real business architecture transforms business
DESCRIPTION
Presented at the Open Group EA Conference in Cannes, April 2012. Introduces an expanded scope for Business Architecture incorporating Design Thinking. Provides an integrated meta model for business architecture compatible with Archimate and TOGAF 9. Techniques are from Inspired and Promis.TRANSCRIPT
© Inspired 2012
inspired!
Real Business Architecture Transforms Business
The new scope of business architecture influenced by design thinking
Graham McLeod
PROMIS
Enterprise Transformation - The Open Group Conference Cannes, France, April 23-25, 2012
1Monday 23 April 12
© Inspired 2012
Scope of Business Architecture
Place of BA in Organization
Innovation and Design
Context
Boundary and Interaction
Products/Services/Channels
Value and Emotion
Analysis Perspectives
Examples
References
http://dcolombo.com
2Monday 23 April 12
© Inspired 2012
inspired! PROMIS
3Monday 23 April 12
© Inspired 2012
Board
EXCOCECO CH CM CRCFCICA
Arc
hite
ctur
e
I.T.
Fina
nce
& A
ccou
nts
Ope
ratio
ns
Hum
an R
esou
rces
Mar
ketin
g an
d Sa
les
Ris
k an
d Se
curi
ty
Strategi
Projec
Operation
Goals,
Components,
ProceduresWork Flow
IT A
rchi
tect
ure
Posi
tion
4Monday 23 April 12
© Inspired 2012
The New England Connection
Empirical proof that EA maturity adds value
Study of 150 companies over >5 years
Identified:
Architecture maturity levels
Characteristics of each level
Maturity & Industry of organization
=> Appropriate Core Operating Models
5Monday 23 April 12
© Inspired 2012
Foundation for Execution
Adpated from: Ross, Weill, Robertson with Inspired additions
Foundation for Execution
Operating Model
Governance
Business Architecture
Application Architecture
Information Architecture
Technology Architecture
Process Architecture
Enterprise Architecture IT Engagement Model
Programmes
Projects
Service ManagementIT Governance
6Monday 23 April 12
© Inspired 2012
+ Inspired
+ TOGAF 9
Archimate 2
Core Modeling Concepts
Actors, Services, Components, Functions, Processes,
Applications, Technology Elements In
ten
t, R
eq
uire
me
nts
, Bu
ildin
g B
loc
ks,
Som
e G
ove
rna
nc
e
Risk
, Co
nte
xt, B
usin
ess
Co
nc
ep
ts, C
lien
ts,
Ma
rke
ts, C
ha
nn
els,
Bra
nd
etc
. In
form
atio
n,
Arc
hite
ctu
re G
ove
rna
nc
e, I
T En
ga
ge
me
nt,
Me
tho
ds
Eng
ine
erin
g a
nd
Ma
na
ge
me
nt
Consistent Semantics
Standard Naming
Integrated
Support Multiple Notations,Frameworks
Link to IT Engagement
Support Governance
Support Architecture Capability
Integrated Meta Models
7Monday 23 April 12
© Inspired 2012
Analysis PerspectivesFunctional
Great for blue sky, completeness, strategy => what to do
Process
Good for ensuring end to end integration to deliver services, improvement
Service
Good for reaching abstractions, keeping analysis to reasonable amount of detail, delaying implementation detail, achieving agility
Capability
Powerful to ensure all aspects are considered to achieve total end result: functions, services, resources
8Monday 23 April 12
© Inspired 2012
Motivation
Mission, Goals, Objectives
Functional
Mission, Functions, Activities
Process
Value Network, Value Chain, Process, Activities
Service
Similar to above, but focussed on what is offered to others, interfaces, hides implementation
Capability
Bit fuzzy across authors and methods. We say it is “an ability to deliver something (product or service) including the elements of action (function, process), skill, knowledge/information, capacity and location”
Which is right?They all are...Question is: Which is more useful or pertinent to your purpose?
