Business architecture is a business management model that shows the business vision and strategy of an organization. In terms of business, business architecture will show what the business does or how it makes money.
The business architecture can be seen as a building block for the business plan. It combines the market study with the company’s business plan. On business architecture we can distinguish two types: business function and business structure.
The business functions of a business such as finance or marketing show how business works. The business structure of a business shows what the business does and who is responsible for it.
Users of business architecture
Business architectures are not only used by companies, but also universities use them to show students their applicationpossibilities. Business architecture is an important business tool that can be used in business strategies and business plans.
Not only the planning phase will benefit from business architecture but also the strategic management, business control and business performance assessment.
Insights from business architecture
With business architecture business leaders are able to create a common understanding of their company’s business strategy by translating it into an executable model.
Without business architecture business leaders would not be able to communicate business value. They are unable to steer business operations because these are too complex, difficult to handle and unclear.
Business architectures serve business leaders as a business management tool that helps them set up business strategy, control business performance and assess business effectiveness.