Re-Positioning the value of the architecture practice

C A P A B I L I T Y S T A T E M E N T - E N T E R P R I S E A R C H I T E C T S © 2 0 1 4 | PAGE 1

RE-POSITIONING THE VALUE

OF THE ARCHITECTURE

PRACTICEPRESENTED TO THE OPEN GROUP TUESDAY, 57HOCTOBER 2014

PRESENTED BY:

Craig Martin Chief Architect, Enterprise Architects


ABOUT E

zeroHOURS A DAY

BACK OFFICEVENDOR ALIGNMENT

MORE THAN 1600 PEOPLE

TRAINED IN ARCHITECTURE

PRACTICES (AND RISING)

12YEARS IN BUSINESS

GLOBAL OFFICES1600

MORE THAN 10,000 DAYS OF

ARCHITECTURE SERVICES

DELIVERED LAST YEAR

10,000

one COMMON METHOD

20four

sixOPERATING IN

6 CONTINENTS


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


OUR CLIENTS


K


* From Roger Martin (2009) The Design of Business

GOAL: Exploitation;

Reliability

Produce consistent,

predictable outcomes

GOAL: Exploration; Validity

Produce outcomes that

meet an objective

THE RESULTS OF DISRUPTION A stronger focus on the exploration and intuitive aspects of business are producing a

strong drive for innovation within the business and in corresponding business models

Unresolved

Business

Challenges

Heuristics

Rules of

thumb

Robust, repeatable

and replicable

processes

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


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

MP

LEX

ITY

AN

D D

YN

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 DISRUPTIONTHE SPEED THROUGH THE KNOWLEDGE FUNNEL I S ALSO INCREAS ING

Source: Adapted from “Business Process

Change” by Paul Harmon

GOAL: Reliably produce

consistent, predictable

outcomes

GOAL: Validity- Produce

outcomes

that meet desired

objectives


THE RESULTS OF DISRUPTIONTHE COMMODIT Y SPACE I S GROWING, MAKING THE D IFFERENTIAT ION

SPACE MORE COMPETIT IVE

Non-core but complex

- Outsource

Innovation, chaos &

unresolved mysteries

HIGH

HIG

H

LOW

LO

W


product or services

Very important to success, high value added to

products and services


CO

MP

LEX

ITY

AN

D D

YN

AM

ICS


or decision process

Many business rules; expertise

involved

Some business rules

Procedure or simple algorithm

Non -Core

Competencies


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

LO

W


product or services

Very important to success, high value added to

products and services


CO

MP

LEX

ITY

AN

D D

YN

AM

ICS


or decision process

Many business rules; expertise

involved

Some business rules

Procedure or simple algorithm

Non -Core Competencies


Competencies

Everyday, highly repeatable and

automated

Make repeatable

and reliable to

gain efficiency

Core Competitive

Competencies

Opportunity or Threat?


THIS ACCELERATION

IS PUTTING PRESSURE ON

CURRENT BUSINESS MODELS

Technology

commoditising from

below

Business roles taking on more

architecture accountabilities


Utility

(Foundation)

Innovate

Build

Advantages

Assemble

Prolong

Advantages

Mix

Reduce

Disadvantages

THE CREATIVE COMMONS GROWTHD

ifferentiatio

n


THE GROWTH OF BUSINESS UTILITY

Unique differentiators and offerings are becoming commonplace through new value

exchange models

The Telecommunications PCF features processes for infrastructure planning, enterprise architecture management, defining channel strategy and service levels, new service development and rollout, supply chain management, service activation, and customer relationship management.


A GAP IS EMERGING BETWEEN THE UTILITY AND THE MIX ASPECTS OF BUSINESS

Utility

(Foundation)

Innovate

Build Advantages

Assemble

Prolong Advantages

Mix

Reduce Disadvantages


THE GAP BETWEEN THE C’S

37%

34%

29%

22%

Customer

Loyalty

Increasing

flexibility & speed

Reducing Costs

Increasing

Innovation

Percentage of CEOs reporting

COMMON DRIVERS FOR INCREASING BUSINESS FLEXIBILITY

1. Customer demand for quick turnaround and increased need

for customisation

2. Shorter decision cycles

3. Increased need for product innovation

4. Globalisation of corporate footprint

Where are the CIO challenges?


THE GAP BETWEEN THE C’S

Yawning gap between the CEO and the traditional CIO landscape

*Infotech executive research


…IF HISTORY IS ANYTHING TO

GO BY…

Business architecture

holds the potential to

impact organisations’

progress on strategic

objectives.

