1. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 31 Building a More
Cohesive Organisation Using Business Architecture FINAL V.10.0 11TH
MARCH,2013 CraigMartin COOandChiefArchitect
ofEnterpriseArchitects
2. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 32 Mobile: +61 419 192
929 Twitter: @eatraining Email:
[email protected]
3. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 33 Look Familiar 60 000
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4. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 34 Related Webinar
Slideshare - Bridging business analysis and business architecture -
The Open Group webinar http://slidesha.re/10oCKOY Video on the
OpenGroup Webinar site http://bit.ly/105xEYy
5. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 35 EA is a leading
international provider of strategy and architecture services and
capabilities Championing Practice Awareness in the Community Chief
Architect / CTO Round Tables Virtual Teaming & Practitioner
Collaboration Open Group Participation Industry Engagement Lifetime
Relationship with Practising Architects Practitioner career
lifecycle management Architecture training and certification
Professional development Community involvement PAYG payroll
services Learning forums Skills Uplift for Organisations &
Individuals TOGAF 9.1 Certification ArchiMate 2.0 Advanced /
Applied EA Business Architecture Information Governance Solution
Architecture BPMN Strategic Relationship With Corporate Clients
Strategy & Architecture Capability Improvement The delivery of
strategic architecture outcomes Architecture delivery Accelerator
Frameworks Resourcing & Talent Managed Services Learning
Services Architect Services Thought Leadership Enterprise
Services
6. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 36 Man, Machine and the
Dog ON THE INTRODUCTION PAGE OF A TIER 1 BANK STRATEGY DOCUMENT:
"The factory of the future will have two employees: a man and a
dog. The man's job will be to feed the dog. The dog's job will be
to prevent the man from touching any of the automated equipment.
Warren G Bennis
7. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 37 Utility (Foundation)
Innovate Build Advantages Assemble Prolong Advantages Mix Reduce
Disadvantages What's Business About? DIFFERENTIATION The Building
Block Analogy
8. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 38 Tactical Strategic
Visionary We develop advantages through the use of the strategic
planning discipline The language of strategic planning is often
inconsistent Mission Strategies Tactics Vision Goals Objectives
*Adapted from business motivation model - OMG
9. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 39 The Business strategy
is often cascaded down into different functional business units for
delivery This often leads to a series of programs functionally
divided across the business units Mission Strategies Tactics Vision
Goals Objectives Business Unit 1 Program 1 Program 2 Business Unit
2 Program 3 Program 4 Business Unit 3 Program 5 Program 6 Each
Business unit tends to create their own strategies to achieve the
enterprise goals. These are often not aligned to the other business
unit strategies The language of strategy also varies across
business units, thus reducing cohesion at the strategic layer
Fragmentation therefore begins at the strategic level
10. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 310 The minefield between
strategy and projects In navigating the minefield between strategy
and execution there are multiple possible failure points STRATEGY
PROJECTS Strategy not sufficiently tied to operations Needed
capabilities not properly understood or measured Planners not
accountable for delivery Benefits arent quantified or traced back
to original goals The drivers of strategy are often misaligned This
often leads to some typical stakeholder issues regarding
transformation exercises Are we investing in the right areas across
the enterprise? Is my investment portfolio balanced across all of
the economic value add dimensions? Are the strategic programs
aligned, or for that matter, are they the right strategic programs?
There is a lot of activity going on out there, how do I know we are
doing the right things? Where can we take advantage of synergies
across the major strategic programs?
11. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 311 Loss of cohesion of
effort across transformation exercises results in loss of cohesion
for the business Companies with a high level of cohesion affect
EBIT directly 4% 8% 12% 16% 20% 24% 28% 32% 0 20 40 60 80 100 120
EBITMARGIN,2003-2007 CAPABILITIES COHERENCE SCORE Coca-Cola
WrigleyPepsiCo Kimberly-Clark Sara Lee ConAgra Merck Unilever H.J.
