Business Capability Model ‐ A Starting Point for
Enterprise Architecture
email: hmorgan@toronto.ca
Head – Enterprise Architecture City of Toronto, Ontario Canada
Salah Sharieh
email: Salah@ivedha.com SAP Lead – iVedha
Huw Morgan
Agenda
Brain Teasers
Background
About City of Toronto
About Architecture in the City of Toronto
Business Capabilities Model
Business Capability Model – City of Toronto
Case Study – City of Toronto
Q & A
Brain Teasers
H I J K L M N O
Alphabets: Questions
H O
H I J K L M N O
H 2 O
Alphabets: Answer
Roman Numerals
How do you make
this equal 6?
Numbers: Question
S
Numbers: Answer
Brain Teasers
Provide Context
About City of Toronto
About Architecture in the City of Toronto
Business Capabilities Model
Business Capability Model – City of Toronto
Case Study – City of Toronto
Q & A
Facts about the City of Toronto
¾ Canada's largest city and sixth largest
government
¾ Population: 2.7M (5.1M GTA)
¾ 40 Divisions
¾ $9.4B Operating Budget & 2012-2021
Capital Budget of $14.8 billion
¾ 37,000 Employees
¾ ~150 Services (+500 Sub Services)
Brain Teasers
Background
About City of Toronto
Business Capability Model Explained
Business Capability Model – City of Toronto
Case Study – City of Toronto
Q & A
1. Capabilities Provide Context
Key Points
Using the Business Capability Model to Create the Enterprise Architecture
2. Represents the next level of
detail beneath the business
strategy
3. Establishes an Environment of
Co-creation
What is a Capability Model
• A structured model to capture the core elements of an
organization
• Describes what the business does (or needs to do) in order to
fulfill its objectives and responsibilities
Why a Capability Model
The organization needs a map to see what it does
Puts capabilities in context of the ecosystem ‐ Connections to
other Capabilities
Puts everyone on the same page
Focus on the WHAT‐ Not the HOW
How it is Used
For investment planning
As the source to identify the business purpose of all Business
Applications in the IT Portfolio
Business
capability
map
Logical
architecture
Physical
architecture
The logical architecture shows
the system components needed
to enable the capability. The
goal is to create shared or re-
useable components.
The plan for operational
production implementation of
solutions (e.g., how many of
everything, physical
configurations, etc.)
The business architecture designs
the overall structure of solutions that
implement and embody a given
business capability. At the lowest
level they are represented as
business processes
Business capabilities represent
an organization's business,
independent of organization
structure, processes, or people.
The Capability Model is the
City’s anchor model.
Business
architectu
FINANCIAL MANAGEMENT Financial Planning and
re
Forecasting & BudgetingMonitoring
Point of Sale Tax Billing & Collection Revenue
Investment/Debt Mgmt.
Invoice Processing Fee Collection Accounts Payable
Financial Accounting General Ledger
Controlling
Business
Architecture
Business
Domain
Capability
Group
Capabiliites
The City of Toronto business
capability model
A three tiered hierarchical model
made up of Business Domains,
Capability Groups and Capabilities.
The capabilities are logically
grouped together and organized so
they can easily be found and
understood.
It has been structured so as to be
intuitive and manageable.
SAP HCM SAP FI
SAP PM
HUMAN RESOUR CE MANAGEMEN T
Business
Capabilities
System
Capabilities Business
Domain
Workforce Management Staff Registration & Enrolment
Recruitment Time Recording & Admin.
Salary Management
Employee Performance Mgmt.
Staff Skills Development Benefits Tracking Personnel Records Mgmt.
Payroll Processing Employee Self Service Scheduling and Shift Planning
Attendance Monitoring Time Evaluation
SAP HCM Module
(Components) Capabilities
Service delivery
•Employee portal
•Manager portal
TALENT MANAGEMENT
•Competency management
•Recruitment
•Employee performance management
•Talent assessment and review
•Employee development
•Enterprise learning management
•Succession management
•Compensation management
•Talent management analytics
Business Scenarios
Benefits Management
Provides a flexible framework for creating and managing tailor-made benefits packages. Versatile configuration options let you offer a diverse range of benefits to accommodate even complex plan definitions. There is powerful support for all administrative benefits-related tasks, and standard and flexible reports let you summarize and analyze benefits data.