Leverage business

architecture to

mitigation failure

points across the cycle

One-third of firms fail

to achieve expected

results from annual

strategic plans.

More than half of all

business projects fail.

Forty-six percent of

business failures stem

from misguided strategies.

*Corporate Executive Board


BUSINESS WANTS TO MIX BETTER AND FASTER, AND IF DONE EFFECTIVELY, THE RESULTS SPEAK FOR THEMSELVES

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

mar

gin

, 20

03

-20

07

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

A coherent organization is one that is thought of and executed as a whole


Improve project

performance

Improve enterprise wide

investment performance

Improve Business Performance

Improve Market Performance

A

B

VA

LUE

MANDATE

C

E

Improve Product and & Service

PerformanceD

IMPROVING ARCHITECTURE VALUE

By EA is often stuck with an old mandate with diminishing utility value

*Adapted from Ruth Malan, Dana Bredemeyer

EA = IT Architecture

EA = Enterprise-Wide

IT Architecture (EWITA)

Improve IT performance

EA = Business Architecture

(BA) + EWITA

Improve Business Performance

EA = Strategic Enabler

+ BA + EWITA

(Shareholder Value)

EA = Product Architecture

+ BA + EWITA

Improve Product/Service

Performance

Reduce

Operating Costs

Positioned For Growth & Change

Focus on Strategic Imperatives

Enhanced

Adaptable

Frontier

Influential

Utility Predictable


EVIDENCE OF THE ERODING GOALS PATTERNS IS SEEN IN THE CIO AND CEO

RELATIONSHIP


Catch 22:

The CEO is looking for more value, but the CIO has a

mandate of diminishing value that’s often focussed on

keeping the lights on


THIS AWARD IS TELLING OF THE SHIFT. CIO OF THE YEAR: ITNEWS BENCHMARK AWARD


THREAT OR OPPORTUNITY FOR THE

ARCHITECTURE FUNCTION?


K

WHO?


WHAT WE HAVE FOUND IN LARGE ACCOUNTS

Cohesion Mandate

Undefined - Enterprise Planning Ownership

An ownership gap for business architecture exists - Lines of responsibility around coherency

and business architecture, are often unclear

En

terp

rise

Perf

orm

an

ce

Capabilit

ies

X-F

un

ctio

nal

Capabilit

ies

Fu

nct

ion

al

Capabilit

ies

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


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

MANAGEMENTBUSINESS ARCHITECTURE

ENTERPRISE ARCHITECTUREPRODUCT & 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


MISALIGNMENT OF DISCIPLINESIn navigating the minefield between strategy and execution there are multiple possible failure points

STRATEGY PROJECTS

Strategy not sufficiently

tied to operations

Needed capabilities not

properly understood or

measured

Planners not accountable

for delivery

Benefits aren’t

quantified or traced

back to original goals

The drivers of strategy

are often misaligned

This often leads to some typical

stakeholder issues regarding

transformation exercises

Are we investing in the right areas

across the enterprise?

Is my investment portfolio

balanced across all of the

economic value add dimensions?

Are the strategic programs aligned,

or for that matter, are they the right

strategic programs?

There is a lot of activity going on

out there, how do I know we are

doing the right things?

Where can we take advantage of

synergies across the major

strategic programs?


FRAGMENTATION BEGINS IN STRATEGIC PLANNING

Scenario 1: Business improvement - spawning initiatives from the strategy map

STRATEGIC THEMES

Initiative 5

Initiative 6

STRATEGIC THEMES

Initiative 1

Initiative 2

STRATEGIC THEMES

Initiative 3

Initiative 4

Mandate: Improve enterprise wide program and

portfolio performance

Business Unit 1

Program 1

Program 2

Business Unit 1

Program 1

Program 2

Business Unit 1

Program 1

Program 2

Initiatives straight from strategy often results in loss of cohesion


ARCHITECTURE AS AN AFTERTHOUGHT

Strategic

Planning

Business

Planning

Portfolio and

Project

Management

ArchitectureSolution

Architecture

Solution

Development

Scenario 1: Business improvement - spawning initiatives from the strategy map. PMO drives the

architecture efforts


MISALIGNMENT TENDS TO DELIVERY ISSUES

› General trend and perception is that projects, specifically those of an IT nature, did not deliver to

expectations.

› The gap between the CIO and the perception of success vs the CEO and the perception of success is

telling of the growing divide between business and IT.

