Estimation-formula Agile Architecture (E-AA) enables digital transformation
Date：2024.05.21 08:55Views：
(Celedog Res research results, first published in Shenzhen in February 2023 and updated in Macau in May 2024)
【2024004】Estimation-formula Agile Architecture (E-AA) enables digital transformation.pdf
PART I Introduction
1.1 The necessity and challenge of digital transformation
In today's rapidly changing business environment, digital transformation has become an inevitable choice for enterprises to survive and thrive. Here are a few of the essentials of digital transformation:
o Enhance competitiveness: Digital transformation can significantly improve the competitiveness of enterprises. By adopting advanced digital technologies, companies can optimize operational processes, increase productivity, and reduce costs, thereby gaining a stronger position in the market.
o Enhance the customer experience: Digital transformation enables businesses to better understand and meet customer needs. Through big data analytics, artificial intelligence and other technologies, enterprises can provide personalized services and improve customer satisfaction and loyalty.
o Drive innovation: Digital transformation provides more opportunities for businesses to innovate. The application of new technologies can not only give rise to new business models and products and services, but also promote a culture of innovation within the enterprise and stimulate the creativity of employees.
o Enable data-driven decision-making: In the digital age, data has become an important asset for businesses. Through digital transformation, enterprises can realize the comprehensive collection, analysis and application of data, support scientific decision-making, and improve management level.
o Respond to market changes: Digital transformation enables companies to be more adaptable, able to respond quickly to market changes and customer needs, and stay competitive in the market. A flexible digital operating model can help businesses thrive in the face of uncertainty.
Despite the many benefits of digital transformation, there are also many challenges that companies face during implementation:
o Technological complexity: Digital transformation involves the introduction and integration of many new technologies, such as cloud computing, big data, Internet of Things, artificial intelligence, etc. The complexity and rapid change of these technologies have put tremendous pressure on enterprises to manage technology.
o Resistance to organizational change: Digital transformation is not only a change in technology, but also a profound change in organizational culture and business processes. Employees' ability to adapt to new technologies and models, management's level of support, and an organization's willingness to change can all have a direct impact on the success or failure of a transformation.
o Data security and privacy: In the process of digital transformation, enterprises need to deal with large amounts of sensitive data. How to ensure the security and privacy of data and prevent data leakage and cyber attacks is an important challenge that enterprises must face.
o High investment and risk: Digital transformation requires a large amount of capital investment, including technology research and development, equipment renewal, and talent training. At the same time, the uncertainty and risk of failure in the transformation process also put companies under tremendous pressure.
o Talent shortage: Digital transformation has high requirements for talents, and enterprises need compound talents who understand both technology and business. However, this type of talent is scarce in the market, and companies face serious challenges in recruiting and developing talent.
Although digital transformation is the only way for enterprises to develop, it requires careful planning and steady progress in the implementation process to overcome various challenges and achieve the desired strategic goals.
1.2 The Emergence and Significance of Estimation-formula Agile Architecture (E-AA).
When enterprises face the complex challenges of digital transformation, traditional transformation methods are often difficult to cope with rapidly changing market demands and technological advancements. The emergence of Estimation-formula Agile Architecture (E-AA) is precisely to solve these dilemmas, as an innovative digital transformation methodology, aiming to provide enterprises with scientific, structured and flexible transformation support.
o Coping with Complexity: Traditional approaches often lack systematic and forward-looking capabilities, making it difficult to address the complex technical and business changes involved in digital transformation. By combining Estimation-formula logical reasoning and agile architecture, E-AA formulates personalized transformation paths through benchmarking and trend estimation, helping enterprises find optimal solutions in complex environments.
o Meet the need for rapid response: The rapid changes in the market and technological environment, especially the rapid advancement of AGI, have further intensified the competitive pressure of enterprises, and enterprises need to have the ability to respond quickly. The core characteristics of agile architecture are flexibility and rapid response, and E-AA enables enterprises to quickly adjust and optimize business processes, products/services to adapt to external changes through a full-building block loosely coupled service design.
o Integrating Best Practices and Future Trends: E-AA not only draws on the best practices of leading companies globally, both within and outside the industry, but also integrates future technological and management development trends. Through comprehensive estimations, it provides enterprises with comprehensive and forward-looking transformation strategies, ensuring that they maintain a competitive advantage in both current and future scenarios.
o Improve the scientific decision-making: Using Estimation-formula logical reasoning, E-AA provides evidence- and data-based decision support tools for enterprises, aiding them in making more rational and effective plans and decisions during the transformation process.
The significance of the Estimation-formula Agile Architecture (E-AA) is that it provides an innovative and systematic methodology for the digital transformation of enterprises, which can effectively respond to various challenges in the transformation process and promote enterprises to achieve high-quality digital transformation.
o Scientific planning: E-AA, through Estimation-formula logic, utilizes benchmarking and trend analysis to develop forward-thinking, personalized blueprints and pathways for digital transformation, making transformation planning more scientific and practical.
o Flexible implementation: The core features of the agile architecture enable E-AA to respond flexibly to changes during the implementation process, quickly adjust strategies and solutions, ensure a smooth transformation process, and reduce risks and costs.
o Continuous Improvement: E-AA emphasizes continuous improvement and investment protection, and through the integration of full-building block loosely coupled service design and technological innovation, enterprises can continuously optimize and improve in the process of digital transformation to maintain long-term competitiveness.
o Comprehensive capability improvement: E-AA not only focuses on technological changes, but also includes comprehensive changes in business models, management processes, products/services, organizational capabilities, and culture, so as to enhance the overall digital capabilities and competitiveness of enterprises, and strive to build a future-oriented digital enterprise.
o Practical verification: E-AA draws on and integrates the successful experience of 100+ global leading enterprises in digital transformation, provides proven strategies and methods, and has been fully verified by many Fortune 500 and track leaders at home and abroad, providing valuable reference and guidance for the transformation of other enterprises.
