- Business Model Design - The Capability Driven Roadmap · Matrix Project Market Segmentation...
Transcript of - Business Model Design - The Capability Driven Roadmap · Matrix Project Market Segmentation...
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- Business Model Design
- The Capability Driven
Roadmap PRESENTED TO BOC’S EA INFO DAY
APRIL 10TH 2014
David O’Hara
Principal Consultant , Enterprise Architects
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- About Enterprise Architects
- Designing the Business Model:
Responding to the challenge of Disruption
- Creating a Capability-Driven Roadmap
- EA Case Study & Tool Demo
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Introduction
› 20 years in Business-facing roles in the IT industry, mostly
private sector
» Telco, Retail, FS…
› Principal Business Architect (EMEA) at Enterprise
Architects
» Architecture practitioner & trainer
› Specialising in Business Architecture over 9+years
» Business Engagement
» Business Motivation
» Capability Driven Planning
» Enterprise Roadmaps
» Building EA Practices
@DaveO_EA
@enterprisearchs
David O’Hara
› Enterprise /
Business
Architect
#EAID2014
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Enterprise
Architects
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About
Enterprise
Architects
› Enterprise Architects (EA) is an
international professional
services firm providing strategy
& architecture services.
› Our vision is to be the most
respected specialist architecture
organisation globally, setting new
standards for effectiveness in
strategy execution.
› Our core value proposition is to
help clients unlock the value of
their investments using the
principles of architecture.
› We believe that architecture is
important and, when done well,
will profoundly improve
corporate performance.
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Our Services Enterprise Architects is a dedicated team of architecture specialists
• Exclusive Chief Architect/CTO Round
Tables
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Collaboration
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Architects
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Training & Mentoring)
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Solving Topical Issues
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Solution Architecture
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Support
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Development
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www enterprisearchitects.com
youtube.com/user/EntArchitectsEA
@enterprisearchs
facebook.com/enterprisearchitects
enterprise-architects
…join the discussion!
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Responding to the challenge of
Disruption
Designing the
Business Model
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Overview
› Change is the only constant…..…..so what else is new?
› In the Digital economy, both the PACE of change and IMPACT of change are
increasing: market disruption, driven by digital innovation, is occurring more
frequently and with greater effect
» New players, differentiated offerings, new Business Models….
› For CIOs and Chief Architects, working at the Operating Model layer is not
sufficient to respond to these external challenges
› Architecture needs to evolve: from Operating Model design to Business Model
design
The challenge facing Enterprise Architecture: to re-design Business Models
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‘Enterprise Lifecycle's
2014 © Enterprise Architects PTY LTD
PER
OR
MA
NC
E
TIME
ENTERPRISE
BRAND PLATFORM
BUSINESS MODEL
BUSINESS COMPETENCIES
PRODUCT
Change is moving faster…and the Business
Model shelf-life is shrinking
Who is best placed to respond to this challenge? …so Business Models become ‘stale’
and must be renewed
As what was once innovative
becomes commoditised, value
discipline orientation changes…
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Enterprises must learn how to design and
execute Business Models
› Architects deeply understand both Business Capability AND Technology…
› ….and how they can be remodelled around changes in business strategy
Enterprise Architecture
Who is best placed to understand and respond to this
challenge?
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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
Architecture requires a balance of thinking styles
The challenge is identifying the right skills in the organisation that are able to traverse
the domains of innovative, intuitive thinking and reliable, analytical thinking.
