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Introductionto Business ArchitectureFor Business AnalystsLinda FinleyLeadership AdvantageAugust 10, 2017Leadership Advantage Proprietary 2013.

2Presentation Focus The definition and practical value ofbusiness architecture; including a high leveldiscussion of the key elements of businessmodeling, strategy mapping, organizationmapping, capability mapping, andapplication mapping. The current state of business architecture,available resources, and activities. A general overview and discussion, we’lldiscuss linkage to business analysis; and theprinciples and alignment within businessarchitecture concepts in some detail.Leadership Advantage Proprietary 2013.

3Leadership Advantage Proprietary 2013.A Brief History ofBusiness Architecture 1995 – The Open Group Architectural Framework (TOGAF) 2007 – Object Management Group (OMG) Business ArchitectureSpecial Interest Group (BASIG) and Business Architecture WorkingGroup (BAWG) 2010 – Business Architecture Guild Formation & subsequentpublication of the BIZBOK Guide Business Architecture Body ofKnowledge 2010 – Twin Cities Business Architecture Forum Community ofPractice is launched 2012 – The Business Architecture Institute is established 2012 – Metro State Business Architecture Certificate is created 2016 – The Business Architecture Summit 2017 – IIBA PDD collaboration with TCBAF September 20th! 2017 – The 2nd annual Business Architecture Summit December 7th! Tomorrow--TBD

4What it is and What it isn’t Business architecture is not a buzzword ora quick fix solution for a broken process,a computer system, or a single project orbusiness unit. It is a holistic discipline (indeed, style ofthinking) that is most effective whenapplied across business units, practices,disciplines, and stakeholders.Chapter 2, Part 1, of Business and Dynamic Change: The Arrival ofBusiness Architecture, Published by Future Strategies, Inc. 2015

5Definition Business Architecture is defining and creating yourbusiness and operations to enable and enhance yourpurpose. It enables you to understand and optimize yourorganization’s capabilities and competencies. It links business and technology current and future. It is the discipline to align current and future businessgoals with people, process, tools, and information. It helps us visualize and convey current and futurebusiness opportunities to the organization.Leadership Advantage Proprietary 2013.

6Business ArchitectureBusiness Architecture provides context andunderstanding for leaders and to organizationalenvironments.It enables you to understand and optimize yourorganization from the “top down” and “bottom up”It enables you to define and create your organization toenable and enhance your purpose.The scope of business architecture is the scope of thebusiness.

A Business Architecture FrameworkIdentify anddescribeeachaspectwithin thebusinessarchitectureframework

Business Architecture scope8“A blueprint of the enterprise that provides a common understandingof the organization and is used to align strategic objectives andtactical demands."Leadership Advantage Proprietary 2013.

9Business Architecture ToolsLeadership Advantage Proprietary 2013.

10Foundation Multi disciplinaryDiffering perspectivesTechnologyArchitecture IT Business ExecutivesBusinessProcessManagementStrategy &PlanningBusinessArchitecture Arose out of a needBusinessAnalysisOrganiza onalDesignProjectManagementLeadership Advantage Proprietary 2013.

11The RoleThe notion that IT is separate from business hasfaded into antiquity.Upper management recognizes that technology is notjust integral to success, but actually directly enables theway companies pursue their business goals."Business architecture is about making sure thewhole business holds together,“It's a role built around business planning, pointing outopportunities to utilize IT more effectively -- in sales,customer service, and all other areas.Unlike the traditional enterprise architect, whose role isto organize technology to meet business goals, thebusiness architect is a member of the businessorganization, reporting to the CEO and fashioning highlevel company strategy with technology in mind.Leadership Advantage Proprietary 2013.

11The RoleThe successful business architect has adeeper knowledge of the company'sbusiness, business model and workflowsthan a typical enterprise architect.Think “MBA with an IT focus”. the need for enterprisearchitects who are glorified implementers is waning.The job of the business architect is to armleaders with the knowledge they need tochoose wisely.Leadership Advantage Proprietary 2013.

13Connected toArchitectural Principles Design for purpose Integrate various componentsto leverage synergies Align efforts toward a commongoal Create framework for crossorganizational mapping Encompass external, Internal,Site, Structure & SystemsLeadership Advantage Proprietary 2013.

14Business Change DriversBusiness architecture building blocks are combined basedon different business scenarios in order to provideexecutive management with the information it needs tomake strategic decisions. Scenarios where businessarchitecture has been and can be used include: Investment AnalysisShift to a Customer Centric Business ModelMerger and Acquisition AnalysisNew Product/Service Roll OutDifferent businessGlobalizationarchitecture views areBusiness Capability Outsourcingcombined to supportSupply Chain Streamliningdifferent businessDivestiturescenariosRegulatory Compliance/ImpactChange ManagementOperational Cost ReductionJoint Venture Deployment

15Analysis Triggers

16The Business ArchitecturePurposeCapabilitiesLeadership Advantage Proprietary 2013.Performance

17The Business ArchitectureWhyPurposeCapabilitiesLeadership Advantage Proprietary 2013.Performance

Start with “Why” 18The Difference We Make Purpose Vision Mission Value Proposition Business ModelLeadership Advantage Proprietary 2013. Who are we? What is our organization’spurpose? Who do we serve? What is the Value Propositionwe offer? Why do we exist? What makes us special—how dowe differentiate ourselves? Why do we matter to themarketplace and to the world?

