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Enterprise Architecture - What is Business Architecture?. March 26 , 2012 Siamak Amjadi . What is. BU$IN€$$ . all about?. Where / how does. BU$IN € $$ Architecture . Fit in Enterprise Architecture. Change Requirements. Technologies. A Simplified Demand Chain; mapped to EA.

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slide2

What is

BU$IN€$$

all about?

slide3

Where / how does

BU$IN€$$ Architecture

Fit in Enterprise Architecture

a simplified demand chain mapped to ea

Change Requirements

Technologies

A Simplified Demand Chain; mapped to EA

Corporate Goals

Demand Chain

Business Vision

Improve

Time to Market

Example

Business Strategy

Changes in

Business Strategy

Improve Product

Design Process

Business

Approach

Business Model

Business Operations

Changes in

Business Model

Reduce Process

Change Time

Business Architecture

Improve Solution

Delivery Time

IT Strategies

Information

Architecture

Solution

Strategy

Platforms & Patterns

System simplifications

And SOA

Example

Solution

Architecture

Technology

Architecture

Technology

Architecture

scattered information everywhere yet lacking an overall enterprise architecture
Scattered Information EverywhereYet, lacking an overall Enterprise Architecture

Information

  • (How well do) We know our company
  • There are stacks of Information available everywhere
  • But . . .
  • Not all information are related
  • Not all are equally verified
  • Some need better structure
  • Others should be documented
  • Some should be defined
  • Others need be harmonized
  • Enterprise Architecture is meant to provide interrelated verified information for Business Ma'nagers and IT Managers . . .
  • . . . Putting pieces together

Time

a model so simple
A model? So simple?

Enterprise Architecture

is a Model to create

this overall overview

enterprise architecture ea as a concept
EA is to link the architecture of the Business (processes, products, operations etc), Business Information, the business supportingIT Solutions and Technologies to host the solutions.

Its role is to provide a more intelligent basis for Application Decisions and yield to streamline the Application Portfolio, thereby strengthening the working relationship between Business Management and IT Management.

It will assess and provide overview of compliance to Business Domains, Drivers, Requirements, Direction and Principles.

EA governance links EA plans to IT actions, hence ensuring that, IT Planning, Project Portfolio Management and Project Execution align with business and enterprise goals.

Business Domain

Business Domain

Business Domain

Business Architecture

Gap Analyses

Information Architecture

AS IS descriptions

TO BE descriptions

Solution Architecture

Enterprise Architecture (EA) as a Concept
  • EA is to link the architecture of the Business (processes, products, operations etc), Business Information, the business supportingIT Solutionsand Technologiesto host the solutions.
  • Its role is to provide a more intelligent basis for Application Decisions and yield to streamline the Application Portfolio, thereby strengthening the working relationship between Business Management and IT Management.
  • It will assess and provide overview of compliance to Business Domains, Drivers, Requirements, Direction and Principles.
  • EA governance links EA plans to IT actions, hence ensuring that, IT Planning, Project Portfolio Management and Project Execution align with business and enterprise goals.
  • EA is to link the architecture of the Business (processes, products, operations etc), Business Information, the business supportingIT Solutions and Technologies to host the solutions.
  • Its role is to provide a more intelligent basis for Application Decisions and yield to streamline the Application Portfolio, thereby strengthening the working relationship between Business Management and IT Management.
  • It will assess and provide overview of compliance to Business Domains, Drivers, Requirements, Direction and Principles.
  • EA governance links EA plans to IT actions, hence ensuring that, IT Planning, Project Portfolio Management and Project Execution align with business and enterprise goals.
  • EA is to link the architecture of the Business (processes, products, operations etc), Business Information, the business supportingIT Solutions and Technologies to host the solutions.
  • Its role is to provide a more intelligent basis for Application Decisions and yield to streamline the Application Portfolio, thereby strengthening the working relationship between Business Management and IT Management.
  • It will assess and provide overview of compliance to Business Domains, Drivers, Requirements, Direction and Principles.
  • EA governance links EA plans to IT actions, hence ensuring that, IT Planning, Project Portfolio Management and Project Execution align with business and enterprise goals.
  • EA is to link the architecture of the Business (processes, products, operations etc), Business Information, the business supportingIT Solutions and Technologies to host the solutions.
  • Its role is to provide a more intelligent basis for Application Decisions and yield to streamline the Application Portfolio, thereby strengthening the working relationship between Business Management and IT Management.
  • It will assess and provide overview of compliance to Business Domains, Drivers, Requirements, Direction and Principles.
  • EA governance links EA plans to IT actions, hence ensuring that, IT Planning, Project Portfolio Management and Project Execution align with business and enterprise goals.

