Map Your Business Architecture to Define

Your Strategy
Plan your organization’s capabilities for best
impact and value.

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Table of 4 Analyst Perspective

Contents
5 Executive Summary

8 Info-Tech’s Methodology for Digital

Business Strategy

33 Phase 1: Business Context

49 ​Phase 2: Build Value Streams

70 Phase 3: Build Business

Capability Map

93 Bibliography

Info-Tech Research Group | 2

Info-Tech Research Group

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Analyst
perspective
Business architecture provides a holistic and unified view of:
• All the organization’s activities that provide value to their clients (value streams).
• The resources that make them possible and effective (capabilities, i.e. its employees,
Know your organization’s capabilities to software, processes, information).
build a digital and customer-driven • How they inter-relate, i.e. depend on and impact each other to help deliver value.
culture. Without a business architecture it is difficult to see the connections between the
business’s activities for the customer and the IT resources supporting them – to
demonstrate that what we do in IT is customer-driven.
As a map of your business, the business architecture is an essential input to the digital
strategy:
• Develop a plan to transform the business by investing in the most important
capabilities.
• Ensure project initiatives are aligned with business goals as they evolve.
• Respond more quickly to customer requirements and to disruptions in the industry
by streamlining operations and information sharing across the enterprise.
Crystal Singh Andrea Malick
Research Director, Data and Analytics Research Director, Data and Analytics
Info-Tech Research Group Info-Tech Research Group

Info-Tech Research Group | 4

 Executive summary
Your Challenge Common Obstacles Info-Tech’s Approach
Organizations need to innovate rapidly to respond You don’t have a complete reference map of Begin important business decisions with a map of your
to ever-changing forces and demands in their your organization’s capabilities on which to organization – a business reference architecture. Model
industry. But they often fail to deliver meaningful base strategic decisions. the business in the form of architectural blueprints.
outcomes from their IT initiatives within a Engage your stakeholders. Recognize the opportunity for
You don’t know how to prioritize and identify
reasonable time. mapping work, and identify and engage the right
the capabilities that are essential for achieving
Successful companies are transforming, i.e. the organization’s customer-driven objectives. stakeholders.
adopting fluid strategies that direct their resources Drive business architecture forward to promote real
You don’t have a shared enterprise vision, value to the organization. Assess your current projects to
to customer-driven initiatives and execute more
where everyone understands how the determine if you are investing in the right capabilities.
quickly on those initiatives. In a responsive and
organization delivers value and to whom. Conduct business capability assessments to identify
digital organization, strategies, capabilities,
information, people, and technology are all opportunities and prioritize projects.
aligned, so work and investment are consistently
allocated to deliver maximum value.

Info-Tech Insight
Business architecture is the set of strategic planning techniques that connects organization strategy to execution in a manner that is accurate and
traceable and promotes the efficient use of organizational resources.

Info-Tech Research Group | 5

Blueprint activities summary
Phas Purpose Activity Outcome
e
1. Business context: Identify forces within and outside the Business value canvas, business
Identify organization goals, industry drivers, and organization to consider when planning the strategy on a page, customer journey
regulatory requirements in consultation with focus and timing of digital growth, through
business stakeholders. conducting interviews and surveys and
reviewing existing strategies.
2. Customer activities (value stream): Define or update value streams, e.g. purchase Value streams enterprise-wide
What is the customer doing? What is our reason product from supplier, customer order, and (there may be more than one set of
for being as a company? What products and deliver product to customer. value streams, e.g. a medical school
services are we trying to deliver? and community clinic)
Prioritize value streams: Assess value streams. Priority value streams
Select key value streams for deeper analysis and
focus.
Value stages: Define stages for selected value streams. Selected value stream stages
Break down the selected value stream into its
stages.
3. Business capability map, level 1 enterprise: Define or update the business capabilities that Business capability map, enterprise-
What resources and capabilities at a high level do align with and support the value streams. wide capabilities level 1
we have to support the value streams?
Business capability map, level 2 for selected Define or update business capabilities for Business capability map, selected value
area: selected value stream to level 2. stream, capability level 2
List resources and capabilities that we have at a
more detailed level.
Heatmap Business Capability Map: Info-Tech Research Group | 6
Flag focus areas in supporting technology,
 Info-Tech’s workshop methodology
Day 1: Discover Business Day 2: Define Value Day 3: Build Business Day 4: Roadmap
Context Streams Capability Map Business Architecture

1.1 Collect corporate goals and 2.1 Build or update value streams 3.1 Update business capabilities 3.3 Use business architecture to
strategies 2.2 Decompose selected value to level 1 for enterprise heatmap focus areas:
1.2 Identify stakeholders stream into value stages and 3.2 For selected value streams, technology, information, and
analyze for opportunities break down level 1 to level 2 processes
Phase Steps
3.4 Build roadmap of future
business architecture
initiatives

• Organizational context and • Value stream map and • Enterprise business • Heatmap business
goals definitions capabilities map to level 1 architecture
• Business strategy on a • Selected value stream(s) • Business architecture to • Business architecture
Phase
page, customer journey decomposed into value level 2 for prioritized value roadmap, select additional
Outcomes
map, business model stages stream initiatives
canvas
• Roles and responsibilities

Info-Tech Research Group | 7

Key concepts for this blueprint 

INDUSTRY DIGITAL BUSINESS

VALUE CHAIN TRANSFORMATION ARCHITECTURE
A high-level analysis of how The adoption of digital technologies
A holistic, multidimensional
the industry creates value for to innovate and re-invent existing
business view of capabilities, end-
the consumer as an overall end- business, talent ,and operating
models to drive growth, business to-end value, and operating model
to-end process. 
value, and improved customer in relation to the business strategy.
experience.

INDUSTRY STRATEGIC CAPABILITY

VALUE STREAM OBJECTIVES ASSESSMENTS
A set of activities, tasks, and A set of standard objectives that A heat-mapping effort to analyze the
processes undertaken by a most industry players will feature in maturity and priority of each
business or a business unit their corporate plans. capability relative to the strategic
across the entire end-to-end priorities that they serve.
business function to realize
value.

Info-Tech Research Group | 8

Info-Tech’s approach

1
Understand the business context and drivers
Deepen your understanding of the organization’s priorities by gathering business strategies
and goals. Talking to key stakeholders will allow you to get a holistic view of the business
strategy and forces shaping the strategy, e.g. economy, workforce, and compliance.

2
Define value streams; understand the value you
provide
Work with senior leadership to understand your customers’ experience with
you and the ways your industry provides value to them.
Assess the value streams for areas to explore and focus on.

3
Customize the industry business architecture;
develop business capability map
Work with business architects and enterprise architects to
customize Info-Tech’s business architecture for your industry
as an enterprise-wide map of the organization and its
capabilities.
Extend the business capability map to more detail (Level 2)
for the value stream stages you select to focus on.
Info-Tech Research Group | 9
Business architecture is a planning function that
connects strategy to execution
Business architecture provides a framework that connects business strategy and IT strategy to project execution through a
set of models that provide clarity and actionable insights. How well do you know your business?

Business architecture is: As an organization moves from strategy toward execution, it

• Inter-disciplinary: Business architecture is a is often unclear as to exactly how decisions pertaining to
core planning activity that supports all execution are being made, why priority is given to certain
important decisions in the organization, for areas, and how the planning function operates.
example, organizational resources planning. The business architect’s primary role is to model this
It’s not just about IT. process and document it.
• Foundational: The best way to answer the In doing so, the business architect creates a unified view as to Business
question, “Where do we start?” or “Where is how strategy connects to execution so it is clearly understood Strategy

our investment best directed?”, comes from by all levels of the organization.
knowing your organization, what its core Business architecture must be branded as a
functions and capabilities are (i.e. what’s front-end planning function to be Business
important to us as an organization), and Architecture
appropriately embedded in the organization’s
where there is work to do. planning process.
• Connecting: Digital transformation and
Brand business architecture as an early
modernization cannot work with siloes. Project
planning pre-requisite on the basis of IT Strategy
Execution
Connecting siloes means first knowing the
maintaining clarity of communication and
organization and its functions and recognizing
spreading an accurate awareness of how
where the siloes are not communicating.
strategic decisions are being made.
Info-Tech Research Group | 10
Business architecture is part of the enterprise
architecture framework
Business Architecture

Business strategy map Business model canvas Value streams

Business capability map Business process flows Service portfolio

Data Architecture Application Architecture Infrastructure Architecture

Application portfolio Technology standards
Conceptual data model
catalog catalog

Logical data model Application capability map Technology landscape

Application communication Environments location

Physical data model
model model
Platform decomposition
Data flow diagram Interface catalog
diagram
Application use-case Network computing /
Data lifecycle diagram
diagram hardware diagram

Security Architecture

Enterprise security model Data security model Application security model

Info-Tech Research Group | 11
Business architecture is a set of shared and practical
views of the enterprise
The key characteristic of the business architecture is that it represents real-world aspects of a business, along with how they interact.

Many different views of an organization are typically developed. Each view is a diagram that illustrates a way of
understanding the enterprise by highlighting specific information about it:

• Business strategy view captures the tactical and strategic goals that drive an organization forward.

• Business capabilities view describes the primary business functions of an enterprise and the pieces of the organization
that perform those functions.

• Value stream view defines the end-to-end set of activities that deliver value to external and internal stakeholders.

