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FROMHEREON.COM
ENTERPRISEARCHITECTS.COM
UNDERSTANDING
BUSINESS ARCHITECTURE
V3.7 April 2016
JUDITH OJA -GILLAM
Strategic Business Architect
Applied Business Architecture
P / 2
FromHereOn is an international professional services
firm specializing in strategy & architecture services
ABOUT FROMHEREON
Our Enterprise Architecture
Practice has evolved from its
foundations in our parent
company Enterprise Architects.
Over 12+ years we have helped
many clients across a wide range
of industries to build market-
leading architecture teams.
Our core value proposition is to
help clients unlock the value of
their investments using the
principles of architecture.
We are experts in architecture
with a belief that architecture is
important and, when done well,
will profoundly improve corporate
performance – quite simply,
Architecture is in our DNA.
P / 3
At EA Learning, we are passionate about equipping
individuals with the knowledge, tools and capabilities to
add tangible value to the businesses that our customers
work in. We offer a broad range of certification and applied
learning courses to give our attendees the credentials and
toolkits to be successful in their careers..
We are dedicated to supporting the advancement of the
industries that we work in and as part of this we are proud
to have supported a number of learning initiatives and
standards body developments with organizations such as
the Open Group, IIBA and Open Universities Australia.
Ourgoalisforeveryattendeetowalkawayattheendofa
trainingcoursewithasetoftools,techniquesand
approachesthattheycanputintopracticeintheirrole.
EA LEARNING SERVICES
P / 4
OUR APPROACH –
“ARCHITECTURE THINKING”
1
Establish Consensus
for Strategy
2
Define A Common
Reference Point
3
Take A Coherent Approach
to Solutions
4
Build A Strategically
Aligned Roadmap
MOTIVATION MODEL BUSINESS MODEL
SERVICE MODEL
CAPABILITY MODEL
People
ROADMAP
GOVERNANCE
* Closed feedback
loop to
Motivation Model
Information
Technology
Process
MARKET MODEL
MEANS ASSESSMENT
INFLUENCERS
ASSESSMENT
MEANS ENDS
MACRO
ENVIRONMENT
INDUSTRY
SCAN
SWOT PERFORMANCE
• Financial
• Customer
• Internal (current)
• Internal (long-term)
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It is about giving strategic business objectives
greater clarity and structure by describing how
they translate into operations.
The goal of Business Architecture is to
operationalize business strategy, thereby helping
business leaders avoid a risky leap directly from
strategy to specific project investments.
Weliketorefertoitas
“Thedesignofbusiness”.
WHAT IS BUSINESS
ARCHITECTURE?
P / 6
Creating close alignment between
business goals and IT strategy
WHY BUSINESS ARCHITECTURE?
Business Architecture provides the context for
technology, aligning the technical architecture
domains to long term business need.
Business Architecture means:
• A common language, founded in business
terms, not IT-speak
• A more joined-up approach to assessment
and selection of new projects
• IT investments are directly aligned to
business goals
• Greater opportunities for reuse
P / 7
BUSINESS ARCHITECTURE CONNECTS
STRATEGY TO IMPLEMENTATION
IMPLEMENTATION
STRATEGY
BUSINESS
ARCHITECTURE
IMPLEMENTATION
STRATEGY
BUSINESS
ARCHITECTURE
P / 8
FAILURE POINTS BETWEEN
STRATEGY & IMPLEMENTATION
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

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?
P / 9
BUSINESS ARCHITECTURE
OR I.T. ARCHITECTURE?
Value increases as the mandate increases.
EA = IT Architecture
Improve project performance
EA = Enterprise-Wide
IT Architecture(EWITA)
Improve IT performance
EA = Business Architecture (BA) + EWITA
Improve Business Performance
EA = Strategic Enabler +
BA + EWITA
Improve Market
Performance
(ShareholderValue)
A
B
VALUE
MANDATE
C
E
EA = Product Architecture + Business
Architecture(BA) + EWITA
Improve Product/ServicePerformance
D
Business Architecture is
seen as a positive
progression away from IT
Maximize Product profitability
Maximize market share
Maximize customer lifetime value
P / 10
Building coherence requires an understanding of
the components of a Business Model, and how to
assemble them in a manner that is innovative
and differentiating whilst maintaining stability.