Align with

Enterprise Goals

Technology Architecture

slide8

B u s i n e s s Architecture

Information Architecture

S o l t u i o n Architecture

Technology Architecture

Business Model & Business Processes

Key Information Entities & Flows

IT Solution Portfolio Overview

Technology Strategies/

Infrastructure Patterns

the relevance of ea

Business Architecture

Information Architecture

Solution Architecture

Technology Architecture

The Relevance of EA
  • Single source of information to (competing) strategic initiatives
    • The current and future initiatives in each enterprise, such as Project Portfolio Management (PPM), Strategic Planning processes, SOA adoptions, future Business Process Management (BPM)1, future Business Service Management (BSM)1, and application or process rationalization will be more successful if they reuse common strategic information. Providing this information is an ideal task for our EA repository.
  • We do face higher pressure for more rapid decision-making.
    • The challenge of minimizing risks from change becomes greater as our IT complexity increases. EA and our EA repository must provide capabilities for tracking interdependencies — offering Impact Analysis and Risk Analysis assisting prioritisation of the right initiatives.
  • Enterprises seek growth and increasing globalisation – while demanding Local Efficiency and Agility.
    • Organizations tend to share not only products and services between countries and regions, but increasingly also processes and applications — in addition to the IT infrastructure that many firms have already consolidated. But standardization and consolidation are not applied blindly. Successful firms also understand the peculiarities of local markets and thus adapt global best practices to local requirements. EA repositories and modeling tools allow analysis and modification of shared processes and applications.

1) The classic Enterprise Architecture models do not in specific include Business Process Management (BPM) & Business Service Management (BSM). The author has different view. Our maturity today calls for BPM and BSM. This view will be presented later in this presentation.

business architecture ba

Business Architecture

Information Architecture

Solution Architecture

Technology Architecture

Short-term

Long-term

Future

Business

Current

Business

Top-line

growth

Competitive

Advantage

Business Architecture (BA)

The classic Enterprise Architecture models do not include Business Process Management & Business Service Management as a part of Business Architecture. The author has a different view, which will be presented later.

  • Communicate the business visions, strategies, priorities and needs across the business operations to provide direction and context to other architectural governance structures.
  • BA describes Business Operations, Value Chains and Business Processes 1.
  • BA presents the long-term business demands, policies, strategies and needs as well as the short-term prioritisations and budgeting.
  • This provides significant opportunities for understanding both long- and short-term interdependencies and implications (affecting IT decisions).

Need

Transformation

Initiative

Project

Project

1) Business Organisations are dynamic and subject to (ir)regular changes. Business Operations, Value Propositions, and Value Chains (a customer centric view, hence a business process oriented view) are of a more stable nature. Thus, forming the Business Architecture based on customers centric Business Processes are more valuable than organisations.

business information architecture
One way of keeping consistency between business architecture and IT initiatives is to have a clear information architecture.

The Information Architecture presents a “Conceptual Information Model”, which reflects the business concepts (It supports the scoping and planning of projects.)

The more descriptive “Logical Data Model” offers the detailed information/data structures, which are required to support the business concepts. (It supports the documentation of the data requirements from the enterprise perspective and from the business process perspective.)

One more detailed model is to be developed together with projects (i.e. the semantics of the information). This model leads to definition of the Business Services’ crossing points.

Business Architecture

Information Architecture

Solution Architecture

Technology Architecture

In NTP there has been developed excessive methodologies for Business Information Modelling. They can undoubtedly add great value in the process of creation Nordea’s Information Architecture.

Business Information Architecture

Data is a fundamental building block of Interoperability, information management and the design of efficient, non duplicative systems

solution architecture
IT Solutions are to provide the business information, which is specified by the Information Architecture.

Solution Architecture provides the “Infrastructure of applications and the IT solutions”, depicting the “logistics of business information” and the affiliation of business logic.

