Capability Maps - The Next Generation
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Capability models have a long history. They came out of business schools in the 50ies. In recent years the enterprise- and business architecture communities seem to have taken over, making capabilities more an IT rather than a business modeling concept. Most capability models we've seen fail to achieve their original purpose: to enable business people to design better enterprises - ones that are fit for purpose, efficient, adaptive to change and satisfy customers. In this webinar, Wolfgang Goebl explains the typical flaws of capability models and design patterns for next-generation capability modeling. You will learn: practical patterns to create capability maps that foster a seamless business & IT co-design why most capability modeling efforts fail and how to overcome the usual problems how to connect other elements of the architecture with capabilities - how to run a broad elicitation process with all relevant stakeholders how to use capability maps in corporate management
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Capability Maps - The Next Generation
- 1. Capability Maps The Next Generation Wolfgang Goebl
- 2. We help people create better enterprises. INTERSECTION GROUP
- 3. What went wrong with capability maps?
- 4. What went wrong with capability maps? Ugly Not very present outside architecture communities Few practical design patterns IT centered view
- 5. Capabilities are central in organisation design, business components used as a modular “master structure” of the enterprise. Organisational- and IT structures can be derived from this master structure. “Modular business components.” Designed for Digital, J.Ross et.al What we want to change…
- 6. What we are able to do by orchestrating people and assets. Capability Track Maintenance
- 7. What we are able to do by orchestrating people and assets. Capability Activities Processes Assets Output
- 8. What we are able to do by orchestrating people and assets. Capability Track Maintenance Digger (Machine) Serviceable Track Gravel (Raw Material) Trackinator (Application)
- 9. What we are able to do by orchestrating people and assets. Capability Track Maintenance Needed for product creation Well-defined outputs Modularisation of enterprise
- 10. A structure we need and use to perform our capabilities. Asset Machines, Buildings
- 11. Cohesion (“together what belongs together”)
- 12. Together what belongs together Many interactions between people and software applications within a capability Cohesion
- 13. Clear accountabilities Avoid redundancy Minimise interactions between capabilities Key to adaptivity Loose coupling
- 14. Well defined outputs Clear boundaries Design for adaptivity Reuse Building blocks
- 15. Customer Interaction Passenger Services Passenger Information Sell Tickets Train Restaurant Night Services Conciergerie Night Services Train Operations Train Scheduling Optimise Capacities Route Planning Train Scheduling Run Trains Clean and Prepare Drive Train Shunting Energy Mgmt. Train Routing Night Trains Luggage Furnishing Railway Infrastructure Management Planning EU Coordination Strategic Planning Budgeting Resource Management Building & Maintaining Project Management Construction Site Planning Stations Tracks Powerlines Powerplants Machines Material Crew Procurement Logistics Asset Accounting Change Enterprise Design IT Change Product Management Strategic Management Research & Development Innovation Investment Customer and Market Analytics Support HR IT Operations Legal Compliance Finance Executive Management Facility Management Risk Management Marketing & Communication Railway Signaling Control Railway Switches Billing and Booking Operate Powerplant Distribute Energy Trade Energy
- 16. When are groupings “good”? By color? By size? By shape? By species?
- 17. By object (powerlines) “Belongs together” in an enterprise context By activity (logistics) Make an intentional design decision based on specialisation.
- 18. Railway Infrastructure Management Resource Management Building & Maintaining Stations Tracks Powerlines Powerplants Machines Material Crew Project Management Construction Site Planning Procurement Logistics Asset Accounting …by Activity …by Object “Belongs together” in an enterprise context Make an intentional design decision based on specialisation.
