unpacking business-architecture

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the futures of business 7 Jun 2022 (c) Tom Graves / Tetradian 2010 1 Unpacking Business Architecture Tom Graves, Tetradian Consulting TOGAF Stockholm, November 2010 [email protected] / www.tetradian.com

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On extending TOGAF's business-architecture to a whole-of-enterprise scope (presentation at Biner/OpenGroup EA conference, Stockholm, December 2010)

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Page 1: Unpacking business-architecture

the futures of business

10 Apr 2023 (c) Tom Graves / Tetradian 2010 1

Unpacking Business Architecture

Tom Graves, Tetradian ConsultingTOGAF Stockholm, November [email protected] / www.tetradian.com

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Business architecture and the enterprise

or, What to do when the enterprise impacts on the business

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What is ‘business architecture’?...and how does it differ from enterprise-

architecture?• No clear definition in TOGAF or elsewhere:

– TOGAF: “strategy”, “business drivers”, “business capabilities”, “business processes”

– “knowledge of the Business Architecture is a prerequisite for architecture work in any other domain (Data, Application, Technology)” – but doesn’t say what it is...

• Should it be ‘the architecture of the business”?– but what is ‘the business’, anyway?

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A real business problem...

...“we’ve gone from the most-respected bank in our region to the least-respected bank – and it’s starting to hurt everything we do...”

• Serious impacts at whole-enterprise scale– customer-relations, employee-relations, government-

relations, business-processes, business-results

• Affects everywhere – hence architectural issue– “everything depends on everything else”

• Yet what is the ‘architecture’ of respect?– and how would we describe it, with TOGAF?

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Let’s just step back a bit...

...think about this in strict architectural terms

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the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 6

Whole-of-enterprise architectureEach EA generation has had to extend the scope:• ‘Classic’ EA starts with IT infrastructure• IT tech-architecture depends on applications• Applications-architecture depends on data• Data-architecture depends on business-info

need• Information-architecture depends on business• Business-architecture depends on enterprise• Enterprise-architecture defines the contextAn enterprise-architecture must have whole-of-

enterprise scope – it’s not just detail-level IT!

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the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 7

Use the TOGAF maturity-model

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed

Level 5:Optimised

Prepare and maintain foundations for architecture

(Initialpilot test)

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the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 8

TOGAF scope in maturity-model

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed

Prepare and maintain foundations for architecture

(Initialpilot test)

Step 1: Know your business(focus on business-purpose)

Step 2: Clean up the mess(horizontal assessment)

Step 3: Strategy and stuff(top-down assessment)

Step 4: Work with the real world(bottom-up assessment)

Step 5: Pull together(spiral-out assessment)

Maintainthe dialogue

(Start EAdev’ment)

Level 1:Ad-hoc

Level 2:Repeatable

Level 3:Defined

Level 4:Managed

Level 5:Optimised

Prepare and maintain foundations for architecture

(Initialpilot test)

Main emphasis of TOGAF,for IT-architecture only

TOGAF 8.1

TOGAF 9

‘Big-picture’ strategy

Pain-points + wicked-problems

But business most wants us to work on these...(...everything else is just ‘detail stuff’)

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Importance of ‘Know your business’• We need that ‘Stage 1’ work (‘Know your

business’) as the anchor for the architecture– high-level overview of ‘what business are we in?’

• TOGAF assumes this is ‘business architecture’– but TOGAF’s handling of business-architecture is not

well-suited for this purpose at present – we’ll come back to this later

• First requirement: distinction between ‘organisation’ and ‘enterprise’– we create an architecture for an organisation,

but about an enterprise

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Organisation and enterprise

Organisation and enterprise are not the same!

• Enterprise: a social structure defined by vision, values, mutual commitments

• Organisation: a legal structure defined by rules, roles, responsibilities

• The enterprise is – it provides motivation• The organisation does – it provides action

They’re fundamentally different – don’t mix them up!