• Business knowledge view establishes the shared semantics (e.g. customer, order, and supplier) within an organization
and relationships between those semantics (e.g. customer name, order date, supplier name) – an information map.

• Organizational view captures the relationships among roles, capabilities, and business units, the decomposition of those
business units into subunits, and the internal or external management of those units.

Info-Tech Research Group | 12

Business architect connects all the pieces
The business owns the strategy and operating model; the business architect
connects all the pieces together.

R Business Architect (Responsible)

A Business Unit Leads (Accountable)

Subject Matter Experts (Consulted)

C – Business Lines, Operations, Data, Technology Systems &

Infrastructure Leads

I
Business Operators (Informed)
– Process, Data, Technology Systems & Infrastructure

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Choose a key business challenge to address with
business architecture
Highly Visible
Business Architecture
Projects Addressable
by business
architecture

Have high
Business
business
support
impact

Picking the right project is critical to setting the tone for business architecture work in the organization.

Info-Tech Research Group | 14

Best practices for business architecture success

Balance short-
term cost
Consider these best practices to maintain a high savings with
long-term
level of engagement from key stakeholders benefits
throughout the process of establishing or applying
business architecture. Participate
in project
governanc
e to
facilitate
compliance

Create a center of
excellence to foster
dialogue

Info-Tech Research Group | 15

THE PROBLEM THE SOLUTION: IDENTIFY STRATEGIC BUSINESS OBJECTIVES

Understand your strategic priorities Customize your business

Align strategic efforts to capabilities Intelligence for strategy
architecture

Lack of alignment between UNDERSTAND PRIORITIES AND CREATE CLARITY, ACTIONABLE STRATEGIC INTELLIGENCE INSIGHTS DRIVE EVIDENCE-
strategic priorities and PERSPECTIVE THROUGH INTERVIEWS INSIGHTS, AND VALUE DRIVES ALIGNMENT BASED DECISIONS FOR
business capabilities STRATEGY

Inability to speak the

CEO CRO
language of the business

CFO CTO/
Lack of understanding of COO

strategic objectives
CTO/
CIO
CPO

Misalignment between Business

business objectives and IT Strategy

Prioritize a value stream for Heatmap capability maturity and Build Your Digital Vision
Innovation in the face of Understand the business’
transformation and build a prioritize capabilities required to and Strategy
competing priorities strategic plans and currently
business architecture up to achieve business goals.
planned digital initiatives.
level 2. Outline digital vision and
define digital objectives and
Input Output business initiatives

Business Strategy on a Page Prioritized value stream with Heat-mapped business

Digital Maturity Build Your Digital
level 2 business architecture architecture
Assessment Vision & Strategy

Info-Tech Research Group | 16

Value streams:
Understand how you deliver value today
It is important to understand the different value- Local Government

Value Stream
generating activities that deliver an outcome for Sustain Land,
Property, Facilitate Civic Protect Local Grow the
Provide
and from your customers. and the Engagement Health and Safety Economy
Regional
Infrastructure
Environment

We do this by looking at value streams, which

Manufacturing
refer to the specific set of activities an industry

Value Stream
player undertakes to create and capture value for Design Product
Produce
Sell Product
and from the end consumer (and so the question Product

to ask is, how do you make money as an

organization?). 
An organization can have more than one set of streams.
Our approach helps you to strengthen and For example, an enterprise can provide both retail shopping and financial
transform those value streams that generate the services, such as credit cards.
most value for your organization.

Info-Tech Research Group | 17

 Define the organization’s value
streams
• Value streams connect business goals to the organization’s value
realization activities. They enable an organization to create and
capture value in the market place by engaging in a set of
interconnected activities. Those activities are dependent on the
specific industry segment an organization operates within. Value
streams can extend beyond the organization into the supporting
ecosystem, whereas business processes are contained within and
the organization has complete control over them.
• There are two types of value streams: core value streams and
support value streams. Core value streams are mostly externally
facing: they deliver value to either an external or internal customer
and they tie to the customer perspective of the strategy map.
Support value streams are internally facing and provide the
foundational support for an organization to operate.
• An effective method for ensuring all value streams have been
considered is to understand that there can be different end-value
receivers. Info-Tech recommends identifying and organizing the
value streams with customers and partners as end-value receivers.
Info-Tech Research Group | 18
 Example: Value stream descriptions for the
retail industry
Value Streams

Create or Purchase the Distribute Sell Product, Make Product

Manage Inventory
Product Product Available to Customers

• Product is developed before • Inventory products are • Optimizing distribution activities • Once produced, retailers need
company sells it. tracked as they arrive in the is an important capability for to sell the products. This is
• Make these products by warehouse, counted, stored, retailers. The right inventory done through many channels
and prepared for delivery. needs to be at a particular store including physical stores,
obtaining raw materials from
• Estimate the value of your in the right quantities exactly online, the mail, or catalogs.
external suppliers or using their
when it is needed. This helps to • After the sale, retailers typically
own resources. inventory using retail
maximize sales and minimize
• Retailers purchase the products inventory management have to deliver the product,
how much cash is held up in
software. provide customer care, and
they are going to sell to inventory.
manage complaints.
customers from manufacturers
• Proper supply chain
or wholesale distributors. • Retailers can use loyalty
management can not only
• Retailer success depends on its programs, pricing, and
reduce costs for retailers but
promotions to foster repeat
ability to source products that drive revenues by enhancing
business.
customers want and are willing shopping experiences.
to buy.

Info-Tech Research Group | 19

Value streams describe your core business
Value streams

Value stages for value stream: Sell Product

Negotiate
Identify Evaluate Make
Price and Place Order Get Invoice
Options Options Payment
Delivery Date

Value streams – the activities we do to provide value to customers – require business capabilities.

Value streams are broken down further into value stages, for example, the Sell Product value stream has value
stages Evaluate Options, Place Order, and Make Payment.

Think of value streams as the core operations: the reason for your organization’s being. A professional
consulting organization may have a legal team but it does not brand itself as a law firm. A core value stream is
providing research products and services; a business capability that supports it is legal counsel.

Info-Tech Research Group | 20

Decompose the value stream into stages
The stages of a value stream are usually action-oriented statements or verbs that make up the individual steps
involved throughout the scope of the value stream, e.g. Place Order or Make Payment.
Each value stream should have a trigger or starting point and an end result for a client or receiver.

Value Stream

Value Stage

Value Stage Value Stage Release Release Release Release

Trigger Product / Service Receiver

Value streams usually fall into one of these categories:

There should be measurable value or benefits at each stage. 1. Fulfillment of products and services
These are key performance indicators (KPIs). 2. Manufacturing
3. Software products
Spot problem areas in the stream. 4. Supporting value streams (procurement of supplies, product
planning) Info-Tech Research Group | 21
 Value streams need capabilities

• Value streams connect business goals to the organization’s value

realization activities. They enable an organization to create and capture
value in the market place by engaging in a set of interconnected
activities.
• There are two types of value streams: core value streams and support
value streams. Core value streams are mostly externally facing: they
deliver value to either an external or internal customer and they tie to
the customer perspective of the strategy map. Support value streams
are internally facing and provide the foundational support for an
organization to operate.
• There can be different end-value receivers. Info-Tech recommends
identifying and organizing the value streams with customers and
partners as end-value receivers.

Info-Tech Research Group | 22

 Value streams need business capabilities
Value streams

Value stages for value stream: Sell Product

Negotiate
Identify Evaluate Make
Price and Place Order Get Invoice
Options Options Payment
Delivery Date

Capabilities
Business capabilities are built up to allow the business to These are the capabilities
perform the activities that bring value to customers. Map that allow us to support
capabilities to the value-add activities in the value stream. the consumer as they
“Make Payment.”
Business capabilities lie at the top layer of the business
architecture:
• They are the most stable reference for planning
organizations.
• They make strategy more tangible.
• If properly defined, they can help overcome organizational
silos. Info-Tech Research Group | 23
Example business Example business capability map for: Higher Education
capability map –
Higher Education

A business capability map can be thought of

as a visual representation of your
organization’s business capabilities and
represents a view of what your data program
must support.

Validate your business capability map with the

right stakeholders, including your executive
team, business unit leaders, and/or other key
stakeholders.

Info-Tech Research Group | 24

Example business Example business capability map for: Local Government
capability map – Local
Government
A business capability map can be thought of
as a visual representation of your
organization’s business capabilities and
represents a view of what your data program
must support.

Validate your business capability map with the

right stakeholders, including your executive
team, business unit leaders, and/or other key
stakeholders.

Info-Tech Research Group | 25

 Value streams need business capabilities
Value streams
Value stages for value stream: Sell Product
Negotiate
Identify Evaluate Make
Price and Place Order Get Invoice
Options Options Payment
Delivery Date

Value streams – the activities we do to provide value to customers – require

business capabilities. Value streams are broken down further into value Capabilities
stages. These are the business
capabilities that allow us
Business capabilities are built up to allow the business to perform the to support the consumer
activities that bring value to customers. Map capabilities to the activities in as they “Make Payment.”
the value stage to spot opportunities and problems in delivering services and
value.

