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C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 1
RE-POSITIONING THE VALUE
OF THE ARCHITECTURE
PRACTICE
PRESENTEDTOTHEOPENGROUPTUESDAY, 57H OCTOBER2014
PRESENTED BY:
Craig Martin
Chief Architect, Enterprise Architects
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 2
ABOUT E
zero HOURS A DAY
BACK OFFICE
VENDOR ALIGNMENT
MORE THAN 1600 PEOPLE
TRAINED IN ARCHITECTURE
PRACTICES (AND RISING)
12YEARS IN BUSINESS
GLOBAL OFFICES
1600
MORE THAN 10,000 DAYS OF
ARCHITECTURE SERVICES
DELIVERED LAST YEAR
10,000
oneCOMMON METHOD
20
four
sixOPERATING IN
6 CONTINENTS
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 3
OUR SERVICES
Servicing the
Strategy and Architecture
needs of
Global Organisations
STRATEGY CONSULTING
› Business Architecture
› Strategic Services & Operating Model Design:
» Business Services & Capabilities
» IT Services & Capabilities
› Segment Strategies and Roadmaps:
» Customer Experience & Digital
» Enterprise Information Management
» Big Data Analytics
» Applications
» Cloud & Infrastructure
» Security, Risk & Resilience
» Innovation Management
PRACTICE DEVELOPMENT
› Architecture Service Model Design
› Architecture Operating Model Design
› Service and Capability Readiness Assessment
› Professional Training and Certification
(Business Architecture, Information
Management, TOGAF®, CDMP®, ArchiMate®
and Design Thinking)
› Project Architecture Resources
› Architecture Talent Strategy and Professional
Development
› Architecture Back Office Services
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 4
OUR CLIENTS
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 5
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 6
* From Roger Martin (2009) The Design of Business
GOAL: Exploitation;
Reliability
Produce consistent,
predictable outcomes
GOAL: Exploration; Validity
Produce outcomes that
meet an objective
THE RESULTS OF DISRUPTION
A stronger focus on the exploration and intuitive aspects of business are producing a
strong drive for innovation within the business and in corresponding business models
Unresolved
Business
Challenges
Heuristics
Rules of
thumb
Robust, repeatable
and replicable
processes
A reliable system will
produce the same test
results every time
A valid system will
produce a result that is
shown, through the
passage of time, to be
correct
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 7
THE KNOWLEDGE
FUNNEL
Non-core but complex -
Outsource
Innovation, chaos &
unresolved mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value added
to products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation, design,
or decision process
Many business rules;
expertise involved
Some business rules
Procedure or simple
algorithm
Non -Core
Competencies
Core Differentiating
Competencies
Everyday, highly
repeatable and
automated
Make repeatable and
reliable to gain
efficiency
Core Competitive
Competencies
THE RESULTS OF DISRUPTION
THE SPEED THROUGH THE KNOWLEDGE FUNNEL IS ALSO INCREASING
Source: Adapted from “Business Process
Change” by Paul Harmon
GOAL: Reliably produce
consistent, predictable
outcomes
GOAL: Validity- Produce
outcomes
that meet desired
objectives
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 8
THE RESULTS OF DISRUPTION
THE COMMODITY SPACE IS GROWING, MAKING THE DIFFERENTIATION
SPACE MORE COMPETITIVE
Non-core but complex
- Outsource
Innovation, chaos &
unresolved mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value added to
products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation, design,
or decision process
Many business rules; expertise
involved
Some business rules
Procedure or simple algorithm
Non -Core
Competencies
Core Differentiating
Competencies
Everyday, highly
repeatable and
automated
Make repeatable and
reliable to gain
efficiency
Core Competitive
Competencies
Non-core but complex -
Outsource
Innovation, chaos
& unresolved
mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value added to
products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation, design,
or decision process
Many business rules; expertise
involved
Some business rules
Procedure or simple algorithm
Non -Core Competencies
Core Differentiating
Competencies
Everyday, highly repeatable and
automated
Make repeatable
and reliable to
gain efficiency
Core Competitive
Competencies
Opportunity or
Threat?
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 9
THIS
ACCELERATION
IS PUTTING
PRESSURE ON
CURRENT
BUSINESS
MODELS
Technology
commoditising from
below
Business roles taking on more
architecture accountabilities
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 10
Utility
(Foundation)
Innovate
Build
Advantages
Assemble
Prolong
Advantages
Mix
Reduce
Disadvantages
THE CREATIVE COMMONS GROWTH
Differentiation
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 11
THE GROWTH OF BUSINESS
UTILITY
Unique differentiators and offerings are becoming commonplace through new value
exchange models
The Telecommunications PCF
features processes for
infrastructure planning,
enterprise architecture
management, defining channel
strategy and service levels, new
service development and rollout,
supply chain management,
service activation, and customer
relationship management.
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 12
A GAP IS EMERGING BETWEEN THE UTILITY
AND THE MIX ASPECTS OF BUSINESS
Utility
(Foundation)
Innovate
Build
Advantages
Assemble
Prolong
Advantages
Mix
Reduce
Disadvantages
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 13
THE GAP BETWEEN THE C’S
37%
34%
29%
22%
Customer
Loyalty
Increasing
flexibility & speed
Reducing Costs
Increasing
Innovation
Percentage of CEOs reporting
COMMON DRIVERS FOR INCREASING BUSINESS FLEXIBILITY
1. Customer demand for quick turnaround and increased need
for customisation
2. Shorter decision cycles
3. Increased need for product innovation
4. Globalisation of corporate footprint
Where are the CIO challenges?
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 14
THE GAP BETWEEN THE C’S
Yawning gap between the CEO and the traditional CIO landscape
*Infotech executive research
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 15
…IF HISTORY IS
ANYTHING TO
GO BY…
Business architecture
holds the potential to
impact organisations’
progress on strategic
objectives.
Leverage business
architecture to
mitigation failure
points across the cycle
One-third of firms fail
to achieve expected
results from annual
strategic plans.
More than half of all
business projects fail.
Forty-six percent of
business failures stem
from misguided strategies.
*Corporate Executive Board
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 16
BUSINESS WANTS TO MIX BETTER AND FASTER, AND IF
DONE EFFECTIVELY, THE RESULTS SPEAK FOR THEMSELVES
Companies with a High Level of Cohesion affect EBIT Directly
4%
8%
12%
16%
20%
24%
28%
32%
0 20 40 60 80 100 120
EBITmargin,2003-2007
Capabilities coherence score
Coca-Cola
Wrigley
PepsiCo
Kimberly-Clark
Sara Lee
ConAgra Merck
Unilever
H.J. Heinz
Kraft
General Mills
Clorox
Campbell Soup Company
P&G
*Adapted from “The Coherence Premium” –
Harvard Business Review, June 2010
A coherent organization is one that is thought of and executed
as a whole
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 17
Improve project
performance
Improve enterprise wide
investment performance
Improve Business Performance
Improve Market Performance
A
B
VALUE
MANDATE
C
E
Improve Product and & Service
Performance
D
IMPROVING ARCHITECTURE VALUE
By EA is often stuck with an old mandate with diminishing utility value
*Adapted from Ruth Malan, Dana Bredemeyer
EA = IT Architecture
EA = Enterprise-Wide
IT Architecture (EWITA)
Improve IT performance
EA = Business Architecture
(BA) + EWITA
Improve Business Performance
EA = Strategic Enabler
+ BA + EWITA
(Shareholder Value)
EA = Product Architecture
+ BA + EWITA
Improve Product/Service
Performance
Reduce
Operating Costs
Positioned For Growth
& Change
Focus on Strategic
Imperatives
Enhanced
Adaptable
Frontier
Influential
Utility
Predictable
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 18
EVIDENCE OF THE ERODING GOALS
PATTERNS IS SEEN IN THE CIO AND CEO
RELATIONSHIP
*Infotech executive research
Catch 22:
The CEO is looking for more value, but the CIO has a
mandate of diminishing value that’s often focussed on
keeping the lights on
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 19
THIS AWARD IS TELLING OF THE SHIFT.
CIO OF THE YEAR: ITNEWS BENCHMARK AWARD
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 20
THREAT OR
OPPORTUNITY FOR THE
ARCHITECTURE
FUNCTION?
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 21
K
WHO?
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 22
WHAT WE HAVE FOUND IN LARGE ACCOUNTS
Cohesion Mandate
Undefined - Enterprise Planning Ownership
An ownership gap for business architecture exists - Lines of responsibility around coherency
and business architecture, are often unclear
EnterprisePerformance
Capabilities
X-FunctionalCapabilities
FunctionalCapabilities
CONTEXT
Markets
Industries
Customers
Market Segment
Channels
Customer Relationships
Value Proposition
Offering:
Services/Products
Processes/ Value Chains
Capabilities
Business Service
Functions
Data
Applications
Technology
MARKET
MODEL
OPERATING
MODEL
SERVICE
MODEL
Strategic
Architecture
Mandate –
Business
Ownership
IT
Architecture
Mandate –
IT Ownership
Business
Architecture
Mandate
Undefined
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 23
DISCIPLINE CONFUSION
Confusion reigns around which disciplines are used for what situations
STRATEGIC
PLAN
MARKETING
PLAN
OPERATIONAL
PLAN
DELIVERY &
EXECUTION
OPERATIONS
Planning Delivering Operating
PORTFOLIO, PROGRAM AND PROJECT
MANAGEMENT
BUSINESS ARCHITECTURE
ENTERPRISE ARCHITECTUREPRODUCT & SERVICE DESIGN
BUSINESS PLANNING SOLUTIONS ARCHITECTURE
SOLUTIONS DEVELOPMENT
ENTERPRISE DESIGN
BUSINESS ANALYSIS
Environment analysis / SWOT,
competitor / Business motivation /
Product and portfolio analysis /
Strategic Options
Market analysis and forecasting Model the business / Evaluate and
select strategy / Risk and funding
analysis
Project, portfolio and program
management, solutions delivery
Daily operations, run the business
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 24
MISALIGNMENT OF DISCIPLINES
In navigating the minefield between strategy and execution there are multiple possible failure points
STRATEGY PROJECTS
   Strategy not sufficiently
tied to operations
Needed capabilities not
properly understood or
measured
Planners not accountable
for delivery
Benefits aren’t
quantified or traced
back to original goals
The drivers of strategy
are often misaligned

This often leads to some typical
stakeholder issues regarding
transformation exercises
Are we investing in the right areas
across the enterprise?
