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This book presents a comprehensive overview of enterprise architecture management with a specific focus on the business aspects. While recent approaches to enterprise architecture management have dealt mainly with aspects of information technology, this book covers all areas of business architecture from business motivation and models to business execution. The book provides examples of how architectural thinking can be applied in these areas, thus combining different perspectives into a consistent whole. In-depth experiences from end-user organizations help readers to understand the abstract concepts of business architecture management and to form blueprints for their own professional approach. Business architecture professionals, researchers, and others working in the field of strategic business management will benefit from this comprehensive volume and its hands-on examples of successful business architecture management practices.



1. Introduction: Demystifying Business Architecture

Business architecture management is no longer a buzz phrase, it has become reality in many organizations. However, there is still some way ahead to further proliferate the business architecture concept and help grasp its meaning and use. To this end, following the outline of this book’s motivation and specific objectives, this chapter introduces a comprehensive business architecture framework, including business motivation, business model, and business execution as the main constituents. This framework represents this book’s foundation. Finally, this chapter explains the corresponding structure of this book and briefly introduces the individual contributions.
Daniel Simon

Architecting the Business Motivation and Business Model


2. An Architectural Approach to Strategizing: Structure and Orientation for Developing the Business Motivation

It has been widely acknowledged that effective strategizing in today’s competitive environment has become a challenging task and thus requires a deliberate approach. This has also driven calls for a greater cross-fertilization of the field with other disciplines. In particular, good practices from architecture management may be considered a promising means to provide strategists with a reasonable structure and orientation for developing the business motivation (including, e.g., goals, strategies, and principles). Against this background, this chapter illustrates the use of architectural thinking in strategy development. Based on a fictitious case study, it explains how the use of an architectural approach that provides a clear structure can help achieve higher consistency, effectiveness, completeness, and comprehensibility.
Daniel Simon

3. Corporate Strategy and Corporate Branding: Reference Frame and Examples of Integrated Corporate Strategic & Brand Management (CS&BM)

Strategy and brand are central constructs in the field of business management research and practice. But while strategic management has been in place for a long time, the holistic view on brand management has only stirred up some discussion in recent years. In this context, special attention is paid to the corporate brand, as this kind of brand has gained more significance in real life. In the process of corporate branding, it is crucially important that corporate strategy and brand strategy fall in line, as the brand is in this respect not a tool operated by the marketers but instead should be absorbed entirely within the identity of the corporation. So far, both constructs, i.e., strategy and brand, have been largely regarded as separate fields (and the latter even less been made a subject of an enterprise’s business architecture), which entails varying views of how corporate strategy and corporate brand mutually affect each other, eventually leading to the question: which is dominated by which? This article is aimed at establishing a core frame of reference of integrated “Corporate Strategic & Brand Management” (CS&BM) and gives explanations by demonstrating specific design perspectives. In line with architectural thinking, particular attention is paid to the interaction of corporate and brand identity, the strategic positioning as well as how to manage positioning at the brand touch points.
Holger J. Schmidt

4. From Business Motivation to Business Model and Beyond: A Customer Value-Driven Approach

Business architecture offers a comprehensive view of the business of an enterprise. This chapter explores how to reasonably link the different constituents of the business architecture, primarily at the level of business motivation and business model, while considering effects on the business execution. In particular, this chapter illustrates three main tools/approaches to help gain insights into an enterprise’s business motivation and business model (including the operating model): the “Value Disciplines,” the “Business Model Canvas,” and the 2-by-2 matrix of the operating model in terms of integration/standardization. It is demonstrated that these should not be considered and thus applied isolated from each other. Decisions with respect to the value strategy should be reflected in the business model, for example. Apple is used as an exemplary case to illustrate the application of the three tools. Specifically, it is shown how Apple’s (assumed) business motivation is reflected in the business model choices, and how these are in turn implemented at the business execution layer.
Jörg Heiß

