Integrated Strategy-to-Delivery

Connecting the Business Model Canvas, Business Architecture & Agile/SAFe

IIBA Building Business Capability November 3, 2016 [email protected]

AgileLayer Copyright © 2016 AgileLayer. All Rights Reserved.

1

Topics

1.  Overview of Business Architecture and Capabilities-based Planning (“CbP”) 2.  How does Business Architecture/CbP impact a BA practice? 3.  Integrated Planning & Requirements Life-cycle Model • 

Connecting: Business Model Canvas à Business Architecture à Agile/SAFe

4.  IIBA Chapter Exercises:

Business Model Canvas & Capability-level requirements

5.  A better Planning Concepts Model 6.  Capabilities-based Planning Outputs 7.  Q&A

AgileLayer

Capabilities-based Planning: Context

Strategy-to-Execution continues to be a substantial problem at most enterprises, and a significant drag on Value Realization.

AgileLayer

Strategy-to-Execution:

Challenges

Only 56% of strategic initiatives are successful, and only 9% of surveyed firms rated themselves as excellent at strategy execution.

The PMI’s Pulse of the Profession reports that a lack of alignment between projects and organizational strategy was said to lead to project failure 44% of the time.

AgileLayer

Strategy-to-Execution:

The Prescription

Capability-based Planning has emerged over the past 8 years as the preferred Strategy-to-Execution approach

AgileLayer

Addressing the Strategy-to-Execution Gap

Strategy to Execution Gap

Too easy to get focused on: •  Features •  Vendor Solutions Execution

•  Technology

AgileLayer

Addressing the Strategy-to-Execution Gap

1.  Are at the right level of abstraction for all Stakeholders groups

2.  Are value/purpose-centric 3.  Provide for the “bucketing” of lower-level implementation elements

Execution

AgileLayer

Key Strategy-to-Execution Inhibitor:

Disconnected Life-Cycles

Strategy

Programs

Projects

Software Devt.

Application Mgmt.

Business Processes

Product Mgmt.

Capabilities

Disparate: •  Owners •  Purpose •  Processes •  Outputs •  Governance •  Time Horizons •  Tooling

AgileLayer

Driving Value à through better Alignment, Coordination & Insight

Strategy

Innovation

Drives alignment across Planning disciplines

Projects

Business Architecture Framework

Capabilities Focus on the innovation & enrichment of our Capability Portfolio

AgileLayer

Driving Value à through better Alignment, Coordination & Insight

Strategy

Innovation Informs & Enables Focuses

Enriches

Where to Invest?

Capability Por7olio

Projects Enrich

Produces

AgileLayer

Ensuring our Capability Investments Deliver Business Value

Leading Distincti ve

Parity

Capability Assessment Lagging

Strategy

2015 No Centralized Consumer Strategy No Consumer Golden Record or Data No Demographic Data

Market Segmentation and Analysis

Limited Analytical Skills No Specialized Analytical Tools No Business Processes to Validate Results

Launch B2C Business Model

No B2C Partnership Strategy No Technical Infrastructure

Joint Venture Product Development

Project Investments

Capability Gaps / Opptys.

No Skill Sets No Delivery or Service Organization Current Products are Internally Focused

2016

Business Impact 2017

Define Consumer Strategy

2015

Develop Segmentation Strategy

Complete 360 data available for Analysis across enterprise Improved Marketing Efficiency and Ability to market to individuals

Enhance Customer Records)

Improved Upsell Conversion Rates

Develop Customer Golden Record

Current Maturity

Standardized Reporting and Dashboards

Develop Segmentation & Analytical Skills Dev. Enterprise-wide Culture & KM

Identify B2C Partnership Strategy and Initial Partnerships

Improved Understanding of Customer Needs

Create Integration DW Pilot with Business Partner

Rapid Product Implementation Improved Product Competitiveness

Create Partnership Dev. Org Build External Service Delivery Org.

Ability to Quickly ID Partnerships Easier to do Business with Improved Customer Loyalty Broader Influence on Customer Behavior

Strategic Impact = MED

2017

Clear Strategy for Consumer Engagement

Augment Current Products

= HIGH

2016

= LOW

Target Maturity

AgileLayer

Ensuring our Capability Investments Deliver Business Value $40M Contract Admin

$30M

(PotenMal Over Investment)

InformaMon Mgmt.

Claims

Investment Level $20M

Risk Mgmt. IT Mgmt.

Sales Customer Service

(PotenMal Under Investment)

$10M HR Mgmt.

Business Mgmt.

= lags industry

Channel Mgmt.

Finance & AccounMng MarkeMng

Current Maturity Maturity aTer Investment

Product Mgmt.

