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BUSINESS ANALYSIS CONFERENCE EUROPE 2014 | ©ENTERPRISE ARCHITECTS | PAGE 1 A Practical Application of Business Architecture APPLYING BUSINESS ARCHITECTURE PRESENTED BY: David O’Hara Principal Consultant, EMEA

Practical Application of Business Architecture

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What does “Business Architecture” mean? How do we create a Business Architecture? And critically how do we practically apply it to help inform strategic decisions and investments? This talk will demonstrate the key points in creating a Business Architecture, the major artefacts and how to apply them. Introduction : What is a Business architecture & why do we need one? The Strategic Context: capturing and articulating business motivation The value system and the business value chain The Business Capability view What is a Business Capability?: How do we describe a Capability? Identifying strategically important Capabilities Measuring Capability maturity and gaps Views and viewpoints: Business & Technology Pain points Programme overlay: Are we investing in the right capabilities & applications to address them? Architecture interconnects: Business Architecture, Enterprise Architecture and the Strategic Roadmap Creating traceability from IT decisions to business goals Throughout a Case Study from Financial Services will be used to illustrate the approach

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Page 1: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 1

A Practical Application of Business Architecture

APPLYINGBUSINESS ARCHITECTURE

PRESENTED BY:David O’HaraPrincipal Consultant, EMEA

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PRACTICAL APPLICATION OF BUSINESS ARCHITECTURE 

› Introduction

› What is Business Architecture?

› Case Study: InsureCo

› Understanding Business Motivation› The Capability View and the Business ‘Anchor’

Model› Capability Model Overlays

› Measuring Capability Maturity

› Capabilities and Applications

› The Strategic Roadmap

› Summary

› Q&A

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INTRODUCTION

› 20 years in Business-facing roles in the IT industry, mostly private sector (Telco, Retail, FS…)

› Practice Manager (EMEA) at Enterprise Architects

› Business Architecture practitioner & trainer

› Specialising in Business Architecture over 9+years:

» Business Engagement

» Business Motivation

» Capability Driven Planning

» Enterprise Roadmaps

» Building EA PracticesDAVID O’HARA

Enterprise / Business Architect

TWITTER:

@DaveO_EA

BLOG:

www.davidaohara.com

EMAIL:

[email protected]

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JOIN THE DISCUSSIONFIND US AT:

Follow our blog: enterprisearchitects.com

@enterprisearchs @eatraining @daveo_ea

enterprise-architects

enterprisearchitects

EntArchitectsEA

Subscribe to our mailing list:[email protected]

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UNDERSTANDING BUSINESS

ARCHITECTURE

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WHAT IS BUSINESS ARCHITECTURE?

We like to refer to it as “The design of business”

It is about giving strategic business objectives greater clarity and structure by describing how they translate into

operations.

The goal of Business Architecture is to operationalise business strategy, thereby helping business leaders avoid a

risky leap directly from strategy to specific project investments.

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EN

TE

RP

RIS

E

AR

CH

ITE

CT

UR

E

OUTCOMES

Business Architecture provides the crucial business context for the ‘technical’ layers, aligning architecture ‘services’ to provide coherent business outcomes.

BUSINESS ARCHITECTURE IS AN INTEGRAL

PART OF THE ENTERPRISE ARCHITECTURE

BUSINESS

INFORMATION

APPLICATIONS

TECHNOLOGY

SER

VIC

ES

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POSITIONING BUSINESS ARCHITECTURE

Business Architecture must connect strategy to business and IT change

Implementation

Strategy

Business Architecture

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FAILURE POINTS BETWEEN STRATEGY & IMPLEMENTATIONIn navigating the minefield between strategy and execution there are multiple possible failure points

STRATEGY PROJECTS

Strategy not

sufficiently tied to operations

Needed capabilities not properly understood or

measured

Planners not accountable for

delivery

Benefits aren’t quantified or traced

back to original goals

The drivers of strategy are often

misaligned

Are we investing in the right areas across the enterprise?

Is my investment portfolio balanced across all of the

economic value add dimensions?

Are the strategic programs aligned, or for that matter, are they the right

strategic programs?

There is a lot of activity going on out there, how do I know we are

doing the right things?

Where can we take advantage of synergies across the major

strategic programs?

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HOW DOES BUSINESS ARCHITECTURE HELP?

Then establishing the resources that are needed by the capabilities and ensuring that architecture provides oversight at portfolio level

Business Architecture directly addresses the failure points between strategy and implementation…

Creating a clear view of the goals, value drivers and corresponding levers that drive the strategy and the target Business Model

Clearly linking the strategy to operations through CAPABILITIES

1

2

3

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ARE WE DOING BUSINESS ARCHITECTURE?Value increases when mandate increases.

EA = IT ArchitectureImprove project performance

EA = Enterprise-WideIT Architecture (EWITA)Improve enterprise wide program and portfolio performance

EA = Business Architecture (BA) + EWITAImprove Business Performance

EA = Strategic Enabler + BA + EWITAImprove Market Performance (Shareholder Value)

AB

VA

LU

E

M A N D A T E

C

E

EA = Product Architecture + BA + EWITAImprove Product/Service Performance

DBusiness Architecture is seen as a positive

progression away from IT

Maximise Product ProfitabilityMaximise Market Share

Maximise Customer Lifetime Value

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CASE STUDY: INSURECO

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OVERVIEW

› The business environment at INSURECo has become more challenging

› Requires greater focus on core competencies and what differentiates them from the competition

› New players are arriving on the scene with improved value propositions

› New techniques and technologies increase competitiveness

› Competitors are beginning to specialise and then turn to others to supplement capabilities that are not core competencies

The Exco Viewpoint

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INSURECO. BUSINESS DESIGN

INSURECo. need to re-assess their current business model with a remit to identifying areas for improvement and capability uplift.

