Digital identity management is often used to handle fraud detection and hence reduce identity thefts. However, using digital identity management presents additional challenges in terms of privacy of the identity owner meanwhile managing the security of the verification. In this paper, drawing on adaptive enterprise architecture (EA) with an ecosystem approach to digital identity, we describe an identity ecosystem (IdE) architecture to handle identity management (IdM) while safeguarding security and privacy. This study is a part of the larger action design research project with our industry partner DZ. We have used adaptive EA as a theoretical lens to define a privacy aware adaptive IdM with a view to improve the Id operations and delivery of services in the public and private sector. The value of the anticipated architecture is in its generic yet comprehensive structure, component orientation and layered approach which aim to enable the contemporary IdM.