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CANVASSED in a Business (IT) Strategy Canvas: Business Vision, Architecture

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Flevy.com Best Practices
Flevy.com Best Practices

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/canvassed-in-a-business-it-strategy-canvas-business-vision-architecture-289 The "Deliver Business Value with IT" series provides a good overview and actionable material of the ways a CIO can provide valuable and effective support to your company strategy and leverages business model concepts to deliver business value from IT. Martin Palmgren propose an extremely solid piece of work that comes across as the A-Z reference of how to execute and implement IT strategy from a CEO and CIO level perspective." Executive Summary: The CIO and the IT Department need to position as premium provider of IT services and focus on value to cost.

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. Copyright 2012 COMMUNICATE! Build an effective IT Delivery Model to meet Business Needs! - To deliver to set business strategy and objectives ! !! By Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE 1  
. Copyright 2012 COMMUNICATE! CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives and the IT function in general. ! Target Audience! 3  
. Copyright 2012 COMMUNICATE! BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren ! Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 ! Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630! Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 ! Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 ! Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 ! In French: ! Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 ! Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : ! http://www.brighttalk.com/community/it-service-management/webcast/534/21388! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http:// deliverbusinessvaluewithit.wordpress.com /! I also share perspective @ some of the top French Business Schools, notably EDHEC! International Thought Leadership! 5  
. Copyright 2012 COMMUNICATE! Canvassed! - Business Vision, Architecture! !! By Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE 7  
. Copyright 2012 COMMUNICATE! Business (IT) Value Proposition! (IT) Business Model! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Business Strategy:! Business Architecture :! IT Strategy:! IT Architecture:! -  -  -  -  -  -  -  -  Vision! Articulate! Deliver! Strategy Execution! IT Vision! Baseline! Roadmap! Design! Build ! Time to Market (Governance: Performance & Conformity)! Deliver effective (IT) Performance Management! 9  
. Copyright 2012 COMMUNICATE! Business Vision! •  •  •  •  •  We Canvas the Business (IT) strategy ()! Perform Effective IT Management ()! Understand Stakeholder expectations ()! To ensure stakeholder “Buy In” ()! We “Canvas” the Business (IT) Vision ()! 11  
. Copyright 2012 COMMUNICATE! IT support the Business Model and we address Business:! •  Priorities! •  Objectives! •  Goals! ! With ROI and Impact demonstrated in a business case! As the Business (IT) strategy is Canvassed! ! ! 13  
. Copyright 2012 COMMUNICATE! Business (IT) Value Proposition! (IT) Business Model! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Strategic intent ! Strategic Lever! Business Strategy:! Business Architecture :! IT Strategy:! IT Architecture:! -  -  -  -  -  Vision! Articulate! Deliver! Strategy Execution! IT Business model! -  -  -  IT Vision! Baseline! Roadmap! IT Value Proposition! Design! Build ! Time to Market (Governance: Performance & Conformity)! Effective IT Performance Management! Execute Business Strategy! 15  
Strategic! Tactic! Operational! . Copyright 2012 COMMUNICATE! Strategy! Process! We deliver competitive services, execute strategy effectively and measure the added value to optimise investment in IT!! Leverage competitive advantage! Strategic! Tactic! Institutionalise! Consolidate! Operational! Stabilise! Time to Market (Performance & Conformity)! Application support ! Vendor Driven! Execute Business Strategy! Business Architecture! To Leverage competitive advantage! 17  
. Copyright 2012 COMMUNICATE! Understand Demand and Cost drivers! 1. Service definition! •  Clearly defined portfolio of products and services and aligned to business goals and priorities! •  Costs are understood for each service with a TDABC analysis for resource capacity, Asset consumption by service is established! •  ! Best practice Asset Management practices are in place and IT leverages frameworks.! ! ! ! ! ! ! Stabilise ! 19  
. Copyright 2012 COMMUNICATE! Shared Infrastructure! 3. Business proposition! Options are presented to management: In-house, shared services, outsourcing, cloudsourcing, etc! •  •  •  •  •  Key IT projects deliver value as planned! Strategic IT opportunities are identified but not articulated! The Board will be presented with risk assessment decisions on critical initiatives! Position IT services in relation to the competition and industry! IT analyse competitor's IT initiatives! Institutionalise ! 21  
. Copyright 2012 COMMUNICATE! Business Vision! •  Perform Effective IT Management ()! ! ! !   ! ! ! ! ! ! ! ! !! !! !!     !! !! !! !! !! !! !! !! ! ! !   ! ! ! ! ! ! ! ! - Get the Demand Drivers Right ()! - Perform Business Strategy Execution ()! - Supported by Business Architecture ()! - Confirm Business Vision ()! - Articulate the Business Value Proposition ()! - Deliver the Business Architecture ()! - Translate the Business Vision to an IT Vision ()! - Set the IT Value Proposition Baseline ()! - Construct the IT Business Model ()! - Design the IT Value Proposition ()! - Build the IT Value Proposition ()! - To Perform Effective IT Governance ()! 23  
. Copyright 2012 COMMUNICATE! ! To run the IT business effectively and leverage the execution ! of the business Strategy and objectives with IT we need to make educated investments (on paper compliance and KPI indications is nice to have but not enough!): 100% of the value impact is in the execution of the process of the supported services over the entire service life cycle (order to bill).! Conception, Realisation 20%! Run 80%! Get the demand drivers right! 25  
. Copyright 2012 COMMUNICATE! Business (IT) Value Proposition! (IT) Business Model! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Strategic intent ! Strategic Lever! Business Strategy:! Business Architecture :! IT Strategy:! IT Architecture:! -  -  -  -  -  Vision! Articulate! Deliver! Strategy Execution! IT Business model! -  -  -  IT Vision! Baseline! Roadmap! IT Value Proposition! Design! Build ! Time to Market (Governance: Performance & Conformity)! Effective IT Performance Management! Supported by Business Architecture! 27  
. Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate:! -  -  -  Articulate the Business Value Proposition! Translate (Articulate) Business Vision to Business Architecture Vision & Business Architecture! Vision of Business Architecture “to be”: state “where we need to go”, “where we are now” & “how we need to proceed”! Architecture principles! Business principles! Technology principles! -  Articulate! -  -  Build business case & roll out (with Roadmap)! -  Articulate the Business Value Proposition! 29  
. Copyright 2012 COMMUNICATE! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! IT Vision! IT Vision:! -  -  -  -  -  Translate the Business vision to an IT vision! Vision of IT “to be state”: “where we need to go”, “where we are now” & “how we need to proceed”! Regulatory requirements! Technology guiding principles! IT Governance guiding principles (process & organise decisions)! Translate the Business Vision to an IT Vision! 31  
. Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Roadmap! Roadmap:! -  -  -  -  -  -  Construct the IT Business Model and Value Proposition! Define IT “to be state”: “where we need to go”, “where we are now” & “how we need to proceed” with established KPIʼs! Report gap analysis findings! Design IT plan through a project portfolio! Cost out the plan (budget)! Develop consensus, business case for change! Construct the IT Business Model! 33  
. Copyright 2012 COMMUNICATE! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Build! Build:! -  -  -  -  -  -  Build the IT Value Proposition! Implement the project portfolio! Engage Organizational change! Control IT (measure outcome to set objectives)! Capture KPIʼs & Measure performance! Enforce governance! Build the IT Value Proposition! 35  
. Copyright 2012 COMMUNICATE! How fast can we get our products and services to market & how can IT support us in this activity from a Cycle Time and Cost Effectiveness perspective. ! Business Bottom Line! 37  
Manage product and service portfolio
 Develop products and services
 Develop and manage products and services
 Define the business concept and long-term vision
 Develop business strategy
 Manage strategic initiatives
 Develop vision and strategy
 Deliver products and services
 ! ! ! ! ! Acquire, construct and manage property
 ! Create and manage organizational performance strategy
 Benchmark performance
 Develop enterprise-wide knowledge management (KM) capability
 Manage change! Manage knowledge, improvement and change
 Build investor relationships
 Manage government and industry relationships
 Manage relations with board of directors
 Manage legal and ethical issues
 Manage public relations program
 Manage external relationships
 Determine environmental health and safety impacts
 Develop and execute environmental health and safety program
 Train and educate employees
 Monitor and manage environmental health and safety management program
 Ensure compliance with regulations
 Manage remediation efforts
 Manage environmental health and safety ! Design and construct/acquire nonproductive assets
 Maintain nonproductive assets
 Obtain, install, and plan maintenance for productive assets
 Dispose of productive and nonproductive assets
 Manage physical risk
 Perform planning and management accounting
 Perform revenue accounting
 Perform general accounting and reporting
 Manage fixed-asset project accounting
 Process payroll
 Process accounts payable and expense reimbursements Manage treasury operations
 Manage internal controls Manage taxes
 Manage international funds/consolidation
 Manage financial resources
 Manage the Business of Information Technology
 Develop and Manage IT Customer Relationships
 Manage Business Resiliency and Risk
 Manage Enterprise Information
 Develop and Manage Information Technology Solutions
 Deploy Information Technology Solutions
