Developing A Business Architecture Blueprint Service

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DEVELOPING A BUSINESS ARCHITECTURE BLUEPRINT SERVICE TROY NELSON, CARESOURCE THE BUSINESS ARCHITECTURE SUMMIT Dec 2022 1

INTRODUCTION Troy Nelson ¡ Enterprise Architect III, CareSource ¡ Member-at-Large Board Member, TCBAF ¡ Insurance Industry Reference Model Team, Business Architecture Guild ¡ Certified Business Architect, Business Architecture Guild (2016) ¡ https://www.linkedin.com/in/troynelson/ THE BUSINESS ARCHITECTURE SUMMIT December 2022 2

CARESOURCE QUICK FACTS ¡ CareSource’s managed care business model was founded in 1989 and today CareSource is one of the nation’s largest Medicaid managed care plans. ¡ Headquartered in Dayton, Ohio ¡ CareSource serves more than 2 million members across six states supported by a growing workforce of 4,500. ¡ Our Mission ¡ To make a lasting difference in our members’ lives by improving their health and well-being. ¡ Our Vision ¡ Transforming lives through innovative health and life services. THE BUSINESS ARCHITECTURE SUMMIT December 2022 3

CARESOURCE’S BUSINESS ARCHITECTURE PRACTICE ¡ CareSource’s Business Architecture practice is part of the Enterprise Architecture team ¡ EA team uses Orbus iServer as our primary architecture tool ¡ In 2020, launched a reset / maturing focus on the business architecture practices: ¡ Existing capability model rebuilt leveraging Business Architecture Guild’s industry reference models ¡ Defined initial Information Map ¡ Introduced Value Stream concept ¡ Integrated Strategy Mapping into annual portfolio planning process ¡ Refresh of EA Services catalog THE BUSINESS ARCHITECTURE SUMMIT December 2022 4

VALUE PROPOSITION: BLUEPRINT SERVICE Products and Services Gain Creators Integrate business architecture concepts into strategy and project planning Engage in the business case development process Business Case development support Blueprint Services Pain Relievers Know the business case process VERY well Gains/ Positive Outcomes Clear Strategy Story Ability to segment the strategy into funding-ready units Pains/ Obstacles Business-case focused funding model Jobs/ Outcomes Define & Communicate business unit strategy Establish roadmap for executing the strategy Multiple definitions of a “strategy” Bring a strong POV on Strategy No standard templates Develop a set of templates to tell multiple stories from multiple perspectives THE BUSINESS ARCHITECTURE SUMMIT December 2022 5

EA’S GOALS FOR THE STRATEGIC BLUEPRINT SERVICE ¡ Provide IT with earlier visibility into strategy discussions (part of EA’s “Shift-Left” strategy) ¡ Must be EA-led, some support from Solution Architecture ¡ Leverage the new Business Capability Model; drive capability-based thinking in the organization THE BUSINESS ARCHITECTURE SUMMIT December 2022 6

RESOURCES AND INFLUENCES ¡ “Good Strategy Bad Strategy: The Difference and Why It Matters” Richard Rumelt ¡ Formed the basis for the Strategy discussions ¡ Gartner Case Study: “Interconnected Business Capability Mapping (Medtronic)” ID G00728396 ¡ Influenced how we zeroed in on “capability clusters” and organized Initiatives around those clusters ¡ What is Strategy? An Illustrated Guide to Michael Porter ¡ Greatly simplifies explaining the Value Chain concepts THE BUSINESS ARCHITECTURE SUMMIT December 2022 7

FRAMEWORK We start with the business perspective, breaking down the subject area strategic vision into its components objectives and Business Unit Strategic Vision key results, the strategies for achieving those objectives and the capabilities Objectives & Key Results Strategies / Strategic Imperatives Critical Business Capabilities required by those strategies THE BUSINESS ARCHITECTURE SUMMIT December 2022 8

FRAMEWORK Separately, an assessment of the IT systems, data and infrastructure delivering the needed capabilities will be completed to determine gaps or opportunities to improve IT Organization business capability performance IT Systems & Services THE BUSINESS ARCHITECTURE SUMMIT Key Information & Data Technology Infrastructure December 2022 9

