Six views of business architecture

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

Published in: Business, Technology

Six views of business architecture

  1. 1. BUSINESS ANALYSIS FORUM Richard Veryard July/October 2012 Six Viewpoints of Business Architecture
  2. 2. MOTIVATION VIEW What the business wants CAPABILITY VIEW What the business does CYBERNETIC VIEW How the business thinks ACTIVITY VIEW How the business does KNOWEDGE VIEW What business knows RESPONSIBILITY VIEW What the business is Six Views of Business ISO 42010 calls these Viewpoints
  3. 3. we want Outcome Outcome Outcome Outcome -+- + +£ £ Motivation View purpose, value & performance
  4. 4. Motivation View  Corporate Goals and Objectives Nominal purpose Nominal strategy  Business Motivation Model (BMM)  Performance Outcomes  Direct and Indirect Value Defacto purpose (POSIWID) Emergent strategy 360º Risk  i*  VPEC-T Singular Plural OMG: Strategic View
  5. 5. we can Key Activities Value Proposition Distribution Channels Client Relationships Revenue Structure DifferentiationIntegration Key Resources Cost Structure Capability View function, competence, capacity Loosely based on Osterwalder’s Business Canvas, but for a single capability
  6. 6. Capability View  Operational Capabilities  Business Components  Hard Dependencies  Coordination and Management Capabilities  Soft Dependencies  Metacapabilities (e.g. the capability to create new capabilities) Singular Plural = OMG Capability View
  7. 7. we do Unit of work Unit of work Unit of work Unit of work Event Activity View event, response, collaboration
  8. 8. Activity View = OMG Value Stream View Traditional View Business Process as Production Line Network View Business Process as Service Network Linear – designed as a series of steps Non-Linear – designed as a set of services Chronological – steps executed in time- sequence Logical – services put together in logical combinations Cumulative – adding value at each step Modulative – services modulating one another Synchronous – each step dependent and waiting upon the previous steps Asynchronous – services executed independently Transforming raw materials and components into finished product Transmuting input services into output services
  9. 9. we know generalization aggregation classification HOTEL MOTEL ACCOMMODATION MEAL TICKET TRAVEL & SUBSISTENCE CHARGING POLICY TAXATION RULE EXPENSE ITEM From complex world to simple schema … via abstraction Knowledge View records, facts, patterns & ideas
  10. 10. Knowledge View  Systems of Record  (Formal Data)  Systems of Engagement  (Informal Information) Singular Plural = OMG Knowledge View
  11. 11. we must Traditional Platform Consumer Retailer Farmer Manufacturer Caterer Consumer Retailer Farmer Manufacturer Caterer  Economics of Scale, Scope  Economics of Alignment, Governance Indirect relationships Responsibility View role, delegation & accountability
  12. 12. Responsibility View  Hierarchy  Enterprise  Organization  Network  Ecosystem  Business as a Platform Traditional Emerging = OMG Organization View
  13. 13. we think feedback, control, & governance Learning & Development Knowledge & Memory Information Gathering Decision & Policy WIGO (what is going on) Communication & Collaboration Sense-Making Cybernetic View feedback, control, & governance
  14. 14. Cybernetic View  Goal-Directed Behaviour  Single-Loop Learning  (First Order Cybernetics)  Intelligent Behaviour  Double-Loop Learning  (Second-Order Cybernetics) Singular Plural Not in OMG
  15. 15. Which viewpoint reveals the differences between these companies?  Amazon  Apple  Facebook  Google  IBM  Microsoft  Oracle  Salesforce  Most of the activities are the same (e.g. marketing, software development, R&D) So we may not see much difference from the Activity Viewpoint.  Significant differences in the way they position themselves in relation to their ecosystems and learn from experience. So we may see significant differences from the Responsibility or Cybernetic Viewpoint.
  16. 16. Levels of Abstraction in Business Architecture • A model of the end-to-end business process, regardless of organizational boundaries Company- Independent Model • A model of a collaborative business process, regardless of the specific collaboration partners. Partner- Independent Model • A model of a collaborative process showing the specific collaboration partners and their contractual service relationships (including SLAs) Partner- Dependent model Outsourcing Strategy Outsourcing Negotiation
  17. 17. Simple Complex Motivation View What the Business Wants Nominal purpose Nominal strategy Defacto purpose Emergent strategy Capability View How the Business Does Operational capability Hard dependencies Top-down leadership Sociotechnical capability and competency Soft dependencies Edge leadership Activity View What the Business Does Linear synchronous process (value chain) Asynchronous collaboration (value network) Knowledge View What the Business Knows Formal information systems Informal information systems Sensemaking Appreciative systems Cybernetic View How the Business Thinks Goal-directed behaviour Management by objectives Single-loop learning First order cybernetics (VSM) Second-order cybernetics (Bateson/Maturana) Double-loop and deutero learning Responsibility View How the Business Enterprise Business-as-a-Platform Ecosystem
  18. 18. eBooklet Now Available leanpub.com/ businessarchitecture- viewpoints/

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