Business and ICT modeling: two worlds apart?

A short history of modeling practice @ KBCPOEM 2017 – KUL

Leuven- 23NOV2017

Remi.Leenders@kbc.be

Public

Agenda

KBC Group NV

1. KBC’s company profle

2. “It’s the customer … stupid!”

3. “3 W’s” to get the job done

4. KBC’s modeling landscape

5. Business Architecture

6. Case: Seamless Business & ICT Alignment

7. Lessons learned

8. Outlook

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Formed in 1998 after the merger of two Belgian banks (Kredietbank and CERA Bank) and a Belgian insurance company (ABB Insurance).

Principal activity: integrated bank-insurance.

Clients: > 11 million.

Core markets: Belgium, the Czech Republic, Slovakia, Hungary, Bulgaria and Ireland. Also present, to a limited extent, in other countries.

Network: ca. 1 600 bank branches, insurance sales via own agents and other channels, various electronic channels.

Employees: > 40 000

KBC Group NV 3

KBC Group

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It’s the customer … stupid!2.

KBC Group NV

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“3 W’s” to get the job done3.

KBC Group NV

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Why?

- Enable analysis in a standardized way

- bring focus and structure

- Create universe of discourse

What?

- Collection of key-concepts and their defntionsDescription of the essential building blocks and their inter-relationships

Way of Thinki

ng

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Why?

- To apply the framework and its building blocks

What?

- A set of techniques that will help to analyse and capture the (business & ICT) reality to achieve the set objectives

Way of Workin

g

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Why?

- Safeguard knowledge capital

What?

- Capture, store and provide access to Business and ICT documentation in a structured way

- Agreed set of visual and textual deliverables that are managed to ensure future update and publication

Way of Writing

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“Times are a changin”, Bob Dylan

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KBC’s Modeling Landscape4.

2000

2008• Financial crisis

… - 2000• KBC mergers &

acquisitions• “Think Global,

Act Local”

2005• Integrated

Architecture Framework roll-out

2009• UML

2018

2017• AI

2007• Business

Modeling & Analysis Techniques

2010• Age of the

Customer

2015• (Big) Data driven

Business Models• Fintechs• Ecosystems• Blockchain• IoT’s• Open API

2008• Business

Architecture

2017• STRATEGY 2025• Service Design

Thinking

2016• RPA

Business Challenge

Modeling & methodologies

2013• Business

Architecture Redesign

• Disciplined Agile Develoment

2016• Introducing

Archimate 3.0

2018• Rolling out

Archimate 3.0 ?

2012

KBC Group NV

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KBC’s Modeling Landscape

Architecture

Design

Busin

ess

ICT

Integrated Architecture Framework (IAF)

Integrated Architecture Framework (IAF)

Based on “Strategic Alignment Model” (SAM) of Henderson and Venkatraman [1999]

KBC Group NV

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IAF (Work Preparation Framework)

Way of Thinki

ng Way of Writing

KBC Group NV

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WPF: aspect areas

InformationBu

sines

s

Info

rmat

ion

Info

rmat

ion

Syst

ems

Tech

nolo

gyIn

frast

ruct

ure

Service ManagementSecurity

WPF is 3-dimensional model, where the primary aspects areas Business, Information, Information Systems and Technology Infrastructure are integrated with Service Management and Security. Service Management and Security will enhance and support all of the four primary aspect areas.

I IS TIB

SecSm

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Major Aspect Areas

Information

BU

SIN

ES

S

INF

OR

MA

TIO

N

INF

OR

MA

TIO

N S

YS

TE

MS

TE

CH

NO

LO

GY

INF

RA

ST

RU

CT

UR

E

SECURITY

SERVICE MANAGEMENT

PHYSICAL

LOGICAL

CONCEPTUAL

CONTEXTUAL

LevelsOfabstraction

WPF: Abstraction LayersIn WPF we look at the “problem” from diferent aspect areas and from diferent levels of abstraction

What?

Why?

How?

With what?

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“Times are a changin”, Bob Dylan

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KBC’s Modeling Landscape4.

