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From Capability-Based Planning to Competitive Advantage
Assembling Your Business Transformation Value Network
Marc Lankhorst, BiZZdesign
Iver Band, Cambia Health Solutions
INTRODUCTIONS
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Marc Lankhorst
Marc Lankhorst: • Service line manager Enterprise Architecture • Responsible for BiZZdesign’s EA proposition • Enterprise architect, trainer, coach, project manager • Manager of the original ArchiMate development project • TOGAF and ArchiMate certified
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+31 6 44 092 359
http://nl.linkedin.com/in/marclankhorst
http://blog.bizzdesign.com
http://www.bizzdesign.com
http://www.twitter.com/marclankhorst
BiZZdesign: Building Strong Organizations!
Organizations increasingly need to deal with time-pressured business improvements and high-impact transformation in a truly complex business and IT reality
BiZZdesign enables this by providing proven change capabilities through integrated solutions consisting of
• professional services
• software solutions
• training
• best practices
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BiZZdesign Worldwide: Offices and Resellers
BiZZdesign office BiZZdesign reseller
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Iver Band
Iver Band:
• Enterprise Architect at Cambia Health Solutions
• Vice Chair, Open Group ArchiMate Forum
• Co-Chair and Co-Founder, Oregon Enterprise Architects
• TOGAF and ArchiMate certified, CISSP, Certified Information Professional
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http://www.linkedin.com/in/iverpdx
http://www.cambiahealth.com/
http://www.twitter.com/iverband
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Our Roots
Born from an inspired idea
Our Cause
To serve as a catalyst to
transform health care,
creating a person-focused
and economically
sustainable system
Our Vision
Delivering a reimagined
health care experience
Our Story
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About Cambia
22 companies
and growing
A tax-paying nonprofit
headquartered in
the Pacific Northwest
Nationally recognized:
Top 100 Healthiest
Workplaces
5,300 employees
in 30 states
100 million people
touched nationwide
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Wholly Owned Companies Direct Investment Companies Health Insurance
Direct Investment Companies
Health Insurance Wholly Owned Companies
Cambia Health Solutions
Agenda
• Introduction
• Enterprise architecture
• The use of models
• Capability-based planning
• Enterprise portfolio management
• Agile realization
• Conclusions
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The Challenge
• The ‘Digital Enterprise’ requires major business transformations
• The speed of change makes classical top-down strategy implementation obsolete
• Few organizations have a systematic and reliable way of translating a business strategy into action
• Organizations invest in many disciplines, to improve their transformation capability and effectiveness
• A lack of coherence between these disciplines compromises their success
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ENTERPRISE ARCHITECTURE
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What is Enterprise Architecture?
• A product – A design that shows the coherence between
products, processes, organization, information supply and infrastructure, based on a vision and certain explicit starting points, principles and preferences
• A practice – Way of working
– Aimed at the development and use of enterprise architectures within an enterprise
– With people and resources
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What Kinds of Enterprise Architectures Are There?
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Enterprise architectures can be partitioned by enterprise segment or capability
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What Kinds of Enterprise Architectures Are There?
• Core domain architectures
• Cross-cutting domain architectures
• Business segment architectures
• Specialization by both domain and business segment
• Roadmaps
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How do Enterprise Architectures Relate to Solution Architectures and Roadmaps?
Baseline Plateau Intermediate Plateau
Target Plateau
Solution architectures arise at the EA segment and capability levels. They solve problems that stand in the way of
progressing from one plateau to the next along a roadmap. Production Solution Architecture…
Enhanced Solution Architecture… Retired Solution Architecture…
Roadmap
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Enterprise Architecture and Other Disciplines
• Enterprise architecture focuses on coherence and alignment – between strategy, business, information, applications and
technology
– enterprise-wide, high-level descriptions
• Business architecture, as part of EA, describes how the business operates – relates strategy & business model to business functionality,
operating model, capabilities, products and processes
• Business analysis translates business goals & needs into solution requirements – focused, more detailed
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TOGAF® - The Open Group Architecture Framework
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What is ArchiMate®?
• A language to describe architectures
• A graphical notation with formal semantics
• A framework that describes and relates the business, application, and technology layers
• Extensions for motivation, implementation & migration
• Techniques for visualizations and analyses for different stakeholders
• An open standard maintained by The Open Group
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Business
Application
Technology
Mo
tivation
TOGAF, ArchiMate Core and Extensions
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Preliminary
D Technology Architecture
Requirements Management
A Architecture
Vision
B Business
Architecture
C Information
Systems Architectures
H Architecture
Change Management
G Implementation
Governance
F Migration Planning E
Opportunities and
Solutions
TOGAF ADM
ArchiMate Core
Business Architecture
Application Architecture
Data Architecture
Technology Architecture
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EA as Knowledge Hub in Business Transformation
• Enterprise architecture provides different views on the enterprise’s make-up for the various disciplines involved
• It aggregates and integrates information from these disciplines in structured models
• Which are ideal for performing various analyses – costs, benefits, risks, complexity, impact of change,
dependencies, planning, …
• In order to manage enterprise-wide interdependencies
• To realize business transformations in a coherent manner
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EA Relates and Supports Other Disciplines
Enterprise Portfolio Management
Strategy
Capability-Based Planning
Process, Rule & Data Management
Governance, Risk & Compliance
Design, Development & Delivery
Program & Project Management
Enterprise Architecture
Service Management
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Enterprise Architecture Role in Business Transformation Planning and Oversight
Enterprise Portfolio Management
Capability-Based Planning
Enterprise Architecture Initiative
evaluation and comparison
Business cases and budgets
Business capabilities required
Recommended investments with benefits and costs
Program & Project Management
Implementation roadmaps and oversight
Funded initiatives
Value delivered Resources and budget used Realized architecture
Results realized
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THE USE OF MODELS
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Implementation Guidance
• As you build your own organization’s capabilities, create formal representations – unambiguous meaning that can reconciled with EA repositories
• Use models to describe enterprise architectures – e.g. ArchiMate, BPMN, ERD, UML, The Decision Model, etc.
