Business Model Design - The Capability Driven Roadmap

- Business Model Design
- The Capability Driven

Roadmap
PRESENTED TO BOCS EA INFO DAY
APRIL 10TH 2014
David OHara
Principal Consultant , Enterprise Architects
DOCUMENT TITLE
ENTERPRISE ARCHITECTS 201 3
- About Enterprise Architects

- Designing the Business Model:
Responding to the challenge of

Disruption
- Creating a Capability-Driven Roadmap

- EA Case Study & Tool Demo
DOCUMENT TITLE
Introduction
20 years in Business-facing roles in the IT industry, mostly
private sector
Telco, Retail, FS
Principal Business Architect (EMEA) at Enterprise

Architects
Architecture practitioner & trainer
David OHara
Enterprise /
Business
Architect
Specialising in Business Architecture over 9+years

Business Engagement
Business Motivation
Capability Driven Planning
Enterprise Roadmaps
Building EA Practices
@DaveO_EA
@enterprisearchs
DOCUMENT TITLE
#EAID2014
Enterprise
Architects
DOCUMENT TITLE
About
Enterprise
Architects
DOCUMENT TITLE
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7
DOCUMENT TITLE
Designing the
Business Model
Responding to the challenge of
Disruption
DOCUMENT TITLE
Overview
The challenge facing Enterprise Architecture: to re-design Business Models
Change is the only constant....so what else is new?
In the Digital economy, both the PACE of change and IMPACT of change are
increasing: market disruption, driven by digital innovation, is occurring more
frequently and with greater effect
New players, differentiated offerings, new Business Models.
For CIOs and Chief Architects, working at the Operating Model layer is not
sufficient to respond to these external challenges
Architecture needs to evolve: from Operating Model design to Business Model
design
DOCUMENT TITLE
Change is moving fasterand the Business

Model shelf-life is shrinking
Who is best placed to respond to this challenge?
so Business Models become stale

and must be renewed
PERORMANCE
ENTERPRISE
BRAND PLATFORM
BUSINESS MODEL
BUSINESS COMPETENCIES
PRODUCT
TIME
Enterprise Lifecycle's
2014 Enterprise Architects PTY LTD
10
DOCUMENT TITLE
As what was once innovative

becomes commoditised, value
discipline orientation changes
Enterprises must learn how to design and

execute Business Models
Who is best placed to
understand and
respond to this
challenge?
Enterprise
Architecture
Architects deeply understand both Business Capability AND Technology

.and how they can be remodelled around changes in business strategy
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Architecture requires a balance of thinking styles

The challenge is identifying the right skills in the organisation that are able to traverse
the domains of innovative, intuitive thinking and reliable, analytical thinking.
Corporate
Governance
GOAL: Reliably produce

consistent, predictable
outcomes
NPV
Value
Engineering
Business
Intelligence
Five Forces
Financial
Modelling
Mission
Enterprise
Patterns
Environmental
Scanning
Stakeholder
Goals
Value
Business
Brand
Architecture
Management
Integrative
Thinking
GOAL: Produce outcomes

that meet desired
objectives
Business
Perception
Model Design
Management
Strategic
Root Cause
Wicked
Traceability
System
Analysis
Problems
Thinking
Portfolio Capability
Analysis
Innovation
Management
Collective
Operation
Business
Intelligence
Management
Analysis
Talent
Six
Cost
Management
Thinking
Product
Engineering
Hats
Quality Management
Crowdsourcing
TOGAF
Management
Knowledge
Data
Ecosystem
visualisation
Six Sigma
IT Governance
Change
Solution
& Lean
Management
Architecture
PRINCE2
Gamification
EVA
ANALYTICAL
THINKING
Search for
The EA Headspace
12
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INTUITIVE
THINKING
Our Focus Areas

* From Roger Martin (2009) The Design of Business
Systems
Thinking
Vision
&
Mission
Coherence
Design
Thinking
Business
Model
Prototyping
Business
Outcomes
Value
Systems
Capabilities
Innovation
13
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Visualisation
What is a Business Model?

