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From Capability-Based Planning to Competitive Advantage Assembling Your Business Transformation Value Network 
Marc Lankho...
INTRODUCTIONS 
2
Marc Lankhorst 
Marc Lankhorst: 
•Service line manager Enterprise Architecture 
•Responsible for BiZZdesign’s EA propositi...
BiZZdesign: Building Strong Organizations! 
Organizations increasingly need to deal with time- pressured business improvem...
BiZZdesign Worldwide: Offices and Resellers 
BiZZdesign office 
BiZZdesign reseller 
5
Iver Band 
Iver Band: 
•Enterprise Architect at Cambia Health Solutions 
•Vice Chair, Open Group ArchiMate Forum 
•Co-Chai...
7 
Our Roots Born from an inspired idea 
Our Cause 
To serve as a catalyst to transform health care, creating a person-foc...
8 
About Cambia 
22 companies and growing 
A tax-paying nonprofit headquartered in 
the Pacific Northwest 
Nationally reco...
9 
Wholly Owned Companies 
Direct Investment Companies 
Health Insurance 
Direct Investment 
Companies 
Health Insurance 
...
Agenda 
•Introduction 
•Enterprise architecture 
•The use of models 
•Capability-based planning 
•Enterprise portfolio man...
The Challenge 
•The ‘Digital Enterprise’ requires major business transformations 
•The speed of change makes classical top...
ENTERPRISE ARCHITECTURE 
12
What is Enterprise Architecture? 
• A product 
– A design that shows the coherence between 
products, processes, organizat...
What Kinds of Enterprise Architectures Are There? 
14 
Enterprise architectures can be partitioned by enterprise segment o...
What Kinds of Enterprise Architectures Are There? 
•Core domain architectures 
•Cross-cutting domain architectures 
•Busin...
How do Enterprise Architectures Relate to Solution Architectures and Roadmaps? 
Baseline Plateau 
Intermediate Plateau 
Ta...
Enterprise Architecture and Other Disciplines 
•Enterprise architecture focuses on coherence and alignment 
–between strat...
TOGAF® - The Open Group Architecture Framework 
18
What is ArchiMate®? 
•A language to describe architectures 
•A graphical notation with formal semantics 
•A framework that...
Business 
Application 
Technology 
Motivation 
TOGAF, ArchiMate Core and Extensions 
20 
Preliminary 
D 
Technology 
Archi...
EA as Knowledge Hub in Business Transformation 
•Enterprise architecture provides different views on the enterprise’s make...
EA Relates and Supports Other Disciplines 
Enterprise Portfolio Management 
Strategy 
Capability-Based Planning 
Process, ...
Enterprise Architecture Role in Business Transformation Planning and Oversight 
Enterprise Portfolio Management 
Capabilit...
THE USE OF MODELS 
24
Implementation Guidance 
•As you build your own organization’s capabilities, create formal representations 
–unambiguous m...
Model-Based Architecture Repository 
•Ensure coherence between strategy and operations 
•Keep track of large and complicat...
Model-Based Architecture: Business Layer 
28
Model-Based Architecture: Application Layer 
29
Use ArchiMate to Connect Other Models 
30
Relating Goals & Capabilities to Target Architecture & Programs 
31 
Business Goals 
Business Capabilities 
Architecture P...
CASE STUDY: IMPROVING PROJECT MANAGEMENT TOOLING IN RESPONSE TO THE CHANGING ROLE OF THE CONSUMER 
32
US Healthcare Payer Challenges 
33 
Drivers from Gartner Group “Business Drivers of Technology Decisions for Healthcare Pa...
Typical Disconnected Project Management Toolset Hampers Decision-Making and Execution 
34
Architected Project Management Toolset Enables Better Decisions and More Efficient Execution 
35
CAPABILITY-BASED PLANNING 
36
Business Capabilities 
•A business capability is something an enterprise does or can do, given the various resources it po...
Business Capability Map 
38
Capability Based-Planning: Capability Increments in Different Dimensions 
Analysis and planning of capabilities using an A...
Architecture Analysis: from As-Is to To-Be 
40
ENTERPRISE PORTFOLIO MANAGEMENT 
41
What is Enterprise Portfolio Management (EPM)? 
•Enterprise portfolio management manages the enterprise landscape (project...
How Are Portfolios and Architecture Related? 
•Based on the architecture, portfolios are defined and managed in a consiste...
Adding Data to the Architecture 
44 
Architecture Repository 
Asset inventories 
Contract information 
Project planning 
P...
Portfolio Dashboard: Actionable Information 
45
Application Landscape with Life Cycle Advice 
46
REALIZATION 
47
Towards Agile Realization 
48 
Strategy 
Team 
Agile development 
Continuous integration 
Daily 
work 
Iteration 
4 
3 
2 ...