Through the Estimation-formula Agile Architecture (E-AA), enterprises can build a flexible, efficient, and sustainable operating model and product/service innovation model in the rapidly changing digital era, and successfully achieve the strategic goal of digital transformation. This not only brings new development opportunities for enterprises, but also provides innovative ideas and methods for the digital transformation of the entire industry.
PART II Definition and core concepts of Estimation-formula Agile Architecture (E-AA).
2.1 Definition of E-AA
Estimation-formula Agile Architecture (E-AA) is is an innovative and leading enterprise-level methodology for digital transformation developed by Huahui International. This methodology is derived from successful experiences accumulated by Huahui International in digital transformation practices with over 100 leading global enterprises. It emphasizes the combination of agile methods and Estimation-formula thinking, with its core concept being "based on estimation, guided by agility, and supported by architecture." Its aim is to provide enterprises with a practical, scientific, structured, and forward-thinking digital transformation solution that enables rapid, low-cost, low-risk, and high-quality transformation.
This methodology effectively guides enterprises in comprehensive or domain-specific digital transformation (business model and management, organization and capabilities, products and services, IT, culture), including:
o Utilizing Estimation-formula thinking, adopting the Estimation-formula Methodology (D9), to develop digital strategies, set transformation goals and initiatives, and plan digital blueprints and evolution milestones.
o Designing digital transformation programs, including Combat scenarios, business management, product services, organizational capabilities, and cultural reshaping.
o Establishing digital systems, implementing business capability service and marketization, flexibly orchestrating based on Combat scenarios, and building end-to-end workflows guided by scenario objectives to respond flexibly to diverse business scenarios.
o Building and operating digital platforms, including X-integrated operational platforms/X-intelligent real-time command systems, with agile evolutionary design and implementation, IT service atomization, and modular construction under the guidance of high-level blueprints.
o Upgrading or reshaping digital products/services, driven by Estimation-formula thinking and digital technology, constructing atomic service markets and shelfization of products/services, and quickly assembling to meet diverse customer needs.
o Promoting the development and continuous improvement of digital organization and culture.
o Implementing effective digital transformation management.
2.2 Estimation-formula logic
Estimation-formula logic is a method of logical reasoning that infers the possibility of other related facts based on known facts or evidence. The E-AA methodology applies estimation-formula logic to strategic planning for digital transformation, specifically categorized into the following three types:
1）Benchmarking Estimation-formula
By analyzing successful digital transformation cases within and across industries from leading global enterprises, core advantages and key success factors are extracted. Combining the existing resources and potential development capabilities of the target enterprise, benchmarking estimation-formula is used to infer the transformation path, development plan, and expected results of the target enterprise.
2）Trend Estimation-formula
Based on industry development trends and the evolution path of digital technology, key elements of management innovation and technological innovation are extracted. Combined with the real foundation and growth potential of the target enterprise, trend estimation-formula is used to predict the direction of enterprise transformation, strategic planning, and expected outcomes.
3）Comprehensive Estimation-formula
Benchmarking estimation-formula and trend estimation-formula are combined to form a comprehensive reasoning method. It considers both the best practices within the industry and future trends in industry and technology development, providing the enterprise with a comprehensive, multi-dimensional transformation strategy estimation.
2.3 The core features of agile architecture
Agile Architecture is an innovative architecture framework designed to meet the needs of digital enterprises. Its core features include:
o Blueprint Leadership & Service Design
Through the guidance of forward-looking blueprints and the design of sunken atomic services, the flexible combination of services is realized, and the changes in the business environment and ever-changing combat scenarios are quickly adapted.
o Business strategy alignment
Establish a mechanism that aligns with business strategy, advocate a culture of mutual recognition as organizational cohesion, and ensure that the organization maintains close collaboration while empowering.
o Full building block loose coupling service
Decompose the enterprise's products and services, internal operation management, organizational operations and IT into loosely coupled building block atomic services to form an enterprise-level atomic service marketplace (business, organization, product/service, IT), and build a full-stack autonomous team (i.e., an integrated combat team for industry and technology integration) based on the principle of consensus and co-construction to achieve integrated collaboration of business, architecture, implementation, and operation.
o Technology and innovation converge
Adopt mature and up-to-date digital technologies, including distributed computing, autonomous systems, data streaming, cloud computing, service mesh, and artificial intelligence, to drive the development of architectural models with technological innovation.
o Investment protection and continuous improvement
Maximize the protection of enterprises' existing digital technology investments, and ensure that loosely coupled atomic services are the smallest combat unit with the ability to continuously improve to adapt to changes in business management and carried content.
o Lessons learned
Draw on the practical experience of 100+ global leading enterprises in the process of digital transformation, and use proven methods and strategies to provide reference for enterprise agile architecture implementation.
Figure 1: Overview of the Estimation-formula Agile Architecture
The Estimation-formula Agile Architecture (E-AA) not only provides a clear strategic blueprint, but also helps enterprises maintain a competitive advantage in the rapidly changing digital era and successfully achieve the strategic goals of digital transformation through flexible and sustainable implementation.