Support for self-services enables your employees to view and change their benefit selections online.
SAP Product Available
SAP Product Available with Future Releases Future Focus
Partner Product Available
Partner Product Available with Future Releases
Employee Administration
Offers advanced features for Employee Administration, e.g., Transfers or Employee Status Change. Provides the central repository for employee data in SAP ERP HCM; data stored here is used throughout SAP ERP HCM. Integrates the information in Personnel Administration fully with other SAP business applications, especially Financials and Logistics
Organizational Management
Lets users easily manage and communicate information about organizational structures and policies. Provides tools for constructing and maintaining an accurate model of the organization and gives users unmatched insight into the staff and structural environment of the company. Uses the Organizational Management capabilities of SAP ERP HCM to drive workflow and support activities in personnel cost planning, compensation management, employee development and recruitment, SAP CRM, and SAP SEM. Delivers Organizational Development capabilities including Organizational Planning & Simulation, Organizational Development, Activity Analysis, and Job Analysis. Provides the ability to simulate, analyze, and experiment with proposed organizational changes and previous organizational models on a centralized or decentralized basis.
An additional organization management process - based on Duet - enables employees and managers to use the Microsoft Outlook Contacts interface access for up-to-date human resource information such as compensation, organizational structure, open positions and training opportunities. Employees can access their own human resource records from the SAP ERP application such as current address, job position information and payroll data. Access to specific information is managed and controlled to by the SAP standard security and authentication privileges.
Managers can view their team members’ information in greater detail, such as their compensation, letters of
recommendation and resumes. Managers can also use Duet’s analytics capabilities and contextual information, allowing them to drill into corporate human resource information such as average enterprise-wide compensation by job title.
Global Employment
Delivers capabilities necessary for managing international transfers and assignments. Included are global reporting and analytics, improving and aligning negotiation processes for international assignments, and supporting geographically dispersed users with up to the minute information.
Process Flow Diagram
Leave of Absence (LOA) Administration
Brain Teasers
Background
About City of Toronto
About Architecture in the City of Toronto
Business Capabilities Model
Business Capability Model – City of Toronto
Case Study - City of Toronto
Q & A
Case Study – Examples of How We Have Used the
Capability Model
Work Management
• Cities are big work management organizations
• Service Requests and Work Orders are the
vehicle for work origination
• Traditional approach has been to focus on
time entry
• Using a capability model we have provided
the business a context to build around
Budget/Financial Tracking
– Divisions are not doing activity or asset based costing (ABC)
– Work history is not used for budget preparation
` Management of Work
– Cannot benchmark work performance / cost
– Work Orders are not always associated with the Service Request if the work is
contracted
– Crews sometimes show up to the same site as another Division
• Might undo/redo work done by other Division
• Might create interference for other Division
Work Management Current State Challenges -
Examples
2
5
Business Capability Context
2
6
This pattern is a best practice
•Two major types of operational and recurring
work in the City are:
• Asset Maintenance Management (break/fix
and preventative maintenance)
• Service Delivery Operations (routine, daily
maintenance, service levels)
Work management includes both operational and
recurring work and includes the following common
steps:
Primary Capabilities
Service Delivery Operation
– Operations Work Identification
– Operations Planning/Scheduling
– Operations Work Reporting
– Work Performance Monitoring
Asset Maintenance Management
– Maintenance Work Identification
– Maintenance Planning/Scheduling
– Maintenance Work Reporting
– Asset Performance Monitoring
Mapping to Business Capability Model
2
8
The scope of the work management system logical reference architecture is Work Management
functionality in the context of both Service Delivery and Asset Maintenance.
Reference Architecture Scope
2
9
Processes from
the approved
Work
Management
Business
Reference
Architecture
IT Portfolio Alignment
30
Financial Management
113
Human Resource Management
107
Information Management 325
Land and Property Stewardship 99
Physical Asset Management 80
Process Management 13
Program and Service Management
24 Relationship Management
200 Risk Management
46 Rules Management
20
Service Delivery Management 249
Supply Chain & Inventory Management
55