A Coherent Business Model is one that is
synchronized around:
> its market position,
> its product and service portfolio; and
> its most distinctive strategic capabilities
> All of the above working together as
a system
THE GOAL OF A
GOOD BUSINESS
MODEL IS TO
CREATE COHERENCE
THE ENVIRONMENT
THE BUSINESS MODEL
MARKET
MODEL
PRODUCTS
AND SERVICE
MODEL
OPERATING
MODEL
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology
P / 11
STRATEGIC COHERENCE:
CAPABILITY BASED PLANNING
Capability driven architectures are designed to
support the strategic objectives of an organization.
Capabilities consist of people, process, Information
and technology
MISSION
STRATEGIES
TACTICS
VISION
GOALS
OBJECTIVES OUTCOME
CAPABILITY
People
Process
Technology
Information
To fully understand a capability all these
components must exist regardless of their
maturity level
P / 12
Some Definitions…
WHAT IS A CAPABILITY?
An ability that an organization,
person, or system possesses.
Capabilities are typically
expressed in general and high-
level terms and typically require a
combination of organization,
people, processes, and technology
to achieve. For example,
marketing, customer contact, or
outbound telemarketing.
– The Open Group
The power or ability to
do something.
– Oxford English Dictionary
Measure of the ability of an
entity (department, organization,
person, system) to achieve its
objectives, specially in relation to
its overall mission.
– Business Dictionary
The ability to perform or achieve
certain actions or outcomes
through a set of controllable and
measurable faculties, features,
functions, processes, or services.
– Wikipedia
P / 13
Some Guidelines…
IDENTIFYING CAPABILITIES
> All enterprises have
‘capabilities’: they are what the
enterprise must be able to DO
in order to fulfill its mission.
> Capabilities are expressed as
outcomes and should be
agnostic of technology,
product, organizational unit, etc.
> Capabilities will tend to persist
over time.
> Capabilities can be described in
a simple one-page view…
the Business Capability Model.
P / 14
Thecapabilitymodelrepresentsthe"map"oftheorganization…
THE BUSINESS CAPABILITY MODEL
…and like a map, the capability model can have many overlays, each communicating a different
message based on the same underlying structure.
P / 15
TYPICAL CAPABILITY MODEL ‘OVERLAYS’INSURE Co. Business Capability Model with Current Maturity Overlay Business Capability Model
Version: 3.0.0
Created: 18/03/2014 by Enterprise Architects
Updated: 15/05/2014 by Enterprise Architects
Sources:
Description: A Business Capability Model provides an anchor point for defining the organisation on a page, giving the stakeholders an overall view of the business. This overlay describes the level of maturity
of the capabilities that have been assessed.
Concerns Addressed: What are the capabilities required to support the strategic direction and deliver consistent outcomes? What are their levels of maturity?
Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Solution Managers, Solution Designers, IT Operations, Project Teams and Architects
© Enterprise Architects (Vic) Pty Ltd 2014
Maturity
Operations
Core Value Creating Capabilities
Market Development and Sourcing Productising and Bundling Sales and Distribution Servicing
Shared Services
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Low Maturity
(Ad hoc)
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Low-Medium
Maturity
(Developing)
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Medium
Maturity
(Repeatable)
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Medium-High
Maturity
(Defined/
Managed)
ProcessPeople Info. Tech.
N/A N/AN/A N/A
High Maturity
(Optimised)
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Maturity
Unknown (Not
Assessed)
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Marketing
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Customer Service
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Business Development & Sales
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Client Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Manufacturing & Maintenance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Service
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Operations Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategy & Execution
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Finance & Actuarial
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Human Resource Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Information Technology Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Underwriting and Risk Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Legal & Compliance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
External Relationship Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Performance Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Value Transaction Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Process Execution
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Document Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Resource Allocation
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Business Process Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Knowledge Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Decisional & Business
Intelligence
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Premium Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Payments Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
New Business
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Underwriting
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Policy Owner Service (POS)
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Recurring Claims
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Policy Administration
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Consolidated Reporting
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Lump Sum Claims
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Delivery Method Registration
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Claims Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Enquiries
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Complaints Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Retention
ProcessPeople Info. Tech.
N/A N/AN/A N/A
On-boarding
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Adviser Remuneration
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Leads Generation
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Leads Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Broker Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Needs Analysis
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Selection
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Quotation & Illustration
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategic Pipeline
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Tactical Pipeline
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Policy Acquisition
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Application
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Tenders
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Specialist Training
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Client Servicing
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Partner Strategy & Support
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Renewals
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Consulting
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Dealership Relationship
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Sponsorship
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Client Communications
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Adviser Relationship
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Research
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Pricing
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Packaging
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Reinsurance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Market & Data Analytics
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Campaign Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product Launch
ProcessPeople Info. Tech.