2000

2008• Financial crisis

… - 2000• KBC mergers &

acquisitions• “Think Global,

Act Local”

2005• Integrated

Architecture Framework roll-out

2009• UML

2018

2017• AI

2007• Business

Modeling & Analysis Techniques

2010• Age of the

Customer

2015• (Big) Data driven

Business Models• Fintechs• Ecosystems• Blockchain• IoT’s• Open API

2008• Business

Architecture

2017• STRATEGY 2025• Service Design

Thinking

2016• RPA

Business Challenge

Modeling & methodologies

2013• Business

Architecture Redesign

• Disciplined Agile Develoment

2016• Introducing

Archimate 3.0

2018• Rolling out

Archimate 3.0 ?

2012

KBC Group NV

Public

KBC’s Modeling Landscape

Architecture

Design

Busin

ess

ICT

Integrated Architecture

Framework (IAF)

Integrated Architecture

Framework (IAF)

Based on “Strategic Alignment Model” (SAM) of Henderson and Venkatraman [1999]

Business Architectur

e

Business Architectur

e

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The method for Business Architecture is based on Market Standards

KBC Reference model for architecture

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What does value mean for you?

BUSINESS CONTEXT PLAN

Vision, mission, strategy, goals,

objectives, principles, …

Which product/ service do you

deliver to which customer through which channel?

Value Proposition

How will you organise yourself to

deliver this?

Value Delivery

With what will you realise this value delivery?

Value Defnition

Value Implementation

PRODUCT/SERVICE PLAN

Needs, products, customer service,

channels, segments, …

BUSINESS PROCESS PLAN

Conceptual./Log ical business process and

activities, process goals/objectives, …

BUSINESS ORGANISATION

PLAN

Roles, organisational structures, …

BUSINESS INFORMATION

PLAN

Business concepts,

information products

The method for Business Architecture is based on E2E value creation

KBC Reference model for Business Architecture

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ICT Information System Architecture

BU

SIN

ES

SA

RC

HIT

EC

TU

RE

ICT Application Architecture

ICT Application Services

ICT context Architecture

ICT Information Architecture

ICT technology architecture

ICT

AR

CH

ITE

CT

UR

E

Architectural alignment : Interactions business & ICT architecture

Businessobjectives

ICTenablers

Businessrequirements

Need forautomation

Solutionalternatives

Universe ofdiscourse

Organisation

Architecture

Business Process

Architecture

Business Information Architecture

Product & Service

Architecture

Business Context

Architecture

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“Times are a changin”, Bob Dylan

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Case: Seamless Business & ICT Algnment

6.

2000

2008• Financial crisis

… - 2000• KBC mergers &

acquisitions• “Think Global,

Act Local”

2005• Integrated

Architecture Framework roll-out

2009• UML

2018

2017• AI

2007• Business

Modeling & Analysis Techniques

2010• Age of the

Customer

2015• (Big) Data driven

Business Models• Fintechs• Ecosystems• Blockchain• IoT’s• Open API

2008• Business

Architecture

2017• STRATEGY 2025• Service Design

Thinking

2016• RPA

Business Challenge

Modeling & methodologies

2013• Business

Architecture Redesign

• Disciplined Agile Develoment

2016• Introducing

Archimate 3.0

2018• Rolling out

Archimate 3.0 ?

2012Alignment Case

KBC Group NV

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Alignment Case

KBC Group NV

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Business & ICT Alignment for K&H Markets & Securities

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Case: drivers, scope & objectives

see if there is any gap between processes and proceduresTechnical and process fow diagrams - to be able to explain our business model to other departments, KBC projects, etc. - we should indicate somehow which process is automated and which contains manual work.Come to grey/white box descriptions of automated business process hidden in applications (Logical Business Activity)identify processes/subprocesses/activities, that are not our responsibility and we have to take certain steps to pass over to other areas (i.e. Interfaces & Stakeholders) improve impact analysis of changes

BUSINESS REQUIREMENTS

document aligned Business & ICT Architecture for Markets & Securities

increase/stimulate cooperation between Business & ICT (Act as

One) having internal procedures to

maintain this documentation & cooperation (= governance)

OBJECTIVES

being able to link scripts to applications (Murex, .. ) and Business Processes (driver: being able to analyse the impact of changes/incidents on applications and take appropriate actions towards interfaces/stakeholders) (Due date: 12/2012)understand the Business Architecture (BA) and align ICT-processes with BUS-processes ICT-colleagues should have the same Business Architecture knowledge as their Business colleagues Make better estimates

ICT REQUIREMENTS

-Lack of knowledge of automated processes (black boxed in the applications)-Poor documentation

