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Sparx Services North Americawww.sparxsystems.us
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Building Capability Models
The Business Architecture Summit
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
About Sparx Services North America
Align information technology and systems engineering capabilities
with business strategy using industry best practices and
industry leading tooling to deliver world-class results.
� Industry thought leader in enterprise architecture, business
architecture, systems and software engineering, business analysis,
and agile methods
� Member and contributor to
� UML®, SysML®, SPEM, UPDM™/UAF, BACM at OMG®
� TOGAF®, ArchiMate®, IT4IT™ at The Open Group®
� UML Profile and Metamodel teams at Business Architecture Guild®
� Frameworx at the TM Forum
2
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Business Architecture Framework3
Business
Architecture Knowledgebase
� Blueprints provide views into knowledgebase, based on stakeholder concerns
� Scenarios contextualize expected outcomes of business architecture work
� Also inform initial selections of key stakeholders and likely concerns
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Architecture Driven Strategy Delivery4
� Analyze competitive landscape
and current state capabilities
� Define strategy and key initiatives
� Assess viability and impact
� Plan initiative delivery
� Implement and operate solutions
� Monitor outcomes and establish
strategy feedback loop
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Deliver Strategic Outcomes – Entrance/Exit Criteria5
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Map – Definition
� “Delivers concise, non-redundant, business-centric view of the
business at its most basic level”
� Capability is defined as “a particular ability or capacity that a business may
possess or change to achieve a specific purpose or outcome”
� Capabilities describe “what” an organization does (or should do), not “how” it
does it, or “when” or “where” it is performed
� Capabilities do not stand alone
� Need to be mapped from other content (such as value, strategy, organization,
information, product, etc)
� Provides common enterprise vocabulary
� Mapping to other content allows for localized variability
6
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Mapping – Benefits
� Provide enterprise with common vocabulary
� Enables rapid situation analysis
� Particularly true when issues cross organization boundaries
� Provide foundation for identifying commonality across enterprise
� Identify which business units have same or different capabilities
� Common capabilities provide insight into improvement opportunities
� Enable laser-like business investment focus
� Cut through “noise” of overloaded portfolio
� Baseline for strategic planning, change management, and impact analysis
� Capability-based planning (CBP) emerging as strategic planning best practice
� Foundation for business/IT transformation design and deployment
7
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability – Example
� Level 1 capabilities often aligned
with key business object
� Decomposition shown using
hierarchy (or nested boxes)
� Complete set of all capabilities
provide fundamental building
blocks
� Can be arranged in variety of ways
across enterprise
8
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability – Relationships 9
UML Profile for BIZBOK® Guide
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability – Principles
1. Capabilities provide business-centric view of an organization
2. Capabilities are defined in business terms
3. Capabilities are based on business objects
4. Capabilities define what a business does
5. Capabilities are stable
6. Capabilities are defined once for an organization – however, can be
defined incrementally over time
7. Capabilities can be decomposed into finer-grained capabilities
8. There is one capability map for an organization
9. Capabilities map to other views of the business
10. An automated capability is still a business capability – not an IT capability
10
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Mapping – Approaches
� Top-down, enterprise approach
� Create single map for entire business
� Roll up capabilities from all business
units and outsourcing partners
� Takes long-term executive commitment
� Bottom-up, business unit approach
� Create local capability maps for each
business unit
� Challenges scaling up across business
units
� Can provide good seeding for business-
wide map
� Derivative capability map approach
� Create business-wide map, but only top
levels
� Derive business unit level maps from
high-level maps
� Local variability at lower levels
introduces complexities
� Mapping capabilities with
conglomerates
� Likely limit enterprise capability map to
common, shared services
11
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Using Industry Reference Models