PART III Main applications of E-AA in digital transformation
3.1 Digital strategy development
Figure 2: Estimation-formula methodology (D9)
3.1.1 Digital Strategy and Transformation Goals
Referring to the Huahui Benchmarking Decoding Model and Estimation-formula Guide, under the guidance of the Estimation-formula Agile Architecture (E-AA), the setting of digital strategy and change goals is the first step in the digital transformation of enterprises. By applying the Estimation-formula thinking of E-AA, companies are able to formulate scientific, rational and forward-looking strategies and goals.
1）Definition of a digital strategy
A digital strategy is the overall direction and plan for an enterprise to achieve digital transformation. It covers how to leverage digital technologies to drive business value, optimize operational processes and organizations, upgrade or reinvent products/services, enhance customer experiences, and achieve innovative growth.
2）Set goals for change
Change goals are specific outcomes and milestones that businesses expect to achieve in their digital transformation journey. Change goals typically include improving operational efficiency, enhancing the customer experience, driving business innovation, improving data utilization, and enhancing competitive advantage. Methods include:
o Benchmarking Estimation-formula
Analyze the digital transformation cases of successful enterprises and combine their resources and potential to set challenging but achievable goals.
o Trend Estimation-formula
Study industry development trends and technology evolution paths, predict the direction of enterprise change, and formulate forward-looking strategic goals.
o Comprehensive Estimation-formula
Combining benchmarking and trend Estimation-formula, a multi-dimensional reasoning method is formed to ensure the comprehensiveness and forward-looking of strategic objectives.
3.1.2 Digital blueprint and evolution roadmap planning
The digital blueprint and evolution roadmap plan is a concrete implementation plan to achieve the digital strategy and transformation goals. By combining Estimation-formula thinking and agile architecture, organizations are able to remain flexible, forward-looking, and efficient in their planning and implementation processes.
1）Building a digital blueprint
A digital blueprint is a detailed planning document that encompasses changes to business models, technology architectures, organizational structures, and operational processes. Features include:
o Holistic perspective: Through benchmarking Estimation-formula analysis of successful cases within and outside the industry, covering all business areas and departments of the enterprise, ensuring the comprehensiveness and consistency of the transformation.
o Modular design: Utilizing agile architecture with loosely coupled, modular services, the transformation content is broken down into independent yet interconnected modules, facilitating flexible implementation and adjustments.
o Convergence of technology and business: By incorporating trend Estimation-formula, ensuring the integration of technological innovation with business needs, supporting the achievement of business objectives.
2）Evolution signpost planning
The evolution roadmap is a specific implementation plan to achieve a digital blueprint and guide enterprises to promote digital transformation in an orderly manner. The plan includes:
o Phased Approach: Based on the analysis results from benchmarking and trend Estimation-formula methods, the entire transformation process is divided into several stages according to complexity and priority, with each stage having clear objectives and tasks.
o Task decomposition: In line with agile architecture principles, the goals of each stage are broken down into specific tasks and activities, with defined responsible departments and personnel, ensuring flexible adjustments and rapid iterations.
o Timeline: Establish timeframes for each stage and task, ensuring progress is controllable, while allowing for flexible adjustments to the schedule based on actual conditions under the guidance of Estimation-formula thinking.
o Resource allocation: Plan the resources required for each stage, including manpower, capital, technology and equipment, to ensure the efficient use of resources and achieve the optimal allocation of resources through full-stack autonomous teams with agile architecture.
o Risk management: Identify potential risks at each stage and develop corresponding mitigation strategies using Estimation-formula thinking, ensuring a smooth transformation process, and leveraging the agile architecture’s rapid response mechanism to address issues promptly.
3）Dynamic adjustment and continuous improvement
Digital blueprints and evolution roadmaps need to be dynamically adjusted and continuously improved according to the external environment and internal conditions. Through regular assessment and feedback mechanisms, problems are identified and strategies are adjusted in a timely manner to ensure the flexibility and effectiveness of the transformation path.
o Application of Estimation-formula Thinking: Through continuous benchmarking analysis and trend forecasting, dynamically adjust the blueprint and roadmap to ensure that strategic planning aligns closely with actual conditions.
o Implementation of Agile Architecture: Utilize the modular design and rapid iteration capabilities of agile architecture to ensure that each transformation stage can quickly adapt to changes, improving the efficiency and quality of the transformation.
By combining Estimation-formula thinking and agile architecture, the planning of the digital blueprint and evolution roadmap provides enterprises with scientific, flexible, and efficient guidance for digital transformation. This not only helps enterprises clarify the direction and path of their transformation but also lays a solid foundation for the subsequent design and implementation of change programs.
3.2 Digital transformation solution design
Under the guidance of the Estimation-formula Agile Architecture (E-AA), designing a digital transformation plan is a critical step in an enterprise's digital transformation journey. This includes designing Combat scenarios, business management transformation plans, product and service upgrades or redesigns, organizational capability transformation plans, digital culture reshaping designs, and digital platform designs. These plans ensure that the enterprise can achieve its digital transformation goals at all levels.
Based on the E-AA methodology, this phase involves high-level design, which translates the digital blueprint into detailed high-level plans. It considers the current state and organizational capabilities of the enterprise, while extensively using Estimation-formula thinking to draw from the benchmark practices of leading global enterprises. This ensures that the high-level design plans not only lead the enterprise's digital transformation but also effectively address short-term business pain points. Consequently, it ensures that the enterprise's digital strategy can be effectively implemented, supporting business success and sustainable development.
