Findings from my PhD and professional experience as an Enterprise Architect on how we can guide transformation of businesses, and development of enabling technological solutions. Presented at IT University, Copenhagen, Oct. 4 2019.

1. Technology Enabled
Business Transformation
Mikkel H. Brahm, PhD
Head Architect
Nordea Personal Banking
slideshare.net/mikkelbrahm
1

2. Enterprise Architecture
Some definitions to ensure that we understand each other
Architects design Architecture
Architecture is Structuring Structures1
We impose Structure to achieve Qualities
• e.g. Firmitas, Utilitas, Venustas
• ~ Durability, Usefulness, Beauty
Everything that is Formed has Architecture
• whether or not an architect designed it
• whether or not emergent = intentional
A Company may engage in one or more Businesses
A Business is a Purposeful Exchange of Valuables
(tangible or intangible; for profit or non-profit)
The Business takes place in an Ecosystem of
Players who play some role in the Context of the
Business e.g. customer and supplier, but also
market regulators, competitors, partners, media, ..
Enterprise can mean the Ecosystem, the Business, the Company, or the IT of either of these
Enterprise Architecture can mean the design of the (intentional) structure of the Enterprise,
or/and the (intentional and emergent) structuring of the Enterprise
1) Pierre Bourdieu, (1972) 2013, Outline of a Theory of Practice, Cambridge University Press 2

3. STRATEGY
SOURCE:
McKinsey Organization Design Service Line,
McKinsey 9 Golden Rules report
2013
SOURCE:
Leavitt, Harold J.
“Applied Organizational Change in Industry”
in Handbook of Organizations pp 1144-70
1965
Enterprise Architecture
We have improved our practice continuously for 5 decades… without progress

4. MechanismsPeople
Action
Structure
$
Enterprise Architecture (EA)
Harold Leavitt, 1965, Applied Organizational Change in Industry, in Handbook of Organizations, James March (Ed.), Routledge
Based on Leavitt’s diamond

5. Enterprise Architecture
The dream
EA should work like a GPS
which guides us safely to the desired state
(actually: navigator) A GPS Navigator relies on maps
produced through land surveying
Which means that you can use the
GPS navigator only to visit places
where surveyors have already been …
… so who has visited the desired state?
… do we just make stuff up?
and the unfortunate truth
The great enemy of the truth is very often not the lie,
deliberate, contrived and dishonest,
but the myth, persistent, persuasive and unrealistic.
John F. Kennedy
5

6. 3. AS-IS MODEL 2. TO-BE MODEL
0. AS-IS REALITY 1. TO-BE REALITY
4. GAPS
• A
• B
• C
5. ROAD MAP
Best Practice (waterfall) Change Management
Rarely delivers the desired outcomes – but it is something you can do without having to think too much
6[E.g. TOGAF-ADM] Open Group, The (2013) TOGAF® Version 9.1. Zaltbommel: Van Haren Publishing.

7. Models are a subset of reality - only
Some gaps are not and cannot be modelled (in current models at least) e.g. differences in culture
Einstein: It’s not that I’m so smart, it’s just that I stay with problems longer
?
!
Problem Solution
Solution
Problem
(Objective)
7

8. Changes occur, that you did not intend to occur
Other players in the ecosystem (and organization) will perform actions that lead to changes
Influence
Action
Response
e.g. Power and Influence – Public Transcript
e.g. Arts of Resistance – Hidden Transcript
James C Scott, 1992, Domination and the Arts of Resistance, Yale University Press 8

9. Not all intended changes do occur
We are not always able to affect desired changes due to lack of know-how or unrealistic ambitions
9

10. Best Practice (waterfall) Change Management
Partial answer to why this approach rarely seem to deliver the desired outcomes
Our models are (over) simplifications of the real world
=> they do not describe all the relevant forces and aspects of problem and solution
1. Gaps between as-is and to-be models are only a subset of gaps between realities
◦ dependencies exist between gaps, both gaps that show up in models and gaps that do not
2. Changes in our roadmap are only a subset of all the changes that occur e.g. do not cover
◦ changes emerging without intentional actions
◦ changes that result from the intentional moves of other players in the ecosystem
3. Some changes that are included in our roadmap, we are not always able to effect
◦ the people available to us may not have the required know how or technologies
◦ “wielding power” to influence, sell, motivate, etc. is difficult and complex
◦ the objective we are pursuing may not be realistic
10
Iterative approaches may better support learning and navigating along the way

