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Introduction to Enterprise Business Architecture

Enterprise business architecture integrates IT, business processes, and security. It helps align the business’s current and future operations with entrepreneurial goals. 

Determining the most effective approaches to achieve your core objectives quickly is not straightforward. 

You have to assess many variables in your business, which is time-consuming and error-prone.

Thus, you need a well-defined system to guide you in choosing and adopting suitable approaches for your business. 

In this overview, you will learn the fundamentals of enterprise business architecture. 

What is enterprise business architecture?

Enterprise business architecture defines what an organization needs to do to stay competitive, satisfy the customers, maintain supplier relationships, care for the employees and sustain the operations.

When creating the EBA, you identify the core capabilities (e.g., agility and speed) and value streams (e.g., mobile and desktop apps ) needed to achieve strategic objectives. 

EBA also reveals gaps between the current and future state, addressed through change initiatives.

Enterprise business architecture examples

Enterprise business architecture is functional in processes like:

  • Making outsourcing and insourcing decisions
  • When restructuring Tech Infrastructure

Making outsourcing and insourcing decisions

When determining whether to use in-house-made tools or outsource, enterprise business architecture helps to evaluate the costs involved. 

When restructuring Tech Infrastructure

Suppose you’re considering a digital transformation to improve your business’ agility. In that case, EBA will help you determine the best way to integrate technology with your existing processes and prepare the groundwork for implementing a new technology solution or replacing an outdated one.

Enterprise business architecture frameworks

EBA merges business and enterprise architecture frameworks that describe the business activities and information flows. They typically include methodologies, software tools, documentation templates, and training programs.

Some of the most prominent EBA frameworks include:

  • The Open Group Architecture Framework (TOGAF) 
  • The Zachman Framework
  • Department of Defense Architecture Framework (DoDAF) 
  • Federal Enterprise Architecture Framework (FEAF) 
  • Federal Risk and Authorization Management Program (FedRAMP)

What is the panorama 360 enterprise business architecture framework?

The Panorama360 Enterprise Business Architecture Framework allows you to see your organization from a 360-degree perspective.

The framework provides a flexible, adaptable structure that lets you view your enterprise from three critical vantage points:

  • As an integrated set of capabilities (Core Capabilities)
  • As a set of value streams (Business Processes)
  • As a set of organizational structures (Organization Units)

Business architecture vs. enterprise architecture

The difference between business architecture (BA) and enterprise architecture (EA) is that EA includes IT architecture while BA does not. But practically, business architecture is a subset of enterprise architecture.

What is enterprise architecture?

Enterprise architects identify the components required to deliver on business strategies across the entire enterprise. They consider technology, information, and infrastructure perspectives within an enterprise. They then align the identified components with business requirements and goals.

What is business architecture, for example?

Business architecture is a subset of enterprise architecture. It represents the business perspective and the organizational structure, strategy, and governance. 

Teams use business architecture to improve essential areas through processes like:

  • Strategic planning

They help businesses come up with strategy proposals of top-tier quality. They also facilitate reviewing and approving the strategies.

  • Benchmarking

Business architects compare a firm’s processes and systems against industry leaders to identify areas that need improvement to boost productivity and efficiency.

What are the Components of Enterprise Business Architecture?

Enterprise Business Architecture comprises value streams, business capability maps, and process models.

Let’s take a look at each of them.

1. Value streams

Value streams are steps that an organization follows to effect solutions that offer progressive value to customers.

There are two types of value streams:

  • Operational value streams
  • Development value streams

Operational value streams

These consist of the people and the steps involved in processing the customers’ products. An example of an operational stream is the steps followed when fulfilling a customer’s order.

Development streams

These are the activities required to convert a business theory into a digital solution. An example of a development stream is developing and deploying a software application.

2. Business capability maps

These are models showing what a business does to reach its objectives.

These maps show an enterprise’s particular ability that can help it achieve certain outcomes.

An example of such a capability may be proper remuneration of its employees to motivate them to offer their best. 

For a product distribution company, such an ability may be its capacity to ship products, to make them readily accessible to the customers.

3. Process models

Process models refer to the various workflows of a business grouped together.

These models allow the visualization of business processes to understand procedures and automation better.

Common types of process models include:

  • Analytical model
  • Descriptive model
  • Domain-specific models

What is enterprise business architecture development?

Enterprise business architecture development is the process of integrating fragmented applications and systems. 

The integration process can be divided into phases, namely:

  1. Determining the baseline architecture
  2. Creating the target architecture
  3. Formulating an architectural transition plan
  4. Implementing the new architecture 

What are the typical deliverables of enterprise business architecture?

Some deliverables are business outcomes (such as a strategic roadmap), and others are internal artifacts that enable the organization to make decisions (such as an enterprise architecture blueprint). 

Here’s a list of some typical deliverables:

  • Strategic roadmap
  • Business capability model
  • Business process models
  • Value chain analysis
  • Operating model

What does an enterprise business architect do?

Enterprise business architects help develop new systems by analyzing business processes, recommending improvement solutions, and supporting implementation. 

They help the C-level management define the business strategy and make conscious architectural choices to achieve the strategic vision.

These architects develop operating models and translate the models into roadmaps and workflows that will achieve the strategic goals.

The enterprise business architect works with a team including:

  • Business architect
  • Enterprise architect
  • Organization IT representative
  • Program manager
  • Business rep
  • Change manager

Enterprise business architect job description

An entry-level enterprise business architect should have a minimum of a Bachelor’s degree in Computer Science, Business Management, or any other related field.

In addition, they need 5 or more years of related work experience, with top command in Business and IT. 

Key responsibilities of an enterprise business architect include:

  • Analyzing a company’s enterprise architecture and identifying areas that need improvement.
  • Defining and guiding the course of enterprise business architecture
  • Aligning architectural strategy with technology goals
  • Working closely with other architects in an organization
  • Enabling organizational change
  • Bridging Business and IT

Enterprise business architect salary

The level of experience and the general industry compensation factors all play a part in determining the wages of a business architect.

 An individual’s competence and the amount of value they bring to the company hugely dictate their salary levels, with the senior architects earning up to six figures.

For example, according to ziprecruiter.com, the average annual salary of an enterprise business architect is $124,290 with the most experienced architects earning up to $240,500 per annum.

                                                      Source 

Is there an enterprise business architecture certification?

GlobalKnowledge offers Enterprise Business Architecture certificates in two levels:

  • Level 1
  • Level 2

To earn the certificate, you’ll need to score at least 70% and complete 5 courses within 2 years. These five courses include:

  • Introduction to Enterprise Architecture for the public sector 
  • Introduction to Business Architecture for the public sector 
  • Modelling Public Sector Programs and Services
  • Aligning Public Sector Business and IT strategies
  • Data Modelling or other core course
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