In this blog post, I will try and answer the question – What is Business Architecture? Project Managers and Business Analysts should understand this term.
Business Architecture, in simple words, refers to the blueprint of business. It pertains to giving strategic objectives of an enterprise enhanced clarity by clearly explaining how they can translate into operations. It is a very integral part of Enterprise Architecture which provides vital business context to the technological downstream layers with an aim to operationalize business strategy.
Definition of Business Architecture
BIZBOK® (Business Architecture Body of Knowledge) defines Business Architecture as
A blueprint of the enterprise that provides a common understanding of the organisation and is used to align strategic objectives and tactical demands.from BIZBOK
Association with Business 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
Techcanvass offers IT certification courses for professionals. We are an IIBA endorsed education provider (EEP), iSQI ATP (for Certified Agile Business Analyst Training) as well as Agile Testing alliance partner for CP-SAT certification training in Selenium.
I have authored the following book on BA interview questions and answers with Scenario based questions. You can buy the kindle edition from Amazon.