I had an interesting conversation recently about the use of Wardley maps as part of an Enterprise Architecture and Digital Transformation programme recently. I had looked at using Wardley maps some time ago but now I think it is a good time to incorporate their use into normal Enterprise Architecture/ Business Architecture work. They are a very useful addition to the bag of techniques and approaches that I recommend should be used by Enterprise Architects working on the Strategy and Business Architecture domains as well as for the IT architecture domains.

Wardley Maps are useful for understanding the dynamics of what is needed to support a user’s needs. The underlying dependencies between user needs are constantly evolving and many organisations do not recognise this when they come up with a dry list of Business Strategies, Goals and Objectives using a Business Motivation Model. A Wardley map makes strategies much clearer and contributes towards better situational awareness which is critical.

When asked about their strategy the CxOs often simply mention similar lists of ideas that they see other organisations talking about and copy. Often they don’t really understand the buzz words. For instance, what does ‘Digital’ really mean? Is doing Digital sufficient to claim an innovative advantage in the blue ocean? A situational Awareness map will help visualise the buzzwords and their relative importance. It will also allow the organisation to better understand where it can gain an advantage.

Wardley maps help to position the user needs and dependencies in a continuum from the genesis of an idea through to the commoditisation of the same idea, at the same time as creating a value chain as a directed graph and not just as a high level list of business functions.  The Wardley map combines the Value chain view with an Evolution and dependency view which helps to identify where the strategies (Both Business and IT) should attack to produce a competitive advantage.

Upstream of Wardley maps, User needs can be identified from modelling Business Scenarios and Customer Journeys. It will be very likely that multiple Wardley maps will be needed.

The dependencies between user needs is similar to the dependencies that can be identified between Business Capabilities. Also the provision of Value to a customer is also the outcome of a Business capability. I can easily see a mapping between a grouping of Business Capabilities or groupings of dependencies between Business Capabilities and a a set of Wardley Maps.

Capability Increments can map to groupings within a Wardley map and dependencies between User needs can be associated with dependencies between Capability Increments.

These complementary techniques will reinforce each other and ensure the resulting EA Roadmap of Initiatives and subsequent Project roadmaps will be well designed and stay meaningful and relevant.

Obviously it is important to remember that the evolutions of user needs identified in a Wardley map are dynamic and the resulting EA roadmaps also need to be constantly kept under review, as business and IT trends evolve.

The best strategy is one that can help identify where to attack when things change.

Digital strategy is not simply about marketing. It is about a better engagement with potential and existing customers. It is about the perception of the brand created with customers though close interaction via social media and close communication leading to a value proposition that can better serve their actual and future needs.

As with any business strategy, the enterprise architecture discipline is there to support the business transformation to success with a design strategy. It is useful here to remind everyone that enterprise architecture is not just another name for an enterprise wide view of the IT Architecture and the underlying infrastructure architecture

The term ‘Enterprise’ in Enterprise Architecture refers to the greater scope of the organisation which includes the Customers, contacts, stakeholders in the wider market environment which is addressed by the Digital Strategy.

Enterprise Architecture will help organisations to drive innovations and new business capabilities across their entire value chain and to better understand the digital environment in which they will be operating.

Joe Tucci, Chairman and CEO, EMC Corp.– “To stay relevant in this new, always-connected digital universe, businesses in virtually every industry are reinventing their business models for unprecedented customer access, interaction, speed, and scale.”

Using Enterprise Architecture to provide a blueprint for digital strategy

Enterprise architecture consists of the following primary architecture domains.

  • Strategy
  • Performance Architecture
  • Business Architecture
  • Information/Data Architecture
  • Service/Application Architecture
  • Infrastructure/Technical Architecture
  • Business Transformation/ EA Roadmap

In addition to these usual enterprise architecture domains, I propose that further Architecture Domains are required for supporting a Digital Strategy.

