Unpacking business-architecture
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Transcript of Unpacking business-architecture
the futures of business
10 Apr 2023 (c) Tom Graves / Tetradian 2010 1
Unpacking Business Architecture
Tom Graves, Tetradian ConsultingTOGAF Stockholm, November [email protected] / www.tetradian.com
the futures of business
Business architecture and the enterprise
or, What to do when the enterprise impacts on the business
the futures of business
What is ‘business architecture’?...and how does it differ from enterprise-
architecture?• No clear definition in TOGAF or elsewhere:
– TOGAF: “strategy”, “business drivers”, “business capabilities”, “business processes”
– “knowledge of the Business Architecture is a prerequisite for architecture work in any other domain (Data, Application, Technology)” – but doesn’t say what it is...
• Should it be ‘the architecture of the business”?– but what is ‘the business’, anyway?
the futures of business
A real business problem...
...“we’ve gone from the most-respected bank in our region to the least-respected bank – and it’s starting to hurt everything we do...”
• Serious impacts at whole-enterprise scale– customer-relations, employee-relations, government-
relations, business-processes, business-results
• Affects everywhere – hence architectural issue– “everything depends on everything else”
• Yet what is the ‘architecture’ of respect?– and how would we describe it, with TOGAF?
the futures of business
Let’s just step back a bit...
...think about this in strict architectural terms
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 6
Whole-of-enterprise architectureEach EA generation has had to extend the scope:• ‘Classic’ EA starts with IT infrastructure• IT tech-architecture depends on applications• Applications-architecture depends on data• Data-architecture depends on business-info
need• Information-architecture depends on business• Business-architecture depends on enterprise• Enterprise-architecture defines the contextAn enterprise-architecture must have whole-of-
enterprise scope – it’s not just detail-level IT!
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 7
Use the TOGAF maturity-model
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Level 5:Optimised
Prepare and maintain foundations for architecture
(Initialpilot test)
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 8
TOGAF scope in maturity-model
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Prepare and maintain foundations for architecture
(Initialpilot test)
Step 1: Know your business(focus on business-purpose)
Step 2: Clean up the mess(horizontal assessment)
Step 3: Strategy and stuff(top-down assessment)
Step 4: Work with the real world(bottom-up assessment)
Step 5: Pull together(spiral-out assessment)
Maintainthe dialogue
(Start EAdev’ment)
Level 1:Ad-hoc
Level 2:Repeatable
Level 3:Defined
Level 4:Managed
Level 5:Optimised
Prepare and maintain foundations for architecture
(Initialpilot test)
Main emphasis of TOGAF,for IT-architecture only
TOGAF 8.1
TOGAF 9
‘Big-picture’ strategy
Pain-points + wicked-problems
But business most wants us to work on these...(...everything else is just ‘detail stuff’)
the futures of business
Importance of ‘Know your business’• We need that ‘Stage 1’ work (‘Know your
business’) as the anchor for the architecture– high-level overview of ‘what business are we in?’
• TOGAF assumes this is ‘business architecture’– but TOGAF’s handling of business-architecture is not
well-suited for this purpose at present – we’ll come back to this later
• First requirement: distinction between ‘organisation’ and ‘enterprise’– we create an architecture for an organisation,
but about an enterprise
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Organisation and enterprise
Organisation and enterprise are not the same!
• Enterprise: a social structure defined by vision, values, mutual commitments
• Organisation: a legal structure defined by rules, roles, responsibilities
• The enterprise is – it provides motivation• The organisation does – it provides action
They’re fundamentally different – don’t mix them up!
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Organisation as ‘the enterprise’
From a business perspective, this is the effective scope of TOGAF’s ‘business architecture’
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Business-model as ‘the enterprise’
Typical business-model or supply-chain view(complete supply-chain should extend beyond this)
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Market as ‘the enterprise’
Overall market includes actors who do not yet have active transactions with us, or other transactions
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The real scope of ‘the enterprise’
The overall enterprise has many actors who may have only ‘intangible’ transactions / interactions with us(yet can have major impacts on our business)
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The architecture of respect
• Many of the sources for our bank’s problems were out in the extended-enterprise– not ‘visible’ to a conventional IT-oriented architecture
• We needed to ‘surface’ those sources so as to resolve them in the business-architecture– to do this, must be able to extend the architecture
beyond the organisation, beyond the market
• Identify unifying factors to rebuild trust– provide customers etc reason-to-connect with bank– pre-empt / minimise impact of anti-client incidents
the futures of business
A classic anti-client incident• ‘United Breaks Guitars’ http://www.youtube.com/watch?v
=5YGc4zOqozo
• Real business impacts for United Airlines– direct cost (PR, media etc) in excess of $20m?– contributed to short-term hit of c.$180m on share-value– long-term damage to brand, reputation etc incalculable
• Social-media gives anti-clients great leverage– complaints can now spread faster, and wider– (but with care, so can stories of customer-satisfaction)
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The market-cycle
transactions depend on (reaffirmed) reputation and trust
boundary of ‘market’in conventional
business-models
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So where does TOGAF fit into this?
