Eacbpm 2015 operational agility v5 final_may 18

Building Agile Operations
Practical approach
Omar Kayed
Director Enterprise and Solution
Architecture
June 17 2015

2/25/2016 3
Contents
 Introduction
 Operational Agility, what it is / what it’s not, and why
 Operational Agility Framework (OAF)
 Business On a Page
 Business Capability Model(BCM)
 Business Technology Alignment Model(BTAM)
 Banking Application
 Digital Application
 Conclusion
 Questions
 Appendix
© 2015 Convergent Consulting Inc. All rights reserved

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Operational Agility, what it is /it’s not, and why
*Source Competing through organizational agility - Insights and Publications McKenzie
Operational agility, What it is – Definition -
An organization’s ability to exploit both revenue-enhancing and cost-cutting
opportunities within its core business more quickly, effectively, and
consistently than rivals do is the source of operational ability*
Forrester’s definition of business agility “The quality that allows an enterprise
to embrace market and operational changes as a matter of routine”
In Brief : Operational Agility is The timely recognition of changes / opportunity
and timely acting /responding to / adapting to changes / and opportunities
Operational agility is NOT related to software development operation process
and its methodology such as Scrum,…etc.
Finally :Operational Agility share the general characteristic of agility
• Speed to change
• Communication
• Short feedback cycles
• Simplicity
• Courage
• Transparency
• Sustainability
• Reflection
• Continuous attention to excellence

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* Source : EY Growing Beyond - How high performers are accelerating ahead
** Source : Accenture - Supporting Operational Agility Through A New Generation of Learning Technologies
Operational agility – Why -
Operational Agility is not only critical to success or to thriving it is also crucial to survival
The “one common reason” that led to the failure of top organizations (such as Black Barry,
Nokia, Block Buster, and Borders) in the last 10 years is very simple “ not recognizing
changes in a timely manner and/or not being able to adapt to changes swiftly enough”
Conversely, Operational Agility is a key characteristic of the top performer organizations
“High performers respond smartly to change but, more importantly, respond speedily”*
“The organization whose operations are more agile than its competitors’ can take advantage
of change at the expense of the rest of the field”**
Operational Agility, what it is /it’s not, and why Cont’d

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Measuring Operational Agility
low
high
high
Organizations don’t recognize changes
and consequently do not react
Organizations recognize change but does not
/ unable to react on timely manner
Organization has a strong operational
agility / capable to change but miss
recognizing opportunities and have boor
strategies and innovation processes
Organization has a strong operational
agility / capable of initiating change and
recognizing opportunities. Also usually has
strong strategies and innovation processes
Apple recognized and reacted to the
opportunity of targeting the large screen
mobile phone market (Fablit)
BlackBerry not recognizing the
opportunity of consumer market or
apps market
Borders (was the largest book, movies, and
music chain in the US recognized the change
to online/emarket place but failed to adapt
its operation and outsourced its online
business to Amazon
Blockbuster did not recognizing the
changes in the industry and had no
ability to adapt to the changes to keep-
up with consumer demand
Recognize change/opportunity
Reacttochangeswiftly

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Operational Agility Framework
Operational Agility Framework is a practical approach connecting the three key components
of operations : Business Capabilities, Technology and People in a cohesive way to adapt to
changes effectively, efficiently and swiftly
Operational
Agility
Framework
People
Business CapabilityTechnology

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Operational Agility Framework Components
Operational
Agility
Framework
Business Technology Alignment Model BTAM Business Capability Model
Business On a Page
Operational Agility Framework consists of three key components,
 Business On a Page that summarizes the entire business of the enterprise on one page
 Business Capability Model defines key unique business capabilities across the enterprise
 Business Technology Alignment Model, set of technology services represent key unique technology
services that enable business capabilities

