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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 31
FINALv1.0.2–SEPTEMBER ,2013
PRESENTED BY:
CraigMartin-ChiefArchitect,
Enterprise Architects
An introduction into the design of
business using business architecture
DISCOVERING BUSINESS
ARCHITECTURE

2.
| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 32
EA is a leading international provider of strategy
and architecture services and capabilities
Championing Practice Awareness in
the Community
• Chief Architect / CTO Round Tables
• Virtual Teaming & Practitioner
Collaboration
• Open Group Participation
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Architects
• Practitioner career lifecycle
management
• Architecture training and certification
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• Community involvement
• PAYG payroll services
• Learning forums
Skills Uplift for Organisations &
Individuals
• TOGAF® 9.1 Certification
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• Advanced / Applied EA
• Business Architecture
• Information Governance
• Solution Architecture
• BPMN
Strategic Relationship With
Corporate Clients
• Strategy & Architecture Capability
Improvement
• The delivery of strategic architecture
outcomes
• Architecture delivery Accelerator
Frameworks
• Resourcing & Talent
• Managed Services
Learning
Services
Architect
Services
Thought
Leadership
Enterprise
Services

3.
| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 33
Twitter @eatraining
Email craig.martin@enterprisearchitects.com

4.
| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 34
Join the discussion
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5.
| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 35
Utility
(Foundation)
Innovate
Build Advantages
Assemble
Prolong
Advantages
Mix
Reduce
Disadvantages
What's business about?
DIFFERENTIATION
The Building Block Analogy

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 36
The goal of a good business
model is to address the
advantages and disadvantages
in a coherent manner
The Environment
The Business Model
Market
Model
Products
and Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 37
Finding the Right Business Mixes
This entails having a clear understanding of the activities required to move from the mystery
space to the algorithm space
Unresolved
Business
Challenges
Rules of thumb
Robust,
repeatable and
replicable
formulas &
processes
Ultimately all innovative
algorithms will become utility.
* From Roger Martin (2009) The Design of Business

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 38
D
INTUITIVE
THINKING
ANALYTICAL
THINKING
RULES OF
THUMB
The speed of business change requires a discipline that is able to use
the heuristics effectively in order to achieve the desired outcomes
The Environment
The Business Model
Market
Model
Products and
Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology
Robust, repeatable and replicable processes
Unresolved Business Challenges
Mystery Mystery Mystery
Innovation
Heuristics
Assembly
Heuristics
Mixing
Heuristics
Utility
(Foundation)

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 39
The Focus is Moving Upwards
What we are finding is that business challenges are moving further up the knowledge funnel. The lower
levels are becoming commoditised rapidly and the challenge is for those who can find value in mixing the
chunks further up the knowledge funnel
* From Roger Martin (2009) The Design of Business
› Process Improvement
› BPM
› Automation. Modules. Components
› Value Stream and Cross Functional
Capabilities
› Capability Based Planning
› Optimal Mixes of Resources
› Business Model Innovation
› Business Model Disruption
› M&A
PROCEDURAL
INSTRUCTION SETS
(Fine grained & atomic
problems)
COMPLEX AND DYNAMIC
(Coarse Grained Composite
problems)
Agility
favours those
who find the
best
heuristics

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 310
What we have found in large accounts
An ownership gap for business architecture exists - Lines of responsibility around cohesion and business
architecture, are often unclear
Functional
Capabilities
Cross-Functional
Capabilities
EnterpriseCoherency
Capabilities
Strategic
Architecture
Mandate –
Business
Ownership
IT Architecture
Mandate –
IT Ownership
Business
Architecture
Mandate
Undefined
Cohesion Mandate
Undefined - Enterprise Planning Ownership
THE HEURISTICS
CHALLENGES

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 311
The Focus is moving
Moving unresolved business problems into the utility space is a journey across the complexity space that is supported by both the business
architects and business analysts. Business architects therefore have a career path moving into the unresolved business problems space
Software
Automation
Projects
Funds
investment
Widget
assembly
Credit card
approval
Inventory
Management
Outsourcing
Projects
Major re-
design
projects
Six-sigma based
process
improvement
analysts
New Product
design
Deals with other
companies
International
Delivery
On-line
purchasing
ERP based
process
improvement
Complex Processes, not
part of company’s core
competency: Outsource
Complex, dynamic
processes of high value:
undertake business
process improvement
efforts that focus on
people
Straightforward, static
commodity processes:
use automated ERP-
Type applications and /
or outsource
Straightforward, static,
and valuable: automate
to gain efficiency
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value
added to products and services
STRATEGIC IMPORTANCE
PROCESSCOMPLEXITYANDDYNAMICS
Complex negotiation, design,
or decision process
Many business rules; expertise
involved
Some business rules
Procedure or simple
algorithm
Organisation
Heuristics
Principal
Business
Architects
Business Analysts
Strategic
Business
Architect
Senior Business
Analysts
*Adapted from “Business Process Change” by Paul Harmon
The Knowledge Funnel
Operates predominantly
on this side of the graph
Traversing this side of
the graph is the job of
the business architect

