{"id":12675,"date":"2021-04-08T16:49:47","date_gmt":"2021-04-08T15:49:47","guid":{"rendered":"https:\/\/www.avolutionsoftware.com\/?p=12675"},"modified":"2024-05-09T10:56:29","modified_gmt":"2024-05-09T09:56:29","slug":"using-algorithms-and-scenario-analysis-for-digital-transformation","status":"publish","type":"post","link":"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/","title":{"rendered":"The Smart Approach \u2013 Using Algorithms and Scenario Analysis for Digital Transformation"},"content":{"rendered":"<p><span class=\"feat_text\">Typically, when we consider technology-driven transformations, the first organizations which come to mind are companies such as Google, Amazon, and Facebook.<\/span><\/p>\n<p><span class=\"feat_text\">However, technology transformation can also improve many other businesses from retail, to infrastructure to healthcare.<\/span><\/p>\n<p>One household name which\u00a0successfully implemented one of the biggest technology transformation projects is Domino&#8217;s Pizza.\u00a0It did this by using\u00a0scenario analysis to understand what aspects of the business could be improved efficiently.<a href=\"#_edn1\" name=\"_ednref1\">[i]<\/a><\/p>\n<p>Initially, Dominos might have started by considering key business transformation options. For instance: how can they improve the toppings on their pizzas? How can they improve the crust or the cheese to the customer\u2019s preferences?<\/p>\n<p>By exploring these options, over time they learned that technology would deliver the biggest impact.<\/p>\n<p>Dominos\u00a0was one of the first companies to introduce pizza deliveries by drones. Another technology transformation was the adoption of AI. To screen the pizzas being made,\u00a0they\u00a0graded\u00a0pizzas\u00a0using AI technology to establish if the pizza reached the required standard. They sold and delivered the\u00a0pizza\u00a0if it passed or replaced\u00a0it with\u00a0another pizza if it didn\u2019t make the grade.<\/p>\n<p>They also introduced a transformation project allowing customers to track pizzas on their phone. Customers could place orders using Slack, Facebook Messenger, or even tweet an emoji to get their pizza delivered<a href=\"#_edn2\" name=\"_ednref2\">[ii]<\/a>.<\/p>\n<p>Dominos\u00a0grew\u00a0from being a pizza company to an ecommerce company which sold pizzas.<\/p>\n<h6><strong><span class=\"orange\">Knowledge is Power<\/span><\/strong><\/h6>\n<p>Whether it is calculating business and technical fit scores or the digital maturity for\u00a0business units and organizations,\u00a0most Enterprise Architects would\u00a0agree\u00a0that\u00a0we need\u00a0a smart approach\u00a0for making the most of data to build information types and scenario models.<\/p>\n<p>As Gartner explains \u201cDigital acceleration means making faster progress using data and technology to optimize and transform your enterprise.\u201d<a href=\"#_edn3\" name=\"_ednref3\">[iii]<\/a><\/p>\n<p>Data\u00a0in\u00a0its raw form needs\u00a0context.\u00a0As illustrated by\u00a0the classic Knowledge Triangle,\u00a0data needs structure to provide Information.\u00a0<a href=\"#_edn4\" name=\"_ednref4\">[iv]<\/a><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-12677 \" src=\"https:\/\/www.avolutionsoftware.com\/wp-content\/uploads\/2021\/03\/Data-Information-Knowledge-300x238.png\" alt=\"Knowledge Pyramid (Top down: Knowledge, Information, Data)\" width=\"451\" height=\"358\" srcset=\"https:\/\/www.avolutionsoftware.com\/wp-content\/uploads\/2021\/03\/Data-Information-Knowledge-300x238.png 300w, https:\/\/www.avolutionsoftware.com\/wp-content\/uploads\/2021\/03\/Data-Information-Knowledge.png 480w\" sizes=\"(max-width: 451px) 100vw, 451px\" \/><\/p>\n<p>And when we start to link Information together, it becomes part of the Knowledge layer.<\/p>\n<p>All\u00a0large-scale projects\u00a0benefit from the key insights we can gain from Knowledge, a connected view.<\/p>\n<p>This is especially true of those centred around technological and digital transformation.<\/p>\n<h6><span class=\"orange\"><strong>Tools for Planning Digital Transformation<\/strong><\/span><\/h6>\n<p>Planning for digital transformation often involves asking large, open-ended questions:<\/p>\n<ul>\n<li>How is the market shifting?<\/li>\n<li>How\u00a0do our systems\u00a0operate?<\/li>\n<li>Is there too much complexity in this process, and how can we simplify it?<\/li>\n<li>Does a particular strategy provide\u00a0a quicker time to market?<\/li>\n<li>Will it make us more reliable?<\/li>\n<li>Does it increase customer satisfaction?<\/li>\n<li>Does it make us less susceptible to vendors and suppliers going out of business?<\/li>\n<\/ul>\n<p>Algorithms and scenario analysis can provide the tools to query the Knowledge layer and address these questions.<\/p>\n<p><a href=\"https:\/\/www.avolutionsoftware.com\/abacus\/algorithms\/\">Algorithms<\/a> allow us to set up formulas\u00a0for\u00a0running regular calculations of metrics we\u2019re monitoring such as return of investment,\u00a0or\u00a0the cost increase\u00a0\/\u00a0decrease of\u00a0various\u00a0systems.<\/p>\n<p>The ability to consider <strong>scenarios or future state architectures is <\/strong>also\u00a0central\u00a0to answering digital transformation questions.<\/p>\n<p>One key scenario is the\u00a0baseline\u00a0model to reflect the current state. This can be designed\u00a0around a selected framework e.g., <a href=\"https:\/\/www.avolutionsoftware.com\/abacus\/frameworks\/togaf\/\">TOGAF,<\/a> and allows\u00a0us\u00a0to identify and model and key milestones\u00a0throughout the various stages of the project\u00a0life-cycle.