PART 1: INTRODUCTION. Purpose of the BIZBOK Guide. What is Business Architecture?

Transcription

1 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) PART 1: INTRODUCTION Purpse f the BIZBOK Guide A Guide t the Business Architecture Bdy f Knwledge (the BIZBOK Guide) prvides a practical guide fr business architecture practitiners and individuals wh wish t use business architecture t address business challenges. This practical guide cmes in the frm f best practices, gleaned frm numerus cmpanies and business architecture leaders. As practitiners f business architecture, we understand the imprtance f having a cmprehensive yet user-friendly handbk fr the grwing numbers f rganizatins embracing this imprtant discipline. The BIZBOK Guide benefits rganizatins at every stage f the business architecture practice. With a fcus n practitiners, the BIZBOK Guide is geared at advancing rganizatins that have already cmmitted at least sme resurces twards business architecture. Organizatins just getting started can use it as guide t establishing a fundatin fr a slid business architecture practice. Fr thse rganizatins with an established business architecture practice, it enables deplyment teams t slidify best practices while incrprating aspects f business architecture that may have been underemphasized t this pint in time. The BIZBOK Guide prvides a cmplete picture f business architecture, tying tgether varius cncepts, disciplines, and best practices int an verall framewrk. In additin, the BIZBOK Guide has the capacity t incrprate and leverage a wide range f business practices and emerging disciplines. As a result, it establishes the standard fr building, deplying, and leveraging business architecture within an rganizatin. The BIZBOK Guide is practitinerdriven, representing a cllective and grwing bdy f cntributins frm business architecture practitiners acrss a variety f industries wrldwide. What is Business Architecture? Business architecture is defined as A blueprint f the enterprise that prvides a cmmn understanding f the rganizatin and is used t align strategic bjectives and tactical demands." 1 This definitin has been vetted repeatedly by multiple standards cmmittees and practitiners and cntinues t stand the test f time. If we decmpse the definitin, it has several imprtant elements that create the fundatin fr business architecture and related best practices. The mst fundamental aspect f business architecture is that it represents a business. A business des nt begin r end at the bunds f the enterprise. Business architecture must, therefre, be able t represent prtins f a business that have been utsurced as well as stakehlder interests. Versin Cpyright 2013 Business Architecture Guild

2 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) In additin, varius aspects f a real wrld business must be represented in sme abstract frmat. In business architecture, we call these abstractins. Figure 1.1 depicts the high-level dmains within a business represented within the business architecture. Why? What? Custmers, Partners & Cmpetitrs Wh? & Where? Why? Plicies, Rules, Regulatins Capabilities Visin, Strategies & Tactics Wh? & Where? Organizatin Infrmatin What? What? Prducts & Services Value Streams Initiatives & Prjects Hw? Hw? Hw Well? Metrics & Measures Decisins & Events Business Architecture When? Figure 1.1: Aspects f the Business Represented by Business Architecture Dmains represented in figure 1.1 are related t each ther in varius ways. A business is brken dwn int business units, which have certain capabilities. Capabilities are enabled thrugh a series f value streams, which require infrmatin. Organizatin, capability, value, and infrmatin cmprise the fundatin f the business architecture. This cre is represented by the inner circle in figure 1.1. These fur categries are cnsidered fundatinal because they are relatively stable cmpared t ther aspects f the business. Fr example, a ne hundred year ld insurance cmpany wuld have had similar capabilities as it des tday: Custmer Management, Plicy Management, and Claims Management. While these capabilities wuld nt have had autmatin ne hundred years ag, they still existed, alng with certain business units and value streams such as Prcess Claim. The cmpany wuld have als used similar infrmatin such as Custmer, Plicy, r Claim. The extended view f the business architecture, shwn in the uter rim f the circle in figure 1.1, depicts aspects f the business that change mre frequently but serve t extend the Versin Cpyright 2013 Business Architecture Guild

