Business Architecture is a multi dimensional discipline primarily focused on organizational structure and performance in terms of business strategy, business functions, capabilities, roles and their relationships. Implementing and executing Business Strategy goals is among Business Architecture’s focus areas.
This presentation and discussion will focus on Strategic planning relationship with Business Architecture. Employing Business Architecture techniques, Corporate Planners can translate business strategy goals into actions, identify critical areas of enterprise change and transformation while identifying and mitigating related risks.
1. Enterprise Planning and Business
Architecture
Badar Munir
PMI Knowledge Sharing – Chicago
August 15, 2013
2. 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.
3. TOPICS
• Business Architecture – Core Concepts
• Strategic Planning Planning and Business
Architecture
• Facilitated Discussion / Q&A
5. 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
9. 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
10. 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
11. 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
13. Biz Arch is about..
Driving
and
Bridging to its
Execution
Validating
Business Strategy
14. Biz Arch is about..
Business
and its
Performance
Integrating
• Business
Operations
• Business
Networks
• Business
Motivations
• Business
Governance
16. Biz Arch is about..
Integrating different
aspects of Enterprise
Eco System
Identifying Internal
and external forces
Impacting business
performance
17. Biz Arch is NOT?
• About IT Architecture
• About IT Business Analysis
• About Business Processes
• About specific deliverables
• Any framework restrictive
• HOW aspects of Business
18. 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
20. Biz Arch Eco System ...
Internal or Core business aspects
Considered most stable as they
change little with changing times
21. Biz Arch Eco System …
External aspects of business
Change more quickly
and extend
Business Architecture
in variety of ways
22. Influencers and Influences
• A) What influences Business Architecture?
• B) Whom Business Architecture
impacts/influences?
23.
24. Biz Arch Views
• Business Strategy View
• Business Capabilities View
• Business Systems View
• Business Knowledge View
• Business Structure View
• Business Finance View
25.
26. 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
27. Business Capabilities - Types
STRATEGIC - Direction
Setting
CORE - 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
29. Capability Leveling
Capability Map can be
leveled/architected at
three or more levels.
• L1 : Foundation Capability
• L2: Group Capability
• L3: Business Capability
30. 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
31. 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
33. “In Planning for battle, I have
always found that plans are
useless, but planning is
indispensable.”
General Dwight Eisenhower
34. 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
35. Enterprise Strategy Goals
Most Enterprise Strategic initiatives focused on:
• New / Refined Products
• New / Refined business Services
• Mergers & Acquisitions/Divestures
• Business Transformation
• Business Consolidation
39. 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
40. Business Architecture Process...2
Develop Target
State Architecture
Define and Plan
Initiatives
Deploy Business
Solutions
• 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
42. 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
43. 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
45. Linking Heat Map to Initiatives
Products and Services
Enterprise Business
Architecture
• Enterprise Risks
• Business Priorities
• Dependencies
InitiativesPlans & Projects
Business
Solution
Deployment
PG: Initiating ProcessPG: Execute, M&CPG: Close PG: Planning Process
46. 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
48. 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)
49. 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
50. Business Architecture CSFs
It 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
51. Top three metrics using Biz Arch
• Improve Business Innovation
• Track, Improve and Maintain Business Value
• Continuously Improve Speed to Market
52. Challenges with implement a BA
discipline?
• Culture
• Organizational Maturity
• Executive Buy In
• Qualified Talent to lead the effort
• Patience
53. 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