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Object Oriented Business Capability Map - IIBA 2022 - Draft.pptx
- 1. IIBA Australia Melbourne Branch Online Event May 2022 Mohammad Mirkarimi David Grindlay Develop an Object–oriented Capability Map A Hands-on Workshop!
- 2. 01 Introduction 02 03 04 05 06 Agenda What is Business Capability? Why is it important? Why Business Analysis Practitioners use them? Use case! How Object- oriented (OO) works Develop one together! Share lessons & findings 5 min 10 min 5 min 20 min 60 min 20 min Scope > Study > Practice > Refine We’ll have ‘questions time’ at the end of each stage
- 3. 1. Introduction Purpose • Introduce presenters • Introduce Business Architecture Value • Understand the background of presenters, hence the context of presentation • Understand Business Architecture domains and how it fits into the broader landscape of organisation
- 4. David Grindlay Education & Career • Bachelor of Commerce (Hons) - Information Systems • Business Analyst • Business Architect Exprnc. & Indst. • Core System Replacements, Large Scale Transformations, Product Design, Business Blueprint Design • Manufacturing, Insurance (Life, General, Medical) full value chain, Retail Interests • Family, Outdoors (Running, Hiking, Mountain Biking, Walking the Dog), Scouting Principal Business Architect @
- 5. Mohammad Mirkarimi Education & Career • Bachelor of Engineering (Hons) – Electronics • R&D Engineer – Transmitter Control Boards • Master of Engineering Management • Master of Business & Commerce – Finance • Business Analyst • Business Architect Exprnc. & Indst. • Transformation, M&A, Process Improvement, Remediation, Regulatory • Banking, Wealth, Telecom, Government Interests • Family, Music, Nature • Ontology & Innovation Senior Business Architect @
- 6. Customer Journey Business Strategy Value Stream Information Model Products & Services Business Capability Solution Requirements Business Process Modelling Transition Requirements Technology Landscape Pain Points WHY Context Stakeholder Value Need HOW Solution WHAT Change Strategy Horizon Initiative Horizon Delivery Horizon Why Business Architecture • What a BA needs to ask for when starting on a new initiative? • What is the risk and cost of not having those information upfront? • Business Analysis Core Concept Model (BACCM) • Agile Analysis Three Horizons
- 7. 2. What is Business Capability Purpose • Introduce the concept of business capabilities • Discuss the importance of business capabilities Value • Common understanding and language for the purpose of this presentation • Understand why we’re deep diving, spending 2 hours into business capabilities
- 8. Business Capability There are different narrations; though mostly agreed on: • Ability & ‘What’ • Have a Purpose • Use Resources • Deliver Something Reference: https://digitalroadmap.management/
- 10. Why are they important? Describes what an organisation does in a consistent way Consistency Pictures the organisation ‘at rest’. Meaning, it’s not concerned about how the job is getting done! Agnostic to ‘HOW’ Leverages resources such as people, process, information and technology Resource Constraints Shows the trails and trends without the operational noise Bird-eye View Shows the business’s strengths and weaknesses in one view Big Picture at a Glance Aggregation of key business information (e.g. maturity, criticality) on individual capabilities and their associations Stakeholder Communication
- 11. What makes a good capability map Mutually Exclusive & Collectively Exhaustive (MECE) Capability 1 Capability 2 Capability 3 Exhaustive Capability 1 Capability 2 Not Exhaustive Capability A Capability B Not Exclusive Capability A Capability B Exclusive
- 12. How to approach developing a capability map How much is enough? MECE Use Iterate Refine Who is involved? People Experts with domain knowledge Users of the end results: Analysts, Architects, Designers Consumers of the end results: Strategists, Sponsors, Project Teams What is the scope? Breadth & Depth The whole ocean One-inch deep T-shape (Mariana trench!)
