strategic business architecture helix(tm) framework
Post on 16-Apr-2017
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T H E F R A M E W O R K F O R S U C C E S S F U L D E V E L O P M E N T A N D I M P L E M E N T A T I O N O F O P T I M A L E N T E R P R I S E T A R G E T O P E R A T I N G M O D E L S
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
STRATEGIC BUSINESS ARCHITECTURE is
the product and a process of contextualising, designing and implementing optimal enterprise Target Operating Models
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
As the product, Strategic Business Architecture unites form and function of the enterprise organisation. It depicts Target Operating Model blueprints, key processes and associated governance structures – optimally developed to address business environment and objectives. Because all companies are unique,
OPTIMAL TARGET OPERATING MODELS ARE AS DIFFERENT AS BUILDINGS (and ideally as elegant as the best of them)
AN OPTIMAL TARGET OPERATING MODEL SHOULD SATISFY THREE PRINCIPLES: BE EFFECTIVE – SENSIBLE AND FIT TO DELIVER ON COMPANY’S STRATEGIC OBJECTIVES BE EFFICIENT – WITH CLEARLY DEFINED PROCESSES AND RESPONSIBILITIES TO SERVE ITS PURPOSE BE RESPONSIVE – FLEXIBLE TO RAPIDLY ADJUST TO CHANGES IN INTERNAL AND EXTERNAL CONTEXTS
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
STRATEGIC BUSINESS ARCHITECTURE HELIX™ FRAMEWORK USES FORMALISED METHODOLOGIES TO RELATE ENTERPRISE EXTERNAL AND INTERNAL CONTEXTS TO ITS BUSINESS OBJECTIVES AND BUILD AN OPTIMAL TARGET OPERATING MODEL. IT THEN FACILITATES SUCCESSFUL ORGANISATIONAL TRANSFORMATION THROUGH TRANSITION PLANNING AND ORCHESTRATION OF CHANGE MANAGEMENT ACTIONS
INDUSTRY
CONSUMER
POLITICAL ECONOMIC
ORG.
ENTERPRISE BUSINESS MODEL
TARGET OPERATING MODEL
IMPLEMENTATION PLANNING
CHANGE MANAGEMENT
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com | Triangle image design by Freepik.com
STEP 1. CONCEPTUALISATION means
accurately grounding any future Target Operating Model within the organisation’s external and internal contexts, making it
optimal for that company
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
ORGANISATIONAL CONTEXT
CONSUMER CONTEXT
INDUSTRY CONTEXT
STRATEGIC BUSINESS ARCHITECTURE TAKES INTO ACCOUNT KEY EXTERNAL CONTEXTS – IN ADDITION TO THE ENTERPRISE BUSINESS MODEL AND ITS ORGANISATIONAL BACKGROUND – TO BUILD AN OPTIMAL TARGET OPERATING MODEL WHICH CAPTURES PRAGMATIC CHOICES AND SOLUTIONS TO STRATEGIC NEEDS FOR THAT COMPANY
POLITICAL AND/OR
ECONOMIC CONTEXT
TARGET OPERATING
MODEL
SCALABILITY AND RESILIENCE
FLEXIBILITY AND AGILITY
RESPONSIVENESS AND RELEVANCE
CAPABILITY AND ABILITY
ENTERPRISE BUSINESS MODEL
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
TARGET OPERATING
MODEL Architectural alignment
BUSINESS MODEL
Present/future growth and productivity strategies
MISSION Fundamental purpose of the company and how it aims to achieve its vision
VISION Direction of travel and long-term view of the
company
VALUES Guiding principles and
fundamental beliefs that govern company’s actions
STARTING WITH THE VALIDATION OF THE ENTERPRISE BUSINESS MODEL AND ITS GROWTH AND PRODUCTIVITY STRATEGIES, STRATEGIC BUSINESS ARCHITECTURE DEVELOPS A VISION OF THE CAPABILITIES AND BUSINESS VALUE TO BE DELIVERED AS A RESULT OF THE OPTIMAL TARGET OPERATING MODEL’S INTRODUCTION
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
REFLECTION OF WIDER POLITICAL AND/OR ECONOMIC CONTEXT ENSURES UP- AND DOWN-SCALABILITY OF THE TARGET OPERATING MODEL AND ITS RESILIENCE TO CRISES AND CYCLES. IMPACTFUL RELATIONSHIPS THAT EXIST BETWEEN DIFFERENT INDUSTRIES WITHIN THE BROADER ECOSYSTEM ARE ALSO CAPTURED
SHORT TERM MEDIUM TERM LONG TERM
§ FACILITATION OF NEW CAPABILITY INTEGRATION
§ CLARITY FOR CARVE-OUT § MODULARITY AND SELF-
CONTAINMENT FOR UP-/DOWN-SCALING
§ BENEFIT FROM INTER-INDUSTRY DYNAMICS
Target Operating Model (caeteris paribus)
Target Operating Model (context-aware)