<\/p>\n<p>Building the\u00a0baseline\u00a0is\u00a0a\u00a0crucial first step.\u00a0However, once you\u2019ve defined\u00a0your vision and organized your current state\u00a0model,\u00a0how can\u00a0you transition out from this to address key challenges?\u00a0The answer\u00a0lies in building a number of <a href=\"https:\/\/www.avolutionsoftware.com\/news\/enterprise-architecture-roadmapping-scenario-analysis\/\">alternative scenarios<\/a> to understand the impact\u00a0of various options and to verify the initial vision.<\/p>\n<p>For example, our vision is to introduce new markets and new capabilities. Or we might want to increase customer satisfaction and reduce complexity and costs. Alternative target scenarios would allow us to provide what we refer to as \u201ctrade-off scenarios\u201d which we can use to compare a range of potential future state options and assess their success in delivering improvements according to our chosen metrics.<\/p>\n<p>Scenario analysis, alongside algorithms for <a href=\"https:\/\/www.avolutionsoftware.com\/use-cases\/automating-enterprise-architecture-and-financial-analysis-algorithms\/\">regular calculations<\/a> are\u00a0key deliverables provided by the ABACUS tool and related Avolution services.\u00a0 ABACUS\u2019s flexible data structure\u00a0and <a href=\"https:\/\/www.avolutionsoftware.com\/abacus\/algorithms\/\">data-driven options<\/a> enable\u00a0you to start\u00a0small and\u00a0gain actionable insights quickly\u00a0then scale out as you progress.<\/p>\n<p><span class=\"small_text\"><a href=\"#_ednref1\" name=\"_edn1\"><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Typically, when we consider technology-driven transformations, the first organizations which come to mind are companies such as Google, Amazon, and Facebook. However, technology transformation can also improve many other businesses from retail, to infrastructure to healthcare. One household name which\u00a0successfully implemented one of the biggest technology transformation projects is Domino&#8217;s Pizza.\u00a0It did this by using\u00a0scenario [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[417,5,1],"tags":[69,122,12,533,8,532,47],"class_list":["post-12675","post","type-post","status-publish","format-standard","hentry","category-digital-transformation","category-togaf","category-general","tag-abacus","tag-algorithms","tag-avolution","tag-data-driven-enterprise-architecture","tag-enterprise-architecture","tag-scenario-analysis","tag-togaf","language-english"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Smart Approach \u2013 Using Algorithms and Scenario Analysis for Digital Transformation | Avolution<\/title>\n<meta name=\"description\" content=\"The ability to map out and compare scenarios or future states is central\u00a0to answering digital transformation questions. 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Algorithms and scenario analysis can provide the tools to query your business structure and address these questions...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/\" \/>\n<meta property=\"og:site_name\" content=\"Avolution\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-08T15:49:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-09T09:56:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.avolutionsoftware.com\/wp-content\/uploads\/2021\/03\/Data-Information-Knowledge-300x238.png\" \/>\n<meta name=\"author\" content=\"Amy Durrant\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Amy Durrant\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/\"},\"author\":{\"name\":\"Amy Durrant\",\"@id\":\"https:\/\/www.avolutionsoftware.com\/#\/schema\/person\/99a56edf70319b95c721d96758e7ad68\"},\"headline\":\"The Smart Approach \u2013 Using Algorithms and Scenario Analysis for Digital Transformation\",\"datePublished\":\"2021-04-08T15:49:47+00:00\",\"dateModified\":\"2024-05-09T09:56:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/\"},\"wordCount\":715,\"publisher\":{\"@id\":\"https:\/\/www.avolutionsoftware.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.avolutionsoftware.com\/wp-content\/uploads\/2021\/03\/Data-Information-Knowledge-300x238.png\",\"keywords\":[\"ABACUS\",\"Algorithms\",\"Avolution\",\"Data-Driven Enterprise Architecture\",\"Enterprise Architecture\",\"Scenario Analysis\",\"TOGAF\"],\"articleSection\":[\"Digital Transformation\",\"Enterprise Architecture Frameworks and Notations\",\"General\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/\",\"url\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/\",\"name\":\"The Smart Approach \u2013 Using Algorithms and Scenario Analysis for Digital Transformation | Avolution\",\"isPartOf\":{\"@id\":\"https:\/\/www.avolutionsoftware.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.avolutionsoftware.com\/news\/using-algorithms-and-scenario-analysis-for-digital-transformation\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.avolutionsoftware.com\/wp-content\/uploads\/2021\/03\/Data-Information-Knowledge-300x238.png\",\"datePublished\":\"2021-04-08T15:49:47+00:00\",\"dateModified\":\"2024-05-09T09:56:29+00:00\",\"description\":\"The ability to map out and compare scenarios or future states is central\u00a0to answering digital transformation questions. 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