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7 steps
business
to
architecture
A Value Based Approach
for Greater Success
by Mark McGregor
sponsored by
Executive Summary
For some, the term “Business Architecture” (BA) is seen as a play on words,
often interchanged with the more general term of “Enterprise Architecture”
(EA). Traditionally, EA has been viewed as an IT-centric view of the business.
This is not the right way to view or define Business Architecture - it is far more
powerful than that. Progressive organizations now realize that the true value
lies when business takes a lead role in such initiatives. Organizations whose
business users collaborate closely with the IT organization to blueprint their
environment in support of the business objectives - and understand the impact
on the company’s bottom line - will be poised to deliver meaningful value to
the organization.
Business Architecture is a key decision tool for organizations and could be
thought of in a similar way as GPS systems - being a “Navigation System for
Business”. It allows static blueprints to be transformed into dynamic models
for greater insight than ever before. With business managers in the driver’s
seat, different questions will be asked from the traditionally technical ones
normally associated with EA. In order to support these questions a different
approach to tools and solutions will be required.
The need for Business Architecture is obvious: the growing complexity of
organizations (both large and small) through various activities such as mergers
and acquisitions; “rightsizing” efforts; adherence to regulatory actions etc.
This results in enterprises trying to find meaningful opportunities to become
stronger, more efficient, more effective and more agile. This is the value that
Business Architecture brings to the table.
Business Architecture will help you answer questions like: “What processes
are not supporting my corporate objectives?”, “Am I paying too much support
on systems I don’t need?”, “What will be the impact of relocating or closing
an office”? These and potentially thousands of questions like these become
possible, with answers, with a good Business Architecture in place.
In addition, Business Architecture is becoming increasingly important to assist
in dealing with issues around governance, risk and compliance. From a
management perspective, the ability to be able to trace and audit what is going
on in your organization is crucial.
Ultimately having a good Business Architecture in place allows for smart
decision making. It enables your organization to use knowledge effectively in
order to react to business needs (revenue generating, cost cutting, enhancing
customer experience, etc.) and will allow you to respond to emerging
opportunities thus allowing you to compete more effectively.
Introducing the 7 Steps
The purpose of the 7 Step approach presented here is to ensure that visible value
is driven out of the process at every stage. This will help to ensure the survivability
of your Business Architecture initiative. It is not suggested that these are “the”
steps, just that they are a logical set of steps that when executed together will
enable you to deliver on the value and promise of Business Architecture.
By focusing on the values, rather than tools and technology, it will be easier to get
engagement with business managers. Each of the steps are designed to address
a particular general business need. It may be that while looking at each stage you
choose to customize and add your own focus. If you do, then please ensure you
talk to the problem/opportunity agenda of your line of business managers.
Although the project may be carried out by staff from the IT department, it is
vital that they stay focused and engaged on business needs and avoid being
sidetracked into technology. From step 2 onwards, you will see that technology
will be required to store and report on the information, but the emphasis is on
storage and reporting, not on applications or technology (e.g., BPMS).
By demonstrating value across the early stages of your project, you may find that
the project moves from a “push” into the business to a “pull” from the business -
we all like to be associated with success!
Going through the steps, be wary of allowing the team to be pulled too wide too
quickly. By “shouting” about successes at every step, you will be providing people
with something they are not used to - timely and appropriate information - the key
to any organizations’ continued success.
As you will discover, each step leads you in an easy and logical manner, toward
achieving a usable Business Architecture that can evolve and grow with your
operational needs.
7 Steps to
Business
Architecture
1
2
3
4
5
6
7
Create & Culture
Capture & Collate
Connect & Communicate
Collaborate & Consume
Customers & Coordination
Control & Comply
Change & Complete
Step 1
Create & Culture
Many architecture initiatives have failed to
deliver on the grandiose benefits promised by
some. These less successful projects come
from looking at things from a pure technology
perspective, or in some cases teams appear
to have tried to “boil the ocean”. Step 1 of
this process seeks to ensure that your initiative
becomes one of the success stories, by
providing the right grounding.
Successful projects understand and focus
their efforts on solving the business problems
that their organizations face. You can achieve
this by identifying and studying annual reports,
CXO strategy documents and management
objectives as well as listening to line managers
and executives. This allows you to stay
focused on solving the real problems that the
business has - as opposed to the problems
you may think they have!
Additionally, success depends on understanding your organization’s appetite for
change. Once you understand this you can select the appropriate change strategy.
All too often when reading books or taking advice we forget to understand the culture
of our own organization. What is the point in planning for a 2-year project in a culture
that demands “quick wins”, or simply aiming at quick wins at the expense of long term
benefit? It is crucial to understand how to balance these two objectives in a way that
gives maximum benefit at both levels, in a coordinated fashion.
