Helen Palmer @helenmpal hosted interactive sessions at the October 2015 IIBA professional development days in Melbourne and Brisbane.
The presentation titled "Business Architecture as an Approach to Connect Strategy & Projects" covers a high level introduction to the discipline of Business Architecture and the platform it provides for effectively executing Business Strategy. Helen provided insights into how Business Architecture is positioned within the wider context of Enterprise Architecture and how the value it delivers can improve greatly with an increase in the mandate from the business. The presentation also gives an overview of some of the key artifacts and models used in defining a Business Architecture.
Enterprise Architects offers IIBA members an exclusive discount on our (IIBA endorsed) Applied Business Architecture: 4 Day Course
http://enterprisearchitects.com/courses/business-architecture/applied-business-architecture/
You can reach out to one of our learning services consultants at training@enterprisearchitects.com to find out more.
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
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."
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Editor's Notes
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.
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.
Strategies & Goals for the Value Chain
Tactics & Objectives for the Capabilities
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.
Types of relationship matrices that can be developed on the level 3 business model and the key questions they can answer