© 2015 Cordial Business Advisers AB2
Cordial’s framework for Business Architecture
Business Strategy
Business Processes
Business Models
IT
Service
ApplicationInformation
Organization Management
Q2
Q4
Q1
Q3
© 2015 Cordial Business Advisers AB3
Cordial deploys a holistic methodology framework to analyze, innovate and realize business models.
Our approach is based on a conviction that competitive and flexible business models are deployed by grasping the significance of the entire business architecture, including industry dynamics, strategic choices and the structures underpinning a modern organization.
Cordial’s approach to defining, analyzing, innovating and realizing competitive business models has been deployed within leading companies in the telecoms, energy, banking, insurance, travel, retail and forestry industries.
We know – and consider – that sustainable results are a function of both the quality and the acceptance of the solution.
Our approach enables operational execution
R=(S,A)
© 2015 Cordial Business Advisers AB4
Sustainable results are a function of the quality of the solution (S) and its acceptance within the deploying organization (A)
R =(S,A)
4
© 2015 Cordial Business Advisers AB5
We compress the time to realize the desired transformation by deploying a structured and ”battle tested” approach
5
TRANSFORMATION
DESCRIBE END STATE NAVIGATE JOURNEY
Val
ue
Year1 2 3
END STATE
REALIZE EFFECTS
CURRENT STATE
Desired journey
Actual journey
Our promise
BMT enables you to lead successful transformations by deploying a structured and ”battle tested” approach that ensures:• Time compression of the journey • Time compression of effect realization by improving organizational acceptance (more people
changing working practices and behaviors)
© 2015 Cordial Business Advisers AB6
The Business Architecture Framework creates a holistic platform for successful transformation
The need for a transformation can be triggered by many factors, e.g. changing industry dynamics and customer behaviors/needs, changes to shareholders` agendas and directives, new strategies, cost pressures or significant IT replacements.
Regardless of the triggers, a transformation has consequences for all parts of the business.
The business architecture framework helps us understand the consequences of the transformation in all relevant areas, as well as the changes needed to arrive at a new end state.
© 2015 Cordial Business Advisers AB7
The business model is the unique structure that realizes a business idea
A business model is a conceptual tool that contain a set of components and describe their relations and interconnections in a way that makes the business logic of a specific firm visible and concrete.
It is a description of the value a business activity offers one or several segments of customers, and a description of the value the business architecture and the partner network create, market and deliver and which generates profitable and lasting revenue streams.
Processes, competences,
structuresValue proposition
Customer segments, channels, relations
Cost Profit Revenue
© 2015 Cordial Business Advisers AB
How big a transformation is necessary to realise the desired end state?
8
TRANSFORMATION
© 2015 Cordial Business Advisers AB9
The transformation to the desired end state is the sum of the gap in each dimension of the business architecture
STRATEGY
BUSINESS MODEL
MANAGEMENT
PROCESSES
ORGANISATION
IT
© 2015 Cordial Business Advisers AB10
ANALYSIS OF BUSINESS MODELS
INNOVATION OF BUSINESS MODELS
DESIGN OF BUSINESS ARCHITECTURE
REALIZATION OF BUSINESS MODELS
BMT3.0Business Model Transformation in four phases
ANALYSIS INNOVATION DESIGN REALIZATION
© 2015 Cordial Business Advisers AB11
BMT3.0: Structural clarity, improved agility
ANALYSIS
INNOVATION
DESIGN
REALIZATION
© 2015 Cordial Business Advisers AB12
High level description of the four phases
ANALYSIS OF BUSINESS MODELS
Based on a solid understanding of industry dynamics, the analysis phase builds a platform for fact based innovation.
With a structured analysis of market forces and the current portfolio of business models, we can identify key areas for innovation.
It is necessary to fully understand the strategic intent and how it may need adjustment as a consequence of the desired end state.
INNOVATION OF BUSINESS MODELS
Successful innovation of business models presumes a deep understanding of the true needs of prioritized customer segments and how to meet these needs with attractive value propositions.
The chosen value propositions are realized through carefully crafted business models.
The new portfolio of business models must be capable of achieving the desired end state as well as delivering the overall strategic objectives.
DESIGN OF BUSINESS ARCHITECTURE
Clearly defined strategic business requirements are the centerpiece for the effort of designing the enabling structures that will operationalize the revised portfolio of business models.
The design phase zooms in on business processes, capabilities, organization, competencies, governance models, information, IT and other infrastructure.
Based on the strategic business requirements, we describe a target architecture for the enabling structures. This becomes the baseline for design a realistic, realizable solution architecture.
REALIZATION OF BUSINESS MODELS
Realization presumes a structured approach that understands and includes three main elements: the newly designed business architecture, the receiving line organization and the transformation organization.
The sustainable result of a business model innovation is a function of the quality of the solution and the level of acceptance among all relevant stakeholders.
ANALYSIS INNOVATION DESIGN REALIZATION
© 2015 Cordial Business Advisers AB13
Transformation of business models in four phases
Analyze the market and the competitive landscape
Verify & update the strategic intent and the desired market position
Identify and describe the current business model portfolio
Analyze the identified business models and business model portfolio
Define the desired position and strategic goals per business model
A1
A2
A3
A4
A5
Segment customers and understand their needs, behaviors
Define concrete and attractive value propositions
Identify enablers for future business models
Suggest new or redesigned business models
Detail and prioritize new and redesigned business models
I1
I2
I3
I4
I5
Define and prioritize strategic business requirements
Survey existing supporting structures
Determine the required degree of transformation in each structural dimension
Design ideal architecture
Design solution architecture
D2
D3
D4
D5
D1
ANALYSIS INNOVATION DESIGN
Build a change strategy and design its implementation
Organize and mobilize the available organizational resources
Establish structural preconditions for the change
Drive execution of the change.
Reinforce the change to secure sustainable results
R1
R2
R3
R4
R5
REALIZATION
© 2015 Cordial Business Advisers AB14
ANALYSIS OF BUSINESS MODELS
• Market and industry analysis
• Strategic intent and desired market position
• Identified and analyzed business models and business model portfolio
• Objectives and desired end state per business model
Deliverables per phase
INNOVATION OF BUSINESS MODELS
• Customer segmentation
• Customer needs analysis
• Crisp and attractive value propositions
• Designed and tested future business models
DESIGN OF BUSINESS ARCHITECTURE
• Strategic business requirements
• Survey of existing supporting structures – processes, capabilities, organization, competencies, governance, information, IT support and other infrastructure
• Analysis of the necessary degree of transformation in each structural dimension based on each business requirement
• Target architecture for the enabling structures
• Solution architecture for the enabling structures
REALIZATION OF BUSINESS MODELS
• Program directive including business case and other documentation needed for executive decisions
• Program organization
• Project plans for the various projects/initiatives
• Change strategy
• Selected methodologies and tools to drive the change program
• Realized initial change
• Sustainable change
ANALYSIS INNOVATION DESIGN REALIZATION
© 2015 Cordial Business Advisers AB15
Developing capabilities and mobilizing enablers for successful transformation of business architecture
Initi
ate
the
tran
sfor
mat
ion
Provide architectural support for the transformation
Lead the transformation
Dev
elop
cap
abili
ties
that
can
driv
e su
cces
ssfu
l tr
ansf
orm
atio
ns