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Understanding Business Architecture Slide 1 Understanding Business Architecture Slide 2 Understanding Business Architecture Slide 3 Understanding Business Architecture Slide 4 Understanding Business Architecture Slide 5 Understanding Business Architecture Slide 6 Understanding Business Architecture Slide 7 Understanding Business Architecture Slide 8 Understanding Business Architecture Slide 9 Understanding Business Architecture Slide 10 Understanding Business Architecture Slide 11 Understanding Business Architecture Slide 12 Understanding Business Architecture Slide 13 Understanding Business Architecture Slide 14 Understanding Business Architecture Slide 15 Understanding Business Architecture Slide 16 Understanding Business Architecture Slide 17 Understanding Business Architecture Slide 18 Understanding Business Architecture Slide 19 Understanding Business Architecture Slide 20 Understanding Business Architecture Slide 21 Understanding Business Architecture Slide 22
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In April 2016, one of EA Learning’s experienced Business Architecture instructors, Judith Oja-Gillam, delivered a webinar to a community of Architects and IT professionals within the IASA network. Judith discussed the discipline of business architecture, its potential value to the business and some of the challenges it looks to address. The approaches discussed are linked closely to the content delivered in EA Learning’s Applied Business Architecture.

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Understanding Business Architecture

  1. 1. P / 1 FROMHEREON.COM ENTERPRISEARCHITECTS.COM UNDERSTANDING BUSINESS ARCHITECTURE V3.7 April 2016 JUDITH OJA -GILLAM Strategic Business Architect Applied Business Architecture
  2. 2. P / 2 FromHereOn is an international professional services firm specializing in strategy & architecture services ABOUT FROMHEREON Our Enterprise Architecture Practice has evolved from its foundations in our parent company Enterprise Architects. Over 12+ years we have helped many clients across a wide range of industries to build market- leading architecture teams. Our core value proposition is to help clients unlock the value of their investments using the principles of architecture. We are experts in architecture with a belief that architecture is important and, when done well, will profoundly improve corporate performance – quite simply, Architecture is in our DNA.
  3. 3. P / 3 At EA Learning, we are passionate about equipping individuals with the knowledge, tools and capabilities to add tangible value to the businesses that our customers work in. We offer a broad range of certification and applied learning courses to give our attendees the credentials and toolkits to be successful in their careers.. We are dedicated to supporting the advancement of the industries that we work in and as part of this we are proud to have supported a number of learning initiatives and standards body developments with organizations such as the Open Group, IIBA and Open Universities Australia. Ourgoalisforeveryattendeetowalkawayattheendofa trainingcoursewithasetoftools,techniquesand approachesthattheycanputintopracticeintheirrole. EA LEARNING SERVICES
  4. 4. P / 4 OUR APPROACH – “ARCHITECTURE THINKING” 1 Establish Consensus for Strategy 2 Define A Common Reference Point 3 Take A Coherent Approach to Solutions 4 Build A Strategically Aligned Roadmap MOTIVATION MODEL BUSINESS MODEL SERVICE MODEL CAPABILITY MODEL People ROADMAP GOVERNANCE * Closed feedback loop to Motivation Model Information Technology Process MARKET MODEL MEANS ASSESSMENT INFLUENCERS ASSESSMENT MEANS ENDS MACRO ENVIRONMENT INDUSTRY SCAN SWOT PERFORMANCE • Financial • Customer • Internal (current) • Internal (long-term)
  5. 5. P / 5 It is about giving strategic business objectives greater clarity and structure by describing how they translate into operations. The goal of Business Architecture is to operationalize business strategy, thereby helping business leaders avoid a risky leap directly from strategy to specific project investments. Weliketorefertoitas “Thedesignofbusiness”. WHAT IS BUSINESS ARCHITECTURE?
