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Strategic Blueprint for Managing Enterprise Transformation & Agility
 

Strategic Blueprint for Managing Enterprise Transformation & Agility

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    Strategic Blueprint for Managing Enterprise Transformation & Agility Strategic Blueprint for Managing Enterprise Transformation & Agility Document Transcript

    • Strategic Blueprint for Managing EnterpriseTransformation & Agility Written By: Solomon Baba Reviewed By: Dr. Dayo Ogunbekun 2013
    • Table of Contents 1. Introduction ................................................................................................................................. 4 2. Overcoming the Challenges of Enterprise Transformation and Agility ........................................... 7 3. Develop Roadmaps of Transformational Enterprise Initiatives ..................................................... 8 4. Assess the Impact and Risk of Transformational Enterprise Initiatives..........................................12 5. Align Transformative IS and Technology Initiatives with Business Initiatives ................................18 6. Effectively Govern Transformational Enterprise Initiatives ...........................................................23 7. Continuously Adapt to Market and Environmental Dynamics.......................................................25 8. Accurately Estimate the Resource Requirements for Transformational Initiatives ........................29 9. Ensure Effective Communication and Collaboration Between Business & IT.................................31 10. Glossary...................................................................................................................................32 11. Bibliography ............................................................................................................................352013, Solomon Baba. All Rights Reserved 2
    • TrademarksTrademarked names may appear throughout this document. Rather than list the names and entitiesthat own the trademarks or insert a trademark symbol with each mention of the trademarked name,the names are used only for editorial purposes and to the benefit of the trademark owner with nointention of infringing upon that trademark.DisclaimerAlthough the author took proper care in writing this whitepaper, no warranty is given by the authoras to the accuracy and completeness of the information contained therein, and neither the author,nor the publishing medium shall be responsible or liable for any loss or damage whatsoever arisingby virtue of such information or any advice contained within this whitepaper. All trademarks,registered names, and so forth acknowledged in this book are the property of their respectiveowners.2013, Solomon Baba. All Rights Reserved 3
    • 1. Introduction Change is the only constant. − Heraclitus Change is inevitable in our personal lives, and in businesses. The irony of change in life is that, as a child, we could not wait to grow up to become adults, as adults, we do not want to grow old due to so many reasons that are too numerous to mention. It is very logical to conclude that, at different stages of our lives we tend to have different appetite or desire for change or growth. However, whether we like it or not change will inevitably occur in our lives. How we prepare for, and cope with these unavoidable changes are the most important factors to our personal transformation or change. In continuation of the above rational illustration; as a child, changing our behaviours or attitudes is much easier compared to changing our behaviours and attitudes as an adult; a stage at which we are almost set in our ways, and are used to, or comfortable with the way we do things. Similarly, enterprises in their formative stages tend to have a high sense of urgency for change, and are easy to change, or have a positive or strong appetite for change, but, as they reach certain stage of maturity or size, changing an enterprise becomes an uphill task. The inability of enterprises to change easily as they become bigger occurs partly because their appetite for change would have dwindled, or they would have been set in their ways, or more people in the enterprises will now be required to make change happen. Just as it is in our personal lives, whether enterprises or businesses like it or not change will inevitably happen. How enterprises anticipate or sense, respond, and manage these unavoidable and phenomenal transformational changes are the most important factors to enterprise transformation or change in this new millennia. Providing an effective blueprint to help enterprises respond, cope, or manage these transformational changes is the sole intent of this whitepaper. John P. Kotter, a former professor at the Harvard Business School, vividly justified the juxtaposition depicted above in this whitepaper in his seminal book Leading Change, John stated that ‘In an organisation with 100 employees, at least a two dozen must go far beyond the normal call of duty to produce a significant change.’ He further stated that ‘In a firm2013, Solomon Baba. All Rights Reserved 4