Areas of focus include:

• Simplification,

• improved time to market,

• standardisation of products

• balancing the market mix for “on-demand” and “for need” products.

Understanding the current state view of the Business, Application, Information and Technology landscape

Producing a hypothesis of the desired future state based upon the business motivation

From this desired target state, perform a Gap Analysis to define the changes required to achieve the strategic goals

This gap analysis will form the basis of the IT transformation Roadmap

PROJECT STORY AREAS OF FOCUS

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UNDERSTANDING BUSINESS MOTIVATION

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WHAT IS THE BUSINESS MOTIVATION MODEL?

The language of strategic planning is often inconsistent. The BMM provides us with a Consistent Language to articulate business strategy.

“The BMM is a technique in which one determines an ultimate goal and determines the best strategy for attaining the goal in the current situation”

Mission

Strategies

Tactics

Vision

Goals

Objectives

A statement describing the aims, values and overall plan of an

organisation.

e.g. “To be the leading creator and protector of wealth.”

The strategic plan.

e.g. “Defend our current customer base to reduce churn and increase repeat business”

A concise statement of a desired change.

e.g. “To be the leading provider of wealth management services in our major target markets within the next 5 years.”

A high level statement of what the plan will achieve.

e.g. “Improve customer satisfaction (over the next five years)”

A Course of Action that channels efforts towards objectives

e.g. “Call first-time customers personally”

The outcome of projects improving capabilities, process, assets, etc.

e.g. “Develop an operational customer call centre by June 30, 2015”

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BUSINESS CAPABILITIES

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STRATEGIC COHERENCY

One of the ways we create coherence is

Through capability based planning.

Capability driven architectures are designed to support the strategic objectives of an organisation.

Mission

Strategies

Tactics

Vision

Goals

Objectives

OUTCOME

CAPABILITYPeople

Process

Technology

Information

Capabilities consist of people, process and technology

To fully understand a capability all these components must exist regardless of their maturity level

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WHAT IS A CAPABILITY?

› An ability that an organisation, person, or system possesses. Capabilities are typically expressed in general and high-level terms and typically require a combination of organisation, people, processes, and technology to achieve. For example, marketing, customer contact, or outbound telemarketing – The Open Group

› The power or ability to do something – Oxford English Dictionary

› Measure of the ability of an entity (department, organisation, person, system) to achieve its objectives, specially in relation to its overall mission – Business Dictionary

› The ability to perform or achieve certain actions or outcomes through a set of controllable and measurable faculties, features, functions, processes, or services – Wikipedia

Some Definitions…

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IDENTIFYING CAPABILITIES

› All enterprises have ‘capabilities’: Capabilities are the things the enterprise must be able to DO in order to fulfil its mission

› Capabilities will tend to persist over time

» What changes is the way in which the capability is fulfilled (the ‘How’), who is fulfilling the capability, where it takes place and their importance to the business strategy

› Capabilities are expressed as outcomes and should be agnostic of technology, product, organisational unit, etc.

» Meaning the same capability could be performed in different ways depending on context, channel, etc.

› Capabilities can be described in a simple one-page view… the Business Capability Model

Some Guidelines…

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BUILDING THE CAPABILITY MODEL: THE VALUE CHAIN

Value Activity 1

Value Activity 2

Value Activity 3

Margin

Every firm is a collection of activities that are performed to design, produce, market, deliver and support its products and services

The value activities are the building blocks by which a firm creates products which are valuable to its consumers

So… the key value-driving activities are a starting point to help identify key capabilities required by your value chain

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THE BUSINESS ‘CAPABILITY MODEL

The capability model represents the "map" of the organisation…

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THE BUSINESS CAPABILITY MODEL

…and like a map of a city, the business anchor model can have many overlays, each communicating a different message based on the same underlying structure

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INSURE Co. Business Capability Model Business Capability Model

Version: 2.0.0Created: 18/03/2014 by Enterprise ArchitectsUpdated: 15/05/2014 by Enterprise ArchitectsSources: INSURE Co. Business Capabilities

Description: A Business Capability Model provides an anchor point for defining the organisation on a page, giving the stakeholders an overall view of the business. This identifies the organisation’s Products, Services & Channels, supported by the Core and Enabling Capabilities. Partners, Suppliers, Stakeholders and Regulatory Bodies have been identified in relation to the overall organisation.

Concerns Addressed: What are the capabilities required to support the strategic direction and deliver consistent outcomes?

Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Solution Managers, Solution Designers, IT Operations, Project Teams and Architects

© Enterprise Architects (Vic) Pty Ltd 2014

Organisational Structure

Products & Services

Core Value Creating CapabilitiesPartners

Suppliers

Channels

Stakeholders

Auditors & Regulatory Bodies

Operations

Market Development and SourcingMarket Development and Sourcing Productising and BundlingProductising and Bundling Sales and DistributionSales and Distribution ServicingServicing

Business Development & Sales

Leads Generation

Leads Management

Broker Management

Strategic Pipeline

Tactical Pipeline

Policy Acquisition

Needs Analysis

Product Selection

Quotation & Illustration

Application

Tenders

Shared Services

CEO

Head of Strategy & Planning

Head of Advisor Services

Head of Group Insurance

Strategy Delivery Manager – Distribution & Marketing

Head of Direct Marketing

Chief Information Officer Chief Investment OfficerChief Distribution & Marketing Officer Chief Finance Officer General Counsel & Company Secretary

