From Canvas to Blueprint:
Aligning Business Models
with Business Architecture
Steve DuPont, Associate Technical Fellow
Enterprise Architecture
March 19, 2013
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Global Boeing
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Enterprise Architecture
 Customers and customer support in 150 countries
 Total revenue in 2012: $81.7 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 26,500 suppliers and partners globally
 Research, design, and technology-development centers and programs
in multiple countries
 More than 170,000 Boeing employees in 70 countries
 More than 170,000 Boeing employees in 50 states and 70 countries
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Agenda
Engineering, Operations & Technology | Information Technology
Enterprise Architecture
 Business Model Overview
 Business Model/Business Architecture Alignment
 Recommendations
 Future Considerations
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What is a Business Model?
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Enterprise Architecture
“A business model describes the rationale of how an
organization creates, delivers, and captures value.”
Osterwalder and Pigneur, 2010.
Financial
Aspects
Value
Proposition
Customer
Interface
Infrastructure
Management
*Based on Alexander Osterwalder’s Four Pillars, 2004.
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Why All the Attention on Business Models?
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Enterprise Architecture
 Focus on business model innovation
 Accelerating change drivers such as cloud, mobile, social, green
 The need to describe business complexities
 The need to decrease time to market
 Shrinking business model
life cycles
 Maturing business model
frameworks
 Accessible methods and tools
Source: Alexander Osterwalder and Yves Pigneur, “Business Model Generation,” 2012.
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Business Model Frameworks
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Enterprise Architecture
 A business model framework is a conceptual structure for organizing the
elements, relationships, representations, and classifications of one or
more business models
 Recent 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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State of the Practice
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Enterprise Architecture
“Many managers do not really know what a business
model is, let alone have an explicit model of their own
business.”
“…in spite of the intensive research carried out in this
field in the past 15 years, the concept still remains very
fuzzy in its definition, purpose and operationalization.”
Yariv Taran, “Rethinking It All: Overcoming Obstacles to Business Model Innovation,”
Center for Industrial Production, Aalborg University, 2011.
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Business Model Canvas
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Key
Partners
Key
Activities
Value
Proposition
Key
Resources
Cost Structure
Enterprise Architecture
Customer
Relationships
Customer
Segments
Channels
Revenue
Streams
Source: Alexander Osterwalder and Yves Pigneur, “Business Model Generation,” 2012.
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Sample Canvas Formats
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http://www.businessmodelgeneration.com
Style:
Free form
“dynamic”
“creative”
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Enterprise Architecture
http://www.businessmodelgeneration.com
Structured
“stable”
“analyzable”
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Business Model - What Kind and How Many?
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Enterprise Architecture
Business
Model Type
Abstract
Business
Model Type
Business
Model
Concrete
Proposal 2
Business
Model
Proposal 1
Scenario
Business
Model
Deployed
Operating
*Based on: Alexander Osterwalder, “The Business Model Ontology, A Proposition in a Design Science Approach,” 2004.
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Business Model as Unifying Concept
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Enterprise Architecture
Business
Innovation
“What’s possible?”
Business
Strategy
“What will we do?”
Business
Model
“What does it look like?”
Business
Architecture
“What’s the blueprint?”
Business models are a unifying concept for Business
Innovation, Strategy, and Architecture
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Business Models and Strategy
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Business
Model
Strategy Map
Enterprise Architecture
Kaplan and Norton, “Strategy Maps,” HBR, 2004
Business model canvases and strategy maps address
the same level of the Strategy Continuum with similar
perspectives
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Business Models and Business Architecture
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Enterprise Architecture
 Business model
Products &
Services
 Used to drive growth
Customers
 Articulates key elements
of strategy
 Incorporated into
business plans
 Business architecture
Partners,
Competitors
Value Streams
Motivation
Capabilities
Information
Measures
Organization
Business Rules
Business
Model
Business
Architecture
 Used to “align strategic objectives and tactical demands”*
 Enables interpretation of business models into concrete business
concepts that can be targeted for improvement**
*Source: OMG Business Architecture Special Interest Group, http://bawg.omg.org, and Business Architecture Institute,
www.businessarchitectureinstitute.org.
