enabling customer driven innovations using business architecture

Enabling Customer-Driven Innovations Using Business Architecture

Daniel Lambert, M Sc.

VP – Business ArchitectureBenchmark Consulting USA LLC

Email: [email protected] number:

(855) 798-2042 x2010Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved

BBC 2017 Orlando

November 8, 2017

mailto:[email protected]

1. Becoming a Customer-Driven Enterprise slide 3

2. Digital Transformation Using Business Architecture slide 7

3. Clarify Goals & Strategy slide 16

4. Provide Value slide 22

5. Prioritize Capabilities slide 27

6. Assess Capabilities slide 31

7. Identify Gaps slide 39

8. Expected Outcomes slide 42

9. Develop Roadmap slide 44

10. Agile Delivery of Solutions slide 51

Presentation Overview

Benchmark Consulting USA LLCCopyright 2017 – All Rights Reserved

Section 1Becoming a Customer

Driven Enterprise


Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved

The Most Innovative Companies in the World

Source: Forbes Magazine and Fast Magazine.

# According to Forbes Magazine According to Fast Magazine

1

2

3

4

5

6

7

8

9

10

What do they have in common?

Most of Them AreCustomer Driven!

https://www.forbes.com/innovative-companies/list/#tab:rank

https://www.fastcompany.com/most-innovative-companies/2017


From Seller Driven to Customer Driven

Source: Table inspired from Slide 25 of the Presentation entitled “Using Business Architecture to Enable Customer Experience and Digital Strategy” made by Craig Martin published on Feb 23, 2014.

https://www.slideshare.net/craigrmartin/digital-disruption-and


Customer Driven EnterpriseIt’s All About Value!

Source: Table inspired from Slide 26 of the Presentation entitled “Using Business Architecture to Enable Customer Experience and Digital Strategy” made by Craig Martin published on Feb 23, 2014.

Type of Approach Starting Point

Focus Means Ends

Seller Driven Enterprise (Product Driven)

Production Products Selling & Promotion

Profit through Sales Volume

Customer Centric Enterprise (Marketing Concept)

Target Market

Segment

Segment Needs

Integrated Marketing

Profit through Increased

Market Share

Customer Driven Enterprise (Value Concept)

Target Individual

Customer Intention

Outcome Marketing

Profit through

Customer Lifetime

Satisfaction

https://www.slideshare.net/craigrmartin/digital-disruption-and

Section 2Digital Transformation

Using Business Architecturein Large Organizations


• 66% of HR and IT organizations develop strategic plans that are not linked to the enterprise strategy.

Sources: the first 2 bullets are derived from The Strategy-to-Execution Process: A Critical Component of Transient Competitive Advantage in the European Business Review on November 7, 2013 and the last bullet is derived from various additional studies made by Towers Watson, Harvard Business Review, and McKinsey & Co.

Not Easy With Today’s Business Disconnects


• 95% of employees in most organizations do not understand their organisation’s strategy

• Only 25% to 30% of business transformation initiatives are successful over the long term

http://www.europeanbusinessreview.com/?p=701

http://www.forbes.com/sites/victorlipman/2013/09/04/new-study-explores-why-change-management-fails-and-how-to-perhaps-succeed/

http://hbswk.hbs.edu/item/5170.html

http://www.mckinsey.com/insights/organization/How_to_beat_the_transformation_odds

Business Architects Between IT and Business

Benchmark Consulting Canada Copyright 2017 -All Rights Reserved

Sources: http://image-store.slidesharecdn.com/3b0f9b75-76aa-4898-91e9-11fddf6c4911-large.jpeg.

