Business Architecture is a holistic framework for aligning an organization with its goals, and in turn, making it more competitive. It provides the necessary structure to create a digital transformation roadmap by defining how data, applications and people interact. In this article, we’ll discuss what business architecture is?
Business architecture is the blueprint of a company. It provides for clear strategic objectives by explaining how they can be translated into operations? It’s also an integral part of enterprise architecture because it gives vital business context to technological layers in order to operationalize strategy.
Definition of Business Architecture
BIZBOK® (Business Architecture Body of Knowledge) defines it as
A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands.from BIZBOK
Relationship with Strategy
Business Architecture connects Business strategy with the implementation/execution i.e. Business/IT change and thus enable an enterprise to handle multiple failure points that may occur between Strategy and Implementation.
Few failure points that may occur between Strategy and Implementation are as follows –
- Strategy incorrectly/insufficiently linked to operations.
- Required capabilities not properly comprehended/calculated/estimated.
- Desired benefits are not quantified and traced back to original goals.
- People in charge of planning are not accountable for delivery.
It handles such failure points in the below manner
- Building a clear picture of the goals, value drivers and corresponding conditions/capabilities that drive the strategy.
- Clearly coupling the strategy with operations by means of capabilities that include people, process, information and technology.
- Determining the resources needed by the capabilities and making sure that architecture provides oversight at the required levels.
In addition, business architecture enables improved decision making by reducing risk, increase employee engagement by setting work boundaries, increases agility and efficiency in execution of the initiative.
Below are some of the key initiatives carried out by enterprises whose success or failure depends largely on devising required business architecture –
- Mergers, Acquisitions, Joint-ventures and Divestiture
- Opening/Closing/Merging of business unit(s) or restructuring of any kind
- New product/service offering (self-developed or partially/fully outsourced)
- Upgrading systems working on legacy technology to latest suitable technology
- Compliance of new regulatory laws/rules/guidelines
- Customer-centric initiatives
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