An Introduction into the design of business using business architecture

| AN INTRODUCT ION INTO THE DE S IGN OF BUS INE SS US ING BUS INE SS AR CHITE CTURE | E NTE RPR ISE ARCHITE CTS © 201 31

FINAL v1.0.2 –SEPTEMBER , 2013

PRESENTED BY:

Craig Martin -Chief Architect,

Enterprise Architects

An introduction into the design of

business using business architecture

DISCOVERING BUSINESS

ARCHITECTURE


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Utility

(Foundation)

Innovate

Build Advantages

Assemble

Prolong

Advantages

Mix

Reduce

Disadvantages

What's business about?D

IFF

ER

EN

TIA

TIO

NThe Building Block Analogy


The goal of a good business

model is to address the

advantages and disadvantages

in a coherent manner

The Environment

The Business Model

Market

Model

Products

and Service

Model

Operating

Model

Markets

Industries

Customers

Market Segment

Channels

Customer

Relationships

Value Proposition

Offering: Products /

Services

Capabilities

Processes / Value

Chains

Business Services

Functions

Data

Applications

Technology


Finding the Right Business Mixes This entails having a clear understanding of the activities required to move from the mystery

space to the algorithm space

Unresolved

Business

Challenges

Rules of thumb

Robust,

repeatable and

replicable

formulas &

processes

Ultimately all innovative

algorithms will become utility.

* From Roger Martin (2009) The Design of Business


D

INTUITIVE

THINKING

ANALYTICAL

THINKING

RULES OF

THUMB

The speed of business change requires a discipline that is able to use

the heuristics effectively in order to achieve the desired outcomes

The Environment

The Business Model

Market

Model

Products and

Service

Model

Operating

Model

Markets

Industries

Customers

Market Segment

Channels

Customer

Relationships

Value Proposition


Services

Capabilities

Processes / Value

Chains

Business Services

Functions

Data

Applications

Technology

Robust, repeatable and replicable processes

Unresolved Business Challenges

Mystery Mystery Mystery

Innovation

Heuristics

Assembly

Heuristics

Mixing

Heuristics

Utility

(Foundation)


The Focus is Moving UpwardsWhat we are finding is that business challenges are moving further up the knowledge funnel. The lower

levels are becoming commoditised rapidly and the challenge is for those who can find value in mixing the

chunks further up the knowledge funnel

* From Roger Martin (2009) The Design of Business

› Process Improvement

› BPM

› Automation. Modules. Components

› Value Stream and Cross Functional

Capabilities

› Capability Based Planning

› Optimal Mixes of Resources

› Business Model Innovation

› Business Model Disruption

› M&A

PROCEDURAL

INSTRUCTION SETS

(Fine grained & atomic

problems)

COMPLEX AND DYNAMIC

(Coarse Grained Composite

problems)

Agility

favours those

who find the

best

heuristics


What we have found in large accountsAn ownership gap for business architecture exists - Lines of responsibility around cohesion and business

architecture, are often unclear

Fu

nct

ion

al

Cap

ab

ilit

ies

Cro

ss-F

un

ctio

nal

Cap

ab

ilit

ies

En

terp

rise

Co

here

ncy

Cap

ab

ilit

ies Strategic

Architecture

Mandate –

Business

Ownership

IT Architecture

Mandate –

IT Ownership

Business

Architecture

Mandate

Undefined

Cohesion Mandate

Undefined - Enterprise Planning Ownership

THE HEURISTICS

CHALLENGES


The Focus is moving Moving unresolved business problems into the utility space is a journey across the complexity space that is supported by both the business

architects and business analysts. Business architects therefore have a career path moving into the unresolved business problems space

Software

Automation

Projects

Funds

investment

Widget

assembly

Credit card

approval

Inventory

Management

Outsourcing

Projects

Major re-

design

projects

Six-sigma based

process

improvement

analysts

New Product

design

Deals with other

companies

International

Delivery

On-line

purchasing

ERP based

process

improvement

Complex Processes, not

part of company’s core

competency: Outsource

Complex, dynamic

processes of high value:

undertake business

process improvement

efforts that focus on

people

Straightforward, static

commodity processes:

use automated ERP-

Type applications and /

or outsource

Straightforward, static,

and valuable: automate

to gain efficiency

HIGH

HIG

H

LOW

LO

W

Must be done but adds little value to

product or services

Very important to success, high value

added to products and services

STRATEGIC IMPORTANCE

PR

OC

ES

S C

OM

PLEX

ITY

AN

D D

YN

AM

ICS

Complex negotiation, design,

or decision process

Many business rules; expertise

involved

Some business rules

Procedure or simple

algorithm

Organisation

Heuristics

Principal

Business

Architects

Business Analysts

Strategic

Business

Architect

Senior Business

Analysts

*Adapted from “Business Process Change” by Paul Harmon

The Knowledge Funnel

Operates predominantly

on this side of the graph

Traversing this side of

the graph is the job of

the business architect


Business

Architecture

as a subset of

Enterprise

ArchitectureSTRATEGY

BUSINESS

PROCESSES

BUSINESS

CAPABILITIESDATA

INFORMATION

ARCHITECTURE

Metadata Management

Knowledge Management

Integrity Management

Usage

TECHNOLOGY ARCHITECTURE

Applications and Services

Infrastructure

Integration

Client

BUSINESS

ARCHITECTURE

Business Drivers

Business Delivery

Business Boundaries

Security, risk and SOA are all styles of

enterprise architecture.

They require the same rigour and discipline

of architecture to drive out their respective

outcomes.


Valu

e

Mandate

E

AB

C

D

Responsibility depends upon the mandate from businessValue increases when mandate increases.

Business Architecture is seen

as a positive progression

away from IT

*Adapted from Ruth Malan, Dana Bredemeyer

• Maximise Product Profitability

• Maximise Market Share

• Maximise Customer Lifetime Value

Improve project

performance

Improve enterprise wide

program and portfolio

performance

Improve Business Performance

Improve Market

Performance

(Shareholder Value)

Improve Product/Service

Performance


Top Management Challenges

37%

34%

29%

22%

Customer

Loyalty

Increasing

flexibility & speed

Reducing

Costs

Increasing

Innovation

PERCENTAGE OF CEOS REPORTINGCOMMON DRIVERS FOR INCREASING BUSINESS FLEXIBILITY

1. Customer demand for quick turnaround and increased

need for customisation

2. Shorter decision cycles

3. Increased need for product innovation

4. Globalisation of corporate footprint

Current Business

Architecture Pressures

Aspirational Business

Architecture Pressures

*Executive Council Survey


Our Focus for “Discovering Business Architecture” The utility of business architecture needs to be addressed before we can begin to address some of the composite

chunks up at the business model innovation and disruption level

Fu

nct

ion

al

Cap

ab

ilit

ies

Cro

ss-F

un

ctio

nal

Cap

ab

ilit

ies

En

terp

rise

Co

here

ncy

Cap

ab

ilit

ies

Strategic

Architecture

Mandate –

Business

Ownership

IT Architecture

Mandate –

IT Ownership

Business

Architecture

Mandate

Undefined

Cohesion Mandate



Governance Model

The EA Business Architecture Framework

Presenting Business Architecture

Outcomes (WHY)

Executing Business Architecture

(HOW)

Organising Business Architecture

Content (WHAT)

