Monday, April 5, 2021

Strategic Choreography via Business Architecture

Organizations need to continue optimizing Business Architecture as an important tool to make strategic alignment, for deliberating, sustaining, and monitoring balance between knowing where you've been, where you are, and where you want to go and drive transformative change effortlessly.

Business Architecture plays an important role in designing and managing future businesses that can respond to multidimensional factors impacting business model, business operations, and business reputation. It is a series of methods and industry-standard practices to describe what you do, why, how, where, and who derives or how to do it. Business architecture can be very valuable for performing a wide array of tasks including strategic positioning, process optimization, and keeping the priorities in balance.

Strategic-choreography: Business Architecture is a great strategic planning tool for business leaders to gain a systematic understanding of how business relationships, market dynamics, and the organizational interrelationship between people and process, and orchestrate an ever evolving business ecosystem. It helps to leverage multi-choices of strategy, gain a long term strategic-choreographic perspective, understand business complexity and its dynamic ecosystem, not just a snapshot of the current business circumstances. With unprecedented uncertainty and high velocity of the business ecosystem, Business Architecture cannot be defined with a fixed set of deliverables such as value chains, functions, etc, but a strategic communication tool to ensure all related parties are on the same page and the strategy execution are on the right track to deliver better than expected business results.

Business Architecture is the visualization of the organization strategy, competences and operation layers and how they fit together. It is a practical tool to explore macro-environment, navigate critical business activities, predict opportunities and risks ahead, estimate the magnitude of the impact of events which may occur in strategic/operational plans, and deal with the variety of complexity effectively. It enables business leaders and managers to take a wide look around at what's going on outside the organization- the business ecosystem and how it might affect the organization, identifying opportunities and threats. And it helps to define the direction for organizations and build a roadmap of how an organization executes the strategy via top-down approach.

Process optimization and governance:
Enterprise becomes more complex than ever, Basic Business Architecture is a high level diagram describing the key business capabilities and flows, process, ontology, etc. Processes underpin business capability, Business Architecture should have the capability to transform the manual process and the business requirement to process design and process governance. The broader the reach of the business process, the more diffuse the truth becomes, and the more important it is to commit the time and energy required to reach a holistic view of the process in order to improve its effectiveness and efficiency.

Business Architecture as an effective tool enables process optimization and governance. Visual modeling languages can be used to represent business processes. The graphical representation of business process information has proven effective for presenting it to business stakeholders, etc. Enforcing mutual respects between organizational design and business process management can lead to effective business transformation. With BA as an effective process optimization tool, governance process/mechanism can be embedded into business processes and governance practices should be shared cross-enterprise collaboratively.

Prioritization in balance: There are too many things happening in the business today, there are both old problems and emergent issues, rising opportunities and hidden risks, etc. There is no way to create a definitive prioritized list without more business context. The business architecture equivalent takes a look at balancing the business priorities and forcing conversations that are otherwise difficult to have. It’s an important tool to help understand the core business of your enterprise and the problem to solve, set the priority to focus on things matter, leverage repeatable processes, and master expectation management.

A business architecture has to accommodate the fact that all organizations operate simultaneously as open and closed systems. It helps to facilitate the strategic communications within the business executives, engage employees by co-setting their work goals, and to highlight changes with standardization, coherence, and visualization of business improvement initiatives. It’s an effective tool to sustain a balance of diversified viewpoints, science and art, analysis and synthesis, democracy and unification; individualism and teamwork, and ride the tide of digital transformation.

All enterprises are designed to varying degrees of detail and with varying degrees of success, but it does not mean that they are architected seamlessly. It is important to reimagine the future of the digital business boldly, but make an objective assessment of the digital readiness carefully. Organizations need to continue optimizing Business Architecture as an important tool to make strategic alignment, for deliberating, sustaining, and monitoring balance between knowing where you've been, where you are, and where you want to go and drive transformative change effortlessly.






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