Building a more cohesive organisation using business architecture
 

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In shifting the focus away from enterprise architecture being seen purely as an IT discipline, organizations are beginning to formalise the development of business architecture practices and business ...

In shifting the focus away from enterprise architecture being seen purely as an IT discipline, organizations are beginning to formalise the development of business architecture practices and business architecture outcomes.
The OpenGroup has made the differentiation between business, IT and enterprise architects through their various working groups and certification tracks.
However, industry at present is grappling to try and understand where the discipline of business architecture resides in the business and what value it can provide separate of the traditional project based business analysis focus.
This presentation will take the audience through an overview of some of the critical questions being asked by business and how these are addressed through the discipline of business architecture.
Using both method as well as case study examples, I will show the audience an approach to building more cohesion across the business landscape using business architecture techniques and artefacts.
The presentation will focus on using business motivation models, strategic scenario planning and capability based planning techniques to provide input into the strategic planning process.
It will also highlight some of the outputs through examples from engagements.

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Building a more cohesive organisation using business architecture Presentation Transcript

  • 1. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 31Building a More CohesiveOrganisation UsingBusiness ArchitectureFINAL V.10.0 –11TH MARCH,2013CraigMartinCOOandChiefArchitect ofEnterpriseArchitects
  • 2. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 32Mobile: +61 419 192 929Twitter: @eatrainingEmail: craig.martin@enterprisearchitects.com
  • 3. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 33Look Familiar60 000 views and counting
  • 4. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 34Related Webinar› Slideshare - Bridging businessanalysis and businessarchitecture - The Open Groupwebinar» http://slidesha.re/10oCKOY› Video on the OpenGroupWebinar site –» http://bit.ly/105xEYy
  • 5. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 35EA is a leading international provider of strategyand architecture services and capabilitiesChampioning Practice Awareness inthe Community• Chief Architect / CTO Round Tables• Virtual Teaming & PractitionerCollaboration• Open Group Participation• Industry EngagementLifetime Relationship with PractisingArchitects• Practitioner career lifecyclemanagement• Architecture training and certification• Professional development• Community involvement• PAYG payroll services• Learning forumsSkills Uplift for Organisations &Individuals• TOGAF® 9.1 Certification• ArchiMate® 2.0• Advanced / Applied EA• Business Architecture• Information Governance• Solution Architecture• BPMNStrategic Relationship WithCorporate Clients• Strategy & Architecture CapabilityImprovement• The delivery of strategic architectureoutcomes• Architecture delivery AcceleratorFrameworks• Resourcing & Talent• Managed ServicesLearningServicesArchitectServicesThoughtLeadershipEnterpriseServices
  • 6. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 36Man, Machine and the DogON THE INTRODUCTION PAGE OF A TIER 1 BANK STRATEGY DOCUMENT:"The factory of the future will have twoemployees:a man and a dog.The mans job will be to feed the dog.The dogs job will be to prevent the manfrom touching any of the automatedequipment.”Warren G Bennis
  • 7. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 37Utility(Foundation)InnovateBuildAdvantagesAssembleProlongAdvantagesMixReduceDisadvantagesWhats Business About?DIFFERENTIATIONThe Building Block Analogy
  • 8. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 38TacticalStrategicVisionaryWe develop advantages through the use of thestrategic planning disciplineThe language of strategic planning is often inconsistentMissionStrategiesTacticsVisionGoalsObjectives*Adapted from business motivation model - OMG
  • 9. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 39The Business strategy is often cascaded down into differentfunctional business units for deliveryThis often leads to a series of programs functionally divided across the business unitsMissionStrategiesTacticsVisionGoalsObjectivesBusiness Unit 1Program 1Program 2Business Unit 2Program 3Program 4Business Unit 3Program 5Program 6Each Business unit tends to createtheir own strategies to achieve theenterprise goals. These are often notaligned to the other business unitstrategiesThe language of strategy alsovaries across business units, thusreducing cohesion at thestrategic layerFragmentation thereforebegins at the strategic level
  • 10. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 310The minefield between strategy and projectsIn navigating the minefield between strategy and execution there are multiple possible failure pointsSTRATEGY PROJECTS   Strategy notsufficiently tied tooperationsNeeded capabilitiesnot properlyunderstood ormeasuredPlanners notaccountable fordeliveryBenefits aren’tquantified or tracedback to original goalsThe drivers of strategyare often misalignedThis often leads to some typicalstakeholder issues regardingtransformation exercisesAre we investing in the right areasacross the enterprise?Is my investment portfolio balanced acrossall of the economic value add dimensions?Are the strategic programs aligned,or for that matter, are they the rightstrategic programs?There is a lot of activity going on outthere, how do I know we are doingthe right things?Where can we take advantage ofsynergies across the major strategicprograms?