NPV
EVA
Operation
Management
Quality
Management
Corporate
Governance
Enterprise
Patterns
Portfolio
Analysis
IT Governance
Value
Engineering
PRINCE2
Six Sigma
& Lean
Business
Intelligence
Strategic
Traceability
Financial
Modelling
Innovation
Management Business
Analysis
Data
visualisation
Talent
Management
System
Thinking
Mission
Business
Model Design
Stakeholder
Value
TOGAF
Cost
Engineering
Solution
Architecture
Knowledge
Ecosystem
Six
Thinking
Hats
Collective
Intelligence
Gamification
Crowdsourcing
Change
Management
Perception
Management Wicked
Problems
Environmental
Scanning
Brand
Management
Integrative
Thinking
Goals
Capability
Five Forces
Root Cause
Analysis
Product
Management
Search for
“The EA Headspace”
Business
Architecture
Our Focus Areas
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Vision
&
Mission
Design
Thinking
Business
Outcomes
Value
Systems
Innovation
Systems
Thinking
Coherence
Business
Model
Prototyping
Capabilities
Visualisation
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What is a Business Model?
Some Definitions
› “A Business Model is a set of activities which a company performs, how it performs them, and when it performs them, so as to offer its customers value whilst making a profit”
› Business Models – A Strategic Management Approach
› “A Business Model describes the rationale of how an organization creates, delivers, and captures value”
› Alex Osterwalder – Business Model Generation
› “A Business Model is a framework for creating value in a coherent manner” Craig Martin, Chief Architect @ EA
Valu
e
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
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The goal of a good
Business Model is to
create coherence Building coherence requires an understanding of
the components of a Business Model, and how to
assemble them in a manner that is innovative
and differentiating whilst maintaining stability.
› 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
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
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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 all these components must exist regardless of their maturity level
One of the ways we create coherence 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
coherence
Mission
Strategies
Tactics
Vision
Goals
Objectives
Outcome
CAPABILITY
People
Process
Technology
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Typical architecture practice maturity
EA = IT Architecture
Improve project
performance
EA = Enterprise-Wide
IT Architecture (EWITA)
Improve IT performance
EA = Business Architecture (BA)
+ EWITA
Improve Business Performance
EA = Strategic Enabler +
BA + EWITA
Improve Market Performance
(Shareholder Value)
Valu
e
Mandate
EA = Product Architecture + Business
Architecture (BA) + EWITA
Improve Product/Service Performance
E
A B
C
D
The majority of organisations today
sit approximately here on this curve
*Adapted from Ruth Malan, Dana Bredemeyer
Business Architecture is seen
as a positive progression
away from IT
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What is Business Architecture?
› We like to refer to it as “the Design of Business”
› It is about giving strategic business objectives greater clarity and structure by
describing how they translate into operations.
› The goal of Business Architecture is to operationalise business strategy,
thereby helping business leaders avoid a risky leap directly from strategy to
specific project investments.
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Positioning Business Architecture
Business Architecture must connect strategy to business and IT change
Business Architecture
Strategy
Implementation
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En
terp
rise
Arc
hit
ect
ure
Outcomes
Business
Architecture
is an integral
part of the
Enterprise
Architecture
Business
Information
Applications
Technology
SER
VIC
ES
› Business Architecture provides the crucial business context for the ‘technical’ layers, aligning architecture ‘services’ to provide coherent business outcomes
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The contribution of Business Architecture relates to the
mandate….
EA = IT Architecture
Improve project
performance
EA = Enterprise-Wide
IT Architecture (EWITA)
Improve IT performance
Valu
e
Mandate
A B
Application
Architecture
Application and Integration
Architecture
Technology
Architecture
The Capability Anchor
Model
Roadmaps and
Migration Planning
Mandate = IT OPTIMISATION
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…and views and viewpoints will be different….
Valu
e
Mandate
The Capability Anchor
Model
Mandate = BUSINESS OPTIMISATION
EA = Business Architecture (BA) + EWITA
Improve Business Performance C
Org. Structure
Required to Fulfil
P
RO
G
R
A
MM
E
C
OM
M
I
T
TE
E
PROVI
SI
ONI
NG
ProjectResources(Technical)
ProjectResources(Functional)
Specialists
ProjectA
ProjectB
ProjectC
SHARED AND ADMINISTRATIVE SERVICES
NationalAccounts
SmallBusiness(value
segment)
SmallBusiness
(cost segment)
IndividualConsumer
CEO
Mkg.