Some Definitions
A Business Model is a set of activities
which a company performs, how it
performs them, and when it performs
them, so as to offer its customers value
whilst making a profit
Business Models A Strategic
The Business Model

Market
Model
Operating
Model
Markets
Industries
Customers
Market Segment
Channels
Customer
Relationships
Value Proposition
Offering: Products /
Services
Capabilities
Processes / Value
Chains
Business Services
Functions
Data
Applications
Technology
The Environment
14
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Management Approach
Value
Products and
Service
Model
A Business Model describes the

rationale of how an organization
creates, delivers, and captures value
Alex Osterwalder Business Model
Generation
A Business Model is a framework for

creating value in a coherent manner
Craig Martin, Chief Architect @ EA
The goal of a good

Business Model is to
create coherence
Building coherence requires an understanding of
the components of a Business Model, and how to
assemble them in a manner that is innovative
and differentiating whilst maintaining stability.
A Coherent Business Model is one that is
synchronised around:
The Business Model

Markets
Industries
Customers
Market Segment
Channels
Market Model
Products and
Service Model
Customer Relationships
Value Proposition
Services
its market position,

its product and service portfolio; and
its most distinctive strategic capabilities
All of the above working together as a system
Operating
Model
Capabilities
Processes / Value Chains
Business Services
Functions
Data
Applications
Technology
The Environment
15
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Capability Driven
One of the ways we create coherence is through capability based planning
Capability driven architectures are designed to support the strategic objectives of an organisation
Capabilities consist of people, process and technology

To fully understand a capability all these components must exist regardless of their maturity level
Capability based
planning is one of
the tools that looks
at the best mix of
resources required
to develop this
coherence
16
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Mission
CAPABILITY
Vision
People
Strategies
Goals
Process
Outcome
Tactics
Objectives
Technology
Typical architecture practice maturity

Value
E
The majority of organisations today
sit approximately here on this curve
D
C
B
A
EA = IT Architecture
Improve project
performance
EA = Enterprise-Wide
IT Architecture (EWITA)
Improve IT performance
EA = Strategic Enabler +
BA + EWITA
Improve Market Performance
(Shareholder Value)
EA = Product Architecture + Business

Architecture (BA) + EWITA
Improve Product/Service Performance
EA = Business Architecture (BA)

+ EWITA
Improve Business Performance
Business Architecture is seen

as a positive progression
away from IT
Mandate
*Adapted from Ruth Malan, Dana Bredemeyer
17
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What is Business Architecture?

We like to refer to it as the Design of Business
It is about giving strategic business objectives greater clarity and structure by
describing how they translate into operations.
The goal of Business Architecture is to operationalise business strategy,

thereby helping business leaders avoid a risky leap directly from strategy to
specific project investments.
18
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Positioning Business Architecture

Business Architecture must connect strategy to business and IT change
Strategy
Implementation
19
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provides the crucial business

context for the technical
layers, aligning architecture
services to provide
coherent business outcomes
20
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Information
Applications
Technology
SERVICES
Business
Enterprise Architecture
Business
Architecture
is an integral
part of the
Enterprise
Architecture
Outcomes
The contribution of Business Architecture relates to the

mandate.
Mandate = IT OPTIMISATION
Value
The Capability Anchor

Model
Application
Architecture
Roadmaps and
Migration Planning
A
EA = IT Architecture
Improve project
performance
Technology
Architecture
Application and Integration

Architecture
EA = Enterprise-Wide
IT Architecture (EWITA)
Improve IT performance
Mandate
21
DOCUMENT TITLE
and views and viewpoints will be different.

Mandate = BUSINESS OPTIMISATION
Org. Structure
Required to Fulfil
Value
Capability Maturity Overlay

Process Maturity Assessment
The Capability Anchor

Model
Key Points
&Assumptions
Methodology and Approach

:
62%of Posts processes are underdeveloped and potentially impacting business
The average process maturity acrossthe
The Process Owners classified the process
enterprise
2.3is
maturity of the4level
activities within their 1. PROCESS MATURITY FINDINGS
62%of activities have a process maturitydesignated
of
process
. area
Maturity
Level
5
Average
Adhoc or Repeatable
Results were validated by practitioners out in
Level
1
Level
2
Level
3
Level
4
Assessment
Best
Total
Process
Adhoc Repeatable Defined Managed Practice
Maturity
Summary
the business
Process Areas Manage Information Knowledge
&Systems and Pan have the lowest average
Activities were classified against the Carnegie
Plan
24
28
5
5
0
62
1. 85
Level
1
Adhoc
,95,
process maturity
1.7 and1.8respectively
Mellon Capability Maturity
(CMM
)Model
Level
2
Fulfil
18
22
52
14
0
106
2. 85
22%
Repeatable
, 172,
95Level
4activities
(22%)have been classified The CCM split maturity five
(see
categories
40%
Info
, Knowledge
& Systems
24
22
7
0
0
53
1. 68
table below
) ranging from1Level
(adhoc
) to
with a Level
1maturity
(adhoc
minimal to no
People
6
38
11
2
1
58
2. 21
Level
5 Best
Practice
, 14,
development of process and
) procedureLevel
5(best practice
)
Finance
2
5
13
17
12
49
3. 65
3%
Level
4
The average process maturity for each process
Assets& Services
Managed
, 53,
5
25
5
5
1
41
2. 32
12%
area(plan
,market
, etc.
)is a linear average of
Market
12
8
4
7
0
31
2. 19
Level
3
Defined
,99,
the supporting4activities
level . i.e. all
Customer
4
24
2
3
0
33
2. 12
23%
processes have equal . weightings
95
172
99
53
14
433
2. 35
Totals
22%
Source
: Process Maturity Assessment conducted by the Process Owners
Process Maturity Classification

