Category Archives: Open Business Architecture (O-BA)

Digital Transformation and Business Architecture (Part 3 of 3) – Presented by Dr. Giovanni Traverso, Huawei

At The Open Group Shanghai 2016 summit, we invited Dr. Giovanni Traverso, Chief Business Architect of HUAWEI Service Strategy and Architecture Practice, to give a keynote speech “New Open Business Architecture (O-BA) to Support the Construction of Digital Business and Smart Government”.

Huawei was a Diamond Sponsor of this summit, is a Platinum Member of The Open Group and is participating in the creation of the O-BA standard, whose first part was launched in July 2016 as a Preliminary Standard.

Giovanni, who is leading this effort within Huawei, presented Huawei’s perspectives on Business Architecture coming from best practices.

This is part three in a three-part series.

Part #3 – Business Architecture Answers the Business Questions

When undertaking our transformation efforts we need to answer, in a structured way, the inherent business questions, such as:

How to ensure a common understanding of the transformation within the organization? How to align an organization and its constituents towards the goal? Do we have the necessary skills and what changes should we drive, even in our organization’s culture? How to unleash technology-driven innovation to lead business model innovation, as well as the other way round? How processes and organization are going to be impacted? How to identify priorities? What about dependencies and risks?

More importantly: how to focus investments and ensure that the desired business outcomes will be achieved?

How our partners and channels are going to be impacted? How our customers/users’ experience is going to be impacted?

The O-BA standard reflects industry best practices addressing the business view of a transformation.

There are several techniques to uncover the capabilities that a business requires. Any of them will try to combine the business stakeholders’ views in a holistic picture.

For a digital business sake, as discussed in my first post, we want to start from the intended customer experience and make it our baseline.

By The Open Group.png

The relevant customer journeys – tailored to customer personas – represent the main value stream which is the backbone of the whole story.

Along with the customer’s perspective, we will align the relevant value streams of the other stakeholders, including their pursued goals.

Then we will analyze them and uncover the capabilities that enable each stage of the value streams and their respective relationships (e.g. information exchanges).

Capabilities will be mapped to organization and then we will identify respective enablers such as technology, application, process, information, skills.

By The Open Group.png

Business Architecture builds the overall picture and connects the dots in a logical a traceable framework, generating blueprints that represent the current state, future state and possible intermediate steps of a transformation. In this way we can find answers to our business questions.

O-BA describes a typical transformation lifecycle providing a framework for two dimensions of traceability: vertical (from strategy to competitive assessment to investment to implementation and outcomes) and horizontal (across different domains of the organization/ecosystem).

By The Open Group.png

While O-BA is meant to be the overarching framework for a transformation, technology, data and application architectures complete the view according to TOGAF®, an Open Group standard.

By The Open Group.png

Diagrams like the one reported below show the overall transformation and traceability across business objectives (customer’s being on top), capabilities and their interconnections allowing to achieve the objectives, metrics that audit capabilities, applications and relevant investments enabling the desired capabilities. In a closed loop, business architecture provides a framework to control the return on investment from a complex transformation.

by-the-open-group

More details on this example are given in the linked whitepaper produced by Huawei and published by The Open Group: https://www2.opengroup.org/ogsys/catalog/W166

The O-BA is an initiative in the Architecture Forum of The Open Group, driven by six Platinum Members (Capgemini, Hewlett Packard Enterprise, Huawei, IBM, Oracle, Philips) It intends to standardize a common understanding of Business Architecture, reflecting the best practices in the industry (most notably with a contribution by the Business Architecture Guild).

Members of The Open Group can download this presentation at http://www.opengroup.org/public/member/proceedings/Shanghai-2016-08/Presentations/Giovanni%20Traverso-Keynote4.pdf

The Open Group Shanghai 2016 event proceedings are available for members here.