ENGAGEMENT

MODEL

BUSINESS

ARCHITECTURE

SERVICES

CATALOGUE

BUSINESS

ARCHITECTURE

CAPABILITY

MODEL

BUSINESS

CHANGE

MODEL

The EA

framework

for business

architecture

Business Architecture Skill and Competency


IDENTIFY GOALS

& OBJECTIVES

UNDERSTAND

BUSINESS

MOTIVATION

PROTOTYPE

BUSINESS MODEL

STRATEGIES

DEFINE

CAPABILITIES

ASSESS

CAPABILITIES

MATURITY

DEFINE FUTURE

STATE CAPABILITIES

MATURITY

ASSESS CURRENT

PROJECT ACTIVITYPLAN TRANSITION

DEFINE

VALUE CHAIN

COMPONENTS

1 2 3 4 5 6 7 8 9

Identify value chain

segments, channels,

offerings, clients

Assign KPIs to value

chain components

Rank importance of

models to achievement

of objectives

Use strategy ranking to

identify required

changes in values of

KPIs to achieve target

values

Identify capabilities to

enable achievement of

objectives

Group capabilities into

value chain segments

Decompose high level

KPIs to match the

capabilities

Assign KPIs to

capabilities

Define capabilities

components

Research best practices

and competitors for

each capability

Assess current maturity

of organization

capabilities

Obtain current values

for KPIs

Set target values for

KPIs

Identify target maturity

level for capabilities to

achieve target KPIs

Identify dependencies

between capabilities

based on their

components

Identify changes in the

capabilities

components to achieve

the target maturity

level

Define future state

capabilities maturity

levels

Catalogue required

changes to the

capability components

Catalogue required

changes in the value

chain structure & value

chain components

Catalogue in-

flight/planned

transformation

initiatives

Map in-flight/planned

initiatives to required

transformations

List transformations

required to address the

remaining gaps

Prioritize the full list of

transformation

initiatives

Analysis of business

dependencies

Sequence

transformation

initiatives

Alignment of

transformational plan

with other organization

programs

Assess future values of

high level KPIs

Identify strategic

themes

Identify drivers and

environmental factors

Decompose existing

strategies and refine if

required

Document SMART

Objectives

Map KPIs to strategies

Obtain current values

for decomposed KPIs

Obtain info on goals &

objectives (derive if

required)

Rank relative

importance of

objectives

Assign high level KPIs

to objectives

Gather current values

for the high level KPIs

Obtain target values for

the high level KPIs

WO

RK

STR

EA

MS

AC

TIV

ITIE

S

Develop prototype

strategic business

models

HOW: Executing Business ArchitectureA Business Architecture Method

PROBLEM DEFINITION

BUSINESS SCENARIOS

UTIL

ITY

OU

TP

UTS MEANS TO END

BUSINESS

MOTIVATION MODEL

BUSINESS MODEL

CANVAS

A VALUE SYSTEM

MODEL

A VALUE CHAIN

CAPABILITY ANCHOR

MODEL

STRATEGIC OVERLAY

CAPABILITY ANCHOR

MODEL WITH CURRENT

MATURITY OVERLAY

CAPABILITY ANCHOR

MODEL WITH TARGET

MATURITY OVERLAY

CAPABILITY ANCHOR

MODEL WITH PROJECT

OVERLAY

MATURITY, IMPACT

AND IN-FLIGHT

MATRIX AND DEVELOP

THE QUADRANT

GRAPHS

CAPABILITY ANCHOR

MODEL WITH HOTSPOT

OVERLAY

SEQUENCING MATRIX

TRANSITION PLAN

SUMMARISED

ROADMAP VIEW

Discovering Business Architecture Course Outputs


Developing The Business Architecture

Defining a business model requires a number of iterations from macro to micro

OPERATIONAL

CAPABILITY

BUSINESS

STRATEGY• The strategy layer articulates the means to

achieve the contextual layer

• The business layer translates the strategic vision into how value is

delivered to the client along various dimensions, including the value

chain, products, and channel.

• The capability layer expands the conceptual model into detailed

business capabilities and describes their inter-relationships and

target maturity levels.

• The operational layer decomposes the capabilities into

specific processes, policies/procedures, organisations, roles

and technologies required to enable the business

capabilities.

MACRO

MOTIVATION • The motivation layer articulates the direction, vision, goals and drivers.

Relates to the context point identified in the previous module

OPERATIONS

STRATEGY

BUSINESS

STRATEGY

MICRO


How is a business representedA business model is expressed in a variety of views depending upon level of abstraction

The Business model is described in terms of business motivation

and outcomes and is often represented in the form of a business

motivation model

Various business models produce different outcomes for

different scenarios. Developing scenarios for business models

is done using the business model canvas

At the conceptual level you will develop the detail of the

various strategic business models using the EA Business

Reference Model with corresponding value chain

models

The capability layer expands the conceptual

business model into detailed business capabilities

and describes their inter-relationships and target

maturity levels. It is often represented in the

business anchor or capability model

The operational layer addresses all the

resources that are within the capabilities

and is found in the more traditional process

and functional decomposition models

THE BUSINESS

MOTIVATION MODEL

THE BUSINESS

MODEL CANVAS

THE VALUE SYSTEM

MODEL

THE BUSINESS

CAPABILITY ANCHOR

MODEL

NOT

ADDRESSEDOPERATIONAL

CAPABILITY

BUSINESS

STRATEGY

MOTIVATION


What is the Business Motivation Model?The language of strategic planning is often inconsistent – The BMM provides a Consistent Language at

the motivation level

Mission

Strategies

Tactics

Vision

Goals

Objectives

A statement describing the aims,

values and overall plan of an

organisation.

e.g. “To be the leading creator and

protector of wealth.”

A Course of Action that channels

efforts towards objectives

e.g. “Call first-time customers

personally”

The strategic plan.

e.g. “Defend our current customer

base to reduce churn and increase

repeat business”

A concise statement of a desired

change.

e.g. “To be the leading provider of

wealth management services in our

major target markets

The outcome of projects improving

capabilities, process, assets, etc.

e.g. “Develop an operational customer

call centre by June 30, 2015.

