Graham McLeodCTO, PROMIS Solutions AG

February 2009

Open Group EAPC San Diego

Engaging Real Business PeopleIn Real Business Architecture

Engaging Real Business People in Real Business

Architecture

AbstractWe often hear I.T. Architects complain that the business strategy is not clear and that they cannot get business owners and executives to participate in the EA activity, thus leaving the whole ship, in a sense, “rudderless”. When we look at what is discussed with the business people as “business architecture” we are not too surprised. EA in most organizations (and in TOGAF) has “grown upwards” from IT towards the business process management space. Few organizations are doing real Business Architecture.

This talk is part evangelism for relevant and comprehensive Business Architecture as well as drawing upon our experience of doing this with organizations in telecommunications, health care, banking, assurance, government and software industries over many years.

We will cover the scope of business architecture, a meta model for business architecture, how to deal with scenarios and “what ifs”, ideas on how to engage the real owners and executives of the business and illustrate the ideas with examples from experience. We hope to provoke some discussion on how these ideas could be incorporated into TOGAF.

AudienceImplementors of EA methods; business architects; business executives

Key takeaways1. A new perception of the scope of and potential for real Business Architecture2. A meta model to assist in understanding, information gathering and organization of models3. Ideas on how to constructively engage business owners and executives and get real direction flowing into other architecture effort

Agenda

Who we are

Why Business Executives don't Come to the Party...

What is Business Architecture?

Promis View on Business Architecture

Process Architecture vs Process Modeling

Meta Model for BA

Example Models and Artifacts

Value Derived

Scenarios

Programme Management, Delta Models

Integration to Other Architecture Dimensions

Implications for Architects

Suggestions for TOGAF

Summary, Questions and Discussion

Specialists in Strategy, Specialists in Strategy, Enterprise Enterprise Architecture and Business Architecture and Business Process Process Modelling (30 years IT; 19 years Modelling (30 years IT; 19 years EA)EA)

OfficesOffices Europe (Switzerland; Germany; Spain)Europe (Switzerland; Germany; Spain) UK, USA, South AfricaUK, USA, South Africa Associates and sub-distributors Associates and sub-distributors

(Benelux, Saudi Arabia, New Zealand)(Benelux, Saudi Arabia, New Zealand)

Own IPOwn IP EVA Netmodeler – Innovative collaborative EVA Netmodeler – Innovative collaborative

enterprise modeling and knowledge enterprise modeling and knowledge management toolsetmanagement toolset

Unique integrated Frameworks, Meta Unique integrated Frameworks, Meta Models and Reference Models (EA, Models and Reference Models (EA, NGOSS, Banking)NGOSS, Banking)

Associated Consulting Services Associated Consulting Services and Training (including TOGAF)and Training (including TOGAF)

PROMIS Solutions AG

Why Exec's Won't Party

We talk tech

We talk detail

We take too long

We are stuck in history and constraints

We don't add value for them now...

We wouldn't know the business issues if they bit us!

What is Business Architecture?

ZachmanMotivation, Time, Process, Entity, Location, Organizationess units

TOGAF (Traditional)Organization, Process, Goals

IAF (Cap Gemini)Organization, Products/Services, Channels, Stakeholders, Markets, People, Clients

Views are somewhat limited and only IAF is looking “outside”

TOGAF 9 View on BA

Archimate View

BusinessActors and RolesBusiness ServicesBusiness Process

ApplicationExternal ServicesComponents

TechnicalExternal ServicesComponents

Business Architecture - Promis

Context

Full Business Concerns

Includes Process

Cross Cutting Concerns

Cost

Risk

Quality

Performance

Governance

Channels

ProductsProducts

ServicesServices

Partners

Customers

Services and Products are delivered to customers in markets via channels

Markets

R e s o u r c e s a n d T e c h n o lo g y a r e u s e d in t h e b u s in e s s p r o c e s s t o p r o d u c e t h e p r o d u c t s a n d s e r v ic e s

