Capability Based Approach to Enabling Strategic Initiatives
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1 Capability Based Approach to Enabling Strategic Initiatives Presenters: Diane LeBeau and Diana Krohn March, 2014
2 United s Business Architecture Implementation Model Business Architecture is a division of Enterprise Architecture, which reports to IT Business Management Six Business Architects, report to Director of Business Architecture Strategic Planning Understand Business Vision Define IT Strategy Communicate IT Strategy Prioritize IT Portfolio Monitor & Adapt IT Strategy Enterprise Business Architecture Connects United s business strategies to enterprise capabilities Aligns project work to enterprise goals and strategies Conducts Impact/Gap Analysis (People, Process, Information, Metrics, Facilities) Creates roadmaps to bridge the gap to future state Establishes a common framework for business architecture development. Project Execution Initiation Analysis Design Code Test Deploy Closeout
3 Engagement Model Engagement Points United s Business Architecture Engagement Model Strategic Discussions with Business and IT Strategic Planning Efforts Portfolio Program and Project Inception Program and Project Feasibility Phases Strategic Plan Associations to Level 2 business capabilities provides holistic view and shared understanding of impact Insight at business capability level to opportunities/risks Provides common business architecture framework aligning roles to processes to applications, systems and data flow Guidance/Governance Govern - Enterprise Capability Model Govern -current/future state process/workflows Govern - capability associations representing current state Guidance - impact analysis regarding stakeholders, processes, change requirements and apps ( part of SDF workflow) Guidance high level scope definition Programs/Projects Alignment between programs / projects and enterprise strategies, goals and measurements Process optimization identification Identify type and degree of change to capabilities & processes (drives if further engagement needed) Requirements and UAT scenario acceleration Provide context for benefit estimation/metric identification efforts Create Enterprise Assets: Capability Associations for Roles, Processes, Applications and Services, Current/Future State Business Processes Models, Value Streams
4 Enabling Strategic Initiatives
5 Current Challenges for Strategic Initiatives Initiatives labeled strategic, but not linked to organization strategy, resulting in unclear strategic benefits and progress to goals Initiatives organized by division, project, or technology resulting in unidentified dependencies Initiatives divided into projects without up-front analysis, yields incomplete scope and missing stakeholders, unrecognized conflicts / synergies Initiatives take a bottom-up approach, assumes every process has a defined owner and no cross divisional requirements
6 Engagement Points for Enabling Strategic Initiatives, Using a Capability-Based Approach Strategic Planning Portfolio Planning Program Enablement Project Enablement 6
7 Engagement Strategic Planning
8 Impacted Capability Identification (L2) Network Planning Goals Reduce Fuel expense Operational efficiency Best practices and continuous improvement for operational decision making Reduce complexity for NOC personnel Network Planning Strategies Optimize flight plan for fuel burn, over fly charges, within on-time goals Manage controllable delays and cancellations Implement state of the art FLIFO/ACARS system that provides flexibility to operations and marketing Provide accessibility to real-time operational data across the enterprise Reduce system maintenance and operational expenses Implement new and enhanced operational decision tools Provide user friendly interfaces to reduce user time and maximize value of new applications Improve cascade of recoding of delays and FLIFO management for UAX flights Gain operational synergies Capability Impact Summary Key Business Programs 8.1 Long-Term Network Planning 8.2 Future Scheduling 8.4 Intermediate Scheduling 8.5 Current Scheduling H.4 Fuel Purchasing & Delivery 2 Stakeholders No Channels 12 Applications
