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Business Architecture Basics

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Discover the Basics about Business Architecture in this Presentation made initially at the Metro State University in St-Paul Minnesota on January 19, 2016. It has been presented at several events including the VABADD in Glen Allen VA on April 28, 2017 and the first Business Architekten Schweiz event in Zurich on May 4 2017.

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  • Hello Daniel. Some great presentation. A light in the dark / a Primer on business architecture.
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  • Thanks for the great information. I feel like a part of the culture-driven, bottom-up approach to encourage technological change within an organization is to first understand what is and what isn’t working in existing technology and whether technologies that are currently being used are sufficient or whether alternatives will make considerable positive change within the business. My IT team constantly is evaluating whether users really need another shiny new application or whether we simply need to invest in additional training to greater leverage technologies that we have—in some instances, we’ve opted to keep existing technologies (software for example), but in others, we certainly opted for a new tech solution. Another consideration is whether existing technologies can be repurposed—how we can save money by reusing parts of existing technology to improve process. I first thought about optimizing how our business used technology after attending an business architecture lecture a couple of years back. What business architecture showed me was that our business needed to lay out a complete vision—a plan—of where it wanted to go. We then matched our plan and business goals and objectives to our tech options to rationally decide on the right one. In my experience (and I am guilty of this myself), users come to me with shiny new things that they are excited about. My job is to understand whether the new things are going to add more value to them and the company down the road. If so, I’m all for new tech. But if not, I’d prefer to stick with something we know works for us.
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Business Architecture Basics

  1. 1. Business Architecture Basics Daniel Lambert, M Sc VP – Benchmark Consulting Email: dlambert@biz-architect.com Phone number: +1-514-798-2042 x2010Benchmark Consulting Canada Copyright 2017 – All Rights Reserved Business Architekten Schweiz 4. Mai 2017
  2. 2. 1. Business Architecture Introduction slide 3 2. Business Architecture Guild slide 13 3. Business Architecture Books slide 18 4. Why Business Architecture Matters? slide 21 5. When Is Business Architecture Used? slide 27 6. Where Is Business Architecture in an OrgChart? slide 28 7. Strategy Maps slide 42 Presentation Overview 8. Value Maps slide 52 9. Capability Maps slide 57 10. Organization Maps slide 61 11. Other Maps slide 64 12. Requirement & Process Maps slide 68 13. Software Tools slide 72 14. Example 1 – Ford slide 75 15. Example 2 – TD Bank slide 82 16. Example 3 – USPTO slide 92 Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  3. 3. Section 1 Business Architecture Introduction Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  4. 4. Planning Marketing Plan Strategic Plan Operational Plan Delivery & Execution Operations Delivering Operating Source: Driving your BA Career - From Business Analyst to Business Architect by Craig Martin; Sept. 30 2014 on SlideShare; Slide 17 Enterprise Design Product & Service Design Enterprise Architecture Business Architecture Portfolio, Program & Project Management Business Planning Solutions Architecture Solutions Development Business Analysis The Place of Business Architects in Enterprise Design Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  5. 5. • 66% of HR and IT organizations develop strategic plans that are not linked to the enterprise strategy. Sources: the first 2 bullets are derived from The Strategy-to-Execution Process: A Critical Component of Transient Competitive Advantage in the European Business Review on November 7, 2013 and the last bullet is derived from various additional studies made by Towers Watson, Harvard Business Review, and McKinsey & Co. Today’s Business Disconnects Benchmark Consulting Canada Copyright 2017 – All Rights Reserved • 95% of employees in most organizations do not understand their organisation’s strategy • Only 25% to 30% of business transformation initiatives are successful over the long term
  6. 6. Today’s IT vs Business Disconnects Benchmark Consulting Canada Copyright 2017 - All Rights Reserved Sources: http://image- store.slidesharecdn.com/3b0 f9b75-76aa-4898-91e9- 11fddf6c4911-large.jpeg. How users see IT and developers How IT and developers see users
  7. 7. Business architecture is defined as “A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands." - BIZBOK® Guide, page 1 The Business Architecture Definition Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  8. 8. Business Overview According to BIZBOK® Business Architecture Figure 1.1 of the BIZBOK® Guide on page 2Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  9. 9. Information Maps Strategy MapsStakeholders Maps Organization Maps Initiative Maps Product Maps Asset Maps Value Maps Capability Maps Process Maps (BPM) Requirements Maps Business Architecture Business Architecture: Another View Source: https://www.linkedin.com/pulse/align-your-requirements-corporate- strategies-using-business-lambert?trk=pulse_spock-articlesBenchmark Consulting Canada Copyright 2017 – All Rights Reserved