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 312
Business
Architecture
as a subset of
Enterprise
Architecture
STRATEGY
BUSINESS
PROCESSES
BUSINESS
CAPABILITIES
DATA
INFORMATION
ARCHITECTURE
 Metadata Management
 Knowledge Management
 Integrity Management
 Usage
TECHNOLOGY ARCHITECTURE
 Applications and Services
 Infrastructure
 Integration
 Client
BUSINESS
ARCHITECTURE
 Business Drivers
 Business Delivery
 Business Boundaries
Security, risk and SOA are all styles of
enterprise architecture.
They require the same rigour and discipline
of architecture to drive out their respective
outcomes.

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 313
Value
Mandate
E
A
B
C
D
Responsibility depends upon the mandate from business
Value increases when mandate increases.
Business Architecture is seen
as a positive progression
away from IT
*Adapted from Ruth Malan, Dana Bredemeyer
• Maximise Product Profitability
• Maximise Market Share
• Maximise Customer Lifetime Value
Improve project
performance
Improve enterprise wide
program and portfolio
performance
Improve Business Performance
Improve Market
Performance
(Shareholder Value)
Improve Product/Service
Performance

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 314
Top Management Challenges
37%
34%
29%
22%
Customer
Loyalty
Increasing
flexibility & speed
Reducing
Costs
Increasing
Innovation
PERCENTAGE OF CEOS REPORTING
COMMON DRIVERS FOR INCREASING BUSINESS FLEXIBILITY
1. Customer demand for quick turnaround and increased
need for customisation
2. Shorter decision cycles
3. Increased need for product innovation
4. Globalisation of corporate footprint
Current Business
Architecture Pressures
Aspirational Business
Architecture Pressures
*Executive Council Survey

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 315
Our Focus for “Discovering Business Architecture”
The utility of business architecture needs to be addressed before we can begin to address some of the composite
chunks up at the business model innovation and disruption level
Functional
Capabilities
Cross-Functional
Capabilities
EnterpriseCoherency
Capabilities
Strategic
Architecture
Mandate –
Business
Ownership
IT Architecture
Mandate –
IT Ownership
Business
Architecture
Mandate
Undefined
Cohesion Mandate
Undefined - Enterprise Planning Ownership

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 316
Governance Model
The EA Business Architecture Framework
Presenting Business Architecture
Outcomes (WHY)
Executing Business Architecture
(HOW)
Organising Business Architecture
Content (WHAT)
ENGAGEMENT
MODEL
BUSINESS
ARCHITECTURE
SERVICES
CATALOGUE
BUSINESS
ARCHITECTURE
CAPABILITY
MODEL
BUSINESS
CHANGE
MODEL
The EA
framework
for business
architecture
Business Architecture Skill and Competency