  6. 6. P / 6 Creating close alignment between business goals and IT strategy WHY BUSINESS ARCHITECTURE? Business Architecture provides the context for technology, aligning the technical architecture domains to long term business need. Business Architecture means: • A common language, founded in business terms, not IT-speak • A more joined-up approach to assessment and selection of new projects • IT investments are directly aligned to business goals • Greater opportunities for reuse
  7. 7. P / 7 BUSINESS ARCHITECTURE CONNECTS STRATEGY TO IMPLEMENTATION IMPLEMENTATION STRATEGY BUSINESS ARCHITECTURE IMPLEMENTATION STRATEGY BUSINESS ARCHITECTURE
  8. 8. P / 8 FAILURE POINTS BETWEEN STRATEGY & IMPLEMENTATION Strategy Projects    Strategy not sufficiently tied to operations Needed capabilities not properly understood or measured Planners not accountable for delivery Benefits aren’t quantified or traced back to original goals The drivers of strategy are often misaligned  Are we investing in the right areas across the enterprise? Is my investment portfolio balanced across all of the economic value add dimensions? Are the strategic programs aligned, or for that matter, are they the right strategic programs? There is a lot of activity going on out there, how do I know we are doing the right things? Where can we take advantage of synergies across the major strategic programs?
  9. 9. P / 9 BUSINESS ARCHITECTURE OR I.T. ARCHITECTURE? Value increases as the mandate increases. EA = IT Architecture Improve project performance EA = Enterprise-Wide IT Architecture(EWITA) Improve IT performance EA = Business Architecture (BA) + EWITA Improve Business Performance EA = Strategic Enabler + BA + EWITA Improve Market Performance (ShareholderValue) A B VALUE MANDATE C E EA = Product Architecture + Business Architecture(BA) + EWITA Improve Product/ServicePerformance D Business Architecture is seen as a positive progression away from IT Maximize Product profitability Maximize market share Maximize customer lifetime value
  10. 10. P / 10 Building coherence requires an understanding of the components of a Business Model, and how to assemble them in a manner that is innovative and differentiating whilst maintaining stability. A Coherent Business Model is one that is synchronized around: > its market position, > its product and service portfolio; and > its most distinctive strategic capabilities > All of the above working together as a system THE GOAL OF A GOOD BUSINESS MODEL IS TO CREATE COHERENCE THE ENVIRONMENT THE BUSINESS MODEL MARKET MODEL PRODUCTS AND SERVICE MODEL OPERATING MODEL  Markets  Industries  Customers  Market Segment  Channels  Customer Relationships  Value Proposition  Offering: Products / Services  Capabilities  Processes / Value Chains  Business Services  Functions  Data  Applications  Technology
  11. 11. P / 11 STRATEGIC COHERENCE: CAPABILITY BASED PLANNING Capability driven architectures are designed to support the strategic objectives of an organization. Capabilities consist of people, process, Information and technology MISSION STRATEGIES TACTICS VISION GOALS OBJECTIVES OUTCOME CAPABILITY People Process Technology Information To fully understand a capability all these components must exist regardless of their maturity level
  12. 12. P / 12 Some Definitions… WHAT IS A CAPABILITY? An ability that an organization, person, or system possesses. Capabilities are typically expressed in general and high- level terms and typically require a combination of organization, people, processes, and technology to achieve. For example, marketing, customer contact, or outbound telemarketing. – The Open Group The power or ability to do something. – Oxford English Dictionary Measure of the ability of an entity (department, organization, person, system) to achieve its objectives, specially in relation to its overall mission. – Business Dictionary The ability to perform or achieve certain actions or outcomes through a set of controllable and measurable faculties, features, functions, processes, or services. – Wikipedia
  13. 13. P / 13 Some Guidelines… IDENTIFYING CAPABILITIES > All enterprises have ‘capabilities’: they are what the enterprise must be able to DO in order to fulfill its mission. > Capabilities are expressed as outcomes and should be agnostic of technology, product, organizational unit, etc. > Capabilities will tend to persist over time. > Capabilities can be described in a simple one-page view… the Business Capability Model.
