JGgfMa Guide To The Business Architecture Body of Knowledger Bizbokr Guide - Part One
JGgfMa Guide To The Business Architecture Body of Knowledger Bizbokr Guide - Part One
PART 1: INTRODUCTION
The BIZBOK® Guide benefits organizations at every stage of the business architecture practice.
The focus on practitioners is geared at advancing organizations that have already committed at
least some resources toward business architecture. Organizations just getting started can use it
as a means to establish a foundation for a solid business architecture practice. For those
organizations with an established business architecture practice, it enables deployment teams to
solidify best practices while incorporating aspects of business architecture that may have been
underemphasized in the past.
The BIZBOK® Guide also provides a complete picture of business architecture, tying together
various concepts, disciplines, principles, and best practices into an overall framework. In addition,
it has the capacity to incorporate and leverage a wide range of business practices and emerging
disciplines. As a result, it establishes the standard for building, deploying, and leveraging business
architecture within an organization. The BIZBOK® Guide is practitioner-driven, representing a
collective and growing body of contributions from business architecture practitioners across a
variety of industries worldwide.
As the discipline of business architecture matured, its role expanded across business and related
architecture domains. This increased visibility led to a cross-disciplinary desire for a common,
revised definition that more accurately reflects the essence of business architecture and its
applicability to a business. In January 2017, the Business Architecture Guild® and a number of
related professional associations and industry standards organizations ratified new definitions
for business and related architecture disciplines. As a result of this holistic industry collaboration,
a new business architecture definition emerged as follows.
“Business architecture represents holistic, multidimensional business views of: capabilities, end-
to-end value delivery, information, and organizational structure; and the relationships among
these business views and strategies, products, policies, initiatives, and stakeholders”. 2
This definition provides a more succinct articulation of foundational business architecture as well
as its ability to align and synchronize aspects of the business that range from strategic planning
through initiative deployment. While the definition has been updated to more accurately reflect
the practice, the value proposition remains consistent. The business architecture value
proposition is summarized as:
The holistic, ecosystem focus ensures that business architecture can and should represent
customer, partner, and related external stakeholders; value stream perspectives that, in some
cases, exist in part outside of internal stakeholder’s line of sight; outsourced capabilities; and
value delivery from a multidimensional viewpoint. In effect, business architecture reflects
multidimensional aspects of a real-world business in an abstract format. Figure 1.1 depicts these
“abstractions” as high-level business domains within the business architecture.
Business architecture domains are business focal points used to establish formal abstractions
needed to represent a business. Business architecture domains form the basic building blocks of
business architecture and provide the basis for establishing a wide variety of business
abstractions, enabling business transparency.
Domains represented in figure 1.1 are related to each other in various ways. For example, a
business is broken down into business units, each of which has certain capabilities. Capabilities
enable stages within various value streams and require certain information. Organization,
capability, value streams, and information comprise the foundation of the business architecture.
These four “core” domains, represented by the inner circle in figure 1.1, are considered
foundational because they are relatively stable compared to other aspects of the business.
For example, a 100-year-old insurance company would have had similar capabilities as it does
today: Customer Management, Insurance Policy Management, and Claims Management. While
these capabilities would not have had automation 100 years ago, they still existed, along with
certain business units and value streams such as Settle Claim. The company would have also used
similar information such as Customer, Insurance Policy, or Claim, and the instances of these
domain categories tend to be relatively static.
The extended set of business architecture domains, shown in the outer rim of the circle in figure
1.1, depicts aspects of the business that, in some cases, change more frequently than core
domain perspectives. These outer rim domain categories extend the business architecture in a
variety of ways. For example, stakeholders (such as customers, business partners, and various
internal stakeholders) are used to communicate who receives business value and participates in
the delivery of that value. These stakeholder categories may have existed long ago, but it is likely
that the specific stakeholders in each category have evolved. Similarly, the instances of products
being delivered may change frequently along with other domains such as strategy and policy. As
a result, updates to the instances of these business architecture domains would be more dynamic
than updates to instances of capabilities, information, or value streams.
In all cases, however, business architecture domain categories, once established for a given
business, have the capacity to absorb and represent a wide variety of business perspectives.
BIZBOK® Guide sections 2.2 through 2.5 outline how to build out business architecture core
domains while the remaining sections in part 2 discuss building out the extended domain
categories. Relationships among business architecture domains, represented through various
blueprints, provide the foundation for a robust, highly flexible business architecture that delivers
business transparency to address a wide variety of business needs.