    • with 100,000 employees, the same might be required for 15,000 employees or more.’1 We can see that as the size of the organisation increases so does the number of people that will be required to transform the organisation, which is one of the factors that makes it very difficult for large enterprises to fundamental alter or change their operations, processes, products and services and so forth. In spite of the challenges associated with enterprise transformation and agility as clearly illustrated above, enterprises cannot afford to stand still in today’s dynamic and globalised environment. If they do, either one of these two things will happen, either they will be left behind in the state of things and become obsolete in their approach, products, and services, and eventually wither away or file for bankruptcy, or they will become the target of hostile takeover or acquisition. Moreover, if such an enterprise is a public sector organisation, the citizenry or its stakeholders will consider such an organisation to be out of touch with their needs, concerns, or interests. It is obvious that enterprises must continue to change, as well as, develop the ability to change (i.e., to become agile) in order to survive in today’s dynamic environment. However, we have two major types of changes, the first is routine change, and the second is fundamental change (also called transformation). The change referred to in this paper is fundamental change. According to William B. Rouse, the executive director of the Tennenbaum Institute at the Georgia Institute of Technology: ‘Enterprise transformation concerns change, not just routine change but fundamental change that substantially alters an organization’s relationships with one or more key constituencies, e.g., customers, employees, suppliers, and investors.’2 The need to fundamental alter or change the way enterprises carry out their activities in order to deliver their products/services and to relate with their customers, employees, suppliers and government is driven by internal/external factors such as the economy growth, government laws and regulations, taxes, globalisation, recession, supply and demand, competition, new technology and so forth.1 Kotter J. P. (1996).Leading Change. US: Harvard Business School Press, p. 35.2 Rouse, W. B. (2005). A Theory of Enterprise Transformation, Systems Engineering, 8(4), 279-295, p. 279.2013, Solomon Baba. All Rights Reserved 5
    • Although transformation and agility are both critical to the survival of enterprises in today’s dynamic and globalised environment, they are very difficult to achieve. Numerous researchers have identified the many factors that are responsible for the difficulties associated with enterprise transformation, or for the failure of transformational initiatives, or why enterprises are unable to transform themselves, or become agile enough to respond to the changes happening in their environment in a quick and effective manner. However, not much has been done in attributing the root cause of these problems to the challenges of managing the complexities associated with handling all of the numerous and interconnected components or parts of the enterprise that must change and work together in a cohesive fashion in order for an enterprise to successfully transform itself.2013, Solomon Baba. All Rights Reserved 6
    • 2. Overcoming the Challenges of Enterprise Transformation and Agility In order to overcome the challenges of managing the complexities associated with enterprise transformation and agility, enterprises need to develop or possess a strategic blueprint of their enterprise that will be used for: 1. Developing roadmaps of transformational initiatives, or for identifying the right transformational business, IS and technology initiatives to embark upon in order to achieve their strategic goals (i.e., to carry out strategic business, IS, and technology planning) 2. Assessing the impact and risk of fundamentally altering the way they currently perform their operations or for performing numerous what-if-scenarios for the purpose of testing all the assumptions surrounding their transformation efforts 3. Aligning their transformational technology and information systems (IS) initiatives with their business initiatives 4. Governing their business, IS, and technology initiatives or programmes throughout their entire lifecycle 5. Continuously adapting to the dynamic nature of their environment or to develop the ability to quickly sense and respond to changes that are happening in their environment 6. Accurately estimating the resources that will be required to deliver their transformational business, IS, and technology initiatives effectively 7. Creating a common language or terminology and modelling notations that will be used within the enterprise, and with external partners and suppliers in order to reduce the costs and risks of enterprise transformation that may results from the lack of standard communication language and approaches The strategic blueprint is able to achieve all of the value propositions mentioned above through the provisioning of a complete and coherent documentation of all the key building blocks or components that makes up the enterprise. The blueprint also provides all the relationships, dependencies, or interconnections that exist between these enterprise building blocks or components that are the key enablers of enterprise mission.2013, Solomon Baba. All Rights Reserved 7
