Defining Value Proposition: What's the Soul of Your Business Architecture
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The document discusses the significance of business architecture and its value proposition, emphasizing the need for understanding the organization’s gaps and improving transparency in decision-making. It provides real-world examples of business transformations and decision-making enhancements, highlighting the importance of aligning strategy with execution. Effective communication and outlining the business architecture's value to stakeholders are key for driving successful organizational change.
![What Are They Thinking?
6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 5
“We’ve been successful without it for decades.”
“If it was that important, I would have learned about it
in Business School.”
“This is just the flavor of the day. It will pass and I
have real work to do.”
“If we do this, then I have to…
…change.
…do more work.
…do things I really don’t want to do.
…be more transparent.
…be more accountable.
…[fill in the blank].
“If it’s been missing, then it must mean we’ve been
doing it wrong…”](https://image.slidesharecdn.com/kuehn-baguild-definingthesoulofyourbusarchberlinjune2015-170419183940/85/Defining-Value-Proposition-What-s-the-Soul-of-Your-Business-Architecture-5-320.jpg)
![Describing The Value
6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 22
A Format That Works
VALUE TO
[COMPANY]
[OUTCOME] [OUTCOME]
[Strategic Priority Enabled]
[Strategic Priority Enabled]
[How exactly business
architecture helps]
…
…
[Strategic Priority Enabled]
[Strategic Priority Enabled]
[How exactly business
architecture helps]
…
…
[The Purpose]
[One or two simple, memorable sentences that describe what business architecture does for the enterprise.]](https://image.slidesharecdn.com/kuehn-baguild-definingthesoulofyourbusarchberlinjune2015-170419183940/85/Defining-Value-Proposition-What-s-the-Soul-of-Your-Business-Architecture-22-320.jpg)
![Business Architecture “Charter”
Background and Case For Change
Purpose to [Company]
Scope
Value to [Company] – Copy in the picture!
Value Proposition (i.e. “Opportunity” addressed)
How business architecture helps
Tie back to enterprise strategic priorities
Stakeholders
Measures of Success
“Services” Provided
Organizational Structure
Engagement Model
6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 23
Content to consider](https://image.slidesharecdn.com/kuehn-baguild-definingthesoulofyourbusarchberlinjune2015-170419183940/85/Defining-Value-Proposition-What-s-the-Soul-of-Your-Business-Architecture-23-320.jpg)
Defining Value Proposition: What's the Soul of Your Business Architecture
- 1. DEFINING VALUE PROPOSITION: WHAT’S THE SOUL OF YOUR BUSINESS ARCHITECTURE 17 June 2015 6/4/2015 COPYRIGHT © 2015 S2E CONSULTING INC.
- 2. Our Time Together Today The value of business architecture… The struggle for understanding Value propositions you can use Tips to communicate the value 6/4/2015 2COPYRIGHT © 2015 S2E CONSULTING INC.
- 3. THE STRUGGLE FOR UNDERSTANDING 6/4/2015 3COPYRIGHT © 2015 S2E CONSULTING INC.
- 4. 6/4/2015 CONFIDENTIAL – S2E CONSULTING USE ONLY 4
- 5. What Are They Thinking? 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 5 “We’ve been successful without it for decades.” “If it was that important, I would have learned about it in Business School.” “This is just the flavor of the day. It will pass and I have real work to do.” “If we do this, then I have to… …change. …do more work. …do things I really don’t want to do. …be more transparent. …be more accountable. …[fill in the blank]. “If it’s been missing, then it must mean we’ve been doing it wrong…”
- 6. Why Are They Thinking It? 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 6 The Maturity of Discipline* Them? Us? * Source: Roger’s Innovation Adoption Curve Why are they not inspired to act?
