Real business architecture transforms business
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The document discusses enterprise transformation and the evolving scope of business architecture informed by design thinking, emphasizing its importance for innovation at the board level. It highlights the need for a comprehensive meta model to support integrated perspectives and effective decision-making while showcasing examples from well-known companies like Apple and Volkswagen. Key trends impacting business architecture include technology advancements, changing market dynamics, and the significance of design in shaping customer experiences.
Real business architecture transforms business
- 1. Enterprise Transformation - The Open Group Conference Cannes, France, April 23-25, 2012 Real Business Architecture Transforms Business The new scope of business architecture influenced by design thinking Graham McLeod inspired! PROMIS © Inspired 2012 Monday 23 April 12 1
- 2. Scope of Business Architecture Place of BA in Organization Innovation and Design Context Boundary and Interaction Products/Services/Channels Value and Emotion Analysis Perspectives http://dcolombo.com Examples References © Inspired 2012 Monday 23 April 12 2
- 3. inspired! PROMIS © Inspired 2012 Monday 23 April 12 3
- 4. Board EXCO CE CA CI CF CO CH CM CR IT Architecture Strategi Goals, Architecture Position Marketing and Sales Finance & Accounts Human Resources Risk and Security Operations Component Projec I.T. s, Procedures Operation Work Flow © Inspired 2012 Monday 23 April 12 4
- 5. The New England Connection Empirical proof that EA maturity adds value Study of 150 companies over >5 years Identified: Architecture maturity levels Characteristics of each level Maturity & Industry of organization => Appropriate Core Operating Models © Inspired 2012 Monday 23 April 12 5
- 6. Foundation for Execution Foundation for Execution Enterprise Architecture IT Engagement Business Architecture Model Operating Process Architecture Programmes Application Information Model Architecture Architecture Projects Service Management Technology Architecture IT Governance Governance Adpated from: Ross, Weill, Robertson with Inspired additions © Inspired 2012 Monday 23 April 12 6
- 7. Integrated Meta Models Consistent Semantics + Inspired Standard Naming + TOGAF 9 Markets, Channels, Brand etc. Information, Architecture Governance, IT Engagement, Integrated Risk, Context, Business Concepts, Clients, Methods Engineering and Management Intent, Requirements, Building Blocks, Support Multiple Notations, Archimate 2 Frameworks Some Governance Link to IT Engagement Core Modeling Concepts Support Governance Actors, Services, Components, Support Architecture Functions, Processes, Applications, Technology Capability Elements © Inspired 2012 Monday 23 April 12 7
- 8. Analysis Perspectives Functional Service Great for blue sky, completeness, Good for reaching abstractions, strategy => what to do keeping analysis to reasonable amount of detail, delaying implementation Process detail, achieving agility Good for ensuring end to end Capability integration to deliver services, improvement Powerful to ensure all aspects are considered to achieve total end result: functions, services, resources © Inspired 2012 Monday 23 April 12 8
- 9. Motivation Mission, Goals, Objectives Functional Mission, Functions, Activities Process Which is right? Value Network, Value Chain, Process, Activities They all are... Question is: Which is more useful or Service pertinent to your purpose? Similar to above, but focussed on what is Fortunately, they are reconcilable / offered to others, interfaces, hides implementation compatible Capability Hierarchy Decomposition a common theme Bit fuzzy across authors and methods. We say it is “an ability to deliver something (product or service) including the elements of action (function, process), skill, knowledge/information, capacity and location” © Inspired 2012 Monday 23 April 12 9