Dist.
CEO
SalesMkg.Product
Design
COO
.
Manage
Customer
Relations
Manage and deliver content
IT Design and DevelopmentBusiness Unit - serving Corporate A
Business Unit – serving end users
Business Unit - serving content providers
Marketing for
Tomorrow’s:
Marketing for
Today’s:
Marketing
Matrix
Project
Market
Segmentation
Virtual
Time Based
Reconfigurable
Company structures
around market
segment
Focus on core and
outsource the rest
Dual organisations
one unit focusing on
tomorrow, one on
today
Dual reporting lines
with shared services
servicing all
business units
Project teams are
created based on
shif ting strategies.
Permanent functional
structure exists.
Specialists and
functional staf f
combine to form
project teams
Strategic & Project Investment
Priorities and Focus Areas
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)
Ref Capabilities# In-flight
Initiatives% Gap
C14Sales Planning and
Management9 0%
C15 Sales Execution 6 0%
C30 Network Development 6 0%
C3 Plan to Realise 5 11%
C10Channel Strategy
Management4 25%
Ref Capabilities# In-flight
Initiatives% Gap
C17 Customer Service 9 0%
C34 Track and Trace 4 0%
C45Information, Knowledge
& Systems Delivery2 14%
C43People Day-to Day
Management4 40%
Ref Capabilities# In-flight
Initiatives% Gap
C1Research, Analysis &
Insights4 50%
C8 Market Planning 3 60%
C13Business Performance
Management4 75%
C2Corporate Vision &
Strategy Management2 100%
C5Acquisition and
Divestment2 100%
C40 People Planning 4 100%
C48Asset Lifecycle
Management3 100%
Ref Capabilities# In-flight
Initiatives% Gap
C44Finformation, Knowledge
& Systems Planning11 63%
C45Information & Knowledge
Governance11 67%
C41 Recruit & Retain People 5 21%
C4 Innovation Management 3 100%
C51Supplier Relationship
Management2 100%
Strategically ImportantYES NO
Cost/ Value/ Asset Apportionment
across the business Realisation Tactics
Software
Automation
Projects
Funds
investment
Widget
assembly
Credit card
approval
Inventory
Management
Outsourcing
Projects
Major re-
design
projects
Six-sigma
based process
improvement
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 ef forts
that focus on people
Straightforward, static
commodity
processes: use
automated ERP-Type
applications and / or
outsource
Straightforward,
static, and valuable:
automate to gain
ef f iciency
High
Hig
h
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
Pro
ces
s C
om
ple
xity
an
d D
ynam
ics
Complex negotiation,
design, or decision process
Many business rules;
expertise involved
Some business rules
Procedure or simple
algorithm
Capability Maturity Overlay Process Maturity Assessment
Key Points & Assumptions
The average process maturity across the enterprise is 2 . 3
62 % of activities have a process maturity of Adhoc or Repeatable
Process Areas Manage Information Knowledge & Systems and Pan have the lowest average process maturity – 1 . 7 and 1 . 8 respectively
95 Level 4 activities ( 22 %) have been classified with a Level 1 maturity ( adhoc – minimal to no development of process and procedure )
Methodology and Approach :
The Process Owners classified the process maturity of the level 4 activities within their designated process area .
Results were validated by practitioners out in the business
Activities were classified against the Carnegie Mellon Capability Maturity Model ( CMM ) The CCM split maturity five categories ( see table below ) ranging from Level 1 ( adhoc ) to Level 5 ( best practice )
The average process maturity for each process area ( plan , market , etc.… ) is a linear average of the supporting level 4 activities . i . e . all processes have equal weightings .