Target Operating Model (context-aware)
SCENARIO A
Context-aware Target Operating Model is developed and deployed. Organic changes in the ecosystem that are naturally occurring are taken into account
As milestone event(s) take(s) place, context-aware Target Operating Model is dynamically adjusted
Through external context awareness, Strategic Business Architecture expands horizons so that the resulting Target Operating Model copes successfully with ecosystem’s uncertainties and change
ILLUSTRATIVE USE OF SCENARIO PLANNING IN THE STRATEGIC BUSINESS ARCHITECTURE HELIX™ FRAMEWORK
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
REGARDLESS OF A B2B OR A B2C FOCUS, MASTERY OF FINAL CONSUMER CONTEXT ENSURES RESPONSIVENESS AND SERVICE ORIENTATION OF THE TARGET OPERATING MODEL THROUGH APPROPRIATE ORGANISATIONAL DESIGN, CLEAR INTERCONNECTED PROCESSES, AND TECHNOLOGY AND DATA SPECIFICATIONS
CONSUMERS TARGET
OPERATING MODEL
CONSUMER TRENDS AND BEHAVIOURS… § Brand/quality/image perceptions § Alternative choices § Lifestyle preferences § Societal beliefs § Information needs § Communication requirements § Attitudes to digitalisation
…THAT DRIVE STRATEGY... § Vision and Mission § Strategic objectives § Strategic choices
…AND BUSINESS MODEL... § Value proposition § Revenue streams § Cost bases
…ARE REFLECTED IN THE TOM § Capabilities/functions § Processes § Governance § Infrastructure § Data § Safety/Security
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
COMPETITION MOVES Established players Wild cards New entrants from other industries
OUTER SPACE
WHITE SPACE
NEAR-CORE SPACE
CORE SPACE
TARGET OPERATING MODEL
INDUSTRY CONTEXT CONTRIBUTES TO DESIGN OF AN OPTIMAL OPERATING MODEL THAT SUPPORTS MONITORING AND DEVELOPMENT OF OPPORTUNITIES THROUGH ITS FLEXIBILITY AND AGILITY OF RESPONSE, AND INTERCONNECTIVITY TO CHANNEL KNOWLEDGE, EXPERIENCE AND RESOURCES TO WHERE NEEDED
REGULATORY OVERSIGHT Labour legislation
Financial regulations Health/Safety/Environmental
requirements
INDUSTRY DYNAMICS Consumers (directly and indirectly)
Clients/Distribution channels Suppliers/Vendors Partners/Investors
Other industries
TECHNOLOGICAL ADVANCES Digitalisation Knowledge diffusion Information accessibility Media proliferation
FLEXIBILITY
AGILITY
INTERCONNECTIVITY
BUSINESS DEVELOPMENT SCANS
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
ORGANISATIONAL CONTEXT IS A SOURCE OF PRAGMATISM FOR THE TARGET OPERATING MODEL. IT SUPPLIES UNDERSTANDING OF ORGANISATION’S BASELINE CAPABILITIES, ITS COLLECTIVE MEMORIES AND CULTURE, AND ITS INNATE ABILITY TO ADAPT TO CHANGE NECESSITATED BY THE OPERATING MODEL’S REDESIGN
ARCHITECTURAL SIGNIFICANCE
WIL
LIN
GN
ESS
TO P
URS
UE
KEEP
and manage distractions to stay focused on
important deliverables
ANCHOR
and re-emphasise benefits to build up ownership of
the target model
REMOVE or postpone for later
review
CHALLENGE stakeholder concerns or
organisational capabilities to
understand key reasons for resistance
TARGET OPERATING MODEL n Realistic in scope n Functional in implications and
implementation
ILLUSTRATIVE USE OF A KAIZEN-INSPIRED APPROACH IN THE STRATEGIC BUSINESS ARCHITECTURE HELIX™ FRAMEWORK
H L
L
H
COMPANY BASELINE CAPABILITIES MEMORIES CULTURE EXPERIENCE
‘CLEAN SLATE’ ORGANISATION
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
STEP 2. PLAN & DESIGN covers
the development of detailed architectural designs and operational blueprints of the target operating model and its
intermediary states
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
ULTIMATELY, STRATEGIC BUSINESS ARCHITECTURE TRANSLATES ENTERPRISE BUSINESS MODEL AND ITS EXTERNAL AND INTERNAL CONTEXTS INTO TARGET OPERATING MODEL, A SET OF ACTIONABLE BLUEPRINTS THAT CREATE COMMON VIEWS AND UNDERSTANDING OF THE ‘WHY’, ‘WHAT’ AND ‘HOW’ ACROSS THE ENTIRE COMPANY
CLIENT RETENTION
STRATEGIC BUSINESS OBJECTIVES (e.g. shareholder/stakeholder value)
ILLUSTRATIVE USE OF CUSTOMISED STRATEGY MAPPING AND TOGAF ADM IN THE STRATEGIC BUSINESS ARCHITECTURE HELIX™ FRAMEWORK