3.2.1 Combat scene design
An " Combat scenario" within an enterprise typically refers to a set of operational and interactive environments designed and simulated to achieve specific business objectives. It encompasses coordination and collaboration between the various departments, teams, and resources required by the organization. Key elements of an Combat scenario definition include:
o Define the goal: Determine the specific business goal or strategic direction to be achieved in the scenario.
o Actors: Define the various departments, teams, and their roles and responsibilities involved in the scenario.
o Operation flow: Describe in detail the interaction and operation flow between various subjects, including the transfer of information flow and resource flow.
o Resource Configuration: Lists the resources required to run the scenario, including manpower, technology, tools, and data.
o Offers: lists the products and services involved in the scenario.
o External factors: Consider the impact of market dynamics, the competitive environment, and other external variables on the scenario.
o Feedback mechanism: Design a real-time monitoring and feedback system to evaluate the implementation effect of the scenario and make optimization adjustments.
By defining these elements in detail, organizations can create an efficient, flexible, and adaptable Combat scenario that supports business objectives and continuous optimization.
1）Analysis of the current situation
o Business Process Assessment: Conduct a detailed analysis of existing business processes to identify bottlenecks and challenges in current operations.
o Data-driven insights: Leverage existing data for analysis to understand current market demand, customer behavior, and business performance.
2）Future scenario prediction
o Industry Trend Analysis: Apply trend Estimation-formula methods to study industry development trends and technology evolution paths, predicting future market changes and emerging demands.
o Innovative Scenario Design: Based on trend predictions and benchmarking Estimation-formula methods, design future business scenarios that include potential market opportunities and business model innovations.
3）Simulation and evaluation
o Scenario simulation: Leverage the rapid iteration capability of agile architecture to simulate current and future scenarios and test the effectiveness of different strategies.
o Scenario evaluation: Evaluate the feasibility and potential impact of each scheme through simulation results, and select the best scheme for implementation.
4）Develop coping strategies
o Emergency plan: Design emergency plans for all kinds of emergencies to ensure that enterprises can respond and adjust quickly.
o Implementation plan: Develop a detailed response strategy and action plan that clarifies the tasks and responsibilities of each stage.
5）Combat scenario management mechanism
There are countless Combat scenarios in the enterprise, and as the business changes, the scenarios will also change, and the Estimation-formula Agile Architecture (E-AA) approach recommends the full lifecycle management of "Combat scenarios" in a product-by-product manner to ensure that each Combat scenario can effectively support business objectives and achieve continuous optimization and improvement.
o Definition & Planning: Define business objectives, identify, classify Combat scenarios, and assess required resources.
o Design & Development: Develop detailed design documentation, develop prototypes, and optimize combat scenarios through iterative improvements.
o Implementation & Execution: Develop an implementation plan, train relevant teams, and monitor execution in real-time.
o Monitoring & Evaluation: Monitor key performance indicators in real-time, collect feedback, and evaluate performance on a regular basis.
o Optimization and maintenance: Continuously optimize combat scenarios, manage version updates, and build a knowledge base.
o Termination and review: Terminate the combat scenario according to the conditions, review and summarize the lessons learned.
o Mechanism guarantee: Define role responsibilities, equip management tools, and formulate standard processes and specifications.
3.2.2 Business management transformation solution
1）Analysis of the current situation
o Comprehensive Assessment: Using Estimation-formula thinking and data analysis, conduct a thorough evaluation of the enterprise's current business management model, identifying existing deficiencies and areas for improvement.
2）Design a business management change program
o Process optimization: Based on the analysis results and industry best practices, and in accordance with the five design principles of "standardization, regularization, automation, intelligence, and socialization", Huahui V+ model is adopted to build an enterprise-level or domain-level atomic business service marketplace, and flexibly supports the enterprise's ever-changing operation scenarios (end-to-end operation flow oriented to business success) through service orchestration, and builds a commercial-level agile operation management system (Biz-Agile®) 。
o Huahui V+ model
Huahui V+ model is one of the core components of the Estimation-formula Agile Architecture, which is based on the business capabilities of Biz-Agile®, sorts out and designs the business scenarios (current and future states) involved in Biz-Agile®, abstracts business activities (business service level)/tasks (atomic service level), and identifies the "business objects, business rules, and business processes" that need to be digitizedand further encapsulated into "business services or atomic services", which is conducive to the delivery of value in all aspects of value creation.
o Huahui Atom Service Orchestration Framework
The service orchestration described in the Estimation-formula Agile Architecture (E-AA) has its own unique service orchestrator (i.e., orchestration framework) to manage all atomic service orchestration, service composition orchestration, and combat scenarios, which is Huahui's digital workspace systemDigital Workspace System (DWS) and one of the important components of the enterprise-level all-in-one combat platform X-One.
Figure 3: Huahui V+ model
Figure 4: Atomic Services Marketplace and Orchestration Framework
3）Implementation strategy, solution evaluation, and solution iteration
Leverage the flexible implementation mechanism of agile architecture to gradually promote the transformation solution, and continuously optimize the business management transformation solution through rapid iteration and feedback.
o Agile implementation strategies
o Phased progress: Adopt agile development methods to implement business management transformation solutions in phases to ensure that each stage has clear goals and controllable progress.
o Rapid iteration: Through rapid iteration and feedback mechanism, the transformation solution is continuously optimized and adjusted to ensure the flexibility and efficiency of the plan.
o Continuous evaluation mechanism
o Performance monitoring: Establish a performance monitoring system, regularly evaluate the implementation effect of business management transformation solutions, and identify improvement points and optimization areas.
o Feedback mechanism: Collect feedback from employees and management at all levels, adjust and optimize the transformation solution in a timely manner, and ensure its effectiveness and sustainability.
