Architecting Core Bus Ops 18 Nov 14
- 1. Twin CitiesBusiness Architecture Forum Cargill 18 November 2014 1
- 2. Architecting Core Business Operations 1. Goals 2. Results 3. Start‐up 4. Governance 5. Business Model 6. Value Stream 7. Capability Maps 8. Strategy Management 9. Lessons Learned 10. Innovation Drivers Outline 2
- 3. Context • Mid‐sized company • Retail / Supply Chain business • Master Data / SOA initiative under way • Needed insight into business processes • Selected for process reengineering expertise • Evolved into a broader Bus. Arch. Approach 3 Enterprise Architecture Business Architecture Information Architecture Application Architecture Infrastructure Architecture Solution Architecture Conceptual Model
- 4. 1. InitialGoals Burning issues: • Understand business processes & constraints. • Improve business processes. • Prepare to replace old systems. # BIZBOKGuide 3.4 Bus. Process Modeling & Mgmt. Part 4 Bus. Arch. Scenarios 4
- 5. 2. Results • Cross‐functional transparency / integration • Business engagement & empowerment • Process‐based continuous improvement culture • Rational, coherent organization changes • Accelerator for “to be” development 5
- 6. 3. Start‐up • Office • Team • Organization Diagram • Stakeholder Map • Floor plan • Tools # BIZBOKGuide 2.3 Organization Map 3.8 Tooling Options 3.9 Maturity Model Part 5 KnowledgeBase B. 2 Roles & Competencies Key point Embedded with the business 6
- 7. 4. Governance Executive Leadership Team Business Architecture Team Business Architect Business Process Specialist Prototyping Team Process Owners Middle Mgmt. Supervisors SMEs • Direction • Prioritization • Signoff • Initiatives • Research • Education • Modeling • Recommendations / Vision • Ideation • Workshops • Reviews • Improvement # BIZBOKGuide 3.2 Governance • Crucial for: • Org. change mgmt. • Innovative change • Building trust 7
- 8. 5. Business Model # BIZBOKGuide 3.3 BusinessModel • Start point: High‐level business description • Is ‘dynamic’ • Useful for innovation / add value • Useful for global expansion 8
- 9. 6. Value Map # BIZBOKGuide 2.4 ValueMap • Surfaced key opportunities, e.g. org rationalization. • Main challenges in value stream • Upstream/downstream insights • Start point for deriving Capabilities 9
- 10. 7. CapabilityMaps ‐Example # BIZBOKGuide 2.2 CapabilityMap • Capabilities to Level 2 • Business perspective • Heat Maps • Competitive Differentiators 10
- 11. • 3+ year Roadmap. Tasks and Metrics by Quarter for first 2 years. • Business Vision is directional & unconstrained = projections, prototypes, etc. • Future State is constrained (e.g. by investment decisions & capacities) • Roadmap is directionally aligned with Business vision & projections • Provides context for holistically integrated organization change management VISION Future State x-Year Strategic Roadmap Current State 8. Strategy Roadmap • ‘To‐Be’: Ensure capabilities are future‐oriented! • Design out constraints and incorporate innovative best practices. 11
- 12. SWOT Analysis # BIZBOKGuide 2.1 Strategy Mapping • Basic framework for strategic analysis prior to developing & prioritizing initiatives. • Input to Capability Gap Analysis & Heat Maps. 12
- 13. Strategy Map # BIZBOKGuide 2.1 Business Strategy Map • Shows how cross‐functional Initiative support each other to drive results. • Input to capability linkages, strategic roadmap, & project portfolio (PMO). 13
- 14. Strategic Roadmap • Strategic metrics (balanced scorecard) • Key initiatives (project portfolio management) • Shows what capabilities (or interim architectures) must be ready by when • Strategy may be directive, emergent (innovative), or a blend. • Focus on outcomes, differentiators & ownership. # BIZBOKGuide 2.1 Business Strategy Mapping 14