Heinz Kraft General Mills Clorox Campbell Soup Company P&G
*Adapted from The Coherence Premium Harvard Business Review, June
2010 A coherent organisation is one that is thought of and executed
as a whole
12. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 312 The goal of a good
business model is to create coherence Building Cohesion Requires an
Understanding of the components, and how to mix them in a manner
that is innovative and differentiating A Coherent Business Model is
one that is synchronised around: its market position, its product
and service portfolio; and its most distinctive strategic
capabilities All of the above working together as a system To bring
coherence to these components requires a variety of business skills
and disciplines 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
13. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 313 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 means to drive out cohesion 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
14. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 314 The capability mix
challenge Identifying the right resources to support the
capabilities Mixing these resources effectively to achieve the
capability outcomes Identifying mixes of capabilities at a higher
level to drive out business outcomes The Correct assembly and mix
of these capabilities will help with cohesion across the business
and drive out a successful strategy
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ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 315 Finding the Right
Business Mixes The Challenge is reducing the time it takes to move
from the unresolved business challenges space to the repeatable
formulas 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
16. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 316 Who is best qualified
to operate here? ANALYTICAL THINKING INTUITIVE THINKING * From
Roger Martin (2009) The Design of Business GOAL: Reliably produce
consistent, predictable outcomes GOAL: Produce outcomes that meet
desired objectives Certain business disciplines are required to
reduce the time to codify Key disciplines are required to reduce
the time taken to move unresolved business challenges into reliable
and repeatable processes Should investment go here and who is
qualified to operate here? Unresolved Business Challenges Rules of
thumb Robust, repeatable and replicable processes Search for The EA
Headspace
17. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 317 Value Mandate E A B C
D Responsibility depends upon the mandate from business The
Architecture Mandate - Value Increases when Mandate Increases.
Business Architecture is seen as a positive progression away from
IT *Adapted from Ruth Malan, Dana Bredemeyer Maximize 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
18. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 318 Improve project
performance Improve enterprise wide program and portfolio
performance Improve Business Performance Improve Market Performance
(Shareholder Value) Value Mandate Improve Product/Service
Performance E A B C D What are the Possible Problem Scenarios? The
problem space varies significantly depending upon the mandate.
BUSINESS TRANSITION SPACE We are looking to acquire a variety of
companies. How can we apportion our assets across the company to
best take advantage of an M&A The Business is losing market
share due to inefficiencies across the value chain. Find out what
the bottlenecks are and fix it The business is going through a
major transformation program. Deliver the solution on time and
under budget. Design the solution for an HR system
19. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 319 Strategic Themes
Initiative 5 Initiative 6 Understanding the Gap Between Strategy
and Execution: SCENARIO 1 BUSINESS IMPROVEMENT - SPAWNING
INITIATIVES FROM THE STRATEGY MAP Initiatives straight from
strategy often results in loss of cohesion Strategic Themes
Initiative 1 Initiative 2 Strategic Themes Initiative 3 Initiative
4 Mandate: Improve enterprise wide program and portfolio
performance
20. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 320 Understanding the Gap
Between Strategy and Execution: SCENARIO 2 BUSINESS TRANSITION -
DEVELOPING THE UNIFIED BUSINESS MODEL Creating a single unified
business model helps build cohesion across the enterprise Strategic
Themes Capability 1 Capability 2 Strategic Themes Capability 5
Capability 6 Strategic Themes Capability 3 Capability 4 Mandate:
Improve Business Performance
21. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 321 Understanding the Gap
Between Strategy and Execution: SCENARIO 3 PLANNING AND PERFORMANCE
- DEFINING THE BUSINESS MODEL FOR CANDIDATE STRATEGIC SCENARIOS
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
22. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 322 Understanding the gap
between strategy and execution Goals and Drivers help define a
driver tree hierarchy or value map The value map will help identify
enterprise aligned business unit drivers and leverage points
Examples Revenue enhancement Margin enhancement Operating
efficiencies Working capital management Investment capital
productivity Capital structure optimization CORPORATE
