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Open Group Conference

Mike Walker | Chief Architect – Americas East Strategic Practices | Hewlett-Packard
http://www.MikeTheArchitect.com | http://www.TexasAEA.org |
2
We are only Beginning
Business Architecture
Journey

3
The Market is Finally Ready
for Business Architecture
Business Architecture

4
The Market is Finally Ready
for Business Architecture

67%

Business Architecture is
Transforming Enterprise
Architecture

EA Practices
Refocusing
EA Top Priorities are
Business Architecture
Aligning business and IT strategies (25%)
Delivering strategic business and IT value (39%)
Enabling major business transformation (16%)
5
Source: Gartner (2012): Gartner Hype Cycle 2012

80%
The Market is Finally Ready
for Business Architecture

There is no Shortage of
Opinions
6

Business Architecture is
Transforming Enterprise
Architecture
Standards Body

Analyst

Vendors

Leading Practices
Analysis of industry
Predictions Short and Long Term

7
Source: Mike The Architect: So Many Different Views, So Much Business Architecture Confusion (2014) - http://bit.ly/1cwtMA6

Consulting

Business
Architecture

Practices that can be offered as Services
Mash-up of Capabilities for Problem
Areas

Practices and Tooling
Perspectives based on Automation

Proven Practices
Stable Practices
A formal method and a set of descriptions
that distill the business environment and
Business the needs of a business into set of models
Architecture representing business information,
concepts, value and risk that are expressed
through an architectural view of a
business.

8
Source: Mike The Architect: Defining Business Architecture (2013) - http://bit.ly/1aVdAgJ
“Vision without
implementation
is hallucination."
– Benjamin
Franklin

9

9
Enterprise Architecture
Connects Strategy to Execution
Needs

Defines

Strategy

Enterprise
Architecture

Execution

Refines
10

Drive

Validates

Results
Proven Practices

11
#1

Distilled Proven
Practices from
Customers

12

#2

How HP Delivers
Business
Architecture
World-Class
Practices from
Customers

13

#1
It Starts
with You
14

14
Capacity to Understand &
Harness Knowledge

15
Source: Mike The Architect: IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches (2011) - http://bit.ly/1n6k5gS
Vast amount of EA Orgs
Say Understanding the
People and the
Motivations will
determine your BA
Success

16

Source: Forrester. The State Of Business Architecture And Business Architects In 2013:
http://www.forrester.com/The+State+Of+Business+Architecture+And+Business+Architects+In+2013/fulltext/-/E-RES82821
Capacity to Understand &
Harness Knowledge
”Land” Your Ideas Through
Effective Communication

17
18
Capacity to Understand &
Harness Knowledge
”Land” Your Ideas Through
Effective Communication
How you engage will
determine your success
19
Offer Valuable
Business Services

20

20
Example of EA Services
Capability
Advancement
Services

Assurance Services
Provide architecture decisioning,
trade-off analysis or risk management
in an ad-hoc short term engagement.

Creation of a business driven &
standards based architecture . Ensure
that investments are optimal
delivered

Foundational
Services
Simplify the portfolio to reduce
maintenance costs and improve
system reliability.

Concept Analysis

Architecture Consulting

Enterprise Portfolio Management

Competency Advancement

Architecture Design

Organizational Optimization

Architecture Review

EA Automation

Domain Based Architecture

…

Vendor Analysis & Review

•
•
•

Ideation and Trend Identification

Architecture Trade-Off Analysis

Service Offerings
Outcomes
21

Translate business strategies into IT
investment and migration plans.

Architecture
Engagement Services

…

Project Architect Staff Aug

…

Increased resource scale
Augmentation of existing team
Architecture compliance

•
•

Corporate strategy rationalized
into a architecture and program
roadmap
Identification of technology
investments needed

•
•
•

Develop solution arch.
Technology reviews
Rationalized interlocks

•
•
•

Evaluated technologies
Managed architectures & life
cycles
Compliance guidelines and
processes
Deliver Business
Architecture
Effectively

22
Embrace Your Fellow
Architects in the “Pit”
Breadth
Enterprise Architects

Domain Architects

Depth

Business Architects
Information Architects
Security Architects
Application Architects
Etc.