• Models can be checked, visualized, analyzed, managed, integrated, transformed, interpreted, and sometimes even executed
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Model-Based Architecture Repository
• Ensure coherence between strategy and operations
• Keep track of large and complicated architectures
• Support timely and accurate decisions with clear views, analyses and dashboards
• Facilitate collaboration in teams and across disciplines
• Speed up the change process
• Support a maturing practice, from small team to large organization
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Model-Based Architecture: Business Layer
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Model-Based Architecture: Application Layer
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Use ArchiMate to Connect Other Models
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Relating Goals & Capabilities to Target Architecture & Programs
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Business Goals
Business Capabilities
Architecture Plateaus
Change Programs
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CASE STUDY: IMPROVING PROJECT MANAGEMENT TOOLING IN RESPONSE TO THE CHANGING ROLE OF THE CONSUMER
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US Healthcare Payer Challenges
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Drivers from Gartner Group “Business Drivers of Technology Decisions for Healthcare Payers, 2014”, December 2013
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Typical Disconnected Project Management Toolset Hampers Decision-Making and Execution
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Architected Project Management Toolset Enables Better Decisions and More Efficient Execution
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CAPABILITY-BASED PLANNING
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Business Capabilities
• A business capability is something an enterprise does or can do, given the various resources it possesses
• Which capabilities do you need for your strategy, business model and operating model?
• What are the required capability levels?
• What are the necessary resources?
• How do plan the evolution of your enterprise architecture?
• Input for investment decisions: portfolio management
• Helps you plan and manage programs & projects
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Business Capability Map
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Capability Based-Planning: Capability Increments in Different Dimensions
Analysis and planning of capabilities using an ArchiMate model and various metrics
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Architecture Analysis: from As-Is to To-Be
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ENTERPRISE PORTFOLIO MANAGEMENT
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What is Enterprise Portfolio Management (EPM)?
• Enterprise portfolio management manages the enterprise landscape (projects, capabilities, assets, services, etc.) in portfolios – Group things of the same type based on some criteria,
– manage this set as a whole,
– providing an enterprise-wide overview,
– that supports analyses and comparisons,
– resulting in consistent and informed decision-making at all levels
• Manage on business value, not only on costs
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Retirement
Back office
Front office
Critical
How Are Portfolios and Architecture Related?
• Based on the architecture, portfolios are defined and managed in a consistent way: – Capability portfolio
– Product portfolio
– Application portfolio
– Infrastructure portfolio
– Program and project portfolio
– …
• Add attributes and metrics to your architecture models to support analyses and dashboards
Project portfolio
Asset portfolio
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Projects Roadmaps
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Adding Data to the Architecture
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Architecture Repository
Asset inventories
Contract information
Project planning
Presentations
Checklists
Architectures
Portfolio Dashboard: Actionable Information
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Application Landscape with Life Cycle Advice
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REALIZATION
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Towards Agile Realization
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Strategy
Team Agile development
Continuous integration
Dailywork
Iteration
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Program Agile Release Train
Architecture runway DevOps
Architectural features Iteration
Portfolio
Architecture epics
Program portfolios
Business epics
Iteration
Sustainability with an Architectural Runway
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Balanced Investment
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How Do We Make That Work Within Our Teams?
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High Level Business Case
Business Objectives
Functional Requirements and Use Case Development
Owned by Product Owner and overall Business with review by Architects and Leads
Solution Architecture and Non-Functional Requirements (Architect)
Feature/Epic and User Story Development (PO)
Owned by Architect and Product Owner with support from Leads
Data Modeling and Detailed Requirements
Build and Test User Acceptance
Owned by Scrum Team (including PO) with support from Architect
Informed by Enterprise Architecture
Informed by Prioritized Business Capabilities
CONCLUSIONS AND DISCUSSION
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Consistent and Integrated Modeling…
• Is a kind of knowledge management
• Supports enterprise-wide analyses, e.g. traceability, cost calculations, dependencies, risks
• Fosters coherent decision-making
• Links vision to realization, by relating various disciplines in your business transformation value chain
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Business Transformation Management is a Composite Capability That Benefits from An Architectural Approach
Strategy
Process, Rule & Data
Mgmt
Design, Development
& Delivery
Service Mgmt
Program & Project Mgmt
Enterprise Portfolio
Mgmt
Capability-Based
Planning
Business Transformation Management
Enterprise Architecture
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Call to Action
• Business architects & analysts: – Collaborate with enterprise architects to assemble your
organizations’ business transformation capabilities into a coherent value network
• Enterprise architects: – Use the ArchiMate Business Layer and Motivation extension to
integrate the work of business analysts into your business transformation value stream network
• Implement tools step-by-step: Think big, start small – For a simple start, use the Archi open-source tool
– Easy to upgrade to more mature tools like BiZZdesign Architect
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Think like an architect when building your
business transformation value network!
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Questions?
Marc M. Lankhorst Service line manager Enterprise Architecture [email protected] +31 644 092 359
Webinars, blogs, e-books, customer stories, training portfolio, software and more on www.bizzdesign.com
Iver Band Enterprise Architect [email protected]
Related presentations and articles available at slideshare.net/iverband
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©2014 BiZZdesign. All rights reserved. BiZZdesign and BiZZdesign logos are registered trademarks of BiZZdesign Company.