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Certified Enterprise Architect Professional (CEAP) - Module 6 - Module 6: Business Architecture

Business Architecture:

The exchange of services and information is defined in terms of business.

In enterprise architecture, "business architecture" refers to a specific component that focuses solely on the organizational structure, strategy, processes, and capabilities of a company, essentially acting as a blueprint for how the business operates and aligns with its strategic goals, while the broader enterprise architecture encompasses the business architecture alongside data, applications, and technology aspects to create a holistic view of the entire organization.

Business Architecture objectives include:

  • Development of the desired Business Architecture
  • Describe what is required to achieve business goals
  • Respond to the defined strategic initiatives
  • Address stakeholder concerns and architecture requests

Business Architecture Structure and Behavior is a topic comprised of the following

elements:

  • Business Functions
  • Business Capability and Capability Based Planning
  • Business Model
  • Business Terms and Concepts
  • Value Chain Diagram
The Value Chain is a strategic diagram that allows the primary and secondary activities in an organization to be modeled.

Value Chain diagram for Business Service:


Business Function Portfolio or Catalog:

A business portfolio is a dynamic document that provides a comprehensive overview of a company's activities, goals, and identity. It can include a variety of information, such as:
  • Products and services
  • Strategic business units (SBUs)
  • Mission statement
  • Organizational goals
  • Investments and amounts
  • Branding elements
  • Company assets and holdings
  • Certifications
  • Strategic alliances
  • Potential future acquisitions 
Business Capability and Capability Based Planning :
A "business capability" refers to what an organization can do, essentially a high-level function or activity that represents a core competency, while "capability-based planning" is a strategic planning method that focuses on aligning organizational initiatives and investments with these core capabilities to achieve business goals, prioritizing "what" the company can do over specific tactics or processes to achieve it; essentially, it's a way to plan by understanding and leveraging an organization's key strengths and abilities rather than just individual tasks or projects.

Example:

Let's say a company wants to implement a new CRM system. Business Architecture can be used to:

  • Define the program vision: "To improve customer satisfaction and increase sales by implementing a new CRM system that enables a 360-degree view of the customer."
  • Identify stakeholders: Sales, Marketing, Customer Service, IT
  • Map business capabilities: Customer Relationship Management, Sales Management, Marketing Automation
  • Define the target operating model: A customer-centric organization with streamlined sales and marketing processes
  • Manage dependencies: Integration with existing systems, data migration
  • Measure progress: Increased customer satisfaction scores, increased sales revenue

By applying Business Architecture in this way, the company can ensure that the CRM implementation program is aligned with its overall business strategy and that it delivers the desired business outcomes.


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