Solution Architects

23

More Information: Mike The Architect 2009: IT Architecture Is Not Enterprise Architecture
Embrace Your Fellow
Architects in the “Pit”
Your Customers Don’t Care
About Your Artifacts

24
Embrace Your Fellow
Architects in the “Pit”
Your Customers Don’t Care
About Your Artifacts
Don’t Let Your Tool Drive You,
You Drive Your Tools…
25
“

If all you have is
a hammer,
everything looks
like a nail

“

Abraham Maslow, The Psychology of Science

26

26
How HP
Delivers Results
w/ Business
Architecture

27

#1
Solve the
Real Problems
w/ the Golden
Circle

What

The things delivered

How

Way business is conducted

Why
Purpose

28

Sources: Mike The Architect (2011): IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches - http://bit.ly/1erjepW
Start with Why (2010): The Golden Circle - http://bit.ly/1cL0ilO
Business Architecture
“Purpose-less”

Symptoms

Business Architecture
w/ Context

Purpose &
Root Cause

29

29
Business Architecture is a means to an end
NOT the end

30
Business Need

Business
Architecture

Information
Architecture

Application
Architecture

Enterprise Architecture
31

Technology
Architecture
Business Architecture Framework
Business
Architecture

Information
Architecture

Application
Architecture

Business Rationalization Framework

Business Architecture Method

Content Framework
Competency Framework
32

Technology
Architecture
Business Architecture Method
Business Needs
Analysis

Establish Approach

3

Value
Analysis

Deep analysis of business problem
that needs to be solved into a set
of models.

1.1 Establish Context

2.1 Decompose Business Needs

3.1 Value Identification and Profiling

1.2 Business Value Proposition

2.2 Analyze Business Landscape
(Market Analysis)

3.2 Business Capability Profiling

1.3 Identify artifacts & deliverables

2.3 Operating Model Analysis

3.3 Risk Profile

1.4 Identify reference resources

2.4 Business Experience Modeling

3.4 Business Opportunity Valuation

•
•

Service Offering

Understand the nature of the
business need and establish a fit-forpurpose approach.

•

•
•

•

33

Statement of architecture work
Assessed stakeholder
requirements
Defined BA approach (method,
reference models, and supporting
artifacts)

•

Well understood needs of the
business
Full context of the business
landscape

Rationalize business needs
profiling and establish the baseline
business architecture.

Fully valuated opportunity
Current and Future State Business
Architecture

Information Architecture

2

1
Why

Business Architecture Content Framework

Motivation Model

When

Business Capability Model

34

Benefits Dependency Network

Value Chain

Functional & Organizational

Capability Map

Portfolio Planning

Roadmaps

Business Model Canvas

Who

How

What

Strategy Maps

Business Transformation Plan
Not all Business
Architecture
Starts w/
Strategy

35
Not all Business Architecture Starts with Strategy
2

1

Establish Approach

Business Needs
Analysis

3

Strategic
Initiative Based
Tactical or Immediate Need

36

Value
Analysis
P&G Business Architecture
anticipate ● transform ● scale
Mark Dorfmueller - dorfmueller.ma@pg.com
Feb 2014
GBS is one of the
four pillars of P&G

global
business
units

market
development
organizations

global
business
services

corporate
functions
What we stand for:
Transforming the
Way Business
is Done
EA Services
Relevant, Practical, Consumable
Benchmarking
Identify Best in Class performers, cost comparisons, key metrics

Business Capability Transformation Engagements
Identify business opportunities, transformations, innovation needs, solutions

Enterprise Architecture Management
EA Master Plans

Architecture Governance
Conceptual, logical, and physical architectures reviews

Solution Architecture
Cross domain solution architectures
START BY BUILDING YOUR FRAMEWORK
Business Capability Framework Example
1

2

Business Capabilities Service Architecture
Business
Planning

Category
Planning

Strategic
Business
Planning
Steering the
Business
Strategic
Revenue
Management
Operational
Planning

Event Visibility

Global Demand
Foundation

Supply Planning

Process Metrics

Demand
Planning
Reporting

Customer
Planning VMI
Demand
Planning

3

Intelligent Daily
Forecast

Supply Network
Design

4
Process Models

Process Measures
Forecast Accuracy
Productivity
IDENTIFY YOUR VALUE STREAMS
Idea to Consumer Value Stream

Portfolio
Initiative Mgmt
& Planning

Strategy &
Innovation

Design

Create a faster, simpler
and more agile P&G.
Seamless, real time
information from the
concept to shopper
purchase and back

Go to Market
STRATEGIC DESIGN
Our Approach

Transform and
Standardize
systems,
processes +
information

Automate to
eliminate nonvalue added
touches

To create an
environment that is
Real-Time.

