TOGAF® Business Architecture Level 1 Study Guide. Andrew Josey

TOGAF® Business Architecture Level 1 Study Guide - Andrew Josey


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      4.5 Business Models and Business Architecture

       (Syllabus Reference: Unit 1, Learning Outcome 1.2.1: You should be able to explain the relationship between business models and Business Architecture.)

      Business models provide a high-level visual representation of the design of a business. They describe the rationale for how an organization creates, captures, and delivers value to its various internal and external stakeholders. They also provide a basis for establishing a common understanding of how to describe and manipulate the business in pursuit of new strategic alternatives. In addition, they can be used for discussions around business innovation and strategy planning for the allocation of resources.

      Usually there is sufficient information available in a draft business model for interested parties to explore overall feasibility and support strategic decision-making. On the other hand, the sketch view does not normally contain sufficient information to perform a risk assessment or to develop a plan to execute the agreed strategy.

      While a business model creates alignment for achieving business strategy, it is the Business Architecture that articulates the different perspectives and impacts of the business model.

      Business Architecture breaks the business model down into the core functional elements that describe how the business works, including the business capabilities, value streams, organizational structure, and information objects required to deliver the desired business result. This process can also identify gaps and conflicts in the thinking and assumptions used to create the business model. In doing so, it can loop the discussion back to any required changes or improvements to the business model.

      In the TOGAF standard, Phase B (Business Architecture) is where architects take the high-level business model diagram artifact and develop a detailed set of architecture blueprints (representing different viewpoints of the proposal) to enable more in-depth planning, investment, and option analysis. These detailed perspectives are useful and necessary for planning teams, business analysts, and business unit managers to understand and evaluate the overall impact of the proposed business model on the operation.

Illustration

       Business Architecture using the ArchiMate® Modeling Language

      The ArchiMate notation supports the key concepts of Business Architecture, especially in its motivation and strategy elements. It can be used to bridge the gap between high-level strategy models such as the Business Model Canvas and solution models.

      However, its notation is primarily intended for architects. Appropriate alternate visualizations tuned to communicate needed information are recommended for business stakeholders.

      See Appendix E for summary information on Business Architecture using the ArchiMate modeling language.

      4.6 Using Business Models with the TOGAF ADM

       (Syllabus Reference: Unit 1, Learning Outcome 1.2.2: You should be able to explain how business models can be used according to the TOGAF standard.)

      This section summarizes how business models are used with the TOGAF ADM. Detailed descriptions of ADM Phases A and B are given later in this document.

      Business models are a key input into the Phase B (Business Architecture) of the TOGAF ADM and are either developed or located during Phase A (Architecture Vision).

      The business model is highly effective at aligning members of the leadership team around new strategies or a different business direction. The Business Architecture is more effective at aligning the rest of the enterprise on what needs to be done (and how) at an operational and organizational level.

      Activities related to business models in Phase A and Phase B are as follows:

      • First, planners and architects use the business model to identify key partners that are stakeholders in the change

      The business models are analyzed to gain insight into additional stakeholders, including their concerns, objectives, and key business requirements.

      • Next, the business models are validated against the business goals, strategic drivers, and constraints of the organization

      Any inconsistencies or gaps are provided as feedback to the sponsors of the Statement of Architecture Work for clarification.

      • Architects then analyze the business models and use capability mapping to identify new capabilities or enhanced capabilities required to realize the target business model, and capabilities no longer required

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