From Capability- Based Planning to Compe66ve Advantage Assembling Your Business Transforma6on Value Network

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1 From Capability- Based Planning to Compe66ve Advantage Assembling Your Business Transforma6on Value Network Marc Lankhorst, BiZZdesign Iver Band, Cambia Health Solu=ons

2 INTRODUCTIONS 2

3 Marc Lankhorst m.lankhorst@bizzdesign.com hzp://nl.linkedin.com/in/marclankhorst hzp://blog.bizzdesign.com hzp:// hzp:// Marc Lankhorst: Service line manager Enterprise Architecture Responsible for BiZZdesign s EA proposi=on Enterprise architect, trainer, coach, project manager Manager of the original ArchiMate development project TOGAF and ArchiMate cer=fied 3

4 BiZZdesign: Building Strong Organiza6ons! Organiza=ons increasingly need to deal with =me- pressured business improvements and high- impact transforma6on in a truly complex business and IT reality BiZZdesign enables this by providing proven change capabili=es through integrated solu6ons consis=ng of business consultancy so.ware solu1ons training best prac1ces 4

5 BiZZdesign Worldwide: Offices and Resellers BiZZdesign office BiZZdesign reseller 5

6 Iver Band hzp:// hzp:// hzp:// Iver Band: Enterprise Architect at Cambia Health Solu=ons Vice Chair, Open Group ArchiMate Forum Co- Chair and Co- Founder, Oregon Enterprise Architects TOGAF and ArchiMate cer=fied, CISSP, Cer=fied Informa=on Professional 6

7 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

8 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

9 Cambia Health Solutions! Wholly Owned! Companies! Direct Investment! Companies! Health Insurance! Wholly Owned Companies" Direct Investment Companies" Health Insurance" 9

10 Agenda Introduc=on Enterprise architecture The use of models Capability- based planning Enterprise porcolio management Agile realiza=on Conclusions 10

11 The Challenge The Digital Enterprise requires major business transforma6ons The speed of change makes classical top- down strategy implementa=on obsolete Few organiza=ons have a systema6c and reliable way of transla=ng a business strategy into ac=on Organiza=ons invest in many disciplines, to improve their transforma=on capability and effec=veness A lack of coherence between these disciplines compromises their success 11

12 ENTERPRISE ARCHITECTURE 12

13 What is Enterprise Architecture? A product A design that shows the coherence between products, processes, organiz a=on, informa=on supply and infrastructure, based on a vision and certain explicit star=ng points, principles and preferences A prac6ce Way of working Aimed at the development and use of enterprise architectures within an enterprise With people and resources 13

14 What Kinds of Enterprise Architectures Are There? Enterprise architectures can be par==oned by enterprise segment or capability 14

15 What Kinds of Enterprise Architectures Are There? Core domain architectures Cross- cuhng domain architectures Business segment architectures Specializa=on by both domain and business segment Roadmaps 15

16 How do Enterprise Architectures Relate to Solu6on Architectures and Roadmaps? Roadmap Baseline Plateau Intermediate Plateau Solu1on 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. Produc=on Solu=on Architecture Enhanced Solu=on Architecture Re=red Solu=on Architecture Target Plateau 16

17 Enterprise Architecture and Other Disciplines Enterprise architecture focuses on coherence and alignment between strategy, business, informa=on, applica=ons and technology enterprise- wide, high- level descrip=ons Business architecture, as part of EA, describes how the business operates relates strategy & business model to business func=onality, opera=ng model, capabili=es, products and processes Business analysis translates business goals & needs into solu=on requirements focused, more detailed 17

18 TOGAF - The Open Group Architecture Framework 18

19 What is ArchiMate? A language to describe architectures A graphical nota6on with formal seman=cs A framework that describes and relates the business, applica=on, and technology layers Extensions for mo=va=on, implementa=on & migra=on Techniques for visualiza6ons and analyses for different stakeholders An open standard maintained by The Open Group 19

20 TOGAF, ArchiMate Core and Extensions Mo6va6on H Architecture Change Management Preliminary A Architecture Vision TOGAF ADM B Business Architecture ArchiMate Core Business Business Architecture G Implementa=on Governance Requirements Management C Informa=on Systems Architectures Data Architecture Applica6on Applica6on Architecture F Migra=on Planning E Opportuni=es and Solu=ons D Technology Architecture Technology Technology Architecture 20

21 EA as Knowledge Hub in Business Transforma6on Enterprise architecture provides different views on the enterprise s make- up for the various disciplines involved It aggregates and integrates informa=on 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 transforma=ons in a coherent manner 21

22 EA Relates and Supports Other Disciplines Strategy Governance, Risk & Compliance Capability- Based Planning Process, Rule & Data Management Enterprise Architecture Enterprise Por[olio Management Service Management Design, Development & Delivery Program & Project Management 22

23 Enterprise Architecture Role in Business Transforma6on Planning and Oversight Business capabili=es required Recommended investments with benefits and costs Capability- Based Planning Business cases and budgets Results realized Enterprise Architecture Implementa=on roadmaps and oversight Realized architecture Ini=a=ve evalua=on and comparison Program & Project Management Enterprise Por[olio Management Funded ini=a=ves Value delivered Resources and budget used 23