COMPLETE MODEL AND OUTCOMES Session 1 & 2 “Strategic Framework” Session 3 & 4 “Capability Assessment” Strategic Vision IT Organization Objectives & Key Results Strategies / Strategic Imperatives Critical Business Capabilities IT Systems & Services Key Information & Data Technology Infrastructure Session 5 & 6 “Where to focus” THE BUSINESS ARCHITECTURE SUMMIT December 2022 10

FACILITATION “CANVAS” TEMPLATE (EXCEL SPREADSHEET) ¡ ¡ ¡ Goal/Objective ¡ Key Results Barriers ¡ Diagnosis / Barriers ¡ Desired Outcomes ¡ Related Capabilities ¡ ¡ ¡ then started prioritizing and cutting to get to the goals which best achieve the Drivers ß Used this to build the heat map of critical capabilities Capability Gaps – break out by People, Process, Information and Technology Supporting Value Streams (optional) Approach to Barriers ¡ ¡ ß After 1st pass, you will likely have too many goals. Roll up to “Drivers” (think “Growth”, “Ops Efficiency”, etc.) Ends ß These helped clarify and focus the Strategies and Tactics Guiding Policy Means ¡ Strategies and Tactics THE BUSINESS ARCHITECTURE SUMMIT December 2022 11

SUPPORTING TOOLS ¡ Value Chain – if you use it, introduce it early to establish where this business unit sits in relation to the overall industry and identify the other players who may influence the overall strategy ¡ Business Model Canvas – start populating during the discussions on Vision and Objectives; continue to populate throughout the process ¡ Value Proposition Canvas – optional; use if you need to dive deeper into specific value prop designs for specific customers THE BUSINESS ARCHITECTURE SUMMIT December 2022 12

BUSINESS ARCHITECTURE INFLUENCES siness.html ¡ Strategy and Goals (and slogans) often get mixed ¡ ¡ ¡ ß Basic Business Motivation Model concepts Framework emphasizes defining Goals first (the “Ends”) ¡ Enterprise goals and annual incentive metrics as starting point ¡ Business unit goals added in Then focused on the barriers to achieving the goals ¡ ¡ The Strategy is the “means” to an “end” (the Goal) Points to capability gaps and issues ß Alignment Check – is the business unit aligned to the enterprise? ß Start introducing capability-based thinking here Captured actions required to overcome the barriers (the “Means”) ¡ ß Basic Business Motivation Model concepts Bucketed the actions into tactics and strategies based on scope and level of effort THE BUSINESS ARCHITECTURE SUMMIT December 2022 13

DELIVERABLE DECK SUMMARY ¡ Executive Summary – written by the business unit leader ¡ Business Unit Goals and Outcomes ¡ ¡ ¡ ß This group of slides used with senior execs to tell the overall Driver à Goals à Outcomes business unit story, sections below the line become more “appendix” in those discussions Strategy on a Page ¡ ¡ ß Don’t build this slide until the very end Driver à Goals à Key Initiatives Architecture Perspectives ¡ Value Chain View – Industry level and Organization level (heat mapped) ß Value Chain concept requires a lot of explanation, use with caution ¡ Business Model Canvas (focus on the business unit) ß BMC a key communication tool with leadership and key stakeholders Summary of Barriers ¡ Goal à Barriers à Course of Action ¡ Capability Heat Map ¡ Breakout of the capability gaps (“Critical Capabilities” only) ¡ Technology Architecture ¡ Initiative Map and Roadmap ß If there are few IT issues, place near the end. Move up if more IT issues need to be addressed THE BUSINESS ARCHITECTURE SUMMIT December 2022 14

LESSONS LEARNED FROM INITIAL BLUEPRINTS ¡ The Business Model Canvas was a big win; business unit leaders using it beyond just their immediate strategy planning needs ¡ The structure of the framework, and the order of discussions, provided the structure missing in many strategy discussions ¡ Value Chain getting some traction but can be a sensitive subject when you apply heat mapping at this level; must insure solid socialization before use ¡ In a distributed work environment, everything takes 2-3x longer than you plan; schedule your sessions and set expectations accordingly THE BUSINESS ARCHITECTURE SUMMIT December 2022 15

CARESOURCE'S BUSINESS ARCHITECTURE PRACTICE ¡CareSource's Business Architecture practice is part of the Enterprise Architecture team ¡EA team uses Orbus iServer as our primary architecture tool ¡In 2020, launched a reset / maturing focus on the business architecture practices: ¡ Existing capability model rebuilt leveraging Business Architecture Guild's industry reference models

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