We are all acutely aware of the changes occurring in business. Market and socio political drivers are causing interesting business models to emerge and technological changes are resulting in new digital and disruptive business models that are reshaping our traditional industries. There is significant pressure to respond with solutions, products and services that are not only desirable from a human centred perspective but business viable and technologically feasible. In order to cater for these pressures, new strategic planning disciplines and tools must be leveraged, or in some cases invented. These disciplines need to both help business solve wicked problems, as well as help solution providers inside and outside an organization provide more value based offerings. This presentation will look at the emergence of design led strategic planning approaches that merge disciplines to help business decision makers test the viability of ideas and strategies, and play these out within an organisation to determine the high value positions necessary to succeed in the market. In this paper we explore on the fusion of design thinking, business design and enterprise architecture to help organizations address these challenges. http://enterprisearchitectureconference.com.au/keynote-speakers/

1. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 1
BUSINESS BY DESIGN
OCTOBER 2015
Craig Martin

2. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 2
DISCIPLINE CONFUSION
CONFUSION REIGNS AROUND WHICH DISCIPLINES ARE USED
FOR WHAT SITUATIONS
STRATEGIC PLAN MARKETING PLAN
OPERATIONAL
PLAN
DELIVERY
& EXECUTION OPERATIONS
Planning Delivering Operating
PORTFOLIO, PROGRAM AND PROJECT MANAGEMENTBUSINESS ARCHITECTURE
ENTERPRISE ARCHITECTUREPRODUCT & SERVICE DESIGN
BUSINESS PLANNING SOLUTIONS ARCHITECTURE
SOLUTIONS DEVELOPMENT
ENTERPRISE DESIGN
BUSINESS ANALYSIS
Environment analysis / SWOT,
competitor / Business motivation /
Product and portfolio analysis / Strategic
Options
Market analysis and forecasting Model the business / Evaluate and
select strategy / Risk and funding
analysis
Project, portfolio and program
management, solutions delivery
Daily operations,
run the business

3. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 3
SOLVING PROBLEMS
ABSTRACT
CONCRETE
Insight:
“I want a beautiful
environment”
Opportunity:
Paint the wall,
Move, Buy new
furniture, Hand a
picture
Problem
Statement:
“I need a hole”
Solution Statement:
“I need a drill”
PROBLEM SOLUTION

4. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 4
THE EMERGENCE OF ENTERPRISE DESIGN
ABSTRACT
CONCRETE
PROBLEM SOLUTION
Understanding the
problem from a
human centred
perspective
Prototyping and
testing for
disruptive options
Understanding
drivers, pressures,
environment and
working out
motivation
Developing operating
models and solutions
DESIGN
THINKING
ARCHITECTURE
THINKING
ENTERPRISEDESIGN

5. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 5
ABSTRACT
CONCRETE
PROBLEM SOLUTION
Understanding the
problem from a
human centred
perspective
Prototyping and
testing for
disruptive options
Understanding
drivers, pressures,
environment and
working out
motivation
Developing operating
models and solutions
NAVIGATING THE QUADRANTS
APPROACHES TO CHANGE
SOLUTION FOCUSSED
TRANSFORMATION
FOCUSSED
DISRUPTION
FOCUSSED
DELIVERY FOCUSSED

6. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 6
DESIGN MINDSET
UNCERTAINTY / PATTERS / INSIGHTS CLARITY / FOCUS
RESEARCH CONCEPT DESIGNPROTOTYPE
DISCOVER DEFINE DEVELOP DELIVER

7. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 7
ABSTRACT
CONCRETE
PROBLEM SOLUTION
NAVIGATING THE QUADRANTS
APPROACHES TO CHANGE
DISCOVER DEFINE DEVELOP DELIVER

8. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 8
… a discipline that uses designer’s sensibility and
methods to match people’s needs with what is
technologically feasible and what a viable business
strategy can convert into customer value … Tim Brown, CEO, IDEO
DESIGN THINKING DEFINITION
› Quoted from ‘The Design of Business’, Roger Martin

9. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 9
THREE LENSES OF HUMAN CENTRED DESIGN
Start Here

10. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 10
DECISIONS ABOUT ‘PROBLEMS’
‘A Leader’s Framework for Decision Making’ David Snowden & Mary Boone
Unknowable:
The relationship between cause
and effect is impossible to determine as
they constantly shift. In chaos, it is
necessary to act first and then sense
through the result of action how to further
respond. Understanding the problem
comes later. This is the domain of rapid
response.
Example: Natural disasters
Unknown Problems:
The problem is in constant flux as a
change to the situation causes ripple
effects and unpredictability
in other aspects. Information is often
incomplete. Rather than implementing a
solution, devising a concept, testing,
iterating and then responding is needed.
Problems often become complex when
human behaviour is a significant factor.
This is the domain of emergence.
Example: Schooling experiences,
organisational change management,
traffic management
Known unknowns:
A complicated problem can have multiple right
solutions. Complicated problems are understood,
analysed and then responded to. It often requires
expertise to solve and is largely process driven.
Solving a complicated problem often requires the
right expertise along with the right tools. In this
realm you may know you have a problem but may
not be able to solve it alone. This is the domain of
expertise.
Example: Fixing a car, constructing an aeroplane.
Known knowns
A simple problem is one of cause and effect. The
solution is rarely disputed. The problem can be
categorised, understood and a response devised
based on the information. This is the domain of
best practice.
Example: 1+1 = 2, solving a jigsaw puzzle.

11. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 11
FOUR ORDERS OF DESIGN
› Business Design,
› Organisation Design
› Service Design, UX Design,
Instructional Design,
› Process Design
› Richard Buchanan, (1992) Wicked Problems in Design Thinking
› Product Design, Engineering,
Architecture
› Graphic Design, Visual
Design

12. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 12
BUSINESS PREDILECTION
› ‘The Design of Business’, Roger Martin

13. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 13
TOOLS FOR BUSINESS DESIGN: A SELECTION
› DISCOVER
› Literature Review
› Time Machine
› Shadowing
› Touchstone Tours
› Service Safari
› A Day in the Life
› Diary Studies
› The Five Whys
› Journey Maps
DEFINE
Mapping Complex
Situations
Stakeholder Map
Customer Persona
Empathy Mapping
Mind Mapping
Scenarios
Affinity Mapping
How Might We
DEVELOP
Bodystorming
Collaborative Ideation
Co-creation
Storyboards
Image Boards
Prototyping
Heuristic Evaluation
Critique Circle
DELIVER
Rapid Iterative Testing
A/B Testing
Usability Testing
Ergonomic Analysis
Value Opportunity
Analysis
Feedback Review

14. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 14
ABSTRACT
CONCRETE
PROBLEM SOLUTION
Problem Definition
Influencers
Values
Drivers
Value System Engineering
Business Scenario
Value Proposition
Business Model Canvas
Business Motivation
Model
Value Chain
Capabilities
Cross-Functional Capabilities
Capability Overlays
Roadmap & Planning
MOVING THROUGH THE QUADRANTS
DISCOVER DEFINE DEVELOP DELIVER

15. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 15
THE VALUE CYCLE
THE QUICKEST WAY TO GET ADOPTION FOR COMPLEX
ORGANIZATIONS
What is
value?
How is value
created?
How is value
measured
and reported
on?
How is value
delivered?

16. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 16
YOU CANNOT DEVELOP MOTIVATION OR HYPOTHESES WITHOUT
FIRST UNDERSTANDING VALUE
ALIGNING VALUE TO PERFORMANCE
BUSINESS UNIT BUSINESS UNIT BUSINESS UNIT BUSINESS UNIT BUSINESS UNIT
Process Performance
Indicators
PRODUCT
DEVELOPMENT
RETAIL SALESRETAIL PLANNINGSOURCING
Objectives Drive Key Performance Indicators (SMART)
Financial
Operational
Data
Quality
Indicators
Business Flows
FLOW OF GOODS, FLOW OF MONEY, FLOW OF INFORMATION
VALUE CHAINS / CROSS FUNCTIONAL CAPABILITY / VALUE STREAMS
Critical Success Factors
Strategic Business Goals
Value Monitoring
VALUEREPORTINGPERFORMANCEREPORTING
Performance
Monitoring

17. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 17
UNDERSTANDING THE DIMENSIONS OF
VALUE AND PERFORMANCE
AND REALISING THESE THROUGH THE INFORMATION MANAGEMENT DISCIPLINE
What value is
created?
How is value
created?
How is value
measured?
BUSINESS
SERVICES &
SPI’S
BUSINESS
PROCESSES &
PPI’S
OBJECTIVES &
KPI’S
BUSINESS
GROUP CSF’S
BUSINESS AREA
STRATEGIC
GOALS
ENTERPRISE
STRATEGIC
GOALS
Increase Turnover
Customer Service:
Increase Customer
Satisfaction
Customer Group:
Improve Self Service
Customer Group:
Improve telephone
support
KPI: Customers may
be diverted by a
maximum of 3 times
KPI: Customers shall
wait no longer than 2
minutes
PPI: Time from
reception to customer
handling
SPI: Service Quality
measured in
customer satisfaction
DQI: Data quality
measured in
customer to product
alignment
Accounting: Reduce
administration costs
Sales: Increase new
customers into retail
outlets
Capture customer
details and product
category prior to
handling
VALUE REPORTING
PERFORMANCE REPORTING
CAPABILITY: PEOPLE, PROCESS, TOOLS, DATA
STRATEGIC REPORTING
& DECISION MAKING
OPERATIONAL REPORTING & DECISION MAKING
STRATEGIC / EXECUTIVE SCORECARDS
OPERATIONAL COCKPITS
TACTICAL
REPORTING &
DECISION MAKING
MGMT. DASHBOARDS

18. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 18
Increase price
Increase volume
Improve mix
Improve process
Reduce cost of inputs
Improve warehouse utilisation
Increase productivity
Decrease staffing
Optimise scheduling
Optimise physical network
Decrease staffing
Use alternative distribution
Lower Customer Service & Order
Management Costs
Lower I/S costs
Lower Finance / Accounting
costs
Lower HR costs
Improve capital planning/
investment process
Reduce inventories
Reduce A/R increase A/P
• Profit-driven marketing efforts:
• Target “best” customers
• Offer “best” product mix
• Improve pricing management
• Proactive production planning for
inventory management
• Most profitable capacity allocation/
utilisation
• Reduced sales management layers
• Focus on high-profit accounts
• Improved inventory flow visibility
• Lower transportation costs
• Higher facilities utilisation
• Less “fire fighting”
• Better carrier evaluation/
management
• Higher quality Customer Service
• Improved Supply Chain visibility
• Improved order fill rates
• Significantly lower cost
• More consistent service
• Faster problem resolution
• Improved capital stewardship
• Increased capital productivity
• Reduced inventory investment
• Reduced receivables investment
o Automated PO requisitions
o Improved information for
evaluating vendors
o Automation of some scheduling
functions
o Single point of entry eliminates
data re-entry and improves
accuracy
o Faster data reconciliation
o Automated billing processes
o Automated payroll processes
o Moderately lower safety stock
inventory
o Moderately improved A/R and A/P
management
Increase
revenues
Decrease costs
Reduce selling
costs
Reduce
distribution costs
Reduce
administrative
costs
Increase
gross profit
Decrease
operating
expenses
Capital
deployment
Cost
of capital
Increase net
operating profit
after tax
(NOPAT) (I/S)
Improve capital
allocation (B/S)
Enterprise
Value
Map
BUILDING VALUE MODELS
USING DRIVER TREES VALUE LEVERS
TRANSFORMATION
BENEFIT (Outcome)
AUTOMATION BENEFIT

19. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 19
VALUE IS ACHIEVED THROUGH COHERENCY
Companies with a High Level of Cohesion affect EBIT Directly
4%
8%
12%
16%
20%
24%
28%
32%
0 20 40 60 80 100 120
EBITMARGIN,2003-2007
CAPABILITIES COHERENCE SCORE
COCA-COLA
WRIGLEY
PEPSICO
KIMBERLY-CLARK
SARA LEE
CONAGRA MERCK
UNILEVER
H.J. HEINZ
KRAFT
GENERAL MILLS
CLOROX
CAMPBELL SOUP COMPANY
P&G
*Adapted From “The Coherence Premium” – Harvard Business Review, June
2010
A coherent organiza.on is
one that is thought of and
executed as a whole

20. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 20
ABSTRACT
CONCRETE
PROBLEM SOLUTION
Problem Definition
Influencers
Values
Drivers
Value System Engineering
Business Scenario
Value Proposition
Business Model Canvas
Business Motivation
Model
Value Chain
Capabilities
Cross-Functional Capabilities
Capability Overlays
Roadmap & Planning
MOVING THROUGH THE QUADRANTS
DISCOVER DEFINE DEVELOP DELIVER

21. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 21
WHEN DOES DISRUPTION OCCUR?
› First stage of disruption, an innovator
makes a product that is much more
affordable and simpler to use (for the user)
than what currently exists.
› The second stage of disruption is when
additional technological change is added
which makes it simpler and less expensive
to build and maintain the products.
› The new change eventually displaces the
existing market and value network,
resulting in a radical improvement in
performance.
Disruptive technologies take a while to change the market
Christensen, Clayton M. (2010-09-06).
Disrupting Class, Expanded Edition: How Disruptive Innovation Will Change the Way the World Learns
PERFORMANCE
TIME
market
Market for old
technology
Market for new
technology
New replaces
old technology

22. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 22
‘Enterprise Lifecycle's
2014 © Enterprise Architects PTY LTD
PERORMANCE
TIME
ENTERPRISE
BRAND PLATFORM
BUSINESS MODEL
BUSINESS CAPABILITIES
PRODUCT
DISRUPTIVE FORCES REQUIRE US TO
RE-INVENT AT A NUMBER OF LEVELS
Organisations…and architects
need to be able to provide the
means to enable this change

23. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 23
VALUE SYSTEM DESIGN

24. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 24
THE KNOWLEDGE
FUNNEL
Non-core but complex -
Outsource
Innovation, chaos &
unresolved mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value added to
products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation, design,
or decision process
Many business rules;
expertise involved
Some business rules
Procedure or simple
algorithm
Non -Core
Competencies
Core Differentiating
Competencies
Everyday, highly
repeatable and
automated
Make repeatable and
reliable to gain efficiency
Core Competitive
Competencies
THE RESULTS OF DISRUPTION
THE SPEED THROUGH THE KNOWLEDGE FUNNEL IS ALSO INCREASING
Source: Adapted from “Business Process
Change” by Paul Harmon
GOAL: Reliably produce
consistent, predictable
outcomes
GOAL: Validity- Produce
outcomes
that meet desired
objectives

25. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 25
RE-INVENTION NEEDS TO OCCUR ACROSS
THE FULL BUSINESS MODEL.
NEW MIXES NEED TO BE IDENTIFIED
Leading and Best Practice Research, 2011/2012
Scope: 1765 CEO’s and 2936 business leaders representing all major countries and industries

26. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 26
THE NATURE OF INNOVATION
IMAGE TO BE
MODIFIED TO
INCREASE TEXT
SIZE

27. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 27
DIGITAL ECONOMY
General Principles of the Digital Economy. These are the principles of Digital Strategy Enablement
“RENEWABILITY”
You can renew data, but not exhaust it. Once created it can be used
over and over again. It is a renewable resource
“UNIVERSALITY”
Everyone can access the same data simultaneously, and use it for
a completely different reason
“MAGNETISM”
Information grows in value as more people absorb it, which, in turn,
creates a network effect, drawing more people who want to learn.
Metcalfe's law
“LACK OF FRICTION”
The more smoothly information flows, the more valuable it is.
“VULNERABILITY”
Criminals can harm or misuse information. They can destroy it, ruin it
or steal it (as in identity theft). In this one sense, data is like
physical goods
Larry Downes - Three laws direct the revolutionary changes wrought by computer technology.

28. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 28
“THE LAW OF DISRUPTION”
The dissemination of change is “uneven.” Various elements of society
struggle to keep up with rapid technological change.
Technology changes exponentially, but social, economic and legal
systems change incrementally” and struggle to keep up.
Larry Downes - Three laws direct the revolutionary changes wrought by computer technology.

29. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 29
DISRUPTION ALTERS ENTIRE VALUE NETWORKS
Example: Disruption will alter the entire value chain and place the student at the centre
Faculty
& Staff
CONTENT
CLASSES
SOCIAL
INTERAC
TION
LECTURE
RS
STUDENT
S
Students
& Social
Interaction
CONTEN
T
CLASSES
FACULTY
STAFF
FACILITATORS
Teach at SCHOOL and do Homework at HOME Teach at HOME and do Homework at SCHOOL

30. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 30
DIGITAL
DISRUPTION IS
REDUCING THE
DELAY Action Reaction
Immediate
Feedback
Delayed
Feedback
B
R
“Life is indeed speeding
up, but mans ability to
deal with it, is slowing
down”

31. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 31
THIS
ACCELERATION
IS PUTTING
PRESSURE ON
CURRENT
BUSINESS
MODELS
Technology
commoditising
from below
Business roles taking on
more architecture
accountabilities

32. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 32
THE RESULTS OF DISRUPTION
THE COMMODITY SPACE IS GROWING, MAKING THE DIFFERENTIATION SPACE
MORE COMPETITIVE
Non-core but complex -
Outsource
Innovation, chaos &
unresolved mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to product
or services
Very important to success, high value added to
products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation, design, or
decision process
Many business rules; expertise
involved
Some business rules
Procedure or simple algorithm
Non -Core
Competencies
Core Differentiating
Competencies
Everyday, highly repeatable
and automated
Make repeatable and
reliable to gain efficiency
Core Competitive
Competencies
Non-core but complex - Outsource
Innovation, chaos &
unresolved mysteries
HIGH
HIGH
LOW
LOW
Must be done but adds little value to product
or services
Very important to success, high value added to
products and services
STRATEGIC IMPORTANCE & VALUE
COMPLEXITYANDDYNAMICS
Complex negotiation, design, or
decision process
Many business rules; expertise
involved
Some business rules
Procedure or simple algorithm
Non -Core Competencies
Core Differentiating
Competencies
Everyday, highly repeatable and
automated
Make repeatable and
reliable to gain
efficiency
Core Competitive
Competencies
Opportunit
y or
Threat?

33. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 33
DISRUPTION IS SHIFTING THE FOCUS TO
CUSTOMER LIFETIME VALUE
This shift is the essence of what drives the emergence of the chief digital officer (CDO). It also forces a
stronger focus on the chief marketing officer (CMO)
SELLER DRIVEN
ENTERPRISE
CUSTOMER CENTRIC ENTERPRISE CUSTOMER DRIVEN ENTERPRISE
“Maximize product
profitability”
Push Selectively Target Pull (collaboration)
DATA ANALYSIS
SERVICE Interactive & Proactive
UNDERSTANDING Segmented Individualized
CUSTOMER OFFERS Intra-enterprise bundles Inter-enterprise bundles
ORGANISATION Integrated Function Customer Outcome
CHANNELS Segment Driven Integrated and Seamless
“Maximize market
share”
“Maximize customer
lifetime value”
MARKETING
Passive & Reactive Interactive & Reactive
Insight as Art Factual insight Predictive insight
Broad
Product Driven
Singular
Functional Silo
Digital
Strategy
Focus

34. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 34
WHAT IS DIGITAL?
Digital is a participatory layer of all media
that allows users to self select their
own experiences and affords marketers
the ability to bridge media, gain
feedback, iterate their messages, and
collect relationships.
BUD CADDELL
Enterprise Architects, March 2011 Slide 34

35. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 35
THE CMO AGENDA
FOCUS ON THE HERE AND
NOW…
Exploration & Validity
Produce outcomes that meet an
objective
THE CIO AGENDA
FOCUS ON LEVERAGE,
SYNERGY, LONG TERM USE OF
ASSETS…
Exploitation and Reliability
Produce consistent, predictable
outcomes

36. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 36
THE CUSTOMER DRIVEN SHIFT
Production Products
Selling and
Promotion
Profit
Through
sales volume
Target
individual
Customer
Intention
Outcome
Marketing
Profit through
customer
lifetime
satisfaction
The Selling Concept
Product Driven
The Value Concept Customer Driven
The Marke>ng Concept Customer Centric
Target Market
Segment
Segment
Needs
Integrated
Marketing
Profit through
Increased
Market Share
The digital
strategy
focus

37. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 37
CUSTOMER DRIVEN
AND DIFFERENT VALUE CHAINS
The Selling Concept - Product Driven
The Value Concept - Customer Driven
The Marketing Concept - Customer Centric
Production Products
Selling and
Promotion
Profit
Through
sales
volume
STARTING
POINT FOCUS MEANS ENDS
Target Market
Segment
Segment
Needs
Integrated
Marketing
Profit through
Increased
Market Share
STARTING
POINT FOCUS MEANS ENDS
Target individual
Customer
Intention
Outcome
Marketing
Profit through
customer lifetime
satisfaction
STARTING
POINT FOCUS MEANS ENDS
The customer driven shift
The digital
strategy focus

38. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 38
*Adapted from Geoffrey Moore’s:
Dealing with Darwin
Each industry moves along a life cycle,
with different opportunities for
competitive advantage at each stage
THE STRATEGIC
BUSINESS MODEL
Its also great for start-ups at the
early stage of the lifecycle
Introduction Growth Maturity Decline
TOTAL
INDUSTRY
REVENUE
TIME
DISRUPTOR
ENTERS
MARKET SHARE, REVENUE
& COST BECOME KEY
PRODUCT
INNOVATION
REDUCES
PROCESS INNOVATION
BEGINS
PRODUCT LEADERSHIP CUSTOMER INTIMACY
OPERATIONAL EXCELLENCE
VALUE DISCIPLINE
ORIENTATION THROUGH THE
INDUSTRY LIFECYCLE

39. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 39
BUSINESS MODEL EVALUATION
BUSINESS MODEL OPTIONS ARE EVALUATED AGAINST VALUE DRIVERS OR BUSINESS
MODEL MECHANICS TO DETERMINE SHORTLISTS

40. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 40
ARCHITECTURE DELIVERY MODELS
EVALUATION OF STRATEGIC BUSINESS OPTIONS
The capability mixes are
evaluated against each
scenario to determine
the optimal path going
forward
REQUIREMENTS: PROGRAM “X” REQUIRES A $100M 5-YEAR NET BENEFIT AND MUST BE IMPLEMENTED IN UNDER 3 YEARS.
Business Models
Value Streams

41. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 41
UNDERSTANDING THE ENGINE TO PRODUCE THE
BUSINESS FIT
The operating model delivers the infrastructure required to deliver the products and services to the customer segments
THE ENVIRONMENT
BUSINESS MODEL
Markets
Industries
Customers
Market Segment
Channels
Customer Relationships
Value Proposition
Offering: Services/Products
Processes/ Value Chains
Capabilities
Business Service
Functions
Data
Applications
Technology
MARKET
MODEL
OPERATING
MODEL
PRODUCTS &
SERVICES
MODEL
Aligning what is valuable to the customer and what is value to the business is referred to as the business fit.
This means that the engine delivers both aspects and is the ideal mix an organization needs to engineer for.

42. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 42

43. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 43
USING THE VALUE PROPOSITION CANVAS TO
DEVELOP THE SERVICE MODELS
The Value (Proposition) Map describes the features of a specific value proposition in your
business model in a more structured and detailed way. It breaks your value proposition down into
products and services, pain relievers, and gain creators.
The Customer (Segment) Profile describes a specific customer segment in your business
model in a more structured and detailed way. It breaks the customer down into its jobs, pains, and
gains.
Gain Creators describe how your
products and services create customer gains.
Pain Relievers describe how your
products and services alleviate customer pains.
You achieve CUSTOMER Fit
when your value map meets your customer profile
— when your products and services produce pain
relievers and gain creators that match one or
more of the jobs, pains, and gains that are
important to your customer.
Gain describe the outcomes
customers want to achieve or the
concrete benefits they are seeking.
Pains describe bad
outcomes, risks, and obstacles
related to customer jobs.
This is a list of all the
Products and
Services a value
proposition is built around.
Customer Jobs
describe what customers are
trying to get done in their work
and in their lives when dealing
with a problem or challenge.

44. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 44
CUSTOMER INTERACTION ACROSS THE SERVICE
LANDSCAPE
Products and Services
Valuable to the Customer
PRODUCT N
PRODUCT I
PRODUCT TPRODUCT Y
PRODUCT K
SERVICE DSERVICE N
SERVICE H SERVICE P
PRODUCT B SERVICE N
SERVICE T
PRODUCT S
SERVICE A
PRODUCT X
PRODUCT H
SERVICE O
PRODUCT N
PRODUCT ESERVICE C
SERVICE Q
SERVICE N
SERVICE T
SERVICE B
Customer Outcome
CUSTOMER INTERACTION MAP, CUSTOMER SEGMENT ABC
Establishing my account is
quick and simple…
Integration is quick and easy,
with the right help available
Efficient, with choices that
make it convenient
I know when the shipment will
arrive
I can find out whether my
shipments were delivered;
I get a meaningful resolution
to my problem
“I want to set-up my account”
“I want to get ready to send my
products”
“I want to send a shipment”
“I need to know when my
shipment will arrive”
“I want confirmation that my
shipments have arrived”
“Something has gone wrong
with my delivery…”
% of accounts set-up in <X
hours
% of accounts that utilise
more than X
% of orders with no manual
intervention
% of articles with at least 4
scans
Service Delivery
Performance Metric
# of complaints per million
products
RESEARCH EVALUATE PURCHASE USE INTEGRATE SERVE
Value to the Business

45. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 45
CUSTOMER INTERACTION ACROSS THE SERVICE
LANDSCAPE

46. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 46
Business Motivation
Strategic Business Models
Value Discipline Orientation
Operating Business Models
Capabilities and Resources
IT’S THE STRATEGIC
BUSINESS MODELS THAT
CAN DETERMINE WHERE
VALUE LIES
O P C O P C O P C
Pe Pr T Pe Pr T Pe Pr T
LEVERS
DRIVERS
INFORMATION
Mission
Strategies
Tactics
Vision
Goals
Objectives
DISRUPTION
NORMALLY
OCCURS WITHIN
THE VALUE
SYSTEM.

47. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 47
ABSTRACT
CONCRETE
PROBLEM SOLUTION
Problem Definition
Influencers
Values
Drivers
Value System Engineering
Business Scenario
Value Proposition
Business Model Canvas
Business Motivation
Model
Value Chain
Capabilities
Cross-Functional Capabilities
Capability Overlays
Roadmap & Planning
THE ADM ACROSS THE Z MODEL

48. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 48
UNDERSTANDING VALUE, PERFORMANCE AND
MOTIVATION
Capability-driven architectures are
designed to support the strategic
objectives of an organisation
Mission
Strategies
Tactics
Vision
Goals
Objectives OUTCOME
A statement describing the
aims, values and overall plan
of an organisation.
e.g. “To be the leading creator and
protector of wealth.”
The means by which a strategy is carried
out. Typically, projects are tactical
initiatives designed to execute strategy.
The long term plan of action designed to
achieve a
particular goal of set of
goals or objectives.
e.g. 5 year corporate plan.
A concise statement of a desired change.
e.g. “To be the leading provider of wealth
management services in our major target markets.”
Lower level statements that describe specific,
tangible products and deliverables that
projects
will deliver.
e.g. “To increase revenue by 15%. To reduce
OpEx by 10%.”
A high level statement of what the business
is trying to accomplish.
e.g. “Improve call centre response times”
CAPABILITY
People
Process
Technology
Information

49. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 49
UNDERSTANDING VALUE, PERFORMANCE AND
MOTIVATION
Mission
Strategies
Tactics
Vision
Goals
Objectives
OUTCOME
CAPABILITY
People
Process
Technology
Information
Business
Model
Value Chain
Capabilities
Performance
Model
Value Model
ENDMEANS
HOW

50. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 50
AN APPROACH TO REPRESENT MOTIVATION AND VALUE

51. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 51
VICTORIA INVESTMENT LOGIC MAPS
EXAMPLE: IMPROVING ACCESS TO HEALTH SERVICES IN RURAL VICTORIA

52. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 52
ALIGNING RISK WITH MOTIVATION
THE COSO ERM FRAMEWORK AND ITS ALIGNMENT WITH VALUE
Risk management without a
clear mapping to value and
performance results in flawed
decision making

53. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 53
ABSTRACT
CONCRETE
PROBLEM SOLUTION
Problem Definition
Influencers
Values
Drivers
Value System Engineering
Business Scenario
Value Proposition
Business Model Canvas
Business Motivation
Model
Value Chain
Capabilities
Cross-Functional Capabilities
Capability Overlays
Roadmap & Planning
THE ADM ACROSS THE Z MODEL

54. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 54
NON-CORE CAPABILITY (MEET)
The goal is to meet market standards,
exploitation and reliability
Produce consistent, predictable outcomes
Focus on effectiveness and efficiency
CORE COMPETING CAPABILITY (COMPETE)
The goal is competitive parity
Focus on innovation and efficiency
CORE DIFFERENTIATING CAPABILITY (BEAT)
The goal is competitive advantage,
exploration & validity
Focus on innovation and efficiency
Produce outcomes that meet an objective
THREE LEVELS OF MIXING:
FROM THE BUSINESS MODEL TO
THE CAPABILITY RESOURCES
A reliable system will
produce the same test
results every time
A valid system will produce a result
that is shown, through the passage
of time, to be correct
COST
VALUE
5%
15%
80%
LEADING AND BEST PRACTICE RESEARCH, 2011/2012
THE ENVIRONMENT
BUSINESS MODEL
Revenue Model
Value Model
Product & Service Model
Performance Model
Cost Model
Operating model
Differentiating
Capability
Non-Core
Capability
Competing
Capability

55. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 55
MIXING AT THE BUSINESS MODEL LEVEL
THE ENVIRONMENT
BUSINESS MODEL
Markets
Industries
Customers
Market Segment
Channels
Customer Relationships
Value Proposition
Offering:
Services/Products
Processes/ Value Chains
Capabilities
Business Service
Functions
Data
Applications
Technology
MARKET
MODEL
OPERATING
MODEL
SERVICE
MODEL
THE ENVIRONMENT
BUSINESS MODEL
Revenue Model
Value Model
Product & Service
Model
Performance Model
Cost Model
Operating model
Differentiating
Capability
Non-Core
Capability
Competing
Capability
THE ENVIRONMENT
BUSINESS MODEL
• ValueSystem
• Value chain
• Value Model
• Capability Model
• Structural
Ownership &
Accountability
• Decomposed
Capability Model
• Core competitive &
differentiating
capability
• Service Model
Level 1
Level 3
Level 2

56. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 56
BUSINESS MODEL LEVEL 2
Capabilities Aligned to Functional Areas
THE ENVIRONMENT
BUSINESS MODEL
• Value System
• Value chain
• Value Model
• Capability Model
• Structural Ownership
and Accountability
• Decomposed
Capability Model
• Core competitive &
differentiating
Capabilities
• Service Model
Level 1
Level 3
Level 2
Competencies
Operations
Operations Management
Strategy & Execution Performance Management Underwriting & Risk Management
Document
Management
Decisional &
Business
Intelligence
Business
Process
Management
Process
Execution
Change
Management
Knowledge
Management
Resource
Allocation
Operational
Performance
Management
Technical
Operations
Training
Operations
Quality
Management
Strategy
Research
Strategy
Planning
Strategy
Management
Project
Portfolio
Selection
Project
Portfolio
Prioritisation
Project
Execution
Benefits
Realisation
Government
Policy
Enterprise
Architecture
Product/
Channels
Profitability
Management
Reporting Underwriting Reinsurance
Corporate
Risk
Management
Business
Continuity
Management
Internal Audit
Market Development and
Sourcing
Productising and Bundling Sales and Distribution Servicing
Product Service
New
Business
Underwriting
Policy Owner
Service
(POS)
Recurring
Claims
Management
Lump Sum
Claims
Management
Delivery
Method
Registration
Value Transaction
Management
Premium
Management
Payments
Management
Consolidated
Reporting
Customer Service
Enquiries
Complaints
Management
Retention
On-boarding
Adviser
Remuneratio
n
Business Development & Sales
Leads
Generation
Leads
Management
Broker
Management
Strategic
Pipeline
Tactical
Pipeline
Needs
Analysis
Product
Selection
Quotation &
Illustration
Application
Tenders
Client Development
Specialist
Training
Client
Servicing
Partner
Strategy &
Support
Client
Communicati
ons
Adviser
Relationship
Management
Sponsorship
Renewals
Consulting
Dealership
Relationship
Management
Product Manufacture & Maintenance
Product
Research
Product
Development
Product
Packaging
Product
Management
Reinsurance
Pricing
Marketing
Market &
Data
Analytics
Campaign
Management
Product
Launch
External
Market
Communicati
ons
Brand
Management
Promotions
Advertising
Internal
Sales Tools
Channel
Marketing
Claims
Mngmnt
Policy
Acquisition
Policy Admin

57. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 57
BUSINESS MODEL LEVEL 3:
THE CAPABILITY ANCHOR MODEL PROVIDES THE DETAILED UTILITY
BUILDING BLOCKS OF THE ORGANISATION
The Capability anchor model represents the
"map" of the organisation
THE ENVIRONMENT
BUSINESS MODEL
• Value System
• Value chain
• Value Model
• Capability Model
• Structural Ownership
and Accountability
• Decomposed
Capability Model
• Core competitive &
differentiating
Capabilities
• Service Model
Level 1
Level 3
Level 2

58. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 58
UNDERSTANDING CAPABILITY
Capability driven by business has different outcomes than that
driven by technology. Research shows that business driven
capability based planning is more successful.
However, without aligning to IT, business architecture
is more at risk of failing to deliver against strategic objectives.
CAPABILITY
OUTCOMES CUSTOMER
VALUE
PRODUCT
& SERVICE
PERFORMANCE PROCESS
PEOPLE
APPLICATIONS
DATA
INFORMATION
TECHNOLOGY
Information Technology
Business
Business
Led
IT
Led

59. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 59
Current
State
Future State
Pain Points – Inefficiencies
The application submitted by the consultant is often incomplete.
The application is reviewed for completeness and adjudicated.
The conditional approval, along with a list or required documents are then sent back to the MS, who will communicate the results,
a conditional approval, back to the applicant.
This process can take several days and requires a significant time and effort from RBC resources.
What would a truly transformational scenario look like?
New Capabilities
1. Portable credit scoring system and rules
engine
2. Document verification at POS
3. Automated disbursement
Required Changes - How are pain points addressed?
Credit scoring engine must be available to the mortgage specialist, permitting an on-the-spot adjudication
Document verification enabled at the point of sale by the cons.
Highly automated process which advances funds without the need for the human intervention
UNDERSTANDING THE THE DEGREE OF CHANGE EFFORT TO MOVE TO
THE FUTURE STATE
CHANGE FRAMEWORKS APPLIED TO YOUR PROCESS COMPONENTS CAN HELP DETERMINE IMPACT
Incremental
Improvement
Significant
Improvement
Changethe
Game
1
1
2
3
Contacts bank to
request mortgage
Cons. meets with
the applicant
Application is
complete
Application submitted for
adjudication
Application is
adjudicated
Results are
communicated to
MS
Applicant receives
cond’nal approval
Applicant submits
required docs
Documents
are verified
Client executes
documentation
Mortgage is
approved
Mortgage is set up on
bank systems
Funds are advanced
1
Contacts bank to
request mortgage
rep meets with
the applicant
Application is
complete
Application adjudicated on
the spot
Applicant receives
cond’nal approval
Applicant submits
required docs
Documents
are verified
Client executes
documentation
Mortgage is
approved
Mortgage is set up on
bank systems
Funds are advanced
1
Contacts bank to
request mortgage
Cons meets with
the applicant
Application is
complete
Application adjudicated and
docs verified
Client executes
documentation
Mortgage is
approved
Funds are advanced2 3

60. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 60
SEQUENCING PARADIGMS
DEFINITION KNOWLEDGE OF IMPLEMENTATION
CURRENT STATE Business as Usual • Evaluation of current process
• Evaluation of current benchmarks
• Evaluation of current competitor practices and product/
service offerings
• Identifying pain points and customer
irritants
• Documenting current state
o People
o Process
o Technology
FUTURE STATE Incremental improvement.
How do we improve a little?
• Matching current competitor product/service offering
• Median performance against peers
• Process improvements
o Lean Six Sigma
• System changes
• Outside vendors/outsourcing
Significant improvements
How do we improve a lot?
• Market leading product/service offering
• Top quartile performance relative to peers
• Industry best practices
• E2E changes involving the entire value
chain
• New systems
• Peer best practices
Truly transformational.
How do we change the game?
• Market leading product/service offering – “blue water” –
strong source of lasting competitive advantage
• Top decile performance relative to peers
• World-class best practices (using non-financial industry
practices)
• Outside specialty consulting companies
• Best practices outside the financial
services industry
Determine the degree of change required to bridge the current and future state maturity

61. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 61
THE CROSS FUNCTIONAL CAPABILITY ANCHOR MODEL HELPS
IDENTIFY A BETTER MIX OF CAPABILITIES FOR BUSINESS OUTCOMES
It is at this point that the business begins to see the true value of using capabilities
Standard functional capabilities can be
aligned to a value chain
Cross functional capabilities assemble and mix functional capabilities to achieve
outcomes in the value map or driver tree
Cross functional capabilities each drive out different
outcomes. Underlying functional capabilities will have
varying perspectives of capability maturity and
capability uplift
You can also use cross functional models as scenarios to test the
capability anchor model validity

62. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 62
PROCESS
Sign Up & Integrate
CAPABILITY
20. Information Services Management
CAPABILITY
15. Sales Execution
PROCESS
A1. Explore and compare
potential providers and
services
PROCESS
B2. Sign up and activate
account
PROCESS
C3. Integrate my store
with Australia Post’s API’s
precedes precedes precedes precedes
BUSINESS SERVICE
Customer Sales
Management
BUSINESS SERVICE
Partner Collaboration
PROCESS
C1. Receive information on
how the systems and
processes will work
PROCESS
C2. Install the necessary
hardware / software on
my systems
is realized by
LOGICAL
APPLICATION COMP.
Customer Sales
Management
LOGICAL
APPLICATION COMP.
Enterprise Resource
Planning
LOGICAL
APPLICATION COMP.
Partner Collaboration
Management
LOGICAL
APPLICATION COMP.
Security Management
communicates with communicates with
communicates with
implements
is realized by
implements
ACTOR
Post Staff
DATA ENTITY
Sales Order
ACTOR
Post Staff
participates in participates in
is processed by
consumes
SAP - CRM SAP - ERP auspost.com.a
u
IAM - OIM
is processed by
ACTOR
Fiona
participates in
THE CROSS FUNCTIONAL CAPABILITY MODEL
The process layer plays a strong role in assembling capabilities for different outcomes
CAPABILITY
People
Process
Tools
ConnecQng these to projects provides valuable insight
into coherency of the capex investment across the
enterprise
Within each process flow, there are typically
four to five capabiliQes that make up the
process. These typically correspond to
funcQonal silos that complete each step.
Within each capability, the model idenQfies
systems or applicaQons that are used to
execute the capability. This is where the model
forms the alignment between business and IT.
Archimate
NotaQon

63. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 63
Products and Services
Valuable to the Customer
PRODUCT N
PRODUCT I
PRODUCT TPRODUCT Y
PRODUCT K
SERVICE DSERVICE N
SERVICE H SERVICE P
PRODUCT B SERVICE N
SERVICE T
PRODUCT S
SERVICE A
PRODUCT X
PRODUCT H
SERVICE O
PRODUCT N
PRODUCT ESERVICE C
SERVICE Q
SERVICE N
SERVICE T
SERVICE B
Customer Outcome
CUSTOMER INTERACTION MAP, CUSTOMER SEGMENT ABC
Establishing my account is
quick and simple…
Integration is quick and easy,
with the right help available
Efficient, with choices that
make it convenient
I know when the shipment
will arrive
I can find out whether my
shipments were delivered;
I get a meaningful resolution
to my problem
“I want to set-up my account”
“I want to get ready to send my
products”
“I want to send a shipment”
“I need to know when my
shipment will arrive”
“I want confirmation that my
shipments have arrived”
“Something has gone wrong
with my delivery…”
% of accounts set-up in
<X hours
% of accounts that utilise
more than X
% of orders with no
manual intervention
% of articles with at least
4 scans
Service Delivery
Performance Metric
# of complaints per million
products
RESEARCH EVALUATE PURCHASE USE INTEGRATE SERVE
Value to the Business
CUSTOMER BEHAVIOUR: UNDERSTAND TOUCHPOINTS ACROSS THE
LIFECYCLE AND IDENTIFY THE JOURNEYS AND PAINPOINTS
Map the Customer personas into a customer interaction map to
come up with the journey through the customer value chain & look
for issues

64. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 64
K

65. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 65
“ARCHITECTURE THINKING”
MOTIVATION MODEL BUSINESS MODEL
SERVICE MODEL
CAPABILITY MODEL
People
ROADMAP
GOVERNANCE
* Closed feedback
loop to Motivation
Model
Vision
Strategy
Blueprinting
Roadmapping
Governance
Information
Technology
Process
Design Thinking: Empathise, Define, Ideate, Prototype, Test
MARKET MODEL
MEANS ASSESSMENT
INFLUENCERS
ASSESSMENT
MEANS ENDS
MACRO
ENVIRONMENT
INDUSTRY
SCAN
SWOT PERFORMANCE
• Financial
• Customer
• Internal (current)
• Internal (long-term)

66. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 66
MOTIVATION MODEL
BUSINESS
CAPABILITIES
IM ROADMAP
GOVERNANCE
* Closed feedback
loop to Motivation
Model
Information
Process
MEANS ASSESSMENT
INFLUENCERS
ASSESSMENT
MEANS ENDS
MACRO
ENVIRONMENT
INDUSTRY
SCAN
SWOT PERFORMANCE
• Financial
• Customer
• Internal (current)
• Internal (long-term)
SOCIALISE WITH BUSINESS, LINK EIM EFFECTIVENESS TO BUSINESS GOALS AND RISK,
OBTAIN CONSENSUS, MEASURE & MONITOR
LINKING INFORMATION CAPABILITY ROADMAP TO BUSINESS
CAPABILITY, RISK AND MOTIVATION
Understand business motivation with
respect to information management
Identify the critical business capabilities
to support the strategies
Define roadmap – prioritised to support
timely delivery of EIM capability linked
to business need
1 2 3Understand changing needs for a
digital business
Identify the information risk appetite
and risks
Assess how application strategies
are impacted by low EIM capability
maturity
Identify the EIM capabilities materially
impacting business capability and
information risk – pertinent to the
business motivation
4
6 7 8 9 Measure and monitor performance
5 Assess how business capability
effectiveness is materially impacted by
low EIM capability maturity
1
2
3
4 6
8
7
Information Risk
Digital Requirements
9
APPLICATIONS
5

67. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 67
MOTIVATION MODEL
CLOUD SERVICE
OFFERINGS
CAPABILITY MODEL
ROADMAP
GOVERNANCE
* Closed feedback
loop to Motivation
Model
Information
Technology
Process
MEANS ASSESSMENT
INFLUENCERS
ASSESSMENT
MEANS ENDS
MACRO
ENVIRONMENT
INDUSTRY
SCAN
SWOT PERFORMANCE
• Financial
• Customer
• Internal (current)
• Internal (long-term)
SOCIALISE, OBTAIN CONSENSUS, MEASURE & MONITOR
CLOUD STRATEGY & ROADMAPPING JOURNEY
Understand the motivation for Cloud Understand the risk appetite of the business
and the risk profile of the offering
Obtain consensus, support and
commitment
1 2 3Understand business requirements for
Cloud
Identify and classify assets going into the
Cloud
Assess the Cloud service offerings Define the roadmap
4
5 6 7 8 Measure and monitor performance
1
2
3
4
5
6
7
Information & Risk
CLOUD
REQUIREMENTS
8
APPLICATIONS

68. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 68
ROLES &
OP. MODEL
HUMAN CENTRED SERVICE AND CAPABILITY
DEVELOPMENT
CAPABILITY
MODEL
ROADMAP
GOVERNANCE
* Closed feedback
loop to Motivation
Model
MEANS ASSESSMENT
MOTIVATION
MODEL
INFLUENCERS
ASSESSMENT
MEANS ENDS
SERVICE MODEL /
CATALOGUE
WHAT
WHY
COMMUNICATION
ENGAGEMENT
MODEL
DEMAND
ANALYSIS SOURCING
BUSINESS CONTEXT
HOW
WHO
WHERE
WHEN
CAPABILITY
ASSESSMENT
BUSINESS MODEL
CUSTOMER PERSONAS
VALUE PROP
EMPATHY MAPS
CURRENT FUTURE
SERVICE DESIGN PROCESS
ENABLES

69. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 69
THE BUSINESS OF ARCHITECTURE
ROADMAP
ROLES &
OP. MODEL
GOVERNANCE
* Closed feedback loop to
Motivation Model
MEANS ASSESSMENT
SERVICE MODEL
/ CATALOGUE COMMUNICATION
ENGAGEMENT
MODEL
DEMAND
ANALYSIS SOURCING
CAPABILITY
ASSESSMENT
MOTIVATION
MODEL
INFLUENCERS
ASSESSMENT
MEANS ENDS
BUSINESS MODEL
CAPABILITY
MODEL
BUSINESS CONTEXT
Where
When
Who
How
Why
What
Enables
MANDATE
SERVICE CO-DESIGN
CURRENT FUTURE

70. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 70
CAPABILITY MODEL OVERLAYS
Capability models and their overlays can reveal the answers
to important business questions
BUSINESS CAPABILITY MODEL
WITH STRATEGIC OVERLAY
BUSINESS CAPABILITY MODEL
WITH CURRENT MATURITY
OVERLAY
BUSINESS CAPABILITY MODEL
WITH PAIN POINTS
BUSINESS CAPABILITY MODEL
WITH INFLIGHT PROJECTS
What is important to my business? What are my strengths and
weaknesses?
Where is my current investment
focussed – CAPEX?
Where are my tactical and political
pressures?

71. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 71
BUSINESS CAPABILITY MODEL
WITH STRATEGIC OVERLAY
BUSINESS CAPABILITY MODEL
WITH CURRENT MATURITY
OVERLAY
BUSINESS CAPABILITY MODEL
WITH PAIN POINTS
BUSINESS CAPABILITY MODEL
WITH INFLIGHT PROJECTS
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?
Capability models and overlays can reveal the answers to
important business questions.
CAPABILITY MODEL OVERLAYS

72. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 72
LOOKING FOR OPPORTUNITIES AND SWEETSPOTS
72
Capabilities with
Strategic priorities
associated
CapabiliQes with Pain-points
associated
Sweetspots with no projects
Painpoints with no project
High priority with no projects
High priority with projects
Painpoints with projects
B
C
D
E
F
A G
Sweetspot and low hanging fruit
In-Flight
Projects
Investment with no identified digital
value

73. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 73
APPLY THE HEURISTICS TO EACH QUADRANT
Different decisions occur in each quadrant. Positioning the degree of change (complexity) against value will allow us to apply these
heuristics
Software
Automation
Projects
Funds
investment
Widget
assembly
Credit card
approval
Inventory
Management
Outsourcing
Projects
Major re-
design projects
New Product
design
Deals with other
companies
International
Delivery
On-line
purchasing
ERP based
process
improvement
Complex Processes, not
part of company’s core
competency: Outsource
Complex, dynamic
processes of high value:
undertake business
process improvement
efforts that focus on
people
Straightforward, static
commodity processes:
use automated ERP-
Type applications and / or
outsource
Straightforward, static,
and valuable: automate
to gain efficiency
HIGH
HIGH
LOW
LOW
Must be done but adds little value to
product or services
Very important to success, high value
added to products and services
STRATEGIC IMPORTANCE
COMPLEXITYANDDYNAMICS
Complex negotiation, design, or
decision process
Many business rules; expertise
involved
Some business rules
Procedure or simple algorithm
Organisation
Heuristics
*Adapted from “Business Process Change”
by Paul Harmon

74. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 74
LOOK FOR ALIGNMENT BETWEEN CAPABILITIES, PROJECT
EFFORT AND VALUE
Removed

75. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 75
BUSINESS ARCHITECTURE AND APPLICATION
PORTFOLIO MANAGEMENT

76. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 76
UNDERSTANDING CAPABILITIES AND THEIR RELATIONSHIPS HELPS
IMPROVE COHERENCY ACROSS THE ENTERPRISE
Clearer visibility of synergies is required to consolidate
strategic efforts across the major programs
Removed

77. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 77
UNDERSTANDING MATURITY HELPS IDENTIFY
STRENGTHS AND WEAKNESS
PROCESS: Maturity Overlay: CMMI
Removed

78. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 78
UNDERSTANDING THE RESOURCE MIX INSIDE A
CAPABILITY HELPS FOCUS ON THE RIGHT LEVERS
PROCESS and APPLICATION: Issue and Hotspot Analysis
Removed

79. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 79
OVERLAYING TECHNOLOGY AND INFORMATION HELPS IDENTIFY SYNERGIES
BETWEEN THE PEOPLE, PROCESSES AND THE UNDERLYING TECHNOLOGY
APPLICATION: Functional Alignment to SAP Platform
Removed

80. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 80
K

81. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 81
K

82. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 82
K
WHEN

83. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 83
CAPABILITIES AND CROSS FUNCTIONAL CAPABILITIES ARE
EVALUATED IN LIGHT OF ALL THE CHANGE FACTORS
The capability mixes are
evaluated against each
scenario to determine
the optimal path going
forward
REQUIREMENTS: PROGRAM “X” REQUIRES A $100M 5-YEAR NET BENEFIT AND MUST BE IMPLEMENTED IN UNDER 3 YEARS.
Business Models
Value Streams

84. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 84
SEQUENCING PARADIGMS
Mixing strategic value and complexity
Strategic Value
Complexity
100
90
80
70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
31
8
32
13
16
12
17
11
3
27
25
22
26
29
21 18
24
28
16
7
4
20
30
23
34
33
39
1
40
9
37
35
10
5
2
14 6
38
19
What sequence should
be followed?

85. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 85
TRANSITION PLANNING
Look to mature capabilities through increments
Capabilities Basic Intermediate Advanced
Customer service
1. Service team trained and equipped
Marketing execution
2. Marketing playbooks automated
3. Marketing and sales campaign pilot
5. Advertising revenue adjustment calculation
7. Marketing and sales campaign pilot
6. Customer sat score & stakeholder sat score
Sales execution
1 2 3 4 5
Current State Future State
2. Sales playbooks automated
4. Marketing and sales campaign prototype
5. Sales team training
7. Cross functional process automation
6. Pilot
Maturity
Capabilities increase and
decrease in maturity over
time depending upon
outcomes.
Plan for increments that can
be absorbed by the
business.

86. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 86
K

87. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 87
TELLING THE STORY
• Introduces current state for
applications, integration, data
and technologies
• Future State with workshop
inputs - demonstrates how the
future state was derived
• EA Operating Model and
next steps
• Introduce Project context
• Organisation motivations
• Organisation capabilities
• Illustrates the use of the overlay
models
• Highlights potential gaps
Business Anchor Model
A2
Business Motivation Model
A2
Business Anchor Model
Constraints Overlay
A2
Business Anchor Model
Investment Overlay
A2
Applications Portfolio
Current State
A2
Technologies Portfolio
Current State
A2
Conceptual Data Model
Security Overlay
A2
Applications Interaction Model
Current State
A
2
Applications Interaction Model
Future State
A2
Technologies Roadmap
A2
Applications Roadmap
A2
Project on a page
A3
Business Architecture
Findings
A3
Business Architecture
Findings
A3
Applications Architecture
Findings
A3
Applications Options
Workshop Integration
A3
Technology Options
Workshop Slide
A3 EA Operating
Model
A3
Recommendations
A3
Recommendations
A3A3
Business Architecture
Findings
1 2 543
1
2
5
4
3

88. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 88
SOCIALISE FOR BUY-IN
These methods help the architecture speak for itself

89. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 89
ABOUT
zero HOURS A DAY
BACK OFFICE
VENDOR ALIGNMENT
MORE THAN 1600 PEOPLE
TRAINED IN ARCHITECTURE
PRACTICES (AND RISING)
12YEARS IN BUSINESS
8GLOBAL OFFICES
1600
MORE THAN 10,000 DAYS OF
ARCHITECTURE SERVICES
DELIVERED LAST YEAR
10,000
one COMMON METHOD
20
four
six OPERATING IN
6 CONTINENTS

90. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 90
OUR SERVICES
Servicing the Strategy and
Architecture needs of
Global Organisations
STRATEGY CONSULTING
› Business Architecture
› Strategic Services & Operating Model
Design:
» Business Services & Capabilities
» IT Services & Capabilities
› Segment Strategies and Roadmaps:
» Customer Experience & Digital
» Enterprise Information Management
» Big Data Analytics
» Applications
» Cloud & Infrastructure
» Security, Risk & Resilience
» Innovation Management
PRACTICE DEVELOPMENT
› Architecture Service Model Design
› Architecture Operating Model Design
› Service and Capability Readiness
Assessment
› Professional Training and Certification
(Business Architecture, Information
Management, TOGAF®, CDMP®, ArchiMate®
and Design Thinking)
› Project Architecture Resources
› Architecture Talent Strategy and
Professional Development
› Architecture Back Office Services

91. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 91
Source: Building Bridges to the Promised
Land, The CMO Club, 2014
THE CMO AND CDO DILEMMA

92. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 92
WHAT WE HAVE FOUND IN LARGE ACCOUNTS
An ownership gap for business architecture exists -
Lines of responsibility around coherency and
business architecture, are often unclear
Cohesion Mandate
Undefined - Enterprise
Planning Ownership
EnterprisePerformance
Capabilities
X-Functional
Capabilities
Functional
Capabilities
CONTEXT
Markets
Industries
Customers
Market Segment
Channels
Customer Relationships
Value Proposition
Offering:
Services/Products
Processes/ Value Chains
Capabilities
Business Service
Functions
Data
Applications
Technology
MARKET
MODEL
OPERATING
MODEL
SERVICE
MODEL
Strategic
Architecture
Mandate –
Business
Ownership
IT Architecture
Mandate –
IT Ownership
Business
Architecture
Mandate
Undefined

93. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 93
ABSTRACT
CONCRETE
PROBLEM SOLUTION
Problem Definition
Influencers
Values
Drivers
Value System Engineering
Business Scenario
Value Proposition
Business Model Canvas
Business Motivation
Model
Value Chain
Capabilities
Cross-Functional Capabilities
Capability Overlays
Roadmap & Planning
THE ADM ACROSS THE Z MODEL

94. B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 94
QUESTIONS?