Chief Risk Officer

Reinsurance Administration Manager

Head of Financial Control

Taxation Manager

Management of Reporting Actuary

Retirement Planning

Life Insurance

Accident Insurance

Health Insurance

Employee Benefits

Credit LifePension Service

Group Retail Direct

Operations Management

Document Management Business Process ManagementDecisional & Business

IntelligenceProcess Execution Resource AllocationKnowledge Management

Operational Performance Management

Operations Quality ManagementTechnical Operations Training

Strategy & Execution

Strategy Research

Strategy PlanningStrategy

ManagementProject Portfolio

SelectionProject Portfolio

PrioritisationBenefits

RealisationProject Execution

Government Policy

Change Management

Enterprise Architecture

Finance & Actuarial

InvestmentCapital

ManagementActuarial

Financial Accounting

Facilities Management

Financial Management &

Analysis

Statutory & Regulatory Reporting

Procurement Management

Cash Management

Human Resource Management

Employee Development &

Training

Employee Performance Management

Succession Planning

Employee Retention

Workforce Planning

Talent Recruitment and

Sourcing

Talent Development &

Training

Candidate Assessment and

Selection

Talent Redeployment &

Retirement

Employment Offers &

Contracts

Information Technology Management

Architecture Management

IT Vendor Relationship Management

IT Security & Risk Management

Application Development

Process Execution

IT Service Delivery

Disaster Recovery

Infrastructure

External Relationship Management

Regulatory Relationship Management

Investor Relationship Management

Government & Industry Relationship

Management

Directors Relationship Management

Legal & Ethical Management

Public Relations Management

External Administration Management

Legal & Compliance

Due DiligenceContract

ManagementCompany Secretary

Advice Provisioning

Compliance

Underwriting and Risk Management

Underwriting ReinsuranceCorporate Risk Management

Business Continuity

ManagementInternal Audit

Performance Management

Product/Channels Profitability

Management Reporting

Reinsurers

Banks

Sponsors

Agencies

Brokers

Banks

Reinsurers

Medical Practitioners

Law Firms

Recruitment Firms

Government and Legislation

Regulatory Bodies

Industry Groups

Media

Market Sophistication

Marketing

Market & Data Analytics

Campaign Management

Product Launch

External Market Communications

Brand Management

Promotions

Advertising

Channel Marketing

Internal Sales Tools

Product Manufacturing & Maintenance

Product Research

Product Development

Product Packaging

Reinsurance

Pricing

Product Management

Product Service

New Business

Underwriting

Policy Owner Service (POS)

Recurring Claims Management

Lump Sum Claims Management

Delivery Method Registration

Policy Administration

Consolidated Reporting

Value Transaction Management

Premium Management

Payments Management

Customer Service

Claims Management

Enquiries

Complaints Management

Retention

On-boarding

Adviser Remuneration

Client Development

Specialist Training

Client Servicing

Partner Strategy & Support

Client Communications

Adviser Relationship Management

Sponsorship Renewals

Dealership Relationship Management

Consulting

Chief HR Officer Chief Operations Officer

Customer Services Leader

Operations Leader: Underwriting & Individual Life Relationships

Operations Leader: Administration & Partner Support

Operations Leader: Claims

INSURECO CAPABILITY MODEL

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CAPABILITY MATURITY

› Capabilities can be assessed for their current and required maturity level

› Target State Maturity is assessed relative to the strategic importance of the capability

› Capabilities can be assessed at a high level, or at more granular level along the dimensions of People, Process, Information and Technology

› Meaning the assessment can be rolled-up or drilled-down into specific areas as necessary

Consider both current and target state maturity

Low Maturity(Ad Hoc)

Medium Maturity(Repeatable)

Med-High Maturity (Defined/Managed)

High Maturity(Optimized)

1 2 3 4

T A R G E T S T A T E M A T U R I T Y

C U R R E N T S T A T E M A T U R I T Y

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INSURE Co. Business Capability Model with Current Maturity Overlay Business Capability Model

Version: 3.0.0Created: 18/03/2014 by Enterprise ArchitectsUpdated: 15/05/2014 by Enterprise ArchitectsSources:

Description: A Business Capability Model provides an anchor point for defining the organisation on a page, giving the stakeholders an overall view of the business. This overlay describes the level of maturity of the capabilities that have been assessed.

Concerns Addressed: What are the capabilities required to support the strategic direction and deliver consistent outcomes? What are their levels of maturity?

Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Solution Managers, Solution Designers, IT Operations, Project Teams and Architects

© Enterprise Architects (Vic) Pty Ltd 2014

Maturity

Operations

Core Value Creating Capabilities

Market Development and Sourcing Productising and Bundling Sales and Distribution Servicing

Shared Services

Low Maturity(Ad hoc)

Low-Medium Maturity(Developing)

Medium Maturity(Repeatable)

Medium-High Maturity (Defined/Managed)

High Maturity(Optimised)

Maturity Unknown (Not Assessed)

Marketing Customer ServiceBusiness Development & Sales

Client Development

Product Manufacturing & Maintenance

Product Service

Operations Management

Strategy & Execution

Finance & Actuarial

Human Resource Management

Information Technology Management

Underwriting and Risk Management

Legal & Compliance

External Relationship Management

Performance Management

Value Transaction Management

Process ExecutionDocument Management Resource AllocationBusiness Process Management Knowledge ManagementDecisional & Business Intelligence

Premium Management

Payments Management

New Business

Underwriting

Policy Owner Service (POS)

