business architecture: state of the art / state of the
TRANSCRIPT
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Business Architecture:State of the Art / State of the Practice
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William M. Ulrich –Tactical Strategy Group, Inc.
www.systemtransformation.com
Copyright Copyright ©© 2009 Tactical Strategy Group, Inc.2009 Tactical Strategy Group, Inc.
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An Industry DefinitionAn Industry Definitionof Business Architectureof Business Architecture
“A blueprint of the enterprise that A blueprint of the enterprise that provides a common understanding of provides a common understanding of the organization and is used to align the organization and is used to align strategic objectives and tactical strategic objectives and tactical demands."demands."
*Source: Business Architecture Working Grouphttp://bawg.omg.org/
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Why Business Architecture?Why Business Architecture?Because…
Enterprises are redundant collections of governance structures, information and functional artifacts
Redundancy and lack of transparency within the business extends into supporting IT architectures
Deploying horizontal initiatives into this complex, highly redundant and non-transparent environment drives up the time, cost and risk
There is a lack of transparency as to where work is performed, how it is done and who does it
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Business Architecture Reflects the Business Business Architecture Reflects the Business EcosystemEcosystem
The ecosystem can be represented through the identification and development of relationships among a selected set of business artifacts categories.
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Capabilities
SecurityInitiatives& Projects
Customers,Suppliers & Competitors
Information & Vocabulary
Products& Services
Value Chain
Business Processes
Policies, Rules, Regulations
Abstract Business Views
Vision, Strategies &
Tactics
Metrics & Measures
Assets
OrganizationUnits
What?What?
Why?Why?
How?How?
Who?Who?
How?How?Why?Why?
What?What?
How How Well?Well?
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Business Architecture DisciplinesBusiness Architecture DisciplinesVisualization: • Expose business architecture in variety of ways
Aggregation: • Pattern recognition• Redundancy mapping
Alignment: • Streamline & transform business architecture• Align IT architecture to the business architecture• Alignment must be driven by business scenarios
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Capabilities
SecurityInitiatives& Projects
Customers,Suppliers & Competitors
Information & Vocabulary
Products& Services
Value Chain
Business Processes
Policies, Rules, Regulations
Abstract Business Views
Vision, Strategies &
Tactics
Metrics & Measures
Assets
OrganizationUnits
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Business Architecture VisualizationsBusiness Architecture Visualizations
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Capabilities
SecurityInitiatives& Projects
Customers,Suppliers & Competitors
Information & Vocabulary
Products& Services
Value Chain
Business Processes
Policies, Rules, Regulations
Business Architecture Ecosystem
Vision, Strategies &
Tactics
Metrics & Measures
Assets
OrganizationUnits
Balance ScorecardBalance Scorecard
Business Architecture EcosystemBusiness Architecture Ecosystem
Organizational & Partner ModelsOrganizational & Partner Models
Supply Chain ModelsSupply Chain Models
Operational ModelsOperational Models
Chart of AccountsChart of AccountsProduction ModelsProduction ModelsAsset ModelsAsset Models
Value Chain ModelsValue Chain Models
Information FlowsInformation Flows
Capability MapCapability Map
Process / Value Chain Process / Value Chain Aggregation &Aggregation &DecompositionDecomposition
Business / IT MappingsBusiness / IT Mappings
Business Architecture Visualization Business Architecture Visualization ExamplesExamples
Business Architecture is typically instantiated Business Architecture is typically instantiated in a normalized view such as a metamodelin a normalized view such as a metamodel
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Sample Visualization of Sample Visualization of Business ArchitectureBusiness Architecture
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Customer
Customer Access Points
Value Stream
Organization Structure Delineation Points
Horizontal Business Processes
Sample visualization of a cross-section of business architecture based on understanding basic business abstractions and relationships
This is one of many views that are possible when the business architecture is well defined across business silos
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Business Architecture AlignmentBusiness Architecture Alignment
Aligns organization, semantics & functional aspects based on motivations
Focuses on streamlining, consolidating and otherwise improving business architecture
Essential to cross-functional, horizontal business and IT initiatives
Alignment must be incremental, value-driven and scenario specific
Ties large and small project initiatives to business motivations
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Current State vs. Future StateCurrent State vs. Future State
Current state (as-is) view of business architecture is critical to planning and executing business scenarios