Is my investment portfolio
balanced across all of the
economic value add dimensions?
Are the strategic programs aligned,
or for that matter, are they the right
strategic programs?
There is a lot of activity going on
out there, how do I know we are
doing the right things?
Where can we take advantage of
synergies across the major
strategic programs?
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 25
FRAGMENTATION BEGINS IN
STRATEGIC PLANNING
Scenario 1: Business improvement - spawning initiatives from the strategy map
STRATEGIC THEMES
Initiative 5
Initiative 6
STRATEGIC THEMES
Initiative 1
Initiative 2
STRATEGIC THEMES
Initiative 3
Initiative 4
Mandate: Improve enterprise wide program and
portfolio performance
Business Unit 1
Program 1
Program 2
Business Unit 1
Program 1
Program 2
Business Unit 1
Program 1
Program 2
Initiatives straight from strategy often results in
loss of cohesion
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 26
ARCHITECTURE AS AN AFTERTHOUGHT
Strategic
Planning
Business
Planning
Portfolio and
Project
Management
Architecture
Solution
Architecture
Solution
Development
Scenario 1: Business improvement - spawning initiatives from the strategy map.
PMO drives the
architecture efforts
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 27
MISALIGNMENT TENDS TO DELIVERY ISSUES
› General trend and perception is that projects, specifically those of an IT nature, did not deliver to
expectations.
› The gap between the CIO and the perception of success vs the CEO and the perception of success is
telling of the growing divide between business and IT.
› The delivery trend, driven by quarterly reporting cycles, is not going anywhere, this makes PMO type
activities valuable
The percentage of projects that exceeded, met, or failed to meet business expectations ? As well as those that were outright cancelled
CEO CIO
*Infotech executive research
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 28
UNIFYING THE ENTERPRISE
Scenario 2: Business Transition - developing the unified business model
STRATEGIC THEMES
Capability 5
Capability 6
STRATEGIC THEMES
Capability 1
Capability 2
STRATEGIC THEMES
Capability 3
Capability 4
Mandate: Improve Business Performance
Business Unit 1
Program 1
Program 2
Business Unit 1
Program 1
Program 2
Business Unit 1
Program 1
Program 2
Creating a single unified business model helps build
cohesion across the enterprise
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 29
ARCHITECTURE FOR PORTFOLIO AND
INVESTMENT ALIGNMENT
Strategic
Planning
Business
Planning
Architecture
Portfolio and
Project
Management
Solution
Architecture
Solution
Development
As business architecture provides more value, its is being positioned above the delivery and execution space
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 30
PLANNING THE ENTERPRISE
Injecting Business Architecture into the strategic scenarios will
Improve the Strategic Decisions as well as the execution of that
strategy
Mandate: Improve
market performance
Scenario 3: Planning and Performance - defining the
business model for candidate strategic scenarios
Mission Vision VISIONARY
StrategiesGoalsSTRATEGIC
Tactics Objectives TACTICAL
Semi
Integrated
Universal
Bank
Product
Specialist
Customer
Owner
Infrastructur
e Provider
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 31
‘Enterprise Lifecycle's
2014 © Enterprise Architects PTY LTD
PERORMANCE
TIME
ENTERPRISE
BRAND PLATFORM
BUSINESS MODEL
BUSINESS CAPABILITIES
PRODUCT
CONSTANT CHANGE IS MOVING UPWARDS FASTER
ORGANIZATIONS…AND ARCHITECTS NEED TO BE ABLE TO PROVIDE THE MEAN S
TO ENABLE THIS CHANGE
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 32
2007: CURRENT RECESSION
COST MODEL, SERVICE MODEL, REVENUE MODEL, PERFORMANCE
MODEL, VALUE MODEL, OPERATING MODEL
Leading and Best Practice Research, 2011/2012
Scope: 1765 CEO’s and 2936 business leaders representing all major countries and industries
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 33
ARCHITECTURE FOR INTEGRATION OF
PLANNING EFFORTS
Strategic
Planning
Architecture
Business
Planning
Portfolio and
Project
Management
Solution
Architecture
Solution
Development
Facilitating Business Architecture as a strategic tool in the planning process is where the greatest value lies
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 34
Enterprise Design
BRINGING HUMAN CENTRED DESIGN TO
PLANNING AND ARCHITECTURE
Strategic
Planning
Architecture Service Design
Business
Planning
Portfolio and
Project
Management
Solution
Architecture
Solution
Development
Combining business architecture with design thinking provides a much broader value proposition where customer experience and value is linked directly to the
architected components of the business. In other words the entire enterprise is architected to improve the experience the end customer has with the organization.
Outside in as opposed inside out.
Business Analysis
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 35
ARCHITECTURE SERVICES DESIGN
I N T E R N A L
C U S T O M E R
Cx Ex
O P.
M O D E L
M A R K E T
M O D E L
Outside In
A R C H I T E C T U R E
O R G A N I S AT I O N
S E R V I C E
M O D E L
Communication
Design
STAKEHOLDERS
EXECUTIVE
IT EXECUTIVE
PRODUCT & SERVICE
Service (What) Capability (How)
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 36
CROSS DISCIPLINE TEAMS
Creation of a Unified Team of cross enterprise disciplines
Change
Manager
Finance
PMO
Business
Improvement
Strategy
Technology
• Combination of People,
Process & technology to
drive out an outcome
through projects
Designers
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 37
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 38
THE BUSINESS OF
ARCHITECTURE
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 39
ARCHITECTURE PRACTICE MATURITY
ISOLATED OPTIMIZING
LOSING FRAGMENTED
INTEGRATION IN THE ORGANIZATION
LEVELOFARCHITECTURALTHINKING
L O W H I G H
LOWHIGH
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 40
ROLES &
OP. MODEL
THE BUSINESS OF ARCHITECTURE
CAPABILITY
MODEL
ROADMAP
GOVERNANCE
* Closed feedback
loop to
Motivation Model
MEANS ASSESSMENT
MOTIVATION
MODEL
INFLUENCERS
ASSESSMENT
MEANS ENDS
CATALOGUE
SERVICES
MANDATE
WHAT
WHY
COMMUNICATION
ENGAGEMENT
MODEL
DEMAND
ANALYSIS SOURCING
CURRENT FUTURE
BUSINESS CONTEXT
HOW
WHO
WHERE
WHEN
CAPABILITY
ASSESSMENT
ENABLES
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 41
SERVICE DESIGN
ARCHITECTURE PRACTICE DEVELOPMENT
CAPABILITY MODEL CAPABILITY ASSESSMENTPRACTICE MOTIVATION MODEL INTERNAL COMMUNICATIONS
ARCHITECTURE ENGAGEMENT
MODEL
ARCHITECTURE OPERATING
MODEL
ARCHITECTURE DEMAND
ANALYSIS
SOURCING STRATEGY PRACTICE IMPROVEMENT
ROADMAP
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 42
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 43
CO-DESIGN SERVICES THROUGH THE EYES,
EMOTIONS AND NEEDS OF THE CUSTOMER
C U S T O M E R P E R S O N A S
S E R V I C E M O D E LE M PAT H Y M A P
V P C A N V A S
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 44
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 45
COMMUNICATION STRATEGY
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 46
COMMUNICATION MANUAL
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 47
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 48
A METHOD OF EXECUTION
TOGAF provides a more sophisticated method of the integration of the disciplines but does not provide the detailed content and
methods for the domains
Preliminary
A.
Architecture
Vision
B.
Business
Architecture
C.
Information
Systems
Architectures
F.
Migration
Planning
D.
Technology
Architecture
E.
Opportunities &
Solutions
G.
Implementation
Governance
H.
Architecture
Change
Management
Requirements
Management
• The business “hat” is worn in these phases since it involves the
innovate, mix and assemble activities
• The strength of the business architect in this space is
understanding the context and applying the right tools for that
context
• At this point it is advantageous to introduce the motivation
model, with specific reference focus as to how the customer
experience drives out the outcomes in the motivation model.
• The capability model often does not resonate here - so the
introduction of the underlying resource mix is more effective
e.g.. People, Process and tools
• A First iteration of these phases drives out the key enterprise
differentiation resources required to reach the outcomes
• A Second iteration drives out the products and services model
(4P’s - Product, Place, Price & Promotion) and what cross
functional resources we need to deliver these
• Journey management is a crucial aspect of the business
architect during this phase
• Some limited BABOK and BIZBOK techniques support this area
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 49
A METHOD OF EXECUTION
The Business Architect wears two hats when executing through this method
Preliminary
A.
Architecture
Vision
B.
Business
Architecture
C.
Information
Systems
Architectures
F.
Migration
Planning
D.