11. The myth of Enterprise Architecture (and Change Management)
The Illusion of Control: Intentional and only intentional change happens

12. Deductive method
Theory -> Hypothesis -> Test -> Proven hypothesis
Inductive method
Observation (quantitative) -> Analysis -> Hypothesis / Theory
Abductive method
Observation (qualitative) -> Question -> Theories -> Interpretation

13. Bourdieu’s Structuring Structures and Habitus
Structure is not only physical, it is also social
Example: Gift giving
…
In every society it may be observed that, if it
is not to constitute an insult, the counter-gift
must be deferred and different, because the
immediate return of an exactly identical
object clearly amounts to a refusal (i.e. the
return of the same object) …
In short everything takes place as if agents'
practice, and in particular their manipulation
of time, were organized exclusively with a
view to concealing from themselves and
from others the truth of their practice …
To interact consciously we must first share
language and the culture the language
shared is based upon 'Communication of
consciousness' presupposes community of
'unconsciousness' (i.e. of linguistic and
cultural competences).
Popularly:
Culture eats strategy for breakfast
Similar for development:
Execution structure eats architecture
(aka Conways law)
Pierre Bourdieu, (1972) 2013, Outline of a Theory of Practice, Cambridge University Press 13

14. Alexander’s Patterns
A thing which happens in the world, and a rule which tells us how and when to create it
Example
112 Entrance Transition**
…
There is another argument which helps to
explain the importance of the transition:
people want their house, and especially the
entrance, to be a private domain. If the
front door is set back, and there is a
transition space between it and the street,
this domain is well established.
…
Definition of Pattern1
“Relationship between a certain context, a
certain system of forces which occurs
repeatedly in that context, and a certain
spatial configuration which allows these
forces to resolve themselves”
Context (Forces) + Problem + Solution
A Solution to a Problem without an
understanding of the Forces at play and
why the Solution allow these to resolve
themselves is not a Pattern!
Christopher Alexander, 1979, The Timeless Way of Building & 1977, A Pattern Language, Oxford University Press 14

15. Whether the power differentials are large or small,
balances of power are always present
wherever there is functional interdependence
between people…
We say that a person possesses great power,
as if it were a thing he carried about in his pocket.
This use of the word is a relic of magico-mythical ideas.
Power is not an amulet possessed by one person and not by another; it
is a structural characteristic of human relationships - of all human
relationships.
NORBERT ELIAS, 1978:74
WHAT IS SOCIOLOGY

16. MICHEL FOUCAULT, 1994:12, 1991: 194
DISCIPLINE AND PUNISH: THE BIRTH OF A PRISON
POWER – ESSENTIAL WORKS OF FOUCAULT.
One must observe also that there cannot be relations of power unless
the subjects are free (…) That means that in the relations of power,
there is necessarily the possibility of resistance, for if there were no
possibility of resistance – of violent resistance, of escape, of ruse, of
strategies that reverse the situation – there would be no relationships of
power (…) If there are relations of power throughout every social field it
is because there is freedom everywhere.
‘We must cease once and for all to describe the effects of power in
negative terms: it ‘excludes’, it ‘represses’, it ‘censors’, it ‘abstracts’, it
‘masks’, it ‘conceals’. In fact power produces; it produces reality; it
produces domains of objects and rituals of truth. The individual and the
knowledge that may be gained of him belong to this production

17. Enterprise architecture (EA) is a discipline
for proactively and holistically leading
enterprise responses to disruptive forces
by identifying and analyzing the execution of change
toward desired business vision and outcomes.
EA delivers value by presenting business and IT leaders
with signature-ready recommendations
for adjusting policies and projects
to achieve targeted business outcomes
that capitalize on relevant business disruptions.
Enterprise Architecture (EA)
Gartner’s definition
“

18. 18
[Why are banks so similar?] DiMaggio, P. J. and Powel, W. W. (1983) The iron cage revisited:
Institutional isomorphism and collective rationality in organisational fields. American Sociological Review. 48(2), pp.147-160.

