eba beyond theory v6 notes
Post on 20-May-2015
260 Views
Preview:
TRANSCRIPT
Beyond Theory Business Architecture
1
Trained over 100,000 professionals
Completed over 1,400 requirements projects
In excess of 700 Organizations using our methods
Annually invested 10% of our
revenue in developing our methods and harmonizing these with industry best practices
Authors of The Business Analysis Benchmark
Worked with over 300 of the
Fortune 1000 companies Founding member of the IIBA
> 200 trained
professionals focused 100% on excellence in business requirements
Contributing Author to the BIZBOK ™
Learning Objectives
1
2
3
Provide clear, rational reasons to do Business Architecture
Provide a filtered set of Business Architecture Models, views and uses to mitigate project and analysis risk Suggest a staged Execution Model
Business Architecture – Beyond Theory
3
Topics
What’s Going On?
What’s the Effect?
How do we Respond?
Standards
Business Blueprints
Blueprinting Lifecycle
Technology Impact
Focus – Biggest Bang
Business Architecture – Beyond Theory
4
Change
What’s Going On? Forces at Work
Cost Revenue
Business Architecture – Beyond Theory
5
Costs and Convergence
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014
Cost
Revenue
Revenue Pressure: Market Meltdown Customer Expectations Speed to Market Regulatory Constraints Workforce Attrition Competition
Cost Pressure: Transformation Infrastructure Maintenance New Projects Application Constraints Legacy demise Survival
Direction: What’s the Effect?
Business Architecture – Beyond Theory
6
How do we respond?
Efforts to drive the convergence in another direction
Don’t be complacent
Enterprise Architecture
Business Architecture – Beyond Theory
7
Business Architecture
Standards
Blueprint Models
Functional Models
Process Models
Impact on Technology
Business Architecture – Beyond Theory
8
Consideration for Intellectual Capital as an Asset and corporate memory
Relating Business Architecture to only IT
Historical approaches to solve business problems
Historical approach to funding models
What’s the Challenge? What value am I getting?
Changing Viewpoints
IT Understanding of business priorities & motivations
Organizational maturity to innovation and transformation
Business Architecture – Beyond Theory
9
An
alys
is R
esu
lt
Business Change- How Big? Competing or Complimentary Strategies?
10
Bu
sin
ess
Str
ate
gy
Competitive Requirement
Cost reduction focus
Limited expected revenue increase
Business case may support transformational strategy.
Reengineering
Redesigning of the business process to meet market or competitive needs or increase efficiency/effectiveness of the current business operating model.
Business As Usual
Continue forward with marginal deployment capabilities
Keep the Lights on
Optimization
Redefining the business process to eliminate localized operational challenges
Future State
Market differentiation involving significant corporate will.
Requires policy change, product rationalization, resource rightsizing
Long term in nature.
Transformation
Radical, large scale change in the business operating model and the product or service delivery
Business Architecture – Beyond Theory
Standards
• Open Group
• BPMN
• OMG Industry
• Ontology versus Glossary
• Verb and Event taxonomy
• Common Understanding
• Cross pollination of business concepts and requirements
Common Language
• Integrated with Business Process Management
• Integrated with Business Analysis techniques
• Governance
Methodology and Approach
• Repository Management
• Compliance Management
• Scalability
• Analysis capability
Tooling
Business Architecture – Beyond Theory
11
Business Blueprints
A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands.
BAWG – OMG
Component Business Model: Human Capital Management
Business Architecture – Beyond Theory
12
Construct of a Blueprint
13
Sales & Marketing Products & Services Operations & ProcessingRisk & Financial
ComplianceStrategy & Governance
Market Research &
AnalyticsProduct Development Resource Planning Regulatory Advisory Business Strategy Mgmt
Customer Mgmt
Strategy
Product Research &
Analytics
Operations Policy &
ProcedureAlliance Planning
HR Planning &
Governance
Segment Analysis &
PlanningChannel Mgmt Channel Mgmt Risk Mgmt
Programme & Change
Mgmt
Marketing Mgmt Business ContinuityFinancial Accounting
& Reporting
Regulatory &
Compliance Policy
Brand Mgmt Information Tech Decision Support Mergers & Acquisition
Sales & Contract
Monitoring
Product Catalogue
Mgmt
Central Service
ManagementBalance Sheet Project Mgmt Office
Relationship MgmtProduct & Service
MonitoringVendor Management Credit Oversight Audit
End to End Service
Level Perf MonitoringChannel Performance Statistics & Measurement Legal Advisory
Business Policy
Oversight
Authorization/ApprovalsRisk & Financial
Control
Compensation &
Benefits
Auth & Limits Delegation Financial Data MgmtRegulatory Compliance
Monitoring
Client Acquisition &
Referrals
Transactional
ProcessingCustomer Data Mgmt
Accounts Payable /
ReceivablesProject Cost Acct
Contact Mgmt Order Mgmt Statement Prep InvestigationsLearning &
Development
Compliant Mgmt Document Mgmt Collections &
RecoveryRegulatory Reporting
Prospecting & Sales Credit ProcessingCredit Approval &
ProcessingBusiness Procedures
Campaign Execution Fees & Billing MgmtFinancial
ConsolidationM&A Due Diligence
End Consumer Sales Payments Tax Reporting Vendor Mgmt
Strategic
Control
Execute
ILLUSTRATIVE
Product Performance
Mgmt
Campaign
Management
Pricing Policy
Channel Delivery
Mgmt
Product
Configuration Mgmt
A blueprint is constructed to reflect Business Competencies and Business Capabilities.