Level 1
Adhoc
Australia Post has

minimal to no
development of
processes and
procedures across the
organization .
Level 2
Repeatable
Australia Post has

defined all processes
and procedures which
are standardized and
integrated across the
organization .
Level 4
Managed
23%
12%
3%
Project
100
%
62%of activities are underdeveloped

(not defined
)
Australia Post has

adopted leading
practices and an
approach for continual
process improvement
1. PROCESS MATURITY FINDINGS

Avg. Process
Maturity
5. 0
Level5
Best Practice
(5)
High room for
improvement
The processes supporting

the enterprise are on
average repeatable i .e.
they are not standardised
across the enterprise
Opportunities to improve
efficiency exist through
standardising and
streamlining processes
Plan and Manage

Information Knowledge and
Systems have the highest
room for improvement
Level4
Managed
(4)
4. 0
Level3
Defined
(3)
3. 0
Level2
Repeatable
(2)
2. 0
3.7
1. 0
1.8
0. 0
Plan
2.2
Market
2.6
Fulfil
2.3
2.2
2.1
2.3
1.7
Interact with Manage

Customer
Finance
Manage
People
Manage
Manage
Information
,
Assets
&
Knowledge Services
& Systems
Level1
Adhoc(1)
P
R
O
G
R
A
M
M
E
C
O
M
M
I
T
T
E
E
Level 5
Best Practices
Australia Post has

defined key
performance
indicators which are
used to manage and
measure process and
procedural
performance .
COO
Mana
Manage and
ge
deliver
Custo
content
Business
Unit - ser ving Cor por ate A
m er
Relati
ons
Business Unit ser ving end user s
IT Design
and
Developm en
t
.
Business Unit - ser ving content pr ovider s
The lowest capability maturity exists

, Knowledge
in Information
&Systems and Plan
Level 3
Defined
Australia Post has

established basic
processes and
procedures which are
repeatable across the
organization
40%
Reconfigurable
P
R
O
V
I
S
I
O
N
I
N
G
Pr oject
Resour ces
(Technical)
Specialists and
f unctional staf f
combine to f orm
project teams
Pr oject
A
Pr oject
Resour ces
(Functional)
Pr oject
B
Specialists
Pr oject
C
SHARED AND ADMINISTRATIVE SERVICES
Matrix
National
Accounts
Virtual
Opex vs.. Effort to

Increase Efficiency
Dual reporting lines

with shared services
servicing all
business units
Market
Segmentation
Total
Source
: Process Maturity Assessment conducted by the Process Owners
Project teams are

created based on
shif ting strategies.
Permanent f unctional
structure exists.
CEO
Small
Business
(value
segment)
Mkg.
Small
Business
(cost
segment)
Individual
Consumer
Company structures
around market
segment
CEO
Dist.
Mkg.
Product
Design
Sales
Focus on core and

outsource the rest
Marketing
Time Based
Marketing for
Todays :
Marketing for
Tomorrows :
Dual organisations
one unit f ocusing on
tomorrow, one on
today
Loss of coherence Across the

Transformation Programs
HIGH
COVERAGE
Strategically critical
HIGH coverage by in-flight initiatives
NOT strategically critical

HIGH coverage by in-flight initiatives
# In-flight
% Gap
Initiatives
Ref
Capabilities
C14
Sales Planning and

Management
0%
C15
Sales Execution
0%
C30
Network Development
0%
C3
Plan to Realise
11%
C10
Channel Strategy
Management
25%
Capabilities
Customer Service
0%
C34
Track and Trace
0%
14%
40%
C45
Initiative
Coverage
(primary
impact on L1
and L2
activities only)
Ref
C1
C8
C13
C2
C5
C40
LOW
COVERAGE
C48
Capabilities
# In-flight
% Gap
Initiatives
Research, Analysis &

Insights
Market Planning
Business Performance
Management
Corporate Vision &
Strategy Management
Acquisition and
Divestment
People Planning
Asset Lifecycle
Management
Strategically critical
LOW coverage by in-flight initiatives
YES
50%
60%
75%
100%
100%
100%
C43
Information, Knowledge
& Systems Delivery
People Day-to Day
Management
Plan & Market