Additional Architecture Domains  
Customer Architecture

 

Modelling the Customers’ own Environment, their processes, usage scenarios, customer journeys. Includes the communication channels used for communications directly to the customers and other external stakeholders.
Market Architecture Modelling the outside-in view of what is happening outside the organisation boundaries in the Environment in which the enterprise does business, Social media, Competitors, Competitors Value propositions.
Brand Architecture

 

The branding, value proposition, projected identity that provides value to the customers for the lifecycle of the business. Includes generic communication to the customer and market, advertising the brand and value propositions.

Figure 1 Enterprise Architecture for Digital Strategy

EA for Digital Strategy

Strategy

Obtain clarity on the goals, objectives and principles guiding your digital strategy Business strategy /Digital strategy

  • Mission
  • Vision
  • Business motivation model
  • Business Model
  • Goals and objectives

Market Architecture

Identify the environmental, industry and internal factors that are influencing the digital strategy.

  • Communities
  • Market environment
  • Modelling what the competition is doing
  • Assumptions
  • Networks
  • Competitors and their activities
  • Who else is in your space?
  • How do you differentiate?
  • Market trends
  • Topics
  • Hashtags
  • Media
  • Threats and opportunities
  • Gaps
  • Blue ocean
  • Search topics

Customer Architecture

As usual this means developing Business Scenarios and Customers Journeys, but also modelling the customers (potential and actual) own business processes.

These models will help to understand the customer touch points with the organisation and their desired brand and product experiences.

The Customer Architecture will also include a Connection Model to understand the relationships with customers, communities, to better understand the customers own information and process flows.

A current state Connection Model will capture the Communities, External online nodes, web sites, collaboration social networks (Facebook, Twitter), mobile platforms (IOS, Android) and cloud platforms (Evernote, Google Drive, DropBox, OneDrive) where content exists and customers will go to visit. This Connections model will also include Search sites (Google),

multimedia sites (Flickr), advertising (Ad-Words), entertainment and gaming sites eCommerce sites (Amazon, eBay ), Mobile applications (from Apple Store,  Google Play), Smart TV applications etc.

This is similar to a Context Diagram showing interaction between the Organisation and its Stakeholders, but in this case the organisation is not in the centre of the diagram and may not be shown at all in a current state (as-is) Connection Model. The organisation will however be shown in a target state Connection Model.

In a target state Connection model, it will be important to model how the organisations internal models will be coordinated and aligned to the Customers connection Model.

  • Outside-in perspectives
  • Obtain clarity on who the customer, consumer, partners are, their roles and their values.
  • VPECT.
  • Business Scenarios
  • Customers journeys
  • Wardley Models
  • Customers own processes
  • Understand the customer touch points and the desired brand and product experiences
  • Connect relationships with customers to better understand them over time
  • Customers own information and process flow
  • External online nodes, web sites, networks, platforms where content exists and customers visit
  • Communications
  • Obtain clarity on how the organisation means to listen and respond to consumers.
  • Multi-channel / Omni channel communications
  • Communications flows both ways via whatever channel the customer is comfortable with
  • Customers’ ideas
  • Many channels and many messages
  • Understanding and analysis of those messages
  • Gaining customers’ attention
  • Earning their trust
  • Customers motivation
  • How customers share content

Brand Architecture

A brand’s look and feel and tone of voice is as important as its identity, experiences and value proposition.

  • Creating brand experiences
  • Brands
  • Brand story
  • Brand Strategy – Developing a creative brand strategy that is fit for purpose, up to date and distinctive is key to establishing all marketing communications.
  • Who engages with your brand?
  • Selling the Experience
  • Understand the customer touch points and the intended brand and product experiences
  • Insights about Customers – observations that trigger innovations
  • Blue ocean strategies

The internal mode of the organisations Brand will need to be part of the Value Proposition model and show where the Brand messages will be projected.

