Saturday, July 18, 2020

The “Logic” Behind Business Scenes

 It’s important to deal with the nonlinear, multi-logical situation in today's digital dynamic, understand the logic behind business scenes for accelerating business performance, and improving organizational maturity.

Digital organizations are dynamic and ever-evolving systems with a set of interwoven threads. It is important to realize that there are basic principles and rules that make it work and there are different types of business logic and methodology behind business scenes.


The logic was discovered, much as we discover mathematical truths. Logic is often nonlinear and multidimensional in today’s “VUCA” world.



Strategic logic: It’s important to understand the coherent business logic of the enterprise. Business logic comprises business rules that express organizational policy such as channels, location, logistics, prices, products, and workflows. At the strategic level, business logic is nothing but a Business Model to make a profit. A strategy is the organization's competitive "logic" manifested through organizational actions. Business logic at the strategic level uncovers the “magic formula” on how organizations achieve multidimensional business value.

In specific, business logic at the strategic level uncovers why the business exists, who are their customers, and how to meet the customers’ needs. The "people" piece is a necessity in analyzing your customer and market segmentation. It is then that decides how your strategy, in light of all the other factors, especially competition, is to be implemented to differentiate your organization from your competition. Strategic Architecture is an important framework that considers the interoperability concerns (Business Logic) about how the end customer will be served to achieve business goals.

Capability Logic: Corporate capability is the collective ability to implement strategy, innovation, and make changes. The capability logic unfolds the magic behind the success of strategy management. By understanding the logic underneath business capability, the business management readily considers service, people, process, information, asset, etc, dimensions of the adequacy of the capability to fulfill their business strategy. The capability logic is a bit too detailed in nature to be addressed at a strategic level. It starts to come into play at the operational level, the real detailed business logic tends to get captured in solution architecture models.

At the capability level, enterprise architects consider capability increments based on developed business logic, as well as the actual implementation of capabilities in which environment, technology, applications, databases come into the picture that is generating a capability to support business logic at the strategic level. A well-designed solution architecture helps to eliminate confusion, clarify capability logic, apply a holistic view, and take customized approaches to each problem, and make the continuous adjustment.

Segment Logic: At the segment level (Program and Portfolio Level), business logic supports business functions (Business, Data, Application, Technology). Architecture at the segment level supports strategic level capabilities. Enterprise Architects considers the individual Business Units inside the organizations and it further considers Business Processes supporting the end capabilities. If the logic is clear enough, it can be captured and automated via coding, within process logic, there's data logic, application logic., etc.

Keep in mind, the business logic is not always the single version of the truth. From the process management perspective, it's a matter of perspective from which angle of the process you are looking from, the truth is in the eye of the beholder. Everybody involved with the process thinks they know how it works and where the issues are, but putting independent eyes upon it almost always ends up painting a somewhat different picture. You need to set up a framework that allows for differing opinions about what process stands for, what it means, or what’s important about it, etc. It's about overall business benefit from process management when integrating all related parties’ viewpoints.

Integration Logic:
Many IT-enabled business solutions have tough issues such as integration. Integration logic needs to be captured to ensure the organization as a whole is superior to the sum of pieces. There are multiple integration logics such as technical integration, operations integration, GRC integration or customer-centric integration, etc. If there is a lack of the whole picture with cohesive integration logic, separate parts of the organization will care for their own part and maybe for interfaces and not more.

Integration has a set of costs and benefits that are determined by the situation on hand and what is integrated. It has to be done with a “big picture,” having the solution architecture in mind. Solution Architecture helps to conform to the well defined industrial standards and make integration and communication easier, and make the tracking of emerging issues and inconsistencies between solutions easier. It’s crucial to implement integration logic combined with the process maturity to ensure ROI, security, data consistency, and interoperability.

Running a business is fundamentally about how to apply logic to solve problems, implement ideas, and guild teams to make things happen timely. The nonlinear vertical business logic comes through different characteristics such as mixed structures, hyper diversity, volatility, unpredictability, and increased flux. This logic is acquired through a learning process involving discourse within the context of an organization's culture. It’s important to deal with the nonlinear, multi-logical situation in today's digital dynamic, understand the logic behind business scenes for accelerating business performance, and improving organizational maturity.




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