- Projects slip- Time consuming incident management- Painful system upgrades

KBC Group NV

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Módszertani háttérArchitektúra modellezési tervezési módszertan

Koncepcionális leírás

LOGIKAI SZINTŰ LEÍRÁS

Munkamenet leírás Szoftver tervezés

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Módszertani háttérA módszertan testre szabása - Lépések

Eszközkészlet meghatározásaAz IAF eszközkészletéből a célközönség számára szükséges szűkített eszközkészlet kiválasztása

5 diagram típus, 12 artifact

BUS-IT összekapcsolásÜzleti folyamat és IT implementáció közti csatolási pontok meghatározása

Esettanulmányok feldolgozásaEsettanulmányokon keresztüli dokumentációs módszertan kidolgozása

Jelölési szabályok, granularitás szintjének meghatározása

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Módszertan K&Halapelemek: Logical Business Process

LBP

LBA

IP

LISC

BP Detail

EPS ISS

R

IS Service Interaction Model

O-LTICH

LTIC

LTI Design-Channel

OS

eREF

LISC Component view

C-ISS

LISC Interaction Model

• LOGICAL BUSINESS PROCESS (LBP)

• end-to-end folyamat vagy részfolyamat

• trigger indítja

• meghatározott időn belül lezajlik és

előáll az eredménye

Prefix: LBP-

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Módszertan K&HLogical Business Process (LBP) diagram

LBP

LBA

IP

LISC

BP Detail

EPS ISS

R

IS Service Interaction Model

O-LTICH

LTIC

LTI Design-Channel

OS

eREF

LISC Component view

C-ISS

LISC Interaction Model

Az üzleti folyamatokat leíró diagram. A folyamatokat lépésekre (Activity) bontva ábrázolja.

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Módszertan K&Hautomatizált folyamatok

LBP

LBA

IP

LISC

BP Detail

EPS ISS

R

IS Service Interaction Model

O-LTICH

LTIC

LTI Design-Channel

OS

eREF

LISC Component view

C-ISS

LISC Interaction Model

LBA

IS Service Interaction Model

Example 1L BP Detail

Example 2IS Service Interaction Model

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MASTER: SPOC2MASTER: SPOC2

MASTER: MEGAMASTER: MEGA

MASTER: MEGAMASTER: MEGA

Source n: CRONSource n: CRON

IS Service (Script)

LISC- IP-LTIC-

Shared Artefacts

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Módszertani háttérA módszertan testre szabása - Célkitűzések

Működő rendszerek leírásaA rendszer leírás legacy rendszerek re-engineering típusú leírására is legyen alkalmas

Az összegyűjtött tudás megosztása

Függőségek feltárásaA leírás támogassa a módosítások tervezése során az üzleti folyamat módosításából az IT függőségek egyértelmű kiolvashatóságát

Felhasználás módjaFejlesztés: Üzleti és IT specifikáció és tesztelés támogatás

Incidens kezelés: A leírás tegye lehetővé az incidens kezelési folyamatban az IT komponensek üzleti folyamatokra való hatásának egyértelmű felderíthetőségét

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Lessons Learned7.

Create or beneft from momentum (opportunity)

Need management belief

Guiding coalition (believers – bottom up)

Discover over impose

Purpose over methodology

Proof of concept (make it work)

Train, coach and apply (make it last)

KBC Group NV

Public

“Times are a changin”, Bob Dylan

33

Outlook8.

2000

2008• Financial crisis

… - 2000• KBC mergers &

acquisitions• “Think Global,

Act Local”

2005• Integrated

Architecture Framework roll-out

2009• UML

2018

2017• AI

2007• Business

Modeling & Analysis Techniques

2010• Age of the

Customer

2015• (Big) Data driven

Business Models• Fintechs• Ecosystems• Blockchain• IoT’s• Open API

2008• Business

Architecture

2017• STRATEGY 2025• Service Design

Thinking

2016• RPA

Business Challenge

Modeling & methodologies

2013• Business

Architecture Redesign

• Disciplined Agile Develoment

2016• Introducing

Archimate 3.0

2018• Rolling out

Archimate 3.0 ?

2012Alignment Case

KBC Group NV

Public

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2018

Service Design Thinking Archimate 3.0

Public

Business & ICT “two hands in a glove” when aligned!

35KBC Group NV