1 . PROCESS MATURITY FINDINGS
Source : Process Maturity Assessment conducted by the Process Owners
62 % of Posts processes are underdeveloped and potentially impacting business
1 . PROCESS MATURITY FINDINGS
Source : Process Maturity Assessment conducted by the Process Owners
The lowest capability maturity exists in Information , Knowledge & Systems and Plan Process Maturity Classification
Level 1
Adhoc
Level 2
Repeatable
Level 3
Defined
Level 4
Managed
Australia Post has
minimal to no
development of
processes and
procedures across the
organization .
Australia Post has
established basic
processes and
procedures which are
repeatable across the
organization
Australia Post has
defined all processes
and procedures which
are standardized and
integrated across the
organization .
Australia Post has
defined key
performance
indicators which are
used to manage and
measure process and
procedural
performance .
Level 5
Best Practices
Australia Post has
adopted leading
practices and an
approach for continual
process improvement .
Level 1 Adhoc
Level 2 Repeatable
Level 3 Defined
Level 4 Managed
Level 5 Best
Practice Total
Average Process Maturity
Plan
Fulfil
Info , Knowledge & Systems
People
Finance
Assets & Services
Market
Customer
Totals
24 28 5 5 0 62 1 . 85
18 22 52 14 0 106 2 . 85
24 22 7 0 0 53 1 . 68
6 38 11 2 1 58 2 . 21
2 5 13 17 12 49 3 . 65
5 25 5 5 1 41 2 . 32
12 8 4 7 0 31 2 . 19
4 24 2 3 0 33 2 . 12
95 172 99 53 14 433 2 . 35
22 % 40 % 23 % 12 % 3 % 100 %
Maturity Assessment Summary
62 % of activities are underdeveloped ( not defined )
12 %
23 %
40 % 22 %
3 %
Level 1 – Adhoc , 95 , Level 2 –
Repeatable , 172 ,
Level 3 – Defined , 99 ,
Level 4 – Managed , 53 ,
Level 5 – Best Practice , 14 ,
The processes supporting the enterprise are on average repeatable – i . e . they are not standardised across the enterprise
Opportunities to improve efficiency exist through
standardising and streamlining processes
Plan and Manage Information Knowledge and Systems have the highest room for improvement
0 . 0
1 . 0
2 . 0
3 . 0
4 . 0
5 . 0
1 . 8 2 . 2
2 . 6 2 . 1
3 . 7
2 . 2 1 . 7
2 . 3 2 . 3
Plan Market Fulfil Interact with Customer
Manage Finance
Manage Information , Knowledge & Systems
Manage People
Manage Assets & Services
Total
Level 1 – Adhoc ( 1 )
Level 2 – Repeatable ( 2 )
Level 3 – Defined ( 3 )
Level 4 – Managed ( 4 )
Level 5 – Best Practice ( 5 )
High room for
improvement
Avg . Process Maturity
Loss of coherence Across the
Transformation Programs
Opex vs.. Effort to
Increase Efficiency
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…relative to the concerns of different stakeholders Valu
e
Mandate
Mandate = STRATEGIC OPTIMISATION
EA = Strategic Enabler + BA + EWITA
Improve Market Performance (Shareholder Value)
EA = Product Architecture +
Business Architecture (BA) + EWITA
Improve Product/Service Performance
E
D
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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
Our Findings: ownership gap For Business Architecture, lines of responsibility are often unclear
Business Ownership
Strategic Architecture Mandate
–
IT Ownership
IT Architecture Mandate –
Unresolved
Business Architecture Mandate ?
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Views and Models Supporting the Mandate
› 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
Mand
ate
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So how do we respond?
› If the goal of EA is to create coherence not just at the Operating Model level but
at the Business Model level, EA must:
› Learn and apply new skills…start thinking like Business Designers!