LEVEL-SPECIFIC Examples Pricing strategy Product assortment
Departmental emphasis Product cost Store operating costs Corporate
administrative costs Operating cash reserves Inventory management
Accounts payable management Store base Leases Intangible assets
Distribution assets BUSINESS UNIT-SPECIFIC Examples Purchase
frequency Household penetration Transaction size Gross margin Store
operating expense % SG&A expense % Distribution cost per case
Days cash on hand Inventory turns-store and DC Account payable
cycle Store-level profitability Debt/Equity ratio Annual capital
investment OPERATING VALUE DRIVERS Earning loyalty & trust with
customers & community Make our Processes simpler and faster
Empower the frontline to Deliver Integrated Financial Solutions
Deliver new and relevant products Create a performance culture
REVENUE COSTS WORKING CAPITAL FIXED CAPITAL NOPLAT INVESTED CAPITAL
EVA
23. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 323 Understanding the
Strategic Scenarios Each strategic scenario can be evaluated in
line with the value disciplines of the organization DRIVER TREES
AND VALUE MAPS & GOALS These value disciplines will help
decisions around the strategic balance between efficiency and
effectiveness There is often fragmentation around value disciplines
which results in competitive forces and flawed decision making
24. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 324 Developing business
models for each scenario Each strategic scenario will have a set of
corresponding business model options that would need to be
evaluated Semi Integrated Universal Bank 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
25. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 325 Documenting the
Business Models Building cohesion requires understanding across the
entire business model Value Chain Analysis Cross Functional Models
Capability/Business Anchor Models Process Models Application Models
Data and information Models Technology Models Value Maps Product
and Offering Maps Design Models Customer Experience Journey Maps
Learning Maps Motivation Models Business Model Innovation 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
26. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 326 What we have found in
large accounts An ownership gap for business architecture exists -
Lines of responsibility around cohesion and business architecture,
are often unclear Functional Capabilities Cross-Functional
Capabilities EnterpriseCoherency Capabilities Strategic
Architecture Mandate Business Ownership IT Architecture Mandate IT
Ownership Business Architecture Mandate Undefined Cohesion Mandate
Undefined - Enterprise Planning Ownership
27. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 327 The functional
capability anchor model provides the utility building blocks of the
organisation The anchor model represents the "map" of the
organisation
28. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 328 The Functional
Capability Anchor Model - Overlays Many Overlays Can be Used on
this Anchor Model CL
29. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 329 The functional
capability anchor model overlays: The capability overlap is
identified to help improve cohesion across the enterprise Clearer
visibility of synergies is required to consolidate strategic
efforts across the major programs Channel (Relationship Managers,
Mobile Sales Force & 3rd Party Distribution) NB Retail
Quotation Provision NB Retail Identification and Authentication NB
Retail Customer Needs Analysis NB Retail Contact Management NB
Retail Account Servicing NB Retail Origination NB Retail Customer
Information Management NB Retail Query and Dispute Management NB
Retail Lead Referral ANZ Retail Quotation Provision ANZ Retail
Identification and Authentication ANZ Retail Customer Needs
Analysis ANZ Retail Contact Management ANZ Retail Account Servicing
ANZ Retail Origination ANZ Retail Customer Information Management
ANZ Retail Query and Dispute Management ANZ Retail Lead Referral
Retail Workforce Planning NB Retail Sales Reporting ANZ Retail
Sales Reporting ANZ Retail Lead Fulfilment NB Retail Lead
Fulfilment NB Retail Credit Decisioning Client Retail Credit
Decisioning NB Retail Customer Correspondence ANZ Retail Customer
Correspondence NB Retail Customer On-boarding ANZ Retail Customer
On-boarding NB Retail Promotion Execution ANZ Retail Promotion
Execution ANZ Prospecting NB Prospecting Retail Commission
Management
30. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 330 The Functional
Capability Anchor Model Overlays: 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
31. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 331 The Functional
Capability Anchor Model Overlays: Current and Planned Investment is
identified Often issues and planned investment are not aligned
Investment skewed towards distribution capability
32. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 332 The Functional
Capability Anchor Model Overlays: Comparing Investment to Issues to
Identify Loss of Cohesion Comparing Multiple Overlays Often
Produces High Value Insights
33. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 333 The Value of The
Functional Capability Model Anchor Models Have a Short Business
