Biz arch visual strategic planning v6
- 1. Business Architecture Visual Strategic Planning 1
- 2. Contributing Author to the BIZBOK ™ Trained over 100,000 professionals 700 In excess of Organizations using our methods 1,400 Completed over requirements projects > 200 trained professionals focused 100% on excellence in business requirements 10% Annually invested of our revenue in developing our methods and harmonizing these with industry best practices Founding member of the IIBA Authors of The Business Analysis Benchmark 300 Worked with over of the Fortune 1000 companies
- 3. Business Architecture – Visual Strategic Planning Learning Objectives 1 Bring clarity to the purpose and benefits of Business Architecture to scope, plan and execute on strategy 2 Describe the applicability of Business Architecture in the context of the rapid Change Agenda 3 Explain a Business Architecture Framework against a variety of strategic initiatives to know how to use the models 4 Provide different viewpoints of a business architecture and demonstrate analysis techniques to expose risk & opportunity 5 Demonstrate architectural thinking in the decomposition of the strategic objective as a technique for defining business impact across capabilities, business functions and process to frame the context of analysis 3
- 4. Business Architecture – Visual Strategic Planning Business Architecture Visual Strategic Planning Webinar Coverage Business Change Business Architecture - Blueprints Blueprinting – Lifecycle Case Studies 4
- 5. Business Architecture – Visual Strategic Planning Analysis Result Business Strategy Business Change- How Big? Competing or Complimentary Strategies? Optimization Reengineering Transformation Redefining the business process to eliminate localized operational challenges Redesigning of the business process to meet market or competitive needs or increase efficiency/effectiveness of the current business operating model. Radical, large scale change in the business operating model and the product or service delivery Business As Usual Competitive Requirement Future State Continue forward with marginal deployment capabilities Cost reduction focus Market differentiation involving significant corporate will. Keep the Lights on Business case may support transformational strategy. Limited expected revenue increase Requires policy change, product rationalization, resource rightsizing Long term in nature. 5
- 6. Business Architecture – Visual Strategic Planning Business Process Design or Transformation? Reference Current State Optimized Same activities variations on process removed Reengineered Activity reduction and process is distributed allowing efficiency measurement Business Case For Change Transformed Standardization and reduction in activities, policy rationalization. Process is distributed and automated. 6
- 7. Business Architecture – Visual Strategic Planning Business Architecture Framework Customers Product Regulators Business Drivers, Goals & Strategic Objectives Vendors Application Inventory Initiative/Investment Inventory S t a t i c Organization Location Roles Rules Policy Business Information 7
- 8. Business Architecture – Visual Strategic Planning Dynamic Views Foundation Views Business Architecture Framework Business Drivers, Goals & Objectives Customers Vendors/Partners Business capabilities Measures Initiatives/Projects Channels Application Inventory Product Organization Competitors Location Regulators Rules/Policy/Requirements Business Information Roles 8
- 9. Business Architecture – Visual Strategic Planning Business Change- Strategy to Execution Planning Strategic Initiatives Engineer •Regulatory Agendas (ie: SOX, BASEL 111, Dodd Frank) •Customer Segmentation analytics •Business Agility •Business Process Reengineering •Vendor Strategy – core / non core •Channel Migration Strategies Transform •Business Transformation •Portfolio Management & Prioritization •Enterprise Architecture – Technology Migration •Organizational Design and Architecture •Off-Shoring – People, process and cost analysis •Operational Centralization & Location Strategy •Business Continuity Planning •Merger, Acquisition & Divestitures Optimize •Continuous Improvement – Cost of Quality •Competitive Analysis •Localized Process Improvement Initiatives BA Models and Views Business Drivers, Goals and Objectives Business Measures Competitors Regulators Customers Products Vendors Channels Projects Business Functions Location Business Capabilities Organization Business processes Roles Requirements/Rules/Policy Applications Business Information What do I need to know? Mapping initiatives to model types will expose complimentary, competing strategies, and dependency. Appendix A: Definitions 9