Technology
Architecture
E.
Opportunities &
Solutions
G.
Implementation
Governance
H.
Architecture
Change
Management
Requirements
Management
• The business architect wears the architecture “hat”
in these phases since they involve the reliability and
utility activities
• The business architect has to understand architecture
in order to apply it and help the teams downstream
• This space requires more of the traditional
architecture models - the people, process and tools
resources can now be assembled and clustered into
capabilities
• The architecture community is strong in this space but
tends to be weak at requirements management
across the whole process
• Techniques and resources within the BizBok will
support the business architect efforts within these
phases
• There are a number of techniques within the BABOK
that the business analyst will use in supporting the
business architect across these phases
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 50
K
WHY
WHAT
HOW
WHO
WHERE
WHEN
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 51
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C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 52
CAPABILITY ASSESSMENT
Assess the readiness of your
architecture capabilities to
enable your services
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 53
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C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 54
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 55
ARCHITECTURE DEMAND ANALYSIS
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 56
SOURCING STRATEGY
D E L E G AT E
PA R T N E R
M A N A G E
C O R E
HIGH
HIGH
REQUIRED
ORGANISATIONALINTIMACY
S E R V I C E D E M A N D
Solution design
and reviewStrategic
Planning
Vendor
management
Costing
and
estimation
Technology
management
Technical
SME
Business
Analysis
Portfolio
Management
LEGEND
RESOURCE POOL
Large
(>10FTE)
Medium
(<10FTE)
Small
(<2FTE)
OWNERSHIP
Internal
External
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 57
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RoadmapCurrent Strategy and Architecture Team
Jan 14
Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17
Sample Strategy and Architecture Team Roadmap – Roles Services, and Capabilities Roadmap
Version: 1.0.0
Created: 28/04/2014 by Enterprise Architects
Updated: 14/05/2014 by Enterprise Architects
Sources:
Description: Provides a view of the roadmap of activities necessary to realise the future state architecture. The primary intent of the roadmap is to inform the detailed program of work.
Concerns Addressed: What does the program of work look like? Where are the dependencies across the program of work? How does the program of work align to the IT Department objectives and principles?
Stakeholders: IT Executives, Strategy and Architecture Team Manager, Architects, Business Executives, Business Managers
© Enterprise Architects (Vic) Pty Ltd 2014
Horizon 1
· Understand what Business needs and the role IT should play
· Fix internal process bottlenecks, deliver some quick wins
· Design appropriate organisation & processes for future
Horizon 2
· Build the IT capability to deliver what the
business needs (people, structure, governance,
technology, focus)
· Support Transition Activities
Horizon 3
· Put the IT capability into action to deliver
transformational results
Current Services
Current State Capabilities
Owns and governs
Strategy &
Architecture
Manager
Practice CoordinatorPrincipal IT
Architect
Enterprise Architect
– Digital & Analytics
Enterprise Architect
- Security
Lead Architect /
Senior Solution
Architect
Solution Architect
Owns and governs Owns and governs Owns and governs
Owns and governs
Business Solutions
Architect
Enterprise Architect
– Applications &
Integration
Enterprise Architect
– Technology
Enterprise Architect
– Information
Strategy
Development
Blueprint Management Roadmap
Management
Strategic
Change
Program
Development
IS Asset
Lifecycle
Management
Solution
Delivery
Management
Solution
Architecture
Delivery
Stakeholder
Value
Analysis
Architecture Governance
Principles
Management
Standard
Management
Policy
Management
IT
Architecture
Project
Governance
Architecture
Requirements
Management
Architecture
Risk
Assessment
Compliance
Management
IT
Architecture
Review Board
Management
Technology
Watch
Trend
Analysis
IT
Architecture
Change
Management
Solution
Architecture
Options
Analysis
Current State
Application
Architecture
Management
Target State
Application
Architecture
Development
Architecture
Impact
Assessment
Current State
Information
Architecture
Management
Current State
Technology
Architecture
Management
Current State
Security
Architecture
Management
Target State
Information
Architecture
Development
Target State
Technology
Architecture
Development
Target State
Security
Architecture
Development
Capture
Current State
Business
Architecture
Capture
Target State
Business
Architecture
IT
Architecture
Roadmap
Development
IT
Architecture
Portfolio
Management
IT Transition
Architecture
Management
Proposed Strategy & Architecture Team
Target Services
Target State Capabilities
Owns and governs
Strategy &
Architecture
Manager
Practice CoordinatorPrincipal IT
Architect
Enterprise Architect
– Digital & Analytics
Enterprise Architect
– Security
Lead Architect /
Senior Solution
Architect
Solution Architect
Owns and governs Owns and governs Owns and governs
Owns and governs
Business Solutions
Architect
Enterprise Architect
– Applications &
Integration
Enterprise Architect
– Technology
Enterprise Architect
– Information
Strategy
Development
Blueprint Management Roadmap
Management
Strategic
Change
Program
Development
IS Asset
Lifecycle
Management
Solution
Delivery
Management
Solution
Architecture
Delivery
Stakeholder
Value
Analysis
Architecture Governance
Principles
Management
Standard
Management
Policy
Management
IT
Architecture
Project
Governance
Architecture
Requirements
Management
Architecture
Risk
Assessment
Compliance
Management
IT
Architecture
Review Board
Management
Technology
Watch
Trend
Analysis
IT
Architecture
Change
Management
Solution
Architecture
Options
Analysis
Current State
Application
Architecture
Management
Target State
Application
Architecture
Development
Architecture
Impact
Assessment
Current State
Information
Architecture
Management
Current State
Technology
Architecture
Management
Current State
Security
Architecture
Management
Target State
Information
Architecture
Development
Target State
Technology
Architecture
Development
Target State
Security
Architecture
Development
Capture
Current State
Business
Architecture
Capture
Target State
Business
Architecture
IT
Architecture
Roadmap
Development
IT
Architecture
Portfolio
Management
IT Transition
Architecture
Management
EngagementPracticeBuildingExecution&DeliveryGovernance
1/06/2014 - 1/03/2015
Communications Strategy
1/03/2015 - 1/12/2015
IT Department Socialisation
and Awareness
Campaign
1/03/2014 - 1/06/2014
Operating Model Development
Roles – Existing Roles – Non-Existent
Services – Offered Services – Partially Offered Services – Not Offered
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Non-Existent
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
initial
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Developing
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Defined
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Managed
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Optimising
Roles – Non-Existent
Services – Offered Services – Partially Offered Services – Not Offered
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Non-Existent
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
initial
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Developing
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Defined
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Managed
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capability Maturity –
Optimising
Roles – Existing
1/06/2014 - 1/09/2014
Onboarding and Provisioning Approach
1/03/2015 - 1/09/2015
Knowledge Management and Architecture Repository strategy
1/12/2015 - 1/09/2016
Mature Portfolio Management
1/06/2015 - 1/12/2015
Current State Blueprinting
15/09/2015 - 1/03/2016
Target state Blueprinting
1/03/2016 - 1/09/2016
Architecture Roadmapping
1/12/2014 - 1/06/2015
Enrich Architecture Governance
1/12/2015 - 1/12/2016
Business Socialisation
1/03/2017 - 1/09/2017
1/12/2016 - 1/09/2017
Business Embedment
1/09/2014 - 1/03/2015
Architecture Process Specification
1/03/2016 - 1/09/2016
1/12/2015 - 1/09/20161/03/2015 - 1/12/2015
Build Program Architecture Capability
1/06/2015 - 1/03/2016
Uplift Solution Architecture Capability
1/12/2015 - 1/06/2016
Architecture Strategy Definition
1/09/2016 - 1/03/2017
Embed Technology Innovation
ProjectsProjects
Continuous Improvement
Activities
Initiative
Dependency
Iteration and
Collaboration
PrinciplesObjectives & Themes
Architecture Principles
Principle BP01: Apply Principles Universally
Principle BP02: Proactive Business Leadership
Principle BP03: Recognise IT Department Responsibility
Principle BP04: Manage Enterprise Debt Value (EDV)
Principle BP05: Protect organisation DNA
Principle BP06: Think Strategically
Principle BP07: Business Continuity, Disaster Recovery and Contingency
Planning
Principle BP08: Compliance
Principle BP09: Have a Sound Business case
Principle BP10: Reduce Complexity
Principle BP11: Avoid Under/Over Engineering
Principle BP12: Be Service Oriented
Principle BP13: Reduce Repetitive Manual Processes
Principle BP14: Open Integration
Principle AP01: Ease-of-Use
Principle AP02: Configure before Customisation
Principle AP03: Reuse before Lease before Buy
before Build
Principle AP04: Application Security
Principle DP01: Data is an Asset
Principle DP02: Data Sharing
Principle DP03: Data Accessibility
Principle DP04: Common Vocabulary
Principle DP05: Data Security
Principle TP01: Increase Technology
Independence
Principle TP02: Reduce Technology Diversity
Business Principles Application Principles
Data Principles
Technology Principles
Strategy Architecture Team
Drivers
Vision
Mission
The Strategy and Architecture team applies IT
architectural thinking across the enterprise, and
enables sustainable competitive advantage by
identification and design of the organisation’s
IT assets ensuring they are fully leveraged to
add value and meet the strategic agenda.
The Strategy & Architecture team will be a
valued partner of the Business Units, and
contribute to business value by enabling the
enterprise though provision of differentiated
and innovative IT services and solutions to
achieve the organisation’s vision.