ResourcesResourcesPartners participate in

the business process

Business Business

ProcessesProcesses Technology

CultureCulture

Suppliers

Suppliers contribute inputs

to the products and services

CONTROLCONTROL

SERVICESERVICE

SUPPORTSUPPORT

Competi tors

O t h e r

S t a k e h o ld e r s

In c lu d e s h a r e h o ld e r s ,

c o m m u n it y e t c . P r o v id e a n d e x p e c t a v a r ie t y o f t h in g s

P re s id e n t

V P

M in io n M in io n

V P V P

M in io n M in io n M in io n

O r g a n iz a t io nO r g a n iz a t io n

C o n tr a c tC o n tr a c t

BusinessBusiness

ModelModelDealsDeals

Risks

GoalsGoals

Opportunities

Process Architecture

P a r t n e r s

BusinessCommunication

L o cat io n

Step Step Step Step Step Decision Decision Decision DecisionS t a k e h o ld e r

B u s in e s s

E v e n t

B u s in e s s P r o c e s s

S t e p S t e p S t e p S t e p S t e p Decision Decision Decision Decision

g o vern

B u s in e s s R u le s

o ccu rs at

tr ig g ers

in clu d es

BusinessObject

resp o n sib ilefo r

O r g a n iz a t io n

in itiates

B u s in e s s

G o a l

su p p o rts

u ses/

g en erates

u ses/

ch an g esstate o f

P r o d u c t /S e r v ic e

p ro d u ces

R e s o u r c e

u sedb y

p ro vid es

received

b y

K e yIn d ic a t o r s

mo n ito redb y

S u b P r o c e s s

su p p o rted b y/u ses

A p p lic a t io n

R is k s

h as

asso ciated

h asasso ciated

C o n t r o ls

Meta Model

Defines the necessary concepts, relationships and properties

Covers domains of business, process, application, information, technology

Distinguishes between logical and physical

Maps domains & layers

Maps to notation to represent / model

FrameworkProvides

User Defined

A p p l ic a t io nF u n c t io n

A p p l ic a tio n

T y p e

A p p l ic a tio n S c e n a r io

c a te g o r is e s p r o v id e d b y

p a r t o f

Status

T r a n s a c t io n a l

B a n k M a s t e r

R e t a i lB a n k in g

2 0 0 6 O p t im is t ic

Upgrade to Rel 3

c a te g o r is e s p r o v id e d b y

p a r t o f

M e ta M o d e l

L o g i c a l

P h y s i c a l

C o n te n t M o d e l

BA Meta Model

MARKETSEGMENTMARKET

SEGMENT

LOCATION

CONTROL

RESOURCEAPPLICATION

SERVICE

BUSINESSOBJECT

BUSINESSCOMMUNICA

TION

KEYINDICATOR

BUSINESSPROCESS

BUSINESSEVENT

BUSINESSRULE

RISK

TECHNOLOGY

BUSINESSUNIT

BUSINESSGOAL

OPPORTUNITY

DEAL

ROLE

STAKEHOLDER

STAKEHOLDER

TYPE

SERVICE

COMPETITOR

CUSTOMERTYPE

CHANNEL

PRODUCTTYPE

BRANDBUSINESSINITIATIVE

BUDGET

Note: Excerpt from complete model copyright Promis

BUSINESSCAPABILITY

Healthcare Example

NOW 2 YRS 5 YRS 10 YRS30

40

50

60

70

Pe

rce

nt

Fee for ServiceManaged Health Care

R e v e n u e b y P r o d u c t

NOW 2 YRS 5 YRS 10 YRS0

10

20

30

40

50

60

70

80P

erc

en

t Supplier FaxClient CorrespondenceElectronic (MHC)

R e v e n u e fr o m C h a n n e l

Fundamentally affects priorities, allocation of resources, system services required, information architecture and technology plans

Banking Experience

Multinational Private and Investment Bank Aggressive growth by acquisition across three continents Culture in BU of “do what you like, just make the numbers” Problems of uncompetitive cost ratios. Spiraling infrastructure and

integration costs – esp to implement Basel II Decided to do a “Zero Base” project to re-justify all structures, responsibility

allocation and infrastructure spend Assisted over a period of 11 weeks to model

Business Units and org structure Products, channels, market segments Processes and supporting system and information services

