The Business Architecture journey at Huawei: importance of a metamodel www.huawei.com Dr. Giovanni Traverso – Corporate Chief Business Architect Huawei headquarters, Shenzhen (China) giovanni.traverso@huawei.com HUAWEI TECHNOLOGIES CO., LTD. This is Huawei A privately-owned Global Company An Innovative Industry Contributor An ICT Industry Leader HUAWEI TECHNOLOGIES CO., LTD. Page 2 A Privately-owned Global Company A global company providing information and communications technology (ICT) solutions. Products and solutions have been deployed in 170+ countries, serving 1/3 of the world’s population. HUAWEI TECHNOLOGIES CO., LTD. A privately-owned company founded in 1987, Shenzhen Page 3 Broad Portfolio Consumer Business Group Enterprise Business Group Carrier Business Group Revenue by three BGs in 2013 24% Consumers Fixed Network Wireless Network Global Services Telecom Software and Core Network Network Energy Enterprise Networking Cloud Computing and Data Centers UC&C Management and Tools Wireless HUAWEI TECHNOLOGIES CO., LTD. Smartphones Mobile Broadband Home Devices 70% 6% Enterprise Page 4 Carrier Global Footprints 170+ 16 Countries R&D Centers Revenue by Geography in 2013 14.5% 13% 28 Joint Innovation Centers Americas 15 16% 45 Training Centers HUAWEI TECHNOLOGIES CO., LTD. China AsiaPacific Regional HQs 36% 150,000 EMNA Employees Worldwide Page 5 35% Phases of Huawei’s Development USD in billions 1997-2000 China Urban Market 35 2000-2004 Global Emerging Market 30 25 1992-1997 China Rural Market 20 15 1987-1992 Starting-up 2000-present International Market 1992-2000 Chinese Market 10 5 Year 87 87 88 88 89 89 90 90 91 91 92 92 93 93 94 94 HUAWEI TECHNOLOGIES CO., LTD. 95 95 96 96 97 97 98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 Page 6 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 0 Spectacular growth… brings challenges Phases of Huawei’s Development USD in billions 1997-2000 China Urban Market 35 2000-2004 Global Emerging Market 30 25 1992-1997 China Rural Market 20 15 1987-1992 Starting-up 2000-present International Market 1992-2000 Chinese Market • Young company • Young population • Fast pace of transformation 10 5 Year 87 87 88 88 89 89 90 90 91 91 92 92 93 93 94 94 95 95 96 96 97 97 98 98 99 99 00 00 01 01 02 02 HUAWEI TECHNOLOGIES CO., LTD. 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 0 Page 6 ⇒ Established Business Process & IT & Quality, with two missions: ⇒ Emphasis on business process practice and governance ⇒ Emphasis on transformation management HUAWEI TECHNOLOGIES CO., LTD. Page 7 Construction of a structured process framework (à-la APQC) was necessary… BPA process L1 L2 L3 organization information/ application metrics L4 L5 HUAWEI TECHNOLOGIES CO., LTD. Process became the “point of accumulation” of the whole system. Page 8 The structured process framework was necessary… but not enough… • Process changes over time => unstable accumulation point process • No clear way to reflect end-to-end business across different process silos • Process design is slow and therefore difficult to coordinate with IT design organization information/ application metrics • Difficult to engage the business and no obvious link with business strategy ⇒ Transformation tends to be confused with “pain-point” fix in a “bottom-up” fashion HUAWEI TECHNOLOGIES CO., LTD. Page 9 … We needed to establish a Business Architecture capacity Strategy Planning Design Strategy Manage Transformation • Anchor architecture to a stable reference • Holistic impact awareness • Top-down, coordinated development of process/org/IT • Bridge with business Manage