agility matrix - expanded!

The Agility Matrix,

Expanded!Clayton CostaClayton Costa

@[email protected]/in/claytoncosta/www.linkedin.com/in/claytoncosta/

What’s the point? Enterprise IT worst enemy is

complexity! And there is no silver bullet for it…

One side-effect of IT complexity is that as it grows, it demands so much attention, that one can easily lose focus on the core business

The Agility Matrix is a simple, yet powerful, reference framework to keep your enterprise IT portfolio of solutions aligned to the business needs…

whenever business agility matters!

Background

This initiative started as a way to justify the investment in BPMS solutionsOn a second though, it evolved to a more comprehensive framework, for any agile process automation solution

Now, it is time to update it and expand the concept to Decision Support Systems (DSS) – including big data initiatives and “Agile BI”

From the basis

My initial axiom is (very) simple:My initial axiom is (very) simple:

Every single company Every single company is made of business is made of business processes. processes.

Add to the context that…

Every company has:Every company has:Business process automation solutions in place: ERP, Business process automation solutions in place: ERP,

CRM, email, spreadsheets…CRM, email, spreadsheets…Process Optimization Initiatives: Six-Sigma, Kaizen, Process Optimization Initiatives: Six-Sigma, Kaizen,

LeanLeanRegulatory compliance (Regulatory compliance (process-awareprocess-aware by nature): SOX, by nature): SOX,

ISO9000 etc.ISO9000 etc.

Still, more than ever, AGILITY

matters!

So, let’s understand how business So, let’s understand how business process automation decisions process automation decisions

constraint – or enable – constraint – or enable – agilityagility

But, first, what’s agility?

““Business agility is the Business agility is the ability of a business to adapt ability of a business to adapt rapidly and cost efficiently rapidly and cost efficiently in response to changes in the in response to changes in the business environment.”business environment.”

Wikipedia

If that’s the case…Let’s understand how agility matters to my business processes, using a 2 by 2 matrix, comparing the volume and speed of the changes

The Agility Matrix

for Process AutomationLevel of uniqueness of a

business process, inside an industry or across the board

SpecificSpecificStandardStandard

StableStable

VolatileVolatile

Life Cycle of the business process, or “how often does it change?”

A Typical Process Portfolio

Make-Or-Buy decision


StableStable

VolatileVolatile

Tax Tax ManagementManagement

Accounting & Accounting & Financials Mgt.Financials Mgt.

Strategy Strategy DevelopmentDevelopment

Knowledge & IT Knowledge & IT Mgt.Mgt.

Sales & Sales & Marketing Marketing

Mgt.Mgt.

Manufacturing & Manufacturing & Services Services DeliveryDelivery

Customer Customer Services Mgt.Services Mgt.

Examples of processes from the APQC Reference Model

HR DevelopmentHR Development

Services & Products Services & Products DevelopmentDevelopment

Environment Environment Impact Mgt.Impact Mgt.

Hmm… Standard and never Hmm… Standard and never changes? Someone must changes? Someone must have a solution, already! I have a solution, already! I

want a Packaged App (ERP, want a Packaged App (ERP, CRM etc)!!!CRM etc)!!!


StableStable

VolatileVolatile


Accounting & Accounting & Financials Financials

Mgt.Mgt.




Mgt.Mgt.

Manufacturing Manufacturing & Services & Services

DeliveryDelivery

Customer Customer Services Services

Mgt.Mgt.


HR HR DevelopmentDevelopment

Services & Services & Products Products

DevelopmentDevelopment


Hmm… Always changing, Hmm… Always changing, but for all companies at the but for all companies at the same time? There has to be same time? There has to be

a subscription-based a subscription-based packaged application for packaged application for

this…this…


StableStable

VolatileVolatile



Mgt.Mgt.




Mgt.Mgt.


DeliveryDelivery


Mgt.Mgt.






