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Creating Enterprise Value from Business Architecture

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This presentation will cover the Why (Value) and How (Execution) of a Business Architecture program. You will understand how you can lead your enterprise towards its vision by planning for key Business Capabilities that will get you there.

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Creating Value … Driving Execution Blissful Consulting Corp
Today’s session Takeaways 5  Enterprises realize their vision and mission via strategic execution to create enduring value  Business Architecture aligns strategy to execution via a structured approach  Capability modeling, capability assessment and heatmapping are key activities in the process  Measurements of realized Business Value via audits confirm the effectiveness of this approach  Growth in Business Architecture Maturity is reflected in:  Improved communication and collaboration across the enterprise  Efficient and effective use of IT capital
Business Architecture Value Creation 6 Prioritized Program Investments* • Develop New Capabilities • Enhance Current Capabilities Application Portfolio Mgmt • Simplify Apps • Consolidate • Rationalize Information/Data Technology Architecture* • Standardize • Streamline • Re-platform Business Architecture Analysis & Outcomes * Collectively represent desired Future State Architecture
Gold Medal Winners “Connect the Dots” 7 Vision • Clarity • Buy-in Strategy • Articulates ‘how to’ • Initiatives Capabilities • People & Process • IT Programs • Roadmap • Investments
Business Architecture as a Program Business Architecture as a Service 8  Business Architecture  Translate strategy, goals and initiatives (and associated metrics) into capabilities  Design business architecture that enables targeted business capabilities & processes  Execute enterprise technology strategy assessment and planning  Manage IT investment portfolio to achieve strategic goals and business results  Measure ROI and business value realized from IT investments  Key Outcomes & Deliverables  Business – IT alignment  Multi-Year Roadmap  IT Portfolio & Platform/Technology Initiatives
Telling the story – how Business Architecture creates Enterprise Value 9 Case Study 1 – Rationalizing $150MM IT Investment Portfolio Case Study 2 – Re-engineering a $20B Procurement Business Case Study 3 – Defining Future State of Forecasting and Quota Management in Software Sales
Case Study 1 Roadmap of Operations Engagement 10
Engagement Roadmap 11 Setting the stage Capturing Strategy, Goals and Capabilities Needed Assessing Capabilities (Value, Performance, Maturity) Identifying Gaps/ Opportunities Prioritizing Investments
Setting the stage – Business Architecture primer for Stakeholders, Contributors 12  Business architecture is the translation of Business Strategy to prioritized Program investments that create and drive business value.  Business architecture success is enabled via  Business stakeholder engagement  IT and EA involvement  Business Architecture precedes, but is tightly integrated with  Application Architecture  Information Architecture  Technology Architecture  Business architecture maturity is driven by  formalizing the function and increasing awareness  CxO sponsorship  Business Architecture creates deliverables that drive business success  Capability Models  Multi-Year Roadmaps  Investment Prioritization Models
13 Business Value Definition Business Strategy & FutureTrends Strategic Planning Manage Demand Optimize Portfolio Manage Portfolio Manage Solution Delivery IT Services & Operations Strategic Planning • Business Architecture • Drives traceability across the business (demand, programs, process, technology, etc. • Translates strategy into a roadmap of capabilities needed to enable the strategy Manage Demand • Facilitates capture and business case development for strategic and tactical demand • Architectural planning informs demand prioritization Business Strategy & IT Outlook • Provides a 3-5 year outlook of business and IT vision, direction, priorities, and goals • Business Architecture completes analysis of goals Traceability Business Architecture Is a discipline that leverages a structured approach to provide executives with improved insights into strategic planning and driving greater business value via traceable views across the business Improved Insight &Traceability Business Value Definition identifies KPIs relevant to strategy and capabilities to calculate ROI Technology Models, Information Models Setting the stage – Business Architecture primer
Business and IT Alignment – Strategy and Goals Capture 12/11/201214 • Business Architecture • Goals & Capabilities • Planning Infrastructure (Tool/Repository) Business-IT Alignment • Capability Models • Goals Analysis & Capability Mapping • Gaps & Overlaps Business Analysis • Prioritization • Program Recommendations • Consolidation Opportunities Portfolio Planning & Optimization
Microsoft Confidential 15 Futuristic Networks Corp Strategy on a PageIMPERATIVES Be the leading provider of high-performance network infrastructure by transforming the experience and economics of networking. Our strategy is centered on innovation and customer value Serve the high-performance networking requirements of global service providers, enterprises, and public sector organizations that view the network as critical to their success PRIORITIES Leverage Position as Supplier of High- Performance Network Infrastructure Maintain and Extend Technology Leadership Be Strategic to Customers Win workloads vs. Cisco Build Next Generation Enterprise Services Platform Build a High Performing set of Roles Drive Sales Excellence Partner with Services to drive growth, deployment and penetration Enable the Field to land the Enterprise Operating Plan Land Sales basics through process & system simplification Enable New IP-Based Services Lead the future of productivity Excel at Execution Enable best in class Business & Relationship Management processes and tools Improve Customer and Partner satisfaction Simplify the Communications Sector ecosystem Scale Partner Led Industry Solution Area Selling Capture the upside in Web2.0 Integrate customer and partner relationship management, and health assessment practices, into a single CRM platform • CM growth > Billed Revenue growth • Total Selling Time > 60% • Revenue/FTE CAGR 6-8% FY11- FY13 • CSAT Targets • Deployment • Platform Mix Share of Wallet versus • CSCO, IBM, HP • Revenue growth 10% CAGR 2012-14 • Customer Adds • Wins with Partners VISIONMISSIONOUTCOMES Enable Partners with Services to drive growth, deployment and penetration
