Professional Documents
Culture Documents
David OHara
Principal Consultant , Enterprise Architects
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Introduction
20 years in Business-facing roles in the IT industry, mostly
private sector
Telco, Retail, FS
David OHara
Enterprise /
Business
Architect
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#EAID2014
Enterprise
Architects
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About
Enterprise
Architects
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Our Services
Enterprise Architects is a dedicated team of architecture specialists
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Solution Architecture
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Development
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Community
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ArchiMate
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Governance
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www
enterprisearchitects.com
youtube.com/user/EntArchitectsEA
@enterprisearchs
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enterprise-architects
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Designing the
Business Model
Responding to the challenge of
Disruption
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Overview
The challenge facing Enterprise Architecture: to re-design Business Models
Change is the only constant....so what else is new?
In the Digital economy, both the PACE of change and IMPACT of change are
increasing: market disruption, driven by digital innovation, is occurring more
frequently and with greater effect
New players, differentiated offerings, new Business Models.
For CIOs and Chief Architects, working at the Operating Model layer is not
sufficient to respond to these external challenges
Architecture needs to evolve: from Operating Model design to Business Model
design
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PERORMANCE
ENTERPRISE
BRAND PLATFORM
BUSINESS MODEL
BUSINESS COMPETENCIES
PRODUCT
TIME
Enterprise Lifecycle's
2014 Enterprise Architects PTY LTD
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Enterprise
Architecture
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Corporate
Governance
NPV
Value
Engineering
Business
Intelligence
Five Forces
Financial
Modelling
Mission
Enterprise
Patterns
Environmental
Scanning
Stakeholder
Goals
Value
Business
Brand
Architecture
Management
Integrative
Thinking
Business
Perception
Model Design
Management
Strategic
Root Cause
Wicked
Traceability
System
Analysis
Problems
Thinking
Portfolio Capability
Analysis
Innovation
Management
Collective
Operation
Business
Intelligence
Management
Analysis
Talent
Six
Cost
Management
Thinking
Product
Engineering
Hats
Quality Management
Crowdsourcing
TOGAF
Management
Knowledge
Data
Ecosystem
visualisation
Six Sigma
IT Governance
Change
Solution
& Lean
Management
Architecture
PRINCE2
Gamification
EVA
ANALYTICAL
THINKING
Search for
The EA Headspace
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INTUITIVE
THINKING
Systems
Thinking
Vision
&
Mission
Coherence
Design
Thinking
Business
Model
Prototyping
Business
Outcomes
Value
Systems
Capabilities
Innovation
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Visualisation
Operating
Model
Markets
Industries
Customers
Market Segment
Channels
Customer
Relationships
Value Proposition
Offering: Products /
Services
Capabilities
Processes / Value
Chains
Business Services
Functions
Data
Applications
Technology
The Environment
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Management Approach
Value
Products and
Service
Model
Generation
Market Model
Products and
Service Model
Customer Relationships
Value Proposition
Offering: Products /
Services
Operating
Model
Capabilities
Processes / Value Chains
Business Services
Functions
Data
Applications
Technology
The Environment
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Capability Driven
One of the ways we create coherence is through capability based planning
Capability driven architectures are designed to support the strategic objectives of an organisation
Capability based
planning is one of
the tools that looks
at the best mix of
resources required
to develop this
coherence
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Mission
CAPABILITY
Vision
People
Strategies
Goals
Process
Outcome
Tactics
Objectives
Technology
E
The majority of organisations today
sit approximately here on this curve
D
C
B
A
EA = IT Architecture
Improve project
performance
EA = Enterprise-Wide
IT Architecture (EWITA)
Improve IT performance
EA = Strategic Enabler +
BA + EWITA
Improve Market Performance
(Shareholder Value)
Mandate
*Adapted from Ruth Malan, Dana Bredemeyer
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Strategy
Business Architecture
Implementation
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Information
Applications
Technology
SERVICES
Business Architecture
Business
Enterprise Architecture
Business
Architecture
is an integral
part of the
Enterprise
Architecture
Outcomes
Value
A
EA = IT Architecture
Improve project
performance
Technology
Architecture
EA = Enterprise-Wide
IT Architecture (EWITA)
Improve IT performance
Mandate
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Value
Key Points
&Assumptions
Source
: Process Maturity Assessment conducted by the Process Owners
Level 2
Repeatable
Level 4
Managed
23%
12%
3%
Project
100
%
Level5
Best Practice
(5)
High room for
improvement
Opportunities to improve
efficiency exist through
standardising and
streamlining processes
Level4
Managed
(4)
4. 0
Level3
Defined
(3)
3. 0
Level2
Repeatable
(2)
2. 0
3.7
1. 0
1.8
0. 0
Plan
2.2
Market
2.6
Fulfil
2.3
2.2
2.1
2.3
1.7
Manage
People
Manage
Manage
Information
,
Assets
&
Knowledge Services
& Systems
Level1
Adhoc(1)
P
R
O
G
R
A
M
M
E
C
O
M
M
I
T
T
E
E
Level 5
Best Practices
COO
Mana
Manage and
ge
deliver
Custo
content
Business
Unit - ser ving Cor por ate A
m er
Relati
ons
Business Unit ser ving end user s
IT Design
and
Developm en
t
.