The IT Department needs
to effectively respond to,
influence and deliver the
strategic IT needs of the
organisation’s Business Units
Develop an architecture that
supports the target TCO for
the organisation
Minimise the operational
risk associated with the
organisation’s architecture
S&A a trusted advisor to the business units, maximising leverage and
growth of new and existing IT assets, to enable competitive
differentiation and realisation through strong alignment of IT and
Business group strategies.
Remove redundancy through rationalisation across the architecture
Realise operational efficiency through the simplification of the
architecture
Introduce flexibility, agility and opportunity to innovate through an
architecture that enables the organisation to effectively and
proactively respond to the business environment and demands
Establish manageable IT controls to effectively respond to market
factors
Draw attention and focus to the role of IT in the context of Strategic,
Business Critical and Differentiation opportunities and initiatives. S&A
a key influencer in Business Capability planning and realisation,
ensuring alignment of the project portfolio to enterprise goals.
Enable differentiated Technology and Business service offerings that
are aligned to Business and Customer criticality and impact.
Provide a sustainable architecture for the organisation delivering
operational stability
Trusted advisor during procurement of Vendor and Partner IT
services, providing insight and governance into organisational fit,
impact and operational and architecture risk profiling.
The organisation’s IT architecture enables compliance with industry,
regulatory and contractual obligations.
creates
creates
creates
creates
creates
creates
creates
creates
creates
creates
Theme 10:
Adhere to Risk &
Regulatory Compliance
T10
Theme 9:
Inform Vendor
Procurement
T9
Theme 8:
Uplift Governance
Processes
T8
Theme 7:
Foster Innovation
Agenda
T7
Theme 6:
Mature the
S&A Practice
T6
Theme 5:
Reduce IT Department
Operational Costs
T5
Theme 4:
Drive “Fit for Purpose”
Design and Focus
T4
Theme 3:
Improve Portfolio
Planning & Design
T3
Theme 2:
Influence Strategy
Development
T2
Theme 1:
Organisational
Engagement
T1
The S&A Mandate and Service offering are well communicated and
understood across the organisation.
S&A viewed as 'key advisors' by Business stakeholders and provide advice
on best practice to apply Technology solutions to solve business problems.
Focus is shifted to initiatives and opportunities
that target major business value.
Able to identify key gaps in IT Department capabilities and
develop a business case for investment prioritisation to resolve.
S&A is able to optimally shape the Portfolio Planning
Design to maximise investment and business outcomes.
Defined a useable Reference Architecture
to support Portfolio planning.
Identifies business critical Systems and Applications. Applications
enhancements are aligned with Criticality.
Opportunities to reduce the IT Department’s cost profile and complexity are
identified and are built into investment and portfolio plans.
Define how to build and represent enterprise architecture across the
organisation.
Improvement opportunities are identified and improve use, quality and
efficiency across Applications, Technologies and Information.
Deep awareness of Technology Industry Trends, practices and Solutions.
S&A able to proactively match innovation opportunities to business problems.
The Enterprise architecture influences procurement and negotiations with
Vendors.
S&A leads a culture change across the IT Department and 'fosters' an
innovation culture.
Provide Technology solutions that match Business Needs.
Establishes the Strategic Steering committee with a purpose to govern
strategy and roadmaps.
Defines a fit for purpose Architecture to meet regulatory and compliance
requirements and agreed risk profiles.
T1 T1 T1 T1
T10T9T5T4
T5T4
T9T5T3
T7
T2
T6
T3
T6T4
T8
T6
T6
T6
T6
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Engagement Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Practice Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Support for Enterprise Strategy
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Support
for Projects
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Support
for Programs &
Portfolio Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Solution
Architecture
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Program
Architecture
Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Project
Architecture
Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Quality
Assurance
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Technology
Research
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Technology
Innovation
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Blueprint
Development
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Roadmap
Development &
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Program
Architecture
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Support
Program
Inception
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Budget &
Estimate
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Practice
Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Repository
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Demand
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
SLA
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Performance
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Talent &
Resource
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategic
Vendor
Engagement
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Stakeholder
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Communication
Strategy &
Execution
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Practice
Improvement
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Partner
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Practice Risk
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategy
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Engagement Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Practice Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Support for Enterprise Strategy
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Support
for Projects
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Support
for Programs &
Portfolio Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Solution
Architecture
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Program
Architecture
Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Project
Architecture
Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Quality
Assurance
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Technology
Research
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Technology
Innovation
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Blueprint
Development
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Roadmap
Development &
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Program
Architecture
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Support
Program
Inception
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Budget &
Estimate
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Practice
Governance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Repository
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Demand
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
SLA
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Performance
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Talent &
Resource
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategic
Vendor
Engagement
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Stakeholder
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Communication
Strategy &
Execution
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Practice
Improvement
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Partner
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Practice Risk
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategy
Development
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 58
THE BUSINESS ARCHITECTURE-
LED APPROACH
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 59
ARCHITECTURE PRACTICE MATURITY
ISOLATED OPTIMIZING
LOSING FRAGMENTED
INTEGRATION IN THE ORGANIZATION
LEVELOFARCHITECTURALTHINKING
L O W H I G H
LOWHIGH
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 60
DESIGNING FOR VALUE
› High maturity organizations have
a clear linkage between Business
architecture, strategic goals, and
performance management
› These organizations also have a
feedback loop which helps
measure the progress towards
objectives
› This feedback loop will also inform
the next iteration of business
strategy and architecture.
Value based management, value creation and performance.
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 61
APPLYING A BUSINESS ARCHITECTURE
-LED APPROACH
› Allows the enterprise programs to develop consistency in
describing the capabilities required to meet business objectives.
› Can be used to demonstrate:
» A natural information sequence across the business
» Strategic Value
» Maturity of capability
» Current in-flight project
BUSINESS CAPABILITY ANCHOR MODEL
› It provides traceability and captures mission and vision,
strategies, goals, tactics and objectives
› Offers a clear articulation of business strategy in order to
identify and assess required business capabilities
BUSINESS MOTIVATION MODEL
› Allows stakeholders to document current and future state
business models
› Enables testing of conventions and innovations to reveal
opportunities, threats and disruptive strategies
BUSINESS MODEL CANVAS
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 62
Increase price
Increase volume
Improve mix
Improve process
Reduce cost of inputs
Improve warehouse
utilisation
Increase productivity
Decrease staffing
Optimize scheduling
Optimize physical network
Decrease staffing
Use alternative distribution
Lower Customer Service &
Order Management Costs
Lower I/S costs
Lower Finance / Accounting
costs
Lower HR costs
Improve capital planning/
investment process
Reduce inventories
Reduce A/R increase A/P
o Profit-driven marketing
efforts:
• Target “best” customers
• Offer “best” product mix
• Improve pricing
management
• Proactive production
planning for inventory
management
• Most profitable capacity
allocation/utilization
o Reduced sales management
layers
o Focus on high-profit
accounts
o Improved inventory flow
visibility
• Lower transportation costs
• Higher facilities utilization
• Less “fire fighting”
o Better carrier
evaluation/mgmt.
o Higher quality Customer
Service
o Improved Supply Chain
visibility
• Improved order fill rates
• Significantly lower cost
• More consistent service
• Faster problem resolution
o Improved capital
stewardship
• Increased capital
productivity
• Reduced inventory
investment
• Reduced receivables
investment
o Automated PO
requisitions
o Improved information for
evaluating vendors
o Automation of some
scheduling functions
o Single point of entry
eliminates data re-entry
and improves accuracy
o Faster data reconciliation
o Automated billing
processes
o Automated payroll
processes
o Moderately lower safety
stock inventory
o Moderately improved A/R
and A/P management
Increase
revenues
Decrease
costs
Reduce
selling costs
Reduce
distribution
costs
Reduce
administrative
costs
Increase
gross profit
Decrease
operating
expenses
Capital
deployment
Cost
of capital
Increase net
operating
profit after tax
(NOPAT) (I/S)
Improve
capital
allocation
(B/S)
Enterprise
Value
Map
VALUE BASED
DELIVERY VALUE LEVERS
TRANSFORMATION
BENEFIT (Outcome)
AUTOMATION
BENEFIT
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 63
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 64
K
C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 65
BUSINESS CAPABILITY
MODEL WITH STRATEGIC
OVERLAY
BUSINESS CAPABILITY MODEL
WITH CURRENT MATURITY
OVERLAY
BUSINESS CAPABILITY MODEL
WITH PAIN POINTS
BUSINESS CAPABILITY MODEL
WITH INFLIGHT PROJECTS
Am I over or
underspending?
Is my current investment
portfolio dealing with tactical
issues?
Is my strategy aligned with
management issues / focus areas?
Am I able to achieve my
strategy?
Capability models and overlays can reveal the answers
to important business questions.