  • 11. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 311Loss of cohesion of effort across transformation exercises results in loss ofcohesion for the businessCompanies with a high level of cohesion affect EBIT directly4%8%12%16%20%24%28%32%0 20 40 60 80 100 120EBITMARGIN,2003-2007CAPABILITIES COHERENCE SCORECoca-ColaWrigleyPepsiCoKimberly-ClarkSara LeeConAgraMerckUnileverH.J. HeinzKraftGeneral MillsCloroxCampbell Soup CompanyP&G*Adapted from “The Coherence Premium”Harvard Business Review, June 2010A coherent organisation is one that isthought of and executed as a whole
  • 12. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 312The goal of a goodbusiness model is tocreate coherenceBuilding Cohesion Requires an Understanding ofthe components, and how to mix them in a mannerthat is innovative and differentiating› A Coherent Business Model is one that issynchronised around:» its market position,» its product and service portfolio; and» its most distinctive strategic capabilities› All of the above working together as a system› To bring coherence to these components requiresa variety of business skills and disciplinesThe EnvironmentThe Business ModelMarket ModelProducts andService ModelOperatingModel Markets Industries Customers Market Segment Channels Customer Relationships Value Proposition Offering: Products /Services Capabilities Processes / Value Chains Business Services Functions Data Applications Technology
  • 13. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 313Capability 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 the three components exists regardless of their maturity levelOne of the means to drive out cohesion is through capability based planningCapability basedplanning is one ofthe tools that looksat the best “mix” ofresources requiredto develop thiscohesionMissionStrategiesTacticsVisionGoalsObjectivesOutcomeCAPABILITYPeopleProcessTools
  • 14. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 314The capability mix challenge› Identifying the right resourcesto support the capabilities› Mixing these resourceseffectively to achieve thecapability outcomes› Identifying mixes ofcapabilities at a higher level todrive out business outcomesThe Correct assembly and mix of these capabilities will help with cohesion across the businessand drive out a successful strategy
  • 15. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 315Finding the Right Business MixesThe Challenge is reducing the time it takes to move from the unresolvedbusiness challenges space to the repeatable formulas spaceUnresolvedBusinessChallengesRules of thumbRobust,repeatable andreplicableformulas &processesUltimately all innovativealgorithms will become utility.* From Roger Martin (2009) The Design of Business
  • 16. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 316Who is best qualified to operate here?ANALYTICALTHINKINGINTUITIVETHINKING* From Roger Martin (2009) The Design of BusinessGOAL: Reliably produceconsistent, predictableoutcomesGOAL: Produce outcomesthat meet desiredobjectivesCertain business disciplines are required to reduce the time tocodifyKey disciplines are required to reduce the time taken to move unresolved business challengesinto reliable and repeatable processesShould investment go hereand who is qualified tooperate here?UnresolvedBusinessChallengesRules ofthumbRobust, repeatableand replicableprocessesSearch for“The EA Headspace”
  • 17. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 317ValueMandateEABCDResponsibility depends upon the mandate from businessThe Architecture Mandate - Value Increases when Mandate Increases.Business Architecture isseen as a positiveprogression away from IT*Adapted from Ruth Malan, Dana Bredemeyer• Maximize Product Profitability• Maximise Market Share• Maximise Customer Lifetime ValueImprove projectperformanceImprove enterprise wideprogram and portfolioperformanceImprove Business PerformanceImprove MarketPerformance (ShareholderValue)Improve Product/ServicePerformance
  • 18. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 318Improve projectperformanceImprove enterprise wideprogram and portfolioperformanceImprove Business PerformanceImprove MarketPerformance (ShareholderValue)ValueMandateImprove Product/ServicePerformanceEABCDWhat are the Possible Problem Scenarios?The problem space varies significantly depending upon the mandate.BUSINESSTRANSITIONSPACEWe are looking to acquirea variety of companies.How can we apportion ourassets across the companyto best take advantage ofan M&AThe Business is losing marketshare due to inefficienciesacross the value chain. Findout what the bottlenecks areand fix itThe business is goingthrough a majortransformation program.Deliver the solution on timeand under budget.Design the solutionfor an HR system
  • 19. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 319Strategic ThemesInitiative 5Initiative 6Understanding the Gap Between Strategy and Execution:SCENARIO 1 – BUSINESS IMPROVEMENT - SPAWNING INITIATIVES FROM THE STRATEGY MAPInitiatives straight from strategy often results in loss of cohesionStrategic ThemesInitiative 1Initiative 2Strategic ThemesInitiative 3Initiative 4Mandate: Improve enterprise wideprogram and portfolio performance
  • 20. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 320Understanding the Gap Between Strategy and Execution:SCENARIO 2 – BUSINESS TRANSITION - DEVELOPING THE UNIFIED BUSINESS MODELCreating a single unified business model helps build cohesion across the enterpriseStrategic ThemesCapability 1Capability 2Strategic ThemesCapability 5Capability 6Strategic ThemesCapability 3Capability 4Mandate: Improve BusinessPerformance
  • 21. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 321Understanding the Gap Between Strategy and Execution:SCENARIO 3 – PLANNING AND PERFORMANCE - DEFINING THE BUSINESS MODEL FOR CANDIDATESTRATEGIC SCENARIOSInjecting Business Architecture into the Strategic ScenariosWill Improve the Strategic Decisions as well as the executionof that strategySemiIntegratedUniversal BankProductSpecialistCustomerOwnerInfrastructureProviderMandate: Improve marketperformance
  • 22. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 322Understanding the gap between strategy andexecutionGoals and Drivers help define a driver tree hierarchy or value mapThe value mapwill help identifyenterprise alignedbusiness unitdrivers andleverage pointsExamples• Revenue enhancement• Margin enhancement• Operating efficiencies• Working capitalmanagement• Investment capitalproductivity• Capital structureoptimizationCORPORATELEVEL-SPECIFICExamples• Pricing strategy• Product assortment• Departmental emphasis• Product cost• Store operating costs• Corporate administrativecosts• Operating cash reserves• Inventory management• Accounts payablemanagement• Store base• Leases• Intangible assets• Distribution assetsBUSINESSUNIT-SPECIFICExamples• Purchase frequency• Household penetration• Transaction size• Gross margin• Store operating expense%• SG&A expense %• Distribution cost percase• Days cash on hand• Inventory turns-storeand DC• Account payable cycle• Store-level profitability• Debt/Equity ratio• Annual capitalinvestmentOPERATINGVALUE DRIVERSEarning loyalty & trustwith customers &communityMake ourProcesses simplerand fasterEmpowerthe frontline toDeliver IntegratedFinancial SolutionsDeliver newand relevantproductsCreate aperformancecultureREVENUECOSTSWORKINGCAPITALFIXEDCAPITALNOPLATINVESTEDCAPITALEVA®
