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the futures of business 
Bridging enterprise-architecture 
and systems-thinking 
- an introduction to Enterprise Canvas 
Tom Graves, Tetradian Consulting: October 2014
An EA / systems-thinking tool… 
citizen 
(values) 
customer 
(value) 
investor 
(money etc) 
validation direction coordination 
guidance guidance 
before before 
supplier 
relations 
value-proposition 
during during 
supplier 
channels 
customer 
relations 
value-creation 
customer 
supplier customer 
channels 
after after 
value-outlay 
value-governance 
value-return 
investment dividend 
mgmt-info 
investor beneficiary
Setting the scene…
A core aim in 
EA and systems-thinking: 
things work better 
when they work together 
on purpose
For this to happen, we need 
guided-conversations 
that are actually 
everyone’s responsibility. 
What visual tools can we use 
to engage people in this?
Let’s begin, though, with 
a cautionary tale…
Motorola RAZR 
- a hugely innovative 
product 
(in 2003, anyway) 
- the outcome 
of a new type 
of innovation process 
CC-BY-NC joshb via Flickr
did Motorola 
forget their 
process for 
innovation? 
- mere tweaks 
to the product 
four years 
later, the 
product was 
gone – and 
almost the 
company too 
CC-BY-NC-ND gordon meivia Flickr
Keep focus on the process 
for tools-development, 
not just any one product…
Our task here: 
some frame or tool to guide 
conversations about 
things work better 
when they work together 
on purpose
…but we need to be careful 
not to get too focussed 
on the tool itself… 
keep ourselves open to the 
awareness that there are 
always other ways to do this!
Where do we start?
Short answer: 
start with what we already 
have ready to use 
in our ideas-toolkit…
Exploring the toolkit
On one side, there’s 
enterprise-architecture…
Enterprise-architecture… 
Zachman Framework
Enterprise-architecture… 
Business Architecture 
Data 
Architecture 
Applications 
Architecture 
(Information-Systems Architecture) 
Technology 
Architecture 
The ‘BDAT stack’
Enterprise-architecture… 
TOGAF (The Open 
Group Architecture 
Framework)
Enterprise-architecture… 
PRM (Performance Reference Model) from 
FEAF ([US] Federal Enterprise Architecture Framework)
Enterprise-architecture… 
Process-models (lots of them)
Enterprise-architecture… 
Capability-models (lots of them)
Enterprise-architecture… 
Information-models (lots of them)
Enterprise-architecture… 
Business-models (lots of them)
Enterprise-architecture… 
And computers, of course. 
(lots and lots and lots of them…)
Experience: 
mainstream ‘enterprise’-architecture 
maybe feels too IT-centric, 
too fragmenting 
and too incomplete?
My own starting-point was 
more with systems-thinking 
and other whole-context methods…
Systems-thinking… 
vision 
policy 
procedure 
work-instruction 
more abstract 
more concrete 
ISO9000 quality-system standards
Systems-thinking… 
Shared-purpose 
(vision and values) 
Integration 
(how the market 
links together) 
‘Tetradian’ dimensions – physical ‘things’, virtual 
information, relational links between people, aspirational 
purpose 
Relationships 
(person-to-person) 
Transactions 
(products and services) 
Conversations 
(exchange of information)
Systems-thinking… 
Rotating between perspectives…
Systems-thinking… 
Modality – the MoSCoW set 
(“Must, Should, Could, can-Wait”) 
(or “Maybe, Sometimes, Could-be-possible, We-don’t-know”?) 
CC-BY-NC-SA thisisbossi via Flickr
Systems-thinking… 
Rotating between sensemaking-methods…
Systems-thinking… 
Systems-interdependency maps
Systems-thinking… 
Stafford Beer’s 
‘Viable System 
Model’
Systems-thinking… 
Recursion and fractality in natural systems 
CC-BY-NC-SA gjshepherd via Flickr
Systems-thinking… 
Purpose 
(forming) 
strategy etc 
People 
(storming) 
HR etc 
Performance 
(adjourning) 
reporting etc 
Preparation 
(norming) 
scheduling etc 
Process 
(performing) 
production etc 
Strategy (‘feel’) 
Tactics (‘think’) 
Operations (‘do’) 
Extensions to Tuckman, and Five Element (wu-xing)
Systems-thinking… 
Values Policies 
Purpose 
Commitment 
Performance 
People 
Preparation 
Process 
Events 
Trust / 
Completions 
(start here) 
Success 
(Initiating-Events) 
(Completion-Events) 
Extensions to Five Element (wu-xing) on leadership, flow
Systems-thinking… 
externalised (objective) 
Scientist 
(‘outer truth’) 
uncharted 
swamp 
Believer 
(‘inner truth’) 
Technologist 
(‘outer value’) 
Artist 
(‘inner value’) 
truth 
(thought) 
value 
(feeling) 
internalised (subjective) 
Worldviews, deep-metaphors and modes of operation…
Systems-thinking… 
power-over 
power-with 
power-under 
power-from-within 
person A person B 
Models of power-interactions between people…
Systems-thinking… 
An emphasis on people, and spaces… 
CC-BY-ND alanclarkdesign via Flickr
Systems-thinking… 
Include the people-story…
Systems-thinking… 
An emphasis on the system as a whole… 
CC-BY-ND Kecko via Flickr
Systems-thinking… 
An emphasis on the system as a whole…CC-BY Fretro via Flickr
Experience: 
all seems very powerful, 
yet much of systems-thinking 
and related disciplines 
can be too ‘abstract’ 
for people to (want to) follow?