Execution and Monitoring Interpreted business model Architecture domain Capability framework Business policies /rules Business Operation Model and architecture design (BPA, IA, AA) Solution domain BP&IT solution through initiatives Organization alignment Process HUAWEI TECHNOLOGIES CO., LTD. IT ⇒ Enable build on a solid vision, based on future (strategy) not only on the past (pain-points) Operations and metrics Page 10 We started building BA capacity and trust through practice in a few critical projects, as in this example: Consumer’s value stream time to market original gap Advanced vendor’s value stream concept development delivery Advanced operation model: “sell what you have” promotion Carrier’s value stream Follower vendor’s value stream New capabilities and value streams been built… requirem. intake development Original operation model: “sell what you don’t have” delivery …allowed Huawei to evolve from niche player and become #3 WW smartphone vendor in 2Y HUAWEI TECHNOLOGIES CO., LTD. Page 11 The BA practice was then consolidated into a repeatable framework Biz.Strategy Industry as-is why Analysis Industry benchmarking what Business Operation Model how Components of Biz. Architecture Development BA Solution Integration HUAWEI TECHNOLOGIES CO., LTD. Design Page 12 …consisting in metamodel plus associated methodology HUAWEI TECHNOLOGIES CO., LTD. Page 13 …represented as an “executable metamodel” Business Architecture flow-chart baseline ver. 6.1 IN / OUT 100 Industry Reports 111 112 121 113 Benchmark Biz.Model 120 Biz. Des ign 130 Critical Tas k 140 Gaps vs Strategy Benchmarking 114 115 122 131 141 211 to-be Biz.Operation Model 212 221 other BPA references 311 Capab. Ranking Gaps , Recomm., Leading Practices as -is or intended Biz.Oper. Model Target Biz.Oper. Model to-be B.O.M. 231 Diagram Biz.Operation Model: to-be Changes & 232 Biz.Impact 310 Capab. Fr.work 320 Capab. Fr.work 330 as -is /intended BPA leaading practices as -is /intended IA, AA benchmar k org. as -is /intended Org., R&R, Location BA Devel.: Org/R&R 340 Critical Succes s Factors for Huawei BA Devel.: Biz.Rules 350 BA Devel.: Metrics as -is /intended Biz.Rules Biz. Indicators HUAWEI TECHNOLOGIES CO., LTD. Synthesis of BA logic 321 322 323 331 341 351 as -is /intended Metrics Steps Detailed steps are represented by lines connecting deliverables (in => out) to-be BPA req. for IA, AA, TA to-be Org. R&R, Location to-be Biz.Rules to-be H.L. Metrics Page 14 • manual (230 pages) with examples 411 For each deliverable the BA method gives: BA deliverables are represented by points 230 BA Devel.: Information 312 Deliverables Capab. Fr.work BA Devel.: Process BA Concept Solution to-be BA Biz. Context Biz.Operation Model: as-is 220 231 232 Capab. 114 Fr.work Huawei 115 & Indicators Biz.Model 210 Biz.Operation Model: ideal • Algorithm: • I/O: 5 inputs, 3 outputs 400 Integr.& • several internal deliverables 300 Development Validation • connected through 13 steps, Structure • grouped in 4 stages integrated according to this diagram Design 211 Ind. Ecosystem Analysis Biz. Context 200 as-is (or intended) BA 110 Huawei Analysis Analysis Interview Huawei and Strategy req.ment (BLM) steps 410 Structure: • Description • Examples • Template For each step the BA method gives: • • • • • • Inputs, Outputs Flow-chart, Explanation “how to do” Examples Validation criteria Skills and effort required Reference documents We mapped BA clients’ needs within the transformation flow Strategy Strategy Client Business Client's perspective set direction Transformation Planning Business/ Transf.Board Transf.Board Transformation