In shifting the focus away from enterprise architecture being seen purely as an IT discipline, organizations are beginning to formalise the development of business architecture practices and business architecture outcomes. The OpenGroup has made the differentiation between business, IT and enterprise architects through their various working groups and certification tracks. However, industry at present is grappling to try and understand where the discipline of business architecture resides in the business and what value it can provide separate of the traditional project based business analysis focus. This presentation will take the audience through an overview of some of the critical questions being asked by business and how these are addressed through the discipline of business architecture. Using both method as well as case study examples, I will show the audience an approach to building more cohesion across the business landscape using business architecture techniques and artefacts. The presentation will focus on using business motivation models, strategic scenario planning and capability based planning techniques to provide input into the strategic planning process. It will also highlight some of the outputs through examples from engagements.

1. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 31
Building a More Cohesive
Organisation Using
Business Architecture
FINAL V.10.0 –11TH MARCH,2013
CraigMartin
COOandChiefArchitect ofEnterpriseArchitects

2. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 32
Mobile: +61 419 192 929
Twitter: @eatraining
Email: craig.martin@enterprisearchitects.com

3. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 33
Look Familiar
60 000 views and counting

4. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 34
Related Webinar
› Slideshare - Bridging business
analysis and business
architecture - The Open Group
webinar
» http://slidesha.re/10oCKOY
› Video on the OpenGroup
Webinar site –
» http://bit.ly/105xEYy

5. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 35
EA is a leading international provider of strategy
and architecture services and capabilities
Championing Practice Awareness in
the Community
• Chief Architect / CTO Round Tables
• Virtual Teaming & Practitioner
Collaboration
• Open Group Participation
• Industry Engagement
Lifetime Relationship with Practising
Architects
• Practitioner career lifecycle
management
• Architecture training and certification
• Professional development
• Community involvement
• PAYG payroll services
• Learning forums
Skills Uplift for Organisations &
Individuals
• TOGAF® 9.1 Certification
• ArchiMate® 2.0
• Advanced / Applied EA
• Business Architecture
• Information Governance
• Solution Architecture
• BPMN
Strategic Relationship With
Corporate Clients
• Strategy & Architecture Capability
Improvement
• The delivery of strategic architecture
outcomes
• Architecture delivery Accelerator
Frameworks
• Resourcing & Talent
• Managed Services
Learning
Services
Architect
Services
Thought
Leadership
Enterprise
Services

6. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 36
Man, Machine and the Dog
ON THE INTRODUCTION PAGE OF A TIER 1 BANK STRATEGY DOCUMENT:
"The factory of the future will have two
employees:
a man and a dog.
The man's job will be to feed the dog.
The dog's job will be to prevent the man
from touching any of the automated
equipment.”
Warren G Bennis

7. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 37
Utility
(Foundation)
Innovate
Build
Advantages
Assemble
Prolong
Advantages
Mix
Reduce
Disadvantages
What's Business About?
DIFFERENTIATION
The Building Block Analogy

8. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 38
Tactical
Strategic
Visionary
We develop advantages through the use of the
strategic planning discipline
The language of strategic planning is often inconsistent
Mission
Strategies
Tactics
Vision
Goals
Objectives
*Adapted from business motivation model - OMG

9. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 39
The Business strategy is often cascaded down into different
functional business units for delivery
This often leads to a series of programs functionally divided across the business units
Mission
Strategies
Tactics
Vision
Goals
Objectives
Business Unit 1
Program 1
Program 2
Business Unit 2
Program 3
Program 4
Business Unit 3
Program 5
Program 6
Each Business unit tends to create
their own strategies to achieve the
enterprise goals. These are often not
aligned to the other business unit
strategies
The language of strategy also
varies across business units, thus
reducing cohesion at the
strategic layer
Fragmentation therefore
begins at the strategic level

10. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 310
The minefield between strategy and projects
In navigating the minefield between strategy and execution there are multiple possible failure points
STRATEGY PROJECTS
   Strategy not
sufficiently tied to
operations
Needed capabilities
not properly
understood or
measured
Planners not
accountable for
delivery
Benefits aren’t
quantified or traced
back to original goals
The drivers of strategy
are often misaligned

This often leads to some typical
stakeholder issues regarding
transformation exercises
Are we investing in the right areas
across the enterprise?
Is my investment portfolio balanced across
all of the economic value add dimensions?
Are the strategic programs aligned,
or for that matter, are they the right
strategic programs?
There is a lot of activity going on out
there, how do I know we are doing
the right things?
Where can we take advantage of
synergies across the major strategic
programs?

11. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 311
Loss of cohesion of effort across transformation exercises results in loss of
cohesion for the business
Companies with a high level of cohesion affect EBIT directly
4%
8%
12%
16%
20%
24%
28%
32%
0 20 40 60 80 100 120
EBITMARGIN,2003-2007
CAPABILITIES COHERENCE SCORE
Coca-Cola
WrigleyPepsiCo
Kimberly-Clark
Sara Lee
ConAgra
Merck
Unilever
H.J. Heinz
Kraft
General Mills
Clorox
Campbell Soup Company
P&G
*Adapted from “The Coherence Premium”
Harvard Business Review, June 2010
A coherent organisation is one that is
thought of and executed as a whole

12. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 312
The goal of a good
business model is to
create coherence
Building Cohesion Requires an Understanding of
the components, and how to mix them in a manner
that is innovative and differentiating
› A Coherent Business Model is one that is
synchronised around:
» its market position,
» its product and service portfolio; and
» its most distinctive strategic capabilities
› All of the above working together as a system
› To bring coherence to these components requires
a variety of business skills and disciplines
The Environment
The Business Model
Market Model
Products and
Service Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value Chains
 Business Services
 Functions
 Data
 Applications
 Technology

13. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 313
Capability driven
› Capability driven architectures are designed to support the strategic objectives of an organisation
› Capabilities consist of people, process and technology
› To fully understand a capability the three components exists regardless of their maturity level
One of the means to drive out cohesion is through capability based planning
Capability based
planning is one of
the tools that looks
at the best “mix” of
resources required
to develop this
cohesion
Mission
Strategies
Tactics
Vision
Goals
Objectives
Outcome
CAPABILITY
People
Process
Tools

14. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 314
The capability mix challenge
› Identifying the right resources
to support the capabilities
› Mixing these resources
effectively to achieve the
capability outcomes
› Identifying mixes of
capabilities at a higher level to
drive out business outcomes
The Correct assembly and mix of these capabilities will help with cohesion across the business
and drive out a successful strategy

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Finding the Right Business Mixes
The Challenge is reducing the time it takes to move from the unresolved
business challenges space to the repeatable formulas space
Unresolved
Business
Challenges
Rules of thumb
Robust,
repeatable and
replicable
formulas &
processes
Ultimately all innovative
algorithms will become utility.
* From Roger Martin (2009) The Design of Business

16. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 316
Who is best qualified to operate here?
ANALYTICAL
THINKING
INTUITIVE
THINKING
* From Roger Martin (2009) The Design of Business
GOAL: Reliably produce
consistent, predictable
outcomes
GOAL: Produce outcomes
that meet desired
objectives
Certain business disciplines are required to reduce the time to
codify
Key disciplines are required to reduce the time taken to move unresolved business challenges
into reliable and repeatable processes
Should investment go here
and who is qualified to
operate here?
Unresolved
Business
Challenges
Rules of
thumb
Robust, repeatable
and replicable
processes
Search for
“The EA Headspace”

17. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 317
Value
Mandate
E
A
B
C
D
Responsibility depends upon the mandate from business
The Architecture Mandate - Value Increases when Mandate Increases.
Business Architecture is
seen as a positive
progression away from IT
*Adapted from Ruth Malan, Dana Bredemeyer
• Maximize Product Profitability
• Maximise Market Share
• Maximise Customer Lifetime Value
Improve project
performance
Improve enterprise wide
program and portfolio
performance
Improve Business Performance
Improve Market
Performance (Shareholder
Value)
Improve Product/Service
Performance

18. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 318
Improve project
performance
Improve enterprise wide
program and portfolio
performance
Improve Business Performance
Improve Market
Performance (Shareholder
Value)
Value
Mandate
Improve Product/Service
Performance
E
A
B
C
D
What are the Possible Problem Scenarios?
The problem space varies significantly depending upon the mandate.
BUSINESS
TRANSITION
SPACE
We are looking to acquire
a variety of companies.
How can we apportion our
assets across the company
to best take advantage of
an M&A
The Business is losing market
share due to inefficiencies
across the value chain. Find
out what the bottlenecks are
and fix it
The business is going
through a major
transformation program.
Deliver the solution on time
and under budget.
Design the solution
for an HR system

19. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 319
Strategic Themes
Initiative 5
Initiative 6
Understanding the Gap Between Strategy and Execution:
SCENARIO 1 – BUSINESS IMPROVEMENT - SPAWNING INITIATIVES FROM THE STRATEGY MAP
Initiatives straight from strategy often results in loss of cohesion
Strategic Themes
Initiative 1
Initiative 2
Strategic Themes
Initiative 3
Initiative 4
Mandate: Improve enterprise wide
program and portfolio performance

20. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 320
Understanding the Gap Between Strategy and Execution:
SCENARIO 2 – BUSINESS TRANSITION - DEVELOPING THE UNIFIED BUSINESS MODEL
Creating a single unified business model helps build cohesion across the enterprise
Strategic Themes
Capability 1
Capability 2
Strategic Themes
Capability 5
Capability 6
Strategic Themes
Capability 3
Capability 4
Mandate: Improve Business
Performance

21. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 321
Understanding the Gap Between Strategy and Execution:
SCENARIO 3 – PLANNING AND PERFORMANCE - DEFINING THE BUSINESS MODEL FOR CANDIDATE
STRATEGIC SCENARIOS
Injecting Business Architecture into the Strategic Scenarios
Will Improve the Strategic Decisions as well as the execution
of that strategy
Semi
Integrated
Universal Bank
Product
Specialist
Customer
Owner
Infrastructure
Provider
Mandate: Improve market
performance

22. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 322
Understanding the gap between strategy and
execution
Goals and Drivers help define a driver tree hierarchy or value map
The value map
will help identify
enterprise aligned
business unit
drivers and
leverage points
Examples
• Revenue enhancement
• Margin enhancement
• Operating efficiencies
• Working capital
management
• Investment capital
productivity
• Capital structure
optimization
CORPORATE
LEVEL-SPECIFIC
Examples
• Pricing strategy
• Product assortment
• Departmental emphasis
• Product cost
• Store operating costs
• Corporate administrative
costs
• Operating cash reserves
• Inventory management
• Accounts payable
management
• Store base
• Leases
• Intangible assets
• Distribution assets
BUSINESS
UNIT-SPECIFIC
Examples
• Purchase frequency
• Household penetration
• Transaction size
• Gross margin
• Store operating expense
%
• SG&A expense %
• Distribution cost per
case
• Days cash on hand
• Inventory turns-store
and DC
• Account payable cycle
• Store-level profitability
• Debt/Equity ratio
• Annual capital
investment
OPERATING
VALUE DRIVERS
Earning loyalty & trust
with customers &
community
Make our
Processes simpler
and faster
Empower
the frontline to
Deliver Integrated
Financial Solutions
Deliver new
and relevant
products
Create a
performance
culture
REVENUE
COSTS
WORKING
CAPITAL
FIXED
CAPITAL
NOPLAT
INVESTED
CAPITAL
EVA®

23. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 323
Understanding the Strategic Scenarios
Each strategic scenario can be evaluated in line with the value disciplines of the organization
DRIVER TREES
AND VALUE MAPS
& GOALS
These value disciplines will help decisions around the strategic
balance between efficiency and effectiveness
There is often fragmentation around value disciplines which results in
“competitive” forces and flawed decision making

24. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 324
Developing
business models
for each scenario
Each strategic scenario will have a set of
corresponding business model options that
would need to be evaluated
Semi Integrated
Universal Bank
The Environment
The Business Model
Market Model
Products and
Service Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology

25. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 325
Documenting the Business Models
Building cohesion requires understanding across the entire business model
› Value Chain Analysis
› Cross Functional Models
› Capability/Business Anchor Models
› Process Models
› Application Models
› Data and information Models
› Technology Models
› Value Maps
› Product and Offering Maps
› Design Models
› Customer Experience
› Journey Maps
› Learning Maps
› Motivation Models
› Business Model Innovation
The Environment
The Business Model
Market Model
Products and
Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology

26. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 326
What we have found in large accounts
An ownership gap for business architecture exists - Lines of responsibility around cohesion and business architecture, are often unclear
Functional
Capabilities
Cross-Functional
Capabilities
EnterpriseCoherency
Capabilities
Strategic
Architecture
Mandate –
Business
Ownership
IT Architecture
Mandate –
IT Ownership
Business
Architecture
Mandate
Undefined
Cohesion Mandate
Undefined - Enterprise Planning Ownership

27. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 327
The functional capability anchor model provides the utility
building blocks of the organisation
The anchor model represents the "map" of the organisation

28. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 328
The Functional Capability Anchor Model - Overlays
Many Overlays Can be Used on this Anchor Model
CL

29. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 329
The functional capability anchor model – overlays:
The capability overlap is identified to help improve cohesion across the enterprise
Clearer visibility of synergies is required to consolidate strategic efforts across the major programs
Channel (Relationship Managers, Mobile Sales Force
& 3rd
Party Distribution)
NB Retail Quotation
Provision
NB Retail Identification
and Authentication
NB Retail Customer
Needs Analysis
NB Retail Contact
Management
NB Retail Account
Servicing
NB Retail Origination
NB Retail Customer
Information
Management
NB Retail Query and
Dispute Management
NB Retail Lead
Referral
ANZ Retail Quotation
Provision
ANZ Retail
Identification and
Authentication
ANZ Retail Customer
Needs Analysis
ANZ Retail Contact
Management
ANZ Retail Account
Servicing
ANZ Retail Origination
ANZ Retail Customer
Information
Management
ANZ Retail Query and
Dispute Management
ANZ Retail Lead
Referral
Retail Workforce
Planning
NB Retail Sales
Reporting
ANZ Retail Sales
Reporting
ANZ Retail Lead
Fulfilment
NB Retail Lead
Fulfilment
NB Retail Credit
Decisioning
Client Retail Credit
Decisioning
NB Retail Customer
Correspondence
ANZ Retail Customer
Correspondence
NB Retail Customer
On-boarding
ANZ Retail Customer
On-boarding
NB Retail Promotion
Execution
ANZ Retail Promotion
Execution
ANZ Prospecting
NB Prospecting
Retail Commission
Management

30. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 330
The Functional Capability Anchor Model – Overlays:
Hotspots and Issues are identified
Business architecture efforts are often tilted towards
either an issue centric view or a strategic centric view –
both views need to be considered
Some hot spots
exist under
product
manufacturing

31. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 331
The Functional Capability Anchor Model – Overlays:
Current and Planned Investment is identified
Often issues and planned investment are not aligned
Investment
skewed
towards
distribution
capability

32. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 332
The Functional Capability Anchor Model – Overlays:
Comparing Investment to Issues to Identify Loss of Cohesion
Comparing Multiple Overlays Often Produces High Value Insights

33. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 333
The Value of The Functional Capability Model
Anchor Models Have a Short Business Value Lifespan
› The Business Anchor Model tends to be Driven by IT
› It is often used as a tool to “talk” to the business to maintain architectural
integrity
› The capability models resonate more with the IT & architecture
disciplines, not necessarily with the business disciplines
› The Capability model becomes more the execution focussed piece – it is
in fact the downward facing artefact
› Cross functional capabilities start to move upwards and resonate more
with business stakeholders
The Environment
The Business Model
Market Model
Products and
Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology

34. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 334
Using Capabilities in The Functional Anchor Model
Capabilities and Capability Models require a different modelling technique
› Talk to business stakeholders in terms of People, Process and Tools that drive out an
outcome
› To come up with the detail around the these resources, you use the business analysis
community
› Cluster these capability components into capability models later, since these are the
models that the architecture discipline tends to use
› This approach also helps business stakeholders begin to understand the resources within
a capability
› This approach also begins to expose the resources for discussion and helps facilitate a
the assemble and mix discussions
The Environment
The Business Model
Market Model
Products and
Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology

35. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 335
The Cross Functional Capability Anchor Model Helps Identify
the Better Mix of Capabilities for Business Outcomes
Its at this point that business begins to see the true value of using capabilities
Standard functional capabilities can
be aligned to a value chain
Cross functional capabilities assemble and mix functional capabilities to
achieve outcomes in the value map or driver tree
Cross functional capabilities each drive out different
outcomes. Underlying functional capabilities will have
varying perspectives of capability maturity and capability
uplift
You can also use cross functional models as scenarios to
test the capability anchor model validity

36. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 336
The Cross Functional Capability Model
The Process Layer Plays a Strong Role in assembling capabilities for different
outcomes
36
PROCESS
Sign Up & Integrate
CAPABILITY
20. Information Services Management
CAPABILITY
15. Sales Execution
PROCESS
A1. Explore and compare
potential providers and
services
PROCESS
B2. Sign up and activate
account
PROCESS
C3. Integrate my store
with Australia Post’s API’s
precedes precedes precedes precedes
BUSINESS SERVICE
Customer Sales
Management
BUSINESS SERVICE
Partner Collaboration
PROCESS
C1. Receive information on
how the systems and
processes will work
PROCESS
C2. Install the necessary
hardware / software on
my systems
is realized by
LOGICAL
APPLICATION COMP.
Customer Sales
Management
LOGICAL
APPLICATION COMP.
Enterprise Resource
Planning
LOGICAL
APPLICATION COMP.
Partner Collaboration
Management
LOGICAL
APPLICATION COMP.
Security Management
communicates with communicates with
communicates with
implements
is realized by
implements
ACTOR
Post Staff
DATA ENTITY
Sales Order
ACTOR
Post Staff
participates in participates in
is processed by
consumes
SAP - CRM SAP - ERP auspost.com.a
u
IAM - OIM
is processed by
ACTOR
Fiona
participates in
Customer
CAPABILITY
People
Process
Tools

37. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 337
The Cross Functional Capability Model
Customer Experience Journeys can also be used as guides to assembling cross
functional capabilities
Cust Journey ViewCust Interactions View
Capability to Journey
A
Journey to Capability
Capability to Logical
Data (via Business Service)
Capability to Logical
App (via Business Service)
D
B
The Environment
The Business Model
Market Model
Products and
Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology
C
We often find product architecture missing in
this space:
• Value Maps
• Product and Offering Maps
• Design Models

38. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 338
The Cross Functional Capability Model
Use Stereotypes to Kick-start your Efforts
Stereotypes are a Recipe Set of Business Model Mixes and their outcomes
DIFFERENTIATED
BUSINESSMODELS
Utility
(Foundation)
Business Model Stereotypes
Innovate
Build Advantages
Assemble
Prolong
Advantages
Mix
Reduce
Disadvantages

39. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 339
Assemble
Build
Advantages
Mix
Prolong
Advantages
Optimise
Reduce
Disadvantages
The Cross Functional Capability Model
Utility Business Model Stereotypes provide a set of standard
business model execution styles to work with
Aggregator Category Leader Consolidator Customizer Disintermediator
Experience
Provider
Fast Follower Innovator Platform provider Premium Player
Regulation
Navigator
Reputation Player Risk Absorber
Solutions
Provider
Value Player
These Stereotypes are different from reference models
Standard assembly patterns of
functional and cross functional
capabilities can be leveraged as
foundation business models to
kick-start your efforts
* Based upon “The Essential Advantage” Leinwand & Mainardi

40. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 340
The Cross Functional Capability Model
Example: Experience Provider
Each stereotype can have a standalone business model to be used as a pattern - Experience Provider Stereotype
Mass Market
Love Mark Switching Costs
Seamless Music Experience
Hardware Design
Brand Content & Agreements
OEMS Record Companies
Personalised
Support
Retail Stores Apple Stores Apple.com iTunes
Marketing
Builds enjoyment, engagement, and emotional
attachment through strong brands or experiences
*Apples Example from “Business Model Innovation” Osterwalder

41. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 341
The Cross Functional Capability Model:
Using the Business Motivation Model to Focus on Outcome
The Motivation Model resonates well with business sponsors
› Business Stakeholders often find traditional business
architecture models difficult to consume
› We found that the motivation model resonates well with
business stakeholders
› Helps move away from pain point architecture to focus on
outcomes
› The challenge is that when you show this to the architect its
scoffed at – yet when you show it to the business
stakeholder their response is – this is Gold – this is what I
have been looking for.
The Environment
The Business Model
Market Model
Products and
Service
Model
Operating
Model
 Markets
 Industries
 Customers
 Market Segment
 Channels
 Customer
Relationships
 Value Proposition
 Offering: Products /
Services
 Capabilities
 Processes / Value
Chains
 Business Services
 Functions
 Data
 Applications
 Technology

42. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 342
Strategic alignment is determined by mapping of capability
dimensions to value levers
VALUE LEVERS
MaintenanceCost
Reduction
Productsper
Month(Brokers
andAdvisors)
Persistency
AcquisitionCost
Reduction
Numberof
Advisorsand
Brokers
PremiumSize
FundRetention
Percent Contribution of Current
Capability Resources to Target Values
48% 167% 100% 80% 18% 0% 60%
CAPABILITYDIMENSIONS
Products
Business Process
Information
Technology (Infrastructure)
Applications
Facilities
External Relations (Supply Chain and
Partnerships)
Organization and People
Very High
High
Medium
Low/Medium
None
0-49% of Target
Value
50-74% of
Target Value
75% of Target
Value

43. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 343
Use Capability Mixes to Re-align the Investment
Portfolio
› Provide executives with a cohesive,
non-project based view of the
investment spend
› Address Capex and Opex conflicts
› Address duplication of effort across
the portfolio landscape
› Maintain alignment of the ensuing
programs
› Allows business stakeholders to have
a consistent business focussed view
of the project investment and its
status
Support the investment planning cycle and cohesion of programs
Removed

44. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 344
Plan & Market
Information,
Knowledge &
Systems
People
Assets & Services
• Strategically critical
• HIGH coverage by in-flight initiatives
• NOT strategically critical
• HIGH coverage by in-flight initiatives
• Strategically critical
• LOW coverage by in-flight initiatives
• NOT strategically critical
• LOW coverage by in-flight initiatives
HIGH COVERAGE
LOW COVERAGE
Initiative
Coverage
(primary impact
on L1 and L2
activities only)
Capabilities with ‘high’ potential for improvement from issues layer
Often the Investment Slate can be adjusted to cater for the misalignment – This is the biggest challenge
Ref Capabilities
# In-flight
Initiatives
% Gap
C14
Sales Planning and
Management
9 0%
C15 Sales Execution 6 0%
C30 Network Development 6 0%
C3 Plan to Realize 5 11%
C10
Channel Strategy
Management
4 25%
Ref Capabilities
# In-flight
Initiatives
% Gap
C17 Customer Service 9 0%
C34 Track and Trace 4 0%
C45
Information, Knowledge &
Systems Delivery
2 14%
C43
People Day-to Day
Management
4 40%
Ref Capabilities
# In-flight
Initiatives
% Gap
C1
Research, Analysis &
Insights
4 50%
C8 Market Planning 3 60%
C13
Business Performance
Management
4 75%
C2
Corporate Vision &
Strategy Management
2 100%
C5
Acquisition and
Divestment
2 100%
C40 People Planning 4 100%
C48
Asset Lifecycle
Management
3 100%
Ref Capabilities
# In-flight
Initiatives
% Gap
C44
Information, Knowledge &
Systems Planning
11 63%
C45
Information & Knowledge
Governance
11 67%
C41 Recruit & Retain People 5 21%
C4 Innovation Management 3 100%
C51
Supplier Relationship
Management
2 100%
Strategically ImportantYES NO

45. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 345
Dealing with The Change Fallout
Building Cross Functional Teams to Facilitate Change
Creation of a Unified Team of cross enterprise disciplines to help socialise the
changes required for the
investment slate
Change
Manager
Finance
PMO
Business
Improvement
Strategy
Technology
Combination of People,
Process & technology to drive
out an outcome through
projects

46. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 346
The degree of change effort to move to the future state is
evaluated
Change Frameworks applied to your process components can help determine impact
Current
State
Future
State
Pain Points – Inefficiencies
The application submitted by the consultant is often incomplete. The application is reviewed for completeness and adjudicated. The conditional approval, along with a list or
required documents are then sent back to the MS, who will communicate the results, a conditional approval, back to the applicant. This process can take several days and requires a
significant time and effort from RBC resources.
What would a truly transformational scenario look like?
New Capabilities
1. Portable credit scoring system
and rules engine
2. Document verification at POS
3. Automated disbursement
Incremental
Improvement
Significant
Improvement
Changethe
Game
Required Changes
How are pain points addressed?
Credit scoring engine must be available to the mortgage specialist, permitting an on-the-spot adjudication
Document verification enabled at the point of sale by the cons.
Highly automated process which advances funds without the need for the human intervention
1
1
2
3
Contacts bank to
request mortgage
Cons. meets with
the applicant
Application is
complete
Application
submitted for
adjudication
Application is
adjudicated
Results are
communicated to
MS
Applicant gets
conditional
approval
Applicant submits
required docs
Documents are
verified
Client executes
documentation
Mortgage is
approved
Mortgage is set up on
bank systems
Funds are advanced
1
Contacts bank to
request mortgage
rep meets with the
applicant
Application is
complete
Application
adjudicated on the
spot
Applicant gets
conditional
approval
Applicant submits
required docs Documents are
verified
Client executes
documentation
Mortgage is
approved
Mortgage is set up on
bank systems
Funds are advanced
1
Contacts bank to
request mortgage
Cons meets with the
applicant
Application is
complete
Application
adjudicated and
docs verified
Client executes
documentation
Mortgage is
approved
Funds are advanced2
3

47. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 347
Business Model Assessment
Business Model Components
0.0
1.0
2.0
3.0
4.0
5.0
Shareholder
Customer
Employee
Product Offering
Price Structure
Distribution
Brand / Reputation
Customer Segment
Customer Experience
Network Capability
Operational Efficiency / IT
Financial Capability
Business
Systems
Customer Product
Vision
Each Candidate Business Model Can be Evaluated Against the Value Driver Dimensions
Measure the value of
each possible
operating model and
their ability to support
and deliver the
strategic scenarios

48. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 348
Capabilities and cross functional capabilities are evaluated in
light of all the change factors
The capability mixes are evaluated against each scenario to determine the optimal path going
forward
Requirements: Program “x” requires a $100M 5-year net benefit and must be implemented in under 3 years.
Strategic Scenarios
Cross Functional Capabilities

49. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 349
Roadmapping
Look to Mature Capabilities Through Increments
Capabilities Basic Intermediate Advanced
Customer Service
1. Service Team Trained and Equipped
Marketing Execution
2. Marketing Playbooks Automated
3. Marketing and Sales Campaign Pilot
5. Advertising Revenue Adjustment Calculation
7. Marketing and Sales Campaign Pilot
6. Customer Sat Score & Stakeholder Sat Score
Sales Execution
1 2 3 4 5
Current State Future State
2. Sales Playbooks Automated
4. Marketing and Sales Campaign Prototype
5. Sales Team Training
7. Cross Functional Process Automation
6. Pilot
1
2 3 7 8
76542
2
3
7
8
9
1
7
6
5
4
2
Maturity
9
Capabilities increase and
decrease maturity over time
depending upon outcomes.
Plan for increments that can
be absorbed by the
business

50. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 350
The Planning Roadmap Outcome
Architecture Roadmap – 3 Year Plan (FY11 to FY14)

51. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 351
Socialise the Architecture:
The Architecture Storyboard Walkthrough
These methods help the architecture speak for itself

52. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 352
In Closing:
Responsibility

53. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 353
Business Architecture and Business Analysis
Which of these disciplines are the most qualified to handle the relationship with the
stakeholder?
Context of Work
UnderlyingCompetency
Detail Focus Big Picture
FoundationalAdvanced
Entry
level
BA
Junior
BA
Inter-
mediate
BA
Senior
BA
Advanced
Generalist
BA
Analyst
BizArch
Senior
BizArch
Principal
BizArch
Master
BizArch
Distinguished
BizArch
Business
Analysis
Business
Architecture
Strategic Business
Architect
Principal Business
Architect
Business
Architect

54. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 354
Lack of
Opportunity
The Current Business Analysis Career Path
Dilutes the true Value
The progression or the business analyst often moves from business understanding to management and
delivery type functions
Time
KnowledgeOfBusiness
Entry
Level BA
Junior
BA
Intermediate
BA
Senior
BA
BA Project
Lead
BA Program
Lead
BA Practice
Leader
Business
Relationship
Manager
Principal Business
Architect
Strategic
Business
Architect
Delivering Path
Thought leadership in terms of
the utility layer, standards,
replicating, reliability etc.
Managing Path
Thought leadership in terms of
management, delivery, change
and politics
Planning Path
Thought leadership in terms
of innovation, business
models and mixes

55. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 355
The Business Architect Mandate
Role Confusion Exists Due to Lack of a Clear Mandate – this results in overlap of function, output and value
Environ.
Models,
Competitor
Analysis,
Strategic
Diagnosis
Segmentation
Positioning,
Strategy Map,
Decision Trees
Perceptual
mapping,
distribution
channels and
models
Customer
Experience,
Journey Maps,
Learning Maps
Campaign
Models,
Advertising
Messages, Key
Messages
Competitor
Strategy,
Expansion
Strategy,
Innovation
Strategy
Marketing Mix,
Product
Lifecycle Model,
Pricing and
Cash Flow
analysis
Regression
Analysis and
forecasting,
Platform and
Expansion Plans
Design models,
Value Maps,
Product and
Offering Maps,
Design Models
Product Line
plans
Motivation
Model, Driver
Trees, Systems
Theory
Org. Model and
Structures, Org.
Culture, Partner
and supplier
models
Change
Models,
Organization
Unit model,
Org. learning
models
Resource
Management
and Scheduling
procedures
Contracts, Time
and Expense
Procedures
Performance,
Business
Structures,
Value Maps
Risk Models,
Growth Models,
Capital
Structure
Models
Performance
Alignment
model, Root
Cause Model
Balanced
Scorecard,
Financial
reporting
Financial
Reporting
Procedures,
EPM
Value Chain,
Value Streams,
Decisions &
Events
Capability
Models
Process Maps
Function
Models
Use Cases
Process Models
Workflows &
Activities
Operating
procedures
Info Mgt
Principles
Info Use
Policies
Meta-Data
Definition
Subject
Classification
Information
Classification
Enterprise Info
Model, Info
Lifecycle Model,
Human
Interface Model
Custodian
Model,
Integration
View,
Presentation
Models
Security Rules,
BI Reports, User
Interface,
Warehouse and
datamarts
Health
Assessment
Application
Principles
Application
Framework
Current State
Target State
Services
Definitions
Function
Models
Wiring
Diagrams
Activity Views
Patterns
Deployment
Model
Application
Standards
Resource
Estimates?
Class/Module
View
Configuration
Models
Data Principles
Reference Data
Stds
Data Dictionary,
Data quality
processes
Data Directory
Field Level
Views
Technology
Watch
Health
Assessment
Asset Lifecycle
Technology
Principles
Tech Reference
Model
Current State
Target State
Service
Catalogue
Service
Definition
Mud Maps
(N/W, etc.)
Technology
Standards
CMDB
Management
Contextual
Conceptual
Logical
Physical
Implementation
Market Application Data Technology
Enterprise Architect
Solution Architect
Products &
Services Organizational Performance
Process &
Function Info
Business
Architect
Strategic
Business Architect
Principal
Business Architect
Senior Business Analyst /
Senior Business Architect Analyst Business Architect
Business Analyst

56. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 356
Confusion Regarding the Business
Architecture RoleThis is where the crowding is. The Bridge Between Business and Technology. Individuals need to differentiate themselves
from this space
Environ.
Models,
Competitor
Analysis,
Strategic
Diagnosis
Segmentation
Positioning,
Strategy Map,
Decision Trees
Perceptual
mapping,
distribution
channels and
models
Customer
Experience,
Journey Maps,
Learning Maps
Campaign
Models,
Advertising
Messages, Key
Messages
Competitor
Strategy,
Expansion
Strategy,
Innovation
Strategy
Marketing Mix,
Product
Lifecycle Model,
Pricing and
Cash Flow
analysis
Regression
Analysis and
forecasting,
Platform and
Expansion Plans
Design models,
Value Maps,
Product and
Offering Maps,
Design Models
Product Line
plans
Motivation
Model, Driver
Trees, Systems
Theory
Org. Model and
Structures, Org.
Culture, Partner
and supplier
models
Change
Models,
Organization
Unit model,
Org. learning
models
Resource
Management
and Scheduling
procedures
Contracts, Time
and Expense
Procedures
Performance,
Business
Structures,
Value Maps
Risk Models,
Growth Models,
Capital
Structure
Models
Performance
Alignment
model, Root
Cause Model
Balanced
Scorecard,
Financial
reporting
Financial
Reporting
Procedures,
EPM
Value Chain,
Value Streams,
Decisions &
Events
Capability
Models
Process Maps
Function
Models
Use Cases
Process Models
Workflows &
Activities
Operating
procedures
Info Mgt
Principles
Info Use
Policies
Meta-Data
Definition
Subject
Classification
Information
Classification
Enterprise Info
Model, Info
Lifecycle Model,
Human
Interface Model
Custodian
Model,
Integration
View,
Presentation
Models
Security Rules,
BI Reports, User
Interface,
Warehouse and
datamarts
Health
Assessment
Application
Principles
Application
Framework
Current State
Target State
Services
Definitions
Function
Models
Wiring
Diagrams
Activity Views
Patterns
Deployment
Model
Application
Standards
Resource
Estimates?
Class/Module
View
Configuration
Models
Data Principles
Reference Data
Stds
Data Dictionary,
Data quality
processes
Data Directory
Field Level
Views
Technology
Watch
Health
Assessment
Asset Lifecycle
Technology
Principles
Tech Reference
Model
Current State
Target State
Service
Catalogue
Service
Definition
Mud Maps
(N/W, etc.)
Technology
Standards
CMDB
Management
Contextual
Conceptual
Logical
Physical
Implementation
Market Application Data Technology
Enterprise Architect
Solution Architect
Products &
Services Organizational Performance
Process &
Function Info
Business
Architect
Strategic
Business Architect
Principal
Business Architect
Senior Business Analyst /
Senior Business Architect Analyst Business Architect
Business Analyst

57. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 357
The Various Roles and How They Support Decision Making
Moving unresolved business problems into the utility space is a journey across the complexity space that
is supported by both the business architects and business analysts
Software
Automation
Projects
Funds
investment
Widget
assembly
Credit card
approval
Inventory
Management
Outsourcing
Projects
Major re-
design
projects
Six-sigma based
process
improvement
analysts
New Product
design
Deals with other
companies
International
Delivery
On-line
purchasing
ERP based
process
improvement
Complex Processes, not
part of company’s core
competency: Outsource
Complex, dynamic
processes of high value:
undertake business
process improvement
efforts that focus on
people
Straightforward, static
commodity processes:
use automated ERP-Type
applications and / or
outsource
Straightforward, static,
and valuable: automate
to gain efficiency
High
High
Low
Low
Must be done but adds little
value to product or services
Very important to success, high
value added to products and
services
Strategic Importance
ProcessComplexityandDynamics
Complex negotiation, design, or
decision process
Many business rules; expertise
involved
Some business rules
Procedure or simple algorithm
Organization
Heuristics
Principal
Business
Architects
Business
Analysts
Strategic
Business
Architect
Senior
Business
Analysts
*Adapted from “Business Process Change” by Paul Harmon

58. | BUILDING A MORE COHESIVE ORGANISATION USING BUSINESS ARCHITECTUR E | ENTERPRISE ARCHITECTS © 201 358
Questions?