N/A N/AN/A N/A
External Market
Communications
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Brand Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Promotions
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Advertising
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Internal Sales Tools
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Channel Marketing
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Operational Performance
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Operations Quality Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Technical Operations Training
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Employee
Development &
Training
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Employee
Retention
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Talent
Recruitment and
Sourcing
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Candidate
Assessment
and Selection
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Succession
Planning
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Talent
Development &
Training
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Employment
Offers &
Contracts
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Government &
Industry
Relationship
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Employee
Performance
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Workforce
Planning
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Talent
Redeployment
& Retirement
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Regulatory
Relationship
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Directors
Relationship
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Legal & Ethical
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
External
Administration
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Investor
Relationship
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Public Relations
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Product/
Channels
Profitability
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Management
Reporting
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Corporate Risk
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Underwriting
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Business
Continuity
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Internal Audit
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Reinsurance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Company
Secretary
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Due Diligence
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Advice
Provisioning
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Compliance
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Contract
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Architecture
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Application
Development
ProcessPeople Info. Tech.
N/A N/AN/A N/A
IT Service
Delivery
ProcessPeople Info. Tech.
N/A N/AN/A N/A
IT Security &
Risk
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Disaster
Recovery
ProcessPeople Info. Tech.
N/A N/AN/A N/A
IT Vendor
Relationship
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Process
Execution
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Infrastructure
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Investment
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Financial
Accounting
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Financial
Management &
Analysis
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Procurement
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Actuarial
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Statutory &
Regulatory
Reporting
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Capital
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Facilities
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Cash
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategy
Research
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Project Portfolio
Selection
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Benefits
Realisation
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Government
Policy
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategy
Management
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Project
Execution
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Enterprise
Architecture
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Strategy
Planning
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Project Portfolio
Prioritisation
ProcessPeople Info. Tech.
N/A N/AN/A N/A
Change
Management
> Commodity vs. Differentiating
Capabilities
> Strategic importance
> Organizational ‘owners’, FTE
numbers and costs
> Current / target Maturity levels
and gaps
> Pain Points
> Projects
> Technology and Applications
The more information we overlay
on the model, the more we learn…
P / 16
THE ROADMAP CHALLENGE…
“What are the changes between the current
state and the future state of the
architecture?”
“How are my strategic objectives being
realized through my architecture and
program of work?”
“What is my current investment roadmap to
achieve the required changes?”
“Where are the dependencies across the
program of work?”
Typical Stakeholder Concerns
P / 17
DEVELOPING A CAPABILITY-
DRIVEN ROADMAP
Coherence: technology change initiatives will also
impact the People and Process dimensions of the
Capabilities.
Capability Uplifts are often delivered in multiple
increments – these Capability uplifts can be grouped
into work packages.
A Business Architecture approach will provide clarity
on how different solution options will enable
capabilities….
….in turn creating traceability from strategy to
implementation.
Work
Packages
Work
Packages
Motivation
Business
Model
Capability
Model
Target
Architecture
Maturity &
Gaps
Work
Packages
Current
State
Work
Packages
Work
Packages
MOTIVATION
BUSINESS
MODEL
CAPABILITY
MODEL
TARGET
ARCHITECTURE
MATURITY &
GAPS
WORK
PACKAGES
CURRENT STATE
ARCHITECTURE
ROADMAP
‘ A N C H O R M O D E L S ’
People, Process,
Information,
Technology
P / 18
CAPABILITY INCREMENTS
Capability Maturity Uplift is often Delivered in Multiple Increments
C A P A B I L I T Y
C A P A B I L I T Y I N C R E M E N T
Individual
Collective
Training
Professional
Development
Concepts
Business
Processes
Information
Management
Infrastructure
Information
Technology
Equipment
P / 19
ANATOMY OF A ROADMAP
STRATEGIC
CONTEXT
STRATEGIC
OB J ECTIVES CHANGE D RIVERS
ARCHITECTURE
P RINCIP LES
TARGET STATE
STRATEGIC INITIATIVES
CURRENT
STATE
P / 21
HOW: EXECUTING BUSINESS ARCHITECTURE
Applied Business Architecture Training Course – Four Days
IDENTIFY
GOALS
& OBJECTIVES
UNDERSTAND
BUSINESS
MOTIVATION
PROTOTYPE
BUSINESS
MODEL
STRATEGIES
DEFINE
CAPABILITIES
ASSESS
CAPABILITIES
MATURITY
DEFINE FUTURE
STATE
CAPABILITIES
MATURITY
ASSESS
CURRENT
PROJECT
ACTIVITY
PLAN
TRANSITION
DEFINE
VALUE CHAIN
COMPONENTS
WORK
STREAMS
PROBLEM
DEFINITION
BUSINESS
SCENARIOS
OUTPUTS
MEANS TO END
BUSINESS
MOTIVATION
MODEL
BUSINESS MODEL
CANVAS
A VALUE SYSTEM
MODEL
A VALUE CHAIN
CAPABILITY
MODEL
STRATEGIC
OVERLAY
CAPABILITY
MODEL WITH
CURRENT
MATURITY
OVERLAY
CAPABILITY
MODEL WITH
TARGET MATURITY
OVERLAY
CAPABILITY
MODEL WITH
PROJECT
OVERLAY
MATURITY, IMPACT
AND IN-FLIGHT
MATRIX AND
DEVELOP THE
QUADRANT
GRAPHS
CAPABILITY
MODEL WITH
HOTSPOT
OVERLAY
SEQUENCING
MATRIX
TRANSITION PLAN
SUMMARIZED
ROADMAP VIEW
P / 22
RECAP
Business Architecture provides the link between
Strategy and Implementation.