Sustainability with an Architectural Runway 
50 
Balanced Investment
How Do We Make That Work Within Our Teams? 
51 
High Level Business Case 
Business Objectives 
Functional Requirements and...
CONCLUSIONS AND DISCUSSION 
52
Consistent and Integrated Modeling… 
•Is a kind of knowledge management 
•Supports enterprise-wide analyses, e.g. traceabi...
Business Transformation Management is a Composite Capability That Benefits from An Architectural Approach 
Strategy 
Proce...
Call to Action 
•Business architects & analysts: 
–Collaborate with enterprise architects to assemble your organizations’ ...
Think like an architect when building your business transformation value network! 
56
Questions? 
Marc M. Lankhorst Service line manager Enterprise Architecture m.lankhorst@bizzdesign.com +31 644 092 359 
Web...
©2014 BiZZdesign. All rights reserved. 
BiZZdesign and BiZZdesign logos are registered trademarks of BiZZdesign Company.
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From Capability-Based Planning to Competitive Advantage: Assembling Your Business Transformation Value Network

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Many organizations are investing in capability-based planning, portfolio management, architecture and agile development processes. While they derive value from each practice, many struggle with getting all of them to work together. In rapidly evolving industries such as healthcare, businesses need to change continuously. Instead of programs and projects, they need transformation value networks that adapt to dynamic organizational and external drivers.
This presentation will use a unified framework and method to define and relate the ingredients for continuous transformation. The presenters will also demonstrate the value of standards-based visual modeling for integrating, expressing and improving business transformation practices. Visual models will show how American and European healthcare payers are improving quality and efficiency in response to demographic, economic and regulatory pressures.
Learning Objectives:
• Understand how to integrate capability-based planning, portfolio management, architecture and agile development processes
• Identify and position key frameworks for capability-based planning, portfolio management, architecture and agile development processes
• Understand core concepts and key applications of the ArchiMate language for visual modeling, an Open Group standard
• Understand the basics of visually modeling business strategy and organizational transformation
• Become familiar with the objectives and methods for an example of business transformation
• Understand how and when to integrate strategic guidance into agile development processes

Published in: Business
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From Capability-Based Planning to Competitive Advantage: Assembling Your Business Transformation Value Network

  1. 1. From Capability-Based Planning to Competitive Advantage Assembling Your Business Transformation Value Network Marc Lankhorst, BiZZdesign Iver Band, Cambia Health Solutions
  2. 2. INTRODUCTIONS 2
  3. 3. Marc Lankhorst Marc Lankhorst: •Service line manager Enterprise Architecture •Responsible for BiZZdesign’s EA proposition •Enterprise architect, trainer, coach, project manager •Manager of the original ArchiMate development project •TOGAF and ArchiMate certified 3 +31 6 44 092 359 m.lankhorst@bizzdesign.com http://nl.linkedin.com/in/marclankhorst http://blog.bizzdesign.com http://www.bizzdesign.com http://www.twitter.com/marclankhorst
  4. 4. BiZZdesign: Building Strong Organizations! Organizations increasingly need to deal with time- pressured business improvements and high-impact transformation in a truly complex business and IT reality BiZZdesign enables this by providing proven change capabilities through integrated solutions consisting of •professional services •software solutions •training •best practices 4
  5. 5. BiZZdesign Worldwide: Offices and Resellers BiZZdesign office BiZZdesign reseller 5
  6. 6. Iver Band Iver Band: •Enterprise Architect at Cambia Health Solutions •Vice Chair, Open Group ArchiMate Forum •Co-Chair and Co-Founder, Oregon Enterprise Architects •TOGAF and ArchiMate certified, CISSP, Certified Information Professional 6 iver.band@cambiahealth.com http://www.linkedin.com/in/iverpdx http://www.cambiahealth.com/ http://www.twitter.com/iverband
  7. 7. 7 Our Roots Born from an inspired idea Our Cause To serve as a catalyst to transform health care, creating a person-focused and economically sustainable system Our Vision Delivering a reimagined health care experience Our Story
  8. 8. 8 About Cambia 22 companies and growing A tax-paying nonprofit headquartered in the Pacific Northwest Nationally recognized: Top 100 Healthiest Workplaces 5,300 employees in 30 states 100 million people touched nationwide
  9. 9. 9 Wholly Owned Companies Direct Investment Companies Health Insurance Direct Investment Companies Health Insurance Wholly Owned Companies Cambia Health Solutions
  10. 10. Agenda •Introduction •Enterprise architecture •The use of models •Capability-based planning •Enterprise portfolio management •Agile realization •Conclusions 10