With the inputs and understanding gained, we can now start to create the deliverables
for this step. Perhaps the most important will be the benefits realization plan. This will
illustrate to the business how we will deliver, measure and track the promised value
of our initiative. Then we need a communication plan that will help us to promote
the benefits across the organization and talks to the various agendas. Finally, we will
deliver our project plan.
Business Value: Agreed consensus on why we are undertaking the project and the
benefits that will be derived from the initiative, along with clear costs and time frames.
AGREED
Corporate
Strategy
Change
Culture
Business
Objectives
Project
Plan
Communication
Plan
FUTURE
STATE
Chooseyour
Strategy
High High High
High High Low
High Low High
Low High High
Benefit
Realization Plan
ROI
INPUTS
OUTPUTS
Step 2
Capture & Collate
With our objectives agreed, we can start collecting information that already exists.
This is very important as all too often architecture projects start with some sort of
analysis phase, completely ignoring the fact that much of what we might require
already exists in the organization.
In order to make the most use of such data, you should ensure that your project
makes use of a good repository, helping create a single source of truth for the
organization. Billions of dollars are wasted globally every year as a result of people
doing the same work over and over again as a result of the inability to see or access
information that already exists in organizations.
If you are like most organizations, the
chances are much of your business data
will be held in a combination of Excel®
,
Visio®
and PowerPoint®
. Effective BA tools
will allow you to easily bring in and store
that information (as well as information
from other operational systems). Data you
seek should include information about:
the processes and procedures you use;
the structure of the organization; the
information or data that is important; details
of the locations where you do business or
geographies of your customers, and some
details on the applications and technology
you use. We do not require detailed
technical information, just the high level
business information.
With such a large amount of collected information, you will need a classification
system to sort the information into a more usable form. Depending on your
organization or preference, it might make sense for you to use one of the existing
frameworks for this. If you require something that is industry agnostic, then the
recommendation would be the Zachman Framework - a great classification scheme.
If you prefer industry centric, then something equivalent to the eTOM model for
Telecom companies could make sense. At this level we only use the frameworks as
a guide for classification and collation.
Business Value: A single source of truth will promote common understanding and
save repetition and waste in the future.
Framework
forClassification
Horizontal Vertical
CAPTURE
COLLATE
Excel®
Visio®
PowerPoint®
HR Systems
CRM ERP
SINGLE
SOURCE
OFTRUTH
Step 3
Connect & Communicate
This step addresses a significant issue in
business - how to link different functional
groups within the business. It connects
different initiatives within those areas and
enables greater reuse. People often talk about
Business/IT alignment - we suggest this is
flawed. Instead we need to integrate them!
There is no such thing as IT projects, just
business projects enabled by IT, so this step
is all about helping to connect people together
and building communication between them.
Capturing and managing key business
documents, such as Value Chain Maps,
Balanced Scorecards and Strategy Maps,
helps to identify how projects, processes and
systems address or impact the business.
Connecting these with the key IT processes
and frameworks we might have such as ITIL
for Service Management or TOGAF for Systems Development ensures that IT
is always connected and using information that is important to the business.
This connection greatly increases the acceptance of IT proposals by the
business - they can understand the reasons for a system and allows IT to
ensure that the systems they create deliver to the real needs of the business.
Connectivity works at two levels. Firstly, it involves linking information about
our processes, organization, data, locations, applications and technologies
together. This linkage is missing in many of the tools people use to support
their architecture initiatives. Secondly, it is also about connecting things within
functional areas. For example we need to connect scorecards with strategy
from a business perspective, while within IT we need to connect service
delivery with systems development. Historically these latter two have used
their own standards and frameworks and duplicated each other’s work.
Once we have all the information centrally stored and located then it is available
to all who need access. Our role is then to communicate that information to all
those who need it in order to aid their understanding of how what they work on
connects to what others work on.
Business Value: Having everyone in the business and IT groups singing using
the same language avoids misunderstanding and reduces potential failures.
Singing from
the same
Hymn Sheet
ValueChain
Strategy Map
Balanced Scorecard
Software
Development
Service
Management
There is no
divide!
BUSINESS IT
ACCURATE
TIMELY
INFORMATION
Step 4
Collaborate & Consume
Having stored, connected and communicated information in our data store
for sharing, we now go further and use the information in ways that enables
people within the organization to collaborate. Organizations around the globe
are seeking smarter ways of enabling people within and across departments,
functions and teams to work together. As a part of our Business Architecture
initiative, we are helping deliver on that need.
In the previous step, we talked of communication -
this was about telling people what information was
available. Here we are talking about consumption of
information - getting them to use it. The distinction
is important as it has been a point of failure for
architecture initiatives in the past. There is no point
in collecting, collating and communicating if people
do not make use of what is available.
