2. Business Architecture: The Strategic Foundation

 

At the heart of a successful Enterprise Architecture lies Business Architecture, which focuses on defining and structuring the elements that drive an organization’s strategic goals and objectives. Business Architecture ensures that an organization’s operations and IT resources align with its objectives. Below are the key components of Business Architecture:

 

     2.1 Strategic Goals and Objectives

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Strategic goals and objectives are the foundation of any enterprise. They define what the organization aims to achieve in the short and long term. These goals guide decision-making and resource allocation across all levels of the organization. EA ensures that these objectives are clearly articulated and that all subsequent architectural elements align with the ambitions of the company.

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     2.2 Value Streams

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Value streams, according to TOGAF, represent “an end-to-end collection of value-adding activities that create an overall result for a customer, stakeholder, or end user” from start to finish[i]. These streams highlight the activities required to achieve a specific series of activities that create value for a customer or stakeholder by delivering a value proposition, from start to finish. A value proposition is a commitment to deliver value to the triggering stakeholder (usually a client), who has the conviction that at least one benefit will be received after purchase. A value proposition is made of one or several products or services.

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By mapping value streams, organizations can identify inefficiencies, streamline operations, and foremost prioritize investments in areas that maximize profitability and value delivery to customers. Value mapping consists mostly of elaborating precisely the value stages of a value stream with their participating stakeholders, enabling capabilities, and required information types.

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     2.3 Business Capabilities

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According to TOGAF, a business capability is “a particular ability that a business may possess or exchange to achieve a specific purpose.[i]” Business capabilities represent the key functions or competencies required for the organization to operate successfully. Examples include customer relationship management, supply chain optimization, and financial planning.

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Capability mapping involves categorizing and identifying these capabilities from level one to lower levels. It also provides a structured view of how business capabilities need to align with the business units of an organization, value streams, supporting applications, operationalizing processes, used information types, enabling products, initiatives/projects, requirements, strategies/tactics, and stakeholders. Capability mapping is finally essential in highlighting gaps and guiding project investments in technology or process improvements.

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     2.4 Information Types

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Information is the lifeblood of modern organizations. According to TOGAF, information types are “any communication or representation of facts, data, or opinions, in any medium or form, including textual, numerical, graphic, cartographic, narrative, or audio-visual forms.[i]” Identifying and understanding the information types required to provide value is critical. These information types include customer data, operational metrics, market research, and regulatory compliance documents.

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Information mapping allows the alignment of information types to value streams, business capabilities, and processes. Like business capabilities, information types need to be classified from level one to lower levels. Finally, information mapping allows the identification of the right information for the right stakeholders at the right time, to provide value and enable informed decision-making and efficient operations.

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     2.5 Products and Services

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A product offered by an organization is a good, an idea, a method, information, an object, or a service conceived as a result of a process and serves a need or satisfies a want of a customer. The products and services offered by an organization are the tangible or intangible outputs that constitute a value proposition delivered to the various customer segments of an organization. These offerings are central to fulfilling the organization’s mission and achieving its strategic objectives.

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Product architecture defines the structure of products and services, including their components, delivery mechanisms, and integration points with other offerings. This architecture ensures consistency, quality, and scalability.

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     2.6 Business Processes

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A business process is a “collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a particular client or clients.[ii]” the detailed activities and workflows that operationalize the execution of business capabilities. They translate high-level strategies into actionable steps.

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Process architecture provides a blueprint for how business processes are designed, monitored, optimized, and to some extent automated. It ensures that processes are aligned with the business capabilities of an organization driving efficiency and effectiveness.

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3. Information Technology Architecture: The Operational Enabler

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Information Technology (IT) Architecture forms the backbone of operational execution. It focuses on translating the requirements defined in Business Architecture into technical solutions. Below are the key elements of IT Architecture:

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     3.1 Functional Architecture​

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In computer programming, a function is “a callable unit of software logic that has a well-defined interface and behavior and can be invoked multiple times”[iii]. Applications and IT systems will include several functions or functionalities. IT systems will need to perform specific functions to support one or several business capabilities.