- 11. Business Architecture – Visual Strategic Planning Business Blueprinting A methodology which groups current activities into a manageable number of discreet, modular, and re-usable capabilities. Blueprinting is a visual model of business operations. 11
- 12. Business Architecture – Visual Strategic Planning Business Architecture Blueprint What is it? Must capture the "essence“* Must be suitable for determining business needs Must be product and technology independent Must reflect multiple views of the enterprise Must be comprehensive Must provide for efficient and effective change Must allow for extensibility Must use a standard language and notation to have common understanding *Essence: is the attribute or set of attributes that make an entity or substance what it fundamentally is, and which it has by necessity, and without which it loses its identity 12
- 13. Business Architecture – Visual Strategic Planning Business Blueprinting HOW? Capability-Based Enterprise Business Capability Group of cohesive business activities to serve a unique purpose Contains all resources to accomplish its purpose Business Capability Business Purpose Creates specific value to other parts of the organization Activities High degree of autonomy and is managed separately Resources Linked to the organization through business services and integrated information systems Applications Infrastructure Represents real functions performed by discrete business areas 13
- 14. Business Architecture – Visual Strategic Planning Blueprinting –A Business Architecture Capability Model Illustrative integrated business perspectives Methods, tools and techniques develop agile and Sales, Market & Relationships Strategy & Governance Market Management External Corporate Comms Strategy Business Strategy Management Client mkt research & analytics Brand Management Business resource & sales planning Global MIS Marketing Management Sales/Product Monitoring Alliance planning Operations strategy & policy Customer Management Strategy Customer Behaviour Models Segment Analysis & Planning Governance Executive & Stakeholder Management Business Architecture End to End Service Level Management Sales & Distribution Independent Electronic Asset Service Management Counter/ Branch Services Sales Force Management Prospecting & Sales Segmented Servicing Risk, Financial & Compliance Management Channel Management Product Catalogue Management Product / Servicing Sourcing Hedge Funds Management FX & MM Management Product Management Securities Funds Product Management Management Structured Cash Product Management Management After Sales Service Credit Management Trade Services Management Card Management Insurance Products Management Trust & Estate Strategic Asset Planning Allocation Financial Planning Trading Services Order Management & Grouping Execution Management Trade Reporting Confirmation & Matching Operations & Processing Cross-Product/Service Client Facing Processing Client Client Account Document Client Tax Accounting & Administration Management Reporting Reporting Credit Safe Keeping Fees & Billing Performance Approval Management Management Measurement Management Cash Services Service Management Discretionary Client Risk Portfolio Mgt Profiling Services Group / Pb Advisory Services Rewards Management Collections and Recovery Merchant Operations Correspondent Banking Collateral Handling Authorisations Cross-Product/Service Non-Client Facing Processing Involved 3 rd Corporate Party Actions Reconciliation Clearing Maintenance Management Nostro Cash Management Payments FX & MM Processing Credit Processing IT Architecture Family Office Services Settlement Custody Specific Product Processing Structured Securities Fund Products Processing Processing Processing Card Processing Trade Services Processing Securitisation (incl. Syndications) Operational Risk Control Management Settlement Risk Control Management Legal & Regulatory Risk Mgm’t Tactical Asset Allocation Trading Support Product & Processing & Service Client Support