Design of Business in an Age of Disruption

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BUSINESS DESIGN BY CRAIG MARTIN - ENTERPRISE ARCHITECTS / FHO | PAGE 1 BUSINESS BY DESIGN OCTOBER 2015 Craig Martin

Transcript of Design of Business in an Age of Disruption

Page 1: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 1

BUSINESS BY DESIGN OCTOBER 2015 Craig Martin

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DISCIPLINE CONFUSION CONFUSION REIGNS AROUND WHICH DISCIPLINES ARE USED

FOR WHAT SITUATIONS

STRATEGIC PLAN MARKETING PLAN OPERATIONAL PLAN

DELIVERY & EXECUTION OPERATIONS

Planning Delivering Operating

PORTFOLIO, PROGRAM AND PROJECT MANAGEMENT BUSINESS ARCHITECTURE

ENTERPRISE ARCHITECTURE PRODUCT & SERVICE DESIGN

BUSINESS PLANNING SOLUTIONS ARCHITECTURE

SOLUTIONS DEVELOPMENT

ENTERPRISE DESIGN

BUSINESS ANALYSIS

Environment analysis / SWOT, competitor / Business motivation / Product and portfolio analysis / Strategic Options

Market analysis and forecasting Model the business / Evaluate and select strategy / Risk and funding analysis

Project, portfolio and program management, solutions delivery

Daily operations, run the business

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SOLVING PROBLEMS

ABSTRACT

CONCRETE

Insight: “I want a beautiful

environment”

Opportunity: Paint the wall,

Move, Buy new furniture, Hand a

picture

Problem Statement:

“I need a hole”

Solution Statement: “I need a drill”

PROBLEM SOLUTION

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THE EMERGENCE OF ENTERPRISE DESIGN

ABSTRACT

CONCRETE

PROBLEM SOLUTION

Understanding the problem from a human centred

perspective

Prototyping and testing for

disruptive options

Understanding drivers, pressures, environment and

working out motivation

Developing operating models and solutions

DE

SIG

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THIN

KIN

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CH

ITEC

TUR

E

THIN

KIN

G

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TER

PR

ISE

DE

SIG

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ABSTRACT

CONCRETE

PROBLEM SOLUTION

Understanding the problem from a human centred

perspective

Prototyping and testing for

disruptive options

Understanding drivers, pressures, environment and

working out motivation

Developing operating models and solutions

NAVIGATING THE QUADRANTS APPROACHES TO CHANGE

SOLUTION FOCUSSED TRANSFORMATION FOCUSSED

DISRUPTION FOCUSSED DELIVERY FOCUSSED

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DESIGN MINDSET

UNCERTAINTY / PATTERS / INSIGHTS CLARITY / FOCUS

RESEARCH CONCEPT DESIGN PROTOTYPE

DISCOVER DEFINE DEVELOP DELIVER

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ABSTRACT

CONCRETE

PROBLEM SOLUTION

NAVIGATING THE QUADRANTS APPROACHES TO CHANGE

DISCOVER DEFINE DEVELOP DELIVER

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…adisciplinethatusesdesigner’ssensibilityandmethodstomatchpeople’sneedswithwhatistechnologicallyfeasibleandwhataviablebusinessstrategycanconvertintocustomervalue…

Tim Brown, CEO, IDEO

DESIGN THINKING DEFINITION

›  Quoted from ‘The Design of Business’, Roger Martin

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THREE LENSES OF HUMAN CENTRED DESIGN

StartHere

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DECISIONS ABOUT ‘PROBLEMS’

‘A Leader’s Framework for Decision Making’ David Snowden & Mary Boone

Unknowable: The relationship between cause and effect is impossible to determine as they constantly shift. In chaos, it is necessary to act first and then sense through the result of action how to further respond. Understanding the problem comes later. This is the domain of rapid response. Example: Natural disasters

Unknown Problems: The problem is in constant flux as a change to the situation causes ripple effects and unpredictability in other aspects. Information is often incomplete. Rather than implementing a solution, devising a concept, testing, iterating and then responding is needed. Problems often become complex when human behaviour is a significant factor. This is the domain of emergence. Example: Schooling experiences, organisational change management, traffic management

Known unknowns: A complicated problem can have multiple right solutions. Complicated problems are understood, analysed and then responded to. It often requires expertise to solve and is largely process driven. Solving a complicated problem often requires the right expertise along with the right tools. In this realm you may know you have a problem but may not be able to solve it alone. This is the domain of expertise. Example: Fixing a car, constructing an aeroplane.

Known knowns A simple problem is one of cause and effect. The solution is rarely disputed. The problem can be categorised, understood and a response devised based on the information. This is the domain of best practice. Example: 1+1 = 2, solving a jigsaw puzzle.

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FOUR ORDERS OF DESIGN

›  Business Design, ›  Organisation Design

›  Service Design, UX Design, Instructional Design,

›  Process Design

›  Richard Buchanan, (1992) Wicked Problems in Design Thinking

›  Product Design, Engineering, Architecture

›  Graphic Design, Visual Design

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BUSINESS PREDILECTION

›  ‘The Design of Business’, Roger Martin

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TOOLS FOR BUSINESS DESIGN: A SELECTION

›  DISCOVER ›  Literature Review

›  Time Machine ›  Shadowing

›  Touchstone Tours ›  Service Safari

›  A Day in the Life ›  Diary Studies

›  The Five Whys ›  Journey Maps

DEFINE

Mapping Complex Situations

Stakeholder Map

Customer Persona

Empathy Mapping

Mind Mapping

Scenarios

Affinity Mapping

How Might We

DEVELOP

Bodystorming

Collaborative Ideation

Co-creation

Storyboards

Image Boards

Prototyping

Heuristic Evaluation

Critique Circle

DELIVER

Rapid Iterative Testing

A/B Testing

Usability Testing

Ergonomic Analysis

Value Opportunity Analysis

Feedback Review

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ABSTRACT

CONCRETE

PROBLEM SOLUTION

Problem Definition Influencers

Values Drivers

Value System Engineering Business Scenario Value Proposition

Business Model Canvas

Business Motivation Model

Value Chain Capabilities

Cross-Functional Capabilities Capability Overlays

Roadmap & Planning

MOVING THROUGH THE QUADRANTS

DISCOVER DEFINE DEVELOP DELIVER

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THE VALUE CYCLE THE QUICKEST WAY TO GET ADOPTION FOR COMPLEX ORGANIZATIONS

What is value?

How is value created?

How is value measured

and reported on?

How is value delivered?