PRODUCTIVITY STRATEGIES GROWTH STRATEGIES
COST OPTIMISATION CROSS/UP SELL NEW DEVELOPMENT
CLIENT SATISFACTION SERVICE/OFFER PORTFOLIO SERVICE/OFFER AVAILABILITY
KEY INTEGRATED CROSS-ENTERPRISE PROCESSES (e.g. Sales, Contract management, Mobilisation, Investment, HR…) AND DELEGATIONS
SERVICE ORIENTATION SERVICE/OFFER INNOVATION
BU
SIN
ESS
MO
DE
L TA
RG
ET
OP
ER
ATI
NG
MO
DE
L
TARGET ORGANISATION ARCHITECTURE • Execution capabilities and partnerships • Business support functions • Organisation structure and governance • Roles and responsibilities • Shared objectives and KPIs
TARGET INFORMATION SYSTEM ARCHITECTURE • Data architecture • Application architecture
TARGET TECHNOLOGY ARCHITECTURE • Components and platforms • Performance and maintainability • Environments and locations • Hardware and networks
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
DEPENDING ON DESIGN NEEDS, THE STRATEGIC BUSINESS ARCHITECTURE HELIX™ FRAMEWORK BUILDS ON SERVICE ORIENTED ARCHITECTURE PRINCIPLES TO ENSURE SMOOTH DELIVERY OF INTERACTION AND SERVICE ELEMENTS OF THE TARGET OPERATING MODEL
OPERATING UNIT 1
OPERATING UNIT 2
OPERATING UNIT 3
SHARED SUPPORT FUNCTIONS (HR, FINANCE ETC)
SLA A
SLA B
SLA C
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
STEP 3. TRANSFORM orchestrates
managed transition to the Target Operating Model through meticulous yet flexible planning, stakeholder monitoring and
proactive change management actions
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
TARGET OPERATING
MODEL
THROUGH STRUCTURED APPROACH TO THE TARGET OPERATING MODEL’S ROLLOUT, AGREED GOVERNANCE, STAKEHOLDER MANAGEMENT PLANNING AND PROGRESS MONITORING, THE STRATEGIC BUSINESS ARCHITECTURE ANSWERS CRITICAL CHANGE QUESTIONS, PROVIDES TRANSPARENCY AND STREAMLINES BUSINESS TRANSFORMATION ACROSS THE ORGANISATION
SPEED OF ADAPTATION § How long should it take to
transition to the target model? § Can we go faster or need to slow
down in some areas?
COMPLIANCE OF ADAPTATION § How to ensure that we are getting the agreed
target model by the end of transition?
COST OF ADAPTATION § How to make the change affordable? § What are the plans not to lose existing
clients or new business opportunities during transition?
§ Are our teams on-board?
SHORT TERM MEDIUM TERM LONG TERM
CHAN
GE
AND
STA
KEH
OLD
ER M
ANAG
EMEN
T
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
ADVANTAGES OF APPLYING THE STRATEGIC BUSINESS ARCHITECTURE HELIX™ FRAMEWORK
• This comprehensive framework clearly defines stages of translating corporate strategies into optimised operating models through flexible architectural solutions, which allows an accurate estimate of the degree of effort required.
• This is an inclusive framework covering business, organisational, and technological aspects of the modern enterprise. Analysis of architectural alternatives makes sure that there are no stones left unturned in search of optimisation for the target operating model.
• This is a change management-aware framework that deals not only with structures and systems, but also with the people aspects of the transformation equation.
• This is a delivery-focused framework that has governance, issue escalation, and resolution mechanisms built in to ensure the successful transformation journey.
THE STRATEGIC BUSINESS ARCHITECTURE HELIX™ FRAMEWORK HAS BEEN DEFINED, REFINED AND TESTED ON A NUMBER OF PROJECTS RANGING FROM BUSINESS UNIT OPTIMISATION TO A COMPLETE REDESIGN OF A TARGET OPERATING MODEL FOR AN ENTIRE GLOBAL COMPANY. ITS BENEFITS OF REALISATION OF STRATEGIC DECISIONS WITH MAXIMUM EFFICIENCY ARE APPLICABLE TO FOR- AND NOT-FOR-PROFITS ALIKE
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
KIRILL DEREVENSKI
e: kirill.derevenski@gmail.com l: www.linkedin.com/in/derevenski
w: strategicbusinessarchitecture.com
Copyright © 2016 Kirill Derevenski | www.strategicbusinessarchitecture.com
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