Unpacking business-architecture

*(c) Tom Graves / Tetradian 2010*Unpacking Business ArchitectureTom Graves, Tetradian ConsultingTOGAF Stockholm, November [email protected] / www.tetradian.com

Business architecture and the enterpriseor, What to do when the enterprise impacts on the business

What is business architecture?...and how does it differ from enterprise-architecture?No clear definition in TOGAF or elsewhere:TOGAF: strategy, business drivers, business capabilities, business processesknowledge of the Business Architecture is a prerequisite for architecture work in any other domain (Data, Application, Technology) but doesnt say what it is...Should it be the architecture of the business?but what is the business, anyway?

A real business problem......weve gone from the most-respected bank in our region to the least-respected bank and its starting to hurt everything we do...Serious impacts at whole-enterprise scalecustomer-relations, employee-relations, government-relations, business-processes, business-resultsAffects everywhere hence architectural issueeverything depends on everything elseYet what is the architecture of respect?and how would we describe it, with TOGAF?

Lets just step back a bit......think about this in strict architectural terms

*(c) Tom Graves / Tetradian 2010*Whole-of-enterprise architectureEach EA generation has had to extend the scope:Classic EA starts with IT infrastructureIT tech-architecture depends on applicationsApplications-architecture depends on dataData-architecture depends on business-info needInformation-architecture depends on businessBusiness-architecture depends on enterpriseEnterprise-architecture defines the contextAn enterprise-architecture must have whole-of-enterprise scope its not just detail-level IT!

*(c) Tom Graves / Tetradian 2010*Use the TOGAF maturity-model

*(c) Tom Graves / Tetradian 2010*TOGAF scope in maturity-modelTOGAF 8.1TOGAF 9(...everything else is just detail stuff)

Importance of Know your businessWe need that Stage 1 work (Know your business) as the anchor for the architecturehigh-level overview of what business are we in?TOGAF assumes this is business architecturebut TOGAFs handling of business-architecture is not well-suited for this purpose at present well come back to this laterFirst requirement: distinction between organisation and enterprisewe create an architecture for an organisation, but about an enterprise

Organisation and enterpriseOrganisation and enterprise are not the same!Enterprise: a social structure defined by vision, values, mutual commitmentsOrganisation: a legal structure defined by rules, roles, responsibilitiesThe enterprise is it provides motivationThe organisation does it provides actionTheyre fundamentally different dont mix them up!

Organisation as the enterpriseFrom a business perspective, this is the effective scope of TOGAFs business architecture

Business-model as the enterpriseTypical business-model or supply-chain view (complete supply-chain should extend beyond this)

Market as the enterpriseOverall market includes actors who do not yet have active transactions with us, or other transactions

The real scope of the enterpriseThe overall enterprise has many actors who may have only intangible transactions / interactions with us (yet can have major impacts on our business)

The architecture of respectMany of the sources for our banks problems were out in the extended-enterprisenot visible to a conventional IT-oriented architectureWe needed to surface those sources so as to resolve them in the business-architectureto do this, must be able to extend the architecture beyond the organisation, beyond the marketIdentify unifying factors to rebuild trustprovide customers etc reason-to-connect with bankpre-empt / minimise impact of anti-client incidents

A classic anti-client incidentUnited Breaks Guitars http://www.youtube.com/watch?v=5YGc4zOqozo Real business impacts for United Airlinesdirect cost (PR, media etc) in excess of $20m?contributed to short-term hit of c.$180m on share-valuelong-term damage to brand, reputation etc incalculableSocial-media gives anti-clients great leveragecomplaints can now spread faster, and wider(but with care, so can stories of customer-satisfaction)

The market-cycletransactions depend on (reaffirmed) reputation and trustboundary of marketin conventionalbusiness-models

So where does TOGAF fit into this?...or, how would we use TOGAF for this type of architecture?

We need a more balanced view...*(c) Tom Graves / Tetradian 2010*everywhere and nowhere is the centre of the enterprise-architecture

...current TOGAF is too parochial?*(c) Tom Graves / Tetradian 2010*IT-infrastructure is the centre of the enterprise-architecture(but theres a whole world out there beyond IT...)