3.2.3 Product service upgrade or redesign
1）Market demand analysis
o Demand Insights: Identify opportunities for upgrading or reshaping products and services through in-depth analysis of market demand and technology trends, especially AGI, through benchmarking and trend Estimation-formula.
2）Innovative design
o R&D and innovation: Using the innovative design capabilities of agile architecture and the operation mechanism of the integrated combat system of industry and technology integration, and using the core ideas of V+ model and Biz-Agile®, we will build an enterprise-level or domain-level atomic product and service marketplace, and develop competitive and combinable products and services to meet the ever-changing market demand.
o Disruptive Innovation: Using digital technology to disruptively innovate existing business models and products/services to create forward-looking products/services and create a second growth curve for the enterprise to ensure longevity.
3）Iterate quickly
o Product iteration: Adopt agile development methods and the DWS digital space platform to quickly iterate products and services to ensure timely response to market changes and customer feedback to achieve continuous improvement.
3.2.4 Organizational capacity change program
1）Competency assessment
o Assessment of the current situation: Through the Estimation-formula thinking and the organizational model of the Integrated Combat Team of Business-Technology Integration, the existing organizational capabilities of the enterprise are evaluated and the core capabilities and deficiencies are identified.
2）Capability enhancement programs
o Capability Transformation: Design organizational capability transformation plans, including talent training, skill upgrading, organizational structure optimization, and key capacity building, according to the capability model of the integrated combat team and key roles (Note: For a detailed description, see Huahui's special article " Digital Organizational Form: Integrated Combat Team of Business-Technology Integration "), including talent training, skill upgrading, organizational structure optimization, and key capacity building, to ensure that the organization can support the needs of digital transformation.
3）Agile team building
o Team building: In order to meet the needs of digital enterprises, the full-stack autonomous team model of agile architecture is used to establish flexible and efficient organizational teams, such as integrated combat teams integrating industry and technology, to improve the response speed and innovation ability of the organization.
3.2.5 Digital culture reshaping design
1）Analysis of the current state of culture
o Culture Assessment: Through Estimation-formula thinking, analyze the existing organizational culture of the enterprise to identify cultural barriers and room for improvement.
2）Cultural reinvention strategies
o Cultural transformation: Design digital culture reshaping strategies, including the promotion of cultural concepts, the cultivation of change leadership, and the incentive mechanism for employee participation, so as to promote the formation of digital culture.
o Culture-oriented: Aligning business success with the result orientation, "force out of a hole, force out of a hole".
3）Continue to advance
o Culture Deepening: Through the continuous improvement mechanism of the agile architecture, the culture change is gradually promoted to ensure the in-depth and lasting cultural reinstatement.
3.2.6 Digital platform design
1）Platform requirements analysis
o Needs assessment: Based on benchmarking Estimation-formula and trend Estimation-formula methods, analyze the enterprise's business needs and technological trends to determine the functional requirements and technical architecture of the digital platform.
2）Platform architecture design
o Planning to Implementation: Combat Scenario + DWS + Atomic Service Bazaar
o Objective design: Define the combat scenario> identify the capability requirements of atomic services (existing + new), > create or optimize atomic services, > orchestrate atomic services according to scenarios
o Implementation strategy in the transition stage: traditional mode represented by the stock system > card encapsulation + complete atomic service-oriented construction > card encapsulation + DWS unified platform (card specification & service specification&Service Bazaar).
3）Modular architecture and X-One super application: Combined with the modular design principle of agile architecture, a flexible and scalable digital platform architecture is designed to create a super application such as X-One, an integrated combat platform based on business-level agile (Biz-Agile®), which perfectly integrates business activity flow and information flow, realizes the transformation of real-time operation mode, and supports the digital transformation of various businesses of enterprises.
4）Comprehensive Atomic Design for Services:
Figure 5: Atomic Service Definition
Figure 6: Atomic Services Design Principles
Estimation-formula Agile Architecture (E-AA) helps enterprises achieve their digital transformation goals at all levels through the high-level design of digital transformation solutions and agile evolutionary design mechanisms. These programs not only cover the comprehensive transformation of business management, product services, organizational capabilities, culture and technology platforms, but also ensure that the transformation process is scientific, flexible and efficient.
3.3 Construction and continuous improvement of digital system
3.3.1 Digital system construction and Transformation management
The construction of digital system is a process of continuous improvement, which requires effective Transformation management to ensure the smooth progress of change. Through the Estimation-formula thinking of E-AA, organizations can develop a comprehensive Transformation management strategy to ensure that every stage of digital transformation proceeds smoothly. Agile architecture provides a flexible framework for continuous optimization and improvement along the way.
1）System construction
o Global coverage: Based on the idea of Biz-Agile®, build a comprehensive, efficient, flexible, forward-looking, and sustainable digital system (Note: For related content, please refer to the special article "Biz-Agile is the Future of Enterprise Operation" by Huahui Vision), covering business models, business management, organizational capabilities, products and services, IT systems and corporate culture to ensure the overall digital transformation of the enterprise.
o Standardization and regularization: Through Estimation-formula thinking, the best practices of peers and cross-border leading enterprises are introduced, and the experience and wisdom of experts in various fields within the enterprise are gathered to promote the standardization, regularization, automation, intelligence and socialization of work processes and control mechanisms. Improve operational efficiency and management quality.
1）Identify key activities and deliveries along the process, regularize and automate expert experience in the industry and within the enterprise, and release experts from activities and deliveries, while greatly improving the quality and efficiency of key activities and deliveries.