Recurring Claims Management

Policy Administration

Consolidated Reporting

Lump Sum Claims Management

Delivery Method Registration

Claims Management

Enquiries

Complaints Management

Retention

On-boarding

Adviser Remuneration

Leads Generation

Leads Management

Broker Management

Needs Analysis

Product Selection

Quotation & Illustration

Strategic Pipeline

Tactical Pipeline

Policy Acquisition

Application

Tenders

Specialist Training

Client Servicing

Partner Strategy & Support

Renewals

Consulting

Dealership Relationship Management

Sponsorship

Client Communications

Adviser Relationship Management

Product Research

Product Development

Pricing

Product Management

Product Packaging

Reinsurance

Market & Data Analytics

Campaign Management

Product Launch

External Market Communications

Brand Management

Promotions

Advertising

Internal Sales Tools

Channel Marketing

Operational Performance Management

Operations Quality ManagementTechnical Operations Training

Employee Development & Training

Employee Retention

Talent Recruitment and Sourcing

Candidate Assessment and Selection

Succession Planning

Talent Development & Training

Employment Offers &

Contracts

Government & Industry Relationship Management

Employee Performance Management

Workforce Planning

Talent Redeployment & Retirement

Regulatory Relationship Management

Directors Relationship Management

Legal & Ethical Management

External Administration Management

Investor Relationship Management

Public Relations Management

Product/Channels Profitability

Management Reporting

Corporate Risk Management

Underwriting Business Continuity Management

Internal AuditReinsurance

Company Secretary

Due Diligence Advice Provisioning

ComplianceContract Management

Architecture Management

Application Development

IT Service Delivery

IT Security & Risk Management

Disaster Recovery

IT Vendor Relationship Management

Process Execution

Infrastructure

Investment Financial Accounting

Financial Management & Analysis

Procurement Management

Actuarial Statutory & Regulatory Reporting

Capital Management

Facilities Management

Cash Management

Strategy Research

Project Portfolio Selection

Benefits Realisation

Government Policy

Strategy Management

Project Execution

Enterprise Architecture

Strategy Planning

Project Portfolio Prioritisation

Change Management

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INSURE Co. Business Capability Model with Applications Overlay

Business Capability Model

Version: 2.0.0Created: 18/03/2014 by Enterprise ArchitectsUpdated: 15/05/2014 by Enterprise ArchitectsSources:

Description: A Business Capability Model provides an anchor point for defining the organisation on a page. This overlay identifies what applications are used to support the capabilities within the organisation.

Concerns Addressed: What are the capabilities required to support the strategic direction and deliver consistent outcomes? What are the applications that are used to support the capabilities? What are the lifecycle statuses and Business/IT fit for these applications?

Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Solution Managers, Solution Designers, IT Operations, Project Teams and Architects

© Enterprise Architects (Vic) Pty Ltd 2014

Operations

Core Value Creating Capabilities

Market Development &

SourcingProductising and Bundling Sales and Distribution Servicing

Business Development & Sales

Shared Services

Operations Management

Strategy & Execution

Finance & Actuarial

Human Resource Management

Employee Development & Training

Employee Performance Management

Succession Planning

Employee Retention

Workforce Planning Talent Recruitment and Sourcing

Talent Development & Training

Candidate Assessment and Selection

Talent Redeployment & Retirement

Employment Offers & Contracts

Information Technology Management

Architecture Management

IT Vendor Relationship Management

IT Security & Risk Management

Application Development Process Execution IT Service Delivery

Disaster Recovery

Infrastructure

External Relationship Management

Regulatory Relationship Management

Investor Relationship Management

Government & Industry Relationship Management

Directors Relationship Management

Legal & Ethical Management

Public Relations Management

External Administration Management

Legal & Compliance

Due Diligence

Contract Management

Company Secretary Advice Provisioning

Compliance

Underwriting and Risk Management

Performance Management

Product/Channels Profitability Management Reporting

Marketing

Market & Data Analytics

Campaign Management

Product Launch

External Market Communications

Brand Management

Promotions

Advertising

Channel Marketing

Internal Sales Tools

Product Manufacturing & Maintenance

Product Research

Product Development

Product Packaging

Reinsurance

Pricing

Product Management

Product Service

New Business

Underwriting

Policy Owner Service (POS)

Delivery Method Registration Policy Administration

Consolidated Reporting Value Transaction Management

Premium Management

Payments Management

Customer Service

Claims Management

Enquiries

Complaints Management

Retention

On-boarding

Adviser Remuneration

Client Development

Specialist Training

Client Servicing

Partner Strategy & Support

Client Communications

Adviser Relationship Management

Sponsorship

Renewals

Dealership Relationship Management

Consulting

Investment Capital Management Actuarial Financial Accounting Facilities Management

Financial Management & Analysis

Statutory & Regulatory Reporting

Procurement ManagementCash Management

Document Management Business Process Management

Decisional & Business Intelligence

Process Execution Resource Allocation

Operational Performance Management

Operations Quality Management

Technical Operations Training

Knowledge Management

Underwriting Reinsurance Corporate Risk Management

Business Continuity Management

Internal AuditStrategy Research

Strategy Planning

Strategy Management

Project Portfolio Selection

Project Portfolio Prioritisation

Benefits Realisation

Project Execution Government Policy

Change Management

Enterprise Architecture

43 DirectorConnect

ViewPoint

FACFilter

45 Quality Center

4SharePoint

TimePro45 Quality Center 4Subversion

4SharePoint 34Service Desk

Express (SDE)4SharePoint 4SharePoint

22Contractor

Verification System44 Taleo

41HR Forms Automation

44 Taleo

41HR Forms Automation

44 Taleo

42 SAP ERP HCM33 FinPlan

41HR Forms Automation

TimePro

23 Portal

33 FinPlan

33 WFP BI Reports33 SkillportLMS

42 SAP ERP HCM 42 SAP ERP HCM42 ESS

42 MSS 42 SAP ERP HCM

43 DirectorConnect

Moody's Credit

5Bloomberg 2Portia 2Portia 54 Sun Accounts

23 DCS

43 ProphetActuarial OLAP TimePro54 Sun Accounts 2Portia

54 Sun Accounts

44 Vision (PMQ&A) 2Portia

54 Sun Accounts

34 CashDesk

53 iPOS

54 Sun Accounts

23 DCS

43 Prophet

32 Sales Reports

Actuarial OLAP 32 SLA Reports

3SLAM32 Sales Reports

43 ACT!

32Content

Manager 5.3

54 Case360

44 Compass

34 LifeApp

23 New Business

OpenPages45 Quality Center

TimePro

44eApp Express

Online

32Content

Manager 8.4

44eApp Express

Mobile

32 OLAS

42 Claims

44 Compass

4SharePoint34Service Desk

Express (SDE)