How might we link all of these 
EA and ST themes together, 
into something that will work 
and ‘make sense’ 
for everyday EA / ST practice?
(What follows is my synthesis of all that, 
to create Enterprise Canvas: 
what you’d do might be very different, 
depending on your experience and toolkit)
Remember the RAZR: 
focus on the process 
of synthesis 
more than the product 
of that synthesis…
Recursion: 
this process for developing 
a set of whole-of-context tools 
for EA and systems-thinking 
is itself an application 
of EA and systems-thinking
About service
Start with an assertion: 
Everything in the enterprise 
is or represents a service. 
(If so, we can describe everything 
in the same consistent way.)
Why anything happens 
A tension exists between what is, and what we want. 
The vision describes the desired-ends for action; 
values guide action, describing how success would feel.
The nature of service 
A service represents a means toward an end 
– ultimately, the desired-ends of the enterprise-vision.
Relations between services 
Services exchange value with each other, to help each 
service reach toward their respective vision and outcome.
Services serve. 
(That’s why they’re called ‘services’…) 
What they serve is the story, 
via exchange of value. 
(And if we get that right, 
they can sometimes make money, too.)
Values and value 
Each service sits at an intersection of values (vertical) 
and exchanges of value (horizontal)
How connection happens 
Value-flow is ‘horizontal’, but connection is first made by 
‘vertical’ connection to shared-value and value-proposition
In more detail 
value-add 
(self) 
customer-facing 
supplier-facing 
Interactions during the main-transactions are preceded by 
set-up interactions (before), and typically followed by other 
wrap-up interactions such as payment (after). 
We can describe ‘child-services’ to support each of these.
Business-model as service 
Crossmap between Business Model Canvas and Enterprise Canvas
Supply-chain or value-web 
Services link together in chains or webs, as 
structured and/or unstructured processes, to deliver 
more complex and versatile composite-services.
Guidance for services
Keeping on track 
Use the Viable System Model (direction, coordination, 
validation) to describe service-relationships to keep this 
service on track to purpose and in sync with the whole.
Keeping on track: VSM 
Viable System Model, representing a fractal service
Keeping on track: VSM 
Viable System Model ‘systems’ are orthogonal to each other
Keeping on track: VSM 
Coordination and Validation don’t fit comfortably with Taylorism
Keeping on track: Direction 
management-services 
policy 
strategy 
direction 
This is the equivalents of VSM system-3, -4 and -5
Keeping on track: Direction 
interaction with 
management-services 
in parent-service above 
management-services 
policy 
strategy 
direction 
policy 
strategy 
direction 
interaction with 
management-services 
in child-services below 
Interactions with delivery-services (system-1), and recursion
Keeping on track: Coordination 
management-services 
policy 
strategy 
direction 
delivery-service 
develop 
the business 
change 
the business 
run 
the business 
delivery-service 
delivery-service 
Extended functions for equivalent of VSM system-2
The VSM algedonic links 
- ‘any-to-any’ connections - 
provide another kind of coordination. 
(Hard to show on diagrams, though.)
Keeping on track: Validation 
Major extensions / rethink for VSM system-3*
Validation-services: 
for each enterprise-value: 
- build awareness of the value 
- build capability to enact support 
- enact in practice at run-time 
- assess and review 
(for continual improvement)
Investors and 
beneficiaries
Investor and beneficiary 
These flows (of which only some types are monetary) 
are separate and distinct from the main value-flows.
Another useful assertion: 
Every enterprise 
is ‘for-profit’. 
(We need to think of ‘profit’ in a much 
broader sense than money alone.)
Investor and beneficiary 
shared-enterprise 
includes community, government, non-clients, anti-clients, others 
market 
includes competitors, supplier- regulators, others 
prospects 
customer-prospects 
supplier organisation customer 
includes investors, beneficiaries 
Investors and beneficiaries are often outside even of the 
market – yet are still part of the same shared-enterprise.
We need to consider 
investments and returns 
of every applicable type, 
to and from 
every type of stakeholder. 
(‘Applicable type’ is determined 
by the shared-enterprise values.)
Stakeholders in the enterprise 
A stakeholder 
in the story 
is anyone 
who can wield 
a sharp-pointed 
stake 
in your direction… 
CC-BY-NC-SA evilpeacock via Flickr 
(Hint: there are a lot 
more of them than you 
might at first think…)
Values, value-flow, money 
values 
(‘why’) 
(‘why’) 
value-flow 
(‘how’, 
‘with-what’) 
(‘how’, 
‘with-what’) 
profit 
(money and more) 
(money and more) 
These are distinct flows – don’t mix them up!
Doing it right: values-first… 
Values-first enables full connection with shared-enterprise
Doing it wrong: money-first… 
Money-first causes disconnect from shared-enterprise
Always start from values, 
not money.
If we focus on money, 
we lose track of value. 
If we focus on the ‘how’ of value, 
we lose track of the ‘why’ of values. 
Always start from the values. 
(Not the money.)