- 7. What Can We Do About It? 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 7 Create Demand. UNDERSTAND THE PROBLEM ILLUMINATE THE GAP ADDRESS THE GAP TELL THE STORY “In order to find an answer, one must live in the question.” Learn the people, the issues, the opportunities, the facts – and the impacts (So what? What happens if we do nothing?) Point out the gap they did not know was there. Carve out “whitespace.” Create your market. Create a movement! Share findings formally or informally Show how your solution perfectly addresses the gap Talk about how your solution can help (and show how it’s helped others), find an advocate and do it. Describe how it fits with what others do. Good ideas will spread Capture success stories with quotes and metrics from day one; tell your story and help others tell it for you See also good article in Washington Business Journal, “To create demand, follow five key rules, without fail”
- 8. Real World Example #1 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 8 Taking an enterprise approach to business transformation UNDERSTAND THE PROBLEM ILLUMINATE THE GAP ADDRESS THE GAP TELL THE STORY Transformation failed twice before, but major customer issue still exists • Learned who was involved, approaches taken, results and root causes The gap was needing an enterprise approach • All previous attempts were analyzing and solving the problem in silos • No one could holistically understand what was happening or the impact, let alone address it VP Bus Arch obtained buy-in from business steering committee to sponsor an enterprise architected solution • Told current and future state story through vignettes • Created first Target Architecture in company; close business and IT Architecture partnership Story told widely • This transformation was the first of many; led to entire enterprise transforming around customer experience • CX steering committee was formalized
- 9. Real World Example #1 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 9 Taking an enterprise approach to business transformation Bus. Area A Bus. Area B Bus. Area C Bus. Area D Bus. Area E Bus. Area F Bus. Area G Bus. Area H Communication Content Generation Bus. Area A Bus. Area B Bus. Area C Bus. Area D Bus. Area E Bus. Area F Bus. Area G Bus. Area H Communication Preparation Bus. Area A Bus. Area B Bus. Area C Bus. Area D Bus. Area E Bus. Area F Bus. Area G Bus. Area H Communication Generation Bus. Area A Bus. Area B Bus. Area C Bus. Area D Bus. Area E Bus. Area F Bus. Area G Bus. Area H Communication Delivery Bus. Area A Bus. Area D Bus. Area H Communication Viewing Bus. Area A Bus. Area B Bus. Area F Bus. Area G Communication Tracking Customer PRODUCT-CENTRIC
- 10. Real World Example #1 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 10 Taking an enterprise approach to business transformation CUSTOMER-CENTRIC Bus. Area A Bus. Area B Bus. Area C Bus. Area D Bus. Area E Bus. Area F Bus. Area G Bus. Area H Communication Content Generation Shared Cap. Communication Preparation Customer Shared Cap. Communication Generation Shared Cap. Communication Delivery Shared Cap. Communication Tracking Shared Cap. Communication Viewing
- 11. Real World Example #2 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 11 Improving Portfolio Management decision-making UNDERSTAND THE PROBLEM ILLUMINATE THE GAP ADDRESS THE GAP TELL THE STORY Desire to improve transparency and decision-making within Portfolio Management process • No way to reconcile investment with direction • No good way to reconcile spend within / across portfolios, identify dependencies or measure results The gap was needing a common business framework VP Bus Arch brought capability heat maps to Portfolio Leadership Council with insights • Created a visual view of capability map • Created heat maps: • Direction vs. spend • Spend within and across portfolios • Defined standard metrics for capabilities Partnered with Portfolio Management Team • Embedded business capabilities and heat mapping into portfolio management submission and decision-making process
- 12. Real World Example #2 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 12 Improving Portfolio Management decision-making INVESTMENT IS NOT WELL-ALIGNED TO STRATEGY
- 13. Real World Example #2 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 13 Improving Portfolio Management decision-making INVESTMENT HAS SOME REDUNDANCY AND CONFLICT
- 14. Real World Example #3 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 14 Aligning strategy with execution UNDERSTAND THE PROBLEM ILLUMINATE THE GAP ADDRESS THE GAP TELL THE STORY Realize Strategy value stream is fragmented • IT leadership asking for help with specific challenges, but root causes cross the value stream (e.g. not aligning to business direction, bottom-up planning, not measuring results, etc.) • Issues coupled with desire to grow, transform and bring together business units The gap was needing an integrated, consistent, enterprise Realize Strategy value stream Defined an enterprise Realize Strategy value stream; currently applying business architecture as possible • Partnering closely with all relevant business and IT roles • Building role for business architecture into the value stream • Demonstrating value to early customers The rest of this story is unwritten… • Reconciled current processes against general Realize Strategy value stream; highlighted issues and opportunities
- 15. Real World Example #3 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 15 Aligning strategy with execution Assess Impact Clarify Goals and Strategy Architect the Change Identify the Gaps • Provide High Level Scope Definition • Provide Framework for Requirement Acceleration and Reuse • Provide End-to-End Traceability and Metrics for Consistent Measurement PORTFOLIO MANAGEMENT Provide a framework to analyze investment within and across portfolios • Map Strategy • Identify Strategy Impacts • Develop Target Architecture to Translate How Strategy Will be “Operationalized” • Compare Current to Target Architecture to Identify Necessary Changes • Inform Strategy: • Articulate Current State • Identify Strategy Impacts • Map Strategy • Organize Changes into a Strategic Roadmap • Identify Impacts, Stakeholders, Dependencies, and Integration Points Across Initiatives BA Role BA Role Develop Goals and Strategy Architect Changes Develop Roadmap Execute Solutions Measure Progress
- 16. VALUE PROPOSITIONS YOU CAN USE 6/4/2015 16COPYRIGHT © 2015 S2E CONSULTING INC.
