P2-MODULE-3
P2-MODULE-3
“Business architecture represents holistic, multidimensional business views of capabilities, end-to-end value delivery,
information, and organizational structure; and the relationships among these business views and strategies, products,
policies, initiatives, and stakeholders.”
The Object Management Group (OMG) provides the definition of Business Architecture as:
“The structure of the enterprise in terms of its governance structure, business processes, and business information. In
defining the structure of the enterprise, business architecture considers customers, finances, and the ever-changing
market to align strategic goals and objectives with decisions regarding products and services; partners and suppliers;
organization; capabilities; and key initiatives.”
Business architecture provides a useful blueprint of the enterprise that provides a common understanding of the
organization and is used to align strategic objectives, tactical demands and improve performance.
Business architecture blueprints provides a common understanding and is used to align strategic objectives and tactical
demands and provides a variety of ways to view the business: Sharing perspective. Common terminology. Viewing
stakeholders. Value delivery.
Business architecture domains are business focal points used to establish formal abstractions needed to represent a
business.
1. Business Architecture framework
1.1 Artifacts of business architecture: capability map; value stream; organization map; information concepts
model; value network.
What are the elements of business architecture? There are main core elements of business architecture include:
Why: A business capability map is a tool that companies use to map activities to achieve their strategic goals. It helps
analyze the company's structure and resources,
Examples of business capabilities could be recruitment, pricing, risk management or product design (Business outcome).
2. Value Stream
What: A value stream begins, ends, and hopefully continues with a customer. A value stream is the set of actions that
take place to add value for customers from the initial request through realization of value by the customers.
Why: It will help you accurately see and identify areas for improvement and then create a realistic and effective plan for
optimization.
Example: A good example of a value stream is a customer journey process. The journey itself is not the value stream; the
value stream is a way to evaluate the process and identify how the customer receives value every step of the way. Take a
look at how this works with an example of a guest checking into a hotel room.
3. Organization Map
Organizational mapping is a business architecture construct of identifying and interweaving the various relationships
between the functional and structural elements of an enterprise to analyze the cross dependencies and foster synergy.
An organization chart or org chart is a diagram that displays a reporting or relationship hierarchy and structure
4 types of organization:
1. Functional Top-Down - A functional, top-down organizational chart reflects a traditional business structure.
2. Divisional Structure
A divisional organizational chart reflects a company organized along a product line or specific geography.
Why: it is typically useful for communicating ideas to a wide range of business and technical stakeholders.
Example: Conceptual models are abstract, psychological representations of how tasks should be carried out. People use
conceptual models subconsciously and intuitively as a way of systematizing processes. For example, a common mental
model for creating appointments involves calendars and diaries.
• People - the human resource aspects of the system. It examines the human actors involved in the
system.
• Process - deals with the user processes involved in the system.
• Function - deals with the functions required to support the processes.
• Business Information - deals with the information required to flow in support of the processes.
• Usability - considers the usability aspects of the system and its environment.
• Performance - considers the performance aspects of the system and its environment.
• A Business Architecture Framework is a framework for structuring and understanding business, information, and
technology patterns and how they work together to achieve strategic and tactical goals.
The goal of a Business Architecture Framework is to;
The main core areas can be expanded into elements of a business architecture eco-system (informing business scenarios
and blueprints):
• Stakeholders. • Information.
• Policies. • Value Streams.
• Capabilities. • Products.
• Strategies. • Metrics.
• Organization. • Initiatives.
Business architecture elements enable organizations to see the big picture of the domain that is under analysis. The
business architecture elements provide insights into the important aspect of the organization and how they fit together
and highlight the critical components or capabilities.
• The scope of business architecture is the entire enterprise. It is not a single project, initiative, process, or piece
of information.
• Business architecture separates concerns within its context. It specifically separates what the business does
from:
• The information the business uses.
• How the business is performed.
• Who does it and where in the enterprise it is done.
• When it is done.
• Why it is done, an.
• How well it is done.
ARC 085 BUSINESS MANAGEMENT 1 Page 4 of 4
Prepared by: Ar. Roselle Cayat