How users see IT and developers

How IT and developers see users

http://image-store.slidesharecdn.com/3b0f9b75-76aa-4898-91e9-11fddf6c4911-large.jpeg

Business Overview According to

BIZBOK® Business Architecture

Figure 1.1 of the BIZBOK® Guide on page 2Benchmark Consulting USA LLCCopyright 2017 – All Rights Reserved


Business Architecture Enabling the Other 3 IT Enterprise Architecture Domains

Source: https://www.linkedin.com/pulse/make-your-cio-more-relevant-using-business-daniel-lambert?trk=mp-author-card

https://www.linkedin.com/pulse/make-your-cio-more-relevant-using-business-daniel-lambert?trk=mp-author-card

Step 1: Develop Goals & Strategy

Step 2:Business Architecture

Step 3:Develop Roadmap (part of Portfolio Management)

Step 4: Agile Delivery of Solutions (using

Requirements & Processes)

Step 5: Measure Success

Step 2.2: Provide Value

Step 2.4: Assess Capabilities

Step 2.1: Clarify Goals & Strategy

Step 2.5: Identify the Gaps

Step 2.6: Expected Outcomes

From Strategy to Delivery Using Business Architecture


Step 2.3: Prioritize Capabilities





Step 3.1: Scenarios

Step 3.2: GANTT charts

Step 3.4: Roadmap Selection

Step 3.1: Scenarios


Step 3.3: Financing (Revenue, Costs & Risks)




Business Architecture Implementation Schedule


















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 3Clarify Goals & Strategy


Business Motivation Model

Source: http://goobiz.com/From_BMM_to_SOA.htm Benchmark Consulting USA LLC Copyright 2017 – All Rights Reserved

http://goobiz.com/From_BMM_to_SOA.htm

Vision, Mission, Strategies & Tactics

IRIS Business Architect Copyright 2017 – All Rights Reserved

Business Model Canvas & Customer Value Mapping

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Business Model Canvas: a Banking Example


Customer Value Map: a Financial

Service Example


Customer Journey Map: a Financial Service Example


Targeting Millennials SWOT Assessment



















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 4Provide Value


Various Value Finding Techniques

• Capability to Organization cross-mapping to eliminate inefficiencies

• Capability to Applications cross-mapping to eliminate duplications

• Information Concepts to Data models to eliminate redundant data

• Various Capability Measurement Techniques• Value Streams to Capabilities cross-mapping to

prioritize capabilities (among the most important)

• Etc.


Value Streams: Financial Services Example


100% 47% 12%

Opportunities Churn Rate

2% 4%

Acquire Customer for a Product (Funnel) Value Stream


Acquire Customer for a Product (Funnel) Detailed Value Stream



















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 5Prioritize Capabilities


Value Steam with Enabling Capabilities


Enabling Capabilities for Acquiring a Millennial customer for a product and/or service

Capability Map (Level 1)


Tier-2 Customer Facing Capabilities (level 1 & 2)



















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 6Assess Capabilities


Tier-2 Customer Facing Capabilities (level 1 & 2)


Source: https://www.slideshare.net/DanielLambert4/from-business-strategies-to-it-execution-using-business-architecture-in-financial-institutions

https://www.slideshare.net/DanielLambert4/from-business-strategies-to-it-execution-using-business-architecture-in-financial-institutions

Type of Measures

• Business Complexity• Business Value• Capability Maturity• Design Execution• Functionality Level• Performance Heat Map• Impact Measure• Level of Effort

• Operational Efficiency• Operational Risk• Readiness Level• Reliability Level• Usability Level• Annual Cost• Level of Value• Level of Priority



Business Architecture & Measurements

Source: https://www.linkedin.com/pulse/art-measurement-business-architecture-daniel-lambert?trk=pulse_spock-articles

https://www.linkedin.com/pulse/art-measurement-business-architecture-daniel-lambert?trk=pulse_spock-articles

Value Steam with Enabling Capabilities


Capabilities ranked by priority from top to bottom to target Millennials


Enabling Capabilities Measurement

Capabilities ranked by business complexity to target millennials

Enabling Capabilities Measurements


Capabilities ranked by Business Complexity (top bar) vs Priority (lower bar)

