Table of Contents
Foreword Erik Verrijssen xiii
Foreword Simon Hollins xv
Foreword Satyanarayana Murthy xix
Foreword Raahil Burhaani xxi
Foreword Julia Sattel xxiii
Acknowledgments xxv
About the Author xxvii
Introduction 1
Notes 4
Section I Introduction to Formula 4.0
1 A Generic Industry Perspective on Digital Transformation 7
Designing Business for Future 9
Digital Transformation-How Is It Being Driven Today 10
Cloud Computing 12
Cloud Deployment Models 13
Edge Computing 14
Data Analytics 16
Summary 18
Notes 18
2 Business-Driven Digital Transformation Framework: Formula 4.0 19
Formula 4.0 (Business-Driven Framework for Digital Transformation Using Digital Enablers from Industry 4.0) 20
Business Transformation Model 21
Formula 4.0 Horizontal Service-Foundation Platform 23
Formula 4.0 Horizontal Service-People, Processes, and Tools 24
Product-Based Organization 25
Formula 4.0 Horizontal Service-Data and Analytics 27
Formula 4.0 Vertical Service (Automation and Enterprise Governance) 28
Automation 28
Enterprise Governance 29
Notes 30
Section II Identifying Business Processes for Digital Transformation Using Systems Thinking and Design Thinking
3 Business Strategy for Digital Transformation 33
Customer Engagement Strategy 35
Business Transformation Strategy 37
Process Transformation 38
Model Transformation 38
Domain Transformation 39
Choosing between Customer Engagement and Business Transformation Strategy 40
Notes 42
4 Business Transformation Model and Intelligent Business Transformation Model 43
Systems Thinking 44
The iceberg Model for Systems Thinking 45
Design Thinking 47
Stage 1 Empathize-Research Your Users' Needs 48
Stage 2 Define-State Your Users' Needs and Problems 49
Stage 3 Ideate-Challenge Assumptions and Create Ideas 49
Stage 4 Prototype-Start to Create Solutions 50
Stage 5 Test-Try Your Solutions Out 50
Applying Systems Thinking and Design Thinking Together-A Case Study 51
Discovery Phase 52
Define Phase 53
Develop Phase 54
Rollout Phase 55
Strong Focus on Customers 55
Rigorous Process for Analyzing and Communicating Insights 55
Experiments and Iterations 56
Conclusion 56
The Intelligent Business Thinking (IBT) Model 56
Business Transformation Model (BT Model) 57
Applying IBT Model on the Business Processes 59
Business Transformation Model Treatments 60
Digital from Core 60
Digital from Surround 61
Treatments for Systems under Each Zone of the BT Model 62
Notes 64
Section III Foundation Platform
5 Creating a Foundation Platform with Digital Triplets (Atomic Architecture, Cloud Infrastructure, and Application Programming Interface) 67
Atomic Architecture 70
Separation of Concerns 72
Cloud Infrastructure 73
Application Programming Interface (API) 74
Notes 75
6 Cloud infrastructure 77
Infrastructure Role in Digital Transformation 78
Data Center 80
Infrastructure Evolution-From Data Centers to Cloud 80
Cloud Computing 81
Cloud Delivery Models 83
Infrastructure as a Service (IaaS) 83
Platform as a Service (PaaS) 84
Software as a Service (SaaS) 84
Cloud Deployment Models 85
Cloud Migration Approach/Treatment 85
Lift and Shift Migration or Rehosting 86
Shift to SaaS/Repurchase/Drop-And-Shop 88
Replatforming or Lift-Modify-Shift 88
Refactoring/Rearchiteeting 89
Retain 90
Retire 90
Cloud Migration Strategy 90
Cloud Benefits Cannot Be Realized If It Is Not Managed Properly 94
Preparing to Migrate to Cloud-The Eight-Step Cloud Migration Checklist 97
Right Planning 97
Execution Methodology (Iterative Cloud Migration Factory) 99
Migration Strategy/Approach 100
Application Dependencies 101
Zero to 100% Cloud Approach 102
Testing 103
Version Upgrades 104
Cloud Provider Features (Not All Features of Cloud Provider Will Work) 104
Case Study 105
Notes 106
7 SAP Cloud Migration 107
A Bit of Background about ECC to Suite on HANA to S/4HANA 109
The SAP Cloud Platform 112
SAP S/4HANA Cloud 112
The SAP HANA Enterprise Cloud (HEC) 112
SAP on the Public Cloud 113
SAP Embrace Initiative 113
Point of View (POV) on Different Cloud Providers 114
SAP Cloud Migration Strategy 115
Homogeneous System Copy 115
Heterogeneous System Copy 117
Heterogeneous Migrate to SAP HANA 117
SAP Near- Zero Downtime (NZDT) 117
System Conversion for S/4HANA 117
Key Considerations for SAP Migration to the Public Cloud 118
Note 122
8 Application Programming Interface (API) 123
API Gateway 127
Importance of API Gateway 128
The API Implementation Journey: Creating an API Platform 130
API Enablement Team 132
T-Mobile Case Study 132
Note 135
Section IV People, Processes, and Tools
9 Product Organization 139
What Is a Project Or a Project Organization? 139
Product Organization 141
