Agility matrix - Expanded!

The Agility
Matrix,
Expanded!Clayton CostaClayton Costa
@cpcosta@cpcosta
www.linkedin.com/in/claytoncosta/www.linkedin.com/in/claytoncosta/

What’s the point?
 Enterprise IT worst enemy is
complexity! And there is no silver
bullet for it…
 One side-effect of IT complexity is that as it grows, it demands
so much attention, that one can easily lose focus on the core
business
The Agility Matrix is a simple, yet
powerful, reference framework to
keep your enterprise IT portfolio of
solutions aligned to the business
needs…

Background
This initiative started as a way to justify the
investment in BPMS solutions
On a second though, it evolved to a more
comprehensive framework, for any agile process
automation solution
Now, it is time to update it and expand the concept
to Decision Support Systems (DSS) – including big
data initiatives and “Agile BI”

From the basis
My initial axiom is (very) simple:My initial axiom is (very) simple:
Every single companyEvery single company
is made of businessis made of business
processes.processes.

Add to the context
that…
Every company has:Every company has:
Business process automation solutions in place: ERP,Business process automation solutions in place: ERP,
CRM, email, spreadsheets…CRM, email, spreadsheets…
Process Optimization Initiatives: Six-Sigma, Kaizen,Process Optimization Initiatives: Six-Sigma, Kaizen,
LeanLean
Regulatory compliance (Regulatory compliance (process-awareprocess-aware by nature): SOX,by nature): SOX,
ISO9000 etc.ISO9000 etc.

Still, more than
ever, AGILITY
matters!
So, let’s understand how businessSo, let’s understand how business
process automation decisionsprocess automation decisions
constraint – or enable –constraint – or enable – agilityagility

But, first, what’s agility?
““Business agility is theBusiness agility is the
ability of a business to adaptability of a business to adapt
rapidly and cost efficientlyrapidly and cost efficiently
in response to changes in thein response to changes in the
business environment.”business environment.”
Wikipedia

If that’s the case…
Let’s understand
how agility matters
to my business
processes, using a 2
by 2 matrix,
comparing the
volume and speed of
the changes

The Agility
Matrix
for Process
AutomationLevel of uniqueness of a
business process, inside an
industry or across the board
SpecificSpecificStandardStandard
StableStable
VolatileVolatile
Life Cycle of
the
business
process, or
“how often
does it

Make-Or-Buy decision
StableStable
VolatileVolatile
TaxTax
ManagementManagement
Accounting &Accounting &
Financials Mgt.Financials Mgt.
StrategyStrategy
DevelopmentDevelopment
Knowledge & ITKnowledge & IT
Mgt.Mgt.
Sales &Sales &
MarketingMarketing
Mgt.Mgt.
Manufacturing &Manufacturing &
ServicesServices
DeliveryDelivery
CustomerCustomer
Services Mgt.Services Mgt.
Examples of processes from the APQC Reference Model
HR DevelopmentHR Development
Services & ProductsServices & Products
EnvironmentEnvironment
Impact Mgt.Impact Mgt.
Hmm… Standard and neverHmm… Standard and never
changes? Someone mustchanges? Someone must
have a solution, already! Ihave a solution, already! I
want a Packaged App (ERP,want a Packaged App (ERP,
CRM etc)!!!CRM etc)!!!

StableStable
VolatileVolatile
TaxTax
FinancialsFinancials
Mgt.Mgt.
StrategyStrategy
Mgt.Mgt.
Sales &Sales &
MarketingMarketing
Mgt.Mgt.
ManufacturingManufacturing
& Services& Services
DeliveryDelivery
CustomerCustomer
ServicesServices
Mgt.Mgt.
HRHR
Services &Services &
ProductsProducts
Hmm… Always changing,Hmm… Always changing,
but for all companies at thebut for all companies at the
same time? There has to besame time? There has to be
a subscription-baseda subscription-based
packaged application forpackaged application for
this…this…