Business processes fulfill capabilities. They are a step-by-step description

of who is performing what to achieve a goal. Capabilities consist of
networksCapability
of processes
= and the resources – people, technology, materials – to
execute them.
Processes + Software, Infrastructure + Info-Tech Research Group | 26

People
Prioritize a value stream and identify its supporting
capabilities
Prioritize your improvement objectives and business goals and
identify a value stream to transform. Value Stream Value Stream Value Stream
• Priority
• Priority
• Priority • Priority
• Priority
Align the business objectives of your organization to your value • Priority
streams (the critical actions that take place within your organization Medium Business
Low Business Value High Business Value
to add value to a customer). Value

Prioritize a value stream to transform based on the number of

priorities aligned to a value stream, and/or the business value (e.g.
revenue, EBITDA earnings, competitive differentiation, or cost Prioritized Value Stream
efficiency).

Decompose the selected value stream into value stages. Value Stage Value Stage Value Stage

Align capabilities level 1 and 2 to value stages. One capability may Level 1 Level 1 Level 1 Level 1 Level 1 Level 1
support several value stages in the stream. Capability Capability Capability Capability Capability Capability
Level 2 Level 2 Level 2 Level 2 Level 2 Level 2
Capabilit Capabilit Capabilit Capabilit Capabilit Capabilit
Build a business architecture for the prioritized value stream with a y y y y y y
Level 2 Level 2 Level 2 Level 2 Level 2 Level 2
map of business capabilities up to level 2. Capabilit Capabilit Capabilit Capabilit Capabilit Capabilit
y y y y y y

NOTE: We can’t map all capabilities all at once: business architecture

is an ongoing practice; select key mapping initiatives each year based
on business goals. Info-Tech Research Group | 27
Map business capabilities to Level 2
Example Strategy Map

Revenue
Goals Growth
Example Capability Map

Value Marketing Strategy Level 1

Sell Product
Streams Market Competitive Planning New Product business
Assessment Intelligence Introduction
capability
Sales Level 2
Sales Marketing
Capabilities Enablement
Transaction
Mgmt.
Strategy business
Customer Customer Customer New Product capabilities
Segmentation Need Analysis Experience Development
Mgmt. & Packaging

Example Value Stream

Sell Product
Negotiate
Identify Evaluate
Price and Place Order Get Invoice Make Payment
Options Options
Delivery Date

Info-Tech Research Group | 28

 Map capabilities to value stage
Obtain
Selected value stream Personal Loan

Consider
Evaluate & Commit to a Receive loan Refine &
Value stages obtaining a
personal loan
compare personal loan capital review

Client Client
Sponsorship
Identification / Identification /
Management
Authentication Authentication

Capabilities Product
Client Client Note the same
placement
Interaction
Management
Interaction
Management
capability, Client
Interaction
Financial
Social Media
Transaction Client Survey
Management, supports
Advertising
Management
Disbursement Management more than one value
Management
stage.
Keyword Financial
Search Transaction &
Management Client Pairing

TV /
Newspaper
Advertising
Management

Info-Tech Research Group | 29

Source: Lambert, “Practical Guide to Agile Strategy Execution”
Business value realization

Business value defines the success criteria of an organization as

manifested through organizational goals and outcomes, and it is
interpreted from four perspectives: Business Value Matrix
• Profit generation: The revenue generated from a business Outward
capability with a product that is enabled with modern technologies.
• Cost reduction: The cost reduction when performing business Customer
Profit
capabilities with a product that is enabled with modern and market
generation
reach
technologies.
Improved Financial
• Service enablement: The productivity and efficiency gains of capabilities benefit
internal business operations from products and capabilities
enhanced with modern technologies. Service Cost
• Customer and market reach: The improved reach and insights of enablement reduction
the business in existing or new markets.
Inward

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Value, goals, and outcomes cannot be achieved without
business capabilities
Break down your business goals into strategic and achievable initiatives focused on specific value streams and business capabilities.

Info-Tech Research Group | 31

Accelerate the process with an industry
business architecture
It’s never a good idea to start with a blank page.
The business capability map available from Info-
Tech and with industry standard models can be used
as an accelerator. Assemble the relevant stakeholders
– business unit leads and product/service owners –
and modify the business capability map to suit your
organization’s context.

Acceleration path: Customize generic capability

maps with the assistance of our industry analysts.

Info-Tech Research Group | 32

Identify goals and drivers Use inputs from business goals and
strategies to understand priorities.

It is not necessary to have a

Consider organizational goals and industry forces when planning. comprehensive business strategy
document to start – with key
stakeholders, the business architect
should be able to gather a one-page
business value canvas or customer
journey.

Business context Define value Build business

streams capability map
1.1 Select key stakeholders 2.1 Update or define value
3.1 Build level 1 capability map
1.2 Collect and understand streams
3.2 Build level 2 capability map
corporate goals 2.2 Decompose and analyze
3.3 Heatmap capability map
selected value stream
3.4 Roadmap

Info-Tech Research Group | 33

Determine how the organization creates value

Begin the process by identifying and locating the

business mission and vision statements.
What is business context?
“The business context encompasses
an understanding of the factors
impacting the business from various
perspectives, including how
decisions are made and what the
business is ultimately trying to
Corporate Websites Business Strategy Documents achieve. The business context is
used by IT to identify key
implications for the execution of its
strategic initiatives.”
Business Mission Business Vision
Source: Businesswire, 2018

Business Executives
Info-Tech Research Group | 34
Identify the key stakeholders who can help you
promote the value of business architecture
Sample Power Map

First, as the CIO, you must engage executive stakeholders and

secure their support.
Focus on key players who have high power and high interest in
business architecture.
Engage the stakeholders who are impacted the most and have the
power to impede the success of business architecture.

For example, if the CFO – who has the power to block funding – is
disengaged, business architecture will be put at risk.

Use Info-Tech’s Stakeholder Power Map Template to help prioritize

time spent with stakeholders.

Info-Tech Research Group | 35

Identify the key stakeholders concerned with the
business architecture project
A business architecture project may involve the following stakeholders:
You must identify who the stakeholders are for your
business architecture work.
Think about:
• Who are the decision makers and key influencers?
• Who will impact the business architecture work? Who
will the work impact?
• Who has vested interest in the success or failure of
the practice?
• Who has the skills and competencies necessary to
help us be successful?
Avoid these common mistakes:
• Don’t focus on the organizational structure and
hierarchy. Often stakeholder groups don’t fit the
traditional structure.
• Don’t ignore subject-matter experts on either the
business or IT side. You will need to consider both.

Info-Tech Research Group | 36

 Input Output

1.1 Identify and assemble key • List of who is accountable • A list of the key

stakeholders for key business areas and

decisions
stakeholders

1-3 hours • Organizational chart

• List of who has decision-
Build an accurate depiction of the business.
making authority
1. It is important to make sure the right stakeholders participate in this exercise. The
exercise of identifying capabilities for an organization is very introspective and
requires deep analysis.

2. Consider:
a) Who are the decision makers and key influencers? Materials Participants
b) Who will impact the business capability work? Who has a vested interest
in the success or failure of the outcome?
c) Who has the skills and competencies necessary to help you be successful? • Whiteboard/Flip Charts • CIO
• Modeling software (e.g. • Enterprise/Business
3. Avoid:
Visio, Archimate) Architect
a) Don’t focus on the organizational structure and hierarchy. Often
• Business capability map • Business Analysts
stakeholder groups don’t fit the traditional structure.
industry models
• Business Unit Leads
b) Don’t ignore subject matter experts on either the business or IT side. You
will need to consider both. • Departmental Executives &
Senior Managers

Info-Tech Research Group | 37

Conduct interviews with the business to gather intelligence
for strategy
Talking to key stakeholders will allow you to get a holistic view of the business strategy.

CEO CRO
Business Goals

CTO/
CFO Key Initiatives
COO
Input for Digital
Top Priorities Strategy
CIO CTO/
CPO
Measures of Success

Digital Aspirations

Senior Executive
Interviews Context Insights

Info-Tech Research Group | 38

Build a strategy on a page through executive interviews and
document reviews
Understanding the business mandate and priorities ensures alignment across the enterprise.

A business strategy must articulate the long-term destination the business is

moving into. This illustration shapes all the strategies and activities in every Business strategy on a page

other part of the business, including what IT capabilities and resources are
required to support business goals. Ultimately, the benefits of a well-
defined business strategy increase as the organization scales and as business
units or functions are better equipped to align the strategic planning process
in a manner that reflects the complexity of the organization.

Using the Business Strategy on a Page canvas, consider the questions in

each bucket to elicit the overall strategic context of the organization and Info-Tech Insight
uncover the right information to build your digital strategy. Interview key A well-articulated and clear business strategy helps different functional
and business units work together and ensures that individual decisions
executives including your CEO, CIO, CMO, COO, CFO, and CRO, and support the overall direction of the business.
review documents from your board or overall organizational strategy to
uncover insights.
Info-Tech Research Group | 39
Focus on business value and establish a common
goal
Business architecture is a strategic planning function and the focus must be on delivering business value.

Examples business objectives:

 Digitally transform the business, redefining

its customer interactions.
 Identify the root cause for escalating
customer complaints and eroding
satisfaction.
 Identify reuse opportunities to increase
operational efficiency.
 Identify capabilities to efficiently leverage
suppliers to handle demand fluctuations.

Info-Tech Insight
CIOs are ideally positioned to be the sponsors of business architecture given that their
current top priorities are digital transformation, innovation catalyzation, and business
alignment. Info-Tech Research Group | 40
 Input Output

1.2 Collect and understand business • Existing business goals and • List of business goals
objectives strategies

• Existing IT strategies
• Strategy on a page
• Business model canvas
1-3 hours • Interview findings
• Customer journey
Having a clear understanding of the business is crucial to executing on the strategic • Diagnostic results
IT initiatives.