@theopengroup

by-the-open-group

Giovanni Traverso
• 28 years in telecom business, Product Management, R&D Management, Business Unit GM and Transformation Management
• Now leading the Enterprise Architecture team at Huawei Global Services, Standard and Industry Development Dept.
• Certified Business Architect (CBA)
• Contributor to The Open Group Open Business Architecture (O-BA) Standard and the Business Architecture Body of Knowledge (BizBOK)

Leave a comment

Filed under Business Architecture, Digital Transformation, Open Business Architecture (O-BA), Standards, The Open Group, TOGAF®, Uncategorized

Digital Transformation and Business Architecture (Part 2 of 3) – Presented by Dr. Giovanni Traverso, Huawei

At The Open Group Shanghai 2016 summit, we invited Dr. Giovanni Traverso, Chief Business Architect of HUAWEI Service Strategy and Architecture Practice, to give a keynote speech “New Open Business Architecture (O-BA) to Support the Construction of Digital Business and Smart Government”.

Huawei was a Diamond Sponsor of this summit, is a Platinum Member of The Open Group and is participating in the creation of the O-BA standard, whose first part was launched in July 2016 as a Preliminary Standard.

Giovanni, who is leading this effort within Huawei, presented Huawei’s perspectives on Business Architecture coming from best practices.

This is part two in a three-part series.

Part 2 – Business Architecture Enables the Digital Transformation

 

So how to approach such complexity of changes without losing sight of the business intents? How to answer the business questions about investment, risk and assurance, responsibilities, relationships, impacts?

In order to answer our business questions we need a discipline that identifies the components of a business and their relationship. Components and their relationships define architecture, so here comes the “Business Architecture”.

Digital business requires the Business Architecture practice to be open and agile. Open means that it should look beyond our organization’s boundaries, be centered on customer experience and projected towards its industry ecosystem, besides internal focus. Agile means that it should decompose the business into loosely coupled and highly cohesive components, so that the architecture is modular and changes can follow business opportunities incrementally, quickly, limiting risks and mastering dependencies.

The O-BA standard, reflecting industry’s best practices, fulfills these requirements being based on Value Streams and Capabilities.

Capabilities represent the modular components of a business, while Value Streams represent the value creation mechanism that delivers value to the business stakeholders, enabled by those Capabilities. On a macroscopic level the whole thing determines the organization’s unique characteristics that in the O-BA are called “competences”.

How do we apply Business Architecture?

In my previous post, we discussed how digital transformation regards Experience / Operations / ICT Infrastructure. This implies that changes have to happen consistently on three fields: Offering (products/services own and in partnership), Business Practice (processes, skills, organization, information), ICT.

by-the-open-group

According to this view, technology evolution sustains capability increments, which sustain product and services evolution along with the interactions with ecosystem and customers (determining the customer experience).

This structure unleashes digital business innovation.

In a top-down way, a new business model can be decomposed into required capabilities that will be developed, pulling-in certain technologies.

In a bottom-up way, technology evolution can enable/automate new capabilities that will be made available for business. So we have a bidirectional channel that connects and catalyzes innovation however it is originated.

On the other hand, this structure fits with agile delivery.

The digital ICT branch of an organization can build microservices (reflecting a shared capability map) exposed through APIs, while the Lines of Business (or partners) can rapidly consume them creating service chains that realize a business service or automate some process.

For example, a digital service operator can leverage geo-location technology (already built-in) to create an analytic app that, combined with other existing capabilities, allows to send customized ads to users, generating quickly incremental revenues at marginal cost.

Building upon existing capabilities that are well identified allows to generate new services dynamically “on-demand”, thus enabling the business to set the pace, as opposite to traditional monolithic ICT constructions.

Modern business architecture, based on capability maps, is essential to guarantee coordination so that the benefits of DevOps techniques and the API economy can be applied at scale. That is, without losing sight of the business sense and priorities because capabilities are defined by the business, shared in business language, translated systematically into application, information, technology, process, organization and skills.

Members of The Open Group can download this presentation at http://www.opengroup.org/public/member/proceedings/Shanghai-2016-08/Presentations/Giovanni%20Traverso-Keynote4.pdf

The Open Group Shanghai 2016 event proceedings are available for members here.