› The delivery trend, driven by quarterly reporting cycles, is not going anywhere, this makes PMO type

activities valuable

The percentage of projects that exceeded, met, or failed to meet business expectations ? As well as those that were outright cancelled

CEO CIO



UNIFYING THE ENTERPRISE

Scenario 2: Business Transition - developing the unified business model

STRATEGIC THEMES

Capability 5

Capability 6

STRATEGIC THEMES

Capability 1

Capability 2

STRATEGIC THEMES

Capability 3

Capability 4

Mandate: Improve Business Performance

Business Unit 1

Program 1

Program 2

Business Unit 1

Program 1

Program 2

Business Unit 1

Program 1

Program 2

Creating a single unified business model helps build cohesion across the enterprise


ARCHITECTURE FOR PORTFOLIO AND INVESTMENT ALIGNMENT

Strategic

Planning

Business

PlanningArchitecture

Portfolio and

Project

Management

Solution

Architecture

Solution

Development

As business architecture provides more value, its is being positioned above the delivery and execution space


PLANNING THE ENTERPRISE

Injecting Business Architecture into the strategic scenarios will Improve the Strategic Decisions as well as the execution of that strategy

Mandate: Improve

market performance

Scenario 3: Planning and Performance - defining the

business model for candidate strategic scenarios

Mission Vision VISIONARY

Str

ate

gie

sG

oals

ST

RA

TEG

IC

Tactics Objectives TACTICAL

Semi

Integrated

Universal

Bank

Product

Specialist

Customer

Owner

Infrastructur

e Provider


‘Enterprise Lifecycle's

2014 © Enterprise Architects PTY LTD

PER

OR

MA

NC

E

TIME

ENTERPRISE

BRAND PLATFORM

BUSINESS MODEL

BUSINESS CAPABILITIES

PRODUCT

CONSTANT CHANGE IS MOVING UPWARDS FASTERORGANIZATIONS…AND ARCHITECTS NEED TO BE ABLE TO PROVIDE THE ME AN S

TO ENABLE THIS CHANGE


2007: CURRENT RECESSIONCOST MODEL, SERVICE MODEL, REVENUE MODEL, PERFORMANCE

MODEL, VALUE MODEL, OPERATING MODEL

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


ARCHITECTURE FOR INTEGRATION OF PLANNING EFFORTS

Strategic

PlanningArchitecture

Business

Planning

Portfolio and

Project

Management

Solution

Architecture

Solution

Development

Facilitating Business Architecture as a strategic tool in the planning process is where the greatest value lies


Enterprise Design

BRINGING HUMAN CENTRED DESIGN TO PLANNING AND ARCHITECTURE

Strategic

PlanningArchitecture Service Design

Business

Planning

Portfolio and

Project

Management

Solution

Architecture

Solution

Development

Combining business architecture with design thinking provides a much broader value proposition where customer experience and value is linked directly to the architected components of the business. In other words the entire enterprise is architected to improve the experience the end customer has with the organization. Outside in as opposed inside out.

Business Analysis


ARCHITECTURE SERVICES DESIGN

I N T E R N A L

C U S T O M E R

Cx ExO P.

M O D E L

M A R K E T

M O D E L

Outside In

A R C H I T E C T U R E

O R G A N I S A T I O N

S E R V I C E

M O D E L

Communication

Design

STAKEHOLDERS

EXECUTIVE

IT EXECUTIVE

PRODUCT & SERVICE

Service (What) Capability (How)


CROSS DISCIPLINE TEAMS

Creation of a Unified Team of cross enterprise disciplines

Change Manager

Finance

PMO

Business Improvement

Strategy

Technology

• Combination of People, Process & technology to drive out an outcome through projects