2）Identify the control requirements along the process, regularize and automate the control requirements, and transform the control personnel from executors to expert ability services, so as to improve the level and quality of management and control, and do a good job in professional empowerment and support for the business. Embed the management and control mechanism in the service, integrate the management and control work into the daily service process, realize the management and control as a service, and improve the real-time and effectiveness of the control.
3）Identify all activities and deliveries that can be standardized along the process, automate standardized activities and deliveries, release operators from daily standardized activities and deliveries, greatly improve the execution quality and efficiency of daily standardized activities and deliveries, and empower operators to transform their capabilities to high-value work.
4）Analyze and design non-standardized and rule-based business scenarios along the process, and adopt digital technology empowerment, such as AI-assisted recruitment, to improve the operational efficiency and quality of combat scenarios.
2）Transformation management
o Transformation planning: Combining benchmarking Estimation-formula and trend Estimation-formula methods, develop a detailed transformation plan that clearly defines the objectives, pathways, and key milestones of the transformation, ensuring an orderly progression of the transformation process.
o Risk management: Establish a change risk management mechanism, identify potential risks and formulate countermeasures to ensure the safety and controllability of the change process.
3）Continuous improvement
o Feedback and optimization: Establish a feedback mechanism, regularly evaluate the implementation effect of digital system construction and Transformation management, collect feedback from employees and management at all levels, and adjust and optimize the transformation solution in a timely manner.
o Continuous innovation: Through the continuous innovation mechanism of the agile architecture, employees and teams are encouraged to continuously put forward improvement suggestions and innovative solutions to promote the continuous development and progress of the enterprise.
3.3.2 Upgrade or reshape of digital products/services
The upgrading or reshaping of digital products and services is an important part of the digital transformation of enterprises. Through the Estimation-formula thinking and agile architecture of E-AA, enterprises can effectively conduct market demand analysis, innovative design, and rapid iteration to ensure the competitiveness and adaptability of products and services in the market.
1) Demand insights
o Benchmarking Estimation-formula: Analyze the success stories of global leaders within and across industries to distill their core strengths and key success factors. Combine the existing resources and development capabilities of the enterprise to identify opportunities to upgrade or reinvent products and services. For example, using the application of advanced artificial general intelligence (AGI) technology in the market to find potential directions to improve products and services.
o Trend Estimation-formula: According to the development trend of the industry and the evolution path of digital technology, the key elements of management innovation and technological innovation are extracted. Pay attention to the development of cutting-edge technologies such as AGI, predict their impact on market demand and technological development, and guide enterprises to formulate future product and service strategies.
2) R&D and innovation
o Innovative design capability: Competitive new products and services are developed by using the innovative design principles of agile architecture and the operation mechanism of the integrated combat system of business-technology integration. Agile architecture supports modular and loosely coupled designs, allowing companies to quickly experiment and iterate on different innovations.
o Integration of business-technology: By closely combining business needs and technological innovation, an integrated combat system is built to ensure the scientificity and practicability of product and service design. Combined with AGI technology, develop intelligent and automated products and services to enhance market competitiveness and user experience.
3) Product iteration
o Agile development methodology: Adopt agile development methods and iterate quickly. Agile methodologies emphasize small steps, continuous delivery, and feedback loops to ensure that businesses can respond quickly to market changes and customer feedback. Through short-term iterations, we can quickly release upgraded versions of products and services to meet the needs of the market and customers in a timely manner.
o Continuous Improvement: Establish a rapid feedback mechanism to continuously optimize products and services through user feedback and market data. Agile architecture enables rapid adaptation and optimization to ensure continuous improvement and high-quality delivery of products and services. For example, AGI technology is used to realize the intelligent analysis and optimization of products and services, and improve customer satisfaction and market competitiveness.
4）Implementation & Evaluation
o Phased implementation: Formulate a phased implementation strategy for product and service upgrades or remodeling to ensure that the goals of each stage are clear and the progress is controllable. Through phased implementation, the comprehensive upgrade and reinvention of products and services will be gradually realized.
o Marketing: Design an effective marketing plan to ensure that new products and services can quickly occupy the market and gain user acceptance. Enhance the market influence and user acceptance of new products and services through precise marketing strategies.
o Performance monitoring: Establish a comprehensive performance monitoring system to evaluate the market performance and user satisfaction of products and services, identify problems and take improvement measures in a timely manner. Through data analysis and user feedback, we continuously optimize the design and functionality of products and services.
o Iterative optimization: Continuously optimize products and services based on market feedback and performance data to ensure their competitiveness and user value in the market. Through continuous iteration and optimization, we maintain the advancement and adaptability of products and services to meet the dynamic needs of the market and customers.
Through the above steps, enterprises can make full use of Estimation-formula thinking and agile architecture under the guidance of E-AA to quickly respond to market demand and technology trends, continuously upgrade or reshape products and services, and improve market competitiveness and user satisfaction.
3.3.3 Construction and operation of digital platform
The construction and operation of digital platforms is the foundation of digital transformation. Through the Estimation-formula thinking of E-AA, companies can analyze industry best practices and technology trends to develop their own digital platform strategy. Such strategic thinking can not only ensure the technical advantages of the platform, but also promote enterprises to move towards the goal of building a digital platform for the enterprise-level or domain-level integrated combat platform X-One and the intelligent real-time command system.
By adopting the integrated combat system advocated by Biz-Agile®, enterprises can create super applications such as X-One, which perfectly integrate the flow of business activities with the flow of information, and realize the transformation of real-time operation mode. This platform not only provides enterprises with a digital workspace, but also puts data intelligence at the core, and realizes the perception of the operation status of the entire organization and the unified scheduling of resources through the panoramic intelligent real-time command system, thereby comprehensively improving the operational efficiency and business value cycle speed of the enterprise.
