BA DuPont

Engineering, Operations & Technology
Aligning
Business Architecture with
Business Design
Steve DuPont, Associate Technical Fellow

Enterprise Architecture
March 25, 2015
Copyright © 2015 Boeing. All rights reserved.

Engineering, Operations & Technology Information Technology
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
Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 |1

CopyrightCopyright
© 2015 Boeing.
© 2015All rights reserved.
Boeing. All rights reserved. DuPont,
DuPont, 3/17/2015
3/17/2015 || 22
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

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.

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* Can be
applied to
Design Thinking Business
Strategy
 Empathetic Architecture
 Integrative
 Optimistic
 Experimental Products & Solution
 Collaborative Services Development
* Tim Brown. “Design Thinking,” Harvard Business Review. June 2008.

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)
Visualization is Important
▪ Key roles
▪ Graphic recording
▪ Graphic facilitation
▪ Envisioning
▪ Holistic innovation
▪ Key competencies
▪ Empathetic listening
▪ Real time sketch
▪ Production art
▪ Domain knowledge Michael Erickson, © The Boeing Company 2015
▪ Design thinking / systems thinking

Business Architecture with Design Focus
Building Architecture Business Architecture

Design Phases
 Initial  Vision, goals

Discussions  External influencers
1
 Market analysis
 Information  As-Is business design/
Gathering architecture
 Customer experience
design
 Conceptual  Business model
Design/Feasibility innovation
 Operating model
1  design
 Business architecture
 Design
blueprints
Development
Source: Steve DuPont et al. “Business Architecture and Business Models.” 2014 Business 1A Guide to the Business Architecture Body of
Architecture Innovation Workshop. Object Management Group & Business Architecture Guild. Knowledge (BIZBOK®). 2015
Conceptual Design Artifacts and Business Architecture

Blueprints
Business Models and Operating Model Sketches
Conceptual
Design
Artifacts
embodied in
Detail
Architecture
Blueprints Capability Map Organization Map
Information Map Value Map

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
Product Architecture &
Development Development
Target market entry
Business Model Lifecycle
(shrinking)
Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 | 10

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

Another Way (Designed Focused)…
Design/
Business Model Build
Activity cycles based on
Innovation & Lean Startup* principle #5:
Customer Strategy Build, Measure, Learn
(http://theleanstartup.com/principles)
Experience Learn Test
Design
Business
Architecture  Iterative learning processes
Design &
Planning with dynamic feedback loops
 Responsive to change
 Design-oriented
Product & Solution  Collaborative
Service
Innovation
Development  Adaptable, flexible
Business architecture is performed

Deploy & early to support strategy development &
Scale integrated planning
Target market entry

Business Model Lifecycle
(shrinking)

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, Business Model Cube, Peter Lindgren

Alexander Osterwalder et al., 2010 and the EU Neffics project, 2012

Business Model
Business Model
Innovation & Strategy
“A business model
describes the rationale Value
of how an organization
creates, delivers, and
captures value”*
Strategyzer.com
Business Model Canvas
* Alexander Osterwalder and Yves Pigneur. Business Model Generation. John Wiley & Sons, Inc. 2010.
Value Proposition
Business Model
“A value proposition
describes the benefits
customers can expect
from your products
and services”*
…and how those

products and services Strategyzer.com
are differentiated from

your competitor’s
Strategyzer.com
Value Proposition Canvas
* Alexander Osterwalder, Yves Pigneur et al. Value Proposition Design. John Wiley & Sons, Inc. 2014.
Operating Model (OM)

Business Model
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 Key Value Customer Customer

The OM describes how an Partners Activities Propositions Relationships Segments
organization’s business models
are implemented
Key Channels
Resources
Organization Information Capability
Cost Structure Revenue Streams
Copyright © 2015 Boeing. All rights reserved.

Operating Model Aspects DuPont, 3/17/2015 | 16
Operating Model Design

Business Model
 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

Business Model to OM Mapping (Example)

Business Model
Operating Model Sketch
Innovation & Strategy  Current OM constrains
target business models
 OM designed to realize
target business models
Derived
OM Views
Strategyzer.com
Business Model Canvas Core Diagram
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*
Purchase Feedback
Select Buy Own

S Maintain
Market and Sell Support and Serve
Research 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.
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. **J. Teixeira et al. "Customer experience modeling: from customer
experience to service design." Journal of Service Management. 2012
CX Design to Business Model Mapping (Example)

Customer Experience Value Proposition Canvas
Design
Business Model
Innovation &
Strategy
Business Model Canvas

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 Product Stakeholder
Map Map Map

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

Direct Mapping maps not shown
Select Derived
Mapping Information Map Strategy Map Stakeholder Map
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

Establishing a Design-Oriented BA Practice
 Personal readiness
 Expertise development
 Practice
 Sharing your learnings
 Networking
 Organizational readiness

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

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
 Map conceptual design to business architecture
 Stay close to the customer experience

Discussion

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Engineering, Operations & Technology

Steve DuPont, Associate Technical Fellow

Copyright © 2015 Boeing. All rights reserved.

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 |1

 What is Business Design?

 Application to Business Architecture

 Key Model Views and Related Mappings

 Establishing a Design-Oriented Business Architecture Practice

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 |3

What is Business Design?

“Business design is a human-centered approach to creative problem

 Business design can be effectively used to

 Design thinking is fundamental to business design

* “About Business Design.” Rotman DesignWorks. https://www.rotman.utoronto.ca/FacultyAndResearch/EducationCentres/DesignWorks/AboutBD.

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 |4

“Design Thinking is a discipline that uses a designer’s sensibility and

* Tim Brown. “Design Thinking,” Harvard Business Review. June 2008.

Design Thinking for Business Architects

▪ Design thinking / systems thinking

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 |7

Business Architecture with Design Focus

Building Architecture Business Architecture

 Initial  Vision, goals

Conceptual Design Artifacts and Business Architecture

Information Map Value Map

Strategy to Execution (Traditional)

 Driven by annual cycles

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 | 10

“We don’t have a traditional strategy process, planning

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 | 11

Another Way (Designed Focused)…

Business architecture is performed

Target market entry

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 | 12

Business Model Innovation

Business Model Canvas, Business Model Cube, Peter Lindgren

Copyright © 2015 Boeing. All rights reserved. DuPont, 3/17/2015 | 13

…and how those

are differentiated from

Operating Model (OM)

Key Key Value Customer Customer

Organization Information Capability

Cost Structure Revenue Streams

Copyright © 2015 Boeing. All rights reserved.

Operating Model Design

Operating Model Sketch Core Diagram*

Key OM concerns: integration, standardization, and resource sharing

Business Model to OM Mapping (Example)

Customer Experience (CX)

Customer experience (CX) is the sum of all experiences

Select Buy Own

Research Need Receive Use

Customer Experience Lifecycle**

Customer Experience (CX) Design

CX Journey Map (Oracle)*

Customer Experience Model (CEM)

CX Design to Business Model Mapping (Example)

Business Model Canvas

Business Architecture Design