Knowledge · Architecture
What is Business Architecture?
Business Architecture describes a company from the perspective of executive leadership: which capabilities it needs to reach its goals, which value streams and processes support those capabilities, who is accountable for them and what information they require. It organizes the company by capabilities rather than by departments or systems. That shows where strategy actually reaches day-to-day work and where investment in data and technology belongs.
Author Thomas Wassum, Managing PartnerLast reviewed
The concept
Capabilities instead of departments.
A capability is something a company has to be able to do, regardless of who does it today and with which technology: pricing orders, managing suppliers, assessing risk. Capabilities rarely change; departments and systems change often. Aligning investment with capabilities therefore gives you a yardstick that survives reorganizations and system changes. The business capability map shows all capabilities on a single page.
Building blocks of a Business Architecture
- Business model, goals and constraints
- Business capability map
- Value streams and core processes
- Accountabilities and decision paths
- Dependencies on systems and service providers
Distinction
How it differs from IT and process architecture.
Process management improves workflows; IT architecture organizes applications and technology. Business Architecture comes first and connects both to the goals of the company. It does not answer which system to introduce, but which capability that system should strengthen and who is accountable for it. In enterprise architecture it forms the top layer, on which data, application and technology architecture build.
In BEIA, business context, capabilities, operating model and governance are four of the eight layers. Data, applications and technology form the foundation underneath. Security, Risk & Compliance and AI readiness run across the layers.
In practice
When Business Architecture pays off.
Business Architecture pays off whenever a decision affects several areas and the people involved have different pictures of the company: before growth, an acquisition or a succession, before an ERP tender, or when IT projects run without a clear link to the business. It then provides a shared map on which leadership, business units and IT use the same terms.
A typical scenario: a mid-sized company with three sites is planning a new ERP system, and each site describes its requirements differently. The capability map shows that most capabilities are the same at every site and only a few genuinely set the business apart. The tender gets shorter and the bids become comparable.
The scenario is typical of our engagements, not a single client case.
Questions from leadership
What executives ask about it.
Who should own a Business Architecture?
Executive leadership. Business units and IT can develop it together, but only leadership can decide which capabilities the company will need in future and where it deliberately will not invest.
Do you need dedicated software for Business Architecture?
Not at the start. A one-page capability map and a clear assignment of processes, accountability and systems take you further than a tool nobody maintains. Whether a tool is worth it becomes clear later, from how often things change.
How often does a Business Architecture need revising?
As often as the decisions that rest on it change. Because capabilities rarely change, it is usually enough to review the map at strategy shifts, acquisitions or major system projects.
Author and sources
Who answers, and what it rests on.
Sources and further reading
- The Open Group: The TOGAF Standard, 10th Edition, 2022 (external site)
- Business Architecture Guild: A Guide to the Business Architecture Body of Knowledge (BIZBOK Guide) (external site)
- The Open Group: ArchiMate Specification
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