Better Business Design Through Precision Guided Enterprise Architecture

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Successful transformation initiatives are driven by Business Architecture. The Business Architect plays a key role in bringing all of the portfolio components together and consistently reinforcing senior management's voice throughout the ADM lifecycle. This begins with establishing strategic goals and outcomes that set the context for the entire program and service transformation. Establishing context serves as the basis for strategic project portfolio definition and integrated execution. This approach mitigates the risk of executing projects in isolation without considering the needs of the entire portfolio as a whole. This session will boost your knowledge of these concepts and help you and your team to achieve the best possible outcomes for your organization.

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Better Business Design Through Precision Guided Enterprise Architecture

  1. 1. Better Business Design Through Precision Guided Enterprise Architecture
  2. 2. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 2 Attendee Information Open and hide your control panel with orange arrow Join audio: •Choose “Mic & Speakers” to use VoIP •Choose “Telephone” and dial using the information provided Submit questions and comments via the Questions panel Today’s presentation is being recorded and will be provided
  3. 3. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 3 TWITTER CONTEST INFO  1 Winner of Business Architecture: The Art and Practice of Business Transformation by William M. Ulrich and Neal McWhorter 1. Follow @GKCanada 2. Tweet @GKCanada: What EBA road map Model is built by Business Architects to facilitate value chain analysis and re-engineering #gksummerschool  Two winners will be chosen at random and contacted through direct message on Twitter.  Contest closes at 11:59pm EST on August 14
  4. 4. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 4 Presenter Bashar Abdul Qader
  5. 5. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 5 Agenda 1. Define Business Architecture and Why 2. Business Architecture – A Management Consulting Capacity 3. Business Architecture Capabilities
  6. 6. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 6 Agenda 1. Define Business Architecture and Why 2. Business Architecture – A Management Consulting Capacity 3. Business Architecture Capabilities
  7. 7. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 7 Private Sector Business Architecture Is…  The fundamental organization of a business embodied in its components, their relationships to each other and to the environment of the business, and  The principles guiding the organization’s design and evolution  Where:  Fundamental organization means essential, unifying concepts and principles (i.e., product and service alignment)  Business includes its lines of business, products, services, organizations, and business processes, etc.  Environment is the context of the business, including its markets, market segments and customers, business partners and suppliers, and its governance and regulators  *Based on IEEE 1471 – Definition of Architecture
  8. 8. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 8 Business Architecture Domain in TOGAF Architecture Development Methodology
  9. 9. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 9 Enterprise Business Architecture and the TOGAF-ADM Phases Phase A: Architecture Vision describes the initial phase of an architecture development cycle. It includes information about defining the scope, identifying the stakeholders, creating the Architecture Vision, and obtaining approvals. Phase B: Business Architecture describes the development of a Business Architecture to support an agreed Architecture Vision.
  10. 10. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 10 Architectural Models and Zachman Framework Business Architecture A p p l i c a t i o n T e c h n o l o g y S e c u I t y P o l I c y / R u l e s I n f o r m a t i o n T e c h n o l o g y V L System architectures intersect business architecture at the conceptual design level, from which they derive requirements for their logical and physical designs. Artifacts are located in the cells of the Zachman framework.
  11. 11. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 11 Business Architecture in the Zachman Framework Planner's View (Scope) - The first architectural sketch is a ”context model” that includes a Venn Diagram, which depicts in gross terms the size, shape, partial relationships, and basic purpose of the final structure. It corresponds to an executive summary for a planner or investor who wants an overview or estimate of the scope of the system, what it would cost, and how it would relate to the general environment in which it will operate.  Owner's View (Enterprise of Business Model) - Next are the architect's drawings that depict the final building from the perspective of the owner, who will have to live with it in the daily routines of business. They correspond to the enterprise (business) models, which constitute the designs of the business and show the business entities and processes and how they relate.