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YOU CANNOT DEVELOP MOTIVATION OR HYPOTHESES WITHOUT FIRST UNDERSTANDING VALUE

ALIGNING VALUE TO PERFORMANCE

BUSINESS UNIT BUSINESS UNIT BUSINESS UNIT BUSINESS UNIT BUSINESS UNIT

Process Performance Indicators

PRODUCT DEVELOPMENT RETAIL SALES RETAIL PLANNING SOURCING

Objectives Drive Key Performance Indicators (SMART) Financial

Operational

Data Quality

Indicators

Business Flows

FLOW OF GOODS, FLOW OF MONEY, FLOW OF INFORMATION VALUE CHAINS / CROSS FUNCTIONAL CAPABILITY / VALUE STREAMS

Critical Success Factors

Strategic Business Goals

Value Monitoring

VALU

E REPO

RTIN

G

PERFO

RM

AN

CE R

EPOR

TING

Performance Monitoring

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UNDERSTANDING THE DIMENSIONS OF VALUE AND PERFORMANCE

AND REALISING THESE THROUGH THE INFORMATION MANAGEMENT DISCIPLINE

What value is created?

How is value created?

How is value measured?

BUSINESS SERVICES &

SPI’S

BUSINESS PROCESSES &

PPI’S

OBJECTIVES & KPI’S

BUSINESS GROUP CSF’S

BUSINESS AREA STRATEGIC

GOALS

ENTERPRISE STRATEGIC

GOALS

Increase Turnover

Customer Service: Increase Customer

Satisfaction

Customer Group: Improve Self Service

Customer Group: Improve telephone

support

KPI: Customers may be diverted by a

maximum of 3 times

KPI: Customers shall wait no longer than 2

minutes

PPI: Time from reception to customer

handling

SPI: Service Quality measured in

customer satisfaction

DQI: Data quality measured in

customer to product alignment

Accounting: Reduce administration costs

Sales: Increase new customers into retail

outlets

Capture customer details and product

category prior to handling

VALUE REPORTING

PERFORMANCE REPORTING

CAPABILITY: PEOPLE, PROCESS, TOOLS, DATA

STRATEGIC REPORTING & DECISION MAKING

OPERATIONAL REPORTING & DECISION MAKING STRATEGIC / EXECUTIVE SCORECARDS OPERATIONAL COCKPITS

TACTICAL REPORTING &

DECISION MAKING

MGMT. DASHBOARDS

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Increase price Increase volume Improve mix Improve process Reduce cost of inputs Improve warehouse utilisation Increase productivity Decrease staffing Optimise scheduling Optimise physical network Decrease staffing Use alternative distribution Lower Customer Service & Order Management Costs Lower I/S costs Lower Finance / Accounting costs Lower HR costs Improve capital planning/ investment process Reduce inventories Reduce A/R increase A/P

•  Profit-driven marketing efforts: •  Target “best” customers •  Offer “best” product mix •  Improve pricing management

•  Proactive production planning for inventory management

•  Most profitable capacity allocation/utilisation

•  Reduced sales management layers •  Focus on high-profit accounts •  Improved inventory flow visibility •  Lower transportation costs •  Higher facilities utilisation •  Less “fire fighting” •  Better carrier evaluation/

management

•  Higher quality Customer Service •  Improved Supply Chain visibility •  Improved order fill rates •  Significantly lower cost •  More consistent service •  Faster problem resolution

•  Improved capital stewardship •  Increased capital productivity •  Reduced inventory investment •  Reduced receivables investment

o  Automated PO requisitions o  Improved information for

evaluating vendors o  Automation of some scheduling

functions

o  Single point of entry eliminates data re-entry and improves accuracy

o  Faster data reconciliation o  Automated billing processes o  Automated payroll processes

o  Moderately lower safety stock inventory

o  Moderately improved A/R and A/P management

Increase revenues

Decrease costs

Reduce selling costs

Reduce distribution costs

Reduce administrative

costs

Increase gross profit

Decrease operating expenses

Capital deployment

Cost of capital

Increase net operating profit

after tax (NOPAT) (I/S)

Improve capital allocation (B/S)

Enterprise Value Map

BUILDING VALUE MODELS USING DRIVER TREES VALUE LEVERS

TRANSFORMATION BENEFIT (Outcome)

AUTOMATION BENEFIT

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VALUE IS ACHIEVED THROUGH COHERENCY

Companies with a High Level of Cohesion affect EBIT Directly

4%

8%

12%

16%

20%

24%

28%

32%

0 20 40 60 80 100 120

EBIT

MA

RG

IN, 2

003-

2007

CAPABILITIES COHERENCE SCORE

COCA-COLA

WRIGLEY

PEPSICO

KIMBERLY-CLARK

SARA LEE

CONAGRA MERCK

UNILEVER

H.J. HEINZ

KRAFT

GENERAL MILLS

CLOROX

CAMPBELL SOUP COMPANY

P&G

*Adapted From “The Coherence Premium” – Harvard Business Review, June 2010

Acoherentorganiza.onisonethatisthoughtofand

executedasawhole

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ABSTRACT

CONCRETE

PROBLEM SOLUTION

Problem Definition Influencers

Values Drivers

Value System Engineering Business Scenario Value Proposition

Business Model Canvas

Business Motivation Model

Value Chain Capabilities

Cross-Functional Capabilities Capability Overlays

Roadmap & Planning

MOVING THROUGH THE QUADRANTS

DISCOVER DEFINE DEVELOP DELIVER

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WHEN DOES DISRUPTION OCCUR?

›  First stage of disruption, an innovator makes a product that is much more affordable and simpler to use (for the user) than what currently exists.

›  The second stage of disruption is when additional technological change is added which makes it simpler and less expensive to build and maintain the products.

›  The new change eventually displaces the existing market and value network, resulting in a radical improvement in performance.

Disruptive technologies take a while to change the market

Christensen, Clayton M. (2010-09-06). Disrupting Class, Expanded Edition: How Disruptive Innovation Will Change the Way the World Learns

PE

RFO

RM

AN

CE

TIME

market

Market for old technology

Market for new technology

New replaces old technology

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‘Enterprise Lifecycle's 2014 © Enterprise Architects PTY LTD

PER

OR

MA

NC

E

TIME

ENTERPRISE

BRAND PLATFORM

BUSINESS MODEL

BUSINESS CAPABILITIES

PRODUCT

DISRUPTIVE FORCES REQUIRE US TO RE-INVENT AT A NUMBER OF LEVELS

Organisations…and architects need to be able to provide the means to enable this change

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VALUE SYSTEM DESIGN

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THE KNOWLEDGE FUNNEL

Non-core but complex - Outsource

Innovation, chaos & unresolved mysteries

HIGH

HIG

H

LOW

LOW

Must be done but adds little value to product or services

Very important to success, high value added to products and services

STRATEGIC IMPORTANCE & VALUE

CO

MPL

EXIT

Y A

ND

DYN

AM

ICS

Complex negotiation, design, or decision process

Many business rules; expertise involved

Some business rules

Procedure or simple algorithm

Non -Core Competencies

Core Differentiating Competencies

Everyday, highly repeatable and

automated

Make repeatable and reliable to gain efficiency

Core Competitive Competencies

THE RESULTS OF DISRUPTION THE SPEED THROUGH THE KNOWLEDGE FUNNEL IS ALSO INCREASING

Source: Adapted from “Business Process Change” by Paul Harmon

GOAL: Reliably produce consistent, predictable

outcomes

GOAL: Validity- Produce outcomes

that meet desired objectives

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RE-INVENTION NEEDS TO OCCUR ACROSS THE FULL BUSINESS MODEL.

