Eba beyond theory v6 notes


Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Eba beyond theory v6 notes

  1. 1. Business Architecture Beyond Theory
  2. 2. Contributing Author to the BIZBOK ™ Trained over 100,000 professionals 700 In excess of Organizations using our methods 1,400 Completed over requirements projects > 200 trained professionals focused 100% on excellence in business requirements 10% Annually invested of our revenue in developing our methods and harmonizing these with industry best practices Founding member of the IIBA Authors of The Business Analysis Benchmark 300 Worked with over of the Fortune 1000 companies
  3. 3. Business Architecture – Beyond Theory Learning Objectives 1 Provide clear, rational reasons to do Business Architecture 2 Provide a filtered set of Business Architecture Models, views and uses to mitigate project and analysis risk 3 Suggest a staged Execution Model 3
  4. 4. Business Architecture – Beyond Theory Topics What’s Going On? What’s the Effect? How do we Respond? Change Standards Business Blueprints Blueprinting Lifecycle Technology Impact Focus – Biggest Bang 4
  5. 5. What’s Going On? Business Architecture – Beyond Theory Forces at Work Cost Revenue 5
  6. 6. Business Architecture – Beyond Theory Direction: What’s the Effect? Costs and Convergence 6 5 4 Cost 3 Revenue 2 Revenue Pressure:  Market Meltdown  Customer Expectations  Speed to Market  Regulatory Constraints  Workforce Attrition  Competition 1 0 2006 2007 2008 2009 2010 2011 Survival 2012 2013 2014 Cost Pressure:  Transformation  Infrastructure Maintenance  New Projects  Application Constraints  Legacy demise 6
  7. 7. Business Architecture – Beyond Theory Efforts to drive the convergence in another direction How do we respond? Don’t be complacent Enterprise Architecture 7
  8. 8. Business Architecture – Beyond Theory Business Architecture Standards Blueprint Models Functional Models Process Models Impact on Technology 8
  9. 9. Business Architecture – Beyond Theory What’s the Challenge? What value am I getting? Historical approaches to solve business problems Historical approach to funding models Changing Viewpoints IT Understanding of business priorities & motivations Organizational maturity to innovation and transformation Relating Business Architecture to only IT Consideration for Intellectual Capital as an Asset and corporate memory 9
  10. 10. Business Architecture – Beyond Theory Analysis Result Business Strategy Business Change- How Big? Competing or Complimentary Strategies? Optimization Reengineering Transformation Redefining the business process to eliminate localized operational challenges Redesigning of the business process to meet market or competitive needs or increase efficiency/effectiveness of the current business operating model. Radical, large scale change in the business operating model and the product or service delivery Business As Usual Competitive Requirement Future State  Continue forward with marginal deployment capabilities  Cost reduction focus  Market differentiation involving significant corporate will.  Keep the Lights on  Business case may support transformational strategy.  Limited expected revenue increase  Requires policy change, product rationalization, resource rightsizing  Long term in nature. 10
  11. 11. Standards Industry Common Language Methodology and Approach Tooling Business Architecture – Beyond Theory • Open Group • BPMN • OMG • • • • Ontology versus Glossary Verb and Event taxonomy Common Understanding Cross pollination of business concepts and requirements • Integrated with Business Process Management • Integrated with Business Analysis techniques • Governance • • • • Repository Management Compliance Management Scalability Analysis capability 11
  12. 12. Business Blueprints Business Architecture – Beyond Theory Component Business Model: Human Capital Management A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands. BAWG – OMG 12
  13. 13. Construct of a Blueprint A blueprint is constructed to reflect Business Competencies and Business Capabilities. ILLUSTRATIVE Sales & Marketing The capabilities are tiered by Strategy, Control, and Execution to demonstrate a type Strategic Market Research & Analytics Customer Mgmt Strategy Segment Analysis & Planning Marketing Mgmt Brand Mgmt Sales & Contract Monitoring Relationship Mgmt Risk & Financial Compliance Products & Services Operations & Processing Product Development Resource Planning Product Research & Analytics Operations Policy & Procedure Alliance Planning Channel Mgmt Channel Mgmt Risk Mgmt Pricing Policy Product Catalogue Mgmt Product & Service Monitoring Business Continuity Information Tech Central Service Management Vendor Management Strategy & Governance Regulatory Advisory Business Strategy Mgmt Financial Accounting & Reporting Decision Support HR Planning & Governance Programme & Change Mgmt Regulatory & Compliance Policy Mergers & Acquisition Balance Sheet Project Mgmt Office Credit