Tag: business architecture

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Business Architecture and Process Modeling for Digital Transformation

At a fundamental level, digital transformation is about further synthesizing an organization’s operations and technology, so involving business architecture and process modeling is a best practice organizations cannot ignore.

This post outlines how business architecture and process modeling come together to facilitate efficient and successful digital transformation efforts.

Business Process Modeling: The First Step to Giving Customers What They Expect

Salesforce recently released the State of the Connected Customer report, with 75 percent of customers saying they expect companies to use new technologies to create better experiences. So the business and digital transformation playbook has to be updated.

These efforts must be carried out with continuous improvement in mind. Today’s constantly evolving business environment totally reinforces the old adage that change is the only constant.

Even historically reluctant-to-change banks now realize they need to innovate, adopting digital transformation to acquire and retain customers. Innovate or die is another adage that holds truer than ever before.

Fidelity International is an example of a successful digital transformation adopter and innovator. The company realized that different generations want different information and have distinct communication preferences.

For instance, millennials are adept at using digital channels, and they are the fastest-growing customer base for financial services companies. Fidelity knew it needed to understand customer needs and adapt its processes around key customer touch points and build centers of excellence to support them.

Business architecture and process modeling

Business Architecture and Process Modeling

Planning and working toward a flexible, responsive and adaptable future is no longer enough – the modern organization must be able to visualize not only the end state (the infamous and so-elusive “to-be”) but also perform detailed and comprehensive impact analysis on each scenario, often in real time. This analysis also needs to span multiple departments, extending beyond business and process architecture to IT, compliance and even HR and legal.

The ability of process owners to provide this information to management is central to ensuring the success of any transformation initiative. And new requirements and initiatives need to be managed in new ways. Digital and business transformation is about being able to do three things at the same time, all working toward the same goals:

  • Collect, document and analyze requirements
  • Establish all information layers impacted by the requirements
  • Develop and test the impact of multiple alternative scenarios

Comprehensive business process modeling underpins all of the above, providing the central information axis around which initiatives are scoped, evaluated, planned, implemented and ultimately managed.

Because of its central role, business process modeling must expand to modeling information from other layers within the organization, including:

  • System and application usage information
  • Supporting and reference documentation
  • Compliance, project and initiative information
  • Data usage

All these information layers must be captured and modeled at the appropriate levels, then connected to form a comprehensive information ecosystem that enables parts of the organization running transformation and other initiatives to instantly access and leverage it for decision-making, simulation and scenario evaluation, and planning, management and maintenance.

No Longer a Necessary Evil

Traditionally, digital and business transformation initiatives relied almost exclusively on human knowledge and experience regarding processes, procedures, how things worked, and how they fit together to provide a comprehensive and accurate framework. Today, technology can aggregate and manage all this information – and more – in a structured, organized and easily accessible way.

Business architecture extends beyond simple modeling; it also incorporates automation to reduce manual effort, remove potential for error, and guarantee effective data governance – with visibility from strategy all the way down to data entry and the ability to trace and manage data lineage. It requires robotics to cross-reference mass amounts of information, never before integrated to support effective decision-making.

The above are not options that are “nice to have,” but rather necessary gateways to taking business process management into the future. And the only way to leverage them is through systemic, organized and comprehensive business architecture modeling and analysis.

Therefore, business architecture and process modeling are no longer a necessary evil. They are critical success factors to any digital or business transformation journey.

A Competitive Weapon

Experts confirm the need to rethink and revise business processes to incorporate more digital automation. Forrester notes in its report, The Growing Importance of Process to Digital Transformation, that the changes in how business is conducted are driving the push “to reframe organizational operational processes around digital transformation efforts.” In a dramatic illustration of the need to move in this direction, the research firm writes that “business leaders are looking to use process as a competitive weapon.”

If a company hasn’t done a good job of documenting its processes, it can’t realize a future in which digital transformation is part of everyday operations. It’s never too late to start, though. In a fast-moving and pressure cooker business environment, companies need to implement business process models that make it possible to visually and analytically represent the steps that will add value to the company – either around internal operations or external ones, such as product or service delivery.

erwin BP, part of the erwin EDGE Platform, enables effective business architecture and process modeling. With it, any transformation initiative becomes a simple, streamlined exercise to support distributed information capture and management, object-oriented modeling, simulation and collaboration.

To find out about how erwin can help in empowering your transformation initiatives, please click here.

data-driven business transformation

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The Importance of EA/BP for Mergers and Acquisitions

Over the past few weeks several huge mergers and acquisitions (M&A) have been announced, including Raytheon and United Technologies, the Salesforce acquisition of Tableau and the Merck acquisition of Tilos Therapeutics.

According to collated research and a Harvard Business Review report, the M&A failure rate sits between 70 and 90 percent. Additionally, McKinsey estimates that around 70 percent of mergers do not achieve their expected “revenue synergies.”

Combining two organizations into one is complicated. And following a merger or acquisition, businesses typically find themselves with duplicate applications and business capabilities that are costly and obviously redundant, making alignment difficult.

Enterprise architecture is essential to successful mergers and acquisitions. It helps alignment by providing a business- outcome perspective for IT and guiding transformation. It also helps define strategy and models, improving interdepartmental cohesion and communication. Roadmaps can be used to provide a common focus throughout the new company, and if existing roadmaps are in place, they can be modified to fit the new landscape.

Additionally, an organization must understand both sets of processes being brought to the table. Without business process modeling, this is near impossible.

In an M&A scenario, businesses need to ensure their systems are fully documented and rationalized. This way, they can comb through their inventories to make more informed decisions about which systems to cut or phase out to operate more efficiently and then deliver the roadmap to enable those changes.