NEW MIXES NEED TO BE IDENTIFIED

Leading and Best Practice Research, 2011/2012 Scope: 1765 CEO’s and 2936 business leaders representing all major countries and industries

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THE NATURE OF INNOVATION

IMAGETOBEMODIFIEDTOINCREASETEXTSIZE

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DIGITAL ECONOMY General Principles of the Digital Economy. These are the principles of Digital Strategy Enablement

“RENEWABILITY” You can renew data, but not exhaust it. Once created it can be used over and over again. It is a renewable resource

“UNIVERSALITY” Everyone can access the same data simultaneously, and use it for a completely different reason

“MAGNETISM” Information grows in value as more people absorb it, which, in turn, creates a network effect, drawing more people who want to learn. Metcalfe's law

“LACK OF FRICTION” The more smoothly information flows, the more valuable it is.

“VULNERABILITY” Criminals can harm or misuse information. They can destroy it, ruin it or steal it (as in identity theft). In this one sense, data is like physical goods

Larry Downes - Three laws direct the revolutionary changes wrought by computer technology.

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“THE LAW OF DISRUPTION”

The dissemination of change is “uneven.” Various elements of society struggle to keep up with rapid technological change.

Technology changes exponentially, but social, economic and legal systems change incrementally” and struggle to keep up.

Larry Downes - Three laws direct the revolutionary changes wrought by computer technology.

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DISRUPTION ALTERS ENTIRE VALUE NETWORKS Example: Disruption will alter the entire value chain and place the student at the centre

Faculty & Staff

CONTENT

CLASSES

SOCIAL INTERAC

TION LECTURE

RS

STUDENTS Students

& Social Interaction

CONTENT

CLASSES

FACULTY

STAFF

FACILITATORS

TeachatSCHOOLanddoHomeworkatHOME TeachatHOMEanddoHomeworkatSCHOOL

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DIGITAL DISRUPTION IS REDUCING THE

DELAY Action Reaction

Immediate Feedback

Delayed Feedback

B

R

“Lifeisindeedspeedingup,butmansabilitytodealwithit,isslowingdown”

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THIS ACCELERATION

IS PUTTING PRESSURE ON

CURRENT BUSINESS MODELS

Technology commoditising

from below

Business roles taking on more architecture accountabilities

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THE RESULTS OF DISRUPTION THE COMMODITY SPACE IS GROWING, MAKING THE DIFFERENTIATION SPACE

MORE COMPETITIVE

Non-core but complex - Outsource

Innovation, chaos & unresolved mysteries

HIGH

HIG

H

LOW

LOW

Must be done but adds little value to product or services

Very important to success, high value added to products and services

STRATEGIC IMPORTANCE & VALUE

CO

MPL

EXIT

Y A

ND

DYN

AM

ICS

Complex negotiation, design, or decision process

Many business rules; expertise involved

Some business rules

Procedure or simple algorithm

Non -Core Competencies

Core Differentiating Competencies

Everyday, highly repeatable and automated

Make repeatable and reliable to gain efficiency

Core Competitive Competencies

Non-core but complex - Outsource Innovation, chaos &

unresolved mysteries

HIGH

HIG

H

LOW

LOW

Must be done but adds little value to product or services

Very important to success, high value added to products and services

STRATEGIC IMPORTANCE & VALUE

CO

MPL

EXIT

Y A

ND

DYN

AM

ICS

Complex negotiation, design, or decision process

Many business rules; expertise involved

Some business rules

Procedure or simple algorithm

Non -Core Competencies

Core Differentiating Competencies

Everyday, highly repeatable and automated

Make repeatable and reliable to gain

efficiency

Core Competitive Competencies

Opportunityor

Threat?

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DISRUPTION IS SHIFTING THE FOCUS TO CUSTOMER LIFETIME VALUE

This shift is the essence of what drives the emergence of the chief digital officer (CDO). It also forces a stronger focus on the chief marketing officer (CMO)

SELLER DRIVEN ENTERPRISE CUSTOMER CENTRIC ENTERPRISE CUSTOMER DRIVEN ENTERPRISE

“Maximize product profitability”

Push Selectively Target Pull (collaboration)

DATA ANALYSIS

SERVICE Interactive & Proactive

UNDERSTANDING Segmented Individualized

CUSTOMER OFFERS Intra-enterprise bundles Inter-enterprise bundles

ORGANISATION Integrated Function Customer Outcome

CHANNELS

Segment Driven Integrated and Seamless

“Maximize market share”

“Maximize customer lifetime value”

MARKETING

Passive & Reactive Interactive & Reactive

Insight as Art Factual insight Predictive insight

Broad

Product Driven

Singular

Functional Silo

Digital Strategy Focus

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WHAT IS DIGITAL?

Digital is a participatory layer of all media that allows users to self select their own experiences and affords marketers the ability to bridge media, gain feedback, iterate their messages, and collect relationships. BUD CADDELL

EnterpriseArchitects,March2011 Slide34

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THE CMO AGENDA

FOCUS ON THE HERE AND NOW…

Exploration & Validity

Produce outcomes that meet an objective

THE CIO AGENDA

FOCUS ON LEVERAGE, SYNERGY, LONG TERM USE OF

ASSETS…

Exploitation and Reliability Produce consistent, predictable

outcomes

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THE CUSTOMER DRIVEN SHIFT

Production Products Selling and Promotion

Profit Through

sales volume

Target individual

Customer Intention

Outcome Marketing

Profit through customer lifetime

satisfaction

TheSellingConceptProductDriven

TheValueConceptCustomerDriven

TheMarke>ngConceptCustomerCentric

Target Market Segment

Segment Needs

Integrated Marketing

Profit through Increased

Market Share

Thedigitalstrategy

focus

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CUSTOMER DRIVEN AND DIFFERENT VALUE CHAINS

The Selling Concept - Product Driven

The Value Concept - Customer Driven

The Marketing Concept - Customer Centric

Production Products Selling and Promotion

Profit Through

sales volume

STARTING POINT FOCUS MEANS ENDS

Target Market Segment

Segment Needs

Integrated Marketing

Profit through Increased

Market Share

STARTING POINT FOCUS MEANS ENDS

Target individual Customer Intention

Outcome Marketing

Profit through customer lifetime

satisfaction

STARTING POINT FOCUS MEANS ENDS

The customer driven shift

The digital strategy focus

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*Adapted from Geoffrey Moore’s: Dealing with Darwin