3 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) business architecture in a variety f ways. Custmers and cmpetitrs may have existed ne hundred years ag, but it is quite likely that they were very different frm tday s custmers and cmpetitrs. Similarly, the prducts being delivered may change quite frequently alng with decisins, strategies, tactics, plicies, and regulatins. These variatins are why the uter rim f figure 1.1 is separated frm the cre. Blueprint sectins 2.2 thrugh 2.5 reflect the fcus n building ut the cre, while the remaining sectins within part 2 represent extensins t the business architecture. Business architecture represents real wrld aspects f a business, alng with hw they interact, t help executives answer cmmnly asked questins: wh, what, where, when, why, and hw. Answers t these questins, derived frm the business architecture, are used t develp plans, and make and implement business decisins. This is the essence f business architecture and a fundatin fr the material presented within the BIZBOK Guide. Of curse, representing this infrmatin is ne thing, making it useful t individuals wh need nly a prtin f this infrmatin at a given time and have little time r patience t srt thrugh the details intrduces anther aspect f business architecture: blueprints. Blueprints are abstract representatins f reality. The cncept f blueprints represents a wide variety f business viewpints. There are building blueprints, ship blueprints, and, in ur discussin, business blueprints. A given blueprint is ne view f the business. There are many types f business blueprints, as shwn in the examples in figure 1.2, that allw us t visualize the business frm a variety f perspectives. The blueprints shwn in figure 1.2 represent a sampling f cmmnly used business viewpints. Each blueprint prvides management with infrmatin abut a given aspect f the business within a specific cntext. Fr example, the Balanced Screcard, shwn in figure 1.2, prvides management with measures against certain business gals and bjectives. One imprtant difference between business architecture prduced versins f balanced screcards, dashbards, and related blueprints frm traditinal financial reprting is that business architecture fcuses n the essence, structure, and verall transparency f the business, nt n financial perfrmance. Just as a blueprint f a ship wuld nt prvide statistics n tp speed attained n an Atlantic crssing r average speed per crssing, the business architecture des nt prvide financial analytics. Financial reprting systems will cntinue t prduce financial perfrmance results fr business teams. The business architecture wuld, hwever, identify hw effective the rganizatin is in building financial analytics and where it can imprve this capability frm a hlistic perspective. Versin Cpyright 2013 Business Architecture Guild

4 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) Figure 1.2: Business Architecture Represented by Business Blueprints Business architecture pens up an entirely new level f business transparency that allws management teams t streamline planning, evaluate the value f funded initiatives against strategies, and craft mre effective transfrmatin radmaps. This is pssible because business architecture blueprints stem frm a cmmn vcabulary, standardized framewrk, and shared business knwledgebase. This means that dashbard results align in practice with value streams, capabilities, infrmatin views, gals, and ther business viewpints. As a result, executives, managers, planning teams, analysts, and ther stakehlders see the business thrugh a cmmn set f lenses eliminating much f the cnfusin ften fund acrss business units, strategy sessins, and prjects. The BIZBOK Guide walks practitiners thrugh the creatin and use f these business blueprints including rganizatinal blueprints, capability maps, value streams, infrmatin assets, and ther viewpints that play a rle in the practice f business architecture. The BIZBOK Guide als prvides insights int hw t use these blueprints individually and cllectively t achieve business gals thrugh an verall framewrk. Versin Cpyright 2013 Business Architecture Guild

5 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) Business Architecture Framewrk Basic business architecture cncepts and the ability t visualize this infrmatin in a variety f ways is nly part f the business architecture stry. Organizing this infrmatin in useful ways and being able t relate and cmbine these cncepts requires a fundatinal framewrk, shwn in figure 1.3. The framewrk cncept des nt impse prescriptive r restrictive cncepts int the practice f business architecture. Rather, the framewrk prvides a fundatin that rganizatins can build upn and custmize based n unique business architecture requirements, driven by real wrld challenges. Business Architecture Blueprints Business Architecture Scenaris Figure 1.3: The Business Architecture Framewrk There are three imprtant cmpnents within the business architecture framewrk: business blueprints, business architecture scenaris, and the business architecture knwledgebase. As we discussed, business blueprints deliver business transparency that enables and streamlines business transfrmatin acrss business units, capabilities, and stakehlders. The degree f transparency delivered by these blueprints rarely exists in many rganizatins tday. As a result, many planning sessins miss essential understanding f hw t maximize slutinrelated investments while ensuring that ne business unit s success des nt create prblems fr the enterprise as a whle. Fr example, cnsider the cmpany that was creating multiple, cmpeting enrllment slutins fr the same custmer base acrss multiple prduct lines. Each prject culd have succeeded in principle, yet created mre cmplexity and dissatisfactin acrss the custmer base. Business architecture prvides the transparency t discver these Versin Cpyright 2013 Business Architecture Guild