- 17. One Way To Explain “Why Now?” 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 17 Growth and Success Led to Bigger, more complex, interrelated organizations Insufficient collaboration across the organization (siloed) Lack of documentation; “accidental business design” Limited visibility of the breadth and depth of the organization Fragmented customer experiences and inefficient, redundant operations Difficulty reacting to the pace of change required by the external environment A low success rate in implementing strategies well or quickly enough A Common Reality
- 18. Business Architecture Opportunities We need to align strategy with execution (do it better and / or be more agile) We need to enable enterprise-wide business transformation We need to shift the organization to a customer-centric business model We need to increase operational efficiency and reduce expense 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 18 A few examples of what to listen for; addressing them = value! Some of the opportunities and / or ways business architecture addresses them may overlap.
- 19. Business Architecture Opportunities We need to improve how we plan and prioritize work across the enterprise We need to make better investment decisions within and across portfolios We need to improve the efficiency of our solution delivery 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 19 A few examples of what to listen for; addressing them = value! Some of the opportunities and / or ways business architecture addresses them may overlap.
- 20. Business Architecture Opportunities We need to ensure our IT strategy and architecture are aligned with our business We need to modernize our legacy environment We need to merge organizations / business units or drive consistency across them 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 20 A few examples of what to listen for; addressing them = value! Some of the opportunities and / or ways business architecture addresses them may overlap.
- 21. Opportunity Example 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 21 “We need to merge organizations / business units or drive consistency across them…” POTENTIAL DRIVERS: • Company merger or acquisition • Internal business unit consolidation • Internal and / or external need for consistency • Desire to reduce complexity POTENTIAL STAKEHOLDERS: HOW BUSINESS ARCHITECTURE HELPS: • Business and IT Leaders (who are driving and who are impacted) • Business and IT Leaders and teams who are responsible for executing • External stakeholders involved in a company merger or acquisition • Provide a high-level, business-focused framework to: • Identify the entire business and IT scope and change impact • Reconcile and make decisions about the future state • Break up the scope of making changes into initiatives • Enable the change
- 22. Describing The Value 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 22 A Format That Works VALUE TO [COMPANY] [OUTCOME] [OUTCOME] [Strategic Priority Enabled] [Strategic Priority Enabled] [How exactly business architecture helps] … … [Strategic Priority Enabled] [Strategic Priority Enabled] [How exactly business architecture helps] … … [The Purpose] [One or two simple, memorable sentences that describe what business architecture does for the enterprise.]
- 23. Business Architecture “Charter” Background and Case For Change Purpose to [Company] Scope Value to [Company] – Copy in the picture! Value Proposition (i.e. “Opportunity” addressed) How business architecture helps Tie back to enterprise strategic priorities Stakeholders Measures of Success “Services” Provided Organizational Structure Engagement Model 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 23 Content to consider
- 24. BA Guild Scenarios and Case Studies Scenarios Scenarios are common situations where business architecture can be applied Scenarios provide context for applying blueprints See Part 4 of BIZBOK® Guide Case Studies Case Studies are actual examples where business architecture has been applied for specific scenarios See Part 7 of BIZBOK® Guide and Innovation Summit presentations; share yours with the Case Study Collaborative Team! 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 24
- 25. TIPS TO COMMUNICATE THE VALUE 6/4/2015 25COPYRIGHT © 2015 S2E CONSULTING INC.
- 26. Top Tips For Communicating 1. Know why you exist – what is the soul of your business architecture practice? Define your value proposition to the organization first. Value proposition drives key decisions Keep it simple and tied to enterprise priorities Limit the initial scope / focus Follow the format 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 26 Based on years of things that worked and didn’t… Services Provided Metrics Captured Practice Structure and Capabilities Needed Work Selected Business Architecture Value Proposition
- 27. Top Tips For Communicating 2. Do have top-down support – Go as high as you can go as soon as you can. Build advocates everywhere. 3. Start intentional change management and communication as soon as you decide to formalize the practice. 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 27 Based on years of things that worked and didn’t…
- 28. Top Tips For Communicating 4. Carve out “whitespace” and have a perspective on how you integrate with others. Share that perspective for context in conversations Solve problems and deliver results – not just architecture Be prepared that solving certain problems will likely require partnership with other disciplines 5. Be passionate about what you do! 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 28 Based on years of things that worked and didn’t…
- 29. In Summary… Work within our realities, but have fun with it. Think marketing, create demand. Listen for the opportunities, act swiftly, execute them well, tell the story and build momentum. Know the soul of your business architecture, communicate your message simply, and be soulful! 6/4/2015 CONFIDENTIAL – FOR S2E CONSULTING USE ONLY 29
- 30. Enjoy the Journey! 6/4/2015 30COPYRIGHT © 2015 S2E CONSULTING INC. Whynde Kuehn E-mail: whynde.kuehn@s2etransformation.com Phone: +1 347.880.1637 Website: S2etransformation.com Keep In Touch.
- 31. Successfully executing your strategic vision