  • 23. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 323Understanding the Strategic ScenariosEach strategic scenario can be evaluated in line with the value disciplines of the organizationDRIVER TREESAND VALUE MAPS& GOALSThese value disciplines will help decisions around the strategicbalance between efficiency and effectivenessThere is often fragmentation around value disciplines which results in“competitive” forces and flawed decision making
  • 24. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 324Developingbusiness modelsfor each scenarioEach strategic scenario will have a set ofcorresponding business model options thatwould need to be evaluatedSemi IntegratedUniversal BankThe EnvironmentThe Business ModelMarket ModelProducts andService ModelOperatingModel Markets Industries Customers Market Segment Channels Customer Relationships Value Proposition Offering: Products /Services Capabilities Processes / ValueChains Business Services Functions Data Applications Technology
  • 25. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 325Documenting the Business ModelsBuilding cohesion requires understanding across the entire business model› 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 InnovationThe EnvironmentThe Business ModelMarket ModelProducts andServiceModelOperatingModel Markets Industries Customers Market Segment Channels CustomerRelationships Value Proposition Offering: Products /Services Capabilities Processes / ValueChains Business Services Functions Data Applications Technology
  • 26. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 326What we have found in large accountsAn ownership gap for business architecture exists - Lines of responsibility around cohesion and business architecture, are often unclearFunctionalCapabilitiesCross-FunctionalCapabilitiesEnterpriseCoherencyCapabilitiesStrategicArchitectureMandate –BusinessOwnershipIT ArchitectureMandate –IT OwnershipBusinessArchitectureMandateUndefinedCohesion MandateUndefined - Enterprise Planning Ownership
  • 27. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 327The functional capability anchor model provides the utilitybuilding blocks of the organisationThe anchor model represents the "map" of the organisationInteract with CustomerFulfilOrganisation EnablementInteract with Partner & SupplierFulfilment OperationsDate created:09/02/2012Created by: Enterprise ArchitectsDate updated:21/02/2012Updated by: Enterprise ArchitectsVersion:v8.0Description: Capability Anchor Model describing investment dollars across capabilities (Planned Capex & IT Opex)Stakeholders: ePMO, IT GM’s, CIOConcerns: This model aims to answer these concerns: 1. Where are the IT (Application and Technology) costs being apportioned across the business capabilities 2. Where are the planned project investment costs being apportioned across the businessPartner &Supplier SegmentsChannelsCustomer SegmentsStakeholdersSOURCE FULFIL SERVEStakeholder 1Stakeholder 4Governments &EnterprisesCommercial SalesSmall ChargeAccounts / SMEsCash CustomersLicenseesProducts & ServicesLetters International Letters Parcels International Parcels PublicationsAddressing ServicesExpress LettersWarehousingServicesTrust Based Services Banking ServicesBill PaymentServicesInsurance ServicesStakeholder 2Stakeholder 3Stakeholder 5Stakeholder 6FranchiseesContractorsSuppliersPostal Org &RegulatoryJoint VenturesSubsidiariesCourierFreight 3PL 4PL Express Air & Road Boxes and Bags Gen Merchandise Postal Products Philatelic Products Money Transfer E-Commerce E-CommunicationsE-StorageInfrastructureE-Finance E-MarketingMailroom SolutionsIdentification &Verification ServicesOnline Sales &ServicesRetail ShopFace to FacePostal FacilityPhone / CallCentreWeb / ElectronicFax / MailOutsourcersChannelsGovernment &Enterprise SalesForceCommercial SalesForceSolution/ProductExpertsBusiness CentreRetail ShopDirect Mail /HardcopyTelephone AccountManagersCall CentresInternetPartner & Supplier SupportTransaction ManagementCustomer ManagementFulfilment SupportPeople ManagementBusiness ManagementAsset ManagementSystems ManagementFinancial ManagementStrategy & MarketingEnterprise Capability Model – Strategic Costs & Program Impacts63. Retail Merchandise Management2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,260,000$0Current IT OpexProduct Management2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $11,333,000$0Current IT OpexOperational Services1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $11,333,000$0Current IT Opex33. Returns Management1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$137,000Current IT OpexProduct returns are managed to minimise the cost and timeand meet customer expectations.53. Localised Price & RevenueManagement1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$108,000Current IT OpexLocally configured retail sites that maximise the revenuefrom goods and services36. Fulfilment Quality ControlN/AApp.N/ADataN/AProc. N/ATech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$460,000Current IT OpexReduced errors in processing customers products andservices35. Integration Management1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$23,364,000Current IT OpexIntegrated products and services solution meeting individualcustomer needs.34. Customer Order Tracking1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$9,352,000Current IT OpexCustomers ability to track products and services throughPost networks meets their expectations30. Network Development1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $15,734,000$625,000Current IT OpexPhysical and electronic networks supporting the requiredcapacity and capability of current and future products andservices29. Operations Management1App.2Data1Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $24,211,000$8,767,000Current IT OpexEfficient use of resources to process the work demand atPosts facilities31. Network Management1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $15,734,000$0Current IT OpexOptimum use of Posts networks for the delivery of productsand services32. Address Information ManagementN/AApp.N/AData4Proc. N/ATech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $14,163,000$11,165,000Current IT OpexHighly accurate postal address file that supports efficientuse of Posts sorting equipmentOriginationN/AApp.N/ADataN/AProc. N/ATech.Program(s)Program impactsP M S M R FCapability MaturityProjected Costs $0$0Current IT Opex55. Partner Relationship Management2App.2Data1Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$22,858,000Current IT OpexImproved working interaction with Posts Partners andsubsidiaries51. Supplier Relationship Management2App.2Data1Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$22,516,000Current IT OpexImproved performance by Posts suppliers in the delivery ofproducts and services50. Procurement