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Business Architecture the Key to Enterprise Transformation

Business Architecture Presentation that was used as the keynote for the Open Group Conference in San Francisco on Feb 3rd 2014.

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Mike Walker | Chief Architect – Americas East Strategic Practices | Hewlett-Packard
http://www.MikeTheArchitect.com | http://www.TexasAEA.org |
2
We are only Beginning
Business Architecture
Journey

3
The Market is Finally Ready
for Business Architecture
Business Architecture

4
The Market is Finally Ready
for Business Architecture

67%

Business Architecture is
Transforming Enterprise
Architecture

EA Practices
Refocusing
EA Top Priorities are
Business Architecture
Aligning business and IT strategies (25%)
Delivering strategic business and IT value (39%)
Enabling major business transformation (16%)
5
Source: Gartner (2012): Gartner Hype Cycle 2012

80%
The Market is Finally Ready
for Business Architecture

There is no Shortage of
Opinions
6

Business Architecture is
Transforming Enterprise
Architecture
Ad

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Business Architecture the Key to Enterprise Transformation

  • 1. Open Group Conference Mike Walker | Chief Architect – Americas East Strategic Practices | Hewlett-Packard http://www.MikeTheArchitect.com | http://www.TexasAEA.org |
  • 2. 2
  • 3. We are only Beginning Business Architecture Journey 3
  • 4. The Market is Finally Ready for Business Architecture Business Architecture 4
  • 5. The Market is Finally Ready for Business Architecture 67% Business Architecture is Transforming Enterprise Architecture EA Practices Refocusing EA Top Priorities are Business Architecture Aligning business and IT strategies (25%) Delivering strategic business and IT value (39%) Enabling major business transformation (16%) 5 Source: Gartner (2012): Gartner Hype Cycle 2012 80%
  • 6. The Market is Finally Ready for Business Architecture There is no Shortage of Opinions 6 Business Architecture is Transforming Enterprise Architecture
  • 7. Standards Body Analyst Vendors Leading Practices Analysis of industry Predictions Short and Long Term 7 Source: Mike The Architect: So Many Different Views, So Much Business Architecture Confusion (2014) - http://bit.ly/1cwtMA6 Consulting Business Architecture Practices that can be offered as Services Mash-up of Capabilities for Problem Areas Practices and Tooling Perspectives based on Automation Proven Practices Stable Practices
  • 8. A formal method and a set of descriptions that distill the business environment and Business the needs of a business into set of models Architecture representing business information, concepts, value and risk that are expressed through an architectural view of a business. 8 Source: Mike The Architect: Defining Business Architecture (2013) - http://bit.ly/1aVdAgJ
  • 10. Enterprise Architecture Connects Strategy to Execution Needs Defines Strategy Enterprise Architecture Execution Refines 10 Drive Validates Results
  • 12. #1 Distilled Proven Practices from Customers 12 #2 How HP Delivers Business Architecture
  • 15. Capacity to Understand & Harness Knowledge 15 Source: Mike The Architect: IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches (2011) - http://bit.ly/1n6k5gS
  • 16. Vast amount of EA Orgs Say Understanding the People and the Motivations will determine your BA Success 16 Source: Forrester. The State Of Business Architecture And Business Architects In 2013: http://www.forrester.com/The+State+Of+Business+Architecture+And+Business+Architects+In+2013/fulltext/-/E-RES82821
  • 17. Capacity to Understand & Harness Knowledge ”Land” Your Ideas Through Effective Communication 17
  • 18. 18
  • 19. Capacity to Understand & Harness Knowledge ”Land” Your Ideas Through Effective Communication How you engage will determine your success 19
  • 21. Example of EA Services Capability Advancement Services Assurance Services Provide architecture decisioning, trade-off analysis or risk management in an ad-hoc short term engagement. Creation of a business driven & standards based architecture . Ensure that investments are optimal delivered Foundational Services Simplify the portfolio to reduce maintenance costs and improve system reliability. Concept Analysis Architecture Consulting Enterprise Portfolio Management Competency Advancement Architecture Design Organizational Optimization Architecture Review EA Automation Domain Based Architecture … Vendor Analysis & Review • • • Ideation and Trend Identification Architecture Trade-Off Analysis Service Offerings Outcomes 21 Translate business strategies into IT investment and migration plans. Architecture Engagement Services … Project Architect Staff Aug … Increased resource scale Augmentation of existing team Architecture compliance • • Corporate strategy rationalized into a architecture and program roadmap Identification of technology investments needed • • • Develop solution arch. Technology reviews Rationalized interlocks • • • Evaluated technologies Managed architectures & life cycles Compliance guidelines and processes
  • 23. Embrace Your Fellow Architects in the “Pit” Breadth Enterprise Architects Domain Architects Depth Business Architects Information Architects Security Architects Application Architects Etc. Solution Architects 23 More Information: Mike The Architect 2009: IT Architecture Is Not Enterprise Architecture
