change is expensive - practical business...

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CHANGE IS EXPENSIVEby

Thushan Kumaraswamy

Practical Business Design

http://experience.sap.com/designservices/

http://experience.sap.com/designservices/scenes


Amy, 35

Business Architect

Lisa, 55

COO

Characters Page 02

James, 38

IT Manager

CHANGE IS EXPENSIVE




CHANGE IS EXPENSIVE

Chapter 1: What’s the problem?

Lisa, 55

COO

James, 38

IT Manager




It is Monday morning. Lisa, the Chief Operating Officer (COO) of CityStock

Wealth Management Ltd, is reviewing the company’s change budget

forecasts for the upcoming quarter. Let’s take a look inside her office…

Scene 1: Reviewing the Numbers Main character: Lisa | Page 04

CHANGE IS EXPENSIVE / Chapter 1

My change budget keeps getting bigger and bigger. What is

going on here?




Lisa finds James, the IT Manager, in the coffee room. She wants to see if

James knows what is happening with the change budget…

Scene 2: Discovering the Problem Main character: James | Page 05


Hi James. I’ve been going over

the change budget forecast.

It’s big!

Hey Lisa. I know, right? We keep

having to change the same systems

over and over.

Uh oh. Here’sLisa. She doesn’tlook too happy.




Lisa and James head to a conference room to work out why IT keep having

to change the same systems all the time…

Scene 3: Uncovering the Cause Main character: Lisa | Page 06


IT ROADMAP

We keep getting requests from the

business to change and we need extra

resources to keep up.

2017 2018 2019

I see now. It looks like we are not planning

our changes well enough. How can we

improve this?




CHANGE IS EXPENSIVE

Chapter 2: What can we do?

Lisa, 55

COO

Amy, 35

Business Architect




Lisa goes to see Amy, the Business Architect. Lisa wants to know if Amy

can work with the business and the IT team to better plan the changes the

business want to make…

Scene 4: Using Practical Business Design Main character: Amy | Page 08


Hi Amy. Do you have any ideas

about our change planning? It feelslike our budget is

out of control.

We could use Practical Business Design to help. It’s a simple method for describing a business to manage change better.

Have a look, Lisa.

Looks interesting. Let’s try it and see.




Amy spends a few weeks gathering information from the business and IT

about what the business wants to achieve, what the business does and

how it operates. She adds these to the Practical Business Design

Canvas…

Scene 5: Documenting the Business Main character: Amy | Page 09


I can use workshopsto get the detail ofwhat the businesswants and how it

works.

Provide wealth management services to UK clients

Reduce costs Increase revenue

Reduce client servicing costs by 10% by EOY 2018

Increase number of customers by 15% by June 2018

CityStock Wealth Management Ltd

Amy , Business Architect

Improve customer support manuals

Maintain regulatory compliance

Increase customer numbers

To be in the top three of wealth management providers in the UK

New customersupport platform

UK customers

Overseas customers with UK accounts

See

Think

Do

Care

EquityFixed

income

Tax

Financial planning

In-house development

Product dev

Marketing

Sales

Delivery

Customer support

Customer maintenance

Customer complaints

Operational cost

Number of customers

Customer loss rate

HR

IT

Risk

Finance

Maintain training manual after software releases Customer

support team

Front office

IT supportteam

Customer

Product

Market prices

MS Outlook

New customer support app

Manage initial contact from customer

Contact customer proactively

Provide timely customer support

June 2017 v1




Once Amy has completed the Practical Business Design Canvas, she can

validate the information with all the stakeholders (business and IT) ensuring

that everyone agrees with it as a baseline…

Scene 6: Validating the Architecture Main character: Amy |


From all theinformation you have provided, I

have been able to link our business strategy with our

change plans.

We can work out in advance how we will change our IT

systems, so we can consolidate

changes together.

This is impressive. I can finally see all of the business on a

single page and how it links together.

Now we can all see the proposed impacts

to our IT much earlier, we can see where there is an overlap between

requirements.




CHANGE IS EXPENSIVE

Chapter 3: How will we work?

Lisa, 55

COO

James, 38

IT Manager

Amy, 35

Business Architect




A few months later, the business have come up with some new

requirements. James wants to understand what those requirements mean

and their impact on the IT systems…

Scene 7: Change is Incoming Main character: James |


We’ve been asked to change this

system, but I’m not sure of the full implications.

Amy, I’ve got this change proposal from the

business. Can you help me understand the

impact across the whole organisation please?

No problem, James. We can use the Practical

Business Design Canvas to see what is impacted

by the proposed changes to the system.




Amy and James work together using the Practical Business Design Canvas

to understand the scope of the change on the customers, products and

business capabilities and the impact on the operating model processes,

people, data and technology…

Scene 8: Analysing the Impact Main character: Amy |


Right. Since we linked the ongoing

projects to the impacts on the

operating model, we can see what else is changing

that system.

Great. I can see this other project

is also making changes to this

system. Maybe we can get them to

include these new requirements?




Lisa is checking the new change budget forecast and is pleased with the

results that Amy and James have been able to deliver…

Scene 9: Checking the Results Main character: Lisa |


Since James and Amy have worked

together, we’ve been able to reduce our change budget.

James, Amy, well done! I’m so pleased we can

better plan our changes because we can describe

our business and strategy so clearly.

Thanks, Lisa. I’m much happier

now that we are getting fewer

change requests through.

Yes. It was definitely worth using Practical Business Design to

help us.



change is expensive - practical business...

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