 Deliver and Support Information Technology Services
 Manage IT Knowledge
 Manage information technology
 Develop and manage human resources (HR) planning policies, and strategies
 Recruit, source, and select employees
 Develop and counsel employees
 Reward and retain employees
 Redeploy and retire employees
 Manage employee information
 ! ! Develop and manage Human Capital
 ! Develop customer care/customer service strategy
 Plan and manage customer service operations
 Measure and evaluate customer service operations
 Manage customer services
 ! Plan for and acquire necessary resources (Supply Chain Planning)
 Procure materials and services
 Produce/Manufacture/Deliver product
 Deliver service to customer
 Manage logistics and warehousing
 Understand markets, customers, and capabilities
 Develop marketing strategy
 Develop sales strategy
 Develop and manage marketing plans
 Develop and manage sales plans
 Market and sell products and services
 ! !   . Copyright 2012 COMMUNICATE! Business Drivers & Processes! Cost Effectiveness! Cycle Time! A Confirmed Business (IT) Value Proposition! 39  
Strategic! Tactic! Operational! . Copyright 2012 COMMUNICATE! Information Technology! IT Vision! Business Vision! IT Principles! Business Principles! IT Strategy! IT Roadmaps! Business Strategy! Strategic! Business Roadmaps! IT Objectives! Tactic! Business Objectives! IT Goals! Deliver business value and quantify result! Business Goals! Operational! Time to Market (Performance & Conformity)! Operating Processes! Business (IT) Vision and! 41  
. Copyright 2012 COMMUNICATE! Link Strategy and Operations! 1.  2.  3.  4.  Develop the Strategy! Translate the Strategy! Plan Operations! Monitor and Learn! 5.  Test and Adapt the Strategy! Execute Procedures and Initiatives! ! ! !! !! ! ! ! ! Business (IT) Strategy, link to operations! 43  
. Copyright 2012 COMMUNICATE! Define Market Position! 1.  2.  3.  4.  New entrants! Suppliers! Substitute products or Services! Buyers! 5.  Existing Competitors! ! ! !! !! ! ! ! ! Business (IT) Context! 45  
. Copyright 2012 COMMUNICATE! How does executive management view the IT department?! Baseline: ! ! To obtain a reasonable business contribution from IT investments! Objectives: ! - Balance value added to investment,! ! !! ! - Business value of IT projects,! ! !! ! - Provision of new business capabilities,! ! !! ! - Do we effectively use frameworks such as ISO 38 500, VALIT?! Business contribution to investment! 47  
. Copyright 2012 COMMUNICATE! How do users see the IT department?! Baseline: ! ! To be the preferred supplier of information systems! Objectives: ! - Preferred supplier of applications and operations as proposer of best in class solutions,! ! !! ! - Partnership with users (Stakeholder Strategy Map, Collaboration Theme Scorecard),! ! ! !! !! ! ! ! - User satisfaction.! ! !! !! !! ! ! ! - Do we effectively use methodologies such as the Stakeholder Strategy Map and the Collaboration Theme Scorecard in order to capture client needs (process) objectives and metrics.! Best in class solutions! 49  
. Copyright 2012 COMMUNICATE! In order to succeed IT need a clearly articulated business strategy:! Objectives: ! - Evolve from a service provider to strategic partner,! ! !! ! - Provide mutualised solutions focused on to develop best in class capabilities,! ! !! ! - Support the achievement of company strategies and objectives,! ! !! ! - Become the “supplier of choice” of information services,! ! !! !! ! ! - Establish a forward looking enterprise architecture strategy that enables the use of technology as a competitive edge in the financial market place,! ! !! !! ! ! - Become the “employer of choice” for career oriented IT professionals in the markets in which the group operates.! Business (IT) Strategy! 51  
. Copyright 2012 COMMUNICATE! Business Vision! •  To ensure stakeholder “Buy In” ()! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! - Support Business Objectives ()! - Understand Stakeholder Expectations ()! - IT provides competitive leverage ()! - IT delivers to demand and cost drivers ()! - Strategy is reflected in the IT Value Baseline ()! - Business Continuity is Ensured ()! - Set clear accountability & responsibility ()! - Deliver to Stakeholder Expectations ()! - With a Clear Baseline ()! - Business (IT) Value Governance ()! ! 53  
. Copyright 2012 COMMUNICATE! To ensure stakeholder “Buy In”:! •  You have to see IT from a customer perspective!!! •  And address stakeholders priorities:! –  Realise return on investment! –  Ensure that proposed services are competitive in the industry! –  IT Costs are transparent! –  IT competencies are at least equal to the competition! –  IT pricing is fair and clearly aligned with consumption! –  IT services are clearly defined and benchmarked! Support Business Objectives! 55  
. Copyright 2012 COMMUNICATE! Priorities from an Executive Management Perspective:! ! !! - IT supports the achievement of strategic business objectives! ! !! - IT Delivers value to expenditure! ! !! - IT costs are managed effectively! ! !! - IT risks are identified and managed! ! !! - Targeted inter company IT synergies deliver to schedule! ! ! !! !! - We have a clear vision towards which we expect the IT department to ! deliver: ISO 38 500, VALIT! IT provides competitive leverage! 57  
. Copyright 2012 COMMUNICATE! Priorities from an IT Management Perspective:! !! !! - We understand stakeholder expectations and propose a service portfolio that correspond to both Demand and Cost drivers with a focus on perfect order business transactions ! ! !! - We develop professional competencies needed for successful service delivery! ! !! - We capture organisational knowledge to continuously improve performance! ! !! !! !! - IT and Stakeholder departments have clear objectives, processes and indicators with clear accountability and responsibility to deliver to set objectives: ISO 38 500, ITIL, VALIT, COBIT, TOGAF! ! !! Strategy is reflected in the IT Value Baseline ! 59  
. Copyright 2012 COMMUNICATE! As we position IT as an added value activity we need to:! ! !! !! ! ! - Ensure that the IT and Stakeholder departments have clear objectives, processes ! and indicators with clear accountability and responsibility,! ! !! ! - Achieve best in class status as IT service provider and strategic partner,! ! !! ! - Maximise purchase power and operating effectiveness,! ! !! ! - Lever technology investments,! ! !! ! - Optimise technical Architecture and application support cost.! ! !! ! ! Set clear accountability & responsibility! 61  
. Copyright 2012 COMMUNICATE! •  •  •  •  ! IT contribution to company goals and objectives! IT optimisation of business processes! IT service proposition: At what cost, Are these services competitive within the industry, What new services could make us more competitive ?! IT service consumption: Who pays for the services, How can services be improved ?! ! With a Clear Baseline! 63  
. Copyright 2012 COMMUNICATE! •  •  •  •  •  •  The establishment of strategic direction and a target investment mix! The determination of the availability and sources of funds! Managing the availability of human resources! The evaluation and selection of programs to fund! Monitoring and reporting on investment portfolio performance! Optimisation of investment portfolio performance! Business (IT) Governance! 65  
. Copyright 2012 COMMUNICATE! How to align and lever operating, management and support processes through the effective implementation of IT.! - Do we do the right things? - The strategic question ! - The investment: ! ! ! ! ! ! - Is in line with our vision,! - Is consistent with our business principles,! - Contributes to our strategic objectives,! - Provides optimal value, at affordable cost, at an acceptable level of risk.! - Do we reap the benefits? - The value question ! - We have:!! ! ! ! ! ! - A clear and shared understanding of the expected benefits,! - Clear accountability for realising the benefits,! - Relevant metrics,! - An effective benefits realisation process over the full economic life cycle of the investment.! Business (IT) Investment Management! 67  
. Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value.! ! ! Stakeholder Strategy Roadmap:! Objectives: ! !! ! !! ! Which drives! ! !! ! !! ! That deliver! ! !! ! !! ! Executes! ! !! ! !! ! - Formalise stakeholder ! outcomes: To deliver value for all parties (partnership),! ! ! !! ! - Customer value: For effective and satisfied end users,! - Business processes: Speed, process innovation and growth,! - Employees and organisation: Collaboration that deliver strategy execution.! Captured in a Strategy Map! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 69  
. Copyright 2012 COMMUNICATE! ! ! The Collaboration Theme Scorecard: Sets process objectives, Identifies : levers for joint actions and wins, metrics and initiatives on a short, middle & long term basis.! ! ! Collaboration Theme Scorecard:! Objectives: ! ! !! ! ! !! ! ! !! ! - Set process objectives,! - Identify levers for joint actions & wins,! - Identify metrics, ! - Identify initiatives on a short, ! ! ! - middle long term basis.! Levers:! !! !! !! ! ! ! ! - Joint: Steering committee, development committee, project teams, cross functional teams, process improvement teams, functional improvement teams.! ! ! ! ! ! ! !! !! !! Collaboration Theme Scorecard! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 71  
. Copyright 2012 COMMUNICATE! Business Vision! •  “Canvas” the Business (IT) Vision ()! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! - As we “Canvas” the Vision ()! - The business (IT) strategy is directional ()! - Defined Market Position ()! - Competitive Positioning ()! - External environment ()! - Customer value proposition ()! - People and Organisation ()! - Overall structure ()! - Objectives and Plans ()! - Financial plans ()! 73  
. Copyright 2012 COMMUNICATE! Business Vision! •  “Canvas” the Business (IT) Vision ()! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! ! ! - Meet stakeholder expectations ()! ! - Communication and buy-in ()! ! - The Business (IT) Strategy ()! ! - Business (IT) Strategy, link to operations ()! ! - Business (IT) Tactics! ! - Business (IT) Context! ! - Captured in a Strategy Map! ! - & Canvas, articulated in a! ! - Collaboration Theme Scorecard! ! - Conceived in to a solid story! 75  
. Copyright 2012 COMMUNICATE! Industry structure! •  •  •  •  •  New entrants! Suppliers! Substitute products or Services! Buyers (customers)! Existing Competitors! ! ! ! ! Defined Market Position! 77  
. Copyright 2012 COMMUNICATE! There is a understanding of:! •  •  •  •  Political,! Environmental,! Social,! Technological! ! ! ! ! External environment! 79  