Current state view is only driven down to level required for a given business scenario
Future state (to-be) business architecture is strategy and scenario driven
Current-to-future state business architecture gap provides input to scenario planning, transformation plan
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Business Architecture vs. IT ArchitectureBusiness Architecture vs. IT Architecture
Business ArchitectureCohesive, aggregated visualizations of:
MotivationsOrganizational StructureBusiness SemanticsFunctional Aspects
IT ArchitectureConceptual & physical representations of:
Data architectureData architecture
Application architectureApplication architecture
Technical architectureTechnical architecture
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IT Architecture Implements Business IT Architecture Implements Business Architecture through TechnologyArchitecture through Technology
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“Blueprints of the technologies, data structures and applications that collectively comprise the information technology (IT) environment of an enterprise.” *
IT Architecture
Applica
tion
Archite
cture
Artifac
tsData
Architecture
Artifacts
Techn
ical
Archite
cture
Artifac
tsShadow
System
ArtifactsDesktop & Desktop & business business systems out of systems out of ITIT’’s controls control
Applications, Applications, services & services & orchestrationsorchestrations
Physical & Physical & logical data logical data deployments & deployments & representationsrepresentations
Underlying Underlying platforms & platforms & technologiestechnologies
*Source: TSG
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Business / IT Architecture AlignmentBusiness / IT Architecture Alignment
Business architecture / IT architecture alignment defined:
“A state in which governance structures, business information and value chains work in harmony with application and data architectures”*
Alignment is inherent in most cross-functional, cross-disciplinary initiatives
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* The Role of Collaborative Governance in Business Architecture, Cutter Journal, William Ulrich, March 2008http://www.systemtransformation.com/citj0803_WU2.pdf
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Implications of Poor Business / IT Architecture Alignment
Large-scale IT projects that do little to achieve strategic or tactical business objectives
Indecision as to how to allocate annual project funding
Lack of trust between business and IT
Dangerous spiral of escalating projects with diminishing business returns
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Business / IT Alignment Requires Mapping Business / IT Alignment Requires Mapping the Business Ecosystem to the IT Ecosystemthe Business Ecosystem to the IT Ecosystem
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IT ArchitectureEcosystem
Business architecture and IT architecture are inextricably woven togetherChanges to one impacts the other, yet most enterprises cannot predict the impacts of changes between these ecosystemsLack of predictably creates pattern and culture of speculation on current state issues and future state evolution - and misplaced funding
Capabilities
SecurityInitiatives& Projects
Customers,Suppliers & Competitors
Information & Vocabulary
Products& Services
Value Chain
Business Processes
Policies, Rules, Regulations
Business Architecture Ecosystem
Vision, Strategies &
Tactics
Metrics & Measures
Assets
OrganizationUnits
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Metamodels of Business & Business / IT Metamodels of Business & Business / IT Architectures Facilitate AlignmentArchitectures Facilitate Alignment
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The Business Architecture Ecosystem & Metamodelhttp://www.bpminstitute.org/articles/article/article/the-business-architecture-ecosystem-metamodel.html?tac=105p
Sample Business Architecture Mapping Sample Business Architecture Mapping MetamodelMetamodel Sample Business / IT Architecture Sample Business / IT Architecture
Mapping MetamodelMapping Metamodel
Value Chain
Logical Business Process
-input-output
Physical Business Process
-aggregates to11..*
1
-decomposes into1..*
Task
1
-decomposes into1..*
Information
InformationGroup
-contains 11
BusinessUnit
Business Area
-contains 1..*
1
ProjectProgram
-funds 1..*
1
ProductLine
1..*
-services
1..*
-affects1..*
1..*
Product -contains
1
1
Value Chain /Processes
Program/Projects
Governance
Information
1-funds
1..*
Enterprise
-contains 1..* 1
Product / Service
Customer
Supplier/Partner
1..*
-relies on 1..*
-is acquired by
1..*
1..*
1..*
-references
1..*
1
-impacts by1
Business Rule
1..*-uses
1..*
Shadow System
1..*
-relies on
1..*
Strategy_Tactics
Vision_Goals_Objectives
1
-is implemented through1..*
Motivational Aspects
-impacts *
*
1
-is implemented through1..*
-has
1..*
1
-impacts
*
*
-has a *1..*
Capability Level 1
Capability Level 2
Capability Level 3
-decomposes into *1
-decomposes into
*
1
1
-facilitates deployment of 1..*
-relies on*
1..*
Value Chain
Logical Business Process
-input-output
Physical Business Process
1
-relies on1..*
1
-decomposes into1..*
User Interface
1..*
-triggers
1..*
Task
1
-decomposes into1..*
ApplicationSystem
SubSystem
1
-contains1..*
Information
Data Store
InformationGroup
1
-is defined in1..*
-contains 11
BusinessUnit
Business Area
-contains 1..*
1
Project
Program-funds 1..*
1
1..*
-uses 1..*
-is triggered by*
-triggers
