Digital Transformation for Rapid Responsiveness

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1 Digital Transformation for Rapid Responsiveness Kerry Finn / Raytheon Company Setrag Khoshafian / Pegasystems Inc. Copyright 2018 Raytheon Corporation, All rights reserved Approved for Public Release

2 Outline Introduction Business Capability Framework Pegasystems Approach to Value Streams Responsiveness and Agility Planned and Unplanned Task Agile Methodologies and Competency Centers: aka Centers of Excellence Conclusions 2

3 Introduction 3

4 What is Business Architecture? Early Adopters of Business Capabilities Enables us to link Strategy to Execution Stops IT from burying their heads in Silo thinking Enables and supports a Digital Transformation Vision Contextual (Why), Conceptual (What), Logical (How) & Physical (With What) Viewpoints Approved for Public Release 4

5 What is the Business Capability Framework (BCF)? Business Capabilities have matured into a Standard Strategic Business Analysis and Planning Method A Mature Business Capability Framework includes: Business models (e.g. capability map, value streams, stakeholder outcomes) Principles (e.g. describe WHAT we do, Agnostic of Tech and Org Structure ) Guidelines (e.g. Strategic Portfolio Management Method. Not a Project Method ) Methods (e.g. Capability Based Analysis and Planning Method) Artifacts (e.g. Trade Studies, Value Stream Catalog, Business Capability Map) Enterprise Architecture Repository (e.g. Portfolio & Meta Model) Linkage to Technical Capabilities (e.g. Processes, Applications, COTS Platforms) Linkage to other Frameworks and Disciplines (e.g. Six Sigma, TOGAF, ITIL) Approved for Public Release 5

6 What Problem does the BCF Address? IT organizations have for years focused on functional silo strategy and portfolio management resulting in lean vertical automated technology solutions The Business Capability Framework challenges the silo functional and vertical automation and optimization thinking of IT today by shifting the focus to a cross-functional horizontal thinking Defines The Lower Level Capabilities of HOW the enterprise does it. Aerospace Raytheon & Defense Corporation Company? Operations Process 1 Process 2 Process 3 Process 4 Service 1 Service 2 Service 3 Service n IT Process 4 Technical & Process Capabilities represent low level services & capabilities of the company are Unstable and change over time Process n Approved for Public Release 6

7 What Problem does the BCF Address? IT organizations have for years focused on functional silo strategy and portfolio management resulting in lean vertical automated technology solutions The Business Capability Framework challenges the silo functional and vertical automation and optimization thinking of IT today by shifting the focus to a cross-functional horizontal thinking Level 0 - Enterprise Value Streams show the enterprise In Motion. Level 1 & 2 - Capabilities (mapping) shows the enterprise At Rest High Level Capabilities of WHAT the enterprise does. Business Capabilities of a company are Stable & Robust that don t change over time Defines The Lower Level Capabilities of HOW the enterprise does it. Business Capabilities of a company are Agnostic of organizational structure and technology. Contract to Cash 1.0 Strategic Planning Business Development 2.0 Product, Service Technology Management Aerospace Raytheon & Defense Corporation Company Business Architecture Enterprise Capabilities & Outcomes Operations Process 1 Process 2 Process 3 Process 4 Service 1 Service 2 Service 3 Service n Forecast to Plan Product Lifecycle Mgt Hire to Retire IT Service Request Business Capabilities 5.0 Customer Service IT 6.0 Human Capital 6.1 Strategic Planning 6.2 Recruit, Source & Select Employee 6.3 Employee Development 6.4 Reward & Retain Employee 6.5 Redeploy & Retire Employee 7.0 Business Technology Management Process 4 Technical & Process Capabilities represent low level services & capabilities of the company are Unstable and change over time 8.0 Financial Management Process n Approved for Public Release 7

8 Pegasystems Approach to Value Streams 8

9 Operational Best Practices: From Silos to End-to-End Value Streams Key Performance Indicator (KPI) Cross functional end-to-end digitized & automated value streams with Devices, People, Enterprise Applications 9

10 KPI AI

11 Evolution of Digital Process Automation Robotic Automation Dynamic Case Management Traditional BPM Digital Process Automation AI Digital Technologies

12 Traditional BPM Cultural Shifts Digital Process Automation From Silos to End-to-End Value Streams Work Automation Balance Speed of Innovation vs. Governance

13 Decisions & Action Leveraging Data Across Value Streams Value Steam Orchestration Layer Pega Live Data Virtualized Data Layer Integration Layer

14 Why are Business Capability Map so Important? Business Capability Maps provide: A key Viewpoint of a Corporation Mature Business Capability Framework (BCF) BCF Principles Applied Enterprise At Rest Viewpoint A Stable and Robust Viewpoint A Heated Index of Enterprise Health Further Analysis led to ibpm Capability Gap Approved for Public Release 14