What the plan will achieve.

e.g. “Improve customer satisfaction

(over the next five years)”

*Adapted from business motivation model - OMG

“The BMM is a technique in which one determines an ultimate goal and determines

the best strategy for attaining the goal in the current situation”


The Business Motivation Model TemplateThere are a variety of ways to depict the BMM. This version we have found to be the most

effective

CUSTOMERS

MISSION VISION

STRATEGIES

LEVERS

INFLU

EN

CER

S

OBJECTIVES

GOALS

OBJECTIVES

CHANNELS

DRIVERS

GOALS

EA’s

standard

structure

for a BMM


The Business Motivation Model ExampleThis is an example completed version of a business motivation model

EA’s

standard

structure

for a BMM


The Business Motivation Model ExampleThe motivation model can now also be used as an anchor model to overlay a variety of key

messages. More on this in a later module

EA’s

standard

structure

for a BMM


The Business Motivation Model is a Business Tool not

an Architecture ToolThe Motivation Model resonates well with business sponsors

› Business Stakeholders often find traditional business

architecture models difficult to consume

› We found that the motivation model resonates well with

business stakeholders

› Helps move away from pain point architecture to focus on

outcomes

› The challenge is that when you show this to the architect

its scoffed at – yet when you show it to the business

stakeholder their response is – this is Gold – this is what I

have been looking for.

The Environment

The Business Model

Market Model

Products and

Service Model

Operating

Model

Markets

Industries

Customers

Market Segment

Channels

Customer

Relationships

Value Proposition


Services

Capabilities

Processes / Value

Chains

Business Services

Functions

Data

Applications

Technology


Developing Strategic Prototypes“Prototypes are conversations you have with your ideas” – Tom Wujec - Designer

OPERATIONAL

CAPABILITY

BUSINESS

STRATEGY

MOTIVATIONThe Business model is described in terms of business motivation


motivation model







models










THE BUSINESS

MOTIVATION MODEL

THE BUSINESS

MODEL CANVAS

THE VALUE SYSTEM

MODEL

THE BUSINESS

CAPABILITY ANCHOR

MODEL

NOT

ADDRESSED


Business Models as

a Unifying ConceptBusiness Models are a unifying concept

for business innovation, strategy and

architecture

*Adapted from Boeing

CUSTOMERS

FINANCIAL VIABILITY

VALUE PROPOSITION

INFRASTRUCTURE

Business Model Innovation

“What's possible?”

Business Strategy

“What will we do?”

Business Architecture

“What's the Blueprint?”

Business Model

“What does it look like”


What have these brands got to do with disruption?

What is disruption?


Business Model MaturityMeasuring the Maturity of a full business model is a complex task. The Key is to look for

certain heuristics to use as a litmus test

MA

TU

RIT

Y

The Environment

The Business Model

Market

Model

Products and

Service

Model

Operating

Model

Markets

Industries

Customers

Market Segment

Channels

Customer

Relationships

Value Proposition


Services

Capabilities

Processes / Value

Chains

Business Services

Functions

Data

Applications

Technology

*Rita Gunther McGrath


The Strategic Business Model Layer

› The Business Model canvas is an ideal tool to describe,

analyse, design and prototype strategic business

models at a high level

› The canvas allows for a “front office” and “back office”

style approach to looking at a business model

› It was designed to create a business model concept

that everybody understands: one that facilitates

description and discussion.

› The Canvas is described through nine basic building

blocks that show the logic of how a company intends

to make money.

› The nine blocks cover the four main areas of a

business:

» customers,

» offer,

» infrastructure,

» and financial viability.

The Business Model Canvas

CustomersInfrastructure Offer

Financial Viability


CS R$

VP

The Business Model CanvasThe path of the analyst and architect is normally traversed left to right

LEFT CANVAS

efficiency

RIGHT CANVAS

value

KAKP

KR

CR CS

CH

LEFT BRAIN

logic

RIGHT BRAIN

emotion

Back Office

support

Front Office

valueCAREER PATH

At this level is the value is achieved by

being able to mix the infrastructure to

achieve the value propositions

At this level is the value is achieved by

being able to provide the right mix of

products and services to the customer

that gives that customer value

Market OptionsOperating Options P&S Options


Mandate – Architecture:

Improve Market Performance The coarse grained problems that the canvas deals with are normally only handled by a

business architecture practice that has the high visibility mandate

Strategic

Planning

Business

Architecture

Business

Planning

Portfolio and

Project

Management

Solution

Architecture

Solution

Development


Injecting Business Architecture into the Strategic Scenarios Will Improve the

Strategic Decisions as well as the execution of that strategy

Semi Integrated

Universal Bank

Product Specialist

Customer Owner

Infrastructure Provider

Mandate: Improve Market Performance



Improve Business Performance Rationalising the investment portfolio using business architecture is one of the main drivers

for the business architecture practice at this level

Strategic

Planning

Business

Planning

Business

Architecture

Portfolio and

Project

Management

Solution

Architecture

Solution

Development


Mandate: Improve Business PerformanceThis facilitates creating a single unified business model that helps build coherency

across the enterprise Strategic Themes

Capability 1

Capability 2

Strategic Themes

Capability 5

Capability 6

Strategic Themes

Capability 3

Capability 4



Improve Project and Portfolio PerformanceA more traditional mandate landscape is where business architecture is part of the PMO

method and scope

Strategic

Planning

Business

Planning

Portfolio and

Project

Management

Business

Architecture

Solution

Architecture

Solution

Development


Strategic Themes

Initiative 5

Initiative 6

Architecture as part of PMO ONLY

has limited value and affects

organisational coherency

Strategic Themes

Initiative 1

Initiative 2

Strategic Themes

Initiative 3

Initiative 4

Mandate: Improve Project and Portfolio

Performance


Developing the Value System ModelWithin the Market Improvement Space

The business layer

translates the

strategic canvas into

how value is

delivered to the

client along various

dimensions,

including the market

model, value chain,

products, and

channel.

OPERATIONAL

CAPABILITY

BUSINESS

STRATEGY

MOTIVATION


A Value System ExampleWithin the Market Improvement Space

Example of the value system for a safe society

SAFE SOCIETY VALUE

SYSTEM

Judicial System: Judgement -

Courts

Penal System: Punishment -

Jail

Education and Accountability

Government, Law and Policy

Setting

Enforcement System” Police


Network

Consumer

Device

The Value System - Key existing playersWithin the Market Improvement Space

You can also look for gaps in the market by gaining an understanding of where key players

and competitors are positioned across the entre value system

AccessBackbone

Network

Consumer Device

Content

Service

Provider

Network Provider

Content

Aggregator/

Packager

Digital

Content Provider

Packaging/

distribution

Content

gathering/

conversion

Network

services

Operation

services

Network

ResalePortalCommerceClearing

Rights

management

Johnnic

Telkom

Sentech

MIH

Digital

Content

provider

SABC

Johnnic

Infosat

MIH

SABC

Naspers Naspers

DSTV/MNet

MWeb

SABC

Telkom

Orbicomm/MTN Ananzi

ISDidata

Banks

Infosat

Banks

?BskyB / PrimediaBSkyB

DSTV/MNet


The Business Model TemplateWithin the Improve Business Performance SpaceThere are a variety of ways to depict the BAM. This version we have

found to be the most effective

Markets

Customers / Key Buyers

Market Segments

Value Propositions

Offerings, products and services

Core Capabilities

Core Processes

Industries

Channels

Core Resources

Market

Model

Products &

Services Model

Operating Model


Firm Value Chain

Developing the Value ChainWithin the Improve Business Performance Space

› Once you have obtained an understanding of the value system you can address the firm value system

› There are a variety of ways to document the firm value system

› It is a good habit to first document structural relationships at the business model level and then these can

be used as input into the value chain of the operating model

A Firms Value Chain is itself has a process in which it provides value to the products and

services as it delivers them to customers

Channel Value Chain Buyer Value ChainSupplier Value ChainsSupplier Value Chains

Supplier Value ChainsChannel Value Chain

Channel Value ChainBuyer Value Chain

Buyer Value Chain


The Canvas and the Value ChainWithin the Improve Business Performance SpaceIn most situations you can use the key activities from the canvas to help identify the value

activities in your value chain

The identifying of value activities

requires the isolation of activities that

are strategically distinct and

required for differentiation and

competitive advantage

The Key resources will help identify

the business entities that need to

move through the value chain


Summarising the Value ChainYou get what you measure – Logistics Example

REMOVED


Defining CapabilityAt this level the core value chain is expanded into the capability landscape