› Elevate the discussion with the business from the Operating Model level to the
Business Model level
» First and foremost, communicating in the language of the business
» Embracing business strategy concepts
› Engaging the Business and ‘prototyping’ new business models
» Using the right tools for the job: the Business Motivation Model and the Business Model
Canvass, not just the Capability Model
Responding to the disruption challenge and ownership gap
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› To unlock the full potential of Architecture, the
mandate needs to increase away from the
Operating Model level
Responding to Disruption means changing the mandate for Architecture
Summary
› The Business model lifecycle is shrinking!
› Enterprise Architecture must equip the CIO to
engage other ‘C’ level stakeholders around the
concept of Enterprise Design (i.e. not
architecture)
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› As the pace of change and impact of disruption increase, and the ‘shelf life’ for Business Models decreases, we will see emerging demand for Enterprise Design skills
› To support this demand, the mandate of EA must increase to be about creating coherent Business Models
› However, we won’t be asked: EA has the opportunity to ‘step up’ and lead The Design of Business: but we must consciously move away from the Operating Model level and develop the competencies to redesign and prototype new business models
Our universe is expanding…
Putting it into
perspective
You are here
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End of part one….!
Thanks
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Approach and Case Study
The Capability-
Driven Roadmap
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Failure points between strategy and
implementation In navigating between strategy and execution there are multiple possible failure points
STRATEGY PROGRAMMES
Strategy not sufficiently
tied to operations
Needed capabilities not
properly understood or
measured
Planners not accountable
for delivery
Benefits aren’t
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 programmes?
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 programmes?
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STRATEGY PROGRAMMES
Strategy not sufficiently
tied to operations
Needed capabilities not
properly understood or
measured
Planners not
accountable for delivery
Benefits aren’t
quantified or traced
back to original goals
The drivers of strategy
are often misaligned
Addressing the failure points between strategy
and implementation
› To address these failure points we should focus on the following three areas:
1. Creating a clear view of the goals, value drivers and corresponding levers that drive the strategy
2. Clearly linking the strategy to operations through capabilities
3. Establishing the resources that are needed by the capabilities and ensuring business architects provide oversight at portfolio level
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Developing the Capability Driven Roadmap
The Challenge: creating traceability from strategy to implementation
Transitioning
Capability uplift delivered in
increments through business &
technology change
Technology decisions must be
traced back to a business
objective via the capabilities
they enable
Motivations Business
Model
Capability
Model
Maturity &
Gaps
Target
Architecture
Current
State Arch.
Work
Packages
‘Anchor Models’
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What is the Business Motivation Model? The BMM is a Blueprint to help develop the Business Architecture, and provides a
consistent language to articulate business strategy
The BMM is a construct
for developing business
plans, but is not in itself
a methodology. The
BMM structure
supports the
progression from Vision
to a set of concrete
Goals and Objectives
Mission
Strategies
Tactics
Vision
Goals
Objectives
Outcome
CAPABILITY
People
Process
Tools
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What is a Capability?
› An ability that an organization, person, or system possesses. Capabilities are typically expressed
in general and high-level terms and typically require a combination of organization, people,
processes, and technology to achieve. For example, marketing, customer contact, or outbound
telemarketing. – The Open Group
› The power or ability to do something – Oxford English Dictionary
› Measure of the ability of an entity (department, organization, person, system) to achieve its
objectives, specially in relation to its overall mission. – Business Dictionary
› The ability to perform or achieve certain actions or outcomes through a set of controllable and
measurable faculties, features, functions, processes, or services. – Wikipedia
Some Definitions
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Identifying Capabilities
› All enterprises have ‘capabilities’ – they are the fundamental business outcomes of
the enterprise
» Capabilities are the things the enterprise must be able to DO in order to fulfil its mission
› Capabilities will tend to persist over time
» what changes is the way in which the capability is fulfilled (the ‘How’), who is fulfilling the
capability, where it takes place and their importance to the business strategy
› Capabilities are expressed as outcomes and should be agnostic of technology,
product, organisational unit, etc.
