Aligning Enterprise and

Business Architecture Innovation Summit OMG/Business Architecture Guild Reston, VA March 26 2014 About Export Development Canada (EDC)

 Canada’s fully self-funded Export Credit Agency

 Mandate is to support & develop Canada’s export trade

 Operates like a bank & insurance company with about 1200 staff

 Facilitated approx $90B of Cdn trade in 2013

 Offers financial tools, trade expertise, market connections

 Partnership-Preferred philosophy

2 Contents

 Why would an existing EA team support the creation of a new, independent Business Architecture team?

 How EA can help

 Success factors

 “Gotchas” we encountered

3 function at EDC

Description

Translate business  Optimize EDC technology investment by translating business strategy into effective strategy into effective enterprise change enterprise change  Technology = any systemic enabler of people, process, information, IT interactions, not limited strictly to IT or IS Enterprise  Concerned with coordinated outcomes at enterprise level Architecture  Business strategy is where we want to go; EA is putting the pieces together to get us there in the most effective way

Responsibilities COE  Business & IT strategy alignment Frameworks, methods & industry research to  EA principles development & application optimize technology investment & maintain  Enterprise target & roadmaps development & upkeep alignment between business & IT strategies  Promotion of shared services & infrastructure  Architecture assurance & solution certification Execution  IT investment portfolio alignment

Target  Solution Architecture direction & best practices architectures at enterprise  Solution options evaluation context & input level Bus/Info & Solution arch  Ownership & management of EDC Technical Reference Model  IT trends research & contextualization  Development & integration of multiple views into the enterprise architecture – business, information, application, infrastructure  Development & communication of EA vision  Architecture mentoring & practice throughout the enterprise What’s wrong with this picture?

EA ideal state: Enterprise Architecture swim upstream to sit at the table with Business Architecture the business to Business is define their a subset of business EA…? strategies with Information Architecture them

Application Architecture

Technology Architecture

5 EDC context

 Multiple, major & overlapping business transformations  Transformation projects encountering frequent “resets”  Business pulled off operational front lines onto projects with no orientation  Jumped right from Idea into Requirements leaving no “time to think”  Would hit a wall, reset, and work back upstream to lack of business strategy  Flat, linear initiative delivery process that abetted these tendencies

6 Disentangling the value stream – gaps & enablement

Benefits management

Strategic Innovation Planning Strategy Benefits Business Change Operating Models management Solutions Problem Solving Problem Countermeasures Implement Adopt

Project Management Industry standards

SDLC Plan Requirements Design Build Deploy

7 Semantic decomposition of the disentangled streams

provides return on

Strategic Business drives anticipates realized Benefits Planning Investment Benefits strategy through Management

modifies enable Included in Problem Solving Business Capability- to achieve Value Stream- Outcomes Operating Model

deliver solutions Project to achieve Management

identifies comprise LOB Initiatives Operational Workplans

establishes SDLC

8 Functional accountabilities overlay to address the gaps

provides return on

Business drives anticipates realized through Benefits Investment Benefits PPM strategy Management

modifies enable

Business Included in Capability- to achieve Value Stream- Outcomes EA Operating Model

deliver solutions to achieve

LOB identifies comprise Initiatives Operational Workplans

establishes

Business Architecture Delivery Business Architecture

9 Enterprise Business Issues – Bus Arch gap value prop

Enterprise Business Issues overlay on EDC Business Capabilities Map

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B u s i n e s s M a n a g e m e n t M a n a g e m e n t M a n a g e m e n t M a n a g e m e n t P e r f M g t E I M C o m p a n y p r o g r a m I n d u s t r y g C o r p e x p o s u r e h i e r a r c h i e s i n f o n E D C r u l e s d o m a i n i P a r t n e r t o p e r a t i n g E n t e r p r i s e t r e l a t i o n s h i p F S m o d e l C h a n n e l B I s t r a t e g y e s t r a t e g y S - n o i t

c C I M I A M e C R R E P r o d u c t i n f o r B u s i n e s s o w n e r T r a n s a c t i o n i M o b i l i t y i n t e g r a t i o n i n f o d o m a i n d o m a i n D s t r a t e g y s t r a t e g y ( B 2 B , B 2 C ) S D S A R I - s c a l e - o u t C R R E

