Business Architecture & Enterprise Architecture – Match Made in Heaven

I recently spoke at the European BPM and EA Conference in London on this topic. This blog post is a summary version of my session.

Often Business Process Management and associated discipline such as Business Architecture is seen or managed in isolation of the overarching Enterprise Architecture construct. However the Business Architecture and Enterprise Architecture complement each other well to get the best value from each other. I think that the Business Architecture is one of the key enablers of the Enterprise Architecture and makes it real. While the Enterprise Architecture offers much needed context for the Business Architecture.

It might be useful to briefly review the definitions of both Business Architecture and Enterprise Architecture before understanding issues in their relationship. 

As I have been writing on this blog, Enterprise Architecture should not be limited to the IT or Technology concerns of an organisation. Rather it should be focused on addressing much broader scope covering the business, functional, operational, financial and people aspects of the enterprise. 

There are a number of Enterprise Architecture definitions out there. A couple of my favorite ones are as follows:


Enterprise Architecture provides a strategic planning framework that relates and aligns information technology with the business functions that it supports.


Or


Practice of enterprise architecture involves developing a framework to describe a series of “current”, “intermediate” and “target” reference architectures and applying them to align change within the enterprise. Another set of terms for these are “as-is”, “to-be” and the “migration plan”.



The Business Architecture Special Interest Group of Object Management Group (OMG) defines Business Architecture as follows:

“A Blueprint of the Enterprise That Provides A Common Understanding Of The Organization And Is Used To Align Strategic Objectives And Tactical Demands.”


“Business Architecture describes the product and/or service strategy, and the organizational, functional, process, information, and geographic aspects of the business environment”

I think that though the practice of both Business Architecture and Enterprise Architecture has matured over the past few years, there certainly are some issues when it comes to these two working well together. I have summarised them in four broad arguments;

  1. Business Architecture not done at all. Enterprise Architecture teams only perform Enterprise Technical Architecture only.
  2. Business Architecture done in isolation of Enterprise Technical Architecture and then (if lucky) artificially superimposed
  3. Business Architecture and Business Context Confusion: confusion between why, what and how
  4. Technology focused governance: only conversations about technical standards, business governance disconnected from IT investment and decisions leading to critical gaps
I have tried to capture this pictorially below:

BA & EA in Isolation

This issue is getting wider acknowledgment given its strategic importance. I particularly like Randy Heffner’s work in this space. He states in one of his blogs;

“Simply positioning business architecture as a layer on top of existing EA domains is a mistake. Traditionally many organisations have pursued EA as Enterprise Technical Architecture (ETA). ETA is technology-centred.  Business architecture is business-centred. Simply layering it on top of ETA will result in tech-centred silo implementation.”


As Business Architecture Special Interest Group of Object Management Group(OMG) states, the Business Architecture defines the structure of the enterprise in terms of its governance structure, business processes, and business information. In defining the structure of the enterprise, business architecture considers customers, finances, and the market to align strategic goals and objectives with decisions regarding products and services; partners and suppliers; organization; capabilities; and key initiatives. Business Architecture primarily should focus on the business motivations, business operations and business analysis frameworks and related networks that link these aspects of the enterprise together and it should be seamlessly integrated with Enterprise Architecture efforts within the organisation. 

In my experience to tackle above listed issues, following measures can be taken by the Architecture team;

  1. Business Architecture as part of Enterprise Architecture
  2. Business Architecture drives Enterprise Architecture domains
  3. Business Architecture and Business Context clarified and integrate
  4. Business aligned Technology governance


My pictorial representation from earlier changes as below now:


BA & EA in Collaboration

Modern Enterprise Architecture teams and Enterprise Architects can not longer afford to ignore the implications of Business Architecture. Likewise, modern business architects can no longer afford to work in isolation of organisation’s enterprise architecture. 

In conclusion of this article I would like to summarize my thoughts as follows:

  1. Enterprise Architecture in isolation of Business Architecture is simply Enterprise Technical Architecture
  2. Business Architecture should guide the development of Enterprise Architecture domains
  3. Business Architecture combined with Enterprise Architecture is a powerful tool for business-IT alignment
  4. Strategic Frameworks and Models help in achieving this alignment

And as Chris Potts would argue, the Chief Executive of an Organisation should be ultimately accountable for ensuring the two come together as we would expect him or her to be the Chief Enterprise Architect of the Enterprise!