Information,
Knowledge &
Systems
Capabilities
# In-flight
Initiatives
% Gap
People
C44
Finformation, Knowledge
& Systems Planning
11
63%
Assets &
Services
C45
Information & Knowledge

Governance
11
67%
C41
Recruit & Retain People
21%
C4
Innovation Management
100%
C51
Supplier Relationship
Management
100%
Ref
Some business rules
Procedure or simple
algorithm
High
Realisation Tactics
Complex negotiation,
design, or decision process
Many business rules;

expertise involved
# In-flight
% Gap
Initiatives
Ref
C17
Cost/ Value/ Asset Apportionment

across the business
Funds
investment
Outsourcing
Projects
Major redesign
projects
Sof tware
Automation
Projects
Straightf orward, static

commodity
processes: use
automated ERP-Type
applications and / or
outsource
Credit card
approval
NOT strategically critical

LOW coverage by in-flight initiatives
NO
DOCUMENT TITLE
On-line
purchasing
Inventory
Management
ERP based
process
improvement
Strategic Importance
Must be done but adds
little value to product or
services
Mandate
22
Deals with other

companies
Complex, dynamic
processes of high
value: undertake
business process
improvement ef f orts
that f ocus on people
International
Delivery
Low
100%
Strategically Important
New Product
design
Complex Processes,
not part of companys
core competency:
Outsource
Process Complexity and Dynamics
Strategic & Project Investment

Priorities and Focus Areas
EA = Business Architecture (BA) + EWITA

Improve Business Performance
Low
Widget
assembly
Straightf orward,
static, and valuable:
automate to gain
ef f iciency
Six-sigma
based process
improvement
High
Very important to success,
high value added to
products and services
relative to the concerns of different stakeholders

Mandate = STRATEGIC OPTIMISATION
Value
EA = Strategic Enabler + BA + EWITA

Improve Market Performance (Shareholder Value)
EA = Product Architecture +
Business Architecture (BA) + EWITA
Improve Product/Service Performance
Mandate
23
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Our Findings: ownership gap

For Business Architecture, lines of responsibility are often unclear
Business Ownership
Strategic Architecture Mandate
Unresolved
Business Architecture Mandate
The Business Model

Market
Model
Products and
Service
Model
Operating
Model
IT Ownership
IT Architecture Mandate
24
DOCUMENT TITLE
Markets
Industries
Customers
Market Segment
Channels
Value Proposition
Services
Capabilities
Processes / Value
Chains
Business Services
Functions
Data
Applications
Technology
The Environment
Views and Models Supporting the Mandate

The Business Model
Markets
Industries
Customers
Market Segment
Channels
Market Model
Products and
Service Model
Value Proposition
Services
Mandate
Operating
Model
Capabilities
Processes / Value Chains
Business Services
Functions
Data
Applications
Technology
The Environment
25
DOCUMENT TITLE
Business Model Innovation
Customer Experience
Journey Maps
Learning Maps
Motivation Models
Value Maps
Product and Offering Maps
Design Models
Value Chain Analysis

Cross Functional Models
Capability/Business Anchor Models
Process Models
Application Models
Data and Information Models
Technology Models
So how do we respond?
Responding to the disruption challenge and ownership gap
If the goal of EA is to create coherence not just at the Operating Model level but
at the Business Model level, EA must:
Learn and apply new skillsstart thinking like Business Designers!

Elevate the discussion with the business from the Operating Model level to the
Business Model level
First and foremost, communicating in the language of the business
Embracing business strategy concepts
Engaging the Business and prototyping new business models
Using the right tools for the job: the Business Motivation Model and the Business Model
Canvass, not just the Capability Model
26
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Summary
Responding to Disruption means changing the mandate for Architecture
The Business model lifecycle is shrinking!