Business Capabilities are an essential tool to help
us to look at the Business agnostically, speak a
common language and understand our strengths
and weaknesses in relation to strategy.
Linking programmes and projects to Business
Motivation (via Capabilities) provides traceability
from strategy to implementation.
BusinessArchitectureKeyPoints
P / 23enterprisearchitects.com
fromhereon.com
david.ohara@fromhereon.com training@enterprisearchitects.com

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Understanding Business Architecture

  • 1. P / 1 FROMHEREON.COM ENTERPRISEARCHITECTS.COM UNDERSTANDING BUSINESS ARCHITECTURE V3.7 April 2016 JUDITH OJA -GILLAM Strategic Business Architect Applied Business Architecture
  • 2. P / 2 FromHereOn is an international professional services firm specializing in strategy & architecture services ABOUT FROMHEREON Our Enterprise Architecture Practice has evolved from its foundations in our parent company Enterprise Architects. Over 12+ years we have helped many clients across a wide range of industries to build market- leading architecture teams. Our core value proposition is to help clients unlock the value of their investments using the principles of architecture. We are experts in architecture with a belief that architecture is important and, when done well, will profoundly improve corporate performance – quite simply, Architecture is in our DNA.
  • 3. P / 3 At EA Learning, we are passionate about equipping individuals with the knowledge, tools and capabilities to add tangible value to the businesses that our customers work in. We offer a broad range of certification and applied learning courses to give our attendees the credentials and toolkits to be successful in their careers.. We are dedicated to supporting the advancement of the industries that we work in and as part of this we are proud to have supported a number of learning initiatives and standards body developments with organizations such as the Open Group, IIBA and Open Universities Australia. Ourgoalisforeveryattendeetowalkawayattheendofa trainingcoursewithasetoftools,techniquesand approachesthattheycanputintopracticeintheirrole. EA LEARNING SERVICES
  • 4. P / 4 OUR APPROACH – “ARCHITECTURE THINKING” 1 Establish Consensus for Strategy 2 Define A Common Reference Point 3 Take A Coherent Approach to Solutions 4 Build A Strategically Aligned Roadmap MOTIVATION MODEL BUSINESS MODEL SERVICE MODEL CAPABILITY MODEL People ROADMAP GOVERNANCE * Closed feedback loop to Motivation Model Information Technology Process MARKET MODEL MEANS ASSESSMENT INFLUENCERS ASSESSMENT MEANS ENDS MACRO ENVIRONMENT INDUSTRY SCAN SWOT PERFORMANCE • Financial • Customer • Internal (current) • Internal (long-term)
  • 5. P / 5 It is about giving strategic business objectives greater clarity and structure by describing how they translate into operations. The goal of Business Architecture is to operationalize business strategy, thereby helping business leaders avoid a risky leap directly from strategy to specific project investments. Weliketorefertoitas “Thedesignofbusiness”. WHAT IS BUSINESS ARCHITECTURE?