Fortunately, they are reconcilable / compatible
Hierarchy Decomposition a common theme
9Monday 23 April 12
© Inspired 2012
Vision
Requirement
Measure
Driver
Organization
Location
Actor/Role
Product/Service
Contract
Process
Event
f(x)Function
Control
Work PackageCapability Gap
Goal/Objective
Channel/Business Interface
TOGAF 9
Archimate 2
Business Architecture Concepts
Value
Representation/BusinessCommunication
10Monday 23 April 12
© Inspired 2012
Vision
Requirement
Measure
Driver
Organization
Location
Actor/Role
Product/Service
Contract
Process
Event
f(x)Function
Control
Work PackageCapability Gap
Goal/Objective
Channel/Business Interface
Business Architecture Concepts
Value
Representation/BusinessCommunication
Rule
Business Model
11Monday 23 April 12
© Inspired 2012
Context
“Context is worth 60 IQ Points” - Alan Kay
The interesting stuff is out there
Social Media
Technology
Collaboration
Radical Business Models
Customers
Revenue
Also the scary stuff
Competitors, Legislation, Environment Risk,Non-traditional Competitors
12Monday 23 April 12
© Inspired 2012
Things Transforming our WorldAdditive Manufacturing
Developing World Rise => relocation of work, again
Virtualization, Cloud, SaaS, PaaS, Telepresence
Big Data / Machine Learning
Semantics / Public Data
Genomics
Rapidly changing demographics (age etc. )
Marketing, frictionless, viral, long tail...
Open Education
Open Source
Open Innovation
Digitization (Atoms to Bits)
Social Media
Mobile, Location
Nanotech
Singularity (computing > human capacity)
Green Issues, Energy
13Monday 23 April 12
© Inspired 2012
Innovation and Design Thinking
Design Permeates products, services, organization, business model, customer interactions
Design Matters
Do you matter?
Design Driven Companies: Apple, Nike, BMW, IKEA
Brand is the ethos you communicate to your customers -‐ you have to stand for something
Products and Services as Portals
Design Language -‐ What are you saying to your customers?
Risk Support, not management
14Monday 23 April 12
© Inspired 2012
Value and Emotion
Hardware
Software
Services
Processes
Experience
Des
ign
Content
Value is the area under the blocks15Monday 23 April 12
© Inspired 2012
Business Change Design
Technology
EA
16Monday 23 April 12
© Inspired 2012
Interaction, Boundaries, ResponsibilitiesParties
Customers, Channels, Brokers,Consumer Bodies, Suppliers, Unions, Government, Consumer Bodies, Social Groups, Competitors
Events
External, Time Related, Status Triggered
Services
Externally offered, External consumed, Internal services
Feedback
Round trip to ensure effective-ness and improvement
ORGIs & Standards
Speed integration, lower costs, increase agility
17Monday 23 April 12
© Inspired 2012
Products, Services, ChannelsMost of Most Products is Intangible
Luxury car - 100 Million source linesGoogle self driving car - 500+ “ “ “
Video Camera
Smart Phone
How we get things is almost as important as what we get
Choice, Experience, Convenience
Instant Gratification
Continuing delight
Additive Manufacuring
Vanishing value chain
Virtual Products
App, Book, Music, Content Stores...
Virtual Education
18Monday 23 April 12
© Inspired 2012
Modular vehicle architecture spanning all models in the smaller VW, Audi, Seat and Skoda brands
Polo, Golf, Touran, Beetle, EOS, Sharran, Passat, CC
A1, A3, Q3, TT
Volkswagen - MQB
19Monday 23 April 12
© Inspired 2012
Rule
Business Model
Vision
Requirement
Measure
Driver
Organization
Location
Actor/Role
Product/Service
Contract
Process
Event
f(x)Function
Control
Work PackageCapability Gap
Goal/Objective
Channel/Business Interface
Value
Representation/BusinessCommunication
Customer
Competitor
Market
Brand
Partner
Stakeholder
20Monday 23 April 12
© Inspired 2012
Vision
Requirement
Measure
Driver
Organization
Location
Actor/Role
Product/Service
Contract
Process
Event
f(xFunction
Control
Work Capability Gap
Goal/Objective
Channel/Business Interface
Value
Representation/Business
Communication
Customer
Competitor
Market
Brand
Partner
Stakeholder
Project
ProgrammePortfolio