Customer Facing Capabilities Measure Matrix



















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 7Identify the Gaps


Lack of Millennials as CustomersGap Impact Diagram



















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 8Expected Outcomes


From Gaps Items to Initiatives and Outcomes


Gap AnalysisStrategy

Gap ItemsGap Items

InitiativesInitiatives

Outcomes


















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 9Develop Roadmap


Increasing Millennials Market ShareTwo Scenarios


Scenario 1In-House

Scenario 2Outsourced

Description Use of internal marketing employees

Use of digital marketing firm

Advantages - Less costly- Knowledge always in-

house- Higher control on

activities

- Current know-how among digital marketing firm high

- Higher revenue- Less variance on final

results

Disadvantages - Current know-how low- Slower start- Variance of final results

higher- Lower odds of success

- More Costly- Longer to build internal

knowledge and skills- Lower control on

activities

Nomenclature of Both Scenarios


GANTT Chart – Scenario 1


GANTT Chart – Scenario 2


Forecast (Revenue, Costs) of Both Scenarios


Roadmap of Selected Scenario


Initiatives measured by Business Complexity


















Step 3.1: Scenarios



Step 3.1: Scenarios




Section 10Agile Delivery of Solutions


Sources: Statistics are derived from various additional studies made by Towers Watson, Harvard Business Review, and McKinsey & Co.

Increase the Success of Business Transformation Initiatives

Only 25% to 30% of business transformation initiatives are successful over the long term


http://www.forbes.com/sites/victorlipman/2013/09/04/new-study-explores-why-change-management-fails-and-how-to-perhaps-succeed/

http://hbswk.hbs.edu/item/5170.html

http://www.mckinsey.com/insights/organization/How_to_beat_the_transformation_odds

Business Architects Involved in DeliveryBusiness Architects should …

• … never keep to themselves their work and business architecture model

• ... always publish over the Web the details of a selected scenario to the relevant IT and Business stakeholders

• … make sure to adjust iteratively their model based on the feedback from business and IT stakeholders

Results

• Better collaboration from business stakeholders during delivery

• Important time savings in gathering information for business analysts, process experts, software architects, etc.


Business Architecture Enabling Requirement Management


Capabilities Stakeholders Value

The User Story of the Requirement “A-198”The Loan Officer(S1) wants to set(V1) the terms(I1) of the agreement(I2) to reduce(V2) the monthly minimal payment(I3) of its Personal Client(S2) who wants to Acquire a Loan(V3), involving decisions(P1) from a Loan Administrator(S3), a Loan Manager(S4) and a Contract Manager(S5) and involving the capability of Agreement Structuring(C1) and its children Agreement Terms Management(C2) to Approve a Loan(V4)»

• Agreement Structuring(level 3) (C1)

• Agreement Terms Management (level 4) (C2)

• Loan Officer (S1)• Personal Client (S2)• Loan Administrator (S3)• Loan Manager (S4)• Contract Manager (S5)

• Set the terms of the agreement (value item) (V1)

• Reduce the monthly minimal payment (value item (V2)

• Acquire a Loan (value stream) (V3)

• Approve a Loan (value stage) (V4)

Information

• Terms of loan (I1)• Loan Agreement (I2)• Monthly Minimal Payment

of Loan (I3)

Process

• Process B-231 – Change Terms of a Loan (P1)

Source: http://www.slideshare.net/DanielLambert4/from-retail-business-strategies-to-it-execution-using-business-architecture

http://www.slideshare.net/DanielLambert4/from-retail-business-strategies-to-it-execution-using-business-architecture

Benefits of the Business Architecture Practice Based on the Expected % of Savings


Source: https://biz-architect.com/whats-the-roi-on-your-business-architecture-practice/

• Based on benefits and time savings, ROI of the business architecture practice can be demonstrated

• Sensitivity analysis can also demonstrate the usefulness of Business Architecture

https://biz-architect.com/whats-the-roi-on-your-business-architecture-practice/

Thanks!

Daniel LambertEmail: [email protected]

Phone number: (855) 798-2042 x2010


mailto:[email protected]