. Copyright 2012 COMMUNICATE! Appreciation of the implications for the strategy of:! •  •  •  •  •  •  •  Resources,! Skills and competencies,! Appropriate development / recruitment plans,! Shared direction,! Extent of buy-in to shared vision by key managers,! Barriers / commitment to change,! Structure of the organisation! ! ! Talent! 81  
. Copyright 2012 COMMUNICATE! There is a understanding of the:! •  Extent to which long term plans are coherent and logical,! •  Extent to which short term plans are appropriately costed and timetabled,! •  Consistency with overall goals and objectives! ! ! ! ! Objectives and Plans! 83  
. Copyright 2012 COMMUNICATE! There is a understanding of the:! •  Extent to which the strategy has been communicated,! •  Extent to which staff performance towards the business IT strategy is recognised! ! ! ! ! Communication and buy in! 85  
. Copyright 2012 COMMUNICATE! Link Strategy and Operations! 1.  2.  3.  4.  Develop the Strategy! Translate the Strategy! Plan Operations! Monitor and Learn! 5.  Test and Adapt the Strategy! Execute Procedures and Initiatives! ! ! !! !! ! ! ! ! Business (IT) Strategy, link to operations! 87  
. Copyright 2012 COMMUNICATE! Define Market Position! 1.  2.  3.  4.  New entrants! Suppliers! Substitute products or Services! Buyers! 5.  Existing Competitors! ! ! !! !! ! ! ! ! Business (IT) Context! 89  
. Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value for all parties.! ! ! ! The strategy canvas allow the teams to articulate and formulate objectives on a project / program basis for improved execution with an extended GAP, risk and added value analysis captured in a DARCI (Decision taker, Accountable, Responsible, Consulted & Informed).! & Canvas, articulated in a! 91  
. Copyright 2012 COMMUNICATE! In order to do so we need to:! Objectives: ! -! Levers: ! ! !! -! ! ! ! Conceived in to a solid story! 93  
. Copyright 2012 COMMUNICATE! Articulate the Business Architecture! •  As we articulate the Business Vision ()! - We focus on the business bottom line! ! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! ! - Time to Market Focus with ()! - A Confirmed Business (IT) Value Proposition ()! - Strategic Priorities as we ()! - Get demand and cost drivers right ()! - Execute Business Strategy ()! - Supported by Business Architecture ()! - To Leverage competitive advantage ()! - To the Strategic Plan ()! - Stabilise ()! - Consolidate ()! - Institutionalise ()! - Lever competitive advantage ()! 95  
. Copyright 2012 COMMUNICATE! How fast can we get our products and services to market & how can IT support us in this activity from a Cycle Time and Cost Effectiveness perspective. ! Business Bottom Line! 97  
Deliver products and services
 ! ! ! ! ! Acquire, construct and manage property
 ! A Confirmed Business (IT) Value Proposition! 99   Create and manage organizational performance strategy
 Benchmark performance
 Develop enterprise-wide knowledge management (KM) capability
 Manage change! Manage knowledge, improvement and change
 Build investor relationships
 Manage government and industry relationships
 Manage relations with board of directors
 Manage legal and ethical issues
 Manage public relations program
 Manage external relationships
 Determine environmental health and safety impacts
 Develop and execute environmental health and safety program
 Train and educate employees
 Monitor and manage environmental health and safety management program
 Ensure compliance with regulations
 Manage remediation efforts
 Manage environmental health and safety ! Design and construct/acquire nonproductive assets
 Maintain nonproductive assets
 Obtain, install, and plan maintenance for productive assets
 Dispose of productive and nonproductive assets
 Manage physical risk
 Perform planning and management accounting
 Perform revenue accounting
 Perform general accounting and reporting
 Manage fixed-asset project accounting
 Process payroll
 Process accounts payable and expense reimbursements Manage treasury operations
 Manage internal controls Manage taxes
 Manage international funds/consolidation
 Manage financial resources
 Manage the Business of Information Technology
 Develop and Manage IT Customer Relationships
 Manage Business Resiliency and Risk
 Manage Enterprise Information
 Develop and Manage Information Technology Solutions
 Deploy Information Technology Solutions
 Deliver and Support Information Technology Services
 Manage IT Knowledge
 Manage information technology
 Develop and manage human resources (HR) planning policies, and strategies
 Recruit, source, and select employees
 Develop and counsel employees
 Reward and retain employees
 Redeploy and retire employees
 Manage employee information
 ! ! Develop and manage Human Capital
 ! Develop customer care/customer service strategy
 Plan and manage customer service operations
 Measure and evaluate customer service operations
 Manage customer services
 ! Plan for and acquire necessary resources (Supply Chain Planning)
 Procure materials and services
 Produce/Manufacture/Deliver product
 Deliver service to customer
 Manage logistics and warehousing
 Understand markets, customers, and capabilities
 Develop marketing strategy
 Develop sales strategy
 Develop and manage marketing plans
 Develop and manage sales plans
 Market and sell products and services
 Manage product and service portfolio
 Develop products and services
 Develop and manage products and services
 Define the business concept and long-term vision
 Develop business strategy
 Manage strategic initiatives
 Develop vision and strategy
 ! !   . Copyright 2012 COMMUNICATE! Business Drivers & Processes! Cost Effectiveness! Cycle Time!
. Copyright 2012 COMMUNICATE! ! To run the IT business effectively and leverage the execution ! of the business Strategy and objectives with IT we need to make educated investments (on paper compliance and KPI indications is nice to have but not enough!): 100% of the value impact is in the execution of the process of the supported services over the entire service life cycle (order to bill).! Conception, Realisation 20%! Run 80%! Get demand and cost drivers right! 101  
Strategic! Tactic! Operational! . Copyright 2012 COMMUNICATE! Strategy! ! Business & IT Vision Articulated! Process! Strategic! ! Business Architecture & IT Architecture Aligned and delivered to Strategic Intent! Tactic! Operational! Time to Market (Performance & Conformity)! Application support ! Vendor Driven! Execute Business Strategy! Business Architecture! Supported by Business Architecture! 103  
. Copyright 2012 COMMUNICATE! ! Institutionalise: Shared Infrastructure! ! ! ! Options are presented to management: In-house, shared services, outsourcing! ! Leverage competitive advantage: Provide competitive advantage with a focus on business value! ! ! ! 4. Governance in place! ! ! Best practices processes continuously improved! Governance blueprint designed and operating! ! IT investments reflect:! 3. Business proposition! ! ! ! ! Key IT projects deliver value as planned! Strategic IT opportunities are identified but not articulated! The Board will be presented with risk assessment decisions on critical initiatives! Position IT services in relation to the competition and industry! ! IT analyse competitor's IT initiatives! 1. The strategic intent of the Board! 2. Business goal and priorities! 3. A clear IT portfolio of projects and services! 4. A Service Portfolio alignment to business goals and priorities! ! ! IT investments deliver a good return on investment! The IT Steering Committee will initiate a strategic IT competitive analysis! ! Stabilise: Understand demand and cost drivers! ! Consolidate: Provide Better Information! ! 1. Service definition! ! ! ! Clearly defined portfolio of products and services: - Portfolio aligned to business goals and priorities! ! Customer base and demand is clearly defined: ! ! Costs are understood for each service: - TDABC analysis for resource capacity, Asset consumption by service is established! ! ! ! Prices / SLAʼs for services are established: ! ! ! ! ! ! ! ! ! Best practice Asset Management practices are in place. - IT leverages best practice such as VALIT, COBIT, RISKIT, ITIL,CMMI, TOGAF.! ! ! ! ! ! ! 2. Market definition! - Who is consuming what services! - Internal rates compared to outside marketplace for IT (Make or Buy)! To the Strategic Plan! 105  
. Copyright 2012 COMMUNICATE! Provide Better Information! 2. Market definition! •  Customer base and demand is clearly defined: - Who is consuming what services! •  Prices / SLAʼs for services are established and Internal rates compared to outside marketplace for IT (Make or Buy)! ! ! Consolidate ! 107  
. Copyright 2012 COMMUNICATE! Provide competitive advantage with a focus on business value! ! ! 4. Governance in place! Best practices processes continuously improved! Governance blueprint designed and operating! IT investments reflect: The strategic intent of the Board, Business goal and priorities, A clear IT portfolio of projects and services, A Service Portfolio alignment to business goals and priorities! IT investments deliver a good return on investment! The IT Steering Committee will initiate a strategic IT competitive analysis! Lever competitive advantage ! 109  
. Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate:! -  -  -  Articulate the Business Value Proposition! Translate (Articulate) Business Vision to Business Architecture Vision & Business Architecture! Vision of Business Architecture “to be”: state “where we need to go”, “where we are now” & “how we need to proceed”! Architecture principles! Business principles! Technology principles! -  Articulate! -  -  Build business case & roll out (with Roadmap)! -  Articulate the Business Value Proposition! 111  
. Copyright 2012 COMMUNICATE! Business Architecture! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Business Architecture:! ! The Statement of Architecture Work is identified as one of the inputs to this phase. The steps to be executed in this phase include:! •  •  Selection of reference models, viewpoints, and tools! Development of Baseline and Target Business Architecture followed by gap analysis! Define the roadmap components! Resolve impacts across the Architecture Landscape! Conduct formal stakeholder review! Finalize the Business Architecture! Create Architecture Definition Document   There is no reference to the business case, value proposition, or the key performance indicators during the definition of the Target Business Architecture or its review and finalization. ! 113   •  •  •  •  •  !
