What is Business Architecture
EXECUTIVE SUMMARY
Business Architecture is one of the three prime activities of Executive Management: Strategy, Business Architecture, and Operations & Optimization.
Download Paul A. Bodine and Jack Hilty, "Business Architecture: An Emerging Profession" (2009) pp.42.
Business Architecture is an important new corporate activity. Organizations like Allstate, Wells Fargo, Pepsico, HSBC, Grainger, Blue Cross Blue Shield and United Air Lines have taken the lead and are already piloting Business Architecture Groups.
Business Architecture is performed by cross-organizational generalists who possess professional skills for transforming corporate strategy into business designs that enable corporations to increase market share, profit margins and flexibility, while reducing risk.
Their unique skills include:
- Designing dynamic, flexible new models for the business that enable it to adjust and thrive in constantly changing competitive environments.
- Preparing business cases that provide Executive Management with the information they need to make wise decisions.
- Incorporating the insights of customers, line employees and managers to ensure their unique needs are accommodated .
- Engaging subject matter experts throughout the organization in the solution process.
- Coordinating and sequencing their solutions to remove conflicts.
- Defining metrics that provide the data necessary to make improved decisions in the future.
- Generating necessary documentation; packaging and translating it into terms each audience can understand and embrace.
Their skills are obtained through specialized training and real-world experience, magnified by the broad network of skilled professionals they access through active participation in professional industry associations like the Business Architects Association®
The Business Architect’s effectiveness derives from open relationships with the organization’s Executive Management, line managers and rubber-meets-the-road employees, subject matter experts and consultants, and their ability to get to and solve cross-organizational issues early, before they become caught up in debates among functional departments.
Those performing Business Architecture activities provide direct support to Executive Management by making them aware of emerging issues and trends, providing training in new management methodologies, and researching opportunities and concerns as they arise. They also work to ensure all elements of the corporate strategy are implemented properly.
There is universal agreement in the value a comprehensive Business Architecture program will bring to an organization, the need to include experts from all areas of the organization and importance of their sponsorship deriving directly from Executive Management.
Failure to maintain an up-to-date business architecture can result in loss of agility and competitiveness, destabilization and business failure.