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Organisation as ‘the enterprise’

From a business perspective, this is the effective scope of TOGAF’s ‘business architecture’

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Business-model as ‘the enterprise’

Typical business-model or supply-chain view(complete supply-chain should extend beyond this)

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Market as ‘the enterprise’

Overall market includes actors who do not yet have active transactions with us, or other transactions

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The real scope of ‘the enterprise’

The overall enterprise has many actors who may have only ‘intangible’ transactions / interactions with us(yet can have major impacts on our business)

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The architecture of respect

• Many of the sources for our bank’s problems were out in the extended-enterprise– not ‘visible’ to a conventional IT-oriented architecture

• We needed to ‘surface’ those sources so as to resolve them in the business-architecture– to do this, must be able to extend the architecture

beyond the organisation, beyond the market

• Identify unifying factors to rebuild trust– provide customers etc reason-to-connect with bank– pre-empt / minimise impact of anti-client incidents

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A classic anti-client incident• ‘United Breaks Guitars’ http://www.youtube.com/watch?v

=5YGc4zOqozo

• Real business impacts for United Airlines– direct cost (PR, media etc) in excess of $20m?– contributed to short-term hit of c.$180m on share-value– long-term damage to brand, reputation etc incalculable

• Social-media gives anti-clients great leverage– complaints can now spread faster, and wider– (but with care, so can stories of customer-satisfaction)

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The market-cycle

transactions depend on (reaffirmed) reputation and trust

boundary of ‘market’in conventional

business-models

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So where does TOGAF fit into this?

...or, how would we use TOGAF for this type

of architecture?

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We need a more balanced view...

10 Apr 2023 (c) Tom Graves / Tetradian 2010 19

“everywhere and nowhere is ‘the centre’ of the enterprise-architecture”

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...current TOGAF is too parochial?

10 Apr 2023 (c) Tom Graves / Tetradian 2010 20

“IT-infrastructure is the centre of the enterprise-architecture”(but there’s a whole world out there beyond IT...)

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The TOGAF ADM: an old friend...

• Designed for IT-architecture• Focus is IT/business alignment

RequirementsManagement

G.Governance

and Compliance

E.Opportunities

andSolutions

C.Develop

Data / Apps Architecture

A.ArchitectureScope and Purpose

Preliminary:Framework,

Principles and Core Content

H.Architecture

Change Management

B.Develop

Business Architecture

D.Develop

TechnologyArchitecture

F.Migration Planning

BUT...• Increasing

consensus that EA is more than IT

• EA as ‘the architecture of the enterprise’

SO...• How can we use

TOGAF beyond IT?

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...with an unfortunate kludge?

Classic scope of IT-based ‘enterprise architecture’

RequirementsManagement

G.Governance

and Compliance

E.Opportunities

andSolutions

C.Develop

Data / Apps Architecture

A.ArchitectureScope and Purpose

Preliminary:Framework,

Principles and Core Content

H.Architecture

Change Management

B.Develop

Business Architecture

D.Develop

TechnologyArchitecture

F.Migration Planning

BusinessArchitecture

Data Architecture

ApplicationsArchitecture

TechnologyArchitecture

IT(3% of enterprise)

Everything not-IT ?(97% of enterprise)

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TOGAF’s ‘business architecture’......in essence, ‘anything not-IT that might impact IT’

• To be blunt, ADM Phase B is not very usable– inadequate context: where does everything fit?– inadequate layering: ‘big-picture’ strategy mixed in

with ops-level process, ‘scenarios’ are just use-cases– inadequate instructions: provides lists of models that

could be useful, but without explaining how or why

• Clean-up Step 1: describe context and patterns

• Clean-up Step 2: clarify layering• Clean-up Step 3: consistency for models

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Step 1: Context and patterns

...or, rethinking the real pattern behindTOGAF Phases B, C and D

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Look at pattern, not content

• We naturally focus on our ‘own’ area of interest– for TOGAF 8/9, this is IT-infrastructure– the layers are actually layers of ‘distance from self’– Phases B/C/D successively focus in on our area of

interest, each ‘layer’ providing context for the next

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Same pattern at larger scope

• For business-architecture, repeat the pattern– architecture of business becomes key focus (‘Phase D’)– layers are ‘distance from business-organisation’– Phases B/C/D focus in on business-architecture, each

‘layer’ providing context for the next

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Scope of enterprise-architecture

(complete EA includes many other intersecting ‘architectures’ – security, process, brand, organisation etc)

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Step 2: Layering and cycles

...or, where Zachman really works with TOGAF

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Scope of enterprise-architecture

