Kudryavtsev D., Grigoriev L., Koryshev I. Applying Quality Function Deployment method for business architecture alignment. Proceedings of the 8th European Conference on IS Management and Evaluation (ECIME 2014), Ghent, Belgium, 11-12 September 2014, 118-127. Strategic alignment is an important issue for business architecture. The alignment concept may have many facets, but this paper mainly focuses on such aspects of an enterprise as behaviour and resources. Stakeholder concerns and customer values must define the right priorities and goals for the elements of value configuration, capabilities and resources. The right projects must be launched to develop and improve key business architecture elements. This paper suggests the model-oriented method for business architecture alignment, which uses proven matrix-based Quality Function Deployment (QFD) methodology for analysis, decision making and communication. This method can complement standard diagramming enterprise architecture methods. Although QFD was initially created for product design, it has many applications in strategy deployment. But in spite of a longstanding history, elements chosen for “strategic” QFD vary and are poorly aligned with existing business architecture concepts. In order to clarify the link between the suggested QFD method and business architecture elements, a meta-model is suggested, which specifies the contents of the matrices. The suggested meta-model is based on the existing reference ontologies and meta-models for strategic management. This ontological foundation supports knowledge sharing and applicability of the business architecture alignment method. Tool support (EAM-tool plugin) and method applications are also covered in this paper.

1. Applying Quality Function Deployment method
for Business Architecture Alignment
Dmitry Kudryavtsev
Lev Grigoriev
Ivan Koryshev
1, 2, 3
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2
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ECIME 2014
8th European Conference on
IS Management and Evaluation
University of Ghent
Citation: Kudryavtsev D., Grigoriev L., Koryshev I. Applying Quality Function Deployment method for business architecture alignment. Proceedings of the 8th European Conference on IS Management and Evaluation (ECIME 2014), Ghent, Belgium, 11-12 September 2014, 118-127.

2. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Outline
1.Introduction: the problem of Strategic Alignment
2.QFD and its role in strategic management
3.Business architecture alignment method (Way of thinking and working)
4.Meta-model and viewpoints (Way of modeling)
5.IT support - ORG-Master (Way of supporting)
6.Application of the approach
7.Related work
8.Conclusions
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3. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Strategic alignment and basic works
Everyday operations, transformation efforts, performance measures and personnel behaviour at all levels must be aligned with strategy.
The need for alignment arises when distinct disciplines influence each other and their coordination is required to achieve certain goals.
Labovitz, G., & Rosansky, V. (1997). The power of alignment: How great companies stay centered and accomplish extraordinary things. John Wiley & Sons, Inc.
Henderson, J. C. and Venkatraman, N. (1993) Strategic Alignment: Leveraging information technology for transforming organisations. IBM Systems Journal, 32(1), pp 4- 16.
Kaplan, R. S., and Norton, D. P. (2004). Strategy Maps. Harvard Business School Publishing, Boston, Massachusetts
Kaplan, R., & Norton, D. P. (2006). Alignment: Using the balanced scorecard to create corporate synergies. Harvard Business Press.
Joshi, M. P., Kathuria, R., & Porth, S. J. (2003). Alignment of strategic priorities and performance: an integration of operations and strategic management perspectives. Journal of Operations Management, 21(3), pp 353-369.
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4. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
A Guide to the Business Architecture Body of Knowledge™ (BIZBOK™ Guide)
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5. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
The focus of the current paper
•How to make enterprise activities strategy-focused
•How to build strategy-oriented transformation and improvement plans
•How to align a performance measurement system
•How to translate business model concepts into everyday business operations
inspired by the paper of de Bruin and Rosemann (2006) on strategic alignment of business process management
+ architectural work is model-based 
the method requires quite a high degree of formality
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6. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
The aim of the current paper
To suggest a model-oriented method for business architecture alignment, which solves the following tasks:
•Align strategic objectives with stakeholder’s concerns and customer value proposition,
•Prioritize firm’s activities (behavior) based on strategic objectives,
•Align performance measurement system,
•Identify and prioritize development projects (transformation program) and improvement plans.