Layers of abstraction 
for service views
‘Rows’ – layers of abstraction 
Enterprise 
Scope 
(context) 
other other 
Business-services 
other other 
Service-content 
supplier customer 
Service-design 
supplier customer 
Service-deployment 
supplier customer 
Action-record 
supplier customer 
Enterprise identity, vision and values 
Lists of key players and items in enterprise 
Roles / relations between / within key players / items 
Actions / transactions - implementation-independent 
Actions / transactions - implementation-specific 
Actions / transactions - operations-specific (action-plan) 
Actions / transactions - as actioned / completed (past) 
Row-numbering aligns with Zachman 
row-0 
row-1 
row-2 
row-3 
row-4 
row-5 
row-6
Each ‘row’ downward 
adds something more 
to the description. 
Example: 
row-3 is implementation-independent, 
row-4 is implementation-specific.
Beware of mixed layering 
E-commerce service 
front-end 
content 
server 
web-server 
(Apache) 
payments 
processing 
database 
(Oracle 9i) 
Fulfilment warehouse 
Dayton, 
Milton 
Ohio 
Keynes 
Marseilles Den Haag 
Example: Use solid-lines versus dashed-lines to represent 
row-3 / row-4 layer-differences in model and model-entities
Layers in Enterprise Canvas 
are layers of abstraction 
within the same scope 
- not arbitrary views into 
different parts of the scope, 
with arbitrary interconnections!
Row-0 example - ZapaMex 
“making 
feet happy” 
enterprise-vision as identified by ZapaMex 
Row-0 is solely the enterprise-vision and (optional) values
Row-1 example - ZapaMex 
“making 
feet happy” 
Who What How Where When Why 
Row-1 is simple lists from Zachman interrogatives, 
describing entities needed to make the enterprise happen
Row-2 example - ZapaMex 
“making 
feet 
happy” 
leather 
supplier 
ZapaMex 
designer 
overseas 
market-partner 
shoe-buyer 
medical 
partner 
competitor 
Row-2 starts to show relationships across the enterprise
Row-3 example - ZapaMex 
deliver 
shoes supplier customer 
receive 
materials to 
inventory 
make shoes 
store and 
ready shoes 
for shipment 
obtain 
materials 
An overly-simplistic row-3, based on transactions only
Row-3 example - ZapaMex 
procurement 
product-development 
+ marketing 
receive 
materials to 
inventory 
make shoes 
sales and 
service 
store and 
ready shoes 
for shipment 
supplier customer 
accounts 
payable 
manage 
budget, 
operations 
accounts 
receivable 
identify and 
support 
suppliers 
obtain 
materials 
pay for 
materials 
identify and 
support 
customers 
deliver 
shoes 
be paid for 
shoes 
Describe more of the row-3 detail for service-delivery
Row-3 example - ZapaMex 
shared-enterprise 
gain / maintain enterprise reputation 
market 
gain / maintain market respect 
procurement 
product-development 
+ marketing 
receive 
materials to 
inventory 
make shoes 
sales and 
service 
store and 
ready shoes 
for shipment 
gain supplier 
respect 
gain customer 
respect 
supplier customer 
accounts 
payable 
manage 
budget, 
operations 
accounts 
receivable 
identify and 
support 
suppliers 
obtain 
materials 
pay for 
materials 
identify and 
support 
customers 
deliver 
shoes 
be paid for 
shoes 
verify supplier 
satisfaction 
verify customer 
satisfaction 
verify market satisfaction 
verify enterprise satisfaction 
Expand row-3 modelling out to the full enterprise-context
Internal structures 
of services
Service-content 
We can view what services consist of in various ways 
- but eventually we’ll need the full detail
Service-content 
What How Where Who When Why 
In rows 1 and 2 (lists, and basic relations between entities), 
we can get away with the simple Zachman-interrogatives
Service-content 
Capabilities 
Locations 
Functions 
Assets 
Events 
Decisions 
For rows 2 and 3 (implementation-independent), 
we start to need to become more specific
Asset (‘What’) 
- a resource for which 
the enterprise acknowledges 
responsibility 
Composition: 
any combination of asset-dimensions.
Function (external of ‘How’) 
- external-facing interface, 
responsible for service-contracts, 
protocols, SLAs, etc; 
accepts and returns assets 
Composition: 
any combination of asset-dimensions.
Location (‘Where’) 
- a position within the terms of 
a specific schema 
Composition: 
any combination of asset-dimensions, 
plus time-as-location.
Capability (‘Who’ / ‘How’ / ‘What’) 
- the ability to do something: 
- agent enacts the capability 
- action asset-type acted upon 
- skill-level competence of the agent 
Composition: 
agent / action: asset-dimensions; 
skill-level: skills/decision dimensions; 
also recursively consists of other services
Event (‘When’) 
- trigger for a function and 
underlying capability 
Composition: 
any combination of asset-dimensions.
Decision / Reason (‘Why’) 
- sensemaking / decision-making 
for the service, and/or its type of 
guidance or governance 
Composition: 
any combination of decision/skills 
dimensions.