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 317
IDENTIFY GOALS
& OBJECTIVES
UNDERSTAND
BUSINESS
MOTIVATION
PROTOTYPE
BUSINESS MODEL
STRATEGIES
DEFINE
CAPABILITIES
ASSESS
CAPABILITIES
MATURITY
DEFINE FUTURE
STATE CAPABILITIES
MATURITY
ASSESS CURRENT
PROJECT ACTIVITY
PLAN TRANSITION
DEFINE
VALUE CHAIN
COMPONENTS
1 2 3 4 5 6 7 8 9
Identify value chain
segments, channels,
offerings, clients
Assign KPIs to value
chain components
Rank importance of
models to achievement
of objectives
Use strategy ranking to
identify required
changes in values of
KPIs to achieve target
values
Identify capabilities to
enable achievement of
objectives
Group capabilities into
value chain segments
Decompose high level
KPIs to match the
capabilities
Assign KPIs to
capabilities
Define capabilities
components
Research best practices
and competitors for
each capability
Assess current maturity
of organization
capabilities
Obtain current values
for KPIs
Set target values for
KPIs
Identify target maturity
level for capabilities to
achieve target KPIs
Identify dependencies
between capabilities
based on their
components
Identify changes in the
capabilities
components to achieve
the target maturity
level
Define future state
capabilities maturity
levels
Catalogue required
changes to the
capability components
Catalogue required
changes in the value
chain structure & value
chain components
Catalogue in-
flight/planned
transformation
initiatives
Map in-flight/planned
initiatives to required
transformations
List transformations
required to address the
remaining gaps
Prioritize the full list of
transformation
initiatives
Analysis of business
dependencies
Sequence
transformation
initiatives
Alignment of
transformational plan
with other organization
programs
Assess future values of
high level KPIs
Identify strategic
themes
Identify drivers and
environmental factors
Decompose existing
strategies and refine if
required
Document SMART
Objectives
Map KPIs to strategies
Obtain current values
for decomposed KPIs
Obtain info on goals &
objectives (derive if
required)
Rank relative
importance of
objectives
Assign high level KPIs
to objectives
Gather current values
for the high level KPIs
Obtain target values for
the high level KPIs
WORK
STREAMS
ACTIVITIES
Develop prototype
strategic business
models
HOW: Executing Business Architecture
A Business Architecture Method
PROBLEM DEFINITION
BUSINESS SCENARIOS
UTILITY
OUTPUTS
MEANS TO END
BUSINESS
MOTIVATION MODEL
BUSINESS MODEL
CANVAS
A VALUE SYSTEM
MODEL
A VALUE CHAIN
CAPABILITY ANCHOR
MODEL
STRATEGIC OVERLAY
CAPABILITY ANCHOR
MODEL WITH CURRENT
MATURITY OVERLAY
CAPABILITY ANCHOR
MODEL WITH TARGET
MATURITY OVERLAY
CAPABILITY ANCHOR
MODEL WITH PROJECT
OVERLAY
MATURITY, IMPACT
AND IN-FLIGHT
MATRIX AND DEVELOP
THE QUADRANT
GRAPHS
CAPABILITY ANCHOR
MODEL WITH HOTSPOT
OVERLAY
SEQUENCING MATRIX
TRANSITIONPLAN
SUMMARISED
ROADMAP VIEW
Discovering Business Architecture Course Outputs

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 318
Developing The Business Architecture
Defining a business model requires a number of iterations from macro to micro
OPERATIONAL
CAPABILITY
BUSINESS
STRATEGY
• The strategy layer articulates the means to
achieve the contextual layer
• The business layer translates the strategic vision into how value is
delivered to the client along various dimensions, including the value
chain, products, and channel.
• The capability layer expands the conceptual model into detailed
business capabilities and describes their inter-relationships and
target maturity levels.
• The operational layer decomposes the capabilities into
specific processes, policies/procedures, organisations, roles
and technologies required to enable the business
capabilities.
MACRO
MOTIVATION • The motivation layer articulates the direction, vision, goals and drivers.
Relates to the context point identified in the previous module
OPERATIONS
STRATEGY
BUSINESS
STRATEGY
MICRO

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 319
How is a business represented
A business model is expressed in a variety of views depending upon level of abstraction
The Business model is described in terms of business motivation
and outcomes and is often represented in the form of a business
motivation model
Various business models produce different outcomes for
different scenarios. Developing scenarios for business models
is done using the business model canvas
At the conceptual level you will develop the detail of the
various strategic business models using the EA Business
Reference Model with corresponding value chain
models
The capability layer expands the conceptual
business model into detailed business capabilities
and describes their inter-relationships and target
maturity levels. It is often represented in the
business anchor or capability model
The operational layer addresses all the
resources that are within the capabilities
and is found in the more traditional process
and functional decomposition models
THE BUSINESS
MOTIVATION MODEL
THE BUSINESS
MODEL CANVAS
THE VALUE SYSTEM
MODEL
THE BUSINESS
CAPABILITY ANCHOR
MODEL
NOT
ADDRESSEDOPERATIONAL
CAPABILITY
BUSINESS
STRATEGY
MOTIVATION

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What is the Business Motivation Model?
The language of strategic planning is often inconsistent – The BMM provides a Consistent Language at
the motivation level
Mission
Strategies
Tactics
Vision
Goals
Objectives
A statement describing the aims,
values and overall plan of an
organisation.
e.g. “To be the leading creator and
protector of wealth.”
A Course of Action that channels
efforts towards objectives
e.g. “Call first-time customers
personally”
The strategic plan.
e.g. “Defend our current customer
base to reduce churn and increase
repeat business”
A concise statement of a desired
change.
e.g. “To be the leading provider of
wealth management services in our
major target markets
The outcome of projects improving
capabilities, process, assets, etc.
e.g. “Develop an operational customer
call centre by June 30, 2015.
What the plan will achieve.
e.g. “Improve customer satisfaction
(over the next five years)”
*Adapted from business motivation model - OMG
“The BMM is a technique in which one determines an ultimate goal and determines
the best strategy for attaining the goal in the current situation”

