Business Architecture Value Proposition: BIZBOK Guide and TOGAF Standard

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1 Download this and other Business Architecture Value Proposition: BIZBOK Guide and TOGAF Standard AEA Webinar Series Enterprise Business Intelligence Armstrong Process Group, Inc.

2 About APG APG s mission is to Align information technology and systems engineering capabilities with business strategy using proven, practical processes delivering world-class results. Industry thought leader in enterprise architecture, business modeling, process improvement, systems and software engineering, requirements management, and agile methods Member and contributor to UML, SysML, SPEM, UPDM at the Object Management Group (OMG ) TOGAF, ArchiMate, and IT4IT at The Open Group BIZBOK Guide and UML Profile at the Business Architecture Guild Business partners with Sparx, HPE, and IBM Guild Accredited Training Partner (GATP ) and IIBA Endorsed Education Provider (EEP ) 2

3 Objectives Discuss Business-IT alignment and business agility Introduce Business Architecture best practices in BIZBOK Guide Introduce key BIZBOK blueprinting techniques Discuss alignment and integration of BIZBOK Guide and TOGAF standard 3

4 Business-IT Alignment Myth There are perceptions across industry that IT is not aligned with the business In fact, one could claim that IT did exactly what the business asked Lack of shared, holistic, sustainable viewpoint Over-investing in specific areas at the expense of others Increasing complexity for no added value Local decision making at expense of enterprise Can think of consequences as accumulated debt Some debt is good; some debt is bad All of these things inhibit business s agility to rapidly respond to change Need platform for understanding the business Strategy, opportunities, alternatives, debt, investments, initiatives 4

5 Enterprise Business Intelligence Traditionally IT has been an order taker for the business Want to transform IT into a trusted advisor to the business Much easier to have these conversations if the business really understands what s going on across enterprise Silos in IT emerge from silos in business Often too many competing priorities, too much work-in-progress, and redundant investments Need an Enterprise Business Intelligence capability Understand complexity of business landscape Provide holistic, integrated, transparent, and accessible information 5

6 What is Business Agility? 6...the ability of an organization to sense environmental change and to respond efficiently and effectively to that change. - Gartner, 2006 Effectively achieving agility requires the business to understand What motivates the business? How does the business behave? How does the business fit together? How does IT support the business?

7 Understand What Motivates the Business What is the mission and vision? What are the current business goals and objectives? Are they aligned across business units? Are objectives quantified and measurable? What external and internal factors are driving the business? What constraints govern motivation? What policies influence culture? Are these motivation factors prioritized and co-related? Does the organization have capability to deliver on strategy? 7

8 Understand How the Business Behaves 8 Who are your customers, suppliers, and partners? Which value propositions do you offer? What are your externally facing business services? What external events must your business respond to? How do people, partners, and systems collaborate to deliver value? What security and regulatory policies govern behavior?

9 Understand How the Business Fits Together 9 What are your internal capabilities? How does one business capability integrate with another? Where are the handoffs and touch points? What data is shared between business capabilities and processes? How is the business organized? Who owns particular business processes? Who stewards common data?

10 Understand How IT Supports the Business How much money is invested in IT? What is the impact of a change to a business process to existing applications? Are there business processes that are supported by multiple (possibly redundant) applications? What data is shared between applications and business processes? What is the impact of an application outage on other applications and business processes? Are business critical functions supported by highly-available applications and servers? What applications run on which technical platforms? What is the impact of a change in security requirements (i.e. new regulation or statute) on existing systems and networks? 10

11 BA & EA Value Propositions BIZBOK 5.1 (p. 2) provides abstract representation of an enterprise effective communication and analytical framework for translating strategy into actionable initiatives. enact transformational change, navigate complexity, reduce risk, make more informed decisions, align stakeholders, leverage technology more effectively. TOGAF 9.1 (p. 6) Purpose of enterprise architecture is to optimize the enterprise and create an integrated environment that is responsive to change and supportive of the delivery of the business strategy. achieve the right balance between IT efficiency and business innovation. 11

