business architecture: state of the practice update...• used business architecture to reverse...
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Business Architecture: State of the Practice Update
William Ulrich President, TSG, Inc. / President, Business Architecture Guild [email protected]
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Why Business Architecture: Three Pillars of Value • Root Cause Analysis
• Determining why something has gone wrong
• Planning Visibility
• Understanding the impacts and implications of a given strategy and related plan
• Transformation Roadmap Creation
• Business-driven transformation drives initiatives from a business, not an IT perspective
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Defining Business Architecture • Business Architecture:
• “A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands.”
Source: OMG, Business Architecture Special Interest Group (http://bawg.omg.org)
• Consider: • Blueprints provide various ways to view the business
• These views provide a shared understanding through common vocabulary, stakeholder views, value delivery views
• Common viewpoints expedite situation and issue analysis, resolution analysis and deployment planning
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Importance of Blueprints
Copyright © Tactical Strategy Group, Inc. 2011
Titanic’s crew used ship’s blueprint (in the movie version) to determine extent of ship’s damage
Rapid situation analysis, made possible through the ship’s blueprint, resulted in an order to abandon ship
Captain and crew were not architects and could not design a ship, but they could visualize the root of their problem – via the blueprint
Business blueprints provide executives with these same opportunities
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Business Architecture in Practice
• Depicts a business-driven view of business architecture • Primary focus is on bringing transparency to the root cause of business
issues and suggest possible resolution options
We’re losing customers
It’s impacting every line of business
“Welcome to the world of business architecture”
Business Architect
And we need you to find out why and
recommend options
Our competition has passed us by
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Initiatives & Projects
Customers, Partners &
Competitors
Products & Services
Vision, Strategies & Tactics
Metrics & Measures
Policies, Rules, Regulations
Decisions & Events
Business Architecture – Bringing Transparency to Business
Capabilities
Information
Value Streams
Organization
Comprehensive, transparent view of the business ecosystem
Source: Business Architecture Guild Body of Knowledge (BIZBOK™)
Who? & Where?
Why?
How?
How Well?
What?
When? & Where?
Why?
How?
Who? & Where?
What?
What?
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Capabilities define “what” a business does
Four Cornerstones of Business Architecture
• Four cornerstones establish foundational business architecture
Organizational transparency enables business / transformation
Value streams define how business delivers end-to-end
stakeholder value
Business Information Concepts define the
language of the business
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Information Map
Capability Map
Acquire Product
Assess Risk /
Eligibility
Approve
Request
Establish
Account / Policy
Process
Payment
Onboard
Applicant
Validate
Application
Notify
Customer
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Benefits of Business Architecture • Delivers transparency and clarity to enable issue analysis and
resolution
• Delivers common business vocabulary to assess impact of objectives, establish priorities and articulate business requirements
• Provides holistic view of a business that extends across outsourcing, customer and partner domains
• Business architecture extends beyond the bounds of an enterprise
• Allows a business to own and drive transformation strategies from a business (not technology) perspective
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What Has Business Architecture Delivered to Organizations?
• Used business architecture to reverse customer attrition, shift to customer-centric business model. – Major Insurance Company
• Used business architecture to streamline a merger with another firm – Major Pharmaceutical
• Used business architecture to determining amount of deployed redundancy and streamlining that redundancy – Major Bank
• Used business architecture for alignment of strategic goals and objectives with decisions regarding products and services; partners and suppliers; organization; capabilities; and key initiatives. – Satellite Manufacturer
• Used business architecture to articulate business objectives and priorities, define major transformation roadmap, measure success – U.S. Federal Agency
• Used business architecture to align terminology and strategies across finance and insurance divisions to leverage major initiatives such as risk rating. – Exporting Assistance Corp.