Trade Support Control Research & Analysis Allocations Risk Credit Risk Control Management Market Risk Control Management Products & Services Product & Services Support Customer Insight Client Relationship Management Client Relationship Contact Acquisition & Management Management Referrals Operational Monitoring Financial Financial Accntg & Reporting Decision Support Treasury Management Balance Sheet Management Market Data Management Compliance Internal Audit Hedge Fund Processing Life Insurance Processing Regulatory & Compliance Legal Awareness & Compliance Regulatory & Legal Doc. Management Centralised Service Centre Management Business Policies and Procedures GSC Monitoring Service Centre Mgmt Support Infrastructure Support & Logistics Legal Programme & Change Management Facilities Operation & Maintenance Procurement Internal Comms (excl. customer) HR & Payroll OPS Design & Implement Design apps & IT infrastructure Information Technology Operate & Build apps & IT maintain apps Security infrastructure & IT i/f Business continuity 14
- 15. Business Architecture – Visual Strategic Planning Business Blueprinting WHY? Capabilities represent business functions and processes, which utilize the same data, and focus on the tendency to collaborate or not collaborate across product lines, functions and geographies. Capabilities support an approach toward Mergers and Acquisitions, identifying ie: shared services, functional alignment, organizational design thereby improving efficiency and resilience. Common language and Capability definition present patterns of similar and unique capability which are a key element in visualizing opportunities to ensure money is spent on the most revenue generating or cost reduction strategies ie: centralization and streamlining Blueprinting helps to connect organizational processes with business strategy, and the appropriate technical solutions, providing fact-based decision support about the most effective methods for managing change Blueprint views can be used to map total investment spend to business strategies and objectives ensuring finite resources are optimized and not competing Mature Blueprinting will provide a holistic dashboard of all Enterprise activity Use business blueprinting to analyse and determine cost effective and efficient business opportunities as a value proposition 15
- 16. Business Architecture – Visual Strategic Planning Enterprise Blueprinting Overlaying views expose opportunities for value-based prioritization strategies. Business impact is holistically understood and will provide previous unknowns for consideration . Sales, Market & Relationships Strategy & Governance Market Management Strategy Business Business Strategy resource & Management sales planning Client mkt research & analytics Global MIS Sales/Product Monitoring Alliance planning Operations strategy & policy Customer Insight Customer Management Strategy Customer Behaviour Models Segment Analysis & Planning Governance Business Architecture Executive & Stakeholder Management End to End Service Level Management IT Architecture External Corporate Comms Marketing Management Brand Management Client Relationship Management Client Relationship Contact Acquisition & Management Management Referrals Counter/ Branch Services Sales Force Management Prospecting & Sales Sales & Distribution Independent Electronic Asset Service Management Segmented Servicing Risk, Financial & Compliance Management Channel Management After Sales Service Products & Services Product Catalogue Management Product / Servicing Sourcing Product & Services Support Hedge Funds Management FX & MM Management Product Management Securities Product Management Structured Cash Product Management Management Funds Management Credit Management Trade Services Management Group / Pb Advisory Services Card Management Insurance Products Management Financial Planning Allocations Research & Analysis Trading Services Order Management & Grouping Execution Management Trade Reporting Confirmation & Matching Operations & Processing Cross-Product/Service Client Facing Processing Client Client Account Document Client Tax Accounting & Administration Management Reporting Reporting Credit Safe Keeping Fees & Billing Performance Approval Management Management Measurement Management Cash Services Merchant Operations Correspondent Banking Collections and Recovery