BRKCRT 1905

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Broaden Your Technical

Expertise with Business
Skills
Business Architecture Introduction
Brian Jackson, Business Architect

BRKCRT-1905
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© 2019 Cisco and/or its affiliates. All rights reserved. Cisco Public 3
Why Business Skills?
#CLMEL BRKCRT-1905 © 2019 Cisco and/or its affiliates. All rights reserved. Cisco Public 4
CIO Role Disruption
The nature of the CIO’s job has changed from the

role of delivery executive to that of IT business
executive
By 2020, 80% of IT executives will be
compensated on business KPIs
- IDC
Enhancing how Cisco does business
Customers Business
needs View of
at the Centre Enterprise
Work with Align

IT and technology
Business to business
leaders requirements
Agenda
• Cisco Business Architect Program

• Business Architecture Method
• Understanding the Business
• Verifying Needs, Strategy and Priorities
• Preparing and Presenting the Business
Case
• Conclusion
Cisco Business
Architecture
Cisco Business Architecture Role
Understand the Business Understand Technology
Bridge Gap between Define Business Align Budget to Business

Business and IT Capabilities Priorities
Four Pillars of Skills Capabilities
Enterprise Advanced
Business Acumen Entrepreneurship
Architecture Consulting
Multi-Domain Consulting Lifecycle Business Change and
Business Outcomes
Architectures approach Leadership
Customer Strategy, Architecture Solving Business
Business Innovation
Business Needs Methodologies Problems
Stakeholder Capability Analysis As- Business Case and Business Savvy and
Engagement Is/To-be Gap Value Creation Insights
Business Model Roadmap Creation Strategic Relationships Investment Strategies
Finance, ROI, Outcome

Consumption Model Measurement
Emerging Trends (Evolution, Disruption and Innovation)

Digital Capabilities ex: Social, Mobile, Analytics, Cloud + IoE + Programmability + Security)
Cisco Business Architecture Journey
Customer’s Customer Develop and Deploy and
Business Knowledge Verify Measure
Vision, strategy, Business needs and Verify business needs, goals and Deploy/Iterate business
priorities, capabilities opportunities priorities capabilities
Business Research and Customer

Focus Analyse Commit
Agree-scope. Analyse Prepare and present business
business case. Commit to proceed
Business Architecture Method
Business Model Canvas Empathy Map Journey Map Digital Business Roadmap Storyboards
Business Architect
Business Architecture Engagement BA Method
Tools
Technology Journey
Digital Strategy Technical Solutions
Digital capabilities redefine Key underlying technology
the business model components that form part of the
underlying capability
Digital Digital Technical

Outcomes
Strategy Capabilities Solutions
Outcomes
Digital Capabilities
A measurable result
Solutions informed by social, of the deployment of
mobile, data and analytics, a solution
cloud and IoT
Business Journey
Vision Priorities Outcomes
Future target to inspire and The relative importance of A measurable result
give direction for the business initiatives to enable the of an activity or
business to transition from the process within the
organisation
current to the desired target business
Business Business Business Business Outcome

Vision Strategy Priorities Capabilities Measurement
Strategy Capabilities
The long-term plan for how The people, process, and
the business will achieve its technology that align to
target state/vision and business priorities to support
desired goal business outcomes
Alignment through Business Architecture
Business Journey
Business Business Business Business Outcome
Vision Strategy Priorities Capabilities Measurement
Technology Journey
Digital Digital Technical
Outcomes
Strategy Capabilities Solutions
Understanding the
Business
Forces Acting on Business Model
Key
Trends
Industry Forces Market Forces
Macro-
Economic
Forces
Source: Business Models Inc #CLMEL BRKCRT-1905 © 2019 Cisco and/or its affiliates. All rights reserved. Cisco Public 19
PESTLE Analysis
Identifying Internal and External Drivers
Political
Environmental Economic
PESTLE
Legal Social
Technology
PESTLE Analysis Use in conjunction
with SWOT or Porter
Models
Identifying Internal and External Drivers
Political
Elections, BREXIT
PoliticalPolicy,
Government
Tax Reforms
Environmental Economic
Corporate Social Interest Rates, FX,
Environmental
Responsibility, Economic
Trade Wars,
Circular Economy Recession
PESTLE
Legal Social
Urbanisation,
GDPR, Sovereign-Self, Social
Litigation,Legal
Gov Inquiries Demographics, Culture
Technology
IoT, Data, Blockchain, AI,
Technology
Analytics, Cloud
Quiz
Key Customer
Activities
Relationship
Key Value Customer
Partners Segments
Proposition
Key
Resources Channels
Cost Structure Revenue Streams
Source: Business Model Generation #CLMEL BRKCRT-1905 © 2019 Cisco and/or its affiliates. All rights reserved. Cisco Public 22
Business Model
How does the Organisation ‘Capture, Create and Deliver value?”
Key Activities Customer Relationship
Key Partners Key Resources Value Proposition Channels Customer Segments
Cost Structure Revenue Streams
How does the Current Business Model ‘Capture, Create,
and Deliver Value?’
Source: Business Model Generation

