by Daniel Lambert

The pace of innovation is increasing and affecting more and more how we are developing products/services and approaching clients. Disruptions are occurring at a quicker pace then ever, where the most acute organizations have no choice but to transform rapidly to a customer driven enterprise providing customer lifetime value, involving not just marketing, but all functions in an organization. Large corporations have several types of clients (personas) and none of them should experience the exact same customer journey when interfacing with any part of an organization. Product offerings and interface with clients need to be tweaked for each type of clients at regular intervals.

Modeling and sharing your Business Architecture is an excellent way to make sense of it all and make sure that strategic consistence occurs from the early awareness marketing stage to after sales delivery within every business units and departments of an organization. Through a financial service example, this article will show how Business Model Canvas, Customer Journey Mapping, Customer Value Mapping, Value Streams mapped for each type of persona where each Value Stream is linked to its enabling Business Capabilities can assist organizations in facing their business transformation to deliver a customer driven enterprise.

From a Seller Driven Enterprise Model to a Customer Driven Enterprise

As explained by Craig Martin [1], disruptions are occurring at a quicker pace then ever, where the most rigorous organizations have no choice but to transform rapidly from a seller driven enterprise model to customer centric enterprise and Customer Driven Enterprise providing Customer Lifetime Value as shown in Diagram 1 [2] below.

TSG-full

In a Customer Lifetime Value model, it’s clearly not just about marketing anymore. It requires more predictive insight data analysis, interactive & proactive services, individualized customer understanding using Personas, inter-enterprise bundles between business units and departments, integrated and seamless channels and the elimination of all functional organizational silos to become a customer outcome organization.

Enabling a Customer Driven Enterprise Using Business Architecture

Modeling and sharing your Business Architecture is an excellent way to make sense of it all and make sure that strategic consistence occurs from the early awareness marketing stage to after sales delivery within every business units and departments of an organization, therefore enabling a Customer Driven Enterprise providing customer lifetime value. To accomplish this goal, a business architect can use Business Model Canvas, Customer Journey Maps, Customer Value Maps, Value Streams mapped for each type of customers and where each Value Stream is linked to its enabling Business Capabilities.

Business Model Canvas

As I have mentioned in a previous article entitled “Bridging Business Model Canvas and Business Architecture” [3], a Business Model Canvas is a common method to build a business plan in very large and small companies because it is both structured and very simple to understand. The Business Model Canvas is also very Customer-Driven.

In a Business Model Canvas, each element of the Key Activities building block can be related to Business Capabilities of any Business Architecture model. The Key Resources/Assets building block can be crossed mapped to stakeholders (either type of employees and/or partners) or assets (like software applications, physical assets, etc.). The Value Propositions building block can be linked to stakeholders (either partners and/or customers), initiatives and business strategies. As for the other building blocks of the Business Model Canvas, they will usually be linked to various Partners/Customers/Personas (which are all stakeholders in a Business Architecture model).

Customer Journey Maps

A “Customer Experience (CX) is the product of an interaction between an organization and a customer over the duration of their relationship,” as described by Wikipedia [4]. The customer wants a maximum of value at a reasonable cost. The business organization wants to provide as much value as possible for each of its type of customers (persona) with each of its Product Line/Brand while maximizing its profits. A good Customer Experience means that the individual’s experience during all points of contact matches the individual’s expectations. A common way to describe and enhance a customer experience for a type of customer is to build a Customer Journey Map, as per Diagram 2 [5] below.

TSG-full

There are numerous ways to build a Customer Journey Map, but usually it will include various stages and/or moments (with a duration, a goal, expectations, and principles), a timeline (linear, non-linear, iterative, no time restriction), facets (types of data like activities, touchpoints, pain points, level of effort, perception maps, moods, etc.). In Diagram 2 above, goals, activities/touchpoints and opportunities are described for each stage of the customer journey per his point of view. Each Customer Journey Stage (or Moment) can be associated to a corresponding Value Stage in a Business Architecture Value Stream. Each Activity can be linked to a Value Item at a level below a Value Stage. Each Opportunity in a Customer Journey Map can be linked to a Business Capability that enables Value Stream/Stages within a Business Architecture Model.

Customer Value Maps

As described in this article entitled “Product Management Using Business Architecture” [6], a Customer Value Map enables an organization to understand how to plan and deliver a product (or a service) in line with the specificities of all customer personas, all involved business units, with all the necessary enabling Business Capabilities, which are all aligned to specific sets of business strategies.