Architecting the Business Capabilities


5. The Capability Management Process: Finding Your Way into Capability Engineering

Enterprises reach their goals by implementing strategies. Successful strategy implementation is affected by challenges that an enterprise has to face and overcome. Enterprises require specific capabilities in order to be able to implement strategies in an effective way and achieve desired results. Thus, the demand for a systematic capability management approach is growing. This chapter, therefore, introduces a general process for identifying, improving, and maintaining capabilities in an enterprise. This is based on an integrated capability approach that results from a number of investigations performed over the past years. Comprised of four building blocks, the capability management process represents a flexible “engineering” approach for capability catalog developers and designers.
Matthias Wißotzki

6. Using Capability Models for Strategic Alignment

In many enterprises there is a gap between strategies and their implementation by business processes and information systems supporting those processes. Capabilities can bridge this gap by offering a common language (for business and IT) and a means to systematically map strategy (expressed in business models) to capabilities, which are then implemented using, e.g., people, business processes, and also information systems. Therefore, capabilities form a central element in business architecture management, easing the execution of a business strategy as expressed, e.g., in various forms of business model canvases. This chapter explains the general concept of capabilities. These can be divided into so-called operational capabilities, which are the ones to implement and execute a strategy, and dynamic capabilities, which are needed to formulate business models, to develop strategies, and to configure the right set of operational capabilities. The main part of the chapter deals with methods that help manage a portfolio of operational capabilities, such as so-called heat mapping, or the use of capability footprints, and provides hints on how to obtain a capability map for an enterprise in some given industry.
Wolfgang Keller

Architecting Business Capability Realization


7. Can Culture Be Designed?

Culture is widely recognized as one of the prime foundations of a successful business, yet it is still poorly understood, especially as an element of business architecture management. This chapter explores the following questions:
What is culture and why is it important?
Is there such a thing as an inherently “good” or “bad” culture?
What is the role of culture in change?
Can culture be designed?
If these things are possible, how might they be achieved?
This chapter also introduces a diagnostic tool, the “Culture Map”―designed to help groups of all sizes improve their understanding of their culture, diagnose issues and work toward resolutions, along with some instructions for its use.
David W. Gray

8. From Value Chain to Value Network: Reinventing the Enterprise in the Light of Technology Forces

Cloud, mobile, social, and analytics technologies are changing the environment in which today’s industries operate. It takes only few employees to start a globally scalable business. It may be that such startups are currently still in their infant phase. But what will happen if these new enterprises achieve massive cost reduction and flexibility advantages over the coming years due to new technology application? It is clear that current enterprises have to adapt to the revolution initialized by the new technologies. How can existing enterprises respond to the new entrants who use the latest technology to their advantage? Should they just copy technology? Or should they take a knowledge-based approach and ask the question “what special know-how do they have that new entrants do not have?” What would be the “new” competitive advantage of today’s enterprises? To answer these questions, this chapter analyzes four general business architecture views (value chain, process view, information view, and structural view) of an example financial service company. In particular, it discusses the impact of technology-driven changes on these four views. Based on this analysis, it proposes a scenario that could help financial service companies to respond to technology-driven changes. This scenario is based on process management techniques and the application of domain-specific industry standards. The combination of process management with elements of information architecture can act as a catalyst in transforming value chain oriented enterprises over to value network-oriented enterprises, which focus on orchestration of value creation activities in the value network. Rather than fighting new entrants in their strength areas (technology), existing enterprises can use their business process know-how for reconfiguring their business to adapt to changed external circumstances.
Tarmo Ploom

9. Liberate Your Business Potential via Actionable Patterns

Business processes and organizational structures are integral parts of the business architecture. In fact, they are essential when it comes to the configuration of business capabilities. Although the core business processes and structures of each enterprise are unique, they are “constructed” from typical business working practices, e.g., delegation of authority, group approval, four-eye check, etc. When these working practices are implemented in an optimal manner, this leads to less stress, less risk, higher performance, higher security, and higher predictability of results. This chapter presents typical business working practices as formalized and optimized actionable patterns (executable, proven, easy-to-deploy, and reusable working methods).
Alexander Samarin