  14. 14. P / 14 Thecapabilitymodelrepresentsthe"map"oftheorganization… THE BUSINESS CAPABILITY MODEL …and like a map, the capability model can have many overlays, each communicating a different message based on the same underlying structure.
  15. 15. P / 15 TYPICAL CAPABILITY MODEL ‘OVERLAYS’INSURE Co. Business Capability Model with Current Maturity Overlay Business Capability Model Version: 3.0.0 Created: 18/03/2014 by Enterprise Architects Updated: 15/05/2014 by Enterprise Architects Sources: Description: A Business Capability Model provides an anchor point for defining the organisation on a page, giving the stakeholders an overall view of the business. This overlay describes the level of maturity of the capabilities that have been assessed. Concerns Addressed: What are the capabilities required to support the strategic direction and deliver consistent outcomes? What are their levels of maturity? Stakeholders: Business Executives, Business Managers, Business SME’s, IT Executives, Solution Managers, Solution Designers, IT Operations, Project Teams and Architects © Enterprise Architects (Vic) Pty Ltd 2014 Maturity Operations Core Value Creating Capabilities Market Development and Sourcing Productising and Bundling Sales and Distribution Servicing Shared Services ProcessPeople Info. Tech. N/A N/AN/A N/A Low Maturity (Ad hoc) ProcessPeople Info. Tech. N/A N/AN/A N/A Low-Medium Maturity (Developing) ProcessPeople Info. Tech. N/A N/AN/A N/A Medium Maturity (Repeatable) ProcessPeople Info. Tech. N/A N/AN/A N/A Medium-High Maturity (Defined/ Managed) ProcessPeople Info. Tech. N/A N/AN/A N/A High Maturity (Optimised) ProcessPeople Info. Tech. N/A N/AN/A N/A Maturity Unknown (Not Assessed) ProcessPeople Info. Tech. N/A N/AN/A N/A Marketing ProcessPeople Info. Tech. N/A N/AN/A N/A Customer Service ProcessPeople Info. Tech. N/A N/AN/A N/A Business Development & Sales ProcessPeople Info. Tech. N/A N/AN/A N/A Client Development ProcessPeople Info. Tech. N/A N/AN/A N/A Product Manufacturing & Maintenance ProcessPeople Info. Tech. N/A N/AN/A N/A Product Service ProcessPeople Info. Tech. N/A N/AN/A N/A Operations Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy & Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Finance & Actuarial ProcessPeople Info. Tech. N/A N/AN/A N/A Human Resource Management ProcessPeople Info. Tech. N/A N/AN/A N/A Information Technology Management ProcessPeople Info. Tech. N/A N/AN/A N/A Underwriting and Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Legal & Compliance ProcessPeople Info. Tech. N/A N/AN/A N/A External Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Value Transaction Management ProcessPeople Info. Tech. N/A N/AN/A N/A Process Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Document Management ProcessPeople Info. Tech. N/A N/AN/A N/A Resource Allocation ProcessPeople Info. Tech. N/A N/AN/A N/A Business Process Management ProcessPeople Info. Tech. N/A N/AN/A N/A Knowledge Management ProcessPeople Info. Tech. N/A N/AN/A N/A Decisional & Business Intelligence ProcessPeople Info. Tech. N/A N/AN/A N/A Premium Management ProcessPeople Info. Tech. N/A N/AN/A N/A Payments Management ProcessPeople Info. Tech. N/A N/AN/A N/A New Business ProcessPeople Info. Tech. N/A N/AN/A N/A Underwriting ProcessPeople Info. Tech. N/A N/AN/A N/A Policy Owner Service (POS) ProcessPeople Info. Tech. N/A N/AN/A N/A Recurring Claims Management ProcessPeople Info. Tech. N/A N/AN/A