. Copyright 2012 COMMUNICATE! Develop Baseline Business Architecture ! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Develop Target Business Architecture Description:! ! Develop a Target Description for the Business Architecture, to the extent necessary to support the Architecture Vision. The scope and level of detail to be defined will depend on the relevance of the business elements to attaining the Target Architecture Vision, and on whether architectural descriptions exist. To the extent possible, identify the relevant Business Architecture building blocks, drawing on the Architecture Repository. Where new architecture models need to be developed to satisfy stakeholder concerns, use the models identified within Step 1 as a guideline for creating new architecture content to describe the Target Architecture. ! 115  
. Copyright 2012 COMMUNICATE! Perform GAP Analysis! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Perform GAP Analysis:! ! First, verify the architecture models for internal consistency and accuracy:! •  Perform trade-off analysis to resolve conflicts (if any) among the different views,! •  Validate that the models support the principles, objectives, and constraints,! •  Note changes to the viewpoint represented in the selected models from the Architecture Repository, and document.! 117  
. Copyright 2012 COMMUNICATE! Define Roadmap Components! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Define Roadmap Components:!   Following creation of a Baseline Architecture, Target Architecture, and gap analysis results, a Business Roadmap is required to prioritize activities over the coming phases based upon the extent to which the value propositions outlined in the Architecture Statement of Work are realized. This initial Business Architecture Roadmap will be used as raw material to support more detailed definition of a consolidated, crossdiscipline roadmap within Phase E: Opportunities & Solutions. ! 119  
. Copyright 2012 COMMUNICATE! Conduct Formal Stakeholder Review! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Conduct Formal Stakeholder Review:!   Check the original motivation for the architecture project and the Statement of Architecture Work against the proposed Business Architecture, asking if it is fit for the purpose of supporting subsequent work in the other architecture domains. Review and validate the business case and value proposition detailed for the Target Business Architecture. Refine the proposed Business Architecture only if necessary. ! 121  
. Copyright 2012 COMMUNICATE! Create Architecture Definition! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Create Architecture Definition Document:! •  •  Document rationale for building block decisions in the Architecture Definition Document! Prepare the business sections of the Architecture Definition Document, comprising some or all of: ! 1.  A business footprint (a high-level description of the people and locations involved with key business functions),! 2.  A detailed description of business functions and their information needs,! 3.  A management footprint (showing span of control and accountability),! 4.  Standards, rules, and guidelines showing working practices, legislation, financial measures, etc.! 5.  A skills matrix and set of job descriptions! ! Use reports and/or graphics generated by modeling tools to demonstrate key views of the architecture. Route the document for review by relevant stakeholders, and incorporate feedback. ! 123  
. Copyright 2012 COMMUNICATE! Outputs! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Outputs:! •  Draft Architecture Definition Document, including:! 1.  Baseline Business Architecture, Version 1.0 (detailed), if appropriate! 2.  Target Business Architecture, Version 1.0 (detailed), including:! •  Organization structure: identifying business locations and relating them to organizational units! •  Business goals and objectives: for the enterprise and each organizational unit ! 125  
. Copyright 2012 COMMUNICATE! Build the Business Case! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Making the Business Case:! •  Business roles, including development and modification of skills requirements, ! •  Business data model, ! •  Correlation of organization and functions: relate business functions to organizational units in the form of a matrix report! 3.! Views corresponding to the selected viewpoints addressing key stakeholder concerns ! 127  
. Copyright 2012 COMMUNICATE! Deliver the Business Architecture! •  We deliver the Business Architecture ()! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! - Architecture Vision ()! - Business Scenario ()! - Architecture Principles ()! - Business Principles ()! - Data Principles ()! - Application Principles ()! - Technology Principles ()! - Define (), - Request (), - Assess (), - Roadmap ()! - IT contributes to business objectives ()! - and provides competitive leverage ()! - To leverage business strategy with IT ()! 129  
. Copyright 2012 COMMUNICATE! Architecture Vision! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Vision:! ! The Architecture Vision is created early on in the project lifecycle and provides a high-level, aspirational view of the end architecture product. The purpose of the vision is to agree at the outset what the desired outcome should be for the architecture, so that architects can then focus on the critical areas to validate feasibility. Providing an Architecture Vision also supports stakeholder communication by providing an executive summary version of the full Architecture Definition. ! Architecture Vision! 131  
. Copyright 2012 COMMUNICATE! Architecture Vision! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Vision:! •  •  •  Actors and their Roles and Responsibilities! 1.  Human Actors and Roles! 2.  Computer Actors and Roles! 3.  Requirements! 4.  Resulting Architecture Model! Resulting Architecture Model! 1.  Constraints! 2.  IT Principles! 3.  Architecture Supporting the Process! 4.  Requirements Mapped to Architecture! End Vision Statement ! Architecture Vision! 133  
. Copyright 2012 COMMUNICATE! Business Scenario! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Business Scenario:! •  •  Preface! 1.  Executive Summary! 2.  Document Roadmap! Business Scenario! 1.  Business Scenario Overview! •  Background of Scenario! •  Purpose of Scenario! •  Definitions/Descriptions of Terms Used! Business Scenario! 135  
. Copyright 2012 COMMUNICATE! Business Scenario! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Business Scenario:! •  •  •  •  •  Requirements ! Business Scenario Analysis! 1.  Problem Summary! •  Issues! •  Objectives! Summary! Business Scenarios! 1.  Additional Information! 2.  Test Heading! Business Scenario Workshop Notes! Business Scenario! 137  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Architecture Principles:! Statement ! ! The Statement should succinctly and unambiguously communicate the fundamental rule. For the most part, the principles statements for managing information are similar from one organization to the next. It is vital that the principles statement be unambiguous. ! Architecture Principles! 139  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Business Principles:! Statement! ! ! The principles of information management apply to all organizations ! within the enterprise. ! Business Principles! 141  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Business Principles:! Implications!   Without this principle, exclusions, favoritism, and inconsistency would rapidly undermine the management of information. Information management initiatives will not begin until they are examined for compliance with the principles. A conflict with a principle will be resolved by changing the framework of the initiative. ! Business Principles! 143  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Application Principles:! •  •  •  Statement ! Rationale! Implications! Application Principles! 145  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Definition:! Define!   The Architecture Definition Document is the deliverable container for the core architectural artifacts created during a project. The Architecture Definition Document spans all architecture domains (business, data, application, and technology) and also examines all relevant states of the architecture (baseline, interim state(s), and target). The Architecture Definition Document is a companion to the Architecture Requirements Specification, with a complementary objective: The Architecture Definition Document provides a qualitative view of the solution and aims to communicate the intent of the architects. The Architecture Requirements Specification provides a quantitative view of the solution, stating measurable criteria that must be met during the implementation of the architecture. It is suggested that this document reference the various deliverables in the container. For instance, the Architecture Principles will be documented in an Architecture Principles document and that document referenced here. ! Define! 147  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Definition:! Define! •  •  •  •  Mapping to Architecture Repository! 1.  Mapping to Architecture Landscape! 2.  Mapping to Reference Models! 3.  Mapping to Standards! 4.  Re-Use Assessment! Target Architecture! 1.  Business Architecture Models! 2.  Data Architecture Models! 3.  Application Architecture Models! 4.  Technology Architecture Models! Gap Analysis! Impact Assessment! Define! 149  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Request! Request for Architecture Work:! •  •  •  •  •  •  •  Organization Sponsors! Organization Mission Statement! Business Goals (and Changes)! Strategic Plans of the Business! Time Limits! Changes in the Business Environment! Organizational Constraints! Request! 151  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Requirements Impact Assessment:! Assess!   New information is collected relating to an architecture. As this information is gathered, new facts may come to light that invalidate existing aspects of the architecture. A Requirements Impact Assessment assesses the current architecture requirements and specification to identify changes that should be made and the implications of those changes.! Assess! 153  
. Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Roadmap! Statement of Architecture Work:!   The Statement of Architecture Work defines the scope and approach that will be used to complete an architecture project. The Statement of Architecture Work is typically the document against which successful execution of the architecture project will be measured and may form the basis for a contractual agreement between the supplier and consumer of architecture services. In general, all the information in this document should be at a high level.! Roadmap! 155  
. Copyright 2012 COMMUNICATE! Business Vision, Architecture! ! !! •  “Canvas” the Business Vision, Architecture () ! ! - The Business (IT) Strategy link to operations ()! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! - Business (IT) Tactics ()! - Business (IT) Context ()! - Captured in a Strategy Map ()! - & Canvas, articulated in a ()! - Collaboration Theme Scorecard ()! - Conceived in to a solid story ()! - Deliver IT Services to Business needs ()! - IT contributes to business objectives ()! - and provides competitive advantage ()! - Deliver effective business strategy execution ()! 157  
. Copyright 2012 COMMUNICATE! Link Strategy and Operations! 1.  2.  3.  4.  Develop the Strategy! Translate the Strategy! Plan Operations! Monitor and Learn! 5.  Test and Adapt the Strategy! Execute Procedures and Initiatives! ! ! !! !! ! ! ! ! The Business (IT) Strategy link to operations! 159  
. Copyright 2012 COMMUNICATE! Define Market Position! 1.  2.  3.  4.  New entrants! Suppliers! Substitute products or Services! Buyers! 5.  Existing Competitors! ! ! !! !! ! ! ! ! Business (IT) Context! 161  
. Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value for all parties.! ! ! ! The strategy canvas allow the teams to articulate and formulate objectives on a project / program basis for improved execution with an extended GAP, risk and added value analysis captured in a DARCI (Decision taker, Accountable, Responsible, Consulted & Informed).! & Canvas, articulated in a! 163  
. Copyright 2012 COMMUNICATE! ! ! The Collaboration Theme Scorecard: Sets process objectives, Identifies : levers for joint actions and wins, metrics and initiatives on a short, middle & long term basis.! ! ! Collaboration Theme Scorecard:! Objectives: ! ! !! ! !! ! !! ! - Set process objectives,- Identify levers ! for joint actions and wins,- Identify metrics, Identify initiatives on a short, middle long term basis.! Levers:! !! !! !! ! ! ! ! - Joint: Steering committee, development committee, project teams, cross functional teams, process improvement teams, functional improvement teams.! ! ! ! ! ! ! !! !! Collaboration Theme Scorecard! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 165  
. Copyright 2012 COMMUNICATE! The IT service proposition is aligned to the business strategy as:! •  ! •  •  •  •  Stakeholder expectations are understood and IT propose a ! ! service portfolio that correspond to Demand and Cost drivers ! Business Contribution, Cost, Consumption & Chargeback is identified! Focus is on perfect order business transactions! Services are effective (demand and cost drivers identified)! Services are competitive (Benchmark Industry Market Forces)! •  New technological solutions that could change how current business is performed are explored, proposed and implemented.! ! ! IT contributes to business objectives! 167  
Service strategy ! Delivery capability! Architecture! Security! Strategy Execution! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Business (IT) Value Proposition! . Copyright 2012 COMMUNICATE! (IT) Business Model! ! Develop vision and strategy
 ! Develop and manage products and services