- 13. 3. Biz Analysis Practitioner Use Case Purpose • Introduce potential use cases for Business Analysts Value • Understand how the capability map can be leveraged when the focus is functional or on a project or product
- 14. Business Capability Anchor Model Define the Scope of a particular tactic/initiative Understand the Strategic Intent driving a particular project Provides a framework to separate concerns Provides an anchor point that relates both to Business and Technical stakeholders Supports Requirement Prioritisation by enabling traceability back to strategic intent Provides a bird's eye view to identify gaps or unchartered territory Identifies impacted business units leveraging the same business capabilities Business Capability Model In Scope – Direct Impacted In Scope – Peripheral Impact Out of Scope Epic 1 Epic 2 Technology Epic 1 Epic 2 Process Epic 1 People Strategy Goal Objective Tactic Business Requirements Requires Capabilities Business Capability Epics (Buckets of Scope) User Stories (Scoped Items) Uplifted By Defined By Stakeholder Requirements What features are required from the target solution to support the business. Implemented by Functional Non- Functional Solution Requirements Story 3-1 Story 3-2 Story 3-3 Epic 2 Training Courses Data Migration Comms Message Tech Spec • Requirements Classification Schema
- 15. 4. How Object-oriented works! Purpose • Introduce the concept of Object-oriented Business Capability Value • A logical approach to ‘breaking the back’ of defining an organisations business capabilities
- 16. Object-oriented Business Capability Creation Business Object Purpose Action-base Is significant to Of Takes upon Has Aligns to Business Capability
- 18. The Evolution Path Industry Information Reference Model Business Process Catalogue Business Glossary Object Oriented Business Capabilities Industry Process Catalogue Reference Model Industry Business Capability Reference Model Evolving Company Business Capability Model Provides Guidance for Provides Guidance for Used to construct Used to construct Used to construct Used to construct Used to accelerate Used to accelerate Provides Guidance for Reference Models Company Specific Business Capabilities Business Capabilities Our Desired Position
- 19. The Approach (Pulling it all together) Brainstorm Objects Identify business objects that are significant to the business. Think about people, places, things and concepts. Try to think about generic terms (e.g. raw material) as well as specific terms (e.g. coffee bean) Classify, Level & Group Objects Classify objects based on criticality to the business (e.g. does anything about the object impact what the business does?). Cluster the critical objects into common themes. Also keep a look out for synonyms!! Definitions are handy to set the boundaries. Determine Actions Think about what actions are taken upon each object and what are the possible states for each object! You might find some actions repeated across number of objects - that's fine! Build Business Capability Model Match the object and action to create the capability. Then group and level the capability map. Test MECE (e.g. Value Streams) Try thinking of capabilities in action, e.g. in the context of value streams. Test if there are any missing capabilities in the map. Ensure that there are no redundant capabilities, i.e. same capability but different language and different group.
- 21. Capability Map (MECE) Dollar Shop Example
- 22. Some Best Practices Business Capabilities do not overlap and should be collectively exhaustive for the defined boundary. Why: Overlapping Business Capabilities introduce ambiguity. Incomplete Business Capability Models introduce doubt and lose credibility. MECE Objects that are critical to the business influence what the level 1 business capabilities are. There should be between 10 – 20 level 1 business Capabilities. Why: ”Cluttering” the business capability model with less significant business objects significantly reduces the ability to consume the business capability model. Top Levels are Business Critical Avoid going too deep in the business capability model. Why: Lower than 4 levels greatly blurs the boundary between process and capability and introduces additional complexity. 1 to 3 Levels The business capability model should not change when other parts of the business are changing (e.g. Organisation Structure, Business Processes) Why: A stable business capability model serves as an anchor model that becomes a point of reference as it encapsulates consistently what the organisation currently does and what it needs to do in the future to realise strategic aspirations. Stable Pictures the organisation ‘at rest’. Meaning, it’s not concerned about how the job is getting done! Why: How an organisation performs something can change very frequently. What an organisation does is less susceptible to frequent change. Agnostic to ‘HOW’ Engage stakeholders and obtain and address feedback frequently. Why: The most perfectly defined business capability will not be used if it does not resonate with the stakeholders. Stakeholder Acceptance Business Capabilities must be aligned to the purpose of the organisation. Why: Business Capabilities exist to enable the business realises its purpose. Business Capabilities that are not aligned to the organisation’s purpose should be investigated as to why they exist. Purpose Driven Attributes of Good Business Capabilities are: Attributes of Good Business Capabilities Maps are: A business capability must be consistently interpreted by all stakeholders. Why: Business Capabilities that have “fluffy” definitions will result in more confusion than not having defined business capabilities at all. Unambiguous
