Aligning Business Architecture with Business Design Overview ... Design thinking is fundamental to business design * “About Business Design.” ... Architecture Innovation Workshop

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

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 | 1

Engineering, Operations & Technology Information Technology

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






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



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.

https://www.rotman.utoronto.ca/FacultyAndResearch/EducationCentres/DesignWorks/AboutBD.aspx



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



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.



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



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.



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



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



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



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)



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



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


http://www.businessmodelgeneration.com/



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






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




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




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




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

http://en.wikipedia.org/wiki/Customer_experience



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



CX Design to Business Model Mapping (Example)

Value Proposition Canvas


Customer Experience

Design

Business Model

Innovation &

Strategy



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




Business/Operating Model to Business Architecture Mapping (Example)

Business Model


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



Other Considerations

Additional inputs

Business motivation

Business environment

Analytical methods

Strategic business

scenarios & alternatives

Requirements

Integration and quality checks




Establishing a Design-Oriented BA Practice

Personal readiness

Expertise development

Practice

Sharing your learnings

Networking

Organizational readiness




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




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




Discussion

Documents

Aligning Business Architecture with Business Design Overview ... Design thinking is fundamental to business design * “About Business Design.” ... Architecture Innovation Workshop