22 TeamTrack32Content

Manager 5.3

54 Case360

32Content

Manager 8.4

45 Quality Center

22 Eric Stats34Service Desk

Express (SDE)

22 TeamTrack

32Content

Manager 5.3

54 Case360

32Content

Manager 8.4

22 Eric Stats

32 SLA Reports

32 Sales Reports

Inbound Mail

44 Kofax Capture

Outbound Mail

Policy Notices

4SharePoint

32Content

Manager 5.3

ECS

Batch Printing

54 Case360

32Content

Manager 8.4

32Content

Manager 5.3

22 Eric Stats

32 SLA Reports

22 TeamTrack

54 Case360

32Content

Manager 8.4

3SLAM

4 CampaignMaster

3Data Exchange

Portal

4 CampaignMaster

4 CampaignMaster

43INSURECo

Website

4 CampaignMaster

4 CampaignMaster

5The Hive

32Content

Manager 5.3

54 Case360

42 Claims

44 Compass

32Content

Manager 8.4

32 OLAS

43 Group Website

44 Voice Recording

34Service Desk

Express (SDE)42 Claims

32 DM Sales Portal

44eApp Express

Online

22CCI

Spreadsheets

44 Compass

44eApp Express

Mobile

42 Adviser Site

Commissions 32 OLAS

44 Compass

Inbound Mail

Outbound Mail

22 TeamTrack

33 eClaims

23 New Business

42 Adviser Site

CUCCX

44 Compass

3Data Exchange

Portal

32 OLAS

33Priceline Sales

Portal

24 INSA

34 LifeApp

23 New Business

Leads Generation

Leads Management

Broker Management

Strategic Pipeline

Tactical Pipeline

Policy Acquisition

Needs Analysis

Product Selection

Quotation & Illustration

Application

Tenders

3Data Exchange

Portal 43 ACT!

32 DM Sales Portal

33Priceline Sales

Portal24 INSA

34 LifeApp

33Priceline Sales

Portal

24 INSA

34 LifeApp

32 DM Sales Portal

44eApp Express

Online

44eApp Express

Mobile

33Priceline Sales

Portal

24 INSA

34 LifeApp

32 DM Sales Portal

44eApp Express

Online

44eApp Express

Mobile

Inbound Mail

33Priceline Sales

Portal

24 INSA

34 LifeApp

32 DM Sales Portal

44eApp Express

Online

44eApp Express

Mobile

43 ACT!

32 OLAS

43 ACT!

42 Adviser Site

CUCCX

43 Group Website

44 Voice Recording

42 Adviser Site Policy Notices

43 Group Website

2Group Renewal Spreadsheets

32 OLAS

Policy Notices

22CCI

Spreadsheets

44 Compass

IQM+

32 OLAS

42 Claims

44 Compass

32 DM Sales Portal

44eApp Express

Online

42 Claims

44 Compass

44eApp Express

Mobile

33 eClaims

32 DM Sales Portal

44eApp Express

Online

44 Compass

44eApp Express

Mobile

24 INSA

44eApp Express

Online

44 Compass

44eApp Express

Mobile

33 eClaims

32 OLAS

34 LifeApp

23 New Business

32 OLAS

33Priceline Sales

Portal

24 INSA

34 LifeApp

23 New Business

43 Prophet

32 OLAS

33Priceline Sales

Portal

34 LifeApp

23 New Business

43 Prophet

42 Claims 34 NAB Connect

AMEX BAS

Billing Extract

44 Compass

12 ELSA VUL

34 NAB Connect

44 NAB Transact

32 OLAS

Payment Dishonors

33 Receipting

42 Adviser Site Policy Notices

43 Group Website

Recurring Claims Management

32Content

Manager 5.3

54 Case360

42 Claims

32 Compass

32Content

Manager 8.4

Inbound Mail

Outbound Mail

22 TeamTrack

33 eClaims

23 New Business

Lump Sum Claims Management

32Content

Manager 5.3

54 Case360

42 Claims

44 Compass

32Content

Manager 8.4

Inbound Mail

Outbound Mail

22 TeamTrack

33 eClaims

23 New Business

42 Adviser Site

CUCCX

Batch Printing

44 Compass

43 Group Website

Inbound Mail

Outbound Mail

23 New Business

44 Voice Recording

32Content

Manager 5.3

CUCCX

54 Case360

44 Compass

32Content

Manager 8.4

Inbound Mail

32 OLAS

Outbound Mail

12 ELSA VUL

44 Voice Recording

44eApp Express

Online

44eApp Express

Mobile

34 LifeApp

23 New Business

32Content

Manager 5.3

54 Case360

44 Compass

32Content

Manager 8.4

12Excel (WFP Analytics)

