Business architecture provides a common understanding of an organization by articulating its structure in terms of capabilities, governance, processes, and information. It includes key components like vision, mission, core competencies, synergy, planning-organizing-leading-controlling (POLC), and management by objectives. While large multi-national corporations have well-defined business architectures, smaller businesses may have less formalized architectures due to fewer resources.
2. What is Business Architecture
⢠"A blueprint of the enterprise that provides a common understanding of
the organisation and is used to align strategic objectives and tactical
demands.â
⢠Business Architecture articulates the structure of an enterprise in terms
of its capabilities, governance structure, business processes, and business
information.
4. ⢠Vision is what a company ASPIRES to BE in the future.
⢠It is a vague VERY LONG TERM ultimate goal of a business which is
NOT TIME BOUND.
⢠Example: Being the best spice producer in southern Pakistan.
⢠Mission is less vague, more REALISTIC, STATISTICAL and TIME
BOUND goal.
⢠Example: Own atleast 70% Spice Market Share in Southern Pakistan by the
end of 2014.
Vision & Mission of a Business
5. ⢠Are some of the skills that a business specializes in.
⢠They can also be something only they own.
⢠Gives a competitive advantage over other in the market.
⢠Allows them to charge a higher price.
⢠Example: Afghanistan specializes in carpet production skills.
⢠Sialkot specializes in sports and surgical goods production.
Core Competencies
6. ⢠Synergy is the belief that a number of units working together produce
better on average than those units working separately.
⢠For example: If different departments work on all steps of car production each
would produce less efficiently than different department working on different
part of the car each.
⢠Internal: Synergy within the business as stated above.
⢠External: Synergy amongst different businesses like Sony and Ericsson.
Synergy
7. ⢠Planning: Setting goals for the business to follow in the time to come.
⢠Organising: Collecting and arranging all separate recourses in correct
order for most efficient use.
⢠Leading: Seeing the change happen and the planned and organised goals
meet.
⢠Controlling: Appraisal method. Feedback to improve performance for
coming periods.
POLC
8. ⢠Goal setting technique. Guidance on how to set goals. Goals should be:
1. Specific: to the point.
2. Measurable: Could be analysed later.
3. Achievable: Realistic and practical
4. Relevant: Should be relative according to the main objective.
5. Time Bound: Should have a deadline, preferably two.
SMART
9. ⢠A technique of giving autonomy to every worker over their own work
and quality.
⢠Every department, manager and worker is given their very own sub
tasks based on Businessesâ main objectives.
⢠This leads to more decision making power to all leading to high
motivation and production levels.
⢠This also gives everyone a sense of respect and belonging.
Management by Objectives
10. ⢠Business Architecture is followed in all kinds of businessesâ, realised or
unrealised.
⢠Small Scale businessesâ and industries have a less defined Architecture as
compared to large sized businessesâ.
⢠MNCâs like Unilever, GSK, P&G have appraisal and marketing
departments specifically made for ensuring that they have a well defined
unique business architecture.
⢠Small single-owner businessesâ do not attach such importance to it as
they are short on resources.
Business Architecture in Pakistan