1. Discover the strategic CIO initiatives your organization will pursue:

• Schedule interviews.
• Use the CIO Business Vision diagnostic or
Business Context Discovery Tool.
Materials Participants
2. Document the business goals.

3. Update and finalize business goals.

• CIO Business Vision • CIO
diagnostic
• Enterprise/Business
• Interview questionnaire Architect

• Business Analysts
• Business Unit Leads

• Departmental Executives &

Senior Managers
CIO Business Vision Diagnostic
Info-Tech Research Group | 41
 CEO
Business Strategy on a Page
Vision Value Streams Key Products & Services Key Customer Segments
Where do you want to go?
What is the problem your organization
is addressing? Why are you in business? What do What are your top three to five Who are you trying to serve or
you do? What products and services products and services?
target?
Mission/Mandate do you provide? Where has your
business seen persistent demand? What are the customer segments that
decide your value proposition?
What do you do?
How do you do?
Whom do you do it for?

Value Proposition Digital Experience Aspirations Business Resilience Aspirations Sustainability (or ESG)
Aspirations
What is the value you deliver to your
customers?
How can you create a more effective How can you reduce business risks? How can you deliver ESG and
value stream? For example, compliance, sustainability goals?
Future Value Proposition For example, greater value to operational, security, or reputational.
What is your value proposition in customers or better supplier
three to five years’ time? relationships.

Info-Tech Research Group | 42

 Interview the following
executives for each
business goal area.
Business Strategy on a Page
Core Business Goals Top Priorities & Initiatives Performance Insights/Metrics

CEO What are the core business goals to meet business What are the top initiatives and priorities over the What do we need to achieve?
CRO objectives? planning horizon? How can the success be measured?
COO

Shared Business Goals Top Priorities & Initiatives Performance Insights/Metrics

CMO What do we need to achieve?

COO What are the shared (operational) business goals What are the top initiatives and priorities over the
to meet business objectives? planning horizon? How can the success be measured?
CFO

Enabling Business Goals Top Priorities & Initiatives Performance Insights/Metrics

CFO What do we need to achieve?

What are the enabling (supporting/enterprise) What are the top initiatives and priorities over the
CIO
business goals to meet business objectives? planning horizon? How can the success be measured?
COO
CHRO

Info-Tech Research Group | 43

 Craft a strategy to increase stakeholder support
and participation
Example Communication Strategy
The BA practice’s supporters are potential Stakeholder Concerns Tactics to Address Concerns Communication Vehicles Frequency
champions who will help you market the
value of BA; engage with them first to • Build ability to execute
BA techniques
• Communicate the secured executive
support
• Personalized meetings
and interviews
Bi-Monthly

create positive momentum. Map out the • Build executive • Help them apply BA techniques in • Department/functional

(High Priority)
Supporters
support their projects meetings
concerns of each group of stakeholders so • Build understanding of • Show examples of BA work (case • Communities of practice or
how they can studies) centers of excellent
you can develop marketing tactics and contribute to the (education and case
success of the BA studies)
communications vehicles to address them. practice

• Build awareness • Show quick wins and case studies • Centers of excellence Quarterly
and/or confidence (education and case
Indifferent
(Medium
• Feel like BA has studies
Priority)
nothing to do with them • Use the support of the
champions

• BA will cause delays • Prove the value of BA – case studies • Individual meetings and Tailored to
(Medium Priority)

• BA will step in their and metrics interviews individual

territory • Educate how BA complements their • Political jockeying groups
Resistors

• BA’s scope is too work • Use the support of the

broad • Educate them on the changes champions
• Lack of understanding resulting from the BA practice’s work,
and involve them in crafting the
process

Info-Tech Research Group | 44

 Input Output

1.3 Craft a strategy to increase

stakeholder support and participation • Stakeholder Engagement
Map
• Stakeholder
Communications Strategy

1-2 hours
Now that you have organized and categorized your stakeholders based on their
power, influence, interest, and knowledge of business architecture, it is time to
brainstorm how you are going to gain their support and participation.
Think about the following:
• What are your stakeholders’ concerns?
• How can you address them? Materials Participants
• How will you deliver the message?
• How often will you deliver the message? • Stakeholder Engagement • CIO
Avoid these common mistakes: Strategy Template
• A computer • Business Architect
• Your communication strategy development should be an iterative process. Do not • A whiteboard and markers
• IT Department Leads
assume to know the absolute best way to get through to every resistor right away.
Instead, engage with your supporters for their input on how to communicate to
resistors and repeat the process for indifferent stakeholders as well.

Download the Stakeholder Engagement Strategy Template for this

project. Info-Tech Research Group | 45
Engaging the right stakeholders
CASE STUDY Industry
Source
Financial – Banking
Anonymous

Situation Complication Result

The bank’s culture was Starting with enlisting

To achieve success with the
resistant to change and executive support in the
business architecture
each business unit had its form of a business sponsor,
initiative, the bank’s CIO
own understanding of the the CIO identified the rest
needed to put together a
business strategy. This was of the key stakeholders, in
plan to engage the right
a big part of the problem this case, the business unit
stakeholders in the process.
that led to decreasing heads, who were necessary
customer satisfaction. to engage for the initiative.
Without the right
stakeholders, the initiative
The CIO needed a unified Once identified, the CIO
would suffer from
vision for the business promoted the benefits of
inadequate information and
architecture practice business architecture to
thus would run the risk of
involving people, process, each of the business unit
delivering an ineffective
and technology that all heads while taking stock of
solution.
stakeholders could support. their individual needs.
Info-Tech Research Group | 46
 Input Output

1.4 Develop a plan to engage key

stakeholders • Stakeholder Engagement
Map
• Stakeholder
Communications Strategy

1 hour
Using your stakeholder power map as a starting point, focus on the three most
important quadrants: those that contain stakeholders you must keep informed, those
to keep satisfied, and the key players.
Plot the stakeholders from those quadrants on a stakeholder engagement map.
Think about the following:
• Who are your resistors? These individuals will actively detract from project’s
success if you don’t address their concerns. Materials Participants
• Who is indifferent? These individuals need to be educated more on the benefits of
business architecture to have an opinion either way.
• Who are your supporters? These individuals will support you and spread your • Stakeholder Engagement • CIO
Strategy Template
message if you equip them to do so. • A computer • Business Architect
Avoid these common mistakes: • A whiteboard and markers
• IT Department Leads
• Do not jump to addressing resistor concerns first. Instead, equip your supporters
with the info they need to help your cause and gain positive momentum before
approaching resistors.

Download the Stakeholder Engagement Strategy Template for this

project. Info-Tech Research Group | 47
 Input Output

1.5 Craft a strategy to increase

stakeholder support and participation • Stakeholder Engagement
Map
• Stakeholder
Communications Strategy

1-2 hours
Now that you have organized and categorized your stakeholders based on their
power, influence, interest, and knowledge of business architecture, it is time to
brainstorm how you are going to gain their support and participation.
Think about the following:
• What are your stakeholders’ concerns?
• How can you address them? Materials Participants
• How will you deliver the message?
• How often will you deliver the message? • Stakeholder Engagement • CIO
Avoid these common mistakes: Strategy Template
• A computer • Business Architect
• Your communication strategy development should be an iterative process. Do not • A whiteboard and markers
assume to know the absolute best way to get through to every resistor right away. • IT Department Leads
Instead, engage with your supporters for their input on how to communicate to
resistors and repeat the process for indifferent stakeholders as well.

Download the Stakeholder Engagement Strategy Template for this

project. Info-Tech Research Group | 48
 This phase will walk you through the

Define value streams following activities:

• Note: It is recommended that you gather

and leverage relevant industry standard
Identify the core activities your organization does to provide value to your business architecture models you may
have available to you. Example: Info-
customers. Tech Industry Business Architecture,
BIZBOK, APQC.

• Defining or updating the organization’s

value streams.

• Selecting priority value streams for

Business context Define value Build business deeper analysis.

streams capability map This phase involves the following

participants:
1.1 Select key stakeholders 2.1 Update or define value
3.1 Build Level 1 capability map
1.2 Collect and understand streams • Business Architect, Enterprise Architect
3.2 Build Level 2 capability map
corporate goals 2.2 Decompose and analyze
3.3 Heatmap capability map • Relevant Business Stakeholder(s):
selected value stream
3.4 Roadmap Business Unit Leads, Departmental
Executives, Senior Mangers, Business
Analysts

Info-Tech Research Group | 49

 Define the organization’s value
streams
• Value streams connect business goals to the organization’s value
realization activities. They enable an organization to create and
capture value in the marketplace by engaging in a set of
interconnected activities. Those activities are dependent on the
specific industry segment an organization operates within. Value
streams can extend beyond the organization into the supporting
ecosystem, whereas business processes are contained within and
the organization has complete control over them.
• There are two types of value streams: core value streams and
support value streams. Core value streams are mostly externally
facing: they deliver value to either an external or internal customer
and they tie to the customer perspective of the strategy map.
Support value streams are internally facing and provide the
foundational support for an organization to operate.
• An effective method for ensuring all value streams have been
considered is to understand that there can be different end-value
receivers. Info-Tech recommends identifying and organizing the
value streams with customers and partners as end-value receivers.
Info-Tech Research Group | 50
Connect business goals to
value streams
Example Strategy Map

Revenue
Goals Growth

Value Sell Product

Streams

Sales
Sales Marketing
Capabilities Enablement
Transaction
Mgmt.
Strategy

Example Value Stream

Sell Product
Negotiate
Identify Evaluate
Price and Place Order Get Invoice Make Payment
Options Options
Delivery Date

Info-Tech Research Group | 51

Identifying value streams

Value streams connect business goals to organization’s value realization activities. They
enable an organization to create and capture value in the market place by engaging in a set
of interconnected activities.