Designers


K


THE BUSINESS OF

ARCHITECTURE


ARCHITECTURE PRACTICE MATURITY

ISOLATED OPTIMIZING

LOSING FRAGMENTED

INTEGRATION IN THE ORGANIZATION

LEV

EL O

F A

RC

HIT

EC

TU

RA

L T

HIN

KIN

G

L O W H I G H

LO

WH

IG

H


ROLES &

OP. MODEL

THE BUSINESS OF ARCHITECTURE

CAPABIL IT Y

MODELROADMAP

GOVERNANCE

* Closed feedback

loop to

Motivation Model

MEANS ASSESSMENT

MOTIVATION

MODEL

INFLUENCERS

ASSESSMENT

MEANS ENDS

CATALOGUE

S ERVICES

MANDATE

WHAT

WHY

COMMUNICATION

ENGAGEMENT

MODEL

DEMAND

ANALYS IS S OURCING

CURRENT FUTURE

BUSINESS CONTEXT

HOW

WHO

WHERE

WHEN

CAPABIL IT Y

AS S ESSMENT

ENABLES


SERVICE DESIGN

ARCHITECTURE PRACTICE DEVELOPMENT

CAPABILITY MODEL CAPABILITY ASSESSMENTPRACTICE MOTIVATION MODEL INTERNAL COMMUNICATIONS

ARCHITECTURE ENGAGEMENT

MODEL

ARCHITECTURE OPERATING

MODEL

ARCHITECTURE DEMAND

ANALYSIS

SOURCING STRATEGY PRACTICE IMPROVEMENT

ROADMAP


K


CO-DESIGN SERVICES THROUGH THE EYES, EMOTIONS AND NEEDS OF THE CUSTOMER

C U S T O M E R P E R S O N A S

S E R V I C E M O D E LE M PA T H Y M A P

V P C A N V A S


K


COMMUNICATION STRATEGY


COMMUNICATION MANUAL


K


A METHOD OF EXECUTION

TOGAF provides a more sophisticated method of the integration of the disciplines but does not provide the detailed content and methods for the domains

Preliminary

A.

Architecture

VisionB.

Business

Architecture

C.

Information

Systems

Architectures

F.

Migration

Planning

D.

Technology

ArchitectureE.

Opportunities &

Solutions

G.

Implementation

Governance

H.

Architecture

Change

Management

Requirements

Management

• The business “hat” is worn in these phases since it involves the

innovate, mix and assemble activities

• The strength of the business architect in this space is

understanding the context and applying the right tools for that

context

• At this point it is advantageous to introduce the motivation

model, with specific reference focus as to how the customer

experience drives out the outcomes in the motivation model.

• The capability model often does not resonate here - so the

introduction of the underlying resource mix is more effective

e.g.. People, Process and tools

• A First iteration of these phases drives out the key enterprise

differentiation resources required to reach the outcomes

• A Second iteration drives out the products and services model

(4P’s - Product, Place, Price & Promotion) and what cross

functional resources we need to deliver these

• Journey management is a crucial aspect of the business

architect during this phase

• Some limited BABOK and BIZBOK techniques support this area


A METHOD OF EXECUTION

The Business Architect wears two hats when executing through this method

Preliminary

A.

Architecture

VisionB.

Business

Architecture

C.

Information

Systems

Architectures

F.

Migration

Planning

D.

Technology

ArchitectureE.

Opportunities &

Solutions

G.

Implementation

Governance

H.

Architecture

Change

Management

Requirements

Management

• The business architect wears the architecture “hat”

in these phases since they involve the reliability and

utility activities

• The business architect has to understand architecture

in order to apply it and help the teams downstream

• This space requires more of the traditional

architecture models - the people, process and tools

resources can now be assembled and clustered into

capabilities

• The architecture community is strong in this space but

tends to be weak at requirements management

across the whole process

• Techniques and resources within the BizBok will

support the business architect efforts within these

phases

• There are a number of techniques within the BABOK

that the business analyst will use in supporting the

business architect across these phases


K

WHY

WHAT

HOW

WHO

WHERE

WHEN


K


CAPABILITY ASSESSMENT

Assess the readiness of your

architecture capabilities to

enable your services


K


ARCHITECTURE DEMAND ANALYSIS


SOURCING STRATEGY

D E L E G AT E

PA R T N E R

M A N A G E

C O R EHIGH

HIGH

RE

QU

IR

ED

OR

GA

NIS

AT

IO

NA

L IN

TIM

AC

Y

S E R V I C E D E M A N D

Solution design

and reviewStrategic

Planning

Vendor

management

Costing

and

estimation

Technology

management

Technical

SME

Business

Analysis

Portfolio

Management

LEGEND

RESOURCE POOL

Large(>10FTE)

Medium(<10FTE)

Small(<2FTE)

OW

NER

SH

IP

Internal

External


K

RoadmapCurrent Strategy and Architecture Team

Jan 14

Apr 14 Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17

Sample Strategy and Architecture Team Roadmap – Roles Services, and Capabilities Roadmap

Version: 1.0.0

Created: 28/04/2014 by Enterprise Architects

Updated: 14/05/2014 by Enterprise Architects

Sources:

Description: Provides a view of the roadmap of activities necessary to realise the future state architecture. The primary intent of the roadmap is to inform the detailed program of work.

Concerns Addressed: What does the program of work look like? Where are the dependencies across the program of work? How does the program of work align to the IT Department objectives and principles?