C u s t o m e r M a n a g e m e n t P r o d u c t M a n a g e m e n t F i n a n c i a l S o l u t i o n s M a n a g e m e n t C l a i m s & R e c o v e r i e s M a n a g e m e n t r o C o n t a c t P r o d u c t M g t t e C A R c a p a b i l i t y C r e d i t I n s u r a n c e R e i n s u r a n c e a M g t i o w n e r t n C R M F S – e C l a i m s e m b e d d e d i n r C u s t o m e r 2 0 1 8 C I T p r o d u c t v a l u e s t r e a m s e f f

i D e b t M g t F S D

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t “ a c c o u n t ” I n v o i c e

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/ e P o l i t i c a l R i s k B o n d i n g & r o G u a r a n t e e s

C E D C P o l i c y # C I B F S P R I F S

F i n a n c e M a n a g e m e n t L e g a l M a n a g e m e n t H u m a n R e s o u r c e s I n t e r n a l A u d i t O p e r a t i o n s I T M a n a g e m e n t M a n a g e m e n t M a n a g e m e n t C B R g

n P a y m e n t i

t o p t i o n s r o

p A R P o l i c y T e c h n o l o g y p t e r m s i n t e g r a t i o n s t r a t e g y u a d o p t i o n S

F X R a t e s B u s i n e s s a r c h i t e c t u r e I n t e g r a t e d S e c u r i t y p o l i c i e s 10 L e g e n d E I M - I n f o r m a t i o n a r c h i t e c t u r e T i e r 1 T e c h n o l o g y s t r a t e g y Clarification of EA & Business Architecture functions

Strategic Business value Planning Problem Solving achieved Value • Business & IT strategies • Enterprise business issue • Operating models Project Supply resolution • Benefits frameworks • Business diagnostics & Management Solution Delivery Chain • Prioritized investment list countermeasures • Continuous Improvement • Structured deliveries Life Cycle • Standards & procedures • IT outcomes that enable benefits to be achieved

• Business & IT strategies • Operating models • Business & IT alignment • Business problem solving • Investment calibration • Demand Management • Architecture direction • Benefits Management • Architecture assurance • Architecture governance Business Architecture Enterprise Architecture

Project & Portfolio

11 Management Keys to success

 Mindset: EA never considered Business Architecture an incursion of territory – rather, filling a gap in what we needed to do our jobs

 Bus Arch is an enabler not a constraint of EA, with useful separation of duties  Allows us to focus & retrench our core competencies, actually increasing our value prop  I.e. translate, inform & enrich - not define - business strategy  EA likely established first – build early rapport with Business Architecture

 Don’t start from scratch if you don't have to: for its own sanity EA developed methods, models & insight that Business Architecture could leverage – and take over the maintenance of

 Business Capability Map  Enterprise Value Streams  Mappings between Lean processes, value streams & capabilities  Develop a robust sharing & stewardship arrangement that goes both ways  At EDC, had a joint EA & Business Architecture 2 day workshop

12 Gotchas to avoid

 Nomenclature

 Business Architecture – Enterprise Architecture –

 Communication

 E.g. at EDC what we didn’t do was get out in front of the message early enough with this type of definition Business Architecture is a description of the organization, including its components and their relationships to each other, that provides a common understanding of the business used to align strategic objectives and tactical demands This can include facilitation of business and business IT investment strategies, development of operating models* and business future states, business problem resolution, benefits oversight and IT demand management *Where Operating Model refers to the working model that a business wants to operate by, including its core mandate, vision, services, organizational structure, performance metrics, information, processes and applications, and how they relate to each other

13 Conclusion and Q&A

 For us in our situation, was useful to separate the 2 functions

 Does not need to lead to conflict: we will be and already are a better EA team for having a Business Architecture team that can facilitate business strategy, IT demand and business problem resolution, separate from what we do with those outcomes

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