business architecture - paul turner

© Assist Knowledge Development

Business Architecture

Paul Turner

IIBA UK North 12th August 2014


The breadth of Business Analysis

Business case

Business analysis

Requirements engineering

Solution development

Strategic analysis


The breadth of Business Analysis

Business case

Business analysis

Requirements engineering

Solution development

Strategic analysis

Systems Thinking

Agile development


Systems Modelling


What is Architecture?


What is Business Architecture?

“The structure and behaviour of a business system . Covering business functions or capabilities, business processes and the roles of the actors involved in these.

Business functions and business processes are mapped to the business goals and business services they support, and the applications and data they need”

"A blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands."

Business Architecture Guild


Uses of a Business Architecture

• Develop a perspective on an organisation’s strategic differentiators, and fully understand what it is and what it is doing

• Understand the key value streams used to deliver its value propositions

• Provide a way to quickly and effectively implement strategy through defined approaches and organisation wide frameworks

• Make better-informed and more comprehensive business decisions

• Solve complex enterprise business problems

• Define detailed business needs, to be used as input for business and IT solutions

• Ensure the success of an overall Architecture by serving as the driving force for the IT Architecture


Business Architecture as part of enterprise architecture


The existence of a robust Business Architecture supports:

Senior executives:

By assisting in the execution of strategy and assessing the impact of change

IT:

By enabling enterprise level requirements and promoting governance

Projects:

By assisting in their discovery and facilitating consistent delivery

3rd Parties:

By providing shared models and collaboration


F

The impact of Business Architecture

Consider the relationship with:

• Strategy

• Governance

• Innovation and Agility

• Business Change

• Business Analysis

Focuses on WHAT thebusiness needs to dorather than HOW itdoes it


Business Architecture fit within an organisation

Strategy BusinessArchitecture

Execution

Strategy drives changes to Architecture

Architecture informs and refines Strategy

Architecture translatesStrategy for Execution

Execution enables andgenerates improvements to

Architecture

Creates a direct, clear linkage between executive intent and organisational action

Provides a structured approach to making strategic and operational investment decisions


Systemic change

Systemic change is one wherethe impact of any change is considered in respect of the whole ,and the relationships between the individual parts to one another

i.e. see the bigger picture


The solution to oneproblem may cause another biggerProblem

We may act to produceshort term benefits leading to long term costs

Cause and effect


The role of the Business Architect

The Business Architect converts high-level business strategy and business needs …….

……. into an integrated vision of the future

……. and then redesigns the business capabilitiesnecessary to deliver the goals of the vision.

This provides a holistic, complete and co-ordinated set of business models the best of which become blueprints for future profit and growth.

These roadmaps are then broken down into initiativesfor implementation


Metrics & Measures

Decisions& Events


Elements of a Business Architecture

Capabilities

Organisation Information

ValueStreams

Policies, Rules,

Regulations

Customers,Partners &Competitors

Vision,Strategies &

Tactics

Products &Services Initiatives

& Projects


Capabilities


ValueStreams

Elements of a Business Architecture


Organisation

ProcessesPeople

Information&

Technology

POPIT™ – taking a holistic approach

BusinessMotivations

Four views of a business system


Organisation

ProcessPeople

Information&

Technology

POPIT™ – link to Business ArchitectureBusiness ModelsExternal Business EnvironmentBusiness Capabilities

Value PropositionsValue StreamsCore Business Processes

Roles and Job DescriptionsSkills and CompetenciesCulture

Information Concepts Information StandardsTechnical Architecture

Four views of a business system


Examples of Business Architecture documentation

• Business Context• Business terminology and concepts• Business capabilities (represented in a Business

Capability Model)• Value streams• Organisational business units and roles• Information concepts


The map is not the territory


Business Architecture scenarios

Example business scenarios might include: • Mergers and acquisitions• Business unit consolidation• New product deployment• New line of business• Outsourcing of business capability• Change management• Regulatory compliance• Divesting a line of business• Implementing a new way of working


Business Architecture views (Blueprints)

BusinessArchitecture

Scenarios

Business Architecture FrameworkBusinessMotivations

Four views of a Business System (POPIT)


So how does this affect Business Analysts?

• To contribute to the bottom up construction of the Business Architecture

• Help evaluate business ideas and initiatives

• Assess impact of suggested changes

• Encourage re-use

• Model using architectural artefacts

• Understand knock-on effects

• Ensure changes are reflected back into the architecture



Paul Turner

[email protected]


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BOrganisationalCapabilities

Strategy

Vision/Mission

Inputs Outcomes

Customers

Process People Technology

Culture

Value streams


Contents of a Business Architecture

Motivation

Values & ethos

PESTLE

5 forces

VMOST

Balanced scorecard - CSFs, KPIs

Organisation/Capability

BusinessModels

BusinessCanvas

Organisation diagram

Business Capabilities

Partners & Channels

Cost Structures

Value Propositions

Value/Process

Value expectations

Business Services

Value streams

Value networks

Core Business Processes

Task definitions

Business events & Business rules

Competency/People

Roles & Job descriptions

Skills/ Competencies

Management Activities

Culture

Information

InformationCategories

InformationConcepts

Repositories


Capabilities


ValueStreams

Aspects of a Business

A Capability is WHAT a businessdoes that delivers value to a customer (not HOW it does it).

Capabilities should be SUAVE:• Represent Stable activities• Identify Unique abilities• Abstracted from existing models• Add Value to the end customer• Capture business Exec interest

A Value Stream is an end-to-endcollection of sequential activities that create value for stakeholders(external and internal)


Business Planning

Business Planning

Policy management

Goals management

Financial Management

Risk Management

Procurement Management

Vendor mgt. Product acq. mgt.

Vendor info mgt.

Vendor contract mgt.

Product req mgt.

Fulfilment mgt.

Strategic:Direction setting

Primary:Customerfacing

Support:

Example of a Capability Model


Example of a value stream

Con

Develop Product

Conceive product

Design product

Build product

Release product

Valueitem Customer

Value stream: Linear model of a value proposition through a sequenceof the major stages which represent a series of interchanges with stakeholders as the Value stream moves from left to right.

Value item

Stakeholder

Value item

Stakeholder

Stakeholdertrigger