business architecture and enterprise planning
TRANSCRIPT
Enterprise Planning and Business Architecture
Badar MunirPMI Knowledge Sharing – Chicago
August 15, 2013
Speaker Introduction
• Business and IT Transformation• Enterprise Architecture • Business Architecture• Software Process Excellence • Aviation, Banking/Financials, Telecom, Utilities
and Govt. sectors• BS in CS and MS in IE/OR from Univ. of Oklahoma• BS in Aerospace Engineering from St. Louis U.
TOPICS• Business Architecture – Core
Concepts
• Strategic Planning Planning and Business Architecture
• Facilitated Discussion / Q&A
Business Architecture – Core Concepts
What’s Architecture?
The fundamental organization of a system, embodied in its components, their relationships to each other and the environment, and the principles governing its design and evolution.
• ISO/IEC 42010: 2007
Architecture: Automobile
Architecture – US Political System
Business Architecture
Business Architecture - Definition
Object Management Group (OMG)• A Blue Print of enterprise that provides a
common understanding of the organization and is used to align strategic objectives and tactical demands1
Business Architecture (Biz Arch)
• Architecture of a Business • Describes the structure a business in terms of
its strategies, capabilities, operations, models, and roles
• Is Realization of enterprise functional and information models in terms of its business model and business strategy
What Biz Arch is all about
• WHAT, WHY, WHO, WHERE and WHEN aspects of Business • Driving and validating Business Strategy• Bridging Business strategy and its execution• Business and its performance• Blueprinting a firm’s Business structure in terms of business
functions, capabilities and related services• Integrating Business motivations, operations, governance and
related networks• Integrating different aspects of Enterprise Eco system • Identifying and mitigating Internal and external forces impacting
business performance
Biz Arch is about…
Biz Arch is about..
Drivingand
Bridging to itsExecution
Validating
Business Strategy
Biz Arch is about..
Business and its Performance
Integrating• Business Operations
• Business Networks
• Business Motivations
• Business Governance
Blue Printing an organization’s Business Structure
• Functions• Capabilities • Value Streams• Governance • Operating Model• Roles
Biz Arch is about..
Biz Arch is about..
Integrating different aspects of EnterpriseEco System
Identifying Internaland external forcesImpacting businessperformance
Biz Arch is NOT?
• About IT Architecture• About IT Business Analysis• About Business Processes• About specific deliverables• Any framework restrictive• HOW aspects of Business
Biz Arch Eco System• Represents internal and external aspects of Business• Internal or Core business aspects are considered
most stable as they change little with changing times• External aspects of business change more quickly
and extend business architecture in variety of ways• Interaction among/between business aspects:– Aid in Business Planning – Key towards executive decision making– Extract queries to what, why, who, when, where
and how
Biz Arch Eco System…
Biz Arch Eco System ...
Internal or Core business aspects
Considered most stable as they change little with changing times
Biz Arch Eco System …
External aspects of business
Change more quickly and extend Business Architecture in variety of ways
Influencers and Influences
• A) What influences Business Architecture?• B) Whom Business Architecture
impacts/influences?
Biz Arch Views
• Business Strategy View• Business Capabilities View• Business Systems View• Business Knowledge View• Business Structure View• Business Finance View
Business Capability
• Defines what a Business does
• A particular ability or capacity what a business may possess to achieve a specific purpose or outcome
• Relates to other aspects of a business
Business Capabilities - TypesSTRATEGIC - Direction
SettingCORE - Customer Facing Supporting / Operational
Business Planning, Capital Management, Govt. Relations Management, Marketing Management, Policy and Process Management, Partner Management
Solution Management (e.g., Accounts, Contract); Customer Management; Product Management; Agent Management, Exceptions Management (Claims, Defaults);
HR Management, Legal Management, Procurement Management, Accounting / Finance/ Payroll Mgmt., Governance, Audit, IT Management, Operations Management
Capability Map
Capability Leveling
Capability Map can be leveled/architected at three or more levels.
• L1 : Foundation Capability• L2: Group Capability• L3: Business Capability
Biz Arch Roles • Provides basis for strategic planning & transformation• Enables realistic investment strategies• Enables business growth strategies • Provides insights into current and expected business
capacity and challenges to deliver products & services• Identify opportunities for business critical investments
thus improving ROI and shareholder value• Offers holistic and extended views integrating business
with customers, suppliers and social network
Biz Arch Benefits• Enhance Competitive edge • Improve organizational agility:
– Supporting ‘lean’ thinking – Aligning business capabilities cross functionally
• Analyze and test disruptive / innovative business ideas• Validate business strategy by defining future operating
conditions• Identify opportunities to reduce Organizational
inefficiencies, Operating costs and improve TCO• Improve IT strategy and IT Operations alignment with
Business strategies, services, capabilities and delivery
Strategic planning and Business Architecture
“In Planning for battle, I have always found that plans are useless, but planning is indispensable.”