There are several key questions to ask when

endeavouring to identify value streams. Key Questions
 Who are your customers?
 What are the benefits we deliver to them?
 How do we deliver those benefits?
 How does the customer receive the
benefits?

Info-Tech Research Group | 52

 Example: Value stream descriptions for the
retail industry
Value Streams

Distribute Sell
Create or Purchase Product Manage Inventory
Product Product

• Retailers need to purchase the • The right inventory needs to be • Optimizing distribution activities • Once produced, retailers need
products they are going to sell at a particular store in the right is important for retailers. to sell the products. This is
to customers from quantities exactly when it is • Proper supply chain done through many channels
manufacturers or wholesale needed. This helps to including physical stores,
management can not only
distributors. maximize sales and minimize online, the mail, or catalogs.
reduce costs for retailers but
• A retailer’s success depends how much cash is held up in also drive revenues by • After the sale, retailers
on its ability to source products inventory. enhancing shopping typically have to deliver the
that customers want and are • Inventory management experiences. product, provide customer
willing to buy. includes tracking, ordering, and • Distribution includes care, and manage complaints.
• In addition, they need to stocking products, e.g. raw • Retailers can use loyalty
transportation, packaging and
materials, finished products,
purchase the right amount and delivery. programs, pricing, and
assortment of products based buffer inventory. promotions to foster repeat
• As business becomes global, it
on anticipated demand. business.
is important to ensure the whole
distribution channel is effective.

Info-Tech Research Group | 53

Value streams describe your core business
Value streams

Value stages for Value stream Sell Product

Negotiate
Identify Evaluate Make
Price and Place Order Get Invoice
Options Options Payment
Delivery Date

Value streams – the activities we do to provide value to customers – require business capabilities.

Value streams are broken down further into value stages, for example, Sell Product value stream has value
stages Evaluate Options, Place Order, and Make Payment.

Think of value streams as the core operations, the reason for our organization’s being. A professional
consulting organization may have a legal team but it does not brand itself as a law firm. A core value stream is
providing research products and services – a business capability that supports it is legal counsel.

Info-Tech Research Group | 54

 Input Output

2.1 Define value streams • Business strategy or goals • List of organizational

specific value streams
• Financial statements
• Detailed value stream
1-3 hours • Info-Tech’s industry- definition(s)
specific business
Unify the organization’s perspective on how it creates value. architecture
1. Write a short description of the value stream that includes a statement about the
value provided and a clear start and end for the value stream. Validate the accuracy
of the descriptions with your key stakeholders.

2. Consider:
a) How does the organization deliver those benefits? Materials Participants
b) How does the customer receive the benefits?
c) What is the scope of your value stream? What will trigger the stream to
start and what will the final value be? • Whiteboard / Kanban Board • Enterprise/Business
Architect
• Reference Architecture Tem
3. Avoid: Don’t start with a blank page. Use Info-Tech’s business architecture models plate • Business Analysts
for sample value streams. – See your Account
Representative for details • Business Unit Leads

• Other industry standard • CIO

reference architecture • Departmental Executives &
models: BIZBOK, APQC, Senior Managers
See your Info-Tech Account Representative for access to the Reference etc.
Architecture Template Info-Tech Research Group | 55
• Info-Tech Archi Models
Decompose the value stream into stages
The stages of a value stream are usually action-oriented statements or verbs that make up the individual steps
involved throughout the scope of the value stream, e.g. Place Order or Make Payment.
Each value stream should have a trigger or starting point and an end result for a client or receiver.

Value Stream

Value Stage

Value Stage Value Stage Release Release Release Release

Trigger Product / Service Receiver

Value streams usually fall into one of these categories:

There should be measurable value or benefits at each stage. 1. Fulfillment of products and services
These are key performance indicators (KPIs). 2. Manufacturing
3. Software products
Spot problem areas in the stream. 4. Supporting value streams (procurement of supplies, product
planning) Info-Tech Research Group | 56
Value stream and value stages examples
Customer Acquisitions
Identify Contact
Verify Interests
Prospects Prospects
Sell Product is a value stream,
made up of value stages Identify options, Evaluate options, and so on.
Sell Product
Negotiate
Identify Evaluate
Price and Place Order Get Invoice Make Payment
Options Options
Delivery Date

Product Delivery
Receive Invoice
Confirm Order Plan Load Fill Order Ship Order Deliver Order
Warehouse Customer

Product Financing
Initiate Loan Decide on Submit Review & Finalize Conduct Conduct
Application Application Documents Satisfy T&C Documents Funding Funding Audits

Product Release

Ideate Design Build Release

Info-Tech Research Group | 57

 Input Output

2.2 Decompose selected value • Value stream maps and • Selected value streams

streams definitions

• Business goals, business

decomposed into value
stages

1-3 hours model canvas, customer • Analysis of selected value

journey (value proposition) streams for opportunities
Once we have a good understanding of our value streams, we need to decide which ones to
• Value stream map
focus on for deeper analysis and modeling, e.g. extend the business architecture to more
detailed level 2 capabilities.

Value Stream Value Organization has goals and

creates delivers products or services.
(our value add Proposition for
activities) Customer
1. Identify which value
is made are part propositions are most Materials Participants
up of of important, e.g. be more
productive or manage
Value Stages Products money more simply. • Whiteboard / Kanban Board • Enterprise/Business
Architect
2. Identify the value stream(s) • Reference Architecture Tem
plate • Business Analysts
enable that create the value – See your Account
proposition. Representative for details • Business Unit Leads

Business 3. Break the selected value • Other industry standard • CIO

Capabilities reference architecture
stream into value stages. • Departmental Executives &
models: BIZBOK, APQC, Senior Managers
Source: Lambert, “Practical Guide to Agile Strategy Execution” 4. Analyze value stages for etc.
opportunities. Info-Tech Research Group | 58
Build your value stream one layer at a time to ensure
clarity and comprehensiveness

1 The first step of creating a value stream is defining it.

Scope
Title • In this step, you create the parameters around the value
Objectives stream and document them in a list format.
Definition • This allows you to know where each value stream starts
and ends and the unique value it provides.

The second step is the value stream mapping.

2 • The majority of the mapping is done here where you break
Customer Perspe
ctive down your value stream into each of its component stages.
Value Stages Expected Outcom
e
• Analysis of these stages allows for a deeper
Entry and Exit Cr
iteria understanding of the value stream.
Metrics
Value Stream Map • The mapping layer connects the value stream to
organizational capabilities.

Info-Tech Research Group | 59

Define the value streams that are tied
to your strategic goals and document them in a list
Title Scope
• Create a title for your value stream that indicates the value it • Determine the scope of your value stream by defining the
achieves. trigger to start the value stream and final value delivered to
• Ensure your title is clear and will be understood the same way end the value stream.
across the organization. • Be precise with your trigger to ensure you do not mistakenly
• The common naming convention for value streams is to use include actions that would not trigger your value stream.
nouns, e.g. product purchase. • A useful tip is creating a decision tree and outlining the path
that results in your trigger.

Example Value Streams List

Objectives Title Scope Objectives
• Determine the objectives of the value stream by highlighting Sell Product From option Revenue Growth
the outcome it delivers. identification to
• Identify the desired outcomes of the value stream from the payment
perspective of your organization.
… … …
… … …
Info-Tech Research Group | 60
Create a value stream map

A Decompose the Value Stream Into Stages B Add the Customer Perspective

• Determine the different stages that comprise the value stream. • Outline the likely sentiment and meaningful needs of the
• Place the stages in the correct order. customer at each value stage.

C Add the Expected Outcome D Define the Entry and Exit Criteria

• Define the desired outcome of each stage from the perspective • Define both the entry and exit criteria for each stage.
of the organization. • Note that the entry criteria of the first stage is what triggers the
value stream.

E Outline the Metrics F Assess the Stages

• For each stage of the value stream, outline the metrics the • Assess how well each stage of the value stream is performing
organization can use to identify its ability to attain the desired against its target metrics and use this as the basis to drill down
outcome. into how/where improvements can be made.

Info-Tech Research Group | 61

Decompose the value stream into its value stages
The first step in creating a value stream map is breaking it up into its component stages.

The stages of a value stream are usually action-oriented statements or verbs that make up the individual
steps involved throughout the scope of the value stream.

Sell Product

Negotiate
Price and
Delivery
Date

Identify Evaluate
Release Release
Options Options

The Benefit
Segmenting your value stream into individual stages will give you a better understanding of the steps involved in creating value.

Info-Tech Research Group | 62

Connect the stages of the value stream to a specific
customer perspective
Example: Sell Product Value Stream

Negotiate
Identify Evaluate Price and
Place Get Make
Options Options Order Invoice Payment
Delivery

Customer perspective provides insights into how the customer views

the value stage.
Customer
Perspective • “I want to evaluate the options based on my personal criteria and
choose a product.”