StableStable
VolatileVolatile
TaxTax
Mgt.Mgt.
StrategyStrategy
Mgt.Mgt.
Sales &Sales &
MarketingMarketing
Mgt.Mgt.
DeliveryDelivery
CustomerCustomer
ServicesServices
Mgt.Mgt.
HRHR
ProductsProducts
Ops… ItOps… It’s a process that’s a process that
only runs on my company?only runs on my company?
Let’s do some coding, onceLet’s do some coding, once
it’s not going to change anyit’s not going to change any
time soon…time soon…

StableStable
VolatileVolatile
TaxTax
Mgt.Mgt.
StrategyStrategy
Mgt.Mgt.
Sales &Sales &
MarketingMarketing
Mgt.Mgt.
DeliveryDelivery
CustomerCustomer
ServicesServices
Mgt.Mgt.
HRHR
ProductsProducts
Now what? These are everNow what? These are ever
changing processes, but stillchanging processes, but still
very important. To make itvery important. To make it
worse, we have partialworse, we have partial
automation with packagedautomation with packaged
apps. This is the place toapps. This is the place to
use Agile Processuse Agile Process
Automation solutions!Automation solutions!

Agile Process Automation
Solutions
Platform-based solutions, that
provide faster time-to-solution and
smaller TCO.
Typical examples are BPMS, CEP,
4GL, RAD etc.

Agile Process
Automation, TODAY!
 Integrated with my
work stream
 Office automation apps
 Email & calendar
 Social networking
 Project Management
tools
 Business Applications
 User-Friendly
 Engaging user
experience
 Gamification
 Mobile
 Always-on/available
 Context-aware
(sensors)

Moving ahead…
 My initial axiom is (too) simple:
Every single company is made of businessEvery single company is made of business
processes.processes.
 While true, a company is more than processes:
Humans make difference taking decisionsHumans make difference taking decisions
and adding creativity to the tasks,and adding creativity to the tasks,
continuously improving the processes.continuously improving the processes.

So, companies are a sum
of
People Processes Informati

Common sense? But…
Consumerization of IT &
Mobility made people smarter than
ever, always connected and used
with high-quality IT services – for
personal and professional needs.

Processes are
spread among
different classes
of agility, with
ideal process
automation tools for
each class. Agile
processes gain
momentum as they
have a bigger
potential to generate

InformatiInformati
on (data)on (data)
is notis not
what itwhat it
used toused to

Information used to be
a scarce material
“Information Systems”
would collect data about
processes, as they run.
Other data would come
from different sources, like
surveys and data providers.
And storage space used to be (very)
expensive!

Once processed* it was
‘ready to consume’
 Processed means:
modeled,
normalized, mined,
extracted, explored,
aggregated, stored,
queried, analyzed,

Nowadays information is
abundant
M2M
Logfiles
And most of it is really

Digital data…
 Is nothing but our footsteps along the digitized processes,Is nothing but our footsteps along the digitized processes,
the impressions we left behind after performing tasks onthe impressions we left behind after performing tasks on
computerscomputers
 As we digitize more processes, more data becomes availableAs we digitize more processes, more data becomes available
 Social media interactions: conversations, preferences, “likes”, rankingsSocial media interactions: conversations, preferences, “likes”, rankings
 Web navigation: almost literally “virtual footsteps”Web navigation: almost literally “virtual footsteps”
 Internet-of-Things (IoT) telemetry: data and events from home, cars, streets,Internet-of-Things (IoT) telemetry: data and events from home, cars, streets,
parks…parks…
 Mobile devices telemetry: geo-location, pressure, temperature, radio emissionsMobile devices telemetry: geo-location, pressure, temperature, radio emissions
 Wearables telemetry: heart ratio, activity, weight, mood…Wearables telemetry: heart ratio, activity, weight, mood…
 Is nothing but our footsteps along the digitized processes,Is nothing but our footsteps along the digitized processes,
the impressions we left behind after performing tasks onthe impressions we left behind after performing tasks on
computerscomputers
 As we digitize more processes, more data becomes availableAs we digitize more processes, more data becomes available
 Social media interactions: conversations, preferences, “likes”, rankingsSocial media interactions: conversations, preferences, “likes”, rankings
 Web navigation: almost literally “virtual footsteps”Web navigation: almost literally “virtual footsteps”
 Internet-of-Things (IoT) telemetry: data and events from home, cars, streets,Internet-of-Things (IoT) telemetry: data and events from home, cars, streets,
parks…parks…
 Mobile devices telemetry: geo-location, pressure, temperature, radio emissionsMobile devices telemetry: geo-location, pressure, temperature, radio emissions
 Wearables telemetry: heart ratio, activity, weight, mood…Wearables telemetry: heart ratio, activity, weight, mood…