OPERATIONAL

CAPABILITY

BUSINESS

STRATEGY

MOTIVATIONThe Business model is described in terms of business motivation


motivation model







models










THE BUSINESS

MOTIVATION MODEL

THE BUSINESS

MODEL CANVAS

THE VALUE SYSTEM

MODEL

THE BUSINESS

CAPABILITY ANCHOR

MODEL

NOT

ADDRESSED


WHAT the Business Does – Functional

Capabilities

Fu

nct

ion

al

Cap

ab

ilit

ies

Cro

ss-F

un

ctio

nal

Cap

ab

ilit

ies

En

terp

rise

Co

here

ncy

Cap

ab

ilit

ies

Strategic

Architecture

Mandate –

Business

Ownership

IT Architecture

Mandate –

IT Ownership

Business

Architecture

Mandate

Undefined

Cohesion Mandate



Capability driven

› Capability driven architectures are designed to support the strategic objectives of an organisation

› Capabilities consist of people, process and technology

› To fully understand a capability the three components exists regardless of their maturity level

One of the techniques to drive out the correct mixes is through capability based

planning

Capability based

planning is one of

the tools that looks

at the best “mix” of

resources required

to develop this

cohesion

Mission

Strategies

Tactics

Vision

Goals

Objectives

Outcome

CAPABILITY

People

Process

Tools


The Business Anchor ModelThe Anchor Model is the “Map of the City”


The Business Anchor ModelAnd like a city map – the business anchor model can have many overlays. Each

communicating a different message on the same underlying structure


The Business Capability Anchor ModelThe Anchor model is an anchor to a variety of views. BizBok Aligned

*BizBokTM Sourced Views

ORGANISATION / CAPABILITY MAPPING

ACQUIRE LOANON-BOARD

APPLICATION

PROCESS FEE

PAYMENT

VALIDATE

APPLICATION

APPROVE

LOAN

ISSUE

SECOND

APPROVAL

ISSUE LOAN

Account Pipeline

Management

Customer

Information

Management

Account

Information

Management

Account

Payments

Management

Customer

Information

Management

Account

Information

Management

Account

Structuring

Account

Information

Management

Acceptance

Notification

Account

Information

Update

Docket, Case

File, Routing

Management

Account

Structuring

Acceptance

Notification

Docket, Case

File, Routing

Management

Account

Structuring

Acceptance

Notification

Docket, Case

File, Routing

Management

Acceptance

Notification

Docket, Case

File, Routing

Management

VALUE STREAM / CAPABILITY MAPPINGCAPABILITY / INITIATIVE MAPPING

Initiative improves

or creates new

capabilities

CAPABILITY / INFORMATION CONCEPT MAPPING

CUSTOMER

MANAGEMENT

• Customer Name

• Customer Number

• Customer Address

• Customer Phone

• Customer Email

• Customer Status

• Etc…

CAPABILITY / APPLICATION

ARCHITECURE MAPPING

STR

ATEG

IC

DIR

EC

TIO

N

SETTIN

G

Business Planning Marketing Partner Management

Capital Management Policy ManagementInternational Relations

Management

CO

RE: C

US

TO

MER

FA

CIN

G

Account Management Product Management Channel Management

Customer ManagementAgent Representative

Management

SU

PP

OR

TIN

G Financial Management Employee Management Procurement

Information Technology

MngtTraining Operations Management

CAPABILITY

ACCOUNT MANAGEMENT

Account

Pipeline

Management

Account Billing

& Payments

Management

Account

Structuring

Account File

Management

Account

Maintenance

Account

Analytics

Account

Notification

Account

Information

Management

CAPABILITY / STRATEGY & BUSINESS MODEL MAPPING

CAPABILITY / COST & PERFORMANCE

ANALYSIS VIEW

PRODUCT

MANAGEMENT

• $ Analysis

• Impact Analysis

• Heat Mapping


Determine the People, Process & Tools Looking at people, process and tools of the capability model helps you understand capability better an

also is easier for business to understand

SIMPLE SETUP

Establish mobile sales team

to service and set up

customers on site

Simplify data input and

validation required for setup

Provide Setup facilities

across all channels with a

consistent user experience

Enable customers to transact

immediately

Provide customers with

single sign on access to all

services provided by

Australia Post

H L A

H L A

H L A

H L

H L A

BUSINESS SERVICE

GOALSCAPABILITY UPLIFTS ANTICIPATED THROUGH

INFLIGHT PROJECTS

LODGEMENT BUSINESS

OBJECTIVE REALISATION

People

Tools

Process

Recruit and train mobile sales teams

Train customer facing staff on lodgement proposition

Introduction of single online portal

Implement online Forms with basic data validation for all account

application submission

Review all communications to customers (website, pamphlets and

notifications) and revise language

Provide necessary sales tools and technology for mobile sales

team

Review and redefine risk approval criteria across all channels and

user groups

Simplify details captured on Forms (i.e. remove duplicated fields)