The Benefit
Adding the customer’s perspective will inform you of their priorities at each stage of the value stream.

Info-Tech Research Group | 63

Connect the stages of the value stream to a desired
outcome
Example: Sell Product Value Stream

Negotiate
Identify Evaluate Price and
Place Get Make
Options Options Order Invoice Payment
Delivery

Expected outcome defines what the organization aims to accomplish.

Expected
Outcome
• “To have our product selected for purchase.”

The Benefit
Understanding the organization’s desired outcome at each stage of the value stream will help set objectives and establish metrics.

Info-Tech Research Group | 64

Define the entry and exit criteria of each
stage
Example: Sell Product Value Stream

Negotiate
Identify Evaluate Price and
Place Get Make
Options Options Order Invoice Payment
Delivery

Entry and exit criteria forces each value stage to output incremental
Entry Criteria value. This avoids creating overly lengthy and complicated value
streams.

• Entry: “List of options is created.”

Exit Criteria • Exit: “One option chosen.”

The Benefit
Establishing the entry and exit criteria for each stage will help you understand how the customer experience flows from one end of the
stream to the other.

Info-Tech Research Group | 65

Outline the key metric(s) for each stage
Example: Sell Product Value Stream

Negotiate
Identify Evaluate Price and
Place Get Make
Options Options Order Invoice Payment
Delivery

Metrics represent the organization’s tangible goals; when compared

with actual results, the practitioners would be able to gain valuable
Metrics insights.

• “Number of product demonstrations.”

The Benefit
Setting metrics for each stage will facilitate the tracking of success and inform the business architecture practitioner of where
investments should be made.

Info-Tech Research Group | 66

Example value stream map:
Sell Product
Conduct Evaluate the Want to get Have the most Want an Want to be able
market options based most bang for seamless accurate record to pay using

Perspective
Customer
research to on personal my buck order-placing of the method which
create a pool of criteria and process transaction best suits me
options choose a
product

Negotiate
Stream
Value

Identify Evaluate Price and Place Get Make

Options Options Delivery Order Invoice Payment
Date

Be the Have product Maximize value Have order Create fault- Receive
customer’s selected for of deal placed less invoice payment
Expected primary option purchase successfully quickly
Organizational Perspective

Outcome

Entry Options begin List of options One option Deal complete Order is placed Invoice is
to be is created chosen issued
Criteria considered

Exit List of options One option Deal complete Order is placed Invoice issued Exit when
is created chosen payment made
Criteria

• Website • # of product • Deal size • Time to • % of • Customer

traffic demos • # of deals complete invoices satisfaction
• Google order without with choice
Metrics searches error of payment
• Product options
mentions Info-Tech Research Group | 67
Assess the stages of your value stream map to
determine which capabilities to examine further
To determine which specific business capabilities you should seek to assess and potentially
refine, you must review performance toward target metrics at each stage of the value stream.
Stages that are not performing to their targets should be examined further by assessing the
capabilities that enable them.

Current Meets
Value Stage Metric Description Metric Target
Measure Objective?
Evaluate Number of Product Demonstrations 12,000/month 9,000/month No
Options
Identify Options Google Searches 100K/month 100K/month Yes
Identify Options Product Mentions 1M/month 1M/month Yes
… Website Traffic (Hits) … … …
Average Deal Size
Number of Deals
Time to Complete an Order
Percentage of Invoices Without Error
Average Time to Acquire Payment in Full

Info-Tech Research Group | 68

Determine the business capabilities that support the
value stage corresponding with the failing metric
Sell Product

Negotiate
Identify Evaluate Price and Place Get Make
Options Options Delivery Order Invoice Payment
Date

The value stage(s) that doesn’t meet its

Info-Tech Insight objective metrics should be examined further.
In the absence of tangible • This is done through business capability
mapping and assessment.
metrics, you will have to
• Starting at the highest level (level 0) view of
make a qualitative judgement
a business, the business architecture
about which stage(s) of the practitioner must drill down into the lower
value stream warrant further level capabilities that support the specific
examination for problems and value stage to diagnose/improve an issue.
opportunities.

Info-Tech Research Group | 69

Build business capability map This step will walk you through the
following activities:
• Determine which business capabilities
Align supporting capabilities to priority activities. support value streams
• Accelerate the process with an
industry reference architecture
• Validate the business capability map
• Establish level 2 capability

This step involves the following

participants:
• Enterprise/Business Architect
• Business Analysts

Business context Define value Build business

• Business Unit Leads
• CIO
streams capability map • Departmental Executives & Senior
Managers
1.1 Select key stakeholders 2.1 Update or define value 3.1 Build Level 1 capability map
1.2 Collect and understand streams 3.2 Build Level 2 capability map
corporate goals 2.2 Decompose and analyze 3.3 Heatmap capability map
selected value stream 3.4 Roadmap Outcomes of this step
• A validated level 1 business capability
map

• Level 2 capabilities for selected value

stream(s)

• Heatmapped business capability map

• Business architecture initiatives

roadmap
Info-Tech Research Group | 70
 Develop a business capability map – level 1
• Business architecture consists of a set of techniques to create multiple
views of an organization; the primary view is known as a business The Business Capability Map is the primary visual
capability map. representation of the organization’s key abilities or
• A business capability defines what a business does to enable value services that are delivered to stakeholders. This model
creation and achieve outcomes, rather than how. Business capabilities forms the basis of strategic planning discussions.
are business terms defined using descriptive nouns such as “Marketing”
or “Research and Development.” They represent stable business
functions, are unique and independent of each other, and typically will
have a defined business outcome. Business capabilities should not be
defined as organizational units and are typically longer lasting than
organizational structures.
• A business capability mapping process should begin at the highest-
level view of an organization, the level 1, which presents the entire
business on a page.
• An effective method of organizing business capabilities is to split them
into logical groupings or categories. At the highest level, capabilities
are either “core” (customer-facing functions) or “enabling” (supporting
functions).
• As a best practice, Info-Tech recommends dividing business capabilities Info-Tech Research Group | 71

into the categories illustrated to the right.

Example business Example business capability map for: Higher Education
capability map –
Higher Education

A business capability map can be thought of

as a visual representation of your
organization’s business capabilities and
represents a view of what your data program
must support.

Validate your business capability map with the

right stakeholders, including your executive
team, business unit leaders, and/or other key
stakeholders.

Info-Tech Research Group | 72

Example business Example business capability map for: Local Government
capability map – Local
Government
A business capability map can be thought of
as a visual representation of your
organization’s business capabilities and
represents a view of what your data program
must support.

Validate your business capability map with the

right stakeholders, including your executive
team, business unit leaders, and/or other key
stakeholders.

Info-Tech Research Group | 73

 Map capabilities to value stage
Obtain
Selected value stream Personal Loan

Consider
Evaluate & Commit to a Receive loan Refine &
Value stages obtaining a
personal loan
compare personal loan capital review

Client Client
Sponsorship
Identification/ Identification/
Management
Authentication Authentication

Capabilities Product
Client Client Note the same
Placement
Interaction
Management
Interaction
Management
capability, Client
Interaction
Financial
Social Media
Transaction Client Survey
Management, supports
Advertising
Management
Disbursement Management more than one value
Management
stage.
Keyword Financial
Search Transaction &
Management Client Pairing

TV /
Newspaper
Advertising
Management

Info-Tech Research Group | 74

Source: Lambert, “Practical Guide to Agile Strategy Execution”
 Input Output

3.1 Build level 1 business • Existing business capability • Level 1 business capability

capability map maps

• Value stream map

map for enterprise

1-3 hours
• Info-Tech’s industry-
1. Analyze the value streams to identify and describe the organization’s capabilities that specific business
support them. This stage requires a good understanding of the business and will be a architecture
critical foundation for the business capability map.
Use the reference business architecture’s business capability map for your industry for
examples of level 1 and 2 business capabilities and the capability map template to work
in.