Management2App.2Data1Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$24,113,000Current IT OpexGoods and services acquired at reduced cost by use ofapproved suppliers and providers49. Sourcing Management2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$362,000Current IT OpexIdentification of Product and Services suppliers for Post thatwill deliver Posts requirements at minimal cost.5. Strategic Alliance, Acquisition andDivestment Management1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$648,000Current IT OpexNew alliances/acquisitions and divestments that increasePosts business performance1. Research, Analysis & Insights1App.1Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $28,302,000$1,064,000Current IT OpexTurning market research intelligence into medium and longterm strategies to exploit opportunities. Gaining competitiveedge in the market place.2. Corporate Vision & StrategyManagementN/AApp.4Data1Proc. N/ATech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $24,211,000$648,000Current IT OpexThe business model that reflects short- and long-termbusiness vision, strategies and plans.8. Market Planning2App.1Data1Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $28,302,000$0Current IT OpexFocussed and coordinated actions to exploit the identifiedproducts and services market that Post intend to participatein.9. Offer Development1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $24,211,000$0Current IT OpexProduct & service offers that meet the customer need in aeffective and cost efficient manner.10. Product & Service Management1App.2Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $24,211,000$21,962,000Current IT OpexEfficient product & services lifecycle.11. Market Analytics1App.1DataN/AProc. N/ATech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $12,568,000$0Current IT OpexMarket insights that drive change to corporate strategy,marketing and product & services development.56. Advertising & PromotionsManagement1App.1Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $12,568,000$340,000Current IT OpexEffective advertising & promotional plans & campaigns insupport of product & services.48. Asset Lifecycle ManagementN/AApp.2Data2Proc. N/ATech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $15,734,000$1,386,000Current IT OpexAsset usage is optimised for its purpose.58. Property Management1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $15,734,000$0Current IT OpexPosts property resources are fully exploited and benefitsare maximised.37. Financial Governance2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$23,588,000Current IT OpexHighly accurate and timely financial management isperformed at Post.38. Financial Advice2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$822,000Current IT OpexHigh quality and insightful financial advice provided fordecision making.39. Financial Control2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$2,008,000Current IT OpexHigh quality control of transactions, investments, loans, andsuperannuation44. Systems Planning4App.4Data2Proc. 4Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $14,163,000$702,000Current IT OpexEnterprise business system that supports the short and longterm corporate strategies.45. Systems Delivery2App.2Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $18,254,000$2,241,000Current IT OpexAn uninterrupted systems services for Posts day to daybusiness operation.47. IT Services Operation &Management4App.4Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $18,254,000$3,546,000Current IT OpexA comprehensive service resources infrastructure to meetthe IT service demand of the business.40. People Planning2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$1,458,000Current IT OpexA motivated and work/ skill coordinated workforce that isable to execute corporate strategies effectively.41. People Capability2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$1,211,000Current IT OpexA workforce that is capable to adapt itself to the environmentchange and an organisation that is responsive to thecustomer needs.43. People Management & Support2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$24,995,000Current IT OpexEfficient and effective people management at Post42. People Performance2App.1Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $12,568,000$271,000Current IT OpexStaff are adequately remunerated and their workperformance is recognised and rewarded accordingly.52. Workforce Relations ManagementN/AApp.N/ADataN/AProc. N/ATech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$29,000Current IT OpexEmployer and employee relations is managed efficiently andeffectively through regular consultations and availability ofvarious dispute resolution mechanisms.19. Agency Services Management2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$3,410,000Current IT OpexStandard, efficient and reusable capture, validation andsettlement of 3rd party financial transactions.20. Information Services Management4App.2Data2Proc. 4Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $14,163,000$0Current IT OpexInformation and knowledge are retained in Post whileknowledge gap is identified.21. Lodgement Preparation1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $14,163,000$552,000Current IT OpexMail lodgements that require least possible cost and time toprocess through the Post mails network.22. Transport1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$2,632,000Current IT OpexMail pickup and transport between Post facilities thatsupports service obligations and customer expectations atleast possible costData Management1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $11,333,000$0Current IT OpexPayments1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$0Current IT Opex60. Customer Billing & Payments1App.2Data1Proc. 4Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$1,184,000Current IT OpexEfficient billing and payment performed17. Customer Service2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$24,401,000Current IT OpexFulfilment of customer order performed to the customerssatisfaction.15. Sales Execution1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $28,302,000$22,515,000Current IT OpexPost wins new customers while maintaining the existingaccounts in line with the sales strategy.16. Customer Order and RequestAcceptance1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$4,998,000Current IT OpexOrders and requests from customers received in a mannerthat ensures easy fulfilment. Upsell/cross-sell performed.61. Marketplace TransactionFacilitation1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$0Current IT OpexIncrease in Posts parcels revenue through provision ofonline trading including easy access to Posts Parcelsservices62. Customer Information Management1App.1Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$669,000Current IT Opex18. Customer Channel Management1App.2Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $24,211,000$26,401,000Current IT OpexIncrease revenue through offering multiple customerschannels.Pre-Sales1App.1Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $11,333,000$0Current IT OpexSales/ Cross-Sell1App.1Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $11,333,000$0Current IT OpexService Customer1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$0Current IT Opex14. Sales Planning and Management1App.1Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $12,568,000$6,267,000Current IT OpexEffective and efficient customer service operation.3. Business Change Management2App.1Data1Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,604,000$1,506,000Current IT OpexMajor investments and programs yield benefits as planned4. Innovation Management2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$0Current IT OpexSustainable revenue growth for Post by delivering innovativeproducts and services to meet our customers present andfuture needs6. Corporate Governance, Policy andCompliance2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$1,284,000Current IT OpexPost functions within its regulatory and corporate obligations7. Engagement & Communications2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$782,000Current IT OpexThe good standing of Posts brand is maintained with itsstakeholders. Communications are consistent and handledin a timely and appropriate manner.13. Business PerformanceManagement2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$1,502,000Current IT OpexPosts performance is visible and there is quality informationfor strategic decisions making.46. Information & KnowledgeManagement1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $26,731,000$136,000Current IT OpexInformation and knowledge are retained in Post whileknowledge gap is identified.57. Corporate Responsibility andSustainability2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $8,477,000$0Current IT OpexPost delivers its business outcomes whilst maintaining itsenvironmental and social responsibility.64. Contract Lifecycle Management1App.1Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $12,568,000$0Current IT OpexRisk Management1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $11,333,000$0Current IT OpexStrategy & Market Analysis1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$0Current IT Opex26. Manufacture ProductsN/AApp.N/ADataN/AProc. N/ATech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $0$104,000Current IT OpexPost products developed at least possible cost and time.25. Deliver1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $14,163,000$7,557,000Current IT OpexMail delivered within the customers expectation of time andconvenience and at least cost.24. Sort2App.2Data1Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $15,734,000$9,332,000Current IT OpexSorted and sequenced Mail that minimises the cost and timerequired to deliver to the customer.23. Lodgement Acceptance1App.1Data1Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $15,734,000$10,017,000Current IT OpexMail lodgements that comply to Posts sorting and otherrequirements and that have been charged appropriately27. Goods Storage and InventoryControl2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$22,264,000Current IT OpexEfficient storage of goods that ensures clients and Postretail sites orders can be fulfilled to their expectations.28. Order Fulfilment1App.2Data2Proc. 1Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$137,000Current IT OpexAssembled orders for Post Retail Stores and Clients thatensures accurate and timely delivery.59. Freight Import and Export2App.2Data2Proc. 2Tech.Program(s)Program impactsP M S R F eCapability MaturityProjected Costs $22,640,000$0Current IT OpexFreight delivered to its destination in good condition by therequired date.Cost AssumptionsCurrent IT Opex costs includeapplication costs for the following:· Outsourced contract management,· Maintenance,· Depreciation, and· Technical service chargesThe current opex costs are the annualbudgeted costs for the 2011/2012period.Derived from data sourced from the EKBProposed Capex costs include theprojected investment associated withthe following strategic programs:· Parcel,· Mail,· Sales,· Retail, and· Financial ServicesThe figures represent the “whole oflife” program investment forecastedfrom 2012/13 through to 2016/17 as atthe 24thof Feb 2012.Projected opex and capex costs forProject X have been aligned to themapping of retail program impacts.The allocation of projected investmenthas been derived from the analysisconducted to assess the impacts ofthe strategic programs to theenterprise capabilities.Derived from data sourced from 24thof Feb,2012 PGB and EC submission paperLegendProject ImpactsNewUpliftDecommission4 Re-useN/A1234N/AMaturity AssessmentsAdhocRepeatableDefined/Managed4 Optimized1234P ParcelM MailS SalesR RetailProgram of WorkF Financial Servicese eServices
  • 28. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 328The Functional Capability Anchor Model - OverlaysMany Overlays Can be Used on this Anchor ModelCL
  • 29. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 329The functional capability anchor model – overlays:The capability overlap is identified to help improve cohesion across the enterpriseClearer visibility of synergies is required to consolidate strategic efforts across the major programsChannel (Relationship Managers, Mobile Sales Force& 3rdParty Distribution)NB Retail QuotationProvisionNB Retail Identificationand AuthenticationNB Retail CustomerNeeds AnalysisNB Retail ContactManagementNB Retail AccountServicingNB Retail OriginationNB Retail CustomerInformationManagementNB Retail Query andDispute ManagementNB Retail LeadReferralANZ Retail QuotationProvisionANZ RetailIdentification andAuthenticationANZ Retail CustomerNeeds AnalysisANZ Retail ContactManagementANZ Retail AccountServicingANZ Retail OriginationANZ Retail CustomerInformationManagementANZ Retail Query andDispute ManagementANZ Retail LeadReferralRetail WorkforcePlanningNB Retail SalesReportingANZ Retail SalesReportingANZ Retail LeadFulfilmentNB Retail LeadFulfilmentNB Retail CreditDecisioningClient Retail CreditDecisioningNB Retail CustomerCorrespondenceANZ Retail CustomerCorrespondenceNB Retail CustomerOn-boardingANZ Retail CustomerOn-boardingNB Retail PromotionExecutionANZ Retail PromotionExecutionANZ ProspectingNB ProspectingRetail CommissionManagement
  • 30. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 330The Functional Capability Anchor Model – Overlays:Hotspots and Issues are identifiedBusiness architecture efforts are often tilted towardseither an issue centric view or a strategic centric view –both views need to be consideredSome hot spotsexist underproductmanufacturing
  • 31. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 331The Functional Capability Anchor Model – Overlays:Current and Planned Investment is identifiedOften issues and planned investment are not alignedInvestmentskewedtowardsdistributioncapability
  • 32. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 332The Functional Capability Anchor Model – Overlays:Comparing Investment to Issues to Identify Loss of CohesionComparing Multiple Overlays Often Produces High Value Insights
