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Business Architecture as an Approach to Connect Strategy & Projects



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Helen Palmer @helenmpal hosted interactive sessions at the October 2015 IIBA professional development days in Melbourne and Brisbane.

The presentation titled "Business Architecture as an Approach to Connect Strategy & Projects" covers a high level introduction to the discipline of Business Architecture and the platform it provides for effectively executing Business Strategy. Helen provided insights into how Business Architecture is positioned within the wider context of Enterprise Architecture and how the value it delivers can improve greatly with an increase in the mandate from the business. The presentation also gives an overview of some of the key artifacts and models used in defining a Business Architecture.

Enterprise Architects offers IIBA members an exclusive discount on our (IIBA endorsed) Applied Business Architecture: 4 Day Course

You can reach out to one of our learning services consultants at to find out more.

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Business Architecture as an Approach to Connect Strategy & Projects

  1. 1. | 1 Business Architecture as an Approach to Connect Strategy & Projects
  2. 2. | 2 Enterprise Architects The Design of Business
  3. 3. | 3 @helenmpal is your presenter, representing @eatraining Want to Tweet?
  4. 4. | 4 Introduction to Business Architecture
  5. 5. | 5 Enterprise Architecture Mapping and modeling the Enterprise
  6. 6. | 6 The Business Architecture “defines the business strategy, governance, organisation and key business processes.” ~TOGAF®9.1 Specification
  7. 7. | 7 Why do Business Architecture?
  8. 8. | 8 VALUE MANDATE E A B C D Business Architecture is seen as a positive progression away from IT *Adapted from Ruth Malan, Dana Bredemeyer • Maximise Product Profitability • Maximise Market Share • Maximise Customer Lifetime Value Improve project performance Improve enterprise wide program and portfolio performance Improve Business Performance Improve Market Performance (Shareholder Value) Improve Product/Service Performance The Mandate Curve
  9. 9. | 9 The Business Architect Mandate Environ. Models, Competitor Analysis, Strategic Diagnosis Segmentation Positioning, Strategy Map, Decision Trees Perceptual Mapping, Distribution Channels and Models Customer Experience, Journey Maps, Learning Maps Campaign Models, Advertising Messages, Key Messages Competitor Strategy, Expansion Strategy, Innovation Strategy Marketing Mix, Product Lifecycle Model, Pricing and Cash Flow Analysis Regression Analysis and forecasting, Platform and Expansion Plans Design models, Value Maps, Product and Offering Maps, Design Models Product Line Plans Motivation Model, Driver Trees, Systems Theory Org. Model and Structures, Org. Culture, Partner and Supplier Models Change Models, Organisation Unit Model, Org. Learning Models Resource Management and Scheduling Procedures Contracts, Time and Expense Procedures Performance, Business Structures, Value Maps Risk Models, Growth Models, Capital Structure Models Performance Alignment Model, Root Cause Model Balanced Scorecard, Financial Reporting Financial Reporting Procedures, EPM Value Chain, Value Streams, Decisions & Events Capability Models Process Maps Function Models Use Cases Process Models Workflows & Activities Operating Procedures Info’ Mgt Principles Info Use Policies Meta-Data Definition Subject Classification Information Classification Enterprise Info Model, Info Lifecycle Model, Human Interface Model Custodian Model, Integration View, Presentation Models Security Rules, BI Reports, User Interface, Warehouse and Datamarts Health Assessment Application Principles Application Framework Current State Target State Services Definitions Function Models Wiring Diagrams Activity Views Patterns Deployment Model Application Standards Resource Estimates? Class/Module View Configuration Models Data Principles Reference Data Stds Data Dictionary, Data quality Processes Data Directory Field Level Views Tech’ Watch Health Assessment Asset Lifecycle Technology Principles Tech’ Reference Model Current State Target State Service Catalogue Service Definition Mud Maps (N/W, etc.) Technology Standards CMDB Management CONTEXTUAL CONCEPTUAL LOGICAL PHYSICAL IMPLEMENTATION MARKET APPLICATION DATA TECHNOLOGY PRODUCTS & SERVICES ORGANISATIONAL PERFORMANCE PROCESS & FUNCTION INFORMATION PRINCIPAL BUSINESS ARCHITECT SENIOR BUSINESS ANALYST / SENIOR BUSINESS ARCHITECT BUSINESS ANALYST STRATEGIC BUSINESS ARCHITECT The EA Skills and Views Matrix BUSINESS ARCHITECT
  10. 10. | 10 What do Stakeholders talk to you about? There’s a customer expectation gap between the products we develop and the service we deliver. Are there synergies across programmes that we aren’t aware of? There is a lot of activity going on out there, how do I know we are doing the right things? The project is overlapping with another project – it seems a waste of resources. Money is getting spent on things that don’t seem to be important – what is the priority? Management Reporting is complex and uses a lot of disparate systems and spreadsheets to produce. The way we (don’t) manage knowledge, documents and content is causing problems. Customer complaints are on the increase and the only way we are picking up errors. Nobody is paying attention to or addressing the pain points we have in process and workflow.
  11. 11. | 11 The minefield between Strategy and Projects Strategy not sufficiently tied to operations Needed capabilities not properly understood or measured Planners not accountable for delivery Benefits aren’t quantified or traced back to original goals The drivers of strategy are often misaligned