  • Modelling what the customers will love to buy
  • Modelling how customers interact via social media
  • Causal loop model (system dynamics)
  • Modelling what customers are interested in.
  • Mapping to the value proposition
  • Minimum viable concept
  • Behaviour change model
  • Value and truth about the value propositions offered
  • Value propositions
  • Products
  • Business Services

Business Architecture

Business model canvas

Create the structure required to understand the business model required to realise your digital strategy

Create transparency and traceability across the market model, products and business services model, and the target operating model

Business capability model

  • Create a view of the organisational capabilities across people, process, information and technology required to deliver the brand and product experiences.
  • Capability assessment against goals and objectives
  • Business Capability based Requirements
  • Improve the way you manage your digital requirements
  • Business Capabilities can be informed by the user needs identified by using Wardley models

Manage information from data architecture and information security through to delivering key messages to the market environment

  • Content management
  • Understand the content management approach and how it is enabled.
  • Value of each bit of content.
  • Relationship of content to value proposition
  • System dynamics model (stocks and flows / cause and effect)
  • System thinking

Governance

Provide clarity over decision making across the digital architecture

Business Transformation / EA roadmap

Create an understanding of the extent at which your current capabilities are able to support your digital strategy

Create clarity of the EA roadmap required to support the digital strategy

Obtain consensus, commitment and support for your digital strategy and roadmap which we believe are critical to the success of your strategy

Performance architecture

Obtain clarity on your measures of success and identify plans to measure and monitor them

  • Investment case
  • Procurement
  • Programme/Project Portfolio management
  • Delivery plan

As usual if you don’t measure, then you can’t manage. However, it is surprising just how many enterprises fail to measure anything at all, including what they have done and what they plan to do.

  • Define Metrics and create measures
  • Critical Success factors
  • Capability Maturity models

Business Architecture

23 March 2013

Tom Graves recently participated in an Open Group TweetJam on Business Architecture. You can read about the results of this at http://weblog.tetradian.com/2013/03/20/opengroup-on-bizarch/

Unfortunately I didn’t hear about this in time to participate but I thought I’d record my own thoughts here.

The questions were:

  1. How do you define Business Architecture?
  2. What is the role of the business architect? What real world business problems does Business Architecture solve?
  3. How is the role of the business architect changing? What are the drivers of this change?
  4. How does Business Architecture differ from Enterprise Architecture?
  5. How can business architects and enterprise architects work together?
  6. What’s in store for Business Architecture in the future?

How do you define Business Architecture?

Business Architecture is one of the primary domains within Enterprise Architecture. It deals with the architecture of the business, ideally from a business perspective and is expressed in business terminology.

It should not really be considered a separate discipline from Enterprise Architecture but often is by those who persist in misunderstanding that Enterprise Architecture is only about IT and not about the whole of the enterprise.

Business Architecture deals with the structure and design of how an enterprise operates, makes money or delivers value, how it organises itself in order to provide products and business services to its customers, clients and consumers. It should be expressed independently of how the business architecture will be mapped to the underlying application architecture and infrastructure architecture, but is more connected to the business/contextual view of the information/data architecture and will include the organisation architecture.

Business Architecture is centred on the business and the business strategy, not on IT or on the IT Strategy and should not be considered just a source of requirements for IT projects (which is the impression that TOGAF gives of Business Architecture).

In general Business Architecture includes the following deliverables:

BizArch deliverables
A Business Architect is primarily concerned with supporting and advising the senior executives, providing advice and guidance, and influencing decision making for the Business Architecture domain.

 

What is the role of the business architect? 

As a specialised type of Enterprise Architect, they are in a leadership role, close to business management working for the CxOs to evaluate and elaborate possible future strategic scenarios.

They have a responsibility to guide, recommend and oversee the realisation of the business strategies identified by the CxOs, but they don’t control the business strategy or make the actual investment and strategic change decisions.

What real world business problems does Business Architecture solve?