LOW

= industry parity

= leads industry

Capability Business Impact = differenMaMng

HIGH

AgileLayer

Focusing discussion on “Capability” and the attendant Value (vs. on detailed/execution concerns) helps better translate Strategic Imperatives into successful Change Programs

BABOK V3

“Business Capabilities describe what an enterprise is able do.” (the “what”, vs. the “how”)

10.6 Business Capability Analysis 10.6.1 Purpose

“We need the ABILITY to generate personalized renewal offers” (to drive drive Retention) Retention) (to

“We need the ABILITY to send event-driven alerts to mobile customers” Cx) (in order to bolster the CX)

Business capability analysis provides a framework for scoping and planning by generating a shared understanding of outcomes outcomes, identifying alignment with strategy, and providing a scope and prioritization filter.

10.6.2 Description Business capability analysis describes what an enterprise, or part of an enterprise, is able to do. Business capabilities describe the ability of an enterprise to act on or transform something that helps achieve a business goal or objective. Capabilities may be assessed for performance and associated risks to identify specific performance gaps and prioritize investments. Many product development efforts are an attempt to improve the performance of an existing business capability or to deliver a new one. As long as an enterprise continues to perform similar functions, the capabilities required by the enterprise should remain constant—even if the method of execution for those capabilities undergoes significant change.

AgileLayer

“Capabilities” force us to think & manage Holistically

Capabilities are multi-faceted

“Agent On-Boarding” •  •  •  •  • 

Agent Portal Work Flow Automation Dedicated Specialist Staff Fast-Track Policies Agent Liaison Program

AgileLayer

Definition:

“Business Architecture”

“Business architecture is the bridge between the enterprise business model and enterprise strategy on one side, and the business functionality of the enterprise on the other side.”

“Capabilities” play a central role in the Business Architecture

AgileLayer

- Shared Semantics

- Linkage & Traceability - Roadmap Foundation All Capabilities Channel Management

Sales Contract Acquisition

Channel Planning

Channel Development

Business Management Channel Execution

Enterprise Effectiveness Management

- Living Reference Model Customer Service Relationship Planning

Relationship Management

Claims Claims Planning

Claims Life-cycle Management

Fill Legend: Capability Health

= Strong = Attention Required = Risk

Border Legend: Capability Importance

= Critical = Moderate = Nominal

AgileLayer

Driving Change through the Business Architecture All Capabilities Channel Management

Sales Contract Acquisition

Channel Planning

Channel Development

Customer Service

Business Management Channel Execution

Enterprise Effectiveness Management

Relationship Planning

Relationship Management

Claims Claims Planning

Claims Life-cycle Management

Fill Legend: Capability Health

= Strong = Attention Required = Risk

Border Legend: Capability Importance

= Critical = Moderate = Nominal

Current-State Business Architecture

High-level Requirements

* New Capabilities * Existing Capabilities: - As Is - With Changes/Improvements

All Capabilities Channel Management

Sales Contract Acquisition

Channel Planning

Channel Development

Business Management Channel Execution

Enterprise Effectiveness Management

Customer Service Relationship Planning

Relationship Management

Claims Claims Planning

Claims Life-cycle Management

Fill Legend: Capability Health

= Strong = Attention Required = Risk

Border Legend: Capability Importance

= Critical = Moderate = Nominal

AgileLayer

Target-State Business Architecture

“Capabilities” allow Planning at various levels of Abstraction

Abstraction Level

“Ability to create longterm, meaningful relationships with Millennials”

“Ability to rapidly develop products & services, leveraging partner collaborations”

“Ability to provide Price Transparency to Customers”

“Ability to produce a 360º view of Customer data”

AgileLayer

Planning leverages a layered Capability-Technology Model

Personalized Content to Mobile Customers

Business Capabilities

This layering enables various stakeholder groups to plan, manage, innovate Close-range Location Detection

and invest in a coordinate, optimal manner.

Enabling Capabilities

Technology, et al Apple iBeacon

AgileLayer

Innovating our Distinctive & Critical Capabilities

Distinctive Capabilities

Digital Enabling Capabilities

AgileLayer

Innovation Sourcing

AgileLayer

Key Questions

•  What Capabilities do these

Innovations deliver?

•  How will they impact our key

strategies and imperatives?

•  How do they fit with our

current Capability Portfolio?

•  How do they align with our

Capability Roadmap?