Function, capability and service 
service 
capabilities 
function 
(interface) 
Seen from outside, function and service may seem the same: 
service is the whole thing, function is just its external-interface
Service-content 
Starting in row-3, and downward to the real-world, 
we must have the full detail of how all the elements intersect
Asset dimensions 
Assets 
Asset-types What 
Phys 
Virtual 
Reln 
Aspn 
physical object, machine, geographic location etc 
information, software-application, IP-address etc 
link between people and/or to other tangible 'things' 
person-to-virtual or virtual-to virtual link (brand etc) 
Physical 
Virtual 
Relational 
Aspirational 
Most entities will consist of any appropriate combination 
– e.g. book is physical ‘thing’, contains information, is valued
Asset dimensions 
Shared-purpose 
(vision and values) 
Relationships 
(person-to-person) 
Transactions 
(products and services) 
Integration 
(how the market 
links together) 
Conversations 
(exchange of information) 
Asset-dimensions are essentially same as ‘tetradian’ dimensions
On relational-assets… 
“Our people are our greatest asset!” 
- the only time that people are ‘assets’ 
is when they are slaves… 
The relationship is the asset 
- not the person… 
CC-BY-NC-ND littlejoncollection via Flickr
Decision/skills dimensions 
Decisions 
simple, linear, true/false or limited-quantitative 
complicated, linear but allow for delays, feedback 
complex, ambiguous, non-linear, 'wild-problems' 
uniqueness, extreme-uncertainty, 'chaotic' 
Decision/skill-types Why 
Rules 
Algor’m 
Guideln 
Princpl 
Rule-based (trainee) 
Algorithmic (apprentice) 
Guidelines (journeyman) 
Principle-based (master) 
Most contexts will need to include combinations of these
Decision/skills dimensions 
Decision/skills dimensions much the same as SCAN domains
Service-content 
We can describe the content and structure of all services, 
using this as a graphical checklist. 
(Also illustrates that Zachman needs an entire extra dimension)
Products as exchanges 
between services
Exchanges 
Service Product Service 
Products are exchanged between services
A product 
is an outcome of service 
and the promise 
of future service.
Exchanges as assets 
Assets 
Asset-types What 
Phys 
Virtual 
Reln 
Aspn 
physical object, machine, geographic location etc 
information, software-application, IP-address etc 
link between people and/or to other tangible 'things' 
person-to-virtual or virtual-to virtual link (brand etc) 
Physical 
Virtual 
Relational 
Aspirational 
Products / exchanges are always (sets of) assets, 
composed of combinations of the asset-dimensions.
Views across service-boundary 
• Outside-out: Big-picture ‘world’, beyond even the market 
• Outside-in: View from ‘outside’ into organisation 
• Journey: Touchpoints between ‘outsider’ and organisation 
• Inside-out: View from the organisation’s perspective 
• Inside-in: View of the organisation to inside itself
Cycles of interaction 
between services
The service-cycle 
Shared-purpose defines the service-context 
boundary of ‘market’ 
in conventional 
business-models 
Reputation / trust 
Respect / relations 
Attention / conversation 
Transaction / exchange 
(profit / value-return) 
Completion 
Reaffirmed trust 
Overall flow of service and exchange follows a consistent cycle
Enterprise and service-cycle 
shared-enterprise 
includes community, government, 
non-clients, anti-clients, others 
market 
includes prospects, competitors, regulators, others 
transaction 
supplier organisation customer 
Reputation / trust 
Respect / relations 
Attention / conversation 
Transaction / exchange 
(profit / value-return) 
(completion) 
(reaffirmed trust) 
Much the same themes apply to shared-enterprise and market
Enterprise and service-cycles 
shared-enterprise 
gain / maintain enterprise reputation 
market 
gain / maintain market respect 
procurement 
product-development 
+ marketing 
receive 
materials to 
inventory 
make shoes 
sales and 
service 
store and 
ready shoes 
for shipment 
gain supplier 
respect 
gain customer 
respect 
supplier customer 
accounts 
payable 
manage 
budget, 
operations 
accounts 
receivable 
identify and 
support 
suppliers 
obtain 
materials 
pay for 
materials 
identify and 
support 
customers 
deliver 
shoes 
be paid for 
shoes 
verify supplier 
satisfaction 
verify customer 
satisfaction 
verify market satisfaction 
verify enterprise satisfaction 
The service-cycle applies across all of these connections
Asset-dimensions and service-cycle 
shared-purpose (aspirational) 
relationship (relational) 
conversation (virtual) 
transaction (physical) 
(delivery of service) 
(completion of actions) 
(completion for provider) 
(reaffirmed trust) 
(completion for customer) 
(completion for enterprise) 
Different stages of the cycle emphasise different asset-types 
(overall cycle needs to complete for trust to be maintained)
Project-cycle and service-cycle 
Purpose 
(forming) 
strategy etc 
People 
(storming) 
HR etc 
Performance 
(adjourning) 
reporting etc 
Preparation 
(norming) 
scheduling etc 
Process 
(performing) 
production etc 
Every instance of service is also a project in its own right
Five Elements and enterprise 
An adaptation of Five Elements describes service-lifecycles
Five Elements and service-cycle 
Values Policies 
Purpose 
Commitment 
Performance 
People 
Preparation 
Process 
Events 
Trust / 
Completions 
(start here) 
Success 
(Initiating-Events) 
(Completion-Events) 
Identify the elements that help to pull from one phase to next
Service-cycle and Enterprise Canvas 
enterprise 
vision Trust 
value-proposition 
value-creation 
supplier / 
customer 
relations 
supplier / 
customer 
channels 
value-governance 
value-outlay 
/ return 
Purpose 
People 
Perform 
ance 
Process 
Purpose 
People 
Preparation 
Process 
Trust 
Performance 
Values 
Policies 
Completions 
Values 
Policies 
Events 
Events 
Completions 
Success 
Success 
Prepara 
tion 
‘Inside’ child-services of Enterprise Canvas shown to left; 
‘outward-facing’ child-services shown to right.