Functional architecture outlines the design of these functionalities. It ensures that applications and IT systems are designed to support business capabilities and meet business needs, enabling seamless integration with other architectural layers.

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     3.2 Application Architecture

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In information technology, “an application (app), an application program, or an application software is a computer device software program developed to assist people and/or an organization in performing an activity”[iv]. They range from customer relationship management tools to enterprise resource planning systems.

Application architecture defines the structure and relationships of applications within the enterprise. It ensures that applications are scalable, secure, support business capabilities, and align with business requirements.

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     3.3 Logical Data Architecture

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“A logical data model is a visual representation of an organization's data structure and relationships between data elements”[v]. It focuses on how data is structured, categorized, and used across the organization. A logical data model serves as a technology-agnostic blueprint, designed to guide the creation of physical data models.

Logical data architecture provides a framework for organizing and managing data used by applications. It ensures that data is consistent, accurate, and accessible to support decision-making.

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     3.4 Microservices and Software Architecture

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Software components are the building blocks of IT systems. They include reusable modules, libraries, and services that perform specific functions.

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Modern enterprises increasingly adopt a microservices architecture, which breaks down software into smaller, independent components. This approach enhances scalability, agility, and resilience, enabling organizations to respond quickly to changing business needs.

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     3.5 Integration Architecture​

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Integration platforms connect disparate systems, enabling seamless data exchange and interoperability. These platforms include APIs, middleware, and other technologies that facilitate communication between applications.

“An integration architecture consists of the interfaces between systems and the data model of the interfaces”[vi]. Integration architecture focuses on designing APIs and other mechanisms to ensure that systems can work together effectively. This architecture is critical for achieving a unified and efficient IT ecosystem.

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     3.6 Physical Data Architecture

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Data is a foundational element of IT architecture. It encompasses all the information that an organization collects, processes, and stores.

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“Physical data architecture is part of a technology plan that involves the tangible elements used to implement a data architecture design”[vii]. It defines how data is stored, accessed, and managed at a technical level. It includes considerations such as database design, storage solutions, and data security.

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     3.7 Infrastructure / Network / Cloud Architecture

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The infrastructure layer provides the hardware, networks, and platforms required to support applications and data. Cloud computing has become a key enabler of modern infrastructure, offering scalability, flexibility, and cost-efficiency.

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Infrastructure and network architecture define the design of the underlying technical environment. This architecture ensures that infrastructure meets performance, reliability, and security requirements.

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4. Benefits of the Full Spectrum of Enterprise Architecture

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Organizations that adopt the full spectrum of Enterprise Architecture can realize numerous benefits, including:

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1. Strategic Alignment: Ensuring that all business and IT activities align with strategic goals.

2. Operational Efficiency: Streamlining processes and eliminating redundancies.

3. Enhanced Agility: Responding quickly to market changes or technological advancements.

4. Improved Decision-Making: Leveraging accurate, accessible data to make informed decisions.

5. Cost Savings: Optimizing resource allocation and reducing waste.

 

 

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In brief, the full spectrum of Enterprise Architecture provides a holistic framework for aligning business strategies with IT resources. By systematically addressing the elements of Business Architecture and IT Architecture, organizations can ensure that their operations are efficient, effective, and aligned with their strategic objectives. This comprehensive approach enables businesses to innovate, adapt, and thrive in a rapidly changing environment. Whether optimizing value streams, mapping capabilities, or designing IT systems, the principles of Enterprise Architecture serve as a guiding compass for organizational success.

 

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[i] TOGAF definitions: https://pubs.opengroup.org/architecture/togaf9-doc/arch/chap03.html#tag_03_81

[ii] Business process definition: https://en.wikipedia.org/wiki/Business_process

[iii] Function definition: https://en.wikipedia.org/wiki/Function_(computer_programming)

[iv] Application definition: https://en.wikipedia.org/wiki/Application_software#

[v] Logical data model definition: https://www.gooddata.com/blog/how-build-logical-data-models-scale-analytical-applications/

[vi] Integration architecture definition: https://www.sciencedirect.com/topics/computer-science/integration-architecture

[vii] Physical data architecture: https://en.wikipedia.org/wiki/Data_architecture#