Value Lifespan The Business Anchor Model tends to be Driven by IT
It is often used as a tool to talk to the business to maintain
architectural integrity The capability models resonate more with
the IT & architecture disciplines, not necessarily with the
business disciplines The Capability model becomes more the
execution focussed piece it is in fact the downward facing artefact
Cross functional capabilities start to move upwards and resonate
more with business stakeholders 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
34. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 334 Using Capabilities in
The Functional Anchor Model Capabilities and Capability Models
require a different modelling technique 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 Offering: Products / Services Capabilities Processes /
Value Chains Business Services Functions Data Applications
Technology
35. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 335 The Cross Functional
Capability Anchor Model Helps Identify the Better Mix of
Capabilities for Business Outcomes Its 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
36. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 336 The Cross Functional
Capability Model The Process Layer Plays a Strong Role in
assembling capabilities for different outcomes 36 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 Posts APIs
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
37. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 337 The Cross Functional
Capability Model Customer Experience Journeys can also be used as
guides to assembling cross functional capabilities Cust Journey
ViewCust Interactions View Capability to Journey A Journey to
Capability Capability to Logical Data (via Business Service)
Capability to Logical App (via Business Service) D B 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 C We often find
product architecture missing in this space: Value Maps Product and
Offering Maps Design Models
38. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 338 The Cross Functional
Capability Model Use Stereotypes to Kick-start your Efforts
Stereotypes are a Recipe Set of Business Model Mixes and their
outcomes DIFFERENTIATED BUSINESSMODELS Utility (Foundation)
Business Model Stereotypes Innovate Build Advantages Assemble
Prolong Advantages Mix Reduce Disadvantages
39. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 339 Assemble Build
Advantages Mix Prolong Advantages Optimise Reduce Disadvantages The
Cross Functional Capability Model Utility Business Model
Stereotypes provide a set of standard business model execution
styles to work with Aggregator Category Leader Consolidator
Customizer Disintermediator Experience Provider Fast Follower
Innovator Platform provider Premium Player Regulation Navigator
Reputation Player Risk Absorber Solutions Provider Value Player
These Stereotypes are different from reference models Standard
assembly patterns of functional and cross functional capabilities
can be leveraged as foundation business models to kick-start your
efforts * Based upon The Essential Advantage Leinwand &
Mainardi
40. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 340 The Cross Functional
Capability Model Example: Experience Provider Each stereotype can
have a standalone business model to be used as a pattern -
Experience Provider Stereotype Mass Market Love Mark Switching
Costs Seamless Music Experience Hardware Design Brand Content &
Agreements OEMS Record Companies Personalised Support Retail Stores
Apple Stores Apple.com iTunes Marketing Builds enjoyment,
engagement, and emotional attachment through strong brands or
experiences *Apples Example from Business Model Innovation
Osterwalder
41. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 341 The Cross Functional
Capability Model: Using the Business Motivation Model to Focus on
Outcome The 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 Offering: Products / Services Capabilities
Processes / Value Chains Business Services Functions Data
Applications Technology
42. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 342 Strategic alignment
is determined by mapping of capability dimensions to value levers
VALUE LEVERS MaintenanceCost Reduction Productsper Month(Brokers
andAdvisors) Persistency AcquisitionCost Reduction Numberof
Advisorsand Brokers PremiumSize FundRetention Percent Contribution
of Current Capability Resources to Target Values 48% 167% 100% 80%
18% 0% 60% CAPABILITYDIMENSIONS Products Business Process
Information Technology (Infrastructure) Applications Facilities
External Relations (Supply Chain and Partnerships) Organization and
People Very High High Medium Low/Medium None 0-49% of Target Value
50-74% of Target Value 75% of Target Value
43. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 343 Use Capability Mixes
to Re-align the Investment Portfolio Provide executives with a
cohesive, non-project based view of the investment spend Address
Capex and Opex conflicts Address duplication of effort across the
portfolio landscape Maintain alignment of the ensuing programs
Allows business stakeholders to have a consistent business focussed
view of the project investment and its status Support the
investment planning cycle and cohesion of programs Removed
44. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 344 Plan & Market
Information, Knowledge & Systems People Assets & Services
Strategically critical HIGH coverage by in-flight initiatives NOT
strategically critical HIGH coverage by in-flight initiatives
Strategically critical LOW coverage by in-flight initiatives NOT
strategically critical LOW coverage by in-flight initiatives HIGH
COVERAGE LOW COVERAGE Initiative Coverage (primary impact on L1 and
L2 activities only) Capabilities with high potential for
improvement from issues layer Often the Investment Slate can be
adjusted to cater for the misalignment This is the biggest
challenge Ref Capabilities # In-flight Initiatives % Gap C14 Sales
Planning and Management 9 0% C15 Sales Execution 6 0% C30 Network
Development 6 0% C3 Plan to Realize 5 11% C10 Channel Strategy
Management 4 25% Ref Capabilities # In-flight Initiatives % Gap C17
Customer Service 9 0% C34 Track and Trace 4 0% C45 Information,
Knowledge & Systems Delivery 2 14% C43 People Day-to Day
Management 4 40% Ref Capabilities # In-flight Initiatives % Gap C1
Research, Analysis & Insights 4 50% C8 Market Planning 3 60%
C13 Business Performance Management 4 75% C2 Corporate Vision &
Strategy Management 2 100% C5 Acquisition and Divestment 2 100% C40
People Planning 4 100% C48 Asset Lifecycle Management 3 100% Ref
Capabilities # In-flight Initiatives % Gap C44 Information,
Knowledge & Systems Planning 11 63% C45 Information &
Knowledge Governance 11 67% C41 Recruit & Retain People 5 21%
C4 Innovation Management 3 100% C51 Supplier Relationship
Management 2 100% Strategically ImportantYES NO
45. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 345 Dealing with The
Change Fallout Building Cross Functional Teams to Facilitate Change
Creation of a Unified Team of cross enterprise disciplines to help
socialise the changes required for the investment slate Change
Manager Finance PMO Business Improvement Strategy Technology
Combination of People, Process & technology to drive out an
outcome through projects
46. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 346 The degree of change
effort to move to the future state is evaluated Change Frameworks
applied to your process components can help determine impact
Current State Future State Pain Points Inefficiencies The
application submitted by the consultant is often incomplete. The
application is reviewed for completeness and adjudicated. The
conditional approval, along with a list or required documents are
then sent back to the MS, who will communicate the results, a
conditional approval, back to the applicant. This process can take
several days and requires a significant time and effort from RBC
resources. What would a truly transformational scenario look like?
New Capabilities 1. Portable credit scoring system and rules engine
2. Document verification at POS 3. Automated disbursement
Incremental Improvement Significant Improvement Changethe Game
Required Changes How are pain points addressed? Credit scoring
engine must be available to the mortgage specialist, permitting an
on-the-spot adjudication Document verification enabled at the point
of sale by the cons. Highly automated process which advances funds
without the need for the human intervention 1 1 2 3 Contacts bank
to request mortgage Cons. meets with the applicant Application is
complete Application submitted for adjudication Application is
adjudicated Results are communicated to MS Applicant gets
conditional approval Applicant submits required docs Documents are
verified Client executes documentation Mortgage is approved
Mortgage is set up on bank systems Funds are advanced 1 Contacts
bank to request mortgage rep meets with the applicant Application
is complete Application adjudicated on the spot Applicant gets
conditional approval Applicant submits required docs Documents are
verified Client executes documentation Mortgage is approved
Mortgage is set up on bank systems Funds are advanced 1 Contacts
bank to request mortgage Cons meets with the applicant Application
is complete Application adjudicated and docs verified Client
executes documentation Mortgage is approved Funds are advanced2
3
47. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 347 Business Model
Assessment Business Model Components 0.0 1.0 2.0 3.0 4.0 5.0
Shareholder Customer Employee Product Offering Price Structure
Distribution Brand / Reputation Customer Segment Customer
Experience Network Capability Operational Efficiency / IT Financial
Capability Business Systems Customer Product Vision Each Candidate
Business Model Can be Evaluated Against the Value Driver Dimensions
Measure the value of each possible operating model and their
ability to support and deliver the strategic scenarios
48. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 348 Capabilities and
cross functional capabilities are evaluated in light of all the
change factors The 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
49. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 349 Roadmapping Look to
Mature Capabilities Through Increments Capabilities Basic
Intermediate Advanced Customer Service 1. Service Team Trained and
Equipped Marketing Execution 2. Marketing Playbooks Automated 3.