Oversight Audit Legal Advisory Authorization/Approvals Control End to End Service Channel Performance Statistics & Measurement Level Perf Monitoring Business Policy Oversight Compensation & Benefits Risk & Financial Control Auth & Limits Delegation Financial Data Mgmt Regulatory Compliance Monitoring Campaign Management Client Acquisition & Referrals Transactional Processing Customer Data Mgmt Accounts Payable / Receivables Project Cost Acct Contact Mgmt Execute Product Performance Mgmt Order Mgmt Statement Prep Investigations Learning & Development Compliant Mgmt Prospecting & Sales Campaign Execution End Consumer Sales Channel Delivery Mgmt Product Configuration Mgmt Document Mgmt Credit Processing Fees & Billing Mgmt Payments Collections & Recovery Credit Approval & Processing Financial Consolidation Tax Reporting Regulatory Reporting Business Procedures M&A Due Diligence Vendor Mgmt 13
  14. 14. Business Architecture – Beyond Theory Deficiencies - the system lacks key functionality, or is poorly designed Duplication – multiple systems compete for the same need. Opportunity for consolidation Direct Control Business Planning Human Resource Management Manual Execute gaps Alliance Management Campaign Management Channel Management overextension Asset & Liability Management Claims processing End Consumer Sales Contract & Policy Set-up Product Development Customer Profile Wholesales Sales Support Systems & Facilities Helpdesk Contact Repository Correspondence deficiency Contract Administration Intelligent Routing Fees & Commissions Trading Contact Servicing In-force Processing Campaign Execution Training Finance Contract Service Administration Financial Control Operational Control End - customer marketing Product Profile Accounting &Finance Planning Service Management Conservation Council Services Customer New Channel Management Sales & Business gaps Operations Planning Distribution Planning Product Management Advisor/ Intermediary Administration Advisor/ Intermediary Set-up Marketing Product Manufacturing Planning Regulatory Reporting Over-Extension – a system designed to support one component is extended beyond its core capability to help support others Development Asset Mgmt & Business Gaps – opportunity to implement new IT systems where none exist before Administration Opportunity Identification gaps Funds Management General Ledger Check Processing Treasury duplication 14
  15. 15. Business Architecture – Beyond Theory Methodology For Use Business Strategy – Ensure project spend aligns Synchronization of Business / IT transformation efforts Project identification/rationalization- duplication, funding, resource Technology portfolio decommissioning Outsourcing Opportunities Customer Segmentation Initiatives Target Business Operating Model: Where and How? Value-based prioritization and implementation strategy developed with consideration for budget, resource constraints, competitive market pressures and other factors. 15
  16. 16. Business Architecture – Beyond Theory Total Costs of Ownership Analysis Spend Control and Funding Models Shared Services Strategic Impact Strategic Vendor Sourcing Scorecard based business strategy alignment Acquisition and Mergers 16
  17. 17. Blueprinting Lifecycle Business Architecture – Beyond Theory The lifecycle employs methods, tools and techniques to develop agile and integrated business perspectives that provides traceability and alignment between levels. Advantages Each Capability is underpinned by a number of Business Functions Visual improves ability for stakeholder sign-off Well defined processes, terms and definitions Acceleration in identifying reusable processes and rules Consistent language Logic is contained within the process Note: Copyright IBM Corporation 2006 Each Function is in turn supported by a range of Business Processes Each process collaborates across a set of activities and tasks to compete the business objective 17
  18. 18. Business Architecture – Beyond Theory Business Capability Models Business capabilities are the highest level of business architecture construction design and are market facing Each Capability • conducts a mutually exclusive, collectively exhausted (MECE) set of activities to achieve its business goal. • require resources, people, technology, knowledge and assets to support activities • is managed as a independent entity, with its own governance model • provides and receives business services • Produces or consumes work products from/to other capabilities in the organizational ecosystem • is individually scalable and extensible. 18
  19. 19. Business Architecture – Beyond Theory Business Functional Models Business functions performed by an organization Derived from the Business Blueprint Next level of the Business Architecture deconstruction Describe the functions which must be available for the organization to meet its objectives Models are available from the market Can be constructed from the Organizational Charts. 19
