Every executive and business unit leader has a strategy, formal or informal. Every business unit and IT organization has a set of initiatives designed to achieve some objective. And every initiative was funded based on anything from a formal business case to informal common sense. Most of these initiatives are launched without the benefit of business architecture and some of these initiatives actually succeed in meeting their respective objectives.
So why does the enterprise need business architecture? What does business architecture tell us that we don’t already know?
The gap between strategy and spend
All too often, there is a gap between the stated strategic goals and objectives of an enterprise, on the one hand, and the set of initiatives on which the business is actually spending money, on the other. Commonly, business executives conceive of some multi-pronged growth strategy that includes expanding the business within the current customer base and extending the business into other markets. Specific objectives for expanding the business within the current customer base likely include selling additional products to the current customers.
To achieve this particular business objective, it does not take business architecture to figure out that the installation of multiple products at a single client should be seamless. It also takes little imagination to realize that an integrated product set would make seamless installation more easily achieved.
With so much common sense staring decision makers in the face, the tendency is to engage IT immediately going directly from strategy to solution definition. The gap in this case is more of a chasm.
IT to the rescue
When common sense prevails, IT is often given what appear to be very clear business requirements. In this example: make our products seamless and integrated.
IT has enough sense to know that completely re-architecting product suites that are entrenched in the current customer base to make the products truly integrated is not feasible; much less redeveloping, testing and rolling out all the products. However, IT knows technology better than anyone and can likely make the products “appear” integrated and to make their respective installations seamless.
IT will assign one of its senior analysts to develop a business case. The business case will include clear objectives, a description of the technology, costs, and a timeline. IT may even include a prototype of the solution using an applicable technology.
At this point, everything looks good – without the benefit of business architecture.
Bridging the gap
What is missing when IT launches specific initiatives based solely on the broader strategy is the operational perspective. The strategy is definitely the starting point. However, there is much more that must be modeled to derive true business requirements and ensure business value.
Business architecture models the strategic view of the business so that all business and IT initiatives are traceable back to the strategy. This ensures that every initiative, whether a purely business initiative or an IT initiative, directly contributes to the enterprise strategy. It also maps operational metrics back to the strategy.
Business architecture models the desired capabilities of the organization to document the relationships between customer-facing, supplier-related, internal execution, and business management functions. This exposes any organizational silos and highlights cross-functional cooperation that is essential to effective operations.
Business architecture models the processes that transcend functional and organizational boundaries to uncover true business requirements. The process models identify and describe the internal resources and external entities that influence and interact with the business, respectively.
Business architecture models the information, as opposed to the data, that the organization uses to run their business. It provides a common language that the business uses to uncover commonalities, misconceptions and opportunities to improve communication.
Finally, business architecture models the governance structure that monitors and tracks progress against goals and makes adjustments to programs and projects as needed.
Conclusion Without business architecture, any number of business and IT initiatives can be launched based on clear and undisputed need. However, without business architecture there is no way to quantify the value that can be reasonably expected from these initiatives.
With business architecture, business and IT initiatives are mapped back to the strategy and the expected value is predictable. A very explicit and specific set of requirements ensures that solutions are not over- or under-engineered. The impact of change is identifiable, measurable, and readily mitigated. Gaps and redundancies in data and support application are corrected. Communication is improved and opportunities for collaboration are exploited. And metrics are available to measure value.
Can an organization engage in meaningful programs and projects without business architecture? Yes. Can it spend that money more effectively with business architecture? Most assuredly.