Marketing and Sales Campaign Pilot 5. Advertising Revenue
Adjustment Calculation 7. Marketing and Sales Campaign Pilot 6.
Customer Sat Score & Stakeholder Sat Score Sales Execution 1 2
3 4 5 Current State Future State 2. Sales Playbooks Automated 4.
Marketing and Sales Campaign Prototype 5. Sales Team Training 7.
Cross Functional Process Automation 6. Pilot 1 2 3 7 8 76542 2 3 7
8 9 1 7 6 5 4 2 Maturity 9 Capabilities increase and decrease
maturity over time depending upon outcomes. Plan for increments
that can be absorbed by the business
50. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 350 The Planning Roadmap
Outcome Architecture Roadmap 3 Year Plan (FY11 to FY14)
51. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 351 Socialise the
Architecture: The Architecture Storyboard Walkthrough These methods
help the architecture speak for itself
52. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 352 In Closing:
Responsibility
53. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 353 Business Architecture
and Business Analysis Which of these disciplines are the most
qualified to handle the relationship with the stakeholder? Context
of Work UnderlyingCompetency Detail Focus Big Picture
FoundationalAdvanced Entry level BA Junior BA Inter- mediate BA
Senior BA Advanced Generalist BA Analyst BizArch Senior BizArch
Principal BizArch Master BizArch Distinguished BizArch Business
Analysis Business Architecture Strategic Business Architect
Principal Business Architect Business Architect
54. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 354 Lack of Opportunity
The Current Business Analysis Career Path Dilutes the true Value
The progression or the business analyst often moves from business
understanding to management and delivery type functions Time
KnowledgeOfBusiness Entry Level BA Junior BA Intermediate BA Senior
BA BA Project Lead BA Program Lead BA Practice Leader Business
Relationship Manager Principal Business Architect Strategic
Business Architect Delivering Path Thought leadership in terms of
the utility layer, standards, replicating, reliability etc.
Managing Path Thought leadership in terms of management, delivery,
change and politics Planning Path Thought leadership in terms of
innovation, business models and mixes
55. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 355 The Business
Architect Mandate Role Confusion Exists Due to Lack of a Clear
Mandate this results in overlap of function, output and value
Environ. Models, Competitor Analysis, Strategic Diagnosis
Segmentation Positioning, Strategy Map, Decision Trees Perceptual
mapping, distribution channels and models Customer Experience,
Journey Maps, Learning Maps Campaign Models, Advertising Messages,
Key Messages Competitor Strategy, Expansion Strategy, Innovation
Strategy Marketing Mix, Product Lifecycle Model, Pricing and Cash
Flow analysis Regression Analysis and forecasting, Platform and
Expansion Plans Design models, Value Maps, Product and Offering
Maps, Design Models Product Line plans Motivation Model, Driver
Trees, Systems Theory Org. Model and Structures, Org. Culture,
Partner and supplier models Change Models, Organization Unit model,
Org. learning models Resource Management and Scheduling procedures
Contracts, Time and Expense Procedures Performance, Business
Structures, Value Maps Risk Models, Growth Models, Capital
Structure Models Performance Alignment model, Root Cause Model
Balanced Scorecard, Financial reporting Financial Reporting
Procedures, EPM Value Chain, Value Streams, Decisions & Events
Capability Models Process Maps Function Models Use Cases Process
Models Workflows & Activities Operating procedures Info Mgt
Principles Info Use Policies Meta-Data Definition Subject
Classification Information Classification Enterprise Info Model,
Info Lifecycle Model, Human Interface Model Custodian Model,
Integration View, Presentation Models Security Rules, BI Reports,
User Interface, Warehouse and datamarts Health Assessment
Application Principles Application Framework Current State Target
State Services Definitions Function Models Wiring Diagrams Activity
Views Patterns Deployment Model Application Standards Resource
Estimates? Class/Module View Configuration Models Data Principles
