Business Architecture: State of the Art / State of the ...

Copyright TSG, Inc. 2009 - All rights reserved

11

Business Architecture:State of the Art / State of the Practice

----------------------------

William M. Ulrich –Tactical Strategy Group, Inc.

www.systemtransformation.com

Copyright Copyright ©© 2009 Tactical Strategy Group, Inc.2009 Tactical Strategy Group, Inc.

22

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/

Copyright © 2009 Tactical Strategy Group, Inc.


33

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


44

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.


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?


55

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


Capabilities




Products& Services

Value Chain

Business Processes


Abstract Business Views


Tactics

Metrics & Measures

Assets

OrganizationUnits

6

Business Architecture VisualizationsBusiness Architecture Visualizations


Capabilities




Products& Services

Value Chain

Business Processes


Business Architecture Ecosystem


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


7

Sample Visualization of Sample Visualization of Business ArchitectureBusiness Architecture


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

88

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



99

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



1111

IT Architecture Implements Business IT Architecture Implements Business Architecture through TechnologyArchitecture through Technology


“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


* 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


14

Business / IT Alignment Requires Mapping Business / IT Alignment Requires Mapping the Business Ecosystem to the IT Ecosystemthe Business Ecosystem to the IT Ecosystem


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




Products& Services

Value Chain

Business Processes




Tactics

Metrics & Measures

Assets

OrganizationUnits


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Metamodels of Business & Business / IT Metamodels of Business & Business / IT Architectures Facilitate AlignmentArchitectures Facilitate Alignment


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


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


User Interface

1..*

-triggers

1..*

Task

1


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..*

16

Business / IT Architecture Alignment & Business / IT Architecture Alignment & TransformationTransformation


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




Products& Services

Value Chain

Business Processes




Tactics

Metrics & Measures

Assets

OrganizationUnits

Capabilities




Products& Services

Value Chain

Business Processes




Tactics

Metrics & Measures

Assets

OrganizationUnits


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


1818

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



1919

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


2020 Copyright © Tactical Strategy Group, Inc. 2009

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


2222

Business Architecture:State of the Art / State of the Practice

--------------------------------------------------------

William M. Ulrich –Tactical Strategy Group, Inc.

www.systemtransformation.com

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