for all account application submission

Enhancing process and reducing non-value added activities

across all channels and user groups

Establish process and operating model for mobile sales team

PEOPLE PROCESS TOOLS

Sanitised


Determine the People, Process & Tools People, Process and Tools are the resources required that make up the capabilities

› Talk to business stakeholders in terms of People, Process and Tools that drive out

an outcome

› To come up with the detail around the these resources, you use the business

analysis community

› Cluster these capability components into capability models later, since these are the

models that the architecture discipline tends to use

› This approach also helps business stakeholders begin to understand the resources

within a capability

› This approach also begins to expose the resources for discussion and helps facilitate

a the assemble and mix discussions

The Environment

The Business Model

Market Model

Products and

Service Model

Operating

Model

Markets

Industries

Customers

Market Segment

Channels

Customer Relationships

Value Proposition


Services

Capabilities

Processes / Value Chains

Business Services

Functions

Data

Applications

Technology

INFLUENCERS - DRIVERS


The Business capability anchor model – Overlays:

› Supporting impact analysis and business communication

Overlaying specific views on the business anchor

model can highlight issues and opportunities

within the application portfolio, the program of

work and the business concerns/pain points across

key areas of a business.

An overlay of business

concerns and issues

An overlay of the current

program of work

An overlay of the technology

assets and their health



Strategic Alignment



Business Capability Maturity



Current and Planned Investment is identifiedOften issues and planned investment are not aligned

Investment

skewed towards

distribution

capability



Hotspots and Issues are identified

Business architecture efforts are often tilted towards either

an issue centric view or a strategic centric view – both views

need to be considered

Some hot spots

exist under

product

manufacturing



Comparing Investment to Issues to Identify Loss of Cohesion

Comparing Multiple Overlays Often Produces High Value Insights


Outcome Based Architecture – Developing Value

Streams with Cross-Functional Capabilities

Fu

nct

ion

al

Cap

ab

ilit

ies

Cro

ss-F

un

ctio

nal

Cap

ab

ilit

ies

En

terp

rise

Co

here

ncy

Cap

ab

ilit

ies

Strategic

Architecture

Mandate –

Business

Ownership

IT Architecture

Mandate –

IT Ownership

Business

Architecture

Mandate

Undefined

Cohesion Mandate



Defining the cross functional capabilities

› Use a cross-Functional capabilities View to Identify common Business Interests

Customer relationship

management

Sales

BUSINESS CAPABILITY MAP FUNCTIONAL VIEW

Service

Service

strategy

Service

delivery

management

Customer

care

Service

fulfilment

Contact

managementActivity

management

Privacy and

preference

management

Opportunity

management

New

business

Opportunity

management

Relationship

management

Sales support

Sales

operation

management

Advice

BUSINESS CAPABILITY MAP CROSS-

FUNCTIONAL VIEW


The Cross Functional Capability ModelThe Process Layer Plays a Strong Role in assembling capabilities for different outcomes

PROCESS

Sign Up & Integrate

CAPABILITY

20. Information Services Management

CAPABILITY

15. Sales Execution

PROCESS

A1. Explore and compare potential providers and

services

PROCESS

B2. Sign up and activate account

PROCESS

C3. Integrate my store with Australia Post’s API’s

precedes precedes precedes precedes

BUSINESS SERVICE

Customer Sales

Management

BUSINESS SERVICE

Partner Collaboration

PROCESS

C1. Receive information on how the systems and processes will work

PROCESS

C2. Install the necessary hardware / software on

my systems

is realized by

LOGICAL

APPLICATION COMP.

Customer Sales

Management

LOGICAL

APPLICATION COMP.

Enterprise Resource

Planning

LOGICAL

APPLICATION COMP.

Partner Collaboration

Management

LOGICAL

APPLICATION COMP.