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7. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Quality Function Deployment method
“method to transform qualitative user demands into quantitative parameters,
to deploy the functions forming quality, and
to deploy methods for achieving the design quality into subsystems and component parts, and ultimately
to specific elements of the manufacturing process”
Akao, Yoji (1994). "Development History of Quality Function Deployment". The Customer Driven Approach to Quality Planning and Deployment. Minato, Tokyo 107 Japan: Asian Productivity Organization. p. 339.
QFD helps transform customer needs (the voice of the customer) into engineering characteristics (and appropriate test methods) for a product or service.
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8. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Basic QFD structure or “The House of Quality”
Source: Govers, 1996
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9. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
“The House of Quality” example
Hauser, J. and Clausing D. (1988). “The House of Quality,” Harvard Business Review, 66 (May–June), pp 63–73.
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10. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Cascade of QFD charts
Source: Govers, 1996
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11. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Strategic QFD approaches
Table 1. Single matrix strategic QFD applications
Table 2. Multiple QFD matrix approaches to strategic decision making
Reference
Whats
Hows
Sullivan (1988)
Means
Objectives
Uber, Gigler, 1994
Organization goals
Corporate programs
Reference
1st level Whats
1st level Hows /
2nd level Whats
2st level Hows/
3nd level Whats
3st level Hows/
4nd level Whats
4st level Hows
Day (1991)
Company vision
Business objectives
Strategies
Action plans
Responsibilities
Crowe and Cheng (1995)
Business strategies
Functional strategies
Manufacturing strategies
Action plans
Detailed tasks
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Hunt, R. A., & Xavier, F. B. (2003). The leading edge in strategic QFD. International Journal of Quality & Reliability Management, 20 (1), pp 56-73.

12. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Strategic QFD role at different levels of business model change
Level
Main models
Alignment methods
Main development means
1. Business model innovation
through the resource development
Basic methods:
Heat maps,
Strategy maps + Balanced Scorecard etc.
Supporting analytical decision making methods, which help to prioritize and choose elements for basic methods:
Strategic Quality Function Deployment etc.
Resource development projects
Programs
2. Business model evolution through the capability development
Capability development projects
3. Operations excellence through the process development and improvements
Process development and improvements projects
BM canvas
Capability map
Process architecture
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13. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Example QFD matrix for business architecture alignment
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14. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Multiple QFD matrix contents for business architecture alignment (‘meta QFD matrix’)
Level
1st level Whats
1st level Hows/
2nd level Whats
2st level Hows/
3nd level Whats
3st level Hows/
4nd level Whats
4st level Hows
1. Business model innovation
through the resource development
Customer values and other stakeholder concerns
Products/ Services
Activities
Resources
Resource development projects
Programs
2. Business model evolution through the capability development
Customer value proposition objectives
Primary capability
objectives
Support capability objectives
Capability development projects
Primary capabilities
Support capabilities
3. Operations excellence through the process development and improvement
Objectives
from Customer and Financial perspective
Primary process objectives
(Internal perspective)
Support process objectives
(Growth perspective)
Process development and improvement projects
Primary processes
Support processes
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15. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
The business architecture alignment process for the 2-nd level of business model change (circles = steps)
Level
1st level Whats
1st level Hows/
2nd level Whats
2st level Hows/
3nd level Whats
3st level Hows/
4nd level Whats
4st level Hows
1. Business model innovation
through the resource development
Customer values and other stakeholder concerns
Products/ Services
Activities
Resources
Resource development projects
Programs
2. Business model evolution through the capability development
Customer value proposition objectives
Primary capability
objectives
Support capability objectives
Capability development projects
Primary capabilities
Support capabilities
3. Operations excellence through the process development and improvement
Objectives
from Customer and Financial perspective
Primary process objectives
(Internal perspective)
Support process objectives
(Growth perspective)
Process development and improvement projects
Primary processes
Support processes
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2
3
4
5
6
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16. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Meta-model (Way of modeling)
is based on the following reference meta-models and ontologies (Osterwalder, 2004; Azevedo et al, 2011; Meertens et al, 2012; Giannoulis et al, 2012; Roelens et al, 2013)
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17. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Viewpoints: goal-cascading matrices (Way of modeling)
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18. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Way of supporting: ORG-Master software tool
Knowledge distribution
Knowledge acquisition
Knowledge structuring and integration
Non-structured and semi- structured information
Integrated model
Diagrams
Matrices
“Internal” representation
Diagrams’
Text reports
Table reports
Classifications & Matrices
“External” representations
“External” representations
Grigoriev L., Kudryavtsev D. Non-diagrammatic method and multi-representation tool for integrated enterprise architecture and business process engineering // Proceedings of 15th IEEE Conference on Business Informatics (CBI 2013), 15-18 July, 2013, Vienna, Austria. PP. 258-263.