Level 3
Defined
40%
Reconfigurable
P
R
O
V
I
S
I
O
N
I
N
G
Pr oject
Resour ces
(Technical)
Specialists and
f unctional staf f
combine to f orm
project teams
Pr oject
A
Pr oject
Resour ces
(Functional)
Pr oject
B
Specialists
Pr oject
C
Matrix
National
Accounts
Virtual
Market
Segmentation
Total
Source
: Process Maturity Assessment conducted by the Process Owners
CEO
Small
Business
(value
segment)
Mkg.
Small
Business
(cost
segment)
Individual
Consumer
Company structures
around market
segment
CEO
Dist.
Mkg.
Product
Design
Sales
Marketing
Time Based
Marketing for
Todays :
Marketing for
Tomorrows :
Dual organisations
one unit f ocusing on
tomorrow, one on
today
HIGH
COVERAGE
Strategically critical
HIGH coverage by in-flight initiatives
# In-flight
% Gap
Initiatives
Ref
Capabilities
C14
0%
C15
Sales Execution
0%
C30
Network Development
0%
C3
Plan to Realise
11%
C10
Channel Strategy
Management
25%
Capabilities
Customer Service
0%
C34
0%
14%
40%
C45
Initiative
Coverage
(primary
impact on L1
and L2
activities only)
Ref
C1
C8
C13
C2
C5
C40
LOW
COVERAGE
C48
Capabilities
# In-flight
% Gap
Initiatives
Acquisition and
Divestment
People Planning
Asset Lifecycle
Management
Strategically critical
LOW coverage by in-flight initiatives
YES
50%
60%
75%
100%
100%
100%
C43
Information, Knowledge
& Systems Delivery
People Day-to Day
Management
Capabilities
# In-flight
Initiatives
% Gap
People
C44
Finformation, Knowledge
& Systems Planning
11
63%
Assets &
Services
C45
11
67%
C41
21%
C4
Innovation Management
100%
C51
Supplier Relationship
Management
100%
Ref
Procedure or simple
algorithm
High
Realisation Tactics
Complex negotiation,
design, or decision process
# In-flight
% Gap
Initiatives
Ref
C17
Funds
investment
Outsourcing
Projects
Major redesign
projects
Sof tware
Automation
Projects
Credit card
approval
NO
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On-line
purchasing
Inventory
Management
ERP based
process
improvement
Strategic Importance
Must be done but adds
little value to product or
services
Mandate
22
Complex, dynamic
processes of high
value: undertake
business process
improvement ef f orts
that f ocus on people
International
Delivery
Low
100%
Strategically Important
New Product
design
Complex Processes,
not part of companys
core competency:
Outsource
Low
Widget
assembly
Straightf orward,
static, and valuable:
automate to gain
ef f iciency
Six-sigma
based process
improvement
High
Very important to success,
high value added to
products and services
Value
EA = Product Architecture +
Business Architecture (BA) + EWITA
Improve Product/Service Performance
Mandate
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Business Ownership
Strategic Architecture Mandate
Unresolved
Business Architecture Mandate
Operating
Model
IT Ownership
IT Architecture Mandate
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Markets
Industries
Customers
Market Segment
Channels
Customer Relationships
Value Proposition
Offering: Products /
Services
Capabilities
Processes / Value
Chains
Business Services
Functions
Data
Applications
Technology
The Environment
Market Model
Products and
Service Model
Customer Relationships
Value Proposition
Offering: Products /
Services
Mandate
Operating
Model
Capabilities
Processes / Value Chains
Business Services
Functions
Data
Applications
Technology
The Environment
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Customer Experience
Journey Maps
Learning Maps
Motivation Models
Value Maps
Product and Offering Maps
Design Models
So how do we respond?