- 23. 5. Develop One Together Purpose • Develop an object-oriented capability map from the scratch for an imaginary business Value • Gain hand-on experience to face the challenges and find solutions for them
- 24. Hands-on Workshop Organise Imagine Remember 60 Minutes Divide into groups of 5 people Choose a person as ‘presenter’ • Present capability map • What did you learn? • What challenges did you face? • What to improve? Imagine a Café business (local and non-franchised) Remember “How to approach developing a capability map”
- 25. Let’s Start! Brainstorm Objects Identify business objects that are significant to the business. Think about people, places, things and concepts. Try to think about generic terms (e.g. raw material) as well as specific terms (e.g. coffee bean) 10 minutes 1 Classify, Level & Group Objects Classify objects based on criticality to the business (e.g. does anything about the object impact what the business does?). Cluster the critical objects into common themes. Also keep a look out for synonyms!! Definitions are handy to set the boundaries. Determine Actions Think about what actions are taken upon each object and what are the possible states for each object! You might find some actions repeated across number of objects - that's fine! Build Business Capability Model Match the object and action to create the capability. Then group and level the capability map. Test MECE (e.g. Value Streams) Try thinking of capabilities in action, e.g. in the context of value streams. Test if there are any missing capabilities in the map. Ensure that there are no redundant capabilities, i.e. same capability but different language and different group. 10 minutes 2 10 minutes 3 20 minutes 4 10 minutes 5
- 26. 6. Share Learnings Purpose • Share what we have learnt from doing it Value • Gain collective knowledge
- 27. Open Mic! Each group’s presenter in 2 minutes: Present capability map What did you learn? What challenges did you face? What would you do differently to improve it next time you try this?
- 28. Our Gift: The Dilemma! Architecture is a combination of science and art! Don’t strive for perfect, rather to tell a story. This dilemma breaks the rule of OO approach (i.e. object + action). Art comes in identifying which of them are the same and can be replaced with a centralized capability, acknowledging the different contexts that the capability being applied (e.g. Value Streams).
- 29. Option A: Siloed View
- 30. Option B: Consolidated View
- 31. Thank you for your time. Mohammad Mirkarimi +61 401 393 121 mmirkarimi@caosifi.com www.linkedin.com/in/mmirkarimi David Grindlay +61 404 998 338 dgrindlay@Capsifi.com www.linkedin.com/in/davidgrindlay CAPSIFI.COM Simply Smarter Business
Editor's Notes
- Stage 1~3 are to set the context and define the purpose Then, in stage 4 to study the subject matter, i.e. Object-oriented Capability Then, in stage 5 we get our hands dirty and practice! Finally, refine for next time by sharing
- Click 1 As a Business Analyst, we often find ourselves in the delivery horizon expected to elicit, analyse and document solution requirements without being fully aware of what the organization is wanting to achieve. So, we could be one of the best Business Analysts for the job, but if we focus on the wrong changes, the project is not going to deliver the right results. Click 2 At varying levels of detail depending on the organization, there would be some definition of Why change is required and what course of action is required to achieve that changed state. As a Business Analyst, we should be aware that these artefacts should exist and that they will help us elicit, analyse and document better requirements from our stakeholders. If you don’t have some of this information, you are then able to articulate what are the risks or issues of not having the information. Click 3 The business capability can act as the bridge between the strategic landscape (Why and course of action) and Solution design (How the business is going to be able to operate in the future to achieve that desired state). In summary, if you join a project and the project is about a system replacement, but you don’t know what value streams, products, or priority pain points you are trying to address, it is likely that you are going to 1) have a difficult time managing stakeholder expectations and 2) not achieve the desired outcomes the business thought they were going to get.