    • 3. Develop Roadmaps of Transformational Enterprise Initiatives In the same way that individuals or organisations need an architectural plan or blueprint to guide the construction or renovation/transformation of buildings, a strategic enterprise blueprint is also needed to guide the transformation, engineering, and manufacturing of an enterprise. The Government of Canada clearly understood the significance of using a strategic blueprint to guide enterprise transformation efforts or programmes, which is why they developed a custom strategic blueprint called Business Transformation Enablement (BTEP) Toolkit to guide all their transformation programmes. According to the Canadian Government’s Treasury Board of Canada Secretariat: ‘If, across government, the ways that we define and understand the “as is” state, and then scope, design, plan, and execute business transformation to move to the “to be state” aren’t compatible, coherent and efficient, then it’s highly unlikely that the outcomes will be.’ 3 The strategic blueprint presented in this paper will help enterprises to develop roadmaps for their transformation programmes or to identify the right transformational business, IS, and technology initiatives by providing a comprehensive and coherent architecture or documentation of their baseline and target enterprise capabilities that can be used to analyse the gaps, redundancies, and overlaps that may exist between them. Following the assessment or evaluation of the gaps that may exist between their baseline and target business, IS and technology capabilities, enterprises can easily develop the roadmap of transformational initiatives or roadmap of new capabilities that should be developed to close the identified gaps, or to eliminate the redundant/duplicative capabilities or services that may exist in the enterprise. Figures 3.0, 3.1 and 3.2 below graphically illustrates how the strategic blueprint presented in this paper can be used to document the baseline and target architecture of enterprise capabilities, perform gap analysis, and develop the roadmaps of transformational enterprise initiatives .3 Treasury Board of Canada Secretariat. (2004). Business Transformation Enablement Programme. Canada: HerMajesty the Queen in Right of Canada, p. 4.2013, Solomon Baba. All Rights Reserved 8
    • Figure 3.0 High Level (One Page) Strategic Enterprise Blueprint2013, Solomon Baba. All Rights Reserved 9
    • Figure 3.1 Business, IS and Technology Capability Gap Assessment2013, Solomon Baba. All Rights Reserved 10
    • Figure 3.2 Business, IS and Technology Transformation Roadmap2013, Solomon Baba. All Rights Reserved 11
    • 4. Assess the Impact and Risk of Transformational Enterprise Initiatives In order to assess or measure the impact and risk of fundamentally altering the way enterprise currently perform their operations or serve their stakeholders, a strategic blueprint is needed to provide a comprehensive documentation of the enterprise building blocks, and to establish the relationship that exists between all these building blocks (i.e., business, IS, and technology architecture building blocks). The process of establishing relationships between all the key building blocks of an enterprise is called Meta modelling, and the outcome of that process is called a meta-model. A meta-model provide enterprises the means or tools for assessing the impact of the changes they are going to be making, perform numerous what-if-scenarios to test the assumptions they made about their transformational programmes, and be able to trace the relationships or dependencies between the building blocks of their enterprise (i.e., business, IS, and technology components). Figures 4.0, 4.1, 4.2, 4.3, and 4.4 below provides a comprehensive enterprise metal-model that can used to assess the impact of change when it is used to document the architecture of the enterprise; most especially, when it used together with the right enterprise architecture (EA) repository and modelling tool.2013, Solomon Baba. All Rights Reserved 12
    • Figure 4.0 High Level Business, Information Systems (IS) and Technology Architecture Metal Model
    • Figure 4.1 Detail Business Service Architecture Meta Model2013, Solomon Baba. All Rights Reserved 14
    • Figure 4.2 Detail Information Services Architecture Meta Model2013, Solomon Baba. All Rights Reserved 15
    • Figure 4.3 Technology/Platform Services Architecture Meta Model2013, Solomon Baba. All Rights Reserved 16
    • Figure 4.4 Detail & Integrated Enterprise Architecture Meta Model
    • 5. Align Transformational IS and Technology Initiatives with Business Initiatives In order to align transformational information systems (IS) and technology initiatives with business initiatives, a strategic enterprise blueprint is needed to provide the means or context for aligning all three initiatives or for integrating transformational initiatives that span both business, IS, and technology building blocks. Figures 5.0, 5.1, 5.2, 5.3, and 5.4 below provides different views of the blueprint that shows how to integrate and align transformational IS and technology planning with business planning, or shows how to integrate/align the building blocks of business, IS, and technology components. Figure 5.0 Business, IS, and Technology Objectives and Initiatives Alignment View2013, Solomon Baba. All Rights Reserved 18
    • Figure 5.1 Business, IS and Technology Services Alignment View2013, Solomon Baba. All Rights Reserved 19
    • Figure 5.2 Business, IS and Technology Components Alignment View2013, Solomon Baba. All Rights Reserved 20
    • Figure 5.3 High Level Business, IS and Technology Alignment Meta Model2013, Solomon Baba. All Rights Reserved 21
    • Figure 5.4 Business, IS and Technology Alignment Meta Model2013, Solomon Baba. All Rights Reserved 22