In order to aid this consumption we need to think
differently about how we serve up the information.
We need to ensure that we are able to provide the
information people might want, in the format they
want it and at the time they want it. In this respect
we are the servants and they are the masters.
If they want information via the Web or a portal,
this is what we provide. If they want the data
“pushed” to their iPad®
or Smartphone®
, then we
do this too. We should always remember it is their
information - we are simply helping to look after it
and to help them join the dots.
It is worth stating at this point that our perception of the Business Architecture
function is that it is there to assist and support, not to govern or mandate.
This may be one of the biggest differences when compared to traditional
architectural approaches, where “architects” specify solutions. In this model,
architects are just another group of users who consume and contribute to the
information.
Business Value: Ensures everyone is playing on the same team and
contributing to the corporate knowledge base.
SHARING
CORPORATE
KNOWLEDGE
Process
Teams
Architecture
Teams
Business
Managers
Step 5
Customers & Coordination
Sometimes when working on architecture
initiatives we forget what business is about -
winning and retaining customers who spend
in ways that are profitable for our organization.
If we don’t do this then we have no business.
So the reality is that a key purpose of our
Business Architecture has to be to help deliver
and support those customers.
There are many ways in which we can help
this. Not least is to assist the organization
with those joined up processes we discussed
in Step 3 and by making it easy for staff to
work together as seen in Step 4. Enabling
the organization to bring the full power of
the combination of people, process and
technology to bear on the customer massively
increases our chances of success. That success is both at the architecture,
where we can be seen to be delivering real value and at the business level.
At this step, we change from being passive with data to being active with
information. We can identify overlaps across processes and data that when
removed will improve organizational ability. We can also assist business
managers to identify new and different ways of working and support them in
their ever-changing needs.
You will have a unique ability, through your knowledge at this stage, to enable
far greater coordination among project teams, business users and staff than is
likely to have occurred before.
The value and importance of this step can never be overstated. A quick look
around the globe at highly successful organizations reveals that all succeed as
a result of great coordination between their staff, customers and suppliers
and a strong focus on understanding and delivering value to their customers.
The value of having people, process and technology aligned may be more
valuable in the long-term to an organization than any single innovation or
product offering.
Business Value: When all parts of our organization work in harmony, then we
generate happier customers, who stay longer and spend more.
GENERATING
HAPPIER
CUSTOMERS
People Technology
Process
Step 6
Control & Comply
Often Governance, Risk and Compliance (GRC) is seen as a check-the-box
exercise, whereas it is key to keeping you in business and your executives
out of jail! These are the two things that rank highest on most executive
agendas. Of course it can also contribute considerable overhead in the
running of your business.
Much overhead comes about because GRC
initiatives frequently run as separate projects
with separate teams working on different
information. This may get you through an initial
audit, but does not ensure that what happens
within your organization is in line with what the
GRC folks think they have captured. Very often
GRC is looked at it purely in terms of financial
perspectives. In reality, it is an operational
issue, that when done right will automatically
address many of the financial issues.
By following the steps thus far and having
all your processes, policies, procedures,
organizational and data information in the same
place, it makes it easier for operational managers
to lead their people and ensure consistency
in how work gets done. By having users of
process/data etc. and the operational managers working on the information in
your repository ensures that if things break or need changes then they will inform
you. (As an example if you can’t book your vacation because a process is broken
how long will it take before you tell someone about it)!
Having your auditors use your data for compliance and regulatory purposes,
acts both as a sanity check for what you do and how you do it. It also helps
executives ensure that their “stay-out-of-jail card” will work.
We have touched on reduced costs in earlier steps, but here we are looking at
the reduced cost of compliance and audit. In one case we are familiar with the
client reported an audit saving of $2,000 per process, and a reduction in audit
time of 33%.
Business Value: Greater consistency and compliance with significantly
reduced costs.
GOVERNANCE
RISK
COMPLIANCE
Auditor
ReducedCost GreaterConsistency
Regulator
Stay in Business Stayoutof Jail
OPEN
FOR BUSINESS
Step 7
Change & Compete
Ultimately the only reason to take
the time and put in the effort is so
that you can ask smarter questions
and get smarter answers.
Business Architecture will provide
you with a decision support system
that understands the complexity of
your organization. All too often when
making one change you risk breaking
many other parts.
Your ability to sense and respond to
changes in your customer or market
behavior is vital. With organizations of
all sizes entering new markets and new
geographies there is no such thing as
business as usual.