12 What Is Business Architecture? A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands. Business architecture represents the business Business does not necessarily begin or end at boundaries of enterprise May also include portions of business that have been outsourced or managed by partners Includes various aspects of real world represented by abstractions Describe who, what, where, when, why, and how known as blueprints Intelligence derived from business architecture content used to develop plans and make/implement business decisions Supports higher levels of business transparency Streamline planning, evaluate value of funded initiatives, craft more effective transformation roadmaps Based on common vocabulary, standardized framework, and shared business knowledgebase All stakeholders view business through common set of lenses 12 BIZBOK Guide 5.1

13 13 A community of business architects who have come together to build and expand their profession Collaborative collective where individuals can learn with and from peers, explore and develop new ideas, and further practice and discipline of business architecture Most valuable, stimulating, and collaborative material is only available to members (for free, apart from yearly membership) Annual Business Architecture Innovation Summit A Guide to the Business Architecture Body of Knowledge (BIZBOK Guide) is the primary resource The Guild builds out new and existing content for the Guide through an agile, collaborative process Generally, two editions are produced each year

14 BIZBOK Guide A Guide to the Business Architecture Body of Knowledge (BIZBOK Guide) version 5.1 PDF download from the Business Architecture Guild membership portal View introduction online BIZBOK5_1publicdocument/Introductionv5.1.pdf 14

15 Business Architecture Value Stream/Capabilities 15 BIZBOK Guide 5.1

16 Business Architecture Framework 16 Business Architecture Knowledgebase Blueprints provide views into knowledgebase, based on stakeholder concerns Scenarios contextualize expected outcomes of business architecture work Also inform initial selections of key stakeholders and likely concerns BIZBOK Guide 5.1

17 Business Architecture Domains 17 Represents key types of building blocks used to describe the architecture of the business BIZBOK Guide 5.1

18 Business Architecture Scenarios BIZBOK Guide Investment Analysis Shift to Customer-Centric Business Model Merger & Acquisition Analysis New Product/Service Rollout Globalization Business Capability Outsourcing Supply Chain Streamlining Divestiture Regulatory Compliance Change Management Operational Cost Reduction Joint Venture Deployment Additional Scenarios Digital business transformation Innovation Business reorganization Information risk management Business continuity/disaster recovery Business process reengineering Complexity reduction (or simplification) Program/project impact analysis 18 BIZBOK Guide 5.1

19 Business Architecture Blueprints 19 BIZBOK Guide 5.1

20 Core Capability Blueprint Nationwide Insurance

21 Capability Based Analysis 21 Nationwide Insurance

22 Value Stream Overview 22 «Value Proposition» «desires» VP Product Dev elopment Sustainable New Product Ecosystem «triggers» «produces» Establish Distribution Network Dev elop Distribution Strategy Select Distribution Partners Establish Distribution Network Plan Distribution Partner Engagement Dev elop Distribution Partner Relationship Grow New Product Sales Sustain New Product Sales Value Streams: Establish Distribution Network - Value Items Value Streams: Establish Distribution Network - Info Object Mapping Value Streams: Establish Distribution Network - Info Object Matrix

23 Value Stream Stages and Value Items 23 VP Product Development Distribution Partner Manager Distribution Partner Distribution Sales Manager Dev elop Distribution Strategy Select Distribution Partners Plan Distribution Partner Engagement Dev elop Distribution Partner Relationship Grow New Product Sales Sustain New Product Sales Understood Distribution Approach Clarified Distribution Channels Defined Engagement Model Engaged Channel Network Product Market Growth Profitable Product Market «Value Proposition» Sustainable New Product Ecosystem

24 Cross-Mapping Example Value Stream/Capability 24 BIZBOK Guide 5.1

25 Strategy Drives Towards Goals 25

26 Business Strategy Business Unit Alignment 26 BU strategy does not map to enterprise strategy Enterprise goal with related goal in each BU Possible synergy Enterprise goal with no BU goals