Exchanges everywhere… 
Similar exchanges apply across every interchange and flow
Wrapping-up…
Restate that assertion: 
Everything in the enterprise 
is or represents a service. 
(If so, we can describe everything 
in the shared-enterprise 
with Enterprise Canvas.)
Remember the RAZR: 
don’t focus too much on the 
product (Enterprise Canvas), 
focus more on the process 
from which the product arose.
How would you 
merge EA and ST together, 
into something that will work 
and ‘make sense’ 
for everyday EA / ST practice?
Further information: 
Contact: Tom Graves 
Company: Tetradian Consulting 
Twitter: @tetradian ( http://twitter.com/tetradian ) 
Weblog: http://weblog.tetradian.com 
Slidedecks: http://www.slideshare.net/tetradian 
Publications: http://tetradianbooks.com and http://leanpub.com/u/tetradian 
Books: • The service-oriented enterprise: enterprise architecture and 
viable services (2009) 
• Mapping the enterprise: modelling the enterprise as services 
with the Enterprise Canvas (2010) 
• Everyday enterprise-architecture: sensemaking, strategy, 
structures and solutions (2010) 
• Doing enterprise-architecture: process and practice in the 
real enterprise (2009)

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Bridging enterprise-architecture and systems-thinking

  • 1. the futures of business Bridging enterprise-architecture and systems-thinking - an introduction to Enterprise Canvas Tom Graves, Tetradian Consulting: October 2014
  • 2. An EA / systems-thinking tool… citizen (values) customer (value) investor (money etc) validation direction coordination guidance guidance before before supplier relations value-proposition during during supplier channels customer relations value-creation customer supplier customer channels after after value-outlay value-governance value-return investment dividend mgmt-info investor beneficiary
  • 4. A core aim in EA and systems-thinking: things work better when they work together on purpose
  • 5. For this to happen, we need guided-conversations that are actually everyone’s responsibility. What visual tools can we use to engage people in this?
  • 6. Let’s begin, though, with a cautionary tale…
  • 7. Motorola RAZR - a hugely innovative product (in 2003, anyway) - the outcome of a new type of innovation process CC-BY-NC joshb via Flickr
  • 8. did Motorola forget their process for innovation? - mere tweaks to the product four years later, the product was gone – and almost the company too CC-BY-NC-ND gordon meivia Flickr
  • 9. Keep focus on the process for tools-development, not just any one product…
  • 10. Our task here: some frame or tool to guide conversations about things work better when they work together on purpose
  • 11. …but we need to be careful not to get too focussed on the tool itself… keep ourselves open to the awareness that there are always other ways to do this!
  • 12. Where do we start?
  • 13. Short answer: start with what we already have ready to use in our ideas-toolkit…
  • 15. On one side, there’s enterprise-architecture…
  • 17. Enterprise-architecture… Business Architecture Data Architecture Applications Architecture (Information-Systems Architecture) Technology Architecture The ‘BDAT stack’
  • 18. Enterprise-architecture… TOGAF (The Open Group Architecture Framework)
  • 19. Enterprise-architecture… PRM (Performance Reference Model) from FEAF ([US] Federal Enterprise Architecture Framework)
  • 24. Enterprise-architecture… And computers, of course. (lots and lots and lots of them…)
  • 25. Experience: mainstream ‘enterprise’-architecture maybe feels too IT-centric, too fragmenting and too incomplete?
  • 26. My own starting-point was more with systems-thinking and other whole-context methods…
  • 27. Systems-thinking… vision policy procedure work-instruction more abstract more concrete ISO9000 quality-system standards
  • 28. Systems-thinking… Shared-purpose (vision and values) Integration (how the market links together) ‘Tetradian’ dimensions – physical ‘things’, virtual information, relational links between people, aspirational purpose Relationships (person-to-person) Transactions (products and services) Conversations (exchange of information)
  • 30. Systems-thinking… Modality – the MoSCoW set (“Must, Should, Could, can-Wait”) (or “Maybe, Sometimes, Could-be-possible, We-don’t-know”?) CC-BY-NC-SA thisisbossi via Flickr
  • 31. Systems-thinking… Rotating between sensemaking-methods…
  • 33. Systems-thinking… Stafford Beer’s ‘Viable System Model’
  • 34. Systems-thinking… Recursion and fractality in natural systems CC-BY-NC-SA gjshepherd via Flickr
  • 35. Systems-thinking… Purpose (forming) strategy etc People (storming) HR etc Performance (adjourning) reporting etc Preparation (norming) scheduling etc Process (performing) production etc Strategy (‘feel’) Tactics (‘think’) Operations (‘do’) Extensions to Tuckman, and Five Element (wu-xing)
  • 36. Systems-thinking… Values Policies Purpose Commitment Performance People Preparation Process Events Trust / Completions (start here) Success (Initiating-Events) (Completion-Events) Extensions to Five Element (wu-xing) on leadership, flow
  • 37. Systems-thinking… externalised (objective) Scientist (‘outer truth’) uncharted swamp Believer (‘inner truth’) Technologist (‘outer value’) Artist (‘inner value’) truth (thought) value (feeling) internalised (subjective) Worldviews, deep-metaphors and modes of operation…
  • 38. Systems-thinking… power-over power-with power-under power-from-within person A person B Models of power-interactions between people…
  • 39. Systems-thinking… An emphasis on people, and spaces… CC-BY-ND alanclarkdesign via Flickr
  • 41. Systems-thinking… An emphasis on the system as a whole… CC-BY-ND Kecko via Flickr
  • 42. Systems-thinking… An emphasis on the system as a whole…CC-BY Fretro via Flickr
  • 43. Experience: all seems very powerful, yet much of systems-thinking and related disciplines can be too ‘abstract’ for people to (want to) follow?