16 Business Architecture: Goals Analysis Goals analysis: Analyzed Strategic Plan, Commitments, Operational Scorecard “What” Description KPI “Impact” Time Improve Customer Experience strives to improve and orchestrate the end-to-end experience, resulting in bringing new concepts to market quickly, revenue growth and increased CPE, and will be measured by time to Customers' accepting new Offerings, by 2010. Goals Processes Information Systems Roles Goals, specific objectives Process Frameworks ITLC Information Models Applications IT Roles Strategic Plans, Programs, Commitments Business Capability Map, Analysis ITLC + Division Processes Subject Facet Model IT BusinessApps ITLC Roles/CSP Artifacts Required To Describe The Business KeyTakeaway Business excellence and traceability starts with clear, consistent organizational goals & commitments Manage IT Services & Operations (Jim Dubois, Walter Puschner) Manage Service/Applications Plan & Organize IT (Lynn Kepl, Matt Kellerhals, Shahla Aly, Neville Rademeyer, Jim Dubois, Barry Briggs, Raj Biyani, Walter Puschner, Christopher Fernandez, Tony Oliver) Manage Communications (Lynn Kepl) Manage Business Partner & Portfolio Planning (Shahla Aly, Raj Biyani, Lynn Kepl) Manage Planning & Strategy (Lynn Kepl, Matt Kellerhals) Manage Enterprise Architecture (Barry Briggs, Jim Dubois) Manage Portfolio Delivery (Shahla Aly, Neville Rademeyer, Jim Dubois, Walter Puschner) Manage Compliance & Risk (Jim Dubois) Manage Portfolio (Shahla Aly) Manage Services Infrastructure Manage IT Operations Manage Support Optimize Portfolio Manage IT Business Policies Align Business Strategy Manage Finances (Matt Kellerhals) Manage Demand Manage Business Demand Manage Service Request Demand Manage Compliance & Regulations Manage Incidents Manage Frameworks/ Methodologies Optimize Project Portfolio Identify Opportunities Manage Performance (Lynn Kepl) Manage Knowledge & Information (Shahla Aly, Barry Briggs) Manage IT Risk Manage Data & Data Quality Manage Capacity Manage Service Continuity Manage Security Manage Security Manage IT Lifecycle Manage Service Monitoring & Control Manage Network Manage Directory Services Manage Job Scheduling Manage Enterprise Operational Risk Manage Problems Manage Service Request Manage Communication Services Manage Collaboration Systems Develop Business Plans Maintain Strategic Drivers Maintain Roadmaps Integrate With Corp Strategic Planning Maintain Strategic Planning Process Manage Planning Responsibilities Optimize Service Portfolio Administer Systems Define Archival & Retention Manage Legal & Corporate Affairs (Tony Oliver) Manage ContractsManage IP Manage External Oversight Manage Solution Delivery Manage Legal Corp Services Manage Business Group Legal Counsel Manage Gov’t & Regulatory Affairs Manage Reports/ Scorecards Manage Product Group Demand Monitor Future Trends Manage Data Centers Manage Enterprise Business Continuity Manage Enterprise Application Portfolio Manage Suppliers (Matt Kellerhals, Lynn Kepl) Manage Sourcing Strategy Manage Supplier Relations Manage Procurement Manage Business Architecture Manage Information Architecture Manage Infrastructure Architecture Manage Forecasts Manage Capital Manage/Allocate Costs Manage Fixed Assets Manage Facilities Manage Fiscal Planning/ Budgets Manage Venture Integration Manage Accounts Payable Optimize Product Group Portfolio Manage Quality/ Continuous Improvement Manage Business Partner Relations (Shahla, Aly) Manage Customer/ Partner Satisfaction Manage Business Needs Develop Account Strategy Perform Business Reviews Manage Account Plan Manage Assets Manage Systems Change Monitor Service Agreements Manage Service Availability Manage Configuration Manage Source Code Manage Obsolescence Govern IT (Lynn Kepl) Manage Business Engagement Manage Business Readiness & Adoption Manage Human Resources (Christopher Fernandez) Manage Recruiting Manage Career Planning & Development Manage Learning & Development Plan/Manage Workforce Manage Leadership & Development Manage Organizational Design Review Employee Performance Manage Organizational Change Manage Succession Planning Manage Collaboration Manage IT Standards Manage Business Insights Manage Diversity Manage Strategic Plan Manage Internal Communications Manage External Communications Manage Knowledge Transfer Manage Communities Manage Storage Define/Develop Documentation & Content Monitor/Evaluate Performance Drive Product Excellence (Raj Biyani, Lynn Kepl) Engage/Guide Product Group Adopt Technology Manage Dogfooding Showcase Technology Evangelize New Product Opportunities Influence Product Direction Incubate Technology Manage Research & Development Align Business & IT Manage Steering Committees Manage Benefits Manage Transfer/ Termination Manage Supplier Risk Manage Internal Controls Manage IT Brand Manage IT Value Manage Architectural Review Board Manage Application Architecture Deploy Solution Plan Solution Close & Verify Benefits Manage Release/ Deployment Manage Solution Development Manage Requirements Develop Business Case Design Solution Manage Service Design Optimize Business Processes Manage Risk Manage Project Benefits Manage Change Manage Project Resources Manage Scope Manage Project Performance/Reporting/ Monitoring Build Solution Manage Verification & Testing Manage Project Initiation Manage Solution Quality Manage Solution Stakeholders Manage Project Planning Manage Security Policies & Risk Maintain Enterprise Architecture Manage Portfolio Funding Manage Service Level Expectations/Agreements Drive Project Management Excellence
17 • BusinessArchitecture • Goals & Capabilities • Planning Infrastructure (Tool/Repository) Business-IT Alignment • Capability Models • GoalsAnalysis & Capability Mapping • Gaps & Overlaps BusinessAnalysis • Prioritization • Program Recommendations • Consolidation Opportunities Portfolio Planning & Optimization Business Analysis – Capability models and gap analysis
Capabilities (example) Assists With Analysis & Prioritization X X X X X X X X X X X X X X X X X X X Strategies Goals Mapping FY Initiatives Mapping Strategic Areas Prioritization Value//Perform/Maturity Key Business Capabilities & Potential Risks Of Achieving Goal Business Architecture: Capability Identification 1 2 3 Manage Quotes Manage Offers Manage Orders Manage Entitlement Manage Contract Manage reports Inform Strategic Planning Provides traceability from goals to initiatives Funded Initiatives 18
Maturity Readiness Process Resources Goal Value Performance Business Capability InitiativeMapped Mapped What is the likelihood that I can achieve the goal based on the capability maturity? • Do I have a sponsor? • What are the high level state of my processes? • Do I have resources applied to this capability to support the achievement of the goal? Which capabilities are considered more important to success? Which capabilities are supported by organizational goals? Are there any initiatives planned or in flight that are implementing this capability and goal? Do I have goals for this initiative? How is the capability performing relative to the value to inform prioritization? Key Maturity Aspects Of Business Capability Maturity • Readiness (sponsor) - None, Accountable Sponsor, Responsible Person On Team • Process - adhoc, intuitive, defined, monitored, optimized • Resources - no resources to….. resources & tied to multi-year roadmap Business Architecture: Capability Modeling and Assessment 19
Presentation Roadmap 20 • BusinessArchitecture • Goals & Capabilities • Planning Infrastructure Business-IT Alignment • Capability Models • GoalsAnalysis & Capability Mapping • Gaps & Overlaps BusinessAnalysis • Prioritization • Program Recommendations • Consolidation Opportunities Portfolio Planning & Optimization Portfolio Planning – Priorities and Optimization
Portfolio Planning & Optimization 21  View investment opportunities against quadrant (high value & high gap – low value & low gap)  Variations on gap analysis by plots against current funding levels, strategic objective weighted rankings and other dimensions.