*(c) Tom Graves / Tetradian 2010*The TOGAF ADM: an old friend...Designed for IT-architectureFocus is IT/business alignmentBUT...Increasing consensus that EA is more than ITEA as the architecture of the enterpriseSO...How can we use TOGAF beyond IT?

*(c) Tom Graves / Tetradian 2010*...with an unfortunate kludge? Classic scope of IT-based enterprise architecture

TOGAFs business architecture......in essence, anything not-IT that might impact ITTo be blunt, ADM Phase B is not very usableinadequate context: where does everything fit?inadequate layering: big-picture strategy mixed in with ops-level process, scenarios are just use-casesinadequate instructions: provides lists of models that could be useful, but without explaining how or whyClean-up Step 1: describe context and patternsClean-up Step 2: clarify layeringClean-up Step 3: consistency for models

Step 1: Context and patterns ...or, rethinking the real pattern behind TOGAF Phases B, C and D

Look at pattern, not contentWe naturally focus on our own area of interestfor TOGAF 8/9, this is IT-infrastructurethe layers are actually layers of distance from selfPhases B/C/D successively focus in on our area of interest, each layer providing context for the next

Same pattern at larger scopeFor business-architecture, repeat the patternarchitecture of business becomes key focus (Phase D)layers are distance from business-organisationPhases B/C/D focus in on business-architecture, each layer providing context for the next

Scope of enterprise-architecture(complete EA includes many other intersecting architectures security, process, brand, organisation etc)

Step 2: Layering and cycles...or, where Zachman really works with TOGAF

*(c) Tom Graves / Tetradian 2010*Scope of enterprise-architectureBig-picture: vision, strategy, overview, business of businessCommon: interfaces etc common to all implementationsDetail: implementation-specific, context-specificAligns well with service-oriented architecture for the whole enterprise

Big-picture [Business-purpose]Zachman rows 0-2

Common / ConnectionZachman rows 2-3Design / DetailZachman rows 4-6[People](FEAF labels this as Human Capital)[Things](FEAF labels this as Other Fixed Assets)[Information]

Layers of abstraction(row-0 = always; rows 1-5 = far-future to near-future; row-6 = past)

Cycles of structural dependency(adapted from classic Group Dynamics project-lifecycle and VPEC-T framework)

Strategy, tactics, operations(overall cycle and relationships need to be in balance)

The quick-money failure-cycle(this was a key source of problems for the bank too short-term focus, with the classic last year +10% used as a substitute for strategy)

Step 3: Consistency for models ...or, service-oriented architecture for the whole enterprise

Everything serves the visionThe vision describes the shared aims of the entire enterpriseWe observe and learn from what we achieve in the real worldEverything in the enterprise is a service towards the vision (a literal service-oriented architecture

The structure of visionVision is the overall anchor for everythingvision in the ISO9000 sense i.e. not marketing puffVision-descriptor has distinct 3-part structurefocus [noun]: context or things of concern to everyoneaction [verb]: what is to be done to or in the focusqualifier [adjective]: why this is important to everyoneExample: ideas worth spreading (TED conferences)ideas (focus)worth (qualifier)spreading (action)Components may be in any order, but all must be present

All services have same structureService exists at intersection of value and supply-chainService creates value towards the vision of the enterpriseInteractions / flows before, during, after main transaction

Including guidance and investors(yes, I know it looks like Robbie-the-Robot, but thats just how it came out...)

*(c) Tom Graves / Tetradian 2010*Identify internal content of servicesUse extended-Zachman to support whole-EAAt Operations level, we should be able to describe every service as:-- this is an architecturally complete pattern or composite

Cross-links to market value-cycleMany interactions with extended-enterprise relate to Value-Proposition only Purpose, Values, People, Policies

Layers row-0 (vision)ZapaMex is a fictitious shoe-retailer (Las Zapaterias de Mexico) we developed this model-set as a demonstrator for the bank

Layers row-1 (scope)Row-1 consists only of lists of relevant entities for example, the Who section lists key actors in the overall enterprise

Layers row-2 (business-services)Row-2 describes the relationship between the selected relevant entities for the enterpr