planning communicate needs design the transformation plan Program/ Project Program Office/ Project Office Program/Project Operation Operation Q&O clarify requirements, understand best practices, mng cross-domain dependencies monitor, RCA, correct Client's concern reach Business KPI reach strategy objectives reach solution objectives improve performances, manage risks BA deliverable to-be Capabilities, to-be BOM gap and change points, BOM, Capability roadmap biz. context BOM, integrated requirements, BA Baseline, methodology BA Baseline BA activity research on best practices, problem solving, BOM & Capability design domain and cross-domain requirements, capability roadmap, reference blueprint, governance cross-domain integration, blueprint mapping of process/info/org analysis and rootcause mapping, capability assessment, blueprint compliance BA Key Partners strategy (corporate and FU), Business leadership BPA/Solution Q&O HUAWEI TECHNOLOGIES CO., LTD. strategy/Q&O EA Page 15 …projected most frequent BA use scenarios accordingly Transformation Planning Strategy Strategy Program/ Project Transformation planning Program/Project Operation Operation Annual strategy decoding Introducing new business models Organizational change/adjustment Each scenario is meant to practice a certain subset of the BA “space” BPA update Business Architecture flow-chart baseline ver. 6.1 IN / OUT 100 Industry Reports Interview Huawei and Strategy req.ment (BLM) 112 121 113 Biz. Des ign 130 Critical Tas k 140 Gaps vs Strategy Biz. Context Benchmarking 114 115 Benchmark Biz.Model 110 120 Design 122 131 141 211 212 221 Gaps , Recomm., Leading Practices as -is or intended Biz.Oper. Model Capab. Fr.work 310 Capab. Fr.work 320 Capab. Fr.work 330 as -is /intended BPA leaading practices as -is /intended IA, AA benchmar k org. as -is /intended Org., R&R, Location BA Devel.: Org/R&R 340 BA Devel.: Biz.Rules 350 BA Devel.: Metrics Critical Succes s Factors for Huawei to-be BA 311 312 321 322 323 331 Continuous improvement BA Concept Solution 341 351 411 to-be B.O.M. 231 Diagram 232 BA Devel.: Information other BPA references Integr.& Validation Target Biz.Oper. Model 230 Biz.Operation Model: to-be BA Devel.: Process 400 Development Biz. Context Capab. Ranking 210 Biz.Operation Model: ideal 231 232 Capab. 114 Fr.work Huawei 115 & Indicators Biz.Model Biz.Operation Model: as-is 220 300 to-be Biz.Operation Model as-is (or intended) BA Ind. Ecosystem Analysis Huawei Analysis 200 211 steps 111 Analysis as -is /intended Biz.Rules Biz. Indicators as -is /intended Metrics Changes & Biz.Impact to-be BPA req. for IA, AA, TA to-be Org. R&R, Location to-be Biz.Rules to-be H.L. Metrics 410 Synthesis of BA logic HUAWEI TECHNOLOGIES CO., LTD. Metamodel and scenarios are being used as reference for new version of the corporate transformation process Page 16 The “executable metamodel” had been used as a basis for defining the desired skill profiles and training modules Business Architecture flow-chart baseline ver. 6.1 IN / OUT 100 Industry Reports 112 121 120 Biz. Des ign 130 Critical Tas k 140 Gaps vs Strategy Benchmarking 114 115 Benchmark Biz.Model Ind. Ecosystem Analysis Biz. Context Design 122 131 141 211 212 221 Gaps , Recomm., Leading Practices as -is or intended Biz.Oper. Model Capab. Fr.work 232 310 Capab. Fr.work 320 Capab. Fr.work 330 BA Devel.: Biz.Rules 350 BA Devel.: Metrics as -is /intended BPA leaading practices as -is /intended IA, AA benchmar k org. as -is /intended Org., R&R, Location BA Devel.: Org/R&R 340 Critical Succes s Factors for Huawei 312 321 322 323 331 CoE BA Concept Solution to-be BA 311 341 351 411 as -is /intended Biz.Rules Biz. Indicators practitioners to-be B.O.M. 231 Diagram Biz.Operation Model: to-be BA Devel.: Information other BPA references Integr.