business models and capability driven roadmaps

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| DOCUMENT TITLE | ENTERPRISE ARCHITECTS © 2013 1 - Business Model Design - The Capability Driven Roadmap PRESENTED TO BOC’S EA INFO DAY APRIL 10 TH 2014 David O’Hara Principal Consultant , Enterprise Architects

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The challenge facing Enterprise Architecture. The impact of digital disruption means the shelf life of business models is getting shorter. Enterprise architecture must learn the skills to move away from the operating model layer and elevate architecture to the level of business model design.

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Page 1: Business Models and Capability Driven Roadmaps

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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

Page 2: Business Models and Capability Driven Roadmaps

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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

Page 3: Business Models and Capability Driven Roadmaps

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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

Page 4: Business Models and Capability Driven Roadmaps

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Enterprise

Architects

Page 5: Business Models and Capability Driven Roadmaps

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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.

Page 6: Business Models and Capability Driven Roadmaps

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Our Services Enterprise Architects is a dedicated team of architecture specialists

• Exclusive Chief Architect/CTO Round

Tables

• Virtual Teaming & Practitioner

Collaboration

• Industry Groups & Focus Events

• Practitioner Communities

• Career Support & Advice

• ‘Lifetime Relationship’ Commitment

• Contract, Perm & Interim Recruitment

• Interim Leadership

• Executive & Retained Search & Selection

• Candidate Assessments by Qualified

Architects

• Contract Staff Backed by I/P

• Supplied Staff Trained to TOGAF® 9

• HR Career Management

• Flexible Workforce Planning and Delivery

• TOGAF® Certification

• ArchiMate®

• Advanced & Applied EA

• Business Architecture

• Information Management &

Governance

• EA Kickstart (Combined Consulting,

Training & Mentoring)

• Customised Private Training –

Solving Topical Issues

• IT Strategy Delivery

• Blueprint & Roadmap Development

• Consulting, Advisory & Mentoring

Services

• Enterprise, Business, Technical &

Solution Architecture

• Practice Capability Development

• Maturity Assessments

• Governance Risk & Compliance

• Framework & Tool Selection and

Support

• Repository Management

Training &

Development

Talent Services Knowledge

Community

Consulting

Services

Page 7: Business Models and Capability Driven Roadmaps

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www enterprisearchitects.com

youtube.com/user/EntArchitectsEA

@enterprisearchs

facebook.com/enterprisearchitects

enterprise-architects

…join the discussion!

Page 8: Business Models and Capability Driven Roadmaps

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Responding to the challenge of

Disruption

Designing the

Business Model

Page 9: Business Models and Capability Driven Roadmaps

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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

Page 10: Business Models and Capability Driven Roadmaps

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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…

Page 11: Business Models and Capability Driven Roadmaps

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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?

Page 12: Business Models and Capability Driven Roadmaps

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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

Page 13: Business Models and Capability Driven Roadmaps

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Vision

&

Mission

Design

Thinking

Business

Outcomes

Value

Systems

Innovation

Systems

Thinking

Coherence

Business

Model

Prototyping

Capabilities

Visualisation

Page 14: Business Models and Capability Driven Roadmaps

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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

Page 15: Business Models and Capability Driven Roadmaps

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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

Page 16: Business Models and Capability Driven Roadmaps

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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

Page 17: Business Models and Capability Driven Roadmaps

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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

Page 18: Business Models and Capability Driven Roadmaps

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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.

Page 19: Business Models and Capability Driven Roadmaps

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Positioning Business Architecture

Business Architecture must connect strategy to business and IT change

Business Architecture

Strategy

Implementation

Page 20: Business Models and Capability Driven Roadmaps

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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

Page 21: Business Models and Capability Driven Roadmaps

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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

Page 22: Business Models and Capability Driven Roadmaps

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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

Page 23: Business Models and Capability Driven Roadmaps

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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

Page 24: Business Models and Capability Driven Roadmaps

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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 ?

Page 25: Business Models and Capability Driven Roadmaps

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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

Page 26: Business Models and Capability Driven Roadmaps

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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

Page 27: Business Models and Capability Driven Roadmaps

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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)

Page 28: Business Models and Capability Driven Roadmaps

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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

Page 29: Business Models and Capability Driven Roadmaps

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End of part one….!

Thanks

Page 30: Business Models and Capability Driven Roadmaps

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Approach and Case Study

The Capability-

Driven Roadmap

Page 31: Business Models and Capability Driven Roadmaps

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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?

Page 32: Business Models and Capability Driven Roadmaps

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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

Page 33: Business Models and Capability Driven Roadmaps

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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’

Page 34: Business Models and Capability Driven Roadmaps

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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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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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www.enterprisearchitects.com

[email protected]

Thank You

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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