The “Wheel of Change” is a simple tool
designed to provide you with examples
of the categories of questions you are
likely to need answers to. As you can see it only has 4 rings, each of which
rotate, but still these 4 generate over 1,250 categories, each of which will
contain many questions. Sometimes it is not possible to simplify, sometimes
we just have to accept that things are complex and that what we need are
systems to help us with that complexity.
Use the wheel to help guide you through your own path. The important thing
here is to make sure that the repository, upon which you will rely for your
answers needs to be robust, properly populated, well maintained and available
to all. A good tool should provide you with all the things you need.
The right tool will also enable you to see your information presented graphically,
either via dashboards or reports, in the way that suits your business need best.
Good Business Architecture, just like good Enterprise Architecture is a
process. Consider one cycle round these steps is akin to taking one flight
of stairs - the number of flights you need to take depends on how high your
business wants to climb and how much you can prove the value of each flight.
BUSINESS
NAVIGATION
SYSTEM
Management Dashboard
KNOWLEDGE
REPOSITORY
WheelofChange
STAKEHOLDERS CUSTOMERS
REGULATORS
SOCIETYSTAFFMARKET
G
OVERNANCE REVENUE
RISK
COMPLIANCEWASTE
OPPORTUNITY
TE
CHNOLOGY PROCESS
ORGANISATION
L
OCATIONDATA
APPLICATION
HOW WHO
WHAT
W
HYWHERE
WHEN
AskQuestions?
(Reactive)
SeekAnswers?
(Proactive)
AskQuestions?
(Reactive)
SeekAnswers?
(Proactive)
Conclusion
Business-driven, Business-owned and Business-led - these will be the
difference between initiatives that fail and those that succeed. Success with
Business Architecture results not just in the obvious bottom line results, but will
provide your IT teams with more accurate requirements and a greater insight
into how best they can support the organization.
We don’t talk of bridging the gap between “Sales & Accounts” or between
“Marketing and Production”, instead each understands that they have to play
their part in the overall achievement of the organizations goals and objectives.
So it should be with IT, instead of trying to run the business or tell the
business how to run, they need to stay focused on how they can help and
support the business.
Business Architecture is the “glue” that links the pieces together as a
coherent whole. It is the approach by which you can step forward and deliver
the Navigation System for Business, enabling your business to ask smart
questions and get intelligent answers. Ultimately, your success hinges upon
your ability to serve your customers better than the next company; this is only
achievable if everything and everyone in your organization pulls together in the
same direction.
Although you may not need to buy tooling on Day 1, understanding what tools
you will use early in your cycle will certainly save you a lot of pain later.
“Although you may
not need to buy
tooling on Day 1,
understanding what
tools you will use
early in your cycle will
certainly save you a
lot of pain later.”
About The Author
Mark has worked in the IT Industry for over 30 years, he has held executive positions
with a number of software vendors. Well known for his ability to help companies
bridge the gap between business and IT, more recently he has focused helping
business understand how to maximize the value of process programs, from both a
people and systems perspective.
Mark has authored five books “People-Centric Process Management”, “In Search of
BPM Excellence”, “Thrive! How to Succeed in The Age of The Customer”, “Winning
With Enterprise Process Management” and “Extreme Competition” (Contributor).
The range and depth of his experience lead him to be sought after for speaking,
advice and workshops by users, vendors, analysts and conference organizers alike.
Mark can be contacted via mark@markmcgregor.com or www.markmcgregor.com
About the Sponsor
Casewise believes that, in order to be successful, architecture initiatives must deliver true business
value. We recognize that although tools are important to complete a Business Architecture project,
organizations will need more than that - including support from Business and IT Leaders,
a corporate culture ready to embrace change and a collaborative team environment.
Therefore, we are excited to sponsor the 7 Steps to Business Architecture White Paper, as many of
the Author’s words are consistent with our approach.
For over 20 years, Casewise has delivered business value to Clients through process-driven
business transformation initiatives. No matter where you are in your BA maturity, our Professional
Services team coupled with our leading software solutions can assist you.
•	 Corporate Modeler - Allows you to diagram and build a blueprint of your organization,
visually representing what you do, why you do it, how you do it and what enables it.
•	 Automodeler - Enables you to quickly and easily import data and maps from the Microsoft
Office®
Suite, building models automatically, so you don’t have to re-create the wheel.
•	 V-Modeler - Provides users the flexibility to continue using Visio®
, while contributing to the
central repository in real-time, so knowledge is shared and reusable.
•	 Corporate Portal - Enables users throughout the organization to continuously contribute
and update to the initiative over the Web.
•	 Corporate Modeler Intelligence (CMI) - Creates reports and dashboards that provide
your organization with insights to make decisions.
•	 Corporate Synergy - Allows you to turn manual processes into automated ones by
easily prototyping and deploying workflow applications.
