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Business Architecture
as an Approach to Connect
Strategy & Projects
| 2
Enterprise Architects
The Design of Business
| 3
@helenmpal is your presenter, representing @eatraining
Want to Tweet?
| 4
Introduction to
Business
Architecture
| 5
Enterprise Architecture
Mapping and modeling the Enterprise
| 6
The Business Architecture
“defines the business strategy, governance,
organisation and key business processes.”
~TOGAF®9.1 Specification
| 7
Why do Business Architecture?
| 8
VALUE
MANDATE
E
A
B
C
D
Business Architecture is seen
as a positive progression
away from IT
*Adapted from Ruth Malan, Dana Bredemeyer
• Maximise Product Profitability
• Maximise Market Share
• Maximise Customer Lifetime Value
Improve project
performance
Improve enterprise wide
program and portfolio
performance
Improve Business Performance
Improve Market Performance
(Shareholder Value)
Improve Product/Service Performance
The Mandate Curve
| 9
The Business Architect Mandate
Environ.
Models,
Competitor
Analysis,
Strategic
Diagnosis
Segmentation
Positioning,
Strategy Map,
Decision Trees
Perceptual
Mapping,
Distribution
Channels and
Models
Customer
Experience,
Journey Maps,
Learning Maps
Campaign
Models,
Advertising
Messages, Key
Messages
Competitor
Strategy,
Expansion
Strategy,
Innovation
Strategy
Marketing Mix,
Product
Lifecycle Model,
Pricing and
Cash Flow
Analysis
Regression
Analysis and
forecasting,
Platform and
Expansion Plans
Design models,
Value Maps,
Product and
Offering Maps,
Design Models
Product Line
Plans
Motivation
Model, Driver
Trees, Systems
Theory
Org. Model and
Structures,
Org. Culture,
Partner and
Supplier
Models
Change
Models,
Organisation
Unit Model,
Org. Learning
Models
Resource
Management
and Scheduling
Procedures
Contracts, Time
and Expense
Procedures
Performance,
Business
Structures,
Value Maps
Risk Models,
Growth Models,
Capital
Structure
Models
Performance
Alignment
Model, Root
Cause Model
Balanced
Scorecard,
Financial
Reporting
Financial
Reporting
Procedures,
EPM
Value Chain,
Value Streams,
Decisions &
Events
Capability
Models
Process Maps
Function
Models
Use Cases
Process Models
Workflows &
Activities
Operating
Procedures
Info’ Mgt
Principles
Info Use
Policies
Meta-Data
Definition
Subject
Classification
Information
Classification
Enterprise Info
Model, Info
Lifecycle Model,
Human
Interface Model
Custodian
Model,
Integration
View,
Presentation
Models
Security Rules,
BI Reports,
User Interface,
Warehouse and
Datamarts
Health
Assessment
Application
Principles
Application
Framework
Current State
Target State
Services
Definitions
Function
Models
Wiring
Diagrams
Activity Views
Patterns
Deployment
Model
Application
Standards
Resource
Estimates?
Class/Module
View
Configuration
Models
Data Principles
Reference Data
Stds
Data Dictionary,
Data quality
Processes
Data Directory
Field Level
Views
Tech’ Watch
Health
Assessment
Asset Lifecycle
Technology
Principles
Tech’ Reference
Model
Current State
Target State
Service
Catalogue
Service
Definition
Mud Maps
(N/W, etc.)
Technology
Standards
CMDB
Management
CONTEXTUAL
CONCEPTUAL
LOGICAL
PHYSICAL
IMPLEMENTATION
MARKET APPLICATION DATA TECHNOLOGY
PRODUCTS &
SERVICES ORGANISATIONAL PERFORMANCE
PROCESS &
FUNCTION INFORMATION
PRINCIPAL BUSINESS
ARCHITECT
SENIOR BUSINESS ANALYST /
SENIOR BUSINESS ARCHITECT
BUSINESS ANALYST
STRATEGIC
BUSINESS ARCHITECT
The EA Skills and Views Matrix
BUSINESS
ARCHITECT
| 10
What do Stakeholders talk to you about?
There’s a customer
expectation gap between the
products we develop and the
service we deliver.
Are there synergies across
programmes that we aren’t
aware of?
There is a lot of activity going
on out there, how do I know
we are doing the right
things?
