It allows for a high conceptual level sketch of business models and the ability to model their impact horizontally across the organization . In addition , the visual approach allows teams to rapidly iterate several scenarios before focusing the business model strategy on a given configuration .
Business Architecture While also enterprise-wide in scope , Business Architecture approaches analyze the impact of change cross-functionally . However , they typically provide an additional level of granularity from the high-level business models mentioned previously .
Alignment with transformation / modernization initiatives are at the core of Business Architecture methods . The Business Architect is the realist that makes the change happen . It is with the business architecture that an organization ensures alignment with strategy and business operations . Often , it is used in the context of Enterprise Architecture to derive the impact of strategy on enterprise IT capabilities .
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However , while business models tend to focus on how organizations create , deliver and capture value – target operating models provide a high level design of the organization ’ s future operating model .
Business and Enterprise Architecture approaches to mapping change are being used in public sector to meet the requirements of the Affordable Care Act from the Obama Administration as well as in Canada for modernization efforts in the federal government . In the private sector , business architecture is being used to implement change and transformation in insurance , banking and other sectors .
Business Capability and Target Operating Models Business models and target operating models are sometimes used interchangeably . However , while business models tend to focus on how organizations create , deliver and capture value – target operating models provide a high level design of the organization ’ s future operating model .
Business capability and target operating models typically define views of the organization ’ s processes , organizational structure , capability and IT support . The goal is to strategically optimize operations and service delivery . One way to understand it is that target operating models help organizations understand how the operational processes create value .
Key roles of Business Architecture
• Identification of business transformation opportunities
• Alignment and integration of extended enterprise value chain
• Clarification of enterprise roles and responsibilities
• Specification of business model design for re-engineering and automation
As such , target operating models are closely aligned with strategy , business architecture and change management programs . They can also often relate to strategic capability models , metrics / key performance indicators ( KPIs ) and sector benchmarks .
The tag words for this type of transformation tools are optimization and efficiency . Sectors with stagnant growth potential like banking and government will find these tools very useful for adapting to the ‘ new normal ’ of this economy .
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