24 THE USE OF MODELS 24

25 Implementa6on Guidance As you build your own organiza=on s capabili=es, create formal representa=ons 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 some=mes even executed 25

26 Model- Based Architecture Repository Ensure coherence between strategy and opera=ons Keep track of large and complicated architectures Support =mely and accurate decisions with clear views, analyses and dashboards Facilitate collabora6on in teams and across disciplines Speed up the change process Support a maturing prac=ce, from small team to large organiza=on 26

27 ArchiMate, UML & BPMN ArchiMate connects architectural domains But does not focus on implementa=on details Broader scope, but less detail than e.g. UML (sooware), BPMN (processes) No replacement for these, but an umbrella on top Several ArchiMate concepts derived from BPMN and UML Easy to link to e.g. UML descrip=ons of detailed design or BPMN process models 27

28 Model- Based Architecture: Business Layer 28

29 Model- Based Architecture: Applica6on Layer 29

30 Use ArchiMate to Connect Other Models 30

31 Rela6ng Goals & Capabili6es to Target Architecture & Programs Business Goals Business Capabili6es Architecture Plateaus Change Programs 31

32 CASE STUDY: IMPROVING PROJECT MANAGEMENT TOOLING IN RESPONSE TO THE CHANGING ROLE OF THE CONSUMER 32

33 US Healthcare Payer Challenges Drivers from Gartner Group Business Drivers of Technology Decisions for Healthcare Payers, 2014, December

34 CAPABILITY- BASED PLANNING 34

35 Business Capabili6es A business capability is something an enterprise does or can do, given the various resources it possesses Which capabili=es do you need for your strategy, business model and opera=ng model? What are the required capability levels? What are the necessary resources? How do plan the evolu=on of your enterprise architecture? Input for investment decisions: por[olio management Helps you plan and manage programs & projects 35

36 Business Capability Map 36

37 Capability Based- Planning: Capability Increments in Different Dimensions Analysis and planning of capabili=es using an ArchiMate model and various metrics 37

38 ENTERPRISE ARCHITECTURE 38

39 Typical Disconnected Project Management Toolset Hampers Decision- Making and Execu6on 39

40 Architected Project Management Toolset Enables Be^er Decisions and More Efficient Execu6on 40

41 ENTERPRISE PORTFOLIO MANAGEMENT 41

42 What is Enterprise Por[olio Management (EPM)? Enterprise por[olio management manages the enterprise landscape (projects, capabili=es, assets, services, etc.) in porcolios 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, resul=ng in consistent and informed decision- making at all levels Manage on business value, not only on costs Cri6cal Front office Back office Re6rement 42

43 How Are Por[olios and Architecture Related? Based on the architecture, porcolios are defined and managed in a consistent way: Capability porcolio Product porcolio Applica=on porcolio Infrastructure porcolio Program and project porcolio Add azributes and metrics to your architecture models to support analyses and dashboards Project porcolio Projects Roadmaps Asset porcolio 43

44 Por[olio Dashboard: Ac6onable Informa6on 44

45 REALIZATION 45

46 Towards Agile Realiza6on Strategy Por[olio Business epics Program porcolios Iteration Architecture epics Program Architectural features Iteration Agile Release Train DevOps Architecture runway Team Daily work Agile development Iteration 4 3 Con=nuous integra=on

47 47 47

48 Sustainability with an Architectural Runway Balanced Investment 48

49 How Do We Make That Work Within Our Teams? High Level Business Case Informed by Priori=zed Business Capabili=es Business Objec=ves Func=onal Requirements and Use Case Development Owned by Product Owner and overall Business with review by Architects and Leads Informed by Enterprise Architecture Solu=on Architecture and Non- Func=onal 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 49

50 CONCLUSIONS AND DISCUSSION 50

51 Consistent and Integrated Modeling Is a kind of knowledge management Supports enterprise- wide analyses, e.g. traceability, cost calcula=ons, dependencies, risks Fosters coherent decision- making Links vision to realiza6on, by rela=ng various disciplines in your business transforma=on value chain 51

52 Business Transforma6on Management is a Composite Capability That Benefits from An Architectural Approach Strategy Capability- Based Planning Business Transforma6on Management Service Mgmt Design, Development & Delivery Enterprise Por[olio Mgmt Enterprise Architecture Process, Rule & Data Mgmt Program & Project Mgmt 52

53 Call to Ac6on Business architects & analysts: Collaborate with enterprise architects to assemble your organiza=ons business transforma=on capabili=es into a coherent value network Enterprise architects: Use the ArchiMate Business Layer and Mo=va=on extension to integrate the work of business analysts into your business transforma=on 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 53

54 Think like an architect when building your business transforma=on value network! 54

55 Ques6ons? Marc M. Lankhorst Service line manager Enterprise Architecture Webinars, blogs, e- books, customer stories, training porcolio, sooware and more on Iver Band Enterprise Architect Related presenta=ons and ar=cles available at slideshare.net/iverband 55

56 2014 BiZZdesign. All rights reserved. BiZZdesign and BiZZdesign logos are registered trademarks of BiZZdesign Company.