  12. 12. | 12 Connecting Strategy & Projects
  13. 13. | 13 TOGAF® Architecture Development Method Phase B. Business Architecture 1. Select reference models, viewpoints and tools 2. Develop Baseline Business Architecture Description 3. Develop Target Business Architecture Description 4. Perform gap analysis 5. Define candidate roadmap components 6. Resolve impacts across the Architecture Landscape 7. Conduct formal stakeholder review. 8. Finalise the Business Architecture. 9. Create Architecture Definition Document. The Open Group Architecture Framework (TOGAF®)
  14. 14. | 14 How a business can be represented The Business model is described in terms of business motivation and outcomes and is often represented in the form of a Business Motivation Model Various business models produce different outcomes for different scenarios. Developing scenarios for business models is done using the Business Model Canvas At the conceptual level develop the detail of the various strategic business models using the (EA) Business Reference Model with corresponding value chain models The capability layer expands the conceptual business model into detailed business capabilities and describes their inter-relationships and target maturity levels. It is often represented in the business anchor or capability model The resources layer addresses all the resources that are within the capabilities and is found in the more traditional process and functional decomposition models THE BUSINESS MOTIVATION MODEL THE BUSINESS MODEL CANVAS THE VALUE SYSTEM MODEL THE BUSINESS CAPABILITY ANCHOR MODEL RESOURCE MODELRESOURCES CAPABILITY BUSINESS STRATEGY MOTIVATION
  15. 15. | 15 “Architecture Thinking” according to EA Vision Strategy Blueprinting Roadmapping Governance MACRO ENVIRONMENT INDUSTRY SCAN INFLUENCERS ASSESSMENT MEANS ENDS SWOT PERFORMANCE • Financial • Customer • Internal (current) • Internal (long- term) MOTIVATION MODEL BUSINESS MODEL SERVICE MODEL CAPABILITY MODEL People ROADMAP GOVERNANCE * Closed feedback loop to Motivation Model Information Technology Process MARKET MODEL MEANS ASSESSMENT
  16. 16. | 16 BMM according to Object Management Group
  17. 17. | 17 Business Motivation Model (Adapted) Key Elements
  18. 18. | 18 Business Motivation Model (Adapted) Adapted from Business Motivation Model - OMG A statement with action, product/service & market “Provide mobile tailored wealth management services to self- employed people in Australia” Specific actions “Call first-time customers personally” The strategic course of action “Defend our current customer base to reduce churn and increase repeat business” A statement of a desired future state “Be the wealth management services provider of choice with best customer service for self- employed people.” Quantitative specific statement about desired results “By end of year, 90% of first- time customers get a personal call within 2 business days.” Qualitative general statement about desired results “Improve customer satisfaction (over the next five years)”
  19. 19. | 19 B U S I N E S S D E S I G N T O O LBusiness Motivation Model There are many ways to depict the BMM. This version EA has found to be most effective. C U S T O M E R S M I S S I O N V I S I O N S T R A T E G I E S L E V E R S INFLUENCERS O B J E C T I V E S G O A L S O B J E C T I V E S C H A N N E L S D R I V E R S G O A L S Adapted from Business Motivation Model - OMG EA’s standard structure for a BMM
  20. 20. | 20 B U S I N E S S D E S I G N T O O LBusiness Model Canvas
  21. 21. | 21 Business Anchor (Capability) Model B U S I N E S S D E S I G N T O O L O R G A N I S A T I O N S T R U C T U R E V A L U E D R I V I N G C A P A B I L I T I E S S U P P O R T I N G C A P A B I L I T I E S SUPPLIERS& PARTNERS C H A N N E L S P R O D U C T S A N D S E R V I C E S VALUE CHAIN VALUE CHAINVALUE CHAIN CUSTOMERS, STAKEHOLDERS There are many ways to depict the BAM/BCM. This version EA has found to be most effective. EA’s standard structure for a BAM
  22. 22. | 22 Business Anchor Model & Decision Making Am I over or underspending? Is my current investment portfolio dealing with tactical issues? Is my strategy aligned with management issues / focus areas? Am I able to achieve my strategy? Is lack of maturity causing tactical issues? Is my current investment aligned to my strategy
  23. 23. | 23 Planning Roadmap B U S I N E S S D E S I G N T O O L Doability M I S S I O N , V I S I O N , G O A L S A N D S T R A T E G I E S S T R A T E G I C O B J E C T I V E S A L I G N E D T O I N I T I A T I V E S D R I V E R S ASSUMPTIONS AND PRINCIPLES P R O G R A M M E O F W O R K Risks aligned to programme of work Time, Cost and Effort Value Chain Current State Capability Current State People Current State Process Current State Tools Current State Data Current State Value Chain Target State Capability Target State People Target State Process Target State Tools Target State Data Target State EA’s standard structure for a Roadmap
  24. 24. | 24 Applied Business Architecture: 4 Day Course New method and tools to put in my professional toolkit For IT People Identify what is of business value, so can figure out how technology can help provide or create that value. For Business People Apply architecture thinking to business planning and strategy
  25. 25. | 25 "Perhaps we cannot raise the winds. But each of us can put up the sail, so that when the wind comes we can catch it." CONNECT P +61 3 9615 6500 E F SCHUMACHER At Enterprise Architects, we are committed to providing services that accelerate people and organisations to drive positive change.