A Customer Value Map includes two main sections, the customer profile and the value proposition profile. The customer profile for each type of customers or persona is made of needs, gains and pains. The Value Proposition profile is made of the covered products/services, benefits and features. Each need should ideally be covered by a product/service. Each gain and pain should be addressed or remediated by a benefit and/or a feature of one of the covered products/services. Once needs, gains and pains for each targeted customer type or persona are addressed, a product manager can start planning which Business Capabilities, Initiatives, Business Units, Information is required to execute and deliver properly the products and/or services of a Value Proposition for each targeted Persona.

TSG-full

Customer Value Streams

Value Streams are the best kept secret among the Business Architect’s arsenals. Not enough Business Architects use them. Yet, it is an ideal method to transform your business from a seller driven enterprise to a customer driven enterprise to provide customer lifetime value. The Diagram 3 [7] above, shows for example various important Value Streams that a Financial Services Institution will usually provide to its Customers. Each Value Stream are composed of several Value Stages, that each have one or several entry criteria and exit criteria. Each Value Stage is enabled by several Business Capabilities and is mapped by usually one Process, but sometimes 2 or even more. Finally, each Value Stage can be linked to Stages or Moments in a Customer Journey Map.

TSG-full

One Value Stream that is particularly fundamental to the growth and high performance of any competitive organization is the “Acquire Customer for a Product” Value Stream, as shown in Diagram 4 above. It is associated to the Funnel or Pipeline within most Customer Relationship Management software applications. They are related to opportunities, a percentage of which will close once an Acquired Customer of a Financial Institution, for example, “Commits to a Product” or a Service (Value Stage 2.3 in Diagram 4). Yet, this Value Stream is not over. The Financial Institution must continue to provide value to its newly acquired customer by allowing him/her to use, monitor, refine and review its newly acquired product. The Financial Institution will enable each of these Value Stages with the appropriate Business Capabilities, as shown in Diagram 5 below, to ensure that the churn rate is as low as possible.

TSG-full

At the first level of a Value Stage, the “Acquire Customer for a Product” Value Stream may not change much from one customer type (persona) to another. As for second-level Value Stage(s) and/or Value Item(s) link to a first-level Value Stage, they will certainly be differences from one customer type to another. The same is true of enabling Business Capabilities to a Value Stage, as shown in Diagram 5 above. Some enabling Business Capabilities may not be relevant to a type of customer and yet be very relevant to another. These divergences need to be discovered for each persona to optimize the value that the organization can provide to each type of customers. For example, a financial institution will not provide value to a Millennium customer (customer type 2) with the same Business Capabilities then for a Baby Boomer customer (customer type 1). TV and Radio Advertising, and a Newsletter maybe more appropriate to a Baby Boomer and irrelevant to a Millennium. Vice-versa, social media advertising and mobile access management maybe essential to a Millennium and of little importance to a Baby Boomer.

Conclusion

Large corporations have several types of clients (personas) and none of them should experience the exact same customer journey when interfacing with any part of an organization. Product offerings and Customer Interface need to be tweaked for each type of clients at regular intervals. Business Architecture modeling and publishing is an excellent way to make sure that strategic consistence occurs from the early awareness marketing stage to after sales delivery within every business units and departments of an organization. Business Model Canvas, Customer Journey Mapping, Customer Value Mapping, Value Streams mapped for each type of persona where each Value Stream is linked to its enabling Business Capabilities can assist organizations in facing their business transformation to deliver a customer driven enterprise providing customer lifetime value.

____________________________________________
[1] Here is Craig Martin’s LinkedIn Profile: https://www.linkedin.com/in/craigrmartin/
[2] Table extracted from Slide 25 of the Presentation entitled “Using Business Architecture to Enable Customer Experience and Digital Strategy” made by Craig Martin published on Feb 23, 2014.
[3] This article written by Daniel Lambert has been published the first time on LinkedIn Pulse on September 20, 2016.
[4] Here is Wikipedia’s description of “Customer Experience”: https://en.wikipedia.org/wiki/Customer_experience.
[5] Diagram 2 is inspired from this article entitled “5 Essential Components of Effective Customer Journey Maps” written by By Kathleen Hoski and Phil Goddard on tandemseven.com. Creating Journey Maps similar to Diagram 2 will be possible with IRIS Business Architect release 2.4.3.
[6] This article written by Daniel Lambert has been published on LinkedIn Pulse on January 24, 2017.
[7] Most of the value streams mentioned in Diagram 3 are listed with details in Section 8.1 of the BIZBOK® Guide version 5.5 from page 540 to page 559.