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In the
business sector In economics, the business sector or corporate sector - sometimes popularly called simply "business" - is "the part of the economy made up by companies". It is a subset of the domestic economy, excluding the economic activities of general gov ...
, business architecture is a discipline that "represents
holistic Holism () is the idea that various systems (e.g. physical, biological, social) should be viewed as wholes, not merely as a collection of parts. The term "holism" was coined by Jan Smuts in his 1926 book '' Holism and Evolution''."holism, n." OED On ...
, multidimensional business views of: capabilities, end‐to‐end value delivery, information, and
organizational structure An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the foundat ...
; and the relationships among these business views and
strategies Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the " ar ...
, products, policies, initiatives, and stakeholders." In application, business architecture provides a bridge between an enterprise
business model A business model describes how an organization creates, delivers, and captures value,''Business Model Generation'', Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-published, 2010 in economic, soci ...
and
enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings, an energy holding company * Enterprise plc, a UK civil engineering and maintenance company * Enterpris ...
strategy on one side, and the business functionality of the
enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings, an energy holding company * Enterprise plc, a UK civil engineering and maintenance company * Enterpris ...
on the other side. It often enables the Strategy to Execution methodology. People who develop and maintain business architecture are known as business architects.


Overview

The term "business architecture" is often used to mean an architectural description of an enterprise or a business unit, an architectural model, or the profession itself. The Business Architecture Working Group of the Object Management Group (OMG) (2010) describes it as "a blueprint of the enterprise that provides a common understanding of the organization and is used to align strategic objectives and tactical demands."
OMG Business Architecture Special Interest Group The Business Architecture Special Interest Group (BASIG) is a working group on business architecture of the Object Management Group (OMG), known for their contribution to the history of business architecture. This working group was founded in 2007 ...

What Is Business Architecture?
at ''bawg.omg.org,'' 2008
archive.org
. Accessed 04-03-2015; Cited in:
William M. Ulrich William M. Ulrich (born c. 1956) is an American business architecture consultant, consultant at Cutter Consortium, director and lecturer, known for development of 'The Systems Redevelopment Methodology' (TSRM) in the 1990s, on legacy systems in th ...
,
Philip Newcomb Philip H. Newcomb (born 1950s) is an American software engineer and CEO of The Software Revolution, Inc., known for his work in the field of formal methods of software engineering.Anquetil, Nicolas, and Timothy C. Lethbridge. "Experiments with clu ...
''Information Systems Transformation: Architecture-Driven Modernization Case Studies.'' (2010), p. 4.
According to the OMG, a blueprint of this type describes "the structure of the enterprise in terms of its governance structure, business processes, and business information." As such, the profession of business architecture primarily focuses on the motivational, operational, and analysis frameworks that link these aspects of the enterprise together. The key characteristic of the business architecture is that it represents real world aspects of a business, along with how they interact. It is developed by an interdisciplinary practice area focused on defining and analyzing concerns of what business does, how it does it, how it is organized, and how it realizes value.Business Architecture Guild, ''Business Architecture and BPM - Differentiation and Reconciliation - Whitepaper'' It is used to design competitive structures and processes, leverage existing strengths, and identify potential investment opportunities that advance the business's objectives and drive innovation. FEAPO,
A Common Perspective on Enterprise Architecture
" in: ''Architecture and Governance Magazine,'' 2013(11): 1–2.
Products of this business architecture efforts are used to develop plans, make business decisions and guide their implementations. In practice, business architecture effort is conducted on its own or as part of an enterprise architecture. While an enterprise architecture practice in the past had focused primarily on the technological aspects of change, the practice is quickly evolving to use a rigorous business architecture approach to address the organizational and motivational aspects of change as well. The alignment between business architecture and enterprise architecture is a natural architectural alignment of two related disciplines. Business architecture represents a business in the absence of any IT architecture while enterprise architecture provides an overarching framework for business and IT architecture.