Scenario
Risk
Resource
Strength
Weakness
Rule
Business Model
21Monday 23 April 12
© Inspired 2012
Vision
Requirement
Measure
Driver
Organization
Location
Actor/Role
Product/Service
Contract
Process
Event
f(xFunction
Control
Work Capability Gap
Goal/Objective
Channel/Business Interface
Value
Representation/Business
Communication
Customer
Competitor
Market
Brand
Partner
Stakeholder
Project
ProgrammePortfolio
Scenario
Risk
Resource
Rule
Business Model
Opportunity
Threat
Technology
Strength
Weakness
22Monday 23 April 12
© Inspired 2012
Vision
Requirement
Measure
Driver
Organization
Location
Actor/Role
Product/Service
Contract
Process
Event
f(xFunction
Control
Work Capability Gap
Goal/Objective
Channel/Business Interface
Value
Representation/Business
Communication
Customer
Competitor
Market
Brand
Partner
StakeholderProject
ProgrammePortfolio
Scenario
Opportunity
Threat
Risk
Resource
Technology
Strength
Weakness
Rule
Business Model Business
Object
23Monday 23 April 12
© Inspired 2012
Vision
Requirement
Measure
Driver
Organization
Location
Actor/Role
Product/Service
Contract
Process
Event
f(xFunction
Control
Work Capability Gap
Goal/Objective
Channel/Business Interface
Value
Representation/Business
Communication
Customer
Competitor
Market
Brand
Partner
StakeholderProject
ProgrammePortfolio
Scenario
Opportunity
Threat
Risk
Resource
Technology
Strength
Weakness
Rule
Business Model Business
Object
ApplicationService
24Monday 23 April 12
© Inspired 2012
Meta Model, Model Types, Models/ViewsItem IDProperty: ValueProperty: ValueProperty: Value
a
1
c
b
a aa abb bbc
Matrix Diagram/PlotForm List Composite
Model Model Model Model Model
Representation Representation Representation Representation Representation
25Monday 23 April 12
© Inspired 2012
Full SpectrumScorecard
0"
0.5"
1"
1.5"
2"
2.5"
3"
3.5"
4"Financial"
Human"Resources"
Geographic"Coverage"
Products"&"Services"
Shareholding"
Partnerships"
Channels"
Technology"
Legal"
InformaGon"
Risk"Management"
Agility"
Strategy"
Architecture"
Current"
CompeGtor"Average"
Target"
26Monday 23 April 12
© Inspired 2012
Examples
Apple
MOOC (Massively Open Online Courses)
Metlife
Porsche/Volkswagen
Medical transactions to statistical information sale
27Monday 23 April 12
© Inspired 2012
Apple - Product ArchitectureJobs returned to Apple in crisis in 1997
In the fiscal year he returned, Apple lost $1.04 Billion, and sales were down 30%
One of his first actions was to rationalise the product line, cutting it by 70%
Only four categories were left:
In the next year, Apple produced profits of $309 Million
Business Individual
Office
Mobile
G3 PowerMac iMac
G3 PowerBook iBook
28Monday 23 April 12
© Inspired 2012
So...
Scope of Business Architecture is much bigger than conventionally believed
Business Architecture is a strategic business change capability at board level
Innovation and Design are vital skills
A comprehensive and integrated meta model is a strong enabler to integrate perspectives and ensure impacts are properly considered
Empirically rooted knowledge can allow us to leverage experience of other organizations
We need to take risks, but to do it intelligently
29Monday 23 April 12
© Inspired 2012
The best way to predict the future is to invent it...
Alan Kay
30Monday 23 April 12
© Inspired 2012
The best way to predict the future is to invent it...
Alan Kay architect
31Monday 23 April 12
© Inspired 2012
References and Further InfoDesign Matters - Emery, Stewart
Purple Cows - Seth Godin
Tribe - Seth Godin
Linchpin - Seth Godin
Guide to Organisation Design - Naomi Stanford
Change by Design - Tim Brown
Semantic Web for the Working Ontologist - Dean Allemang and Jim Hendler
Socialnomics - Erik Qualman
Enterprise Architecture as Strategy - Ross, Weill, Robertson
TED Conferences - search on YouTube
Apple Computer
Ray Kurzweil
Proctor and Gamble
Cisco
32Monday 23 April 12
© Inspired 2012
Graham McLeod
www.inspired.org
www.pro-mis.com
http://grahammcleod.typepad.com/(blog)
33Monday 23 April 12
© Inspired 2012
34Monday 23 April 12