» Meaning the same capability could be performed by different organisation units or in different
contexts, potentially in different ways
Some Guidelines
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Linking Business and IT Architectures
Business Architecture will define the capabilities required to realise and sustain the business
strategy. IT Architectures will help to enable these capabilities.
CUSTOMER
PRODUCT
PROCESS
PEOPLE
APPLICATIONS
DATA
INFORMATION
TECHNOLOGY
Business Architecture
Information Technology Architecture
CAPABILITY
People
Process
Tools
Requires
Uses
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Case Study Capability Model transposed into ADOit
Business Capability Model
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Mapping Capabilities to Applications & Technology
Core
Retire
Emerging
Contain
Legend
High Business Fit
Medium Business Fit
Low Business Fit
Emerging - Potentially High relevance, processes and ecosystem still developing Application - this application has identified potential to change the cost/value, efficiency/effectiveness of our services, and we are at a point where work is required to achieve that potential, proof of concept/initial deployments are Underway or completed. Financial - there is an investment cycle with a strong ROI, though possibly with benefits outside of the immediate project. Organisational - this will assist in supporting our organisational maturity goals through improving process, skills, readiness and/or capability. Design patterns are actively being developed or refined. Usage & Governance – Projects may consider using these applications where there is justification. However projects must be aware that service management organisation, tools and processes will likely be immature. Projects promoting the use of “Invest” applications must seek adoption signoff from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture before commitment to use can be assumed. Core - High relevance; processes and ecosystem in place Application - this is a fundamental and valuable application and is the current standard. It is well understood and there is no risk in attempting to extract ongoing value from its use. Financial - costs are known and understood. There is good ROI for maintenance; either upgrading early or leap-frogging some upgrade steps. Cost models clearly identify the whole service stack and components are managed to the whole service. Organisational - all staff in the support pyramid(s) understand the key controls and SLAs around this application. There is no tinkering, instead there is a process for continuous improvement. Usage & Governance – Projects should specify the use of Core Applications where available in the knowledge they are fully supported by service management and operational capabilities. Contain - Falling relevance; ageing processes and ecosystem Application/Financial - this installation is not to be extended in use. Where possible changes will not occur to the existing environment - it is to be allowed to age towards sunset with minimal additional spend. Organisational - Operations and security levels are to be maintained, there needs to be a process to manage changes required for continued operation, and to keep skills for the duration. Lifecycle Management - A replacement strategy, if required, must be in place for all applications with this status. Usage & Governance – Projects should generally avoid use of Contain Applications as they are invariably subject to near or medium term sunset. Any circumstance which promotes extended use of Contain applications must be seek exemption from <Insert Appropriate Governance Authority> before commitment to use can be assumed. Retire - Avoidance; specialist (non-core) resources and processes required to keep in the environment Application/Financial - Spend and change must only occur as part of projects that assist in removal of this application. Organisational - All change requires formal approval from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture, which will only occur where it contributes towards Retiring the application, or meets a mandatory requirement due before exit is complete. Lifecycle Management - Applications which cannot readily be removed will be ring-fenced. If this approach is taken, design patterns must exist for working with the application. Usage & Governance – Must avoid use of Exit Applications as they are subject to defined decommissioning strategy. Any circumstance which promotes extended use of Exit applications must seek exemption from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture before usage approval can be given.