10. Business Architecture for Change Program Design and Planning

It is an established practice of program and project management to plan based on product breakdown structures or rather to decompose the end product into individual deliverables. Following this common practice we consider how the key elements of our product (the changed business), described by the business architecture can and should be applied in designing and managing business change. In particular, we address the challenge of identifying and managing dependencies in large complex programs—something classical program management methodologies leave as an “exercise for the reader.” The approach employs key business architecture deliverables that define the target architecture as well as those documenting the current architecture. In applying key aspects of the business architecture, such as capabilities, in program planning we seek to ensure alignment in various aspects of change across the organization and its resources, including IT systems. Our approach is a synthesis of project/program management and architecture practices. The approach described is based on the experience of taking an architecture-driven approach to a major business change program (Sprott 2008).
Adrian P. Apthorp

Modeling and Measuring


11. Building Agile Enterprises: A Model-Based Approach to Rapid Realization of Business Value

Agility is a key ability of enterprises, but agility does not come for free. Organizations need to choose where to focus their efforts in becoming more agile. This chapter describes an integrated approach for the development of agile enterprises, based on sound engineering principles. This approach uses various types of models and analysis instruments from the business architecture field. Further, this chapter shows how virtualization techniques can contribute to business agility. This is against the background of an increased focus on “data as an asset”—independent of the systems that currently hold the data—that represents an important development for many organizations. As a matter of fact, many organizations also face increased reporting requirements (due to ever changing legislation, for example). Finally, having agility on a per-system basis is not enough, because you run the risk of building agile silos. The role of architecture in fostering enterprise-wide coherence and in bridging the gap between strategy and execution thus is the final topic of this chapter.
Marc M. Lankhorst, Bas van Gils

12. Effectively Modeling Your Architecture

Enterprise architecture management is to a large extent about managing complexity; this holds for both the business and the IT architecture level. As a discipline, it has tended to focus on creating simplicity, such as embodied by principles, guidelines, and simplified models of what is or what is to be. This chapter is about the why and how of setting up a broader and deeper role of modeling in enterprise architecture management. In particular, it presents ways (specifically languages) to model the business architecture in its current state at a reasonable level of detail. It also discusses the role of modeling in future state planning.
Gerben Wierda

13. Business Architecture Quantified: How to Measure Business Complexity

Complexity of both business and IT is one of the most frequently discussed topics in strategic management and enterprise architecture today. For many business leaders, complexity is of central concern due to its assumed impacts on operating costs, organizational agility, and operational risks. In fact, complexity growth may be considered one of the major drivers for misalignment. As a consequence, organizations are increasingly forced to manage the complexity of their business and IT actively. However, existing qualitative methods fall short of supporting this on a larger scale. Quantitative measures may be considered a promising means to assess and manage the complexity of business and IT architectures in a systematic and universal way. This chapter presents a generic framework for conceptualizing and measuring enterprise architecture complexity and applies it to the domain of business architecture. Using this book’s business architecture framework as a reference, it is shown how business complexity can be operationalized and quantified using well-defined and practice-proven measures.
Christian Schmidt

Guidelines for Successful Implementation


14. Business Architectures for Niche-Market Enterprises

Much of the current focus of attention for business architecture has been on new startups or on existing large enterprises, but there is also a great deal that can be usefully learnt in applying the same principles to the needs of smaller niche-market businesses and organizations. This chapter describes a real-life case study with a small restaurant chain in Central America that wanted to expand outward into other cities in its region. The brief engagement covered a broad scope from high-level strategy all the way down to day-to-day operations, and, working with the principals of the business, delivered explicit action plans that gave detailed guidance for a broad range of themes such as business models, business alliances, marketing, advertising, building layout, workflows, performance metrics, recruitment, and training. The chapter ends with some lessons learned about what does and does not work in this type of business architecture engagement, what to do about these in further real-world practice, and some suggestions on how to apply these techniques in other forms of business architecture work.
Tom S. Graves

15. Bringing Business Architecture to Life: How to Establish Business Architecture Practices in Your Organization

Today, business architecture management (BAM) is widely acknowledged as an effective means for organizations to cope with rapidly changing business environments and increasing levels of competition. However, establishing BAM practices in an organization represents a major organizational and cultural change that needs to be carefully planned and implemented. This chapter presents a method for introducing BAM practices and illustrates it by some examples. The method is based on BAM concepts itself. As such, it basically follows the business architecture framework described in the introductory chapter. The method may be used as a guideline by organizations wishing to exploit the full potential of BAM for the sake of sustained value creation.
Christian Schmidt, Daniel Simon


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