Enabling Business Agility The Business Agility Manifesto www

Enabling Business Agility: The Business Agility Manifesto www. processrenewal. com © Process Renewal Group 2018 Roger T. Burlton, P. Eng. , CMC +1 -604 -240 -5436 Roger. burlton@processrenewal. co m Twitter: @Roger. Burlton www. processrenewal. com 1

Ages and Revolutions: In the Knowledge Age, Change is Perpetual Industrial Revolution Knowledge Revolution www. processrenewal. com © Process Renewal Group 2018 3

Agility is needed because of • • • Accelerating change Digitalization and Technology Fast time to market Short time in market Fast change in market Customer centricity End to end value orientation Rising complexity Legacy artifacts Risk of change itself … www. processrenewal. com © Process Renewal Group 2018 Social Legal Technical Our Enterprise Political Economic Environ-mental 4

Our Concern and Motivation Business Architecture Manifesto * We are still focused on technology, machinery, techniques (e. g. lean, agile, capabilities), speed, software … we are still writing code. We now have billions of lines of code. • • Is it flexible? No. Is it integrated? No. Is it reusable? No. Is it interoperable? No. Is it aligned with business strategies? No. Is it secure? No. Is it meeting expectations? No. www. processrenewal. com © Process Renewal Group 2018 5 * Ref: Burlton, Ross, Zachman …. .

Definition “True Business Agility” is the ability to modify dynamically the concepts and structures of the business itself for maintaining relevance in the context of a dynamically changing, complex and uncertain operational environment. John A. Zachman 2018 Business Agility Manifesto www. processrenewal. com © Process Renewal Group 2018 6

Russian Version Предисловие к Манифесту гибкости организаций Авторы: Роджер Берлтон (Roger T. Burlton), Рональд Росс (Ronald G. Ross) и Джон Закман (John A. Zachman) Перевод: Алексей Петров (Alexey V. Petrov), Алия Нуриева (Aliia Z. Nurieva)1 https: //busagilitymanifesto. org/10 -translations/42 -preface-to-thebusiness-agility-manifesto-rus www. processrenewal. com © Process Renewal Group 2018 8

Business Agility Manifesto – Core Concept Diagram Strategy Perspective drives Perpetual Change impacts Value Perspective Value Chain Model requires supports Business Integrity describes Value Chain helps ensure Business Capability depends on supports delivers Business Value requires Business Strategy Business Knowledge provides access to Business Knowledge-Base frames Concept Model is part of Knowledge Perspective is part of © Business Rule Solutions, LLC. 2017. , © Process Renewal Consulting Group (2015), Inc. 2017. © John A. Zachman, Zachman International. 2017. Permission is granted for unlimited reproduction and distribution of this document under the following conditions: (a) The copyrights and this permission notice are clearly included. (b) The work is clearly credited to its three authors. (c) No part of the document, including title, content, copyrights, and permission notice, is altered, abridged or extended in any manner. www. processrenewal. com © Process Renewal Group 2018 9

Let’s talk about Strategy www. processrenewal. com © Process Renewal Group 2018 10

General Management Imperatives: The following General Management Imperatives are paramount for consideration and deliberate application in creating such an agile, dynamic operating business. • Facilitate Business Change – Changes to the business in minimum time, with minimum cost, minimum disruption, and minimum risk of failure. (“Change” includes market change, regulatory change, technology change, labor market change, strategy change, etc. ) • Create Value – Value for Customers, Shareholders, Community, Posterity, etc. • Implement Business Strategies – Ensure Business Operations Implement the Business’ Strategic Intentions • Provide Security – Physical and Cyber Security for People and Property • Assure Sustainability – Sustainability in the Context of Business Ecosystem Changes • Manage Business Risk – Risk of Loss of Money, Customers, Assets, Good Will, Credit, Compliance, etc. • Encourage Appropriate Innovation or Control – Balance Disruption vs. Optimization • Enable Collaboration – Collaboration Internally Within the Business as well as Externally with Other Businesses • Optimize Resources – Identify/Qualify Investment Alternatives and Maximize Resource Utilization through Sharing and Reuse • Manage Knowledge – Manage Business Knowledge for Knowledge Advantage 11 www. processrenewal. com © Process Renewal Group 2018 © Roger T. Burlton, Ronald G. Ross & John A. Zachman

Strategic Requirements: Assess STEEPL Factors How should we deal with the external factors? What are the risks? Social Legal Technical Our Enterpris e Political Economic Environmental STEEPL www. processrenewal. com © Process Renewal Group 2018 Business Scenarios SWOT 12

What True Business Agility Is Need a perpetual ability to dynamically adapt with as little disruption as possible Dynamic Continuous Innovation Business (Re)invention Stable Business as Usual Continuous Improvement Stable Dynamic Products & Services Processes & Capabilities www. processrenewal. com © Process Renewal Group 2018 13

Perpetual Broadening Value Chains: The Real End-to-End Collaborative Innovation from supplier’s supplier to customer’s customer • A value chain describes all of the work required to conceive, plan, market, sell, deliver, optimize and manage a set of products or services that satisfy a given set of customers. • All products or services servicing the same market are the result of a single value chain. www. processrenewal. com © Process Renewal Group 2018 14