  10. 10. Benchmark Consulting Canada Copyright 2017 – All Rights Reserved Business Architecture Stops Business Silos Source: figure in the article entitled “Beware the Business Silos! Fun Cartoons, Plus Helpful Solutions” in Tibbr on March 9, 2012
  11. 11. Benchmark Consulting Canada Copyright 2017 – All Rights Reserved Business Architecture Implementation Schedule Source: https://www.linkedin.com/pulse/make-your-cio-more-relevant- using-business-daniel-lambert?trk=mp-author-card
  12. 12. Section 2 The Business Architecture Guild Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  13. 13. The Business Architecture Guild is a professional association, which offers exclusive content to its members like the following: • the Business Architecture Body of Knowledge® (BIZBOK®) Guide. New Release Every 6 months • a certification program, called Certified Business Architect (CBA)® • newsletters • Webinars, Summits, etc. Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  14. 14. Primary Authors • Tammy Adams, Chaosity LLC • Sue Alemann, Slalom Consulting • Verna Allee, ValueNet Works • Eric Aranow, Context Consulting • Alec Blair, Alberta Health Services • Ivan Blinow, BMASTER • Robert Bratulic, IBM • Amy Crockett, VF Corporation • Carol Deutschlander • Lloyd Dugan, Business Process Management • Steve DuPont, The Boeing Company • Eric Shayne Elliot, Digital Recognition Network • Karen Erwin, NTT Data Americas • Linda Finley, Leadership Advantage LLC • Russ Jackson, Export Development Canada • Navid Kheradmand, BC Pension • Whynde Kuehn, S2E Consulting Inc. • J. Bryan Lail, Raytheon • Mary Lloyd, MoneyGram International • Stephen Marshall, IBM Global • Chalon Mullins, Kaiser Permanente • Neal McWhorter, Strategic Value Partners • Judith Oja-Gillam, IAG Consulting • Chris Payne, IAG • Alain Picard, Benchmark Consulting • Alex Randell, Principal Financial Group • Jim Rhyne, Thematix • Michael Rosen, Wilton Consulting Group • Andrew Semple, CGI • Eric Spellman, Tata Consulting Services • Daniel St George, IBM • Cheryl Timko, Merck • William Ulrich, TSG, INC. • Taurai Ushewokunze, Vayase Consulting • Jeffrey Wallk, The Value Enablement Group The BIZBOK® Guide Involves Many Authors
  15. 15. Industry Specific Reference Model Committees: • Financial Services • Insurance • Manufacturing • Healthcare • Transportation (starting in June 2017) • Government (soon) Benchmark Consulting USA LLC Copyright 2017 – All Rights ReservedIB
  16. 16. Examples from the Business Architecture Guild Source: http://www.businessarchitectureguild.org/?page=002 Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  17. 17. Section 3 Business Architecture Books Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  18. 18. Business Architecture: The Art and Practice of Business Transformation • Written by: o William Ulrich o Neil McWhorter • Published on October 31, 2010 Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  19. 19. Business & Dynamic Change: The Arrival of Business Architecture • Written by: o Frank F Kowalkowski o Gil Laware o William Ulrich o Dr Michael Poulin o Michael S Connor o Keith D Swenson (Foreword) • Published on June 3, 2015 • 226 pages Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  20. 20. Section 4 Why Business Architecture Matters? Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  21. 21. Why Business Architecture Matters? 1. Business Architecture helps to focus and align corporate strategies to all its business units down and across the entire organization Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  22. 22. Why Business Architecture Matters? 2. Business Architecture improves decision making by lowering risk Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  23. 23. Why Business Architecture Matters? 3. Business Architecture increases employee engagement by setting proper boundaries, making it safe and productive for employees to take independent actions and make them more autonomous Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  24. 24. Why Business Architecture Matters? 4. Business Architecture increases operational efficiency Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  25. 25. Why Business Architecture Matters? 5. Business Architecture makes it possible to increase your agility in both your business and IT execution Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  26. 26. Section 5 When Is Business Architecture Used? Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  27. 27. When Is Business Architecture Used? 1. Planning and Delivering Digital Business Transformations Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  28. 28. When Is Business Architecture Used? 2. Upgrading or replacing legacy systems Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  29. 29. When Is Business Architecture Used? 3. Enhancing Customer Journeys Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  30. 30. When Is Business Architecture Used? 4. Integrating systems Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  31. 31. When Is Business Architecture Used? 5. Enhancing mobility for clients, employees and/or partners Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  32. 