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 321
The Business Motivation Model Template
There are a variety of ways to depict the BMM. This version we have found to be the most
effective
CUSTOMERS
MISSION VISION
STRATEGIES
LEVERS
INFLUENCERS
OBJECTIVES
GOALS
OBJECTIVES
CHANNELS
DRIVERS
GOALS
EA’s
standard
structure
for a BMM

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 322
The Business Motivation Model Example
This is an example completed version of a business motivation model
EA’s
standard
structure
for a BMM

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 323
The Business Motivation Model Example
The motivation model can now also be used as an anchor model to overlay a variety of key
messages. More on this in a later module
EA’s
standard
structure
for a BMM

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 324
The Business Motivation Model is a Business Tool not
an Architecture Tool
The Motivation Model resonates well with business sponsors
› Business Stakeholders often find traditional business
architecture models difficult to consume
› We found that the motivation model resonates well with
business stakeholders
› Helps move away from pain point architecture to focus on
outcomes
› The challenge is that when you show this to the architect
its scoffed at – yet when you show it to the business
stakeholder their response is – this is Gold – this is what I
have been looking for.
The Environment
The Business Model
Market Model
Products and
Service Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 325
Developing Strategic Prototypes
“Prototypes are conversations you have with your ideas” – Tom Wujec - Designer
OPERATIONAL
CAPABILITY
BUSINESS
STRATEGY
MOTIVATION
The Business model is described in terms of business motivation
and outcomes and is often represented in the form of a business
motivation model
Various business models produce different outcomes for
different scenarios. Developing scenarios for business models
is done using the business model canvas
At the conceptual level you will develop the detail of the
various strategic business models using the EA Business
Reference Model with corresponding value chain
models
The capability layer expands the conceptual
business model into detailed business capabilities
and describes their inter-relationships and target
maturity levels. It is often represented in the
business anchor or capability model
The operational layer addresses all the
resources that are within the capabilities
and is found in the more traditional process
and functional decomposition models
THE BUSINESS
MOTIVATION MODEL
THE BUSINESS
MODEL CANVAS
THE VALUE SYSTEM
MODEL
THE BUSINESS
CAPABILITY ANCHOR
MODEL
NOT
ADDRESSED

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 326
Business Models as
a Unifying Concept
Business Models are a unifying concept
for business innovation, strategy and
architecture
*Adapted from Boeing
 CUSTOMERS
 FINANCIAL VIABILITY
 VALUE PROPOSITION
 INFRASTRUCTURE
Business Model
Innovation
“What's possible?”
Business
Strategy
“What will we do?”
Business
Architecture
“What's the Blueprint?”
Business Model
“What does it look like”

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 327
What have these brands got to do with disruption?
What is disruption?

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 328
Business Model Maturity
Measuring the Maturity of a full business model is a complex task. The Key is to look for
certain heuristics to use as a litmus test
MATURITY
The Environment
The Business Model
Market
Model
Products and
Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology
*Rita Gunther McGrath

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The Strategic Business Model Layer
› The Business Model canvas is an ideal tool to describe,
analyse, design and prototype strategic business
models at a high level
› The canvas allows for a “front office” and “back office”
style approach to looking at a business model
› It was designed to create a business model concept
that everybody understands: one that facilitates
description and discussion.
› The Canvas is described through nine basic building
blocks that show the logic of how a company intends
to make money.
› The nine blocks cover the four main areas of a
business:
» customers,
» offer,
» infrastructure,
» and financial viability.
The Business Model Canvas
CustomersInfrastructure Offer
Financial Viability

30.
| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 330
CS R$
VP
The Business Model Canvas
The path of the analyst and architect is normally traversed left to right
LEFT CANVAS
efficiency
RIGHT CANVAS
value
KAKP
KR
CR CS
CH
LEFT BRAIN
logic
RIGHT BRAIN
emotion
Back Office
support
Front Office
valueCAREER PATH
At this level is the value is achieved by
being able to mix the infrastructure to
achieve the value propositions
At this level is the value is achieved by
being able to provide the right mix of
products and services to the customer
that gives that customer value
Market OptionsOperating Options P&S Options

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Mandate – Architecture:
Improve Market Performance
The coarse grained problems that the canvas deals with are normally only handled by a
business architecture practice that has the high visibility mandate
Strategic
Planning
Business
Architecture
Business
Planning
Portfolio and
Project
Management
Solution
Architecture
Solution
Development

