Lean Business Architecture

Lessons from Lean for business architecture practitioners.

What is Business Architecture?
Lean Principles applied to Business Architecture
Practical Examples of Lean Business Architecture

Presented by Andrew Blain at LASTConf (Lean Agile Systems Thinking Conference) July 2014

Transcript

2. 2 Lean Business Architecture Lessons from Lean for business architecture practitioners. Andrew Blain Director, Elabor8 tweety: @_andrewblain_ email: andrew.blain@elabor8.com.au slides: http://www.slideshare.net/AndrewBlain1/lean-business-architecture
3. 3 What is Business Architecture? Lean Principles applied to Business Architecture Practical Examples of Lean Business Architecture Overview
4. 4 What is Business Architecture?
5. 5 What is Business Architecture? Nick Malik: •  Business architecture is a ‘thing’; OR •  Business architecture is a process; OR •  Business architecture is a broader purpose; OR; •  Some combination of the above. h"p://blogs.msdn.com/b/nickmalik/archive/2012/09/11/many-­‐flawed-­‐defini?ons-­‐of-­‐business-­‐architecture.aspx  
6. 6 What is Business Architecture? Who Definition Terry Roach "A business architecture articulates organisational objectives and associated strategies in a conceptual model of the domain, the behaviour and the governance of business operations. " Bruce McNaughton "The business strategy, governance, organization, and key business process information, as well as the interaction among these concepts." (derived from TOGAF) Sunil Muduli Business Architecture is about Modeling/Capturing Business Motivation, Capability, Process (Level 0 & 1) and People(Role/Responsibility) Rubina Polovina Business Architecture—A model of real-world that contains discourse relevant for an IT-intensive endeavor (or, simply, IT endeavor) OMG Business Architecture Group A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands. (Bizbok 2.1) Tim Blaxall Business Architecture helps to implement our business strategy by designing the developments needed in the way our business operates.
 Overview: The Business Architecture defines the business strategy, governance, organization, and key business processes. TOGAF Definition: A description of the structure and interaction between the business strategy, organization, functions, business processes, and information needs. (TOGAF 9.1, Section 3.22) Taurai Christopher Ushewokunze Business Architecture is the process of planning, designing and implementing macro level to micro level business structures at a minimum it defines the relationships between finance, marketing, operations and technology. Nick Ananin Business Architecture is the process and outcomes of planning, designing and building a system that delivers tradable products (goods, services etc) that are of value to customers. Michael Poulin Enterprise Business Architecture is architecture that comprises business functionality and business informational models, positions itself across business administrative and organisational enterprise structures, and that transforms goals and objectives defined in a business enterprise model and refined in the Strategic Business Plans into the functional and informational definition for a corporate business Joanne Dong Business Architecture is a holistic set of descriptive representations of the different components of the business and their relationships. The purpose of a business architecture is to ensure proper alignments and integration among the components. Ralph Whittle Informal: the Business Architecture is a blueprint of the enterprise built using architectural disciplines to improve performance. Formal: The Business Architecture defines the enterprise value streams and their relationships to all external entities, other enterprise value streams, and the events that trigger instantiation. It is a definition of what the enterprise must produce to satisfy its customers, compete in a market, deal with its suppliers, sustain operations, and care for its employees. (Source) Tim Manning Business Architecture is a discipline and set of methods for the holistic design of organisations. The architecture of a business is “the arrangement of the functions and features that achieve a given set of business objectives” (adapted from King, 2010). Sam Holcman Business Architecture is explicitly representing an organization’s desired state and as-is state, through a set of independent, non-redundant artifacts, defining how these artifacts relate with each other, and developing a set of prioritized, aligned capabilities needed to meet the organization’s goals, communicating this understanding to stakeholders, and advancing the organization from its as-is state to its desired state. (BACOE, EACOE) Nick Malik Formal: Business Architecture is (1.) 1. A specialization of the Enterprise Architecture business function that collects and manages functional, structural, and motivation-related information using a rigorous scientific and engineered approach for the purposes of business design, functional improvement, motivational alignment and decision support. (2.) One of the four traditional domains of Enterprise Architecture. Informal: Business Architecture -- A specialization of the Enterprise Architecture business function that uses science and engineering to design and implement business functional and process improvements and strategically-aligned change initiatives. Derek Miers (Forrester) An organized and repeatable approach to describe and analyze an organization’s business and operating models to support a wide variety of organizational change purposes; from cost reduction and restructuring, to process change and transformation. Art Caston (as cited by Dave Woods) Business Architecture supports business opportunity assessments, strategy development, and business transformation program planning by creating various business reference models, populating these reference models with current business information, and creating integrated target architecture models to show future market positioning, product and service capabilities, enterprise structure and responsibilities, and proposed business partner relationships. These target models are used by related business planning functions to structure, organize, and govern related transformation programs. IASA (as cited by Kevin in comments below) A business architecture is a part of an enterprise architecture related to architectural organization of business, and the documents and diagrams that describe that architectural organization. Ben Gray A business architecture [noun] helps a client (the business owner/director) to better understand the landscape (business environment, context, or market); understand their choices and constraints; and articulate their vision (requirements) such that designers (of processes, roles, systems, apps, etc) can create a coherent set of artefacts that can be used to plan and build/buy and test against