Each industry moves along a life cycle, with different opportunities for competitive advantage at each stage

THE STRATEGIC BUSINESS MODEL Its also great for start-ups at the early stage of the lifecycle

Introduction Growth Maturity Decline

TOTAL INDUSTRY REVENUE

TIME

DISRUPTOR ENTERS

MARKET SHARE, REVENUE & COST BECOME KEY

PRODUCT INNOVATION REDUCES

PROCESS INNOVATION BEGINS

PRODUCT LEADERSHIP CUSTOMER INTIMACY

OPERATIONAL EXCELLENCE

VALUE DISCIPLINE ORIENTATION THROUGH THE

INDUSTRY LIFECYCLE

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BUSINESS MODEL EVALUATION BUSINESS MODEL OPTIONS ARE EVALUATED AGAINST VALUE DRIVERS OR BUSINESS

MODEL MECHANICS TO DETERMINE SHORTLISTS

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ARCHITECTURE DELIVERY MODELS EVALUATION OF STRATEGIC BUSINESS OPTIONS

The capability mixes are evaluated against each scenario to determine the optimal path going forward

REQUIREMENTS: PROGRAM “X” REQUIRES A $100M 5-YEAR NET BENEFIT AND MUST BE IMPLEMENTED IN UNDER 3 YEARS.

BusinessModels

ValueStreams

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UNDERSTANDING THE ENGINE TO PRODUCE THE BUSINESS FIT

The operating model delivers the infrastructure required to deliver the products and services to the customer segments

THE ENVIRONMENT

BUSINESS MODEL

Markets

Industries

Customers

Market Segment

Channels

Customer Relationships

Value Proposition

Offering: Services/Products

Processes/ Value Chains

Capabilities

Business Service

Functions

Data

Applications

Technology

MARKET MODEL

OPERATING MODEL

PRODUCTS & SERVICES

MODEL

Aligning what is valuable to the customer and what is value to the business is referred to as the business fit. This means that the engine delivers both aspects and is the ideal mix an organization needs to engineer for.

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USING THE VALUE PROPOSITION CANVAS TO DEVELOP THE SERVICE MODELS

The Value (Proposition) Map describes the features of a specific value proposition in your business model in a more structured and detailed way. It breaks your value proposition down into products and services, pain relievers, and gain creators.

The Customer (Segment) Profile describes a specific customer segment in your business model in a more structured and detailed way. It breaks the customer down into its jobs, pains, and gains.

Gain Creators describe how your products and services create customer gains.

Pain Relievers describe how your products and services alleviate customer pains.

You achieve CUSTOMER Fit when your value map meets your customer profile— when your products and services produce pain relievers and gain creators that match one or more of the jobs, pains, and gains that are important to your customer.

Gain describe the outcomes customers want to achieve or the concrete benefits they are seeking.

Pains describe bad outcomes, risks, and obstacles related to customer jobs.

This is a list of all the

Products and Services a value proposition is built around.

Customer Jobs describe what customers are trying to get done in their work and in their lives when dealing with a problem or challenge.

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CUSTOMER INTERACTION ACROSS THE SERVICE LANDSCAPE

Products and Services

Valuable to the Customer

PRODUCT N

PRODUCT I

PRODUCT T PRODUCT Y

PRODUCT K

SERVICE D SERVICE N

SERVICE H SERVICE P

PRODUCT B SERVICE N

SERVICE T

PRODUCT S

SERVICE A

PRODUCT X

PRODUCT H

SERVICE O

PRODUCT N

PRODUCT E SERVICE C

SERVICE Q

SERVICE N

SERVICE T

SERVICE B

Customer Outcome

CUSTOMER INTERACTION MAP, CUSTOMER SEGMENT ABC

Establishing my account is quick and simple…

Integration is quick and easy, with the right help available

Efficient, with choices that make it convenient

I know when the shipment will arrive

I can find out whether my shipments were delivered;

I get a meaningful resolution to my problem

“I want to set-up my account” “I want to get ready to send my products” “I want to send a shipment” “I need to know when my

shipment will arrive” “I want confirmation that my

shipments have arrived” “Something has gone wrong

with my delivery…”

% of accounts set-up in <X hours

% of accounts that utilise more than X

% of orders with no manual intervention

% of articles with at least 4 scans

Service Delivery Performance Metric

# of complaints per million products

RESEARCH EVALUATE PURCHASE USE INTEGRATE SERVE

Value to the Business

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CUSTOMER INTERACTION ACROSS THE SERVICE LANDSCAPE

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Business Motivation

Strategic Business Models

Value Discipline Orientation

Operating Business Models

Capabilities and Resources

IT’S THE STRATEGIC BUSINESS MODELS THAT CAN DETERMINE WHERE VALUE LIES

O P C O P C O P C

Pe Pr T Pe Pr T Pe Pr T

LEVE

RS

DR

IVERS

INFORMATION

Mission

Strategies

Tactics

Vision

Goals

Objectives

DISRUPTION NORMALLY OCCURS WITHIN THE VALUE SYSTEM.

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ABSTRACT

CONCRETE

PROBLEM SOLUTION

Problem Definition Influencers

Values Drivers

Value System Engineering Business Scenario Value Proposition

Business Model Canvas

Business Motivation Model

Value Chain Capabilities

Cross-Functional Capabilities Capability Overlays

Roadmap & Planning

THE ADM ACROSS THE Z MODEL

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UNDERSTANDING VALUE, PERFORMANCE AND MOTIVATION

Capability-driven architectures are designed to support the strategic objectives of an organisation

Mission

Strategies

Tactics

Vision

Goals

Objectives OUTCOME

A statement describing the aims, values and overall plan

of an organisation.

e.g. “To be the leading creator and protector of wealth.”

The means by which a strategy is carried out. Typically, projects are tactical

initiatives designed to execute strategy.

The long term plan of action designed to achieve a

particular goal of set of goals or objectives.

e.g. 5 year corporate plan.

A concise statement of a desired change.

e.g. “To be the leading provider of wealth management services in our major target markets.”

Lower level statements that describe specific, tangible products and deliverables that

projects will deliver.

e.g. “To increase revenue by 15%. To reduce OpEx by 10%.”

