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

1. From Capability-Based Planning to Competitive Advantage Assembling Your Business Transformation Value Network
Marc Lankhorst, BiZZdesign
Iver Band, Cambia Health Solutions

2. INTRODUCTIONS
2

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. 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. BiZZdesign Worldwide: Offices and Resellers
BiZZdesign office
BiZZdesign reseller
5

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
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
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
Wholly Owned Companies
Direct Investment Companies
Health Insurance
Direct Investment
Companies
Health Insurance
Wholly Owned
Companies
Cambia Health Solutions

10. Agenda
•Introduction
•Enterprise architecture
•The use of models
•Capability-based planning
•Enterprise portfolio management
•Agile realization
•Conclusions
10

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. ENTERPRISE ARCHITECTURE
12

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. What Kinds of Enterprise Architectures Are There?
14
Enterprise architectures can be partitioned by enterprise segment or capability

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. 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. 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. TOGAF® - The Open Group Architecture Framework
18

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. 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. 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. 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. 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. THE USE OF MODELS
24

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. 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. Model-Based Architecture: Business Layer
28

28. Model-Based Architecture: Application Layer
29

29. Use ArchiMate to Connect Other Models
30

30. Relating Goals & Capabilities to Target Architecture & Programs
31
Business Goals
Business Capabilities
Architecture Plateaus
Change Programs

31. CASE STUDY: IMPROVING PROJECT MANAGEMENT TOOLING IN RESPONSE TO THE CHANGING ROLE OF THE CONSUMER
32

32. US Healthcare Payer Challenges
33
Drivers from Gartner Group “Business Drivers of Technology Decisions for Healthcare Payers, 2014”, December 2013

33. Typical Disconnected Project Management Toolset Hampers Decision-Making and Execution
34

34. Architected Project Management Toolset Enables Better Decisions and More Efficient Execution
35

35. CAPABILITY-BASED PLANNING
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. Business Capability Map
38

38. Capability Based-Planning: Capability Increments in Different Dimensions
Analysis and planning of capabilities using an ArchiMate model and various metrics
39

39. Architecture Analysis: from As-Is to To-Be
40

40. ENTERPRISE PORTFOLIO MANAGEMENT
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. 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. Adding Data to the Architecture
44
Architecture Repository
Asset inventories
Contract information
Project planning
Presentations
Checklists
Architectures

44. Portfolio Dashboard: Actionable Information
45

45. Application Landscape with Life Cycle Advice
46

46. REALIZATION
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. Sustainability with an Architectural Runway
50
Balanced Investment

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. CONCLUSIONS AND DISCUSSION
52

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. 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. 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. Think like an architect when building your business transformation value network!
56

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. ©2014 BiZZdesign. All rights reserved.
BiZZdesign and BiZZdesign logos are registered trademarks of BiZZdesign Company.