From Capability-Based Planning to Competitive Advantage Assembling Your Business Transformation Value Network Marc Lankhorst, BiZZdesign Iver Band, Cambia Health Solutions INTRODUCTIONS 2 1
Marc Lankhorst +31 6 44 092 359 m.lankhorst@bizzdesign.com http://nl.linkedin.com/in/marclankhorst http://blog.bizzdesign.com http://www.bizzdesign.com http://www.twitter.com/marclankhorst 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 3 BiZZdesign: Building Strong Organizations! Organizations increasingly need to deal with timepressured 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 4 2
BiZZdesign Worldwide: Offices and Resellers BiZZdesign office BiZZdesign reseller 5 Iver Band iver.band@cambiahealth.com http://www.linkedin.com/in/iverpdx http://www.cambiahealth.com/ http://www.twitter.com/iverband 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 6 3
Our Story 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 7 About Cambia A tax-paying nonprofit headquartered in the Pacific Northwest 5,300 employees in 30 states Nationally recognized: Top 100 Healthiest Workplaces 22 companies and growing 100 million people touched nationwide 8 4
Cambia Health Solutions Wholly Owned Companies Direct Investment Companies Health Insurance Wholly Owned Companies Direct Investment Companies Health Insurance 9 Agenda Introduction Enterprise architecture The use of models Capability-based planning Enterprise portfolio management Agile realization Conclusions 10 5
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 11 ENTERPRISE ARCHITECTURE 12 6
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 13 What Kinds of Enterprise Architectures Are There? Enterprise architectures can be partitioned by enterprise segment or capability 14 7
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 15 How do Enterprise Architectures Relate to Solution Architectures and Roadmaps? Roadmap Baseline Plateau Intermediate 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 Target Plateau 16 8
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 17 TOGAF - The Open Group Architecture Framework 18 9
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 19 TOGAF, ArchiMate Core and Extensions Motivation H Architecture Change Management Preliminary A Architecture Vision TOGAF ADM B Business Architecture ArchiMate Core Business Business Architecture G Implementation Governance Requirements Management C Information Systems Architectures Data Architecture Application Application Architecture F Migration Planning E Opportunities and Solutions D Technology Architecture Technology Technology Architecture 20 10
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 21 EA Relates and Supports Other Disciplines Strategy Governance, Risk & Compliance Capability-Based Planning Process, Rule & Data Management Enterprise Architecture Enterprise Portfolio Management Service Management Design, Development & Delivery Program & Project Management 22 11
Enterprise Architecture Role in Business Transformation Planning and Oversight Business capabilities required Recommended investments with benefits and costs Capability-Based Planning Business cases and budgets Results realized Enterprise Architecture Implementation roadmaps and oversight Realized architecture Initiative evaluation and comparison Program & Project Management Enterprise Portfolio Management Funded initiatives Value delivered Resources and budget used 23 THE USE OF MODELS 24 12
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 25 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 26 13
Model-Based Architecture: Business Layer 28 Model-Based Architecture: Application Layer 29 14
Use ArchiMate to Connect Other Models 30 Relating Goals & Capabilities to Target Architecture & Programs Business Goals Business Capabilities Architecture Plateaus Change Programs 31 15
CASE STUDY: IMPROVING PROJECT MANAGEMENT TOOLING IN RESPONSE TO THE CHANGING ROLE OF THE CONSUMER 32 US Healthcare Payer Challenges Drivers from Gartner Group Business Drivers of Technology Decisions for Healthcare Payers, 2014, December 2013 33 16
Typical Disconnected Project Management Toolset Hampers Decision-Making and Execution 34 Architected Project Management Toolset Enables Better Decisions and More Efficient Execution 35 17
CAPABILITY-BASED PLANNING 36 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 37 18
Business Capability Map 38 Capability Based-Planning: Capability Increments in Different Dimensions Analysis and planning of capabilities using an ArchiMate model and various metrics 39 19
Architecture Analysis: from As-Is to To-Be 40 ENTERPRISE PORTFOLIO MANAGEMENT 41 20
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 Critical Front office Back office Retirement 42 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 Projects Project portfolio Roadmaps Asset portfolio 43 21
Adding Data to the Architecture Asset inventories Architecture Repository Presentations Contract information Checklists Project planning Architectures 44 Portfolio Dashboard: Actionable Information 45 22
Application Landscape with Life Cycle Advice 46 REALIZATION 47 23
4 3 2 1 2014-11-03 Towards Agile Realization Strategy Portfolio Business epics Program portfolios Architecture epics Iteration Program Architectural features Architecture runway Iteration Agile Release Train DevOps Team Daily work Iteration Agile development Continuous integration 48 Sustainability with an Architectural Runway Balanced Investment 50 24
How Do We Make That Work Within Our Teams? High Level Business Case Informed by Prioritized Business Capabilities Business Objectives Functional Requirements and Use Case Development Owned by Product Owner and overall Business with review by Architects and Leads Informed by Enterprise Architecture 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 51 CONCLUSIONS AND DISCUSSION 52 25
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 53 Business Transformation Management is a Composite Capability That Benefits from An Architectural Approach Strategy Capability- Based Planning Business Transformation Management Service Mgmt Design, Development & Delivery Enterprise Portfolio Mgmt Enterprise Architecture Process, Rule & Data Mgmt Program & Project Mgmt 54 26
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 55 Think like an architect when building your business transformation value network! 56 27
Questions? Marc M. Lankhorst Service line manager Enterprise Architecture m.lankhorst@bizzdesign.com +31 644 092 359 Webinars, blogs, e-books, customer stories, training portfolio, software and more on www.bizzdesign.com Iver Band Enterprise Architect iver.band@cambiahealth.com Related presentations and articles available at slideshare.net/iverband 57 2014 BiZZdesign. All rights reserved. BiZZdesign and BiZZdesign logos are registered trademarks of BiZZdesign Company. 28