 ! Market and sell products and services
 ! Deliver products and services
 ! Manage customer services
 ! Develop and manage Human Capital
 ! Manage information technology
 ! Manage financial resources
 ! Acquire, construct and manage property
 ! ! Manage environmental health and safety ! ! Manage external relationships
 ! Manage knowledge, improvement and change
 ! Time to Market (Governance: Performance & Conformity)! Business (IT) Strategy Road Map (How)! Deliver effective business strategy execution! 169  
. Copyright 2012 COMMUNICATE! CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives and the IT function in general. ! Target Audience! 171  
. Copyright 2012 COMMUNICATE! BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren ! Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 ! Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630! Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 ! Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 ! Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 ! In French: ! Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 ! Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : ! http://www.brighttalk.com/community/it-service-management/webcast/534/21388! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http:// deliverbusinessvaluewithit.wordpress.com /! I also share perspective @ some of the top French Business Schools, notably EDHEC! International Thought Leadership! 173  

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CANVASSED in a Business (IT) Strategy Canvas: Business Vision, Architecture

  • 1. . Copyright 2012 COMMUNICATE! Build an effective IT Delivery Model to meet Business Needs! - To deliver to set business strategy and objectives ! !! By Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE 1  
  • 2. . Copyright 2012 COMMUNICATE! CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives and the IT function in general. ! Target Audience! 3  
  • 3. . Copyright 2012 COMMUNICATE! BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren ! Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 ! Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630! Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 ! Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 ! Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 ! In French: ! Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 ! Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : ! http://www.brighttalk.com/community/it-service-management/webcast/534/21388! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http:// deliverbusinessvaluewithit.wordpress.com /! I also share perspective @ some of the top French Business Schools, notably EDHEC! International Thought Leadership! 5  
  • 4. . Copyright 2012 COMMUNICATE! Canvassed! - Business Vision, Architecture! !! By Martin Palmgren, IT Strategy and Transformation Executive @ .COMMUNICATE 7  
  • 5. . Copyright 2012 COMMUNICATE! Business (IT) Value Proposition! (IT) Business Model! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Business Strategy:! Business Architecture :! IT Strategy:! IT Architecture:! -  -  -  -  -  -  -  -  Vision! Articulate! Deliver! Strategy Execution! IT Vision! Baseline! Roadmap! Design! Build ! Time to Market (Governance: Performance & Conformity)! Deliver effective (IT) Performance Management! 9  
  • 6. . Copyright 2012 COMMUNICATE! Business Vision! •  •  •  •  •  We Canvas the Business (IT) strategy ()! Perform Effective IT Management ()! Understand Stakeholder expectations ()! To ensure stakeholder “Buy In” ()! We “Canvas” the Business (IT) Vision ()! 11  
  • 7. . Copyright 2012 COMMUNICATE! IT support the Business Model and we address Business:! •  Priorities! •  Objectives! •  Goals! ! With ROI and Impact demonstrated in a business case! As the Business (IT) strategy is Canvassed! ! ! 13  
  • 8. . Copyright 2012 COMMUNICATE! Business (IT) Value Proposition! (IT) Business Model! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Strategic intent ! Strategic Lever! Business Strategy:! Business Architecture :! IT Strategy:! IT Architecture:! -  -  -  -  -  Vision! Articulate! Deliver! Strategy Execution! IT Business model! -  -  -  IT Vision! Baseline! Roadmap! IT Value Proposition! Design! Build ! Time to Market (Governance: Performance & Conformity)! Effective IT Performance Management! Execute Business Strategy! 15  
  • 9. Strategic! Tactic! Operational! . Copyright 2012 COMMUNICATE! Strategy! Process! We deliver competitive services, execute strategy effectively and measure the added value to optimise investment in IT!! Leverage competitive advantage! Strategic! Tactic! Institutionalise! Consolidate! Operational! Stabilise! Time to Market (Performance & Conformity)! Application support ! Vendor Driven! Execute Business Strategy! Business Architecture! To Leverage competitive advantage! 17  
  • 10. . Copyright 2012 COMMUNICATE! Understand Demand and Cost drivers! 1. Service definition! •  Clearly defined portfolio of products and services and aligned to business goals and priorities! •  Costs are understood for each service with a TDABC analysis for resource capacity, Asset consumption by service is established! •  ! Best practice Asset Management practices are in place and IT leverages frameworks.! ! ! ! ! ! ! Stabilise ! 19  
  • 11. . Copyright 2012 COMMUNICATE! Shared Infrastructure! 3. Business proposition! Options are presented to management: In-house, shared services, outsourcing, cloudsourcing, etc! •  •  •  •  •  Key IT projects deliver value as planned! Strategic IT opportunities are identified but not articulated! The Board will be presented with risk assessment decisions on critical initiatives! Position IT services in relation to the competition and industry! IT analyse competitor's IT initiatives! Institutionalise ! 21  
  • 12. . Copyright 2012 COMMUNICATE! Business Vision! •  Perform Effective IT Management ()! ! ! !   ! ! ! ! ! ! ! ! !! !! !!     !! !! !! !! !! !! !! !! ! ! !   ! ! ! ! ! ! ! ! - Get the Demand Drivers Right ()! - Perform Business Strategy Execution ()! - Supported by Business Architecture ()! - Confirm Business Vision ()! - Articulate the Business Value Proposition ()! - Deliver the Business Architecture ()! - Translate the Business Vision to an IT Vision ()! - Set the IT Value Proposition Baseline ()! - Construct the IT Business Model ()! - Design the IT Value Proposition ()! - Build the IT Value Proposition ()! - To Perform Effective IT Governance ()! 23  
  • 13. . Copyright 2012 COMMUNICATE! ! To run the IT business effectively and leverage the execution ! of the business Strategy and objectives with IT we need to make educated investments (on paper compliance and KPI indications is nice to have but not enough!): 100% of the value impact is in the execution of the process of the supported services over the entire service life cycle (order to bill).! Conception, Realisation 20%! Run 80%! Get the demand drivers right! 25  
  • 14. . Copyright 2012 COMMUNICATE! Business (IT) Value Proposition! (IT) Business Model! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Strategic intent ! Strategic Lever! Business Strategy:! Business Architecture :! IT Strategy:! IT Architecture:! -  -  -  -  -  Vision! Articulate! Deliver! Strategy Execution! IT Business model! -  -  -  IT Vision! Baseline! Roadmap! IT Value Proposition! Design! Build ! Time to Market (Governance: Performance & Conformity)! Effective IT Performance Management! Supported by Business Architecture! 27  
  • 15. . Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate:! -  -  -  Articulate the Business Value Proposition! Translate (Articulate) Business Vision to Business Architecture Vision & Business Architecture! Vision of Business Architecture “to be”: state “where we need to go”, “where we are now” & “how we need to proceed”! Architecture principles! Business principles! Technology principles! -  Articulate! -  -  Build business case & roll out (with Roadmap)! -  Articulate the Business Value Proposition! 29  
  • 16. . Copyright 2012 COMMUNICATE! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! IT Vision! IT Vision:! -  -  -  -  -  Translate the Business vision to an IT vision! Vision of IT “to be state”: “where we need to go”, “where we are now” & “how we need to proceed”! Regulatory requirements! Technology guiding principles! IT Governance guiding principles (process & organise decisions)! Translate the Business Vision to an IT Vision! 31  
  • 17. . Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Roadmap! Roadmap:! -  -  -  -  -  -  Construct the IT Business Model and Value Proposition! Define IT “to be state”: “where we need to go”, “where we are now” & “how we need to proceed” with established KPIʼs! Report gap analysis findings! Design IT plan through a project portfolio! Cost out the plan (budget)! Develop consensus, business case for change! Construct the IT Business Model! 33  
  • 18. . Copyright 2012 COMMUNICATE! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Build! Build:! -  -  -  -  -  -  Build the IT Value Proposition! Implement the project portfolio! Engage Organizational change! Control IT (measure outcome to set objectives)! Capture KPIʼs & Measure performance! Enforce governance! Build the IT Value Proposition! 35  
  • 19. . Copyright 2012 COMMUNICATE! How fast can we get our products and services to market & how can IT support us in this activity from a Cycle Time and Cost Effectiveness perspective. ! Business Bottom Line! 37  
  • 20. Manage product and service portfolio
 Develop products and services
 Develop and manage products and services
 Define the business concept and long-term vision
 Develop business strategy
 Manage strategic initiatives
 Develop vision and strategy
 Deliver products and services
 ! ! ! ! ! Acquire, construct and manage property
 ! Create and manage organizational performance strategy
 Benchmark performance
 Develop enterprise-wide knowledge management (KM) capability
 Manage change! Manage knowledge, improvement and change
 Build investor relationships
 Manage government and industry relationships
 Manage relations with board of directors
 Manage legal and ethical issues
 Manage public relations program
 Manage external relationships
 Determine environmental health and safety impacts
 Develop and execute environmental health and safety program
 Train and educate employees
 Monitor and manage environmental health and safety management program
 Ensure compliance with regulations
 Manage remediation efforts
 Manage environmental health and safety ! Design and construct/acquire nonproductive assets
 Maintain nonproductive assets
 Obtain, install, and plan maintenance for productive assets
 Dispose of productive and nonproductive assets
 Manage physical risk
 Perform planning and management accounting
 Perform revenue accounting
 Perform general accounting and reporting
 Manage fixed-asset project accounting
 Process payroll
 Process accounts payable and expense reimbursements Manage treasury operations
 Manage internal controls Manage taxes
 Manage international funds/consolidation
 Manage financial resources
 Manage the Business of Information Technology
 Develop and Manage IT Customer Relationships
 Manage Business Resiliency and Risk
 Manage Enterprise Information
 Develop and Manage Information Technology Solutions
 Deploy Information Technology Solutions
 Deliver and Support Information Technology Services
 Manage IT Knowledge
 Manage information technology
 Develop and manage human resources (HR) planning policies, and strategies
 Recruit, source, and select employees
 Develop and counsel employees
 Reward and retain employees
 Redeploy and retire employees
 Manage employee information
 ! ! Develop and manage Human Capital
 ! Develop customer care/customer service strategy
 Plan and manage customer service operations
 Measure and evaluate customer service operations
 Manage customer services
 ! Plan for and acquire necessary resources (Supply Chain Planning)
 Procure materials and services
 Produce/Manufacture/Deliver product
 Deliver service to customer
 Manage logistics and warehousing
 Understand markets, customers, and capabilities
 Develop marketing strategy
 Develop sales strategy
 Develop and manage marketing plans
 Develop and manage sales plans
 Market and sell products and services
 ! !   . Copyright 2012 COMMUNICATE! Business Drivers & Processes! Cost Effectiveness! Cycle Time! A Confirmed Business (IT) Value Proposition! 39  
  • 21. Strategic! Tactic! Operational! . Copyright 2012 COMMUNICATE! Information Technology! IT Vision! Business Vision! IT Principles! Business Principles! IT Strategy! IT Roadmaps! Business Strategy! Strategic! Business Roadmaps! IT Objectives! Tactic! Business Objectives! IT Goals! Deliver business value and quantify result! Business Goals! Operational! Time to Market (Performance & Conformity)! Operating Processes! Business (IT) Vision and! 41  
  • 22. . Copyright 2012 COMMUNICATE! Link Strategy and Operations! 1.  2.  3.  4.  Develop the Strategy! Translate the Strategy! Plan Operations! Monitor and Learn! 5.  Test and Adapt the Strategy! Execute Procedures and Initiatives! ! ! !! !! ! ! ! ! Business (IT) Strategy, link to operations! 43  
  • 23. . Copyright 2012 COMMUNICATE! Define Market Position! 1.  2.  3.  4.  New entrants! Suppliers! Substitute products or Services! Buyers! 5.  Existing Competitors! ! ! !! !! ! ! ! ! Business (IT) Context! 45  
  • 24. . Copyright 2012 COMMUNICATE! How does executive management view the IT department?! Baseline: ! ! To obtain a reasonable business contribution from IT investments! Objectives: ! - Balance value added to investment,! ! !! ! - Business value of IT projects,! ! !! ! - Provision of new business capabilities,! ! !! ! - Do we effectively use frameworks such as ISO 38 500, VALIT?! Business contribution to investment! 47  