History of business architecture

The history of business architecture has its origins in the 1980s. In the next decades business architecture has developed into a discipline of "cross-organizational design of the business as a whole"Paul Arthur Bodine and Jack Hilty. "Business Architecture: An Emerging Profession," at ''businessarchitectsassociation.org,'' Business Architects Association Institute. April 28, 2009.
online
)
closely related to enterprise architecture. The concept of business architecture has been proposed as a blueprint of the enterprise,Michael K. Bourke (1994). Strategy and architecture of health care information systems. p. 55
OMG Business Architecture Working Group The Business Architecture Special Interest Group (BASIG) is a working group on business architecture of the Object Management Group (OMG), known for their contribution to the history of business architecture. This working group was founded in 2007 ...
. "Business Architecture Working Group," at ''bawg.omg.org,'' Oct 10, 2008.
archive.org, Oct. 10, 2008
.
as business strategy,Peter T. Davis (1996) ''Securing Client/server Computer Networks.'' p. 324 and also as the representation of business design.SOA Consortium, EA2010 working group.
Business Architecture; The Missing Link between Business Strategy and Enterprise Architecture
.'' Copyright by OMG, 2010.
The concept of business architecture has evolved over the years. It was introduced in the 1980s as
architectural domain An architecture domain in enterprise architecture is a broad view of an enterprise or system. It is a partial representation of a whole system that addresses several concerns of several stakeholders. It is a description that hides other views or ...
s and as activity of business design. In the 2000s the study and concept development of business architecture accelerated. By the end of the 2000s the first handbooks on business architecture were published, separate frameworks for business architecture were being developed, separate views and models for business architecture were further under construction, the business architect as a profession evolved, and an increasing number of businesses added business architecture to their agenda. By 2015 business architecture has evolved into a common practice. The business architecture body of knowledge has been developed and is updated multiple times each year, and the interest from the academic world and from top management is growing.


Business architecture topics


Different views of an organization

In order to develop an integrated view of an enterprise, many different views of an organization are typically developed. Each "view" is typically a diagram that illustrates a way of understanding the enterprise by highlighting specific information about it. The key views of the enterprise that may be provided by business architecture address several aspects of the enterprise; they are summarized by the Object Management Group (2012)OMG Business Architecture Working Group,
Business architecture overview
" at ''bawg.omg.org.'' Accessed December 18, 2014
as follows:
* The Business Strategy view captures the tactical and strategic goals that drive an organization forward... * The Business Capabilities view describes the primary business functions of an enterprise and the pieces of the organization that perform those functions... * The
Value Stream A value stream is the set of actions that take place to add value to a customer from the initial request through realization of value by the customer. The value stream begins with the initial concept, moves through various stages of development and ...
view defines the end-to-end set of activities that deliver value to external and internal stakeholders... * The Business Knowledge view establishes the shared semantics (e.g., customer, order, and supplier) within an organization and relationships between those semantics (e.g., customer name, order date, supplier name)... * The Organizational view captures the relationships among roles, capabilities and business units, the decomposition of those business units into subunits, and the internal or external management of those units.
In addition to the above views of the enterprise, the relationships that connect the aforementioned views form the foundation of the business architecture implementation. This foundation provides the framework that supports the achievement of key goals; planning and execution of various business scenarios; and delivery of bottom line business value.


Business strategy

In the 2006 article "Business Architecture: A new paradigm to relate business strategy to ICT," Versteeg & Bouwman explained the relation between
business strategy In the field of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization's managers on behalf of stakeholders, based on consideration of resources and an assessmen ...
and business architecture. They wrote:
Business Architecture is directly based on business strategy. It is the foundation for subsequent architectures (strategy embedding), where it is detailed into various aspects and disciplines. The business strategy can consist of elements like strategy statements, organizational goals and objectives, generic and/or applied business models, etc. The strategic statements are analyzed and arranged hierarchically, through techniques like qualitative hierarchical cluster analysis. Based on this hierarchy the initial business architecture is further developed, using general organizational structuring methods and business administration theory, like theories on assets and resources and theories on structuring economic activity. Versteeg, G & H. Bouwman. "Business Architecture: A new paradigm to relate business strategy to ICT." ''Information Systems Frontiers'' 8 (2006) pp. 91-102.
Versteeg & Bouwman further stipulated, that "the perspectives for subsequent design next to organization are more common: information architecture, technical architecture, process architecture. The various parts (functions, concepts and processes) of the business architecture act as a compulsory starting point for the different subsequent architectures. It pre-structures other architectures. Business architecture models shed light on the scantly elaborated relationships between business strategy and business design."