Editor's Notes

  • Business Architect – more in the Contextual, Conceptual, Logical levels

    Motivation Artefacts
    Objectives, Courses of Action, Rationales and measures.
    Function Artefacts
    processes and value chains
    Initiative Artefacts
    programs, projects, 
    Knowledge Artefacts
    Captures terms, facts and rules for deriving facts.
    Organization Artefacts
    organization units, roles, capabilities and locations as well as governance structures within an organization.
    Product Artefacts
    Specific to products that are available in the marketplace.
  • This often leads to misalignment across the enterprise and often results in incorrect apportionment of capex across the project portfolio...
    Project Spend (Capex) occurs in the areas that are often not strategic in nature
    It also creates a hindrance for enterprise wide planning decisions
    Planning decisions are not informed by a coherent enterprise view of the problem space
    This also impacts technology decisions
    The application and technology portfolio is often tactically aligned to business or purely technology driven
    Understand the value drivers and corresponding leverage points that drive the strategy
    Focus on clearly linking the strategy to operations through business capabilities.
    Establish target values that are tied to the project portfolio and ensure business architects provide project oversight.
  • Strategies & Goals for the Value Chain
    Tactics & Objectives for the Capabilities
  • Influencers – External & Internal things that might impact on the plans/intentions.
    Drivers – things that drive value, drive the value chain. Things that are referenced in Goals.
    Levers – things that can or will be affected in strategies to impact the value chain.
  • Types of relationship matrices that can be developed on the level 3 business model and the key questions they can answer
  • ×