Collateral Handling Authorisations Payments Nostro Cash Management FX & MM Processing Securities Processing Card Processing Family Office Services Settlement Custody Specific Product Processing Structured Fund Products Processing Processing Securitisation (incl. Syndications) Operational Risk Control Management Settlement Risk Control Management Legal & Regulatory Risk Mgm’t Tactical Asset Allocation Trading Support Product & Processing & Service Client Support Trade Support Control Cross-Product/Service Non-Client Facing Processing Involved 3 rd Corporate Party Actions Reconciliation Clearing Maintenance Management Credit Processing Rewards Management Service Management Discretionary Portfolio Mgt Services Strategic Trust & Estate Asset Planning Allocation Client Risk Profiling Risk Credit Risk Control Management Market Risk Control Management Operational Monitoring Financial Financial Decision Accntg & Support Reporting Treasury Management Market Data Management Balance Sheet Management Compliance Internal Audit Hedge Fund Processing Trade Services Life Insurance Processing Processing Regulatory & Compliance Legal Awareness & Compliance Regulatory & Legal Doc. Management Centralised Service Centre Management Business Policies and Procedures GSC Monitoring Service Centre Mgmt Support Infrastructure Support & Logistics Legal Programme & Change Management Facilities Operation & Maintenance Procurement Internal Comms (excl. customer) HR & Payroll OPS Design & Implement Information Technology Design apps & Operate & Build apps & IT maintain apps IT Security infrastructure & IT i/f infrastructure Business continuity 16
- 17. Business Architecture – Visual Strategic Planning Business Architecture – Example Use The most active use of Blueprint enables IT partners to align technology with business strategy. Application Portfolio Management demands a means to identify current capability and future opportunities. ATM Branch Sales, Market & Relationships Telephone Market Management External Corporate Comms Strategy & Governance Marketing Management Brand Management Strategy Business Strategy Management Global MIS Client mkt research & analytics Sales/Product Monitoring Alliance Planning Mgmt Customer Management Strategy Segment Analysis & Planning Email Counter/ Branch Services Sales Force Management Pricing /Quotes Intermediary Sales & Distribution Independent Electronic Asset Service Management Product Management Product Catalogue Management Product / Servicing Sourcing Deposits Product & Services Support Customer Behaviour Models Hedge Funds Management Credit Management Servicing Credit Risk Control Management Lending Funds Product Management FX & MM Management Cash Management Order Management & Grouping Execution Management Gaps Service Management Card Product Management Governance Business Executive & Architecture & Stakeholder Operating Management Model End to End IT Architecture Service Level Management Trade Reporting Merchant Operations Document Management Underwriting Claims Credit Approval Management Safe Keeping Management Client Accounting & Reporting Performance Measurement Cash Services Rewards Admin Fees & Billing Management Client Tax Reporting Authorisations AML/Fraud Detection Collections and Recovery Collateral Handling GSC Monitoring Family Office Services Market Risk Control Management Settlement Risk Control Management Trust & Estate Planning Strategic Asset Allocation Tactical Asset Allocation Securitisation (incl. Syndications) Legal & Regulatory Risk Mgmt Overextension Valuation Correspondent Banking Customer & Transaction Services Processing & Product & Execution Service Control Support Research & Analysis Allocations Cross-Product/Service Non-Client Facing Processing Involved 3rd Corporate Reconciliation Clearing Party Actions Maintenance Management Payments Nostro Cash Management Settlement Specific Product Processing Structured Fund Processing Products Processing Securities Processing Duplication Card Processing Credit Processing Deficiency Operational Monitoring Reference Data FX & MM Processing Service Centre Mgmt Financial Client Support Financial Accntg & Reporting Decision Support Treasury Management Balance Sheet Management Market Data Management Custody Investigations Centralised Service Centre Management Business Policies and Procedures Discretionary Portfolio Mgt Services Execution