This dimension of EA also illustrates the interrelations between business operations, business information and business logic. This knowledge will improve the consistency, quality, and interoperability of business solutions.

Business Information and Business Logic can also be presented in terms of Business Services (often common cross business unit or Nordic services).

This makes BSM – Business Service Management – an increasingly relevant topic in line with growing number of Services in NTP, Master Data Management, Document Management, CMS services plus others to come. (Se this slide.) BSM supports Business AND Information Architecture.

Steps of executable business processes (in a process engine) are presented as business services (on a service bus).

This makes BPM (Business Process Management – from an execution perspective) an emergent important part of Solution Architecture. BPM supports Business AND Information Architecture.

Maintaining the appropriate role of each system

Business Architecture

Information Architecture

Solution Architecture

Technology Architecture

The classic Enterprise Architecture models do not include Business Process Management & Business Service Management as a part of Solution Architecture. The author has different view, which will be presented later.

Solution Architecture
technology architecture ta
The technology architecture describes the technical platforms, infrastructure and technologies, which are required to run the business solutions.

In the current setup, Nordic Processor has the overall responsibility for our TA.

According to the author, Nordea has (as a part of the outsourcing to NP) lost competence and too many competencies within this area. This has resulted in a critical lack of overview and knowhow around TA.

NP being a black box to our projects has been a major pain point.

Business Architecture

Information Architecture

Solution Architecture

Technology Architecture

Is Half of the

Agility Story Enough?

Business Architecture

Information Architecture

Solution Archit

ecture

NP

NP

Technology Architecture

Technology Architecture (TA)

Nordea may be consider to bring back some of the competent resources, who moved to NP or hire some brilliant Technical Architects in the market. NP Architects have though the advantage of knowledge of and experience in our technical setup and have a valuable network in NP and IBM.

a model so simple1
A model? So simple?

Business Architecture is

A Model

how simple
How Simple?

A Model

is a simplification

slide18

The Context

decides the level of simplification

slide19

Mission

Vision

Business Strategy

Business Models

Business Processes

Organization

Management &

Governance

Conceptual

Business

Architecture

business architecture spans the whole business

Mission

Vision

External Demands

Strategic Direction

The Market Promise

Customer Value

BusinessStrategy

Supply

Supply

Supply

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Cost

Cost

Cost

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Business Models

Business Processes

Organization

Management &

Governance

Business Architecture spans the whole business

Business Strategy

Customer

Q2

Business Models

D

P

Q1

Q3

Business Processes

getCustomer

Customer

Mgmt

C

A

Management

IT

Organisation

Q4

Network

Skills &Competencies

Goals &Metrics

BusinessPlanning

Performancemanagement

Organisation

Services

Solutions

Information

business architecture spans the whole business1

External Demands

Strategic Direction

The Market Promise

Customer Value

Market Promise

Key

Characteristics

Feelings

Emotions

Benefits

Q4

Supply

Supply

Supply

Offerings

Offerings

Offerings

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Q3

Q1

BC

Q2

Cost

Cost

Cost

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Plan

Do

Act

Check

Network

Skills &Competencies

Goals &Metrics

BusinessPlanning

Performancemanagement

Organisation

Business Architecture spans the whole business

Business Strategy

Business Models

Business Processes

Management

Organisation

the strategy canvas and the value curves

Strategy Canvas … Value Curves

  • Strategy canvas achieves 3 main objectives:
  • First, it displays the present and tries to predict future factors that affect competition in an industry thereby showing the industry’s strategic profile.
  • Second, it presents the strategic factors that are present and that potential competitors invest in, thus giving their strategic profile.
  • And finally, it illustrates the company’s strategic profile (also known as the Value Curve) by showing which factors of competition the company invests in currently and possibly in the future.
  • This value curve is the basic component of the strategy canvas.