Responding to the disruption challenge and ownership gap
If the goal of EA is to create coherence not just at the Operating Model level but
at the Business Model level, EA must:
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Summary
Responding to Disruption means changing the mandate for Architecture
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Putting it into
perspective
Our universe is expanding
As the pace of change and
impact of disruption increase,
and the shelf life for Business
Models decreases, we will see
emerging demand for
Enterprise Design skills
To support this demand, the
mandate of EA must increase
to be about creating coherent
Business Models
However, we wont be asked:
EA has the opportunity to
step up and lead The Design
of Business: but we must
consciously move away from
the Operating Model level and
develop the competencies to
redesign and prototype new
business models
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Thanks
End of part one.!
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STRATEGY
Is my investment portfolio
balanced across all of the
economic value add dimensions?
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PROGRAMMES
Benefits arent
quantified or traced
back to original goals
STRATEGY
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3. Establishing the
resources that are needed
by the capabilities and
ensuring business
architects provide
oversight at portfolio level
Planners not
accountable for delivery
PROGRAMMES
Benefits arent
quantified or traced
back to original goals
Anchor Models
Motivations
Business
Model
Capability
Model
Target
Architecture
Maturity &
Gaps
Work
Packages
Current
State Arch.
Transitioning
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Mission
CAPABILITY
Vision
People
Strategies
Goals
Process
Outcome
Tactics
Objectives
Tools
What is a Capability?
Some Definitions
An ability that an organization, person, or system possesses. Capabilities are typically expressed
in general and high-level terms and typically require a combination of organization, people,
processes, and technology to achieve. For example, marketing, customer contact, or outbound
telemarketing. The Open Group
The power or ability to do something Oxford English Dictionary
Measure of the ability of an entity (department, organization, person, system) to achieve its
objectives, specially in relation to its overall mission. Business Dictionary
The ability to perform or achieve certain actions or outcomes through a set of controllable and
measurable faculties, features, functions, processes, or services. Wikipedia
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Identifying Capabilities
Some Guidelines
All enterprises have capabilities they are the fundamental business outcomes of
the enterprise
Capabilities are the things the enterprise must be able to DO in order to fulfil its mission
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Business Architecture
Information Technology Architecture
CUSTOMER
Requires
People
PRODUCT
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APPLICATIONS
DATA
Process
PROCESS
PEOPLE
CAPABILITY
INFORMATION
Uses
Tools
TECHNOLOGY
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Planning &
Budgeting
JDE Supplier
Management
SAP SRM
Oracle EPM
Knowledge
Management
4
Sharepoint
Business Intelligence
Hyperion
Oracle ECM
Planner
KMI
Oracle BI
4 3
Business
Objects
Management Reporting
COGNOS
Oracle BI
Management
Reporting
4 3
COGNOS
2 4
Hyperion
2
4
MFG/Pro
PeopleSoft E1
Supplier
Manager
Oracle WCM
JDE
4 4
SAP
PeopleSoft E1
3 4
Oracle EBS
SAP SRM
PeopleSoft E1
Product Lifecycle
Management
(PLM)
Product
Portfolio
Management
5
PPM
5
Ideation &
Concept
Management
New Product
Development
5
PLM
Demand
Planner
Production
Planning
Materials
Planning
Demand Supply
3
Tool
Capacity
Planning
JDE
MFG/Pro
Purchasing
SAP
Oracle EBS
JDE
PeopleSoft E1
Inventory
Management
SAP
JDE
Oracle EBS
PeopleSoft E1
Warehouse
Management
JDE
SAP
Oracle EBS
MFG/Pro
Distribution
Management
JDE
SAP
Oracle EBS
PeopleSoft E1
JDE
Enterprise
Asset
Management
SAP
JDE
Oracle EBS
SAGE
Oracle SRM
PeopleSoft E1
Trade
Promotions
Management
3
TPM
SFA
Field Manager
Job Manager
After Sales
MFG/Pro
Manufacturing (Operational
Technology)
4
Rockwell
SCADA
SAGE
Quality
Management
2
MFG/Pro
JDE
Financial Management
4
SAP
JDE
MFG/Pro
BACS
Oracle EBS
PeopleSoft E1
MYOB
SAP
Oracle EBS
Recruitment
Management
Workforce
Management
3
Chris 21
Annual Leave
Request
Time &