AgileLayer

= ACORD IC Winner

ACORD Innovation Challenge winners ID

Innovation Domain(s)

Innovation

Source

= ACORD IC Finalist

Capability(s) Impacted/Delivered

1

Customer Experience

Real-Time Claims Guidance and Claimant Adjustment of Claims

Livegenic

Claims Handling

2

Platform; Analytics

Combined Data Analytics and Data Conversion for Core Modernization

Insurity’s Insurance Enterprise View

Data Management; Data Analytics

3

Cost/Margin; Customer Experience

Detection & notification of risky driver behavior (speeding; unauthorized car use; cell phone use)

VRM Telematics

Vehicle Risk Mitigation

4

Youth Market; Customer Experience

Targeting younger customers for online life insurance with clear language and immediate decisions on up to $1 million in term coverage from A++ rated carriers

Haven Life

Promotion Management; Service Bundling & Customization; Contract LifeCycle Management

5

Platform

ACORD Information Model-driven Solution Frameworks for Adaptive Case Management, Mobile, Customer Communication Mgmt. & Capture

ISIS Papyrus Software

Application Development; Application Maintenance

6

Cost/Margin; Customer Experience

Real-time, predictive Social Media-driven Risk Scoring

Social Intelligence

Underwriting

7

Cost/Margin

Advanced risk discovery tool using big data and innovative search technologies, natural language processing, artificial intelligence and proprietary noise reduction algorithms for underwriting

IntellectSEEC

Underwriting

8

Cost/Margin; Customer Experience

Smart home solution using sensors to connect a home to the cloud and preferred service providers for loss avoidance & claim reduction

SPLICE Software

Underwriting

9

Platform

Creation of a national business exchange for P&C companies to support the sale and transfer of books of business between carriers

Bolt Solutions

Contract Administration; Channel Management

10 Cost/Margin

Automation of agency policy review process to analyze if the EZLynx Retention premiums, discounts and coverages remain competitive and reCenter market only those policies at the highest risk of being uncompetitive

New

Agency Policy Review & Management

AgileLayer

Example:

Modeling Capability Innovations

AgileLayer

Roadmap:

Customer Experience Initiative

AgileLayer

Value of Capabilities-based Planning: Direction

Business Needs Capability-1

The “Connected” View

Investment Investment Overlap Overlap

Investment

Project-A

Strategy-X Capability-2 •  Dependencies?

Project-B

•  Synergies? Capability-3 Strategy-Y

•  Risks?

Capability-4

•  Conflicting Investments? Capability-5 •  Investment Overlap? Strategy-Z

Project-C

Project-D

Capability-6 Non-strategic Investment

Scaling Innovation

Assets / Enablers I

I

S¹

S²

Asset Redundancies

AgileLayer

Capabilities as “pivot point” for Integrated Planning

Where do we Focus?! Strategy Creation

Strategy Execution Enables

Directs / Constrains

Business Innovation and Transformation

Realizes Supports Analysis

Informs

Capability Model Realizes

Frames Solutions Product Directs & Delivers Planning &

Management

Merger, Acquisition & Divestiture

Drives Planning

Capability Roadmap

Directs

Outsourcing Program

Coordinated Planning Frames Planning at the “right” level Realizes

Business-IT Projects

Asset Streamlining Customer Experience Mgmt.

AgileLayer

Where do we Focus?!

Strategy Creation

PRE- Merger, Acquisition & Divestiture

Business

Strategy Execution / Investment Planning Business Streamlining

Outsourcing Program

POST- Merger, Acquisition & Divestiture

Product Planning Business Transformation & Innovation Customer Experience Management

•  Opportunity? Business-IT Projects

•  Skills? •  Relationships?

IT

•  Credibility? IT Consolidation

•  Methods? •  Best Practices?

Tactical

Strategic

AgileLayer •  Deliverables Templates?

Usage Patterns for Capabilities-based Planning Capability-level requirements are defined for a Discipline and/or for work-effort within a Discipline

“Discipline-based”

Customer Experience Mgmt.

Strategic Planning

“Strategic”

Product Line Planning

Operational Excellence

Innovation

Current, potential, and competitors’ Capabilities are considered during the Strategy Formation process

IT Architecture is mapped to Capability Model (aka Business Architecture)

“Mid-Flight”

“Directional”

= max. leverage

= low leverage

During the Program Formation process, Capability-level requirements are defined for each Program and rationalized across Programs

Program Formation

Requirements for new and/or improved Capabilities are determined based on the Strategy portfolio. These requirements will serve to define/shape the execution Programs

“Mid-Flight”

“Untethered”

“Myopic”

Project Conception

Capability-level requirements are produced for each defined Program

Where are the best opportunities for leveraging Capabilities-based Planning?

IT Architecture

Capability-level requirements are defined during Project Conception

Execution / Project Delivery

AgileLayer

BD&A Innovation Lenses

Opportunity: Capabilities-driven Innovation

Social

Timeliness

Context

Sources Colla