- 15. Capability:Receiving Dock – Pallet 1 Purpose / Critical Outcomes: Unload palletized product from Carriers and deliver it to Receiving. 2 Guiding Principles / Policies / Core Values : NA Management Information 3 Key Performance Indicators: Number of pallets per day; All pallet product signed for must be staged for receiving same day. 4 Critical Reports & Report Frequency: Forecasting reports from logistics, Online tracking information from Carriers. Process Information 5 Business Objects (Items being worked on): Palletized product; Freight Log; Freight bill; 6 Key Business Inputs: Palletized product; Expediting requests; Forecasts. 7 Sources or Suppliers of Inputs: Courier, Expediting department, Logistics8 Process Roles (excl. Suppliers & Customers in 7, 14): Receiving Dock Assistant. 9 Key Tasks:Unload product from carriers; Inspect physical condition of packaging; Compare received product to Freight Bill; Update Freight Log; Forward copy of Freight Bill to AP (Accounts Payable); Sort for appropriate internal delivery; Deliver product to Receiving. 10 Procedures or work instructions:NA11 Critical Business Rules: Sort product accurately and deliver in a timely manner to Receiving department. Document exceptions or damage. 12 Key Input/Output devices: PC (Personal Computer); Copier; Rollers; Receiving Baskets; Totes; Receiving Conveyer; Forklift; Carts 13 Key Business Outputs: Unloaded product delivered to Receiving; Freight Bill forwarded to AP, Production supplies distributed to appropriate people. 14 Recipients or Customers of Outputs: AP & Receiving departments 15 Critical constraints: In priority order 1. Space constraints: Difficult to keep associated pallets together that should be processed or expedited together; Delivery and receiving of pallets is done through the same door; Couriers use space inside the building for loading and unloading; Congestion results in workflow challenges. 2. Workload is variable, and backlogs build up on heavy days, requiring overtime work. 3. Backlog and congestion contributes to Accounts Payable missing discounts deadlines, resulting in wasted dollars. 4. Process is very manual – Needs automated scanning system. 5. Some suppliers do not provide advance notice of delivery. 16 Best practices to incorporate: Leverage EDI; Provide proactive end‐to‐end inbound pipeline visibility (Refer Inbound Pipeline prototype) Process Information Applications Infrastructure Solution Design & Implementation Summary • Line‐of‐sight to business context # BIZBOKGuide 6 Bus. Arch. & IT Arch. Alignment 15
- 16. 9. Lessons Learned Challenges • Maintenance overhead • Entrenched thinking • IT Bottleneck • Metrics • Legacy platform / “Tribal” • ERP Risks • Staff Turnover • Turf issues • Mgmt. firefighting • Near‐term Vision • Process focus (not holistic) Insights • 80% of time on Future State • ‘Just enough’ principle • Tailor and adapt (e.g. org. lifecycle) • Exec. Sponsorship / Governance • Change Mgmt: Engage (ongoing) • Research • Innovation Team • Straw models / Wireframes / Prototypes • Lean workshops • Agile development • Link to pain points • Link to differentiators • Link to critical metrics • Deliver value fast (ongoing) 16
- 17. 10. Innovation Drivers “Push factors” (Burning Platform) • Intolerable / Unacceptable Current State • Global tends (Global, mobile, social, data) • Competition Proactive Innovation Strategy • Learning Organization (includes, but not limited to, ‘big‐data’) • Innovation Team (Prototyping team) • Customer complaints • Best Practice Gap Analysis (ERP Provider) • Research / Case Studies (e.g. HBR, Gartner, Gallup etc.) • Outside expertise for intractable problems • Improvement workshops with stretch goals (Kaizen events) • Rapid, trial‐&‐error experimentation (Marketing / Pace layers) 17
- 18. For more information contactWarwick Alcock atwarwick@agilityfirst.comMobile: 612.703.1123 18