Pioneering Business Models through Business Architecture Transformation BMT 3.0 Overview.

Pioneering Business Models throughBusiness Architecture TransformationBMT 3.0 Overview

© 2015 Cordial Business Advisers AB2

Cordial’s framework for Business Architecture

Business Strategy

Business Processes

Business Models

IT

Service

ApplicationInformation

Organization Management

Q2

Q4

Q1

Q3


Cordial deploys a holistic methodology framework to analyze, innovate and realize business models.

Our approach is based on a conviction that competitive and flexible business models are deployed by grasping the significance of the entire business architecture, including industry dynamics, strategic choices and the structures underpinning a modern organization.

Cordial’s approach to defining, analyzing, innovating and realizing competitive business models has been deployed within leading companies in the telecoms, energy, banking, insurance, travel, retail and forestry industries.

We know – and consider – that sustainable results are a function of both the quality and the acceptance of the solution.

Our approach enables operational execution

R=(S,A)


Sustainable results are a function of the quality of the solution (S) and its acceptance within the deploying organization (A)

R =(S,A)

4


We compress the time to realize the desired transformation by deploying a structured and ”battle tested” approach

5

TRANSFORMATION

DESCRIBE END STATE NAVIGATE JOURNEY

Val

ue

Year1 2 3

END STATE

REALIZE EFFECTS

CURRENT STATE

Desired journey

Actual journey

Our promise

BMT enables you to lead successful transformations by deploying a structured and ”battle tested” approach that ensures:• Time compression of the journey • Time compression of effect realization by improving organizational acceptance (more people

changing working practices and behaviors)


The Business Architecture Framework creates a holistic platform for successful transformation

The need for a transformation can be triggered by many factors, e.g. changing industry dynamics and customer behaviors/needs, changes to shareholders` agendas and directives, new strategies, cost pressures or significant IT replacements.

Regardless of the triggers, a transformation has consequences for all parts of the business.

The business architecture framework helps us understand the consequences of the transformation in all relevant areas, as well as the changes needed to arrive at a new end state.


The business model is the unique structure that realizes a business idea

A business model is a conceptual tool that contain a set of components and describe their relations and interconnections in a way that makes the business logic of a specific firm visible and concrete.

It is a description of the value a business activity offers one or several segments of customers, and a description of the value the business architecture and the partner network create, market and deliver and which generates profitable and lasting revenue streams.

Processes, competences,

structuresValue proposition

Customer segments, channels, relations

Cost Profit Revenue

© 2015 Cordial Business Advisers AB

How big a transformation is necessary to realise the desired end state?

8

TRANSFORMATION


The transformation to the desired end state is the sum of the gap in each dimension of the business architecture

STRATEGY

BUSINESS MODEL

MANAGEMENT

PROCESSES

ORGANISATION

IT


ANALYSIS OF BUSINESS MODELS

INNOVATION OF BUSINESS MODELS

DESIGN OF BUSINESS ARCHITECTURE

REALIZATION OF BUSINESS MODELS

BMT3.0Business Model Transformation in four phases

ANALYSIS INNOVATION DESIGN REALIZATION


BMT3.0: Structural clarity, improved agility

ANALYSIS

INNOVATION

DESIGN

REALIZATION


High level description of the four phases


Based on a solid understanding of industry dynamics, the analysis phase builds a platform for fact based innovation.

With a structured analysis of market forces and the current portfolio of business models, we can identify key areas for innovation.

It is necessary to fully understand the strategic intent and how it may need adjustment as a consequence of the desired end state.


Successful innovation of business models presumes a deep understanding of the true needs of prioritized customer segments and how to meet these needs with attractive value propositions.

The chosen value propositions are realized through carefully crafted business models.

The new portfolio of business models must be capable of achieving the desired end state as well as delivering the overall strategic objectives.


Clearly defined strategic business requirements are the centerpiece for the effort of designing the enabling structures that will operationalize the revised portfolio of business models.

The design phase zooms in on business processes, capabilities, organization, competencies, governance models, information, IT and other infrastructure.

Based on the strategic business requirements, we describe a target architecture for the enabling structures. This becomes the baseline for design a realistic, realizable solution architecture.


Realization presumes a structured approach that understands and includes three main elements: the newly designed business architecture, the receiving line organization and the transformation organization.

The sustainable result of a business model innovation is a function of the quality of the solution and the level of acceptance among all relevant stakeholders.



Transformation of business models in four phases

Analyze the market and the competitive landscape

Verify & update the strategic intent and the desired market position

Identify and describe the current business model portfolio

Analyze the identified business models and business model portfolio

Define the desired position and strategic goals per business model

A1

A2

A3

A4

A5

Segment customers and understand their needs, behaviors

Define concrete and attractive value propositions

Identify enablers for future business models

Suggest new or redesigned business models

Detail and prioritize new and redesigned business models

I1

I2

I3

I4

I5

Define and prioritize strategic business requirements

Survey existing supporting structures

Determine the required degree of transformation in each structural dimension

Design ideal architecture

Design solution architecture

D2

D3

D4

D5

D1

ANALYSIS INNOVATION DESIGN

Build a change strategy and design its implementation

Organize and mobilize the available organizational resources

Establish structural preconditions for the change

Drive execution of the change.

Reinforce the change to secure sustainable results

R1

R2

R3

R4

R5

REALIZATION



• Market and industry analysis

• Strategic intent and desired market position

• Identified and analyzed business models and business model portfolio

• Objectives and desired end state per business model

Deliverables per phase


• Customer segmentation

• Customer needs analysis

• Crisp and attractive value propositions

• Designed and tested future business models


• Strategic business requirements

• Survey of existing supporting structures – processes, capabilities, organization, competencies, governance, information, IT support and other infrastructure

• Analysis of the necessary degree of transformation in each structural dimension based on each business requirement

• Target architecture for the enabling structures

• Solution architecture for the enabling structures


• Program directive including business case and other documentation needed for executive decisions

• Program organization

• Project plans for the various projects/initiatives

• Change strategy

• Selected methodologies and tools to drive the change program

• Realized initial change

• Sustainable change



Developing capabilities and mobilizing enablers for successful transformation of business architecture

Initi

ate

the

tran

sfor

mat

ion

Provide architectural support for the transformation

Lead the transformation

Dev

elop

cap

abili

ties

that

can

driv

e su

cces

ssfu

l tr

ansf

orm

atio

ns

Pioneering Business Models through Business Architecture Transformation BMT 3.0 Overview.

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