• Used business architecture to ensure that a major merger was accomplished in the most effective, innovative way. – Major Airline
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Business Architecture in Practice Who Uses it & Benefits • Financial & Insurance • Manufacturing • Transportation • Retail • Government • Pharmaceutical • Agribusiness • Not-for-Profits
Value Context • Strategic Planning, Prioritization • Customer / Stakeholder Value Delivery • Collaboration & Innovation • Business Transformation • Mergers & Acquisitions • Decoupling and Deploying Complex
Business Scenarios • Partner Alignment • Streamlining Business / IT Collaboration
Major Roadblocks • Thinking Business Architecture is
an IT Discipline • Unclear Value Proposition • Lack of IT Outreach to Business • Lack of Business Sponsorship and
Ownership • Politics and Silo-based Thinking • Vertical Initiative Funding
Best Practices • Business Sponsorship, Ownership • Business Terms, Concepts, Blueprints • Enterprise Perspective • Tied to Business Planning, Priorities • Leveraged to Deliver Actionable Strategy • Enables Business-Driven, IT
Transformation
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Major Myth: Business Architecture is About IT
Ford Motor Company
• These businesses could have mapped their business architectures at any point in their history – but there was no IT architecture back then • Historical and current business architectures would share similarities
• Therefore, business architecture can stand alone, as a unique discipline
United Airlines Nordstrom Boeing
United States Patent Office
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Value Stream: Stakeholder-Driven, End-to-End, Value Based Perspective
Value Stream
Account Pipeline
ManagementCustomer
Information Management
Account Payments
ManagementAccount
Information Management
Docket, Case File, Routing Management
Account Structuring
Account Information
ManagementAcceptance Notification
Account Structuring
Acquire LoanValidate
Application Approve Loan Issue LoanIssue Second Approval
Onboard Applicant
Process Fee Payment
Account Information
Management
Docket, Case File, Routing Management
Docket, Case File, Routing Management
Acceptance Notification
Account Structuring
Docket, Case File, Routing Management
Acceptance Notification
Account Information
Update
Docket, Case File, Routing Management
Acceptance Notification
Value Stream/Stakeholder Mapping
Value Stream/Capability Mapping Value Stream/Initiative Mapping
Value Stream/ Business Process Governance, Alignment Value Stream Framed,
Dynamic, Rules Based Routing
Product & Service
Acquire Product
Maintain Account
Accept Application
Register & Deliver Product
Manage Payment
Notify CustomerInquiry
Submit Request Apply UpdateDisseminate
RequestNotify
StakeholderPublish Change
Validate Request
Apply for Product
Exte
rnal
St
akeh
olde
rs
ea
o
des
Value Stream/Product Planning & Deployment
Value Stream/Cost & Performance Analysis
Capture & validate informationCapture & validate informationCapture & validate informationH
i-L
evel
P
roce
sses Process & Fulfill Order
Process & Fulfill OrderProcess & Fulfill Order
Acquire Product
Accept Application
Register & Deliver Product
Manage Payment
Notify CustomerInquiry Apply for
Product
Value Stream/Strategy Mapping
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Various blueprints sourced to Business Architecture Guild Body of Knowledge (BIZBOK™)
“Framework for enabling transparent transition of business
objects across an enterprise”
Capability
The Business Capability: A Gateway to Business Transparency
Partner
Partner
PartnerCustomer
Management
Claims Management
Payments Management
Account Management
Product Management
ABC Insurance
IT
Finance
Marketing
Legal Dept.