32.
| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 332
Injecting Business Architecture into the Strategic Scenarios Will Improve the
Strategic Decisions as well as the execution of that strategy
Semi
Integrated
Universal Bank
Product
Specialist
Customer
Owner
Infrastructure
Provider
Mandate: Improve Market Performance

33.
| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 333
Mandate – Architecture:
Improve Business Performance
Rationalising the investment portfolio using business architecture is one of the main drivers
for the business architecture practice at this level
Strategic
Planning
Business
Planning
Business
Architecture
Portfolio and
Project
Management
Solution
Architecture
Solution
Development

34.
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Mandate: Improve Business Performance
This facilitates creating a single unified business model that helps build coherency
across the enterprise Strategic Themes
Capability 1
Capability 2
Strategic Themes
Capability 5
Capability 6
Strategic Themes
Capability 3
Capability 4

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Mandate – Architecture:
Improve Project and Portfolio Performance
A more traditional mandate landscape is where business architecture is part of the PMO
method and scope
Strategic
Planning
Business
Planning
Portfolio and
Project
Management
Business
Architecture
Solution
Architecture
Solution
Development

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| AN INTRODUCTION INTO THE DESIGN OF BUSINESS USING BUSINESS AR CHITECTURE | ENTERPRISE ARCHITECTS © 201 336
Strategic Themes
Initiative 5
Initiative 6
Architecture as part of PMO ONLY
has limited value and affects
organisational coherency
Strategic Themes
Initiative 1
Initiative 2
Strategic Themes
Initiative 3
Initiative 4
Mandate: Improve Project and Portfolio
Performance

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Developing the Value System Model
Within the Market Improvement Space
The business layer
translates the
strategic canvas into
how value is
delivered to the
client along various
dimensions,
including the market
model, value chain,
products, and
channel.
OPERATIONAL
CAPABILITY
BUSINESS
STRATEGY
MOTIVATION

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A Value System Example
Within the Market Improvement Space
Example of the value system for a safe society
SAFE
SOCIETY
VALUE
SYSTEM
Judicial System:
Judgement -
Courts
Penal System:
Punishment -
Jail
Education and
Accountability
Government,
Law and Policy
Setting
Enforcement
System” Police

39.
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Network
Consumer
Device
The Value System - Key existing players
Within the Market Improvement Space
You can also look for gaps in the market by gaining an understanding of where key players
and competitors are positioned across the entre value system
AccessBackbone
Network
Consumer Device
Content
Service
Provider
Network Provider
Content
Aggregator/
Packager
Digital
Content Provider
Packaging/
distribution
Content
gathering/
conversion
Network
services
Operation
services
Network
Resale
PortalCommerceClearing
Rights
management
Johnnic
Telkom
Sentech
MIH
Digital
Content
provider
SABC
Johnnic
Infosat
MIH
SABC
Naspers Naspers
DSTV/MNet
MWeb
SABC
Telkom
Orbicomm/MTN Ananzi
ISDidata
Banks
Infosat
Banks
?BskyB / PrimediaBSkyB
DSTV/MNet

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The Business Model Template
Within the Improve Business Performance Space
There are a variety of ways to depict the BAM. This version we have
found to be the most effective
Markets
Customers / Key Buyers
Market Segments
Value Propositions
Offerings, products and services
Core Capabilities
Core Processes
Industries
Channels
Core Resources
Market
Model
Products &
Services Model
Operating Model

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Firm Value Chain
Developing the Value Chain
Within the Improve Business Performance Space
› Once you have obtained an understanding of the value system you can address the firm value system
› There are a variety of ways to document the firm value system
› It is a good habit to first document structural relationships at the business model level and then these can
be used as input into the value chain of the operating model
A Firms Value Chain is itself has a process in which it provides value to the products and
services as it delivers them to customers
Channel Value Chain Buyer Value ChainSupplier Value Chains
Supplier Value Chains
Supplier Value Chains
Channel Value Chain
Channel Value Chain
Buyer Value Chain
Buyer Value Chain

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The Canvas and the Value Chain
Within the Improve Business Performance Space
In most situations you can use the key activities from the canvas to help identify the value
activities in your value chain
The identifying of value activities
requires the isolation of activities that
are strategically distinct and
required for differentiation and
competitive advantage
The Key resources will help identify
the business entities that need to
move through the value chain

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Summarising the Value Chain
You get what you measure – Logistics Example
REMOVED