- The key concept here is: 1) Business Capabilities describe what an organization does (i.e. think “elevator pitch for an organization” to deliver some form of value (it has a purpose). Describe to someone external to the organization what the organization does 2) What is required to enable those capabilities While the concept of business capability is generally standard in the market, the emphasis on enablers varies between organisations. However, at the heart of it, the key enablers are People, Process Information & Technology. Other enablers which could be considered underlying enablers (which could also in some cases be informed through context) are: Investment, Insights, Integration, Leadership, Governance, Location
- Here is an example of a subset of a business capability map. The business capability map by itself is meaningless. What brings it to life is when it is contextualised and when it provides context. For example this business capability map tells us a number of stories in the single view: 1) How the capability of Claim Management is made possible by more granular capabilities 2) What is the Maturity of the Technology that enables these business capabilities 3) Processes Operationalise these business capabilities 4) What applications or application functions are used by the processes to operationalise the business capabilities. Now that is a powerful picture to have when engaging with key stakeholders.
- Business Capability Provides a consistent way of describing what an organization does >> Ensures people interpret it in a consistent way Analyses the organisation ‘at rest’, meaning it’s not concerned about “how” the job is getting done. Hence, great candidate for designing and planning (analogy: gardening business has ‘Hedge Trimming’ regardless of the technology and skills, e.g. drones and piloting them) Introduce the recognition that in order for an org to achieve something it needs to leverage its resources, such as people, process, information and technology Business Capability Map: Bird-eye view Communication with all level of stakeholders Summary/aggregation of key business information (e.g. maturity, criticality, etc.) on individual capabilities and their relationships (PPIT)
- Examples: - Not Exclusive: Customer Refund & Credit Management – Customer Insights Management & Data Analytics - Not Exhaustive: Key points: If you think of the business capabilities representing the puzzle pieces all piecing together to build a complete picture (of the organization) then you don’t want to be missing any pieces and you don’t really want to have duplicate pieces as well. Missing pieces means you will not get the end state you desire Duplicate pieces means you will probably get the end state, but it’s going to take longer and cost more to get there. So, starting from top down, you want to try and avoid having missing or overlapping capabilities within the organsation as far as possible.
- Key Points: Click 1 Understand the scope – don’t try and boil the ocean. Know your boundary to work within. Click 2 Know your stakeholders (contributors and consumers) – recognize that you shouldn’t be developing a business capability in isolation – it will be a waste of time. Click 3 Review frequently and test that it is Mutually Exclusive and Collectively Exhaustive (for the selected boundary). It is iterative – you won’t get it 100% right first time Choose your battles – it will will never satisfy everyone’s ideas It must make sense by itself – if it needs a lot of explanation, then it probably needs more work and possibly some coaching of intended consumers as well. The business capability is not a silver bullet and won’t solve all your problems, but it will help you structure your thinking, think big picture first before getting bogged down in the detail.
- Key Points: As business analysts we often are challenged with decomposing business requirements and maintaining traceability to strategic intent. Business Capabilities enable us to support this traceability from Business requirements down to Solution requirements (click 1) Business Requirements are articulated as desired states of the business in the form of Goals and Objectives. These goals and objectives are realized through strategies and tactics. (click 2) Each Tactic relies on business capabilities, some of which are not at the desired level of maturity – this starts to inform the scope of the project as we begin to know which capabilities are potentially going to need to be uplifted. Stakeholder requirements define what the needs are of stakeholders in order to execute the tactic and in turn help the organization achieve it’s objectives and goals. These needs essentially define the desired state of business capabilities. (click 3) By aligning to a business capability model, we are able to get a birds eye view of all the parts of the organization that are impacted. This approach minimizes the risk of missing big ticket items when scoping a project. (Click 4) Business Capabilities are operationalized by People, Processes, Information and Technology. If more than one business unit use the same business capability, we are able to construct an accurate impact assessment of which business areas will be impacted by the change. (Click 5) One of the benefits of the business capability model is that it introduces a common language that is both understandable by business stakeholders and technical teams. (Click 6) Often, without some sort of structure, requirements can become quite intertwined and complex thereby introducing ambiguity. Aligning business requirements to business capabilities enables us to separate concerns ensuring requirements stay within their boundaries which helps keep them simpler and more precise. (Click 7) By being able to trace solution requirements all the way up to the business requirements, we are then put in a better position to negotiate and prioritise requirements as we’ll be able to assess what stakeholder and solutions requirements will in fact help move the organization closer to it’s desired state.