Security Management

communicates with communicates with

communicates with

implements

is realized by

implements

ACTOR

Post Staff

DATA ENTITY

Sales Order

ACTOR

Post Staff

participates in participates in

is processed by

consumes

SAP - CRM SAP - ERP auspost.com.a

u

IAM - OIM

is processed by

ACTOR

Fiona

participates in

Customer

CAPABILITY

People

Process

Tools

Connecting these to projects provides valuable

insight into coherency and the capex investment

across the enterprise

Within each process flow, there are

typically four to five capabilities that make

up the process. These typically correspond

to functional silos that complete each step.

Within each capability, the model

identifies systems or applications that

are used to execute the capability.

This is where the model forms the

alignment between business and IT.

ARCHIMATE

NOTATION


The Cross Functional Capability Anchor Model Helps Identify

the Better Mix of Capabilities for Business OutcomesIts at this point that business begins to see the true value of using capabilities

Standard functional capabilities can be

aligned to a value chain

Cross functional capabilities assemble and mix functional capabilities to achieve

outcomes in the value map or driver tree

Cross functional capabilities each drive out different

outcomes. Underlying functional capabilities will have

varying perspectives of capability maturity and

capability uplift

You can also use cross functional models as scenarios

to test the capability anchor model validity


Cross Functional Capabilities BizBok Aligned - Value Stream: Stakeholder-Driven, End-to-end, Value Based Perspective

VALUE STREAM / STRATEGY MAPPING

• $ Analysis

• Impact Analysis

• Heat Mapping

VALUE STREAM / COST &

PERFORMANCE ANALYSIS VALUE STREAM / STAKEHOLDER MAPPING

VALUE STREAM / INITIATIVE MAPPINGVALUE STREAM / CAPABILITY MAPPING

VALUE

STREAM

VALUE STREAM / BUSINESS PROCESS GOVERNANCE,

ALIGNMENT

PRODUCT & SERVICE

VALUE STREAM / PRODUCT PLANNING

& DEPLOYMENTVALUE STREAM FRAMED, DYNAMIC, RULES

BASED ROUTING

Initiative improves

or creates new

capabilities

Initiative delivers value stream changes

“A framework for enabling

transparent transition of business

objects across and enterprise”

*BizBokTM Sourced Views


Developing The Business Model

An Architectural Approach

Transitioning

Architect:

Understand all inputs to

work out the most

optimal execution path


Optimised

Ad Hoc

MA

TU

RIT

YCapability Maturity AssessmentPlot importance and maturity to discover focus areas

STRATEGICALLY IMPORTANT

Describe

actions points

for each

quadrant

Repeatable

Defined

What

additional

overlay would

add a lot of

value?

Incremental

Transformational


Architecture Data Capturing

This is an “architecture” tool – NOT a business tool. You need to create a view for this final

summary

Capability

Strategic ValueLevel of Maturity

Maturity

Organic Target

State In-Flight

Project n Hotspots

Business

Impact Gap

Customer and

Service Line

Perspective

Process Organization Technology Project Name

CS FS CS FS CS FS P Pr T H M L P Pr T P Pr T

Example

CapabilityMed 2 3 3 3 2 N/A 1 2 X sig sig

Example Sub-

Capability ABCLow 3 3 2 3 3 4 X sig sig

Example Sub-

Capability DEFHigh 2 3 2 3 2 3 1 incr

Example Sub-

Capability XYZMed 2 3 2 4 2 3 1 trns trns


Capabilities and cross functional capabilities are evaluated in

light of all the change factorsThe capability mixes are evaluated against each scenario to determine the optimal path going forward

Requirements: Program “x” requires a $100M 5-year net benefit and must be implemented in under 3 years.

Strategic Scenarios

Cross Functional Capabilities


The Capability Anchor Model ViewsYou will need to develop your own shapes to represent the correct story you want to tell

CL


The Architecture Story

Sanitised

The complexity of information is dependant upon the maturity of your audience


The EA Roadmap TemplateThere are a variety of ways to depict a roadmap. This

version we have found to be the most effective

Mission, Vision, Goals and

Strategies

Strategic Objectives Aligned to

initiativesDrivers

Assumptions

and

Principles

Program of Work

Risks Aligned to Program of work

Time, Cost and Effort

Value Chain Current State

Capability Current State

People Current State

Process Current State

Tools Current State

Data Current State

Value Chain Target State

Capability Target State

People Target State

Process Target State

Tools Target State

Data Target State

EA’s

standard

structure

for a

Roadmap


The Planning Roadmap OutcomeArchitecture Roadmap – 3 Year Plan (FY11 to FY14)


Socialise the Architecture:

The Architecture Storyboard WalkthroughThese methods help the architecture speak for itself


Questions?