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Defining Capability
At this level the core value chain is expanded into the capability landscape
OPERATIONAL
CAPABILITY
BUSINESS
STRATEGY
MOTIVATION
The Business model is described in terms of business motivation
and outcomes and is often represented in the form of a business
motivation model
Various business models produce different outcomes for
different scenarios. Developing scenarios for business models
is done using the business model canvas
At the conceptual level you will develop the detail of the
various strategic business models using the EA Business
Reference Model with corresponding value chain
models
The capability layer expands the conceptual
business model into detailed business capabilities
and describes their inter-relationships and target
maturity levels. It is often represented in the
business anchor or capability model
The operational layer addresses all the
resources that are within the capabilities
and is found in the more traditional process
and functional decomposition models
THE BUSINESS
MOTIVATION MODEL
THE BUSINESS
MODEL CANVAS
THE VALUE SYSTEM
MODEL
THE BUSINESS
CAPABILITY ANCHOR
MODEL
NOT
ADDRESSED

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WHAT the Business Does – Functional
Capabilities
Functional
Capabilities
Cross-Functional
Capabilities
EnterpriseCoherency
Capabilities
Strategic
Architecture
Mandate –
Business
Ownership
IT Architecture
Mandate –
IT Ownership
Business
Architecture
Mandate
Undefined
Cohesion Mandate
Undefined - Enterprise Planning Ownership

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Capability driven
› Capability driven architectures are designed to support the strategic objectives of an organisation
› Capabilities consist of people, process and technology
› To fully understand a capability the three components exists regardless of their maturity level
One of the techniques to drive out the correct mixes is through capability based
planning
Capability based
planning is one of
the tools that looks
at the best “mix” of
resources required
to develop this
cohesion
Mission
Strategies
Tactics
Vision
Goals
Objectives
Outcome
CAPABILITY
People
Process
Tools

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The Business Anchor Model
The Anchor Model is the “Map of the City”

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The Business Anchor Model
And like a city map – the business anchor model can have many overlays. Each
communicating a different message on the same underlying structure

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The Business Capability Anchor Model
The Anchor model is an anchor to a variety of views. BizBok Aligned
*BizBokTM Sourced Views
ORGANISATION / CAPABILITY MAPPING
ACQUIRE LOAN
ON-BOARD
APPLICATION
PROCESS FEE
PAYMENT
VALIDATE
APPLICATION
APPROVE
LOAN
ISSUE
SECOND
APPROVAL
ISSUE LOAN
Account Pipeline
Management
Customer
Information
Management
Account
Information
Management
Account
Payments
Management
Customer
Information
Management
Account
Information
Management
Account
Structuring
Account
Information
Management
Acceptance
Notification
Account
Information
Update
Docket, Case
File, Routing
Management
Account
Structuring
Acceptance
Notification
Docket, Case
File, Routing
Management
Account
Structuring
Acceptance
Notification
Docket, Case
File, Routing
Management
Acceptance
Notification
Docket, Case
File, Routing
Management
VALUE STREAM / CAPABILITY MAPPING
CAPABILITY / INITIATIVE MAPPING
Initiative improves
or creates new
capabilities
CAPABILITY / INFORMATION CONCEPT MAPPING
CUSTOMER
MANAGEMENT
• Customer Name
• Customer Number
• Customer Address
• Customer Phone
• Customer Email
• Customer Status
• Etc…
CAPABILITY / APPLICATION
ARCHITECURE MAPPING
STRATEGIC
DIRECTION
SETTING
Business Planning Marketing Partner Management
Capital Management Policy Management
International Relations
Management
CORE:CUSTOMER
FACING
Account Management Product Management Channel Management
Customer Management
Agent Representative
Management
SUPPORTING
Financial Management Employee Management Procurement
Information Technology
Mngt
Training Operations Management
CAPABILITY
ACCOUNT MANAGEMENT
Account
Pipeline
Management
Account Billing
& Payments
Management
Account
Structuring
Account File
Management
Account
Maintenance
Account
Analytics
Account
Notification
Account
Information
Management
CAPABILITY / STRATEGY & BUSINESS MODEL MAPPING
CAPABILITY / COST & PERFORMANCE
ANALYSIS VIEW
PRODUCT
MANAGEMENT
• $ Analysis
• Impact Analysis
• Heat Mapping