  12. 12. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 12 Private Sector Drivers for Architectural Approach  A number of fundamental drivers require architecture:  Electronic, Integrated, and Alternate Service Delivery  Shared Services Agenda  Focus on accountability  Breaking down silos and thinking horizontality  Need for better track record on complex change planning  Cross-jurisdictional agenda  Increased enterprise agility: ability to adapt to environment with increased rate of change  Need for business context to be leveraged as a result of emerging technologies  Need to plan and optimize at enterprise level (i.e. low-hanging “local” fruit are gone)  Rising citizen expectations – wise use of public funds
  13. 13. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 13 Business Architecture Manages Complexity of “As-Is” Analysis and “To-Be” Design  Enterprises are very complex  Complexity creates a challenge to:  Understanding and analyzing the current “as-is”  Specifying, planning, designing, and transitioning to future “to-be”  Traditional methods and tools have not effectively addressed complexity or scaled to enterprise level!  The discipline of business architecture provides tools and techniques to address complexity and supports planning, analysis, and design from an enterprise-wide holistic systems perspective  Results in enterprises that are:  More capable of achieving outcomes efficiently  More capable of change and agility
  14. 14. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 14 Business Architecture Addresses Alignment, Assurance, Knowledge, and Productivity Goals  Greater alignment of operations to business strategies  Greater alignment of investments in change to business results  Greater assurance of feasibility of complex change initiatives  Greater knowledge of business design  Greater productivity in planning, design, and implementation of business change
  15. 15. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 15 Agenda 1. Define Business Architecture and Why 2. Business Architecture – A Management Consulting Capacity 3. Business Architecture Capabilities
  16. 16. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 16 Management Consulting Defined Management Consulting: is a professional advisory service assisting managers and organizations to achieve organizational purposes and objectives by solving management and business problems, identifying and seizing new opportunities, enhancing learning, and implementing changes.
  17. 17. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 17 Management Consultants in Action Management consultants help organisations:  Solve issues  Create value  Maximise growth  Improve the business performance of their clients.  Make better decisions about business transformation and organizational change investments by providing objective information that supports decision makers in making educated and informed decisions (Evidence Based Strategy Development). Management consultants are primarily concerned:  With the strategy, structure, management and operations of an organisation.  With identify options for the organisation and suggesting recommendations for change, as well as helping with additional resources to implement solutions.
  18. 18. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 18 Business Architecture a Management Consulting Function instead of Architecture Standards Gate Keeper Business Architecture evolves enterprise architecture into a: Business solution focused role, guiding, mentoring and leading transformation teams in ensuring enterprise benefits realization through:  Creating employee engagement by continuously advocating vision, mission, and goals of the organization to all employees to demonstrate how the work they do contributes to the overall success of the organization  Ensuring they will successfully navigate all approval gates by coordinating all the architecture domains in designing the best possible transformation solution From The perception that it impedes transformation through policing and enforcement
  19. 19. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 19 Polling Question 1 What perception does your organization have of Enterprise Architecture? a) A policing and standards enforcement function that serves as a transformation speed bump. b) A leadership function assisting in ensuring transformation teams achieve full benefits realization of transformation investments c) Neither because we do not employ Architecture
  20. 20. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 20 Business Architecture Modeling as a Management Consulting Discipline  Business architects develop business models to support planners, analysts, and designers in:  Conducting formal analysis of current “as-is” business to identify opportunities and/or risks  Strengthening organizational design and performance frameworks  Aligning IT assets with business strategy  Defining “could-be” business design alternatives  Business architects use frameworks, reference models, and patterns to:  Increase the efficiency and quality of business models  Foster re-use of business model elements across the enterprise
  21. 21. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 21 Core Capabilities of Business Architecture 1. Strategic analysis and planning 2. Enterprise analysis and value chain optimization 3. Modeling to solidify effective collaboration throughout the transformation initiative 4. Aligning target business architecture with target solution architecture
  22. 22. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 22 Core Capabilities of Business Architecture 1. Strategic analysis and planning 1. Defining Strategic analysis and planning 2. Developing outcome strategies 3. Aligning LOB’s/Product Lines to strategies 1. Product/Service alignment to LOB and enterprise strategies 4. Performance Management 2. Enterprise analysis and value chain optimization 3. Modeling to solidify effective collaboration throughout the transformation initiative 4. Aligning target business architecture with target solution architecture
  23. 23. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 23 Defining Strategic Analysis and Planning Strategic analysis and planning is: An organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment.
  24. 24. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 24 Building and Articulating Enterprise Strategies with Outcome Network Models Outcome = A desired future state based on an identified need of market segment customer Outcome Network Model 1. Formally defines the ultimate mission of a private sector organization and ensures the focus is client-centric. 2. Sets the top point of alignment for the rest of the business model.