General Dwight Eisenhower
Strategic Planning
Most Organizations plan for enterprise/business strategies by considering and evaluating:
• What they might do• What they can do• What their leadership wants to do• What they should do
Enterprise Strategy Goals
Most Enterprise Strategic initiatives focused on:• New / Refined Products• New / Refined business Services• Mergers & Acquisitions/Divestures• Business Transformation• Business Consolidation
Ansoff Strategy Model
Porter Model
Business Architecture Process
Business Architecture Process..1
Define / Refine Business Strategy
Determine Assessment Path
• Objectives Setting • Objective Tradeoff Analysis
• Impact Analysis • Business Scenario Analysis
• Objective Prioritization
• Assessment Planning
• Product / Service Mapping
• Org. Function Mapping • Resource Mapping • Business Capability Mapping • IT Asset Mapping
• In Flight Asset Mapping
Perform Business Arch Analysis
Business Architecture Process...2
Develop Target State Architecture
Define and Plan Initiatives
Deploy BusinessSolutions
• Strategy / Business Architecture Mapping
• Target State Business Risks and Influencers Mapping
• Target Business Functions
• Target State Business Architecture Artifacts • Target State Business Model Mapping • Target State Operating Model Mapping
• Identify possible Initiatives
• Map Initiatives with Capabilities Architecture • Map Business Risks with Capabilities and Initiatives • Define and Prioritize Initiatives
• Establish Success Criteria
• Identify Deployment Team(s)
• Deployment Team(s) Engagements
• Projects and Programs Execution • Deliverables Deployment • Success Evaluation
Business Architecture Process..3
PG: Initiating ProcessPG: Execute, M&CPG: Close PG: Planning Process
Linking Capabilities and Initiatives• Target Business Capabilities are among key
outputs of Target Business Architecture – New Business Capabilities – Refined Business Capabilities – Remove or Re-prioritize existing Capabilities
• Capabilities and their strategic value drives Initiative identification, prioritization, planning and execution
Capability Heat Map Analysis• A critical technique for capability analysis. An
outlines follows: – Red = Poorly defined or placed, Need corrective
action – Yellow = Problematic, Need preventive action– Green = Working well – no change – Purple = Non existent – needed critically– No Color = Not evaluated
Strategic
Business Planning
Marketing Partner Management
Capital Management
Policy Management
Govt. Relations Management
CORE Account Management
Product Management
Distribution Management
Customer Management
Channel Management
Agent Management
Supportin
g
Financial Management
HR Management
Procurement Management
IT Management
Training Operations Management
Capability Heat Map
Linking Heat Map to Initiatives
Products and Services
Enterprise Business Architecture • Enterprise Risks
• Business Priorities• Dependencies
InitiativesPlans & ProjectsBusiness Solution
Deployment
PG: Initiating ProcessPG: Execute, M&CPG: Close PG: Planning Process
Summary• Business Architecture Analysis/due diligence– Is triggered by Business Strategy goals– Results in identification of business transformation– Capability Heat maps identify business criticality– Business Initiatives identified– Planning to accomplish strategy goals follow
• PMBOK can be employed to plan, execute, manage and control business transformation initiatives and related projects
Facilitated Discussion / Q & A
Biz Arch and Competitive Edge
How is business architecture used today to generate competitive advantage?
- Defining and Improving new/refined Services and Capabilities
- Competitive Edge Research and Analysis - Reducing costs of services and delivery- Business Transformation- Improving Citizen Services (Canadian Govt)
How you measure Success
Based on Strategic Goals. Differ in each case • Reducing Cost of Services delivery• Improving Organizational Productivity• Reducing Operational Costs• Improve Profitability • Improve Customer Satisfaction• Attract new Customer Base by improving Service
Quality and Delivery
Business Architecture CSFsIt can be answered at two levels: • Business Architecture Practice. Tackles issues such as
– Establishing common definitions of business models from reusability perspectives
– Establishing global Business Strategy Planning Processes– Reusing Organizational Capabilities building blocks– Measuring Alignment of Business Models with Business Strategies
(a problem for a major Aircraft Manufaturer) – Measuring Value of Products and Services from Customer
Perspectives
• Individual Business Transformation Initiatives
Top three metrics using Biz Arch
• Improve Business Innovation • Track, Improve and Maintain Business Value • Continuously Improve Speed to Market
Challenges with implement a BA discipline?
• Culture • Organizational Maturity • Executive Buy In • Qualified Talent to lead the effort• Patience
Biz Arch Value Proposition / Benefits
• Strategic Planning and Prioritization• Customer / Stakeholder Value Delivery • Business Collaboration and Business Innovation• Business Transformation / M&A / Divestures• Analyzing and Deploying Complex Business Scenarios• Partner Alignment • Streamlining Business / IT Alignment• Business Model and Strategy Alignment