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Determine the People, Process & Tools
Looking at people, process and tools of the capability model helps you understand capability better an
also is easier for business to understand
SIMPLE SETUP
Establish mobile sales team
to service and set up
customers on site
Simplify data input and
validation required for setup
Provide Setup facilities
across all channels with a
consistent user experience
Enable customers to transact
immediately
Provide customers with
single sign on access to all
services provided by
Australia Post
H L A
H L A
H L A
H L
H L A
BUSINESS SERVICE
GOALS
CAPABILITY UPLIFTS ANTICIPATED THROUGH
INFLIGHT PROJECTS
LODGEMENT BUSINESS
OBJECTIVE REALISATION
People
Tools
Process
Recruit and train mobile sales teams
Train customer facing staff on lodgement proposition
Introduction of single online portal
Implement online Forms with basic data validation for all account
application submission
Review all communications to customers (website, pamphlets and
notifications) and revise language
Provide necessary sales tools and technology for mobile sales
team
Review and redefine risk approval criteria across all channels and
user groups
Simplify details captured on Forms (i.e. remove duplicated fields)
for all account application submission
Enhancing process and reducing non-value added activities
across all channels and user groups
Establish process and operating model for mobile sales team
PEOPLE PROCESS TOOLS
Sanitised

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Determine the People, Process & Tools
People, Process and Tools are the resources required that make up the capabilities
› Talk to business stakeholders in terms of People, Process and Tools that drive out
an outcome
› To come up with the detail around the these resources, you use the business
analysis community
› Cluster these capability components into capability models later, since these are the
models that the architecture discipline tends to use
› This approach also helps business stakeholders begin to understand the resources
within a capability
› This approach also begins to expose the resources for discussion and helps facilitate
a the assemble and mix discussions
The Environment
The Business Model
Market Model
Products and
Service Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value Chains
 Business Services
 Functions
 Data
 Applications
 Technology
INFLUENCERS - DRIVERS

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The Business capability anchor model – Overlays:
› Supporting impact analysis and business communication
Overlaying specific views on the business anchor
model can highlight issues and opportunities
within the application portfolio, the program of
work and the business concerns/pain points across
key areas of a business.
An overlay of business
concerns and issues
An overlay of the current
program of work
An overlay of the technology
assets and their health

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The Business capability anchor model – Overlays:
Strategic Alignment

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The Business capability anchor model – Overlays:
Business Capability Maturity

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The Business capability anchor model – Overlays:
Current and Planned Investment is identified
Often issues and planned investment are not aligned
Investment
skewed towards
distribution
capability

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The Business capability anchor model – Overlays:
Hotspots and Issues are identified
Business architecture efforts are often tilted towards either
an issue centric view or a strategic centric view – both views
need to be considered
Some hot spots
exist under
product
manufacturing

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The Business capability anchor model – Overlays:
Comparing Investment to Issues to Identify Loss of Cohesion
Comparing Multiple Overlays Often Produces High Value Insights

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Outcome Based Architecture – Developing Value
Streams with Cross-Functional Capabilities
Functional
Capabilities
Cross-Functional
Capabilities
EnterpriseCoherency
Capabilities
Strategic
Architecture
Mandate –
Business
Ownership
IT Architecture
Mandate –
IT Ownership
Business
Architecture
Mandate
Undefined
Cohesion Mandate
Undefined - Enterprise Planning Ownership

59.
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Defining the cross functional capabilities
› Use a cross-Functional capabilities View to Identify common Business Interests
Customer relationship
management
Sales
BUSINESS CAPABILITY MAP FUNCTIONAL VIEW
Service
Service
strategy
Service
delivery
management
Customer
care
Service
fulfilment
Contact
management
Activity
management
Privacy and
preference
management
Opportunity
management
New
business
Opportunity
management
Relationship
management
Sales support
Sales
operation
management
Advice
BUSINESS CAPABILITY MAP CROSS-
FUNCTIONAL VIEW

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The Cross Functional Capability Model
The Process Layer Plays a Strong Role in assembling capabilities for different outcomes
PROCESS
Sign Up & Integrate
CAPABILITY
20. Information Services Management
CAPABILITY
15. Sales Execution
PROCESS
A1. Explore and compare
potential providers and
services
PROCESS
B2. Sign up and activate
account
PROCESS
C3. Integrate my store
with Australia Post’s API’s
precedes precedes precedes precedes
BUSINESS SERVICE
Customer Sales
Management
BUSINESS SERVICE
Partner Collaboration
PROCESS
C1. Receive information on
how the systems and
processes will work
PROCESS
C2. Install the necessary
hardware / software on
my systems
is realized by
LOGICAL
APPLICATION COMP.
Customer Sales
Management
LOGICAL
APPLICATION COMP.
Enterprise Resource
Planning
LOGICAL
APPLICATION COMP.
Partner Collaboration
Management
LOGICAL
APPLICATION COMP.
Security Management
communicates with communicates with
communicates with
implements
is realized by
implements
ACTOR
Post Staff
DATA ENTITY
Sales Order
ACTOR
Post Staff
participates in participates in
is processed by
consumes
SAP - CRM SAP - ERP auspost.com.a
u
IAM - OIM
is processed by
ACTOR
Fiona
participates in
Customer
CAPABILITY
People
Process
Tools
Connecting these to projects provides valuable
insight into coherency and the capex investment
across the enterprise
Within each process flow, there are
typically four to five capabilities that make
up the process. These typically correspond
to functional silos that complete each step.
Within each capability, the model
identifies systems or applications that
are used to execute the capability.
This is where the model forms the
alignment between business and IT.
ARCHIMATE
NOTATION