  • 6. P / 6 Creating close alignment between business goals and IT strategy WHY BUSINESS ARCHITECTURE? Business Architecture provides the context for technology, aligning the technical architecture domains to long term business need. Business Architecture means: • A common language, founded in business terms, not IT-speak • A more joined-up approach to assessment and selection of new projects • IT investments are directly aligned to business goals • Greater opportunities for reuse
  • 7. P / 7 BUSINESS ARCHITECTURE CONNECTS STRATEGY TO IMPLEMENTATION IMPLEMENTATION STRATEGY BUSINESS ARCHITECTURE IMPLEMENTATION STRATEGY BUSINESS ARCHITECTURE
  • 8. P / 8 FAILURE POINTS BETWEEN STRATEGY & IMPLEMENTATION 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  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?
  • 9. P / 9 BUSINESS ARCHITECTURE OR I.T. ARCHITECTURE? Value increases as the mandate increases. EA = IT Architecture Improve project performance EA = Enterprise-Wide IT Architecture(EWITA) Improve IT performance EA = Business Architecture (BA) + EWITA Improve Business Performance EA = Strategic Enabler + BA + EWITA Improve Market Performance (ShareholderValue) A B VALUE MANDATE C E EA = Product Architecture + Business Architecture(BA) + EWITA Improve Product/ServicePerformance D Business Architecture is seen as a positive progression away from IT Maximize Product profitability Maximize market share Maximize customer lifetime value
  • 10. P / 10 Building coherence requires an understanding of the components of a Business Model, and how to assemble them in a manner that is innovative and differentiating whilst maintaining stability. A Coherent Business Model is one that is synchronized around: > its market position, > its product and service portfolio; and > its most distinctive strategic capabilities > All of the above working together as a system THE GOAL OF A GOOD BUSINESS MODEL IS TO CREATE COHERENCE THE ENVIRONMENT THE BUSINESS MODEL MARKET MODEL PRODUCTS AND SERVICE MODEL OPERATING MODEL  Markets  Industries  Customers  Market Segment  Channels  Customer Relationships  Value Proposition  Offering: Products / Services  Capabilities  Processes / Value Chains  Business Services  Functions  Data  Applications  Technology
  • 11. P / 11 STRATEGIC COHERENCE: CAPABILITY BASED PLANNING Capability driven architectures are designed to support the strategic objectives of an organization. Capabilities consist of people, process, Information and technology MISSION STRATEGIES TACTICS VISION GOALS OBJECTIVES OUTCOME CAPABILITY People Process Technology Information To fully understand a capability all these components must exist regardless of their maturity level
  • 12. P / 12 Some Definitions… WHAT IS A CAPABILITY? An ability that an organization, person, or system possesses. Capabilities are typically expressed in general and high- level terms and typically require a combination of organization, people, processes, and technology to achieve. For example, marketing, customer contact, or outbound telemarketing. – The Open Group The power or ability to do something. – Oxford English Dictionary Measure of the ability of an entity (department, organization, person, system) to achieve its objectives, specially in relation to its overall mission. – Business Dictionary The ability to perform or achieve certain actions or outcomes through a set of controllable and measurable faculties, features, functions, processes, or services. – Wikipedia
  • 13. P / 13 Some Guidelines… IDENTIFYING CAPABILITIES > All enterprises have ‘capabilities’: they are what the enterprise must be able to DO in order to fulfill its mission. > Capabilities are expressed as outcomes and should be agnostic of technology, product, organizational unit, etc. > Capabilities will tend to persist over time. > Capabilities can be described in a simple one-page view… the Business Capability Model.
  • 14. P / 14 Thecapabilitymodelrepresentsthe"map"oftheorganization… THE BUSINESS CAPABILITY MODEL …and like a map, the capability model can have many overlays, each communicating a different message based on the same underlying structure.
