aligning business architecture with business design overview ... design thinking is fundamental to...
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Copyright © 2015 Boeing. All rights reserved.
Engineering, Operations & Technology
Aligning Business Architecture with Business Design
Steve DuPont, Associate Technical Fellow
Enterprise Architecture
March 25, 2015
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Global Boeing
Customers and customer support in 150 countries
Total revenue in 2014: $90.8 billion
70 percent of commercial airplane revenue historically from customers
outside the United States
Manufacturing, service, and technology partnerships with companies
around the world
Contracts with 21,500 suppliers and partners globally
Research, design, and technology-development centers and programs
in multiple countries
More than 165,000 Boeing employees in more than 65 countries
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Agenda
Overview
What is Business Design?
Application to Business Architecture
Key Model Views and Related Mappings
Establishing a Design-Oriented Business Architecture Practice
Looking Ahead
Summary
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What is Business Design?
“Business design is a human-centered approach to creative problem
solving. It applies design methods and mindsets to business
challenges.
Business design can be effectively used to
▪ Help better understand customers
▪ Create new experiences and
▪ Design innovative business strategies and models”
– University of Toronto, Rotman School of Management*
Design thinking is fundamental to business design
* “About Business Design.” Rotman DesignWorks. https://www.rotman.utoronto.ca/FacultyAndResearch/EducationCentres/DesignWorks/AboutBD.
Rotman School of Management. 2015.
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Design Thinking
“Design Thinking is a discipline that uses a designer’s sensibility and
methods to match people’s needs with what is technologically feasible
and what a viable business strategy can convert into customer value
and market opportunity.”
– Tim Brown, IDEO*
* Tim Brown. “Design Thinking,” Harvard Business Review. June 2008.
Design Thinking
Empathetic
Integrative
Optimistic
Experimental
Collaborative
Strategy Business
Architecture
Solution
Development
Can be
applied to
Products &
Services
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Design Thinking for Business Architects
Empathetic
▪ Outside-in customer/stakeholder perspective
▪ Observe users to identify hidden needs
Integrative
▪ Think holistically
▪ Design for integration
Optimistic
▪ Ask “what’s possible?”
▪ Embrace risk, uncertainty, and constraints
Experimental
▪ Iterative design/build (build to think)
▪ Validate, learn and adjust
Collaborative
▪ Co-creation
▪ Open process (everyone can participate)
Ferguson, Bob. “Our Boeing.” Boeing Frontiers. Boeing.com/frontiers. Jan. 2015.
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Visualization is Important
▪ Key roles
▪ Graphic recording
▪ Graphic facilitation
▪ Envisioning
▪ Holistic innovation
▪ Key competencies
▪ Empathetic listening
▪ Real time sketch
▪ Production art
▪ Domain knowledge
▪ Design thinking / systems thinking
Michael Erickson, © The Boeing Company 2015
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Design Phases
Business Architecture with Design Focus
Initial
Discussions
Information
Gathering
Conceptual
Design/Feasibility
Design
Development
Building Architecture Business Architecture
Customer experience
design
Business model
innovation
Operating model
design
1 A Guide to the Business Architecture Body of
Knowledge (BIZBOK®). 2015
1
1
Vision, goals
External influencers
Market analysis
As-Is business design/
architecture
Business architecture
blueprints
Source: Steve DuPont et al. “Business Architecture and Business Models.” 2014 Business
Architecture Innovation Workshop. Object Management Group & Business Architecture Guild.
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Conceptual Design Artifacts and Business Architecture Blueprints
Business Models and Operating Model Sketches
Conceptual
Design
Artifacts
Detail
Architecture
Blueprints
embodied in
Organization Map
Value Map Information Map
Capability Map
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Scale and
Deploy
Strategy to Execution (Traditional)
Strategic
Planning
Business &
Initiative Planning
Architecture &
Development
Business Model Lifecycle (shrinking)
Driven by annual cycles
Siloed processes
Non-integrated initiatives
Waterfall methods
Heavy decision gates
Product
Development
Target market entry
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Innovation Required
“We don’t have a traditional strategy process, planning
process like you’d find in traditional technical companies.
It allows Google to innovate very, very quickly…”
– Eric Schmidt, Google
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Solution
Development
Another Way (Designed Focused)…
Business Model Lifecycle (shrinking)
Business
Architecture
Design &
Planning
Product &
Service
Innovation
Deploy &
Scale
Iterative learning processes
with dynamic feedback loops
Responsive to change
Design-oriented
Collaborative
Adaptable, flexible
Business architecture is performed
early to support strategy development &
integrated planning
Activity cycles based on
Lean Startup* principle #5:
Build, Measure, Learn Customer
Experience
Design
Business Model
Innovation &
Strategy
Target market entry
Test Learn
Design/
Build
(http://theleanstartup.com/principles)
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Business Model Innovation
Business model innovation is a design-oriented
approach to strategic planning whereby new
opportunities and ways to create, deliver, and
capture value are explored to achieve a sustainable
competitive advantage
Business model frameworks include:
Business Model Canvas,
Alexander Osterwalder et al., 2010
Business Model Cube, Peter Lindgren
and the EU Neffics project, 2012
Business Model
Innovation & Strategy
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Business Model
“A business model
describes the rationale
of how an organization
creates, delivers, and
captures value”*
Business Model Canvas
* Alexander Osterwalder and Yves Pigneur. Business Model Generation. John Wiley & Sons, Inc. 2010.