  20. 20. Business Modeling Business Architecture – Beyond Theory Core Process Models Start and End with a customer Eliminate non essential steps, reduce cycle time and thru put time, identify Automation opportunities, organizational distribution/centralization Must be expressed to enable Transformational change Identified in project context by the use of Top Down Blueprint and business function models Baseline business case cost Processes are where all the business requirements are . Don’t make bad things happen faster 20
  21. 21. Business Architecture – Beyond Theory Use of the Functional Model will identify organizational redundancy and overlap.* Opportunity for significant FTE reduction using Broad Banding and Span of Management standards and statistics Investment projects mapped to the capability model will identify potential collision and identify direct and indirect stakeholders Projects using the model will identify in scope business processes and business impact Strategic Impact *Note: Business Consulting Best Practice: “Form follows function” 21
  22. 22. Impact on Technology Future State Current State Business Modelling Req’ts Definition Analysis & Design • Inconsistent approach to Requirements Management • Methodologies are customized for each initiative • Reuse is not easily visible • Terminology is inconsistent • Business rules and logic are disconnected from the process • Difficult tracing process to Req'ts • Req'ts not well maintained •Disconnect from business on requirement definition •Modeling is not completed efficiently •Difficult tracing req’ts to usecase to process Business Modeling Req’ts Definition • Consistent language • Logic contained in the process • Requirements managed thru standard configurable tools • Use case models to be used for Analysis • Contracted definition phase through reusable artefacts and focus on net new Analysis & Design • Consistent language • Logic contained in the process • Requirement structure is standardized. • Utilization of use case models • Contracted phase through reusable artefacts • Focus on net new • Coding is not derived from a design model • Coding is not clearly traced to Req'ts Coding • Well defined process, terms and definitions standard across all projects. • Acceleration to identify reusable processes, rules and interdependencies • Improved ability for stakeholder sign-off Coding • Coding is driven from the model • Enforces object oriented development approach • Clear relationship between Req'ts, design and coding. 22
  23. 23. Focus Business Architecture – Beyond Theory Biggest Bang Reduce Application Redundancy – Capability Model • Eliminate duplication • Reduce risk exposure • “End of Life” legacy • Identify required unsupported business capability Core Processes – Prioritization • Lifecycle – Open, Maintain, Transact, Renew, Close • High Volume, High Costs, Low Revenue • Expose Shared Services, Utilities, Black Boxes • Scalable Business Services • Target Scorecard Measurement Eliminate Organizational Redundancy – Functional Model • Identify Business units with same/similar functions to minimize redundancy • Identify Core vs shared services • Identify Cross business unit dependency • Apply spans of control across functions Asset Management • Manage Knowledge as an asset through a Central Knowledge Repository • Rich Intellectual property exists for scenario or project early analysis 23
  24. 24. Value Business Architecture – Beyond Theory Increasing organizational capability and reuse while contributing to cost management, quality and risk Manage Costs Quality Manage Risk Reuse/Opportunities • Increase productivity and reduce costs by standardizing processes and capitalizing on economies of scale • Improve the process first before you automate • Apply functional alignment and spans of control analysis • Understand capability performance through KPI’s and benchmarking • Improve quality by deploying & using industry standards and methods • Govern compliance to embed quality methods & standards • Be customer centric • Ensure methods and collateral is integrated, consistent and coherent across stakeholders and partners • Programme/Project Risk mitigate by holistic business impact analysis and change control • Investment Risk – mitigate by aligning funded projects to strategic capabilities (Tear up the Road Once) • Regulator Risk – mitigate by aligning the design and implementation to standard processes • Development Risk -mitigate by clearer articulation of business objectives and requirements • Assess performance & discover new organizational capabilities • Standardize processes to reuse “Fit for Purpose” technology by application of standards • Assess the Investment portfolio for reusable common business components & functionality across programmes • Control project cost by reusing deliverables ie: processes and UC . 24
  25. 25. Questions ? 25
  26. 26. 800.209.3616 PDU Information 1 PDU Activity Number: IAG 701 Provide Number: 2858