The capabilities are tiered by Strategy,
Control,
and Execution
to demonstrate a type
Opportunity Identification
Direct
Execute
Control
Bu
sin
ess
Ad
min
istr
ati
on
Marketi
ng
Asset
Mg
mt
&
Prod
uct
Develo
pm
en
t
Sale
s &
Ch
an
nel
Man
ag
em
en
t
New
Bu
sin
ess
Cu
sto
mer
Servic
e
Con
tract
Fin
an
ce
Bu
sin
ess
Ad
min
istr
ati
on
Marketi
ng
Asset
Mg
mt
&
Prod
uct
Develo
pm
en
t
Sale
s &
Ch
an
nel
Man
ag
em
en
t
New
Bu
sin
ess
Cu
sto
mer
Servic
e
Con
tract
Ad
min
istr
ati
on
Operations Planning
Service
Management
Contract &
Policy Set-up
Channel
Management
Campaign
Management
Alliance
Management
Product Management
Manufacturing Planning Distribution
Planning
Operational Control
Financial
Control
Accounting
&Finance
Planning
Asset &
Liability
Management
Funds Management
Trading
General
Ledger
Treasury
Claims
processing
Contact
Servicing
In-force
Processing
Check
Processing
Contract
Administration
Correspondence
Intelligent Routing
Contact
Repository
Customer
Profile
Fees &
Commissions
End - customer
marketing
Campaign
Execution
Product Development
Sales
Support
Product
Profile
End -
Consumer
Sales
Conservation
Human
Resource
Business
Planning
Management Manual
Regulatory
Reporting
Training
Council
Services
Systems &
Facilities
Helpdesk
Advisor/
Intermediary
Administration
Advisor/ Intermediary
Set-up
Wholesales
gaps gaps
gaps
Gaps – opportunity to implement new IT systems where none exist before
duplication
over- extension
deficiency
Deficiencies - the system lacks key functionality, or is poorly designed
Duplication – multiple systems compete for the same need. Opportunity for consolidation
Over-Extension – a system designed to support one component is extended beyond its core capability to help support others
Business Architecture – Beyond Theory
14
Methodology For Use
Business Strategy – Ensure project spend aligns
Synchronization of Business / IT transformation efforts
Project identification/rationalization- duplication, funding, resource
Technology portfolio decommissioning
Outsourcing Opportunities
Customer Segmentation Initiatives
Target Business Operating Model: Where and How?
Value-based prioritization and implementation strategy developed with consideration for budget, resource constraints, competitive market pressures and other factors.
Business Architecture – Beyond Theory
15
Strategic
Total Costs of Ownership Analysis
Spend Control and Funding Models
Shared Services
Strategic Vendor Sourcing
Scorecard based business strategy alignment
Acquisition and Mergers
Impact
Business Architecture – Beyond Theory
16
Blueprinting Lifecycle
Advantages
Visual improves ability for stakeholder sign-off
Well defined processes, terms and definitions
Acceleration in identifying reusable processes and rules
Consistent language
Logic is contained within the process
Each Capability is underpinned by a number of Business Functions
Each Function is in turn supported by a range of Business Processes
Each process collaborates across a set of activities and tasks to compete the business objective
The lifecycle employs methods, tools and techniques to develop agile and integrated business perspectives that provides traceability and alignment between levels.
Business Architecture – Beyond Theory
Note: Copyright IBM Corporation 2006 17
Business Capability Models
Business Architecture – Beyond Theory
Business capabilities are the highest level of business architecture
construction design and are market facing
Each Capability
• conducts a mutually exclusive, collectively exhausted (MECE) set of activities to achieve its business goal.