  • 33. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 333The Value of The Functional Capability ModelAnchor Models Have a Short Business Value Lifespan› The Business Anchor Model tends to be Driven by IT› It is often used as a tool to “talk” to the business to maintain architecturalintegrity› The capability models resonate more with the IT & architecturedisciplines, not necessarily with the business disciplines› The Capability model becomes more the execution focussed piece – it isin fact the downward facing artefact› Cross functional capabilities start to move upwards and resonate morewith business stakeholdersThe EnvironmentThe Business ModelMarket ModelProducts andServiceModelOperatingModel Markets Industries Customers Market Segment Channels CustomerRelationships Value Proposition Offering: Products /Services Capabilities Processes / ValueChains Business Services Functions Data Applications Technology
  • 34. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 334Using Capabilities in The Functional Anchor ModelCapabilities and Capability Models require a different modelling technique› Talk to business stakeholders in terms of People, Process and Tools that drive out anoutcome› To come up with the detail around the these resources, you use the business analysiscommunity› Cluster these capability components into capability models later, since these are themodels that the architecture discipline tends to use› This approach also helps business stakeholders begin to understand the resources withina capability› This approach also begins to expose the resources for discussion and helps facilitate athe assemble and mix discussionsThe EnvironmentThe Business ModelMarket ModelProducts andServiceModelOperatingModel Markets Industries Customers Market Segment Channels CustomerRelationships Value Proposition Offering: Products /Services Capabilities Processes / ValueChains Business Services Functions Data Applications Technology
  • 35. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 335The Cross Functional Capability Anchor Model Helps Identifythe Better Mix of Capabilities for Business OutcomesIts at this point that business begins to see the true value of using capabilitiesStandard functional capabilities canbe aligned to a value chainCross functional capabilities assemble and mix functional capabilities toachieve outcomes in the value map or driver treeCross functional capabilities each drive out differentoutcomes. Underlying functional capabilities will havevarying perspectives of capability maturity and capabilityupliftYou can also use cross functional models as scenarios totest the capability anchor model validity
  • 36. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 336The Cross Functional Capability ModelThe Process Layer Plays a Strong Role in assembling capabilities for differentoutcomes36PROCESSSign Up & IntegrateCAPABILITY20. Information Services ManagementCAPABILITY15. Sales ExecutionPROCESSA1. Explore and comparepotential providers andservicesPROCESSB2. Sign up and activateaccountPROCESSC3. Integrate my storewith Australia Post’s API’sprecedes precedes precedes precedesBUSINESS SERVICECustomer SalesManagementBUSINESS SERVICEPartner CollaborationPROCESSC1. Receive information onhow the systems andprocesses will workPROCESSC2. Install the necessaryhardware / software onmy systemsis realized byLOGICALAPPLICATION COMP.Customer SalesManagementLOGICALAPPLICATION COMP.Enterprise ResourcePlanningLOGICALAPPLICATION COMP.Partner CollaborationManagementLOGICALAPPLICATION COMP.Security Managementcommunicates with communicates withcommunicates withimplementsis realized byimplementsACTORPost StaffDATA ENTITYSales OrderACTORPost Staffparticipates in participates inis processed byconsumesSAP - CRM SAP - ERP auspost.com.auIAM - OIMis processed byACTORFionaparticipates inCustomerCAPABILITYPeopleProcessTools
  • 37. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 337The Cross Functional Capability ModelCustomer Experience Journeys can also be used as guides to assembling crossfunctional capabilitiesCust Journey ViewCust Interactions ViewCapability to JourneyAJourney to CapabilityCapability to LogicalData (via Business Service)Capability to LogicalApp (via Business Service)DBThe EnvironmentThe Business ModelMarket ModelProducts andServiceModelOperatingModel Markets Industries Customers Market Segment Channels CustomerRelationships Value Proposition Offering: Products /Services Capabilities Processes / ValueChains Business Services Functions Data Applications TechnologyCWe often find product architecture missing inthis space:• Value Maps• Product and Offering Maps• Design Models
  • 38. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 338The Cross Functional Capability ModelUse Stereotypes to Kick-start your EffortsStereotypes are a Recipe Set of Business Model Mixes and their outcomesDIFFERENTIATEDBUSINESSMODELSUtility(Foundation)Business Model StereotypesInnovateBuild AdvantagesAssembleProlongAdvantagesMixReduceDisadvantages
  • 39. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 339AssembleBuildAdvantagesMixProlongAdvantagesOptimiseReduceDisadvantagesThe Cross Functional Capability ModelUtility Business Model Stereotypes provide a set of standardbusiness model execution styles to work withAggregator Category Leader Consolidator Customizer DisintermediatorExperienceProviderFast Follower Innovator Platform provider Premium PlayerRegulationNavigatorReputation Player Risk AbsorberSolutionsProviderValue PlayerThese Stereotypes are different from reference modelsStandard assembly patterns offunctional and cross functionalcapabilities can be leveraged asfoundation business models tokick-start your efforts* Based upon “The Essential Advantage” Leinwand & Mainardi
  • 40. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 340The Cross Functional Capability ModelExample: Experience ProviderEach stereotype can have a standalone business model to be used as a pattern - Experience Provider StereotypeMass MarketLove Mark Switching CostsSeamless Music ExperienceHardware DesignBrand Content & AgreementsOEMS Record CompaniesPersonalisedSupportRetail Stores Apple Stores Apple.com iTunesMarketingBuilds enjoyment, engagement, and emotionalattachment through strong brands or experiences*Apples Example from “Business Model Innovation” Osterwalder
  • 41. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 341The Cross Functional Capability Model:Using the Business Motivation Model to Focus on OutcomeThe Motivation Model resonates well with business sponsors› Business Stakeholders often find traditional businessarchitecture models difficult to consume› We found that the motivation model resonates well withbusiness stakeholders› Helps move away from pain point architecture to focus onoutcomes› The challenge is that when you show this to the architect itsscoffed at – yet when you show it to the businessstakeholder their response is – this is Gold – this is what Ihave been looking for.The EnvironmentThe Business ModelMarket ModelProducts andServiceModelOperatingModel Markets Industries Customers Market Segment Channels CustomerRelationships Value Proposition Offering: Products /Services Capabilities Processes / ValueChains Business Services Functions Data Applications Technology
