Benefits of a Comprehensive Methodology Creating a Well-Structured Business Architecture

Benefits of a Comprehensive Methodology Creating a Well-Structured Business Architecture

Copyright: © 2022 |Pages: 17
DOI: 10.4018/978-1-7998-8073-8.ch009
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Abstract

This book has reviewed the literature concerning the role of management in business development and several papers on available tools and techniques for research of the business resources and the external factors impacting the organisation, together with tools and techniques used to analyse information systems. A particular note was made of recommendations for seeking out competitive advantage and the omissions and limitations expressed by the authors of the current research and analysis methods. There are arguments for combining specific tools and techniques into a single methodology. This chapter presents the benefits to business managers and development staff for using the methodology and the documentation produced and from having a well-structured business architecture. The advantages of having a holistic view of the organisation and its competitive position concerning the external forces are reviewed in relation to due diligence, transparency and good governance, and risk assessment and planning.
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Introduction

Many benefits accrue to developing the individual features of the critical analysis methodology and from the developed business architecture. It is helpful to think critically of each component of the methodology and to separately consider the usefulness of an architecture to understand how each advantage is obtained. The main advantageous features that are contained within the methodology are:

  • 1.

    The critical thinking and analysis employed.

  • 2.

    A defined central aim for the business

  • 3.

    The core structures that are described.

  • 4.

    All linkages and dependencies are determined.

  • 5.

    Essential explanations are documented: a raison d’etre or rationale (for the aim, structure, and linkage).

  • 6.

    Evolving descriptive documentation is available – developing toward the business architecture.

  • 7.

    To Have an available visualisation of the business structure and its competition, showing linkages and dependencies (the business architecture described in layers of abstraction).

Each feature has its particular benefits or advantages as follows:

  • a.

    There is a smaller volume of information to be considered in decision making, and the information is more objective, accurate and complete.

  • b.

    Point of validation available through the development of the information management project.

  • c.

    The business structure and value architecture will provide the project team guidance and focus and facilitate control of the scope of the research and analysis investigations.

  • d.

    Threshold points are given to indicate potential limits to strengths and capability.

  • e.

    An aid to visualize impact and manage changing circumstances.

  • f.

    The information management project control is helpful at all stages of developing a project.

  • g.

    Provides an easy to use tool for strategic discussions, communication and teamwork.

  • h.

    The previous chapter explained that a well-structured business architecture would contain several structures that describe the main aspects of the business organisation. As in the methodology above, each of those structures can provide information to help create a business advantage.

    • The business capability map will show essential capabilities required for the delivery of service to the customer. It informs about how business capabilities are arranged and their relationships. It may be a decomposition of the mission of the enterprise. The structure can be shown as levels of abstraction from Level 0 (mission statement) to detail at Level 3.

    • A value chain diagram displays the value produced for the customer and consists of key-value activities. It is the industry view of the significant steps in delivering products and services. The value activities should describe the highest-level structure of the critical process flows that need to be included to communicate the business architecture; it may be helpful to show the value activities across department responsibilities using the swim-lane diagram.

    • Competencies represent a system property that is required to emerge from the business system. It resonates with a long history expressed in a need to have good concepts for describing what the features of a business system must have to accomplish its ambition.

    • An organisational chart shows the social unit of people that is structured and managed to meet a need or pursue collective goals, including responsibilities and authority.

    • An operational context view presents the integration of all aspects at the operational level. It needs to show in a structured way how all business imperatives are structured at the operational level (TOGAF, 2016).

Key Terms in this Chapter

Business Architecture: A document containing a description of how the business elements fit together, their interrelationships and dependencies to create a holistic view of the organisation.

Strategy and Risk Assessment: Defined by the use of business architecture so that managers can see the whole structure of the organisation and the essential intersections, constraints and supporting mechanisms that they can adequately evaluate potential risks and opportunities.

Transparency and Good Governance: Transparency and accountability are central to the concept of good governance. Disclosure of information and transparent decision-making processes enable citizens and other stakeholders to scrutinise actions and hold governments or companies to account (ICMM web site).

Due Diligence: The comprehensive appraisal of a business undertaken by a prospective buyer or investor before they sign the definitive agreement.

Critical Analysis Methodology: The critical thoughtful investigation of business activities to determine how the organisation functions and its interaction with the external environment.

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