  25. 25. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 25 Aligning LOB`s and Product lines to Guide Benefits Realization Strategy - Lines of business & product lines are aligned when products, produced by product lines, support accomplishment of business results/outcomes - Alignment occurs when the customer is a member of the market segment and receives value from the product in relationship to need(s) recognized by the line of business
  26. 26. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 26 Program Logic Model Supplements Outcome Network Diagram with Contributions of Outputs to Outcomes Services & Activities Outputs Direct outcomes Intermediate outcomes Strategic outcome Increased public safety Reduced property loss due to flooding Reduced death rate due to flooding Reduced flooding Reduced value of floodplain development Reduced number of floodplain inhabitants Reduced number of floodplain developments Floodplain development restriction activities Restored wetlands Wetland restoration activities Aligning Product/Service Outputs to LOB/Program Outcomes
  27. 27. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 27 Performance Management of Strategic Outcomes – Measuring by Value Instead of By Budget  Framework - Organizing, automating, and analyzing business metrics, processes, and systems that drive performance.  Performance data - Requires consolidation and analysis of performance data from various sources.  Performance improvement - Improves process design and execution by creating feedback loops to identify and eliminate process problems.  Performance forecasting - Provides forecasting against metrics, characterized by varying degrees of predictability.  Key performance indicators - Defines and produces key performance indicators (KPIs) to monitor against operational targets.  Performance risks and outcome prediction - Supports risk analysis and prediction of outcomes of major undertakings.
  28. 28. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 28 Performance Management Drivers  Accountability - Requires measurement of actual program and service performance against goals to assess accountability. - Encourages effective and efficient use of enterprise resources.  Change benefits realization - Supports management and measurement of project benefits.  Operational continuous improvement - Supports optimization of operational resource allocation based on operational performance reporting.  Information requirements - Identify information required to measure performance and support decision making.
  29. 29. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 29 Core Capabilities of Business Architecture 1. Strategic analysis and planning 2. Enterprise analysis and value chain optimization 1. Definitions 2. Ensuring complete business design 3. Identifying business interoperability requirements 4. Identifying shared services 5. Horizontal accountability and Service Level Agreements 3. Modeling to solidify effective collaboration throughout the transformation initiative 4. Aligning target business architecture with target solution architecture
  30. 30. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 30 Porter’s Definition of a Value Chain The value chain is the internal processes or activities a company performs “to design, produce, market, deliver and support its product.” He further states that “a firm’s value chain and the way it performs individual activities are a reflection of its history, its strategy, its approach to implementing its strategy, and the underlying economics of the activities themselves.”
  31. 31. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 31 Value Chain Analysis Objectives  Helps you to stay out of the “No Profit Zone”  Presents opportunities for integration  Aligns spending with value processes  Determine future funding prioritization through capability value contribution models and performance assessments that clarify which capability gaps are most important to close  Enterprise value chain re-engineering/optimization for service efficiency, effectiveness and quality benefits realization  outsourcing  off-shoring  co-location with customers or suppliers  Identifying redundant services and implementing reuse strategies  Designing shared services
  32. 32. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 32 Enterprise Analysis and Value Chain Optimization Through Value Chain Modeling Represents value chain design options to support optimizing the provision of target group facing services as identified in LOB design. Represents “as-is”, “to-be”, and “could-be” value chain models to support: – Consolidation or distribution of business functions within the chain – Identification of business interoperability requirements – Identification of horizontal accountability relationships and requirements for service level agreements
  33. 33. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 33 Value Chain Modeling Extends Line of Business Modeling Line of Business VALUE CHAIN MODELING LINE OF BUSINESS MODELING Target Group Facing Services Corporate Function Support Services A value chain model represents horizontal linkages between lines of business and business functions across products and services. Corporate Function Support Services Corporate Function Support Services Support services provide value directly or indirectly to target group facing services Identifies target group facing services
  34. 34. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 34 Service Integration and Accountability Model (SIAM) Represents Horizontal Accountability Structure of Service Value Chains Diagram demonstrates the flow of horizontal account-ability across an organization, where support services provide valued outputs to target group facing services, which in turn provide final valued outputs to end clients or customers. Purpose: • Focuses on concerns of program and policy managers • Produces a business design that ensures completeness (i.e., all services required to achieve LOB and policy outcomes) • Produces a service design that is optimal in terms of identifying shared processes • Enables alignment of services, performance measures, accountabilities with organization structure and roles Aligns with: Business Network Diagram Business Use Case Diagram Logical Application Deployment Diagram Components: Level: Conceptual View: Structural, Functional Zachman cell: R2C2 ClientService Service Output Organization
  35. 35. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 35 SIAMs Support Value Chain Re-Engineering Supports value chain re-engineering: Begin with processes required to support service delivery Extract common processes from two or more services where service efficiency or effectiveness can be improved to create shared services Form support services (can be insourced or outsourced) Service outputs indicate points of integration and accountability:  Service level agreements (SLAs) define accountability of internal service provider
  36. 36. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 36 Polling Question 2 Does your organization manage by: A.Value – based on integrated business process management principles. B.Budget - based on FTE load.
