Value stream diagram w Capabilities

Value stream diagram w Capabilities

Nicely done Insightful I really like it. Well done! Business Architecture in 16 slides making sense of Functions, Capabilities, Services, Value Streams and Processes Illustrated using ArchiMate and concluding with a meta model that makes sense of TOGAF 9 Last updated: Sunday 17th of November 2019 Extract from architect training at Organization Decomposition Inputs to Business Architecture Enterprise Sales & Marketing Sales Organization Unit Organization (management) structure Typically decomposed from the top down May be supplemented by some matrix management Each unit has a manager, responsible for Budget, sociology, psychology and HR matters Monitoring and reporting of actors activities Goal/ Objective Goal/objective structure Typically decomposed from the top down May be spread across a balanced score card May be aligned with the organization structure Should be SMART, with quality measures (variables) Extract from architect training at

Marketing Delivery Claim Receipt Money Operations Questions a business architect may ask and answer Goal/ Objective Business Service Function/ Capability Org Unit Location We want a free-car parking function/capability Process/ Value stream 1. Why? What are the goals of the business? Role Actor Attract more customers to the hotel. 2. What services will the business offer/provide to achieve those goals? Free valet parking of a car (along with other services) 3. What processes must be performed to deliver those services? Verify customer Park car Verify

owner Retrieve car 4. What roles are needed to perform activities in the processes? (And how many actors?) Valet (3) 5. What organization units are needed to manage the actors? Front desk management 6. What are the locations where the processes are performed? Hotel entrance and car parks Extract from architect training at Simplified of course! Functional Decomposition Diagram or Capability Map A logical business structure This divides business operations into logically distinct groups, arranged in a hierarchy Every Function needs (some say delivers) a Capability. To be realized, a Function/Capability must be assigned to one or more Organization Units. The organization hierarchy may be the same (in a functional organization) or different, in which case Functions or Capabilities may be mapped to Organization Units in a matrix. Strategic management functions Fiscal and accounting Strategy Risk and Compliance Performance Operational functions Sales Marketing Products

Customer care Product definition Market development Distribution channels Customer service Customer relations Product engineering Campaigning Sakes execution Service channel Customer data Money Assets Claims Investment Investment performance Banking Accounts Contracts

life cycle Claim settlement Investment portfolio Asset inventory Cash flow Money market Contract admin. Claim admin. Support functions Organization HR Process Office Facility ITSM Diagram adapted from an ArchiMate example Extract from architect training at Services the required behavior You can define each Service that a Function, Capability or Organization Unit (also Application or Technology) is required to provide, in a contract. (All systems are composable and decomposable. Every service, at every level, terminates in a result of value to its users.) Service name: Park guests car Entry conditions Input: Car keys, Room number Precondition: Check in complete

Exit conditions Output: Car parked Postcondition: Car location recorded Quality of Service measures Time: 5 minutes Volume: 150 a day etc. Service name: Turn data into insights Entry conditions Input: Data Precondition: Data is available Exit conditions Output: Insight given to managers Value: Better decisions made Quality of Service measures Time: I day Volume: Once a week etc. SERVICE CONTRACT Service name Entry conditions Inputs/Supplies other Preconditions Exit conditions Outputs/Products other Postconditions The value to users of the service Quality of Service measures Time Volume etc. Given a required Service, you can define the Process(es) needed to complete it. Extract from architect training at Service name: Turn data into insights Entry conditions Input: Data Precondition: Data is available Exit conditions Output: Insight given to managers

Value: Better decisions made Quality of Service measures Time: I day Volume: Once a week etc. Value Stream (cf. Process Flow) mapped to Capabilities A behavioral model of business operations A Value Stream is a high-level, end-to-end Process, divided into broad stages, each divisible into several/many activities. This arrow means "provides functionality. In a high level process, you may link stages to Functions, Organization Units or Capabilities, Every end-to-end process may be decomposed into shorter processes with shorter steps, and at that lower level you may link steps to Roles played by individual Actors. Extract from architect training at Diagram copied from a Linkedin discussion of ArchiMate Functional decomposition diagrams as capability maps A function gives a name to activities and services needed to meet some aim(s) A capability gives a name to abilities needed to meet some aim(s). Since the concepts are in 1-to-1 correspondence, a Capability Map looks like a Functional Decomposition Diagram, they are indistinguishable in appearance and possible uses. The Functional Decomposition Diagram in TOGAF Shows on a single page the capabilities of an organization that are relevant to the consideration of an architecture. By examining the capabilities of an organization from a functional perspective, it is possible to quickly develop models of what the organization does without being dragged into extended debate on how the organization does it. Once a basic diagram has been developed, it becomes possible to layer heat maps on top of this diagram to show scope and decisions (e.g. the capabilities to be implemented in different phases of a change program.) Extract from architect training at EBF Classical structured analysis

