Business Architecture and Enterprise Planning


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Business Architecture is a multi dimensional discipline primarily focused on organizational structure and performance in terms of business strategy, business functions, capabilities, roles and their relationships. Implementing and executing Business Strategy goals is among Business Architecture’s focus areas.

This presentation and discussion will focus on Strategic planning relationship with Business Architecture. Employing Business Architecture techniques, Corporate Planners can translate business strategy goals into actions, identify critical areas of enterprise change and transformation while identifying and mitigating related risks.

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  • 1. OMG Business Architecture Special Interest Group,
  • Business Architecture and Enterprise Planning

    1. 1. Enterprise Planning and Business Architecture Badar Munir PMI Knowledge Sharing – Chicago August 15, 2013
    2. 2. Speaker Introduction • Business and IT Transformation • Enterprise Architecture • Business Architecture • Software Process Excellence • Aviation, Banking/Financials, Telecom, Utilities and Govt. sectors • BS in CS and MS in IE/OR from Univ. of Oklahoma • BS in Aerospace Engineering from St. Louis U.
    3. 3. TOPICS • Business Architecture – Core Concepts • Strategic Planning Planning and Business Architecture • Facilitated Discussion / Q&A
    4. 4. Business Architecture – Core Concepts
    5. 5. What’s Architecture? The fundamental organization of a system, embodied in its components, their relationships to each other and the environment, and the principles governing its design and evolution. • ISO/IEC 42010: 2007
    6. 6. Architecture: Automobile
    7. 7. Architecture – US Political System
    8. 8. Business Architecture
    9. 9. Business Architecture - Definition Object Management Group (OMG) • A Blue Print of enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands1
    10. 10. Business Architecture (Biz Arch) • Architecture of a Business • Describes the structure a business in terms of its strategies, capabilities, operations, models, and roles • Is Realization of enterprise functional and information models in terms of its business model and business strategy
    11. 11. What Biz Arch is all about • WHAT, WHY, WHO, WHERE and WHEN aspects of Business • Driving and validating Business Strategy • Bridging Business strategy and its execution • Business and its performance • Blueprinting a firm’s Business structure in terms of business functions, capabilities and related services • Integrating Business motivations, operations, governance and related networks • Integrating different aspects of Enterprise Eco system • Identifying and mitigating Internal and external forces impacting business performance
    12. 12. Biz Arch is about…
    13. 13. Biz Arch is about.. Driving and Bridging to its Execution Validating Business Strategy
    14. 14. Biz Arch is about.. Business and its Performance Integrating • Business Operations • Business Networks • Business Motivations • Business Governance
    15. 15. Blue Printing an organization’s Business Structure • Functions • Capabilities • Value Streams • Governance • Operating Model • Roles Biz Arch is about..
    16. 16. Biz Arch is about.. Integrating different aspects of Enterprise Eco System Identifying Internal and external forces Impacting business performance
    17. 17. Biz Arch is NOT? • About IT Architecture • About IT Business Analysis • About Business Processes • About specific deliverables • Any framework restrictive • HOW aspects of Business
    18. 18. Biz Arch Eco System • Represents internal and external aspects of Business • Internal or Core business aspects are considered most stable as they change little with changing times • External aspects of business change more quickly and extend business architecture in variety of ways • Interaction among/between business aspects: – Aid in Business Planning – Key towards executive decision making – Extract queries to what, why, who, when, where and how
    19. 19. Biz Arch Eco System…
    20. 20. Biz Arch Eco System ... Internal or Core business aspects Considered most stable as they change little with changing times
    21. 21. Biz Arch Eco System … External aspects of business Change more quickly and extend Business Architecture in variety of ways
    22. 22. Influencers and Influences • A) What influences Business Architecture? • B) Whom Business Architecture impacts/influences?
    23. 23. Biz Arch Views • Business Strategy View • Business Capabilities View • Business Systems View • Business Knowledge View • Business Structure View • Business Finance View
    24. 24. Business Capability • Defines what a Business does • A particular ability or capacity what a business may possess to achieve a specific purpose or outcome • Relates to other aspects of a business
    25. 25. Business Capabilities - Types STRATEGIC - Direction Setting CORE - Customer Facing Supporting / Operational Business Planning, Capital Management, Govt. Relations Management, Marketing Management, Policy and Process Management, Partner Management Solution Management (e.g., Accounts, Contract); Customer Management; Product Management; Agent Management, Exceptions Management (Claims, Defaults); HR Management, Legal Management, Procurement Management, Accounting / Finance/ Payroll Mgmt., Governance, Audit, IT Management, Operations Management
    26. 26. Capability Map
    27. 27. Capability Leveling Capability Map can be leveled/architected at three or more levels. • L1 : Foundation Capability • L2: Group Capability • L3: Business Capability
    28. 28. Biz Arch Roles • Provides basis for strategic planning & transformation • Enables realistic investment strategies • Enables business growth strategies • Provides insights into current and expected business capacity and challenges to deliver products & services • Identify opportunities for business critical investments thus improving ROI and shareholder value • Offers holistic and extended views integrating business with customers, suppliers and social network