- 10. Business Architecture Vision Driver Goal/ Objective Concepts Event Measure TOGAF 9 Value Actor/Role Requirement Organization Product/Service Channel/ Archimate 2 f(x) Business Interface Function Process Control Location Representation/Business Communication Contract Capability Gap Work Package © Inspired 2012 Monday 23 April 12 10
- 11. Business Architecture Vision Driver Goal/ Objective Concepts Event Measure Value Actor/Role Requirement Organization Rule Product/Service Channel/ f(x) Business Interface Function Process Control Business Model Location Representation/Business Communication Contract Capability Gap Work Package © Inspired 2012 Monday 23 April 12 11
- 12. Context “Context is worth 60 IQ Points” - Alan Kay The interesting stuff is out there Social Media Technology Collaboration Also the scary stuff Radical Business Models Competitors, Legislation, Environment Risk, Customers Non-traditional Competitors Revenue © Inspired 2012 Monday 23 April 12 12
- 13. Things Transforming our World Additive Manufacturing Open Education Developing World Rise => relocation of Open Source work, again Open Innovation Virtualization, Cloud, SaaS, PaaS, Telepresence Digitization (Atoms to Bits) Big Data / Machine Learning Social Media Semantics / Public Data Mobile, Location Genomics Nanotech Rapidly changing demographics (age Singularity (computing > human etc. ) capacity) Marketing, frictionless, viral, long tail... Green Issues, Energy © Inspired 2012 Monday 23 April 12 13
- 14. Innovation and Design Thinking Design Permeates products, services, organization, business model, customer interactions Design Matters Do you matter? Design Driven Companies: Apple, Nike, BMW, IKEA Brand is the ethos you communicate to your customers -‐ you have to stand for something Products and Services as Portals Design Language -‐ What are you saying to your customers? Risk Support, not management © Inspired 2012 Monday 23 April 12 14
- 15. Value and Emotion Experience Services Design Processes Content Software Hardware Value is the area under the blocks © Inspired 2012 Monday 23 April 12 15
- 16. Business Design Change EA Technology © Inspired 2012 Monday 23 April 12 16
- 17. Interaction, Boundaries, Responsibilities Parties Services Customers, Channels, Brokers, Externally offered, External Consumer Bodies, Suppliers, Unions, consumed, Internal services Government, Consumer Bodies, Social Groups, Competitors Feedback Round trip to ensure effective- ness and improvement Events ORGIs & Standards External, Time Related, Status Triggered Speed integration, lower costs, increase agility © Inspired 2012 Monday 23 April 12 17
- 18. Products, Services, Channels Most of Most Products is Intangible Instant Gratification Luxury car - 100 Million source lines Continuing delight Google self driving car - 500+ “ “ “ Additive Manufacuring Video Camera Vanishing value chain Smart Phone Virtual Products How we get things is almost as important as what we get App, Book, Music, Content Stores... Choice, Experience, Convenience Virtual Education © Inspired 2012 Monday 23 April 12 18
- 19. Volkswagen - MQB Modular vehicle architecture spanning all models in the smaller VW, Audi, Seat and Skoda brands Polo, Golf, Touran, Beetle, EOS, Sharran, Passat, CC A1, A3, Q3, TT © Inspired 2012 Monday 23 April 12 19
- 20. Competitor Driver Vision Brand Goal/ Objective Event Measure Market Value Actor/Role Requirement Customer Organization Rule Product/Service Channel/ f(x) Business Interface Function Process Control Partner Location Business Model Representation/Business Communication Contract Capability Stakeholder Gap Work Package © Inspired 2012 Monday 23 April 12 20
- 21. Competitor Driver Vision Goal/ Brand Objective Scenario Event Measure Market Value Actor/ Role Organization Requirement Customer Rule Product/ Risk f(x Service Channel/ Business Strength Function Interface Process Control Partner Location Weakness Representation/ Business Business Communication Model Contract Capability Gap Work Stakeholder Project Resource Portfolio Programme © Inspired 2012 Monday 23 April 12 21