The project is overlapping
with another project – it
seems a waste of resources.
Money is getting spent on
things that don’t seem to be
important – what is the
priority?
Management Reporting is
complex and uses a lot of
disparate systems and
spreadsheets to produce.
The way we (don’t) manage
knowledge, documents and
content is causing problems.
Customer complaints are on
the increase and the only way
we are picking up errors.
Nobody is paying attention
to or addressing the pain
points we have in process
and workflow.
| 11
The minefield between Strategy and Projects
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
| 12
Connecting Strategy & Projects
| 13
TOGAF® Architecture Development Method
Phase B. Business Architecture
1. Select reference models, viewpoints and tools
2. Develop Baseline Business Architecture Description
3. Develop Target Business Architecture Description
4. Perform gap analysis
5. Define candidate roadmap components
6. Resolve impacts across the Architecture Landscape
7. Conduct formal stakeholder review.
8. Finalise the Business Architecture.
9. Create Architecture Definition Document.
The Open Group Architecture Framework (TOGAF®)
| 14
How a business can be represented
The Business model is described in terms of business motivation and
outcomes and is often represented in the form of a Business
Motivation Model
Various business models produce different outcomes for different
scenarios. Developing scenarios for business models is done
using the Business Model Canvas
At the conceptual level develop the detail of the various
strategic business models using the (EA) Business Reference
Model with corresponding value chain models
The capability layer expands the conceptual business
model into detailed business capabilities and
describes their inter-relationships and target
maturity levels. It is often represented in the business
anchor or capability model
The resources layer addresses all the
resources that are within the capabilities and
is found in the more traditional process and
functional decomposition models
THE BUSINESS
MOTIVATION MODEL
THE BUSINESS MODEL
CANVAS
THE VALUE SYSTEM
MODEL
THE BUSINESS
CAPABILITY ANCHOR
MODEL
RESOURCE
MODELRESOURCES
CAPABILITY
BUSINESS
STRATEGY
MOTIVATION
| 15
“Architecture Thinking” according to EA
Vision
Strategy
Blueprinting
Roadmapping
Governance
MACRO
ENVIRONMENT
INDUSTRY SCAN
INFLUENCERS
ASSESSMENT
MEANS ENDS
SWOT
PERFORMANCE
• Financial
• Customer
• Internal (current)
• Internal (long-
term)
MOTIVATION MODEL BUSINESS MODEL
SERVICE MODEL
CAPABILITY MODEL
People
ROADMAP
GOVERNANCE
* Closed feedback
loop to
Motivation Model
Information
Technology
Process
MARKET MODEL
MEANS ASSESSMENT
| 16
BMM according to Object Management Group
| 17
Business Motivation Model (Adapted) Key Elements
| 18
Business Motivation Model (Adapted)
Adapted from Business Motivation Model - OMG
A statement with action,
product/service & market
“Provide mobile tailored wealth
management services to self-
employed people in Australia”
Specific actions
“Call first-time customers
personally”
The strategic course of action
“Defend our current customer
base to reduce churn and
increase repeat business”
A statement of a desired
future state
“Be the wealth management
services provider of choice with
best customer service for self-
employed people.”
Quantitative specific
statement about desired
results
“By end of year, 90% of first-
time customers get a personal
call within 2 business days.”
Qualitative general statement
about desired results
“Improve customer satisfaction
(over the next five years)”
| 19
B U S I N E S S D E S I G N T O O LBusiness Motivation Model
There are many ways to depict the BMM. This version EA has found to be most effective.
C U S T O M E R S
M I S S I O N V I S I O N
S T R A T E G I E S
L E V E R S
INFLUENCERS
O B J E C T I V E S
G O A L S
O B J E C T I V E S
C H A N N E L S
D R I V E R S
G O A L S
Adapted from Business Motivation Model - OMG
EA’s standard
structure for a
BMM
| 20
B U S I N E S S D E S I G N T O O LBusiness Model Canvas
| 21
Business Anchor (Capability) Model B U S I N E S S D E S I G N T O O L
O R G A N I S A T I O N S T R U C T U R E
V A L U E D R I V I N G C A P A B I L I T I E S
S U P P O R T I N G C A P A B I L I T I E S
SUPPLIERS&
PARTNERS
C H A N N E L S
P R O D U C T S A N D S E R V I C E S
VALUE CHAIN VALUE CHAINVALUE CHAIN
CUSTOMERS,
STAKEHOLDERS
There are many ways to depict the BAM/BCM. This version EA has found to be most effective.