Example
Connect with
Platform Same-Side
Content Partners friends and Internet Users
Development Network Effects
family
Data Centre Reach, social Cross-Side Advisors and

Advertisers
Operations context Network Effects Marketers
Personalised Website, Mobile

Platform Developers
experiences Apps
Technology Identity,
APIs
Infrastructure Payments
Data Centre Marketing and Research and Subscription Cross Platform

Ad Revenue
Costs Sales Development Revenue Licensing
Example: Innovation Hypothesis Design thinking and
Lean Startup
methodologies are
useful for business
innovation
Desirability
(Human Centred)
Innovation
Sweet Spot
Feasibility Viability
Source: IDEO, Design Thinking
Using a BMC to Test Innovation Hypothesis
Feasibility Desirability
Viability
Source: Business Model Generation + IDEO
Verify business, needs,
priorities and capabilities
Business capabilities
What is a Business Capability? can be described in

hierarchical levels
People
Process
Technology
The people, process, and tools/technology that align to business priorities enable business
outcomes
Business Capability Examples
People • Real time view into purchasing, inventory

Process
and sales
Technology
• Customer in store experience linger time

analytics
• Agile product development process
Business Capabilities Enable Business Outcomes
Business Capability Examples
People A Business Capability is NOT:

Process
Technology
• Wi-Fi
• Video
• UCS
• Switch
Business Capabilities Enable Business Outcomes
What is a Business Outcome? Business outcomes
may align to KPI
A measurable result of an activity or process within the business
Business Outcome Examples
• Increase same day of order shipments by

20% by Q1
• Increase endcap impulse purchases by 10%
by Q2
• Accelerate new product time to market by
25% by Q3
A measurable result of an activity or process within the business
Defining a Business Outcome
S M A R T
Realistic/
Specific Measurable Attainable Timebound
Relevant
Business Outcome
Priorities and
Aligning Capabilities to Business Strategy capabilities may be

hierarchical. Align at
the right level
Business
Vision
Business
Strategy
Business Business Business

Priorities Priorities Priorities
Capabilities Capabilities Capabilities
Outcomes and Outcomes and Outcomes and
Measurement Measurement Measurement
Example
Business
Enhance the Customer Experience
Priorities
Business Customer sentiment

Digital channel servicing
Capabilities analysis
Call Volume, First call resolution,

Response time by channel Net promoter score,
CSAT by channel
Outcomes and
Measurement Decrease customer
wait time and call volume Increase customer
by 10% by 2020 satisfaction by 10% by 2021
Example: Strategy Value Map
Business
Vision
Business
Priorities
Business
Capabilities
Digital Business Roadmap Strategy Value Map
Map Capabilities to Solutions
Digital Business Roadmap

Capabilities Enabled By Technology Solutions
Preparing and Presenting
the Business Case
Business Case Dimensions
• ROI/TCO Analysis focuses only on Revenue
returns and outlays. A business
case is broader - a superset of
ROI/TCO analysis
ROI/TCO
• Value Drivers should be explored Quantified
across a number of dimensions ‘Financial Model’
• Whilst ‘hard’ ROI models will focus
more on cashflow returns, the
‘non-quantified’ benefits should Risk
Costs
also be included in the business Experience
case Currency and Capacity
Flexibility/Future Proof
Compatibility Business Case

Time to market
Skills Development
Non Quantified
Identifying Value Drivers and Metrics (KPIs)
Benefits Tree Business Capabilities Value Drivers Metrics Impacted Value
Enabled
• Average cost per claim
Decrease fraudulent claims
• Recovery rate per FTE XxYxZ=$
and increase payout accuracy
Automated • Claim denial rate
insurance claims
process • Average time to settle
Enable higher automation of
• Cost per claim XxYxZ=$
claims processing (FNOL)
• Cost per FTE
• Subrogation referral rate

Improve Subrogation XxYxZ=$
Insurance Benefits • Subrogation recovery cost
Processes
Case for Solution: • Recovery per claim
‘IoT Vehicle Claims Analytics
Telemetry
Underwriting and Actuarial • Incurred claims ratio
XxYxZ=$
Accuracy • Profitability
Claim anywhere-
Mobile Claims • Net Promoter Score
Reduce customer friction May be Non
process • Churn and retention rates
Improve Customer Experience quantifiable
• Policy growth
Building the Financial Model Third party analyst
reports with prebuilt
economic analysis can
be used
Inputs Model Logic Outputs
Current State
Costs Risks Future State Low Range
Core Logic Future State High
Revenue Capture Rate
Assumptions, Proxies Payback Periods
Quantities Growth Rate etc.
Sensitivity Analysis Cashflows, NPV,
Frequency
TVOM, etc.
“All models are wrong, but some are useful”