As a type of Enterprise Architect, a Business Architect deals with strategic change, business transformation activities concerning topics such as:

  • Ecommerce changes
  • Consolidation
  • Cost reduction
  • Process improvement and efficiency
  • New organisation design
  • Mergers & Acquisitions
  • Reuse of shared services
  • New markets
  • Regulatory and legal changes

One should not forget that, by definition, an Enterprise Architecture model covers everything about the enterprise including the environment and market which it operates in, its Business Strategies, its Business Architecture as well as the rest of the Enterprise Architect domains.

How is the role of the business architect changing? What are the drivers of this change?

The role of a Business Architect is becoming much more distinct than it has been. many organisations are maturing their enterprise architecture functions that were previously just centred on IT architecture and are now specifically introducing a Business Architect role.

How the Business Architect role differs from other roles such as a Business Analyst, Business Change manager, Business Transformation Manager etc. is still playing out. I discussed this to some extent in a previous blog post – The difference between a Business Architect and a Business Analyst.

Another current difference is that a Business Architect is often closely associated with the Business units (and perhaps reports to a business line manager of sorts) and therefore is seen as being on the ‘Demand’ side of a business, whereas the rest of the Enterprise Architects (including IT Architects) are often lumped into the IT department and therefore are seen as being on the ‘Supply’ side. In theory, the Enterprise Architects, including Business Architects, should only ever be on the ‘Demand’side and not seen as part of IT. They should report to the CxOs, ideally seen as part of a CEO Office.

How does Business Architecture differ from Enterprise Architecture?

A Business Architect is a type of (a ‘real’) Enterprise Architect. Business Architecture is a sub domain of Enterprise Architecture.

EA domains

How can business architects and enterprise architects work together?

Of course they can. The distinction in the question is artificial anyway, since a Business Architect is just a type of Enterprise Architect that specialises in the Business Architecture domain.

But in reality many organisations do have an unfortunate  tendency to make up their own interpretation of what these roles actually are.

What’s in store for Business Architecture in the future?

We will see more and more Business Architecture roles in the future as organisations mature their enterprise architecture strategy and capabilities, and they realise that they need to get to grips with their business model and how it is realised. They will need Business Architects to help them do that.

Business Architecture

For most enterprises embarking on large scale strategic planning and business transformation programmes it is all about staying robust, viable and efficient, continuing to deliver good outcomes and value to their customers/consumers/clients in the future. Enterprises should be wanting to stay competitive and efficient and beat the competition.
If the enterprise is to succeed, it must make strategic decisions and investments in change based on a thorough architectural gap analysis/impact analysis that is only possible with business architecture as a key part of their enterprise architecture function.

When establishing (or indeed re-establishing) a brand new Enterprise Architecture function within an organisation there are perhaps two main approaches:

  • A big bang approach
  • A gradual iterative incremental approach

I favour the big bang approach. This is for several reasons:

1) a big bang send a clear and confident message to everyone in the organisation that things WILL be done differently

2) a big bang provides a clear mandate, mission, vision and positioning for the Enterprise Architects, sidetracking threats and challenges from others who feel threatened by the emergence of EA

3) a big bang ensures that the Enterprise Architecture function is given a solid budget and is established through a strategic change programme, complete with programme manager

4) a big bang has clear reporting to the CEO or appropriate C-level executive (since responsibilities vary from company to company) and clearly defined outcomes

5) a big bang needs clearly visible and continuous [sic] executive support

6) a big bang must have clear goals, objectives, measures, performance targets etc. Enterprise Architecture must be part of the business strategy to improve the organisation’s effectiveness and profitability.

7) a big bang ensures that proper effort is made choosing an appropriate EA framework, Meta Model, Process and EA tool

8) a big bang is JFDI on a large scale – get the whips and carrots out and get it done right first time ! Make it So !

Don’t get me wrong, iterative approaches do work well with established processes such as software development, but not for the introduction of new functions and processes that haven’t previously existed.