19Confirm the ContextTo achieve alignment, we must first: Understand the factors that motivate the businessExtract and drive additional detail into elementsof the business planClearly articulate the Ends – things that thebusiness wishes to achieveClearly articulate the Means – things that thebusiness will employ to achieve those EndsIn this way, the business plan becomes thefoundation for connecting solutions, indeed theentire operating model, to the business intentLeadership Advantage Proprietary 2013.

20Business Model CanvasLeadership Advantage Proprietary 2013.

21The 9 block Key ResourcesCost StructuresChannelsRevenue Streamswww.businessmodelgeneration.com

22The Business ArchitecturePurposeWhatCapabilitiesLeadership Advantage Proprietary 2013.Performance

Understand the “What” 23Capabilities Defined People Skills and Competencies Process Value Streams Information Flow Business Rules Tools Models Maps Charts Diagrams Information AssetsLeadership Advantage Proprietary 2013. What must we do to deliver ourbusiness’ purpose? What do we need to deliver ourwhy? What redundancies exist in theorganization? Where are our opportunities inthe future? Do our investments and ourattention align with ourpurpose?

24Business CapabilitiesBusiness Capabilities: Represent “what” we do as a business to consistently deliveran expected result to the marketplace Defined by people, process, technology (including data) Capability modeling and analysis pictorially shows howfunctions are organized to deliver the business purposeBusiness Capability Planning: Encourages and facilitates cross-organizational discussions Provides a common framework and language for defining,aligning and optimizing our business purpose, monitoring andplanning investments, and achieving operationaleffectiveness Identifies redundancy, synergies and reuse opportunitiesacross the enterpriseLeadership Advantage Proprietary 2013.

25Capability MapLeadership Advantage Proprietary 2013.Strategy gementFinanceRegulatory sourceManagement

26Capability Map

27Business capabilities and processWHAT?HOW?Business processesCAN be encapsulatedwithin capabilities.

28Value streamsBusiness “processes” link capabilities nessCapability3BusinessCapability4Customer ValueValue StreamBusiness Capabilitiesorchestrated together in aspecific sequence to delivercustomer value.

29The Business ArchitecturePurposeHowCapabilitiesLeadership Advantage Proprietary 2013.Performance

How Well 30Behaving and Performing Capability Maturity Assessments Competency Organizational inhibitors Change Management Decision-making Models Metrics and Measurement Leadership Culture Roadmaps Roles and ResponsibilitiesLeadership Advantage Proprietary 2013. What is enabling or inhibitingour ability to deliver ourbusiness’ purpose? How can we more successful? How do we measure ourachievements and our success? Is our culture supporting ourpeople, process and tools? How do we anticipate andmanage change? How well is our “what”delivering our “why”?

BUSINESS CAPABILITYFRAMEWORK31Business capabilities ECompetencies that by theirperformance becomestrategic differentiators forthe organization.Business Capabilities that theorganization consistentlydoes well (effectively andefficiently).Business Capabilities thatthe organization does, butnot consistently well(effectively or efficiently).

32Maturity erit fromtheir“children”.A commonmethod toreport resultsis to use aHeat Mapconcept.Level 22.1 – ProductManagement2.2 – PriceManagement2.3 –CampaignManagement2.4 – DistributionManagementLevel 32.1.1 – ProductStrategyCreation2.1.2 – BusinessPlanDevelopment2.1.3 – MarketSolution Design2.1.4 – ProductRolloutLevel 42.1.1.1 – ProductPortfolioManagement2.1.2.1 – ProductInnovationManagement2.1.3.1– Buyerand UserPersonaDefinition2.1.4.1 – ProductLaunch Planning2.1.1.2 – ProductRoadmapDefinition2.1.2.2 – ProductDevelopmentApproachPlanning2.1.3.2 – BuyingProcess Design2.1.4.2– ChannelPartnerEducation2.1.1.3 –ChannelDistributionDefinition2.1.2.3 –Channel PartnerStrategyCreation2.1.3.3 – ProductPositioningAnalysis2.1.4.3 – ProductEffectivenessEvaluation

Capabilities aligned to strategyBusinessstrategyObjectiveGrow theBusinessPartner withGroceryStore ChainRequired BusinessCapabilities

STRATEGY MAPStrategic objective: Partner with Grocery Store Chain to successfullyexpand product into a new market.FinancialPerspectiveProduct PricingCredit ementMarket ResearchProduct DeliveryCustomer ntWorkforcePlanningReceivingTalent ectiveInternal ProcessPerspectiveEducation &TrainingManagementLearning ting

35Business Architecture value streamAssess / RefineBusinessStrategyEnterpriseObjective SettingObjective ImpactFactorIdentificationObjectiveTradeoff alysisArchitectBusinessObjective / ActionIdentificationOrganizationand ResourceMappingDetermineAssessmentPathPlan andRecommendInitiativesDeploy SolutionStrategy ploymentTeamEngagementImpact AnalysisBusinessCapabilityMappingTarget StateVision / BusinessArchitectureMappingActionableObjectives /Initiative nValue StreamMappingInterim StateVision / reImpact AnalysisValue Stream /Business ProcessMappingCurrent / TargetState BusinessArchitectureMappingInitiativeTradeoff lysisInformationAsset MappingTarget nitiativeAnalysisCurrent StateBusinessArchitectureVisualizationLeadership Advantage Proprietary 2013.Figure 1.4: The Business Architecture Value Stream

36Business Analysis Tools

37BABOK: Enterprise Analysis

stWhyWhyWhyWhyWhy

39Enabling StrategyStrategy Action towards PurposePurposeWhat might we be?What could we become?Current StateCapabilitiesPerformanceFuture StateCapabilitiesLeverage and GrowLeadership Advantage Proprietary 2013.PerformanceImprove