EA’s standard
structure for a
BAM
| 22
Business Anchor Model & Decision Making
Am I over or
underspending?
Is my current investment
portfolio dealing with tactical
issues?
Is my strategy aligned
with management issues /
focus areas?
Am I able to achieve
my strategy?
Is lack of maturity
causing tactical issues?
Is my current
investment aligned
to my strategy
| 23
Planning Roadmap B U S I N E S S D E S I G N T O O L
Doability
M I S S I O N , V I S I O N ,
G O A L S A N D
S T R A T E G I E S
S T R A T E G I C O B J E C T I V E S
A L I G N E D T O I N I T I A T I V E S
D R I V E R S
ASSUMPTIONS
AND PRINCIPLES
P R O G R A M M E O F W O R K
Risks aligned to programme of work
Time, Cost and Effort
Value Chain Current State
Capability Current State
People Current State
Process Current State
Tools Current State
Data Current State
Value Chain Target State
Capability Target State
People Target State
Process Target State
Tools Target State
Data Target State
EA’s standard
structure for a
Roadmap
| 24
Applied Business Architecture: 4 Day Course
New method and
tools to put in my
professional toolkit
For IT People
Identify what is of business value, so can
figure out how technology can help
provide or create that value.
For Business People
Apply architecture thinking to
business planning and strategy
| 25
"Perhaps we cannot raise
the winds. But each of us
can put up the sail, so that
when the wind comes we
can catch it."
CONNECT
enterprisearchitects.com/learning
twitter.com/eatraining
P +61 3 9615 6500
training@enterprisearchitects.com
E F SCHUMACHER
At Enterprise Architects, we are committed
to providing services that accelerate people
and organisations to drive positive change.

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Business Architecture as an Approach to Connect Strategy & Projects

  • 1. | 1 Business Architecture as an Approach to Connect Strategy & Projects
  • 2. | 2 Enterprise Architects The Design of Business
  • 3. | 3 @helenmpal is your presenter, representing @eatraining Want to Tweet?
  • 5. | 5 Enterprise Architecture Mapping and modeling the Enterprise
  • 6. | 6 The Business Architecture “defines the business strategy, governance, organisation and key business processes.” ~TOGAF®9.1 Specification
  • 7. | 7 Why do Business Architecture?
  • 8. | 8 VALUE MANDATE E A B C D Business Architecture is seen as a positive progression away from IT *Adapted from Ruth Malan, Dana Bredemeyer • Maximise Product Profitability • Maximise Market Share • Maximise Customer Lifetime Value Improve project performance Improve enterprise wide program and portfolio performance Improve Business Performance Improve Market Performance (Shareholder Value) Improve Product/Service Performance The Mandate Curve
  • 9. | 9 The Business Architect Mandate Environ. Models, Competitor Analysis, Strategic Diagnosis Segmentation Positioning, Strategy Map, Decision Trees Perceptual Mapping, Distribution Channels and Models Customer Experience, Journey Maps, Learning Maps Campaign Models, Advertising Messages, Key Messages Competitor Strategy, Expansion Strategy, Innovation Strategy Marketing Mix, Product Lifecycle Model, Pricing and Cash Flow Analysis Regression Analysis and forecasting, Platform and Expansion Plans Design models, Value Maps, Product and Offering Maps, Design Models Product Line Plans Motivation Model, Driver Trees, Systems Theory Org. Model and Structures, Org. Culture, Partner and Supplier Models Change Models, Organisation Unit Model, Org. Learning Models Resource Management and Scheduling Procedures Contracts, Time and Expense Procedures Performance, Business Structures, Value Maps Risk Models, Growth Models, Capital Structure Models Performance Alignment Model, Root Cause Model Balanced Scorecard, Financial Reporting Financial Reporting Procedures, EPM Value Chain, Value Streams, Decisions & Events Capability Models Process Maps Function Models Use Cases Process Models Workflows & Activities Operating Procedures Info’ Mgt Principles Info Use Policies Meta-Data Definition Subject Classification Information Classification Enterprise Info Model, Info Lifecycle Model, Human Interface Model Custodian Model, Integration View, Presentation Models Security Rules, BI Reports, User Interface, Warehouse and Datamarts Health Assessment Application Principles Application Framework Current State Target State Services Definitions Function Models Wiring Diagrams Activity Views Patterns Deployment Model Application Standards Resource Estimates? Class/Module View Configuration Models Data Principles Reference Data Stds Data Dictionary, Data quality Processes Data Directory Field Level Views Tech’ Watch Health Assessment Asset Lifecycle Technology Principles Tech’ Reference Model Current State Target State Service Catalogue Service Definition Mud Maps (N/W, etc.) Technology Standards CMDB Management CONTEXTUAL CONCEPTUAL LOGICAL PHYSICAL IMPLEMENTATION MARKET APPLICATION DATA TECHNOLOGY PRODUCTS & SERVICES ORGANISATIONAL PERFORMANCE PROCESS & FUNCTION INFORMATION PRINCIPAL BUSINESS ARCHITECT SENIOR BUSINESS ANALYST / SENIOR BUSINESS ARCHITECT BUSINESS ANALYST STRATEGIC BUSINESS ARCHITECT The EA Skills and Views Matrix BUSINESS ARCHITECT