Market Promise

Key

Characteristics

Feelings

Emotions

Benefits

The Strategy Canvas and the Value Curves

Strategy

  • Price
  • Openning hours
  • Expertice and product knowledge
  • Transparency of products and services
  • Personlised Services
  • Friendly service
  • Risk Management consultancy
  • Corporate dealers
  • Speed
  • Flexible payment terms
  • Relationship management
  • Ease of use
  • Responsiveness
  • Knowledge
the five forces
The Five Forces
  • The forces can be divided into two dimensions:
  • Existing soruces:
    • Suppliers
    • Customers
  • Emerging Sources:
  • New Entrants to the market
  • Substitute Products & Services

Threat of New Entrants

Bargaining Power of Suppliers

Bargaining Power of Buyers

Emerging factors & their impact . . . .

Existing Players & their impact . . .

Threat of Substitute Products and Services:

business architecture spans the whole business2
Business Architecture spans the whole business

External Demands

Strategic Direction

The Market Promise

Customer Value

What is Strategy

Market Promise

Strategy is profoundly different from tactics.

In military terms, tactics is concerned with the conduct of an engagement while strategy is concerned with how different engagements are linked.

In other words, how a battle is fought is a matter of tactics: whether it should be fought at all is a matter of strategy

Key

Characteristics

Feelings

Emotions

Benefits

Focus

A Compelling Tag Line

Divergence

Nordea

975

368

168

159

81

345

Business Strategy

A good Strategy has three aspects,

and it is all about positioning and positioning ...

A good Strategy has three aspects,

and it is all about positioning and positioning ...

finding the competetive position
Finding the Competetive Position

Positioningoptions arise from setting limits in three areas that are not mutually exclusive

Variety Based

Needs Based

Access Based

To limit the varieties of the products which are offered:

Tailor activities to deliver particular varieties, features, or services across customer groups (meet a subset of their needs)

Example: iPhone

  • To limit the customers servedbased on needs:
  • Tailor activities to meet the particular needs of a distinct customer group/purchase occasion
  • Example: IKEA
  • To limit the customers servedbased on means to serve
  • Tailor activities to reach differently accessible customers with similar needs
  • Example: Dell
  • It is difficult, if not impossible, to produce all varieties, serve all customer groups, and deliver all types of value equally well
  • “Positioning” without significant differences in activities is rarely meaningful
positioning and activities
Positioning and Activities
  • Temporary replacement cars or extra cars in the customer’s home city
  • Ubiquitous, small, inexpensive offices, including on-premises offices at major accounts
  • Open during normal business
  • Delivers cars to customers’ homes or rental sites, or customers to cars
  • Prices 30 percent below airport rates
  • Acquires new and older cars, favoring soon-to-be discontinued older models
  • Keeps cars six months longer than major rivals
  • In-house reservations system
  • Grassroots marketing with limited television
  • Cultivates strong relationships with auto dealerships, body shops, and insurance adjusters
  • Hires extroverted college graduates to encourage community interaction and customer service

Set of Activities

fedex guaranteed overnight delivery
FedEx . . . Guaranteed overnight delivery
  • “Absolutely, Positively Overnight” 1978–1983
  • “It’s not Just a Package, It’s Your Business” 1987–1988
  • “Our Most Important Package is Yours” 1991–1994
  • “Absolutely, Positively Anytime” 1995
  • “The Way the World Works,” 1996–1998
  • “Be Absolutely Sure,” 1998–2000
  • “This is a Job for FedEx,” 2001–2002
  • “Don’t worry, there’s a FedEx for that,” 2002–2003
  • “Relax, it’s FedEx,” 2004–2008
  • "We Understand," 2009–present
  • "WeLiveToDeliver" 2009–present

Frederik Smith

A Compelling Tag Line

business architecture spans the whole business3
Business Architecture spans the whole business

Market Promise

Market Promise

For Life

Key

Characteristics

Key

Characteristics

Security

Feelings

Emotions

Feelings

Emotions

Premium

Benefits

Benefits

A car for every phase of life

Cash Management Value Proposition

  • The customer value proposition focuses on both emotional and functional benefits
  • Emotional benefits are the intangible elements of the proposition and delivery that influences how the customer feels about the organization (e.g. reliable, professional and secure)
  • Functional benefits are tangible elements or observable outcomes that the customer perceive of the customer value proposition

Business Strategy

business architecture spans the whole business4
Business Architecture spans the whole business

Strategy Canvas … Value Curves

  • Strategy canvas achieves 3 main objectives:
  • First, it displays the present and tries to predict future factors that affect competition in an industry thereby showing the industry’s strategic profile.
  • Second, it presents the strategic factors that are present and that potential competitors invest in, thus giving their strategic profile.
  • And finally, it illustrates the company’s strategic profile (also known as the Value Curve) by showing which factors of competition the company invests in currently and possibly in the future.
  • This value curve is the basic component of the strategy canvas.