Stakeholders: IT Executives, Strategy and Architecture Team Manager, Architects, Business Executives, Business Managers

© Enterprise Architects (Vic) Pty Ltd 2014

Horizon 1 · Understand what Business needs and the role IT should play

· Fix internal process bottlenecks, deliver some quick wins

· Design appropriate organisation & processes for future

Horizon 2· Build the IT capability to deliver what the

business needs (people, structure, governance,

technology, focus)

· Support Transition Activities

Horizon 3· Put the IT capability into action to deliver

transformational results

Current Services

Current State Capabilities

Owns and governs

Strategy &

Architecture

Manager

Practice CoordinatorPrincipal IT

Architect

Enterprise Architect

– Digital & Analytics


- Security

Lead Architect /

Senior Solution

Architect

Solution Architect

Owns and governs Owns and governs Owns and governsOwns and governs

Business Solutions

Architect


– Applications &

Integration


– Technology


– Information

Strategy

Development

Blueprint Management Roadmap

Management

Strategic

Change

Program

Development

IS Asset

Lifecycle

Management

Solution

Delivery

Management

Solution

Architecture

Delivery

Stakeholder

Value

Analysis

Architecture Governance

Principles

Management

Standard

Management

Policy

Management

IT

Architecture

Project

Governance

Architecture

Requirements

Management

Architecture

Risk

Assessment

Compliance

Management

IT

Architecture

Review Board

Management

Technology

Watch

Trend

Analysis

IT

Architecture

Change

Management

Solution

Architecture

Options

Analysis

Current State

Application

Architecture

Management

Target State

Application

Architecture

Development

Architecture

Impact

Assessment

Current State

Information

Architecture

Management

Current State

Technology

Architecture

Management

Current State

Security

Architecture

Management

Target State

Information

Architecture

Development

Target State

Technology

Architecture

Development

Target State

Security

Architecture

Development

Capture

Current State

Business

Architecture

Capture

Target State

Business

Architecture

IT

Architecture

Roadmap

Development

IT

Architecture

Portfolio

Management

IT Transition

Architecture

Management

Proposed Strategy & Architecture Team

Target Services

Target State Capabilities

Owns and governs

Strategy &

Architecture

Manager

Practice CoordinatorPrincipal IT

Architect


– Digital & Analytics


– Security

Lead Architect /

Senior Solution

Architect

Solution Architect

Owns and governs Owns and governs Owns and governsOwns and governs

Business Solutions

Architect


– Applications &

Integration


– Technology


– Information

Strategy

Development

Blueprint Management Roadmap

Management

Strategic

Change

Program

Development

IS Asset

Lifecycle

Management

Solution

Delivery

Management

Solution

Architecture

Delivery

Stakeholder

Value

Analysis


Principles

Management

Standard

Management

Policy

Management

IT

Architecture

Project

Governance

Architecture

Requirements

Management

Architecture

Risk

Assessment

Compliance

Management

IT

Architecture

Review Board

Management

Technology

Watch

Trend

Analysis

IT

Architecture

Change

Management

Solution

Architecture

Options

Analysis

Current State

Application

Architecture

Management

Target State

Application

Architecture

Development

Architecture

Impact

Assessment

Current State

Information

Architecture

Management

Current State

Technology

Architecture

Management

Current State

Security

Architecture

Management

Target State

Information

Architecture

Development

Target State

Technology

Architecture

Development

Target State

Security

Architecture

Development

Capture

Current State

Business

Architecture

Capture

Target State

Business

Architecture

IT

Architecture

Roadmap

Development

IT

Architecture

Portfolio

Management

IT Transition

Architecture

Management

En

ga

ge

me

nt

Pra

cti

ce

Bu

ild

ing

Ex

ec

uti

on

& D

eliv

ery

Go

ve

rna

nc

e

1/06/2014 - 1/03/2015

Communications Strategy

1/03/2015 - 1/12/2015

IT Department Socialisation

and Awareness

Campaign

1/03/2014 - 1/06/2014

Operating Model Development

Roles – Existing Roles – Non-Existent

Services – Offered Services – Partially Offered Services – Not Offered

ProcessPeople Info. Tech.

N/A N/AN/A N/A

Capability Maturity –

Non-Existent ProcessPeople Info. Tech.

N/A N/AN/A N/A


initialProcessPeople Info. Tech.

N/A N/AN/A N/A


DevelopingProcessPeople Info. Tech.

N/A N/AN/A N/A


DefinedProcessPeople Info. Tech.

N/A N/AN/A N/A


ManagedProcessPeople Info. Tech.

N/A N/AN/A N/A


Optimising

Roles – Non-Existent

Services – Offered Services – Partially Offered Services – Not Offered


N/A N/AN/A N/A


Non-Existent ProcessPeople Info. Tech.