    • 6. Effectively Govern Transformational Enterprise Initiatives In order to govern transformational business, IS and technology initiatives effectively, a strategic enterprise blueprint is needed to provide a comprehensive documentation of key enterprise building blocks that must be governed effectively in order for enterprise transformation initiatives to succeed. The strategic blueprint will also enable enterprises to specify standards and patterns that each of the strategic building blocks must comply with, in line with the IT principles of the enterprise. Without a strategic enterprise blueprint, it will be practically impossible to identify all of the building blocks or components of an enterprise, establish the relationships that may exist between them, specify their standards, capture relevant information about them, and manage them throughout their entire lifecycle. Figure 6.0 below illustrate how strategic blueprint can be used to specify standards for enterprise building blocks, following which the architecture review boards of enterprises can use these standards to effectively guide and govern programmes/projects and solutions delivery, mostly by ensuring that the architecture of the solution is consistent with the specified IT standards throughout the entire delivery lifecycle.
    • Figure 6.0 Technology Architecture Artefacts Meta Model2013, Solomon Baba. All Rights Reserved 24
    • 7. Continuously Adapt to Market and Environmental Dynamics In order to continuously adapt to the dynamics of their external environment, enterprises need develop or possess a strategic blueprint that provide a holistic and integrated picture of their entire building blocks to help them identify, design, deliver, and operationalize transformational business, IS, and technology initiatives or programmes quickly, including those initiatives or programmes that supports or enables enterprise agility. In other words, strategic blueprint will enable enterprises to quickly respond to the changes that are happening in their environment by providing a comprehensive and integrated business, IS, and technology blueprints for identifying and delivering transformational enterprise initiatives or programmes such as business process re-engineering or transformation, service-oriented and event-driven composite application development, and business process management (BPM). Numerous researches have shown that enterprises that has a fully developed strategic blueprint prior to embarking on the initiatives mentioned above are better able to come to market faster with their business agility enabling solutions than their competitors, and are more likely to succeed in delivering operationalizing those solutions. Figures 7.0, 7.1, and 7.2 below illustrates how enterprises can leverage strategic blueprints to continuously adapt to the dynamics of their environment, and to design the architecture of their business- aligned and transformational IS and technology initiatives cum solutions. Numerous researches have indicated that the key to delivering transformational IS and technology initiatives or projects the right way is to have excellent solution architecture. Strategic blueprint will help enterprises to accelerate the definition of their solution architectures because it enables solution architects to understand the current state of the IS and technology architecture that the new solution will integrate with, and to leverage opportunities for re-use in the current application and technology services portfolio. In addition, the strategic blueprint also helps solution architects to adhere to the catalogue of technology standards and patterns specified by the enterprise.2013, Solomon Baba. All Rights Reserved 25
    • Figure 7.0 Conceptual Application Security Solution Architecture2013, Solomon Baba. All Rights Reserved 26
    • Figure 7.1 Logical Application Security Solution Architecture2013, Solomon Baba. All Rights Reserved 27
    • Figure 7.2 Physical Application Security Solution Architecture2013, Solomon Baba. All Rights Reserved 28
    • 8. Accurately Estimate the Resource Requirements for Transformational Initiatives In order to estimate all the resources that are required to transform an enterprise successfully, a strategic blueprint provide a comprehensive documentation or catalogue of baseline and target enterprise building blocks. This strategic blueprint will help those involve in transforming the enterprise to accurately identify all the business, IS, and technology components or building blocks that need to change as part of the transformation programme, for example, enterprises will be able to identify what applications are needed to support business processes. Strategic blueprint can also help enterprises to identify and document which business events, rules, information/business objects, measures, process, or which business services are automated or orchestrated, and by which application service, and as part of which business process management or transformation programme. In essence, enterprises can use the strategic blueprint to identify the key building blocks (organisation units, functions, location, roles, actors, business services, data entities, map actors to roles and organisation units etc.) of their organisation that will be required to design and deliver transformative and agility enabling solutions such as BPM and service-oriented architecture (SOA) before embarking on them. Figures 8.0, 8.1, and 8.2 below clearly illustrate how strategic blueprint can be used to document the building blocks that are required to deliver enterprise transformation initiatives.2013, Solomon Baba. All Rights Reserved 29