Mergers and Acquisitions

Getting Rid of Duplications Duplications

Mergers and acquisitions are daunting. Depending on the size of the businesses, hundreds of systems and processes need to be accounted for, which can be difficult, and even impossible to do in advance.

Enterprise architecture aids in rooting out process and operational duplications, making the new entity more cost efficient. Needless to say, the behind-the-scenes complexities are many and can include discovering that the merging enterprises use the same solution but under different names in different parts of the organizations, for example.

Determinations also may need to be made about whether particular functions, that are expected to become business-critical, have a solid, scalable base to build upon. If an existing application won’t be able to handle the increased data load and processing, then those previously planned investments don’t need to be made.

Gaining business-wide visibility of data and enterprise architecture all within a central repository enables relevant parties across merging companies to work from a single source of information. This provides insights to help determine whether, for example, two equally adept applications of the same nature can continue to be used as the companies merge, because they share common underlying data infrastructures that make it possible for them to interoperate across a single source of synched information.

Or, in another scenario, it may be obvious that it is better to keep only one of the applications because it alone serves as the system of record for what the organization has determined are valuable conceptual data entities in its data model.

At the same time, it can reveal the location of data that might otherwise have been unwittingly discharged with the elimination of an application, enabling it to be moved to a lower-cost storage tier for potential future use.

Knowledge Retention – Avoiding Brain Drain

When employees come and go, as they tend to during mergers and acquisitions, they take critical institutional knowledge with them.

Unlocking knowledge and then putting systems in place to retain that knowledge is one key benefit of business process modeling. Knowledge retention and training has become a pivotal area in which businesses will either succeed or fail.

Different organizations tend to speak different languages. For instance, one company might refer to a customer as “customer,” while another might refer to them as a “client.” Business process modeling is a great way to get everybody in the organization using the same language, referring to things in the same way.

Drawing out this knowledge then allows a centralized and uniform process to be adopted across the company. In any department within any company, individuals and teams develop processes for doing things. Business process modeling extracts all these pieces of information from individuals and teams so they can be turned into centrally adopted processes.

 

[FREE EBOOK] Application Portfolio Management For Mergers & Acquisitions 

 

Ensuring Compliance

Industry and government regulations affect businesses that work in or do business with any number of industries or in specific geographies. Industry-specific regulations in areas like healthcare, pharmaceuticals and financial services have been in place for some time.

Now, broader mandates like the European Union’s Generation Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) require businesses across industries to think about their compliance efforts. Business process modeling helps organizations prove what they are doing to meet compliance requirements and understand how changes to their processes impact compliance efforts (and vice versa).

In highly regulated industries like financial services and pharmaceuticals, where mergers and acquisitions activity is frequent, identifying and standardizing business processes meets the scrutiny of regulatory compliance.

Business process modeling makes it easier to document processes, align documentation within document control and learning management systems, and give R&D employees easy access and intuitive navigation so they can find the information they need.

Introducing Business Architecture

Organizations often interchange the terms “business process” and “enterprise architecture” because both are strategic functions with many interdependencies.

However, business process architecture defines the elements of a business and how they interact with the aim of aligning people, processes, data, technologies and applications. Enterprise architecture defines the structure and operation of an organization with the purpose of determining how it can achieve its current and future objectives most effectively, translating those goals into a blueprint of IT capabilities.

Although both disciplines seek to achieve the organization’s desired outcomes, both have largely operated in silos.

To learn more about how erwin provides modeling and analysis software to support both business process and enterprise architecture practices and enable their broader collaboration, click here.

Cloud-based enterprise architecture and business process

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Data Driven Enterprise Architecture for Delivering Better Business Outcomes

Data Driven Enterprise Architecture for Business Outcomes

Forget everything that you may have heard or read about enterprise architecture.

It does not have to take too long or cost too much. The problems are not with the concept of enterprise architecture, but with how it has been taught, applied and executed. All too often, enterprise architecture has been executed by IT groups for IT groups, and has involved the idea that everything in the current state has to be drawn and modeled before you can start to derive value. This approach has caused wasted effort, taken too long to show results, and provide insufficient added value to the organization.

In short, for many organizations, this has led to erosion in the perceived value of enterprise architecture. For others, it has led to the breakup of enterprise architecture groups, with separate management of the constituent parts– business architecture, information architecture, solutions architecture, technical architecture and in some cases, security architecture.

Data Driven Enterprise Architecture for Business Outcomes

This has led to fragmentation of architecture, duplication, and potential sub-optimization of processes, systems and information. Taking a business outcome driven approach has led to renewed interest in the value enterprise architecture can bring.

But such interest will only remain if enterprise architecture groups remember that effective architecture is about enabling smarter decisions.

Enabling management to make those decisions more quickly, by having access to the right information, in the right format, at the right time.

Of course, focusing on future state first (desired business outcome), helps to reduce the scope of current state analysis and speed up the delivery of value. This increases perceived value, while reducing organizational resistance to architecture.

  • Understand their goals, objectives and pain points, and then help them to express them in clear business outcome related terms. This will take time and skill, as many business users simply asking for system changes without clearly stating their actual objectives.
  • Review your current architecture efforts and tooling. Question whether you are providing or managing data the business does not need, whether you are working too deeply in areas that may not be adding value, or whether you have your vital architecture data spread across too many disconnected tools.

This blog post is an extract taken from Enterprise Architecture and Data Modeling – Practical steps to collect, connect and share your enterprise data for better business outcomes. Download the full ebook, for free, below.