BUSINESS ARCHITECTURE - Object Management Group

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BUSINESS ARCHITECTURE:A KEY ENABLER FOR STRATEGY REALIZATION2015 Business Architecture Innovation SummitReston, VABUSINESSINNOVATIONPARTNERSWhynde KuehnJeff ScottCopyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosedwithout express written authorization.

Strategy to Execution: BUSINESS INNOVATION PARTNERSCompetitive AdvantageThe very ability to get strategiesinto action quickly and well is nowCOMPETITIVE ADVANTAGEMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.2

BUSINESS INNOVATION PARTNERSThe Need for Business Architecture“Today, if your firm cannot react appropriately tomarket, competitive, and environment shifts, there is nochance your firm will thrive. To survive, you need tomake appropriate strategic choices, understanding theinterplay of the environment and internal decisions.Successful firms are recognizing benefits fromembedding business architecture into their strategicplanning processes.”Source: Forrester Research (Build Confidence in Strategic Decision-Making With Business Architecture by Barnett and Miers, April 4, 2014)“High performance EA is business-focused, strategic,and pragmatic. It helps business and IT understandbusiness strategy, capability gaps, and priorities. Itshapes investment plans and change programs.”Source: Forrester Research (Getting Ready for High Performance EA by Alex Cullen, December 12, 2014)March 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.3

BUSINESS INNOVATION PARTNERSThe Need for Business Architecture“No organization can win if its parts are not all alignedto execute the same strategy and achieve the same goals.Even the “perfect” strategy within a competitivelyadvantaged business model will ultimately fail if theorganization is not fully aligned internally and does notunderstand how to execute the strategy, or if it works atcross-purposes.The company that has not aligned its internal resourcesin pursuit of a precisely defined goal is wastingresources it can no longer afford to squander. And thecompany that can’t execute with ever greater speed isone that risks being left behind.”Source: Rick Kash and David Calhoun, How Companies Win (2010)March 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.4

BUSINESS INNOVATION PARTNERSStrategy Execution Is the BIG Problem 37% of executives say their companies are “very good or excellent”at strategy execution. Only 23% blame current economic conditions as a major factorin their lack of execution 53% of implementers cannot state their company’s strategy in its entiretySource: HBR survey of 1,000 executives 60% of typical organizations do not link their strategic priorities to their budget 66% of HR and IT organizations develop strategic plans thatare not linked to the enterprise strategy 95% of employees in most organizations do not understandtheir organization’s strategySource: Robert Kaplan, Harvard Business Review 70% of typical organizations do not link their strategic priorities to their budgetSource: Mark Hughes, Journal of Change ManagementMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.5

BUSINESS INNOVATION PARTNERSStrategy Diffusion Is the fficient55%49%March 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.6

BUSINESS INNOVATION PARTNERSWhere Is Your Strategy Process?OrderCashProspectClientConceptProductOrder office suppliesTravel expense managementPerformance reviewsStrategyMarch 24, 2015?Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.Execution7

Order Post-it Notes ProcessOrderMgmt. BUSINESS INNOVATION PARTNERSFill outonlinerequestRejectOrderGeneralLedgerNoCheck budgetFundsavailable?Debit ch 24, derOrderreplenishmentExternalProviderPick & packNoSend updatenotificationItem pickupScheduledeliveryUpdate routeDeliverPost-it NotesCopyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.8

Go do soms ething?Everyone ElseExecutiveManagement BUSINESS INNOVATION PARTNERSImplement Strategy ProcessMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.9

BUSINESS INNOVATION PARTNERSThe OpportunityMake the Strategy to Realization valuestream a competitive advantage.A good Strategy to Realization value stream enables you to:March 24, 2015 Design your future holistically and then implement it throughreal top-down planning, with continuous delivery Focus investments where they matter most Know exactly what you do and enable rapid change withoutdoing “archeology” every time Make more informed decisions, faster Create integrated, customer-centric experiences Increase efficiency by streamlining, integrating and reducingredundancy of capabilities and their associated processes,people and technologyCopyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.10

BUSINESS INNOVATION PARTNERSCOMMONCHALLENGESBad strategy or non-strategyStrategy and Business ArchitectureHOW BUSINESSARCHITECTURE HELPSBusiness Architecture can’t fix strategy. However,Business Architects can ask good questions toguide or clarify it. They can also show the resultslater on to illustrate an “unintentional strategy.”Uninformed strategyInform strategy with current state and impacts.Siloed strategyInform strategy by showing impacts across theenterprise. Ensure a holistic, integratedarchitecture.Thinly described strategyMap strategy to get it documented and ask goodquestions to guide or clarify it.Strategy diffusionMap strategy to get it documented and createTarget Architectures to translate how the strategywill be “operationalized”.Not helpfulMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.Very helpful11

BUSINESS INNOVATION PARTNERSCOMMONCHALLENGESPlanning and Business ArchitectureHOW BUSINESSARCHITECTURE HELPSNo enterprise-wide view ofneeds and gaps—or how andwhen they are being addressedProvide the enterprise-wide view of high-level,business-focused execution through strategicroadmap(s) and from a top-down perspective.Initiatives are not linked tostrategiesProvide end-to-end traceability.Poor visibility on howinvestments performProvide end-to-end traceability; tie consistent metricsto architecture.Inability to prioritizeProvide insights on what parts of the architecturewill achieve desired business results. Provideinsights on how to optimize investment within andacross portfolios by using a common framework.Redundant investmentsProvide insights on how to optimize investment withinand across portfolios by using a common framework.Initiative scope issuesProvide high level scope for initiatives.Not helpfulMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.Very helpful12