    • Figure 8.0 Business Architecture Content Repository Framework
    • 9. Ensure Effective Communication and Collaboration between Business & IT Numerous researches indicated that one of the major reasons why IT-enabled enterprise transformation programme fails is that, the business, IS, and technology organisation units speaks different languages, and uses different approaches to define and describe their contexts/situations, which tends to introduce a lot of ambiguity in the way they communicate, collaborate, and understand each other’s context. Enterprises need to adopt and use a strategic enterprise blueprint that is developed based on industry-accepted terminologies and modelling notation such as the strategic blueprint presented and discussed in this paper in order to eliminate the ambiguity or communication gaps that exist between the business, IS, and the technology organisation units. The Canadian Government’s Treasury Board of Canada Secretariat also corroborates this view by stating that: ‘A government that can lead change to reach its goals must be able to align and analyze its business using a common language around common functions, and types of programs and services and their client groups, across the entire enterprise.’ 4 The strategic enterprise blueprint presented in this paper was developed largely based on TOGAF 9.1 frameworks and notations, and on other industry standard reference architectures and patterns. ABOUT THE AUTHOR Solomon Baba is currently a freelance Enterprise/Solutions Architect, prior to becoming a freelancer, he was an Enterprise and Solutions Architect at Wipro Technologies in the United Kingdom; and prior to joining Wipro, he was an enterprise/solutions architect with Oracle Corporations, EMEA. Solomon has a master’s degree in Business Technology consulting (with specialisation in Enterprise Architecture) from the prestigious Henley Business School at the University of Reading in UK. He is passionate about helping enterprises to manage the lifecycle of their IT investments, and in designing service-oriented and event-driven enterprise architecture for private and public organisations. He recently authored a book that laid out the five rational steps that enterprises can follow to manage their IT investments successfully and generate maximum business value; now available for sale on all Amazon websites.4 Treasury Board of Canada Secretariat. (2004). Business Transformation Enablement Programme. Canada: HerMajesty the Queen in Right of Canada, p. 4.
    • 10. Glossary Keywords Definitions Actor A person (employee, customers, partners and other stakeholder) assigned to a role. Actor can also be a system or thing that triggers an event or perform/initiate an action Architecture Represents the graphical or otherwise description or representation of the building blocks of an enterprise, system, or things Building block Are the reusable components that are used to engineer and manufacture an enterprise, or to deliver solutions to enterprise problems Business Data about the attributes of business entities that are consumed by Information or business processes. Business object can either be structured or Object unstructured Business Rule Are structured business policies that are used to control the behaviour of business process, IS/application, and technology service. Business rule also represent the decision logic that determines the execution/performance of business processes Capability Can either be a business, IS or technology capability. Business capability is the ability of an organisation unit or of its business function to deliver business services and products. IS capability is the ability of IS function to deliver application services. Technology capability is the ability of the technology function to deliver technology/platform services Component Represent the building block of an enterprise. Components can either be conceptual, logical, or physical. Contract Can either be a business, IS, or technology contract. Contract is a formal/informal quality of service (QoS) or agreement associated with a service Data Object or Data about the attributes of business entities that are consumed by Entity application service. Data object only exist in structured format, and are managed by a conceptual technology component called structured or relational data management service. Business process consume data objects by accessing application services Driver Can either be a business, IS or technology driver. A driver is a factor that influence, motivate, or constrain an organisation. Drivers can2013, Solomon Baba. All Rights Reserved 32