We believe the best way to achieve success is to partner with our Clients and help them
through every step of their business architecture journey - demonstrating success
at every stage.
With a team of passionate experts, and with offices in the United Kingdom,
United States, France, Belgium and Germany - and a network of global
resellers - Casewise provides thought leadership and solutions enabling clients
to achieve stronger strategic planning, better decision making and improved
business efficiencies.
If you’d like to learn more, please visit us at www.casewise.com
Copyright Mark McGregor www.markmcgregor.com 2010 – All rights reserved
Follow us on www.twitter.com/casewise

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Casewise - 7 steps to business architecture

  • 1. 7 steps business to architecture A Value Based Approach for Greater Success by Mark McGregor sponsored by
  • 2. Executive Summary For some, the term “Business Architecture” (BA) is seen as a play on words, often interchanged with the more general term of “Enterprise Architecture” (EA). Traditionally, EA has been viewed as an IT-centric view of the business. This is not the right way to view or define Business Architecture - it is far more powerful than that. Progressive organizations now realize that the true value lies when business takes a lead role in such initiatives. Organizations whose business users collaborate closely with the IT organization to blueprint their environment in support of the business objectives - and understand the impact on the company’s bottom line - will be poised to deliver meaningful value to the organization. Business Architecture is a key decision tool for organizations and could be thought of in a similar way as GPS systems - being a “Navigation System for Business”. It allows static blueprints to be transformed into dynamic models for greater insight than ever before. With business managers in the driver’s seat, different questions will be asked from the traditionally technical ones normally associated with EA. In order to support these questions a different approach to tools and solutions will be required. The need for Business Architecture is obvious: the growing complexity of organizations (both large and small) through various activities such as mergers and acquisitions; “rightsizing” efforts; adherence to regulatory actions etc. This results in enterprises trying to find meaningful opportunities to become stronger, more efficient, more effective and more agile. This is the value that Business Architecture brings to the table. Business Architecture will help you answer questions like: “What processes are not supporting my corporate objectives?”, “Am I paying too much support on systems I don’t need?”, “What will be the impact of relocating or closing an office”? These and potentially thousands of questions like these become possible, with answers, with a good Business Architecture in place. In addition, Business Architecture is becoming increasingly important to assist in dealing with issues around governance, risk and compliance. From a management perspective, the ability to be able to trace and audit what is going on in your organization is crucial. Ultimately having a good Business Architecture in place allows for smart decision making. It enables your organization to use knowledge effectively in order to react to business needs (revenue generating, cost cutting, enhancing customer experience, etc.) and will allow you to respond to emerging opportunities thus allowing you to compete more effectively.
  • 3. Introducing the 7 Steps The purpose of the 7 Step approach presented here is to ensure that visible value is driven out of the process at every stage. This will help to ensure the survivability of your Business Architecture initiative. It is not suggested that these are “the” steps, just that they are a logical set of steps that when executed together will enable you to deliver on the value and promise of Business Architecture. By focusing on the values, rather than tools and technology, it will be easier to get engagement with business managers. Each of the steps are designed to address a particular general business need. It may be that while looking at each stage you choose to customize and add your own focus. If you do, then please ensure you talk to the problem/opportunity agenda of your line of business managers. Although the project may be carried out by staff from the IT department, it is vital that they stay focused and engaged on business needs and avoid being sidetracked into technology. From step 2 onwards, you will see that technology will be required to store and report on the information, but the emphasis is on storage and reporting, not on applications or technology (e.g., BPMS). By demonstrating value across the early stages of your project, you may find that the project moves from a “push” into the business to a “pull” from the business - we all like to be associated with success! Going through the steps, be wary of allowing the team to be pulled too wide too quickly. By “shouting” about successes at every step, you will be providing people with something they are not used to - timely and appropriate information - the key to any organizations’ continued success. As you will discover, each step leads you in an easy and logical manner, toward achieving a usable Business Architecture that can evolve and grow with your operational needs. 7 Steps to Business Architecture 1 2 3 4 5 6 7 Create & Culture Capture & Collate Connect & Communicate Collaborate & Consume Customers & Coordination Control & Comply Change & Complete