  37. 37. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 37 Core Capabilities of Business Architecture 1. Strategic analysis and Planning 2. Enterprise analysis and value chain optimization 3. Modeling to solidify effective collaboration throughout the transformation initiative 1. Reference models 2. Uses and benefits of reference models 3. Reference models and performance measurement 4. EBA Road Map 4. Aligning target business architecture with target solution architecture
  38. 38. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 38 What Is a Private Sector Reference Model?  An abstraction of a private sector domain  A business architecture toolkit!  Usually “open source” and administered by a community of interest  Includes:  Common business components and language  To aid stakeholder communication and consensus  Common business models or analytic views  To represent aspects of the domain  Customizable business patterns  To facilitate re-use
  39. 39. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 39 Business Reference Model Target Groups Business ConsumersOutputs Provider Organizations Authority Accountability Roles Responsibility Used in Deliver Accomplish Governance Outcomes & Impacts Markets Lines of Business Products* Processes Resources *Products = Goods or services
  40. 40. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 40 Examples of Private Sector Reference Models Domain Model Insurance ACORD, Vista™ Telecommunications eTOM Healthcare HL7 (patient and clinical data standards) IT ITIL/ITSM - Information Technology Infrastructure Library and IT Service Management Accounting GAAP – Generally Accepted Accounting Principles
  41. 41. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 41 Uses and Benefits of Reference Models  Common language supports foundation for: Stakeholder consensus Community exchange / re-use / extension of models / methods, etc.  Re-usable patterns support rapid assembly of models: Customization, as opposed to discovery High-quality parts  Specifies and aligns comprehensive “suite” of business models to bridge policy to implementation Each business model represents one of various aspects of public sector enterprise
  42. 42. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 42 Models Provide Common Language to Support Successful Transformation requires requires requires Complex Change Collaboration Communication supports facilitates enables Transformation Consensus Clarity Common LanguageCommon Language
  43. 43. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 43 Enterprise Business Architecture Roadmap a Business Architecture Development Methodology  Supports top-down modeling of complex enterprises  Not all modeling assignments need each level of design  Modeling level above sets scope for level below  Successive levels span strategy to logical systems requirements definition
  44. 44. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 44 Business Models Support Analysis and Design of Programs, Services, Processes, and Transformation Portfolios Business Models Programs and Outcomes Services and Outputs Processes Organizational Structure Are there gaps or overlaps in accountability for outcomes and outputs? Performance Metrics Are performance metrics aligned with goals and strategy? Projects and Project Portfolios Are projects and portfolios scoped? Are there overlaps? Will projects deliver measurable benefits?
  45. 45. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 45 Core Capabilities of Business Architecture 1. Strategic analysis and planning 2. Enterprise analysis and value chain optimization 3. Modeling to solidify effective collaboration throughout the transformation initiative 4. Aligning target business architecture with target solution architecture 1. Why do we need aligned and architected solutions 2. Enterprise architecture planning roadmap 3. Planning the solutions roadmap 4. Implementing the solutions
  46. 46. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 46 Why Do We Need Aligned and Architected Solutions?  Business transformation is enabled by appropriate system solutions.  Solution interoperability will support value chain integration.  Business patterns abstracted from business architecture facilitate business transformation:  System solutions aligned with business patterns support multiple business situations.  Potentially higher design costs are offset by  Lower implementation costs:  Better fit to business and improved interoperability  More opportunities to accommodate reuse in other business areas  Lower ongoing maintenance costs:  More flexibility to accommodate business changes
  47. 47. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 47 Enterprise Architecture Planning Roadmap Architectural process TOGAF phases C-E creates the target design (model) of the enterprise solutions
  48. 48. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 48 Planning the Solutions Roadmap Solutions Roadmap
  49. 49. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 49 Implementing the Solutions
  50. 50. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 50 Want more? Check out our other great webinars this summer at: www.globalknowledge.ca/summerschool
  51. 51. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 51 Promotion! www.globalknowledge.ca/giftcard
  52. 52. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 52 TWITTER CONTEST INFO  1 Winner of Business Architecture: The Art and Practice of Business Transformation by William M. Ulrich and Neal McWhorter 1. Follow @GKCanada 2. Tweet @GKCanada: What EBA road map Model is built by Business Architects to facilitate value chain analysis and re-engineering #gksummerschool  Two winners will be chosen at random and contacted through direct message on Twitter.  Contest closes at 11:59pm EST on August 14
  53. 53. © 2014 Global Knowledge Training LLC. All rights reserved. 08/15/14 Page 53 PDU Information To claim 1 PDU for this webinar: GK R.E.P. Number: 1999 PMI Activity Name: Maximize Organizational Success with Precision Guided Enterprise Architecture PMI Activity ID/Number: WEB0814 1 PDU

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