Accelerate
decision making
via real time
information
Capturing Business Value

Digital
Capability

+

Work Process
Transformatio
n

=

Business
Outcome
Value
Business Architecture the Key to Enterprise Transformation
Resources
•
•
•
•
•
•
•
•
•

Business Architecture Defined (2013) - http://bit.ly/1aVdAgJ
Business Architecture Ready for Prime Time (2014) - http://bit.ly/LUQESI
So Many Different Views, So Much Business Architecture Confusion (2014) http://bit.ly/1cwtMA6
IT Architecture Is Not Enterprise Architecture (2009)– http://bit.ly/1gEsevh
IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches (2011) http://bit.ly/1erjepW
Start with Why (2010): The Golden Circle - http://bit.ly/1cL0ilO
Australian And New Zealand Architects Surveyed On Business Architecture (2013) http://bit.ly/Mcy8Gv
A&G Magazine: Business Architecture Best Practices (2013) – Part 1 http://bit.ly/1fZ91j3
Part 2 http://bit.ly/1aVfKwK
CIO’s Must Make EA’s a First Class Citizen (2011) - http://bit.ly/1g7vYmq

More Information: http://www.MikeTheArchitect.com
49

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Business Architecture the Key to Enterprise Transformation

  • 1. Open Group Conference Mike Walker | Chief Architect – Americas East Strategic Practices | Hewlett-Packard http://www.MikeTheArchitect.com | http://www.TexasAEA.org |
  • 2. 2
  • 3. We are only Beginning Business Architecture Journey 3
  • 4. The Market is Finally Ready for Business Architecture Business Architecture 4
  • 5. The Market is Finally Ready for Business Architecture 67% Business Architecture is Transforming Enterprise Architecture EA Practices Refocusing EA Top Priorities are Business Architecture Aligning business and IT strategies (25%) Delivering strategic business and IT value (39%) Enabling major business transformation (16%) 5 Source: Gartner (2012): Gartner Hype Cycle 2012 80%
  • 6. The Market is Finally Ready for Business Architecture There is no Shortage of Opinions 6 Business Architecture is Transforming Enterprise Architecture
  • 7. Standards Body Analyst Vendors Leading Practices Analysis of industry Predictions Short and Long Term 7 Source: Mike The Architect: So Many Different Views, So Much Business Architecture Confusion (2014) - http://bit.ly/1cwtMA6 Consulting Business Architecture Practices that can be offered as Services Mash-up of Capabilities for Problem Areas Practices and Tooling Perspectives based on Automation Proven Practices Stable Practices
  • 8. A formal method and a set of descriptions that distill the business environment and Business the needs of a business into set of models Architecture representing business information, concepts, value and risk that are expressed through an architectural view of a business. 8 Source: Mike The Architect: Defining Business Architecture (2013) - http://bit.ly/1aVdAgJ
  • 10. Enterprise Architecture Connects Strategy to Execution Needs Defines Strategy Enterprise Architecture Execution Refines 10 Drive Validates Results
  • 12. #1 Distilled Proven Practices from Customers 12 #2 How HP Delivers Business Architecture
  • 15. Capacity to Understand & Harness Knowledge 15 Source: Mike The Architect: IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches (2011) - http://bit.ly/1n6k5gS
  • 16. Vast amount of EA Orgs Say Understanding the People and the Motivations will determine your BA Success 16 Source: Forrester. The State Of Business Architecture And Business Architects In 2013: http://www.forrester.com/The+State+Of+Business+Architecture+And+Business+Architects+In+2013/fulltext/-/E-RES82821
  • 17. Capacity to Understand & Harness Knowledge ”Land” Your Ideas Through Effective Communication 17
  • 18. 18
  • 19. Capacity to Understand & Harness Knowledge ”Land” Your Ideas Through Effective Communication How you engage will determine your success 19
  • 21. Example of EA Services Capability Advancement Services Assurance Services Provide architecture decisioning, trade-off analysis or risk management in an ad-hoc short term engagement. Creation of a business driven & standards based architecture . Ensure that investments are optimal delivered Foundational Services Simplify the portfolio to reduce maintenance costs and improve system reliability. Concept Analysis Architecture Consulting Enterprise Portfolio Management Competency Advancement Architecture Design Organizational Optimization Architecture Review EA Automation Domain Based Architecture … Vendor Analysis & Review • • • Ideation and Trend Identification Architecture Trade-Off Analysis Service Offerings Outcomes 21 Translate business strategies into IT investment and migration plans. Architecture Engagement Services … Project Architect Staff Aug … Increased resource scale Augmentation of existing team Architecture compliance • • Corporate strategy rationalized into a architecture and program roadmap Identification of technology investments needed • • • Develop solution arch. Technology reviews Rationalized interlocks • • • Evaluated technologies Managed architectures & life cycles Compliance guidelines and processes
  • 23. Embrace Your Fellow Architects in the “Pit” Breadth Enterprise Architects Domain Architects Depth Business Architects Information Architects Security Architects Application Architects Etc. Solution Architects 23 More Information: Mike The Architect 2009: IT Architecture Is Not Enterprise Architecture
