1. An example of how to develop a dynamic business model
(Cloud Computing Services for Government)

2. The ‘Dynamic Business Model’ is defined here as the model of the life cycle relationships among entities that participate in the execution of a strategically important transformation
This model is developed to answer the question in large transformations: what should be the allocation of authorities and responsibilities, and what needs to be controlled by governance and architectural design (as opposed to what needs to be controlled by localised design decisions)
The model, through identifying life cycle relationships, can also be used to develop the activity map of the Plan to implement the envisioned future (from the model one can read the scope of activities that need to be performed)
A subsequent planning task would be to develop an activity model (with flow of deliverables) as the basis of a Roadmap development
However, to arrive at a Roadmap, one has to decide how the activities will be performed in time. This will describe the stages of the transformation, with milestones characterised by the qualitative and quantitative description of the state of the capability at that milestone. Parallel life history diagrams (a kind of GANTT chart) can be used to represent the stages of transformation.
Knowing each activity and aggregate of activities in every stage is a prerequisite of being able to cost the transformation (as part of the Plan)

3. The following example is a demonstration of how a dynamic business model can be developed as part of the planning process
The example used is the Australian Federal Government’s Cloud Computing Strategy
REFERENCES
Australian Government Cloud Computing Strategy:
Australian Government Cloud Computing Policy 2.0 (May 2013):

4. Cloud Services Provider(s)
Government lead agencies
Government
Users
Mandate Cloudification as a principle across agencies
Envision ‘Services in the Cloud’ (including architectural design principles)
IT Services for Government
Envision new Service Provision (including principles and functions to be provided by vendors)
Management
Provide providers’ Product / Service plans
Management, Architecture & Technical Consulting Services
Cloud Services Provider(s)

5. Cloud Services Provider(s)
Government lead agencies
Government
Users
Mandate Cloudification as a principle across agencies
Envision ‘Services in the Cloud’ (including architectural design principles)
IT Services for Government
Envision new Service Provision (including principles and functions to be provided by vendors)
Management
Who will be responsible for these specification, design and implementation tasks?
How do we ensure that the vision is implemented, goals are achieved?
The specified outcomes must be realised within time and budget,, and the desired benefits must be achieved?
We must create a structure for this strategic plan
Provide providers’ Product / Service plans
Management, Architecture & Technical Consulting Services
Cloud Services Provider(s)

6. Cloud Services Provider(s)
Government lead agencies
Government
Users
Mandate Cloudification as a principle across agencies
Envision ‘Services in the Cloud’ (including architectural design principles)
Lead Agencies include
Department of Finance divisions and branches (AGIMO, GovCIO, etc)
Stakeholder Representative entities (such as NSCCC), and
Department of the Prime Minister & Cabinet
At this stage it would be possible to separately decompose the structure of how these agencies participate in the Cloud Computing strategy formation and implementation, but we know from experience that such large transformations require the establishment of a programme, that coordinates the realisation of the vision.
It is then through the processes of this programme’s management that the lead agencies could participate in the definition of strategic goals, the envisioned benefits, and confirm through governance that the benefits have been achieved
IT Services for Government
Envision new Service Provision (including principles and functions to be provided by vendors)
Management
Provide providers’ Product / Service plans
Management, Architecture & Technical Consulting Services
Cloud Services Provider(s)

7. Cloud Services Provider(s)
Government lead agencies
Government
Users
Mandate Cloudification as a principle across agencies
Design and Implement changes in End User environment
Define & Create Cloud Comp
Programme
Participate in
Programme
Governance
Cloud Computing Programme
Participate in
Project
Governance
Participate in
Programme
Governance
IT Services for Government
Envision ‘Services in the Cloud’ (including architectural design principles)
Management
Define & Create
CC Projects
Architecture
Design and Implement
IT Services for
Government
Cloud Computing
Projects
Participate in
Project
Governance
Management, Architecture & Technical Consulting Services
Envision new Service Provision (including principles and functions to be provided by vendors)
Cloud Services Provider(s)
Technical
Stakeholder
Participation in Programme