  • 42. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 342Strategic alignment is determined by mapping of capabilitydimensions to value leversVALUE LEVERSMaintenanceCostReductionProductsperMonth(BrokersandAdvisors)PersistencyAcquisitionCostReductionNumberofAdvisorsandBrokersPremiumSizeFundRetentionPercent Contribution of CurrentCapability Resources to Target Values48% 167% 100% 80% 18% 0% 60%CAPABILITYDIMENSIONSProductsBusiness ProcessInformationTechnology (Infrastructure)ApplicationsFacilitiesExternal Relations (Supply Chain andPartnerships)Organization and PeopleVery HighHighMediumLow/MediumNone0-49% of TargetValue50-74% ofTarget Value75% of TargetValue
  • 43. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 343Use Capability Mixes to Re-align the InvestmentPortfolio› Provide executives with a cohesive,non-project based view of theinvestment spend› Address Capex and Opex conflicts› Address duplication of effort acrossthe portfolio landscape› Maintain alignment of the ensuingprograms› Allows business stakeholders to havea consistent business focussed viewof the project investment and itsstatusSupport the investment planning cycle and cohesion of programs
  • 44. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 344Plan & MarketInformation,Knowledge &SystemsPeopleAssets & 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 initiativesHIGH COVERAGELOW COVERAGEInitiativeCoverage(primary impacton L1 and L2activities only)Capabilities with ‘high’ potential for improvement from issues layerOften the Investment Slate can be adjusted to cater for the misalignment – This is the biggest challengeRef Capabilities# In-flightInitiatives% GapC14Sales Planning andManagement9 0%C15 Sales Execution 6 0%C30 Network Development 6 0%C3 Plan to Realize 5 11%C10Channel StrategyManagement4 25%Ref Capabilities# In-flightInitiatives% GapC17 Customer Service 9 0%C34 Track and Trace 4 0%C45Information, Knowledge &Systems Delivery2 14%C43People Day-to DayManagement4 40%Ref Capabilities# In-flightInitiatives% GapC1Research, Analysis &Insights4 50%C8 Market Planning 3 60%C13Business PerformanceManagement4 75%C2Corporate Vision &Strategy Management2 100%C5Acquisition andDivestment2 100%C40 People Planning 4 100%C48Asset LifecycleManagement3 100%Ref Capabilities# In-flightInitiatives% GapC44Information, Knowledge &Systems Planning11 63%C45Information & KnowledgeGovernance11 67%C41 Recruit & Retain People 5 21%C4 Innovation Management 3 100%C51Supplier RelationshipManagement2 100%Strategically ImportantYES NO
  • 45. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 345Dealing with The Change FalloutBuilding Cross Functional Teams to Facilitate ChangeCreation of a Unified Team of cross enterprise disciplines to help socialise thechanges required for theinvestment slateChangeManagerFinancePMOBusinessImprovementStrategyTechnologyCombination of People,Process & technology to driveout an outcome throughprojects
  • 46. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 346The degree of change effort to move to the future state isevaluatedChange Frameworks applied to your process components can help determine impactCurrentStateFutureStatePain Points – InefficienciesThe application submitted by the consultant is often incomplete. The application is reviewed for completeness and adjudicated. The conditional approval, along with a list orrequired documents are then sent back to the MS, who will communicate the results, a conditional approval, back to the applicant. This process can take several days and requires asignificant time and effort from RBC resources.What would a truly transformational scenario look like?New Capabilities1. Portable credit scoring systemand rules engine2. Document verification at POS3. Automated disbursementIncrementalImprovementSignificantImprovementChangetheGameRequired ChangesHow are pain points addressed?Credit scoring engine must be available to the mortgage specialist, permitting an on-the-spot adjudicationDocument verification enabled at the point of sale by the cons.Highly automated process which advances funds without the need for the human intervention1123Contacts bank torequest mortgageCons. meets withthe applicantApplication iscompleteApplicationsubmitted foradjudicationApplication isadjudicatedResults arecommunicated toMSApplicant getsconditionalapprovalApplicant submitsrequired docsDocuments areverifiedClient executesdocumentationMortgage isapprovedMortgage is set up onbank systemsFunds are advanced1Contacts bank torequest mortgagerep meets with theapplicantApplication iscompleteApplicationadjudicated on thespotApplicant getsconditionalapprovalApplicant submitsrequired docsDocuments areverifiedClient executesdocumentationMortgage isapprovedMortgage is set up onbank systemsFunds are advanced1Contacts bank torequest mortgageCons meets with theapplicantApplication iscompleteApplicationadjudicated anddocs verifiedClient executesdocumentationMortgage isapprovedFunds are advanced23
  • 47. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 347Business Model AssessmentBusiness Model Components0.01.02.03.04.05.0ShareholderCustomerEmployeeProduct OfferingPrice StructureDistributionBrand / ReputationCustomer SegmentCustomer ExperienceNetwork CapabilityOperational Efficiency / ITFinancial CapabilityBusinessSystemsCustomer ProductVisionEach Candidate Business Model Can be Evaluated Against the Value Driver DimensionsMeasure the value ofeach possibleoperating model andtheir ability to supportand deliver thestrategic scenarios
  • 48. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 348Capabilities and cross functional capabilities are evaluated inlight of all the change factorsThe capability mixes are evaluated against each scenario to determine the optimal path goingforwardRequirements: Program “x” requires a $100M 5-year net benefit and must be implemented in under 3 years.Strategic ScenariosCross Functional Capabilities
  • 49. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 349RoadmappingLook to Mature Capabilities Through IncrementsCapabilities Basic Intermediate AdvancedCustomer Service1. Service Team Trained and EquippedMarketing Execution2. Marketing Playbooks Automated3. Marketing and Sales Campaign Pilot5. Advertising Revenue Adjustment Calculation7. Marketing and Sales Campaign Pilot6. Customer Sat Score & Stakeholder Sat ScoreSales Execution1 2 3 4 5Current State Future State2. Sales Playbooks Automated4. Marketing and Sales Campaign Prototype5. Sales Team Training7. Cross Functional Process Automation6. Pilot12 3 7 87654223789176542Maturity9Capabilities increase anddecrease maturity over timedepending upon outcomes.Plan for increments that canbe absorbed by thebusiness
  • 50. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 350The Planning Roadmap OutcomeArchitecture Roadmap – 3 Year Plan (FY11 to FY14)
  • 51. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 351Socialise the Architecture:The Architecture Storyboard WalkthroughThese methods help the architecture speak for itself
  • 52. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 352In Closing:Responsibility