  • 25. . Copyright 2012 COMMUNICATE! How do users see the IT department?! Baseline: ! ! To be the preferred supplier of information systems! Objectives: ! - Preferred supplier of applications and operations as proposer of best in class solutions,! ! !! ! - Partnership with users (Stakeholder Strategy Map, Collaboration Theme Scorecard),! ! ! !! !! ! ! ! - User satisfaction.! ! !! !! !! ! ! ! - Do we effectively use methodologies such as the Stakeholder Strategy Map and the Collaboration Theme Scorecard in order to capture client needs (process) objectives and metrics.! Best in class solutions! 49  
  • 26. . Copyright 2012 COMMUNICATE! In order to succeed IT need a clearly articulated business strategy:! Objectives: ! - Evolve from a service provider to strategic partner,! ! !! ! - Provide mutualised solutions focused on to develop best in class capabilities,! ! !! ! - Support the achievement of company strategies and objectives,! ! !! ! - Become the “supplier of choice” of information services,! ! !! !! ! ! - Establish a forward looking enterprise architecture strategy that enables the use of technology as a competitive edge in the financial market place,! ! !! !! ! ! - Become the “employer of choice” for career oriented IT professionals in the markets in which the group operates.! Business (IT) Strategy! 51  
  • 27. . Copyright 2012 COMMUNICATE! Business Vision! •  To ensure stakeholder “Buy In” ()! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! - Support Business Objectives ()! - Understand Stakeholder Expectations ()! - IT provides competitive leverage ()! - IT delivers to demand and cost drivers ()! - Strategy is reflected in the IT Value Baseline ()! - Business Continuity is Ensured ()! - Set clear accountability & responsibility ()! - Deliver to Stakeholder Expectations ()! - With a Clear Baseline ()! - Business (IT) Value Governance ()! ! 53  
  • 28. . Copyright 2012 COMMUNICATE! To ensure stakeholder “Buy In”:! •  You have to see IT from a customer perspective!!! •  And address stakeholders priorities:! –  Realise return on investment! –  Ensure that proposed services are competitive in the industry! –  IT Costs are transparent! –  IT competencies are at least equal to the competition! –  IT pricing is fair and clearly aligned with consumption! –  IT services are clearly defined and benchmarked! Support Business Objectives! 55  
  • 29. . Copyright 2012 COMMUNICATE! Priorities from an Executive Management Perspective:! ! !! - IT supports the achievement of strategic business objectives! ! !! - IT Delivers value to expenditure! ! !! - IT costs are managed effectively! ! !! - IT risks are identified and managed! ! !! - Targeted inter company IT synergies deliver to schedule! ! ! !! !! - We have a clear vision towards which we expect the IT department to ! deliver: ISO 38 500, VALIT! IT provides competitive leverage! 57  
  • 30. . Copyright 2012 COMMUNICATE! Priorities from an IT Management Perspective:! !! !! - We understand stakeholder expectations and propose a service portfolio that correspond to both Demand and Cost drivers with a focus on perfect order business transactions ! ! !! - We develop professional competencies needed for successful service delivery! ! !! - We capture organisational knowledge to continuously improve performance! ! !! !! !! - IT and Stakeholder departments have clear objectives, processes and indicators with clear accountability and responsibility to deliver to set objectives: ISO 38 500, ITIL, VALIT, COBIT, TOGAF! ! !! Strategy is reflected in the IT Value Baseline ! 59  
  • 31. . Copyright 2012 COMMUNICATE! As we position IT as an added value activity we need to:! ! !! !! ! ! - Ensure that the IT and Stakeholder departments have clear objectives, processes ! and indicators with clear accountability and responsibility,! ! !! ! - Achieve best in class status as IT service provider and strategic partner,! ! !! ! - Maximise purchase power and operating effectiveness,! ! !! ! - Lever technology investments,! ! !! ! - Optimise technical Architecture and application support cost.! ! !! ! ! Set clear accountability & responsibility! 61  
  • 32. . Copyright 2012 COMMUNICATE! •  •  •  •  ! IT contribution to company goals and objectives! IT optimisation of business processes! IT service proposition: At what cost, Are these services competitive within the industry, What new services could make us more competitive ?! IT service consumption: Who pays for the services, How can services be improved ?! ! With a Clear Baseline! 63  
  • 33. . Copyright 2012 COMMUNICATE! •  •  •  •  •  •  The establishment of strategic direction and a target investment mix! The determination of the availability and sources of funds! Managing the availability of human resources! The evaluation and selection of programs to fund! Monitoring and reporting on investment portfolio performance! Optimisation of investment portfolio performance! Business (IT) Governance! 65  
  • 34. . Copyright 2012 COMMUNICATE! How to align and lever operating, management and support processes through the effective implementation of IT.! - Do we do the right things? - The strategic question ! - The investment: ! ! ! ! ! ! - Is in line with our vision,! - Is consistent with our business principles,! - Contributes to our strategic objectives,! - Provides optimal value, at affordable cost, at an acceptable level of risk.! - Do we reap the benefits? - The value question ! - We have:!! ! ! ! ! ! - A clear and shared understanding of the expected benefits,! - Clear accountability for realising the benefits,! - Relevant metrics,! - An effective benefits realisation process over the full economic life cycle of the investment.! Business (IT) Investment Management! 67  
  • 35. . Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value.! ! ! Stakeholder Strategy Roadmap:! Objectives: ! !! ! !! ! Which drives! ! !! ! !! ! That deliver! ! !! ! !! ! Executes! ! !! ! !! ! - Formalise stakeholder ! outcomes: To deliver value for all parties (partnership),! ! ! !! ! - Customer value: For effective and satisfied end users,! - Business processes: Speed, process innovation and growth,! - Employees and organisation: Collaboration that deliver strategy execution.! Captured in a Strategy Map! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 69  
  • 36. . Copyright 2012 COMMUNICATE! ! ! The Collaboration Theme Scorecard: Sets process objectives, Identifies : levers for joint actions and wins, metrics and initiatives on a short, middle & long term basis.! ! ! Collaboration Theme Scorecard:! Objectives: ! ! !! ! ! !! ! ! !! ! - Set process objectives,! - Identify levers for joint actions & wins,! - Identify metrics, ! - Identify initiatives on a short, ! ! ! - middle long term basis.! Levers:! !! !! !! ! ! ! ! - Joint: Steering committee, development committee, project teams, cross functional teams, process improvement teams, functional improvement teams.! ! ! ! ! ! ! !! !! !! Collaboration Theme Scorecard! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 71  
  • 37. . Copyright 2012 COMMUNICATE! Business Vision! •  “Canvas” the Business (IT) Vision ()! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! - As we “Canvas” the Vision ()! - The business (IT) strategy is directional ()! - Defined Market Position ()! - Competitive Positioning ()! - External environment ()! - Customer value proposition ()! - People and Organisation ()! - Overall structure ()! - Objectives and Plans ()! - Financial plans ()! 73  
  • 38. . Copyright 2012 COMMUNICATE! Business Vision! •  “Canvas” the Business (IT) Vision ()! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! ! ! - Meet stakeholder expectations ()! ! - Communication and buy-in ()! ! - The Business (IT) Strategy ()! ! - Business (IT) Strategy, link to operations ()! ! - Business (IT) Tactics! ! - Business (IT) Context! ! - Captured in a Strategy Map! ! - & Canvas, articulated in a! ! - Collaboration Theme Scorecard! ! - Conceived in to a solid story! 75  
  • 39. . Copyright 2012 COMMUNICATE! Industry structure! •  •  •  •  •  New entrants! Suppliers! Substitute products or Services! Buyers (customers)! Existing Competitors! ! ! ! ! Defined Market Position! 77  
  • 40. . Copyright 2012 COMMUNICATE! There is a understanding of:! •  •  •  •  Political,! Environmental,! Social,! Technological! ! ! ! ! External environment! 79  
  • 41. . Copyright 2012 COMMUNICATE! Appreciation of the implications for the strategy of:! •  •  •  •  •  •  •  Resources,! Skills and competencies,! Appropriate development / recruitment plans,! Shared direction,! Extent of buy-in to shared vision by key managers,! Barriers / commitment to change,! Structure of the organisation! ! ! Talent! 81  
  • 42. . Copyright 2012 COMMUNICATE! There is a understanding of the:! •  Extent to which long term plans are coherent and logical,! •  Extent to which short term plans are appropriately costed and timetabled,! •  Consistency with overall goals and objectives! ! ! ! ! Objectives and Plans! 83  
  • 43. . Copyright 2012 COMMUNICATE! There is a understanding of the:! •  Extent to which the strategy has been communicated,! •  Extent to which staff performance towards the business IT strategy is recognised! ! ! ! ! Communication and buy in! 85  
  • 44. . Copyright 2012 COMMUNICATE! Link Strategy and Operations! 1.  2.  3.  4.  Develop the Strategy! Translate the Strategy! Plan Operations! Monitor and Learn! 5.  Test and Adapt the Strategy! Execute Procedures and Initiatives! ! ! !! !! ! ! ! ! Business (IT) Strategy, link to operations! 87  
  • 45. . Copyright 2012 COMMUNICATE! Define Market Position! 1.  2.  3.  4.  New entrants! Suppliers! Substitute products or Services! Buyers! 5.  Existing Competitors! ! ! !! !! ! ! ! ! Business (IT) Context! 89  
  • 46. . Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value for all parties.! ! ! ! The strategy canvas allow the teams to articulate and formulate objectives on a project / program basis for improved execution with an extended GAP, risk and added value analysis captured in a DARCI (Decision taker, Accountable, Responsible, Consulted & Informed).! & Canvas, articulated in a! 91  
  • 47. . Copyright 2012 COMMUNICATE! In order to do so we need to:! Objectives: ! -! Levers: ! ! !! -! ! ! ! Conceived in to a solid story! 93  
  • 48. . Copyright 2012 COMMUNICATE! Articulate the Business Architecture! •  As we articulate the Business Vision ()! - We focus on the business bottom line! ! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! ! - Time to Market Focus with ()! - A Confirmed Business (IT) Value Proposition ()! - Strategic Priorities as we ()! - Get demand and cost drivers right ()! - Execute Business Strategy ()! - Supported by Business Architecture ()! - To Leverage competitive advantage ()! - To the Strategic Plan ()! - Stabilise ()! - Consolidate ()! - Institutionalise ()! - Lever competitive advantage ()! 95  
  • 49. . Copyright 2012 COMMUNICATE! How fast can we get our products and services to market & how can IT support us in this activity from a Cycle Time and Cost Effectiveness perspective. ! Business Bottom Line! 97  
  • 50. Deliver products and services
 ! ! ! ! ! Acquire, construct and manage property
 ! A Confirmed Business (IT) Value Proposition! 99   Create and manage organizational performance strategy
 Benchmark performance
 Develop enterprise-wide knowledge management (KM) capability
 Manage change! Manage knowledge, improvement and change
 Build investor relationships
 Manage government and industry relationships
 Manage relations with board of directors
 Manage legal and ethical issues
 Manage public relations program
 Manage external relationships
 Determine environmental health and safety impacts
 Develop and execute environmental health and safety program
 Train and educate employees
 Monitor and manage environmental health and safety management program
 Ensure compliance with regulations
 Manage remediation efforts
 Manage environmental health and safety ! Design and construct/acquire nonproductive assets
 Maintain nonproductive assets
 Obtain, install, and plan maintenance for productive assets
 Dispose of productive and nonproductive assets
 Manage physical risk
 Perform planning and management accounting
 Perform revenue accounting
 Perform general accounting and reporting
 Manage fixed-asset project accounting
 Process payroll
 Process accounts payable and expense reimbursements Manage treasury operations
 Manage internal controls Manage taxes
 Manage international funds/consolidation
 Manage financial resources
 Manage the Business of Information Technology
 Develop and Manage IT Customer Relationships
 Manage Business Resiliency and Risk
 Manage Enterprise Information
 Develop and Manage Information Technology Solutions
 Deploy Information Technology Solutions
 Deliver and Support Information Technology Services
 Manage IT Knowledge
 Manage information technology
 Develop and manage human resources (HR) planning policies, and strategies
 Recruit, source, and select employees
 Develop and counsel employees
 Reward and retain employees
 Redeploy and retire employees
 Manage employee information
 ! ! Develop and manage Human Capital
 ! Develop customer care/customer service strategy
 Plan and manage customer service operations
 Measure and evaluate customer service operations
 Manage customer services
 ! Plan for and acquire necessary resources (Supply Chain Planning)
 Procure materials and services
 Produce/Manufacture/Deliver product
 Deliver service to customer
 Manage logistics and warehousing
 Understand markets, customers, and capabilities
 Develop marketing strategy
 Develop sales strategy
 Develop and manage marketing plans
 Develop and manage sales plans
 Market and sell products and services
 Manage product and service portfolio
 Develop products and services
 Develop and manage products and services
 Define the business concept and long-term vision
 Develop business strategy
 Manage strategic initiatives
 Develop vision and strategy
 ! !   . Copyright 2012 COMMUNICATE! Business Drivers & Processes! Cost Effectiveness! Cycle Time!