    29. 29. Biz Arch Benefits • Enhance Competitive edge • Improve organizational agility: – Supporting ‘lean’ thinking – Aligning business capabilities cross functionally • Analyze and test disruptive / innovative business ideas • Validate business strategy by defining future operating conditions • Identify opportunities to reduce Organizational inefficiencies, Operating costs and improve TCO • Improve IT strategy and IT Operations alignment with Business strategies, services, capabilities and delivery
    30. 30. Strategic planning and Business Architecture
    31. 31. “In Planning for battle, I have always found that plans are useless, but planning is indispensable.” General Dwight Eisenhower
    32. 32. Strategic Planning Most Organizations plan for enterprise/business strategies by considering and evaluating: • What they might do • What they can do • What their leadership wants to do • What they should do
    33. 33. Enterprise Strategy Goals Most Enterprise Strategic initiatives focused on: • New / Refined Products • New / Refined business Services • Mergers & Acquisitions/Divestures • Business Transformation • Business Consolidation
    34. 34. Ansoff Strategy Model
    35. 35. Porter Model
    36. 36. Business Architecture Process
    37. 37. Business Architecture Process..1 Define / Refine Business Strategy Determine Assessment Path • Objectives Setting • Objective Tradeoff Analysis • Impact Analysis • Business Scenario Analysis • Objective Prioritization • Assessment Planning • Product / Service Mapping • Org. Function Mapping • Resource Mapping • Business Capability Mapping • IT Asset Mapping • In Flight Asset Mapping Perform Business Arch Analysis
    38. 38. Business Architecture Process...2 Develop Target State Architecture Define and Plan Initiatives Deploy Business Solutions • Strategy / Business Architecture Mapping • Target State Business Risks and Influencers Mapping • Target Business Functions • Target State Business Architecture Artifacts • Target State Business Model Mapping • Target State Operating Model Mapping • Identify possible Initiatives • Map Initiatives with Capabilities Architecture • Map Business Risks with Capabilities and Initiatives • Define and Prioritize Initiatives • Establish Success Criteria • Identify Deployment Team(s) • Deployment Team(s) Engagements • Projects and Programs Execution • Deliverables Deployment • Success Evaluation
    39. 39. Business Architecture Process..3 PG: Initiating ProcessPG: Execute, M&CPG: Close PG: Planning Process
    40. 40. Linking Capabilities and Initiatives • Target Business Capabilities are among key outputs of Target Business Architecture – New Business Capabilities – Refined Business Capabilities – Remove or Re-prioritize existing Capabilities • Capabilities and their strategic value drives Initiative identification, prioritization, planning and execution
    41. 41. Capability Heat Map Analysis • A critical technique for capability analysis. An outlines follows: – Red = Poorly defined or placed, Need corrective action – Yellow = Problematic, Need preventive action – Green = Working well – no change – Purple = Non existent – needed critically – No Color = Not evaluated
    42. 42. Strategic Business Planning Marketing Partner Management Capital Management Policy Management Govt. Relations Management CORE Account Management Product Management Distribution Management Customer Management Channel Management Agent Management Supporting Financial Management HR Management Procurement Management IT Management Training Operations Management Capability Heat Map
    43. 43. Linking Heat Map to Initiatives Products and Services Enterprise Business Architecture • Enterprise Risks • Business Priorities • Dependencies InitiativesPlans & Projects Business Solution Deployment PG: Initiating ProcessPG: Execute, M&CPG: Close PG: Planning Process
    44. 44. Summary • Business Architecture Analysis/due diligence – Is triggered by Business Strategy goals – Results in identification of business transformation – Capability Heat maps identify business criticality – Business Initiatives identified – Planning to accomplish strategy goals follow • PMBOK can be employed to plan, execute, manage and control business transformation initiatives and related projects
    45. 45. Facilitated Discussion / Q & A
    46. 46. Biz Arch and Competitive Edge How is business architecture used today to generate competitive advantage? - Defining and Improving new/refined Services and Capabilities - Competitive Edge Research and Analysis - Reducing costs of services and delivery - Business Transformation - Improving Citizen Services (Canadian Govt)
    47. 47. How you measure Success Based on Strategic Goals. Differ in each case • Reducing Cost of Services delivery • Improving Organizational Productivity • Reducing Operational Costs • Improve Profitability • Improve Customer Satisfaction • Attract new Customer Base by improving Service Quality and Delivery
    48. 48. Business Architecture CSFs It can be answered at two levels: • Business Architecture Practice. Tackles issues such as – Establishing common definitions of business models from reusability perspectives – Establishing global Business Strategy Planning Processes – Reusing Organizational Capabilities building blocks – Measuring Alignment of Business Models with Business Strategies (a problem for a major Aircraft Manufaturer) – Measuring Value of Products and Services from Customer Perspectives • Individual Business Transformation Initiatives
    49. 49. Top three metrics using Biz Arch • Improve Business Innovation • Track, Improve and Maintain Business Value • Continuously Improve Speed to Market
    50. 50. Challenges with implement a BA discipline? • Culture • Organizational Maturity • Executive Buy In • Qualified Talent to lead the effort • Patience
    51. 51. Biz Arch Value Proposition / Benefits • Strategic Planning and Prioritization • Customer / Stakeholder Value Delivery • Business Collaboration and Business Innovation • Business Transformation / M&A / Divestures • Analyzing and Deploying Complex Business Scenarios • Partner Alignment • Streamlining Business / IT Alignment • Business Model and Strategy Alignment
    52. 52. Contact Info