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Operational Agility Framework Components –
Business On a Page
Business On a Page is a cohesive presentation for a complete business on one page, it aims to give the big picture of
the key components in any particular business and it is a very effective communication tool across all levels of the
organization from senior executive, to middle management and staff
Expected outcome : holistic high level understanding of your business and identifying the components that matter, it
helps answer business questions precisely and allows better communication, such as what is the important channel,
what is the category of customers we want to focus on, what is the product(s) we want to promote,…etc
Customer
Customer Category
1
Customer Category
2
Customer Category
3
Customer Category
4
Customer Category 5 Customer Category 6
Chanel Sales Force Digital Mobile Call Center eMail&Mail POS
Data Management
and Analytics
Document
Management
Content
Management
Business Processes
Management
Digital Asset
Management
Presentation Layer
Product / Service 1 Product / Service 2 Product / Service 3 Product / Service 4 Product / Service 5 Product / Service 6
Product / Service 7 Product / Service 8 Product / Service 9 Product / Service 10 Product / Service 11 Product / Service 12
Audit HR Customer Service Corporate Finance
Marketing Legal Compliance Operation Risk Sourcing
Infrastructure Desktop Mobile
Real-Estate Office Building Branches Call Centers Data Centers Other sites Satellite locations
Network Computing
Information Technology
Enterprise Services -Cross channel /Cross Products/Cross Function
Integration Layer
Products
Foundation

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Business Capability Model(BCM)
Step 3 : identify strategic capabilities that have to be retained and executed in the organization
or non strategic capabilities which can be :-
 Shifted to business partners , customers or outsourced
 Standardized and shared across the organization with the possibility of being shared with
business partner
Step 2 : identifying key capabilities,
and sub capabilities required to
execute key business activities and
provide key product and services to
all customers or certain customer
categories at one or more business
units at one or more locations
Step 1 : Identifying business value chain, what are the set of activities needed to provide
value to our stakeholders Example of a Capability Model in Financial Institution
Generate demand
for a product
- Manage
Partnership
- Market product
-Sell Product
Manage Sales
- Configure product
pricing
- Qualify Prospects
- Process Transaction
- Configure promo
-Manage Order
- Prepare contract
-Manage Contract
Strategy /
planning
Develop
product
Marketing
/sale
Transaction
management
Service

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Business Technology Alignment Model(BTAM)
Business Technology Alignment Model is a Service Oriented Architecture (SOA) based model with emphasis on the fact that
SOA has to start with Business Architecture and it is NOT a technology initiative.
The model is driving by a well defined BCM to
• Define Technology components (application(s), modules, databases, web services, APIs and HW required to enable certain
business capabilities
• Define product, roles, org entity, channel and customers that will ultimately be served using the defined business
capabilities and enabling technologies
Expected outcome : a customer driven organization that has a clear visibility regarding customers, their preferred channel,
required business capabilities to serve them and finally the technology services required to enable the desired business
outcome
Role
BusinessCapabilities
ApplicationComponent
Orgunit
Channel
Customer
DataDomain(s)
ITservices
Infrastructureservice
Product/service
11© 2015 Convergent Consulting Inc. All rights reserved

2/25/2016 12
Bank On a Page …..Banking Application -1
* Please read the framework
horizontally

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Business Capability Model…..Banking Application -2
Generate demand for
a Card Business
 Manage
partnership with
retailers
 Market Cards
directly to
consumers
Manage card
holders services
Manage Sales
 Configure product
pricing
 Qualify Prospects
 Process
transaction
 Configure promo
Manage orders
 Prepare contracts
Manage Contracts
Wealth Management – Mutual
Funds
 Configure funds
 Market to Financial Advisor
 Process transactions
 Manage FA services
Manage Unit Holder
Services
 Manage fund accounting
Manage portfolio
 Manage trades execution
 Manage trade settlements

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Business Technology Alignment Model Banking Application -3
Business capabilities and IT enablers
Services enabled by Bus capabilities are provided
by certain role (located in org unit belonging to a
bank component) through a channel to a customer