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The Cross Functional Capability Anchor Model Helps Identify
the Better Mix of Capabilities for Business Outcomes
Its at this point that business begins to see the true value of using capabilities
Standard functional capabilities can be
aligned to a value chain
Cross functional capabilities assemble and mix functional capabilities to achieve
outcomes in the value map or driver tree
Cross functional capabilities each drive out different
outcomes. Underlying functional capabilities will have
varying perspectives of capability maturity and
capability uplift
You can also use cross functional models as scenarios
to test the capability anchor model validity

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Cross Functional Capabilities
BizBok Aligned - Value Stream: Stakeholder-Driven, End-to-end, Value Based Perspective
VALUE STREAM / STRATEGY MAPPING
• $ Analysis
• Impact Analysis
• Heat Mapping
VALUE STREAM / COST &
PERFORMANCE ANALYSIS VALUE STREAM / STAKEHOLDER MAPPING
VALUE STREAM / INITIATIVE MAPPING
VALUE STREAM / CAPABILITY MAPPING
VALUE
STREAM
VALUE STREAM / BUSINESS PROCESS GOVERNANCE,
ALIGNMENT
PRODUCT & SERVICE
VALUE STREAM / PRODUCT PLANNING
& DEPLOYMENT
VALUE STREAM FRAMED, DYNAMIC, RULES
BASED ROUTING
Initiative improves
or creates new
capabilities
Initiative delivers value stream changes
“A framework for enabling
transparent transition of business
objects across and enterprise”
*BizBokTM Sourced Views

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Developing The Business Model
An Architectural Approach
Transitioning
Architect:
Understand all inputs to
work out the most
optimal execution path

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Optimised
Ad Hoc
MATURITYCapability Maturity Assessment
Plot importance and maturity to discover focus areas
STRATEGICALLY IMPORTANT
Describe
actions points
for each
quadrant
Repeatable
Defined
What
additional
overlay would
add a lot of
value?
Incremental
Transformational

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Architecture Data Capturing
This is an “architecture” tool – NOT a business tool. You need to create a view for this final
summary
Capability
Strategic Value
Level of Maturity
Maturity
Organic Target
State In-Flight
Project n Hotspots
Business
Impact Gap
Customer and
Service Line
Perspective
Process Organization Technology Project Name
CS FS CS FS CS FS P Pr T H M L P Pr T P Pr T
Example
Capability
Med 2 3 3 3 2 N/A 1 2 X sig sig
Example Sub-
Capability ABC
Low 3 3 2 3 3 4 X sig sig
Example Sub-
Capability DEF
High 2 3 2 3 2 3 1 incr
Example Sub-
Capability XYZ
Med 2 3 2 4 2 3 1 trns trns

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Capabilities and cross functional capabilities are evaluated in
light of all the change factors
The capability mixes are evaluated against each scenario to determine the optimal path going forward
Requirements: Program “x” requires a $100M 5-year net benefit and must be implemented in under 3 years.
Strategic Scenarios
Cross Functional Capabilities

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The Capability Anchor Model Views
You will need to develop your own shapes to represent the correct story you want to tell
CL

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The Architecture Story
Sanitised
The complexity of information is dependant upon the maturity of your audience

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The EA Roadmap Template
There are a variety of ways to depict a roadmap. This
version we have found to be the most effective
Mission, Vision, Goals and
Strategies
Strategic Objectives Aligned to
initiatives
Drivers
Assumptions
and
Principles
Program of Work
Risks Aligned to Program of work
Time, Cost and Effort
Value Chain Current State
Capability Current State
People Current State
Process Current State
Tools Current State
Data Current State
Value Chain Target State
Capability Target State
People Target State
Process Target State
Tools Target State
Data Target State
EA’s
standard
structure
for a
Roadmap

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The Planning Roadmap Outcome
Architecture Roadmap – 3 Year Plan (FY11 to FY14)

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Socialise the Architecture:
The Architecture Storyboard Walkthrough
These methods help the architecture speak for itself

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Questions?