  • 51. . Copyright 2012 COMMUNICATE! ! To run the IT business effectively and leverage the execution ! of the business Strategy and objectives with IT we need to make educated investments (on paper compliance and KPI indications is nice to have but not enough!): 100% of the value impact is in the execution of the process of the supported services over the entire service life cycle (order to bill).! Conception, Realisation 20%! Run 80%! Get demand and cost drivers right! 101  
  • 52. Strategic! Tactic! Operational! . Copyright 2012 COMMUNICATE! Strategy! ! Business & IT Vision Articulated! Process! Strategic! ! Business Architecture & IT Architecture Aligned and delivered to Strategic Intent! Tactic! Operational! Time to Market (Performance & Conformity)! Application support ! Vendor Driven! Execute Business Strategy! Business Architecture! Supported by Business Architecture! 103  
  • 53. . Copyright 2012 COMMUNICATE! ! Institutionalise: Shared Infrastructure! ! ! ! Options are presented to management: In-house, shared services, outsourcing! ! Leverage competitive advantage: Provide competitive advantage with a focus on business value! ! ! ! 4. Governance in place! ! ! Best practices processes continuously improved! Governance blueprint designed and operating! ! IT investments reflect:! 3. Business proposition! ! ! ! ! Key IT projects deliver value as planned! Strategic IT opportunities are identified but not articulated! The Board will be presented with risk assessment decisions on critical initiatives! Position IT services in relation to the competition and industry! ! IT analyse competitor's IT initiatives! 1. The strategic intent of the Board! 2. Business goal and priorities! 3. A clear IT portfolio of projects and services! 4. A Service Portfolio alignment to business goals and priorities! ! ! IT investments deliver a good return on investment! The IT Steering Committee will initiate a strategic IT competitive analysis! ! Stabilise: Understand demand and cost drivers! ! Consolidate: Provide Better Information! ! 1. Service definition! ! ! ! Clearly defined portfolio of products and services: - Portfolio aligned to business goals and priorities! ! Customer base and demand is clearly defined: ! ! Costs are understood for each service: - TDABC analysis for resource capacity, Asset consumption by service is established! ! ! ! Prices / SLAʼs for services are established: ! ! ! ! ! ! ! ! ! Best practice Asset Management practices are in place. - IT leverages best practice such as VALIT, COBIT, RISKIT, ITIL,CMMI, TOGAF.! ! ! ! ! ! ! 2. Market definition! - Who is consuming what services! - Internal rates compared to outside marketplace for IT (Make or Buy)! To the Strategic Plan! 105  
  • 54. . Copyright 2012 COMMUNICATE! Provide Better Information! 2. Market definition! •  Customer base and demand is clearly defined: - Who is consuming what services! •  Prices / SLAʼs for services are established and Internal rates compared to outside marketplace for IT (Make or Buy)! ! ! Consolidate ! 107  
  • 55. . Copyright 2012 COMMUNICATE! Provide competitive advantage with a focus on business value! ! ! 4. Governance in place! Best practices processes continuously improved! Governance blueprint designed and operating! IT investments reflect: The strategic intent of the Board, Business goal and priorities, A clear IT portfolio of projects and services, A Service Portfolio alignment to business goals and priorities! IT investments deliver a good return on investment! The IT Steering Committee will initiate a strategic IT competitive analysis! Lever competitive advantage ! 109  
  • 56. . Copyright 2012 COMMUNICATE! Vision! Articulate! IT Vision! Deliver! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate:! -  -  -  Articulate the Business Value Proposition! Translate (Articulate) Business Vision to Business Architecture Vision & Business Architecture! Vision of Business Architecture “to be”: state “where we need to go”, “where we are now” & “how we need to proceed”! Architecture principles! Business principles! Technology principles! -  Articulate! -  -  Build business case & roll out (with Roadmap)! -  Articulate the Business Value Proposition! 111  
  • 57. . Copyright 2012 COMMUNICATE! Business Architecture! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Business Architecture:! ! The Statement of Architecture Work is identified as one of the inputs to this phase. The steps to be executed in this phase include:! •  •  Selection of reference models, viewpoints, and tools! Development of Baseline and Target Business Architecture followed by gap analysis! Define the roadmap components! Resolve impacts across the Architecture Landscape! Conduct formal stakeholder review! Finalize the Business Architecture! Create Architecture Definition Document   There is no reference to the business case, value proposition, or the key performance indicators during the definition of the Target Business Architecture or its review and finalization. ! 113   •  •  •  •  •  !
  • 58. . Copyright 2012 COMMUNICATE! Develop Baseline Business Architecture ! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Develop Target Business Architecture Description:! ! Develop a Target Description for the Business Architecture, to the extent necessary to support the Architecture Vision. The scope and level of detail to be defined will depend on the relevance of the business elements to attaining the Target Architecture Vision, and on whether architectural descriptions exist. To the extent possible, identify the relevant Business Architecture building blocks, drawing on the Architecture Repository. Where new architecture models need to be developed to satisfy stakeholder concerns, use the models identified within Step 1 as a guideline for creating new architecture content to describe the Target Architecture. ! 115  
  • 59. . Copyright 2012 COMMUNICATE! Perform GAP Analysis! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Perform GAP Analysis:! ! First, verify the architecture models for internal consistency and accuracy:! •  Perform trade-off analysis to resolve conflicts (if any) among the different views,! •  Validate that the models support the principles, objectives, and constraints,! •  Note changes to the viewpoint represented in the selected models from the Architecture Repository, and document.! 117  
  • 60. . Copyright 2012 COMMUNICATE! Define Roadmap Components! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Define Roadmap Components:!   Following creation of a Baseline Architecture, Target Architecture, and gap analysis results, a Business Roadmap is required to prioritize activities over the coming phases based upon the extent to which the value propositions outlined in the Architecture Statement of Work are realized. This initial Business Architecture Roadmap will be used as raw material to support more detailed definition of a consolidated, crossdiscipline roadmap within Phase E: Opportunities & Solutions. ! 119  
  • 61. . Copyright 2012 COMMUNICATE! Conduct Formal Stakeholder Review! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Conduct Formal Stakeholder Review:!   Check the original motivation for the architecture project and the Statement of Architecture Work against the proposed Business Architecture, asking if it is fit for the purpose of supporting subsequent work in the other architecture domains. Review and validate the business case and value proposition detailed for the Target Business Architecture. Refine the proposed Business Architecture only if necessary. ! 121  
  • 62. . Copyright 2012 COMMUNICATE! Create Architecture Definition! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Create Architecture Definition Document:! •  •  Document rationale for building block decisions in the Architecture Definition Document! Prepare the business sections of the Architecture Definition Document, comprising some or all of: ! 1.  A business footprint (a high-level description of the people and locations involved with key business functions),! 2.  A detailed description of business functions and their information needs,! 3.  A management footprint (showing span of control and accountability),! 4.  Standards, rules, and guidelines showing working practices, legislation, financial measures, etc.! 5.  A skills matrix and set of job descriptions! ! Use reports and/or graphics generated by modeling tools to demonstrate key views of the architecture. Route the document for review by relevant stakeholders, and incorporate feedback. ! 123  
  • 63. . Copyright 2012 COMMUNICATE! Outputs! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Outputs:! •  Draft Architecture Definition Document, including:! 1.  Baseline Business Architecture, Version 1.0 (detailed), if appropriate! 2.  Target Business Architecture, Version 1.0 (detailed), including:! •  Organization structure: identifying business locations and relating them to organizational units! •  Business goals and objectives: for the enterprise and each organizational unit ! 125  
  • 64. . Copyright 2012 COMMUNICATE! Build the Business Case! Vision! Articulate! Deliver! IT Vision! Baseline! Roadmap! Design! Build! Transform the Business Model! Articulate! Making the Business Case:! •  Business roles, including development and modification of skills requirements, ! •  Business data model, ! •  Correlation of organization and functions: relate business functions to organizational units in the form of a matrix report! 3.! Views corresponding to the selected viewpoints addressing key stakeholder concerns ! 127  
  • 65. . Copyright 2012 COMMUNICATE! Deliver the Business Architecture! •  We deliver the Business Architecture ()! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! ! ! - Architecture Vision ()! - Business Scenario ()! - Architecture Principles ()! - Business Principles ()! - Data Principles ()! - Application Principles ()! - Technology Principles ()! - Define (), - Request (), - Assess (), - Roadmap ()! - IT contributes to business objectives ()! - and provides competitive leverage ()! - To leverage business strategy with IT ()! 129  
  • 66. . Copyright 2012 COMMUNICATE! Architecture Vision! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Vision:! ! The Architecture Vision is created early on in the project lifecycle and provides a high-level, aspirational view of the end architecture product. The purpose of the vision is to agree at the outset what the desired outcome should be for the architecture, so that architects can then focus on the critical areas to validate feasibility. Providing an Architecture Vision also supports stakeholder communication by providing an executive summary version of the full Architecture Definition. ! Architecture Vision! 131  