15 Why are Business Capability Map so Important? Business Capability Maps provide: CAPABILITY CAUSES A key Viewpoint of a Corporation CONSTRAINT AT THIS VALUE STAGE CAPABILITY Mature HAS POTENTIAL Business TO Capability CAUSE CONSTRAINT AT THIS VALUE STAGE Framework (BCF) CAPABILITY PERFORMS AS REQUIRED BCF Principles Applied Enterprise At Rest Viewpoint A Stable and Robust Viewpoint A Heated Index of Enterprise Health Further Analysis led to ibpm Capability Gap HEATED INDEXES COLOR MAP RED YELLOW GREEN Notional Use Case Approved for Public Release 15

16 A&D Business Value Stream - Workflow Automation HEATED INDEXES COLOR MAP RED CAPABILITY CAUSES CONSTRAINT AT THIS VALUE STAGE YELLOW CAPABILITY HAS POTENTIAL TO CAUSE CONSTRAINT AT THIS VALUE STAGE GREEN CAPABILITY PERFORMS AS REQUIRED Notional Use Case Approved for Public Release 16

17 Why are Business Capability Map so Important? Business Capability Maps provide: A key Viewpoint of a Corporation Mature Business Capability Framework (BCF) BCF Principles Applied Enterprise At Rest Viewpoint A Stable and Robust Viewpoint A Heated Index of Enterprise Health Further Analysis led to ibpm Capability Gap Aerospace & Defense Mission Capability map Approved for Public Release 17

18 A&D Battlefield Value Stream Workflow Automations HEATED INDEXES COLOR MAP RED CAPABILITY CAUSES CONSTRAINT AT THIS VALUE STAGE YELLOW CAPABILITY HAS POTENTIAL TO CAUSE CONSTRAINT AT THIS VALUE STAGE GREEN CAPABILITY PERFORMS AS REQUIRED Notional Use Case Approved for Public Release 18

19 Responsiveness and Agility 19

20 20

21 Raytheon Responsiveness and Agility Approach An Automated and Intelligent Augmented Workforce that is Responsive and Agile SILO FUNCTIONAL AND TECHNOLOGY VERTICAL PROCESS OPTIMIZATION Approved for Public Release 21

22 Raytheon Responsiveness and Agility Approach An Automated and Intelligent Augmented Workforce that is Responsive and Agile SILO FUNCTIONAL AND TECHNOLOGY VERTICAL PROCESS OPTIMIZATION HORIZONTAL CROSS FUNCTIONAL AND TECHNOLOGY PROCESS OPTIMIZATION Approved for Public Release 22

23 Planned and Unplanned Tasks 23

24 Spectrum of Work Automation Structured Repetitive Spectrum of Work Work Automation Ad-Hoc Cognitive Unstructured Creative Clerical Manufacturing Warehouse AI Assisted Knowledge Worker: Expert Spectrum of Work & Worker Categories

25 Dynamic in Ad-Hoc Tasks Collaboration Speed & Quality of Change Contextual or Situational Events Based Learning and Adapting Design by Doing

26 Raytheon Planned and Unplanned Task Approach An Intelligent Automated Workforce that can handle Planned and Unplanned Tasks SILO FUNCTIONAL AND TECHNOLOGY VERTICAL PROCESS OPTIMIZATION HORIZONTAL CROSS FUNCTIONAL AND TECHNOLOGY PROCESS OPTIMIZATION Approved for Public Release 26

27 Agile Methodologies and Competency Centers: aka Centers of Excellence 27

28 Less Visibility Business Value Innovation High Visibility Think Big Think Digital, Think Innovation but Start Small Difficult Ease Easiest to Implement

29 Sliver Iterations Stages Cases, Processes, Rules, Decisions, UI, Integration Agile Workbench Backlog Sprint Cycle Agile Studio Release Transiti on Real-Time Lean Continuous Improvement Measure and Improve

30 What does a DX COE Provide? Enablement: Knowledge and Training: The on-boarding and training of team members for DX Agile + DevOps Methodology: Iterative with continuous improvement to achieve ROI Governance with Continuous Review and Expansion of DX Projects: Architecture and Design Review, Project backlog review, and expert advise Re-Use: The creation and management of reusable assets

31 Raytheon Adjustments to Existing Development Methodologies and CoE A Mature Business Capability Framework Leads to Business Valued Projects PORTFOLIO MANAGEMENT PROJECT MANAGEMENT Business Strategy R6s (Six Sigma) IPDS DevOps Enterprise Architecture SOA Governance BUSINESS CAPABILITY FRAMEWORK COE ibpm Governance IPDS Governance AI/ML COTS (SAP, PTC, Microsoft) PROJECT BASED COE ibpm (Pega) RPA Business Architecture SOA & Micro- Services THE CONCEPTUAL WHAT WE DO THE LOGICAL HOW WE DO IT Approved for Public Release 31

32 Conclusions 32

33 Balance Speed of Innovation vs. Governance Quick Win Speed Building Apps Low Code/No Code Responsive to Business Fast IT Innovative Governance Consistency Enterprise Scale Security, Reliability Maintenance IT Re-Use Practices 33

34 For more information. Battlefield Digital Transformation 34

35 Approved for Public Release