  • 15. P / 15 TYPICAL CAPABILITY MODEL ‘OVERLAYS’INSURE Co. Business Capability Model with Current Maturity Overlay Business Capability Model Version: 3.0.0 Created: 18/03/2014 by Enterprise Architects Updated: 15/05/2014 by Enterprise Architects Sources: Description: A Business Capability Model provides an anchor point for defining the organisation on a page, giving the stakeholders an overall view of the business. This overlay describes the level of maturity of the capabilities that have been assessed. Concerns Addressed: What are the capabilities required to support the strategic direction and deliver consistent outcomes? What are their levels of maturity? Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Solution Managers, Solution Designers, IT Operations, Project Teams and Architects © Enterprise Architects (Vic) Pty Ltd 2014 Maturity Operations Core Value Creating Capabilities Market Development and Sourcing Productising and Bundling Sales and Distribution Servicing Shared Services ProcessPeople Info. Tech. N/A N/AN/A N/A Low Maturity (Ad hoc) ProcessPeople Info. Tech. N/A N/AN/A N/A Low-Medium Maturity (Developing) ProcessPeople Info. Tech. N/A N/AN/A N/A Medium Maturity (Repeatable) ProcessPeople Info. Tech. N/A N/AN/A N/A Medium-High Maturity (Defined/ Managed) ProcessPeople Info. Tech. N/A N/AN/A N/A High Maturity (Optimised) ProcessPeople Info. Tech. N/A N/AN/A N/A Maturity Unknown (Not Assessed) ProcessPeople Info. Tech. N/A N/AN/A N/A Marketing ProcessPeople Info. Tech. N/A N/AN/A N/A Customer Service ProcessPeople Info. Tech. N/A N/AN/A N/A Business Development & Sales ProcessPeople Info. Tech. N/A N/AN/A N/A Client Development ProcessPeople Info. Tech. N/A N/AN/A N/A Product Manufacturing & Maintenance ProcessPeople Info. Tech. N/A N/AN/A N/A Product Service ProcessPeople Info. Tech. N/A N/AN/A N/A Operations Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy & Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Finance & Actuarial ProcessPeople Info. Tech. N/A N/AN/A N/A Human Resource Management ProcessPeople Info. Tech. N/A N/AN/A N/A Information Technology Management ProcessPeople Info. Tech. N/A N/AN/A N/A Underwriting and Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Legal & Compliance ProcessPeople Info. Tech. N/A N/AN/A N/A External Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Value Transaction Management ProcessPeople Info. Tech. N/A N/AN/A N/A Process Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Document Management ProcessPeople Info. Tech. N/A N/AN/A N/A Resource Allocation ProcessPeople Info. Tech. N/A N/AN/A N/A Business Process Management ProcessPeople Info. Tech. N/A N/AN/A N/A Knowledge Management ProcessPeople Info. Tech. N/A N/AN/A N/A Decisional & Business Intelligence ProcessPeople Info. Tech. N/A N/AN/A N/A Premium Management ProcessPeople Info. Tech. N/A N/AN/A N/A Payments Management ProcessPeople Info. Tech. N/A N/AN/A N/A New Business ProcessPeople Info. Tech. N/A N/AN/A N/A Underwriting ProcessPeople Info. Tech. N/A N/AN/A N/A Policy Owner Service (POS) ProcessPeople Info. Tech. N/A N/AN/A N/A Recurring Claims Management ProcessPeople Info. Tech. N/A N/AN/A N/A Policy Administration ProcessPeople Info. Tech. N/A N/AN/A N/A Consolidated Reporting ProcessPeople Info. Tech. N/A N/AN/A N/A Lump Sum Claims Management ProcessPeople Info. Tech. N/A N/AN/A N/A Delivery Method Registration ProcessPeople Info. Tech. N/A N/AN/A N/A Claims Management ProcessPeople Info. Tech. N/A N/AN/A N/A Enquiries ProcessPeople Info. Tech. N/A N/AN/A N/A Complaints Management ProcessPeople Info. Tech. N/A N/AN/A N/A Retention ProcessPeople Info. Tech. N/A N/AN/A N/A On-boarding ProcessPeople Info. Tech. N/A N/AN/A N/A Adviser Remuneration ProcessPeople Info. Tech. N/A N/AN/A N/A Leads Generation ProcessPeople Info. Tech. N/A N/AN/A N/A Leads Management ProcessPeople Info. Tech. N/A N/AN/A N/A Broker Management ProcessPeople Info. Tech. N/A N/AN/A N/A Needs Analysis ProcessPeople Info. Tech. N/A N/AN/A N/A Product Selection ProcessPeople Info. Tech. N/A N/AN/A N/A Quotation & Illustration ProcessPeople Info. Tech. N/A N/AN/A N/A Strategic Pipeline ProcessPeople Info. Tech. N/A N/AN/A N/A Tactical Pipeline ProcessPeople Info. Tech. N/A N/AN/A N/A Policy