7. 7 What is Business Architecture? His  conclusion? Business architecture is a ‘thing’ AND Business architecture is a process; AND Business architecture is a broader purpose. BizBoK definition: “A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands." Business  Architecture  Body  of  Knowledge  (h"p://www.businessarchitectureguild.org/About)  
8. 8 What is Business Architecture? 1. An abstraction of an enterprise
9. 9 What is Business Architecture? 2. Models (‘blueprints’) that form the abstraction
10. 10 What is Business Architecture? 3. A process for building the abstraction
11. 11 Lean Principles Applied to Business Architecture 1. Define what is of value to the customer 2. Identify the value stream / eliminate waste 3. Create a constant flow 4. Produce based on demand 5. Continuous Improvement
12. 12 Lean Principles Applied to Business Architecture 1. Define What is of Value to the Customer “It is not enough that management commit themselves to quality and productivity, they must know what it is they must do.” “A system must be managed. It will not manage itself. Left to themselves, components become selfish, competitive, independent profit centers, and thus destroy the system. The secret is cooperation between components…” W. Edwards Deming
13. 13 Lean Principles Applied to Business Architecture 1. Define What is of Value to the Customer Who is the customer of Business Architecture? •  C Level Execs? •  Senior Management? •  Others? What do they value?
14. 14 Lean Principles Applied to Business Architecture 2. Identify the Value Stream / Eliminate Waste
15. 15 Lean Principles Applied to Business Architecture 2. Identify the Value Stream / Eliminate Waste Look out for queues and large batch sizes •  (don’t bite off too much!) Avoid analysis paralysis: •  P = 40-70 •  Colin Powell: “More money and time are wasted every day in the business world due to indecision than any other reason”
16. 16 Lean Principles Applied to Business Architecture 3. Create a Constant Flow Limit Work in Progress •  Don’t try and model the whole enterprise at once Apply “Lean Economics”: •  Prioritise based on “Cost of Delay” of information •  Focus on the most critical areas
17. 17 Lean Principles Applied to Business Architecture 3. Create a Constant Flow
18. 18 Lean Principles Applied to Business Architecture 4. Produce Based on Demand “Pull” value through your Business Architecture function Consider the value of abstracts: •  Who knows about them? •  Who really understands them? •  Are they still valid?
19. 19 Lean Principles Applied to Business Architecture 5. Continuous Improvement •  Continuous Improvement requires a shared understanding •  Radiate Business Architecture outputs widely •  Encourage participation •  Give people the tools to contribute
20. 20 Practical Examples of Lean Business Architecture 1. An Approach to Lean Business Architecture
21. 21 Practical Examples of Lean Business Architecture 2. Rapid Enterprise Modelling Business Support Operations Capability Delivery Enterprise Strategy Brand Management Quality Management R&D Finance/Asset Mgmt Legal & Regulatory Human Resources Business Continuity Risk Management Knowledge Mgmt Product and Marketing Strategy Product Capability Delivery Product Lifecycle Management Supply Chain Strategy & Planning Supply Chain Acquisition Supply Chain Management Customer Fault to Resolution Usage to Cash Order to Fulfilment Supplier / Partner Readiness Product / Service Resource Strategy & Planning Resource Capability Delivery Resource Lifecycle Management
22. 22 Practical Examples of Lean Business Architecture 2. Rapid Enterprise Modelling Readiness Order to Fulfilment Fault to Resolution Usage to Cash Customer How does the enterprise acquire customers? How does the enterprise perform sales? How does the enterprise receive and process orders? How does the enterprise deal with customer incidents? How does the enterprise bill its customers? Product / Resource How does the enterprise ensure that it is ready to respond to orders? How does the enterprise fulfil its orders? How are orders tracked? How does the enterprise resolve product issues (e.g. returns), production issues or billing issues? How (does) the enterprise measure usage of its products for charging purposes? Supplier / Partner How does the enterprise ensure that its suppliers can support demand? How does the enterprise ensure that its partners meet their obligations (e.g. SLA monitoring, etc.)? How does the enterprise ensure resolution of issues that rest with suppliers / partners? How does the enterprise make or receive payments from its suppliers / partners?
23. 23 Business Support Operations Capability Delivery Enterprise Strategy Brand Management Quality Management R&D Finance/Asset Mgmt Legal & Regulatory Human Resources Business Continuity Risk Management Knowledge Mgmt Product and Marketing Strategy Product Capability Delivery Product Lifecycle Management Supply Chain Strategy & Planning Supply Chain Acquisition Supply Chain Management Technology Strategy and Planning Online Tech Delivery Technology Lifecycle Management Sales and Order Handling Order Preparation Content Management Partner Performance Management Partner Invoices Marketing Execution Community Management Artist Acquisition Logistics Rules Management Customer Support Artist Support Rights-holder Support Content Issue Mgmt Rights Management Returns / Faults Mgmt Customer Payments Artist Invoices Artist Payments Medium Production Capacity Management Order Production Order Distribution Print Medium Strategy & Planning Enterprise Tech Delivery Print Medium Capability Delivery Print Medium Lifecycle Management Customer Fault to Resolution Usage to Cash Order to Fulfilment Supplier / Partner Readiness Product / Service
24. 24 Practical Examples of Lean Business Architecture 3. Use Existing Models •  You’re not the only XXX to ever exist! •  Use industry models to get a start •  Don’t reinvent the wheel •  Re-use best practices •  Don’t chase perfection
25. 25 Some things to look into... •  Business Model Generation and Business Model Canvas –  http://www.businessmodelgeneration.com/ •  Lean Canvas –  https://leanstack.com/LeanCanvas.pdf •  IBM’s Component Business Model –  https://www-935.ibm.com/services/us/imc/pdf/g510-6163-component-business- models.pdf •  APQC –  http://www.apqc.org/ •  eTOM –  www.tmforum.org •  Business Architecture Body of Knowledge –  http://www.businessarchitectureguild.org/
26. 26 Thank you! elabor8.com.au