A high level statement of what the business is trying to accomplish.

e.g. “Improve call centre response times”

CAPABILITY

People

Process

Technology

Information

Page 49: Design of Business in an Age of Disruption

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UNDERSTANDING VALUE, PERFORMANCE AND MOTIVATION

Mission

Strategies

Tactics

Vision

Goals

Objectives

OUTCOME

CAPABILITY

People

Process

Technology

Information

Business Model

Value Chain

Capabilities

Performance Model

Value Model

END MEANS HOW

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AN APPROACH TO REPRESENT MOTIVATION AND VALUE

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VICTORIA INVESTMENT LOGIC MAPS EXAMPLE: IMPROVING ACCESS TO HEALTH SERVICES IN RURAL VICTORIA

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ALIGNING RISK WITH MOTIVATION THE COSO ERM FRAMEWORK AND ITS ALIGNMENT WITH VALUE

Riskmanagementwithoutaclearmappingtovalueandperformanceresultsinflaweddecisionmaking

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ABSTRACT

CONCRETE

PROBLEM SOLUTION

Problem Definition Influencers

Values Drivers

Value System Engineering Business Scenario Value Proposition

Business Model Canvas

Business Motivation Model

Value Chain Capabilities

Cross-Functional Capabilities Capability Overlays

Roadmap & Planning

THE ADM ACROSS THE Z MODEL

Page 54: Design of Business in an Age of Disruption

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NON-CORE CAPABILITY (MEET) The goal is to meet market standards,

exploitation and reliability Produce consistent, predictable outcomes

Focus on effectiveness and efficiency

CORE COMPETING CAPABILITY (COMPETE) The goal is competitive parity

Focus on innovation and efficiency

CORE DIFFERENTIATING CAPABILITY (BEAT) The goal is competitive advantage,

exploration & validity Focus on innovation and efficiency

Produce outcomes that meet an objective

THREE LEVELS OF MIXING: FROM THE BUSINESS MODEL TO

THE CAPABILITY RESOURCES

A reliable system will produce the same test

results every time

A valid system will produce a result that is shown, through the passage

of time, to be correct

COST

VALUE

5%

15%

80%

LEADING AND BEST PRACTICE RESEARCH, 2011/2012

THE ENVIRONMENT

BUSINESS MODEL

Revenue Model

Value Model

Product & Service Model

Performance Model

Cost Model

Operating model

Differentiating Capability

Non-Core Capability

Competing Capability

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MIXING AT THE BUSINESS MODEL LEVEL

THE ENVIRONMENT

BUSINESS MODEL Markets

Industries

Customers

Market Segment

Channels

Customer Relationships

Value Proposition

Offering:

Services/Products

Processes/ Value Chains

Capabilities

Business Service

Functions

Data

Applications

Technology

MARKET MODEL

OPERATING MODEL

SERVICE MODEL

THE ENVIRONMENT

BUSINESS MODEL

Revenue Model

Value Model

Product & Service Model

Performance Model

Cost Model

Operating model

Differentiating Capability

Non-Core Capability

Competing Capability

THE ENVIRONMENT

BUSINESS MODEL

•  ValueSystem

•  Value chain

•  Value Model

•  Capability Model

•  Structural Ownership & Accountability

•  Decomposed Capability Model

•  Core competitive & differentiating capability

•  Service Model

Level 1

Level 3

Level 2

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BUSINESS MODEL LEVEL 2

Capabilities Aligned to Functional Areas

THE ENVIRONMENT

BUSINESS MODEL

•  Value System •  Value chain •  Value Model

•  Capability Model •  Structural Ownership

and Accountability

•  Decomposed Capability Model

•  Core competitive & differentiating Capabilities

•  Service Model

Level 1

Level 3

Level 2

Competencies

Operations

Operations Management

Strategy & Execution Performance Management Underwriting & Risk Management

Document Management

Decisional & Business

Intelligence

Business Process

Management

Process Execution

Change Management

Knowledge Management

Resource Allocation

Operational Performance Management

Technical Operations

Training

Operations Quality

Management

Strategy Research

Strategy Planning

Strategy Management

Project Portfolio Selection

Project Portfolio

Prioritisation

Project Execution

Benefits Realisation

Government Policy

Enterprise Architecture

Product/Channels

Profitability

Management Reporting Underwriting Reinsurance

Corporate Risk

Management

Business Continuity

Management

Internal Audit

Market Development and Sourcing Productising and Bundling Sales and Distribution Servicing

Product Service

New Business

Underwriting

Policy Owner Service (POS)

Recurring Claims

Management

Lump Sum Claims

Management

Delivery Method

Registration

Value Transaction Management

Premium Management

Payments Management

Consolidated Reporting

Customer Service

Enquiries

Complaints Management

Retention

On-boarding

Adviser Remuneratio

n

Business Development & Sales

Leads Generation

Leads Management

Broker Management

Strategic Pipeline

Tactical Pipeline

Needs Analysis

Product Selection

Quotation & Illustration

Application

Tenders

Client Development

Specialist Training

Client Servicing

Partner Strategy &

Support

Client Communicati

ons

Adviser Relationship Management

Sponsorship

Renewals

Consulting

Dealership Relationship Management

Product Manufacture & Maintenance

Product Research

Product Development

Product Packaging

Product Management

Reinsurance

Pricing

Marketing

Market & Data

Analytics

Campaign Management

Product Launch

External Market

Communications

Brand Management

Promotions

Advertising

Internal Sales Tools

Channel Marketing

Claims Mngmnt

Policy Acquisition

Policy Admin

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BUSINESS MODEL LEVEL 3: THE CAPABILITY ANCHOR MODEL PROVIDES THE DETAILED UTILITY

BUILDING BLOCKS OF THE ORGANISATION The Capability anchor model represents the "map" of the organisation

THE ENVIRONMENT

BUSINESS MODEL

•  Value System •  Value chain •  Value Model

•  Capability Model •  Structural Ownership

and Accountability

•  Decomposed Capability Model

•  Core competitive & differentiating Capabilities

•  Service Model

Level 1

Level 3

Level 2

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UNDERSTANDING CAPABILITY

Capability driven by business has different outcomes than that driven by technology. Research shows that business driven capability based planning is more successful.

However, without aligning to IT, business architecture is more at risk of failing to deliver against strategic objectives.

CAPABILITY

OUTCOMES CUSTOMER

VALUE PRODUCT & SERVICE

PERFORMANCE PROCESS

PEOPLE

APPLICATIONS

DATA

INFORMATION

TECHNOLOGY

Information Technology Business

BusinessLed

ITLed

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Current State

Future State

Pain Points – Inefficiencies The application submitted by the consultant is often incomplete. The application is reviewed for completeness and adjudicated.

The conditional approval, along with a list or required documents are then sent back to the MS, who will communicate the results, a conditional approval, back to the applicant. This process can take several days and requires a significant time and effort from RBC resources.

What would a truly transformational scenario look like?

New Capabilities

1.  Portable credit scoring system and rules engine

2.  Document verification at POS

3.  Automated disbursement

Required Changes - How are pain points addressed?

Credit scoring engine must be available to the mortgage specialist, permitting an on-the-spot adjudication

Document verification enabled at the point of sale by the cons.