High Technical Fit
Medium Technical Fit
Low Technical Fit
Emerging
Contain
Core
Retire
Color Description
Application Status
Legend
Enterprise Resource Planning (ERP)
Sales Order
Management
Manufacturing
(Info Tech)
Distribution
Management
Financial Management
Enterprise
Asset
Management
24 SAP 44 JDE
44 Oracle EBS 33 PeopleSoft E1
Warehouse
Management
44 JDE
44 Oracle EBS
33 PeopleSoft E1
44 Oracle EBS
33 PeopleSoft E1
24 SAP
24 SAP 44 JDE44 Oracle EBS
44 JDE
44 JDE
22 MFG/Pro
33 PeopleSoft E1
13 MYOB
Purchasing
44 JDE
44 Oracle EBS
33 PeopleSoft E1
Inventory
Management
44 JDE
24 SAP
44 Oracle EBS
Quality
Management
22 MFG/Pro
44 JDE
24 SAP
22 MFG/Pro
Manufacturing (Operational
Technology)
44 Rockwell
24 SCADA
24 SAGE
24 SAP
33 BACS
24 SAP
Supplier
Relationship
Management
(SRM)
Strategic
Sourcing
Supplier
Management
24 SAP SRM
33 PeopleSoft E1
34 SAP SRM
12Supplier
Manager
22 MFG/Pro
42JDE Supplier
Management
33 PeopleSoft E1
Product Lifecycle
Management
(PLM)Product
Portfolio
Management
44 Oracle EBS
Ideation &
Concept
Management
New Product
Development
55 PLM
Materials
Formulation &
Products
55 PLM
Supply Chain Planning (SCP)
Demand
Planning
Production
Planning
Supply
Planning
22Demand
Planner31
Demand Supply
Tool
Materials
Planning
44 JDE
Capacity
Planning
Business Plan
Optimisation
Enterprise Performance Management (EPM)
Planning &
Budgeting
Business IntelligenceKnowledge
Management
Management Reporting
Operational Reporting
44 JDE
23 COGNOS 23 COGNOS44 Oracle BI
33Business
Objects
44 Oracle BI
24Management
Reporting24 Hyperion
34 Sharepoint
44 Oracle ECM
23 KMI
Human Resource Management (HRMS)
Recruitment
Management
Rewards ManagementWorkforce
Management
Organisationa
l Development
Management
23Expense
Management
23 Oracle Payroll
33Performance
Review
23 ALESCO
34 PeopleSoft
23Annual Leave
Request
23 Chris 21
24 SAP Payroll
13 Chris Payroll
Time &
Attendance
34 CRONOS
34 Tracker
34 T&A
34 Secure
24 SAP
44 Oracle EPM
Customer
Relationship
Management
(CRM)
Partner
Management
Customer
Service
Management
Trade
Promotions
Management
Field
Management
13 TPM
23 SFA
33 SAGE
13 Field Manager
After Sales
Service
43 Oracle SRM
Consumer
Management
(CM)
Consumer
Sales
Management
Consumer
Marketing
Management
Consumer
Service
Management
Retail
Management
Customer
Sales
Management
Customer
Marketing
Management
23Campaign
Manager
34 Spaceman
34 After Sales
24 Retailer
13 Job Manager
55 PPM
23 Hyperion
23 Planner
44 Oracle WCM
44 Oracle EBS33 PeopleSoft E1
22 MFG/Pro
22 MFG/Pro
Emerging
Contain The Logical Architecture
groupings create traceability
back to the Capability Model.
An assessment of the overall
Application Lifecycle status
denotes whether an
application is emerging, core,
end-of-life, etc.
An assessment of Business Fit
indicates the degree of
alignment with the
application’s business users.
The technical health of the
application provides a simple
indication of whether the
application is stable and
performing to SLA.
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Current State and Target State Application Architecture views in ADOit
Mapping of Capabilities to Applications
Transition
Plan ?
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Transition Plan Capability Increments & Dimensions
Capabilities
Capability Increments
People Dimension
Individual Training
Collective Training
Professional Development
Process Dimension
Concepts
Business Processes
Information Management
Material Dimension
Infrastructure
Information Technology
Equipment
Objectives
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Delivering Strategic Architecture
ACL
Austraclear Exigo
BAF
Bloomberg
Cashflow Reporting
ComBizCorporate Online
HED
Navision (AP)
Navision (AR)Navision (Assets)
Navision (Cash Management)Navision (GL)
Navision (PO)
Navision (Project Costing)Navision (Resource Costing)
NemPower - NemFuture
Procuregate
ProcureMax
SmartData Online
Visual Risk
FleetWatch
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Bu
sin
ess
Val
ue
IT Value
Application Portfolio View (Finance & Treasury Systems)Business Value vs IT Value
Keep MaintainingUpgrade Technology
Leverage TechnologyRetire or Replace
Business Median
IT Median
Creating traceability from strategy to implementation
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The Roadmap Viewpoint
Viewpoint Element Description
Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Portfolio and
Programme Managers, Project Managers, Organisational Change Management
Concerns: • How are my strategic objectives being realised through my architecture and
program of work?