Market Promise

Key

Characteristics

Feelings

Emotions

Benefits

Business Strategy

  • Price
  • Openning hours
  • Expertice and product knowledge
  • Transparency of products and services
  • Personlised Services
  • Friendly service
  • Risk Management consultancy
  • Corporate dealers
  • Speed
  • Flexible payment terms
  • Relationship management
  • Ease of use
  • Responsiveness
  • Knowledge
strategy canvas video gaming for nintendo wii
Strategy Canvas Video Gaming (for Nintendo Wii)

Strategy Canvas Video Gaming

(for Nintendo Wii)

business architecture spans the whole business5
Business Architecture spans the whole business

External Demands

Strategic Direction

The Market Promise

Customer Value

Market Promise

Key

Characteristics

Feelings

Emotions

Benefits

Q4

Supply

Supply

Supply

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Q3

Q1

BC

Q2

Cost

Cost

Cost

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Plan

Do

Act

Check

Network

Skills &Competencies

Goals &Metrics

BusinessPlanning

Performancemanagement

Organisation

Business Strategy

Business Models

Business Processes

Management

Organisation

slide37

Who is the customer?

  • What does the customer value?
  • How do we make money in this business?
  • What is the underlying economic logic that, explains how we can deliver value to customers at an appropriate cost?

A Business Model is to answer:

  • A (substitute for a) business strategy - even though many people use the terms interchangeably today.
  • A description of a business, a process model, a business plan, a revenue model, a pricing strategy, a mathematical model, a transaction model, a mandate or a list of products.

A Business Model is not:

Supply

Value

Proposition

Demand

Cost

Income

A Business Model describes the rationale of how an organization Creates, Delivers, and Capturesvalue.

slide38

Supply / Capabilities

Offering

Demand / Opportunities

  • The Network of suppliers & partners that, make the Business Model work
  • Who are our Key Partners?
  • Who are our key suppliers?
  • Which Key Resources are we acquiring from partners?
  • Which Key Activities do partners perform?

Value Network

Value Proposition

  • Types of relationships, we establish with specific Customer Segments
  • What type of relationship does each of our Customer Segments expect us to establish and maintain with them?
  • Which ones have we established?
  • How are they integrated with the rest of our business model?
  • How costly are they?

Customer Relations

  • The bundle of products and services that create value for a specific Customer Segment
  • What value do we deliver to the customer?
  • Which one of our customer’s problems are we helping to solve?
  • What bundles of products and services are we offering to each Customer Segment?
  • Which customer needs are we satisfying?
  • Characteristics: Newness, Performance; Customization, “Getting the Job Done”, Design, Brand/Status, Price, Cost Reduction, Risk Reduction, Accessibility, Convenience or Usability
  • The most important assets required to make a Business Model work
  • What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Core Resource

Core Processes

  • Key Activities and Processes, to make its Business Model work
  • What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams?

Distribution channels

  • How do we communicate with and reach our Customer Segments to deliver our offerings.
  • How are our Channels integrated?
  • Which ones work best? Most cost-efficient?
  • Integrated with customer routines?
  • Groups of people or organizations, which we aim to reach and serve.
  • For whom are we creating value?
  • Who are our most important customers?
  • Mass/Niche Market? Segmented? Diversified? Multi-sided Platform?

Customer Segments

  • All costs incurred to operate a Business Model.
  • What are the most important costs inherent in our business model?
  • Which Key Resources are most expensive?
  • Which Key Activities are most expensive?
  • Fixed & Variable costs, Economies of scale, Economies of scope

Cost Drivers

Risk Adjusted Profit

Profit

  • The cash we generate from each Customer Segment.
  • For what value are our customers really willing to pay?
  • For what do they currently pay?
  • How are they currently paying?
  • How would they prefer to pay?
  • How much does each Revenue Stream contribute to overall revenues?