Business architecture represents real-world aspects of a business, along with how they interact,
to help executives and other stakeholders answer commonly asked questions: who, what, where,
when, why, and how. Answers to these questions, derived from the business architecture, are
used to develop plans and make and implement business decisions. This understanding is the
essence of business architecture and a foundation for the material presented within the BIZBOK®
Guide. Of course, representing this information is one facet; making it useful to individuals who
need only a portion of this information at a given time and have little time or patience to sort
through the details introduces another aspect of business architecture: blueprints.
Blueprints are abstract representations of reality that represent a wide variety of viewpoints.
There are building blueprints, ship blueprints, and, within this discussion, business blueprints. A
given blueprint represents one view of the business. There are many types of business blueprints,
as shown in the examples in figure 1.2. These blueprints, along with numerous others, enable
organizations to visualize their business from a variety of perspectives, providing management
with information about a given aspect of the business within a specific context. For example, the
Balanced Scorecard, shown in figure 1.2, provides management with measures against certain
business goals and objectives.
Business architecture opens up an entirely new level of business transparency that allows
management teams to streamline planning, evaluate the value of funded initiatives against
strategies, and craft more effective transformation roadmaps. This transparency is possible
because business architecture blueprints stem from a common vocabulary, standardized
framework, and shared knowledgebase. As such, dashboard results align in practice with value
streams, capabilities, information views, business objectives, key performance indicators,
initiatives, and related business viewpoints. As a result, executives, managers, planning teams,
analysts, and other stakeholders can view the business through a common lens — eliminating
much of the confusion found across business units, strategy sessions, and initiatives.
Business architecture is typically used alongside other business and operating models to enable
businesses to drive investments based on a shared view of the business. Too often, organizations
establish priorities and investments on a fragmented business perspective based on the needs of
individual business unit siloes. As shown in figure 1.3, the well-defined, ecosystem-wide
perspective provided by business architecture allows an organization to continually align its
operating model to a holistic business strategy, which, in turn, provides an organization holistic
views of operations, marketplace, and business activities that are often incomplete without
business architecture.
One misunderstanding that individuals new to business architecture often experience involves
confusion between business architecture and the operating model. As shown in figure 1.3, the
operating model is process, people, and technology focused. While useful for improving
efficiencies and costs as well as implementing detailed changes to the business and IT
environments, the operating model lacks the value-driven, capability-based, ecosystem-wide
perspective needed to deploy actionable strategies, ensure consistent policy compliance, and
optimize initiative investments.
The BIZBOK® Guide walks practitioners through the creation and application of business
architecture across various scenarios as well as the deployment and governance of the practices.
It also provides insights into how to use business architecture to achieve business goals through
an overall framework that integrates with business process, case management, business analysis,
and information technology disciplines.
in figure 1.3. The framework concept does not impose prescriptive or restrictive concepts into
the practice of business architecture. Rather, the framework provides a foundation that
organizations can build upon and customize based on unique business architecture
requirements, driven by real-world challenges.
There are three important components within the business architecture framework: business
blueprints, business architecture scenarios, and the business architecture knowledgebase.
As previously noted, business blueprints deliver business transparency that enables and
streamlines business transformation across business units, capabilities, and stakeholders. The
degree of transparency delivered by these blueprints rarely exists in many organizations. As a
result, the participants in strategy planning sessions often miss the essential understanding of
how to maximize solution-related investments while ensuring that one business unit’s success
does not create problems for the enterprise as a whole.
For example, consider the company that was creating multiple, competing enrollment solutions
for the same customer base across multiple product lines. The projects could have succeeded in
principle, yet they created more complexity and dissatisfaction across the customer base.
Business architecture provides the transparency necessary to discover these issues in advance —
before money and goods are squandered. Essential business architecture blueprint building and
usage are outlined in detail in part 2 of the BIZBOK® Guide.
The framework also incorporates the concept of business architecture scenarios, which provide
business transparency on specific business initiatives. Business architecture is applied differently
based on the type of scenario at hand. For example, a business team involved in a merger and
acquisition would require different information than another team considering how to stem
customer attrition. Applying business architecture through various business scenarios, thereby
leveraging blueprint views derived from the business architecture knowledgebase, enables
business teams to create and deploy a wide variety of transformation roadmaps. Because this
approach is based on a common view of the business across business units, it enables improved
executive sponsorship and more sustainable funding structures.
Sample scenario topics covered in the BIZBOK® Guide include:
• Investment Analysis
• Shift to Customer Centric Business Model
• Digital Transformation
• Merger and Acquisition Analysis
• New Product / Service Rollout
• Globalization
• Business Capability Outsourcing
• Supply Chain Streamlining
• Divestiture
• Regulatory Compliance
• Change Management
• Operational Cost Reduction
• Joint Venture Deployment
These business architecture scenarios define the collective set of initiatives, programs, and
projects that leverage business architecture. Of particular importance for each scenario is the
creation of a roadmap necessary to advance that particular scenario. Business architecture
scenario approaches are discussed in detail in part 4 of the BIZBOK® Guide and further
augmented by business architecture case studies in part 7.