  • 4. Step 1 Create & Culture Many architecture initiatives have failed to deliver on the grandiose benefits promised by some. These less successful projects come from looking at things from a pure technology perspective, or in some cases teams appear to have tried to “boil the ocean”. Step 1 of this process seeks to ensure that your initiative becomes one of the success stories, by providing the right grounding. Successful projects understand and focus their efforts on solving the business problems that their organizations face. You can achieve this by identifying and studying annual reports, CXO strategy documents and management objectives as well as listening to line managers and executives. This allows you to stay focused on solving the real problems that the business has - as opposed to the problems you may think they have! Additionally, success depends on understanding your organization’s appetite for change. Once you understand this you can select the appropriate change strategy. All too often when reading books or taking advice we forget to understand the culture of our own organization. What is the point in planning for a 2-year project in a culture that demands “quick wins”, or simply aiming at quick wins at the expense of long term benefit? It is crucial to understand how to balance these two objectives in a way that gives maximum benefit at both levels, in a coordinated fashion. With the inputs and understanding gained, we can now start to create the deliverables for this step. Perhaps the most important will be the benefits realization plan. This will illustrate to the business how we will deliver, measure and track the promised value of our initiative. Then we need a communication plan that will help us to promote the benefits across the organization and talks to the various agendas. Finally, we will deliver our project plan. Business Value: Agreed consensus on why we are undertaking the project and the benefits that will be derived from the initiative, along with clear costs and time frames. AGREED Corporate Strategy Change Culture Business Objectives Project Plan Communication Plan FUTURE STATE Chooseyour Strategy High High High High High Low High Low High Low High High Benefit Realization Plan ROI INPUTS OUTPUTS
  • 5. Step 2 Capture & Collate With our objectives agreed, we can start collecting information that already exists. This is very important as all too often architecture projects start with some sort of analysis phase, completely ignoring the fact that much of what we might require already exists in the organization. In order to make the most use of such data, you should ensure that your project makes use of a good repository, helping create a single source of truth for the organization. Billions of dollars are wasted globally every year as a result of people doing the same work over and over again as a result of the inability to see or access information that already exists in organizations. If you are like most organizations, the chances are much of your business data will be held in a combination of Excel® , Visio® and PowerPoint® . Effective BA tools will allow you to easily bring in and store that information (as well as information from other operational systems). Data you seek should include information about: the processes and procedures you use; the structure of the organization; the information or data that is important; details of the locations where you do business or geographies of your customers, and some details on the applications and technology you use. We do not require detailed technical information, just the high level business information. With such a large amount of collected information, you will need a classification system to sort the information into a more usable form. Depending on your organization or preference, it might make sense for you to use one of the existing frameworks for this. If you require something that is industry agnostic, then the recommendation would be the Zachman Framework - a great classification scheme. If you prefer industry centric, then something equivalent to the eTOM model for Telecom companies could make sense. At this level we only use the frameworks as a guide for classification and collation. Business Value: A single source of truth will promote common understanding and save repetition and waste in the future. Framework forClassification Horizontal Vertical CAPTURE COLLATE Excel® Visio® PowerPoint® HR Systems CRM ERP SINGLE SOURCE OFTRUTH
  • 6. Step 3 Connect & Communicate This step addresses a significant issue in business - how to link different functional groups within the business. It connects different initiatives within those areas and enables greater reuse. People often talk about Business/IT alignment - we suggest this is flawed. Instead we need to integrate them! There is no such thing as IT projects, just business projects enabled by IT, so this step is all about helping to connect people together and building communication between them. Capturing and managing key business documents, such as Value Chain Maps, Balanced Scorecards and Strategy Maps, helps to identify how projects, processes and systems address or impact the business. Connecting these with the key IT processes and frameworks we might have such as ITIL for Service Management or TOGAF for Systems Development ensures that IT is always connected and using information that is important to the business. This connection greatly increases the acceptance of IT proposals by the business - they can understand the reasons for a system and allows IT to ensure that the systems they create deliver to the real needs of the business. Connectivity works at two levels. Firstly, it involves linking information about our processes, organization, data, locations, applications and technologies together. This linkage is missing in many of the tools people use to support their architecture initiatives. Secondly, it is also about connecting things within functional areas. For example we need to connect scorecards with strategy from a business perspective, while within IT we need to connect service delivery with systems development. Historically these latter two have used their own standards and frameworks and duplicated each other’s work. Once we have all the information centrally stored and located then it is available to all who need access. Our role is then to communicate that information to all those who need it in order to aid their understanding of how what they work on connects to what others work on. Business Value: Having everyone in the business and IT groups singing using the same language avoids misunderstanding and reduces potential failures. Singing from the same Hymn Sheet ValueChain Strategy Map Balanced Scorecard Software Development Service Management There is no divide! BUSINESS IT ACCURATE TIMELY INFORMATION
