business capability models and their myriad of uses · agility by design 21/11/2016 2 business...

AGILITY BY DESIGN “The best way to predict your future is to invent it” - Frank Herbert

Business Capability Models and their myriad of uses

Glenn SmythFounder & CE

Fragile to Agile

Cassandra

Creative Commons

www.fragiletoagile.com.auAGILITY BY DESIGN 221/11/2016

Business Capability Model Explained

• A logical model of what the business does, not how (business process model) or who does it (organisational structure)

• Models the business as a set of services (service providers), including internally and externally sourced services

• Models all services, manual or automated

• Is static, only changes if an organisation enters/exits a business or adds a new technical channel but not when implementing new products

• Benefits flow from the deeper understanding of the business it yields


Importance of a BCM

• Provides a capability oriented view of the business as a whole

• Stable business design artefact which enables technology alignment

• Lingua Franca for business and IT i.e. the Babel Fish

• Fosters much deeper understanding of the business and frequently leads to business change innovation e.g. Compaq

• Basis of managing complexity i.e. how do you eat an elephant?

• Enables conversations to determine whether different business areas can share solutions (reduced cost)

• Fundamental design artefact to achieve agility


Business Capability Model (Benefits)

• Greater understanding of the business and pressure points

• Identify key cross capability hand off and process breakdown points

• Simplifies in/outsourcing of capabilities (business and IT)

• Enhanced portfolio management - capability based demand management

• Business investment focus, prioritisation and governance

• Capability based planning and transformation

• Base against which all other design domains are mapped

• Greatly simplifies solving many key technical design decisions


Business Capability Model Views

Executive View• Decomposes capabilities to two levels of abstraction only• Less rigour applied due to its high level nature• Consulting artefact• Used to manage up e.g. heat maps, investment and prioritisation

Architecture View• Decomposes capabilities to four or five levels, where necessary• Design artefact – must be developed with rigour to achieve the detail required and

to be useable for deep design – e.g. Data Affinity Analysis• Used for deep technical design e.g. overlays, Current State, Target State• Used to drive project level design as Executive view not detailed enough to support

this

BPM/SOA View• Adds service containers - defines process and data boundaries and answers key

BPM/SOA design questions

Critical to use the same model for all the above, just elaborated in each step/view


Business Capability Model – Executive Level CAUDIT/EA Australia version


Business Capability Model – Executive LevelDeakin University


Business Capability Model Executive Level (Uses)

• Business Strategy understanding/exploration/consulting

• Greater understanding of the business and pressure points

• Enhanced portfolio management - Capability based demand management

• Business-driven investment decision prioritisation and governance

• Visually represent organisational attributes and characteristics (heat maps)

• Translates Operating Model decision into actionable architectural implications

• Business/technology alignment

• Basically the consulting/”managing-up” aspects of Enterprise Architecture


• A heat map is a graphical representation of data where the values taken by a variable in a two

dimensional map are represented as colours

• Due to its visual impact, a Business Capability Model diagram is an ideal vehicle for delivering heat

maps

• For simplicity and alignment with Executive dashboards, three colours are generally used i.e.

traffic lights

• However, more complex data can require more sophisticated Heat Maps that traffic light

representations

• There are as many heat maps as there are purposes and characteristics that an organisation can

think of.

• Often most powerful when two are combined

Business Capability Model Executive Level (Uses)Heat Maps - Introduction


BCM Heat Map – Strategic Contribution


BCM Heat Map – Project Impact


BCM Augmented Heat Map


BCM Heat Map – Smart Grid Impact


BCM Heat Map – Resourcing Allocation


BCM Heat Map – Strategic Advantage


BCM Heat Map – Sourcing Mix


BCM Heat Map – Core Application Footprint


BCM Heat Maps and Demand Management (briefly)

• Business Capability Model heat maps can depict the following attributes to better inform decision making, contain and manage demand:

• level of strategic fit for each initiative;• business areas and capabilities impacted by change;• sourcing mix by capability to flex demand;• level of spend vs strategic value;• service reuse opportunities;• resourcing coverage;• project portfolio footprint;• competitive pressure;• regulatory impacts etc.

• A combination of attributes can also provide a mechanism to manage demand.


Business Capability Model Executive Level (Uses)Operating Model - Introduction


Operating Model – BCM Standardisation

• Leveraging the BCM provides a way of translating the Operating Modeldecision into practical actions

• For more common diversified and coordinated models this step is critical – notdoing it is one of the main reasons why SOA initiatives fail

• Operating Model decision must be made prior to developing a Target StateSolution Architecture or Solution Roadmap


Whole of Organisation

BU Standardised

BU Specific

• For capabilities categorised as “BU

Shared” the solution/processes are

standardised across some or all business

units

• For capabilities categorised as “BU

Specific” the capability solution,

processes etc. are specific to the

business unit

• For capabilities categorised as “Whole

of Organisation” the solutions and

processes are standardised across the

entire organisation

Operating Model Realised


Operating Model – Standardisation


Business Capability Model Architecture Level (Uses)

• Used for deep design – requires additional rigour if to be effectively used for this purpose – in particular must consider Data Affinity/Clustering analysis

• Mapping current, interim and target state architectures (overlays)

• Exposing gaps, redundancy and overlaps in functionality

• Same tool for business planning and deep project/solution architecture design

• Base against which all other design domains are mapped

• Determining Service and Software Containers – tomorrows session


Business Capability Model – Architecture levelDeakin – Partial


Current State Architecture Overlay


Target State Solution Architecture Overlay


Data Architecture Overlay


Integration Architecture Overlay


F2A IAF – For Interactive Discussion

• Framework just being used as a frame of reference• We have found uses for the BCM in EVERY cell of this framework• Call out any design issues/question in any of these domains of design and I’ll see if the

BCM can help and how

business capability models and their myriad of uses · agility by design 21/11/2016 2 business...

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