& Validation Target Biz.Oper. Model 230 BA Devel.: Process 400 Development Biz. Context Capab. Ranking 210 Biz.Operation Model: ideal 231 232 Capab. 114 Fr.work Huawei 115 & Indicators Biz.Model Biz.Operation Model: as-is 220 300 to-be Biz.Operation Model as-is (or intended) BA 113 110 Huawei Analysis 200 211 Interview Huawei and Strategy req.ment (BLM) steps 111 Analysis as -is /intended Metrics Changes & Biz.Impact to-be BPA req. for IA, AA, TA users to-be Org. R&R, Location to-be Biz.Rules to-be H.L. Metrics 410 Synthesis of BA logic managers Introductory Basic BA Training Program HUAWEI TECHNOLOGIES CO., LTD. Page 17 Advanced Master Quality assessment/acceptance criteria had been defined leveraging metamodel standard and methodology framework Deliverables Quality Assessment Complete Integrated Formal attributes Actionable Purposeful Content attributes Accurate Consistent Solution attributes Scalable HUAWEI TECHNOLOGIES CO., LTD. Modular Other specific… Page 18 Metamodel+methodology enable time/cost saving and quality without BA Proj 4 Ch. to CDCP Proj 4 Ch. to CDCP CDCP to PDCP CDCP to PDCP Proj 3 standardization => quality with BA Proj 3 PDCP to DRR Proj 2 Proj 2 Proj 1 Proj 1 PDCP to DRR duration - 25% BA months 0 5 10 15 20 25 500 400 Resource profile (person months) 10 15 20 25 30 500 External Internal External Internal 400 300 200 200 100 100 HUAWEI TECHNOLOGIES CO., L1-L2 L3-L4 L5 L6 LTD. Resource profile (person months) 600 300 0 5 700 700 600 months 0 30 cost - 55% 0 L7+ L1-L2 L3-L4 L5 Page 19 L6 L7+ Common Metamodel to enable cooperation within BA ecosystem Partners SLAs to users and practitioners @ Huawei Support to transformation Programs or projects Direct project responsib. Resources & Deliver. SL4 Co-Leadership SL3 Deliverables & Application Support SL2 Guidance SL1 Training & best wishes Regular Coach & Review Training BA CoE @ Huawei Metamodel + Methodology Business Architecture flow-chart baseline ver. 6.1 IN / OUT 100 Industry Reports 112 121 113 120 Biz. Des ign 130 Critical Tas k 140 Gaps vs Strategy Biz. Context Benchmarking 114 115 Benchmark Biz.Model 110 Ind. Ecosystem Analysis Huawei Analysis 200 Design 211 122 131 141 211 212 221 Gaps , Recomm., Leading Practices as -is or intended Biz.Oper. Model Capab. Fr.work Capab. Fr.work 320 Capab. Fr.work 330 BA Devel.: Biz.Rules 350 BA Devel.: Metrics Critical Succes s Factors for Huawei 331 341 351 as -is /intended BPA leaading practices as -is /intended IA, AA as -is /intended Biz.Rules Biz. Indicators Training and tools 411 Introductory benchmar k org. as -is /intended Org., R&R, Location BA Devel.: Org/R&R 340 321 322 323 to-be B.O.M. 231 Diagram 232 310 BA Devel.: Information 311 312 Integr.& Validation BA Concept Solution to-be BA Target Biz.Oper. Model 230 Biz.Operation Model: to-be BA Devel.: Process 400 Development other BPA references Biz. Context Capab. Ranking 210 220 231 232 Capab. 