19. Source: Nordea, Annual Report 2017, nordea.com Investor Relations
Nordea simultaneously responds to change and innovate
Together, we lead the way, enabling dreams and everyday aspirations for a greater good
19

20. 2018 © Nordea Digital Company confidential
Customer Statement
“I will trust a bank that guides me when I
feel lost, comforts me when I feel
frustrated, and encourages me when I need
motivation.” Take my hand
and I will trust
you
Customer Statement

21. Source: Nordea, Annual Report 2018, nordea.com Investor Relations 21
€m

22. Nordea’s adoption of Scaled-Agile Framework
This is a work in progress – roughly 50 % of development is done in a SAFe (“inspired”) structure
• Nordea has split our total investment in change into 7 portfolios
• Initiatives in a portfolio are sized according to investment level (essential, large, full)
• Cadence is common 4*12 weeks PI’s (+3+1 weeks of vacation) = matches fiscal year & quarters
22Source: https://scaledagileframework.com/

23. Nordea Organisation, simplified
No split between IT and Business, nor Silos; just Run the Business and Change the Business
Group
Functions
Personal Wholesale
RUN THE BANK
CHANGETHEBANK
Group Functions Portfolio
Technology
Personal Portfolio
Commercial Portfolio
Commercial &
Business
Wealth
Wealth Portfolio
Wholesale Portfolio
Change Execution Initiatives funded by Portfolios
Product (not Project) funding i.e. ≈ Stable Burn Rate
Architectural Governance is a mix of Investment Gates and
Solution Architects assigned into Hubs
Group Data Portfolio
Group Tech Portfolio
Group
Architecture
CEO & COO
23

24. Budgets&Guidelines
Controlling&Reporting
Henry Mintzberg, 1983, Structure in Fives, Designing effective organizations, Prentice-Hall 24

25. Sunshine
25James C Scott, 1992, Domination and the Arts of Resistance, Yale University Press

26. Architecture Board
CxO
Head Architect
Dual competent
Solution Architect
Dual competent
Developer
Cross-functional teams
trust
trust
trust
26

27. Gartner Magic Quadrant
Becoming a Leader requires both Completeness of Vision and Ability to Execute
Do we know
what it is to be
the leading digital bank?
Do we have the
know-how to execute
required changes?
Source: https://www.gartner.com/en/research/methodologies/magic-quadrants-research

28. Nordea & Personal Banking Priorities 2019
Each Business Area defines sub-goals to the Group level priorities
Increase Business Momentum
• Mmmmmmm mmm mmmmmmmm mmmmmmmmm
• Mmm mmmmmmmmm mmm mmmmmmmmmmm
• Mmmm mmmmmmmmmm mmm
• Mmmmmm mm mmm m mmmmmmmm
• Mm mmmmmmmm mmm mmmmmmmmm
Drive Structural Cost Efficiency
• Mmmmmmmmm m mmmmmmm mm mmmmmm
• Mmmmm mmmmmmmmm mmmmmmm mmmmm
• Mm mmmmmmm mmmmmmm mmmmmmm
Key Priorities
Key Enablers
Leverage ONE Nordea
Embrace Data, Technology & Digitalisation
Embed the Nordea Culture
• Mm mmmmmmmmmm mmmmmmmmmmmm mmmmmmmmmmm mmmmm
Mm mmmmmmmmmm mmmmmmmmmmmm mmmmmmmmmmm mmmmm
• Mm mmmmmmmmmm mmmmmmmmmmmm mmmmmmmmmmm mmmmm
28
What to architect?
Completeness of
Vision?