� Business Architecture Guild teams have
produced several reference models
� Financial services
� Insurance
� Transportation
� Government
� Common
� Manufacturing
� Healthcare
� Member-based association
� Knowledge management vendors
� Value Reference Model from Value Chain
Group
� Process Classification Framework (PCF) from
American Productivity and Quality Center
(APQC)
� There are numerous business architecture
reference models for vertical industries from
trade organizations
� ACORD for Property & Casualty Insurance
� BIAN for Banking
� Frameworx for Telecommunications
� EMMM for Mining
� IT4IT for Information Technology
� DoDAF for Defense
� FEA for Government
12
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Drafting Level 1 Capability Map
1. Establish candidate list of capabilities
� Work with cross-representation of business people
� Borrow from a starter list of capabilities
2. Refine starter list
� Customize terms specific to business
� Rationalize terms across business
3. Validate starter list
� Identify missing terms present in org chart
� Sanity check against industry reference models
4. Draft level 1 capability map
� Bulleted list in document
� Capabilities allocated to tiers on diagram
13
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Stratification Tiers
� Organize capabilities into three sets for planning and analysis purposes
� Provides framework for deciding where to invest
14
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Defining Capabilities
� Define each capability using single sentence that defines what it is but
not why, when, or how it occurs
� Do not reuse the terms used within the capability name as a part of
the definition
� Define parent capabilities before composing children capabilities
� Define all capabilities prior to full rollout of the map
� Refine and test definitions through socialization and validation cycles
15
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Example Capability Definitions
Capability Definition
Capital
Management
The ability to control, develop, review, analyze, and report
on a financial strategy for maintaining sufficient, equitable
levels of assets and liabilities, in order to meet obligations
and maintain sufficient cash flow.
Customer
Management
The ability to control, predict, process, organize, present,
and analyze all information, documents, preferences,
experiences, and history related to an individual or
organization that has, plans to have, or has had an agree in
place with the company.
Agreement
Management
The ability to establish, organize, analyze, administer, and
report on all aspects of a legally-binding contract entered
into between the company and the customer.
16
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Decomposing Capability Map
1. Prioritize decomposition approach
� Ideally select capabilities pertinent to transformation opportunity
� Identify level 2 capabilities for each level 1capability
2. Draft level 2 capability map
� Hierarchical numbered list in document
� Add level 2 capabilities as boxes nested inside level 1 capabilities on diagram
3. Decompose into lower-level capabilities
� Requires deeper business knowledge
� Define level 1 and 2 capabilities first
4. Frame child capabilities in terms of parent capabilities
� Should be more specific, yet related
� Should be multiple children
5. Refine through iteration
17
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Leveling
� Most decomposition does not go
past level 6
� Not required to describe all
sections to same level
� Higher levels more pertinent to
executives
� Lower levels of concern to
implementers
� Decompose to level that supports
requirements for analysis,
planning, and execution
18
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Map – Validation
� Primarily achieved by facilitated working sessions
� Regular, ongoing participation from key stakeholders and subject matter experts
� Involve representative cross-section of enterprise community
� Don’t limit participation to solely those directly involved in capabilities under discussion
� Particularly in top levels of capability map
� Exploit opportunity to leverage diverse community and associated perspectives
� Begin socialization process
� In many cases, greater awareness and understanding gleaned from building the capability map collaboratively
� As opposed to simply delivering a “completed” map to the enterprise
19
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Attributing and Heat Mapping20
� Common implementation
challenges
� Poorly deployed
� Highly fragmented
� Poorly coordinated
� Higher costs
� Redundant
� Inconsistent
� Best to base on
quantitative measures
� As opposed to qualitative
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Value Stream / Capability Cross-Map21
Capability Instance
Stakeholder
Value
Proposition
Value
StreamValue
Stream
Stage
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Requirements22
Business Requirements