The business architecture knowledgebase is used to store the information about the business
and is organized in concise ways that are customized to a given organization’s environment. For
example, corporations have divisions and departments while governments may use different
terminology. There are generic approaches to knowledgebase structure as well as organization-
specific approaches. For example, a government agency would have unique organizational
structures in comparison to a hospital or shipping company. Knowledgebase management is
discussed in part 5 of the BIZBOK® Guide and is also incorporated into various blueprint
discussions.
Core principles that apply to business architecture as a whole are listed below:
Figure 1.5 outlines five stages of the business architecture value stream. It is important to note
that value stream is initiated every time a stakeholder triggers the need for a business
architecture-assisted solution. A series of capabilities provides additional insights into to each
value stream stage that identify what may be done at each stage to achieve stakeholder value.
Value stream stages and capabilities are defined in appendix B.1.
The first stage of the value stream in figure 1.5 stresses the importance of establishing business
motivations for the use of business architecture. The second stage performs a needs analysis and
determines the role business architecture will play going forward, including scenario focus. Using
business architecture, the third stage establishes a clear view of the enterprise as it relates to the
current and target states of the business from viewpoints relevant to the scenario at hand. This
stage additionally covers how related business disciplines help frame business solutions based
on business priorities and related aspects of the business architecture. The fourth stage defines
initiatives required to achieve the goals set in stage one and implement the solutions crafted in
stage three. The last stage delivers the ultimate degree of stakeholder value — a deployed
solution and confirmation of success.
Note that while there is a capability for addressing business-driven IT architecture definition
under stage three, this value stream is not meant to encompass all aspects of a software
development solution. Inclusion of this capability is merely meant to demonstrate that business
solutions requiring IT architecture planning and definition would do so within this stage.
Business/IT alignment concepts are incorporated within part 6 of the BIZBOK® Guide.
The value stream in figure 1.5 is not a one-time event but one that will happen many times over
based on business issues that arise. In other words, this is a recurring value stream that
organizations will be able to apply for years into the future as new and unique challenges arise.
The value stream leverages the three key aspects of the business architecture framework:
blueprints, scenarios, and the knowledgebase. Businesses typically employ customized versions
of this value stream, framing their ability to move from a strategic plan through solution
deployment.
o Section 3.6: Business Architecture and Lean Six Sigma – Provides guidelines
for aligning Lean Six Sigma, a widely used discipline for improving business
performance, to business architecture.
o Section 3.7: Business Architecture and Business Performance Management
– Introduces the role of business architecture in measuring and improving
business performance.
o Section 3.8: Business Architecture and Requirements Alignment – Discusses
how business architecture is used to inform, frame, and improve business
requirements analysis.
o Section 3.9: Business Architecture Maturity Model™ – Provides an overview
of a framework for evaluating the overall maturity of a business architecture
practice and deployment. It also provides a summary perspective of business
architecture maturity and introduces appendix B.3, which contains the
complete Business Architecture Maturity Model™ (BAMM™).
o Section 3.10: The Role of the Business Architect – Outlines what business
architecture means for the individuals who practice the discipline.
o Section 7.4: Financial Services Case Study – Reveals how business architecture
• Part 8: Industry Reference Models – Presents industry reference models that serve
as a baseline for building a business architecture. It categorizes reference models by
vertical industry and includes a variety of business architecture blueprint categories.
Reference models are built and published incrementally, representing progress across
vertical industries. The number and type of vertical industries defined in this section
will grow, along with the breadth and depth of reference models.
• Appendices
o Appendix A: Glossary – Summarizes terms and definitions used throughout
the BIZBOK® Guide.
o Appendix B.1: Business Architecture Value Stream and Capability Definitions
– Defines the value stream, value stream stages, and capabilities found in the
example in figure 1.4.
o Appendix B.2: Business Architecture Roles and Competencies – Provides a list
As this document continues to evolve, comments, corrections, and new contributions from Guild
members are appreciated. If you are interested in contributing content, including BIZBOK® Guide
updates, go to the Guild’s website and consider joining or helping start a collaborative member
team.
1
OMG Business Architecture Special Interest Group, http://bawg.omg.org.
2
“Recommendation of FEAPO Taxonomy Working Group for adoption of definitions.” Federation of Enterprise
Architecture Professional Organizations (FEAPO) Plenary Meeting and subsequent vote. January 14, 2017.
http://c.ymcdn.com/sites/www.businessarchitectureguild.org/resource/resmgr/FEAPO_Adopted_Architecture_D.
pdf. www.feapo.org.