N/A Policy Administration ProcessPeople Info. Tech. N/A N/AN/A N/A Consolidated Reporting ProcessPeople Info. Tech. N/A N/AN/A N/A Lump Sum Claims Management ProcessPeople Info. Tech. N/A N/AN/A N/A Delivery Method Registration ProcessPeople Info. Tech. N/A N/AN/A N/A Claims Management ProcessPeople Info. Tech. N/A N/AN/A N/A Enquiries ProcessPeople Info. Tech. N/A N/AN/A N/A Complaints Management ProcessPeople Info. Tech. N/A N/AN/A N/A Retention ProcessPeople Info. Tech. N/A N/AN/A N/A On-boarding ProcessPeople Info. Tech. N/A N/AN/A N/A Adviser Remuneration ProcessPeople Info. Tech. N/A N/AN/A N/A Leads Generation ProcessPeople Info. Tech. N/A N/AN/A N/A Leads Management ProcessPeople Info. Tech. N/A N/AN/A N/A Broker Management ProcessPeople Info. Tech. N/A N/AN/A N/A Needs Analysis ProcessPeople Info. Tech. N/A N/AN/A N/A Product Selection ProcessPeople Info. Tech. N/A N/AN/A N/A Quotation & Illustration ProcessPeople Info. Tech. N/A N/AN/A N/A Strategic Pipeline ProcessPeople Info. Tech. N/A N/AN/A N/A Tactical Pipeline ProcessPeople Info. Tech. N/A N/AN/A N/A Policy Acquisition ProcessPeople Info. Tech. N/A N/AN/A N/A Application ProcessPeople Info. Tech. N/A N/AN/A N/A Tenders ProcessPeople Info. Tech. N/A N/AN/A N/A Specialist Training ProcessPeople Info. Tech. N/A N/AN/A N/A Client Servicing ProcessPeople Info. Tech. N/A N/AN/A N/A Partner Strategy & Support ProcessPeople Info. Tech. N/A N/AN/A N/A Renewals ProcessPeople Info. Tech. N/A N/AN/A N/A Consulting ProcessPeople Info. Tech. N/A N/AN/A N/A Dealership Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Sponsorship ProcessPeople Info. Tech. N/A N/AN/A N/A Client Communications ProcessPeople Info. Tech. N/A N/AN/A N/A Adviser Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product Research ProcessPeople Info. Tech. N/A N/AN/A N/A Product Development ProcessPeople Info. Tech. N/A N/AN/A N/A Pricing ProcessPeople Info. Tech. N/A N/AN/A N/A Product Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product Packaging ProcessPeople Info. Tech. N/A N/AN/A N/A Reinsurance ProcessPeople Info. Tech. N/A N/AN/A N/A Market & Data Analytics ProcessPeople Info. Tech. N/A N/AN/A N/A Campaign Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product Launch ProcessPeople Info. Tech. N/A N/AN/A N/A External Market Communications ProcessPeople Info. Tech. N/A N/AN/A N/A Brand Management ProcessPeople Info. Tech. N/A N/AN/A N/A Promotions ProcessPeople Info. Tech. N/A N/AN/A N/A Advertising ProcessPeople Info. Tech. N/A N/AN/A N/A Internal Sales Tools ProcessPeople Info. Tech. N/A N/AN/A N/A Channel Marketing ProcessPeople Info. Tech. N/A N/AN/A N/A Operational Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Operations Quality Management ProcessPeople Info. Tech. N/A N/AN/A N/A Technical Operations Training ProcessPeople Info. Tech. N/A N/AN/A N/A Employee Development & Training ProcessPeople Info. Tech. N/A N/AN/A N/A Employee Retention ProcessPeople Info. Tech. N/A N/AN/A N/A Talent Recruitment and Sourcing ProcessPeople Info. Tech. N/A N/AN/A N/A Candidate Assessment and Selection ProcessPeople Info. Tech. N/A N/AN/A N/A Succession Planning ProcessPeople Info. Tech. N/A N/AN/A N/A Talent Development & Training ProcessPeople Info. Tech. N/A N/AN/A N/A Employment Offers & Contracts ProcessPeople Info. Tech. N/A N/AN/A N/A Government & Industry Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Employee Performance Management ProcessPeople