Engineering, Operations & Technology
Aligning
Business Architecture with
Business Design
Steve DuPont, Associate Technical Fellow
Enterprise Architecture
March 25, 2015
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Engineering, Operations & Technology
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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
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Engineering, Operations & Technology
CopyrightCopyright
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rights reserved.
© 2015All
Boeing.
All rights reserved.
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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
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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.
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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*
Design Thinking





Can be
applied to
Empathetic
Integrative
Optimistic
Experimental
Collaborative
Strategy
Business
Architecture
Products &
Services
Solution
Development
* Tim Brown. “Design Thinking,” Harvard Business Review. June 2008.
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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
Ferguson, Bob. “Our Boeing.” Boeing Frontiers. Boeing.com/frontiers. Jan. 2015.
▪ Co-creation
▪ Open process (everyone can participate)
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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
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Michael Erickson, © The Boeing Company 2015
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Engineering, Operations & Technology
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Business Architecture with Design Focus
Building Architecture
Business Architecture
Design Phases
 Vision, goals
 External influencers
 Initial
Discussions
 Information
Gathering
 Market analysis
 As-Is business design/
architecture
 Conceptual
Design/Feasibility
 Customer experience
design
 Business model
innovation
 Operating model
 design
1
1
 Business architecture
blueprints
 Design
Development
Source: Steve DuPont et al. “Business Architecture and Business Models.” 2014 Business
Architecture Innovation Workshop. Object Management Group & Business Architecture Guild.
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1
A Guide to the Business Architecture Body of
Knowledge (BIZBOK®). 2015
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Conceptual Design Artifacts and Business Architecture
Blueprints
Business Models and Operating Model Sketches
Conceptual
Design
Artifacts
embodied in
Detail
Architecture
Blueprints
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Capability Map
Organization Map
Information Map
Value Map
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Strategy to Execution (Traditional)





Driven by annual cycles
Siloed processes
Non-integrated initiatives
Waterfall methods
Heavy decision gates
Strategic
Planning
Business &
Initiative Planning
Scale and
Deploy
Architecture &
Development
Product
Development
Target market entry
Business Model Lifecycle
(shrinking)
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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
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Another Way (Designed Focused)…
Customer
Experience
Design
Design/
Build
Business Model
Innovation &
Strategy
Learn
Business
Architecture
Design &
Planning
Product &
Service
Innovation
Solution
Development
Deploy &
Scale
Target market entry
Test
Activity cycles based on
Lean Startup* principle #5:
Build, Measure, Learn
(http://theleanstartup.com/principles)
 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
Business Model Lifecycle
(shrinking)
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Business Model Innovation
Business Model
Innovation & Strategy
 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
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Business Model Cube, Peter Lindgren
and the EU Neffics project, 2012
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Business Model
Business Model
Innovation & Strategy
“A business model
describes the rationale
of how an organization
creates, delivers, and
captures value”*
Value
Business Model Canvas
Strategyzer.com
* Alexander Osterwalder and Yves Pigneur. Business Model Generation. John Wiley & Sons, Inc. 2010.
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Value Proposition
Business Model
Innovation & Strategy
“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
Strategyzer.com
Value Proposition Canvas
Strategyzer.com
* Alexander Osterwalder, Yves Pigneur et al. Value Proposition Design. John Wiley & Sons, Inc. 2014.
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Operating Model (OM)
Business Model
Innovation & Strategy
An operating model describes the intended level of integration and
standardization of an organization across its key activities,
organization, and technology domains
Business Model Aspects
Key
Partners
The OM describes how an
organization’s business models
are implemented
Key
Activities
Key
Resources
Organization
Information
Value
Propositions
Customer
Relationships
Customer
Segments
Channels
Capability
Cost Structure
Revenue Streams
+
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Operating Model Aspects
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Operating Model Design
Business Model
Innovation & Strategy
 OMs can be described in one page sketches
 Example OM design sketches include:
Operating Model Sketch
Core Diagram*
* Jeanne W. Ross, Peter Weill, David C. Robertson. Enterprise Architecture as Strategy. Harvard Business School Press. 2006.
Key OM concerns: integration, standardization, and resource sharing
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Business Model to OM Mapping (Example)
Business Model
Innovation & Strategy
 Current OM constrains
target business models
Operating Model Sketch
 OM designed to realize
target business models
Derived
OM Views
Business Model Canvas
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Strategyzer.com
Core Diagram
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Customer Experience (CX)
Customer Experience
Design
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*
Select
Purchase
Feedback
Buy
Own
S
Market and Sell
Research
Maintain
Support and Serve
Need
Receive
Use
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.
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Customer Experience (CX) Design
Customer Experience
Design
 Customer experience design methods model key
aspects of the customer experience: Customer,
interactions, artifacts/systems, and perceptions
 Example CX design methods include:
CX Journey Map (Oracle)*
Customer Experience Model (CEM)
(J. Teixeira et al)**
CX Design Canvas (Oracle)*
* “CX Journey Mapping Toolkit.” Designing CX. DesigningCX.com. Oracle. 2015.
Copyright © 2015 Boeing. All rights reserved.
**J. Teixeira et al. "Customer experience modeling: from customer
experience to service design." Journal of Service Management. 2012
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CX Design to Business Model Mapping (Example)
Customer Experience
Design
Value Proposition Canvas
Business Model
Innovation &
Strategy
Business Model Canvas
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Business Architecture Design
Business Architecture
Design & Planning
 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:
Strategy Map
Capability Map
Organization Map
Value Map
Business architecture
maps not shown:
Initiative map
Policy map
Information
Map
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Product
Map
Stakeholder
Map
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Business/Operating Model to Business Architecture Mapping
(Example)
Business Model
Business Architecture
Innovation & Strategy Design & Planning
Examine each model view to ensure all
mapping elements have been identified
Validate against the CX model
Operating Model
Sketch
Business Model Canvas
Value Map
Organization Map
Product
Map
Capability Map
Initiative and policy
maps not shown
Direct Mapping
Select Derived
Mapping
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Information Map
Strategy Map
Stakeholder Map
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Other Considerations
 Additional inputs
 Business motivation
 Business environment
 Analytical methods
 Strategic business
scenarios & alternatives
 Requirements
Michael Erickson, © The Boeing Company 2015
 Integration and quality checks
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Establishing a Design-Oriented BA Practice
 Personal readiness
 Expertise development
 Practice
 Sharing your learnings
 Networking
 Organizational readiness
Michael Erickson, © The Boeing Company 2015
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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
Michael Erickson, © The Boeing Company 2015
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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
Michael Erickson, © The Boeing Company 2015
 Map conceptual design to business architecture
 Stay close to the customer experience
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Discussion
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