- So, now that we have explored what business capabilities are, why they are important, and how they can help us as business analysts, the question remains “what do we do if our company doesn’t have one”? Or they have one but nobody uses it? Well, lets answer the first question as that is the easy one! If the organisation doesn’t have one, well, lets create one (or at least a part of one that is relevant for the part of the business we are concerned with) If the organisation has one, but nobody is using it then it really is about trying to understand why they are not using it. Were business stakeholders involved? Does it represent what the business does? Does it resonate with the various stakeholders? Is it MECE? The good news is that we can use the Object Oriented Approach to help tackle both situations.
- Object can decompose to more granular objects
- Key Points: There is no quick way! Be resourceful: Leverage what’s available in the organization or out on the web Click 1 Our desired state is to have a business capability model that accurately represents what the business business does and should be unique to that business. However, not all organisations have these and need to develop one from scratch. Click 2 & click 3 A number of industries do have Business Capability Reference Models. These can be used to bootstrap the creation of your Evolving Company Business Capability Model (with caution – i.e. don’t copy them as they won’t mean anything to the business) Click 4 & click 5 IF you do have a catalogue of business concepts/business dictionary for your organization, then you could start developing a business capability model using the object oriented business capability model approach which we will cover in the next section. Click 6 You could leverage an industry reference model to help you test that your Object Oriented Business Capability Model is Mutually Exclusive and Collectively Exhaustive. Click 7 If you don’t have a Business Dictionary, you can look at leveraging an industry business concept register/glossary (with caution) Click 8 If you don’t have a Business Glossary and there is no industry reference model to leverage, you could leverage a business process catalogue to help identify the nouns that are prevalent in you organization that will make up the Business Concept Register that will then be the basis for the Object Oriented Business Capabilities. Click 9 If you don’t have a business process catalogue, then you could consider leveraging an industry process catalogue reference model (with caution). Conclusion: There are 3 key ways to create a business capability model From scratch – not following any method with plenty of trial and error Leveraging an Industry Reference Model – but recognizing that they are generic and are only intended to provide some guidance and not be used face value Leveraging existing information (business dictionary, business process catalogue, or even organization structure) that exists within the company to create a unique foundation of a business capability model for the business.
- Return the ownership of Business Information Model to the business Develop Business Vocabulary and Data Dictionary
- Key Point: Following on from Slide 18 – this is an approach that we have worked through to develop a business capability model from scratch for an industry we don’t know much about without using any reference models. However, if this was for a customer, then we would have looked at leveraging other information at least as a sense check to make sure we have coverage.
- Primary VS Secondary object - Is it something imposed to the business by environment or invoked by stakeholders? Like regulation or complaint - Is it essential and critical for the business to function?
- Key Points: Understand the scope – don’t try and boil the ocean. Know your boundary to work within. Know your stakeholders (contributors and consumers) – recognize that you shouldn’t be developing a business capability in isolation – it will be a waste of time. Review frequently and test that it is Mutually Exclusive and Collectively Exhaustive (for the selected boundary). It is iterative – you won’t get it 100% right first time Choose your battles – it will will never satisfy everyone’s ideas It must make sense by itself – if it needs a lot of explanation, then it probably needs more work and possibly some coaching of intended consumers as well. The business capability is not a silver bullet and won’t solve all your problems, but it will help you structure your thinking, think big picture first before getting bogged down in the detail.
- Key Point: Following on from Slide 18 – this is an approach that we have worked through to develop a business capability model from scratch for an industry we don’t know much about without using any reference models. However, if this was for a customer, then we would have looked at leveraging other information at least as a sense check to make sure we have coverage.