MS ILM

LegendApplication Lifecycle

Business Fit

Technology Fit

Emerging

Core

Contain

Retire

High Technical Fit

Low Technical Fit

Medium Technical Fit

Medium Business Fit

Low Business Fit

High Business Fit

Emerging - Potentially High relevance, processes and ecosystem still developing Application - this application has identified potential to change the cost/value, efficiency/effectiveness of our services, and we are at a point where work is required to achieve that potential, proof of concept/initial deployments are Underway or completed. Financial - there is an investment cycle with a strong ROI, though possibly with benefits outside of the immediate project. Organisational - this will assist in supporting our organisational maturity goals through improving process, skills, readiness and/or capability. Design patterns are actively being developed or refined. Usage & Governance – Projects may consider using these applications where there is justification. However projects must be aware that service management organisation, tools and processes will likely be immature. Projects promoting the use of “Invest” applications must seek adoption signoff from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture before commitment to use can be assumed. Core - High relevance; processes and ecosystem in place Application - this is a fundamental and valuable application and is the current standard. It is well understood and there is no risk in attempting to extract ongoing value from its use. Financial - costs are known and understood. There is good ROI for maintenance; either upgrading early or leap-frogging some upgrade steps. Cost models clearly identify the whole service stack and components are managed to the whole service. Organisational - all staff in the support pyramid(s) understand the key controls and SLAs around this application. There is no tinkering, instead there is a process for continuous improvement. Usage & Governance – Projects should specify the use of Core Applications where available in the knowledge they are fully supported by service management and operational capabilities. Contain - Falling relevance; ageing processes and ecosystem Application/Financial - this installation is not to be extended in use. Where possible changes will not occur to the existing environment - it is to be allowed to age towards sunset with minimal additional spend. Organisational - Operations and security levels are to be maintained, there needs to be a process to manage changes required for continued operation, and to keep skills for the duration. Lifecycle Management - A replacement strategy, if required, must be in place for all applications with this status. Usage & Governance – Projects should generally avoid use of Contain Applications as they are invariably subject to near or medium term sunset. Any circumstance which promotes extended use of Contain applications must be seek exemption from <Insert Appropriate Governance Authority> before commitment to use can be assumed. Retire - Avoidance; specialist (non-core) resources and processes required to keep in the environment Application/Financial - Spend and change must only occur as part of projects that assist in removal of this application. Organisational - All change requires formal approval from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture, which will only occur where it contributes towards Retiring the application, or meets a mandatory requirement due before exit is complete. Lifecycle Management - Applications which cannot readily be removed will be ring-fenced. If this approach is taken, design patterns must exist for working with the application. Usage & Governance – Must avoid use of Exit Applications as they are subject to defined decommissioning strategy. Any circumstance which promotes extended use of Exit applications must seek exemption from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture before usage approval can be given.

INSURE Co. Business Capability Model with Applications Overlay

Business Capability Model

Version: 2.0.0Created: 18/03/2014 by Enterprise ArchitectsUpdated: 15/05/2014 by Enterprise ArchitectsSources:

Description: A Business Capability Model provides an anchor point for defining the organisation on a page. This overlay identifies what applications are used to support the capabilities within the organisation.

Concerns Addressed: What are the capabilities required to support the strategic direction and deliver consistent outcomes? What are the applications that are used to support the capabilities? What are the lifecycle statuses and Business/IT fit for these applications?

Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Solution Managers, Solution Designers, IT Operations, Project Teams and Architects

© Enterprise Architects (Vic) Pty Ltd 2014

Operations

Core Value Creating Capabilities

Market Development &

SourcingProductising and Bundling Sales and Distribution Servicing

Business Development & Sales

Shared Services

Operations Management

Strategy & Execution

Finance & Actuarial

Human Resource Management

Employee Development & Training

Employee Performance Management

Succession Planning

Employee Retention

Workforce Planning Talent Recruitment and Sourcing

Talent Development & Training

Candidate Assessment and Selection

Talent Redeployment & Retirement

Employment Offers & Contracts

Information Technology Management

Architecture Management

IT Vendor Relationship Management

IT Security & Risk Management

Application Development Process Execution IT Service Delivery

Disaster Recovery

Infrastructure

External Relationship Management

Regulatory Relationship Management

Investor Relationship Management

Government & Industry Relationship Management

Directors Relationship Management

Legal & Ethical Management

Public Relations Management

External Administration Management

Legal & Compliance

Due Diligence

Contract Management

Company Secretary Advice Provisioning

Compliance

Underwriting and Risk Management

Performance Management

Product/Channels Profitability Management Reporting

Marketing

Market & Data Analytics

Campaign Management

Product Launch

External Market Communications

Brand Management

Promotions

Advertising

Channel Marketing

Internal Sales Tools

Product Manufacturing & Maintenance

Product Research

Product Development

Product Packaging

Reinsurance

Pricing

Product Management

Product Service

New Business

Underwriting

Policy Owner Service (POS)

Delivery Method Registration Policy Administration

Consolidated Reporting Value Transaction Management

Premium Management

Payments Management

Customer Service

Claims Management

Enquiries

Complaints Management

Retention

On-boarding

Adviser Remuneration

Client Development

Specialist Training

Client Servicing

Partner Strategy & Support

Client Communications

Adviser Relationship Management

Sponsorship

Renewals

Dealership Relationship Management

Consulting

Investment Capital Management Actuarial Financial Accounting Facilities Management