N/A N/AN/A N/A


initialProcessPeople Info. Tech.

N/A N/AN/A N/A


DevelopingProcessPeople Info. Tech.

N/A N/AN/A N/A


DefinedProcessPeople Info. Tech.

N/A N/AN/A N/A


ManagedProcessPeople Info. Tech.

N/A N/AN/A N/A


Optimising

Roles – Existing1/06/2014 - 1/09/2014

Onboarding and Provisioning Approach

1/03/2015 - 1/09/2015

Knowledge Management and Architecture Repository strategy

1/12/2015 - 1/09/2016

Mature Portfolio Management

1/06/2015 - 1/12/2015

Current State Blueprinting

15/09/2015 - 1/03/2016

Target state Blueprinting

1/03/2016 - 1/09/2016

Architecture Roadmapping

1/12/2014 - 1/06/2015

Enrich Architecture Governance

1/12/2015 - 1/12/2016

Business Socialisation

1/03/2017 - 1/09/2017

1/12/2016 - 1/09/2017

Business Embedment

1/09/2014 - 1/03/2015

Architecture Process Specification

1/03/2016 - 1/09/2016

1/12/2015 - 1/09/20161/03/2015 - 1/12/2015

Build Program Architecture Capability

1/06/2015 - 1/03/2016

Uplift Solution Architecture Capability

1/12/2015 - 1/06/2016

Architecture Strategy Definition

1/09/2016 - 1/03/2017

Embed Technology Innovation

ProjectsProjectsContinuous Improvement

Activities

Initiative

Dependency

Iteration and

Collaboration

PrinciplesObjectives & Themes

Architecture Principles

Principle BP01: Apply Principles Universally

Principle BP02: Proactive Business Leadership

Principle BP03: Recognise IT Department Responsibility

Principle BP04: Manage Enterprise Debt Value (EDV)

Principle BP05: Protect organisation DNA

Principle BP06: Think Strategically

Principle BP07: Business Continuity, Disaster Recovery and Contingency

Planning

Principle BP08: Compliance

Principle BP09: Have a Sound Business case

Principle BP10: Reduce Complexity

Principle BP11: Avoid Under/Over Engineering

Principle BP12: Be Service Oriented

Principle BP13: Reduce Repetitive Manual Processes

Principle BP14: Open Integration

Principle AP01: Ease-of-Use

Principle AP02: Configure before Customisation

Principle AP03: Reuse before Lease before Buy

before Build

Principle AP04: Application Security

Principle DP01: Data is an Asset

Principle DP02: Data Sharing

Principle DP03: Data Accessibility

Principle DP04: Common Vocabulary

Principle DP05: Data Security

Principle TP01: Increase Technology

Independence

Principle TP02: Reduce Technology Diversity

Business Principles Application Principles

Data Principles

Technology Principles

Strategy Architecture Team

Drivers

Vision

Mission

The Strategy and Architecture team applies IT architectural thinking across the enterprise, and enables sustainable competitive advantage by identification and design of the organisation’s IT assets ensuring they are fully leveraged to

add value and meet the strategic agenda.

The Strategy & Architecture team will be a valued partner of the Business Units, and

contribute to business value by enabling the enterprise though provision of differentiated

and innovative IT services and solutions to achieve the organisation’s vision.

The IT Department needs

to effectively respond to,

influence and deliver the

strategic IT needs of the

organisation’s Business Units

Develop an architecture that

supports the target TCO for

the organisation

Minimise the operational

risk associated with the

organisation’s architecture

S&A a trusted advisor to the business units, maximising leverage and

growth of new and existing IT assets, to enable competitive

differentiation and realisation through strong alignment of IT and

Business group strategies.

Remove redundancy through rationalisation across the architecture

Realise operational efficiency through the simplification of the

architecture

Introduce flexibility, agility and opportunity to innovate through an

architecture that enables the organisation to effectively and

proactively respond to the business environment and demands

Establish manageable IT controls to effectively respond to market

factors

Draw attention and focus to the role of IT in the context of Strategic,

Business Critical and Differentiation opportunities and initiatives. S&A

a key influencer in Business Capability planning and realisation,

ensuring alignment of the project portfolio to enterprise goals.

Enable differentiated Technology and Business service offerings that

are aligned to Business and Customer criticality and impact.

Provide a sustainable architecture for the organisation delivering

operational stability

Trusted advisor during procurement of Vendor and Partner IT

services, providing insight and governance into organisational fit,

impact and operational and architecture risk profiling.