Let’s talk about how value is defined. www. processrenewal. com © Process Renewal Group 2018 15

Outside Business Stakeholders Define What is of Value! • Outside Stakeholders expect results from us that are of value to them • We have expectations from our Stakeholders that will benefit us • We jointly experience our relationship • It’s more than just the Customer relationship www. processrenewal. com © Process Renewal Group 2018 16

Stakeholder Value attributes: Who Cares? There must be a relevant stakeholder • All aspects are potentially important • Exchanged Items • Expected Outcomes • Experience • Some aspects could predominate • Full value comes from full realization www. processrenewal. com © Process Renewal Group 2018 17

Aspects of Business Value: What’s Important to Stakeholders at all levels? What Things? Exchanged Items • Tangible things – the beginning of value • Products, Services, Information and commitments • Items should be countable • Items are not assessments www. processrenewal. com © Process Renewal Group 2018 18

Aspects of Business Value: What’s Important to Stakeholders at all levels? What Benefit? Expectations of benefit • What important stakeholder needs will be achievable by receiving the items? • What can the recipient do in their world that they could not do before • Falling short leads to relationship failure www. processrenewal. com © Process Renewal Group 2018 19

Aspects of Business Value: What’s Important to Stakeholders at all levels? What Experience? Experience of interaction • • How did they feel while interacting with us? How we and they drive services How we and they interact with each another How we can differentiate when Exchanges and Expectations are similar in the industry www. processrenewal. com © Process Renewal Group 2018 20

Consolidated Value - Exchanges, Expectations and Experiences - is the basis for measurement Measures - KPIs Value Item Delivery Value Benefit Value Experience Value www. processrenewal. com © Process Renewal Group 2018 21

Value Chains Value Chain • The Value Chain is comprised of a set of Value Streams • The Value stream is an end-to-end set of value creating Processes (activities) that create a result of value for a customer or other external stakeholder in response to a specific trigger. • The Value Streams provide a context for and are enabled by business capabilities www. processrenewal. com © Process Renewal Group 2018 Level 3 Process 1. 1. 1 Level 1 Process (Value Stream) 1. 0 Level 1 Process (Value Stream) 2. 0 Level 2 Process (Value Stream Stage) 1. 1 Level 2 Process (Value Stream Stage) 1. 2 Level 2 Process (Value Stream Stage) 1. 3 Level 3 Process 1. 1. 2 Level 3 Process 1. 1. 3 23

Internal Business Design must Align with Outside Value Needs I need to increase sales I need to reduce risk I need to keep my job I need to cut costs I need to optimize cash I need to deliver new products Customer Regulator I need you to provide the service you promised Staff Supplier www. processrenewal. com © Process Renewal Group 2018 Owner 24

Let’s talk about Business Knowledge www. processrenewal. com © Process Renewal Group 2018 25

Connecting Concepts To form a Concept Model Small sample involving Stakeholders: Consumer, Regulator and Partner Financial Transaction Concept Model a set of business concepts as represented by standard terms and business definitions along with the logical connections among the concepts Provides authorization for Order Regulator provides places Partner Regulation Agrees to Partnership Agreement www. processrenewal. com © Process Renewal Group 2018 Consumer Commits to Constrains Is given for Financial Service FS Agreement prices is relevant for 27

Business Knowledge Management • Effective management of business knowledge requires that it be rendered in explicit, accessible, protected, sharable, re-usable, retainable, and updatable form accessible to all business audiences. • Effective management of business knowledge requires a formal storage facility for sustaining its currency and integrity. • The Business Knowledge-Base provides permanent transparency about design decisions in configuring business products and processes. • The Business Knowledge-Base is critical for locating and reusing business capabilities, and for dynamically predicting and mitigating the impacts of change. www. processrenewal. com © Process Renewal Group 2018 28

Business Knowledge Domains: example of many-to-many interdependent associations Business processes require shared capabilities delivered as shared services Processes Things we do, measure and manage Capabilities that must change to improve broken processes Processes impacted by any change in capability Capabilities www. processrenewal. com S © Process Renewal Group 2018 Things we develop, implement and use 29

In Conclusion www. processrenewal. com © Process Renewal Group 2018 30

Agile and Agile: FREEDOM WITHIN A FRAMEWORK “True freedom is not the absence of structure — letting the employees go off and do whatever they want — but rather a clear structure that enables people to work within established boundaries in an autonomous and creative way. ” Erich Fromm (1900— 1980) German-born American psychoanalyst and social philosopher www. processrenewal. com © Process Renewal Group 2018 31

In Summary • The Knowledge Age will demand value and will challenge loyalty • Pressures will require new business models and operating models designed to change • This is about business value not about software or organization charts • Value-oriented architecture, design and management is essential to survive and thrive Flying in formation Business Agility needs Business Architecture – Join me for the following workshop • Business Knowledge is required to sustain value 32 www. processrenewal. com © Process Renewal Group 2018