To unlock the full potential of Architecture, the
mandate needs to increase away from the
Operating Model level
Enterprise Architecture must equip the CIO to
engage other C level stakeholders around the
concept of Enterprise Design (i.e. not
architecture)
27
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Putting it into
perspective
Our universe is expanding
As the pace of change and
impact of disruption increase,
and the shelf life for Business
Models decreases, we will see
emerging demand for
Enterprise Design skills
To support this demand, the
mandate of EA must increase
to be about creating coherent
Business Models
However, we wont be asked:
EA has the opportunity to
step up and lead The Design
of Business: but we must
consciously move away from
the Operating Model level and
develop the competencies to
redesign and prototype new
business models
28
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You are here
Thanks
End of part one.!
29
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The CapabilityDriven Roadmap

Approach and Case Study
30
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Failure points between strategy and

implementation
In navigating between strategy and execution there are multiple possible failure points
STRATEGY
The drivers of strategy

are often misaligned
Strategy not sufficiently

tied to operations
Needed capabilities not

properly understood or
measured
Is my investment portfolio
balanced across all of the
economic value add dimensions?
Where can we take advantage of

synergies across the major
strategic programmes?
There is a lot of activity going on

out there, how do I know we are
doing the right things?
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PROGRAMMES
Benefits arent
quantified or traced
back to original goals
Planners not accountable

for delivery
Are we investing in the right areas

across the enterprise?
Are the strategic programs aligned,

or for that matter, are they the right
strategic programmes?
This often leads to some typical

stakeholder issues regarding
transformation exercises
Addressing the failure points between strategy

and implementation
To address these failure points we should focus on the following three areas:
1. Creating a clear view of

the goals, value drivers and
corresponding levers that
drive the strategy
STRATEGY
The drivers of strategy

are often misaligned
32
DOCUMENT TITLE
Strategy not sufficiently

tied to operations
2. Clearly linking the strategy

to operations through
capabilities
Needed capabilities not

properly understood or
measured
3. Establishing the
resources that are needed
by the capabilities and
ensuring business
architects provide
oversight at portfolio level
Planners not
accountable for delivery
PROGRAMMES
Benefits arent
quantified or traced
back to original goals
Developing the Capability Driven Roadmap

The Challenge: creating traceability from strategy to implementation
Anchor Models
Motivations
Business
Model
Capability
Model
Target
Architecture
Maturity &
Gaps
Work
Packages
Current
State Arch.
Transitioning
Capability uplift delivered in

increments through business &
technology change
Technology decisions must be
traced back to a business
objective via the capabilities
they enable
33
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What is the Business Motivation Model?

The BMM is a Blueprint to help develop the Business Architecture, and provides a
consistent language to articulate business strategy
The BMM is a construct

for developing business
plans, but is not in itself
a methodology. The
BMM structure
supports the
progression from Vision
to a set of concrete
Goals and Objectives
34
DOCUMENT TITLE
Mission
CAPABILITY
Vision
People
Strategies
Goals
Process
Outcome
Tactics
Objectives
Tools
What is a Capability?
Some Definitions
An ability that an organization, person, or system possesses. Capabilities are typically expressed
in general and high-level terms and typically require a combination of organization, people,
processes, and technology to achieve. For example, marketing, customer contact, or outbound
telemarketing. The Open Group
The power or ability to do something Oxford English Dictionary
Measure of the ability of an entity (department, organization, person, system) to achieve its
objectives, specially in relation to its overall mission. Business Dictionary
The ability to perform or achieve certain actions or outcomes through a set of controllable and
measurable faculties, features, functions, processes, or services. Wikipedia
35
DOCUMENT TITLE
Identifying Capabilities
Some Guidelines
All enterprises have capabilities they are the fundamental business outcomes of
the enterprise
Capabilities are the things the enterprise must be able to DO in order to fulfil its mission
Capabilities will tend to persist over time

what changes is the way in which the capability is fulfilled (the How), who is fulfilling the
capability, where it takes place and their importance to the business strategy
Capabilities are expressed as outcomes and should be agnostic of technology,

product, organisational unit, etc.
Meaning the same capability could be performed by different organisation units or in different
contexts, potentially in different ways
36
DOCUMENT TITLE
Linking Business and IT Architectures

Business Architecture will define the capabilities required to realise and sustain the business
strategy. IT Architectures will help to enable these capabilities.
Information Technology Architecture
CUSTOMER
Requires
People
PRODUCT
37
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APPLICATIONS
DATA
Process
PROCESS
PEOPLE
CAPABILITY
INFORMATION
Uses
Tools
TECHNOLOGY
Business Capability Model

Case Study Capability Model transposed into ADOit
38
DOCUMENT TITLE
Mapping Capabilities to Applications & Technology

Supplier
Relationship
Management
(SRM)
Supplier
Management
Planning &
Budgeting
JDE Supplier
Management
SAP SRM
Oracle EPM
Knowledge
Management
4
Sharepoint
Business Intelligence
Hyperion
Oracle ECM
Planner
KMI
Oracle BI
4 3
Business
Objects
Management Reporting
COGNOS
Oracle BI
Management
Reporting
4 3
COGNOS
2 4
Hyperion
2
4
MFG/Pro
PeopleSoft E1
Supplier
Manager
Oracle WCM
JDE
4 4
SAP
PeopleSoft E1
3 4
Oracle EBS
SAP SRM
PeopleSoft E1
Product Lifecycle
Management
(PLM)
Product
Portfolio
Management
5
PPM
5
Ideation &
Concept
Management
New Product
Development
5
PLM
Demand
Planner
Production
Planning
Materials
Planning
Demand Supply
3
Tool
Capacity
Planning
JDE
MFG/Pro
High Technical Fit