Analysis Business Architecture: Consolidated Process 22 Aggregation Assessment & Gap Analysis 1. Analysis Of Capabilities, Goals, Initiatives 2. Develop recommendations and inform strategic planning Initial Goals Analysis 1. Analyzed Capabilities, Goals & Initiatives 2. Identified areas to inform FY Strategic Planning Goals Identification 1.Analyze Balanced Scorecard, Commitments ArchitectureModels 1. Collect key architectural artifacts including process, applications, information,, roles, etc 2. Provide scope and focus for architectural models 3. Load artifacts into repository for share/re-use 1 2 3 4 6 FY Strategic Planning 1. FY11 Strategic Planning Input 2. Planning analysis input 5 Ongoing FYxx FYxx Roadmaps 1. Validate Analysis 2. Complete FYxx Plan 3. Complete 3 Yr Plan 7 Dec/Jan Capability Map & Ratings 1.Establish capability scope 2.Assess relative importance, maturity and performance 3.Identified relative overall prioritization of business functions for further assessment Value Maturity Performance MaturityGAP Initiatives Goals MonitorFuture Trends 5 1 2 4 Manage IT Brand Image 5 1 3 4 Manage ProductGroupDemand 5 1 3 4 1 DevelopBusinessPlans 5 2 2 3 1 Manage BusinessArchitecture 5 2 2 3 Manage InformationArchitecture 5 2 3 3 Manage Application Architecture 5 2 2 3 9 3 Manage IntellectualProperty&Licensing 5 2 2 3 Influence ProductDirection 5 2 2 3 1 6 DesignProjectSolution 5 2 2 3 1 3 Align With BusinessStrategy 5 3 3 2 MaintainEnterprise Architecture 5 3 3 2 1 Manage Infrastructure Architecture 5 3 3 2 9 3 Manage ArchitecturalReviewBoard 5 3 3 2 2 1 MaintainPlanningRoadmaps 5 3 3 2 3 3 FY10 Strategy On A Page Goals Processes Information Systems Roles Goals, specific objectives Process Frameworks ITLC Information Models Applications IT Roles Strategic Plans, Programs, Commitments MSIT Capability Map, Analysis ITLC + Division Processes Subject Facet Model IT Business Apps ITLC Roles/CSP Artifacts Required To Describe The Business Key Takeaway: Enterprise Value Results from Investing in Capabilities that Drive Growth, Operational Excellence and Customer Delight Manage IT Services & Operations (Jim Dubois, Walter Puschner) Manage Service/Applications Plan & Organize IT (Lynn Kepl, Matt Kellerhals, Shahla Aly, Neville Rademeyer, Jim Dubois, Barry Briggs, Raj Biyani, Walter Puschner, Christopher Fernandez, Tony Oliver) Manage Communications (Lynn Kepl) Manage Business Partner & Portfolio Planning (Shahla Aly, Raj Biyani, Lynn Kepl) Manage Planning & Strategy (Lynn Kepl, Matt Kellerhals) Manage Enterprise Architecture (Barry Briggs, Jim Dubois, Shahla Aly) Manage Portfolio Delivery (Shahla Aly, Neville Rademeyer, Jim Dubois, Walter Puschner) Manage Compliance & Risk (Jim Dubois) Manage Portfolio (Shahla Aly) Manage Services Infrastructure Manage IT Operations Manage Support Optimize Portfolio Manage IT Business Policies Align Business Strategy Manage Finances (Matt Kellerhals) Manage Demand Manage Business Demand Manage Service Request Demand Manage Compliance & Regulatioins Manage Incidents Manage Frameworks/ Methodologies Optimize Project Portfolio Identify Opportunities Manage Performance (Lynn Kepl) Manage Knowledge & Information (Shahla Aly, Barry Briggs) Manage IT Risk Manage Data & Data Quality Manage Capacity Manage Service Continuity Manage Security Manage Security Manage IT Lifecycle Manage Service Monitoring & Control Manage Network Manage Directory Services Manage Job Scheduling Manage Enterprise Operational Risk Manage Problems Manage Service Request Manage Communication Services Manage Collaboration Systems Develop Business Plans Maintain Strategic Drivers Maintain Roadmaps Integrate With Corp Strategic Planning Maintain Strategic Planning Process Manage Planning Responsibilities Optimize Service Portfolio Administer Systems Define Archival & Retention Manage Legal & Corporate Affairs (Tony Oliver) Manage ContractsManage IP Manage External Oversight Manage Solution Delivery Manage Legal Corp Services Manage Business Group Legal Counsel Manage Gov’t & Regulatory Affairs Manage Reports/ Scorecards Manage Product Group Demand Monitor Future Trends Manage Data Centers Manage Enterprise Business Continuity Manage Enterprise Application Portfolio Manage Suppliers (Matt Kellerhals, Lynn Kepl) Manage Sourcing Strategy Manage Supplier Relations Manage Procurement Manage Business Architecture Manage Information Architecture Manage Infrastructure Architecture Manage Forecasts Manage Capital Manage/Allocate Costs Manage Fixed Assets Manage Facilities Manage Fiscal Planning/ Budgets Manage Venture Integration Manage Accounts Payable Optimize Product Group Portfolio Manage Quality/ Continuous Improvement Manage Business Partner Relations (Shahla, Aly) Manage Customer/ Partner Satisfaction Manage Business Needs Develop Account Strategy Perform Business Reviews Manage Account Plan Manage Assets Manage Systems Change Monitor Service Agreements Manage Service Availability Manage Configuration Manage Source Code Manage Obsolescence Govern IT (Lynn Kepl) Microsoft IT Business Capabilities Version 2.0 - 10/2009 Manage Business Engagement Manage Business Readiness & Adoption Manage Human Resources (Christopher Fernandez) Manage Recruiting Manage Career Planning & Development Manage Learning & Development Plan/Manage Workforce Manage Leadership & Development Manage Organizational Design Review Employee Performance Manage Organizational Change Manage Succession Planning Manage Collaboration Manage IT Standards Manage Business Insights Manage Diversity Manage Strategic Plan Manage Internal Communications Manage External Communications Manage Knowledge Transfer Manage Communities Manage Storage Define/Develop Documentation & Content Monitor/Evaluate Performance Drive Product Excellence (Raj Biyani, Lynn Kepl) Engage/Guide Product Group Adopt Technology Manage Dogfooding Showcase Technology Evangelize New Product Opportunities Influence Product Direction Incubate Technology Manage Research & Development Align Business & IT Manage Steering Committees Manage Benefits Manage Transfer/ Termination Manage Supplier Risk Manage Internal Controls Manage IT Brand Manage IT Value Manage Architectural Review Board Manage Application Architecture Deploy Solution Plan Solution Close & Verify Benefits Manage Release/ Deployment Manage Solution Development Manage Requirements Develop Business Case Design Solution Manage Service Design Optimize Business Processes Manage Risk Manage Project Benefits Manage Change Manage Project Resources Manage Scope Manage Project Performance/Reporting/ Monitoring Build Solution Manage Verification & Testing Manage Project Initiation Manage Solution Quality Manage Solution Stakeholders Manage Project Planning Manage Security Policies & Risk Maintain Enterprise Architecture Manage Portfolio Funding Manage Service Level Agreements/Expectations Drive Project Management Excellence Medium Low High Medium # Large # Low # Maturity Goal Impact 16 Highest Value
Case Study 2 Future State of Procurement 23
Project Charter: Enable Enterprise-wide Procurement Efficiency and Effectiveness 24 Develop a platform strategy that supports Procurement Group’s new multi-year business strategy & goals by:  Developing a 3 year outlook of IT vision, direction, priorities, and goals based on strategy  Architecture Planning  Develop roadmap of capabilities needed to enable the business strategy  Develop traceability matrix across the business (demand, programs, process, technology, etc.)  FY Demand Management  Architectural planning that informs demand prioritization