CAPABILITY MODEL OVERLAYS
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K
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Repositioning the Value of the Architecture Practice

  • 1. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 1 RE-POSITIONING THE VALUE OF THE ARCHITECTURE PRACTICE PRESENTEDTOTHEOPENGROUPTUESDAY, 57H OCTOBER2014 PRESENTED BY: Craig Martin Chief Architect, Enterprise Architects
  • 2. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 2 ABOUT E zero HOURS A DAY BACK OFFICE VENDOR ALIGNMENT MORE THAN 1600 PEOPLE TRAINED IN ARCHITECTURE PRACTICES (AND RISING) 12YEARS IN BUSINESS GLOBAL OFFICES 1600 MORE THAN 10,000 DAYS OF ARCHITECTURE SERVICES DELIVERED LAST YEAR 10,000 oneCOMMON METHOD 20 four sixOPERATING IN 6 CONTINENTS
  • 3. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 3 OUR SERVICES Servicing the Strategy and Architecture needs of Global Organisations STRATEGY CONSULTING › Business Architecture › Strategic Services & Operating Model Design: » Business Services & Capabilities » IT Services & Capabilities › Segment Strategies and Roadmaps: » Customer Experience & Digital » Enterprise Information Management » Big Data Analytics » Applications » Cloud & Infrastructure » Security, Risk & Resilience » Innovation Management PRACTICE DEVELOPMENT › Architecture Service Model Design › Architecture Operating Model Design › Service and Capability Readiness Assessment › Professional Training and Certification (Business Architecture, Information Management, TOGAF®, CDMP®, ArchiMate® and Design Thinking) › Project Architecture Resources › Architecture Talent Strategy and Professional Development › Architecture Back Office Services
  • 4. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 4 OUR CLIENTS
  • 5. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 5 K
  • 6. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 6 * From Roger Martin (2009) The Design of Business GOAL: Exploitation; Reliability Produce consistent, predictable outcomes GOAL: Exploration; Validity Produce outcomes that meet an objective THE RESULTS OF DISRUPTION A stronger focus on the exploration and intuitive aspects of business are producing a strong drive for innovation within the business and in corresponding business models Unresolved Business Challenges Heuristics Rules of thumb Robust, repeatable and replicable processes A reliable system will produce the same test results every time A valid system will produce a result that is shown, through the passage of time, to be correct
  • 7. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 7 THE KNOWLEDGE FUNNEL Non-core but complex - Outsource Innovation, chaos & unresolved mysteries HIGH HIGH LOW LOW Must be done but adds little value to product or services Very important to success, high value added to products and services STRATEGIC IMPORTANCE & VALUE COMPLEXITYANDDYNAMICS Complex negotiation, design, or decision process Many business rules; expertise involved Some business rules Procedure or simple algorithm Non -Core Competencies Core Differentiating Competencies Everyday, highly repeatable and automated Make repeatable and reliable to gain efficiency Core Competitive Competencies THE RESULTS OF DISRUPTION THE SPEED THROUGH THE KNOWLEDGE FUNNEL IS ALSO INCREASING Source: Adapted from “Business Process Change” by Paul Harmon GOAL: Reliably produce consistent, predictable outcomes GOAL: Validity- Produce outcomes that meet desired objectives
  • 8. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 8 THE RESULTS OF DISRUPTION THE COMMODITY SPACE IS GROWING, MAKING THE DIFFERENTIATION SPACE MORE COMPETITIVE Non-core but complex - Outsource Innovation, chaos & unresolved mysteries HIGH HIGH LOW LOW Must be done but adds little value to product or services Very important to success, high value added to products and services STRATEGIC IMPORTANCE & VALUE COMPLEXITYANDDYNAMICS Complex negotiation, design, or decision process Many business rules; expertise involved Some business rules Procedure or simple algorithm Non -Core Competencies Core Differentiating Competencies Everyday, highly repeatable and automated Make repeatable and reliable to gain efficiency Core Competitive Competencies Non-core but complex - Outsource Innovation, chaos & unresolved mysteries HIGH HIGH LOW LOW Must be done but adds little value to product or services Very important to success, high value added to products and services STRATEGIC IMPORTANCE & VALUE COMPLEXITYANDDYNAMICS Complex negotiation, design, or decision process Many business rules; expertise involved Some business rules Procedure or simple algorithm Non -Core Competencies Core Differentiating Competencies Everyday, highly repeatable and automated Make repeatable and reliable to gain efficiency Core Competitive Competencies Opportunity or Threat?
  • 9. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 9 THIS ACCELERATION IS PUTTING PRESSURE ON CURRENT BUSINESS MODELS Technology commoditising from below Business roles taking on more architecture accountabilities
  • 10. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 10 Utility (Foundation) Innovate Build Advantages Assemble Prolong Advantages Mix Reduce Disadvantages THE CREATIVE COMMONS GROWTH Differentiation
  • 11. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 11 THE GROWTH OF BUSINESS UTILITY Unique differentiators and offerings are becoming commonplace through new value exchange models The Telecommunications PCF features processes for infrastructure planning, enterprise architecture management, defining channel strategy and service levels, new service development and rollout, supply chain management, service activation, and customer relationship management.
  • 12. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 12 A GAP IS EMERGING BETWEEN THE UTILITY AND THE MIX ASPECTS OF BUSINESS Utility (Foundation) Innovate Build Advantages Assemble Prolong Advantages Mix Reduce Disadvantages
  • 13. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 13 THE GAP BETWEEN THE C’S 37% 34% 29% 22% Customer Loyalty Increasing flexibility & speed Reducing Costs Increasing Innovation Percentage of CEOs reporting COMMON DRIVERS FOR INCREASING BUSINESS FLEXIBILITY 1. Customer demand for quick turnaround and increased need for customisation 2. Shorter decision cycles 3. Increased need for product innovation 4. Globalisation of corporate footprint Where are the CIO challenges?
  • 14. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 14 THE GAP BETWEEN THE C’S Yawning gap between the CEO and the traditional CIO landscape *Infotech executive research
  • 15. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 15 …IF HISTORY IS ANYTHING TO GO BY… Business architecture holds the potential to impact organisations’ progress on strategic objectives. Leverage business architecture to mitigation failure points across the cycle One-third of firms fail to achieve expected results from annual strategic plans. More than half of all business projects fail. Forty-six percent of business failures stem from misguided strategies. *Corporate Executive Board
  • 16. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 16 BUSINESS WANTS TO MIX BETTER AND FASTER, AND IF DONE EFFECTIVELY, THE RESULTS SPEAK FOR THEMSELVES Companies with a High Level of Cohesion affect EBIT Directly 4% 8% 12% 16% 20% 24% 28% 32% 0 20 40 60 80 100 120 EBITmargin,2003-2007 Capabilities coherence score Coca-Cola Wrigley PepsiCo Kimberly-Clark Sara Lee ConAgra Merck Unilever H.J. Heinz Kraft General Mills Clorox Campbell Soup Company P&G *Adapted from “The Coherence Premium” – Harvard Business Review, June 2010 A coherent organization is one that is thought of and executed as a whole
  • 17. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 17 Improve project performance Improve enterprise wide investment performance Improve Business Performance Improve Market Performance A B VALUE MANDATE C E Improve Product and & Service Performance D IMPROVING ARCHITECTURE VALUE By EA is often stuck with an old mandate with diminishing utility value *Adapted from Ruth Malan, Dana Bredemeyer EA = IT Architecture EA = Enterprise-Wide IT Architecture (EWITA) Improve IT performance EA = Business Architecture (BA) + EWITA Improve Business Performance EA = Strategic Enabler + BA + EWITA (Shareholder Value) EA = Product Architecture + BA + EWITA Improve Product/Service Performance Reduce Operating Costs Positioned For Growth & Change Focus on Strategic Imperatives Enhanced Adaptable Frontier Influential Utility Predictable
  • 18. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 18 EVIDENCE OF THE ERODING GOALS PATTERNS IS SEEN IN THE CIO AND CEO RELATIONSHIP *Infotech executive research Catch 22: The CEO is looking for more value, but the CIO has a mandate of diminishing value that’s often focussed on keeping the lights on
  • 19. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 19 THIS AWARD IS TELLING OF THE SHIFT. CIO OF THE YEAR: ITNEWS BENCHMARK AWARD
  • 20. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 20 THREAT OR OPPORTUNITY FOR THE ARCHITECTURE FUNCTION?
  • 21. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 21 K WHO?
  • 22. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 22 WHAT WE HAVE FOUND IN LARGE ACCOUNTS Cohesion Mandate Undefined - Enterprise Planning Ownership An ownership gap for business architecture exists - Lines of responsibility around coherency and business architecture, are often unclear EnterprisePerformance Capabilities X-FunctionalCapabilities FunctionalCapabilities CONTEXT Markets Industries Customers Market Segment Channels Customer Relationships Value Proposition Offering: Services/Products Processes/ Value Chains Capabilities Business Service Functions Data Applications Technology MARKET MODEL OPERATING MODEL SERVICE MODEL Strategic Architecture Mandate – Business Ownership IT Architecture Mandate – IT Ownership Business Architecture Mandate Undefined
  • 23. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 23 DISCIPLINE CONFUSION Confusion reigns around which disciplines are used for what situations STRATEGIC PLAN MARKETING PLAN OPERATIONAL PLAN DELIVERY & EXECUTION OPERATIONS Planning Delivering Operating PORTFOLIO, PROGRAM AND PROJECT MANAGEMENT BUSINESS ARCHITECTURE ENTERPRISE ARCHITECTUREPRODUCT & SERVICE DESIGN BUSINESS PLANNING SOLUTIONS ARCHITECTURE SOLUTIONS DEVELOPMENT ENTERPRISE DESIGN BUSINESS ANALYSIS Environment analysis / SWOT, competitor / Business motivation / Product and portfolio analysis / Strategic Options Market analysis and forecasting Model the business / Evaluate and select strategy / Risk and funding analysis Project, portfolio and program management, solutions delivery Daily operations, run the business
  • 24. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 24 MISALIGNMENT OF DISCIPLINES In navigating the minefield between strategy and execution there are multiple possible failure points STRATEGY PROJECTS    Strategy not sufficiently tied to operations Needed capabilities not properly understood or measured Planners not accountable for delivery Benefits aren’t quantified or traced back to original goals The drivers of strategy are often misaligned  This often leads to some typical stakeholder issues regarding transformation exercises Are we investing in the right areas across the enterprise? Is my investment portfolio balanced across all of the economic value add dimensions? Are the strategic programs aligned, or for that matter, are they the right strategic programs? There is a lot of activity going on out there, how do I know we are doing the right things? Where can we take advantage of synergies across the major strategic programs?
