MAY COMMUNITY MEETING - Welcome to the Twin Cities ......1 2 A tool like XPLANE’s Empathy Map can expand your understanding of a customer via profiling Similar to the ‘Persona’

The TC Business Architecture Forum

MAY COMMUNITY MEETINGBOARD UPDATE

1/22/2019 THE TWIN CITIES BUSINESS ARCHITECTURE FORUM 1

AGENDA

◼ 2019 Programming Overview◼ Capability Updates◼ A4G (Architecting For Good)◼ Tool Talk◼ Main Event: Platform as a Service presented by Thrivent Financial

12/06/2018THE TC BUSINESS ARCHITECTURE FORUM 2

Leading with Models

Enabling Innovation

Informing Change

Implement Your Vision Prime TherapeuticsMarch 19, 2019TCBAF host: Troy Nelson

Platform as a ServiceThrivent FinancialMay 21, 2019TCBAF host: Michael Dockham

Design ThinkingMedtronicJuly 16, 2019TCBAF host: Tiffany Johnson

TCBAF Mini-Summit Technology enablers in the Business Architecture of HealthcareMayo RochesterAugust 22, 2019TCBAF host: Linda Finley

Using Business Architecture for Application RationalizationMNIT (State of MN) September 17, 2019TCBAF host: Morgan Finley

4th Annual Business Architecture SummitCargill December 5, 2019TCBAF host: Tim Jennissen

TBAJanuary 21, 2020TCBAF host: Dean Larson

3

TCBAF SIG – Run in parallel throughout 2019

Social Event Steel Toe BrewingOctober, 2019TCBAF host: Mary Auer

2019 ThemeThe Journey: Using Business Architecture to Lead

Drive results by leading with models, enabling innovation, and informing change.

TCBAF MINI-SUMMIT

◼ “Technology enablers in the Business Architecture of Healthcare”◼ Presentations by Mayo and 2 additional healthcare partners, with a panel discussion◼ Hosted @ Mayo Rochester◼ Thursday, August 22nd ◼ 1pm – 4pm (tentative)◼ Collaboration with HIMSS MN, possibly others


4TH ANNUAL BUSINESS ARCHITECTURE SUMMIT

◼ The Journey: Using Business Architecture to Lead. Drive results by leading with models, enabling innovation, and informing change.

◼ Proposed tracks include:Leading with ModelsEnabling InnovationInforming ChangeSkill Building

◼ Thursday, December 5, 2019◼ Hosted @ Cargill


CAPABILITY UPDATES -- MEMBERSHIP

THE TC BUSINESS ARCHITECTURE FORUM 6

◼ Focusing on member engagement in 2019◼ Refreshed Member Journey Map to

highlight key areas◼ Reviewed capabilities needed to track and

improve engagement (Member Management via Zoho CRM, Event Management via Eventbrite, Member Marketing via existing LinkedIn and TCBAF.org channels )

A4G (ARCHITECTING FOR GOOD) UPDATE

Partner: HOPE 4 Youth

◼ Goal: End youth homelessness◼ Approach: Prevent > Serve > Sustain

◼ Identify ways to prevent kids from becoming homeless

◼ Provide services that help kids to gain the skills needed so they are never homeless again

◼ Based in Anoka County looking to expand reach across the state and beyond

Project Status:◼ Kick-off Meeting Complete

◼ 14 Volunteers participated in kick-off learning about HOPE 4 Youth and brainstorming deliverables

Next Steps:◼ Working Session Wednesday May 22nd.◼ 3 HOPE 4 Youth stakeholders participate in

strategy decompensation and mapping session ◼ Break into sub-teams and build out deliverables◼ Strategy Maps◼ Business Model Canvas◼ Customer Journey Map / Value Streams◼ Capability Maps

TOOL TALK


THE 9 BLOCK FRAMEWORK

Cost Structures Revenue Streams

Key Partners Key Activities Value Proposition CustomerRelationship Customer

Segments

Key Resources Channels 123

4

5

6

78

9

Cre

ate

Valu

e Deliver Value

Capture Value 9

“An organization serves one or several Customer Segments”- Business Model Generation, p 16

CUSTOMER SEGMENTS (CS)

Description: a group of people or an organization that we aim to reach and serve. Distinct segments with common needs, common behaviors, etc..◼ Their needs require a distinct offer◼ They are reached through different distribution channels◼ They require different types of relationships◼ They have different profitability or perspectives on "value"◼ They are willing to "pay“ for different aspects of what we offer

www.businessmodelgeneration.com

Proper segmentation is key – it either enables or inhibits differentiation 1

0

CUSTOMER SEGMENTS -- EXAMPLES

◼ Mass markets — Don’t distinguish between different Customer Segments. Customers have broadly similar needs and problems. (ex: consumer electronics.)