Business Architecture Project Stages  Aggregation Data gathering / Strategy Roll-up CapabilityAnalysis/YOY Spend Application Road Mapping Documented Roadmaps  Alignment between Business, IT and Architecture Platform strategies Business strategy Application Strategy 25
26 Deliver recognized value to shareholders. Strategic Priorities Goals/Business ObjectivesMission Deliver maximum shareholder value for each dollar spent on the company’s behalf and set a new industry benchmark for efficiency, effectiveness and innovation in procurement. Measures& TimelinesVision Cost Management Reduced Risk Reduced time to market Category Management and Sourcing Business Alignment and Planning Supplier Relationship Management Our people and organizational Capability Develop consistent and specifically scoped category planning process Tenets Improve knowledge sharing about our top spend categories Develop of annual procurement plans for each geography and business division Connect the category planning process more tightly with the business partner planning Enhance supplier management focus in category teams Grow our teams capabilities How we work together Evangelism and Messaging Enhanced Brand Facilitating Revenue World Class Programs and Operations Create greater efficiency for stakeholders Supplier Diversity Vendor Privacy Assurance Procurement KPIs and Metrics
Core and Extended Capabilities 27
• HighValue • High Maturity Gap • LowValue • High Maturity Gap • HighValue • Low Maturity Gap • LowValue • Low Maturity Gap Stabilize Invest Sustain Process Improvement 28
Recommendations 1. Define Metrics andTimelines for SOAP 2. Identify and capitalize on shared capabilities 3. Ensure resources are focused towards high gap capabilities 4. Map Goals to applications and capabilities 5. Continue Application Simplification 6. Focus High Impact Capabilities 7. Consolidate BI Platform 8. Manage Business-owned and IT-owned Applications holistically 9. Build Multi year program cost estimates 29
Case Study 3 Enterprise Software Sales – Future State of Forecasting/Quota Management 30
Engagement Focus  Concentrate on Field Sales Management Priority Areas  Forecasting  Quota Management  ‘Shine the light’ on current portfolio, processes, capabilities and opportunities  Recommend path to streamlined future state with targeted investments and initiatives 31
Microsoft Confidential 32 32 SEGMENTOBJECTIVESSOAPS 1 Feb, 2011 – v4.0 DS Productivity & Effectiveness of Major Accounts Management Grow & Compete in Major Accounts Be Best in Class in Business Accounts Sales Excellence Drive Sales Excellence Enable the Field to land the Enterprise Operating Plan Land Sales basics through process & system simplification Maximize SMB Long Time Value (LTV) Enable best in class Business & Relationship Management processes and tools CAPABILITIES Land consistent global forecasting process in concert with segments Land shared pipeline view based on CRM Provide better seller optics into pipeline, contribution to scorecard, etc. to reduce users creating their own portals to extract information into a useable format for running their business. Streamline Lead transfer through partners by aligning CRM, BI, Metrics, and incentives 2.0 Manage Marketing 2.6 Manage Marketing Campaigns 2.7 Manage Targeting 2.24 Generate and Manage Lists 2.27 Manage Leads 2.30 Manage Market Forecast 2.25 Manage Marketing Contact Incidents 0-1 Objectives 2-3 Objectives 4+ Objectives 3.0 Manage Sales 3.2 Build Sales Plans 3.3 Manage Seller and Channel Incentives 3.6 Manage Sales/ Territory Planning 3.9 Plan Customer Accounts 3.11 Manage Telesales 3.14 Manage Opportunities 3.19 Measure Sales Performance 3.93 Manage Incentive Program Support 3.4 Manage Customer Segmentation 3.5 Manage Partner Segmentation 3.18 Measure Relationship Management 3.99 Manage Customer & Partner Information Be the Industry’s Leading Provider of Relationship Management Solutions Leverage Field Sales to Drive Customer Success from our products resulting in the Vision of the Company being realized
Capability Matur.Gap Perf.Gap Weight 3.2BuildSalesPlans 1 2 12 3.2.6Buildsalesquota 2 3 12 3.2.9Reconcile SalesandFinancial Forecasts 2 3 12 3.9PlanCustomerAccounts 2 2 10 3.14Manage Opportunities 2 2 8 3.18Measure RelationshipManagement -1 -1 8 3.19Measure SalesPerformance 2 2 12 4.4.1.1ServicesActivity andRevenue Forecasting 1 2 10 • Capabilities with high gap value identify opportunities for improvement - closure of performance gap primarily achieved through solution development; closure of maturity gap through managing to scorecard objectives and targets (people and process maturity) • Increase resolution of data points through assessment of capabilities at more granular levels • Increase value to inform planning and priority setting through weighting Capability datapoints – in this case degree to which Capability is in support of strategic objectives33
Delivering a High Performance Salesforce 34  Capabilities derived from EnterpriseVision and Goals  Capabilities enabled via:  People  Process  Data  Tools  A streamlined tools architecture resulting from Business Architecture engagement enables improved performance via Field Sales  Enhanced capabilities results in customer retention, growth and EnterpriseValue
Wrap-up Today’s session Takeaways 35  Enterprises realize their vision and mission via strategic execution to create enduring value  Business Architecture aligns strategy to execution via a structured approach  Capability modeling, capability assessment and heatmapping are key activities in the process  Measurements of realized Business Value via audits confirm the effectiveness of this approach  Growth in Business Architecture Maturity is reflected in:  Improved communication and collaboration across the enterprise  Efficient and effective use of IT capital
Questions & Contact Information 36  Sri Mandalaparthy  President/Founder  Blissful Consulting Corp  Business Architecture &Advisory Services  sriman@blissfulconsulting.com  SanderThomassen  Principal BusinessArchitect  EA@blissfulconsulting.com
Appendix 37
38 Business Architecture A discipline that leverages a structured approach to provide executives insights into strategic planning and creates value across the enterprise Business Architect Business Architect is a Strategy Consultant/Trusted Advisor Capability Defines the organization's desired or existing capacity to achieve a specific effect, goal or objective. Enterprises consist of a portfolio or matrix of capabilities that are used in various combinations to achieve outcomes • Resources - who in the organization should conduct business reviews and is the activity funded? • Process – is a process defined (or not) to defined to conduct business reviews (process may also be called Conduct Business Reviews)? • Technology – is there specific technology that is used when conducting business reviews? • Information – do I have the right data necessary to effectively conduct business reviews (critical business info, NSAT,who will be there, etc? Capability Modeling Capability Modeling exposes the business capabilities of an organization leveraging methods which enable classification, prioritization and analysis of specific business objectives. Capability Modeling analyzes business capabilities and assesses an organization’s ability to achieve objectives by understanding their relationship to other entities like resources, process, technology and information. Business Architecture: What Is It?