29. Investment in Change in Personal Banking 2019
Illustrative example (names/numbers are modified)
29
INITIATIVE
ARCH.
ALIGN
BUDGET
FY TARGET
ARCH.
PRIORITY
ARCHITECTURE
ALIGN & PRIORITY RATIONALE
BusinessMomentum
StructuralCostEfficiency
LeverageONENordea
Data,Tech&Digi
Lack of clarity of scope boundaries with <other
investment> and risk of duplication
€ 1,2m
Increase momentum within some product
offering
Product and Service 1
Have not yet adopted strategic enabler zzz€ 2,1m
Increase momentum within some servicing
offeringProduct and Service 2
Building yyy, which could be acquired to speed up
innovation
€ 12,1mWin the XYZ market by ZYXMarket 3
High Biggest and most important enabler in the bankMostly€ 121mNnn mmmmmmmm nnn mmmmmmRe-platform 2
Key enabler for re-platform 2€ 12,1mNnn mmmmmmmm nnn mmmmmmNew capability 1
High Key enabler for re-platform 2Fully€ 21,2mNnn mmmmmmmm nnn mmmmmmRe-platform 1
Mmm m mmm mmmmmmmmm mmm€ 2,1mNnn mmmmmmmm nnn mmmmmmNew capability 2
Mmm m mmm mmmmmmmmm mmmNeutral€ 1,2mNnn mmmmmmmm nnn mmmmmmInnovative capability 3
Mmm m mmm mmmmmmmmm mmm€ 2,1mNnn mmmmmmmm nnn mmmmmmCulture transformation 1
Embedthe
NordeaCulture
Nordea and PeB
2019 PRIORITY
High
Mostly None
Mostly
None
Mostly None
Mostly None
None
NoneFully
Mostly
Business
Momentum
Leverage
ONE
Nordea
Data
Tech
Digi
Cul-
tureCost
Next step (I hope): Pivot to focused Goals-driven
Inspiration: Chris Potts, FruITion Series, Creating the Ultimate Corporate Strategy for Information Technology
Investment culture?
Ability to execute?

30. Governance for Change Execution Initiatives
PeB Architecture provides architectural steer and guidance to PeB initiatives
30
2. Overview of platforms which initiatives in the PeB Portfolio build1. Overview of the PeB Portfolio of change execution initiatives
3. Vision, Strategy, Target and Transition for each platforms 4. HLD and SDD for each initiative, with reference to platforms architecture
Vision
5p
Strategy
10p
Target
20p
Transition
20p
High-Level
Design (HLD)
25p
Low-Level
Design (SDD)
35p
reference

31. Diversify on Portfolio level
Do not complicate individual initiatives, but ensure that you can survive failures of individual initiatives
Digital Bank
You can get everything digitally
One
Digital Platform
3½ * 2 * 4
Digital Platforms
Inject new features into old platforms
31
Create and Launch a separate Wallet App Decommission Wallet
Re-platform 20+ to 1 Decommission 20+
Re-invent personal money management experience

32. Nordea’s transformation is a series of transformational changes
Currently the ecosystem probably requires us to change more than we can cope with in one go
32
Simplify our Operating Core
to reduce technical debt, associated risk
and structural cost, and to increase agility
Digitalise Sales and Servicing
to compete cost effectively with market
entrants and deliver financial wellbeing
anywhere and anytime
Open our Supply Chain and
Distribution
to enable partnerships to enhance our
capacity for innovation
To support this, the business must adopt a common Nordic business model and value proposition, and a common Nordic business operating model

