Before looking at what a business architecture is we should look at the architectures that are referred to and used by IT specialists. These include data architecture, application architecture, solution architecture and enterprise architecture.
Data architecture defines how data is stored, managed, and used in a system according to the Carnegie Mellon Software Institute.
An application architecture is commonly used for the internal structure of an application, for its software modularisation. It also refers to the combination of various software components and their interrelationships. This includes data bases, application layer, presentation layer, etc.
In looking for definitions of what a solution architecture is, no agreed definition was offered on the Solution Architecture Org website. The best way of explaining solution architecture seems to be that it is the set of components and the changes needed to support a solution to ensure that the components work together in a manner sufficient to ensure the delivery of the functionality within the scope of an IT project. Specifically it pays attention to applications, infrastructure, networks, hardware and software to ensure that they actually will work together.
Based on TOGAF, an enterprise architecture provides the fundamental technology and process structure for an IT strategy in support of a business. TOGAF goes on to say “An enterprise architecture … provid[es] a strategic context for the evolution of the IT system in response to the constantly changing needs of the business environment.” From this, it is apparent that the immediate purpose of the enterprise architecture is to provide the framework for the IT environment.
What is interesting about these definitions is that none of them talks directly about the architecture of the business. The TOGAF architecture process has a business architecture component. This business architecture describes “the product and/or service strategy, and the organizational, functional, process, information, and geographic aspects of the business environment, based on the business principles, business goals, and strategic drivers.” Its fundamental purpose is to understand the business environment so that the enterprise architecture can be best described to support the business. The TOGAF business architecture is basically the business requirements which the enterprise architecture is supposed to support.
It appears that none of these architecture practices has as its mission the direct and meaningful support of the business. When I started this review, I did not think I would arrive at this conclusion. I cannot prove that such a practice does not exist (it being difficult to prove a negative), but I have not seen one, although components of an emerging business architecture discipline can be seen to exist.
Because there is no accepted definition of what a business architecture is, let’s take a stab at it. At the least it will serve as a straw man so that discussion can focus on it and refine the definition.
We previously concluded that an architecture is a plan and or design of some thing, to fulfill a purpose and meet requirements that are imposed by its intended use. That it serves a purpose, that its design may be constrained by available materials and techniques, that it should be structurally sound, and that additional requirements can be imposed on it or affect the design of the architecture.
If we look at the purpose of a business, its fundamental purpose is to make money. How this is to be accomplished is usually set out in a business plan that outlines the business strategy, customer types and target markets to be served, products and services to be delivered and the expected costs and revenues of the business. If there is to be a business architecture then it must support and take account of all of these factors as inputs.
The business plan is the critical input to the business architecture. The fundamental purpose of a business architecture is to support the business plan and business strategy. So a business architecture does have a purpose, and the selected customers, products, etc., will impose some fundamental requirements. In addition, the hours of operation of the business, the channels that are selected to deliver the business, the products or services to be sold, the need to collect money and account for its use, management control and tracking, and regulatory reporting (including all those nasty taxes) impose some fundamental but assumptive requirements.
To support the execution of the business plan and strategy, a business must have staff, roles, responsibilities, functions, processes. It must also collect information and report information. It must attract and serve customers through one or more channels and usually from a location or office. These elements all have either a physical or logical structure. We talk in terms of organization charts, process and functions. They are sized because they have a capacity. We add additional staff, buildings, furniture or system hardware to increase the ability of the organization to perform its functions. And they do have structure. When we talk about functions, they can be decomposed into hierarchies of activities and tasks. We can look at the map of a process. These represent the operations of the business and can be said to form the operational structure and design of the business.
A business that is structurally sound will have plans and controls to mitigate its operational risk and it will focus on the design and sequencing of its process so that they perform smoothly and satisfy the needs of the business, i.e. they can be tested or reviewed for structural soundness.
A fundamental constraint on a business is cost. If the cost is too high so that it exceeds revenues and available financing the business will cease to exist.
From this, it seems to make sense to talk about a business architecture exclusive of the business plan and exclusive of technology. To extend the architecture metaphor a business architecture is the plan and design of the operations of a business, in support of and guided by the business plan.
The business architecture is not a strategy of and by itself although it may enable the business strategy, and it may embody a strategy for operationlizing the business.