1 May 22-24, 2007 Washington Dulles Hilton The Business Transformation Conference Chip Wilson Chief Technology Officer Geniant Using Capability Modeling to Facilitate SOA Adoption Welcome to Transformation and Innovation 2007 The Business Transformation Conference
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Using Capability Modeling to Facilitate SOA Adoption
The promises of Service Oriented Enterprise Architecture include greater business agility, improved application integration at reduced cost, and the holy grail of aligning IT initiatives with business objectives. Achieving these goals requires organizations to approach SOA from an Enterprise Architecture perspective. Although existing EA processes and tools can be adapted to facilitate SOA, a new approach is gaining wider acceptance as being especially suited to this task. Capability Modeling focuses on the things that business units can do instead of how they do them. There is a direct corollary to the best practices of service design, where the focus of analysis is on what a service does instead of how it is implemented. Business Capabilities can be described in terms that the business is familiar with, and then mapped directly to services implemented by systems supported by the IT organization. This presentation covers the basics of Capability Modeling and how this important technique can be used by Enterprise Architects to facilitate an SOA adoption program.
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1May 22-24, 2007 Washington Dulles HiltonThe Business Transformation Conference
Chip WilsonChief Technology OfficerGeniant
Using Capability Modeling to Facilitate SOA Adoption
Welcometo Transformation and Innovation 2007
The Business Transformation Conference
2May 22-24, 2007 Washington Dulles HiltonThe Business Transformation Conference
Four Domains of Enterprise Architecture
3May 22-24, 2007 Washington Dulles HiltonThe Business Transformation Conference
Why Business Architecture
• The forgotten stepchild ofEnterprise Architecture
• The least integrated of the four• The four domains are interdependent
• None should be defined in isolation• Necessitates a consistent approach to defining Enterprise
Architecture• Need for alignment between business and IT is merely an
alternative way of expressing this
• Too little effort has been put into creating a common model that encompasses all aspects of Enterprise Architecture
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What’s Wrong with Business Process Modeling
• Represents how the business operates at a given time
• Documents and communicates howrather than what
• Processes change frequently• Optimizing for agility implies a desire to
facilitate change• Aligning IT with a business architecture
that changes frequently sets a company up for frequent changes in the IT architecture
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What Should We Model Instead?
• Focus on what is accomplished• Business functions tend to remain
stable; underlying processes maychange radically and frequently
• Outcomes of processes typically do not fluctuate at all
• The level of abstraction where processesare defined by the purpose they serve
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What Is This Approach Based On?
• A basis can be found in business literatureaddressing core competencies
• The competencies of the business are the what, regardless of how they are accomplished
• “Capability Modeling” is anemerging technique foranalyzing a business or industryand modeling it in terms ofthese competencies
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Capabilities are the Building Blocks of Business
• Basic outcomes ofbusiness processes
• Encapsulate resources• People• Technology• Procedures• Other resources
• Joined together in networks to create higher level business processes
• Composed of processes built on lower level capabilities
Capability
Other Resources
People
Technology Procedures
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Business Unit Capabilities
• Defines a business unit’s purpose• Provides a black box view• Hides internal implementation• A direct input to service design• Parallel black box approach
encapsulates a service’simplementation behind its interface
SOASOA
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Capability Model Attributes
• Capabilities• Purpose• Service level expectation• Customers• Level of granularity
• Relationships• Boundaries
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Levels of Granularity
• Multiple levels model the business in successively finer levels of detail
• Capability Rule of Thumb:• Coarse-grained enough that it remains
constant over time• Fine-grained enough that all
stakeholders understand it
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• Relationships are as important to the Capability Model as the capabilities themselves• Dependencies between capabilities and the
information that passes between them• Indirect relationship via a higher level business process• Capabilities can serve in an oversight capacity,
governing execution of other capabilities• Capabilities can gather metrics on other capabilities or
in some way optimize their execution
Networks of Capabilities
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The Business Boundary Defines The Value Chain
Company
Outsourced functions
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The Physical Boundary Defines the Corporate Entity
Outsourced value chain functions
Environmental Capabilities
OperationalCapabilities
Everything outside the business boundary
XYZ, Inc.
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Core CompetenciesDefine Strategic Capabilities
• Delineate core competencies(capabilities) from non-strategic capabilities
• Core competencies converge with physical boundary in an ideal business architecture• Retain core competencies within the