIOs, CDOs, architects and engineering technicians;
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Managers and business personnel at all levels of the enterprise,
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Consulting and technical service personnel who provide services for enterprise digital transformation,
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Teachers and students in university informatization and other related fields.
Then I highly recommend you read this book "Enterprise Architecture Drives Digital Transformation: Architecture-Centric End-to-End Transformation Methodology"
JD.com genuine link: https://item.jd.com/14260994.html
This is a digital transformation book with enterprise architecture as the core entry point. It is the culmination of the author's nearly 20 years of experience in enterprise architecture and digital transformation. Enterprise architecture is the underlying methodology for enterprise digital transformation. The author first refined the architectural framework DEAF for digital enterprises, and then extended it forward and backward to summarize the SABOE five-ring method for digital transformation, covering enterprise digital transformation from top-level design to implementation, and from Provide end-to-end methodological guidance for enterprises in all aspects from construction to operation, from effect evaluation to iterative improvement.
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It covers the entire process of enterprise digital transformation from end to end, starting with digital strategy and focusing on digital architecture design. However, it does not stop at blueprint planning, but further extends to digital construction and operations, and prepares for the next stage of transformation through evaluation.
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It integrates multi-disciplinary knowledge, introduces strategic management, enterprise architecture, data management, project management, operations management, digital maturity assessment and other methods and integrates innovation to provide enterprises with a full-perspective and full-system digital transformation guidance method.
Reasons for recommendation:
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The author has a senior background: a senior enterprise architect and digital transformation expert. He has served as PMO team leader, technology planning team leader and enterprise architect in China Export and Credit Insurance Corporation and Baixin Bank.
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The author has rich experience: he has been engaged in informatization work for nearly 20 years, from IT architecture reconstruction to enterprise-level business architecture design and implementation, from traditional financial enterprises to first-line Internet banks, and has a deep understanding of enterprise architecture in the digital era.
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Original methodology: The digital enterprise architecture framework DEAF and the SABOE digital transformation methodology are extracted from practice, so that enterprises can achieve digital transformation without detours and have laws to follow.
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Derived from practical summary: The methodology and experience in the book all come from the author’s practical summary in central enterprises and first-line Internet companies, and have been proven effective in practice.
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A large number of model frameworks: The author has refined various methods and important knowledge points into frameworks and model diagrams to facilitate readers' understanding and get twice the result with half the effort.
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A large number of famous enterprise cases: The book analyzes the cases of nearly 20 well-known enterprises such as China Construction Bank, China Merchants Bank, MYBank, Baixin Bank, Ping An Group, China Pacific Insurance, PICC, China Life, Midea Group, Huawei, and Sany Group. Digital transformation case.
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