  • 10. | 10 What do Stakeholders talk to you about? There’s a customer expectation gap between the products we develop and the service we deliver. Are there synergies across programmes that we aren’t aware of? There is a lot of activity going on out there, how do I know we are doing the right things? The project is overlapping with another project – it seems a waste of resources. Money is getting spent on things that don’t seem to be important – what is the priority? Management Reporting is complex and uses a lot of disparate systems and spreadsheets to produce. The way we (don’t) manage knowledge, documents and content is causing problems. Customer complaints are on the increase and the only way we are picking up errors. Nobody is paying attention to or addressing the pain points we have in process and workflow.
  • 11. | 11 The minefield between Strategy and Projects 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
  • 13. | 13 TOGAF® Architecture Development Method Phase B. Business Architecture 1. Select reference models, viewpoints and tools 2. Develop Baseline Business Architecture Description 3. Develop Target Business Architecture Description 4. Perform gap analysis 5. Define candidate roadmap components 6. Resolve impacts across the Architecture Landscape 7. Conduct formal stakeholder review. 8. Finalise the Business Architecture. 9. Create Architecture Definition Document. The Open Group Architecture Framework (TOGAF®)
  • 14. | 14 How a business can be represented The Business model is described in terms of business motivation and outcomes and is often represented in the form of a Business Motivation Model Various business models produce different outcomes for different scenarios. Developing scenarios for business models is done using the Business Model Canvas At the conceptual level develop the detail of the various strategic business models using the (EA) Business Reference Model with corresponding value chain models The capability layer expands the conceptual business model into detailed business capabilities and describes their inter-relationships and target maturity levels. It is often represented in the business anchor or capability model The resources layer addresses all the resources that are within the capabilities and is found in the more traditional process and functional decomposition models THE BUSINESS MOTIVATION MODEL THE BUSINESS MODEL CANVAS THE VALUE SYSTEM MODEL THE BUSINESS CAPABILITY ANCHOR MODEL RESOURCE MODELRESOURCES CAPABILITY BUSINESS STRATEGY MOTIVATION
  • 15. | 15 “Architecture Thinking” according to EA Vision Strategy Blueprinting Roadmapping Governance MACRO ENVIRONMENT INDUSTRY SCAN INFLUENCERS ASSESSMENT MEANS ENDS SWOT PERFORMANCE • Financial • Customer • Internal (current) • Internal (long- term) MOTIVATION MODEL BUSINESS MODEL SERVICE MODEL CAPABILITY MODEL People ROADMAP GOVERNANCE * Closed feedback loop to Motivation Model Information Technology Process MARKET MODEL MEANS ASSESSMENT
  • 16. | 16 BMM according to Object Management Group
  • 17. | 17 Business Motivation Model (Adapted) Key Elements
  • 18. | 18 Business Motivation Model (Adapted) Adapted from Business Motivation Model - OMG A statement with action, product/service & market “Provide mobile tailored wealth management services to self- employed people in Australia” Specific actions “Call first-time customers personally” The strategic course of action “Defend our current customer base to reduce churn and increase repeat business” A statement of a desired future state “Be the wealth management services provider of choice with best customer service for self- employed people.” Quantitative specific statement about desired results “By end of year, 90% of first- time customers get a personal call within 2 business days.” Qualitative general statement about desired results “Improve customer satisfaction (over the next five years)”