Services Operations & Processing Opportunity to implement new Cross-Product/Service technology where none existsClient Facing Processing Client Account Admin Client Risk Profiling Financial Planning Insurance Products Management Confirmation & Matching Operational Risk Control Management Group / PB Advisory Services Trade Services Management Securities Product Management Structured Product Management Risk, Financial & Channel Compliance Management An IT solutions, designed to support one Management capability, is extended beyond its core Segmented functionality to support others Risk Sales Execution Products & Services Operations strategy & policy Customer Insight Online Client Relationship Management Client Relationship Contact Acquisition & Management Management Referrals Prospecting & Sales Business resource & sales planning Post PDA Hedge Fund Processing Compliance Internal Audit Regulatory & Compliance Legal Awareness & Compliance Regulatory & Legal Doc. Management Multiple business areas require the same capability. Opportunity for Trust Trade Services Insurance standardization and reduced cost Administration Processing Processing Support Infrastructure The business functions or processes lack key functionality or areProgramme & designed Support & Logistics poorly Facilities Legal Change Management Operation & Maintenance Procurement Internal Comms (excl. customer) HR & Payroll OPS Design & Implement Design apps & IT infrastructure Information Technology Operate & Build apps & IT maintain apps & infrastructure IT i/f 17 Security Business continuity
- 18. Business Architecture – Visual Strategic Planning Business Architecture – Example of Use Direct Illustrative Global Customer Data Mgmt – Heat Map In-Direct ATM Branch Telephone Post PDA Online Email Intermediary Sales, Market & Relationships Market Management External Corporate Comms Client Relationship Management Marketing Management Brand Management Strategy Business Strategy Business resource Management & sales planning Relationship Management Prospecting & Sales Strategy & Governance Client Acquisition & Referrals Sales & Distribution Pricing /Quotes Independent Asset Management Electronic Service Sales Force Management Contact Management Counter/ Branch Services Segmented Servicing Product Management Client mkt research & analytics Product Catalogue Management Hedge Funds Management Credit Management Sales/Product Monitoring Alliance Planning Mgmt Product / Servicing Sourcing Lending Funds Product Management Deposits FX & MM Management Cash Management Operations strategy & policy Product & Services Support Customer Insight Customer Behaviour Models Customer Management Strategy Segment Analysis & Planning Service Management Group / PB Advisory Services Client Risk Profiling Discretionary Portfolio Mgt Services Family Office Services Market Risk Control Management Settlement Risk Control Management Securities Product Management Structured Product Management Insurance Products Management Financial Planning Trust & Estate Planning Strategic Asset Allocation Tactical Asset Allocation Securitisation (incl. Syndications) Legal & Regulatory Risk Mgmt Research & Analysis Product & Service Control Governance Executive & Stakeholder Management IT Architecture Valuation Execution Services Order Management & Grouping Execution Management Trade Reporting Customer & Transaction Services Confirmation & Matching Merchant Operations Document Management Underwriting Claims Credit Approval Management Safe Keeping Management Client Accounting & Reporting Performance Measurement Cash Services Rewards Admin Fees & Billing Management Client Tax Reporting Authorisations AML/Fraud Detection Collections and Recovery Collateral Handling Correspondent Banking Allocations Processing & Execution Support Cross-Product/Service Non-Client Facing Processing Corporate Involved 3rd Reconciliation Clearing Party Actions Maintenance Management Nostro Cash Management Payments Settlement Custody Investigations Financial Client Support Operational Monitoring Reference Data FX & MM Processing Securities Processing Structured Products Processing Fund Processing Hedge Fund Processing Credit Processing Card Processing Trade Services Processing Insurance Processing Service Centre Mgmt Decision Support Treasury Management Balance Sheet Management Compliance Internal Audit Regulatory & Compliance