  • 24. Embrace Your Fellow Architects in the “Pit” Your Customers Don’t Care About Your Artifacts 24
  • 25. Embrace Your Fellow Architects in the “Pit” Your Customers Don’t Care About Your Artifacts Don’t Let Your Tool Drive You, You Drive Your Tools… 25
  • 26. “ If all you have is a hammer, everything looks like a nail “ Abraham Maslow, The Psychology of Science 26 26
  • 27. How HP Delivers Results w/ Business Architecture 27 #1
  • 28. Solve the Real Problems w/ the Golden Circle What The things delivered How Way business is conducted Why Purpose 28 Sources: Mike The Architect (2011): IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches - http://bit.ly/1erjepW Start with Why (2010): The Golden Circle - http://bit.ly/1cL0ilO
  • 30. Business Architecture is a means to an end NOT the end 30
  • 32. Business Architecture Framework Business Architecture Information Architecture Application Architecture Business Rationalization Framework Business Architecture Method Content Framework Competency Framework 32 Technology Architecture
  • 33. Business Architecture Method Business Needs Analysis Establish Approach 3 Value Analysis Deep analysis of business problem that needs to be solved into a set of models. 1.1 Establish Context 2.1 Decompose Business Needs 3.1 Value Identification and Profiling 1.2 Business Value Proposition 2.2 Analyze Business Landscape (Market Analysis) 3.2 Business Capability Profiling 1.3 Identify artifacts & deliverables 2.3 Operating Model Analysis 3.3 Risk Profile 1.4 Identify reference resources 2.4 Business Experience Modeling 3.4 Business Opportunity Valuation • • Service Offering Understand the nature of the business need and establish a fit-forpurpose approach. • • • • 33 Statement of architecture work Assessed stakeholder requirements Defined BA approach (method, reference models, and supporting artifacts) • Well understood needs of the business Full context of the business landscape Rationalize business needs profiling and establish the baseline business architecture. Fully valuated opportunity Current and Future State Business Architecture Information Architecture 2 1
  • 34. Why Business Architecture Content Framework Motivation Model When Business Capability Model 34 Benefits Dependency Network Value Chain Functional & Organizational Capability Map Portfolio Planning Roadmaps Business Model Canvas Who How What Strategy Maps Business Transformation Plan
  • 36. Not all Business Architecture Starts with Strategy 2 1 Establish Approach Business Needs Analysis 3 Strategic Initiative Based Tactical or Immediate Need 36 Value Analysis
  • 37. P&G Business Architecture anticipate ● transform ● scale Mark Dorfmueller - dorfmueller.ma@pg.com Feb 2014
  • 38. GBS is one of the four pillars of P&G global business units market development organizations global business services corporate functions
  • 39. What we stand for: Transforming the Way Business is Done
  • 40. EA Services Relevant, Practical, Consumable Benchmarking Identify Best in Class performers, cost comparisons, key metrics Business Capability Transformation Engagements Identify business opportunities, transformations, innovation needs, solutions Enterprise Architecture Management EA Master Plans Architecture Governance Conceptual, logical, and physical architectures reviews Solution Architecture Cross domain solution architectures
  • 41. START BY BUILDING YOUR FRAMEWORK
  • 42. Business Capability Framework Example 1 2 Business Capabilities Service Architecture Business Planning Category Planning Strategic Business Planning Steering the Business Strategic Revenue Management Operational Planning Event Visibility Global Demand Foundation Supply Planning Process Metrics Demand Planning Reporting Customer Planning VMI Demand Planning 3 Intelligent Daily Forecast Supply Network Design 4 Process Models Process Measures Forecast Accuracy Productivity
  • 44. Idea to Consumer Value Stream Portfolio Initiative Mgmt & Planning Strategy & Innovation Design Create a faster, simpler and more agile P&G. Seamless, real time information from the concept to shopper purchase and back Go to Market
  • 46. Our Approach Transform and Standardize systems, processes + information Automate to eliminate nonvalue added touches To create an environment that is Real-Time. Accelerate decision making via real time information
  • 47. Capturing Business Value Digital Capability + Work Process Transformatio n = Business Outcome Value
  • 49. Resources • • • • • • • • • Business Architecture Defined (2013) - http://bit.ly/1aVdAgJ Business Architecture Ready for Prime Time (2014) - http://bit.ly/LUQESI So Many Different Views, So Much Business Architecture Confusion (2014) http://bit.ly/1cwtMA6 IT Architecture Is Not Enterprise Architecture (2009)– http://bit.ly/1gEsevh IQ Isn’t Enough. Enterprise Architects Must Balance With EQ Driven Approaches (2011) http://bit.ly/1erjepW Start with Why (2010): The Golden Circle - http://bit.ly/1cL0ilO Australian And New Zealand Architects Surveyed On Business Architecture (2013) http://bit.ly/Mcy8Gv A&G Magazine: Business Architecture Best Practices (2013) – Part 1 http://bit.ly/1fZ91j3 Part 2 http://bit.ly/1aVfKwK CIO’s Must Make EA’s a First Class Citizen (2011) - http://bit.ly/1g7vYmq More Information: http://www.MikeTheArchitect.com 49