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Business On a Page ….. Digital Application - 1
Consumers
Channels Digital/WEB Mobile POS Social…Forums and Blogs Smart TV eMail
Presentation Layer
Multi Channel Publishing tool
Channel & Capability Agnostic CMS
Key Capabilities
Customer Portal Personalization
Promotions & Offers
Management
Social Capabilities eCommerce Social CRM
Profile Management
Geofencing / location
driven personalization
Promotions and offer
presentation
management
Identity Management
Digital experience
Management
Pushing
Loyalty Management
Profile driven
personalization
On-time events
management &
analysis
social network
Digital Content (API) – Manage
and present business partner’s
contents
Engaging
Transaction Management
Members history driven
personalization
Offer
management
Ability to recommend
activity/action to others
social acquaintance
Content management Listening
Social driven
personalization Tracking and
reacting
Review and blogging
LiveChat service
Acting
Third party /partners
Advertisements /info
Technology/device driven
Integration HUB Web Service/APIs
Data & other sources DW/DM/Analytics/Online Transactions (OLTP)/Facebook,…..
Infrastructure Technology Stack

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Business Capability Model…..Digital Application -2
Social CRM
 Manage
Customer social
activities
 Manage
customer
integration
Manage social
communities
eComm
 Configure
product pricing
 Configure promo
 Manage Omni
Channel
Manage order
processing
 Manage delivery
Manage digital
after sale services
Social Media
 Manage organization's Face
Book presence
 Manage organization's
Twitter presence
 Manage organization’s
other key social platforms
 Manage Blogs
 Manage Customer reviews
 Manage Customer digital
interaction

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Business Technology Alignment Model Digital Application -3
 Customer Access digital property through a smart device to process mortgage application
 4 Business capabilities will be executed to complete customer process
ManageApplication
Approvecredit
Appraisecollateral
Managecontract
ApplicationComponent
Digitalproperty
representOrgunit
SmartDevice
Customer
DataDomain(s)
ITservices
Infrastructureservice
Mortgage
Business
Capabilities
ProductOrg unitChannel
17© 2015 Convergent Consulting Inc. All rights reserved

2/25/2016 18
Conclusion
In case of any changes, your organization will be
able to determine swiftly
and precisely the following :-
- Business capabilities need to be built or changed
- Technology components need to be built or changed
- People and skills needs to be acquired or changed
Changes
Changes
Changes
Changes
Understanding and
communicating the “big
picture” precisely
Aligning business
capabilities with
technology components,
and data domains
Defining the key
business capabilities
Timely pinpointing these issues will enable the
organization to decide quickly with a greater
confidence, on the course of action required to
adapt to change, leverage opportunity or
respond to threat
The successful completion of the three steps will transform
your operation into an agile operation
Three key steps to create Operational Agility

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Questions

2/25/2016 20
Appendix : Business Capability
A business capability defines the organization’s capacity to successfully perform a unique business activity.
Capabilities:
 are the building blocks of the business
 represent stable business functions
 are unique and independent from each other
 are abstracted from the organizational model
 capture the business’ interests
Business capability model is:
A model of the firm associating the business capabilities, processes, and functions required for business
success with the IT resource that enables them*
*Adapted from Forrester Research

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Appendix : References and Support materials
• Competing through organizational agility
Three distinct types of agility—strategic, portfolio, and operational—help companies compete. Each of them has
its own sources and dangers
December 2009 | by Donald Sull
http://www.mckinsey.com/insights/managing_in_uncertainty/competing_through_organizational_agility
• Supporting Operational Agility Through A New Generation of Learning Technologies
Alex Kass, Accenture Technology Labs - Palo Alto
Katharina A. Probst, Accenture Technology Labs - Chicago
Ryan M. LaSalle, Accenture Technology Labs – Chicago
http://www.accenture.com/SiteCollectionDocuments/PDF/LearninginSupportofWorkforceAgilityfinal.pdf

Eacbpm 2015 operational agility v5 final_may 18

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