  • 25. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 25 FRAGMENTATION BEGINS IN STRATEGIC PLANNING Scenario 1: Business improvement - spawning initiatives from the strategy map STRATEGIC THEMES Initiative 5 Initiative 6 STRATEGIC THEMES Initiative 1 Initiative 2 STRATEGIC THEMES Initiative 3 Initiative 4 Mandate: Improve enterprise wide program and portfolio performance Business Unit 1 Program 1 Program 2 Business Unit 1 Program 1 Program 2 Business Unit 1 Program 1 Program 2 Initiatives straight from strategy often results in loss of cohesion
  • 26. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 26 ARCHITECTURE AS AN AFTERTHOUGHT Strategic Planning Business Planning Portfolio and Project Management Architecture Solution Architecture Solution Development Scenario 1: Business improvement - spawning initiatives from the strategy map. PMO drives the architecture efforts
  • 27. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 27 MISALIGNMENT TENDS TO DELIVERY ISSUES › General trend and perception is that projects, specifically those of an IT nature, did not deliver to expectations. › The gap between the CIO and the perception of success vs the CEO and the perception of success is telling of the growing divide between business and IT. › The delivery trend, driven by quarterly reporting cycles, is not going anywhere, this makes PMO type activities valuable The percentage of projects that exceeded, met, or failed to meet business expectations ? As well as those that were outright cancelled CEO CIO *Infotech executive research
  • 28. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 28 UNIFYING THE ENTERPRISE Scenario 2: Business Transition - developing the unified business model STRATEGIC THEMES Capability 5 Capability 6 STRATEGIC THEMES Capability 1 Capability 2 STRATEGIC THEMES Capability 3 Capability 4 Mandate: Improve Business Performance Business Unit 1 Program 1 Program 2 Business Unit 1 Program 1 Program 2 Business Unit 1 Program 1 Program 2 Creating a single unified business model helps build cohesion across the enterprise
  • 29. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 29 ARCHITECTURE FOR PORTFOLIO AND INVESTMENT ALIGNMENT Strategic Planning Business Planning Architecture Portfolio and Project Management Solution Architecture Solution Development As business architecture provides more value, its is being positioned above the delivery and execution space
  • 30. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 30 PLANNING THE ENTERPRISE Injecting Business Architecture into the strategic scenarios will Improve the Strategic Decisions as well as the execution of that strategy Mandate: Improve market performance Scenario 3: Planning and Performance - defining the business model for candidate strategic scenarios Mission Vision VISIONARY StrategiesGoalsSTRATEGIC Tactics Objectives TACTICAL Semi Integrated Universal Bank Product Specialist Customer Owner Infrastructur e Provider
  • 31. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 31 ‘Enterprise Lifecycle's 2014 © Enterprise Architects PTY LTD PERORMANCE TIME ENTERPRISE BRAND PLATFORM BUSINESS MODEL BUSINESS CAPABILITIES PRODUCT CONSTANT CHANGE IS MOVING UPWARDS FASTER ORGANIZATIONS…AND ARCHITECTS NEED TO BE ABLE TO PROVIDE THE MEAN S TO ENABLE THIS CHANGE
  • 32. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 32 2007: CURRENT RECESSION COST MODEL, SERVICE MODEL, REVENUE MODEL, PERFORMANCE MODEL, VALUE MODEL, OPERATING MODEL Leading and Best Practice Research, 2011/2012 Scope: 1765 CEO’s and 2936 business leaders representing all major countries and industries
  • 33. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 33 ARCHITECTURE FOR INTEGRATION OF PLANNING EFFORTS Strategic Planning Architecture Business Planning Portfolio and Project Management Solution Architecture Solution Development Facilitating Business Architecture as a strategic tool in the planning process is where the greatest value lies
  • 34. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 34 Enterprise Design BRINGING HUMAN CENTRED DESIGN TO PLANNING AND ARCHITECTURE Strategic Planning Architecture Service Design Business Planning Portfolio and Project Management Solution Architecture Solution Development Combining business architecture with design thinking provides a much broader value proposition where customer experience and value is linked directly to the architected components of the business. In other words the entire enterprise is architected to improve the experience the end customer has with the organization. Outside in as opposed inside out. Business Analysis
  • 35. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 35 ARCHITECTURE SERVICES DESIGN I N T E R N A L C U S T O M E R Cx Ex O P. M O D E L M A R K E T M O D E L Outside In A R C H I T E C T U R E O R G A N I S AT I O N S E R V I C E M O D E L Communication Design STAKEHOLDERS EXECUTIVE IT EXECUTIVE PRODUCT & SERVICE Service (What) Capability (How)
  • 36. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 36 CROSS DISCIPLINE TEAMS Creation of a Unified Team of cross enterprise disciplines Change Manager Finance PMO Business Improvement Strategy Technology • Combination of People, Process & technology to drive out an outcome through projects Designers
  • 37. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 37 K
  • 38. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 38 THE BUSINESS OF ARCHITECTURE
  • 39. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 39 ARCHITECTURE PRACTICE MATURITY ISOLATED OPTIMIZING LOSING FRAGMENTED INTEGRATION IN THE ORGANIZATION LEVELOFARCHITECTURALTHINKING L O W H I G H LOWHIGH
  • 40. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 40 ROLES & OP. MODEL THE BUSINESS OF ARCHITECTURE CAPABILITY MODEL ROADMAP GOVERNANCE * Closed feedback loop to Motivation Model MEANS ASSESSMENT MOTIVATION MODEL INFLUENCERS ASSESSMENT MEANS ENDS CATALOGUE SERVICES MANDATE WHAT WHY COMMUNICATION ENGAGEMENT MODEL DEMAND ANALYSIS SOURCING CURRENT FUTURE BUSINESS CONTEXT HOW WHO WHERE WHEN CAPABILITY ASSESSMENT ENABLES
  • 41. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 41 SERVICE DESIGN ARCHITECTURE PRACTICE DEVELOPMENT CAPABILITY MODEL CAPABILITY ASSESSMENTPRACTICE MOTIVATION MODEL INTERNAL COMMUNICATIONS ARCHITECTURE ENGAGEMENT MODEL ARCHITECTURE OPERATING MODEL ARCHITECTURE DEMAND ANALYSIS SOURCING STRATEGY PRACTICE IMPROVEMENT ROADMAP
  • 42. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 42 K
  • 43. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 43 CO-DESIGN SERVICES THROUGH THE EYES, EMOTIONS AND NEEDS OF THE CUSTOMER C U S T O M E R P E R S O N A S S E R V I C E M O D E LE M PAT H Y M A P V P C A N V A S
  • 44. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 44 K
  • 45. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 45 COMMUNICATION STRATEGY
  • 46. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 46 COMMUNICATION MANUAL
  • 47. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 47 K
  • 48. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 48 A METHOD OF EXECUTION TOGAF provides a more sophisticated method of the integration of the disciplines but does not provide the detailed content and methods for the domains Preliminary A. Architecture Vision B. Business Architecture C. Information Systems Architectures F. Migration Planning D. Technology Architecture E. Opportunities & Solutions G. Implementation Governance H. Architecture Change Management Requirements Management • The business “hat” is worn in these phases since it involves the innovate, mix and assemble activities • The strength of the business architect in this space is understanding the context and applying the right tools for that context • At this point it is advantageous to introduce the motivation model, with specific reference focus as to how the customer experience drives out the outcomes in the motivation model. • The capability model often does not resonate here - so the introduction of the underlying resource mix is more effective e.g.. People, Process and tools • A First iteration of these phases drives out the key enterprise differentiation resources required to reach the outcomes • A Second iteration drives out the products and services model (4P’s - Product, Place, Price & Promotion) and what cross functional resources we need to deliver these • Journey management is a crucial aspect of the business architect during this phase • Some limited BABOK and BIZBOK techniques support this area
  • 49. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 49 A METHOD OF EXECUTION The Business Architect wears two hats when executing through this method Preliminary A. Architecture Vision B. Business Architecture C. Information Systems Architectures F. Migration Planning D. Technology Architecture E. Opportunities & Solutions G. Implementation Governance H. Architecture Change Management Requirements Management • The business architect wears the architecture “hat” in these phases since they involve the reliability and utility activities • The business architect has to understand architecture in order to apply it and help the teams downstream • This space requires more of the traditional architecture models - the people, process and tools resources can now be assembled and clustered into capabilities • The architecture community is strong in this space but tends to be weak at requirements management across the whole process • Techniques and resources within the BizBok will support the business architect efforts within these phases • There are a number of techniques within the BABOK that the business analyst will use in supporting the business architect across these phases
  • 50. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 50 K WHY WHAT HOW WHO WHERE WHEN
  • 51. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 51 K
  • 52. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 52 CAPABILITY ASSESSMENT Assess the readiness of your architecture capabilities to enable your services
  • 53. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 53 K
  • 54. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 54 K
  • 55. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 55 ARCHITECTURE DEMAND ANALYSIS
  • 56. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 56 SOURCING STRATEGY D E L E G AT E PA R T N E R M A N A G E C O R E HIGH HIGH REQUIRED ORGANISATIONALINTIMACY S E R V I C E D E M A N D Solution design and reviewStrategic Planning Vendor management Costing and estimation Technology management Technical SME Business Analysis Portfolio Management LEGEND RESOURCE POOL Large (>10FTE) Medium (<10FTE) Small (<2FTE) OWNERSHIP Internal External
  • 57. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 57 K RoadmapCurrent Strategy and Architecture Team Jan 14 Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Sample Strategy and Architecture Team Roadmap – Roles Services, and Capabilities Roadmap Version: 1.0.0 Created: 28/04/2014 by Enterprise Architects Updated: 14/05/2014 by Enterprise Architects Sources: Description: Provides a view of the roadmap of activities necessary to realise the future state architecture. The primary intent of the roadmap is to inform the detailed program of work. Concerns Addressed: What does the program of work look like? Where are the dependencies across the program of work? How does the program of work align to the IT Department objectives and principles? Stakeholders: IT Executives, Strategy and Architecture Team Manager, Architects, Business Executives, Business Managers © Enterprise Architects (Vic) Pty Ltd 2014 Horizon 1 · Understand what Business needs and the role IT should play · Fix internal process bottlenecks, deliver some quick wins · Design appropriate organisation & processes for future Horizon 2 · Build the IT capability to deliver what the business needs (people, structure, governance, technology, focus) · Support Transition Activities Horizon 3 · Put the IT capability into action to deliver transformational results Current Services Current State Capabilities Owns and governs Strategy & Architecture Manager Practice CoordinatorPrincipal IT Architect Enterprise Architect – Digital & Analytics Enterprise Architect - Security Lead Architect / Senior Solution Architect Solution Architect Owns and governs Owns and governs Owns and governs Owns and governs Business Solutions Architect Enterprise Architect – Applications & Integration Enterprise Architect – Technology Enterprise Architect – Information Strategy Development Blueprint Management Roadmap Management Strategic Change Program Development IS Asset Lifecycle Management Solution Delivery Management Solution Architecture Delivery Stakeholder Value Analysis Architecture Governance Principles Management Standard Management Policy Management IT Architecture Project Governance Architecture Requirements Management Architecture Risk Assessment Compliance Management IT Architecture Review Board Management Technology Watch Trend Analysis IT Architecture Change Management Solution Architecture Options Analysis Current State Application Architecture Management Target State Application Architecture Development Architecture Impact Assessment Current State Information Architecture Management Current State Technology Architecture Management Current State Security Architecture Management Target State Information Architecture Development Target State Technology Architecture Development Target State Security Architecture Development Capture Current State Business Architecture Capture Target State Business Architecture IT Architecture Roadmap Development IT Architecture Portfolio Management IT Transition Architecture Management Proposed Strategy & Architecture Team Target Services Target State Capabilities Owns and governs Strategy & Architecture Manager Practice CoordinatorPrincipal