• Big-picture: vision, strategy, overview, ‘business of business’• Common: interfaces etc common to all implementations• Detail: implementation-specific, context-specificAligns well with service-oriented architecture for the whole enterprise

BusinessArchitecture

Data Architecture

ApplicationsArchitecture

TechnologyArchitecture

Big-picture [Business-purpose]Zachman rows 0-2

Common / ConnectionZachman rows 2-3

Design / DetailZachman rows 4-6

[People](FEAF labels this as ‘Human Capital’)

[Things](FEAF labels this as ‘Other Fixed Assets’)

[Information]

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Layers of abstraction

(row-0 = ‘always’; rows 1-5 = far-future to near-future; row-6 = past)

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Cycles of structural dependency

(adapted from classic Group Dynamics project-lifecycle and VPEC-T framework)

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Strategy, tactics, operations

(overall cycle and relationships need to be in balance)

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The ‘quick-money’ failure-cycle

(this was a key source of problems for the bank – too short-term focus,with the classic “last year +10%” used as a substitute for strategy)

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Step 3: Consistency for models

...or, service-oriented architecturefor the whole enterprise

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Everything serves the vision

• The vision describes the shared aims of the entire enterprise• We observe and learn from what we achieve in the real world• Everything in the enterprise is a service towards the vision

(a literal ‘service-oriented architecture’

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The structure of vision• Vision is the overall anchor for everything

– ‘vision’ in the ISO9000 sense – i.e. not ‘marketing puff’

• Vision-descriptor has distinct 3-part structure– focus [noun]: context or things of concern to everyone– action [verb]: what is to be done to or in the focus– qualifier [adjective]: why this is important to everyone

• Example: ‘ideas worth spreading’ (TED conferences)

– ‘ideas’ (focus)– ‘worth’ (qualifier)– ‘spreading’ (action)

Components may be in any order, but all must be present

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All services have same structure

• Service exists at intersection of value and supply-chain• Service creates value towards the vision of the enterprise• Interactions / flows before, during, after main transaction

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Including guidance and investors

(yes, I know it looks like Robbie-the-Robot, but that’s just how it came out...)

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Identify internal content of servicesUse extended-Zachman to support whole-EA

At Operations level, we should be able to describe every service as:

What How Where Who When Why

Asset

What

ObjectInformationRelationship

Value

(examplesegment)

<asset>

(revised)

(original)

with

Function

How

MechanicalIT-basedManualAbstract

<function>do

Location

Where

PhysicalVirtual

RelationalTemporal

<location>at

Capability

Who

RulesAnalysisHeuristicPrinciple

<capability>using

Event

When

PhysicalVirtual

RelationalTemporal

<event>on

Reason

Why

RulesAnalysisHeuristicPrinciple

<reason>because

-- this is an ‘architecturally complete’ pattern or composite

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Cross-links to market value-cycle

Many interactions with extended-enterprise relate to Value-Proposition only – Purpose, Values, People, Policies

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Layers – row-0 (vision)

ZapaMex is a fictitious shoe-retailer (Las Zapaterias de Mexico) – we developed this model-set as a ‘demonstrator’ for the bank

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Layers – row-1 (scope)

Row-1 consists only of lists of ‘relevant entities’ – for example, the ‘Who’ section lists key actors in the overall enterprise

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Layers – row-2 (business-services)

Row-2 describes the relationship between the selected ‘relevant entities’ – for the enterprise to be effective, every entity must be accounted for somewhere in the overall system

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Layers – row-3 (service content) [1]

Manufacturing’s view of the overall service, ignoring everything and everyone outside its scope (much like IT often does... or many would-be business-models)

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Layers – row-3 (service content) [2]

a more realistic view of the business-architecture, including activities and flows that are needed before and after the main transactions

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Layers – row-3 (service content) [3]

a more complete scope for the business-architecture

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Services - guidance

Keep the service on-track to the enterprise vision

• Direction – provide strategy, futures-services, planning, performance-tracking

• Coordination – connect this service to others to coordinate run-time processes, change-projects and longer-term development

• Validation – develop awareness and capability for each value and quality associated with the vision, and audit performance against that value

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Layers – rows 3-5 and row-6

• Rows 3-5 are very similar to each other, and will be modelled as services in much the same way on the Enterprise Canvas– only essential difference is the level of detail:

• row-3 (‘logical model’): implementation-independent• row-4 (‘physical model’): implementation-dependent• row-5 (‘action plan’): complete deployment detail

• Row-6 is records of action etc – always relates to the past, not the future– includes all metrics, history, performance-records

etc– use in reviews to link action etc back to vision

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How do we do all this in TOGAF?• Option 1: retain existing Phase B/C/D, but

move everything up a couple of notches– Phase B: the overall enterprise (‘Big-picture’)– Phase C: market + supply-chain (‘Common/Connection’)– Phase D: business-architecture (‘Design/Detail’)

• Option 2: rethink ADM to support any scope– Phase A: identifies purpose for iteration (‘Aim’)– Phase B: assess main time-horizon (‘Base’)– Phase C: assess comparison time-horizon(s) (‘Compare’)– Phase D: do gap-analysis (‘Difference’)

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Option 1: extend the scope...

Change the labels / focus for Phases B, C, D

RequirementsManagement

G.Governance

and Compliance

E.Opportunities

andSolutions

C.Develop

Data / Apps Architecture

A.ArchitectureScope and Purpose

Preliminary:Framework,

Principles and Core Content

H.Architecture

Change Management

B.Develop

Business Architecture

D.Develop

TechnologyArchitecture

F.Migration Planning

BusinessArchitecture

Data Architecture

ApplicationsArchitecture

TechnologyArchitecture

Phase B Big-picture / Business

Phase CCommon / Connection

Phase DDesign / Detail

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Option 2: rethink the structure...

Requires more radical change, but also more versatile

C.Develop

Comparison Architecture(e.g. ‘As-Is”)

B.DevelopPrimary

Architecture(e.g. ‘To-Be’)

D.Conduct

Gap-Analysisfor change

Repositories for Architectures / Issues / Risks /

Requirements etc

G.Governance

and Compliance

E.Opportunities

andSolutions

A.Architecture

Iteration Scope and Purpose

Preliminary:Framework,

Principles and Core Content

H.Architecture

Assessment / Improvement

F.Plan

Implementation

• Iterative – ADM cycles can include other cycles, and can be any duration from a couple of hours to a couple of years

• Unrestricted scope – can address any scope – not constrained to predefined scope such as the ‘four architectures’ of standard ADM

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Some alternate approaches• Business Model Generation (Osterwalder et al)

(www.businessmodelgeneration.com)– probably the business-modelling technique - describes systematic

TOGAF-compatible process to model business drivers etc

• recrEAtion (Chris Potts) (see www.dominicbarrow.com)– uses fiction to describe a whole-of-enterprise architecture, with an

emphasis on business-specific ‘guiding ratios’

• Lost in Translation (Nigel Green et al) (www.LIThandbook.com)– introduces VPEC-T (values, policies, events, content, trust) – a path to

improved communication between business and IT

• Enterprise Architecture as Strategy (Ross, Weill et al)– use of IT-oriented architecture to underpin business-strategy – popular

introduction to enterprise-scale architecture for IT-architects

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Summary• Enterprise-architecture is architecture of the

whole enterprise – not solely the enterprise-IT

• TOGAF at present is focussed on IT-architecture, but with some amendments also works well at whole-enterprise scale and scope

• Viewing everything as services provides consistency across all enterprise scope– ‘Enterprise Canvas’ model provides a means to link

different models in different layers

• Enterprise culture is the real key to enterprise-architecture

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Unpacking business architecture

Any questions?

(or answers, perhaps?)

Thank you!

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Further detail: books by Tom Graves• Doing Enterprise Architecture: process and practice in the

real enterprise

• Everyday Enterprise Architecture: sensemaking, strategy, structures and solutions

• Mapping the Enterprise: modelling the enterprise as services with the Enterprise Canvas

• Bridging the Silos: enterprise architecture for IT-architects

• The Service Oriented Enterprise: enterprise architecture and viable systems

• Real Enterprise Architecture: beyond IT to the whole enterprise

• SEMPER and SCORE: enhancing enterprise effectiveness

• Power and Response-ability: the human side of systems

(see tetradianbooks.com for details)

10 Apr 2023 (c) Tom Graves / Tetradian 2010 55