Income streams

slide39

Relationship strategy

  • Customer involvement model in Product/Service development

Customer Relations

  • Nordea:
  • Nordea Operations Centre
  • Markets
  • Trade Project Finance
  • Nordea Finance
  • External:
  • Correspondent banks
  • CM partner banks (HSBC, BNP Paribas, …)
  • EBA, Nets, BGC
  • SWIFT

Value Network

  • (Branch Offices)
  • (Contact Centres )
  • Corporate Netbank
  • SME Netbanks
  • File based channels
  • Corporate eGateway

Distribution channels

  • CMB customers
  • Segment Large
  • Segment Medium
  • Segment Small
  • Institutional & International
    • Banks

Customer Segments

  • Human capital
  • Financial assets
  • IT

Core Resource

Core Processes

  • Customer Oriented
  • Sales & Advisory
  • Customer onboarding
  • Customer service
  • Product Oriented
  • Product dev & mgt
  • Operations
  • Mgmt & Support
  • Competence & Process dev
  • Etc.

Risk Adjusted Profit

Profit

Example

Example - Cash Management

Supply / Capabilities

Offering

Demand / Opportunities

  • House Bank for our corp custm.
  • Maintain Transaction Accounts that the customer needs for running the business
  • Process transactions and provide information on them
  • Provide facilities for the customer to manage liquidity
  • Provide facilities for the customer to manage financial risk
  • Provide a set of secure channels for exchange of information between the customer and Nordea
  • Supply chain & working capital services
  • E-invoicing services: connect companies to their suppliers
  • Complex offerings in cooperation with other Nordea units

Value Proposition

  • Staff Cost
  • IT running costs
  • IT development
  • Commission expenses
  • Other costs

Cost Drivers

  • Account:
  • Net and Float Interest (corporate transaction accounts)
  • B
  • Transactions
  • Commission income
  • Channels
  • C

Income streams

Revenue – Cost = Operating Profit

  • Transaction accounts
  • Domestic payments
  • International payments
  • Channels
  • Treasury services
  • Fees
  • Interest
  • Total transactions
  • Account
  • Transactions
  • Channels
slide40

Business Model

Template …

and how to use it …

business architecture spans the whole business6
Business Architecture spans the whole business

External Demands

Strategic Direction

The Market Promise

Customer Value

Market Promise

Key

Characteristics

Feelings

Emotions

Benefits

Q4

Supply

Supply

Supply

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Q3

Q1

BC

Q2

Cost

Cost

Cost

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Plan

Do

Act

Check

Network

Skills &Competencies

Goals &Metrics

BusinessPlanning

Performancemanagement

Organisation

Business Strategy

Business Models

Business Processes

Management

Organisation

enterprise typical process types
Enterprise typical Process Types

L1

Manage Enterprise

L1

Develop Enterprise

L1

Sales and Delivery

L1

Manage Assets

L1

Support the Enterprise

the people and the governance

The People and the Governance

Players ... and rules of the game

business architecture spans the whole business7
Business Architecture spans the whole business

External Demands

Strategic Direction

The Market Promise

Customer Value

Market Promise

Key

Characteristics

Feelings

Emotions

Benefits

Q4

Supply

Supply

Supply

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Q3

Q1

BC

Q2

Cost

Cost

Cost

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Plan

Do

Act

Check

Skills &Competencies

Goals &Metrics

BusinessPlanning

Performancemanagement

Organisation

Business Strategy

Business Models

Business Processes

Management

Organisation

Network

oh yeah all this so what

Oh yeah ... all this ... so what

How to assist an intelligent business change

... intelligently

slide48

Create

Eliminate

Market Promise

Key

Characteristics

Feelings

Emotions

Benefits

Increase

Decrease

Business Strategy

Business Strategy ... and then what ....

change and transform to achieve the desired future

Business Strategies

P l a n s

Supply

Supply

Value

Proposition

Value

Proposition

Demand

Demand

Cost

Cost

Income

Income

Q4

Supply

Supply

Supply

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Eliminate

Create

  • Strategy
  • The Business Idea
  • Vision & strategic goals
  • Main Strategies
  • Long-term goals & KPIs
  • Business Plan (this year)
  • Set goal and main activities
  • Break down goal and activities per opr. unit
  • Distribute resources to units
  • Result, balance and cash book

Q3

Q1

BC

Decrease

Increase

Plan

Do

Q2

Cost

Cost

Cost

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Act

Check

  • Feedback and Measure
  • Meetings and feedback
  • Identify and establish rectifying measures
  • Follow-up and reporting
  • Follow-up and align with the plan
  • Report

People

Business Strategy

Business Models

Process

Business Processes

Management

Organisation

Plan

Do

Act

Check

Change and Transform toachieve the desiredfuture ...

