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Capability Based

Approach to

Enabling Strategic

Initiatives

Presenters:

Diane LeBeau and Diana Krohn

March, 2014

Enterprise Business Architecture

•Connects United’s business strategies to enterprise capabilities

•Aligns project work to enterprise goals and strategies

•Conducts Impact/Gap Analysis (People, Process, Information, Metrics, Facilities)

•Creates roadmaps to bridge the gap to future state

•Establishes a common framework for business architecture development.

United’s Business Architecture Implementation Model

Business Architecture is a division of Enterprise Architecture, which

reports to IT Business Management

Six Business Architects, report to Director of Business Architecture

Strategic Planning

Project Execution

Initiation Analysis Design Code Test Deploy Closeout

Understand Business Vision

Define IT Strategy

Communicate IT Strategy

Prioritize IT Portfolio

Monitor & Adapt IT Strategy

Strategic Plan

• Associations to Level 2 business capabilities provides holistic view and shared understanding of impact

• Insight at business capability level to opportunities/risks

• Provides common business architecture framework aligning roles to processes to applications, systems and data flow

Guidance/Governance

• Govern - Enterprise Capability Model

• Govern -current/future state process/workflows

• Govern - capability associations representing current state

• Guidance - impact analysis regarding stakeholders, processes, change requirements and apps ( part of SDF workflow)

• Guidance – high level scope definition

Programs/Projects

• Alignment between programs / projects and enterprise strategies, goals and measurements

• Process optimization identification

• Identify type and degree of change to capabilities & processes (drives if further engagement needed)

• Requirements and UAT scenario acceleration

• Provide context for benefit estimation/metric identification efforts

Create Enterprise Assets: Capability Associations for Roles, Processes, Applications and Services,

Current/Future State Business Processes Models, Value Streams

United’s Business Architecture Engagement Model

En

ga

ge

ment M

od

el

En

ga

ge

ment

Po

ints

Strategic Discussions with

Business and IT Strategic

Planning Efforts

Portfolio Program and Project

Inception

Program and Project

Feasibility Phases

Enabling Strategic Initiatives

Current Challenges for Strategic Initiatives

Initiatives labeled strategic, but not linked to organization strategy,

resulting in unclear strategic benefits and progress to goals

Initiatives organized by division, project, or technology resulting in

unidentified dependencies

Initiatives divided into projects without up-front analysis, yields

incomplete scope and missing stakeholders, unrecognized conflicts /

synergies

Initiatives take a bottom-up approach, assumes every process has a

defined owner and no cross divisional requirements

Engagement Points for Enabling Strategic Initiatives,

Using a Capability-Based Approach

Strategic Planning

Portfolio Planning

Program Enablement

Project Enablement

6

Engagement Strategic Planning

Impacted Capability Identification (L2)

• Reduce Fuel expense

• Operational efficiency

• “Best practices” and

continuous improvement for operational decision making

• Reduce complexity for NOC personnel

Network Planning Goals Key Business Programs Network Planning Strategies

• Optimize flight plan for fuel burn, over fly charges, within

on-time goals

• Manage controllable delays and cancellations

• Implement state of the art FLIFO/ACARS system that

provides flexibility to operations and marketing

• Provide accessibility to real-time operational data across

the enterprise

• Reduce system maintenance and operational expenses

• Implement new and enhanced operational decision tools

• Provide user friendly interfaces to reduce user time and

maximize value of new applications

• Improve cascade of recoding of delays and FLIFO

management for UAX flights

• Gain operational synergies

• …

• …

• …

• …

Capability Impact Summary

2 Stakeholders No Channels 12 Applications

8.1

Long-Term Network

Planning

8.2

Future Scheduling

8.4

Intermediate

Scheduling

H.4

Fuel Purchasing &

Delivery

8.5

Current Scheduling

Ramp Personnel

Baggage Claim

Customer

Customer Service Representative

Passengers Arrive

No

YesYes

Yes

No

Terminating BaggageUnloaded Baggage

Passengers

(Connecting &

Terminating)

Connection Passengers

No

Connection Baggage

Passengers

(Connecting &

Terminating)

No

Passengers Claim Baggage

Yes

Meet and Assist

Incoming

Passengers

Manage Check-in

(ECO, ECU,

Mobile, FastAir)

Final

Destination?

Manage Outbound

Baggage Handling

Manage Customer

Rebooking

Monitor and

Maintain Baggage

Claim Area

Bags?

Bags?

IRROPs ?

