1. Business Architecture
Business Modeling
Less Risk – Better Results
1

2. Trained over
100,000 professionals
700
In excess of
Organizations using our methods
1,400
Completed over
requirements projects
> 200 trained
professionals focused 100%
on excellence in business
requirements
10%
Annually invested
of our
revenue in developing our methods and
harmonizing these with industry best
practices
Founding member
of the IIBA
Authors of
The Business Analysis Benchmark
300
Worked with over
of the
Fortune 1000 companies

3. Webinar
Business Architecture - Business Modeling
OBJECTIVES
Intended to:
Not intended to:
Bring a high level overview of
the value of business modelling
Be a detailed discussion on the
use of tools and techniques
Demonstrate applicability
regardless of the Change
Agenda
Describe various approaches
which may be used in a strategic
initiative
Illustrate the process
architecture as a model type
within the business architecture
As Courseware
Description of benefits
3

4. Business Architecture - Business Modeling
Business Architecture
Business Modeling Goal
Drive business based on industry best practice
Rather than constraining business
outcomes by the underlying technology
Focus on Business Objectives
Managers and analysts, can work through the lens of the
business imperative rather than the technology possibility
Align business processes to business strategy
To effect overall improved company performance of specific
work activities
4

5. Business Modeling
Business Architecture - Business Modeling
Objectives
Models, methods and standards
are the optimal enabler to deliver
WHY MODEL THE
BUSINESS ?
on business objectives and
translate business strategies into
appropriate solutions.
5

6. Business Modeling
Business Architecture - Business Modeling
Objectives
Achieve cost reduction
opportunities
WHY MODEL THE
BUSINESS ?
Develop common processes &
leverage best practices
Simplify & streamline
processes eliminating overlaps,
duplication and waste
Expose Business requirements
6

7. Business Modeling
Business Architecture - Business Modeling
Objectives
Standardization
Identify common reusable
processes
WHY MODEL THE
BUSINESS ?
Stakeholder clarity
Define process dependencies,
context and points of
integration
Manage knowledge as an asset
by creating an Enterprise library
of business content
7

8. Business Modeling
Business Architecture - Business Modeling
Objectives
WHY MODEL THE
BUSINESS ?
Create consistent branded
experience for employees and
the customer
Focus employees on providing
responsive service to clients
8

9. Business Modeling
Business Architecture - Business Modeling
Objectives
WHY MODEL THE
BUSINESS ?
Risk assessment capability
through the identification and
greater understanding of the
business impact enabling
mitigation of associated and
potential risks
Minimize development risk by
clearer articulation of business
objectives and requirements
9

10. Business Modeling
Business Architecture - Business Modeling
Objectives
Support future state business
design built on concepts of
reusability
WHY MODEL THE
BUSINESS ?
Provide the basis to ensure
processes are foundational
Harvest operational intellectual
property into a knowledge base
Cross-Enterprise Leverage
10

11. Business Architecture - Business Modeling
Analysis Result
Business Strategy
Business Change- How Big? Competing or
Complimentary Strategies?
Optimization
Reengineering
Transformation
Redefining the business
process to eliminate
localized operational
challenges
Redesigning of the business
process to meet market or
competitive needs or increase
efficiency/effectiveness of the
current business operating
model.
Radical, large scale change
in the business operating
model and the product or
service delivery
Business As Usual
Competitive Requirement
Future State
 Continue forward with
marginal deployment
capabilities
 Cost reduction focus
 Market differentiation involving
significant corporate will.
 Keep the Lights on
 Business case may support
transformational strategy.
 Limited expected revenue
increase
 Requires policy change, product
rationalization, resource
rightsizing
 Long term in nature.
11

12. The Power of
Business Modeling
Business Architecture - Business Modeling
Communication
Facilitating cross-group understanding
Analysis
Modeling as a thinking tool
Facilitation
Excellent method for eliciting requirements
Scope Control
Precise tool for defining what’s in and what’s out
Management Tool
Implicit becomes explicit, and becomes manageable
12