  • 44. How might we link all of these EA and ST themes together, into something that will work and ‘make sense’ for everyday EA / ST practice?
  • 45. (What follows is my synthesis of all that, to create Enterprise Canvas: what you’d do might be very different, depending on your experience and toolkit)
  • 46. Remember the RAZR: focus on the process of synthesis more than the product of that synthesis…
  • 47. Recursion: this process for developing a set of whole-of-context tools for EA and systems-thinking is itself an application of EA and systems-thinking
  • 49. Start with an assertion: Everything in the enterprise is or represents a service. (If so, we can describe everything in the same consistent way.)
  • 50. Why anything happens A tension exists between what is, and what we want. The vision describes the desired-ends for action; values guide action, describing how success would feel.
  • 51. The nature of service A service represents a means toward an end – ultimately, the desired-ends of the enterprise-vision.
  • 52. Relations between services Services exchange value with each other, to help each service reach toward their respective vision and outcome.
  • 53. Services serve. (That’s why they’re called ‘services’…) What they serve is the story, via exchange of value. (And if we get that right, they can sometimes make money, too.)
  • 54. Values and value Each service sits at an intersection of values (vertical) and exchanges of value (horizontal)
  • 55. How connection happens Value-flow is ‘horizontal’, but connection is first made by ‘vertical’ connection to shared-value and value-proposition
  • 56. In more detail value-add (self) customer-facing supplier-facing Interactions during the main-transactions are preceded by set-up interactions (before), and typically followed by other wrap-up interactions such as payment (after). We can describe ‘child-services’ to support each of these.
  • 57. Business-model as service Crossmap between Business Model Canvas and Enterprise Canvas
  • 58. Supply-chain or value-web Services link together in chains or webs, as structured and/or unstructured processes, to deliver more complex and versatile composite-services.
  • 60. Keeping on track Use the Viable System Model (direction, coordination, validation) to describe service-relationships to keep this service on track to purpose and in sync with the whole.
  • 61. Keeping on track: VSM Viable System Model, representing a fractal service
  • 62. Keeping on track: VSM Viable System Model ‘systems’ are orthogonal to each other
  • 63. Keeping on track: VSM Coordination and Validation don’t fit comfortably with Taylorism
  • 64. Keeping on track: Direction management-services policy strategy direction This is the equivalents of VSM system-3, -4 and -5
  • 65. Keeping on track: Direction interaction with management-services in parent-service above management-services policy strategy direction policy strategy direction interaction with management-services in child-services below Interactions with delivery-services (system-1), and recursion
  • 66. Keeping on track: Coordination management-services policy strategy direction delivery-service develop the business change the business run the business delivery-service delivery-service Extended functions for equivalent of VSM system-2
  • 67. The VSM algedonic links - ‘any-to-any’ connections - provide another kind of coordination. (Hard to show on diagrams, though.)
  • 68. Keeping on track: Validation Major extensions / rethink for VSM system-3*
  • 69. Validation-services: for each enterprise-value: - build awareness of the value - build capability to enact support - enact in practice at run-time - assess and review (for continual improvement)
  • 71. Investor and beneficiary These flows (of which only some types are monetary) are separate and distinct from the main value-flows.
  • 72. Another useful assertion: Every enterprise is ‘for-profit’. (We need to think of ‘profit’ in a much broader sense than money alone.)
  • 73. Investor and beneficiary shared-enterprise includes community, government, non-clients, anti-clients, others market includes competitors, supplier- regulators, others prospects customer-prospects supplier organisation customer includes investors, beneficiaries Investors and beneficiaries are often outside even of the market – yet are still part of the same shared-enterprise.
  • 74. We need to consider investments and returns of every applicable type, to and from every type of stakeholder. (‘Applicable type’ is determined by the shared-enterprise values.)
  • 75. Stakeholders in the enterprise A stakeholder in the story is anyone who can wield a sharp-pointed stake in your direction… CC-BY-NC-SA evilpeacock via Flickr (Hint: there are a lot more of them than you might at first think…)
  • 76. Values, value-flow, money values (‘why’) (‘why’) value-flow (‘how’, ‘with-what’) (‘how’, ‘with-what’) profit (money and more) (money and more) These are distinct flows – don’t mix them up!
  • 77. Doing it right: values-first… Values-first enables full connection with shared-enterprise
  • 78. Doing it wrong: money-first… Money-first causes disconnect from shared-enterprise
  • 79. Always start from values, not money.