8. Cloud Services Provider(s)
When the Programme leader is asked to create a Plan, the various strategic analyses and the observation of architectural principles, as defined in the Programme’s mandate, require that the Program should keep an overall architecture of IT Services under its control (instead of allowing various projects to make different architectural choices.
In other words, a high level architecture of the IT Services for Government needs to be elaborated
Government lead agencies
Government
Users
Mandate Cloudification as a principle across agencies
Design and Implement changes in End User environment
Define & Create Cloud Comp
Programme
Participate in
Programme
Governance
Cloud Computing Programme
Participate in
Project
Governance
Participate in
Programme
Governance
IT Services for Government
Envision ‘Services in the Cloud’ (including architectural design principles)
Management
Define & Create
CC Projects
Architecture
Design and Implement
IT Services for
Government
Cloud Computing
Projects
Participate in
Project
Governance
Management, Architecture & Technical Consulting Services
Envision new Service Provision (including principles and functions to be provided by vendors)
Cloud Services Provider(s)
Technical
Stakeholder
Participation in Programme

9. Cloud Services Provider(s)
Government lead agencies
Government
Users
Mandate Cloudification as a principle across agencies
Design and Implement changes in End User environment
Define & Create Cloud Comp
Programme
Participate in
Programme
Governance
Cloud Computing Programme
Participate in
Project
Governance
IT Services
for Government
Software as a Service
(SaaS)
Participate in
Programme
Governance
Envision ‘Services Structure in the Cloud’ (including architectural design principles)
Management
Information
Services
Define & Create
CC Projects
Architecture
Cloud Computing
Projects
Participate in
Project
Governance
Data Centre
& Infrastructure in the Cloud Services
Management, Architecture & Technical Consulting Services
Envision new Service Provision (including principles and functions to be provided by vendors)
Cloud Services Provider(s)
Technical
Stakeholder
Participation in Programme

10. Cloud Services Provider(s)
Government lead agencies
Government
Users
Design and Implement changes in End User environment
Mandate Cloudification as a principle across agencies
Define & Create Cloud Comp
Programme
Participate in
Programme
Governance
IT Services
for Government
Software as a Service
(SaaS)
Cloud Computing Programme
Participate in
Project
Governance
Participate in
Programme
Governance
Envision ‘Services Structure in the Cloud’ (including architectural design principles)
Management
Information
Services
Define & Create
CC Projects
Architecture
Cloud Computing
Projects
Participate in
Project
Governance
Data Centre
& Infrastructure in the Cloud Services
Management, Architecture & Technical Consulting Services
Design and Implement
Envision new Service Provision (including principles and functions to be provided by vendors)
Cloud Services Provider(s)
Technical
Stakeholder
Participation in Programme

11. Cloud Services Provider(s)
Government lead agencies
Government
Users
Design and Implement changes in End User environment
Mandate Cloudification as a principle across agencies
Define & Create Cloud Comp
Programme
Participate in
Programme
Governance
IT Services
for Government
Software as a Service
(SaaS)
Cloud Computing Programme
Participate in
Project
Governance
Participate in
Programme
Governance
Envision ‘Services Structure in the Cloud’ (including architectural design principles)
Management
Information
Services
Define & Create
CC Projects
Architecture
Cloud Computing
Projects
Participate in
Project
Governance
Data Centre
& Infrastructure in the Cloud Services
Management, Architecture & Technical Consulting Services
Design and Implement
Envision new Service Provision (including principles and functions to be provided by vendors)
Cloud Services Provider(s)
Technical
Stakeholder
Participation in Programme

12. At this stage we have a Dynamic Business Model of the Cloud Computing strategy implementation
This model is high level, aimed at the sponsors of the CC Programme, so that agreement of the road ahead can be achieved
This model now needs to be confirmed with the Lead Agencies, before going any further and using this in the planning process

13. The end