Introducing The Activities of BTM

Developing and maintaining these models ”the current enterprise model, the enterprise scenario models, the final enterprise scenario model, and the updated enterprise model ”is the primary purpose of the activities of BTM, which are introduced here, but described in more detail in Ch. 5, 6, and 7:

- Business Model Definition helps companies capture and communicate business objectives

- Process Optimization helps define and streamline processes to support the business model

- Technology Automation helps to select applications and supporting systems to automate selected processes

Business Model Definition

During the first activity of BTM, business model definition, project teams analyze their current business and develop multiple scenarios that describe how technology might be used to improve it. First, they examine the current business model, a big picture that captures a snapshot of the business and communicates strategy, objectives, opportunities, and constraints. Next, they solicit input from relevant subject-matter experts to create a number of alternative business scenario models to accomplish their project's objectives. These scenarios, which form the basis for impact analysis, help to illustrate which aspects of the current business model might be impacted during the course of the project. (Typically, this is a small number, since most projects result in incremental changes to the business rather then a wholesale reinvention of how the company works.) Each of the business scenario models becomes the starting point for a complete enterprise scenario model (including process and technology scenario models developed during process optimization and technology automation) that describes the end-to-end enterprise architecture for the project. After one of the business scenario models has been implemented, it gets folded into an updated business model, which becomes the basis for future episodes of business model definition.

Process Optimization

Process optimization, the second activity of BTM, helps project teams define business processes to support the objectives outlined in each of the business scenario models, associate resources and requirements with individual activities, identify process inefficiencies and redundancies, and enforce standard processes across multiple business units. First, the project team decomposes their current activities into an as-is process model that describes how the enterprise behaves today. Next, they create process scenario models to support each scenario begun during business model definition. Since process optimization provides the link between business and technology, each scenario must take into account both processes that are already automated by existing resources, and processes that are good opportunities for future optimization projects. The team then performs a gap analysis between the current process model and each scenario to help generate specific requirements that drive technology automation later on. Once a final process scenario model has been selected for the current project, the team folds it back into an updated process model to make sure that it remains an up-to-date snapshot of how the company does business.

Technology Automation

During the final activity of BTM, technology automation, project teams identify applications and systems to support the activities selected for automation in each process scenario model; select vendors and implementation partners ; establish technology standards, and determine how to integrate the new systems with the company's existing technology architecture. First, the team examines the current technology model, which includes two types of information: software applications that automate business processes; and supporting systems ”including hardware, software, networks, and data ”that support applications. Next, the team identifies technology scenario models to support each of the scenarios developed during process optimization. They perform a gap analysis for each of these scenarios to determine what applications and systems need to be purchased, developed, or modified. Finally, after the project has settled on and implemented a final technology scenario, it is folded back into an updated technology model.

A System Not a Sequence

So far, we've scrupulously presented the activities of BTM as a series of sequential steps that companies can follow to achieve alignment in their IT projects. There is some merit to this view, since it makes sense to allow sound business objectives to lead the way and be followed by process innovation, and then finally, by technology automation. But, as is often the case, the real business environment isn't always so simple. There are times when the straightforward business-to-process-to-technology sequence breaks down, and changes made in any of these three areas can take the lead. Padron's example from Ch. 1 demonstrates the expediency of sticking to an out-of-the box software application rather than approving extensive modifications. Instead of following the specialized processes employees were used to, Padron allowed technology to lead, and made sure that process and business synced up to maintain alignment. In this sense, the activities of BTM are more of an interconnected system than a sequence: it isn't about doing A, then B, and then C, it's about making sure that all three work together, in concert, to guarantee that IT contributes to bottom-line business objectives.