  • 7. Step 4 Collaborate & Consume Having stored, connected and communicated information in our data store for sharing, we now go further and use the information in ways that enables people within the organization to collaborate. Organizations around the globe are seeking smarter ways of enabling people within and across departments, functions and teams to work together. As a part of our Business Architecture initiative, we are helping deliver on that need. In the previous step, we talked of communication - this was about telling people what information was available. Here we are talking about consumption of information - getting them to use it. The distinction is important as it has been a point of failure for architecture initiatives in the past. There is no point in collecting, collating and communicating if people do not make use of what is available. In order to aid this consumption we need to think differently about how we serve up the information. We need to ensure that we are able to provide the information people might want, in the format they want it and at the time they want it. In this respect we are the servants and they are the masters. If they want information via the Web or a portal, this is what we provide. If they want the data “pushed” to their iPad® or Smartphone® , then we do this too. We should always remember it is their information - we are simply helping to look after it and to help them join the dots. It is worth stating at this point that our perception of the Business Architecture function is that it is there to assist and support, not to govern or mandate. This may be one of the biggest differences when compared to traditional architectural approaches, where “architects” specify solutions. In this model, architects are just another group of users who consume and contribute to the information. Business Value: Ensures everyone is playing on the same team and contributing to the corporate knowledge base. SHARING CORPORATE KNOWLEDGE Process Teams Architecture Teams Business Managers
  • 8. Step 5 Customers & Coordination Sometimes when working on architecture initiatives we forget what business is about - winning and retaining customers who spend in ways that are profitable for our organization. If we don’t do this then we have no business. So the reality is that a key purpose of our Business Architecture has to be to help deliver and support those customers. There are many ways in which we can help this. Not least is to assist the organization with those joined up processes we discussed in Step 3 and by making it easy for staff to work together as seen in Step 4. Enabling the organization to bring the full power of the combination of people, process and technology to bear on the customer massively increases our chances of success. That success is both at the architecture, where we can be seen to be delivering real value and at the business level. At this step, we change from being passive with data to being active with information. We can identify overlaps across processes and data that when removed will improve organizational ability. We can also assist business managers to identify new and different ways of working and support them in their ever-changing needs. You will have a unique ability, through your knowledge at this stage, to enable far greater coordination among project teams, business users and staff than is likely to have occurred before. The value and importance of this step can never be overstated. A quick look around the globe at highly successful organizations reveals that all succeed as a result of great coordination between their staff, customers and suppliers and a strong focus on understanding and delivering value to their customers. The value of having people, process and technology aligned may be more valuable in the long-term to an organization than any single innovation or product offering. Business Value: When all parts of our organization work in harmony, then we generate happier customers, who stay longer and spend more. GENERATING HAPPIER CUSTOMERS People Technology Process
  • 9. Step 6 Control & Comply Often Governance, Risk and Compliance (GRC) is seen as a check-the-box exercise, whereas it is key to keeping you in business and your executives out of jail! These are the two things that rank highest on most executive agendas. Of course it can also contribute considerable overhead in the running of your business. Much overhead comes about because GRC initiatives frequently run as separate projects with separate teams working on different information. This may get you through an initial audit, but does not ensure that what happens within your organization is in line with what the GRC folks think they have captured. Very often GRC is looked at it purely in terms of financial perspectives. In reality, it is an operational issue, that when done right will automatically address many of the financial issues. By following the steps thus far and having all your processes, policies, procedures, organizational and data information in the same place, it makes it easier for operational managers to lead their people and ensure consistency in how work gets done. By having users of process/data etc. and the operational managers working on the information in your repository ensures that if things break or need changes then they will inform you. (As an example if you can’t book your vacation because a process is broken how long will it take before you tell someone about it)! Having your auditors use your data for compliance and regulatory purposes, acts both as a sanity check for what you do and how you do it. It also helps executives ensure that their “stay-out-of-jail card” will work. We have touched on reduced costs in earlier steps, but here we are looking at the reduced cost of compliance and audit. In one case we are familiar with the client reported an audit saving of $2,000 per process, and a reduction in audit time of 33%. Business Value: Greater consistency and compliance with significantly reduced costs. GOVERNANCE RISK COMPLIANCE Auditor ReducedCost GreaterConsistency Regulator Stay in Business Stayoutof Jail OPEN FOR BUSINESS