Acquisition ProcessPeople Info. Tech. N/A N/AN/A N/A Application ProcessPeople Info. Tech. N/A N/AN/A N/A Tenders ProcessPeople Info. Tech. N/A N/AN/A N/A Specialist Training ProcessPeople Info. Tech. N/A N/AN/A N/A Client Servicing ProcessPeople Info. Tech. N/A N/AN/A N/A Partner Strategy & Support ProcessPeople Info. Tech. N/A N/AN/A N/A Renewals ProcessPeople Info. Tech. N/A N/AN/A N/A Consulting ProcessPeople Info. Tech. N/A N/AN/A N/A Dealership Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Sponsorship ProcessPeople Info. Tech. N/A N/AN/A N/A Client Communications ProcessPeople Info. Tech. N/A N/AN/A N/A Adviser Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product Research ProcessPeople Info. Tech. N/A N/AN/A N/A Product Development ProcessPeople Info. Tech. N/A N/AN/A N/A Pricing ProcessPeople Info. Tech. N/A N/AN/A N/A Product Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product Packaging ProcessPeople Info. Tech. N/A N/AN/A N/A Reinsurance ProcessPeople Info. Tech. N/A N/AN/A N/A Market & Data Analytics ProcessPeople Info. Tech. N/A N/AN/A N/A Campaign Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product Launch ProcessPeople Info. Tech. N/A N/AN/A N/A External Market Communications ProcessPeople Info. Tech. N/A N/AN/A N/A Brand Management ProcessPeople Info. Tech. N/A N/AN/A N/A Promotions ProcessPeople Info. Tech. N/A N/AN/A N/A Advertising ProcessPeople Info. Tech. N/A N/AN/A N/A Internal Sales Tools ProcessPeople Info. Tech. N/A N/AN/A N/A Channel Marketing ProcessPeople Info. Tech. N/A N/AN/A N/A Operational Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Operations Quality Management ProcessPeople Info. Tech. N/A N/AN/A N/A Technical Operations Training ProcessPeople Info. Tech. N/A N/AN/A N/A Employee Development & Training ProcessPeople Info. Tech. N/A N/AN/A N/A Employee Retention ProcessPeople Info. Tech. N/A N/AN/A N/A Talent Recruitment and Sourcing ProcessPeople Info. Tech. N/A N/AN/A N/A Candidate Assessment and Selection ProcessPeople Info. Tech. N/A N/AN/A N/A Succession Planning ProcessPeople Info. Tech. N/A N/AN/A N/A Talent Development & Training ProcessPeople Info. Tech. N/A N/AN/A N/A Employment Offers & Contracts ProcessPeople Info. Tech. N/A N/AN/A N/A Government & Industry Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Employee Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Workforce Planning ProcessPeople Info. Tech. N/A N/AN/A N/A Talent Redeployment & Retirement ProcessPeople Info. Tech. N/A N/AN/A N/A Regulatory Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Directors Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Legal & Ethical Management ProcessPeople Info. Tech. N/A N/AN/A N/A External Administration Management ProcessPeople Info. Tech. N/A N/AN/A N/A Investor Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Public Relations Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product/ Channels Profitability ProcessPeople Info. Tech. N/A N/AN/A N/A Management Reporting ProcessPeople Info. Tech. N/A N/AN/A N/A Corporate Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Underwriting ProcessPeople Info. Tech. N/A N/AN/A N/A Business Continuity Management ProcessPeople Info. Tech. N/A N/AN/A N/A Internal Audit ProcessPeople Info. Tech. N/A N/AN/A N/A Reinsurance ProcessPeople Info. Tech. N/A N/AN/A N/A Company Secretary ProcessPeople Info. Tech. N/A N/AN/A N/A Due Diligence ProcessPeople Info. Tech. N/A N/AN/A N/A Advice Provisioning ProcessPeople Info. Tech. N/A N/AN/A N/A Compliance ProcessPeople Info. Tech. N/A N/AN/A N/A Contract Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Management ProcessPeople Info. Tech. N/A N/AN/A N/A Application Development ProcessPeople Info. Tech. N/A N/AN/A N/A IT Service Delivery ProcessPeople Info. Tech. N/A N/AN/A N/A IT Security & Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Disaster Recovery ProcessPeople Info. Tech. N/A N/AN/A N/A IT Vendor Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Process Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Infrastructure ProcessPeople Info. Tech. N/A N/AN/A N/A Investment ProcessPeople Info. Tech. N/A N/AN/A N/A Financial Accounting ProcessPeople Info. Tech. N/A N/AN/A N/A Financial Management & Analysis