2. Avoid: Materials Participants

a) Don’t repeat capabilities. Capabilities are typically mutually exclusive activities.
b) Don’t include temporary initiatives. Capabilities should be stable over time. The
people, processes, and technologies that support capabilities will change • Whiteboard • Enterprise/Business
Architect
continuously. • Reference Architecture Tem
plate • Business Analysts
Ensure you engage with the right stakeholders: – See your Account
Representative for details • Business Unit Leads
Don’t waste your efforts building an inaccurate depiction of the business: The exercise of
identifying capabilities for an organization is very introspective and requires deep analysis. • Other industry standard • CIO
It is challenging to develop a common language that everyone will understand and be able reference architecture • Departmental Executives &
to apply. Invest in the time to ensure the right stakeholders are brought into the fold and models: BIZBOK, APQC, Senior Managers
bring their business area expertise and understanding to the table. etc.
Info-Tech Research Group | 75
• Archi Models
Prioritize one value stream and build a business
architecture to level 2 capabilities
Prioritize your innovation objectives and business goals, and
identify a value stream to transform. Value Stream Value Stream Value Stream

Align the innovation goals and business objectives of your • Priority

• Priority
• Priority • Priority
• Priority
organization to your value streams (the critical actions that • Priority

take place within your organization to add value to a Low Business Value High Business Value Medium Business Value
customer).
Prioritize a value stream to transform based on the number of
priorities aligned to a value stream and/or the business value
Prioritized Value Stream
(e.g. revenue, EBITDA earnings, competitive differentiation,
or cost efficiency).
Working alongside a business or enterprise architect, build a Value Stage Value Stage Value Stage

reference architecture for the prioritized value stream up to

Level 1 Level 1 Level 1 Level 1 Level 1
level 2.
Level 2 Level 2 Level 2 Level 2 Level 2 Level 2
Capability Capability Capability Capability Capability Capability
Info-Tech Insight
Level 2 Level 2 Level 2 Level 2 Level 2 Level 2
To produce maximum impact, focus on value streams that provide two-thirds of Capability Capability Capability
Capability Capability Capability
your enterprise value (EBITDA earnings).
Level 2 Level 2 Level 2 Level 2 Level 2 Level 2
Capability Capability Capability Capability Capability Capability

Info-Tech Research Group | 76

From level 1 to level 2 business capabilities
Example Strategy Map

Revenue
Goals Growth
Example Capability Map

Value Marketing Strategy Level 1

Sell Product
Streams Market Competitive Planning New Product business
Assessment Intelligence Introduction
capability
Sales Level 2
Sales Marketing
Capabilities Enablement
Transaction
Strategy business
Mgmt.
Customer Customer Customer New Product capabilities
Segmentation Need Analysis Experience Development
Mgmt. & Packaging

Example Value Stream

Sell Product
Negotiate Price
Evaluate
Identify Options and Delivery Place Order Get Invoice Make Payment
Options
Date

Info-Tech Research Group | 77

 Input Output

3.2 Build level 2 business • Existing business capability • Level 2 Business Capability

capability map maps

• Value stream map

Map for selected Value
Stream

1-3 hours
• Info-Tech’s industry-
It is only at level 2 and further that we can pinpoint the business capabilities – the specific business
exact resources, whether applications or data or processes – that we need to focus on architecture
to realize improvements in the organization’s performance and customer experience.
• Level 1 business capability
1. Gather industry reference models and any existing business capability maps. map
2. For the selected value stream, further break down its level 1 business capabilities
into level 2 capabilities.
Materials Participants
3. You can often represent the business capabilities on a single page, providing a
holistic visual for decision makers.

4. Use meaningful names for business capabilities so that planners, stakeholders, • Whiteboard • Enterprise/Business
and subject matter experts can easily search the map. Architect
• Reference Architecture Tem
plate • Business Analysts
– See your Account
Representative for details. • Business Unit Leads

• Other industry standard • CIO

reference architecture • Departmental Executives &
models: BIZBOK, APQC, Senior Managers
Download: See your Account Representative for access to Info-Tech’s etc.
Reference Architecture Template Info-Tech Research Group | 78

• Archi Models
 Input Output

3.3 Heatmap business • Business capability map • Key business capabilities

capability map • Cost advantage creators • Business process review

• Information assessment
1-3 hours • Competitive advantage
creators • Application assessment
Determine the organization’s key capabilities.
• List of IT implications
• IT and business assessments
1. Determine cost advantage creators. If your organization has a cost advantage over
competitors, the capabilities that enable it should be identified and prioritized.
Highlight these capabilities and prioritize the programs that support them.

2. Determine competitive advantage creators. If your organization does not have a cost
advantage over competitors, determine if it can deliver differentiated end-customer
experiences. Once you have identified the competitive advantages, understand which
Materials Participants
capabilities enable them. These capabilities are critical to the success of the
organization and should be highly supported.
• Whiteboard • Enterprise/Business
3. Define key future state capabilities. In addition to the current and competitive Architect
• Reference Architecture Tem
advantage creators, the organization may have the intention to enhance new plate • Business Analysts
capabilities. Discuss and select the capabilities that will help drive the attainment of – See your Account
• Business Unit Leads
future goals. Representative for details.
• Other industry standard • CIO
4. Assess how well information, applications, and processes support capabilities.
reference architecture • Departmental Executives &
models: BIZBOK, APQC, Senior Managers
Download: See your Account Representative for access to Info-Tech’s etc.
Reference Architecture Template Info-Tech Research Group | 79
• Archi Models
Business capability map: Education
Student Instruction &
Recruitment Admission Graduation Advancement
Enrollment Research

Undergrad Undergrad Undergraduate Enrollment Financial Aid Teaching & Research Graduation Alumni Fundraising
Domestic International Studies Learning Relations
Application Program Scholarships, Ceremony
Domestic Agents & Awards, Curriculum Research Alumni Prospect
Partners Intake Matriculation Management Marketing
Student Bursaries Design Fundamentals Identification &
Recruitment Management
Application Allocation & Eligibility
Capabilities

Campus Tours Government Research Event

Processing Placement Accreditation Assessment
Defining

Prospective Aid Preparation Management Gift Processing

Student Admission & Records
Unit Degree Award
Engagement Recruiters Evaluation Student Curriculum Conducting Management
Enrollment Alumni
Accounts Delivery Research
Communication
Graduate Transfer & Engagement Stewardship &
Studies Regional Reps Articulation Publishing & Transcripts
Assessment Donor Relations
Review
Online
Marketing Final Audit Curriculum
Management

Graduate
Studies

Student Administration Student Support Services Academic

Administration
Student Front-Line International & Residential Academic Academic Skills Academic Year
Athletics
Capabilities

Student Conduct Services Advising Development

Progression Service Exchange Studies Scheduling
Shared

Payment & Engagement & Career Community & Student Health &
Candidate Student Record Academic Policy
Invoice Retention Development Workplace Wellbeing
Management Maintenance Administration
Processing Partnership
Enabling

Facilities & Government, Brand &

Finance Library Institutional Governance, Risk,
Property Human Resources Public, and IT Legal Services Marketing
Management Administration Research and Compliance
Management Stakeholders Management

Info-Tech Research Group | 80

 Define key capabilities
Student Instruction &
Recruitment Admission Graduation Advancement
Enrollment Research

Undergrad Undergrad Undergraduate Enrollment Financial Aid Teaching & Research Graduation Alumni Fundraising
Domestic International Studies
Application Scholarships,
Learning
Ceremony
Relations Legend:
Domestic Agents & Program Alumni Prospect
Awards, Curriculum Research
Student Partners Intake Matriculation
Bursaries Design Fundamentals
Management Marketing Identification & COST
Recruitment Application Allocation & Eligibility
Management ADVANTAGE
Capabilities

Government Research Event

Campus Tours Processing Placement Accreditation Assessment CREATORS
Defining

Prospective Aid Preparation Management Gift Processing

Student Admission & Records
Unit
Engagement Recruiters Evaluation Enrollment Student Curriculum Conducting Degree Award
Alumni Management COMPETITIVE
Accounts Delivery Research ADVANTAGE
Communication
Graduate Transfer & Engagement CREATORS
Regional Reps Articulation Publishing & Stewardship &
Studies Assessment Transcripts Donor Relations
Review
Online
Marketing Final Audit Curriculum
Management

Graduate
Studies

Student Administration Student Support Services Academic

Administration
Student Front-Line International & Residential Academic Academic Skills Academic Year
Athletics
Capabilities

Student Conduct Services Advising Development

Progression Service Exchange Studies Scheduling
Shared

Payment & Engagement & Career Community & Student Health &
Candidate Student Record Academic Policy
Invoice Retention Development Workplace Wellbeing
Management Maintenance Administration
Processing Partnership
Enabling

Facilities & Government, Brand &

Finance Library Institutional Governance, Risk,
Property Human Resources Public, and IT Legal Services Marketing
Management Administration Research and Compliance
Management Stakeholders Management

Info-Tech Research Group | 81

Note: Illustrative Example
 Business process review
Student Instruction &
Recruitment Admission Graduation Advancement
Enrollment Research

Undergrad Undergrad Undergraduate

Studies
Enrollment Financial Aid Teaching & Research Graduation Alumni
Relations
Fundraising Legend
Domestic International Learning
Application Program Scholarships, Ceremony
Domestic Agents & Awards, Curriculum Research Alumni Prospect
Student Partners Intake Matriculation
Bursaries Design Fundamentals
Management Marketing Identification & NONE: No documented
Recruitment Management process exists.
Application Allocation & Eligibility
Event
Capabilities

Campus Tours Processing Placement Government Research Assessment

Accreditation Management
Defining

Prospective Aid Preparation Gift Processing

Student
Engagement
Admission
Unit Enrollment Degree Award
& Records LOW: Processes have been
Recruiters Evaluation Student Curriculum Conducting Management
Accounts Delivery Research Alumni documented, but have not
Communication &
Graduate Studies Transfer Engagement been effectively
Regional Reps Publishing & Stewardship &
Articulation Assessment
Review
Transcripts Donor Relations communicated and may be in
Online conflict.
Marketing Final Audit Curriculum
Management
MEDIUM: LOW +
Graduate Studies processes are explicitly
defined and have been
formally communicated.
There is minimal overlap
Student Administration Student Support Services Academic
Administration between processes.
Student International & Residential Academic Skills Academic Year
Front-Line Service Athletics Academic Advising
Student Conduct
HIGH: MEDIUM +
Capabilities

Progression Exchange Studies Services Development Scheduling

Shared

processes are enforced and

Candidate Student Record Payment & Invoice Engagement & Career Community & Student Health &
Management Maintenance Processing Retention Development Workplace Wellbeing
Academic Policy regularly monitored for
Partnership Administration
deviations. Employees
typically adhere to the
process.
Enabling