114 Fr.work Huawei 115 & Indicators Biz.Model Biz.Operation Model: as-is Biz.Operation Model: ideal 300 to-be Biz.Operation Model as-is (or intended) BA steps 111 Analysis Interview Huawei and Strategy req.ment (BLM) as -is /intended Metrics Changes & Biz.Impact to-be BPA req. for IA, AA, TA to-be Org. R&R, Location to-be Biz.Rules to-be H.L. Metrics 410 Synthesis of BA logic HUAWEI TECHNOLOGIES CO., LTD. Page 20 Basic Advanced Master What’s next… QFD for quantitative management of business impacts Simulation and system dynamics KSF as-is (% achievement) to-be Y1 (% achievement) Timeline assessment to-be Y2 (% achievement) Tar get St ra te gi c as-is 1/0 Val ues O bj ec ti v es Y1,Y 2 Val ues tobe Y1 tobe Y2 Val ues Val ues BC L1 KSF Configuration as-is (% achievement) Timeline assessment to-be Y1 (% achievement) to-be Y2 (% achievement) Tar get K S F as-is 1/0 Val ues Requirement Y1,Y 2 Val ues tobe Y1 tobe Y2 Val ues Val ues BC L2 as-is (% achievement) to-be Y1 (% achievement) BC L1 Configuration to-be Y2 (% achievement) Tar get B C L1 as-is 1/0 Val ues Requirement Y1,Y 2 Best practices, Collaborative teams IN / OUT 100 Industry Reports 111 112 121 113 Research HUAWEI TECHNOLOGIES CO., LTD. 120 Bi z. Des i gn 130 Cri ti ca l Ta s k 140 Ga ps vs Stra tegy Benchmarking 114 115 Benchma rk Bi z.Model 110 Biz. Context 200 Design 211 122 131 141 211 212 221 tobe Y2 Val ues 400 Development other BPA references 311 312 321 322 323 331 Ga ps , Recomm., Lea di ng Pra cti ces a s -i s or i ntended Bi z.Oper. Model Ca pa b. Fr.work 341 351 411 Ta rget Bi z.Oper. Model to-be B.O.M. 231 Di a gra m 230 Biz.Operation Model: to-be Cha nges & 232 Bi z.Impa ct 310 Ca pa b. Fr.work BA Devel.: Process 320 Ca pa b. Fr.work BA Devel.: Information 330 340 350 BA Devel.: Metrics a s -i s /i ntended BPA l ea a di ng pra cti ces a s -i s /i ntended IA, AA benchma r k org. a s -i s /i ntended Org., R&R, Loca ti on BA Devel.: Org/R&R BA Devel.: Biz.Rules Cri ti ca l Succes s Fa ctors for Hua wei methodology extension through pilots and cooperation on BA scenarios, e.g.: Integr.& Validation BA Concept Solution to-be BA Bi z. Context Ca pa b. Ra nki ng 210 220 231 232 Ca pa b. 114 Fr.work Hua wei 115 & Indi ca tors Bi z.Model Biz.Operation Model: as-is Biz.Operation Model: ideal 300 to-be Biz.Operation Model as-is (or intended) BA Ind. Ecosystem Analysis Huawei Analysis Analysis Interview Huawei and Strategy req.ment (BLM) steps BA Metamodel, Certification Program tobe Y1 Val ues Business Architecture flow-chart baseline ver. 6.1 align Huawei to the Guild’s Metamodel & Certification Val ues BC L2 Configuration a s -i s /i ntended Bi z.Rul es Bi z. Indi ca tors a s -i s /i ntended Metri cs to-be BPA req. for IA, AA, TA to-be Org. R&R, Loca ti on to-be Bi z.Rul es to-be H.L. Metri cs 410 Synthesis of BA logic • • • • BA and Sustainability <=> Guild’s team BA and Quality (QMS design, auditing…) BA application in research Interlock with IA and AA DFx of architectural topologies, Dynamic rules based routing ONA for architectural analysis Page 21 Lessons learned • The introduction of “BA thinking” can be disruptive › Build trust with pilot projects of “business problem solving” › Then, adoption of a standard metamodel and methodology helps smooth the impact • BA Metamodel joined with standardized methodology enable/facilitate: › › › › Establishment of a BA skill development program Deployment of standard quality criteria for BA deliverables Introduction of BA practice within transformation governance Partnerships and participation to the extended “BA ecosystem” • All that helps the foundation of a BA CoE model, by: › › › › › Establishment of clear scenarios for BA developers and BA consumers Establishment of clear SLA and engagement model Establishment of a basis and opportunities for continuous improvement Investment on methodology will generally make BA more affordable by a young org. Benefits in terms of time and cost saving against non-BA scenario should show HUAWEI TECHNOLOGIES CO., LTD. Page 22 Thank you www.huawei.com Copyright©2015 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.