Purchasing
HR
Procurement Management
Legal Management
Financial Management
Employee Management
Investment Management
Reserves Management
Marketing Management
Information Technology
Management
Strategic Planning
Transformation Office
Collaborative Team
Collaborative Team
Collaborative Team
Collaborative Team
EnterpriseBusiness Unit
Supporting Capabilities
Customer Facing CapabilitiesStrategic Capabilities
Diagram KeyBusiness PartnerCollaborative Team
HealthDecomposes
into
Collaborates through
Enables capability
Has capability
Has capability
Has capability
Has capability
Has capability
Has capability
Decomposes into
Has capability
Has capability Has
capability
Collaborates through
Decomposes into
Has capability
Enables capability
Enables capability
Customer- Customer Name- Customer Number- Customer Address- Customer Phone- Customer Email- Customer Status- etc…
CustomerManagement
Account Pipeline
ManagementCustomer
Information Management
Account Payments
ManagementAccount
Information Management
Docket, Case File, Routing Management
Account Structuring
Account Information
ManagementAcceptance Notification
Account Structuring
Acquire LoanValidate
Application Approve Loan Issue LoanIssue Second Approval
Onboard Applicant
Process Fee Payment
Account Information
Management
Docket, Case File, Routing Management
Docket, Case File, Routing Management
Acceptance Notification
Account Structuring
Docket, Case File, Routing Management
Acceptance Notification
Account Information
Update
Docket, Case File, Routing Management
Acceptance Notification
Account ManagementAccount Pipeline Management
Offer EnablementAccount Offer Management
Account Submission Management
Account File Management
Intake Management
Rejection Management
Submission Acknowledgement
Submission Acceptance
Receipt Generation
File Creation
Account Matching
Account Customer Assignment
Account Representative Assignment
Account RoutingWorkload Balancing
Account / Worker Assignment
Offer Assistance
Initiative Improves or Creates New Capabilities
Organization/Capability Mapping
Value Stream/Capability Mapping
Capability/Information Concept Mapping
Capability/ Strategy & Business Model Mapping
Capability/Initiative Mapping
Product Management
Capability/Cost & Performance Analysis view
$ Analysis Impact Analysis Heat Mapping
Capability/Application Architecture Mapping
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Business Planning Marketing Partner Management
Capital Management Policy Management International Relations Management
Financial Management Employee Management Procurement
Information Technology Management
Training Operations Management
Account Management Product Management Channel Management
Customer ManagementAgent Representative
Management
–
Strategic
: Direction
Setting
Core
:
Customer Facing
Suppo
Various blueprints sourced to Business Architecture Guild Body of Knowledge (BIZBOK™)
Putting Business Architecture into Action
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Actionable Results
Enables Business
Architecture Articulated Via
• Organizational Alignment • Business Capabilities • Information Concepts • Value Streams
• Well articulated business priorities
• Business-driven roadmaps & funding
• Collaborative initiatives • Framework for requirements
analysis, business designs • Synchronized business-driven
IT transformation
• Mission and Vision • Policy, Rules and Regulations • Goals and Objectives • Executive Priorities • Customer Requirements • Strategy and Tactics
Business Strategy
Using business architecture requires a very different skillset than building business architecture
Business-Driven Business / IT Architecture Alignment
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IT Architecture
Business Architecture
Continuously evolving business architecture aligns to shifting business strategy, vision
Business / IT architecture alignment enables business-driven IT transformation & allows business to benefit from IT modernization
IT architecture transformation reflects business strategy, enabled by business / IT architecture mapping and alignment
Alignment & Transformation
Synchronized business / IT alignment provides integrated perspective of business and IT that drives planning and investment in IT modernization and transformation
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Business Architecture: Quickly Maturing, Wide-Spread, Here to Stay
• Business architecture today • Success stories available and proliferating
• Practitioners moving beyond myths, hype and misinformation
• Evolving body of knowledge* with growing number of contributors
• Growing automation support
• What does the future hold? • Seamless integration into business decision making
• Broader use across more business scenarios
• Increased business awareness, buy-in, ownership, sponsorship
• Top-to-bottom alignment with IT architecture transformation
• Business architecture will be routinely integrated into all aspects of business strategy and transformation
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* A Guide to the Business Architecture Body of Knowledge (BIZBOK™)
Business Architecture: State of the Practice Update
William Ulrich President, TSG, Inc. / President, Business Architecture Guild [email protected]
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