Manage

Customer

Pre-Travel

Experience

Manage Gate

Boarding Service

Manage Inbound

Baggage

Passengers

Leave

Airport

Fl ight

Departs

Fl ight

Arrives

Departure Arrival

Improve MBTA

performance and

improve resource

utilization

Reduce complex

check-in

processes that

drive variable

staffing

-Provide consistent update

frequency and complete info

-Resolve automation’s multiple

failure points

Automate or eliminate

simultaneous, time sensitive

activities that drive higher

staffing

Strategies Mapped to Capabilities (L2)

Engagement Portfolio Planning

Impacted Capabilities Identification (L3) 8.1

Long-Term Network

Planning

8.1.2

Create Route List

8.1.1

Determine

Long-Term

Industry &

8.1.5

Develop &

Evaluate Fleet

Plan

8.1.4

Obtain Network

Plan Agreement

8.1.3

Produce Network

Cost & Revenue

Forecast

8.3

Alliance Partners

Evaluation

8.3.2

Assess

Alliance/

Partnership Value

8.3.5

Assess Fleet Plan

to Partner Impact

8.3.3

Define Airline

Partners

Agreement

8.3.4

Ensure Optimal

Other Airline

Capacity

8.3.1

Investigate

Potential Airline

Agreements

8.4

Intermediate

Scheduling

8.4.1

Assess

Unconstrained

Demand

8.4.2

Assign Draft Fleet

Schedule

8.4.3

Perform High

Level Operational

Schedule

8.4.5

Produce Final

Schedule

8.4.4

Re-fleet Draft

Schedule

8.5

Current Scheduling

8.5.3

Communicate

Schedule Changes

8.5.1

Develop Route

Options

8.5.2

Develop/Agree

Action Plan

8.5.7

Disseminate Fleet

Service Schedules

& Timetables

8.5.4

Monitor Route

Profit Performance

8.5.5

Provide

Holiday/Special

Event Volume

8.5.6

Schedule Charter

Flights

H.4

Fuel Purchasing &

Delivery

H.4.2

Hedge Fuel

H.4.4

Perform Fuel

Accounting

H.4.1

Plan Fuel Needs

H.4.3

Purchase Fuel

8.2

Future Scheduling

8.2.6

Evaluate Route

Forecast Accuracy

8.2.3

Negotiate, Obtain

& Schedule Airport

Slots

8.2.5

Obtain New

Routes/Markets

Agreement

8.2.4

Optimize Through

Assignments

8.2.1

Prepare Route

Forecasts

8.2.7

Produce Draft

Season Schedule

8.2.2

Update Industry &

Economic

Assumptions

Impact by

Business Unit

Impact by

Business Unit &

Other Business

Unit(s)

Impact by Other

Business Unit(s)

No Impact

Strategy Impact by Capability (L3)

Overall Strategy Business Unit Impact:

Other Business Unit Strategy: Finance strategy to overhaul 5-10 year profitability forecasting models to take in to

account additional parameters.

Synergy: Synergy between fleet planning strategy to divest of less fuel efficient aircraft and purchase new aircraft

and network planning strategy to more closely align fleet with capacity demand.

Conflict: Network Operations strategy to improve flight number utilization by investing in flight number optimization

in conflict with Operations strategy to reduce impact of through flight handling issues, by eliminating through flights,

except where required for legal or marketing reasons

Other Business Unit Strategy: Aircraft Maintenance & Marketing strategy to expand Economy Plus in Q4. This will

change the capacity of upgraded aircraft.

8.1.1

Determine Long-Term

Industry & Economic

Assumptions

8.1.5

Develop & Evaluate

Fleet Plan

8.4.2

Assign Draft Fleet

Schedule

8.2.4

Optimize Through

Assignments

Business As Usual Incremental Improvements Significant Improvements Transform

Impact by

Business Unit

Impact by

Business Unit &

Other Business

Unit(s)

Impact by Other

Business Unit(s)

No Impact

Engagement Program Enablement

Program Business Readiness Approach

Objective Action

Conduct Initial Assessment

Identify and understand impacted processes

Ensure all aspects and stakeholders considered

For each capability:

Assess the processes impacted

Identify stakeholders

Collect existing process documents (or create,

as needed)

Identify Gaps and Differences

Specifically identify what will change (to support

training, communication, and testing)

Use process documents to facilitate

discussion

Produce a list of differences

Categorize Gaps and Differences

Define change impact

Communicate change impact

Decide if any remediation is warranted

Label each difference as gap, accepted

difference, or follow-up

Prioritize gaps and train to differences

Program Business Readiness Applications

Deliverables

Training Plan / Materials

Highlights business impacts, and need for training/communication

Allows training team to estimate duration & type of training delivery required

Provides the basis for training scenarios

Testing Plan/Scripts

Provides the basis for business functional test / dress rehearsal scenarios

Business Readiness Task Identification

Identify outstanding activities or decisions required prior to implementation

Communication Plan / Materials

Communicate end-to-end process and change impacts to extended stakeholder group

(upstream/downstream impacts)

Identify additional stakeholders requiring communication

Identify regulatory impacts

QA - Inspectors

Stores / Warehousing

SCEPTRE

Purchasing

Accounting

Returns

Yes

No - InspectionNeeded

Yes

No

Yes

No

No -Inspection Not

RquiredPO

RO

Order from Vendor

14.3.5.1.1Stores Receives

Material

14.3.5.1.6MaterialInspected

14.3.5.1.7WarehouseCreates Part

Exception

14.3.5.1.8Parts Stored inException Cage

14.3.5.1.12Exception

Transmitted toBuyer

14.3.5.1.10Stores Bins Material

14.3.5.1.11Status Updated

Is there anExceptionRequired?