◼ Niche markets — Cater to specific, specialized customer segments. Supplier/buyer relationships (ex: car parts for auto manufacturers.)

◼ Segmented — Distinguish between market segments with slightly different needs and problems (ex: financial services - high net worth individuals vs people saving for retirement.)

◼ Diversified — Serve two or more unrelated Customer Segments. (ex: Amazon.com retail sales and cloud computing service unit share one powerful infrastructure.)

◼ Multi-sided platforms (multi-sided markets) — Serve two or distinct but interdependent groups of customers. Platforms are only valuable to one group of customers when another group exists—(ex: newspapers link readers and advertisers)

www.businessmodelgeneration.com

11

Ask yourself:✓ For whom are we creating value?✓ For whom do we making a difference?

EXPLORING CUSTOMER SEGMENTS

12

A tool like XPLANE’s Empathy Map can expand your understanding of a customer via profiling

Similar to the ‘Persona’ development approach is outlined in “The Design Thinking Playbook”

Provides insights that may influence your thinking around Value Proposition (July topic), Customer Relationships and Channels

https://x.xplane.com/empathymap

THANK YOU FOR BEING PART OF THE COMMUNITY

◼ Follow tcbaf.org and join our linkedin group for information and updates◼ We have a blog area on the website, we’re just waiting for your content! ◼ We’re on Instagram now! Follow us!

◼ Thank you to Thrivent for hosting us!


14 | For internal use only. Not to be shown or distributed to the public.

Platform as a Business ModelDan Bryant, VP, Corporate Strategy and Partnerships

Michael Dockham, Enterprise ArchitectureMay 21, 2019


• Platform as a Business Model: 20 minutes• Platform Build Exercise - building out a platform through

small groups: 30 minutes• Thrivent’s Participation in a Platform Buildout: 10 minutes

Topics



“In the 1880s and 1890s, two dozen flour mills, connected by a system of canals, sluiceways and tunnels, dominated the west bank at the Falls of St. Anthony. These towering mills cast their shadows over thousands of farms across the northern wheat belt. Their strength rested not only in waterpower but in money and organization. By 1889 three companies controlled two-thirds of the flour production at the falls. The names of mill owners and grain traders like Washburn, Pillsbury, Peavey and Cargill became household words across the Northwest.” Minnesota Historical Society

WHAT IS A PLATFORM?


Key Takeaways• Platforms are not about technology• Platforms are business models that enable components of an ecosystem

to operate together to serve customer needs• The infrastructures that underlay our Ecosystems are rapidly changing• Successful Incumbents and startups will focus upon unique and

defensible value proposition along the customer value chain.


What do we mean by“platform”?

“A platform is a business model that allows multiple participants (producers and consumers) to connect

to it, interact with one another, and create and exchange value.”

Sangeet Paul Choudary, Geoffrey G. Parker, and Marshall W. Van Alstyne, “Pipelines, platforms, and the new rules of strategy,” Harvard Business Review, April 2016, hbr.org.


Platform Paradox

The most important choice for a platform business model is determining what it is not going to do along the customer value chain.

Unintended externalities of the business model that are not “priced in” will often determine the long-term sustainability of the business.

“The essence of strategy is choosing what NOT to do.” Michael Porter


The most successful companies in the digital era, including Alibaba, Amazon, and Facebook, were all designed on platform business models. Seven of the ten largest companies by market capitalization are ecosystem players—Alibaba, Alphabet, Amazon, Apple, Facebook, Microsoft, and Tencent.

Google, Apple, Facebook, Amazon (GAFA) and Ecosystems

A platform is a business model that allows multiple participants (producers and consumers) to connect to it, interact with one another, and create and exchange value.

An ecosystem, meanwhile, is an interconnected set of services that allows users to fulfill a variety of needs in one integrated experience.

Ecosystems will account for 30 percent of global revenues by 2025


Platforms and Ecosystems are not new; they have existed across the four stages of the industrial revolutions

The Fourth Industrial Revolution


Evolving Infrastructure of the Fourth Industrial Revolution


The biggest news no one is talking about

The movement of goods and services is now predominately over digital flows; Assets and value are now created and/or exchanged overwhelmingly through non-physical means.


