Data and Architecture: Business Capability Future State How-To, Pt. 2

The Future-State Business Capability Model How-To  is a series to help IT and architecture practitioners think about a few key steps to build a future-state business capability model to influence business and technology senior leaders and executive decision makers. Part 1 ran last week and looked at the first two steps to creating a strategy-defined project planning model: understanding the goals of the organization and determining the architectural scope model to use. This post explores the steps to actually defining and implementing your planning model. 

Step 3: Define the plan to develop your future state capability model

    1. Determine if your organization requires a current state capability model. If your organization does not have a current state capability model, this may be an easier exercise to initiate dialogue and understand the concept.
    2. Identify how the corporate goals and strategy are applicable to the future state lifecycle. If required, translate the corporate goal to the applicable lifecycle. For example, a Corporate Revenue Goal can be translated into order transaction volume, number of newly hired associates, number of marketing campaigns or new product launches.
    3. Determine your standard definitions to categorize your capabilities.  For example, Core vs. Differentiate is a foundational interpretation. Determine what capabilities are “core” (something required to keep our business running) vs “differentiating” (something that has a direct impact on our growth).  This is a helpful reference for modeling: CEB’s Business Architecture Handbook.

Continue reading “Data and Architecture: Business Capability Future State How-To, Pt. 2”

Data and Architecture: Business Capability Future State How-To, Pt. 1

Does your organization need to improve strategic investments and prioritize investments? Do you feel confident in the objectivity of your investment and spend decisions? Are you constrained with annual budget allocations and have to make tough decisions year-over-year with running the business work or “keeping the lights on” versus transformational projects?

Establish a process to integrate an environment of many complex organizational capabilities to simplify and inform specific business outcomes through a future-state business capability model.

Portfolio Planning Prioritization 1.0 (in our blog series) features a way to prioritize investments from a “bottoms-up” perspective, as featured in the figure. The prioritization model identifies current or upcoming projects based on strategic drivers (key elements that align to organizational strategy, key portfolio data, and business value/outcomes) and detractors (elements that reduce value based on longer time periods, cost, and organizational readiness). Although this model is a good way to make data-driven prioritization decisions for the portfolio, it does assume that the organization has identified the critical must-have business capabilities needed to advance the business.

Continue reading “Data and Architecture: Business Capability Future State How-To, Pt. 1”

Data and Architecture: Business Architecture and Capabilities

Does your organization talk about connecting the execution of work to its strategy? Are you building a roadmap on how to get there and achieve desired goals? To help your organization achieve the strategy and goals, model the business architecture by understanding the organization’s strategy, communicating business outcomes, and aligning these outcomes to the appropriate business capabilities.

Business architecture is illustrating what the business does and how the business operates. Gartner defines business capabilities as  “what the business needs to do to achieve the business strategy.” Business architecture uses business capability modeling, to visualize and influence people, processes, and technologies needed to maximize stakeholder value, achieve organizational goals, and execute on the business strategy. This model should map out the future state capabilities needed to support where the business is going over multiple years, as defined by the organization’s strategy.

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