• What are the changes between the current state and the future state of the
architecture?
• What is my current investment roadmap to achieve the required changes?
• Where are the dependencies across the program of work?
View Description: Provides a view of the amalgamated means to end chain describing the strategic
capability direction for the organisation, and the associated transition plan required
to realise the vision. The primary intent of the roadmap is to inform the detailed
program of work. It is not the intent of the roadmap to be an executable program but
a key input into the defining the detailed program of work.
Metamodel Concepts Mission, Vision, Goals, Strategies, Objectives, Drivers, Assumptions
Capabilities, Roles, Process, Logical application, Logical technology, Risk
Model The EA Roadmap Model
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EA Delivery Roadmap
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An Overview of Roadmap › The strategic context for the
organisation. This looks to
describe the program vision,
goals, objectives.
› The outcomes of the program
streams are mapped to the
business objectives providing
traceability from program
initiatives to strategic
objectives.
› Architecture principles provide
rationale and context for the
target state.
› The strategic initiatives
designed to realise the target
state. Any cross- program
dependencies are identified.
A view of the current state technology
landscape, highlights issues and gaps
across the technology landscape.
The outcomes of the program streams are
mapped to the corporate risk register
providing visibility of risks addressed by the
program.
› The intended target state
provides visibility of where the
program will land. This section
will demonstrate an increase in
business capability and a
simplification of the technology
landscape.
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Case Study &
ADOit
Tool Demo
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› Global Professional Services firm with offices in many countries
› Recent merger has created two ‘centres of gravity’ in London (North) and Sydney (South)
› Replication across the IT estate, with examples of good and bad in both North and South territories
› Need to find an approach that identifies common, shared capability (which can be backed up with
investment in Global/ERP type systems) and local market ‘uniqueness’ required to address the needs of
local clients (potentially enabled through local instances or market specific apps)
› Business Motivation Model and Capability-driven planning were used to set goals and objectives at
group level, evaluate options and gaps at global and local level and build a capability-driven roadmap
» A core of common capabilities were identified providing the Global ‘footprint’
» Local market variations were evaluated at capability level
» A roadmap was created to enable new and changed capabilities and to deliver the Global IT backbone
Goal: Create a global Operating Model balancing global capability with local agility
Case Study
Clients: Build long term
relationships
Platform: Increase workflow by having E2E execution
capability in key practices & markets
Lead the Market:
Become the leading professional services
firm in APAC
Service Excellence:
To focus our business on what matters
most to our clients
Service Transformation Deliver business
services that support the needs of a Global
business
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www.enterprisearchitects.com
Thank You
| DOCUMENT T ITLE | ENTERPR ISE ARCHITECTS © 201 3 50
Our Locations
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References and Acknowledgments
› The Dimensions of Digital Disruption
» Mark P McDonald, Gartner
› The Innovator’s Dilemma
» www.claytonchristensen.com
› The Business Model Innovation Factory – how to stay relevant when the world is changing
» Saul Kaplan
› Alexander Osterwalder – strategiser
› Gartner Hype cycle for Enterprise Architecture 2013
› Customer CEO
» Chuck Wall
› Digital Disruption – unleashing the next wave of innovation
» James McQuivey
› Discipline of the Market Makers
» Treacy & Wiersma
› The Business Motivation Model
» Object Management Group
These people and ideas have helped shape our thinking