- Box, George E.P; Norman R. Draper (1987). Empirical Model Building and Response Surfaces
Communications Skills
> 60%
“Over 60% of Enterprise Architects, of all levels, feel not confident in

communicating the value of their EA initiatives.”
- Gartner: Storytelling for Enterprise Architecture: How to Influence and Persuade Leaders of EA Value in Decision Making
The Shape of Great Stories
The most suspenseful part of the plot

– the turning point.
Climax
Major events, complications or Reversal - Unravel the conflict and

frustrations that add suspense to the lead to resolution
plot on the lead to the climax
Background information of Resolution: tying up of loose

the plot ends
Exposition Denouement
Freytag’s
Freytag’s Pyramid
Pyramid
The Shape of Great Stories
Hero’s Journey Minto, SCQ-A McKinsey Mandel SCIPAB
The shape of a story matters: All frameworks follow a similar shape
SCIPAB
Situation Complication Implication
Climax
CONTEXT
Exposition
Position Action Benefit

SOLUTION
Denouement
SCIPAB is a registered trademark of Mandel Communications
Strategic Storytelling Example
SITUATION: ACME Corp is COMPLICATION: New IMPLICATION: Failure to

a leader in efficient market entrants with optimise business
logistics, supported by a optimised processes are processes will result in
world class IT capability offering faster, lower cost market share and revenue
services loss
POSITION: Integration of ACTION: Deploy in- BENEFIT: Deployment in

delivery fleet with CRM vehicle IoT similar customers has
and ordering systems will instrumentation by Q2 yielded a 20% reduction in
address 3 of 5 identified 2019 and develop IT/OT delivery time and 10%
customer priorities security controls improvement in NPS
SCIPAB is a registered trademark of Mandel Communications
Recap
Recap: What we have covered today!
Understood the business Explored forces acting on business Aligned to strategy and priorities
Defined capabilities and solutions Analysed the business value Presented our case
People
Process
Technology
In Conclusion
In Conclusion
Business Architecture Curriculum and Certifications
Class Certification
Mastering The Cisco Business Cisco Business Architecture

Architecture Discipline (DTBAD) Practitioner Business
Architecture
Practitioner
Applying Cisco Business Cisco Business Architecture
Architecture Techniques (DTBAS) Specialist Business Architecture
Specialist
Adopting The Cisco Business Cisco Business Architecture

Business Architecture
Architecture Approach (DTBAA) Analyst Associate
Q&A
#CLMEL
Continue
your Cisco
Demos in
Labs Meet The
Expert
Related
sessions
education the World
of
Solutions
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#CLMEL

Broaden Your Technical

Brian Jackson, Business Architect

The nature of the CIO’s job has changed from the

Work with Align

• Cisco Business Architect Program

Understand the Business Understand Technology

Bridge Gap between Define Business Align Budget to Business

Business Model Roadmap Creation Strategic Relationships Investment Strategies

Finance, ROI, Outcome

Emerging Trends (Evolution, Disruption and Innovation)

Business Research and Customer

Digital Digital Technical

Business Business Business Business Outcome

Industry Forces Market Forces

Identifying Internal and External Drivers

Cost Structure Revenue Streams

Key Activities Customer Relationship

Key Partners Key Resources Value Proposition Channels Customer Segments

Cost Structure Revenue Streams

Source: Business Model Generation

Data Centre Reach, social Cross-Side Advisors and

Personalised Website, Mobile

Data Centre Marketing and Research and Subscription Cross Platform

Source: IDEO, Design Thinking

What is a Business Capability? can be described in

People • Real time view into purchasing, inventory

• Customer in store experience linger time

Business Capabilities Enable Business Outcomes

People A Business Capability is NOT:

Business Capabilities Enable Business Outcomes

A measurable result of an activity or process within the business

• Increase same day of order shipments by

A measurable result of an activity or process within the business

Aligning Capabilities to Business Strategy capabilities may be

Business Business Business

Business Customer sentiment

Call Volume, First call resolution,

Digital Business Roadmap Strategy Value Map

Digital Business Roadmap

Compatibility Business Case

• Subrogation referral rate

Inputs Model Logic Outputs

“All models are wrong, but some are useful”

“Over 60% of Enterprise Architects, of all levels, feel not confident in

The most suspenseful part of the plot

Major events, complications or Reversal - Unravel the conflict and

Background information of Resolution: tying up of loose

The shape of a story matters: All frameworks follow a similar shape

Position Action Benefit

SCIPAB is a registered trademark of Mandel Communications

SITUATION: ACME Corp is COMPLICATION: New IMPLICATION: Failure to

POSITION: Integration of ACTION: Deploy in- BENEFIT: Deployment in

SCIPAB is a registered trademark of Mandel Communications

Mastering The Cisco Business Cisco Business Architecture

Adopting The Cisco Business Cisco Business Architecture

• Give us your feedback and receive a

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