▪ What are the flows of intangible/tangible assets across ecosystems?

▪ How do those flows align to specific needs along the customer value chain?

▪ Google, Facebook, Amazon, Alibaba have positioned themselves along the flows between suppliers and customers.

The new waterways across ecosystems




The Three Main Elements of Decoupling Theory


Activities along the Customer Value Chain


Alibaba Covers the Entire Customer Value Chain


• Successful Incumbents and startups will focus upon unique and defensible value proposition along the customer value chain.

• Platforms are not about technology

• Platforms are business models that enable components of an ecosystem to operate together to serve customer needs

• The infrastructures that underlay our Ecosystems are rapidly changing

Key Takeaways


Timeline of Business Models Over Time

It’s not technology that disrupts most markets | Customers are disrupting markets

Locking up the Value Orchestrating the Value Decoupling the Value

1980s mid-2000’s late-2000’s


THANK YOU


Platform Exercise


Platform as a Business Model - ExerciseScenario: Build out a Ride Sharing Business, think in terms of Lyft / Uber from each Key Stakeholder’s Perspective

Establish Teams and Assume Your Role:[2-3 Consumers, 2-3 Producers, 2-3 Partners, 2-3 Platform Owners]

○ Role of Consumers: Explain what you want and what would add value to you

○ Role of Producers: Explain what you are sharing and what value you would get out of it

○ Role of Partners: Explain what you are sharing and what value you would get out of it

○ Role of Platform Owners: listen to the Consumers, Producers & Partners; ideate what your platform will do to create the value exchange and the network effect

Idea Generation: Write down (on Post-it Notes) as many ideas for what you believe the Stakeholder you are representing


Platform as a Business Model - Exercise

You will place Post-its on the Template as you generate ideas



Timing• Total time spent will be around 30 minutes• Spend around 20 minutes coming up with ideas - collaborate across your

stakeholders

Report Outs• Spend around 10 minutes summarizing and sharing what you learned


Platform as a Business Model - Exercise - Summary

• What is unique about the Platform Business Model from a “Value Chain” that is owned by a single entity?

• What have you learned about a Platform Business Model that you find the most intriguing?

• How could you apply this to your organization?



We will leverage “Platform Design Toolkit”• Mapping the Ecosystem

• Portraying Ecosystem’s Entities• Analysing the potential to

Exchange Value• Choosing the core

relationships you want to Focus on

• Identifying the Elementary Transactions

• Designing the Learning Engine• Assembling the Platform

Experiences• Setting up the Minimum Viable

Platform


Thrivent’s Platform Business Model Experience


Building Relationships Across the Christian Ecosystem

Access to relationships & data that Thrivent would not be able to access on our own


Building Relationships Across the Christian Ecosystem


The Growth Journey + Platform: from concept to capabilities model to construction

Growth Plans,Steps & IncrementsSpark!

Participant’s Narrative (Personal State)

Connect

Growth Journey

Know Match

CatalyzeJourney

OutcomesImpetus to

change

Platform Services


Appendix - Resources


Platform Resources

• Book: Platform Revolution: How Networked Markets Are Transforming the Economy

• HBR: Pipelines, Platforms, and the New Rules of Strategy• Pipes to Platforms: All Things Platform - Sangeet Choudary• Platform Institute: Networked markets are transforming the economy and

how to make them work for you• A compilation from Michael Dockham

https://www.amazon.com/Platform-Revolution-Networked-Transforming-Economy/dp/0393249131

https://www.amazon.com/Platform-Revolution-Networked-Transforming-Economy/dp/0393249131

https://hbr.org/2016/04/pipelines-platforms-and-the-new-rules-of-strategy

http://platformthinkinglabs.com/

http://www.platformstrategypartners.com/

http://www.platformstrategypartners.com/

https://sites.google.com/site/dockhampedia/Home/leadership-and-high-performance/recommended-books-1/book-platform-revolution

The TC Business Architecture Forum

THANK YOU!

12/06/2018 THE BUSINESS ARCHITECTURE SUMMIT 46

Documents

MAY COMMUNITY MEETING - Welcome to the Twin Cities ......1 2 A tool like XPLANE’s Empathy Map can expand your understanding of a customer via profiling Similar to the ‘Persona’