  • 19. | 19 B U S I N E S S D E S I G N T O O LBusiness Motivation Model There are many ways to depict the BMM. This version EA has found to be most effective. C U S T O M E R S M I S S I O N V I S I O N S T R A T E G I E S L E V E R S INFLUENCERS O B J E C T I V E S G O A L S O B J E C T I V E S C H A N N E L S D R I V E R S G O A L S Adapted from Business Motivation Model - OMG EA’s standard structure for a BMM
  • 20. | 20 B U S I N E S S D E S I G N T O O LBusiness Model Canvas
  • 21. | 21 Business Anchor (Capability) Model B U S I N E S S D E S I G N T O O L O R G A N I S A T I O N S T R U C T U R E V A L U E D R I V I N G C A P A B I L I T I E S S U P P O R T I N G C A P A B I L I T I E S SUPPLIERS& PARTNERS C H A N N E L S P R O D U C T S A N D S E R V I C E S VALUE CHAIN VALUE CHAINVALUE CHAIN CUSTOMERS, STAKEHOLDERS There are many ways to depict the BAM/BCM. This version EA has found to be most effective. EA’s standard structure for a BAM
  • 22. | 22 Business Anchor Model & Decision Making Am I over or underspending? Is my current investment portfolio dealing with tactical issues? Is my strategy aligned with management issues / focus areas? Am I able to achieve my strategy? Is lack of maturity causing tactical issues? Is my current investment aligned to my strategy
  • 23. | 23 Planning Roadmap B U S I N E S S D E S I G N T O O L Doability M I S S I O N , V I S I O N , G O A L S A N D S T R A T E G I E S S T R A T E G I C O B J E C T I V E S A L I G N E D T O I N I T I A T I V E S D R I V E R S ASSUMPTIONS AND PRINCIPLES P R O G R A M M E O F W O R K Risks aligned to programme of work Time, Cost and Effort Value Chain Current State Capability Current State People Current State Process Current State Tools Current State Data Current State Value Chain Target State Capability Target State People Target State Process Target State Tools Target State Data Target State EA’s standard structure for a Roadmap
  • 24. | 24 Applied Business Architecture: 4 Day Course New method and tools to put in my professional toolkit For IT People Identify what is of business value, so can figure out how technology can help provide or create that value. For Business People Apply architecture thinking to business planning and strategy
  • 25. | 25 "Perhaps we cannot raise the winds. But each of us can put up the sail, so that when the wind comes we can catch it." CONNECT enterprisearchitects.com/learning twitter.com/eatraining P +61 3 9615 6500 training@enterprisearchitects.com E F SCHUMACHER At Enterprise Architects, we are committed to providing services that accelerate people and organisations to drive positive change.

Editor's Notes

  1. Business Architect – more in the Contextual, Conceptual, Logical levels Motivation Artefacts Objectives, Courses of Action, Rationales and measures. Function Artefacts processes and value chains Initiative Artefacts programs, projects,  Knowledge Artefacts Captures terms, facts and rules for deriving facts. Organization Artefacts organization units, roles, capabilities and locations as well as governance structures within an organization. Product Artefacts Specific to products that are available in the marketplace.
  2. This often leads to misalignment across the enterprise and often results in incorrect apportionment of capex across the project portfolio... Project Spend (Capex) occurs in the areas that are often not strategic in nature It also creates a hindrance for enterprise wide planning decisions Planning decisions are not informed by a coherent enterprise view of the problem space This also impacts technology decisions The application and technology portfolio is often tactically aligned to business or purely technology driven Understand the value drivers and corresponding leverage points that drive the strategy Focus on clearly linking the strategy to operations through business capabilities. Establish target values that are tied to the project portfolio and ensure business architects provide project oversight.
  3. Strategies & Goals for the Value Chain Tactics & Objectives for the Capabilities
  4. Influencers – External & Internal things that might impact on the plans/intentions. Drivers – things that drive value, drive the value chain. Things that are referenced in Goals. Levers – things that can or will be affected in strategies to impact the value chain.
  5. Types of relationship matrices that can be developed on the level 3 business model and the key questions they can answer