Attendance
4
Tracker
Rewards Management
3
Chris Payroll
PeopleSoft
SAP Payroll
Oracle Payroll
ALESCO
Expense
Management
Organisationa
l Development
Management
3
3
Consumer
Management
(CM)
Consumer
Marketing
Management
T&A
Secure
CRONOS
Performance
Review
Campaign
Manager
Consumer
Sales
Management
Retailer
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Retail
Management
Application Status
Contain
Color Description
Emerging
Legend
Core
Consumer
Service
Management
Retire
After Sales
Service
Field
Management
Manufacturing
(Info Tech)
PLM
Partner
Management
Customer
Contain
Service
Management
Business Plan
Optimisation
Materials
Formulation &
Products
5
Emerging
Supply
Planning
Retire
Core
Contain
Strategic
Sourcing
4
Spaceman
Emerging
Customer
Sales
Management
Operational Reporting
2
Legend
Customer
Relationship
Management
(CRM)
Customer
Marketing
Management
Transition
Plan ?
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Transition Plan
Capability Increments & Dimensions
Objectives
Capabilities
Capability Increments
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People Dimension
Process Dimension
Material Dimension
Individual Training
Concepts
Infrastructure
Collective Training
Business Processes
Information Technology
Professional Development
Information Management
Equipment
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Upgrade Technology
Keep Maintaining
Bloomberg
Navision
SmartData
Navision (Resource
(Project
Corporate
Online
ComBiz
Costing)
Costing)
Online
Austraclear Exigo
0.9
0.7
ACL
Cashflow Reporting
0.6
Business Value
ProcureMax
Navision (Assets)
(AR) Visual Risk
Business
Median(PO)
Navision
BAF
0.8
Navision (AP)
0.5
0.4
Navision
Navision(Cash
(GL) Management)
NemPower - NemFuture
Procuregate
HED
FleetWatch
0.3
0.2
0.1
Leverage Technology
Retire or Replace
0
0
0.1
0.2
0.3
0.4
0.5
0.6
IT Value
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0.7
0.8
0.9
IT Median
1.1
Description
Stakeholders:
Concerns:
View Description:
Provides a view of the amalgamated means to end chain describing the strategic
capability direction for the organisation, and the associated transition plan required
to realise the vision. The primary intent of the roadmap is to inform the detailed
program of work. It is not the intent of the roadmap to be an executable program but
a key input into the defining the detailed program of work.
Metamodel Concepts
Model
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EA Delivery Roadmap
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An Overview of Roadmap
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Case Study
Goal: Create a global Operating Model balancing global capability with local agility
Global Professional Services firm with offices in many countries
Recent merger has created two centres of gravity in London (North) and Sydney (South)
Replication across the IT estate, with examples of good and bad in both North and South territories
Need to find an approach that identifies common, shared capability (which can be backed up with
investment in Global/ERP type systems) and local market uniqueness required to address the needs of
local clients (potentially enabled through local instances or market specific apps)
Business Motivation Model and Capability-driven planning were used to set goals and objectives at
group level, evaluate options and gaps at global and local level and build a capability-driven roadmap
A core of common capabilities were identified providing the Global footprint
Local market variations were evaluated at capability level
A roadmap was created to enable new and changed capabilities and to deliver the Global IT backbone
Platform:
Increase workflow by
having E2E execution
capability in key
practices & markets
Clients:
Build long term
relationships
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Lead the
Market:
Become the leading
professional services
firm in APAC
Service
Excellence:
To focus our business
on what matters
most to our clients
Service
Transformation
Deliver business
services that support
the needs of a Global
business
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Thank You
www.enterprisearchitects.com
david.ohara@enterprisearchitects.com
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Our Locations
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The Business Model Innovation Factory how to stay relevant when the world is changing
Saul Kaplan
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