Low Technical Fit
Purchasing
SAP
Oracle EBS
JDE
PeopleSoft E1
Inventory
Management
SAP
JDE
Oracle EBS
PeopleSoft E1
Warehouse
Management
JDE
SAP
Oracle EBS
MFG/Pro
Distribution
Management
JDE
SAP
Oracle EBS
PeopleSoft E1
JDE
Enterprise
Asset
Management
SAP
JDE
Oracle EBS
SAGE
Oracle SRM
PeopleSoft E1
Trade
Promotions
Management
3
TPM
SFA
Field Manager
Job Manager
After Sales
MFG/Pro
Manufacturing (Operational
Technology)
4
Rockwell
SCADA
SAGE
Quality
Management
2
MFG/Pro
JDE
Financial Management
4
SAP
JDE
MFG/Pro
BACS
Oracle EBS
PeopleSoft E1
MYOB
SAP
Oracle EBS
Recruitment
Management
Workforce
Management
3
Chris 21
Annual Leave
Request
Time &
Attendance
4
Tracker
Rewards Management
3
Chris Payroll
PeopleSoft
SAP Payroll
Oracle Payroll
ALESCO
Expense
Management
Organisationa
l Development
Management
3
3
Consumer
Management
(CM)
Consumer
Marketing
Management
T&A
Secure
CRONOS
Performance
Review
Campaign
Manager
Consumer
Sales
Management
Lifecycle Management - A replacement

strategy, if required, must be in place for all
applications with this status.
Application/Financial - Spend and change

must only occur as part of projects that assist
in removal of this application.
Retailer
Lifecycle Management - Applications which

cannot readily be removed will be ringfenced. If this approach is taken, design
patterns must exist for working with the
application.
Usage & Governance Must avoid use of Exit
Applications as they are subject to defined
decommissioning strategy. Any circumstance
which promotes extended use of Exit
applications must seek exemption from the
Head of Infrastructure and Operations
together with the Head of IT Strategy and
Architecture before usage approval can be
given.
39
DOCUMENT TITLE
An assessment of Business Fit

indicates the degree of
alignment with the
applications business users.
Organisational - All change requires

formal approval from the Head of
Infrastructure and Operations together with
the Head of IT Strategy and Architecture,
which will only occur where it contributes
towards Retiring the application, or meets a
mandatory requirement due before exit is
complete.
Retail
Management
Application Status
Contain
Application/Financial - this installation is not

to be extended in use. Where possible
changes will not occur to the existing
environment - it is to be allowed to age
towards sunset with minimal additional
spend.
Retire - Avoidance; specialist (non-core)

resources and processes required to keep in
the environment
Color Description
Emerging
Usage & Governance Projects should

specify the use of Core Applications where
available in the knowledge they are fully
supported by service management and
operational capabilities.
Usage & Governance Projects should

generally avoid use of Contain Applications
as they are invariably subject to near or
medium term sunset. Any circumstance
which promotes extended use of Contain
applications must be seek exemption from
<Insert Appropriate Governance Authority>
before commitment to use can be assumed.
Legend
Core
Organisational - all staff in the support

pyramid(s) understand the key controls and
SLAs around this application. There is no
tinkering, instead there is a process for
continuous improvement.
Organisational - Operations and security

levels are to be maintained, there needs to
be a process to manage changes required for
continued operation, and to keep skills for
the duration.
Consumer
Service
Management
Retire
Application - this is a fundamental and

valuable application and is the current
standard. It is well understood and there is
no risk in attempting to extract ongoing
value from its use.
An assessment of the overall

