Six views of business architecture

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Business & Mgmt

Published on July 14, 2012

Author: RichardVeryard



Presentation to the Business Analysis Forum, July 2012
Updated version presented to the Business Analysis Forum, October 2012

BUSINESS ANALYSISFORUMRichard Veryard July/October 2012Six Viewpoints ofBusinessArchitecture

MOTIVATIONVIEWWhat the business wantsCAPABILITYVIEWWhat the business doesCYBERNETICVIEWHow the business thinksACTIVITYVIEWHow the business doesKNOWEDGEVIEWWhat business knowsRESPONSIBILITYVIEWWhat the business isSix Views of Business

we wantOutcome OutcomeOutcomeOutcome-+-++££Motivation Viewpurpose, value &performance

Motivation View Corporate Goals andObjectives Nominal purpose Nominal strategy Business MotivationModel (BMM) Performance Outcomes Direct and Indirect Value Defacto purpose(POSIWID) Emergent strategy 360º Risk i* VPEC-TSingular PluralOMG: Strategic View

we canKey ActivitiesValuePropositionDistributionChannelsClientRelationshipsRevenueStructureDifferentiationIntegrationKey ResourcesCost StructureCapability Viewfunction, competence, capacityLoosely based on Osterwalder’s Business Canvas, but for a single capability

Capability View Operational Capabilities Business Components Hard Dependencies Coordination andManagement Capabilities Soft Dependencies Metacapabilities (e.g. thecapability to create newcapabilities)Singular PluralOMG: Capability View

we doUnit ofworkUnit ofworkUnit ofworkUnit ofworkEventActivity Viewevent, response, collaboration

Activity View OMG: Value Stream ViewTraditional ViewBusiness Process as Production LineNetwork ViewBusiness Process as Service NetworkLinear – designed as a series of steps Non-Linear – designed as a set of servicesChronological – steps executed in time-sequenceLogical – services put together in logicalcombinationsCumulative – adding value at each step Modulative– services modulating oneanotherSynchronous – each step dependent andwaiting upon the previous stepsAsynchronous – services executedindependentlyTransforming raw materials andcomponents into finished productTransmuting input services into outputservices

we knowgeneralization aggregation classificationHOTEL MOTELACCOMMODATIONMEAL TICKETTRAVEL &SUBSISTENCECHARGINGPOLICYTAXATIONRULEEXPENSE ITEMFrom complex world to simple schema … viaabstractionKnowledge Viewrecords, facts, patterns &ideas

Knowledge View Systems of Record (Formal Data) Systems of Engagement (Informal Information)Singular PluralOMG: Knowledge View

we mustTraditional PlatformConsumerRetailerFarmerManufacturerCatererConsumerRetailerFarmerManufacturerCaterer Economics of Scale, Scope  Economics of Alignment, GovernanceIndirectrelationshipsResponsibility Viewrole, delegation &accountability

Responsibility View Enterprise  Ecosystem Business as a PlatformOMG: Organization View

we learnfeedback, control, & governanceLearning& DevelopmentKnowledge& MemoryInformationGatheringDecision& PolicyWIGO(what is going on)Communication & CollaborationSense-MakingCybernetic Viewfeedback, control, &governance

Cybernetic View Goal-Directed Behaviour Single-Loop Learning (First Order Cybernetics) Intelligent Behaviour Double-Loop Learning (Second-OrderCybernetics)Singular PluralOMG: (omitted)

Which viewpoint reveals the differencesbetween these companies? Amazon Apple Facebook Google IBM Microsoft Oracle Salesforce Most of the activities are the same (, software development, R&D)So we may not see much differencefrom the Activity Viewpoint. Significant differences in the way theyposition themselves in relation to theirecosystems and learn from experience.So we may see significantdifferences from the Responsibilityor Cybernetic Viewpoint.

Levels of Abstraction in Business Architecture• A model of the end-to-end businessprocess, regardless of organizationalboundariesCompany-IndependentModel• A model of a collaborative businessprocess, regardless of the specificcollaboration partners.Partner-IndependentModel• A model of a collaborative processshowing the specific collaborationpartners and their contractual servicerelationships (including SLAs)Partner-DependentmodelOutsourcingStrategyOutsourcingNegotiation

Simple ComplexMotivation ViewWhat the BusinessWantsNominal purposeNominal strategyDefacto purposeEmergent strategyCapability ViewHow the Business DoesOperational capabilityHard dependenciesTop-down leadershipSociotechnical capability andcompetencySoft dependenciesEdge leadershipActivity ViewWhat the Business DoesLinear synchronous process(value chain)Asynchronous collaboration(value network)Knowledge ViewWhat the BusinessKnowsFormal information systems Informal information systemsSensemakingAppreciative systemsCybernetic ViewHow the BusinessThinksGoal-directed behaviourManagement by objectivesSingle-loop learningFirst order cybernetics (VSM)Second-order cybernetics(Bateson/Maturana)Double-loop and deutero learningResponsibilityViewHow the BusinessEnterprise Business-as-a-PlatformEcosystem

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