13. Blueprinting –
Business Architecture - Business Modeling
A Business Architecture Model
Methods, tools and techniques develop agile and integrated business perspectives
Sales, Market & Relationships
Strategy &
Governance
Market Management
Strategy
Business
Business
Strategy
resource &
Management sales planning
Client mkt
research &
analytics
Global MIS
Sales/Product
Monitoring
Alliance
planning
Operations
strategy &
policy
Customer
Behaviour
Models
Segment
Analysis &
Planning
Governance
Executive &
Stakeholder
Management
Business
Architecture
End to End
Service Level
Management
Marketing
Management
Brand
Management
Sales & Distribution
Independent
Electronic
Asset
Service
Management
Counter/
Branch
Services
Sales Force
Management
Prospecting &
Sales
Segmented
Servicing
Risk, Financial &
Compliance Management
Channel
Management
After Sales
Service
Products & Services
Product
Catalogue
Management
Product /
Servicing
Sourcing
Hedge Funds
Management
FX & MM
Management
Product &
Services
Support
Customer Insight
Customer
Management
Strategy
External
Corporate
Comms
Client Relationship Management
Client
Relationship
Contact
Acquisition &
Management Management
Referrals
Product Management
Securities
Product
Management
Structured
Cash
Product
Management
Management
Funds
Management
Credit
Management
Trade Services
Management
Card
Management
Insurance
Products
Management
Financial
Planning
Allocations
Execution
Management
Trade
Reporting
Research &
Analysis
Confirmation
& Matching
Cross-Product/Service Client Facing Processing
Client
Document
Client Tax
Client Account
Accounting &
Administration
Management
Reporting
Reporting
Credit
Safe Keeping Fees & Billing Performance
Approval
Management Management Measurement
Management
Rewards
Management
Collections
and Recovery
Merchant
Operations
Correspondent
Banking
Collateral
Handling
Authorisations
FX & MM
Processing
Credit
Processing
IT Architecture
Trading Support
Product &
Processing &
Service
Client Support
Trade Support
Control
Cross-Product/Service Non-Client Facing Processing
Involved 3rd
Corporate
Reconciliation
Clearing
Party
Actions
Maintenance Management
Payments
Family Office
Services
Trust & Estate Strategic Asset Tactical Asset
Planning
Allocation
Allocation
Trading Services
Order
Management
& Grouping
Operations & Processing
Cash Services
Service Management
Discretionary
Client Risk
Portfolio Mgt
Profiling
Services
Group / Pb
Advisory
Services
Risk
Credit Risk
Operational
Control
Risk Control
Management
Management
Market Risk
Settlement
Control
Risk Control
Management
Management
Legal &
Securitisation
Regulatory
(incl.
Syndications)
Risk Mgm’t
Nostro Cash
Management
Settlement
Custody
Specific Product Processing
Structured
Securities
Fund
Products
Processing
Processing
Processing
Card
Processing
Operational
Monitoring
Financial
Financial
Decision
Accntg &
Support
Reporting
Treasury
Management
Market Data
Management
Balance Sheet
Management
Compliance
Internal Audit
Hedge Fund
Processing
Trade Services Life Insurance
Processing
Processing
Regulatory &
Compliance
Legal
Awareness &
Compliance
Regulatory &
Legal Doc.
Management
Centralised Service Centre Management
Business Policies
and Procedures
GSC
Monitoring
Service Centre
Mgmt
Support Infrastructure
Support & Logistics
Legal
Programme &
Change
Management
Facilities
Operation &
Maintenance
Procurement
Internal
Comms (excl.
customer)
HR & Payroll
OPS Design &
Implement
Design apps &
IT
infrastructure
Information Technology
Operate &
Build apps & IT
maintain apps
Security
infrastructure
& IT i/f
Business
continuity
13