Approaches for business architecture


The Business Architecture Guild

The primary purpose of the Business Architecture GuildBusiness Architecture Guild
/ref> is "to promote best practices and expand the knowledge-base of the business architecture discipline." The Guild is a non-profit, international membership organization for practitioners and others interested in the developing the field of business architecture. With members on six continents, a strong Advisory Board and a growing number of business partners, the Guild positions itself as a focal point for the evolving practices and disciplines of business architecture. Founded in late 2010, the Guild opened up membership in the fall of 2011 based on the initial release of A Guide to the Business Architecture Body of Knowledge(R) (BIZBOK(R) Guide). BIZBOK(R), currently at version 11, is a "practical guide for business architecture practitioners and individuals who wish to use business architecture to address business challenges. This practical guide comes in the form of best practices, gleaned from numerous companies and business architecture leaders.".Business Architecture Guild, A Guide to the Business Architecture Body of Knowledge™, v 7.5 (BIZBOK® Guide), March 2019. Part 1, Section 1 & Page 1


The Business Architecture Association

The Business Architecture Association started as a DePaul based organization where practitioners came together to share and explore new ideas around Business Architecture. It later formalized itself into a formal organization that looked to build local chapters where practitioners could gather and share their ideas around Business Architecture. In addition, to building a chapter based organization, the Business Architecture Association coalesced a group of strong practitioners to put together the first practitioner exam. Eventually, the Business Architecture Association formalized the exam and it became the beta version of certified practitioner exam. In 2014, the Business Architecture Guild and the Business Architecture Association, joined forces where the beta exam became cornerstone of the certification program of the Business Architecture Guild looking to solidify the practice of Business Architecture in the marketplace.


The ASATE Group Business Capability Framework

The ASATE Group Business Capability Framework relies on business capabilities and the eight types of building blocks that make them up (processes, functions, organizational units, know-how assets, information assets, technology assets, brands and natural resource deposits) to model a business architecture. This framework was devised with five criteria in mind: (1) must be aligned with the ANSI/IEEE 1471-2000 standard definition of architecture; (2) must share an anchor point with business strategy, namely capabilities; (3) must rely on common business terms and definitions thereof; (4) must comprise all building block types necessary to model a complete business architecture; and (5) must not be burdened with unnecessary building blocks types.


Enterprise architecture frameworks encompassing business architecture approaches


Zachman Framework

The
Zachman Framework The Zachman Framework is an enterprise ontology and is a fundamental structure for enterprise architecture which provides a formal and structured way of viewing and defining an enterprise. The ontology is a two dimensional classification sche ...
is a popular
enterprise architecture framework An enterprise architecture framework (EA framework) defines how to create and use an enterprise architecture. An architecture framework provides principles and practices for creating and using the architecture description of a system. It struct ...
used by business architects. The framework provides ontology of fundamental enterprise concepts that are defined from the intersection of six interrogative categories: What, How, Where, Who, When, Why, and six perspectives: Executive, Business Management, Architect, Engineer, Technician, and Enterprise. Typically, business architects are interested in the concepts associated with the top two perspectives: Executive and Business Management. The Executive perspective is concerned with the scope and context of the business. The Business Management perspective is concerned with business definition models.


The Object Management Group

Modeling standards of the
Object Management Group The Object Management Group (OMG) is a computer industry standards consortium. OMG Task Forces develop enterprise integration standards for a range of technologies. Business activities The goal of the OMG was a common portable and interoperab ...
(OMG), including the
Unified Modeling Language The Unified Modeling Language (UML) is a general-purpose, developmental modeling language in the field of software engineering that is intended to provide a standard way to visualize the design of a system. The creation of UML was originally m ...
(UML),
Model Driven Architecture Model Driven Architecture (MDA) is a software design approach for the development of software systems. It provides a set of guidelines for the structuring of specifications, which are expressed as models. Model Driven Architecture is a kind of doma ...
(MDA),
Business Motivation Model The Business Motivation Model (BMM) in enterprise architecture provides a scheme and structure for developing, communicating, and managing business plans in an organized manner. Specifically, the Business Motivation Model does all of the followin ...
(BMM),
Semantics of Business Vocabulary and Rules The Semantics of Business Vocabulary and Business Rules (SBVR) is an adopted standard of the Object Management Group (OMG) intended to be the basis for formal and detailed natural language declarative description of a complex entity, such as a bu ...
(SBVR) and the
Business Process Modeling Notation Business Process Model and Notation (BPMN) is a graphical representation for specifying business processes in a business process model. Originally developed by the Business Process Management Initiative (BPMI), BPMN has been maintained by the ...
(BPMN), and the
Decision Model and Notation In business analysis, the Decision Model and Notation (DMN) is a standard published by the Object Management Group.OMG standard "Decision Model and Notation (DMN)"current version/ref> It is a standard approach for describing and modeling repeatable ...
(DMN) enable powerful visual design, execution and maintenance of software and other processes, including IT Systems Modeling and
Business Process Management Business process management (BPM) is the discipline in which people use various methods to discover, model, analyze, measure, improve, optimize, and automate business processes. Any combination of methods used to manage a company's business p ...
. Currently, OMG works on the
Value Delivery Modeling Language Value Delivery Modeling Language (VDML) is a standard modeling language for analysis and design of the operation of an enterprise with particular focus on the creation and exchange of value. In 2009, the Object Management Group (OMG) launched a Req ...
(VDML), a standard modeling language for analysis and design of the operation of an enterprise with particular focus on the creation and exchange of value Object Management Group, ''VDML Specification''