Highly automated process which advances funds without the need for the human intervention

UNDERSTANDING THE THE DEGREE OF CHANGE EFFORT TO MOVE TO THE FUTURE STATE

CHANGE FRAMEWORKS APPLIED TO YOUR PROCESS COMPONENTS CAN HELP DETERMINE IMPACT

Incr

emen

tal

Impr

ovem

ent

Sign

ifica

nt

Impr

ovem

ent

Cha

nge

the

Gam

e

1

1 2 3

Contacts bank to request mortgage

Cons. meets with the applicant

Application is complete

Application submitted for adjudication

Application is adjudicated

Results are communicated to MS

Applicant receives cond’nal approval

Applicant submits required docs

Documents are verified

Client executes documentation

Mortgage is approved

Mortgage is set up on bank systems Funds are advanced

1

Contacts bank to request mortgage

rep meets with the applicant

Application is complete

Application adjudicated on the spot

Applicant receives cond’nal approval

Applicant submits required docs

Documents are verified

Client executes documentation

Mortgage is approved

Mortgage is set up on bank systems Funds are advanced

1

Contacts bank to request mortgage

Cons meets with the applicant

Application is complete

Application adjudicated and docs verified

Client executes documentation

Mortgage is approved Funds are advanced 2 3

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SEQUENCING PARADIGMS

DEFINITION KNOWLEDGE OF IMPLEMENTATION

CURRENT STATE Business as Usual •  Evaluation of current process •  Evaluation of current benchmarks •  Evaluation of current competitor practices and product/

service offerings

•  Identifying pain points and customer irritants

•  Documenting current state o  People o  Process o  Technology

FUTURE STATE Incremental improvement. How do we improve a little?

•  Matching current competitor product/service offering •  Median performance against peers

•  Process improvements o  Lean Six Sigma

•  System changes •  Outside vendors/outsourcing

Significant improvements How do we improve a lot?

•  Market leading product/service offering •  Top quartile performance relative to peers •  Industry best practices

•  E2E changes involving the entire value chain

•  New systems •  Peer best practices

Truly transformational. How do we change the game?

•  Market leading product/service offering – “blue water” – strong source of lasting competitive advantage

•  Top decile performance relative to peers •  World-class best practices (using non-financial industry

practices)

•  Outside specialty consulting companies •  Best practices outside the financial

services industry

Determine the degree of change required to bridge the current and future state maturity

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THE CROSS FUNCTIONAL CAPABILITY ANCHOR MODEL HELPS IDENTIFY A BETTER MIX OF CAPABILITIES FOR BUSINESS OUTCOMES It is at this point that the business begins to see the true value of using capabilities

Standard functional capabilities can be aligned to a value chain

Cross functional capabilities assemble and mix functional capabilities to achieve outcomes in the value map or driver tree

Cross functional capabilities each drive out different outcomes. Underlying functional capabilities will have varying perspectives of capability maturity and capability uplift

You can also use cross functional models as scenarios to test the capability anchor model validity

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PROCESS

SignUp&Integrate

CAPABILITY

20. Information Services Management

CAPABILITY

15. Sales Execution

PROCESS

A1.Exploreandcomparepotentialprovidersand

services

PROCESS

B2.Signupandactivateaccount

PROCESS

C3.IntegratemystorewithAustraliaPost’sAPI’sprecedes precedes precedes precedes

BUSINESS SERVICE

Customer Sales Management

BUSINESS SERVICE

Partner Collaboration

PROCESS

C1.Receiveinformationonhowthesystemsandprocesseswillwork

PROCESS

C2.Installthenecessaryhardware/softwareon

mysystems

is realized by

LOGICAL APPLICATION COMP.

Customer Sales Management

LOGICAL APPLICATION COMP.

Enterprise Resource Planning

LOGICAL APPLICATION COMP.

Partner Collaboration Management

LOGICAL APPLICATION COMP.

Security Management

communicates with communicates with

communicates with

implements

is realized by

implements

ACTOR

Post Staff

DATA ENTITY

Sales Order

ACTOR

Post Staff

participates in participates in

is processed by

consumes

SAP - CRM SAP - ERP auspost.com.au

IAM - OIM

is processed by

ACTOR

Fiona

participates in

THE CROSS FUNCTIONAL CAPABILITY MODEL The process layer plays a strong role in assembling capabilities for different outcomes

CAPABILITY

People

Process

Tools

ConnecQngthesetoprojectsprovidesvaluableinsightintocoherencyofthecapexinvestmentacrosstheenterprise

Withineachprocessflow,therearetypicallyfourtofivecapabiliQesthatmakeuptheprocess.ThesetypicallycorrespondtofuncQonalsilosthatcompleteeachstep.

Withineachcapability,themodelidenQfiessystemsorapplicaQonsthatareusedtoexecutethecapability.ThisiswherethemodelformsthealignmentbetweenbusinessandIT.

ArchimateNotaQon

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Products and Services

Valuable to the Customer

PRODUCT N

PRODUCT I

PRODUCT T PRODUCT Y

PRODUCT K

SERVICE D SERVICE N

SERVICE H SERVICE P

PRODUCT B SERVICE N

SERVICE T

PRODUCT S

SERVICE A

PRODUCT X

PRODUCT H

SERVICE O

PRODUCT N

PRODUCT E SERVICE C

SERVICE Q

SERVICE N

SERVICE T

SERVICE B

Customer Outcome CUSTOMER INTERACTION MAP, CUSTOMER SEGMENT ABC

Establishing my account is quick and simple…

Integration is quick and easy, with the right help available

Efficient, with choices that make it convenient

I know when the shipment will arrive

I can find out whether my shipments were delivered;

I get a meaningful resolution to my problem

“I want to set-up my account” “I want to get ready to send my products” “I want to send a shipment” “I need to know when my

shipment will arrive” “I want confirmation that my

shipments have arrived” “Something has gone wrong

with my delivery…”

% of accounts set-up in <X hours

% of accounts that utilise more than X

% of orders with no manual intervention

% of articles with at least 4 scans

Service Delivery Performance Metric

# of complaints per million products

R E S E A R C H E V A L U A T E P U R C H A S E U S E I N T E G R A T E S E R V E

Value to the Business

CUSTOMER BEHAVIOUR: UNDERSTAND TOUCHPOINTS ACROSS THE LIFECYCLE AND IDENTIFY THE JOURNEYS AND PAINPOINTS

Map the Customer personas into a customer interaction map to come up with the journey through the customer value chain & look for issues

1

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“ARCHITECTURE THINKING”

MOTIVATION MODEL BUSINESS MODEL

SERVICE MODEL

CAPABILITY MODEL

People

ROADMAP

GOVERNANCE

* Closed feedback loop to Motivation Model

Vision

Strategy

Blueprinting

Roadmapping

Governance

Information

Technology

Process

Design Thinking: Empathise, Define, Ideate, Prototype, Test

MARKET MODEL

MEANS ASSESSMENT

INFLUENCERS

ASSESSMENT

MEANS ENDS

MACRO ENVIRONMENT

INDUSTRY SCAN

SWOT PERFORMANCE •  Financial •  Customer •  Internal (current) •  Internal (long-term)