IT Architect Enterprise Architect – Digital & Analytics Enterprise Architect – Security Lead Architect / Senior Solution Architect Solution Architect Owns and governs Owns and governs Owns and governs Owns and governs Business Solutions Architect Enterprise Architect – Applications & Integration Enterprise Architect – Technology Enterprise Architect – Information Strategy Development Blueprint Management Roadmap Management Strategic Change Program Development IS Asset Lifecycle Management Solution Delivery Management Solution Architecture Delivery Stakeholder Value Analysis Architecture Governance Principles Management Standard Management Policy Management IT Architecture Project Governance Architecture Requirements Management Architecture Risk Assessment Compliance Management IT Architecture Review Board Management Technology Watch Trend Analysis IT Architecture Change Management Solution Architecture Options Analysis Current State Application Architecture Management Target State Application Architecture Development Architecture Impact Assessment Current State Information Architecture Management Current State Technology Architecture Management Current State Security Architecture Management Target State Information Architecture Development Target State Technology Architecture Development Target State Security Architecture Development Capture Current State Business Architecture Capture Target State Business Architecture IT Architecture Roadmap Development IT Architecture Portfolio Management IT Transition Architecture Management EngagementPracticeBuildingExecution&DeliveryGovernance 1/06/2014 - 1/03/2015 Communications Strategy 1/03/2015 - 1/12/2015 IT Department Socialisation and Awareness Campaign 1/03/2014 - 1/06/2014 Operating Model Development Roles – Existing Roles – Non-Existent Services – Offered Services – Partially Offered Services – Not Offered ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Non-Existent ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – initial ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Developing ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Defined ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Managed ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Optimising Roles – Non-Existent Services – Offered Services – Partially Offered Services – Not Offered ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Non-Existent ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – initial ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Developing ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Defined ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Managed ProcessPeople Info. Tech. N/A N/AN/A N/A Capability Maturity – Optimising Roles – Existing 1/06/2014 - 1/09/2014 Onboarding and Provisioning Approach 1/03/2015 - 1/09/2015 Knowledge Management and Architecture Repository strategy 1/12/2015 - 1/09/2016 Mature Portfolio Management 1/06/2015 - 1/12/2015 Current State Blueprinting 15/09/2015 - 1/03/2016 Target state Blueprinting 1/03/2016 - 1/09/2016 Architecture Roadmapping 1/12/2014 - 1/06/2015 Enrich Architecture Governance 1/12/2015 - 1/12/2016 Business Socialisation 1/03/2017 - 1/09/2017 1/12/2016 - 1/09/2017 Business Embedment 1/09/2014 - 1/03/2015 Architecture Process Specification 1/03/2016 - 1/09/2016 1/12/2015 - 1/09/20161/03/2015 - 1/12/2015 Build Program Architecture Capability 1/06/2015 - 1/03/2016 Uplift Solution Architecture Capability 1/12/2015 - 1/06/2016 Architecture Strategy Definition 1/09/2016 - 1/03/2017 Embed Technology Innovation ProjectsProjects Continuous Improvement Activities Initiative Dependency Iteration and Collaboration PrinciplesObjectives & Themes Architecture Principles Principle BP01: Apply Principles Universally Principle BP02: Proactive Business Leadership Principle BP03: Recognise IT Department Responsibility Principle BP04: Manage Enterprise Debt Value (EDV) Principle BP05: Protect organisation DNA Principle BP06: Think Strategically Principle BP07: Business Continuity, Disaster Recovery and Contingency Planning Principle BP08: Compliance Principle BP09: Have a Sound Business case Principle BP10: Reduce Complexity Principle BP11: Avoid Under/Over Engineering Principle BP12: Be Service Oriented Principle BP13: Reduce Repetitive Manual Processes Principle BP14: Open Integration Principle AP01: Ease-of-Use Principle AP02: Configure before Customisation Principle AP03: Reuse before Lease before Buy before Build Principle AP04: Application Security Principle DP01: Data is an Asset Principle DP02: Data Sharing Principle DP03: Data Accessibility Principle DP04: Common Vocabulary Principle DP05: Data Security Principle TP01: Increase Technology Independence Principle TP02: Reduce Technology Diversity Business Principles Application Principles Data Principles Technology Principles Strategy Architecture Team Drivers Vision Mission The Strategy and Architecture team applies IT architectural thinking across the enterprise, and enables sustainable competitive advantage by identification and design of the organisation’s IT assets ensuring they are fully leveraged to add value and meet the strategic agenda. The Strategy & Architecture team will be a valued partner of the Business Units, and contribute to business value by enabling the enterprise though provision of differentiated and innovative IT services and solutions to achieve the organisation’s vision. The IT Department needs to effectively respond to, influence and deliver the strategic IT needs of the organisation’s Business Units Develop an architecture that supports the target TCO for the organisation Minimise the operational risk associated with the organisation’s architecture S&A a trusted advisor to the business units, maximising leverage and growth of new and existing IT assets, to enable competitive differentiation and realisation through strong alignment of IT and Business group strategies. Remove redundancy through rationalisation across the architecture Realise operational efficiency through the simplification of the architecture Introduce flexibility, agility and opportunity to innovate through an architecture that enables the organisation to effectively and proactively respond to the business environment and demands Establish manageable IT controls to effectively respond to market factors Draw attention and focus to the role of IT in the context of Strategic, Business Critical and Differentiation opportunities and initiatives. S&A a key influencer in Business Capability planning and realisation, ensuring alignment of the project portfolio to enterprise goals. Enable differentiated Technology and Business service offerings that are aligned to Business and Customer criticality and impact. Provide a sustainable architecture for the organisation delivering operational stability Trusted advisor during procurement of Vendor and Partner IT services, providing insight and governance into organisational fit, impact and operational and architecture risk profiling. The organisation’s IT architecture enables compliance with industry, regulatory and contractual obligations. creates creates creates creates creates creates creates creates creates creates Theme 10: Adhere to Risk & Regulatory Compliance T10 Theme 9: Inform Vendor Procurement T9 Theme 8: Uplift Governance Processes T8 Theme 7: Foster Innovation Agenda T7 Theme 6: Mature the S&A Practice T6 Theme 5: Reduce IT Department Operational Costs T5 Theme 4: Drive “Fit for Purpose” Design and Focus T4 Theme 3: Improve Portfolio Planning & Design T3 Theme 2: Influence Strategy Development T2 Theme 1: Organisational Engagement T1 The S&A Mandate and Service offering are well communicated and understood across the organisation. S&A viewed as 'key advisors' by Business stakeholders and provide advice on best practice to apply Technology solutions to solve business problems. Focus is shifted to initiatives and opportunities that target major business value. Able to identify key gaps in IT Department capabilities and develop a business case for investment prioritisation to resolve. S&A is able to optimally shape the Portfolio Planning Design to maximise investment and business outcomes. Defined a useable Reference Architecture to support Portfolio planning. Identifies business critical Systems and Applications. Applications enhancements are aligned with Criticality. Opportunities to reduce the IT Department’s cost profile and complexity are identified and are built into investment and portfolio plans. Define how to build and represent enterprise architecture across the organisation. Improvement opportunities are identified and improve use, quality and efficiency across Applications, Technologies and Information. Deep awareness of Technology Industry Trends, practices and Solutions. S&A able to proactively match innovation opportunities to business problems. The Enterprise architecture influences procurement and negotiations with Vendors. S&A leads a culture change across the IT Department and 'fosters' an innovation culture. Provide Technology solutions that match Business Needs. Establishes the Strategic Steering committee with a purpose to govern strategy and roadmaps. Defines a fit for purpose Architecture to meet regulatory and compliance requirements and agreed risk profiles. T1 T1 T1 T1 T10T9T5T4 T5T4 T9T5T3 T7 T2 T6 T3 T6T4 T8 T6 T6 T6 T6 ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Engagement Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support for Enterprise Strategy ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support for Projects ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support for Programs & Portfolio Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Solution Architecture Development ProcessPeople Info. Tech. N/A N/AN/A N/A Program Architecture Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Project Architecture Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Quality Assurance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Technology Research ProcessPeople Info. Tech. N/A N/AN/A N/A Technology Innovation ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Blueprint Development Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Roadmap Development & Management ProcessPeople Info. Tech. N/A N/AN/A N/A Program Architecture Development ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support Program Inception ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Budget & Estimate Development ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Repository Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Demand Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture SLA Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Talent & Resource Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategic Vendor Engagement ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Stakeholder Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Communication Strategy & Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Improvement ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Partner Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Development ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Engagement Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support for Enterprise Strategy ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support for Projects ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support for Programs & Portfolio Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Solution Architecture Development ProcessPeople Info. Tech. N/A N/AN/A N/A Program Architecture Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Project Architecture Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Quality Assurance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Technology Research ProcessPeople Info. Tech. N/A N/AN/A N/A Technology Innovation ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Blueprint Development Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Roadmap Development & Management ProcessPeople Info. Tech. N/A N/AN/A N/A Program Architecture Development ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Support Program Inception ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Budget & Estimate Development ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Governance ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Repository Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Demand Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture SLA Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Talent & Resource Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategic Vendor Engagement ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Stakeholder Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Communication Strategy & Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Improvement ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Partner Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Practice Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Development
  • 58. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 58 THE BUSINESS ARCHITECTURE- LED APPROACH
  • 59. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 59 ARCHITECTURE PRACTICE MATURITY ISOLATED OPTIMIZING LOSING FRAGMENTED INTEGRATION IN THE ORGANIZATION LEVELOFARCHITECTURALTHINKING L O W H I G H LOWHIGH
  • 60. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 60 DESIGNING FOR VALUE › High maturity organizations have a clear linkage between Business architecture, strategic goals, and performance management › These organizations also have a feedback loop which helps measure the progress towards objectives › This feedback loop will also inform the next iteration of business strategy and architecture. Value based management, value creation and performance.