Current BM

Strategies

Plans

New BM

Current Business Model

Business Plans

New Business Model

Tranformation

Execution Orgn

Execution

New BA

Transformation

Scope and Plan

Execution

Organisation

Execution &

Implementation

Innovated

Business Architecture

slide50

Making the Business Competetive

The Current

Business Architecture

Goals and targets to meet the market & customer expectations

The Target

Business Architecture

Business Strategies

New

Vendor

Customer

Substitute

Q4

Q4

Supply

Supply

Supply

Supply

Supply

Supply

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Demand

Demand

Demand

Eliminate

Create

Q3

Q3

Q1

Q1

BC

BC

Decrease

Increase

Q2

Q2

Cost

Cost

Cost

Cost

Cost

Cost

Income

Income

Income

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

  • A Business Capability defines the organization’s capacity to successfully perform a unique business activity. Capabilities:
  • Are the building blocks of the business.
  • Represent stable business functions.
  • Are unique and independent from each other.
  • Are abstracted from the organizational model.
  • Capture the business’ interests.

Capability Map

Business Strategy

Business Strategy

Business Models

Business Models

Business Processes

Business Processes

Management

Management

Organisation

Organisation

Plan

Plan

Do

Do

Act

Act

Check

Check

Changing the Business

Target Business - CurrentBusiness = Change Needs

Using a Capability Map offers the ability to compare/match-up various change initiatives – across operational units and countries.

Such maps placed on the timeline provides a substantial foundation to plan intelligently and proactively in order to synchronize the right investments at the right parts of the Business.

Capability Map

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slide51

Making the Business Competetive

Making the Business Competetive

Making the Business Competetive

Making the Business Competetive

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Supply

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Value

Proposition

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Demand

Q3

Q3

Q3

Q3

Q3

Q3

Q3

Q3

Q1

Q1

Q1

Q1

Q1

Q1

Q1

Q1

BC

BC

BC

BC

BC

BC

BC

BC

۩

۩

۩

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Q2

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Cost

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Income

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

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Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

Profit

۩

۩

۩

۩

۩

۩

Business Strategy

Business Strategy

Business Strategy

Business Strategy

Business Strategy

Business Strategy

Business Strategy

Business Strategy

۩

Business Models

Business Models

Business Models

Business Models

Business Models

Business Models

Business Models

Business Models

Business Processes

Business Processes

Business Processes

Business Processes

Business Processes

Business Processes

Business Processes

Business Processes

Management

Management

Management

Management

Management

Management

Management

Management

Organisation

Organisation

Organisation

Organisation

Organisation

Organisation

Organisation

Organisation

Plan

Plan

Plan

Plan

Plan

Plan

Plan

Plan

Do

Do

Do

Do

Do

Do

Do

Do

Act

Act

Act

Act

Act

Act

Act

Act

Check

Check

Check

Check

Check

Check

Check

Check

the business strategy and the business model components are reflected in the business plan

Supply

Value

Proposition

Demand

Supply

Value

Proposition

Demand

Supply

Value

Proposition

Demand

Cost

Income

Cost

Income

Cost

Income

The Business Strategy and the Business Model components are reflected in the business plan

Example

from business mission to it initiatives

Why we exist?

Mission

What we believe in? What we want to be?

Vision and

Core Values

What does it take get there?

Goals

What is our game plan?

Strategy and Objectives

Play-by-play business tactics to succeed

Strategic Business Initiatives

and Change Missions

How to apply technology intelligently to achieve business goals?

Intelligent Technology Initiatives are based on the short-term needs of the business (Top-line Growth), whilst each step taken would brings us closer to the long-term visions (Competitive advantage), which are defined by the business.

Not only operational IT. Not only long-term considerations.

Strategic Technology Initiatives

From Business Mission to IT Initiatives

Enterprise Architecture