32. When Is Business Architecture Used? 6. Building Value Propositions for Customers Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  33. 33. When Is Business Architecture Used? 7. Merger & acquisition Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  34. 34. When Is Business Architecture Used? 8. Opening or closing a business unit or a division Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  35. 35. When Is Business Architecture Used? 9. Investment Analyses 10. New product offering or service roll-out 11. Globalization 12. Business capacity outsourcing 13. Supply chain streamlining Other reasons 14. Regulatory compliance 15. Joint-venture 16. Restructuring 17. Implementing Customer-Centric Approach 18. Divestiture Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  36. 36. Section 6 Where Is Business Architecture in an Org Chart? Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  37. 37. OrgChart for Business Architecture CIO VP – Enterprise Architecture Director – Business Architecture Software/ Application Architects Director – Business Analysts VP – IT Projects Etc. Director - Business Process VP – Networks Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  38. 38. Business Architecture Under Enterprise Architecture VP – Enterprise Architecture Business Architect Enterprise Architect Enterprise Architect Enterprise Architect Etc.Enterprise ArchitectEnterprise Architect Benchmark Consulting Canada Copyright 2017 – All Rights Reserved Enterprise / Business Architect
  39. 39. Business Architecture within Governance Chief Governance Officer Corporate Strategy Director – Business Architecture Compliance Management Corporate Communication Performance Management Etc.Ethics ManagementRisk Management Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  40. 40. Business Architecture under the COO President & COO Marketing Director – Business Architecture Sales Human Resources CIO Etc.Business Unit 1Manufacturing Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  41. 41. Section 7 Strategy Map Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  42. 42. Business Motivation Model Source: http://goobiz.com/From_BMM_to_SOA.htm
  43. 43. Vision + Objectives + Goals IRIS Business Architect Copyright 2017 – All Rights Reserved Source: http://www.slideshare.net/DanielLambert4/from-insurance-business- strategies-to-it-execution-using-business-architecture
  44. 44. Strategies & Tactics IRIS Business Architect Copyright 2017 – All Rights Reserved Source: http://www.slideshare.net/DanielLambert4/from-insurance-business- strategies-to-it-execution-using-business-architecture
  45. 45. Business Model Canvas: a Banking Example Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: https://www.linkedin.com/pulse/bridging-business-model-canvas- architecture-daniel-lambert?trk=pulse_spock-articles Alexander Osterwalder Stategyzer
  46. 46. Customer Value Map: a Financial Service Example Source: Article entitled “Enabling Innovations Using Business Architecture” to be published in May 2017 in Cutter Technology Business Journal Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  47. 47. Customer Journey Map: a Financial Service Example Source: Article entitled “Enabling Innovations Using Business Architecture” to be published in May 2017 in Cutter Technology Business Journal Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  48. 48. Strategy Map: Balance Scorecard Source: http://blog.bizzdesign.com/business-performance-management- balanced-scorecards-and-the-decision-model/ Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  49. 49. SWOT Assessments Source: https://www.slideshare.net/DanielLambert4/from-business- strategies-to-it-execution-using-business-architecture-in-financial-institutions Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved
  50. 50. Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Business Architecture & Measurements Source: https://www.linkedin.com/pulse/art-measurement-business- architecture-daniel-lambert?trk=pulse_spock-articles
  51. 51. Section 8 Value Maps Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  52. 52. Value Streams: Financial Services Example Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: Article entitled “Enabling Innovations Using Business Architecture” to be published in May 2017 in Cutter Technology Business Journal
  53. 53. 100% 47% 12% Opportunities Churn Rate 2% 4% Acquire Customer for a Product (Funnel) Value Stream Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: Article entitled “Enabling Innovations Using Business Architecture” to be published in May 2017 in Cutter Technology Business Journal
  54. 54. Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: Article entitled “Enabling Innovations Using Business Architecture” to be published in May 2017 in Cutter Technology Business Journal Acquire Customer for a Product (Funnel) Detailed Value Stream
  55. 55. Value Steam with Enabling Capabilities Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: Article entitled “Enabling Innovations Using Business Architecture” to be published in May 2017 in Cutter Technology Business Journal
  56. 56. Section 9 Capability Map Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  57. 57. Capability Map (Level 1) Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: https://www.slideshare.net/DanielLambert4/from-business- strategies-to-it-execution-using-business-architecture-in-financial-institutions