So?A new axiom:A new axiom:
 Valuable information is the oneValuable information is the one
that is actionable – drives athat is actionable – drives a
decision!decision!
It can be:It can be:
 Structured or UnstructuredStructured or Unstructured
 Perennial or DisposablePerennial or Disposable

A New World…
• Mobile &Mobile &
EquippedEquipped
[BYOD][BYOD]
• ShortShort
time/attentiontime/attention
spanspan
• InformationInformation
overflowoverflow
• Standard,Standard,
agile & ad-hocagile & ad-hoc
• People &People &
machinemachine
actionableactionable
• DistributedDistributed
• StructuredStructured
&&
unstructureunstructure
dd
• Perennial &Perennial &
disposabledisposable
• AbundantAbundant

Requires new reference
frameworks
Process AutomationDecision Support

Level of uniqueness of a
decision support asset
StableStable
VolatileVolatile
Life Cycle
of a
decision
support
asset
The Agility
Matrix
For Decision
Support
Expands on the same idea
to include Decision Support
assets and requirements.
e.g. reports, visualizations,
scorecards and dashboards.
Expands on the same idea
to include Decision Support
assets and requirements.
e.g. reports, visualizations,
scorecards and dashboards.

StableStable
VolatileVolatile
RevenueRevenue
Reporting (e.g.Reporting (e.g.
BooksBooks
Closing)Closing)
Greenhouse GasGreenhouse Gas
ReportingReporting
ITSM ReportingITSM Reporting
RiskRisk
AnalysisAnalysis
OperationsOperations
PerformancePerformance
MeasurementMeasurement
QualityQuality
ControlControl
Portfolio &Portfolio &
ResourcesResources
OptimizationOptimization
CorporateCorporate
GovernanceGovernance
CustomerCustomer
ChurnChurn
AnalysisAnalysis
Example

If it is a standard asset,If it is a standard asset,
there has to be athere has to be a ‘ready-to-‘ready-to-
buy’ solution somewhere.buy’ solution somewhere.
Typical solutions are ERPTypical solutions are ERP
reporting capabilities,reporting capabilities,
““ready-to-runready-to-run”” data martsdata marts
and the traditional BI stack.and the traditional BI stack.

If it is a standard asset, but itIf it is a standard asset, but it
changes very often, I canchanges very often, I can
expect higher maintenanceexpect higher maintenance
costs. Many of the “new BI”costs. Many of the “new BI”
vendors play on this field,vendors play on this field,
offering cloud-basedoffering cloud-based
solutions and smaller TCO.solutions and smaller TCO.

If one asset is very specificIf one asset is very specific
to the way the companyto the way the company
does business, then it has todoes business, then it has to
be “tailor-made”. Typicallybe “tailor-made”. Typically
there is a lot of manual datathere is a lot of manual data
collection and “massaging”.collection and “massaging”.

Finally, there are thoseFinally, there are those
assets that are very specific,assets that are very specific,
but change very oftenbut change very often
according to the marketaccording to the market
conditions. Those assetsconditions. Those assets
need an Agile Decisionneed an Agile Decision
Support technology.Support technology.

Key takeaways
 No silver bullet for Enterprise IT complexity, so…
 BUY what’s readily available and solves your problems, but
DO NOT CUSTOMIZE
 BUILD what is UNIQUE to your company, but make it AGILE,
from a BUSINESS stand point
 Focus on quick time-to-solution, low TCO and easy maintenance
 Keep a close eye on process and data integration
 Leverage the cloud where it helps to minimize the complexity
 Prioritize the user experience
 Make IT simple! ;-)
Use this Reference Framework to map your unique

And remember…
While there is no silver bullet for the monster ofWhile there is no silver bullet for the monster of
complexity …complexity …
There is no sin in having funThere is no sin in having fun
trying to hunt it down ;-)trying to hunt it down ;-)

Agility matrix - Expanded!

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