@theopengroup

by-the-open-group

Giovanni Traverso
• 28 years in telecom business, Product Management, R&D Management, Business Unit GM and Transformation Management
• Now leading the Enterprise Architecture team at Huawei Global Services, Standard and Industry Development Dept.
• Certified Business Architect (CBA)
• Contributor to The Open Group Open Business Architecture (O-BA) Standard and the Business Architecture Body of Knowledge (BizBOK)

 

 

Leave a comment

Filed under Business Architecture, Digital Transformation, Open Business Architecture (O-BA), The Open Group, The Open Group China, Uncategorized

Digital Transformation and Business Architecture (Part 1 of 3) – Presented by Dr. Giovanni Traverso, Huawei

At The Open Group Shanghai 2016 summit, we invited Dr. Giovanni Traverso, Chief Business Architect of HUAWEI Service Strategy and Architecture Practice, to give a keynote speech “New Open Business Architecture (O-BA) to Support the Construction of Digital Business and Smart Government”.

This is part one in a three-part series.

Part 1 – The Digital Transformation Challenges

Huawei was a Diamond Sponsor of this summit, is a Platinum Member of The Open Group and is participating in the creation of the O-BA standard, whose first part was launched in July 2016 as a Preliminary Standard.

Giovanni, who is leading this effort within Huawei, presented Huawei’s perspectives on Business Architecture coming from best practices.

The O-BA standard focuses on transformation as a discipline to support business decision-making and bridge business and ICT. It does so on one hand, by aligning all aspects and actors of a transformation with business vision and goals while, on the other hand, answering the business questions regarding structural investments, especially in ICT.

Giovanni’s speech introduced the O-BA standard and illustrated how it can serve governments and businesses striving to become “digital”.

First, we should characterize what is digital transformation is about. According to Huawei practice, digital business entails three constituents driving (left to right) and enabling (right to left) each other: experience, operations and (ICT) infrastructure. Each one of these involves its own challenges that have to be addressed holistically.

by-the-open-group

Experience is the ultimate front-end between a digital business and its users, customers, partners, employees. Digital businesses deliver experience to them through products, services and their combination, individually or as part of an ecosystem. In order to help focus, Huawei has encoded the key principles of experience as “ROADS” (Real-time, On-demand, All-online, DIY, Social).

by-the-open-group

For example, customers of digital service providers typically will learn about new services through their social network, will want to be empowered to subscribe and consume their services in real-time when they need it, typically through app or portal.

Operation had been revolutionized by digital disruptors in terms of agility, personalization, innovation speed. Thanks to digital technologies, operations are going to be automated, simplified, precisely informed, promptly reactive and even predictive. The new mode of operations is open and collaborative, goes by fast cycles delivering incremental functionality, which allows for adaptive “fail-fast” approach with limited risk.

by-the-open-group

For example, Amazon makes a production change every 11 seconds, Google deploys over 2 billion containers each week, Netflix launched simultaneously in 131 countries (source: state of DevOps report 2015).

ICT Infrastructure is consistently pushed to become open, resilient, self-healing, scalable.

by-the-open-group

Business Architecture coordinates all these evolutions, ensuring that investments will actually deliver the desired business outcome. Beyond decision-making, Business Architecture can also facilitate the actual execution of the new agile service delivery model. We will discuss this in the next post.

Members of The Open Group can download this presentation at http://www.opengroup.org/public/member/proceedings/Shanghai-2016-08/Presentations/Giovanni%20Traverso-Keynote4.pdf

The Open Group Shanghai 2016 event proceedings are available for members here.

@theopengroup

by-the-open-group

Giovanni Traverso
• 28 years in telecom business, Product Management, R&D Management, Business Unit GM and Transformation Management
• Now leading the Enterprise Architecture team at Huawei Global Services, Standard and Industry Development Dept.
• Certified Business Architect (CBA)
• Contributor to The Open Group Open Business Architecture (O-BA) Standard and the Business Architecture Body of Knowledge (BizBOK)

 

 

 

 

Leave a comment

Filed under Business Architecture, Huawei, O-BA Standard, Open Business Architecture (O-BA), Standards, The Open Group, The Open Group China, Uncategorized