traced to Capabilities
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability / Organization Cross-Mapping
� Describe which business units implement which capabilities
� Helps understand scope and impact of transformation initiatives
� Jumpstart discussion about how same capability is implemented in different places
� Leads to understanding if local variability is advantageous or hindrance
23
BIZBOK® Guide 8.0
Capability
Capability
Instance Organization
Application
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Interactions24
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability-Based Investment Analysis
� Use heat mapped capability map to informed investment priorities
� Capability health, risk, cost, importance, stratification level, strategic disposition
� Need to understand in-flight initiatives that touch each capability
� Hard to make investment decisions if you don’t know commitments already made
� May provide opportunity to adjust and re-align
� Also need to understand operational commitments
� Staffing levels, people costs, IT application costs
� Capability-based planning outcomes result in identifying initiatives and
funding levels
� Focus on incrementally delivery of capability improvements based on cross-section
with value streams
25
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability-Based Planning (CBP)26
Capability Model
Value Stream
Capability
Name: text
Category: Capabil ity Category
Type: Capabili ty Type
Current Maturity Level: Maturity Level
Current Performance Level: Performance Level
Future Maturity Level: Maturity Level
Future Performance Level: Performance Level
Investment Disposition: Investment Disposition
Ave Health Score: number
Ave Risk Score: number
Total Annual Cost: number
Application
Name: text
Health Score: number
Risk Score: number
Total Annual Cost: money
Investment Disposition: Investment Disposition
Operational Status: Application Operational Status
Proposed Date: date
Development Start Date: date
Operational Start Date: date
Decommissioning Start Date: date
Decomissioning End Date: date
Retired Date: date
«enumerati...
Capability
Category
Core
Supporting
Enabling
«enumeration»
Maturity Lev el
Initial (Level 1)
Managed (Level 2)
Standardized (Level 3)
Predictable (Level 4)
Innovating (Level 5)
«enumerati...
Performance
Lev el
Very Poor
Poor
Acceptable
Good
Very Good
«enumerati...
Inv estment
Disposition
Strategic
Maintain
Retire
«enumerati...
Capability Type
Competitive
Differentiating
Commodity
Strategic Business Architecture
Operational Business Architecture
Application Architecture
Migration Planning
Architecture Domains
View APG CBP
UML Profile
Value Chain
«enumeration»
Application Operational
Status
Proposed
Rejected
Under Development
Developed
Operational
Being Decommissioned
Decommissioned
Process
Name: text
Requirement*
0..1
*
has child capabili ties
1
*
0..1
*
*
supports
*
*
0..1
*
depends upon *
*
supports
*
*
*
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Capability Instances and Metrics27
BIZBOK® Guide 8.0
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
Conclusions
� Establish common vocabulary with business architecture to provide clarity
when discussing, evolving, and formulating business strategy
� Align strategic planning with business architecture to provide end-to-end
transparency across enterprise
� Provide foundation for assessment and trade-off analysis
� Enable impact analysis on key business architecture perspectives (value streams,
capabilities, organizations, etc)
� Rationalize business strategies using business architecture modeling best
practices
� Improve understanding by business architecture community and related
stakeholders
� Enable integration of multi-level strategies to understand alignment and flow-down
TCBAF Business Architecture Summit 2019 – Building Capability Models
Copyright © 1998-2019 Sparx Services North America, All rights reserved
29
Q&A
Thanks for your attention
and participation!
Sparx and the names of Sparx’s products are trademarks or registered trademarks of Sparx Systems Pty Ltd.
The Open Group, The Open Group Architecture Framework, TOGAF, IT4IT, and ArchiMate are trademarks or registered trademarks of The Open Group in the
United States and other countries.
BIZBOK, A Guide to the Business Architecture Body of Knowledge, Certified Business Architect, CBA, Guild Accredited Training Program, and GATP are
trademarks or registered trademarks of the Business Architecture Guild.
Object Management Group, OMG, the OMG logo, Business Process Modeling Notation, BPMN, the BPMN logo, OMG SysML, UPDM, Unified Modeling
Language, UML, and the UML logo are trademarks or registered trademarks of the Object Management Group, Inc. in the United States and other countries.
Other company, product, or service names may be trademarks or service marks of others.
http://www.sparxsystems.us
chris.armstrong@sparxsystems.us
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