STRATEGIC BUSINESS ARCHITECTURE HELIX

Transcription

1 STRATEGIC BUSINESS ARCHITECTURE HELIX THE FRAMEWORK FOR SUCCESSFUL DEVELOPMENT AND IMPLEMENTATION OF OPTIMAL ENTERPRISE TARGET OPERATING MODELS

2 STRATEGIC BUSINESS ARCHITECTURE is the product and a process of contextualising, designing and implementing optimal enterprise Target Operating Models

3 AS THE PRODUCT, STRATEGIC BUSINESS ARCHITECTURE UNITES FORM AND FUNCTION OF THE ENTERPRISE ORGANISATION. IT DEPICTS TARGET OPERATING MODEL BLUEPRINTS, KEY PROCESSES AND ASSOCIATED GOVERNANCE STRUCTURES OPTIMALLY DEVELOPED TO ADDRESS SPECIFIC ORGANISATIONAL ENVIRONMENT AND ITS OBJECTIVES Because all companies are unique, OPTIMAL TARGET OPERATING MODELS ARE AS DIFFERENT AS BUILDINGS (and ideally as elegant as the best of them) An optimal target operating model should satisfy three principles: Be EFFECTIVE sensible and FIT to deliver on company s strategic objectives Be EFFICIENT with clearly defined processes and responsibilities to serve its purpose Be RESPONSIVE flexible to rapidly adjust to changes in internal and external contexts

4 STRATEGIC BUSINESS ARCHITECTURE HELIX FRAMEWORK USES FORMALISED METHODOLOGIES TO RELATE ENTERPRISE EXTERNAL AND INTERNAL CONTEXTS TO ITS BUSINESS OBJECTIVES AND BUILD AN OPTIMAL TARGET OPERATING MODEL. IT THEN FACILITATES SUCCESSFUL ORGANISATIONAL TRANSFORMATION THROUGH TRANSITION PLANNING AND ORCHESTRATION OF CHANGE MANAGEMENT ACTIONS INDUSTRY CONSUMER ORG. POLITICAL ECONOMIC IMPLEMENTATION PLANNING CHANGE MANAGEMENT ENTERPRISE BUSINESS MODEL TARGET OPERATING MODEL Triangle image design by Freepik.com

5 STEP 1. CONTEXTUALISE means accurately grounding any future Target Operating Model within the organisation s external and internal contexts, making it optimal for that company

6 STRATEGIC BUSINESS ARCHITECTURE TAKES INTO ACCOUNT KEY EXTERNAL CONTEXTS IN ADDITION TO THE ENTERPRISE BUSINESS MODEL AND ITS ORGANISATIONAL BACKGROUND TO BUILD AN OPTIMAL TARGET OPERATING MODEL WHICH CAPTURES PRAGMATIC CHOICES AND SOLUTIONS TO STRATEGIC NEEDS FOR THAT COMPANY ENTERPRISE BUSINESS MODEL SCALABILITY AND RESILIENCE POLITICAL AND/OR ECONOMIC CONTEXT CONSUMER CONTEXT RESPONSIVENESS AND RELEVANCE TARGET OPERATING MODEL FLEXIBILITY AND AGILITY INDUSTRY CONTEXT ORGANISATIONAL CONTEXT CAPABILITY AND ABILITY

7 STARTING WITH THE VALIDATION OF THE ENTERPRISE BUSINESS MODEL AND ITS GROWTH AND PRODUCTIVITY STRATEGIES, STRATEGIC BUSINESS ARCHITECTURE DEVELOPS A VISION OF THE CAPABILITIES AND BUSINESS VALUE TO BE DELIVERED AS A RESULT OF THE OPTIMAL TARGET OPERATING MODEL S INTRODUCTION VISION Direction of travel and long-term view of the company MISSION Fundamental purpose of the company and how it aims to achieve its vision BUSINESS MODEL Present/future growth and productivity strategies VALUES Guiding principles and fundamental beliefs that govern company s actions TARGET OPERATING MODEL Architectural alignment