  • 61. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 61 APPLYING A BUSINESS ARCHITECTURE -LED APPROACH › Allows the enterprise programs to develop consistency in describing the capabilities required to meet business objectives. › Can be used to demonstrate: » A natural information sequence across the business » Strategic Value » Maturity of capability » Current in-flight project BUSINESS CAPABILITY ANCHOR MODEL › It provides traceability and captures mission and vision, strategies, goals, tactics and objectives › Offers a clear articulation of business strategy in order to identify and assess required business capabilities BUSINESS MOTIVATION MODEL › Allows stakeholders to document current and future state business models › Enables testing of conventions and innovations to reveal opportunities, threats and disruptive strategies BUSINESS MODEL CANVAS
  • 62. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 62 Increase price Increase volume Improve mix Improve process Reduce cost of inputs Improve warehouse utilisation Increase productivity Decrease staffing Optimize scheduling Optimize physical network Decrease staffing Use alternative distribution Lower Customer Service & Order Management Costs Lower I/S costs Lower Finance / Accounting costs Lower HR costs Improve capital planning/ investment process Reduce inventories Reduce A/R increase A/P o Profit-driven marketing efforts: • Target “best” customers • Offer “best” product mix • Improve pricing management • Proactive production planning for inventory management • Most profitable capacity allocation/utilization o Reduced sales management layers o Focus on high-profit accounts o Improved inventory flow visibility • Lower transportation costs • Higher facilities utilization • Less “fire fighting” o Better carrier evaluation/mgmt. o Higher quality Customer Service o Improved Supply Chain visibility • Improved order fill rates • Significantly lower cost • More consistent service • Faster problem resolution o Improved capital stewardship • Increased capital productivity • Reduced inventory investment • Reduced receivables investment o Automated PO requisitions o Improved information for evaluating vendors o Automation of some scheduling functions o Single point of entry eliminates data re-entry and improves accuracy o Faster data reconciliation o Automated billing processes o Automated payroll processes o Moderately lower safety stock inventory o Moderately improved A/R and A/P management Increase revenues Decrease costs Reduce selling costs Reduce distribution costs Reduce administrative costs Increase gross profit Decrease operating expenses Capital deployment Cost of capital Increase net operating profit after tax (NOPAT) (I/S) Improve capital allocation (B/S) Enterprise Value Map VALUE BASED DELIVERY VALUE LEVERS TRANSFORMATION BENEFIT (Outcome) AUTOMATION BENEFIT
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  • 65. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 65 BUSINESS CAPABILITY MODEL WITH STRATEGIC OVERLAY BUSINESS CAPABILITY MODEL WITH CURRENT MATURITY OVERLAY BUSINESS CAPABILITY MODEL WITH PAIN POINTS BUSINESS CAPABILITY MODEL WITH INFLIGHT PROJECTS Am I over or underspending? Is my current investment portfolio dealing with tactical issues? Is my strategy aligned with management issues / focus areas? Am I able to achieve my strategy? Capability models and overlays can reveal the answers to important business questions. CAPABILITY MODEL OVERLAYS
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  • 68. C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 68 OUR LOCATIONS

Editor's Notes

  1. Digital disruption is shifting business model design from a focus on product profitability to a stronger focus on customer experience and value. This webinar will look at environmental pressures and identify how to use business architecture and business design to address these changes.
  2. Wreaked havoc on the publishing, communications, and entertainment industries as more and more information is being made available nearly free to billions of people. Today, more than one-third of the human race is producing its own information on relatively cheap cellphones and computers and sharing it via video, audio, and text at near zero marginal cost in a collaborative networked world. The zero marginal cost revolution is beginning to affect other commercial sectors , including renewable energy, 3D printing in manufacturing, and online higher education . There are already millions of “prosumers”— consumers who have become their own producers— generating their own green electricity at near zero marginal cost around the world. It’s estimated that around 100,000 hobbyists are manufacturing their own goods using 3D printing at nearly zero marginal cost. Meanwhile, six million students are currently enrolled in free Massive Open Online Courses (MOOCs ) that operate at near zero marginal cost and are taught by some of the most distinguished professors in the world, and receiving college credits. These sectors are riding exponential growth curves, not unlike the exponential curve that reduced the marginal cost of computing to near zero over the past several decades. Within the next two to three decades, prosumers in vast continental and global networks will be producing and sharing green energy as well as physical goods and services, and learning in online virtual classrooms at near zero marginal cost, bringing the economy into an era of nearly free goods and services. Rifkin, Jeremy (2014-04-01). The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism
  3. This often leads to misalignment across the enterprise and often results in incorrect apportionment of capex across the project portfolio... Project Spend (Capex) occurs in the areas that are often not strategic in nature It also creates a hindrance for enterprise wide planning decisions Planning decisions are not informed by a coherent enterprise view of the problem space This also impacts technology decisions The application and technology portfolio is often tactically aligned to business or purely technology driven Understand the value drivers and corresponding leverage points that drive the strategy Focus on clearly linking the strategy to operations through business capabilities. Establish target values that are tied to the project portfolio and ensure business architects provide project oversight.
  4. Unification of the cross enterprise disciplines Pioneer the development of an enterprise planning discipline that works across PPT, Strategy funding and delivery
  5. SEE:Describe his environment (competitors, partnerships, customers, the other offers it uses) SAY and DO:What is his behavior and what is his guideline? What does he say to the others? HEAR:Who influences him? Does he have a purchasing advisor? Where does he search information about your products? THINK and FEEL:What are the issues he is facing? What is really important? PAINS:What are his major obstacles? What risks does he refuse to take? What does he dread? GAINS:What are his goals? What does he want to achieve and how?-
  6. As architects you always needs to be able to understand the next level up in context A building architect will always understand the context of the room and the house and the neighbourhood etc. This is a systemic apprchac
  7. Business Model diagram Wrap the people process and tools into clusters and develop the capability model top down Add the core headroom diagram in here to discuss the market model Add the strategy game board in here to discuss the products and services model – when do we go vertical and when do we go horizontal What people process and tools - do we need to drive out those products and services Cluster and group Next iteration – PPT + $ -> outcome Biz Arch is focussed on the P and AV Needs a spin down BCD so that the architects and business analysts can do their job properly but the key value for the business is the PAV The business architect is less about churning out the artefacts and more about managing the journey and change The business analysts is more about churning out the artefacts and requirements management What we have noticed in that transformation projects the business architects tend to steer more away from architecture and more into doing and managing the change BCD and must occur in the background since this is what the architecture community wants PAV occurs in the foreground since this is what the business stakeholders are looking for Therefore Biz Arch PAV with support from the BA Domain Architects BCD Solution Architects - E&F Project Managers – E&F BA’s – requirements management Enterprise Architect spans the whole lot.