  11. 11. The Challenge •The ‘Digital Enterprise’ requires major business transformations •The speed of change makes classical top-down strategy implementation obsolete •Few organizations have a systematic and reliable way of translating a business strategy into action •Organizations invest in many disciplines, to improve their transformation capability and effectiveness •A lack of coherence between these disciplines compromises their success 11
  12. 12. ENTERPRISE ARCHITECTURE 12
  13. 13. What is Enterprise Architecture? • A product – A design that shows the coherence between products, processes, organization, information supply and infrastructure, based on a vision and certain explicit starting points, principles and preferences • A practice – Way of working – Aimed at the development and use of enterprise architectures within an enterprise – With people and resources 13
  14. 14. What Kinds of Enterprise Architectures Are There? 14 Enterprise architectures can be partitioned by enterprise segment or capability
  15. 15. What Kinds of Enterprise Architectures Are There? •Core domain architectures •Cross-cutting domain architectures •Business segment architectures •Specialization by both domain and business segment •Roadmaps 15
  16. 16. How do Enterprise Architectures Relate to Solution Architectures and Roadmaps? Baseline Plateau Intermediate Plateau Target Plateau Solution architectures arise at the EA segment and capability levels. They solve problems that stand in the way of progressing from one plateau to the next along a roadmap. Production Solution Architecture… Enhanced Solution Architecture… Retired Solution Architecture… Roadmap 16
  17. 17. Enterprise Architecture and Other Disciplines •Enterprise architecture focuses on coherence and alignment –between strategy, business, information, applications and technology –enterprise-wide, high-level descriptions •Business architecture, as part of EA, describes how the business operates –relates strategy & business model to business functionality, operating model, capabilities, products and processes •Business analysis translates business goals & needs into solution requirements –focused, more detailed 17
  18. 18. TOGAF® - The Open Group Architecture Framework 18
  19. 19. What is ArchiMate®? •A language to describe architectures •A graphical notation with formal semantics •A framework that describes and relates the business, application, and technology layers •Extensions for motivation, implementation & migration •Techniques for visualizations and analyses for different stakeholders •An open standard maintained by The Open Group 19
  20. 20. Business Application Technology Motivation TOGAF, ArchiMate Core and Extensions 20 Preliminary D Technology Architecture Requirements Management A Architecture Vision B Business Architecture C Information Systems Architectures H Architecture Change Management G Implementation Governance F Migration Planning E Opportunities and Solutions TOGAF ADM ArchiMate Core Business Architecture Application Architecture Data Architecture Technology Architecture
  21. 21. EA as Knowledge Hub in Business Transformation •Enterprise architecture provides different views on the enterprise’s make-up for the various disciplines involved •It aggregates and integrates information from these disciplines in structured models •Which are ideal for performing various analyses –costs, benefits, risks, complexity, impact of change, dependencies, planning, … •In order to manage enterprise-wide interdependencies •To realize business transformations in a coherent manner 21
  22. 22. EA Relates and Supports Other Disciplines Enterprise Portfolio Management Strategy Capability-Based Planning Process, Rule & Data Management Governance, Risk & Compliance Design, Development & Delivery Program & Project Management Enterprise Architecture Service Management 22
  23. 23. Enterprise Architecture Role in Business Transformation Planning and Oversight Enterprise Portfolio Management Capability-Based Planning Enterprise Architecture Initiative evaluation and comparison Business cases and budgets Business capabilities required Recommended investments with benefits and costs Program & Project Management Implementation roadmaps and oversight Funded initiatives Value delivered Resources and budget used Realized architecture Results realized 23
  24. 24. THE USE OF MODELS 24
  25. 25. Implementation Guidance •As you build your own organization’s capabilities, create formal representations –unambiguous meaning that can reconciled with EA repositories •Use models to describe enterprise architectures –e.g. ArchiMate, BPMN, ERD, UML, The Decision Model, etc. •Models can be checked, visualized, analyzed, managed, integrated, transformed, interpreted, and sometimes even executed 25
  26. 26. Model-Based Architecture Repository •Ensure coherence between strategy and operations •Keep track of large and complicated architectures •Support timely and accurate decisions with clear views, analyses and dashboards •Facilitate collaboration in teams and across disciplines •Speed up the change process •Support a maturing practice, from small team to large organization 26
  27. 27. Model-Based Architecture: Business Layer 28
  28. 28. Model-Based Architecture: Application Layer 29
  29. 29. Use ArchiMate to Connect Other Models 30
  30. 30. Relating Goals & Capabilities to Target Architecture & Programs 31 Business Goals Business Capabilities Architecture Plateaus Change Programs