Value
Strategyzer.com
Business Model
Innovation & Strategy
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Value Proposition
“A value proposition
describes the benefits
customers can expect
from your products
and services”*
…and how those
products and services
are differentiated from
your competitor’s
Value Proposition Canvas
Strategyzer.com
* Alexander Osterwalder, Yves Pigneur et al. Value Proposition Design. John Wiley & Sons, Inc. 2014.
Strategyzer.com
Business Model
Innovation & Strategy
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Operating Model (OM)
An operating model describes the intended level of integration and standardization of an organization across its key activities, organization, and technology domains
Operating Model Aspects
+
Business Model Aspects
Key
Partners
Key
Activities
Key
Resources
Channels
Cost Structure
Information
Value
Propositions
Customer
Relationships
Customer
Segments
Revenue Streams
Organization Capability
The OM describes how an organization’s business models are implemented
Business Model
Innovation & Strategy
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Operating Model Design
OMs can be described in one page sketches
Example OM design sketches include:
Operating Model Sketch Core Diagram*
Key OM concerns: integration, standardization, and resource sharing
* Jeanne W. Ross, Peter Weill, David C. Robertson. Enterprise Architecture as Strategy. Harvard Business School Press. 2006.
Business Model
Innovation & Strategy
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Operating Model Sketch
Business Model to OM Mapping (Example)
Business Model Canvas Core Diagram
Business Model
Innovation & Strategy Current OM constrains
target business models
OM designed to realize
target business models
Derived
OM Views
Strategyzer.com
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Customer Experience (CX)
Customer experience (CX) is the sum of all experiences
a customer has with a supplier of goods and/or services,
over the duration of their relationship with that supplier*
S Buy Own Select
Purchase Feedback
Maintain
Use Research Receive Need
Market and Sell Support and Serve
Customer Experience Lifecycle**
* Wikipedia. http://en.wikipedia.org/wiki/Customer_experience
** Jason Fish and Whynde Melaragno (Kuehn). “Operationalizing Customer Experience Initiatives.” Business Architecture Innovation Workshop. Object Management Group and The Business Architecture Guild. Sept 2014.
Customer Experience
Design
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Customer Experience (CX) Design
Customer experience design methods model key
aspects of the customer experience: Customer,
interactions, artifacts/systems, and perceptions
Example CX design methods include:
Customer Experience Model (CEM)
(J. Teixeira et al)**
CX Journey Map (Oracle)*
CX Design Canvas (Oracle)*
* “CX Journey Mapping Toolkit.” Designing CX. DesigningCX.com. Oracle. 2015. **J. Teixeira et al. "Customer experience modeling: from customer
experience to service design." Journal of Service Management. 2012
Customer Experience
Design
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CX Design to Business Model Mapping (Example)
Value Proposition Canvas
Business Model Canvas
Customer Experience
Design
Business Model
Innovation &
Strategy
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Business Architecture Design
Business architecture design results in “a blueprint of the
enterprise that provide a common understanding of the
organization and is used to align strategic demands of
the business with tactical needs.”
The architecture blueprint includes:
Organization Map
Stakeholder
Map
Value Map
Business Architecture
Design & Planning
Information
Map
Product
Map
Strategy Map Capability Map
Business architecture
maps not shown:
Initiative map
Policy map
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Business Model Canvas
Business/Operating Model to Business Architecture Mapping (Example)
Business Model
Innovation & Strategy
Operating Model
Sketch
Organization Map
Stakeholder Map
Value Map
Information Map
Product
Map
Strategy Map
Capability Map
Direct Mapping
Examine each model view to ensure all
mapping elements have been identified
Validate against the CX model
Initiative and policy
maps not shown
Select Derived
Mapping
Business Architecture
Design & Planning
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Other Considerations
Additional inputs
Business motivation
Business environment
Analytical methods
Strategic business
scenarios & alternatives
Requirements
Integration and quality checks
Michael Erickson, © The Boeing Company 2015
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Establishing a Design-Oriented BA Practice
Personal readiness
Expertise development
Practice
Sharing your learnings
Networking
Organizational readiness
Michael Erickson, © The Boeing Company 2015
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Looking Ahead
Open frameworks and methods needed
Improved business and operating model methods
BMI/OM/Strategy integration
Model interoperability
Visual methods with BI/
Analytic support
Simulation methods and tools
Michael Erickson, © The Boeing Company 2015
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Summary
Disruptive change is the norm –
and it’s accelerating
Innovation will become necessary
to remain competitive
Business design is in its infancy
Key mindsets and skills are critical
Use sketch models and visualization
techniques for conceptual design
Map conceptual design to business architecture
Stay close to the customer experience
Michael Erickson, © The Boeing Company 2015
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Discussion