  • 80. If we focus on money, we lose track of value. If we focus on the ‘how’ of value, we lose track of the ‘why’ of values. Always start from the values. (Not the money.)
  • 81. Layers of abstraction for service views
  • 82. ‘Rows’ – layers of abstraction Enterprise Scope (context) other other Business-services other other Service-content supplier customer Service-design supplier customer Service-deployment supplier customer Action-record supplier customer Enterprise identity, vision and values Lists of key players and items in enterprise Roles / relations between / within key players / items Actions / transactions - implementation-independent Actions / transactions - implementation-specific Actions / transactions - operations-specific (action-plan) Actions / transactions - as actioned / completed (past) Row-numbering aligns with Zachman row-0 row-1 row-2 row-3 row-4 row-5 row-6
  • 83. Each ‘row’ downward adds something more to the description. Example: row-3 is implementation-independent, row-4 is implementation-specific.
  • 84. Beware of mixed layering E-commerce service front-end content server web-server (Apache) payments processing database (Oracle 9i) Fulfilment warehouse Dayton, Milton Ohio Keynes Marseilles Den Haag Example: Use solid-lines versus dashed-lines to represent row-3 / row-4 layer-differences in model and model-entities
  • 85. Layers in Enterprise Canvas are layers of abstraction within the same scope - not arbitrary views into different parts of the scope, with arbitrary interconnections!
  • 86. Row-0 example - ZapaMex “making feet happy” enterprise-vision as identified by ZapaMex Row-0 is solely the enterprise-vision and (optional) values
  • 87. Row-1 example - ZapaMex “making feet happy” Who What How Where When Why Row-1 is simple lists from Zachman interrogatives, describing entities needed to make the enterprise happen
  • 88. Row-2 example - ZapaMex “making feet happy” leather supplier ZapaMex designer overseas market-partner shoe-buyer medical partner competitor Row-2 starts to show relationships across the enterprise
  • 89. Row-3 example - ZapaMex deliver shoes supplier customer receive materials to inventory make shoes store and ready shoes for shipment obtain materials An overly-simplistic row-3, based on transactions only
  • 90. Row-3 example - ZapaMex procurement product-development + marketing receive materials to inventory make shoes sales and service store and ready shoes for shipment supplier customer accounts payable manage budget, operations accounts receivable identify and support suppliers obtain materials pay for materials identify and support customers deliver shoes be paid for shoes Describe more of the row-3 detail for service-delivery
  • 91. Row-3 example - ZapaMex shared-enterprise gain / maintain enterprise reputation market gain / maintain market respect procurement product-development + marketing receive materials to inventory make shoes sales and service store and ready shoes for shipment gain supplier respect gain customer respect supplier customer accounts payable manage budget, operations accounts receivable identify and support suppliers obtain materials pay for materials identify and support customers deliver shoes be paid for shoes verify supplier satisfaction verify customer satisfaction verify market satisfaction verify enterprise satisfaction Expand row-3 modelling out to the full enterprise-context
  • 93. Service-content We can view what services consist of in various ways - but eventually we’ll need the full detail
  • 94. Service-content What How Where Who When Why In rows 1 and 2 (lists, and basic relations between entities), we can get away with the simple Zachman-interrogatives
  • 95. Service-content Capabilities Locations Functions Assets Events Decisions For rows 2 and 3 (implementation-independent), we start to need to become more specific
  • 96. Asset (‘What’) - a resource for which the enterprise acknowledges responsibility Composition: any combination of asset-dimensions.
  • 97. Function (external of ‘How’) - external-facing interface, responsible for service-contracts, protocols, SLAs, etc; accepts and returns assets Composition: any combination of asset-dimensions.
  • 98. Location (‘Where’) - a position within the terms of a specific schema Composition: any combination of asset-dimensions, plus time-as-location.
  • 99. Capability (‘Who’ / ‘How’ / ‘What’) - the ability to do something: - agent enacts the capability - action asset-type acted upon - skill-level competence of the agent Composition: agent / action: asset-dimensions; skill-level: skills/decision dimensions; also recursively consists of other services
  • 100. Event (‘When’) - trigger for a function and underlying capability Composition: any combination of asset-dimensions.
  • 101. Decision / Reason (‘Why’) - sensemaking / decision-making for the service, and/or its type of guidance or governance Composition: any combination of decision/skills dimensions.