ProcessPeople Info. Tech. N/A N/AN/A N/A Procurement Management ProcessPeople Info. Tech. N/A N/AN/A N/A Actuarial ProcessPeople Info. Tech. N/A N/AN/A N/A Statutory & Regulatory Reporting ProcessPeople Info. Tech. N/A N/AN/A N/A Capital Management ProcessPeople Info. Tech. N/A N/AN/A N/A Facilities Management ProcessPeople Info. Tech. N/A N/AN/A N/A Cash Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Research ProcessPeople Info. Tech. N/A N/AN/A N/A Project Portfolio Selection ProcessPeople Info. Tech. N/A N/AN/A N/A Benefits Realisation ProcessPeople Info. Tech. N/A N/AN/A N/A Government Policy ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Management ProcessPeople Info. Tech. N/A N/AN/A N/A Project Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Enterprise Architecture ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Planning ProcessPeople Info. Tech. N/A N/AN/A N/A Project Portfolio Prioritisation ProcessPeople Info. Tech. N/A N/AN/A N/A Change Management > Commodity vs. Differentiating Capabilities > Strategic importance > Organizational ‘owners’, FTE numbers and costs > Current / target Maturity levels and gaps > Pain Points > Projects > Technology and Applications The more information we overlay on the model, the more we learn…
  • 16. P / 16 THE ROADMAP CHALLENGE… “What are the changes between the current state and the future state of the architecture?” “How are my strategic objectives being realized through my architecture and program of work?” “What is my current investment roadmap to achieve the required changes?” “Where are the dependencies across the program of work?” Typical Stakeholder Concerns
  • 17. P / 17 DEVELOPING A CAPABILITY- DRIVEN ROADMAP Coherence: technology change initiatives will also impact the People and Process dimensions of the Capabilities. Capability Uplifts are often delivered in multiple increments – these Capability uplifts can be grouped into work packages. A Business Architecture approach will provide clarity on how different solution options will enable capabilities…. ….in turn creating traceability from strategy to implementation. Work Packages Work Packages Motivation Business Model Capability Model Target Architecture Maturity & Gaps Work Packages Current State Work Packages Work Packages MOTIVATION BUSINESS MODEL CAPABILITY MODEL TARGET ARCHITECTURE MATURITY & GAPS WORK PACKAGES CURRENT STATE ARCHITECTURE ROADMAP ‘ A N C H O R M O D E L S ’ People, Process, Information, Technology
  • 18. P / 18 CAPABILITY INCREMENTS Capability Maturity Uplift is often Delivered in Multiple Increments C A P A B I L I T Y C A P A B I L I T Y I N C R E M E N T Individual Collective Training Professional Development Concepts Business Processes Information Management Infrastructure Information Technology Equipment
  • 19. P / 19 ANATOMY OF A ROADMAP STRATEGIC CONTEXT STRATEGIC OB J ECTIVES CHANGE D RIVERS ARCHITECTURE P RINCIP LES TARGET STATE STRATEGIC INITIATIVES CURRENT STATE
  • 20. P / 21 HOW: EXECUTING BUSINESS ARCHITECTURE Applied Business Architecture Training Course – Four Days IDENTIFY GOALS & OBJECTIVES UNDERSTAND BUSINESS MOTIVATION PROTOTYPE BUSINESS MODEL STRATEGIES DEFINE CAPABILITIES ASSESS CAPABILITIES MATURITY DEFINE FUTURE STATE CAPABILITIES MATURITY ASSESS CURRENT PROJECT ACTIVITY PLAN TRANSITION DEFINE VALUE CHAIN COMPONENTS WORK STREAMS PROBLEM DEFINITION BUSINESS SCENARIOS OUTPUTS MEANS TO END BUSINESS MOTIVATION MODEL BUSINESS MODEL CANVAS A VALUE SYSTEM MODEL A VALUE CHAIN CAPABILITY MODEL STRATEGIC OVERLAY CAPABILITY MODEL WITH CURRENT MATURITY OVERLAY CAPABILITY MODEL WITH TARGET MATURITY OVERLAY CAPABILITY MODEL WITH PROJECT OVERLAY MATURITY, IMPACT AND IN-FLIGHT MATRIX AND DEVELOP THE QUADRANT GRAPHS CAPABILITY MODEL WITH HOTSPOT OVERLAY SEQUENCING MATRIX TRANSITION PLAN SUMMARIZED ROADMAP VIEW
  • 21. P / 22 RECAP Business Architecture provides the link between Strategy and Implementation. Business Capabilities are an essential tool to help us to look at the Business agnostically, speak a common language and understand our strengths and weaknesses in relation to strategy. Linking programmes and projects to Business Motivation (via Capabilities) provides traceability from strategy to implementation. BusinessArchitectureKeyPoints