8 REFLECTION OF WIDER POLITICAL AND/OR ECONOMIC CONTEXT ENSURES UP- AND DOWN- SCALABILITY OF THE TARGET OPERATING MODEL AND ITS RESILIENCE TO CRISES AND CYCLES. IMPACTFUL RELATIONSHIPS THAT EXIST BETWEEN DIFFERENT INDUSTRIES WITHIN THE BROADER ECOSYSTEM ARE ALSO CAPTURED ILLUSTRATIVE USE OF SCENARIO PLANNING IN THE STRATEGIC BUSINESS ARCHITECTURE HELIX FRAMEWORK Context-aware Target Operating Model is developed and deployed. Organic changes in the ecosystem that are naturally occurring are taken into account As milestone event(s) take(s) place, context-aware Target Operating Model is dynamically adjusted Through external context awareness, Strategic Business Architecture expands horizons so that the resulting Target Operating Model copes successfully with ecosystem s uncertainties and change SCENARIO A SCENARIO B Target Operating Model (context-aware) Target Operating Model (caeteris paribus) Target Operating Model (context-aware) FACILITATION OF NEW CAPABILITY INTEGRATION CLARITY FOR CARVE-OUT MODULARITY AND SELF- CONTAINMENT FOR UP-/ DOWN-SCALING BENEFIT FROM INTER- INDUSTRY DYNAMICS SHORT TERM MEDIUM TERM LONG TERM

9 REGARDLESS OF A B2B OR A B2C FOCUS, MASTERY OF FINAL CONSUMER CONTEXT ENSURES RESPONSIVENESS AND SERVICE ORIENTATION OF THE TARGET OPERATING MODEL THROUGH APPROPRIATE ORGANISATIONAL DESIGN, CLEAR INTERCONNECTED PROCESSES, AND TECHNOLOGY AND DATA SPECIFICATIONS CONSUMERS TARGET OPERATING MODEL CONSUMER TRENDS AND BEHAVIOURS Brand/quality/image perceptions Alternative choices Lifestyle preferences Societal beliefs Information needs Communication requirements Attitudes to digitalisation THAT DRIVE STRATEGY... Vision and Mission Strategic objectives Strategic choices AND BUSINESS MODEL... Value proposition Revenue streams Cost bases ARE REFLECTED IN THE TOM Capabilities/functions Processes Governance Infrastructure Data Safety/Security

10 INDUSTRY CONTEXT CONTRIBUTES TO DESIGN OF AN OPTIMAL OPERATING MODEL THAT SUPPORTS MONITORING AND DEVELOPMENT OF OPPORTUNITIES THROUGH ITS FLEXIBILITY AND AGILITY OF RESPONSE, AND INTERCONNECTIVITY TO CHANNEL KNOWLEDGE, EXPERIENCE AND RESOURCES TO WHERE NEEDED TECHNOLOGICAL ADVANCES Digitalisation Knowledge diffusion Information accessibility Media proliferation OUTER SPACE INDUSTRY DYNAMICS Consumers (directly and indirectly) Clients/Distribution channels Suppliers/Vendors Partners/Investors Other industries TARGET OPERATING MODEL WHITE SPACE FLEXIBILITY NEAR- CORE SPACE BUSINESS DEVELOPMENT SCANS AGILITY COMPETITION MOVES Established players Wild cards New entrants from other industries CORE SPACE REGULATORY OVERSIGHT Labour legislation Financial regulations Health/Safety/Environmental requirements INTERCONNECTIVITY

11 ORGANISATIONAL CONTEXT IS A SOURCE OF PRAGMATISM FOR THE TARGET OPERATING MODEL. IT SUPPLIES UNDERSTANDING OF ORGANISATION S BASELINE CAPABILITIES, ITS COLLECTIVE MEMORIES AND CULTURE, AND ITS INNATE ABILITY TO ADAPT TO CHANGE NECESSITATED BY THE OPERATING MODEL S REDESIGN ILLUSTRATIVE USE OF A KAIZEN-INSPIRED APPROACH IN THE STRATEGIC BUSINESS ARCHITECTURE HELIX FRAMEWORK H KEEP ANCHOR COMPANY BASELINE CAPABILITIES MEMORIES CULTURE EXPERIENCE WILLINGNESS TO PURSUE and manage distractions to stay focused on important deliverables REMOVE TARGET OPERATING MODEL n Realistic in scope n Functional in implications and implementation and re-emphasise benefits to build up ownership of the target model CHALLENGE CLEAN SLATE ORGANISATION L or postpone for later review stakeholder concerns or organisational capabilities to understand key reasons for resistance L ARCHITECTURAL SIGNIFICANCE H

12 STEP 2. PLAN & DESIGN covers the development of detailed architectural designs and operational blueprints of the target operating model and its intermediary states