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19. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Way of supporting: ORG-Master software tool
Enterprise model editor
(classifications & matrices)
Enterprise
model
Reporting and query module
Documents
Diagrams 2
Meta-editor
Diagram editors
Query results
Diagrams 1
Metamodel
(incl. ontology)
Web-portal
Non-structured and semi- structured information
Grigoriev L., Kudryavtsev D. Non-diagrammatic method and multi-representation tool for integrated enterprise architecture and business process engineering // Proceedings of 15th IEEE Conference on Business Informatics (CBI 2013), 15-18 July, 2013, Vienna, Austria. PP. 258-263.
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20. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Business architecture alignment matrix in ORG-Master
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21. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Way of supporting: ORG-Master software tool
Enterprise model editor
(classifications & matrices)
Enterprise
model
Reporting and query module
Documents,
Query results,
Web-portal
Diagram
editor
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22. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Application of the approach
This methodology or its parts helped to develop and deploy:
•corporate strategies for 5 companies,
•business strategies for 7 companies,
•functional strategies for 4 companies.
Business Engineering Group provides consultancy, tools, research, best practice models and training in the following service lines: enterprise architecture management, business model management, strategic business process management, capability management, organizational design, knowledge management and IT strategy.
Business Engineering Group has more than 15 years experience with projects in Russia (from Saint-Petersburg and Moscow to Vladivostok) and CIS countries (Ukraine, Kazakhstan etc).
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23. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Related work
Alignment methods for business behaviour / activities
links between goals / objectives and business processes (Kavakli, Loucopoulos, 1999; De Bruin, Rosemann, 2006; Burlton, 2010), goals / objectives and capabilities (Hafeez et al, 2002), goals / objectives and development projects (Meskendahl, 2010).
Diagram-based languages for strategic alignment
e.g. Archimate with its extensions (Meertens et al, 2012) and VDML (OMG, 2012)
Integrating meta-models
(Meertens et al, 2012; Giannoulis et al, 2012; Roelens et al, 2013)
QFD in the architecture development process
(Gammoh et al, 2010), (Mike Clargo, 2002)
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Conclusion: Specialties of the suggested methodology
•Supporting analytical decision making methodology for diagram-based methods, which helps to prioritize and choose BA elements,
•Model-based (high level of formalization),
•Ways of thinking, working, modeling and supporting,
•Consistent approach for prioritizing different BA elements (goals, value proposition elements, business capabilities, processes, resources, development projects),
•Primary-Support division of activities.
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25. Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014
Conclusion: Current/Future work
•Extended demonstration of implementation (e.g. case study)
•More explicit evaluation
•Calculation plugin for the tool (ORG-Master)
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Thanks
Questions?
Dmitry Kudryavtev
dmitry.ku@gmail.com
http://www.linkedin.com/profile/view?id=17582861
https://twitter.com/kudryavtsev_d
Lev Grigoriev
griglev@gmail.com
Ivan Koryshev
ikory@mail.ru