Product Life Cycle 144
Hypothesis to Cash 145
What Does Transforming to a Product Organization Mean? 146
Breaking Product into Epics and User Stories 151
Formula 4.0 Product Metrics 154
Product Business Metrics 155
Product IT Success Metrics 157
Agile Software Development Methodology in Formula 4.0 Product Development 159
Reduced Cost 163
Global Talent Pool 163
Increased Productivity 163
Cost of Quality 165
Agile-A De Facto Formula 4.0 Methodology 165
Notes 168
10 Human Resource Management 169
Formula 4.0 People Identification 170
The Cost Implications of a Traditional Pyramid 172
Formula 4.0 Hackfest Model 175
Shortlisting 175
Product Focused Evaluation 176
Behavior Evaluation 177
Trainings 177
Note 178
11 Importance of DevSecOps in a Product-Based Organization 179
Continuous Integration (CI) and Continuous Delivery (CD) in DevOps 182
Typical Tools Used to Build a DevOps Pipeline 182
Source Code Repository 182
Build Server 183
Configuration Management 183
Test Automation Tools 183
CI/CD Tools or Pipeline Orchestration 183
Infrastructure 183
DevSecOps 184
Application Security Threat Modeling 186
Static Application Security Testing (SAST) 187
Dynamic Application Security Testing (DAST) 187
Open Source Vulnerability Assessment 188
Network Vulnerability Detection 189
Real-Time Monitoring of Threats 190
Notes 190
Section V Data Analytics, Automation, IT-OT Integration, and Enterprise Governance
12 Big Data and Analytics 193
(BIG) Data First Reference Model 194
The Data Source 196
The Data Storage Layer 197
Data Injection Layer and Data Processing Layer 197
Data Consumption Layer 198
Data Operation 198
Data Governance 201
Components of a Data Governance Framework 203
Data Governance Implementation 204
Data Governance Tools 204
Data Security 204
Data Security Tools 205
(BIG) Data First Strategy 206
The First Lever. The Data Platform 207
The Second Lever: Smart Data Management 208
The Third Lever. Consumption-Based Analytics 209
The Fourth Lever: Smart Data Operations 210
Big Data: Challenges and Mistakes 213
Formula 4.0 Data Maturity Levels 214
The First Capability Area: Data Pipeline 216
The Second Capability Area: Data Governance 217
The Third Capability Area: Data Operations 219
The Fourth Capability Area: Data Platform 219
The Fifth Capability Area: Tools 219
The Benefits of Moving to Maturity Level 2 219
Maturity Level 2 Case Studies 221
Notes 224
13 Automation with RPA and AI-ML 225
Robotic Process Automation 227
Artificial Intelligence with Data Science 228
Data Science 229
The Link between Artificial Intelligence and Data Science 230
Importance of Quality Data 230
Formula 4.0 Automation Methodology 231
Full Stack Operations Automation 236
How to Get Automation Programs Right 239
Build Automation Center of Excellence at Enterprise Level 239
Follow a Structured Formula 4.0 Automation Identification Methodology 240
Automation Should Eventually Be Part of the Software Development and Operations Life Cycle 240
Compliance Due Diligence 240
Design a Business Process with End-to-End View 241
Cost Is Important but Business Impact Is Much More Key 241
Note 242
14 IT-OT Integration 243
Operational Technology-A Preview 245
The IT-OT Integration 247
Security in an IT-OT Integrated World 248
Cybersecurity Solutions for IT-OT Integration 253
IT-OT Integration Reference Architecture 256
IoT Devices 256
Device Management System 259
Gateways 259
Full Stack IoT Platform 260
When to Get Started on IT-OT Integration 261
Formula 4.0 IT-OT Core Team 262
Planning IT-OT Integration 265
IT-OT Integration with Formula 4.0 267
Notes 269
15 Enterprise Governance 271
Formula 4.0 Guidance on Digital Transformation Governance 273
Section VI Bringing the Pieces Together
16 The Formula 4.0 Methodology: Bringing All Capabilities Together for Digital Transformation 283
Understand the Goals and Objectives of an Enterprise 284
Defining Business Strategy and Identifying Business Processes for Digital Transformation 286
Setting up the Foundation 286
Cloud Infrastructure 286
Selecting the Right Cloud Strategy 289
Atomic Architecture 290
API Platform 291
Tools and Software Consolidation 291
Tactical Benefits 292
Operational Benefits 293
Strategic Benefits 293
Formula 4.0 Tools Consolidation Approach 293
Product Organization and People Transformation 295
People Transformation aka Workforce 296
Setting Up DevSecOps for Product Development 296
Data First 297
Enterprise Governance 298
Enterprise Governance within Capability Areas 298
And Finally-Enabling Automation with RPA, AI, and ML 299
IT-OT Integration as the Last Capability Area 299
Note 300
Index 301