14. Blueprinting - Model
Face 2 Face
Telephone
Post
PDA
Online
Email
Intermediary
Sales, Market & Relationships
Risk, Financial &
Compliance Management
Strategy & Governance
Market Management
External Corporate
Comms
Client Relationship Management
Marketing
Management
Brand
Management
Client Acquisition &
Referrals
Sales & Distribution
Relationship
Management
Contact Management
Counter/ Branch
Services
Independent Asset
Management
Sales Force
Management
Group / Pb Advisory
Services
Segmented Servicing
After Sales Service
Client Risk Profiling
Discretionary
Portfolio Mgt Services
Family Office Services
Trust & Estate
Planning
Strategic Asset
Allocation
Tactical Asset
Allocation
Product & Service
Control
Processing & Trade
Support
Client Support
Electronic Service
Channel Management
Risk
Strategy
Business Strategy
Management
Client mkt research &
analytics
Prospecting & Sales
Credit Risk Control
Management
Products & Services
Product Management
Settlement Risk
Control Management
Service Management
Product Catalogue
Management
Hedge Funds
Management
Funds Management
Securities Product
Management
Credit Management
Trade Services
Management
Product / Servicing
Sourcing
Sales/Product
Monitoring
Operational Risk
Control Management
Market Risk Control
Management
Business resource &
sales planning
Global MIS
FX & MM
Management
Cash
Management
Structured Product
Management
Card Management
Insurance Products
Management
Financial Planning
Trade Reporting
Confirmation &
Matching
Allocations
Research & Analysis
Securitisation (incl.
Syndications)
Deconstructing the business architecture – foundational model types
Alliance planning
Operations strategy &
policy
Product & Services Support
Business Architecture - Business Modeling
Trading Services
Trading Support
Financial
Order Management &
Grouping
Customer Insight
Execution
Management
Financial Accntg &
Reporting
Customer
Management
Strategy
Customer Behaviour
Models
Treasury
Management
Cross-Product/Service Non-Client Facing Processing
Merchant Operations
Client Account
Administration
Document
Management
Client Accounting &
Reporting
Reconciliation
Clearing
Involved 3rd Party
Maintenance
Corporate Actions
Management
Operational
Monitoring
Correspondent
Banking
Payments
Nostro Cash
Management
Settlement
Custody
Market Data
Management
Client Tax Reporting
Credit Approval
Management
Governance
Balance Sheet
Management
Operations & Processing
Cross-Product/Service Client Facing Processing
Segment Analysis &
Planning
Decision Support
Safe Keeping
Management
Fees & Billing
Management
Performance
Measurement
Cash Services
Rewards
Management
Collections and
Recovery
Collateral Handling
Compliance
Specific Product Processing
Business Architecture
Executive &
Stakeholder
Management
End to End Service
Level Management
Internal Audit
FX & MM Processing
Structured Products
Processing
Securities Processing
Credit Processing
Card Processing
Fund Processing
Regulatory & Legal
Doc. Management
Hedge Fund
Processing
Authorisations
Trade Services
Processing
Regulatory &
Compliance
Legal Awareness &
Compliance
IT Architecture
Life Insurance
Processing
Centralised Service Centre Management
Business Policies and
Procedures
GSC Monitoring
Service Centre Mgmt
Support Infrastructure
Support & Logistics
Legal
Information Technology
Programme & Change
Management
Facilities Operation &
Maintenance
Procurement
Internal Comms (excl.
customer)
HR & Payroll
OPS Design &
Implement
Design apps & IT
infrastructure
Operate & maintain
apps & IT i/f
Build apps & IT
infrastructure
Security
Advantages
Visual improves ability
for stakeholder sign-off
Well defined processes,
terms and definitions
Acceleration in
identifying reusable
processes and rules
Consistent language to
support transfer of
knowledge
Logic is contained
within the process
View to standardization
and reusable processes
Business continuity
Each Capability is
underpinned by a
number of Business
Functions
Each Function is in
turn supported by a
range of Business
Processes
Each process
collaborates across a
set of activities and
tasks to compete the
business objective
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15. Business Architecture - Business Modeling
Process Architecture -
Decomposition
Level
Business Process
Vision
Recognizable because the
boundaries are on external
customers and suppliers
1
Sub-Processes
Activities
Tasks
Strategic
Detail Description
Processes
2
SubProcesses
Managerial
Details a sub-process of specific
activities carried out by functional
area or systems
3
Activities
Operational
Activities carried out by specific role
4
Tasks
Operational
Atomic Activities carried out by
specific position or employee
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16. Business Architecture - Business Modeling
Business Modeling Benefits
Time: Project teams surveyed indicate 50% reduction in time to develop
business requirements
Cost Savings: planning & analysis phases can save 80% of the cost of
implementation errors
Consistency: Naming conventions are constant to ensure standardized
taxonomy enabling knowledge transfer and ease of communication
Reuse: 68% average reuse of workflows and use cases translates to lower
costs and accelerated development
Effort Impact: Reuse facilitates discovery, analysis, validation, prioritization
and management of requirements producing value add artefacts for
downstream work
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Survey of Internal Transformation Project Resources - Royal Bank of Canada 2005

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To claim your PDU’s
Activity Number: IAG636
Provider ID: 2858
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