Transforming your business systematically from Fragile to Agile – ME Case Study Glenn Smyth Founder and CE Fragile to Agile Pty Ltd 14 th December 2015 “The best way to predict your future is to invent it” Frank Herbert, Dune “The best way to predict your future is to invent it” - Frank Herbert AGILITY BY DESIGN
Agility by Design Overview • Brief Fragile to Agile Introduction • The case for change • Where are we now? - Fragile Inc. • Where do we need to be? - Agile Inc. • What do we need to get there? - BCM • How do we make it happen? • Brief case Studies • Summary www.fragiletoagile.com.au 16/12/2015 2 AGILITY BY DESIGN
Agility by Design Fragile to Agile Introduction • Adelaide based dedicated architecture company launched in 2009 • We specialise in: Delivering independent • Enterprise Architecture planning and design • Solution Architecture expertise for business • Business Capability Modelling agility. • Targeted Strategic Roadmaps • Digital Transformation • Domain Reference Architectures • Enterprise Architecture Practice Establishment • Architecture Governance • Project Conceptual Design • Micro Services Architecture • Data Modelling • BPM/SOA Readiness www.fragiletoagile.com.au 16/12/2015 3 AGILITY BY DESIGN
Agility by Design Fragile to Agile Introduction Our Brand Promise: We identify the right change and make it predictable. Our Value Proposition: We help you deliver your strategy with confidence whilst minimising cost and risk and maximising agility. www.fragiletoagile.com.au 16/12/2015 4 AGILITY BY DESIGN
Agility by Design Fragile to Agile Clients www.fragiletoagile.com.au 16/12/2015 5 AGILITY BY DESIGN
Agility by Design The case for change • Disaggregation of the Business Model • Industry deconstruction • Enterprise reconstruction • Move to market services • Increasing levels of outsourcing • Disrupters “eating away” at business model from the edges, e.g. “Fin Tech” • Must ascertain where the organisational boundary lies • Responsiveness • Half-life of competitive advantage from product innovation continually falling • Industrialisation has hampered speed to market • Rate of change increasing • New channels coming on stream regularly • Increasing Market Segmentation • Generational change • Demographic change • Mergers and acquisitions Agility/Adaptability is the new Black www.fragiletoagile.com.au 16/12/2015 6 AGILITY BY DESIGN
Where are we now? The case for change • $80 -145 billion p.a. spent on failed and cancelled projects (The Standish Group International, Inc.) • 25% - 40% of all spending on projects is wasted as a result of re-work (Carnegie Mellon) • 50% of changes are rolled back out of production (Gartner) • 40% of problems are found by end users (Gartner) • Poorly defined applications result in a persistent miscommunication between business and IT; contributes to 66% project failure rate for these applications, costing U.S. businesses at least $30 billion p.a. (Forrester Research) • 60% - 80% of project failures attributed directly to poor requirements gathering, analysis, and management (Meta Group) • Nearly two thirds of all IT projects fail or run into trouble. www.fragiletoagile.com.au 16/12/2015 7 AGILITY BY DESIGN
Where are we now? Spaghetti Architecture – the ‘Fur Ball’ • Business processes are embedded in code, fragmented, difficult to change • Increasing time and cost to market • Solutions that do not match intent or fail • Multiple solutions exist for business capabilities • Data integrity issues and no single source of the truth • Inability to react to market forces resulted in Intertwined systems with inflexible interfaces and the this company going from market leader to need for the manual bust in 10 years rekeying of data www.fragiletoagile.com.au 16/12/2015 8 AGILITY BY DESIGN
Where are we now? Fragile Inc. - Processes Organisational DNA www.fragiletoagile.com.au 16/12/2015 9 AGILITY BY DESIGN
Where do we need to be? Agile Inc. Architecture • Cheaper and quicker to market • Changes to business processes can be made in materially less time • Management has real time visibility of the performance of the business • Can easily switch between internal and external capability delivery • Can independently optimise specific business capabilities • Communication channels are added without requiring major system changes • Single view of the customer and other key stakeholders • IT solutions that support true business agility • Materially lower risk in change execution • Agile Inc. transcends strategy - it’s an overarching business and technology “It is not the strongest of the species that design paradigm which is not dependent survives but the most adaptable” on strategy or industry segment Charles Darwin www.fragiletoagile.com.au 16/12/2015 10 AGILITY BY DESIGN
Where do we need to be? Seamless End to End Approach to change www.fragiletoagile.com.au 16/12/2015 11 AGILITY BY DESIGN
What do we need to get there? Agility Pyramid www.fragiletoagile.com.au 16/12/2015 12 AGILITY BY DESIGN
What do we need to get there? Agility Pyramid www.fragiletoagile.com.au 16/12/2015 13 AGILITY BY DESIGN
What do we need to get there? Integrated Change Framework www.fragiletoagile.com.au 16/12/2015 14 AGILITY BY DESIGN
What do we need to get there? Agility Pyramid www.fragiletoagile.com.au 16/12/2015 15 AGILITY BY DESIGN
Business Capability Model Explained • A logical model of what the business does, not how it does it (business process model) or who does it (organisational structure) • Models the business as a set of services (service providers), including internally sourced and externally sourced services • Has nothing to do with IT (at this stage), all services are modelled irrespective of whether they are manual or automated • Is static, only changes if an organisation is entering/exiting a business or adding a new technical channel but not when implementing new products • Insourcing/outsourcing of a capability/service does not affect the model • Although it is fundamental to achieving agility (and often done to facilitate this), bigger benefits often flow from the deeper understanding of the business it yields www.fragiletoagile.com.au 16/12/2015 16 AGILITY BY DESIGN
Business Capability Model Views Executive View • Decomposes capabilities to two levels of abstraction only • Less rigour applied due to its high level nature • Consulting artefact • Used to manage up e.g. heat maps, investment and prioritisation Architecture View • Decomposes capabilities to four or five levels, where necessary • Design artefact – must be developed with rigour to achieve the detail required • Used for deep technical design e.g. overlays, Current State, Target State BPM/SOA View • Adds service containers - defines process and data boundaries and answers key BPM/SOA design questions Recommended to use the same model for both consulting and design purposes www.fragiletoagile.com.au 16/12/2015 17 AGILITY BY DESIGN
What do we need to get there? Business Capability Model Executive Level Example – A Council www.fragiletoagile.com.au 16/12/2015 18 AGILITY BY DESIGN
What do we need to get there? Business Capability Model Executive Level Example – A Council www.fragiletoagile.com.au 16/12/2015 19 AGILITY BY DESIGN
What do we need to get there? Business Capability Model Architecture Level Example – An Environment Department www.fragiletoagile.com.au 16/12/2015 20 AGILITY BY DESIGN
What do we need to get there? Business Capability Model Architecture Level Example – An Environment Department www.fragiletoagile.com.au 16/12/2015 21 AGILITY BY DESIGN
How do we make it happen? Our Approach Planning & Consulting Operating Model BCM Executive View Outcomes High Level Heat Maps & Sharing Current State & Detailed Overlays BCM Architecture View Roadmap Target State High Level Design www.fragiletoagile.com.au 16/12/2015 22 AGILITY BY DESIGN
www.fragiletoagile.com.au 16/12/2015 23 AGILITY BY DESIGN
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