Application Lifecycle status
denotes whether an
application is emerging, core,
end-of-life, etc.
Contain - Falling relevance; ageing processes

and ecosystem
After Sales
Service
Human Resource Management (HRMS)
Usage & Governance Projects may consider

using these applications where there is
justification. However projects must be
aware that service management
organisation, tools and processes will likely
be immature. Projects promoting the use of
Invest applications must seek adoption
signoff from the Head of Infrastructure and
Operations together with the Head of IT
Strategy and Architecture before
commitment to use can be assumed.
Financial - costs are known and

understood. There is good ROI for
maintenance; either upgrading early or leapfrogging some upgrade steps. Cost models
clearly identify the whole service stack and
components are managed to the whole
service.
Field
Management
Manufacturing
(Info Tech)
Organisational - this will assist in supporting

our organisational maturity goals through
improving process, skills, readiness and/or
capability. Design patterns are actively being
developed or refined.
Core - High relevance; processes and

ecosystem in place
PLM
Application - this application has identified

potential to change the cost/value,
efficiency/effectiveness of our services, and
we are at a point where work is required to
achieve that potential, proof of concept/
initial deployments are Underway or
completed.
The Logical Architecture

groupings create traceability
back to the Capability Model.
Financial - there is an investment cycle with a

strong ROI, though possibly with benefits
outside of the immediate project.
Partner
Management
Enterprise Resource Planning (ERP)

Sales Order
Management
Medium Business Fit
Medium Technical Fit
Customer
Contain
Service
Management
Business Plan
Optimisation
Materials
Formulation &
Products
5
Emerging
Supply
Planning
Retire
Emerging - Potentially High relevance,

processes and ecosystem still developing
Supply Chain Planning (SCP)

Demand
Planning
Core
Contain
Low Business Fit
Strategic
Sourcing
4
Spaceman
Emerging
High Business Fit
Customer
Sales
Management
Operational Reporting
2
Legend
Customer
Relationship
Management
(CRM)
Customer
Marketing
Management
Enterprise Performance Management (EPM)
The technical health of the

application provides a simple
indication of whether the
application is stable and
performing to SLA.
Mapping of Capabilities to Applications

Current State and Target State Application Architecture views in ADOit
Transition
Plan ?
40
DOCUMENT TITLE
Transition Plan
Capability Increments & Dimensions
Objectives
Capabilities
Capability Increments
41
People Dimension
Process Dimension
Material Dimension
Individual Training
Concepts
Infrastructure
Collective Training
Business Processes
Information Technology
Professional Development
Information Management
Equipment
DOCUMENT TITLE
Delivering Strategic Architecture

Creating traceability from strategy to implementation
Application Portfolio View (Finance & Treasury Systems)

Business Value vs IT Value
1.1
Upgrade Technology
Keep Maintaining
Bloomberg
Navision
SmartData
Navision (Resource
(Project
Corporate
Online
ComBiz
Costing)
Costing)
Online
Austraclear Exigo
0.9
0.7
ACL
Cashflow Reporting
0.6
Business Value
ProcureMax
Navision (Assets)
(AR) Visual Risk
Business
Median(PO)
Navision
BAF
0.8
Navision (AP)
0.5
0.4
Navision
Navision(Cash
(GL) Management)
NemPower - NemFuture
Procuregate
HED
FleetWatch
0.3
0.2
0.1
Leverage Technology
Retire or Replace
0
0
0.1
0.2
0.3
0.4
0.5
0.6
IT Value
42
DOCUMENT TITLE
0.7
0.8
0.9
IT Median
1.1
The Roadmap Viewpoint

Viewpoint Element
Description
Stakeholders:
Business Executives, Business Managers, Business SMEs, IT Executives, Portfolio and

Programme Managers, Project Managers, Organisational Change Management
Concerns:
How are my strategic objectives being realised through my architecture and

program of work?
What are the changes between the current state and the future state of the
architecture?
What is my current investment roadmap to achieve the required changes?
Where are the dependencies across the program of work?
View Description:
Provides a view of the amalgamated means to end chain describing the strategic
capability direction for the organisation, and the associated transition plan required
to realise the vision. The primary intent of the roadmap is to inform the detailed
program of work. It is not the intent of the roadmap to be an executable program but
a key input into the defining the detailed program of work.
Metamodel Concepts
Mission, Vision, Goals, Strategies, Objectives, Drivers, Assumptions

Capabilities, Roles, Process, Logical application, Logical technology, Risk
Model
The EA Roadmap Model
43
DOCUMENT TITLE
EA Delivery Roadmap
44
DOCUMENT TITLE
An Overview of Roadmap
The strategic context for the

organisation. This looks to
describe the program vision,
goals, objectives.
The outcomes of the program

streams are mapped to the
business objectives providing
traceability from program
initiatives to strategic
objectives.
Architecture principles provide

rationale and context for the
target state.
The strategic initiatives
designed to realise the target
state. Any cross- program
dependencies are identified.
A view of the current state technology

landscape, highlights issues and gaps
across the technology landscape.
45
DOCUMENT TITLE
The outcomes of the program streams are

mapped to the corporate risk register
providing visibility of risks addressed by the
program.
The intended target state

provides visibility of where the
program will land. This section
will demonstrate an increase in
business capability and a
simplification of the technology
landscape.
Case Study &