Info. Tech. N/A N/AN/A N/A Workforce Planning ProcessPeople Info. Tech. N/A N/AN/A N/A Talent Redeployment & Retirement ProcessPeople Info. Tech. N/A N/AN/A N/A Regulatory Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Directors Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Legal & Ethical Management ProcessPeople Info. Tech. N/A N/AN/A N/A External Administration Management ProcessPeople Info. Tech. N/A N/AN/A N/A Investor Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Public Relations Management ProcessPeople Info. Tech. N/A N/AN/A N/A Product/ Channels Profitability ProcessPeople Info. Tech. N/A N/AN/A N/A Management Reporting ProcessPeople Info. Tech. N/A N/AN/A N/A Corporate Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Underwriting ProcessPeople Info. Tech. N/A N/AN/A N/A Business Continuity Management ProcessPeople Info. Tech. N/A N/AN/A N/A Internal Audit ProcessPeople Info. Tech. N/A N/AN/A N/A Reinsurance ProcessPeople Info. Tech. N/A N/AN/A N/A Company Secretary ProcessPeople Info. Tech. N/A N/AN/A N/A Due Diligence ProcessPeople Info. Tech. N/A N/AN/A N/A Advice Provisioning ProcessPeople Info. Tech. N/A N/AN/A N/A Compliance ProcessPeople Info. Tech. N/A N/AN/A N/A Contract Management ProcessPeople Info. Tech. N/A N/AN/A N/A Architecture Management ProcessPeople Info. Tech. N/A N/AN/A N/A Application Development ProcessPeople Info. Tech. N/A N/AN/A N/A IT Service Delivery ProcessPeople Info. Tech. N/A N/AN/A N/A IT Security & Risk Management ProcessPeople Info. Tech. N/A N/AN/A N/A Disaster Recovery ProcessPeople Info. Tech. N/A N/AN/A N/A IT Vendor Relationship Management ProcessPeople Info. Tech. N/A N/AN/A N/A Process Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Infrastructure ProcessPeople Info. Tech. N/A N/AN/A N/A Investment ProcessPeople Info. Tech. N/A N/AN/A N/A Financial Accounting ProcessPeople Info. Tech. N/A N/AN/A N/A Financial Management & Analysis ProcessPeople Info. Tech. N/A N/AN/A N/A Procurement Management ProcessPeople Info. Tech. N/A N/AN/A N/A Actuarial ProcessPeople Info. Tech. N/A N/AN/A N/A Statutory & Regulatory Reporting ProcessPeople Info. Tech. N/A N/AN/A N/A Capital Management ProcessPeople Info. Tech. N/A N/AN/A N/A Facilities Management ProcessPeople Info. Tech. N/A N/AN/A N/A Cash Management ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Research ProcessPeople Info. Tech. N/A N/AN/A N/A Project Portfolio Selection ProcessPeople Info. Tech. N/A N/AN/A N/A Benefits Realisation ProcessPeople Info. Tech. N/A N/AN/A N/A Government Policy ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Management ProcessPeople Info. Tech. N/A N/AN/A N/A Project Execution ProcessPeople Info. Tech. N/A N/AN/A N/A Enterprise Architecture ProcessPeople Info. Tech. N/A N/AN/A N/A Strategy Planning ProcessPeople Info. Tech. N/A N/AN/A N/A Project Portfolio Prioritisation ProcessPeople Info. Tech. N/A N/AN/A N/A Change Management > Commodity vs. Differentiating Capabilities > Strategic importance > Organizational ‘owners’, FTE numbers and costs > Current / target Maturity levels and gaps > Pain Points > Projects > Technology and Applications The more information we overlay on the model, the more we learn…
  16. 16. P / 16 THE ROADMAP CHALLENGE… “What are the changes between the current state and the future state of the architecture?” “How are my strategic objectives being realized through my architecture and program of work?” “What is my current investment roadmap to achieve the required changes?” “Where are the dependencies across the program of work?” Typical Stakeholder Concerns