Agile architecture plays an important role in this process, making the platform highly flexible and adaptable to respond quickly to business needs and technological changes. Therefore, in the construction of the digital platform, we emphasize the following key steps:
o Demand analysis: Determine the functional and performance requirements of platform construction based on the current situation and future development needs of the enterprise. This includes a comprehensive understanding of enterprise-level or domain-level integrated combat platforms and intelligent real-time command systems to ensure that digital platforms meet real business needs.
o Technology selection: Select the right technology and tools to ensure the scalability and compatibility of the platform. This means that the platform needs to integrate multiple technologies, including artificial intelligence, big data analytics, cloud computing, etc., to build a powerful intelligent real-time command system.
o Platform architecture design: Adopt agile architecture principles to design a loosely coupled and modular platform architecture to support rapid iteration and continuous improvement. This architecture not only improves the flexibility of the platform, but also reduces development and maintenance costs, and accelerates the launch and iteration of the platform.
o Operation management: Establish an efficient operation management mechanism to ensure the stable operation and continuous optimization of the platform. This includes the establishment of monitoring systems, troubleshooting and handling, performance optimization, etc., to ensure that the platform can meet the needs of users at any time, and continuously improve efficiency and performance in continuous optimization.
3.3.4 Digital organization and culture construction and improvement
The construction and improvement of digital organization and culture is a prerequisite for achieving comprehensive digitalization, and it is also a prerequisite for enterprises to achieve Biz-Agile®.The key support of the strategy provides an important guarantee for enterprises to build an integrated combat platform driven by highly collaborative and data intelligence. With the help of E-AA's Estimation-formula thinking, companies can build an organizational structure and corporate culture that adapts to digital needs by incorporating industry best practices and future trends. In this process, the application of agile architecture is crucial, not only to support the agility of the organization, but also to promote the continuous improvement of the culture, laying a solid foundation for digital transformation.
Based on the core concept of the Biz-Agile® system, Biz-Agile® adopts an integrated combat formation that integrates industry and technology, is lean and highly autonomous, and takes liquid as the organizational form, breaks through the traditional organizational boundaries, and realizes the dual-driven development of innovation and efficiency.
The key steps cover the following:
o Organizational Optimization: Adopt the principles of agile architecture to build a flat and flexible organizational structure to enhance team collaboration and innovation. This means breaking down the traditional hierarchical structure and building cross-functional, cross-departmental agile teams (i.e., integrated teams that integrate industry and technology) to make decisions faster, more flexible, and more responsive to market changes.
o Culture: Combine comprehensive Estimation-formula thinking to shape a corporate culture with digitalization as the core, and encourage innovation and continuous learning. This requires creating a positive work atmosphere that encourages employees to come up with new ideas, try new approaches, and accept failure and learn from it. The role model of leaders is crucial, and they should be active agents and role models for digital transformation.
o Capacity building: Improve the digital capabilities of your employees through training and development programs to ensure that your organization has the skills and knowledge to meet the challenges of digitalization. This includes training in digital tools and techniques, as well as the development of digital mindsets and methods. Through continuous learning and development, employees are better able to adapt to the rapidly changing digital environment and contribute to the digital transformation of the organization.
The combination of these key steps will help companies build a digital organization and culture that is resilient and innovative, laying a solid foundation for full digitalization.
PART IV the advantages of Estimation-formula Agile Architecture
4.1 Scientific and structured decision support
o Evidence-based reasoning: Estimation-formula Agile Architecture relies on data and evidence to support decision-making, ensuring that every step is scientifically validated. This method reduces the uncertainty of decision-making and improves the accuracy and reliability of decision-making.
o Multi-dimensional transformation strategy: The Estimation-formula Agile Architecture adopts a multi-dimensional transformation strategy, comprehensively considering various factors such as technology, business, market and user needs to ensure the comprehensiveness and effectiveness of the transformation process.
4.2 Fast, low-cost, low-risk, high-quality transformation
o Agile agility to respond to market changes: Estimation-formula Agile Architectures are highly flexible and able to respond quickly to market changes and technological advancements to maintain a competitive advantage. It allows businesses to adjust their strategies and action plans in a rapidly changing market environment.
o Minimized risk and cost: Through a phased, small-step transformation approach, the Estimation-formula Agile Architecture effectively disperses and controls risk, reducing the overall cost of transformation while ensuring high-quality project delivery.
4.3 Integrated and sustainable
o Continuous Improvement and Adaptability: A Estimation-formula Agile Architecture emphasizes continuous improvement and adaptability, enabling organizations to improve operational efficiency and business performance through continuous feedback and optimization, ensuring long-term sustainability.
o Achieving long-term strategic goals: Through scientific planning and implementation, the Estimation-formula Agile Architecture helps enterprises achieve long-term strategic goals and ensure stable and continuous progress in the process of digital transformation.
These advantages of Estimation-formula Agile Architecture make it a powerful tool for enterprise digital transformation. It not only improves the scientific and structured degree of decision-making, but also helps enterprises maintain competitiveness in the rapidly changing market environment through flexible, efficient and low-cost transformation methods, and ultimately achieves the long-term strategic goal of comprehensive and sustainable development.