  58. 58. Tier-2 Customer Facing Capabilities (level 1 & 2) Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: https://www.slideshare.net/DanielLambert4/from-business- strategies-to-it-execution-using-business-architecture-in-financial-institutions
  59. 59. Tier-2 Customer Facing Capabilities (level 1 & 2) Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved Source: https://www.slideshare.net/DanielLambert4/from-business- strategies-to-it-execution-using-business-architecture-in-financial-institutions
  60. 60. Section 10 Organization Map Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  61. 61. Source: https://www.linkedin.com/pulse/business-architecture- merger-acquisition-context-part-daniel-lambert?trk=mp-author-card Apple Republic Org Chart (level 1 and 2)
  62. 62. Source: https://www.linkedin.com/pulse/business- architecture-merger-acquisition-context-part-daniel- lambert?trk=mp-author-card Org Chart with Capabilities (Level 1 only)
  63. 63. Section 10 Other Maps Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  64. 64. Initiatives to Purchase Company AB IRIS Business Architect Copyright 2017 – All Rights Reserved Source: http://www.slideshare.net/DanielLambert4/from-insurance- business-strategies-to-it-execution-using-business-architecture
  65. 65. Capability/Information Concept Cross Mapping IRIS Business Architect Copyright 2017 – All Rights Reserved Source: http://www.slideshare.net/DanielLambert4/from-insurance-business- strategies-to-it-execution-using-business-architecture
  66. 66. Asset Map & Linkage to Other Maps List of Assets complying to TOGAF List of Business Architecture Maps Compliant to BIZBOK Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  67. 67. Section 11 Requirement & Process Maps Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  68. 68. Avoiding Confusion in User Stories with Business Architecture Benchmark Consulting Canada Copyright 2017 – All Rights Reserved Capabilities Stakeholders Value The User Story of the Requirement “A-198” The Loan Officer(S1) wants to set(V1) the terms(I1) of the agreement(I2) to reduce(V2) the monthly minimal payment(I3) of its Personal Client(S2) who wants to Acquire a Loan(V3), involving decisions(P1) from a Loan Administrator (S3), a Loan Manager(S4) and a Contract Manager(S5) and involving the capability of Agreement Structuring(C1) and its children Agreement Terms Management(C2) to Approve a Loan(V4)» • Agreement Structuring (level 3) (C1) • Agreement Terms Management (level 4) (C2) • Loan Officer (S1) • Personal Client (S2) • Loan Administrator (S3) • Loan Manager (S4) • Contract Manager (S5) • Set the terms of the agreement (value item) (V1) • Reduce the monthly minimal payment (value item (V2) • Acquire a Loan (value stream) (V3) • Approve a Loan (value stage) (V4) Information • Terms of loan (I1) • Loan Agreement (I2) • Monthly Minimal Payment of Loan (I3) Process • Process B-231 – Change Terms of a Loan (P1) Source: http://www.slideshare.net/DanielLambert4/from-retail-business- strategies-to-it-execution-using-business-architecture
  69. 69. Requirements Mapped to Capabilities IRIS Business Architect Copyright 2017 – All Rights Reserved Source: Panorama 360 Insurance Frameworks
  70. 70. Processes Mapped to Value Stages IRIS Business Architect Copyright 2017 – All Rights Reserved
  71. 71. Section 12 Business Architecture Software Tools Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  72. 72. Enterprise Architecture Software Tools Benchmark Consulting Canada Copyright 2017 – All Rights Reserved Mostly good enterprise architecture tools with difficult to use Business Architecture modulesSource: http://www.slideshare.net/DanielLambert4/from- retail-business-strategies-to-it-execution-using-business- architecture
  73. 73. Business Architecture Software Tools Benchmark Consulting Canada Copyright 2017 – All Rights Reserved Only IRIS Business Architect is aligned to TOGAF and BIZBOK. Others allow mostly capability and project mapping. Not much else.Source: http://www.slideshare.net/DanielLambert4/from- retail-business-strategies-to-it-execution-using-business- architecture
  74. 74. Section 14 Example 1 Business Architecture Ford Source: http://c.ymcdn.com/sites/www.businessarchitectureguild.org/resource/ collection/0C09C473-059E-498D-906F-E98CE494AB00/basig-13-06- 11.pdf Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  75. 75. Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
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  81. 81. Section 15 Example 2: Using Business Architecture to Facilitate a North American Business Model at the TD Bank TD Bank Source: http://www.slideshare.net/DanielLambert4/using-business-architecture-to- facilitate-a-north-american-business-model-at-the-td-bank Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  82. 82. Section 16 Example 3: Leveraging Business Architecture for Business Requirements Management US Patent & Trademark Office Source: http://www.omg.org/cgi-bin/doc?basig/2015-03-06 Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
  83. 83. Benchmark Consulting Canada Copyright 2017 – All Rights Reserved
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  88. 88. Our Clients PE Business Consulting
  89. 89. Vielen Dank! Daniel Lambert Email: dlambert@biz-architect.com Phone numbers: (855) 798-2042 x2010 (USA & Canada) +1-514-798-2042 x2010 (elsewhere) Benchmark Consulting Canada Copyright 2017 – All Rights Reserved

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