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MOTIVATION MODEL

BUSINESS CAPABILITIES

IM ROADMAP

GOVERNANCE

* Closed feedback loop to Motivation Model

Information

Process

MEANS ASSESSMENT

INFLUENCERS

ASSESSMENT

MEANS ENDS

MACRO ENVIRONMENT

INDUSTRY SCAN

SWOT PERFORMANCE •  Financial •  Customer •  Internal (current) •  Internal (long-term)

SOCIALISE WITH BUSINESS, LINK EIM EFFECTIVENESS TO BUSINESS GOALS AND RISK, OBTAIN CONSENSUS, MEASURE & MONITOR

LINKING INFORMATION CAPABILITY ROADMAP TO BUSINESS CAPABILITY, RISK AND MOTIVATION

Understand business motivation with respect to information management

Identify the critical business capabilities to support the strategies

Define roadmap – prioritised to support timely delivery of EIM capability linked to business need

1 2 3 Understand changing needs for a digital business

Identify the information risk appetite and risks

Assess how application strategies are impacted by low EIM capability maturity

Identify the EIM capabilities materially impacting business capability and information risk – pertinent to the business motivation

4

6 7 8 9 Measure and monitor performance

5 Assess how business capability effectiveness is materially impacted by low EIM capability maturity

1 2

3

4 6

8

7

Information Risk

Digital Requirements

9

APPLICATIONS

5

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MOTIVATION MODEL

CLOUD SERVICE OFFERINGS

CAPABILITY MODEL

ROADMAP

GOVERNANCE

* Closed feedback loop to Motivation Model

Information

Technology

Process

MEANS ASSESSMENT

INFLUENCERS

ASSESSMENT

MEANS ENDS

MACRO ENVIRONMENT

INDUSTRY SCAN

SWOT PERFORMANCE •  Financial •  Customer •  Internal (current) •  Internal (long-term)

SOCIALISE, OBTAIN CONSENSUS, MEASURE & MONITOR

CLOUD STRATEGY & ROADMAPPING JOURNEY

Understand the motivation for Cloud Understand the risk appetite of the business and the risk profile of the offering

Obtain consensus, support and commitment

1 2 3 Understand business requirements for Cloud

Identify and classify assets going into the Cloud

Assess the Cloud service offerings Define the roadmap

4

5 6 7 8 Measure and monitor performance

1 2

3 4 5

6

7

Information & Risk

CLOUD REQUIREMENTS

8 APPLICATIONS

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ROLES & OP. MODEL

HUMAN CENTRED SERVICE AND CAPABILITY DEVELOPMENT

CAPABILITY MODEL

ROADMAP GOVERNANCE

* Closed feedback loop to Motivation Model

MEANS ASSESSMENT

MOTIVATION MODEL

INFLUENCERS

ASSESSMENT

MEANS ENDS

SERVICE MODEL / CATALOGUE

WHAT

WHY

COMMUNICATION

ENGAGEMENT MODEL

DEMAND ANALYSIS SOURCING

BUSINESS CONTEXT

HOW

WHO

WHERE

WHEN

CAPABILITY ASSESSMENT

BUSINESS MODEL

CUSTOMER PERSONAS

VALUE PROP EMPATHY MAPS

CURRENT FUTURE

SERVICE DESIGN PROCESS

ENABLES

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THE BUSINESS OF ARCHITECTURE

ROADMAP

ROLES & OP. MODEL

GOVERNANCE

* Closed feedback loop to Motivation Model

MEANS ASSESSMENT

SERVICE MODEL / CATALOGUE COMMUNICATION

ENGAGEMENT MODEL

DEMAND ANALYSIS SOURCING

CAPABILITY ASSESSMENT

MOTIVATION MODEL

INFLUENCERS

ASSESSMENT

MEANS ENDS

BUSINESS MODEL

CAPABILITY MODEL

BUSINESS CONTEXT

Where

When

Who How

Why

What

Enables

MANDATE

SERVICE CO-DESIGN

CURRENT FUTURE

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CAPABILITY MODEL OVERLAYS Capability models and their overlays can reveal the answers to important business questions

BUSINESS CAPABILITY MODEL WITH STRATEGIC OVERLAY

BUSINESS CAPABILITY MODEL WITH CURRENT MATURITY OVERLAY

BUSINESS CAPABILITY MODEL WITH PAIN POINTS

BUSINESS CAPABILITY MODEL WITH INFLIGHT PROJECTS

What is important to my business? What are my strengths and weaknesses?

Where is my current investment focussed – CAPEX?

Where are my tactical and political pressures?

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BUSINESS CAPABILITY MODEL WITH STRATEGIC OVERLAY

BUSINESS CAPABILITY MODEL WITH CURRENT MATURITY OVERLAY

BUSINESS CAPABILITY MODEL WITH PAIN POINTS

BUSINESS CAPABILITY MODEL WITH INFLIGHT PROJECTS

Am I over or underspending?

Is my current investment portfolio dealing with tactical issues?

Is my strategy aligned with management issues / focus areas?

Am I able to achieve my strategy?

Capability models and overlays can reveal the answers to important business questions.

CAPABILITY MODEL OVERLAYS

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LOOKING FOR OPPORTUNITIES AND SWEETSPOTS

72

Capabilities with Strategic priorities

associated

CapabiliQeswithPain-pointsassociated

Sweetspots with no projects

Painpoints with no project

High priority with no projects

High priority with projects

Painpoints with projects

B

CD

E

F

A G

Sweetspot and low hanging fruit

In-FlightProjects

Investment with no identified digital value

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APPLY THE HEURISTICS TO EACH QUADRANT Different decisions occur in each quadrant. Positioning the degree of change (complexity) against value will allow us to apply these heuristics

Software Automation

Projects

Funds investment

Widget assembly

Credit card approval

Inventory Management

Outsourcing Projects

Major re-design projects

New Product design

Deals with other companies

International Delivery

On-line purchasing

ERP based process

improvement

Complex Processes, not part of company’s core competency: Outsource

Complex, dynamic processes of high value:

undertake business process improvement efforts that focus on

people

Straightforward, static commodity processes: use automated ERP-

Type applications and / or outsource

Straightforward, static, and valuable: automate

to gain efficiency

HIGH

HIG

H

LOW

LOW

Must be done but adds little value to product or services

Very important to success, high value added to products and services

STRATEGIC IMPORTANCE

CO

MPL

EXIT

Y A

ND

DYN

AM

ICS

Complex negotiation, design, or decision process

Many business rules; expertise involved

Some business rules

Procedure or simple algorithm

Organisation Heuristics

*Adapted from “Business Process Change” by Paul Harmon

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LOOK FOR ALIGNMENT BETWEEN CAPABILITIES, PROJECT EFFORT AND VALUE

Removed

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BUSINESS ARCHITECTURE AND APPLICATION PORTFOLIO MANAGEMENT

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B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 76