BUSINESS INNOVATION PARTNERSStrategy and Business ArchitectureSo with Business Architecture: Strategic decision-making is better informed Strategy is better articulated All impacts are known (and quickly) People actually know how to implement the strategyand in a concerted wayMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.13

BUSINESS INNOVATION PARTNERSPlanning and Business ArchitectureSo with Business Architecture: Planning and Portfolio Management decision-makingis better informed Performance measurement is transparent Strategic investment is more balanced Initiatives are executed more efficientlyMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.14

BUSINESS INNOVATION PARTNERSHow Do We Get There?Bridge the gap between strategy and execution.When evaluating or defining the Strategy to Realization value stream,keep in mind: The scope is the enterprise and requires close partnership acrossstrategy, architecture, planning and execution functions Business Architects can help to steward this, but it needs an owner Not all of the necessary functions or stages may exist in yourorganization (or may not be working as well as they should) The role of Business Architecture may not be evident to manypeople in the organization; this will require dialogue and proving thedisciplineMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.15

Realize Strategy(From Strategy To Execution) BUSINESS INNOVATION PARTNERSSTRATEGICPORTFOLIO DESIGN Map Interaction Points Prioritize Initiatives Shape Investment PlanSDevelop Goalsand StrategyAArchitectChangesBA RoleA PDevelopRoadmapE PExecuteSolutions Organize Changes into aStrategic Roadmap (Sequence) Resource AnalysisEstablishDirectionand GoalsGatherIntelligenceBA RoleAdvanced BusinessArchitecture:Inform Strategy Identify PossibleDevelopment:Scenarios Capability ClarifyAssessmentDifferentiation IT Assessment Identify Major Technology TrendsImpactsDefineStrategy IdentifyOrganizationalImpacts (“What If”) Map StrategyAClarify Goalsand StrategyBA Role Map Strategy Provide High Level ScopeDefinition Provide Framework forRequirement Accelerationand Reuse Clarify Customer ExperienceTargets Collaborate with EA and PMsto Create ConceptualSolution ArchitecturesAAssessStrategyImpacts andRequirements Identify ArchitectureImpacts Identify CapabilityEnhancements Research Industry BestPractices Identify Foundational ITArchitecture NeedsE PMeasureProgress Create Strategy LevelDashboards Asses Challenges Identify Roadblocks Recommend Changes to PlanAPackageStrategy forConsumption IdentifyDependencies Identify Synergies Address Impacts Develop TargetArchitecture*It is assumed that the current architecture exists in a knowledge base as a baseline.SStrategyMarch 24, 2015PPlanningAArchitectureEExecutionCopyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved. Contains CONFIDENTIALinformation, which may not be disclosed without express written authorization.16

Where Do I Start? BUSINESS INNOVATION PARTNERSDefining/Refining the Realize Strategy Value StreamTHE PERFECT WORLD(Enterprise Definition)Do YourResearch Who owns it? How well does it work?Do YourHomeworkProposeEnhancements Are there missing pieces? Is Business ArchitectureEmbedded? What improvements canbe made?THE REAL WORLD(Start Where You Can)Do YourResearch How does it work today? What are gaps and painpoints? What benefits could itprovide? Who could be advocates? Is anyone else doing it?March 24, 2015ImplementEnhancementsDefine and ImplementStrategy RealizationValue StreamMakeYour Case Share opportunity forimprovement. Share what’s possible. Propose and approach.Take InterimSteps Form partnerships and pilotparts of the value stream. Introduce ideas when youcan.Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.17

BUSINESS INNOVATION PARTNERSThe Reality This is a journey which takes time; be patient Be prepared for the challenges of changeMarch 24, 2015‒Changes to roles and responsibilities‒New collaboration points‒Changes to ownership and decision-making‒Introduction of accountability and formalizationCopyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.18

BUSINESS INNOVATION PARTNERSThe Bottom Line Strategy clarity is poor in most organizations‒ Challenge the organization to clarify strategystatements Recognize that strategy development strategyexecution‒ Help “package” strategy for execution Executives need help in realizing their vision andstrategy‒ Show them how business architecture can help You don’t need authority, permission, or a budget‒ Just do it!March 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.19

Just Do It! BUSINESS INNOVATION PARTNERSZJ. K. RowlingStephen SpielbergJay LenoAuthorHarry Potter seriesFirst film industry job – unpaid internFirst job - car washerMarch 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.20

Stay in Touch BUSINESS INNOVATION PARTNERSBUSINESSINNOVATIONPARTNERSJeff ScottE-mail: TJeffScott@gmail.comPhone: 704.275.1725March 24, 2015Whynde KuehnE-mail: whynde.kuehn@stagrp.comPhone: 347.880.1637Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.21

BUSINESS INNOVATION PARTNERSQUESTIONS?March 24, 2015Copyright 2015 STA Group, LLC. & Jeff Scott All Rights Reserved.22Contains CONFIDENTIAL information, which may not be disclosed without express written authorization.

embedding business architecture into their strategic planning processes.” Source: Forrester Research (Build Confidence in Strategic Decision- Making With Business Architecture by Barnett and Miers, April 4, 2014) “High performance EA is business-focused, strategic, and pragmatic. It helps business and IT understand business strategy, capability gaps, and priorities. It shapes investment .

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