6 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) issues in advance, befre mney and gd will are squandered. Essential business architecture blueprint building and usage are discussed in detail in part 2 f the BIZBOK Guide. The framewrk als incrprates the cncept f business architecture scenaris, which prvide business transparency n specific business initiatives. Business architecture is applied differently based n the type f scenari at hand. Fr example, a business team invlved in a merger and acquisitin wuld require different infrmatin than anther team cnsidering hw t stem custmer attritin. Applying business architecture thrugh varius business scenaris, thereby leveraging blueprint views derived frm the business architecture knwledgebase, enables business teams t create and deply a wide variety f transfrmatin radmaps. Because this apprach is based n a cmmn view f the business acrss business units, it enables imprved executive spnsrship and mre sustainable funding structures. Scenari tpics cvered in the BIZBOK Guide include: Investment Analysis Shift t Custmer Centric Business Mdel Merger & Acquisitin Analysis New Prduct/Service Rllut Glbalizatin Business Capability Outsurcing Supply Chain Streamlining Divestiture Regulatry Cmpliance Change Management Operatinal Cst Reductin Jint Venture Deplyment These business architecture scenaris define the cllective set f initiatives, prgrams, and prjects that leverage business architecture. One imprtant aspect f every scenari is that f a suggested radmap fr that particular scenari. Business architecture scenari appraches are discussed in detail in part 4 f the BIZBOK Guide. The business architecture knwledgebase is used t stre the infrmatin abut the business, rganized in cncise ways that are custmized t a given rganizatin s envirnment. Fr example, crpratins have divisins and departments while gvernments may use different terminlgy. Hw the knwledgebase is rganized dictates, in part, hw businesses can be viewed. There are generic appraches t knwledgebase structure as well as rganizatinspecific appraches. Fr example, a gvernment agency wuld have unique rganizatinal structures in cmparisn t a hspital r shipping cmpany. Knwledgebase management is Versin Cpyright 2013 Business Architecture Guild

7 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) discussed in part 5 f the BIZBOK Guide and is als incrprated int varius blueprint discussins. Business Architecture Principles Business architecture is principle-driven. A principle is an agreed upn truth that can guide ne s reasning. The principle-driven apprach ffers practitiners a wide degree f latitude in the practice f establishing and leveraging business architecture. Each majr sectin has a set f principles that guide actins assciated with individual blueprints and related practice areas. Cre principles that apply t business architecture as a whle are listed belw: 1. Business architecture is abut the business. 2. Business architecture s scpe is the scpe f the business. 3. Business architecture is nt prescriptive. 4. Business architecture is iterative. 5. Business architecture is reusable. 6. Business architecture is nt abut the deliverables. We emphasize that a principle-based apprach t business architecture leaves practitiners with the ptin t emply a variety f methds, visualizatin techniques, tls, and gvernance cncepts. The cmmn thread is that each apprach adheres t a fundatinal set f principles that aligns the practice f business architecture withut dictating hw the wrk is dne r restricting the creativity f the practitiner. While using varius prtins f the BIZBOK Guide, lk fr the principles sectin that serves as a fundatin fr best practices in that particular tpic area. Business Architecture Value Stream We use a cmmn business architecture blueprint, the value stream, t define the majr stages invlved in delivering value t the cllective set f business stakehlders benefitting frm business architecture. In keeping with an imprtant business architecture mapping cncept, we have additinally identified the essential capabilities that enable each stage f the value stream. While capabilities define what a business des, the value stream is an end-t-end cllectin f activities that deliver value t internal and external stakehlders. In figure 1.4, we utline six stages f the business architecture value stream. It is imprtant t nte that the value stream is reentered every time a stakehlder triggers the need fr a business architecture assisted slutin. T prvide additinal insights int this value stream, we have mapped a series f capabilities t each stage that identify what may be dne at each stage t achieve stakehlder value. All value stream stages and capabilities are defined in appendix B.1. Versin Cpyright 2013 Business Architecture Guild