  • 10. Step 7 Change & Compete Ultimately the only reason to take the time and put in the effort is so that you can ask smarter questions and get smarter answers. Business Architecture will provide you with a decision support system that understands the complexity of your organization. All too often when making one change you risk breaking many other parts. Your ability to sense and respond to changes in your customer or market behavior is vital. With organizations of all sizes entering new markets and new geographies there is no such thing as business as usual. The “Wheel of Change” is a simple tool designed to provide you with examples of the categories of questions you are likely to need answers to. As you can see it only has 4 rings, each of which rotate, but still these 4 generate over 1,250 categories, each of which will contain many questions. Sometimes it is not possible to simplify, sometimes we just have to accept that things are complex and that what we need are systems to help us with that complexity. Use the wheel to help guide you through your own path. The important thing here is to make sure that the repository, upon which you will rely for your answers needs to be robust, properly populated, well maintained and available to all. A good tool should provide you with all the things you need. The right tool will also enable you to see your information presented graphically, either via dashboards or reports, in the way that suits your business need best. Good Business Architecture, just like good Enterprise Architecture is a process. Consider one cycle round these steps is akin to taking one flight of stairs - the number of flights you need to take depends on how high your business wants to climb and how much you can prove the value of each flight. BUSINESS NAVIGATION SYSTEM Management Dashboard KNOWLEDGE REPOSITORY WheelofChange STAKEHOLDERS CUSTOMERS REGULATORS SOCIETYSTAFFMARKET G OVERNANCE REVENUE RISK COMPLIANCEWASTE OPPORTUNITY TE CHNOLOGY PROCESS ORGANISATION L OCATIONDATA APPLICATION HOW WHO WHAT W HYWHERE WHEN AskQuestions? (Reactive) SeekAnswers? (Proactive) AskQuestions? (Reactive) SeekAnswers? (Proactive)
  • 11. Conclusion Business-driven, Business-owned and Business-led - these will be the difference between initiatives that fail and those that succeed. Success with Business Architecture results not just in the obvious bottom line results, but will provide your IT teams with more accurate requirements and a greater insight into how best they can support the organization. We don’t talk of bridging the gap between “Sales & Accounts” or between “Marketing and Production”, instead each understands that they have to play their part in the overall achievement of the organizations goals and objectives. So it should be with IT, instead of trying to run the business or tell the business how to run, they need to stay focused on how they can help and support the business. Business Architecture is the “glue” that links the pieces together as a coherent whole. It is the approach by which you can step forward and deliver the Navigation System for Business, enabling your business to ask smart questions and get intelligent answers. Ultimately, your success hinges upon your ability to serve your customers better than the next company; this is only achievable if everything and everyone in your organization pulls together in the same direction. Although you may not need to buy tooling on Day 1, understanding what tools you will use early in your cycle will certainly save you a lot of pain later. “Although you may not need to buy tooling on Day 1, understanding what tools you will use early in your cycle will certainly save you a lot of pain later.” About The Author Mark has worked in the IT Industry for over 30 years, he has held executive positions with a number of software vendors. Well known for his ability to help companies bridge the gap between business and IT, more recently he has focused helping business understand how to maximize the value of process programs, from both a people and systems perspective. Mark has authored five books “People-Centric Process Management”, “In Search of BPM Excellence”, “Thrive! How to Succeed in The Age of The Customer”, “Winning With Enterprise Process Management” and “Extreme Competition” (Contributor). The range and depth of his experience lead him to be sought after for speaking, advice and workshops by users, vendors, analysts and conference organizers alike. Mark can be contacted via mark@markmcgregor.com or www.markmcgregor.com
  • 12. About the Sponsor Casewise believes that, in order to be successful, architecture initiatives must deliver true business value. We recognize that although tools are important to complete a Business Architecture project, organizations will need more than that - including support from Business and IT Leaders, a corporate culture ready to embrace change and a collaborative team environment. Therefore, we are excited to sponsor the 7 Steps to Business Architecture White Paper, as many of the Author’s words are consistent with our approach. For over 20 years, Casewise has delivered business value to Clients through process-driven business transformation initiatives. No matter where you are in your BA maturity, our Professional Services team coupled with our leading software solutions can assist you. • Corporate Modeler - Allows you to diagram and build a blueprint of your organization, visually representing what you do, why you do it, how you do it and what enables it. • Automodeler - Enables you to quickly and easily import data and maps from the Microsoft Office® Suite, building models automatically, so you don’t have to re-create the wheel. • V-Modeler - Provides users the flexibility to continue using Visio® , while contributing to the central repository in real-time, so knowledge is shared and reusable. • Corporate Portal - Enables users throughout the organization to continuously contribute and update to the initiative over the Web. • Corporate Modeler Intelligence (CMI) - Creates reports and dashboards that provide your organization with insights to make decisions. • Corporate Synergy - Allows you to turn manual processes into automated ones by easily prototyping and deploying workflow applications. We believe the best way to achieve success is to partner with our Clients and help them through every step of their business architecture journey - demonstrating success at every stage. With a team of passionate experts, and with offices in the United Kingdom, United States, France, Belgium and Germany - and a network of global resellers - Casewise provides thought leadership and solutions enabling clients to achieve stronger strategic planning, better decision making and improved business efficiencies. If you’d like to learn more, please visit us at www.casewise.com Copyright Mark McGregor www.markmcgregor.com 2010 – All rights reserved Follow us on www.twitter.com/casewise