Legal Awareness & Compliance Regulatory & Legal Doc. Management Trust Administration Centralised Service Centre Management GSC Monitoring Financial Accntg & Reporting Market Data Management Specific Product Processing Business Policies and Procedures Operational Risk Control Management Trade Services Management Operations & Processing Client Account Admin End to End Service Level Management Credit Risk Control Management Card Product Management Cross-Product/Service Client Facing Processing Business Architecture & Operating Model Risk Products & Services Global MIS Risk, Financial & Compliance Management Sales Execution Channel Management Support Infrastructure Support & Logistics Legal Programme & Change Management Facilities Operation & Maintenance Procurement Information Technology Internal Comms (excl. customer) HR & Payroll OPS Design & Implement Design apps & IT infrastructure Operate & maintain apps & IT i/f Build apps & IT infrastructure Security Business continuity 18
- 19. Business Architecture – Visual Strategic Planning Business Architecture – Example of Use Another strategic use of the business architecture is to map the project portfolio, based on the high level definitions, to the capabilities to identify overlaps and duplication across the Investment portfolio. Result: Informed Business Decisions • Repackage the portfolio mix • Defund projects which are not impacting strategic focus • Accelerate projects with dependencies • Fund projects which previously were unfunded • Clarify Ownership/sponsorship • Innovative Funding Models 19
- 20. The Power of Business Modeling Business Architecture – Visual Strategic Planning Communication Facilitating cross-group understanding Analysis Modeling as a thinking tool Facilitation Excellent method for eliciting requirements Scope Control Precise tool for defining what’s in and what’s out Management Tool Implicit becomes explicit, and becomes manageable 20 20
- 21. Business Architecture – Visual Strategic Planning Business Architecture – BIZBOK Framework & Views Source: Business Architecture Body of Knowledge (BIZBOK™) 3.1 21
- 22. Business Architecture – Visual Strategic Planning Business Architecture Framework Dynamic Views Foundation Views D e c o m p o s i t i o n Business Drivers, Goals & Objectives Customers Product & Services Competitors Regulators Vendors/Partners Roles Initiatives/Projects Metrics & Measures Channels Application Inventory Organization Rules/Policy/Requirements Location Business Information 22
- 23. Business Architecture – Visual Strategic Planning Business Architecture Framework - deployed 23
- 25. Business Architecture – Visual Strategic Planning Blueprinting Lifecycle Face2Face Tel phone e Pos t PDA Onl e n i Em ai l I nt er m ei r y da Sal s, M ar kt & ai ns i s e e Rel o hp t Ri k, Fi anci l s n a& Com pl nceM aag m a i n e ent St r at egy& Gover ane n c M ar ket M aag m t n e en Ext er nal pr ae Cor o t Com m s St r at egy Busi ess St r t ey n a g M anagem et n Cl nt m r eser c & e kt i a h anal t i s y c Cl nt Rel t i ns hi M aag m e i a o p n e ent Br and M anagem et n Busi ess r es ur e n o c& sal s pl nni g e a n Gl bal I S o M M ar ket i g n M anagem et n Sal s/Pr odut e c M oni or i g t n Rel t i ns hi a o p M anagem et n Sal s & s t r i ut i n e Di b o Cont act M ag m t n a e en I ndependenAs et t s M anagem et n El ct r oni Ser i e e c vc Channel anag m M e ent Pr oduct M aag m t n e en Pr oduct Cat l gu ao e M anagem et n Funds M em t anag en Secur i i s Pr ouc te d t M anagem et n Cr edi M em t anag ent Tr adeSer vi e cs M anagem et n FX& M M M anagem et n Cash M anagem et n St r uct ur dPr dut e o c M anagem et n Car dM anageent m I nsur anc Pr ouc s e d t M anagem et n Execut i n o M anagem et n Pr oduct / Ser i i g vc n Sour ci g n Pr oduct & ves or Ser i Suppt c Gr oup/ PbAdvi or Cl nt Ri kPr of i g s y i e s n l Ser vi es c Tr us t & t at Es e Pl nni g a n Fi anci l anni g n aPl n Tr adi gSer vi e n cs Tr adeRepor t g n i Di cr et i nar y s o Por t vi es gt ol o Ser f c i M St r at egi As s t c e Al cat i n o o l Fam i Of f i e y l c Ser vi es c Ser i c Resear ch& ys Pr oduct & ve Anal i Cont r ol Al cat i ns o o l Oper at i ns & oes i g o Pr c s n Cl nt Account e i Adm i i t r at i n ns o Tact i al s et c As Al cat i n o o l Pr ocess i g& ade Cl nt Suppor t n Tr e i Suppor t Saf eKeepi g n M anagem et n Cl nt