8 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) Figure 1.4: The Business Architecture Value Stream The first stage f the value stream in figure 1.4 stresses the imprtance f establishing business mtivatins fr use f business architecture. The secnd stage perfrms a needs analysis and determines the rle business architecture will play ging frward, including scenari fcus. Using business architecture, the third stage establishes a clear view f the business as it relates t the current state f the business frm viewpints relevant t the scenari at hand. Stage fur uses business architecture and related business disciplines t architect business slutins based n business pririties. The fifth stage defines initiatives required t achieve the gals set in stage ne and implement the slutins crafted in stage fur. The last stage delivers the ultimate degree f stakehlder value a deplyed slutin and cnfirmatin f success. Nte that while there is a capability fr addressing business-driven IT architecture definitin under stage fur, this value stream is nt meant t encmpass all aspects f a sftware develpment slutin. Inclusin f this capability is merely meant t demnstrate that business Versin Cpyright 2013 Business Architecture Guild

9 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) slutins requiring IT architecture planning and definitin wuld d s within this stage. Business/IT alignment cncepts are incrprated within part 6 f the BIZBOK Guide. The value stream in figure 1.4 is nt a ne-time event but ne that will happen many times ver based n business issues that arise. In ther wrds, this is a recurring value stream that rganizatins will be able t apply fr years int the future as new and unique challenges arise. The value stream leverages the three key aspects f the business architecture framewrk: blueprints, scenaris, and the knwledgebase. This value stream cncept is emplyed acrss varius business architecture scenaris detailed in part 4. The BIZBOK Guide Cntent Summary The BIZBOK Guide is rganized int nine majr parts. A part may be divided int several sectins. An verview f the BIZBOK Guide is shwn belw. Part 1: Intrductin Part 1 verviews the BIZBOK Guide as incrprated herein. Part 2: Business Architecture Blueprints Part 2 includes detailed mapping discussin f cmmn business blueprints alng with guidelines fr hw t use these blueprints in practice. Sectin 2.1: Business Strategy Mapping Discusses hw business strategy and bjectives play a rle within business architecture. Sectin 2.2: Capability Mapping Details the definitin, benefits, develpment, and use f business capabilities in planning and ther business areas. The sectin includes building the capability map and mapping capabilities t ther aspects f the business. Sectin 2.3: Organizatin Mapping Discusses mapping rganizatinal structures int the business architecture and cvers business unit mapping and inclusin f varius stakehlders int the business architecture. Sectin 2.4: Value Mapping Outlines the definitin, benefits, develpment, and use f value maps within the cntext f business architecture. Als included are detailed appraches n value stream mapping and the use f value maps within the cntext f business planning and transfrmatin. Sectin 2.5: Infrmatin Mapping Infrmatin is the backbne f the business, and this sectin prvides a business view f infrmatin and its rle in business architecture. Sectin 2.6: Initiative Mapping Discusses appraches fr visualizing business initiatives within the cntext f business architecture. Versin Cpyright 2013 Business Architecture Guild

10 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) Sectin 2.7: Prduct Mapping Maps a business s prducts (and services), and crss-maps them t ther aspects f business architecture. Sectin 2.8: Stakehlder Mapping The stakehlder cncept is an imprtant part f business architecture, which this sectin maps t value streams. Part 3: Business Architecture Practice Part 3 prvides perspectives n a wide variety f business architecture practices, like getting started, gvernance, business mdel mapping, mapping t related business disciplines, and tling ptins. Sectin 3.1: Cmmn Appraches fr Getting Started Discusses hw t get started with business architecture and utlines a typical timeline frm business planning thrugh deplyment. Sectin 3.2: Business Architecture Gvernance Incrprates best practices fr gverning business architecture within an enterprise. Tpics include team alignment, rle definitin, and cllabrative gvernance acrss a business. Sectin 3.3: Business Architecture and Business Mdel Framewrks A business mdel describes the ratinale f hw an rganizatin creates, delivers, and captures value, and this sectin discusses hw t use business architecture t turn business mdels int actinable results. Sectin 3.4: Business Architecture and Business Prcess Mdeling and Management Discusses the relatinship between business architecture and business prcess management. Sectin 3.5: Business Architecture and Case Management Case management is an imprtant business design cncept, and this sectin discusses hw business architecture prvides a framewrk fr delivering case management slutins in practice. Sectin 3.6: Business Architecture and Lean Six Sigma Lean Six Sigma is a widely used discipline fr imprving business perfrmance, and this sectin prvides guidelines fr aligning Lean Six Sigma t business architecture. Sectin 3.7: Business Architecture and Business Perfrmance Management Business perfrmance management enables a business t measure and reprt n behavirs, results, and successes. This sectin intrduces the rle f business architecture in measuring and imprving business perfrmance. Sectin 3.8: Business Architecture Tling Optins Discusses business architecture tl categries that may be leveraged t enable and imprve business architecture blueprint creatin and related practices. Versin Cpyright 2013 Business Architecture Guild