- 19. Get in touch with our customer Sales via various channels Customer services Customer information Customer Facing Ticket sales
- 20. Create our products Manufacturing Warehousing Logistics Order processing Operational Shunting
- 21. Needed for other capabilities Marketing Legal Human resources Accounting Shared Finance
- 22. Innovate existing capabilities Strategic management Product design Enterprise design Innovation Change Strategy
- 23. Customer Interaction Passenger Services Passenger Information Sell Tickets Train Restaurant Night Services Conciergerie Night Services Train Operations Train Scheduling Optimise Capacities Route Planning Train Scheduling Run Trains Clean and Prepare Drive Train Shunting Energy Mgmt. Train Routing Night Trains Luggage Furnishing Railway Infrastructure Management Planning EU Coordination Strategic Planning Budgeting Resource Management Building & Maintaining Project Management Construction Site Planning Stations Tracks Powerlines Powerplants Machines Material Crew Procurement Logistics Asset Accounting Change Enterprise Design IT Change Product Management Strategic Management Research & Development Innovation Investment Customer and Market Analytics Support HR IT Operations Legal Compliance Finance Executive Management Facility Management Risk Management Marketing & Communication Railway Signaling Control Railway Switches Billing and Booking Operate Powerplant Distribute Energy Trade Energy
- 24. Existing Orgchart Existing Process/Product Model Capability Model Executive Board Application Owners Business Experts B-Level Executives Broad elicitation process to get existing capabilities
- 25. Customer Interaction Passenger Services Passenger Information Sell Tickets Train Restaurant Night Services Conciergerie Night Services Train Operations Train Scheduling Optimise Capacities Route Planning Train Scheduling Run Trains Clean and Prepare Drive Train Shunting Energy Mgmt. Train Routing Night Trains Luggage Furnishing Railway Infrastructure Management Planning EU Coordination Strategic Planning Budgeting Resource Management Building & Maintaining Project Management Construction Site Planning Stations Tracks Powerlines Powerplants Machines Material Crew Procurement Logistics Asset Accounting Change Enterprise Design IT Change Product Management Strategic Management Research & Development Innovation Investment Customer and Market Analytics Support HR IT Operations Legal Compliance Finance Executive Management Facility Management Risk Management Marketing & Communication Railway Signaling Control Railway Switches Billing and Booking Operate Powerplant Distribute Energy Trade Energy
- 26. Involve broad range of business experts Use common terminology Make products visible Use categories consciously Clear outputs Avoid overlaps Focus on essence (3-4 levels, ~100 capabilities) Align boxes well Capability design patterns
- 27. Capability maps use uncommon language and are used exclusively by Enterprise Architects. Today Capability Boards are co-designed by all relevant business experts and used throughout the company (for Management, Organisation, Finance, IT, Asset Management, ...) Tomorrow
- 28. What went wrong with capability maps? "Always based on information objects” call everything “management” (product-, claim-, money-, track-, train,...) “Tennis Racket Management”? “Tennis Ball Acceleration Management”? Unnatural language Capabilities present in IT only Extremely weak biz & IT alignment
- 29. What we want to change… "Always based on information objects” Serve Unnatural language Capabilities present in IT only Extremely weak biz & IT alignment Based on highest cohesion common everywhere Seamless busIT co-design
- 30. “Related activities our enterprise carries out.” Process Process/Activity = actually performed capability Only ONE way to design boundaries (caps, orga, activities, processes) Seamless connection of process management & capabilities & org design
- 31. Brand Product Organisation Story Purpose Process Capability Journey Task Channel Asset Content How to design capabilities? - Product oriented! Startup https://enterprise.design
- 32. Brand Product Organisation Story Purpose Process Capability Journey Task Channel Asset Content How to design capabilities? - Driven by legacy Existing Company https://enterprise.design
- 33. What you’ve learned in this section.. › Only ONE decomposition of the business › Start from existing docs (org, processes, website..) › Run a broad elicitation process › Enable business to own their capability design › Design for highest cohesion › Select categories with care › Consolidate Process Models with Capabilities › Layout for beauty Business / IT Alignment -> BusinessIT Co-Design
- 34. Intersection Group is a Non Profit Association EDGY www.enterprise.design A set of connected Open Source tools for your Enterprise Design practice Community and Events Events for a global community of thinkers and practitioners Learning and Knowledge Publications, content, courses and digital tools with our partners
- 35. enterprisedesignpatterns.com Patterns Journey to impact Behaviour patterns Practice patterns Creations patterns