Reference Data Stds Data Dictionary, Data quality processes Data
Directory Field Level Views Technology Watch Health Assessment
Asset Lifecycle Technology Principles Tech Reference Model Current
State Target State Service Catalogue Service Definition Mud Maps
(N/W, etc.) Technology Standards CMDB Management Contextual
Conceptual Logical Physical Implementation Market Application Data
Technology Enterprise Architect Solution Architect Products &
Services Organizational Performance Process & Function Info
Business Architect Strategic Business Architect Principal Business
Architect Senior Business Analyst / Senior Business Architect
Analyst Business Architect Business Analyst
56. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 356 Confusion Regarding
the Business Architecture RoleThis is where the crowding is. The
Bridge Between Business and Technology. Individuals need to
differentiate themselves from this space Environ. Models,
Competitor Analysis, Strategic Diagnosis Segmentation Positioning,
Strategy Map, Decision Trees Perceptual mapping, distribution
channels and models Customer Experience, Journey Maps, Learning
Maps Campaign Models, Advertising Messages, Key Messages Competitor
Strategy, Expansion Strategy, Innovation Strategy Marketing Mix,
Product Lifecycle Model, Pricing and Cash Flow analysis Regression
Analysis and forecasting, Platform and Expansion Plans Design
models, Value Maps, Product and Offering Maps, Design Models
Product Line plans Motivation Model, Driver Trees, Systems Theory
Org. Model and Structures, Org. Culture, Partner and supplier
models Change Models, Organization Unit model, Org. learning models
Resource Management and Scheduling procedures Contracts, Time and
Expense Procedures Performance, Business Structures, Value Maps
Risk Models, Growth Models, Capital Structure Models Performance
Alignment model, Root Cause Model Balanced Scorecard, Financial
reporting Financial Reporting Procedures, EPM Value Chain, Value
Streams, Decisions & Events Capability Models Process Maps
Function Models Use Cases Process Models Workflows & Activities
Operating procedures Info Mgt Principles Info Use Policies
Meta-Data Definition Subject Classification Information
Classification Enterprise Info Model, Info Lifecycle Model, Human
Interface Model Custodian Model, Integration View, Presentation
Models Security Rules, BI Reports, User Interface, Warehouse and
datamarts Health Assessment Application Principles Application
Framework Current State Target State Services Definitions Function
Models Wiring Diagrams Activity Views Patterns Deployment Model
Application Standards Resource Estimates? Class/Module View
Configuration Models Data Principles Reference Data Stds Data
Dictionary, Data quality processes Data Directory Field Level Views
Technology Watch Health Assessment Asset Lifecycle Technology
Principles Tech Reference Model Current State Target State Service
Catalogue Service Definition Mud Maps (N/W, etc.) Technology
Standards CMDB Management Contextual Conceptual Logical Physical
Implementation Market Application Data Technology Enterprise
Architect Solution Architect Products & Services Organizational
Performance Process & Function Info Business Architect
Strategic Business Architect Principal Business Architect Senior
Business Analyst / Senior Business Architect Analyst Business
Architect Business Analyst
57. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 357 The Various Roles and
How They Support Decision Making 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 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 companys 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 High Low Low Must be
done but adds little value to product or services Very important to
success, high value added to products and services Strategic
Importance ProcessComplexityandDynamics Complex negotiation,
design, or decision process Many business rules; expertise involved
Some business rules Procedure or simple algorithm Organization
Heuristics Principal Business Architects Business Analysts
Strategic Business Architect Senior Business Analysts *Adapted from
Business Process Change by Paul Harmon
58. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS
ARCHITECTUR E | ENTERPRISE ARCHITECTS 201 358 Questions?