UNDERSTANDING CAPABILITIES AND THEIR RELATIONSHIPS HELPS IMPROVE COHERENCY ACROSS THE ENTERPRISE

Clearer visibility of synergies is required to consolidate strategic efforts across the major programs

Removed

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B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 77

UNDERSTANDING MATURITY HELPS IDENTIFY STRENGTHS AND WEAKNESS

PROCESS: Maturity Overlay: CMMI

Removed

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UNDERSTANDING THE RESOURCE MIX INSIDE A CAPABILITY HELPS FOCUS ON THE RIGHT LEVERS

PROCESS and APPLICATION: Issue and Hotspot Analysis

Removed

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OVERLAYING TECHNOLOGY AND INFORMATION HELPS IDENTIFY SYNERGIES BETWEEN THE PEOPLE, PROCESSES AND THE UNDERLYING TECHNOLOGY

APPLICATION: Functional Alignment to SAP Platform

Removed

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WHEN

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B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 83

CAPABILITIES AND CROSS FUNCTIONAL CAPABILITIES ARE EVALUATED IN LIGHT OF ALL THE CHANGE FACTORS

The capability mixes are evaluated against each scenario to determine the optimal path going forward

REQUIREMENTS: PROGRAM “X” REQUIRES A $100M 5-YEAR NET BENEFIT AND MUST BE IMPLEMENTED IN UNDER 3 YEARS.

BusinessModels

ValueStreams

Page 84: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 84

SEQUENCING PARADIGMS Mixing strategic value and complexity

StrategicValue

Complexity

100

90

80

70

60

50

40

30

20

10

0

0102030405060708090100

31

8

32

1316

1217

11327

2522

26

29

21 18

24

28

16

7

4

2030

23

3433

39

140

937

35

10

52

14638

19

Whatsequenceshouldbefollowed?

Page 85: Design of Business in an Age of Disruption

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TRANSITION PLANNING Look to mature capabilities through increments

Capabilities Basic Intermediate Advanced

Customer service

1. Service team trained and equipped

Marketing execution

2. Marketing playbooks automated

3. Marketing and sales campaign pilot

5. Advertising revenue adjustment calculation

7. Marketing and sales campaign pilot

6. Customer sat score & stakeholder sat score

Sales execution

1 2 3 4 5

Current State Future State

2. Sales playbooks automated

4. Marketing and sales campaign prototype

5. Sales team training

7. Cross functional process automation

6. Pilot

1

2 3 7 8

7 6 5 4 2

2

3

7

8

9

1

7

6

5

4

2

Maturity

9

Capabilities increase and decrease in maturity over time depending upon outcomes. Plan for increments that can be absorbed by the business.

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TELLING THE STORY

•  Introduces current state for applications, integration, data and technologies

•  Future State with workshop inputs - demonstrates how the future state was derived

•  EA Operating Model and next steps

•  Introduce Project context •  Organisation motivations

•  Organisation capabilities

•  Illustrates the use of the overlay models

•  Highlights potential gaps

Business Anchor Model

A2

Business Motivation Model

A2

Business Anchor Model Constraints Overlay

A2

Business Anchor Model Investment Overlay

A2

Applications Portfolio Current State

A2

Technologies Portfolio Current State

A2

Conceptual Data Model Security Overlay

A2

Applications Interaction Model Current State

A2

Applications Interaction Model Future State

A2

Technologies Roadmap

A2

Applications Roadmap

A2

Project on a page

A3

Business Architecture Findings

A3

Business Architecture Findings

A3

Applications Architecture Findings

A3

Applications Options Workshop Integration

A3

Technology Options Workshop Slide

A3 EA Operating Model

A3

Recommendations

A3

Recommendations

A3 A3

Business Architecture Findings

1 2 5 4 3

1

2

5

4

3

Page 88: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 88

SOCIALISE FOR BUY-IN

These methods help the architecture speak for itself

Page 89: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 89

ABOUT

zero HOURS A DAY BACK OFFICE VENDOR ALIGNMENT

MORE THAN 1600 PEOPLE TRAINED IN ARCHITECTURE PRACTICES (AND RISING)

12 YEARS IN BUSINESS 8

GLOBAL OFFICES 1600MORE THAN 10,000 DAYS OF ARCHITECTURE SERVICES DELIVERED LAST YEAR

10,000

one COMMON METHOD

20 four

sixOPERATING IN 6 CONTINENTS

Page 90: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 90

OUR SERVICES Servicing the Strategy and Architecture needs of Global Organisations

STRATEGY CONSULTING ›  Business Architecture ›  Strategic Services & Operating Model

Design: »  Business Services & Capabilities »  IT Services & Capabilities

›  Segment Strategies and Roadmaps: »  Customer Experience & Digital »  Enterprise Information Management »  Big Data Analytics »  Applications »  Cloud & Infrastructure »  Security, Risk & Resilience »  Innovation Management

PRACTICE DEVELOPMENT ›  Architecture Service Model Design ›  Architecture Operating Model Design ›  Service and Capability Readiness

Assessment ›  Professional Training and Certification

(Business Architecture, Information Management, TOGAF®, CDMP®, ArchiMate® and Design Thinking)

›  Project Architecture Resources ›  Architecture Talent Strategy and

Professional Development

›  Architecture Back Office Services

Page 91: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 91

Source: Building Bridges to the Promised Land, The CMO Club, 2014

THE CMO AND CDO DILEMMA

Page 92: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 92

WHAT WE HAVE FOUND IN LARGE ACCOUNTS An ownership gap for business architecture exists - Lines of responsibility around coherency and business architecture, are often unclear

Cohesion Mandate Undefined - Enterprise Planning Ownership

Ent

erpr

ise

Per

form

ance

C

apab

ilitie

s

X-F

unct

iona

l C

apab

ilitie

s

Func

tiona

l C

apab

ilitie

s

CONTEXT Markets

Industries

Customers

Market Segment

Channels

Customer Relationships

Value Proposition

Offering: Services/Products

Processes/ Value Chains

Capabilities

Business Service

Functions

Data

Applications

Technology

MARKET MODEL

OPERATING MODEL

SERVICE MODEL

Strategic Architecture

Mandate – Business

Ownership

IT Architecture Mandate –

IT Ownership

Business Architecture

Mandate Undefined

Page 93: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 93

ABSTRACT

CONCRETE

PROBLEM SOLUTION

Problem Definition Influencers

Values Drivers

Value System Engineering Business Scenario Value Proposition

Business Model Canvas

Business Motivation Model

Value Chain Capabilities

Cross-Functional Capabilities Capability Overlays

Roadmap & Planning

THE ADM ACROSS THE Z MODEL

Page 94: Design of Business in an Age of Disruption

B U S I N E S S D E S I G N B Y C R A I G M A R T I N - E N T E R P R I S E A R C H I T E C T S / F H O | PAGE 94

QUESTIONS?