The organisation’s IT architecture enables compliance with industry,

regulatory and contractual obligations.

creates

creates

creates

creates

createscreates

creates

createscreates

creates

Theme 10:

Adhere to Risk &

Regulatory Compliance

T10

Theme 9:

Inform Vendor

Procurement

T9

Theme 8:

Uplift Governance

Processes

T8

Theme 7:

Foster Innovation

Agenda

T7

Theme 6:

Mature the

S&A Practice

T6

Theme 5:

Reduce IT Department

Operational Costs

T5

Theme 4:

Drive “Fit for Purpose”

Design and Focus

T4

Theme 3:

Improve Portfolio

Planning & Design

T3

Theme 2:

Influence Strategy

Development

T2

Theme 1:

Organisational

Engagement

T1The S&A Mandate and Service offering are well communicated and

understood across the organisation.

S&A viewed as 'key advisors' by Business stakeholders and provide advice

on best practice to apply Technology solutions to solve business problems.

Focus is shifted to initiatives and opportunities

that target major business value.

Able to identify key gaps in IT Department capabilities and

develop a business case for investment prioritisation to resolve.

S&A is able to optimally shape the Portfolio Planning

Design to maximise investment and business outcomes.

Defined a useable Reference Architecture

to support Portfolio planning.

Identifies business critical Systems and Applications. Applications

enhancements are aligned with Criticality.

Opportunities to reduce the IT Department’s cost profile and complexity are

identified and are built into investment and portfolio plans.

Define how to build and represent enterprise architecture across the

organisation.

Improvement opportunities are identified and improve use, quality and

efficiency across Applications, Technologies and Information.

Deep awareness of Technology Industry Trends, practices and Solutions.

S&A able to proactively match innovation opportunities to business problems.

The Enterprise architecture influences procurement and negotiations with

Vendors.

S&A leads a culture change across the IT Department and 'fosters' an

innovation culture.

Provide Technology solutions that match Business Needs.

Establishes the Strategic Steering committee with a purpose to govern

strategy and roadmaps.

Defines a fit for purpose Architecture to meet regulatory and compliance

requirements and agreed risk profiles.

T1 T1 T1 T1

T10T9T5T4

T5T4

T9T5T3

T7

T2

T6

T3

T6T4

T8

T6

T6

T6

T6


N/A N/AN/A N/A

Architecture Engagement Management


N/A N/AN/A N/A

Architecture Practice Management


N/A N/AN/A N/A

Architecture Support for Enterprise Strategy


N/A N/AN/A N/A

Architecture Support

for Projects


N/A N/AN/A N/A


for Programs &

Portfolio Management


N/A N/AN/A N/A



N/A N/AN/A N/A

Solution

Architecture

Development


N/A N/AN/A N/A

Program

Architecture

Governance


N/A N/AN/A N/A

Project

Architecture

Governance


N/A N/AN/A N/A

Architecture

Quality

Assurance

ManagementProcessPeople Info. Tech.

N/A N/AN/A N/A

Technology

Research


N/A N/AN/A N/A

Technology

Innovation


N/A N/AN/A N/A

Architecture

Blueprint

Development

Management


N/A N/AN/A N/A

Architecture

Roadmap

Development &

Management


N/A N/AN/A N/A

Program

Architecture

Development


N/A N/AN/A N/A

Architecture

Support

Program

InceptionProcessPeople Info. Tech.

N/A N/AN/A N/A

Architecture

Budget &

Estimate

DevelopmentProcessPeople Info. Tech.

N/A N/AN/A N/A

Architecture

Practice

Governance


N/A N/AN/A N/A

Architecture

Repository

Management


N/A N/AN/A N/A

Architecture

Demand

Management


N/A N/AN/A N/A

Architecture

SLA

Management


N/A N/AN/A N/A

Architecture

Performance

Management


N/A N/AN/A N/A

Architecture

Talent &

Resource

Management


N/A N/AN/A N/A

Strategic

Vendor

Engagement


N/A N/AN/A N/A

Architecture

Stakeholder

Management


N/A N/AN/A N/A

Architecture

Communication

Strategy &

Execution


N/A N/AN/A N/A

Architecture

Practice

Improvement


N/A N/AN/A N/A

Architecture

Partner

Management


N/A N/AN/A N/A

Architecture

Practice Risk

Management


N/A N/AN/A N/A

Strategy

Development


N/A N/AN/A N/A

Architecture Engagement Management


N/A N/AN/A N/A

Architecture Practice Management


N/A N/AN/A N/A

Architecture Support for Enterprise Strategy


N/A N/AN/A N/A


for Projects


N/A N/AN/A N/A


for Programs &

Portfolio Management


N/A N/AN/A N/A



N/A N/AN/A N/A

Solution

Architecture

Development


N/A N/AN/A N/A

Program

Architecture

Governance


N/A N/AN/A N/A

Project

Architecture

Governance


N/A N/AN/A N/A

Architecture

Quality

Assurance

ManagementProcessPeople Info. Tech.