1
ProductLine
1..*
-services
1..*
-affects1..*
1..*
Product -contains
1
1
Value Chain /Processes
Application & Data Architecture
Program/Projects
Governance
Information-has a *
1..*1
-funds
1..*
Enterprise
Capability Level 1
Capability Level 2
Capability Level 3
-contains 1..* 1
Product / Service
Customer
Supplier/Partner
1..*
-relies on 1..*
-is acquired by
1..*
1..*
-decomposes into *1
1..*
-references
1..*
1..*
-is stored in
1..*
1
-impacts by1
-decomposes into
*
1
Business Rule
1..*-uses
1..*1
-is implemented by
1..*
1
-facilitates deployment of 1..*
Shadow System
1..*
-relies on
1..*1..*
-triggers 1..*
1
-is implemented by
1..*
-relies on
*
1..*
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Business / IT Architecture Alignment & Business / IT Architecture Alignment & TransformationTransformation
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AsAs--Is Business Architecture Is Business Architecture ToTo--Be Business Architecture Be Business Architecture
AsAs--Is IT ArchitectureIs IT Architecture ToTo--Be IT Architecture Be IT Architecture
IT TransformationIT Transformation
Business / IT Business / IT AsAs--Is Is
Architecture Architecture MappingMapping
Synchronization of Synchronization of ToTo--Be Business Be Business
Architecture & ToArchitecture & To--Be IT ArchitectureBe IT Architecture
Business TransformationBusiness Transformation
Synchronization of Synchronization of Business / IT Business / IT
TransformationTransformation
Capabilities
SecurityInitiatives& Projects
Customers,Suppliers & Competitors
Information & Vocabulary
Products& Services
Value Chain
Business Processes
Policies, Rules, Regulations
Business Architecture Ecosystem
Vision, Strategies &
Tactics
Metrics & Measures
Assets
OrganizationUnits
Capabilities
SecurityInitiatives& Projects
Customers,Suppliers & Competitors
Information & Vocabulary
Products& Services
Value Chain
Business Processes
Policies, Rules, Regulations
Business Architecture Ecosystem
Vision, Strategies &
Tactics
Metrics & Measures
Assets
OrganizationUnits
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1717
Business Architecture Sample Roadmap
Establish foundation for establishing and building business architecture
Based on common metamodel, visualization options
Ensure that you have horizontal and vertical visibility into business problems you are solving
Focus on top executive prioritiesHelp executives visualize the root cause
Help executives visualize future state business model that addresses these issues
Understand the various business alignment scenarios
Engage IT and pursue business / IT alignment options as appropriate
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Benefits of Business Architecture are Benefits of Business Architecture are Best Achieved when Scenario DrivenBest Achieved when Scenario DrivenFor example:
Streamline customer information management across business units
Enable, streamline merger / acquisition related projects
Facilitate deployment of new products and services across enterprise silos
Streamline external and internal collaboration across business units and partners
Reduce operational redundancies, inefficiencies and costs
Align ineffective, inefficient governance structures
Increase communication and collaboration between business and IT
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Common Scenarios Driving Business Common Scenarios Driving Business Alignment & Business / IT AlignmentAlignment & Business / IT Alignment
Sample Business ScenariosSample Business Scenarios
Merger & AcquisitionMerger & Acquisition
Business Unit ConsolidationBusiness Unit Consolidation
New Product & Service DeploymentNew Product & Service Deployment
New Line of Business New Line of Business
Supplier ConsolidationSupplier Consolidation
Regulatory Compliance Regulatory Compliance
Operational Cost Analysis / Cost ReductionOperational Cost Analysis / Cost Reduction
Sample Business / IT Alignment ScenariosSample Business / IT Alignment Scenarios
Application Package DeploymentApplication Package Deployment
Model Driven Migration Model Driven Migration
Business Unit / IT Architecture ConsolidationBusiness Unit / IT Architecture Consolidation
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How Business Architects are How Business Architects are OrganizingOrganizing
CFO VPs
CEO
CIO
IT Architecture Team
Business Strategy &
Transformation
Core Participants
Virtual Participants Business Architecture
Center of Excellence
COOVPsVPsVPsVPs
Business unitsBusiness unitsBusiness unitsBusiness unitsBusiness unitsBusiness unitsBusiness unitsBusiness units
Business unitsBusiness unitsBusiness unitsBusiness unitsBusiness unitsBusiness unitsBusiness unitsBusiness units
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Summary / QuestionsSummary / Questions
In practice, much work is being done to organize business architecture efforts
Much of the work is being driven by specific management requirements
Cross-functional initiatives are common driversFor example, customer information management across business units
Standards and tools are aligning around best practices
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2222
Business Architecture:State of the Art / State of the Practice
--------------------------------------------------------
William M. Ulrich –Tactical Strategy Group, Inc.
www.systemtransformation.com
Questions
Copyright Copyright ©© 2009 Tactical Strategy Group, Inc.2009 Tactical Strategy Group, Inc.