Financial Management & Analysis

Statutory & Regulatory Reporting

Procurement ManagementCash Management

Document Management Business Process Management

Decisional & Business Intelligence

Process Execution Resource Allocation

Operational Performance Management

Operations Quality Management

Technical Operations Training

Knowledge Management

Underwriting Reinsurance Corporate Risk Management

Business Continuity Management

Internal AuditStrategy Research

Strategy Planning

Strategy Management

Project Portfolio Selection

Project Portfolio Prioritisation

Benefits Realisation

Project Execution Government Policy

Change Management

Enterprise Architecture

43 DirectorConnect

ViewPoint

FACFilter

45 Quality Center

4SharePoint

TimePro45 Quality Center 4Subversion

4SharePoint 34Service Desk

Express (SDE)4SharePoint 4SharePoint

22Contractor

Verification System44 Taleo

41HR Forms Automation

44 Taleo

41HR Forms Automation

44 Taleo

42 SAP ERP HCM33 FinPlan

41HR Forms Automation

TimePro

23 Portal

33 FinPlan

33 WFP BI Reports33 SkillportLMS

42 SAP ERP HCM 42 SAP ERP HCM42 ESS

42 MSS 42 SAP ERP HCM

43 DirectorConnect

Moody's Credit

5Bloomberg 2Portia 2Portia 54 Sun Accounts

23 DCS

43 ProphetActuarial OLAP TimePro54 Sun Accounts 2Portia

54 Sun Accounts

44 Vision (PMQ&A) 2Portia

54 Sun Accounts

34 CashDesk

53 iPOS

54 Sun Accounts

23 DCS

43 Prophet

32 Sales Reports

Actuarial OLAP 32 SLA Reports

3SLAM32 Sales Reports

43 ACT!

32Content

Manager 5.3

54 Case360

44 Compass

34 LifeApp

23 New Business

OpenPages45 Quality Center

TimePro

44eApp Express

Online

32Content

Manager 8.4

44eApp Express

Mobile

32 OLAS

42 Claims

44 Compass

4SharePoint34Service Desk

Express (SDE)

22 TeamTrack32Content

Manager 5.3

54 Case360

32Content

Manager 8.4

45 Quality Center

22 Eric Stats34Service Desk

Express (SDE)

22 TeamTrack

32Content

Manager 5.3

54 Case360

32Content

Manager 8.4

22 Eric Stats

32 SLA Reports

32 Sales Reports

Inbound Mail

44 Kofax Capture

Outbound Mail

Policy Notices

4SharePoint

32Content

Manager 5.3

ECS

Batch Printing

54 Case360

32Content

Manager 8.4

32Content

Manager 5.3

22 Eric Stats

32 SLA Reports

22 TeamTrack

54 Case360

32Content

Manager 8.4

3SLAM

4 CampaignMaster

3Data Exchange

Portal

4 CampaignMaster

4 CampaignMaster

43INSURECo

Website

4 CampaignMaster

4 CampaignMaster

5The Hive

32Content

Manager 5.3

54 Case360

42 Claims

44 Compass

32Content

Manager 8.4

32 OLAS

43 Group Website

44 Voice Recording

34Service Desk

Express (SDE)42 Claims

32 DM Sales Portal

44eApp Express

Online

22CCI

Spreadsheets

44 Compass

44eApp Express

Mobile

42 Adviser Site

Commissions 32 OLAS

44 Compass

Inbound Mail

Outbound Mail

22 TeamTrack

33 eClaims

23 New Business

42 Adviser Site

CUCCX

44 Compass

3Data Exchange

Portal

32 OLAS

33Priceline Sales

Portal

24 INSA

34 LifeApp

23 New Business

Leads Generation

Leads Management

Broker Management

Strategic Pipeline

Tactical Pipeline

Policy Acquisition

Needs Analysis

Product Selection

Quotation & Illustration

Application

Tenders

3Data Exchange

Portal 43 ACT!

32 DM Sales Portal

33Priceline Sales

Portal24 INSA

34 LifeApp

33Priceline Sales

Portal

24 INSA

34 LifeApp

32 DM Sales Portal

44eApp Express

Online

44eApp Express

Mobile

33Priceline Sales

Portal

24 INSA

34 LifeApp

32 DM Sales Portal

44eApp Express

Online

44eApp Express

Mobile

Inbound Mail

33Priceline Sales

Portal

24 INSA

34 LifeApp

32 DM Sales Portal

44eApp Express

Online

44eApp Express

Mobile

43 ACT!

32 OLAS

43 ACT!

42 Adviser Site

CUCCX

43 Group Website

44 Voice Recording

42 Adviser Site Policy Notices

43 Group Website

2Group Renewal Spreadsheets

32 OLAS

Policy Notices

22CCI

Spreadsheets

44 Compass

IQM+

32 OLAS

42 Claims

44 Compass

32 DM Sales Portal

44eApp Express

Online

42 Claims

44 Compass

44eApp Express

Mobile

33 eClaims

32 DM Sales Portal

44eApp Express

Online

44 Compass

44eApp Express

Mobile

24 INSA

44eApp Express

Online

44 Compass

44eApp Express

Mobile

33 eClaims

32 OLAS

34 LifeApp

23 New Business

32 OLAS

33Priceline Sales

Portal

24 INSA

34 LifeApp

23 New Business

43 Prophet

32 OLAS

33Priceline Sales

Portal

34 LifeApp

23 New Business

43 Prophet

42 Claims 34 NAB Connect

AMEX BAS

Billing Extract

44 Compass

12 ELSA VUL

34 NAB Connect

44 NAB Transact

32 OLAS

Payment Dishonors

33 Receipting

42 Adviser Site Policy Notices

43 Group Website

Recurring Claims Management

32Content

Manager 5.3

54 Case360

42 Claims

32 Compass

32Content

Manager 8.4

Inbound Mail

Outbound Mail

22 TeamTrack

33 eClaims

23 New Business

Lump Sum Claims Management

32Content

Manager 5.3

54 Case360

42 Claims

44 Compass

32Content

Manager 8.4

Inbound Mail

Outbound Mail

22 TeamTrack

33 eClaims

23 New Business

42 Adviser Site

CUCCX

Batch Printing

44 Compass

43 Group Website

Inbound Mail

Outbound Mail

23 New Business

44 Voice Recording

32Content

Manager 5.3

CUCCX

54 Case360

44 Compass

32Content

Manager 8.4

Inbound Mail

32 OLAS

Outbound Mail

12 ELSA VUL

44 Voice Recording

44eApp Express

Online

44eApp Express

Mobile

34 LifeApp

23 New Business

32Content

Manager 5.3

54 Case360

44 Compass

32Content

Manager 8.4

12Excel (WFP Analytics)