PART V Analysis of successful cases
5.1 Applications within the industry
Case 1: The successful transformation of an industry-leading company
An industry leader achieved a comprehensive digital transformation by adopting a Estimation-formula Agile Architecture.
o In the process of transformation, the company has formulated a multi-dimensional transformation strategy through scientific and structured decision support.
o Based on the Biz-Agile®, an enterprise-level digital management system is built.
o Using an evidence-based reasoning approach, they successfully integrated various business and technical requirements to form an all-in-one combat platform, X-One.
After the transformation, enterprises can flexibly respond to market changes, and achieve fast, low-cost, low-risk, and high-quality transformation.
Case 2: A model of cross-industry application
A company applied a Estimation-formula Agile Architecture across multiple industries to achieve a successful transformation across industries.
o Based on the digital organization model of Biz-Agile®, a flexible organizational structure, resource trading market and trading mechanism, and all-round team building are constructed, that is, a domain-level integrated combat team integrating business-technology.
o Using the atomic design scheme, the company has built an enterprise-level integrated business platform, that is, an integrated combat platform, which can meet the diverse needs of different industries at the same time.
They have leveraged the continuous improvement and adaptability of agile architectures to maintain strong competitiveness and innovation in an ever-changing market environment.
5.2 Practical results
o Improved competitiveness After adopting a Estimation-formula Agile Architecture, enterprises have significantly improved their competitiveness in the market. By responding quickly to market demands and technological changes, businesses are able to launch products and services that are more in line with customer needs. At the same time, scientific decision-making support and flexible strategic adjustment enable enterprises to always maintain a leading position in the competition.
o Improved Operational Efficiency The application of the Estimation-formula Agile Architecture has led to significant improvements in the operational efficiency of the enterprise. Communication and collaboration within the company are more efficient through flat, flexible organizational structures and generalist team building. The introduction of resource optimization and buy-in mechanism further simplifies the allocation and utilization of internal resources, reduces operating costs, and improves overall operational efficiency.
o Enhanced Market Adaptability Enterprises have significantly enhanced their market adaptability through the implementation of Estimation-formula Agile Architectures. In a rapidly changing market environment, companies are able to flexibly adjust their strategies and business directions to respond to market demand and customer feedback in a timely manner. This flexibility not only helps businesses stay competitive in the market, but also promotes continued growth and development of the business.
These success stories demonstrate the great potential and practical effects of Estimation-formula Agile Architecture in digital transformation. Through scientific and structured decision support, rapid, low-cost, low-risk, high-quality transformation, and the realization of comprehensive and sustainable long-term strategic goals, the Estimation-formula Agile Architecture helps enterprises achieve remarkable results in digital transformation.
PART VI Conclusions
6.1 Summarize the importance of E-AA
E-AA plays a vital role in digital transformation. As an evidence- and data-based reasoning method, E-AA not only provides scientific and structured decision-making support for enterprises, but also helps enterprises formulate multi-dimensional transformation strategies to ensure the comprehensiveness and effectiveness of the transformation process. By responding flexibly to market changes and minimizing risks and costs, E-AA enables companies to efficiently implement digital transformation, improve competitiveness and operational efficiency, and adapt to changing market conditions.
6.2 Future outlook
1）E-AA development trends
With the continuous advancement of technology and the continuous change of the market environment, the development trend of E-AA is also constantly evolving. In the future, E-AA will further integrate artificial intelligence, big data analysis, and machine learning technologies to improve its prediction and decision-making capabilities. Enterprises will increasingly rely on E-AA for real-time data analysis and intelligent decision-making to address complex business challenges and rapidly changing market demands.
2）Enlightenment and suggestions for the future development of enterprises
o Continued investment in data and technology: To take full advantage of the benefits of E-AA, organizations need to continue to invest in data infrastructure and advanced technologies. By enhancing data collection, storage, and analysis capabilities, businesses can gain more accurate market insights and decision support.
o Developing digital talent: Businesses need to develop talent with a digital mindset and skills. Enhance your employees' digital capabilities through training and development programs to ensure they can effectively leverage E-AA for business decision-making and innovation.
o Establish a flexible organizational structure: A flexible organizational structure is the key to the effective application of E-AA. Businesses should build flat, cross-functional teams to enhance collaboration and innovation to respond quickly to market changes.
o Emphasizing continuous improvement and adaptability: Enterprises should establish a mechanism for continuous improvement to improve operational efficiency and business performance through continuous feedback and optimization, and ensure that they maintain a competitive advantage in the process of digital transformation.
By adhering to these strategies, enterprises can make great strides in their digital transformation, leverage the power of E-AA to achieve continuous innovation and growth, and position themselves in a competitive position in the future market.
Note: This article only provides a major explanation of the Estimation-formula Agile Architecture methodology, and the detailed E-AA technical documents can be found in the subsequent "Estimation-formula Agile Architecture (E-AA) White Paper".
PART VII Appendices
7.1 Explanation of terms
o Biz-Agile®: A future-oriented business management system created by Huahui Celedog Research Institute.
o Integrated Combat Team: A new type of organizational structure that breaks the traditional departmental boundaries and forms a cross-functional, business-technology integrated end-to-end business combat team that aligns with business objectives.
o AGI (Artificial General Intelligence): refers to an artificial intelligence system capable of performing any intelligent task, with a high level of autonomy and creativity.
o X-ONE: An enterprise-level integrated combat system platform developed by Huahui International, which is used to realize all-digital operation and decision-making and command within the enterprise.
7.2 References
o Huahui International official website. (2024). Biz-Agile® is the future of business operations. HuaHui Viewpoint.
o Huahui International official website. (2024). Digital Organizational Form: Integrated Combat Team of Business-Technology Integration. HuaHui Viewpoint.
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