9 Strategies Mapped to Capabilities (L2) Customer Departure Arrival Manage Customer Pre-Travel Experience Manage Check-in (ECO, ECU, Mobile, FastAir) Bags? Yes No Connection Passengers -Provide consistent update frequency and complete info -Resolve automation s multiple failure points Passengers Arrive No Final Yes Destination? Bags? Yes No Passengers Leave Airport Customer Service Representative Reduce complex check-in processes that drive variable staffing Yes IRROPs? No Manage Customer Rebooking Flight Arrives Passengers (Connecting & Terminating) Meet and Assist Incoming Passengers Passengers Claim Baggage Baggage Claim Ramp Personnel Improve MBTA performance and improve resource utilization Manage Outbound Baggage Handling Manage Gate Boarding Service Passengers (Connecting & Terminating) Automate or eliminate simultaneous, time sensitive activities that drive higher staffing Flight Departs Unloaded Baggage Manage Inbound Baggage Terminating Baggage Monitor and Maintain Baggage Claim Area Connection Baggage
10 Engagement Portfolio Planning
11 Impacted Capabilities Identification (L3) Impact by Business Unit & Other Business Unit(s) Impact by Business Unit Impact by Other Business Unit(s) No Impact 8.1 Long-Term Network Planning 8.2 Future Scheduling 8.3 Alliance Partners Evaluation 8.4 Intermediate Scheduling 8.5 Current Scheduling H.4 Fuel Purchasing & Delivery Determine Long-Term Industry & Prepare Route Forecasts Investigate Potential Airline Agreements Assess Unconstrained Demand Develop Route Options H.4.1 Plan Fuel Needs Create Route List Update Industry & Economic Assumptions Assess Alliance/ Partnership Value Assign Draft Fleet Schedule Develop/Agree Action Plan H.4.2 Hedge Fuel Produce Network Cost & Revenue Forecast Negotiate, Obtain & Schedule Airport Slots Define Airline Partners Agreement Perform High Level Operational Schedule Communicate Schedule Changes H.4.3 Purchase Fuel Obtain Network Plan Agreement Optimize Through Assignments Ensure Optimal Other Airline Capacity Re-fleet Draft Schedule Monitor Route Profit Performance H.4.4 Perform Fuel Accounting Develop & Evaluate Fleet Plan Obtain New Routes/Markets Agreement Assess Fleet Plan to Partner Impact Produce Final Schedule Provide Holiday/Special Event Volume Evaluate Route Forecast Accuracy Schedule Charter Flights Produce Draft Season Schedule Disseminate Fleet Service Schedules & Timetables
12 Strategy Impact by Capability (L3) Impact by Business Unit & Other Business Unit(s) Impact by Business Unit Impact by Other Business Unit(s) No Impact Overall Strategy Business Unit Impact: Business As Usual Incremental Improvements Significant Improvements Transform Determine Long-Term Industry & Economic Assumptions Other Business Unit Strategy: Finance strategy to overhaul 5-10 year profitability forecasting models to take in to account additional parameters Develop & Evaluate Fleet Plan Synergy: Synergy between fleet planning strategy to divest of less fuel efficient aircraft and purchase new aircraft and network planning strategy to more closely align fleet with capacity demand Optimize Through Assignments Conflict: Network Operations strategy to improve flight number utilization by investing in flight number optimization in conflict with Operations strategy to reduce impact of through flight handling issues, by eliminating through flights, except where required for legal or marketing reasons Assign Draft Fleet Schedule Other Business Unit Strategy: Aircraft Maintenance & Marketing strategy to expand Economy Plus in Q4. This will change the capacity of upgraded aircraft.