Resulted in major (but smooth) restructuring and rationalisation Major cost savings and improved cost ratios Eased implementation of Basel II and reaching compliance while

maintaining agility

Assurance Growth Plan

Loc

al M

arke

t

P a p e r C o n tra c t

Te ch n olo g y

Cu

sto

me

r/C

ha

nn

el/

Ma

rke

t

Assurance Growth Plan

Electronic Media

Glo

bal M

arke

tLo

cal M

arke

t

P aper C ontr ac t

Driving InitiativesScoping Projects

PROGRAM MANAGEMENT

S tra te g yF o rm u l a t i o n

B us ines s

A pp

Tec hnology

In fo

B us ines s

A pp

Tec hnology

In fo

CurrentReality

Desired FutureArchitecture

Vision

As Is Architecture InitiativesDe lta M o d e lsDe lta M o d e ls

Example Delta Model

M o d e r a t o r

VendorRegistration

B a n k

S u b s c r ib e r

R e t a il V e n d o r

CreditPaySystem

SubscriberBilling

System

SMSGateway

P r o d u c tM a n a g e r

Call Centre

Request Vend Acc

Conf or DenyReq. Paym

Conf or Deny

Confirm Tx

Credit Check

Conf or Deny

Req Auth. Confirm Tx

Encrpt. PIN

VendorPayment

SetupPIN

OK or No

Confirm Payment

Funds Tfr

RequestFacility

Statistics

Account/FacilityDetails

Vendor Request

Decision

Invoice

Request for facility

m o b i le P A Y S y s te m C o n te x t

New

Existin g u n mo d ifiedExistin g mo d ified

Scenarios

CurrentCurrent

CurrentFuture 1

Comment

Makes assumptions explicit.Allows “What if” analysis. Identifies our options under different conditions. Allows reuse of models, building blocks and architecture elements across scenarios BUT with a unique view of each per scenario

Linking into Other Domains

Visibility and traceability for business elements thru to infrastructure

Implications for Architects

• Need business knowledge and expertise– Especially relevant to the particular industry and domain

• Must play the role of a facilitator

• Models and content must belong to the executives

• BUT we can ask good questions, bring techniques, hold up a mirror... ADD VALUE

Summary

• Enterprise Architecture involves

– Context of Enterprise

– All aspects of the Enterprise

• Competent and comprehensive meta models are required

• Enterprise Architects, properly qualified, can add enormous value to organizations today which are facing huge challenges and have to transform quickly

• TOGAF should expand its view of Business Architecture, but also be careful not to encourage use of techniques which are too detailed..

Graham McLeod

Graham has 29 years experience in the IT industry and business having held positions in software development, teaching, project management, product management, research, strategy and general management. He was a tenured academic for 12 years and is the author of textbooks in system development, project management, data management and strategy and architecture. He has authored many papers, presented at numerous conferences worldwide and delivered keynote addresses and tutorials at various universities and conferences in South Africa, UK, Germany, Switzerland, USA, Sweden, Canada, Italy, France, Norway and India.

Mr McLeod has consulted to over 60 leading organizations worldwide in Banking, Finance, Assurance, Retail, Manufacturing, Telecommunications, Healthcare, Government, Education and Information Technology. He has shared ideas with Microsoft, Sun Microsystems, IBM, Fujitsu and NCR Corporation.

Graham founded Inspired in 1991 and developed the Inspired Architecture Frameworks and associated meta models. He is the architect of the the web based Enterprise Value Architect (EVA) Netmodeler collaborative enterprise modeling and knowledge repository tool.

He is now CTO of Promis Solutions AG, based in Zug, Switzerland. Promis markets the EVA Netmodeler product, the Inspired Frameworks and meta models and associated services and training worldwide.

Graham can be reached at: graham.mcleod@pro-mis.com

If you would like a white paper on the Inspired/Promis frameworks and/or one on the difference between Process Architecture and Process Modeling, please drop us a line.