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A Message From The CFO… Help Me Help You!

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By: Ben Geller, VP Marketing, Troux

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In a recent Wall Street Journal – CFO Journal blog, James Wilmsen, CFO for cloud service provider XIOLINK stated “I am often surprised by how infrequently, if at all, the CFO is engaged when a company is evaluating [technology]. Many times CFOs take a back seat to the CIO or IT manager despite the inherent financial and strategic implications when evaluating investments in technology and IT services. However, the insight of a CFO can be critical in evaluating and choosing the right [technology].”

In essence, on behalf of CFOs everywhere Wilmsen is sending a message to their CIO counterparts… Help me help you!

Working in concert with CIOs and IT managers, Mr. Wilmsen believes CFOs can help IT leaders make the right decisions. He postulates there are a number of ways a CFO can add value to the technology evaluation process. A few of these are listed below.

1) CFOs can help evaluate risks. “As the chief steward of the company’s assets, both tangible and intangible,” it is critical the CFO understand the what, how, and where of a new technology investment. Mr. Wilmsen suggests “a series of meetings with the executive team of the [technology or IT Services] provider can uncover any concerns or potential issues which may later manifest themselves as poor service levels. Establishing a relationship and dialogue with them early in the process can pay dividends as the relationship grows and expands.”

2) CFOs can anticipate the potential return on investment. “The CFO is responsible for evaluating investments and processes to ensure they enhance profitability and achieve an expected return on invested capital. The right technology contributes to both arenas. Good technology, closely aligned with the needs of the business, is a long-term undertaking, requiring constant nurturing and adjustment. An investment in an initiative today could look very different tomorrow based on a changing competitive landscape, customer needs, and capital market factors. It is important that the CFO understands this dynamic and, along with the CIO, understands how an investment of time and resources with the right service provider can provide the enhanced level of flexibility desired.”

3) CFOs can help identify the organizational impact of technology change. According to Mr. Wilmsen, “at its essence, technology exists because of its ability to alter a process.” It allows leadership to “look at the chessboard of organizational capabilities and consider moves and outcomes which otherwise would not be available. The CFO should be aware of this change in process and ensure the change is one that positively impacts the bottom line, both in the near and long term. Nothing is more aggravating to a CFO than having to reinvest in technology without understanding why the previous investment did not work or why it did not last as long as proposed.”

4) CFOs can help ensure technology investment will lead to business improvement. In his blog Mr. Wilmsen writes “at the very heart of it, the CIO and the CFO have the same goal: to sustain, protect and grow the business. The CFO wants to make smart investments that enhance the value of the business. And the CIO knows that implementing new technologies with the right strategic partners can quickly impact revenue growth and enhance profitability, sometimes simultaneously. Aligning on project goals, timelines and projections increases the likelihood of a successful project, which is felt across the organization.”

In his conclusion Mr. Wilmsen states “the CFO’s involvement in the [technology] evaluation process is not done to alter the CIO’s responsibilities. Good CFOs know that IT is the CIO’s world, the one they live in every day. However, technology increasingly permeates all facets of the organization at a blistering pace. As a result, the opportunities associated with [new technologies and IT Services] begin to fall within the purview of the CFO. Because of this, a CFO who works as a partner in the process can make the job easier.

Hopefully more and more IT leaders will heed the CFOs request to “Help me help you.” And when they do, IT and Strategic Planning executives need to be prepared to work side-by-side with their CFO counterparts by delivering the IT transparency needed to make important decisions. Enterprise Portfolio Management (EPM) solutions can help deliver that transparency by showing CFOs how IT resources are spread across the enterprise, illustrating their connection to corporate goals, strategies ,and key business processes. EPM also enables leaders to identify which assets are needed and which are not, guiding them down a path to retire what’s not needed quickly and safely. In short, EPM solutions can yield the decision-making insights that help all executives help themselves.

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