13 Engagement Program Enablement
14
15 Program Business Readiness Approach Objective Conduct Initial Assessment Identify and understand impacted processes Ensure all aspects and stakeholders considered Identify Gaps and Differences Specifically identify what will change (to support training, communication, and testing) Categorize Gaps and Differences Define change impact Communicate change impact Decide if any remediation is warranted Action For each capability: Assess the processes impacted Identify stakeholders Collect existing process documents (or create, as needed) Use process documents to facilitate discussion Produce a list of differences Label each difference as gap, accepted difference, or follow-up Prioritize gaps and train to differences
16 Program Business Readiness Applications Deliverables Training Plan / Materials Highlights business impacts, and need for training/communication Allows training team to estimate duration & type of training delivery required Provides the basis for training scenarios Testing Plan/Scripts Provides the basis for business functional test / dress rehearsal scenarios Business Readiness Task Identification Identify outstanding activities or decisions required prior to implementation Communication Plan / Materials Communicate end-to-end process and change impacts to extended stakeholder group (upstream/downstream impacts) Identify additional stakeholders requiring communication Identify regulatory impacts
17 Stores / Warehousing Order from Vendor Order from Internal Sample Deliverable: Integration Stores Receives Material Material Arrives at the Receiving Dock Gap: No auto-generation of stock replenishment orders at time of receipt (station queues are monitored for needs) POs and ROs are Sorted Type of Order PO Paperwork and Parts are Reviewed for Discrepencies Warehouse Creates Part Exception Yes Is there an Exception Required? No - Inspection Not Rquired Enhancement: Ability to define multiple controlled stockrooms for a part (vs. primary bin) Parts Stored in Exception Cage No Receiving Paperwork OK? Yes Stores Bins Material Log Exception QA - Inspectors RO No - Inspection Needed Material Inspected SCEPTRE Accounting Migration Dependency: Data harmonization needed for chemical receipt requirements (Chem5 database -> SCEPTRE/TO Portal) RO is Inputed into SCEPTRE Accepted Difference: Inventory ownership occurs in SCEPTRE upon binning (vs. upon receipt) Payment Process of Accounts Payable Status Updated Invoice Approval Exception Transmitted to Buyer Resolve Part Exception Purchasing Yes Exception Resolved? No Returns Returns Process
18 Sample Deliverable: New Product Development Refund Department «RASCAL» Store Refund Receipt Number (444) Receipt Number (444#) Receipt Number (444#) Request «RASCAL» 4 Extract Receipt Number «RASCAL» 5 Route 444 Refund Tickets to Customer Care Customer Care RASCAL 444 Tickets «united.com» 3 Submit Refund Request Using Receipt Number «KANA» 6 Capture Refund Requests ( ) 444 List «Excel, XML or CSV» 7 Collect RASCAL and List and Submit to LTV 12 Receive Success Confirmation Refund Successful Refund Failed 21 Direct Customer to Credit Card Company Custome r Purchase Onboard Wi-Fi Credit Card and Customer Info. Submit Refund through United.com Refund Path? « Receipt» 2 Determine Refund Path Customer Care Receipt Number (444#) 444 List (RASCAL and ) Refund Successful Customer End Refund Denied 20 Request Refund Status - Card Rejected Live TV «LiveTV Portal - Purchase» 1 Generate Receipt Number (444 #) and Receipt Receipt Number (444#) 8 Submit Refunds to Credit Card Company for Processing «Automated» 11 Communicate Refund Successful Refund Successful Resubmit Request «Automated» 14 Confirm Refund Declined w ith Reason Code « » 15 Resolve Refund Failures «Weekly» 17 Send Wi-Fi Refund Report TBD Distribution Group 19 Receive Resubmit / Try Again Request Resubmit Request «Automated» 18 Send Resubmit / Try Again Later Request Credit Card Company 18 Presentation Title «Automated» 9 Process Refund Request and Send Refund Status 10 Send Refund Success Confirmation Yes Refund Successful? No - Unrecoverable Reason «Automated» 13 Send Confirmation Refund Attempt Failed No - Recoverable Reason «Automated» 16 Send Message to Try Request Again 22 Provide Credit Card Denial Reason End Process
19 Engagement Project Enablement
20 United Enterprise Architecture Strives to be a Single Source for Projects to Understanding Change Business and IT Stakeholder Identification Application and System Impacts PCI / SOX Compliance Impacts Process Change 20 Presentation Title
21 Business Architecture Home Page BUSINESS CAPABILITY STRATEGIC PLANNING PROGRAM & PROJECTS Business Capability links to Organizations, Channels, Applications and Current-State Process Models; includes Business Capability Model Hierarchy Strategic Planning links to Roadmaps and Strategy Mapping/Alignment models with associations to Business Capability Program & Projects links to Future-State Process Models and Impact Analysis Shared Document Library Published Business Architecture Artifacts
22 Value Summary Strategic Planning Synergies, conflicts, and opportunities identified early in process, able to influence investments Portfolio Planning Streamlined roadmaps, due to improved sequencing and dependencies identification Program Enablement Efficient approach to identifying scope Example: identified over 200 differences for harmonization during tech ops migration by reviewing all processes associated with 5 L2 capabilities, within 6 weeks Project Enablement Requirements and UAT acceleration Example: Reduced spend for requirements definition by 66k by providing business architecture deliverables.
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