** Source: TSG, Inc.
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Business Model/Business Architecture Alignment
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Enterprise Architecture
 Alignment brings BM/BA frameworks and practice closer together
 Key aspects
Products &
Services
Partners,
Competitors
Customers
 Framework alignment
Value Streams
Motivation
Capabilities
– Methods
Information
Measures
– Artifacts
– Meta-model
 Concept mapping
Organization
Business Rules
Business
Model
Business
Architecture
– How do business model concepts influence business architecture
concepts?
– How do these concept mappings affect business model analysis and
BM/BA translation?
– Mapping guidelines can be useful
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Benefits of BM/BA Alignment
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Enterprise Architecture
 Earlier and faster analysis of proposed business models
 Improved accuracy and completeness of business models
 Better understanding of key drivers for business transformation
 More responsive business architecture practices
 Better solution reuse for incremental innovation
Products &
Services
Customers
Motivation
Partners,
Competitors
Value Streams
Capabilities
Information
Measures
Organization
Business Rules
Business
Model
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Business
Architecture
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Framework Alignment Approach
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Enterprise Architecture
 Define goals and objectives for alignment
 Align BM/BA framework concepts
 Establish BM/BA frameworks
 Tailor and/or extend frameworks for alignment
 Align business model design process with BA development method
 Map business model building blocks and elements to business
architecture meta-model
 Prove out
 Improve
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Aligning Development Methods
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Business Model
Design Process
(Osterwalder)*
Mobilize
Understand,
Design
Target Business Model
Business
Architecture
Development
Method
(Generic)
Initiating
Vision
Enterprise Architecture
Implement
Manage
Target Business Architecture
Business
Architecture
Design
Implementation
Planning
Deployment
Change
Management
* http://www.businessmodelgeneration.com.
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Aligning Concepts
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Business Model
Concept
Aligns and Maps
to…
Enterprise Architecture
Business Architecture
Concept
Value Proposition
Aligns with…
Maps to…
Customer Segment
Aligns with…
Maps to…
• Strategy, Value Item,
Product/Service
• Initiative*
• Strategy, Customer, Stakeholder
• Objective*, Capability*
Channel
Aligns with…
Maps to…
• Strategy, Partner, Resource
• Value Stream*
Customer Relationship
Aligns with…
Maps to…
• Strategy, Customer
• Value Stream*, Capability*
Key Activity
Aligns with…
Maps to…
Aligns with…
Maps to…
Aligns with…
Maps to…
Aligns with…
Maps to…
Aligns with…
Maps to…
• Strategy, Value Stream
• Capability*
• Strategy, Organization, Resource
• Business Unit*, Capability*
• Strategy, Partner/Stakeholder
• Objective
• Strategy
• Value Stream, Capability
• Strategy
• Capability*, Business Unit*
Key Resource
Key Partner
Revenue Stream
Cost Structure
*Source: Business Architecture Guild, “A Guide to the Business Architecture Body of Knowledge (BIZBOK™).”
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Architecture-Supported Business Model Analysis
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Enterprise Architecture
 How well does the business model support the strategy?
 Does it fit within the intended environments?
 Does it integrate as intended with other business models?
 Is the integration consistent with the company’s operating model?
 What key infrastructure elements are
affected (e.g., capabilities, value
streams, information, resources)?
 What are the risks (e.g., tax, legal)?
 How well does the organization
align with the business model?
http://www.businessmodelgeneration.com.
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Recommendations
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Enterprise Architecture
 Work toward a common definition of business models and
architecture
 Tailor business model formats to use
 Infuse as much structure as possible into business models
(judgment required)
 Create reusable business model building blocks
 Introduce business architecture concepts early (e.g., capabilities)
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Future Considerations
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Enterprise Architecture
 Comprehensive, open business model frameworks
 Modeling languages and BM/BA interoperability
 Simulation
 Increased tool support
 Business architecture subsuming business models?
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Engineering, Operations & Technology | Information Technology
Enterprise Architecture
Discussion
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