  • 102. Function, capability and service service capabilities function (interface) Seen from outside, function and service may seem the same: service is the whole thing, function is just its external-interface
  • 103. Service-content Starting in row-3, and downward to the real-world, we must have the full detail of how all the elements intersect
  • 104. Asset dimensions Assets Asset-types What Phys Virtual Reln Aspn physical object, machine, geographic location etc information, software-application, IP-address etc link between people and/or to other tangible 'things' person-to-virtual or virtual-to virtual link (brand etc) Physical Virtual Relational Aspirational Most entities will consist of any appropriate combination – e.g. book is physical ‘thing’, contains information, is valued
  • 105. Asset dimensions Shared-purpose (vision and values) Relationships (person-to-person) Transactions (products and services) Integration (how the market links together) Conversations (exchange of information) Asset-dimensions are essentially same as ‘tetradian’ dimensions
  • 106. On relational-assets… “Our people are our greatest asset!” - the only time that people are ‘assets’ is when they are slaves… The relationship is the asset - not the person… CC-BY-NC-ND littlejoncollection via Flickr
  • 107. Decision/skills dimensions Decisions simple, linear, true/false or limited-quantitative complicated, linear but allow for delays, feedback complex, ambiguous, non-linear, 'wild-problems' uniqueness, extreme-uncertainty, 'chaotic' Decision/skill-types Why Rules Algor’m Guideln Princpl Rule-based (trainee) Algorithmic (apprentice) Guidelines (journeyman) Principle-based (master) Most contexts will need to include combinations of these
  • 108. Decision/skills dimensions Decision/skills dimensions much the same as SCAN domains
  • 109. Service-content We can describe the content and structure of all services, using this as a graphical checklist. (Also illustrates that Zachman needs an entire extra dimension)
  • 110. Products as exchanges between services
  • 111. Exchanges Service Product Service Products are exchanged between services
  • 112. A product is an outcome of service and the promise of future service.
  • 113. Exchanges as assets Assets Asset-types What Phys Virtual Reln Aspn physical object, machine, geographic location etc information, software-application, IP-address etc link between people and/or to other tangible 'things' person-to-virtual or virtual-to virtual link (brand etc) Physical Virtual Relational Aspirational Products / exchanges are always (sets of) assets, composed of combinations of the asset-dimensions.
  • 114. Views across service-boundary • Outside-out: Big-picture ‘world’, beyond even the market • Outside-in: View from ‘outside’ into organisation • Journey: Touchpoints between ‘outsider’ and organisation • Inside-out: View from the organisation’s perspective • Inside-in: View of the organisation to inside itself
  • 115. Cycles of interaction between services
  • 116. The service-cycle Shared-purpose defines the service-context boundary of ‘market’ in conventional business-models Reputation / trust Respect / relations Attention / conversation Transaction / exchange (profit / value-return) Completion Reaffirmed trust Overall flow of service and exchange follows a consistent cycle
  • 117. Enterprise and service-cycle shared-enterprise includes community, government, non-clients, anti-clients, others market includes prospects, competitors, regulators, others transaction supplier organisation customer Reputation / trust Respect / relations Attention / conversation Transaction / exchange (profit / value-return) (completion) (reaffirmed trust) Much the same themes apply to shared-enterprise and market
  • 118. Enterprise and service-cycles shared-enterprise gain / maintain enterprise reputation market gain / maintain market respect procurement product-development + marketing receive materials to inventory make shoes sales and service store and ready shoes for shipment gain supplier respect gain customer respect supplier customer accounts payable manage budget, operations accounts receivable identify and support suppliers obtain materials pay for materials identify and support customers deliver shoes be paid for shoes verify supplier satisfaction verify customer satisfaction verify market satisfaction verify enterprise satisfaction The service-cycle applies across all of these connections
  • 119. Asset-dimensions and service-cycle shared-purpose (aspirational) relationship (relational) conversation (virtual) transaction (physical) (delivery of service) (completion of actions) (completion for provider) (reaffirmed trust) (completion for customer) (completion for enterprise) Different stages of the cycle emphasise different asset-types (overall cycle needs to complete for trust to be maintained)
  • 120. Project-cycle and service-cycle Purpose (forming) strategy etc People (storming) HR etc Performance (adjourning) reporting etc Preparation (norming) scheduling etc Process (performing) production etc Every instance of service is also a project in its own right
  • 121. Five Elements and enterprise An adaptation of Five Elements describes service-lifecycles
  • 122. Five Elements and service-cycle Values Policies Purpose Commitment Performance People Preparation Process Events Trust / Completions (start here) Success (Initiating-Events) (Completion-Events) Identify the elements that help to pull from one phase to next
  • 123. Service-cycle and Enterprise Canvas enterprise vision Trust value-proposition value-creation supplier / customer relations supplier / customer channels value-governance value-outlay / return Purpose People Perform ance Process Purpose People Preparation Process Trust Performance Values Policies Completions Values Policies Events Events Completions Success Success Prepara tion ‘Inside’ child-services of Enterprise Canvas shown to left; ‘outward-facing’ child-services shown to right.
  • 124. Exchanges everywhere… Similar exchanges apply across every interchange and flow
  • 126. Restate that assertion: Everything in the enterprise is or represents a service. (If so, we can describe everything in the shared-enterprise with Enterprise Canvas.)
  • 127. Remember the RAZR: don’t focus too much on the product (Enterprise Canvas), focus more on the process from which the product arose.
  • 128. How would you merge EA and ST together, into something that will work and ‘make sense’ for everyday EA / ST practice?
  • 129. Further information: Contact: Tom Graves Company: Tetradian Consulting Twitter: @tetradian ( http://twitter.com/tetradian ) Weblog: http://weblog.tetradian.com Slidedecks: http://www.slideshare.net/tetradian Publications: http://tetradianbooks.com and http://leanpub.com/u/tetradian Books: • The service-oriented enterprise: enterprise architecture and viable services (2009) • Mapping the enterprise: modelling the enterprise as services with the Enterprise Canvas (2010) • Everyday enterprise-architecture: sensemaking, strategy, structures and solutions (2010) • Doing enterprise-architecture: process and practice in the real enterprise (2009)