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Creating Enterprise Value from Business Architecture

  • 1. Creating Value … Driving Execution Blissful Consulting Corp
  • 2. Today’s session Takeaways 5  Enterprises realize their vision and mission via strategic execution to create enduring value  Business Architecture aligns strategy to execution via a structured approach  Capability modeling, capability assessment and heatmapping are key activities in the process  Measurements of realized Business Value via audits confirm the effectiveness of this approach  Growth in Business Architecture Maturity is reflected in:  Improved communication and collaboration across the enterprise  Efficient and effective use of IT capital
  • 3. Business Architecture Value Creation 6 Prioritized Program Investments* • Develop New Capabilities • Enhance Current Capabilities Application Portfolio Mgmt • Simplify Apps • Consolidate • Rationalize Information/Data Technology Architecture* • Standardize • Streamline • Re-platform Business Architecture Analysis & Outcomes * Collectively represent desired Future State Architecture
  • 4. Gold Medal Winners “Connect the Dots” 7 Vision • Clarity • Buy-in Strategy • Articulates ‘how to’ • Initiatives Capabilities • People & Process • IT Programs • Roadmap • Investments
  • 5. Business Architecture as a Program Business Architecture as a Service 8  Business Architecture  Translate strategy, goals and initiatives (and associated metrics) into capabilities  Design business architecture that enables targeted business capabilities & processes  Execute enterprise technology strategy assessment and planning  Manage IT investment portfolio to achieve strategic goals and business results  Measure ROI and business value realized from IT investments  Key Outcomes & Deliverables  Business – IT alignment  Multi-Year Roadmap  IT Portfolio & Platform/Technology Initiatives
  • 6. Telling the story – how Business Architecture creates Enterprise Value 9 Case Study 1 – Rationalizing $150MM IT Investment Portfolio Case Study 2 – Re-engineering a $20B Procurement Business Case Study 3 – Defining Future State of Forecasting and Quota Management in Software Sales
  • 7. Case Study 1 Roadmap of Operations Engagement 10
  • 8. Engagement Roadmap 11 Setting the stage Capturing Strategy, Goals and Capabilities Needed Assessing Capabilities (Value, Performance, Maturity) Identifying Gaps/ Opportunities Prioritizing Investments
  • 9. Setting the stage – Business Architecture primer for Stakeholders, Contributors 12  Business architecture is the translation of Business Strategy to prioritized Program investments that create and drive business value.  Business architecture success is enabled via  Business stakeholder engagement  IT and EA involvement  Business Architecture precedes, but is tightly integrated with  Application Architecture  Information Architecture  Technology Architecture  Business architecture maturity is driven by  formalizing the function and increasing awareness  CxO sponsorship  Business Architecture creates deliverables that drive business success  Capability Models  Multi-Year Roadmaps  Investment Prioritization Models
  • 10. 13 Business Value Definition Business Strategy & FutureTrends Strategic Planning Manage Demand Optimize Portfolio Manage Portfolio Manage Solution Delivery IT Services & Operations Strategic Planning • Business Architecture • Drives traceability across the business (demand, programs, process, technology, etc. • Translates strategy into a roadmap of capabilities needed to enable the strategy Manage Demand • Facilitates capture and business case development for strategic and tactical demand • Architectural planning informs demand prioritization Business Strategy & IT Outlook • Provides a 3-5 year outlook of business and IT vision, direction, priorities, and goals • Business Architecture completes analysis of goals Traceability Business Architecture Is a discipline that leverages a structured approach to provide executives with improved insights into strategic planning and driving greater business value via traceable views across the business Improved Insight &Traceability Business Value Definition identifies KPIs relevant to strategy and capabilities to calculate ROI Technology Models, Information Models Setting the stage – Business Architecture primer
  • 11. Business and IT Alignment – Strategy and Goals Capture 12/11/201214 • Business Architecture • Goals & Capabilities • Planning Infrastructure (Tool/Repository) Business-IT Alignment • Capability Models • Goals Analysis & Capability Mapping • Gaps & Overlaps Business Analysis • Prioritization • Program Recommendations • Consolidation Opportunities Portfolio Planning & Optimization
  • 12. Microsoft Confidential 15 Futuristic Networks Corp Strategy on a PageIMPERATIVES Be the leading provider of high-performance network infrastructure by transforming the experience and economics of networking. Our strategy is centered on innovation and customer value Serve the high-performance networking requirements of global service providers, enterprises, and public sector organizations that view the network as critical to their success PRIORITIES Leverage Position as Supplier of High- Performance Network Infrastructure Maintain and Extend Technology Leadership Be Strategic to Customers Win workloads vs. Cisco Build Next Generation Enterprise Services Platform Build a High Performing set of Roles Drive Sales Excellence Partner with Services to drive growth, deployment and penetration Enable the Field to land the Enterprise Operating Plan Land Sales basics through process & system simplification Enable New IP-Based Services Lead the future of productivity Excel at Execution Enable best in class Business & Relationship Management processes and tools Improve Customer and Partner satisfaction Simplify the Communications Sector ecosystem Scale Partner Led Industry Solution Area Selling Capture the upside in Web2.0 Integrate customer and partner relationship management, and health assessment practices, into a single CRM platform • CM growth > Billed Revenue growth • Total Selling Time > 60% • Revenue/FTE CAGR 6-8% FY11- FY13 • CSAT Targets • Deployment • Platform Mix Share of Wallet versus • CSCO, IBM, HP • Revenue growth 10% CAGR 2012-14 • Customer Adds • Wins with Partners VISIONMISSIONOUTCOMES Enable Partners with Services to drive growth, deployment and penetration