  31. 31. CASE STUDY: IMPROVING PROJECT MANAGEMENT TOOLING IN RESPONSE TO THE CHANGING ROLE OF THE CONSUMER 32
  32. 32. US Healthcare Payer Challenges 33 Drivers from Gartner Group “Business Drivers of Technology Decisions for Healthcare Payers, 2014”, December 2013
  33. 33. Typical Disconnected Project Management Toolset Hampers Decision-Making and Execution 34
  34. 34. Architected Project Management Toolset Enables Better Decisions and More Efficient Execution 35
  35. 35. CAPABILITY-BASED PLANNING 36
  36. 36. Business Capabilities •A business capability is something an enterprise does or can do, given the various resources it possesses •Which capabilities do you need for your strategy, business model and operating model? •What are the required capability levels? •What are the necessary resources? •How do plan the evolution of your enterprise architecture? •Input for investment decisions: portfolio management •Helps you plan and manage programs & projects 37
  37. 37. Business Capability Map 38
  38. 38. Capability Based-Planning: Capability Increments in Different Dimensions Analysis and planning of capabilities using an ArchiMate model and various metrics 39
  39. 39. Architecture Analysis: from As-Is to To-Be 40
  40. 40. ENTERPRISE PORTFOLIO MANAGEMENT 41
  41. 41. What is Enterprise Portfolio Management (EPM)? •Enterprise portfolio management manages the enterprise landscape (projects, capabilities, assets, services, etc.) in portfolios –Group things of the same type based on some criteria, –manage this set as a whole, –providing an enterprise-wide overview, –that supports analyses and comparisons, –resulting in consistent and informed decision-making at all levels •Manage on business value, not only on costs 42 Retirement Back office Front office Critical
  42. 42. How Are Portfolios and Architecture Related? •Based on the architecture, portfolios are defined and managed in a consistent way: –Capability portfolio –Product portfolio –Application portfolio –Infrastructure portfolio –Program and project portfolio –… •Add attributes and metrics to your architecture models to support analyses and dashboards Project portfolio Asset portfolio 43 Projects Roadmaps
  43. 43. Adding Data to the Architecture 44 Architecture Repository Asset inventories Contract information Project planning Presentations Checklists Architectures
  44. 44. Portfolio Dashboard: Actionable Information 45
  45. 45. Application Landscape with Life Cycle Advice 46
  46. 46. REALIZATION 47
  47. 47. Towards Agile Realization 48 Strategy Team Agile development Continuous integration Daily work Iteration 4 3 2 1 Program Agile Release Train Architecture runway DevOps Architectural features Iteration Portfolio Architecture epics Program portfolios Business epics Iteration
  48. 48. Sustainability with an Architectural Runway 50 Balanced Investment
  49. 49. How Do We Make That Work Within Our Teams? 51 High Level Business Case Business Objectives Functional Requirements and Use Case Development Owned by Product Owner and overall Business with review by Architects and Leads Solution Architecture and Non-Functional Requirements (Architect) Feature/Epic and User Story Development (PO) Owned by Architect and Product Owner with support from Leads Data Modeling and Detailed Requirements Build and Test User Acceptance Owned by Scrum Team (including PO) with support from Architect Informed by Enterprise Architecture Informed by Prioritized Business Capabilities
  50. 50. CONCLUSIONS AND DISCUSSION 52
  51. 51. Consistent and Integrated Modeling… •Is a kind of knowledge management •Supports enterprise-wide analyses, e.g. traceability, cost calculations, dependencies, risks •Fosters coherent decision-making •Links vision to realization, by relating various disciplines in your business transformation value chain 53
  52. 52. Business Transformation Management is a Composite Capability That Benefits from An Architectural Approach Strategy Process, Rule & Data Mgmt Design, Development & Delivery Service Mgmt Program & Project Mgmt Enterprise Portfolio Mgmt Capability- Based Planning Business Transformation Management Enterprise Architecture 54
  53. 53. Call to Action •Business architects & analysts: –Collaborate with enterprise architects to assemble your organizations’ business transformation capabilities into a coherent value network •Enterprise architects: –Use the ArchiMate Business Layer and Motivation extension to integrate the work of business analysts into your business transformation value stream network •Implement tools step-by-step: Think big, start small –For a simple start, use the Archi open-source tool –Easy to upgrade to more mature tools like BiZZdesign Architect 55
  54. 54. Think like an architect when building your business transformation value network! 56
  55. 55. Questions? Marc M. Lankhorst Service line manager Enterprise Architecture m.lankhorst@bizzdesign.com +31 644 092 359 Webinars, blogs, e-books, customer stories, training portfolio, software and more on www.bizzdesign.com Iver Band Enterprise Architect iver.band@cambiahealth.com Related presentations and articles available at slideshare.net/iverband 57
  56. 56. ©2014 BiZZdesign. All rights reserved. BiZZdesign and BiZZdesign logos are registered trademarks of BiZZdesign Company.

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