Table Of ContentOutcome-Driven Business
Architecture
Outcome-Driven Business
Architecture
Synergizing Strategies and Intelligence
with Architecture
Amit Tiwary and Bhuvan Unhelkar
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Renu, Aneesh, Ayesha, Ayush and Ayansh (AT)
Asha, Pratima, Nivedita and Chinar (BU)
Contents
List of Figures .........................................................................................................................xvii
List of Tables ...........................................................................................................................xxi
Acknowledgments ..................................................................................................................xxv
Foreword ...............................................................................................................................xxvii
Preface ...................................................................................................................................xxix
Authors ...............................................................................................................................xxxvii
SECTION A CONCEPTS AND ODBA FRAMEWORK
1 Business Strategies and Outcome-Driven Business Architecture .................................3
Introduction ......................................................................................................................3
Architectures and Outcomes .........................................................................................3
Strategies and Capabilities .................................................................................................5
Strategies, Actions, and Projects ....................................................................................5
Organizational Strategies: Components ........................................................................5
Business Capability .......................................................................................................6
Organizational Strategies: Goals and Outcomes............................................................8
Organizational Strategies: Actions and Projects .............................................................8
Iterations and Increments (Agility) in Projects ..............................................................9
Positioning BA ...................................................................................................................9
Capabilities, Outcomes, and Architectures ..................................................................12
Arguments for ODBA ..................................................................................................13
Balancing Act of ODBA ...............................................................................................14
Optimization of Resources with ODBA .......................................................................14
Strategic Planning in Business ..........................................................................................15
Strategies and Outcomes ..............................................................................................16
Business Strategy Implementation ....................................................................................17
Strategy Planning and Risks .........................................................................................17
Operational Excellence and Business Outcomes ...........................................................18
Customer Intimacy and Business Outcomes ................................................................19
Product Leadership and Business Outcomes ................................................................19
Comparison between the Three Disciplines of Product Leadership, Operational
Excellence, and Customer Intimacy .............................................................................21
Identifying the Business Outcomes ..................................................................................23
Business Strategy Failures ................................................................................................24
Risks of Faulty Strategy: The ‘Cardinal Sins’ ................................................................25
vii
viii ◾ Contents
Mismatched Decision-Making ....................................................................................26
IT as a Capability ............................................................................................................28
IT Utilization ..............................................................................................................28
Further to Business Capability Gaps ...........................................................................28
BA Roadmap Supporting IT Capabilities ........................................................................30
BA Map .......................................................................................................................30
Capabilities and Management ......................................................................................31
Capability Heat Maps ..................................................................................................31
Annotating Capability Heat Maps ...............................................................................31
Capability Categorization ............................................................................................32
Making Use of BA in Practice ......................................................................................33
Discussion Points ..............................................................................................................33
References ........................................................................................................................34
2 Developing Business Architecture I—Capabilities and Challenges ..........................37
Introduction ....................................................................................................................37
Business Capabilities Drive Business Outcomes ..........................................................39
BA: Positioning ...........................................................................................................39
BA: Key Elements .............................................................................................................41
BA and EA .......................................................................................................................42
Benefits and Challenges of Business Capability-Based Strategic Implementation ........43
Impact of Misaligned and Immature Capabilities on Business Outcomes ...................43
Controlled Change with ODBA..................................................................................46
Developing Business Capabilities: An Iterative Approach .................................................47
Multiple Levels of Strategies Lead to Chaos .................................................................47
BA Alignment and Decision-Making ..........................................................................49
BA and IM ...................................................................................................................51
Business Intelligence, Collaborative Intelligence, and ODBA ...........................................52
Knowledge and Intelligence .........................................................................................53
Organizational Levers and BA .........................................................................................54
Increase Revenue .........................................................................................................54
Improved Product Branding ........................................................................................54
Expanding Markets and Increasing Sales .....................................................................55
Increase Returns from Previous Projects ......................................................................56
Decrease Operational Costs ........................................................................................56
Decrease Input Costs ..................................................................................................56
Optimize Resource Utilization ....................................................................................56
Reduce Redundant Actions ..........................................................................................57
Utilizing Disruptive Innovations ..................................................................................57
Refining Organizational Structure ...............................................................................57
Achieving Better Technology Utilization .....................................................................57
Establishing ODBA .........................................................................................................58
Positioning Business Capability Frameworks within ODBA ........................................59
Extending and Applying American Productivity Quality Center Framework ...................59
Case Study Outline ...........................................................................................................61
Phase I: Establish BA Framework .................................................................................61
Phase II: Vogue Business Capability Assessment .........................................................62
Contents ◾ ix
Phase III: Alignment with Updated Strategy ...............................................................62
Discussion Points .............................................................................................................63
References ........................................................................................................................63
3 Developing Business Architecture—II .......................................................................65
Business Architecture Challenges......................................................................................65
Lack of Use of Standards .............................................................................................66
Consolidation without Understanding the Outcomes .................................................66
Treating Architecture as a ‘Solution’ to a Problem Rather than a Basis for
Handling Multiple Problems .......................................................................................66
Architecture without Process Management ..................................................................67
Lack of Good Governance in Projects ..........................................................................67
Poor Communication across the Organization .............................................................67
Lack of Leadership in the Organization .......................................................................67
Lack of Trust among Key Stakeholders .......................................................................68
Applying BA to Projects ...................................................................................................68
Role of IT in ODBA ...................................................................................................68
Improving Organizational Readiness ..........................................................................68
The ODBA Framework ....................................................................................................70
Importance and Value of ODBA .................................................................................70
Establishing ODBA.....................................................................................................72
Business Capabilities and ODBA .....................................................................................73
Business Capability Layers ..........................................................................................75
Vision and Strategy for Business Capability .................................................................76
Capabilities and Processes ...........................................................................................78
Process to Define Capabilities .....................................................................................79
Embedding Business Capabilities in ODBA ....................................................................80
BA Context and Outcomes .........................................................................................80
Approach to Developing ODBA ..................................................................................81
Key Artifacts of ODBA ...............................................................................................82
ODBA Requirements: High-Level ..............................................................................83
Details of the ODBA Framework ....................................................................................84
Conceptual Sub-Framework for Business Capabilities ..................................................85
Business Capability Model ...........................................................................................85
Business Capability-Based Gap Analysis ..........................................................................86
Heat Maps and Capability Assessments ......................................................................88
Incorporating Business Capabilities in Business Development .........................................89
Organizational Change for Efficiency ...............................................................................91
Profitability and Business Capabilities .............................................................................92
Discussion Points .............................................................................................................93
References ........................................................................................................................93
4 Building and Assessing Business Capabilities—I ......................................................95
Aligning Business Capabilities .........................................................................................95
Resources and Business Capabilities ................................................................................97
People and Business Capabilities .................................................................................99
IT and Business Capabilities ..........................................................................................100