13 ULTIMATELY, STRATEGIC BUSINESS ARCHITECTURE TRANSLATES ENTERPRISE BUSINESS MODEL AND ITS EXTERNAL AND INTERNAL CONTEXTS INTO TARGET OPERATING MODEL, A SET OF ACTIONABLE BLUEPRINTS THAT CREATE COMMON VIEWS AND UNDERSTANDING OF THE WHY, WHAT AND HOW ACROSS THE ENTIRE COMPANY ILLUSTRATIVE USE OF CUSTOMISED STRATEGY MAPPING AND TOGAF ADM IN THE STRATEGIC BUSINESS ARCHITECTURE HELIX FRAMEWORK BUSINESS MODEL PRODUCTIVITY STRATEGIES STRATEGIC BUSINESS OBJECTIVES (e.g. shareholder/stakeholder value) GROWTH STRATEGIES COST OPTIMISATION CLIENT RETENTION CROSS/UP SELL NEW DEVELOPMENT CLIENT SATISFACTION SERVICE/OFFER PORTFOLIO SERVICE/OFFER AVAILABILITY TARGET OPERATING MODEL SERVICE ORIENTATION SERVICE/OFFER INNOVATION KEY INTEGRATED CROSS-ENTERPRISE PROCESSES (e.g. Sales, Contract management, Mobilisation, Investment, HR ) AND DELEGATIONS TARGET ORGANISATION ARCHITECTURE Execution capabilities and partnerships Business support functions Organisation structure and governance Roles and responsibilities Shared objectives and KPIs TARGET INFORMATION SYSTEM ARCHITECTURE Data architecture Application architecture TARGET TECHNOLOGY ARCHITECTURE Components and platforms Performance and maintainability Environments and locations Hardware and networks

14 DEPENDING ON DESIGN NEEDS, THE STRATEGIC BUSINESS ARCHITECTURE HELIX FRAMEWORK BUILDS ON SERVICE ORIENTED ARCHITECTURE PRINCIPLES TO ENSURE SMOOTH DELIVERY OF INTERACTION AND SERVICE ELEMENTS OF THE TARGET OPERATING MODEL OPERATING UNIT 1 OPERATING UNIT 2 OPERATING UNIT 3 SHARED SUPPORT FUNCTIONS (HR, FINANCE ETC) SLA A SLA B SLA C

15 STEP 3. TRANSFORM orchestrates managed transition to the Target Operating Model through meticulous yet flexible planning, stakeholder monitoring and proactive change management actions

16 THROUGH STRUCTURED APPROACH TO THE TARGET OPERATING MODEL S ROLLOUT, AGREED GOVERNANCE, STAKEHOLDER MANAGEMENT PLANNING AND PROGRESS MONITORING, THE STRATEGIC BUSINESS ARCHITECTURE ANSWERS CRITICAL CHANGE QUESTIONS, PROVIDES TRANSPARENCY AND STREAMLINES BUSINESS TRANSFORMATION ACROSS THE ORGANISATION CHANGE AND STAKEHOLDER MANAGEMENT COST OF ADAPTATION How to make the change affordable? What are the plans not to lose existing clients or new business opportunities during transition? Are our teams on-board? SPEED OF ADAPTATION How long should it take to transition to the target model? Can we go faster or need to slow down in some areas? TARGET OPERATING MODEL COMPLIANCE OF ADAPTATION How to ensure that we are getting the agreed target model by the end of transition? SHORT TERM MEDIUM TERM LONG TERM

17 ADVANTAGES of applying the Strategic Business Architecture Helix framework

18 This comprehensive framework clearly defines stages of translating corporate strategies into optimised operating models through flexible architectural solutions, which allows an accurate estimate of the degree of effort required This is an inclusive framework covering business, organisational, and technological aspects of the modern enterprise. Analysis of architectural alternatives makes sure that there are no stones left unturned in search of optimisation for the target operating model This is a change management-aware framework that deals not only with structures and systems, but also with the people aspects of the transformation equation This is a delivery-focused framework that has governance, issue escalation, and resolution mechanisms built in to ensure the successful transformation journey

19 KIRILL DEREVENSKI e: l: w: strategicbusinessarchitecture.com INTELLECTUAL PROPERTY This presentation contains proprietary materials and information belonging to Kirill Derevenski All materials and information contained herein are protected by copyright law and may only be reproduced or reused with prior written permission