33. Idealised Application (group) Landscape for mass-market
We seek to enforce certain design restrictions on enterprise level e.g. Layering
33
Employee
Partner
Customer
Strategy &
Transformatio
n
Business Change
& Value
Realization
Strategy &
Business
Development
IT Mgmt. & IT
development
People Mgmt.
Corporate
Relations &
Comm’s
Legal
Facilities
Mgmt.
Procurement
Enablers
Experienc
e
Foundatio
n
Layer
Micro App
User Journey &
Channel Activity
Foundation API
Identification &
Entitlements
Risk &
Complianc
e Layer
Fraud Mgmt. &
Financial Crime
Prevention
Credit RiskCompliance Treasury Mgmt.
Nordea Financial
Mgmt.
Market Risk Operational Risk Financial Risk
Product &
Services
Layer
Core Banking
Platform
(N-Core)
Customer &
Counter-party
Platform
(N-Core)
New Payment
Platform
(NePP)
Cards Platform
Trading &
Portfolio Mgmt.
Platform
Customer
Liquidity Mgmt.
Pension,
Savings &
Investment
Planning
Platform
Life & Pension
Platform
Finance &
Leasing
Platform
CRM &
Advisory
Platform
Service
Mgmt.
Layer
BPM/Workflow,
Dossier/Case &
Workforce
Mgmt.
Capability API Digital Services
Robotic Process
Automation
Document
Mgmt. Platform
API
Mgmt.
Pricing, Billing
& Charging
Aggregation &
Enrichment
Content
Management
3rd Party
Integration
platforms
Industry
Infrastructure
Life & Pension Insurance
3rdPartySourced
Products&
Capabilities
Common
Data &
Analytics
Common Data
Management
Analytics
User
Experienc
e Layer
Open Banking
Platform
Financial
Gateways
Nordea-branded
Experience
on 3rd Party
Digital
Sales & Servicing
Branch & CC
Sales & Servicing
Digital
Communication
3rd-Party-branded
Experience
File Services
Back
Office
DownstreamUpstream
16 September 2019

34. EA is serving very different stakeholders
Content and form should always be tailored to the needs of the audience
34
Signature-ready recommendations, Consequences
Architectures and Guidelines

35. EA provides CxO decision makers with recommendations
Architecture informs our recommendations, but what we deliver is recommendations
Architects create architectural models,
assess execution to target, assess required
enablers etc. to improve alignment etc. etc.
i.e. we use architecture to figure out
what “is wrong” and “how to fix it”
What we present to decision-makers
is signature-ready proposals (as per
Gartner definition) and where we use
what we have architected as rationale for
the recommendations.

36. Shared via
Architecture Repository
EA provide initiatives with Target and Transition architecture
We do not just seek autonomy per se, but a mix with just-in-time centralized decisions
36
Enterprise Level
Portfolio Level
Solution Level
Information Guidance
Approved by
Architecture
Board
Approved by
Maker + Checker
Solution Architects must link their architecture
to Enterprise and Portfolio level architecture
Architecture that guides build teams
must be approved by the Architecture Board
We are centralizing prioritization and control
over the transformation of Nordea
and invalidate previous ‘silo-decisions’
Published by
Head
Architect
Approved by
Maker + Checker
scaledagileframework.com: Centralize infrequent long-lasting decisions that provide significant economies of scale

37. Often EA fights a bad image resulting from a poor track record
You can only really demonstrate that EA has value by having value
From
Enterprise Architects are the people
who put ‘no’ in innovation
To
Enterprise Architects are the people
who enable Technology Driven Business Development

38. 38

39. UmlAsBlueprint is a UmlMode that focuses on completene
The essence of (UmlAsSketch) sketching is selectivity
The promise of (UmlAsProgrammingLanguage
as) a higher level language (is that it is) … more
productive than current programming languages.Martin Fowler
https://martinfowler.com/bliki/UmlMode.html
EA provide models
We have as-is models and registry in Hopex, and selective sketches of to-be

40. Find out what you are architecting
Find out who is building / making decisions on what you are architecting
Find out which questions the builders / decision-makers have
◦ E.g. how to build in a desirable, viable, feasible (, …) way
Find out who also wants to supply such answers
Find out which of these could be allies and which are opponents
Do whatever it takes to provide the needed answers / guidance
Universal Architecture Method
Own work – please steal with pride

41. Enterprise Architect toolbox
A multi-disciplinary approach will enable more informed decision making
41
Enterprise Architecture
(and Technology)
Tools, Methods, and
Understanding
Business and
Change Management
Tools, Methods, and
Understanding
Leadership and
Psychology
Tools, Methods, and
Understanding

42. How you become competent hinders development of expertise
To evolve you must first follow prescriptive methods and models, and then transcend them
42
Schooling
Mentoring
Reflexivity
Transcend
MethodsandModels
Follow
MethodsandModels
Hubert and Stuart Dreyfus, 1986, Mind over Machine, Macmillan Inc.

43. Questions &
Comments
Slides on slideshare.net/mikkelbrahm