Establishing an EA function in small iterations is giving ammunition to challengers and doubters. There tends to be no mandate, no or limited budget, a quick and dirty mindset, limited access to experienced consultants, no EA tools, overall limited maturity.

It sends a message to the staff that the executive management is not sure, is not confident, and won’t invest in the success of Enterprise Architecture.

It’s a bit like changing governments, you don’t do that iteratively do you?

As Niccolo Machiavelli once said ‘Tardiness often robs us (of) opportunity, and the dispatch of our forces’.

We are used to the idea of a Programme/Project Management Office (PMO) but often organisations fail to understand (or perhaps deliberately misunderstand) what the Enterprise Architecture function does. I propose that the Enterprise Architecture function is, in effect, an Office of the CEO, or an Office of the CEO and Strategic Change Management.

The book ‘Enterprise Architect as Strategy’ (http://www.architectureasstrategy.com/book/eas/ ) gives us the right way of thinking and talking about what enterprise architecture is for – creating a foundation for the execution of the Business Strategy.

This book is an essential read for senior executives, business leaders and enterprise architects.

Many people within an organisation will understand the big picture view of the business strategy, such as the CEO of course, but perhaps only at a shallow level of detail.

Would the C-level executives understand all the potential nuances and wrinkles that come with that business strategy? Perhaps not unless they were a ‘details’ person.

What does the CEO do? They will spend time in evaluating ideas, formulating the mission and vision of their orgnaisation, innovating the business model to ensure the company remains competive in their market, looks for future opportunities for expansion and carving out a niche market.

It is the Enterprise Architect who has the job of maintaining the big picture on the behalf of the CEO, in sufficient detail to ensure that it becomes a knowledge base to support the executive’s decision making and help them to realise the business strategy and govern the implementation of that strategy.

In this way the Enterprise Architecture function is effectively the Office of the CEO,  providing strategic support to the CEO and the other C-level executives. It’s also worth stating here that effective companies focus on enterprise architecture and don’t jump straight into IT architecture. Enterprise Architecture is not the same discipline as IT Architecture.

We can look at the the Enterprise Architecture function in terms of Deming’s Plan-Act-Do-Check process improvement process:

PLAN

The CEO and other C-level executives will stablish the mission, vision, goals, objectives, principles and metrics to identify the main outcomes of the business strategy.

The Enterprise Architect will help executives, business leaders and strategic planners to develop the business model, operating model, and other enterprise architecture models supporting business model innovation

DO

The CEO and other C-level executives will evolve and innovate the Business Model.

The Enterprise Architect will take the business strategy and business model and support the development of the target operating model,  communicate the business strategy, model the target and interim enterprise architecture models, plan an EA roadmap of strategic initiatives, identify and define the required capabilities, define the mandates for the investment programmes and key projects, define standards and process improvements. They will usually define the IT strategy to ensure that it fits with the business strategy rather than being developed in isolation (as unfortunately often happens).

CHECK

The Enterprise Architect will perform EA governance, compliance and design assurance against those programes & projects implementing the strategic changes and new capabilities. They will perform gap analysis and impact analysis, measuring the performance and compare the results against the expected outcomes.

ACT

All the while the Enterprise Architect will report to the CEO and act as their trusted advisor. They will analyze the gaps, risks, costs, issues, assumptions and dynamics to determine their cause and determine where to apply further strategic changes in the next iteration of the cycle and improve the overall maturity level of the enterprise.

The mission of Enterprise Architecture is to improve the implementation and excecution of the business strategy, ensuring that the enterprise will survive, continue to develop and remain profitable in the future.

An interesting example to look at is the US Department of Health and Human Services which has established an Office of Enterprise Architecture as part of the Office of the CIO.  http://www.hhs.gov/ocio/ea/index.html

Activities of the Office of Enterprise Architecture

As the the book ‘Enterprise Architect as Strategy’ says – ‘When it comes to executing your Business Strategy your Enterprise Architecture may matter more than your strategy itself… ’

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