The Open Group

The Open Group Architecture Framework The Open Group Architecture Framework (TOGAF) is the most used framework for enterprise architecture as of 2020 that provides an approach for designing, planning, implementing, and governing an enterprise information technology architecture. TO ...
(TOGAF) of
The Open Group The Open Group is a global consortium that seeks to "enable the achievement of business objectives" by developing "open, vendor-neutral technology standards and certifications." It has over 840 member organizations and provides a number of servi ...
is a community-based standards effort for describing methods and tools used by architecture. It is being developed and continuously improved by the Open Group, a consortium of interested individuals and companies involved in information technology. According to TOGAF, Business Architecture "defines the business strategy, governance, organization, and key business processes".The Open Group, ''TOGAF 9.1 specification'' TOGAF refers to Business Architecture as one of the four architecture domains, which represent the subsets of the overall enterprise architecture with the other three architecture domains being Application Architecture, Data Architecture, and Technology Architecture. The key element of TOGAF, Architecture Development Method, identifies development of Business Architecture as necessary prerequisite for developing other architecture domains and provides guidance in regard to development steps and common artifacts.


Industry reference models

Industry reference models are frameworks or models that provide a
best practice A best practice is a method or technique that has been generally accepted as superior to other known alternatives because it often produces results that are superior to those achieved by other means or because it has become a standard way of doing ...
off-the-shelf Off-the-shelf may refer to: * Commercial off-the-shelf, a phrase in computing and industrial supply terminology * Government off-the-shelf * Ready-to-wear * Shelf corporation, a type of company * Off the Shelf Festival, a festival of writing and r ...
set of structures, processes, activities, knowledge and skills. The
Business Architecture Guild William M. Ulrich (born c. 1956) is an American business architecture consultant, consultant at Cutter Consortium, director and lecturer, known for development of 'The Systems Redevelopment Methodology' (TSRM) in the 1990s, on legacy systems in th ...
provides reference models for many industries, including government, financial services, insurance, transportation, and healthcare, as well as a common reference model. Other organizations are also beginning to develop complementary models for additional industries.


Other industry models

Many additional business models exist that can be related to business architecture, but are derived from other approaches, such as operating models and lower-level process frameworks. Examples of these include: * The Business Process Framework (eTOM), published by the TM Forum, describes the full scope of business processes required by a service provider in the telecommunications industry, and defines key elements and how they interact. * Process Classification Framework (PCF), published by APQC, creates a common language for organizations to communicate and define work processes comprehensively and without redundancies. Organizations are using it to support benchmarking, manage content, and perform other important performance management activities. * The Supply-Chain Operations Reference (SCOR) was a proprietary process reference model, published by Supply-Chain Council. Supply-Chain Council merged with
APICS APICS, currently known as the Association for Supply Chain Management is a not-for-profit international education organization offering certification programs, training tools, and networking opportunities to increase workplace performance. F ...
in 2014. * OpenReference is an
Open Open or OPEN may refer to: Music * Open (band), Australian pop/rock band * The Open (band), English indie rock band * ''Open'' (Blues Image album), 1969 * ''Open'' (Gotthard album), 1999 * ''Open'' (Cowboy Junkies album), 2001 * ''Open'' ( ...
, editable reference for business terms, building towards a common language to describe business performance, processes, practices and terms. The reference is maintained by volunteers of th
OpenReference Initiative


See also

*
Capability management in business Capability management is the approach to the management of an organization, typically a business organization or firm, based on the "theory of the firm" as a collection of capabilities that may be exercised to earn revenues in the marketplace and ...
* Component business model


References


Further reading

* * * * * * *


External links

{{Commons category-inline Enterprise architecture Business terms