  • 13. 16 Business Architecture: Goals Analysis Goals analysis: Analyzed Strategic Plan, Commitments, Operational Scorecard “What” Description KPI “Impact” Time Improve Customer Experience strives to improve and orchestrate the end-to-end experience, resulting in bringing new concepts to market quickly, revenue growth and increased CPE, and will be measured by time to Customers' accepting new Offerings, by 2010. Goals Processes Information Systems Roles Goals, specific objectives Process Frameworks ITLC Information Models Applications IT Roles Strategic Plans, Programs, Commitments Business Capability Map, Analysis ITLC + Division Processes Subject Facet Model IT BusinessApps ITLC Roles/CSP Artifacts Required To Describe The Business KeyTakeaway Business excellence and traceability starts with clear, consistent organizational goals & commitments Manage IT Services & Operations (Jim Dubois, Walter Puschner) Manage Service/Applications Plan & Organize IT (Lynn Kepl, Matt Kellerhals, Shahla Aly, Neville Rademeyer, Jim Dubois, Barry Briggs, Raj Biyani, Walter Puschner, Christopher Fernandez, Tony Oliver) Manage Communications (Lynn Kepl) Manage Business Partner & Portfolio Planning (Shahla Aly, Raj Biyani, Lynn Kepl) Manage Planning & Strategy (Lynn Kepl, Matt Kellerhals) Manage Enterprise Architecture (Barry Briggs, Jim Dubois) Manage Portfolio Delivery (Shahla Aly, Neville Rademeyer, Jim Dubois, Walter Puschner) Manage Compliance & Risk (Jim Dubois) Manage Portfolio (Shahla Aly) Manage Services Infrastructure Manage IT Operations Manage Support Optimize Portfolio Manage IT Business Policies Align Business Strategy Manage Finances (Matt Kellerhals) Manage Demand Manage Business Demand Manage Service Request Demand Manage Compliance & Regulations Manage Incidents Manage Frameworks/ Methodologies Optimize Project Portfolio Identify Opportunities Manage Performance (Lynn Kepl) Manage Knowledge & Information (Shahla Aly, Barry Briggs) Manage IT Risk Manage Data & Data Quality Manage Capacity Manage Service Continuity Manage Security Manage Security Manage IT Lifecycle Manage Service Monitoring & Control Manage Network Manage Directory Services Manage Job Scheduling Manage Enterprise Operational Risk Manage Problems Manage Service Request Manage Communication Services Manage Collaboration Systems Develop Business Plans Maintain Strategic Drivers Maintain Roadmaps Integrate With Corp Strategic Planning Maintain Strategic Planning Process Manage Planning Responsibilities Optimize Service Portfolio Administer Systems Define Archival & Retention Manage Legal & Corporate Affairs (Tony Oliver) Manage ContractsManage IP Manage External Oversight Manage Solution Delivery Manage Legal Corp Services Manage Business Group Legal Counsel Manage Gov’t & Regulatory Affairs Manage Reports/ Scorecards Manage Product Group Demand Monitor Future Trends Manage Data Centers Manage Enterprise Business Continuity Manage Enterprise Application Portfolio Manage Suppliers (Matt Kellerhals, Lynn Kepl) Manage Sourcing Strategy Manage Supplier Relations Manage Procurement Manage Business Architecture Manage Information Architecture Manage Infrastructure Architecture Manage Forecasts Manage Capital Manage/Allocate Costs Manage Fixed Assets Manage Facilities Manage Fiscal Planning/ Budgets Manage Venture Integration Manage Accounts Payable Optimize Product Group Portfolio Manage Quality/ Continuous Improvement Manage Business Partner Relations (Shahla, Aly) Manage Customer/ Partner Satisfaction Manage Business Needs Develop Account Strategy Perform Business Reviews Manage Account Plan Manage Assets Manage Systems Change Monitor Service Agreements Manage Service Availability Manage Configuration Manage Source Code Manage Obsolescence Govern IT (Lynn Kepl) Manage Business Engagement Manage Business Readiness & Adoption Manage Human Resources (Christopher Fernandez) Manage Recruiting Manage Career Planning & Development Manage Learning & Development Plan/Manage Workforce Manage Leadership & Development Manage Organizational Design Review Employee Performance Manage Organizational Change Manage Succession Planning Manage Collaboration Manage IT Standards Manage Business Insights Manage Diversity Manage Strategic Plan Manage Internal Communications Manage External Communications Manage Knowledge Transfer Manage Communities Manage Storage Define/Develop Documentation & Content Monitor/Evaluate Performance Drive Product Excellence (Raj Biyani, Lynn Kepl) Engage/Guide Product Group Adopt Technology Manage Dogfooding Showcase Technology Evangelize New Product Opportunities Influence Product Direction Incubate Technology Manage Research & Development Align Business & IT Manage Steering Committees Manage Benefits Manage Transfer/ Termination Manage Supplier Risk Manage Internal Controls Manage IT Brand Manage IT Value Manage Architectural Review Board Manage Application Architecture Deploy Solution Plan Solution Close & Verify Benefits Manage Release/ Deployment Manage Solution Development Manage Requirements Develop Business Case Design Solution Manage Service Design Optimize Business Processes Manage Risk Manage Project Benefits Manage Change Manage Project Resources Manage Scope Manage Project Performance/Reporting/ Monitoring Build Solution Manage Verification & Testing Manage Project Initiation Manage Solution Quality Manage Solution Stakeholders Manage Project Planning Manage Security Policies & Risk Maintain Enterprise Architecture Manage Portfolio Funding Manage Service Level Expectations/Agreements Drive Project Management Excellence
  • 14. 17 • BusinessArchitecture • Goals & Capabilities • Planning Infrastructure (Tool/Repository) Business-IT Alignment • Capability Models • GoalsAnalysis & Capability Mapping • Gaps & Overlaps BusinessAnalysis • Prioritization • Program Recommendations • Consolidation Opportunities Portfolio Planning & Optimization Business Analysis – Capability models and gap analysis
  • 15. Capabilities (example) Assists With Analysis & Prioritization X X X X X X X X X X X X X X X X X X X Strategies Goals Mapping FY Initiatives Mapping Strategic Areas Prioritization Value//Perform/Maturity Key Business Capabilities & Potential Risks Of Achieving Goal Business Architecture: Capability Identification 1 2 3 Manage Quotes Manage Offers Manage Orders Manage Entitlement Manage Contract Manage reports Inform Strategic Planning Provides traceability from goals to initiatives Funded Initiatives 18
  • 16. Maturity Readiness Process Resources Goal Value Performance Business Capability InitiativeMapped Mapped What is the likelihood that I can achieve the goal based on the capability maturity? • Do I have a sponsor? • What are the high level state of my processes? • Do I have resources applied to this capability to support the achievement of the goal? Which capabilities are considered more important to success? Which capabilities are supported by organizational goals? Are there any initiatives planned or in flight that are implementing this capability and goal? Do I have goals for this initiative? How is the capability performing relative to the value to inform prioritization? Key Maturity Aspects Of Business Capability Maturity • Readiness (sponsor) - None, Accountable Sponsor, Responsible Person On Team • Process - adhoc, intuitive, defined, monitored, optimized • Resources - no resources to….. resources & tied to multi-year roadmap Business Architecture: Capability Modeling and Assessment 19
  • 17. Presentation Roadmap 20 • BusinessArchitecture • Goals & Capabilities • Planning Infrastructure Business-IT Alignment • Capability Models • GoalsAnalysis & Capability Mapping • Gaps & Overlaps BusinessAnalysis • Prioritization • Program Recommendations • Consolidation Opportunities Portfolio Planning & Optimization Portfolio Planning – Priorities and Optimization
  • 18. Portfolio Planning & Optimization 21  View investment opportunities against quadrant (high value & high gap – low value & low gap)  Variations on gap analysis by plots against current funding levels, strategic objective weighted rankings and other dimensions.
