Business Model Transformation. Pioneering Business Models through Business Architecture Transformation

Transcription

1 Business Model Transformation Pioneering Business Models through Business Architecture Transformation

2 Introduction to Business Model Transformation 3.0 Cordial has developed a holistic methodology framework to analyze, innovate, design and realize business models, Business Model Transformation (BMT). We apply this methodology in our daily work and it has since its launch been used in more than 2000 engagements. BMT provides us with a holistic and coherent frame of reference which enables us to successfully carry through transformations of business architectures, large and small, in order to realize pioneering business models. In November 2014 we launched the the third completely revised version of our methodology, BMT3.0. 2

3 Cordial s Framework for Business Architecture Business Strategy Business Models Business Processes Organization Management IT Q2 Application Information Q1 Q3 Service Q4 3

4 What is a Business Architecture? A business architecture is a holistic representation of all relevant dimensions needed when designing, developing and managing an organization dedicated to creating value for its customers and stakeholders. The specific business architecture of an organization includes the Strategic Intent and clearly defines the portfolio of Business Models that must be executed in order to operationalize the strategy. The business models are supported by four essential structural dimensions: Processes, Organization, Management & Governance and Infrastructure & IT. The Business Architecture Framework is a logical and focused frame of reference which ensures that strategies and structures can be designed and completely aligned in a straightforward way. Cordial developed the Business Architecture Framework in 2005 and launched the world s first professional training program in business architecture in Since then, more than 2000 people from 25 countries have been certified. 4

5 Business models operationalize strategy (execution) Processes, competences, structures Value proposition Customer segments, channels, relations Cost Profit Revenue A business model is a conceptual tool that contain a set of components and describe their relations and interconnections in a way that makes the business logic of a specific firm visible and concrete. It is a description of the value a business activity offers one or several segments of customers, and a description of the value the business architecture and the partner network create, market and deliver and which generates profitable and lasting revenue streams. 5

6 BMT Business Model Transformation in four phases ANALYSIS INNOVATION DESIGN REALIZATION ANALYSIS OF INNOVATION OF DESIGN OF BUSINESS ARCHITECTURE REALIZATION OF Cordial has developed a holistic methodology framework to analyze, innovate, design and realize business models. Our approach is based on a conviction that competitive and flexible business models are best deployed by grasping the significance of the entire business architecture, including industry dynamics, strategic choices and the structures underpinning a modern organization. Cordial s approach to pioneering business models has been deployed within leading companies in, among others, telecom, energy, banking, insurance, travel, retail and forestry industries. 6

7 The business architecture framework provides a holistic and robust platform for business model transformation Business Strategy Business Models Business Processes Organization Management IT Q2 Applicatio n Information Q1 Q3 Service Q4 The need for business model transformation can be triggered by many factors, e.g. changing industry dynamics and customer behaviors/needs, changes to shareholders` agendas and directives, new strategies, cost pressure or significant IT replacements. Regardless of the triggers, a transformation has consequences for all parts of the business architecture. The business architecture framework helps us better understand the consequences of the transformation in all relevant areas, as well as the changes needed to arrive at a new end state. 7

8 BMT compresses the time to realize transformations by deploying a structured and proven approach TRANSFORMATION DESCRIBE END STATE NAVIGATE JOURNEY REALIZE EFFECTS END STATE Value CURRENT STATE Desired journey Actual journey Our promise Time The BMT methodology enables you to lead successful transformations by deploying a structured and battle tested approach that ensures: Time compression of the journey Time compression of effect realization by improving organizational acceptance (more people changing working practices and behaviors) 8

9 Sustainable results are a function of the quality of the solution (S) and its acceptance within the deploying organization (A) R =ƒ(s,a) We know and carefully consider that sustainable results are a function of both the quality and the acceptance of the solution. 9

10 How big a transformation is necessary to realise the desired endstate? TRANSFORMATION 10

11 The transformation to the desired end state is the sum of the gap in each dimension of the business architecture STRATEGY utsträckning är strategierna 1 kommunicerade och förstådda Strategi 1-6 Förståelse strategi 7-9 internt? Acceptans strategi 7-9 BUSINESS MODEL utsträckning är 1 dagens affärsmodeller definierade Koncern Dotterbolag utsträckning klarar 2 vi att optimera portföljen av affärsmodeller? utsträckning ska vi samarbeta och 3 nyttja varandra i kundgränssnittet avseende erbjudanden? utsträckning ska vi 4 samverka mot Bearbetning Prioritering Bearbetning gemensamma kunder? ORGANISATION utsträckning har vi en styrmodell som 1 möjliggör samverkan mellan Kvalitet bolag, projekt och konsulter? utsträckning har 2 den lokala entreprenören beslutsmandat? utsträckning lever 3 medarbetarna de uttalade värderingarna? MANAGEMENT utsträckning ska ledande, 1 utvecklande och stödjande funktioner vara centrala? utsträckning är den 2 framtagna organisationen implementerad? Kvalitet Struktur Struktur 5 utsträckning behöver vi samarbeta med partners för att leverera våra erbjudanden? 3 utsträckning har vi rätt kompetens på plats för att leverera nuvarande och framtida erbjudanden? PROCESSES Ekonomisk planering och uppföljning Säljsamverkan IT utsträckning ska vi 1 ha en koncerngemensam IT-infrastruktur? 1 utsträckning ska ledande, utvecklande och stödjande processer vara centrala? Affärskontoret 2 utsträckning ska vi ha koncerngemensam ma IT-lösningar? 2 utsträckning ska lokala processer vara standardiserade? Leveransprocessen 3 utsträckning har vi idag de ITlösningar som krävs för att realisera uppsatta mål? Gemensam data Intranät 3 utsträckning är dagens processer utformade för att leverera lösningar baserat på teknisk spetskompetens och god förståelse för kunden? Operativt Strategiskt 11