- 22. Competitor Driver Vision Goal/ Brand Objective Scenario Event Measure Market Value Technology Actor/ Role Organization Requirement Customer Rule Product/ Risk f(x Service Channel/ Business Opportunity Strength Function Interface Process Control Partner Location Weakness Representation/ Business Threat Business Communication Model Contract Capability Gap Work Stakeholder Project Resource Portfolio Programme © Inspired 2012 Monday 23 April 12 22
- 23. Competitor Driver Vision Goal/ Brand Objective Scenario Event Measure Market Value Technology Actor/ Role Organization Requirement Customer Rule Product/ Risk f(x Service Channel/ Business Opportunity Strength Function Interface Process Control Partner Location Weakness Representation/ Business Threat Business Communication Model Business Contract Capability Gap Object Work Project Stakeholder Resource Portfolio Programme © Inspired 2012 Monday 23 April 12 23
- 24. Competitor Driver Vision Goal/ Brand Objective Scenario Event Measure Market Value Technology Actor/ Role Organization Requirement Customer Rule Product/ Risk f(x Service Channel/ Business Opportunity Strength Function Interface Process Control Partner Location Weakness Representation/ Business Threat Business Communication Model Business Contract Capability Gap Object Work Application Project Service Stakeholder Resource Portfolio Programme © Inspired 2012 Monday 23 April 12 24
- 25. Meta Model, Model Types, Models/Views Form Matrix Diagram/Plot List Composite a Item ID a c aa Property: Value ab 1 Property: Value b Property: Value bb b c Representation Representation Representation Representation Representation Model Model Model Model Model © Inspired 2012 Monday 23 April 12 25
- 26. Financial" 4" Full Spectrum Architecture" Human"Resources" 3.5" 3" Scorecard Strategy" 2.5" Geographic"Coverage" 2" 1.5" Agility" 1" Products"&"Services" 0.5" Current" 0" CompeGtor"Average" Target" Risk"Management" Shareholding" InformaGon" Partnerships" Legal" Channels" Technology" © Inspired 2012 Monday 23 April 12 26
- 27. Examples Apple Instagram MOOC (Massively Open Online Courses) Metlife Porsche/Volkswagen Medical transactions to statistical information sale © Inspired 2012 Monday 23 April 12 27
- 28. Apple - Product Architecture Jobs returned to Apple in crisis in In the next year, Apple 1997 produced profits of $309 Million In the fiscal year he returned, Apple lost $1.04 Billion, and sales were down 30% Business Individual One of his first actions was to rationalise the product line, cutting Office G3 PowerMac iMac it by 70% Mobile G3 PowerBook iBook Only four categories were left: © Inspired 2012 Monday 23 April 12 28
- 29. So... Scope of Business Architecture is much bigger than conventionally believed Business Architecture is a strategic business change capability at board level Innovation and Design are vital skills A comprehensive and integrated meta model is a strong enabler to integrate perspectives and ensure impacts are properly considered Empirically rooted knowledge can allow us to leverage experience of other organizations We need to take risks, but to do it intelligently © Inspired 2012 Monday 23 April 12 29
- 30. The best way to predict the future is to invent it... Alan Kay © Inspired 2012 Monday 23 April 12 30
- 31. The best way to predict the future is to invent it... Alan Kay architect © Inspired 2012 Monday 23 April 12 31
- 32. References and Further Info Design Matters - Emery, Stewart Socialnomics - Erik Qualman Purple Cows - Seth Godin Enterprise Architecture as Strategy - Ross, Weill, Robertson Tribe - Seth Godin TED Conferences - search on YouTube Linchpin - Seth Godin Apple Computer Guide to Organisation Design - Naomi Stanford Ray Kurzweil Change by Design - Tim Brown Proctor and Gamble Semantic Web for the Working Ontologist Cisco - Dean Allemang and Jim Hendler © Inspired 2012 Monday 23 April 12 32
- 33. Graham McLeod [email protected] www.inspired.org www.pro-mis.com http://grahammcleod.typepad.com/ (blog) © Inspired 2012 Monday 23 April 12 33
- 34. © Inspired 2012 Monday 23 April 12 34