  • 24. Embrace Your Fellow Architects in the “Pit” Your Customers Don’t Care About Your Artifacts 24
  • 25. Embrace Your Fellow Architects in the “Pit” Your Customers Don’t Care About Your Artifacts Don’t Let Your Tool Drive You, You Drive Your Tools… 25
  • 26. “ If all you have is a hammer, everything looks like a nail “ Abraham Maslow, The Psychology of Science 26 26
  • 27. How HP Delivers Results w/ Business Architecture 27 #1
  • 28. Solve the Real Problems w/ the Golden Circle What The things delivered How Way business is conducted Why Purpose 28 Sources: Mike The Architect (2011): IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches - http://bit.ly/1erjepW Start with Why (2010): The Golden Circle - http://bit.ly/1cL0ilO
  • 30. Business Architecture is a means to an end NOT the end 30
  • 32. Business Architecture Framework Business Architecture Information Architecture Application Architecture Business Rationalization Framework Business Architecture Method Content Framework Competency Framework 32 Technology Architecture
  • 33. Business Architecture Method Business Needs Analysis Establish Approach 3 Value Analysis Deep analysis of business problem that needs to be solved into a set of models. 1.1 Establish Context 2.1 Decompose Business Needs 3.1 Value Identification and Profiling 1.2 Business Value Proposition 2.2 Analyze Business Landscape (Market Analysis) 3.2 Business Capability Profiling 1.3 Identify artifacts & deliverables 2.3 Operating Model Analysis 3.3 Risk Profile 1.4 Identify reference resources 2.4 Business Experience Modeling 3.4 Business Opportunity Valuation • • Service Offering Understand the nature of the business need and establish a fit-forpurpose approach. • • • • 33 Statement of architecture work Assessed stakeholder requirements Defined BA approach (method, reference models, and supporting artifacts) • Well understood needs of the business Full context of the business landscape Rationalize business needs profiling and establish the baseline business architecture. Fully valuated opportunity Current and Future State Business Architecture Information Architecture 2 1
  • 34. Why Business Architecture Content Framework Motivation Model When Business Capability Model 34 Benefits Dependency Network Value Chain Functional & Organizational Capability Map Portfolio Planning Roadmaps Business Model Canvas Who How What Strategy Maps Business Transformation Plan
  • 36. Not all Business Architecture Starts with Strategy 2 1 Establish Approach Business Needs Analysis 3 Strategic Initiative Based Tactical or Immediate Need 36 Value Analysis
  • 37. P&G Business Architecture anticipate ● transform ● scale Mark Dorfmueller - dorfmueller.ma@pg.com Feb 2014
  • 38. GBS is one of the four pillars of P&G global business units market development organizations global business services corporate functions
  • 39. What we stand for: Transforming the Way Business is Done
  • 40. EA Services Relevant, Practical, Consumable Benchmarking Identify Best in Class performers, cost comparisons, key metrics Business Capability Transformation Engagements Identify business opportunities, transformations, innovation needs, solutions Enterprise Architecture Management EA Master Plans Architecture Governance Conceptual, logical, and physical architectures reviews Solution Architecture Cross domain solution architectures
  • 41. START BY BUILDING YOUR FRAMEWORK
  • 42. Business Capability Framework Example 1 2 Business Capabilities Service Architecture Business Planning Category Planning Strategic Business Planning Steering the Business Strategic Revenue Management Operational Planning Event Visibility Global Demand Foundation Supply Planning Process Metrics Demand Planning Reporting Customer Planning VMI Demand Planning 3 Intelligent Daily Forecast Supply Network Design 4 Process Models Process Measures Forecast Accuracy Productivity
  • 44. Idea to Consumer Value Stream Portfolio Initiative Mgmt & Planning Strategy & Innovation Design Create a faster, simpler and more agile P&G. Seamless, real time information from the concept to shopper purchase and back Go to Market
  • 46. Our Approach Transform and Standardize systems, processes + information Automate to eliminate nonvalue added touches To create an environment that is Real-Time. Accelerate decision making via real time information
  • 47. Capturing Business Value Digital Capability + Work Process Transformatio n = Business Outcome Value
  • 49. Resources • • • • • • • • • Business Architecture Defined (2013) - http://bit.ly/1aVdAgJ Business Architecture Ready for Prime Time (2014) - http://bit.ly/LUQESI So Many Different Views, So Much Business Architecture Confusion (2014) http://bit.ly/1cwtMA6 IT Architecture Is Not Enterprise Architecture (2009)– http://bit.ly/1gEsevh IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches (2011) http://bit.ly/1erjepW Start with Why (2010): The Golden Circle - http://bit.ly/1cL0ilO Australian And New Zealand Architects Surveyed On Business Architecture (2013) http://bit.ly/Mcy8Gv A&G Magazine: Business Architecture Best Practices (2013) – Part 1 http://bit.ly/1fZ91j3 Part 2 http://bit.ly/1aVfKwK CIO’s Must Make EA’s a First Class Citizen (2011) - http://bit.ly/1g7vYmq More Information: http://www.MikeTheArchitect.com 49