  17. 17. P / 17 DEVELOPING A CAPABILITY- DRIVEN ROADMAP Coherence: technology change initiatives will also impact the People and Process dimensions of the Capabilities. Capability Uplifts are often delivered in multiple increments – these Capability uplifts can be grouped into work packages. A Business Architecture approach will provide clarity on how different solution options will enable capabilities…. ….in turn creating traceability from strategy to implementation. Work Packages Work Packages Motivation Business Model Capability Model Target Architecture Maturity & Gaps Work Packages Current State Work Packages Work Packages MOTIVATION BUSINESS MODEL CAPABILITY MODEL TARGET ARCHITECTURE MATURITY & GAPS WORK PACKAGES CURRENT STATE ARCHITECTURE ROADMAP ‘ A N C H O R M O D E L S ’ People, Process, Information, Technology
  18. 18. P / 18 CAPABILITY INCREMENTS Capability Maturity Uplift is often Delivered in Multiple Increments C A P A B I L I T Y C A P A B I L I T Y I N C R E M E N T Individual Collective Training Professional Development Concepts Business Processes Information Management Infrastructure Information Technology Equipment
  19. 19. P / 19 ANATOMY OF A ROADMAP STRATEGIC CONTEXT STRATEGIC OB J ECTIVES CHANGE D RIVERS ARCHITECTURE P RINCIP LES TARGET STATE STRATEGIC INITIATIVES CURRENT STATE
  20. 20. P / 21 HOW: EXECUTING BUSINESS ARCHITECTURE Applied Business Architecture Training Course – Four Days IDENTIFY GOALS & OBJECTIVES UNDERSTAND BUSINESS MOTIVATION PROTOTYPE BUSINESS MODEL STRATEGIES DEFINE CAPABILITIES ASSESS CAPABILITIES MATURITY DEFINE FUTURE STATE CAPABILITIES MATURITY ASSESS CURRENT PROJECT ACTIVITY PLAN TRANSITION DEFINE VALUE CHAIN COMPONENTS WORK STREAMS PROBLEM DEFINITION BUSINESS SCENARIOS OUTPUTS MEANS TO END BUSINESS MOTIVATION MODEL BUSINESS MODEL CANVAS A VALUE SYSTEM MODEL A VALUE CHAIN CAPABILITY MODEL STRATEGIC OVERLAY CAPABILITY MODEL WITH CURRENT MATURITY OVERLAY CAPABILITY MODEL WITH TARGET MATURITY OVERLAY CAPABILITY MODEL WITH PROJECT OVERLAY MATURITY, IMPACT AND IN-FLIGHT MATRIX AND DEVELOP THE QUADRANT GRAPHS CAPABILITY MODEL WITH HOTSPOT OVERLAY SEQUENCING MATRIX TRANSITION PLAN SUMMARIZED ROADMAP VIEW
  21. 21. P / 22 RECAP Business Architecture provides the link between Strategy and Implementation. Business Capabilities are an essential tool to help us to look at the Business agnostically, speak a common language and understand our strengths and weaknesses in relation to strategy. Linking programmes and projects to Business Motivation (via Capabilities) provides traceability from strategy to implementation. BusinessArchitectureKeyPoints
  22. 22. P / 23enterprisearchitects.com fromhereon.com david.ohara@fromhereon.com training@enterprisearchitects.com
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In April 2016, one of EA Learning’s experienced Business Architecture instructors, Judith Oja-Gillam, delivered a webinar to a community of Architects and IT professionals within the IASA network. Judith discussed the discipline of business architecture, its potential value to the business and some of the challenges it looks to address. The approaches discussed are linked closely to the content delivered in EA Learning’s Applied Business Architecture.

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