11 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) Sectin 3.9: Business Architecture Maturity Mdel Prvides an verview f a framewrk fr evaluating the verall maturity f a business architecture practice and deplyment. It als prvides a summary perspective f business architecture maturity and intrduces Appendix B.3, which cntains the cmplete Business Architecture Maturity Mdel. Part 4: Business Architecture Scenaris Part 4 fcuses n best practices fr addressing cmmn business scenaris, including the list identified in this sectin and additinal scenaris t be added ver time. Part 5: The Business Architecture Knwledgebase Part 5 discusses hw t rganize and manage business architecture cncepts and artifacts using a frmal mapping apprach. Part 6: Business Architecture and IT Architecture Alignment Part 6 discusses varius appraches fr aligning business architecture and IT architecture in rder t deliver IT slutins that mre clsely align t the needs f the business. Sectin 6.1: Business Architecture and IT Architecture Alignment Overview Intrduces the verall apprach and cntext fr business architecture / IT architecture alignment, including a summary f mapping appraches. Sectin 6.2: Business Architecture and Enterprise Architecture Framewrk Alignment Prvides guidelines fr using business architecture within the cntext f enterprise architecture, with a specific fcus n the Zachman framewrk and the TOGAF framewrk. Sectin 6.3: Business Architecture and Requirements Alignment Business architecture can infrm and imprve business requirements analysis, and this sectin intrduces this cncept and related apprach. Sectin 6.4: Capability and Applicatin Prtfli Management Prvides a business value riented apprach t applicatin prtfli management. Sectin 6.5: Business Architecture and SOA Alignment Discusses the use f business capabilities in infrming and articulating service-riented architecture frm a business perspective. Sectin 6.6: Business Infrmatin and IT Architecture Alignment Outlines hw business infrmatin, as defined in sectin 2.5, impacts the evlutin f IT data and applicatin architectures. Sectin 6.7: Business Architecture and IT Architecture Transfrmatin Business/IT architecture transfrmatin is the culminatin f business Versin Cpyright 2013 Business Architecture Guild

12 A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) architecture / IT architecture alignment, and this sectin discusses hw rganizatins can achieve business-driven, business/it architecture transfrmatin. Part 7: Business Architecture Case Studies As the Business Architecture Guild cllects real wrld examples and lessns learned frm using business architecture t slve business issues, we will shwcase them in this sectin. Part 8: Industry Reference Mdels Part 8 ffers selected industry reference mdels that may be used as a surce f infrmatin fr building business architecture. Appendix A: Glssary Appendix B.1: Business Architecture Value Stream and Capability Definitins Appendix B.2: Business Architecture Rles and Cmpetencies Appendix B.3: Business Architecture Maturity Mdel Appendix C: Study Questins Appendix D: Versin Histry Appendix E: Editrial Bard and Cntributrs The Business Architecture Guild A Guide t the Business Architecture Bdy f Knwledge (BIZBOK Guide) will evlve t incrprate an evlving set f best practices emerging in the field. This will be accmplished thrugh membership participatin in the Business Architecture Guild, a nt-fr-prfit rganizatin f business architecture practitiners. The Guild is dedicated t advancing the prfessin f business architecture; the BIZBOK Guide represents the cnsensus, frmalizatin, and dcumentatin f best practices and knwledge frm active members f the Guild. We appreciate cmments, crrectins, and new cntributins. Fr mre infrmatin, g t 1 OMG Business Architecture Special Interest Grup, and Business Architecture Institute, Versin Cpyright 2013 Business Architecture Guild