Account i g e i n& Repor t i g n Fees & l g Bi n i M anagem et n M chant at ns er Oper i o Reconci t i n a i l o Paym ent s I nvol ed3r d t v Par y M ai t enanc n e Cl ar i g e n Nos t r oCas h M anagem et n Cl nt Tax Repor t i g e i n Per f or m ac ne M eas ur em t en Cor r esponen d t Banki g n Set t l m ent e Cor por at e i n Act os M anagem et n Cus t ody Oper at i nal o M oni or i g t n Endt oEndSer vi e c Level anagem t M n e Rew ds ar M anagem et n Cas hSer vi es c Deci i nSuppor t so Tr eas ur y M anagem et n Bal nceSheet a M anagem et n M ar ket Dat a M anagem et n Speci i Pr oduc Pr c s i g fc t oe n Execut i e& v St akehol er d M anagem et n Busi ess Ar chec ue n t i tr Fi anci l n a Fi anci l n aAccnt g& Repor t i g n Cr os s - Pr dut S r veNonCnt Fai gPr c s i g o c/e i c -l e c n oe n i Docum ent M anagem et n Cr edi Appr ova t l M anagem et n Gover nance Set t l m ent s k e Ri Cont r ol anaem t M g en Secur i i at i ni cl t s o( n . Syndi at i ns ) c o Tr adi gSuppor n t Conf i m at i n r o& M at chi g n Cr os s - Pr dut Sr veCl nt i gPr oes g o c / e i i Fac c e n csi n Segm Anasi & ent l s y Pl nni g a n Oper at i nal s k o Ri Cont r ol anaem t M g en M ket Ri kCot r l ar s n o M anagem et n Ser vi eM anaem t c g en HedgeFunds M anagem et n Ri k s Cr edi Ri kCont r l t s o M anagem et n Segm ed vi i g Af t er Sal s Ser i e ent Ser c n e vc Pr oduct s & vi e Ser c s Cust om er ns ht I i g Cust om Behai ur er vo M odel s Count er / Br nc a h Ser vi es c Sal s For ce e M anagem et n Pr os pect i gSal s n& e Or der M em t anag en & oupi g Gr n Al ncepl nni g a i l a n Oper at i ns st aeg o rt y & iy pol c Cust om er M anagem et n St r at egy Cl nt Acqui i i n& e i st o Ref er r al s Col ct i ns and e l o Recover y Col t er al a l Handl g n i I nt er nal t Audi FX& M oces i g M Pr sn e o cs Secur i i s Pr oes i g St r uct ur dPr dut FundPr oces i g t e c sn sn Pr ocessi g n Cr edi Pr oces i g t sn Car dPr oces i g sn Aut hor i at i n s os I TAr chi ect r t ue Tr adeSer vi e cs Pr ocess i g n Com pl nce a i HedgeFund Pr ocessi g n Legal ar eness Aw & Com pl nce a i Li eI ns ur ane f c Pr ocess i g n The lifecycle employs methods, tools and techniques to develop agile and integrated business perspectives which provide traceability and alignment between levels. Regul t or y& a Com pl nce a i Regul t or y& l a Lega Doc. M em anag ent Cent r al edSer i e r e angeent s i vc Cent M a m Busi ess Pol i s an n c ie d Pr ocedur e s GSCM oni or i g t n Ser vi eCent r M t c e gm Suppor t I nf at ut r e r sr cu Suppor t & s t s Logi i c Legal Pr ogr am m & e ChangeM gem t ana en Faci i s Oper at i n& Pr ocur em t i le o ent M ai t enanc n e I nf or m ai nTehol g t o c n oy I nt er nal m ( xc Com s e l . cus t om er ) HR& Payr ol l OPSDesi n& g I m pl m ent e Desi napps & T g I n i f r as t r uc ue tr Oper at e& ai t i m nan apps & Ti f I / Bui apps & T d l I n i f r as t r uc ue tr Secur i y t Bus i ess cont ui y n n i t • Visual improves ability for stakeholder sign-off Each Capability is underpinned by a number of Business Functions • Well defined processes, terms and definitions • Acceleration in identifying reusable processes and rules Each Function is in turn supported by a range of Business Processes • Consistent language to support transfer of knowledge Each process collaborates across a set of activities and tasks to compete the business objective • Logic is contained within the process • View to standardization and reusable processes 25 Traceability & Alignment Advantages
- 26. Business Architecture – Visual Strategic Planning Blueprinting Lifecycle - Value Positioning 26
- 27. CASE STUDIES 27
- 28. Case Study Business Architecture – Visual Strategic Planning A Large multi national had an investment portfolio wish list of over $500m in projects but had only ever spent $80 - 90M per year in the last 5 years. Business architecture was used to position these project inputs against strategic goals and capabilities. The analysis highlighted significant project duplication, gaps in spend, dependencies and risk, that were not yet visible, and enabled a re-shaping of the investment portfolio . Using business architecture tools, such as a Value Chain, and mapping projects to strategic goals and capability modes , enabled a logical repositioning of the project portfolio. Developing a line of sight from strategy, to logical grouping of projects , to tangible benefits also removes much of the political hardship in communicating the re-prioritized spend. Source: Orbus Software, Swindell 2013 28
