Outcome-driven business architecture: aligning strategies, capabilities and projects PDF
Preview Outcome-driven business architecture: aligning strategies, capabilities and projects
Outcome-Driven Business Architecture Outcome-Driven Business Architecture Synergizing Strategies and Intelligence with Architecture Amit Tiwary and Bhuvan Unhelkar CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2019 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed on acid-free paper International Standard Book Number-13: 978-1-4987-2429-6 (Hardback) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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The PCF is intended to facilitate organizational improvement through process management and benchmarking, regardless of industry, size, or geography. To download the full PCF or industry-specific versions of the PCF, as well as associated measures and benchmarking, please visit www.apqc.org/pcf 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
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