Ops… ItOps… It’s a process that ’s a process that only runs on my company? only runs on my company? Let’s do some coding, once Let’s do some coding, once it’s not going to change any it’s not going to change any

time soon…time soon…


StableStable

VolatileVolatile



Mgt.Mgt.




Mgt.Mgt.


DeliveryDelivery


Mgt.Mgt.






Now what? These are ever Now what? These are ever changing processes, but still changing processes, but still very important. To make it very important. To make it

worse, we have partial worse, we have partial automation with packaged automation with packaged apps. This is the place to apps. This is the place to

use Agile Process use Agile Process Automation solutions!Automation solutions!

Agile Process Automation Solutions

Platform-based solutions, that provide faster time-to-solution and smaller TCO.

Typical examples are BPMS, CEP, 4GL, RAD etc.

Agile Process Automation, TODAY! Integrated with my

work stream Office automation apps Email & calendar Social networking Project Management

tools Business Applications

User-Friendly Engaging user

experience Gamification

Mobile Always-on/available Context-aware

(sensors)

Moving ahead…

My initial axiom is (too) simple:

Every single company is made of business Every single company is made of business processes. processes.

While true, a company is more than processes:

Humans make difference taking decisions Humans make difference taking decisions and adding creativity to the tasks, and adding creativity to the tasks, continuously improving the processes.continuously improving the processes.

So, companies are a sum of

People Processes Information

Common sense? But…

Consumerization of IT & Mobility made people smarter than ever, always connected and used with high-quality IT services – for personal and professional needs.

Processes are spread among

different classes of agility, with

ideal process automation tools for

each class. Agile processes gain

momentum as they have a bigger

potential to generate competitive advantage.

InformatiInformation (data) on (data) is not is not what it what it used to used to be…be…

Information used to be a scarce material

“Information Systems” would collect data about processes, as they run. Other data would come from different sources, like surveys and data providers.

And storage space used to be (very) expensive!

Once processed* it was ‘ready to consume’

Processed means: modeled, normalized, mined, extracted, explored, aggregated, stored, queried, analyzed, etc..

Nowadays information is abundant

M2M

Lo

g f

iles

And most of it is really disposable…

Digital data…

Is nothing but our footsteps along the digitized processes, Is nothing but our footsteps along the digitized processes, the impressions we left behind after performing tasks on the impressions we left behind after performing tasks on computerscomputers

As we digitize more processes, more data becomes availableAs we digitize more processes, more data becomes available Social media interactions: conversations, preferences, “likes”, rankingsSocial media interactions: conversations, preferences, “likes”, rankings Web navigation: almost literally “virtual footsteps”Web navigation: almost literally “virtual footsteps” Internet-of-Things (IoT) telemetry: data and events from home, cars, streets, Internet-of-Things (IoT) telemetry: data and events from home, cars, streets,

parks…parks… Mobile devices telemetry: geo-location, pressure, temperature, radio emissionsMobile devices telemetry: geo-location, pressure, temperature, radio emissions Wearables telemetry: heart ratio, activity, weight, mood…Wearables telemetry: heart ratio, activity, weight, mood…

Is nothing but our footsteps along the digitized processes, Is nothing but our footsteps along the digitized processes, the impressions we left behind after performing tasks on the impressions we left behind after performing tasks on computerscomputers

As we digitize more processes, more data becomes availableAs we digitize more processes, more data becomes available Social media interactions: conversations, preferences, “likes”, rankingsSocial media interactions: conversations, preferences, “likes”, rankings Web navigation: almost literally “virtual footsteps”Web navigation: almost literally “virtual footsteps” Internet-of-Things (IoT) telemetry: data and events from home, cars, streets, Internet-of-Things (IoT) telemetry: data and events from home, cars, streets,

parks…parks… Mobile devices telemetry: geo-location, pressure, temperature, radio emissionsMobile devices telemetry: geo-location, pressure, temperature, radio emissions Wearables telemetry: heart ratio, activity, weight, mood…Wearables telemetry: heart ratio, activity, weight, mood…

So?A new axiom: A new axiom:

Valuable information is the one Valuable information is the one that is actionable – drives a that is actionable – drives a decision! decision!