- 29. Business Architecture – Visual Strategic Planning Case Study A Large multi national bank spent a significant amount of time and money after a merger trying to integrate various functions and applications to improve its efficiency and agility. The problem was they started bottom up with significant detailed documentation, and divisional inputs, which created complexity and confusion for the steering committee. Poor governance practices also contributed to the confusion. Starting top down from the organizational strategy and objectives ,and mapping various inputs against the capability model , enabled a more focused analysis of the capability, including functions and supporting applications, business issues , requirements and creation of clear investment choices. A simple heat map assessment of the capabilities enabled inputs to be grouped and domain analysis identified capabilities requiring greatest uplift and transition options to be compared, thus simplifying the consolidation journey. Source: Orbus Software, Swindell 2013 29
- 30. Business Architecture – Visual Strategic Planning Case Study: Ford Motor Company Source: OMG: Business Architecture, Daniel Toth March, 2013 30
- 31. To claim your PDU’s Activity Number: IAG636 Provider ID: 2858 800.209.3616 31
- 32. Appendix 32
- 33. Appendix A: Glossary of Terms: Framework Definitions Business Drivers , Goals and Objectives: input to the Business Architecture as a means to express the Business Architecture. Business Capability Model: A logical representation of a business that reveals its essential building blocks. Categorized by Domains, Competencies and Components • Business Domain: Logical business groupings for the purposes of describing a high level activity . Domains are a series of competencies which generally collaborate together for some value. • Business Competency: defined as large business areas with similar characteristic skills and capabilities, for example, product development or supply chain. Components within the Competencies are typically related between Direct, Control and Execute • Business Capability: is a group of cohesive business services supported by the appropriate information systems, processes, organizational structure and performance measures. Each business component serves a unique purpose and collaborates with other business components to support business processes. Business Functions; represents a decomposition of the business component to a granularity representing the function which must be performed in order to achieve the business objective. Very often reflecting the organizational design and /or transitions states of a Common Business Process. Policy Admin: Open, Maintain , Close Policy. Business Process Model A commonly used approach to express the business process hierarchy of common business processes, workflows and subflows which include activities and events. Activities are combined to create a business process, i.e., a structured, measured set of activities, that takes input and creates output of value to a customer." Business Activity: "An activity may be a manual, semi automated or automated operation that completes a unit of work. An atomic level activity is the lowest level of activity that cannot be decomposed further without considering how to implement them. Business Event: "A stimulus or trigger which initiates one or more processes. A set of conditions which cause a process to be performed." Roles/Actors: "Business roles are logical, categories of job that perform business activities of the enterprise, (e.g. Underwriter, Claims Assessor, Regulator, Sales Person). As such, they combine business activities into a recognizable relationship." Locations "Business locations identify both the physical and logical places where business activities are carried out. The physical locations are simply the geographical places where the business has a presence; the logical locations are types or categories, of these physical sites, based on the types of business activities that are performed at them." Information Item "A person, place, thing, concept, or event that the business needs to manage and about which it may need to keep data. " 33