Facilities & Government,

Finance Library Institutional Governance, Risk, Brand & Marketing
Property Human Resources Public, and IT Legal Services
Management Administration Research and Compliance Management
Management Stakeholders

Info-Tech Research Group | 82

Note: Illustrative Example
Information assessment
Student Instruction &
Recruitment Admission Graduation Advancement
Enrollment Research

Undergrad Undergrad Undergraduate

Studies
Enrollment Financial Aid Teaching & Research Graduation Alumni
Relations
Fundraising Legend
Domestic International Learning
Application Program Scholarships, Ceremony
Domestic Agents & Awards, Curriculum Research Alumni Prospect
Student Partners Intake Matriculation
Bursaries Design Fundamentals
Management Marketing Identification & NONE: Data is unavailable,
Recruitment Management unreliable, duplicated, or not
Application Allocation & Eligibility
Event
Capabilities

Campus Tours Government Research

Processing Placement Accreditation Assessment
Management of sufficient detail.
Defining

Prospective Aid Preparation Gift Processing

Student & Records
Admission
Engagement Recruiters Unit Enrollment Student Curriculum Conducting Degree Award Management
Evaluation
Accounts Delivery Research Alumni
Communication &
LOW: Data is available but
Graduate Studies Transfer Engagement
Stewardship &
not subject to adequate
Regional Reps Articulation Publishing & Transcripts
Assessment
Review Donor Relations integrity or quality controls.
Online Data ownership is undefined.
Marketing Final Audit Curriculum
Management
MEDIUM: LOW + Data is
Graduate Studies available but not fully
automated. Data ownership is
mostly defined.
Student Administration Student Support Services Academic
Administration HIGH: MEDIUM + Data is
Student Conduct
Student
Front-Line Service Athletics International & Residential
Academic Advising
Academic Skills Academic Year available, of high quality,
Capabilities

Progression Exchange Studies Services Development Scheduling fully automated with clear
Shared

Community &
ownership.
Candidate Student Record Payment & Invoice Engagement & Career Student Health & Academic Policy
Management Maintenance Processing Retention Development Workplace Wellbeing
Partnership Administration
Enabling

Facilities & Government, Brand &

Finance Library Institutional Governance, Risk,
Property Human Resources Public, and IT Legal Services Marketing
Management Administration Research and Compliance
Management Stakeholders Management

Info-Tech Research Group | 83

Note: Illustrative Example
Application assessment
Student Instruction &
Recruitment Admission
Enrollment Research
Graduation Advancement Legend
NONE: Capability is
Undergrad Undergrad Undergraduate Enrollment Financial Aid Teaching & Research Graduation Alumni Fundraising typically unsupported by
Domestic International Studies Learning Relations
Scholarships,
applications. The likelihood
Application Program Ceremony
Domestic Agents &
Partners Intake Matriculation Awards, Curriculum Research Management
Alumni Prospect of legacy applications
Student Bursaries Design Fundamentals Marketing Identification &
Recruitment Management supporting these capabilities
Application Allocation & Eligibility
Event is high.
Capabilities

Campus Tours Processing Placement Government Research Assessment

Accreditation Management
Defining

Prospective Aid Preparation Gift Processing

Student & Records
Admission
Engagement Recruiters Evaluation Unit Enrollment Student
Accounts
Curriculum Conducting Degree Award
Alumni
Management LOW: Capability is
Delivery Research
Communication & somewhat supported by
Graduate Studies Transfer Engagement
Regional Reps Articulation Assessment Publishing & Transcripts
Stewardship & applications. There is
Review Donor Relations
Online typically a mix of legacy and
Marketing Final Audit Curriculum purchased applications
Management
supporting these capabilities.

Graduate Studies
MEDIUM: Capability is
moderately supported by
applications. Organizations do
Student Administration Student Support Services Academic not have to build their own
Administration
applications; however, there
Student Residential Academic Skills
Student Conduct Front-Line Service Athletics International & Academic Advising Academic Year aren’t many solutions to
Capabilities

Progression Exchange Studies Services Development Scheduling

choose from.
Shared

Candidate Student Record Payment & Invoice Engagement & Career Community & Student Health & Academic Policy
Workplace
Management Maintenance Processing Retention Development
Partnership
Wellbeing Administration HIGH: Capability is well
supported by applications.
Organizations can choose
from a variety of solutions
that will meet or exceed their
Enabling

Facilities & Government,

Property
Finance Library
Human Resources Public, and IT Legal Services
Institutional Governance, Risk, Brand & Marketing needs.
Management Administration Research and Compliance Management
Management Stakeholders

Info-Tech Research Group | 84

Note: Illustrative Example
 MoSCoW analysis for business capabilities
WON’T ADDRESS SHOULD ADDRESS Value to Effort
Curriculum
Design Impact Ratio
• HE = High Effort
HE/LV HE/HV • LE = Low Effort
Regional Reps
Engagement & • HV = High Value
Retention
• LV = Low Value
EFFORT

COULD ADDRESS MUST ADDRESS

Agents & Government
Partners Aid

LE/LV LE/HV Prospect

Identification &
Management

International &
Exchange Studies

VALUE
Info-Tech Research Group | 85

Note: Illustrative Example

Ranked list of IT implications
MoSCoW
IT Implication Value Stream Impacted Comments/Actions
Rank
M [Implication] [Value Stream]

M [Implication] [Value Stream]

M [Implication] [Value Stream]

S [Implication] [Value Stream]

S [Implication] [Value Stream]

S [Implication] [Value Stream]

C [Implication] [Value Stream]

C [Implication] [Value Stream]

C [Implication] [Value Stream]

W [Implication] [Value Stream]

W [Implication] [Value Stream]

W [Implication] [Value Stream]

Info-Tech Research Group | 86
 Input Output

3.4 Roadmap business • Existing business capability • Heatmapped business

architecture initiatives maps

• Value stream map

capability map

1-3 hours
• Info-Tech’s industry-
Unify the organization’s perspective on how it creates value. specific business
1. Write a short description of the value stream that includes a statement about the architecture
value provided and a clear start and end for the value stream. Validate the accuracy • Level 1 business capability
of the descriptions with your key stakeholders. map
2. Consider:
a) How does the organization deliver those benefits?
Materials Participants
b) How does the customer receive the benefits?
c) What is the scope of your value stream? What will trigger the stream to
start and what will the final value be? • Whiteboard • Enterprise/Business
Architect
3. Don’t start with a blank page. Use Info-Tech’s business architecture models for • Reference Architecture Tem
plate • Business Analysts
sample value streams.
– See your Account
Representative for details. • Business Unit Leads

• Other industry standard • CIO

reference architecture • Departmental Executives &
models: BIZBOK, APQC, Senior Managers
Download: See your Account Representative for access to Info-Tech’s etc.
Reference Architecture Template Info-Tech Research Group | 87

• Archi Models
Example:
Business
architecture
deliverables

Info-Tech Research Group | 88

Tools and
templates to
The Industry Business Reference Architecture
compile and Template for your industry is a place for you to
collect all of the activity outputs and outcomes
you’ve completed for use in next-steps.
communicate your
business
architecture work Download the Industry Business Reference
Architecture Template for your industry

Info-Tech Research Group | 89

Info-Tech offers various levels of
support to best suit your needs

Guided Implementation
DIY Toolkit Workshop Consulting
“Our team has already made this “Our team knows that we need to “We need to hit the ground “Our team does not have the time
critical project a priority, and we fix a process, but we need running and get this project or the knowledge to take this
have the time and capability, but assistance to determine where to kicked off immediately. Our project on. We need assistance
some guidance along the way focus. Some check-ins along the team has the ability to take this through the entirety of this
would be helpful.”  way would help keep us on over once we get a framework project.”
track.” and strategy in place.”

Diagnostics and consistent frameworks are used throughout all four options.

Info-Tech Research Group | 90

Research Contributors and Experts
Name Role Organization

Ibrahim Abdel-Kader Research Analyst, Data & Analytics Info-Tech Research Group

Ben Abrishami-Shirazi Technical Counselor, Enterprise Architecture Info-Tech Research Group

Andrew Bailey Consulting, Manager Info-Tech Research Group

Dana Dahar Research & Advisory Director, CIO / Digital Business Info-Tech Research Group
Strategy
Larry Fretz VP Info-Tech Research Group

Shibly Hamidur Enterprise Architect Toronto Transit Commission (TTC)

Rahul Jaiswal Principal Research Director, Industry Info-Tech Research Group

John Kemp Executive Counselor, Executive Services Info-Tech Research Group

Gerald Khoury Senior Executive Advisor Info-Tech Research Group

Igor Ikonnikov Principal Advisory Director, Data & Analytics Info-Tech Research Group

Daniel Lambert VP Benchmark Consulting

Milena Litoiu Principal Research Director, Enterprise Architecture Info-Tech Research Group

Info-Tech Research Group | 91

Research Contributors and Experts
Name Role Organization

Andy Neill AVP Data & Analytics, Chief Enterprise Architect Info-Tech Research Group

Rajesh Parab Research Director, Data & Analytics Info-Tech Research Group

Rick Pittman VP, Research Info-Tech Research Group

Irina Sedenko Research Director, Data & Analytics Info-Tech Research Group

Info-Tech Research Group | 92

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