ADOit
Tool Demo
46
DOCUMENT TITLE
Case Study
Goal: Create a global Operating Model balancing global capability with local agility
Global Professional Services firm with offices in many countries
Recent merger has created two centres of gravity in London (North) and Sydney (South)
Replication across the IT estate, with examples of good and bad in both North and South territories
Need to find an approach that identifies common, shared capability (which can be backed up with
investment in Global/ERP type systems) and local market uniqueness required to address the needs of
local clients (potentially enabled through local instances or market specific apps)
Business Motivation Model and Capability-driven planning were used to set goals and objectives at
group level, evaluate options and gaps at global and local level and build a capability-driven roadmap
A core of common capabilities were identified providing the Global footprint
Local market variations were evaluated at capability level
A roadmap was created to enable new and changed capabilities and to deliver the Global IT backbone
Platform:
Increase workflow by
having E2E execution
capability in key
practices & markets
Clients:
Build long term
relationships
47
DOCUMENT TITLE
Lead the
Market:
Become the leading
professional services
firm in APAC
Service
Excellence:
To focus our business
on what matters
most to our clients
Service
Transformation
Deliver business
services that support
the needs of a Global
business
48
DOCUMENT TITLE
Thank You
www.enterprisearchitects.com
david.ohara@enterprisearchitects.com
49
DOCUMENT TITLE
Our Locations
50
DOCUMENT TITLE
References and Acknowledgments

These people and ideas have helped shape our thinking
The Dimensions of Digital Disruption
Mark P McDonald, Gartner
The Innovators Dilemma

www.claytonchristensen.com
The Business Model Innovation Factory how to stay relevant when the world is changing
Saul Kaplan
Alexander Osterwalder strategiser

Gartner Hype cycle for Enterprise Architecture 2013
Customer CEO
Chuck Wall
Digital Disruption unleashing the next wave of innovation

James McQuivey
Discipline of the Market Makers

Treacy & Wiersma
The Business Motivation Model

Object Management Group
51
DOCUMENT TITLE

Business Model Design - The Capability Driven Roadmap

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Business Model Design - The Capability Driven Roadmap

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- Business Model Design

- The Capability Driven

ENTERPRISE ARCHITECTS 201 3

- About Enterprise Architects

Responding to the challenge of

- Creating a Capability-Driven Roadmap

ENTERPRISE ARCHITECTS 201 3

Principal Business Architect (EMEA) at Enterprise

Specialising in Business Architecture over 9+years

ENTERPRISE ARCHITECTS 201 3

ENTERPRISE ARCHITECTS 201 3

Enterprise Architects (EA) is an

Our core value proposition is to

Our vision is to be the most

We believe that architecture is

ENTERPRISE ARCHITECTS 201 3

Contract, Perm & Interim Recruitment

ENTERPRISE ARCHITECTS 201 3

Exclusive Chief Architect/CTO Round

join the discussion!

ENTERPRISE ARCHITECTS 201 3

ENTERPRISE ARCHITECTS 201 3

ENTERPRISE ARCHITECTS 201 3

Change is moving fasterand the Business

so Business Models become stale

ENTERPRISE ARCHITECTS 201 3

As what was once innovative

Enterprises must learn how to design and

Architects deeply understand both Business Capability AND Technology

ENTERPRISE ARCHITECTS 201 3

Architecture requires a balance of thinking styles

GOAL: Reliably produce

GOAL: Produce outcomes

Our Focus Areas

ENTERPRISE ARCHITECTS 201 3

ENTERPRISE ARCHITECTS 201 3

What is a Business Model?

The Business Model

ENTERPRISE ARCHITECTS 201 3

A Business Model describes the

A Business Model is a framework for

Craig Martin, Chief Architect @ EA

The goal of a good

The Business Model

its market position,

All of the above working together as a system

ENTERPRISE ARCHITECTS 201 3

Capabilities consist of people, process and technology

ENTERPRISE ARCHITECTS 201 3

Typical architecture practice maturity

EA = Product Architecture + Business

EA = Business Architecture (BA)

Business Architecture is seen

ENTERPRISE ARCHITECTS 201 3

What is Business Architecture?

The goal of Business Architecture is to operationalise business strategy,

ENTERPRISE ARCHITECTS 201 3

Positioning Business Architecture

ENTERPRISE ARCHITECTS 201 3

provides the crucial business

ENTERPRISE ARCHITECTS 201 3

The contribution of Business Architecture relates to the

The Capability Anchor

Application and Integration