    • originate from within or outside the organisation. Typical examples of drivers are customer satisfaction, regulatory compliance, profitability and so forth Event The occurrence of an observable action, which can be generated or resolve by an actor, and can be triggered by a business process or it can triggers a business process. An event can simply mean a change of state e.g. from cold to hot, yes to no and so forth. Function Can either be a business, IS, or technology function. As an entity, a function is a group of similar/related enterprise resources or capabilities required to deliver services to either internal or external customers. As a verb, a function is the set of activities that are performed by an organisation unit or a role. This definition sounds somewhat like the definition of business process, However, while a business process group enterprise components based on a sequence or “flow” of activities that is needed to realize a product or service, a function typically groups enterprise components based on required resources, skills, competences, knowledge (i.e., capabilities). According to TOGAF 9.1 document, ‘a function delivers capabilities closely aligned to an organisation unit’ Gap Can either be a business, IS, or technology gap. Business gap is the shortfall that exists between the baseline and target business architecture or capability. IS gap is the shortfall that exists between the baseline and target IS architecture/capability. Technology/platform gap is the shortfall that exists between the baseline and target technology architecture. Goal Can either be a business, IS, or technology goal. Business goal is high- level statement of business intent or direction. IS goal is high-level statement of IS goal and intent that that support or enable the achievement of business goal. Technology goal is high-level statement of intent or direction that supports the achievement of IS goal. Initiative Can either be a business, IS, or technology initiative. Initiative is the course of action or prospective programmes/projects enterprise will embark upon in order to achieve its objectives. Initiative is often referred to as enterprise strategic initiative by TOGAF Investment Can either be a business, IS, or technology investment roadmap.2013, Solomon Baba. All Rights Reserved 33
    • Roadmap Investment roadmaps are the time-phased and technically interdependent set of strategic enterprise initiatives that will help an enterprise to develop the capabilities it needs to achieve its business, IS and technology objectives Interface Can either be a business or application interface. Business interface is a point of access for business services, or an access point for business services. Application interface is a point through which business processes or function accesses application services, or a point through which application services can be accessed. Application interface exposes the functionalities of application services or application components. Location Can either be a business, IS or technology location. Business location is the place or geographical location where actors deliver business services. IS location is the place where IS/application services are hosted or deployed. Technology location is the place where technology components are installed. Measure Measure is the performance metric that must be met by business processes in order to achieve business objectives or goals. TOGAF recently introduced MEASURE building block as an entity that links business objective and business service Objective Can either be a business, IS, or technology objective. Objectives quantifies business, IS and technology goals. Objectives can also be defined as SMART goal, the intent of which is to measure progress towards a goal Organisation Can either be a business, IS, or technology organisation unit. Unit Organisation unit represents a group of resources with the requisite capability to deliver services in order to achieve goals, and objectives. An enterprise is made up of one or more organisation units. According to TOGAF driver, goal, and objective link organisation unit to business service Process Sequence of steps or activities that are performed by an actor to realise a business service or to deliver a product. Product Can be a collection of intangible business services together with their contracts and service quality requirements, or the combination of2013, Solomon Baba. All Rights Reserved 34
    • intangible business services and tangible commodities/goods delivered to an external or internal customer Programme Can either be a business, IS, or technology project and programme. A programme is an organised grouping of interdependent or connected projects that are required to achieve the desired outcome (objectives) sought by enterprises and deliver maximum value Role An actor is assigned to a role to perform/initiate/trigger a business service, process, or events. Service Quality Can either be a business, IS, or platform/technology service qualities. Service qualities are the non-functional requirements that must be met by business, IS, and platform services. Service Can either be a business, IS, and technology service. Business service can either be defined as the smallest unit of business capability, by implication; a group of business services will constitute a business capability. Alternatively, business service can be defined as an intangible commodity/product that fulfils the needs of an internal or external customer. Application service is piece of application functionality. Business service delivery requires a combination of business, and might also require both IS and technology capabilities Strategy Can either be a business, IS and technology, which then consists of business, IS and technology objectives, and the transformational business, IS, and technology change initiatives or course actions required to achieve the objectives Value Relative significance of a product or service 11. Bibliography 1. The Open Group. (2011). TOGAF Version 9.1. Netherland: Van Haren Publishing 2. Baba, S. (2012). The 5 Rational Steps for Managing IT Investments: How-to Generate Maximum Business Value from IT. US: CreateSpace 3. Open Group Standard. (2012). ArchiMate 2.0 Specification. UK: The Open Group2013, Solomon Baba. All Rights Reserved 35