  • 19. Analysis Business Architecture: Consolidated Process 22 Aggregation Assessment & Gap Analysis 1. Analysis Of Capabilities, Goals, Initiatives 2. Develop recommendations and inform strategic planning Initial Goals Analysis 1. Analyzed Capabilities, Goals & Initiatives 2. Identified areas to inform FY Strategic Planning Goals Identification 1.Analyze Balanced Scorecard, Commitments ArchitectureModels 1. Collect key architectural artifacts including process, applications, information,, roles, etc 2. Provide scope and focus for architectural models 3. Load artifacts into repository for share/re-use 1 2 3 4 6 FY Strategic Planning 1. FY11 Strategic Planning Input 2. Planning analysis input 5 Ongoing FYxx FYxx Roadmaps 1. Validate Analysis 2. Complete FYxx Plan 3. Complete 3 Yr Plan 7 Dec/Jan Capability Map & Ratings 1.Establish capability scope 2.Assess relative importance, maturity and performance 3.Identified relative overall prioritization of business functions for further assessment Value Maturity Performance MaturityGAP Initiatives Goals MonitorFuture Trends 5 1 2 4 Manage IT Brand Image 5 1 3 4 Manage ProductGroupDemand 5 1 3 4 1 DevelopBusinessPlans 5 2 2 3 1 Manage BusinessArchitecture 5 2 2 3 Manage InformationArchitecture 5 2 3 3 Manage Application Architecture 5 2 2 3 9 3 Manage IntellectualProperty&Licensing 5 2 2 3 Influence ProductDirection 5 2 2 3 1 6 DesignProjectSolution 5 2 2 3 1 3 Align With BusinessStrategy 5 3 3 2 MaintainEnterprise Architecture 5 3 3 2 1 Manage Infrastructure Architecture 5 3 3 2 9 3 Manage ArchitecturalReviewBoard 5 3 3 2 2 1 MaintainPlanningRoadmaps 5 3 3 2 3 3 FY10 Strategy On A Page Goals Processes Information Systems Roles Goals, specific objectives Process Frameworks ITLC Information Models Applications IT Roles Strategic Plans, Programs, Commitments MSIT Capability Map, Analysis ITLC + Division Processes Subject Facet Model IT Business Apps ITLC Roles/CSP Artifacts Required To Describe The Business Key Takeaway: Enterprise Value Results from Investing in Capabilities that Drive Growth, Operational Excellence and Customer Delight Manage IT Services & Operations (Jim Dubois, Walter Puschner) Manage Service/Applications Plan & Organize IT (Lynn Kepl, Matt Kellerhals, Shahla Aly, Neville Rademeyer, Jim Dubois, Barry Briggs, Raj Biyani, Walter Puschner, Christopher Fernandez, Tony Oliver) Manage Communications (Lynn Kepl) Manage Business Partner & Portfolio Planning (Shahla Aly, Raj Biyani, Lynn Kepl) Manage Planning & Strategy (Lynn Kepl, Matt Kellerhals) Manage Enterprise Architecture (Barry Briggs, Jim Dubois, Shahla Aly) Manage Portfolio Delivery (Shahla Aly, Neville Rademeyer, Jim Dubois, Walter Puschner) Manage Compliance & Risk (Jim Dubois) Manage Portfolio (Shahla Aly) Manage Services Infrastructure Manage IT Operations Manage Support Optimize Portfolio Manage IT Business Policies Align Business Strategy Manage Finances (Matt Kellerhals) Manage Demand Manage Business Demand Manage Service Request Demand Manage Compliance & Regulatioins Manage Incidents Manage Frameworks/ Methodologies Optimize Project Portfolio Identify Opportunities Manage Performance (Lynn Kepl) Manage Knowledge & Information (Shahla Aly, Barry Briggs) Manage IT Risk Manage Data & Data Quality Manage Capacity Manage Service Continuity Manage Security Manage Security Manage IT Lifecycle Manage Service Monitoring & Control Manage Network Manage Directory Services Manage Job Scheduling Manage Enterprise Operational Risk Manage Problems Manage Service Request Manage Communication Services Manage Collaboration Systems Develop Business Plans Maintain Strategic Drivers Maintain Roadmaps Integrate With Corp Strategic Planning Maintain Strategic Planning Process Manage Planning Responsibilities Optimize Service Portfolio Administer Systems Define Archival & Retention Manage Legal & Corporate Affairs (Tony Oliver) Manage ContractsManage IP Manage External Oversight Manage Solution Delivery Manage Legal Corp Services Manage Business Group Legal Counsel Manage Gov’t & Regulatory Affairs Manage Reports/ Scorecards Manage Product Group Demand Monitor Future Trends Manage Data Centers Manage Enterprise Business Continuity Manage Enterprise Application Portfolio Manage Suppliers (Matt Kellerhals, Lynn Kepl) Manage Sourcing Strategy Manage Supplier Relations Manage Procurement Manage Business Architecture Manage Information Architecture Manage Infrastructure Architecture Manage Forecasts Manage Capital Manage/Allocate Costs Manage Fixed Assets Manage Facilities Manage Fiscal Planning/ Budgets Manage Venture Integration Manage Accounts Payable Optimize Product Group Portfolio Manage Quality/ Continuous Improvement Manage Business Partner Relations (Shahla, Aly) Manage Customer/ Partner Satisfaction Manage Business Needs Develop Account Strategy Perform Business Reviews Manage Account Plan Manage Assets Manage Systems Change Monitor Service Agreements Manage Service Availability Manage Configuration Manage Source Code Manage Obsolescence Govern IT (Lynn Kepl) Microsoft IT Business Capabilities Version 2.0 - 10/2009 Manage Business Engagement Manage Business Readiness & Adoption Manage Human Resources (Christopher Fernandez) Manage Recruiting Manage Career Planning & Development Manage Learning & Development Plan/Manage Workforce Manage Leadership & Development Manage Organizational Design Review Employee Performance Manage Organizational Change Manage Succession Planning Manage Collaboration Manage IT Standards Manage Business Insights Manage Diversity Manage Strategic Plan Manage Internal Communications Manage External Communications Manage Knowledge Transfer Manage Communities Manage Storage Define/Develop Documentation & Content Monitor/Evaluate Performance Drive Product Excellence (Raj Biyani, Lynn Kepl) Engage/Guide Product Group Adopt Technology Manage Dogfooding Showcase Technology Evangelize New Product Opportunities Influence Product Direction Incubate Technology Manage Research & Development Align Business & IT Manage Steering Committees Manage Benefits Manage Transfer/ Termination Manage Supplier Risk Manage Internal Controls Manage IT Brand Manage IT Value Manage Architectural Review Board Manage Application Architecture Deploy Solution Plan Solution Close & Verify Benefits Manage Release/ Deployment Manage Solution Development Manage Requirements Develop Business Case Design Solution Manage Service Design Optimize Business Processes Manage Risk Manage Project Benefits Manage Change Manage Project Resources Manage Scope Manage Project Performance/Reporting/ Monitoring Build Solution Manage Verification & Testing Manage Project Initiation Manage Solution Quality Manage Solution Stakeholders Manage Project Planning Manage Security Policies & Risk Maintain Enterprise Architecture Manage Portfolio Funding Manage Service Level Agreements/Expectations Drive Project Management Excellence Medium Low High Medium # Large # Low # Maturity Goal Impact 16 Highest Value
  • 20. Case Study 2 Future State of Procurement 23
  • 21. Project Charter: Enable Enterprise-wide Procurement Efficiency and Effectiveness 24 Develop a platform strategy that supports Procurement Group’s new multi-year business strategy & goals by:  Developing a 3 year outlook of IT vision, direction, priorities, and goals based on strategy  Architecture Planning  Develop roadmap of capabilities needed to enable the business strategy  Develop traceability matrix across the business (demand, programs, process, technology, etc.)  FY Demand Management  Architectural planning that informs demand prioritization