It can be:It can be: Structured or UnstructuredStructured or Unstructured Perennial or DisposablePerennial or Disposable ‘‘Normal’ or ‘Big’Normal’ or ‘Big’

A New World…• Mobile & Mobile &

Equipped Equipped [BYOD][BYOD]

• Short Short time/attention time/attention spanspan

• Information Information overflowoverflow

• Standard, Standard, agile & ad-hocagile & ad-hoc

• People & People & machine machine actionableactionable

• DistributedDistributed

• Structured Structured & & unstructureunstructuredd

• Perennial & Perennial & disposabledisposable

• AbundantAbundant

Requires new reference frameworks

Process AutomationDecision Support

Level of uniqueness of a decision support asset


StableStable

VolatileVolatile

Life Cycle of a decision support asset

The Agility Matrix

For Decision Support

Expands on the same idea to include Decision Support assets and requirements. e.g. reports, visualizations, scorecards and dashboards.

Expands on the same idea to include Decision Support assets and requirements. e.g. reports, visualizations, scorecards and dashboards.


StableStable

VolatileVolatile

Revenue Revenue ManagementManagement


Reporting (e.g. Reporting (e.g. Books Books

Closing)Closing)

Greenhouse Gas Greenhouse Gas ReportingReporting

ITSM ReportingITSM Reporting

Risk Risk AnalysisAnalysis

Operations Operations Performance Performance MeasurementMeasurement

Quality Quality ControlControl

Portfolio & Portfolio & Resources Resources

OptimizationOptimizationCorporate Corporate

GovernanceGovernanceCustomer Customer

Churn Churn AnalysisAnalysis

Example


If it is a standard asset, If it is a standard asset, there has to be a there has to be a ‘ready-to-‘ready-to-buy’ solution somewhere. buy’ solution somewhere. Typical solutions are ERP Typical solutions are ERP

reporting capabilities, reporting capabilities, ““ready-to-runready-to-run”” data marts data marts

and the traditional BI stack.and the traditional BI stack.


If it is a standard asset, but it If it is a standard asset, but it changes very often, I can changes very often, I can

expect higher maintenance expect higher maintenance costs. Many of the “new BI” costs. Many of the “new BI” vendors play on this field, vendors play on this field,

offering cloud-based offering cloud-based solutions and smaller TCO.solutions and smaller TCO.

If one asset is very specific If one asset is very specific to the way the company to the way the company

does business, then it has to does business, then it has to be “tailor-made”. Typically be “tailor-made”. Typically

there is a lot of manual data there is a lot of manual data collection and “massaging”.collection and “massaging”.

Finally, there are those Finally, there are those assets that are very specific, assets that are very specific,

but change very often but change very often according to the market according to the market conditions. Those assets conditions. Those assets need an Agile Decision need an Agile Decision

Support technology.Support technology.

Agile Decision Support

Key takeaways No silver bullet for Enterprise IT complexity, so…

BUY what’s readily available and solves your problems, but DO NOT CUSTOMIZE

BUILD what is UNIQUE to your company, but make it AGILE, from a BUSINESS stand point

Focus on quick time-to-solution, low TCO and easy maintenance

Keep a close eye on process and data integration

Leverage the cloud where it helps to minimize the complexity Prioritize the user experience

Make IT simple! ;-)

Use this Reference Framework to map your unique requirements

And remember…While there is no silver bullet for the monster of While there is no silver bullet for the monster of complexity …complexity …

There is no sin in having fun There is no sin in having fun trying to hunt it down ;-) trying to hunt it down ;-)

agility matrix - expanded!

Software

business processes

business environment

typical process portfoliomake

partial automation

whats agility

single company

agile bifrom

portfolio of solutions