12 What s new in BMT3.0? Transformation in four phases and 20 steps, instead of 3 phases and 15 steps Previous R1 has become a separate phase Design the business architecture Updated templates and tools for each step Improved pedagogics for each step Clearer delineation between each step Clearer links for iteration both within and between the phases We offer a two day training program for Business Architects providing an update from version 2.0 to 3.0 of Business Model Transformation 12

13 BMT3.0: Structural clarity, improved agility ANALYSIS REALIZATION INNOVATION DESIGN 13

14 High level description of the four phases ANALYSIS INNOVATION DESIGN REALIZATION ANALYSIS OF INNOVATION OF DESIGN OF BUSINESS ARCHITECTURE REALISATION OF Based on a solid understanding of industry dynamics, the analysis phase builds a platform for fact based innovation. With a structured analysis of market forces and the current portfolio of business models, we can identify key areas for innovation. It is necessary to fully understand the strategic intent and how it may need adjustment as a consequence of the desired end state. Successful innovation of business models presumes a deep understanding of the true needs of prioritized customer segments and how to meet these needs with attractive value propositions. The chosen value propositions are realized through carefully crafted business models. The new portfolio of business models must be capable of achieving the desired end state as well as delivering the overall strategic objectives. Clearly defined strategic business requirements are the centerpiece for the effort of designing the enabling structures that will operationalize the revised portfolio of business models. The design phase zooms in on business processes, capabilities, organization, competencies, governance models, information, IT and other infrastructure. Based on the strategic business requirements, we describe a target architecture for the enabling structures. This becomes the baseline for design a realistic, realizable solution architecture. Realization presumes a structured approach that understands and includes three main elements: the newly designed business architecture, the receiving line organization and the transformation organization. The sustainable result of a business model innovation is a function of the quality of the solution and the level of acceptance among all relevant stakeholders. 14

15 Transformation of business models in four phases ANALYSIS INNOVATION DESIGN REALIZATION A1 Analyze the market and the competitive landscape I1 Segment customers and understand their needs, behaviors D1 Define and prioritize strategic business requirements R1 Build a change strategy and design its implementation A2 Verify & update the strategic intent and the desired market position I2 Define concrete and attractive value propositions D2 Survey existing supporting structures R2 Organize and mobilize the available organizational resources A3 Identify and describe the current business model portfolio I3 Identify enablers for future business models D3 Determine the required degree of transformation in each structural dimension R3 Establish structural preconditions for the change A4 Analyze the identified business models and business model portfolio I4 Suggest new or redesigned business models D4 Design ideal architecture R4 Drive execution of the change. A5 Define the desired position and strategic goals per business model I5 Detail and prioritize new and redesigned business models D5 Design solution architecture R5 Reinforce the change to secure sustainable results 15

16 Deliverables per phase ANALYSIS INNOVATION DESIGN REALIZATION ANALYSIS OF INNOVATION OF DESIGN OF BUSINESS ARCHITECTURE REALISATION OF Market and industry analysis Strategic intent and desired market position Identified and analyzed business models and business model portfolio Objectives and desired end state per business model Customer segmentation Customer needs analysis Crisp and attractive value propositions Designed and tested future business models Strategic business requirements Survey of existing supporting structures processes, capabilities, organization, competencies, governance, information, IT support and other infrastructure Analysis of the necessary degree of transformation in each structural dimension based on each business requirement Target architecture for the enabling structures Program directive including business case and other documentation needed for executive decisions Program organization Project plans for the various projects/ initiatives Change strategy Selected methodologies and tools to drive the change program Realized initial change Sustainable change Solution architecture for the enabling structures 16

17 Developing critical enablers for successful transformation of business architecture Lead the transformation Initiate the transformation A1 A2 A3 A4 A5 ANALYSIS INNOVATION DESIGN Analyze the market and the competitive landscape Verify & update the strategic intent and the desired market position Identify and describe the current business model portfolio Analyze the identified business models and business model portfolio Define the desired position and strategic goals per business model I1 I2 I3 I4 I5 Segment customers and understand their needs, behaviors Define concrete and attractive value propositions Identify enablers for future business models Suggest new or redesigned business models Detail and prioritize new and redesigned business models D1 D2 D3 D4 D5 Define and prioritize strategic business requirements Survey existing supporting structures Determine the required degree of transformation in each structural dimension Design ideal architecture Design solution architecture REALIZATION R1 R2 R3 R4 R5 Build a change strategy and design its implementation Organize and mobilize the available organizational resources Establish structural preconditions for the change Drive execution of the change. Reinforce the change to secure sustainable results Develop capabilities that can drive successful transformations Provide architectural support for the transformation 17