  • 22. Business Architecture Project Stages  Aggregation Data gathering / Strategy Roll-up CapabilityAnalysis/YOY Spend Application Road Mapping Documented Roadmaps  Alignment between Business, IT and Architecture Platform strategies Business strategy Application Strategy 25
  • 23. 26 Deliver recognized value to shareholders. Strategic Priorities Goals/Business ObjectivesMission Deliver maximum shareholder value for each dollar spent on the company’s behalf and set a new industry benchmark for efficiency, effectiveness and innovation in procurement. Measures& TimelinesVision Cost Management Reduced Risk Reduced time to market Category Management and Sourcing Business Alignment and Planning Supplier Relationship Management Our people and organizational Capability Develop consistent and specifically scoped category planning process Tenets Improve knowledge sharing about our top spend categories Develop of annual procurement plans for each geography and business division Connect the category planning process more tightly with the business partner planning Enhance supplier management focus in category teams Grow our teams capabilities How we work together Evangelism and Messaging Enhanced Brand Facilitating Revenue World Class Programs and Operations Create greater efficiency for stakeholders Supplier Diversity Vendor Privacy Assurance Procurement KPIs and Metrics
  • 24. Core and Extended Capabilities 27
  • 25. • HighValue • High Maturity Gap • LowValue • High Maturity Gap • HighValue • Low Maturity Gap • LowValue • Low Maturity Gap Stabilize Invest Sustain Process Improvement 28
  • 26. Recommendations 1. Define Metrics andTimelines for SOAP 2. Identify and capitalize on shared capabilities 3. Ensure resources are focused towards high gap capabilities 4. Map Goals to applications and capabilities 5. Continue Application Simplification 6. Focus High Impact Capabilities 7. Consolidate BI Platform 8. Manage Business-owned and IT-owned Applications holistically 9. Build Multi year program cost estimates 29
  • 27. Case Study 3 Enterprise Software Sales – Future State of Forecasting/Quota Management 30
  • 28. Engagement Focus  Concentrate on Field Sales Management Priority Areas  Forecasting  Quota Management  ‘Shine the light’ on current portfolio, processes, capabilities and opportunities  Recommend path to streamlined future state with targeted investments and initiatives 31
  • 29. Microsoft Confidential 32 32 SEGMENTOBJECTIVESSOAPS 1 Feb, 2011 – v4.0 DS Productivity & Effectiveness of Major Accounts Management Grow & Compete in Major Accounts Be Best in Class in Business Accounts Sales Excellence Drive Sales Excellence Enable the Field to land the Enterprise Operating Plan Land Sales basics through process & system simplification Maximize SMB Long Time Value (LTV) Enable best in class Business & Relationship Management processes and tools CAPABILITIES Land consistent global forecasting process in concert with segments Land shared pipeline view based on CRM Provide better seller optics into pipeline, contribution to scorecard, etc. to reduce users creating their own portals to extract information into a useable format for running their business. Streamline Lead transfer through partners by aligning CRM, BI, Metrics, and incentives 2.0 Manage Marketing 2.6 Manage Marketing Campaigns 2.7 Manage Targeting 2.24 Generate and Manage Lists 2.27 Manage Leads 2.30 Manage Market Forecast 2.25 Manage Marketing Contact Incidents 0-1 Objectives 2-3 Objectives 4+ Objectives 3.0 Manage Sales 3.2 Build Sales Plans 3.3 Manage Seller and Channel Incentives 3.6 Manage Sales/ Territory Planning 3.9 Plan Customer Accounts 3.11 Manage Telesales 3.14 Manage Opportunities 3.19 Measure Sales Performance 3.93 Manage Incentive Program Support 3.4 Manage Customer Segmentation 3.5 Manage Partner Segmentation 3.18 Measure Relationship Management 3.99 Manage Customer & Partner Information Be the Industry’s Leading Provider of Relationship Management Solutions Leverage Field Sales to Drive Customer Success from our products resulting in the Vision of the Company being realized
  • 30. Capability Matur.Gap Perf.Gap Weight 3.2BuildSalesPlans 1 2 12 3.2.6Buildsalesquota 2 3 12 3.2.9Reconcile SalesandFinancial Forecasts 2 3 12 3.9PlanCustomerAccounts 2 2 10 3.14Manage Opportunities 2 2 8 3.18Measure RelationshipManagement -1 -1 8 3.19Measure SalesPerformance 2 2 12 4.4.1.1ServicesActivity andRevenue Forecasting 1 2 10 • Capabilities with high gap value identify opportunities for improvement - closure of performance gap primarily achieved through solution development; closure of maturity gap through managing to scorecard objectives and targets (people and process maturity) • Increase resolution of data points through assessment of capabilities at more granular levels • Increase value to inform planning and priority setting through weighting Capability datapoints – in this case degree to which Capability is in support of strategic objectives33
  • 31. Delivering a High Performance Salesforce 34  Capabilities derived from EnterpriseVision and Goals  Capabilities enabled via:  People  Process  Data  Tools  A streamlined tools architecture resulting from Business Architecture engagement enables improved performance via Field Sales  Enhanced capabilities results in customer retention, growth and EnterpriseValue
  • 32. Wrap-up Today’s session Takeaways 35  Enterprises realize their vision and mission via strategic execution to create enduring value  Business Architecture aligns strategy to execution via a structured approach  Capability modeling, capability assessment and heatmapping are key activities in the process  Measurements of realized Business Value via audits confirm the effectiveness of this approach  Growth in Business Architecture Maturity is reflected in:  Improved communication and collaboration across the enterprise  Efficient and effective use of IT capital
  • 33. Questions & Contact Information 36  Sri Mandalaparthy  President/Founder  Blissful Consulting Corp  Business Architecture &Advisory Services  sriman@blissfulconsulting.com  SanderThomassen  Principal BusinessArchitect  EA@blissfulconsulting.com
  • 35. 38 Business Architecture A discipline that leverages a structured approach to provide executives insights into strategic planning and creates value across the enterprise Business Architect Business Architect is a Strategy Consultant/Trusted Advisor Capability Defines the organization's desired or existing capacity to achieve a specific effect, goal or objective. Enterprises consist of a portfolio or matrix of capabilities that are used in various combinations to achieve outcomes • Resources - who in the organization should conduct business reviews and is the activity funded? • Process – is a process defined (or not) to defined to conduct business reviews (process may also be called Conduct Business Reviews)? • Technology – is there specific technology that is used when conducting business reviews? • Information – do I have the right data necessary to effectively conduct business reviews (critical business info, NSAT,who will be there, etc? Capability Modeling Capability Modeling exposes the business capabilities of an organization leveraging methods which enable classification, prioritization and analysis of specific business objectives. Capability Modeling analyzes business capabilities and assesses an organization’s ability to achieve objectives by understanding their relationship to other entities like resources, process, technology and information. Business Architecture: What Is It?