• require resources, people, technology, knowledge and assets to support activities
• is managed as a independent entity, with its own governance model
• provides and receives business services
• Produces or consumes work products from/to other capabilities in the organizational ecosystem
• is individually scalable and extensible.
18
Business Functional Models
Business Architecture – Beyond Theory
Business functions performed by an organization
Derived from the Business Blueprint
Next level of the Business Architecture deconstruction
Describe the functions which must be available for the
organization to meet its objectives
Models are available from the market
Can be constructed from the Organizational Charts.
19
Business Modeling Core Process Models
Business Architecture – Beyond Theory
Don’t make bad things happen faster
Start and End with a customer
Eliminate non essential steps, reduce cycle time and thru put time,
identify Automation opportunities, organizational
distribution/centralization
Must be expressed to enable Transformational change
Identified in project context by the use of Top Down Blueprint and
business function models
Baseline business case cost
Processes are where all the business requirements are .
20
Strategic Impact
Use of the Functional Model will identify organizational redundancy and overlap.*
Opportunity for significant FTE reduction using Broad Banding and Span of Management standards and statistics
Investment projects mapped to the capability model will identify potential collision and identify direct and indirect stakeholders
Projects using the model will identify in scope business processes and business impact
Business Architecture – Beyond Theory
*Note: Business Consulting Best Practice: “Form follows function” 21
Impact on Technology Current State Future State
Business Modelling
• Inconsistent approach to Requirements Management
• Methodologies are customized for each initiative
• Reuse is not easily visible
Req’ts Definition
• Terminology is inconsistent • Business rules and logic are disconnected from
the process • Difficult tracing process to Req'ts • Req'ts not well maintained
Analysis & Design
•Disconnect from business on requirement definition
•Modeling is not completed efficiently •Difficult tracing req’ts to usecase to process
Coding
• Coding is not derived from a design model • Coding is not clearly traced to Req'ts
Business Modeling
• Well defined process, terms and definitions
standard across all projects.
• Acceleration to identify reusable processes, rules and interdependencies
• Improved ability for stakeholder sign-off
Req’ts Definition
• Consistent language
• Logic contained in the process
• Requirements managed thru standard configurable tools
• Use case models to be used for Analysis
• Contracted definition phase through reusable artefacts and focus on net new
Analysis & Design
• Consistent language
• Logic contained in the process
• Requirement structure is standardized.
• Utilization of use case models
• Contracted phase through reusable artefacts
• Focus on net new
Coding
• Coding is driven from the model
• Enforces object oriented development approach
• Clear relationship between Req'ts, design and coding.
22
Reduce Application Redundancy – Capability Model
• Eliminate duplication
• Reduce risk exposure
• “End of Life” legacy
• Identify required unsupported business capability
Eliminate Organizational Redundancy – Functional Model
• Identify Business units with same/similar functions to minimize redundancy
• Identify Core vs shared services
• Identify Cross business unit dependency
• Apply spans of control across functions
Core Processes – Prioritization
• Lifecycle – Open, Maintain, Transact, Renew, Close
• High Volume, High Costs, Low Revenue
• Expose Shared Services, Utilities, Black Boxes
• Scalable Business Services
• Target Scorecard Measurement
Focus
Asset Management
•Manage Knowledge as an asset through a Central Knowledge Repository •Rich Intellectual property exists
for scenario or project early analysis
Business Architecture – Beyond Theory
Biggest Bang
23
24
Increasing organizational capability and reuse while contributing to cost management, quality and risk
Value Business Architecture – Beyond Theory
Manage Costs
• Increase productivity and reduce costs by standardizing processes and capitalizing on economies of scale
• Improve the process first before you automate
• Apply functional alignment and spans of control analysis
• Understand capability performance through KPI’s and benchmarking
Quality
• Improve quality by deploying & using industry standards and methods
• Govern compliance to embed quality methods & standards
• Be customer centric
• Ensure methods and collateral is integrated, consistent and coherent across stakeholders and partners
Manage Risk
• Programme/Project Risk mitigate by holistic business impact analysis and change control
• Investment Risk – mitigate by aligning funded projects to strategic capabilities (Tear up the Road Once)
• Regulator Risk – mitigate by aligning the design and implementation to standard processes
• Development Risk -mitigate by clearer articulation of business objectives and requirements
Reuse/Opportunities
• Assess performance & discover new organizational capabilities
• Standardize processes to reuse “Fit for Purpose” technology by application of standards
• Assess the Investment portfolio for reusable common business components & functionality across programmes
• Control project cost by reusing deliverables ie: processes and UC .
Questions
? 25
800.209.3616 PDU Information
1 PDU Activity Number: IAG 701 Provide Number: 2858
top related