N/A N/AN/A N/A

Technology

Research


N/A N/AN/A N/A

Technology

Innovation


N/A N/AN/A N/A

Architecture

Blueprint

Development

Management


N/A N/AN/A N/A

Architecture

Roadmap

Development &

Management


N/A N/AN/A N/A

Program

Architecture

Development


N/A N/AN/A N/A

Architecture

Support

Program

InceptionProcessPeople Info. Tech.

N/A N/AN/A N/A

Architecture

Budget &

Estimate

DevelopmentProcessPeople Info. Tech.

N/A N/AN/A N/A

Architecture

Practice

Governance


N/A N/AN/A N/A

Architecture

Repository

Management


N/A N/AN/A N/A

Architecture

Demand

Management


N/A N/AN/A N/A

Architecture

SLA

Management


N/A N/AN/A N/A

Architecture

Performance

Management


N/A N/AN/A N/A

Architecture

Talent &

Resource

Management


N/A N/AN/A N/A

Strategic

Vendor

Engagement


N/A N/AN/A N/A

Architecture

Stakeholder

Management


N/A N/AN/A N/A

Architecture

Communication

Strategy &

Execution


N/A N/AN/A N/A

Architecture

Practice

Improvement


N/A N/AN/A N/A

Architecture

Partner

Management


N/A N/AN/A N/A

Architecture

Practice Risk

Management


N/A N/AN/A N/A

Strategy

Development


THE BUSINESS ARCHITECTURE-

LED APPROACH


ARCHITECTURE PRACTICE MATURITY

ISOLATED OPTIMIZING

LOSING FRAGMENTED

INTEGRATION IN THE ORGANIZATION

LEV

EL O

F A

RC

HIT

EC

TU

RA

L T

HIN

KIN

G

L O W H I G H

LO

WH

IG

H


DESIGNING FOR VALUE

›High maturity organizations have

a clear linkage between Business

architecture, strategic goals, and

performance management

› These organizations also have a

feedback loop which helps

measure the progress towards

objectives

› This feedback loop will also inform

the next iteration of business

strategy and architecture.

Value based management, value creation and performance.


APPLYING A BUSINESS ARCHITECTURE-LED APPROACH

› Allows the enterprise programs to develop consistency in

describing the capabilities required to meet business objectives.

› Can be used to demonstrate:

» A natural information sequence across the business

» Strategic Value

» Maturity of capability

» Current in-flight project

BUSINESS CAPABILITY ANCHOR MODEL

› It provides traceability and captures mission and vision,

strategies, goals, tactics and objectives

› Offers a clear articulation of business strategy in order to

identify and assess required business capabilities

BUSINESS MOTIVATION MODEL

› Allows stakeholders to document current and future state

business models

› Enables testing of conventions and innovations to reveal

opportunities, threats and disruptive strategies

BUSINESS MODEL CANVAS


Increase price

Increase volume

Improve mix

Improve process

Reduce cost of inputs

Improve warehouse

utilisation

Increase productivity

Decrease staffing

Optimize scheduling

Optimize 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

o Profit-driven marketing

efforts:

• Target “best” customers

• Offer “best” product mix

• Improve pricing

management

• Proactive production

planning for inventory

management

• Most profitable capacity

allocation/utilization

o Reduced sales management

layers

o Focus on high-profit

accounts

o Improved inventory flow

visibility

• Lower transportation costs

• Higher facilities utilization

• Less “fire fighting”

o Better carrier

evaluation/mgmt.

o Higher quality Customer

Service

o Improved Supply Chain

visibility

• Improved order fill rates

• Significantly lower cost

• More consistent service

• Faster problem resolution

o 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

VALUE BASED DELIVERY VALUE LEVERS

TRANSFORMATION

BENEFIT (Outcome)

AUTOMATION

BENEFIT


K


BUSINESS CAPABILITY

MODEL WITH STRATEGIC

OVERLAY

BUSINESS CAPABILITY MODEL

WITH CURRENT MATURITY

OVERLAY


WITH PAIN POINTS


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


K


OUR LOCATIONS

Re-Positioning the value of the architecture practice

Business

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