EBF EBF EBF Any logically coherent division of business activity can be called a function. At the bottom of a Functional Decomposition Diagram (FDD) is an Elementary Business Function You can group lower level functions into higher level functions using whatever cohesion you like. Say, functions that meet one goal, create the same data, need the same skills, etc. You can draw several FDDs, but most settle on the FDD that speaks best to business people. Atomic Business Activity It might be structured using a compromise between different cohesion criteria. If drawn to resemble the organization/management structure, you may have to duplicate some atomic activities at the bottom level. Each Value Stream or end-to-end Process can be decomposed into shorter lower level Processes/steps. A bottom-level Process/step is an Elementary Business Process EBP EBP EBP EBP Structural decomposition normally stops higher than behavioral decomposition, but there is a verification principle. Every EBP must either appear as an EBF in the FDD - meaning the "atomic activities are the same Or else be assignable to an EBF - if the Functions are not decomposed as far as the Processes. Extract from architect training at Common functions and applications If a high level function in a FDD (e.g. Sales) is mapped to two or more organization units because the organization is structured using some other criteria (like customer type, product type, or region). that may result in duplication of applications across the enterprise. Sales If further decomposition of functions at the bottom of a FDD

reveals common functions atomic activities (like Complete Timesheet or Write Letter) wider functions (like Ledger Maintenance or Transport). duplicate applications may be found there also. Catalog all functions of interest, whether in an FDD or not Extract from architect training at X X X An enterprise is a system of systems? A business is an infinitely complex social network in which people often act in ad hoc ways A business and its systems unlike a homeostatic animal or machine Overlapping Impromptu only system-like in particular behaviors A business is a mess of systems employs many systems, coordinates some of them progresses many variables, regulates some of them extends, changes and digitizes its systems incrementally Nested Discrete Cooperating & competing Disorderly EA strives to tidy up the mess, but cannot standardize, coordinate and digitize all activities Extract from architect training at Ad hoc x Competing

Principles of activity system modelling Architects model how the parts of a system interact in a whole The whole (or top) is the entity you choose to describe systematically. The elementary parts (at the bottom) include atomic activities performable without further definition. individual actors and components that can be bought, hired or employed to perform activities At a more abstract level, architects model Motivations - goals and objectives Behaviors needed to meet the motivations - services and processes Information needed to complete the behaviors - data entities Structures needed to perform the behaviors - organizations, functions and roles Extract from architect training at Atomic Activity Individual Actor A model of business architecture concepts (based on the views identified in SFIAs EA and BA role definition, c2005) Motivations Goal/ Objective A goal/objective is an outcome to be achieved. Behaviors meet motivations. A service contributes to goals by delivering a service or product. A process sequences some or all activities needed to complete a service. Information is created and used A data entity records something a business must remember. An information service enables business activities Elements can be composed and decomposed in hierarchical structures. Business

Service Motivation & Customer view Function/ Capability Process Process view Data Entity Data view IT view Information Service An application provides information services Application A technology provides computing services to enable applications Technology Organisation view A function is a logically coherent division of business activity, grouping activities or lower level functions A capability groups abilities (or lower level capabilities) needed to perform activities. Capability view Atomic Business Activity

To scope and discuss large businesses we build logical hierarchies of functions or capabilities Organization Unit Structures perform behaviors. An organization unit groups roles (or lower level organization units) a manager can be asked to manage. People view Role Extract from architect training at Actor A role groups activities an individual actor can be asked to perform An actor is an individual that performs one or more roles. Distinguishing business activity system concepts There is widespread term/concept confusion. In the BIAN hierarchy, Functions are called Services. In the APQC PCF hierarchy, Functions are called Processes. Some think Functions are Organization Units. This grid classifies concepts used in modelling business systems, almost the same as ArchiMate does. External view Behaviours Structures A behavior defined by its entry and exit conditions, as external entities see it. A declaration of available and accessible services. Business Service

Internal view Business Interface (SLA) A behavior defined as a flow of stages or steps from start to end. A logical division of business behavior, grouping related activities Function/ Capability Logical Role A physical structure capable of performing behaviours Physical Process/ Value Stream Organization Unit Extract from architect training at Actor A model somewhere between ArchiMate and TOGAF Behaviours Structures Business Service Business Process/ Value Stream Business Interface Function/ Capability

Role Organization Unit Actor Application Service Applications Application Interface Application Component Technology Service Technology Technology Interface Technology Component Extract from architect training at A meta model that makes sense of TOGAF 9 Goal/ Objective Functions and Roles are logical components definable (external view) by services provided and (internal view) by activities performed. Business Service Services can be coarse-grained. E.g. Sell a house. Organisation Units and Actors are real world (physical) entities

that realise the logical components. Functional Decomposition Capability Map Goal/Obective/Service Diagram Business Physical Structures Logical Structures Required Behaviors Motivation Bus. Service Function Catalogue Function/ Capability Organization Decomposition Org/Function Matrix Org Unit Org/Actor Catalogue Process/ Value stream Process/Event/ Control Cat. Process Flow Business Scenario Process App Realisation Diagram Information Systems Services can be coarse-grained. E.g. use cases or epics Role App Use Case Diagram

Application Service Actor/Role Matrix Role/App Matrix Application Portfolio Catalogue Application Component Application Interface Data Entity/Business Function Matrix Data Entity Actor Application Locations Dgrrn Application/Data Matrix Logical Data Model Data Entity/ Data Component Catalog Data Component Logical Data Diagram Application/Technology Matrix Technologies Technology Service Technology Interface

Technical Reference Model (Technology Service Catalogue) Extract from architect training at Technology Component Technology Portfolio Catalogue Location On communicating business architecture concepts You dont have to model everything about a business that can be documented. You model what you need to understand and explain. Then choose what to communicate - simplifying as need be. These slides address terms and concepts EAs may use to organize their thinking organize EA data that is documented discuss unambiguously with other trained architects. Talk to business leaders and others in their terms - translating as need be Extract from architect training at Further reading Research into business architecture roles in the job market and industry standards. The practice of business architecture On the science about what can be documented The science of business architecture On making sense of TOGAFs concepts Extract from architect training at

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