27 Hoshin Kanri Strategy Deployment and Initiatives 27

28 BIZBOK Business Architecture Metamodel 28 BIZBOK Guide 5.1

29 Updated Value Metamodel delivers 29 Perhaps implement Value Stream diagram as a UML Composite Structure diagram with Value Stage Instances being Properties of a Value Stream. Value Stream triggers Stakeholder desires Value Proposition No ordering concept for decomposed value stages. decomposes into consists of {ordered} Value Stage supports Outcome produces has value receives contributes Process participates in Business Unit implements responsible for Name: Text Description: Text /Is Start Stage: Yes/No /Is End Stage: Yes/No uses enables Capability offers Product represents Value Item represents has entrance criteria has exit criteria represents represents Could eventually be a derived relationship from Business Unit- Capability Instance-Capability- Outcome-Value Item-Value Stage. Value Stream Criteria applies to Information Concept lifecycle defined by Information Concept State applies to

30 TOGAF vs BIZBOK Space Descriptive What Prescriptive How TOGAF 9.1 ADM and Repository = What Ref Models = How Has many guidelines = How Metamodel = How Skills Framework = What Skills Framework = What BIZBOK 5.1 BA Value Stream = What Blueprints = How Has many guidelines = How Metamodel = How Ref Models = How Maturity Model = What Case Studies = Why Competency Model = What Enterprise Architecture Business Architecture

31 TOGAF Architecture Development Method (ADM) Provides tested and repeatable process for developing architectures Includes activities for Establishing an architecture framework Developing architecture content Transitioning and governing the realization of architectures Carried out within an iterative cycle of continuous architecture definition and realization Allows organizations to transform their enterprises in a controlled manner in response to business goals and opportunities 31

32 TOGAF Enterprise Repositories 32 Business Architecture Value Stream Business Architecture Competency Model Business Operational Assets Business Architecture Blueprints Integrate BIZBOK metamodel with TOGAF metamodel Need place to store and manage architecture work Include BIZBOK products Industry Reference TOGAF Models provides structural framework Distinguish between different types of architectural assets Part of wider enterprise IT repository Business Architecture Knowledgebase Business Architecture Maturity Model

33 Conclusions Natural affinity between BIZBOK Guide and TOGAF standard BIZBOK Guide provides significant prescriptive guidance on how to perform Business Architecture activities required in TOGAF ADM Phase A: Architecture Vision and Phase B: Business Architecture BIZBOK Business Architecture Scenarios describes context for doing BA/EA More explicit set of change scenarios for Phase H: Architecture Change Management TOGAF ADM provides a more comprehensive complete architecture-driven lifecycle Incorporates IT architecture domains Defines input and output deliverables More guidance on planning and governance BIZBOK Guide provides more details on establishing a Business Architecture practice Incorporate Business Architecture Metamodel, Maturity Model, and Competency Model into Preliminary Phase Integrate/align metamodel with TOGAF Architecture Content Metamodel TOGAF ADM recognizes Requirements Management as a central set of activities BIZBOK Guide does not recognize requirements management in the BA lifecycle 33

34 Enterprise Business Intelligence Future Topics 34 Capability modeling Value modeling Strategy modeling Organization and information modeling Initiative modeling Business architecture governance Application portfolio management Regulatory compliance Digital business transformation

35 Q&A Thanks for your attention and participation! "APG", the APG logo, "proven practical process" (and its graphic representation), ATPL, EA-In-A-Box, APG ModelFlow are trademarks of Armstrong Process Group, Inc. The Open Group, The Open Group Architecture Framework, TOGAF, and ArchiMate are trademarks or registered trademarks of The Open Group in the United States and other countries. BIZBOK, A Guide to the Business Architecture Body of Knowledge, Certified Business Architect, CBA, Guild Accredited Training Program, and GATP are trademarks or registered trademarks of the Business Architecture Guild. Other company, product, or service names may be trademarks or service marks of others.

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