  • 53. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 353Business Architecture and Business AnalysisWhich of these disciplines are the most qualified to handle the relationship with thestakeholder?Context of WorkUnderlyingCompetencyDetail Focus Big PictureFoundationalAdvancedEntrylevelBAJuniorBAInter-mediateBASeniorBAAdvancedGeneralistBAAnalystBizArchSeniorBizArchPrincipalBizArchMasterBizArchDistinguishedBizArchBusinessAnalysisBusinessArchitectureStrategic BusinessArchitectPrincipal BusinessArchitectBusinessArchitect
  • 54. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 354Lack ofOpportunityThe Current Business Analysis Career PathDilutes the true ValueThe progression or the business analyst often moves from business understanding to management anddelivery type functionsTimeKnowledgeOfBusinessEntryLevel BAJuniorBAIntermediateBASeniorBABA ProjectLeadBA ProgramLeadBA PracticeLeaderBusinessRelationshipManagerPrincipal BusinessArchitectStrategicBusinessArchitectDelivering PathThought leadership in terms ofthe utility layer, standards,replicating, reliability etc.Managing PathThought leadership in terms ofmanagement, delivery, changeand politicsPlanning PathThought leadership in termsof innovation, businessmodels and mixes
  • 55. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 355The Business Architect MandateRole Confusion Exists Due to Lack of a Clear Mandate – this results in overlap of function, output and valueEnviron.Models,CompetitorAnalysis,StrategicDiagnosisSegmentationPositioning,Strategy Map,Decision TreesPerceptualmapping,distributionchannels andmodelsCustomerExperience,Journey Maps,Learning MapsCampaignModels,AdvertisingMessages, KeyMessagesCompetitorStrategy,ExpansionStrategy,InnovationStrategyMarketing Mix,ProductLifecycle Model,Pricing andCash FlowanalysisRegressionAnalysis andforecasting,Platform andExpansion PlansDesign models,Value Maps,Product andOffering Maps,Design ModelsProduct LineplansMotivationModel, DriverTrees, SystemsTheoryOrg. Model andStructures, Org.Culture, Partnerand suppliermodelsChangeModels,OrganizationUnit model,Org. learningmodelsResourceManagementand SchedulingproceduresContracts, Timeand ExpenseProceduresPerformance,BusinessStructures,Value MapsRisk Models,Growth Models,CapitalStructureModelsPerformanceAlignmentmodel, RootCause ModelBalancedScorecard,FinancialreportingFinancialReportingProcedures,EPMValue Chain,Value Streams,Decisions &EventsCapabilityModelsProcess MapsFunctionModelsUse CasesProcess ModelsWorkflows &ActivitiesOperatingproceduresInfo MgtPrinciplesInfo UsePoliciesMeta-DataDefinitionSubjectClassificationInformationClassificationEnterprise InfoModel, InfoLifecycle Model,HumanInterface ModelCustodianModel,IntegrationView,PresentationModelsSecurity Rules,BI Reports, UserInterface,Warehouse anddatamartsHealthAssessmentApplicationPrinciplesApplicationFrameworkCurrent StateTarget StateServicesDefinitionsFunctionModelsWiringDiagramsActivity ViewsPatternsDeploymentModelApplicationStandardsResourceEstimates?Class/ModuleViewConfigurationModelsData PrinciplesReference DataStdsData Dictionary,Data qualityprocessesData DirectoryField LevelViewsTechnologyWatchHealthAssessmentAsset LifecycleTechnologyPrinciplesTech ReferenceModelCurrent StateTarget StateServiceCatalogueServiceDefinitionMud Maps(N/W, etc.)TechnologyStandardsCMDBManagementContextualConceptualLogicalPhysicalImplementationMarket Application Data TechnologyProducts &Services Organizational PerformanceProcess &Function Info
  • 56. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 356Confusion Regarding the BusinessArchitecture RoleThis is where the crowding is. The Bridge Between Business and Technology. Individuals need to differentiate themselvesfrom this spaceEnviron.Models,CompetitorAnalysis,StrategicDiagnosisSegmentationPositioning,Strategy Map,Decision TreesPerceptualmapping,distributionchannels andmodelsCustomerExperience,Journey Maps,Learning MapsCampaignModels,AdvertisingMessages, KeyMessagesCompetitorStrategy,ExpansionStrategy,InnovationStrategyMarketing Mix,ProductLifecycle Model,Pricing andCash FlowanalysisRegressionAnalysis andforecasting,Platform andExpansion PlansDesign models,Value Maps,Product andOffering Maps,Design ModelsProduct LineplansMotivationModel, DriverTrees, SystemsTheoryOrg. Model andStructures, Org.Culture, Partnerand suppliermodelsChangeModels,OrganizationUnit model,Org. learningmodelsResourceManagementand SchedulingproceduresContracts, Timeand ExpenseProceduresPerformance,BusinessStructures,Value MapsRisk Models,Growth Models,CapitalStructureModelsPerformanceAlignmentmodel, RootCause ModelBalancedScorecard,FinancialreportingFinancialReportingProcedures,EPMValue Chain,Value Streams,Decisions &EventsCapabilityModelsProcess MapsFunctionModelsUse CasesProcess ModelsWorkflows &ActivitiesOperatingproceduresInfo MgtPrinciplesInfo UsePoliciesMeta-DataDefinitionSubjectClassificationInformationClassificationEnterprise InfoModel, InfoLifecycle Model,HumanInterface ModelCustodianModel,IntegrationView,PresentationModelsSecurity Rules,BI Reports, UserInterface,Warehouse anddatamartsHealthAssessmentApplicationPrinciplesApplicationFrameworkCurrent StateTarget StateServicesDefinitionsFunctionModelsWiringDiagramsActivity ViewsPatternsDeploymentModelApplicationStandardsResourceEstimates?Class/ModuleViewConfigurationModelsData PrinciplesReference DataStdsData Dictionary,Data qualityprocessesData DirectoryField LevelViewsTechnologyWatchHealthAssessmentAsset LifecycleTechnologyPrinciplesTech ReferenceModelCurrent StateTarget StateServiceCatalogueServiceDefinitionMud Maps(N/W, etc.)TechnologyStandardsCMDBManagementContextualConceptualLogicalPhysicalImplementationMarket Application Data TechnologyProducts &Services Organizational PerformanceProcess &Function Info
  • 57. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 357The Various Roles and How They Support Decision MakingMoving unresolved business problems into the utility space is a journey across the complexity space thatis supported by both the business architects and business analystsSoftwareAutomationProjectsFundsinvestmentWidgetassemblyCredit cardapprovalInventoryManagementOutsourcingProjectsMajor re-designprojectsSix-sigma basedprocessimprovementanalystsNew ProductdesignDeals with othercompaniesInternationalDeliveryOn-linepurchasingERP basedprocessimprovementComplex Processes, notpart of company’s corecompetency: OutsourceComplex, dynamicprocesses of high value:undertake businessprocess improvementefforts that focus onpeopleStraightforward, staticcommodity processes:use automated ERP-Typeapplications and / oroutsourceStraightforward, static,and valuable: automateto gain efficiencyHighHighLowLowMust be done but adds littlevalue to product or servicesVery important to success, highvalue added to products andservicesStrategic ImportanceProcessComplexityandDynamicsComplex negotiation, design, ordecision processMany business rules; expertiseinvolvedSome business rulesProcedure or simple algorithmOrganizationHeuristicsPrincipalBusinessArchitectsBusinessAnalystsStrategicBusinessArchitectSeniorBusinessAnalysts*Adapted from “Business Process Change” by Paul Harmon
  • 58. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 358Questions?