ReceivingPaperwork OK?

ExceptionResolved?

14.3.5.1.13Resolve Part Exception

Returns Process

Payment Process of Accounts Payable

14.3.5.1.9Log Exception

Invoice Approval

Order from Internal

Type ofOrder

14.3.5.1.2Material

Arrives at theReceiving Dock

14.3.5.1.3POs andROs areSorted

14.3.5.1.5Paperwork and

Parts areReviewed for

Discrepencies

14.3.5.1.4RO is Inputed into SCEPTRE

Sample Deliverable: Integration

Gap: No auto-generation

of stock replenishment

orders at time of receipt

(station queues are

monitored for needs)

Enhancement: Ability to

define multiple controlled

stockrooms for a part

(vs. primary bin)

Accepted Difference:

Inventory ownership

occurs in SCEPTRE upon

binning (vs. upon receipt)

Migration Dependency: Data

harmonization needed for

chemical receipt requirements

(Chem5 database ->

SCEPTRE/TO Portal)

Sample Deliverable: New Product Development

Presentation Title 18

Customer

Refund Department

LiveTV

Customer Care

Credit Card Company

Receipt Number (444#)

Receipt Number (444#)Request

Refund Successful

Yes

No - Recoverable Reason

No - Unrecoverable Reason

RefundFailed

Resubmit Request

Resubmit Request

Refund Successful

Credit Card and CustomerInfo.

Receipt Number (444#)

ReceiptNumber(444#)

Submit Refundthrough

United.com

Email CustomerCare

E-mail444 List

RASCAL 444 Tickets

444 List (RASCAL and E-mail)

«united.com»

3

Submit Refund

Request Using

Receipt Number

«RASCAL»Store Refund

Receipt Number(444)

«LiveTV Portal -

Purchase»

1

Generate Receipt

Number (444 #)

and Receipt

«Excel, XML or

CSV»

7

Collect RASCAL

and E-mail List

and Submit to LTV

«RASCAL»

4

Extract Receipt

Number

«Automated»

11

Communicate

Refund Successful

12

Receive Success

Confirmation

Refund Successful?

«Automated»

13

Send Conf irmation

Refund Attempt

Failed

«Automated»

16

Send Message to

Try Request Again

«Automated»

9

Process Refund

Request and Send

Refund Status

«Automated»

14

Confirm Refund

Declined w ith

Reason Code

«Email»

15

Resolve Refund

Failures

TBDDistribution

Group

20

Request Refund

Status - Card

RejectedRefundDenied

22

Provide Credit Card

Denial Reason

21

Direct Customer to

Credit Card

Company

«Automated»

18

Send Resubmit /

Try Again Later

Request

19

Receive Resubmit /

Try Again Request

«Weekly»

17

Send Wi-Fi Refund

Report

PurchaseOnboard

Wi-Fi

CustomerEnd

EndProcess

10

Send Refund

Success

Confirmation

«Email Receipt»

2

Determine Refund

Path

Refund Path?

«KANA»

6

Capture Refund

Requests (E-mail)

«RASCAL»

5

Route 444 Refund

Tickets to

Customer Care

8

Submit Refunds to

Credit Card

Company for

Processing

RefundSuccessful

Engagement Project Enablement

Business and IT Stakeholder

Identification

Application and System Impacts

PCI / SOX Compliance Impacts

Process Change

Presentation Title 20

United Enterprise Architecture Strives to be a Single

Source for Projects to Understanding Change

Business Architecture Home Page

BUSINESS CAPABILITY STRATEGIC PLANNING PROGRAM

& PROJECTS

Business Capability links to

Organizations, Channels, Applications and

Current-State Process Models; includes

Business Capability Model Hierarchy

Program & Projects links to Future-State

Process Models and Impact Analysis

Strategic Planning links to Roadmaps

and Strategy Mapping/Alignment models

with associations to Business Capability

Shared Document Library

Published Business Architecture Artifacts

Value Summary

Strategic Planning

Synergies, conflicts, and opportunities identified early in process,

able to influence investments

Portfolio Planning

Streamlined roadmaps, due to improved sequencing and

dependencies identification

Program Enablement

Efficient approach to identifying scope

Example: identified over 200 differences for harmonization during

tech ops migration by reviewing all processes associated with 5 L2

capabilities, within 6 weeks

Project Enablement

Requirements and UAT acceleration

Example: Reduced spend for requirements definition by 66k by

providing business architecture deliverables.