  • 67. . Copyright 2012 COMMUNICATE! Architecture Vision! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Vision:! •  •  •  Actors and their Roles and Responsibilities! 1.  Human Actors and Roles! 2.  Computer Actors and Roles! 3.  Requirements! 4.  Resulting Architecture Model! Resulting Architecture Model! 1.  Constraints! 2.  IT Principles! 3.  Architecture Supporting the Process! 4.  Requirements Mapped to Architecture! End Vision Statement ! Architecture Vision! 133  
  • 68. . Copyright 2012 COMMUNICATE! Business Scenario! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Business Scenario:! •  •  Preface! 1.  Executive Summary! 2.  Document Roadmap! Business Scenario! 1.  Business Scenario Overview! •  Background of Scenario! •  Purpose of Scenario! •  Definitions/Descriptions of Terms Used! Business Scenario! 135  
  • 69. . Copyright 2012 COMMUNICATE! Business Scenario! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Business Scenario:! •  •  •  •  •  Requirements ! Business Scenario Analysis! 1.  Problem Summary! •  Issues! •  Objectives! Summary! Business Scenarios! 1.  Additional Information! 2.  Test Heading! Business Scenario Workshop Notes! Business Scenario! 137  
  • 70. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Architecture Principles:! Statement ! ! The Statement should succinctly and unambiguously communicate the fundamental rule. For the most part, the principles statements for managing information are similar from one organization to the next. It is vital that the principles statement be unambiguous. ! Architecture Principles! 139  
  • 71. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Business Principles:! Statement! ! ! The principles of information management apply to all organizations ! within the enterprise. ! Business Principles! 141  
  • 72. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Business Principles:! Implications!   Without this principle, exclusions, favoritism, and inconsistency would rapidly undermine the management of information. Information management initiatives will not begin until they are examined for compliance with the principles. A conflict with a principle will be resolved by changing the framework of the initiative. ! Business Principles! 143  
  • 73. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Principles! Application Principles:! •  •  •  Statement ! Rationale! Implications! Application Principles! 145  
  • 74. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Definition:! Define!   The Architecture Definition Document is the deliverable container for the core architectural artifacts created during a project. The Architecture Definition Document spans all architecture domains (business, data, application, and technology) and also examines all relevant states of the architecture (baseline, interim state(s), and target). The Architecture Definition Document is a companion to the Architecture Requirements Specification, with a complementary objective: The Architecture Definition Document provides a qualitative view of the solution and aims to communicate the intent of the architects. The Architecture Requirements Specification provides a quantitative view of the solution, stating measurable criteria that must be met during the implementation of the architecture. It is suggested that this document reference the various deliverables in the container. For instance, the Architecture Principles will be documented in an Architecture Principles document and that document referenced here. ! Define! 147  
  • 75. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Architecture Definition:! Define! •  •  •  •  Mapping to Architecture Repository! 1.  Mapping to Architecture Landscape! 2.  Mapping to Reference Models! 3.  Mapping to Standards! 4.  Re-Use Assessment! Target Architecture! 1.  Business Architecture Models! 2.  Data Architecture Models! 3.  Application Architecture Models! 4.  Technology Architecture Models! Gap Analysis! Impact Assessment! Define! 149  
  • 76. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Request! Request for Architecture Work:! •  •  •  •  •  •  •  Organization Sponsors! Organization Mission Statement! Business Goals (and Changes)! Strategic Plans of the Business! Time Limits! Changes in the Business Environment! Organizational Constraints! Request! 151  
  • 77. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Requirements Impact Assessment:! Assess!   New information is collected relating to an architecture. As this information is gathered, new facts may come to light that invalidate existing aspects of the architecture. A Requirements Impact Assessment assesses the current architecture requirements and specification to identify changes that should be made and the implications of those changes.! Assess! 153  
  • 78. . Copyright 2012 COMMUNICATE! Vision! Business Scenario! Principles! Define! Request! Assess! Roadmap! Roadmap! Statement of Architecture Work:!   The Statement of Architecture Work defines the scope and approach that will be used to complete an architecture project. The Statement of Architecture Work is typically the document against which successful execution of the architecture project will be measured and may form the basis for a contractual agreement between the supplier and consumer of architecture services. In general, all the information in this document should be at a high level.! Roadmap! 155  
  • 79. . Copyright 2012 COMMUNICATE! Business Vision, Architecture! ! !! •  “Canvas” the Business Vision, Architecture () ! ! - The Business (IT) Strategy link to operations ()! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! - Business (IT) Tactics ()! - Business (IT) Context ()! - Captured in a Strategy Map ()! - & Canvas, articulated in a ()! - Collaboration Theme Scorecard ()! - Conceived in to a solid story ()! - Deliver IT Services to Business needs ()! - IT contributes to business objectives ()! - and provides competitive advantage ()! - Deliver effective business strategy execution ()! 157  
  • 80. . Copyright 2012 COMMUNICATE! Link Strategy and Operations! 1.  2.  3.  4.  Develop the Strategy! Translate the Strategy! Plan Operations! Monitor and Learn! 5.  Test and Adapt the Strategy! Execute Procedures and Initiatives! ! ! !! !! ! ! ! ! The Business (IT) Strategy link to operations! 159  
  • 81. . Copyright 2012 COMMUNICATE! Define Market Position! 1.  2.  3.  4.  New entrants! Suppliers! Substitute products or Services! Buyers! 5.  Existing Competitors! ! ! !! !! ! ! ! ! Business (IT) Context! 161  
  • 82. . Copyright 2012 COMMUNICATE! ! ! The Stakeholder Strategy Map: Formalises stakeholder outcomes to deliver value for all parties.! ! ! ! The strategy canvas allow the teams to articulate and formulate objectives on a project / program basis for improved execution with an extended GAP, risk and added value analysis captured in a DARCI (Decision taker, Accountable, Responsible, Consulted & Informed).! & Canvas, articulated in a! 163  
  • 83. . Copyright 2012 COMMUNICATE! ! ! The Collaboration Theme Scorecard: Sets process objectives, Identifies : levers for joint actions and wins, metrics and initiatives on a short, middle & long term basis.! ! ! Collaboration Theme Scorecard:! Objectives: ! ! !! ! !! ! !! ! - Set process objectives,- Identify levers ! for joint actions and wins,- Identify metrics, Identify initiatives on a short, middle long term basis.! Levers:! !! !! !! ! ! ! ! - Joint: Steering committee, development committee, project teams, cross functional teams, process improvement teams, functional improvement teams.! ! ! ! ! ! ! !! !! Collaboration Theme Scorecard! Managing Alliances with the Balanced Scorecard, HBR 2010 / 01: P 114 - 120! 165  
  • 84. . Copyright 2012 COMMUNICATE! The IT service proposition is aligned to the business strategy as:! •  ! •  •  •  •  Stakeholder expectations are understood and IT propose a ! ! service portfolio that correspond to Demand and Cost drivers ! Business Contribution, Cost, Consumption & Chargeback is identified! Focus is on perfect order business transactions! Services are effective (demand and cost drivers identified)! Services are competitive (Benchmark Industry Market Forces)! •  New technological solutions that could change how current business is performed are explored, proposed and implemented.! ! ! IT contributes to business objectives! 167  
  • 85. Service strategy ! Delivery capability! Architecture! Security! Strategy Execution! “This is how we support business objectives with services in a time to market perspective” ! “This is how we deliver IT services to the business” ! Business (IT) Value Proposition! . Copyright 2012 COMMUNICATE! (IT) Business Model! ! Develop vision and strategy
 ! Develop and manage products and services
 ! Market and sell products and services
 ! Deliver products and services
 ! Manage customer services
 ! Develop and manage Human Capital
 ! Manage information technology
 ! Manage financial resources
 ! Acquire, construct and manage property
 ! ! Manage environmental health and safety ! ! Manage external relationships
 ! Manage knowledge, improvement and change
 ! Time to Market (Governance: Performance & Conformity)! Business (IT) Strategy Road Map (How)! Deliver effective business strategy execution! 169  
  • 86. . Copyright 2012 COMMUNICATE! CEO, CFO, CIO, CTO, SVP, Architects, Strategy, Business Executives and the IT function in general. ! Target Audience! 171  
  • 87. . Copyright 2012 COMMUNICATE! BrightTalk Thought Leadership: http://www.brighttalk.com/community/it-service-management/webcasts?q=martin+palmgren ! Get your cloud strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/29211 ! Get your IT Service Strategy right: http://www.brighttalk.com/community/it-service-management/webcast/534/23630! Leverage Strategy with IT: http://www.brighttalk.com/community/it-service-management/webcast/534/22934 ! Cloud Computing: Fluff or Lightening? http://www.brighttalk.com/community/it-service-management/webcast/534/21892 ! Run IT as a Service Business! http://www.brighttalk.com/community/it-service-management/webcast/534/21389 ! In French: ! Cloud Computing : La tête dans les nuages?: http://www.brighttalk.com/community/it-service-management/webcast/534/21919 ! Baseline: Coût, Consommation, chargeback et contribution IT aux objectifs de l'entreprise : ! http://www.brighttalk.com/community/it-service-management/webcast/534/21388! Deliver Business Value with IT (the book) https://www.smashwords.com/books/view/290604  (the blog) http:// deliverbusinessvaluewithit.wordpress.com /! I also share perspective @ some of the top French Business Schools, notably EDHEC! International Thought Leadership! 173