MS ILM

LegendApplication Lifecycle

Business Fit

Technology Fit

Emerging

Core

Contain

Retire

High Technical Fit

Low Technical Fit

Medium Technical Fit

Medium Business Fit

Low Business Fit

High Business Fit

Emerging - Potentially High relevance, processes and ecosystem still developing Application - this application has identified potential to change the cost/value, efficiency/effectiveness of our services, and we are at a point where work is required to achieve that potential, proof of concept/initial deployments are Underway or completed. Financial - there is an investment cycle with a strong ROI, though possibly with benefits outside of the immediate project. Organisational - this will assist in supporting our organisational maturity goals through improving process, skills, readiness and/or capability. Design patterns are actively being developed or refined. Usage & Governance – Projects may consider using these applications where there is justification. However projects must be aware that service management organisation, tools and processes will likely be immature. Projects promoting the use of “Invest” applications must seek adoption signoff from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture before commitment to use can be assumed. Core - High relevance; processes and ecosystem in place Application - this is a fundamental and valuable application and is the current standard. It is well understood and there is no risk in attempting to extract ongoing value from its use. Financial - costs are known and understood. There is good ROI for maintenance; either upgrading early or leap-frogging some upgrade steps. Cost models clearly identify the whole service stack and components are managed to the whole service. Organisational - all staff in the support pyramid(s) understand the key controls and SLAs around this application. There is no tinkering, instead there is a process for continuous improvement. Usage & Governance – Projects should specify the use of Core Applications where available in the knowledge they are fully supported by service management and operational capabilities. Contain - Falling relevance; ageing processes and ecosystem Application/Financial - this installation is not to be extended in use. Where possible changes will not occur to the existing environment - it is to be allowed to age towards sunset with minimal additional spend. Organisational - Operations and security levels are to be maintained, there needs to be a process to manage changes required for continued operation, and to keep skills for the duration. Lifecycle Management - A replacement strategy, if required, must be in place for all applications with this status. Usage & Governance – Projects should generally avoid use of Contain Applications as they are invariably subject to near or medium term sunset. Any circumstance which promotes extended use of Contain applications must be seek exemption from <Insert Appropriate Governance Authority> before commitment to use can be assumed. Retire - Avoidance; specialist (non-core) resources and processes required to keep in the environment Application/Financial - Spend and change must only occur as part of projects that assist in removal of this application. Organisational - All change requires formal approval from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture, which will only occur where it contributes towards Retiring the application, or meets a mandatory requirement due before exit is complete. Lifecycle Management - Applications which cannot readily be removed will be ring-fenced. If this approach is taken, design patterns must exist for working with the application. Usage & Governance – Must avoid use of Exit Applications as they are subject to defined decommissioning strategy. Any circumstance which promotes extended use of Exit applications must seek exemption from the Head of Infrastructure and Operations together with the Head of IT Strategy and Architecture before usage approval can be given.

› Understanding the dependency between Capabilities and technology assets….

› …and understanding the technical health and business fit of the technology…

› …creates powerful insight into the overall health of the Enterprise Architecture

MAPPING CAPABILITIES TO APPLICATIONS

Page 29: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 32

COMBINING THE VIEWS

› Identifies Core and Differentiating Capabilities and ranks Capabilities according to their strategic importance

› Identifies current and target Maturity levels and gaps

› Provides a view of tactical / operational Pain Points

› Enables us to understand where we are currently investing and whether our investments support the strategy

› Provides insight into where and how we should be closing Capability Maturity Gaps

› Provides the fact-base to inform strategic planning

What does this tell us?

Page 30: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 33

THE CAPABILITY DRIVEN ROADMAP

Page 31: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 35

TRANSITION PLANNING

In order to move from the Current Environment to the Target Environment, a series of initiatives must be undertaken.

A Business Architecture approach to defining the Transition Roadmap will enable informed decision making, creating traceability from strategy to implementation.

Developing a Capability-Driven Roadmap

MotivationsBusiness Model

Capability Model

Target Architectur

e

Maturity & Gaps

Work Packages

Current State

Architecture

Transitioning

‘ A N C H O R M O D E L S ’

Page 32: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 36

CAPABILITY INCREMENTS

Capability Maturity Uplift is often Delivered in Multiple Increments

C A PA B I L I T Y

C A PA B I L I T Y I N C R E M E N T

PEOPLEDIMENSION

Individual Training

Collective Training

Professional Development

PROCESS DIMENSION

Concepts

Business Processes

Information Management

MATERIAL DIMENSION

Infrastructure

Information Technology

Equipment

Page 33: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 37

Page 34: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 38

CASE STUDY: INSURECO OUTCOMES

Page 35: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 39Business Analysis Conference Europe 2014

OUTCOMES: STRATEGIC BUSINESS DESIGN

Business design for INSURECo. with clear line of sight to the strategic business objectives

Outline the motivations, capabilities and work packages which will deliver alignment to the overall business current and future states.

The baseline architecture provided INSURECo with a view of:

› Capabilities mapped to strategic objectives

› Applications linked to capability

› Analysis whether capabilities are “fit for purpose” based on strategic objectives

› Analysis and rating of applications with regards to business and technical fit

› Areas of technology investment required to support strategic objectives

› Prioritisation of capital investment based on strategic objectives

› A clear Roadmap to transition to the new Business Model

THE OBJECTIVE CLIENT OUTCOMES

Page 36: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 40

RECAP

› Business Capabilities are an essential tool to help us to look at the Business agnostically, speak a common language and understand our strengths and weaknesses in relation to strategy

Business Architecture Key Points

› Business Architecture provides the coherence between Strategy and Implementation

› Linking programmes and projects to Business Motivation (via Capabilities) provides traceability from strategy to implementation

Page 37: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 41

THANK YOU…

Page 38: Practical Application of Business Architecture

B U S I N E S S A N A LY S I S C O N F E R E N C E E U R O P E 2 0 1 4 | © E N T E R P R I S E A R C H I T E C T S | PAGE 42