...or, how would we use TOGAF for this type
of architecture?
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We need a more balanced view...
10 Apr 2023 (c) Tom Graves / Tetradian 2010 19
“everywhere and nowhere is ‘the centre’ of the enterprise-architecture”
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...current TOGAF is too parochial?
10 Apr 2023 (c) Tom Graves / Tetradian 2010 20
“IT-infrastructure is the centre of the enterprise-architecture”(but there’s a whole world out there beyond IT...)
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 21
The TOGAF ADM: an old friend...
• Designed for IT-architecture• Focus is IT/business alignment
RequirementsManagement
G.Governance
and Compliance
E.Opportunities
andSolutions
C.Develop
Data / Apps Architecture
A.ArchitectureScope and Purpose
Preliminary:Framework,
Principles and Core Content
H.Architecture
Change Management
B.Develop
Business Architecture
D.Develop
TechnologyArchitecture
F.Migration Planning
BUT...• Increasing
consensus that EA is more than IT
• EA as ‘the architecture of the enterprise’
SO...• How can we use
TOGAF beyond IT?
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 22
...with an unfortunate kludge?
Classic scope of IT-based ‘enterprise architecture’
RequirementsManagement
G.Governance
and Compliance
E.Opportunities
andSolutions
C.Develop
Data / Apps Architecture
A.ArchitectureScope and Purpose
Preliminary:Framework,
Principles and Core Content
H.Architecture
Change Management
B.Develop
Business Architecture
D.Develop
TechnologyArchitecture
F.Migration Planning
BusinessArchitecture
Data Architecture
ApplicationsArchitecture
TechnologyArchitecture
IT(3% of enterprise)
Everything not-IT ?(97% of enterprise)
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TOGAF’s ‘business architecture’......in essence, ‘anything not-IT that might impact IT’
• To be blunt, ADM Phase B is not very usable– inadequate context: where does everything fit?– inadequate layering: ‘big-picture’ strategy mixed in
with ops-level process, ‘scenarios’ are just use-cases– inadequate instructions: provides lists of models that
could be useful, but without explaining how or why
• Clean-up Step 1: describe context and patterns
• Clean-up Step 2: clarify layering• Clean-up Step 3: consistency for models
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Step 1: Context and patterns
...or, rethinking the real pattern behindTOGAF Phases B, C and D
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Look at pattern, not content
• We naturally focus on our ‘own’ area of interest– for TOGAF 8/9, this is IT-infrastructure– the layers are actually layers of ‘distance from self’– Phases B/C/D successively focus in on our area of
interest, each ‘layer’ providing context for the next
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Same pattern at larger scope
• For business-architecture, repeat the pattern– architecture of business becomes key focus (‘Phase D’)– layers are ‘distance from business-organisation’– Phases B/C/D focus in on business-architecture, each
‘layer’ providing context for the next
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Scope of enterprise-architecture
(complete EA includes many other intersecting ‘architectures’ – security, process, brand, organisation etc)
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Step 2: Layering and cycles
...or, where Zachman really works with TOGAF
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 29
Scope of enterprise-architecture
• Big-picture: vision, strategy, overview, ‘business of business’• Common: interfaces etc common to all implementations• Detail: implementation-specific, context-specificAligns well with service-oriented architecture for the whole enterprise
BusinessArchitecture
Data Architecture
ApplicationsArchitecture
TechnologyArchitecture
Big-picture [Business-purpose]Zachman rows 0-2
Common / ConnectionZachman rows 2-3
Design / DetailZachman rows 4-6
[People](FEAF labels this as ‘Human Capital’)
[Things](FEAF labels this as ‘Other Fixed Assets’)
[Information]
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Layers of abstraction
(row-0 = ‘always’; rows 1-5 = far-future to near-future; row-6 = past)
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Cycles of structural dependency
(adapted from classic Group Dynamics project-lifecycle and VPEC-T framework)
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Strategy, tactics, operations
(overall cycle and relationships need to be in balance)
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The ‘quick-money’ failure-cycle
(this was a key source of problems for the bank – too short-term focus,with the classic “last year +10%” used as a substitute for strategy)
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Step 3: Consistency for models
...or, service-oriented architecturefor the whole enterprise
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Everything serves the vision
• The vision describes the shared aims of the entire enterprise• We observe and learn from what we achieve in the real world• Everything in the enterprise is a service towards the vision
(a literal ‘service-oriented architecture’
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The structure of vision• Vision is the overall anchor for everything
– ‘vision’ in the ISO9000 sense – i.e. not ‘marketing puff’
• Vision-descriptor has distinct 3-part structure– focus [noun]: context or things of concern to everyone– action [verb]: what is to be done to or in the focus– qualifier [adjective]: why this is important to everyone
• Example: ‘ideas worth spreading’ (TED conferences)
– ‘ideas’ (focus)– ‘worth’ (qualifier)– ‘spreading’ (action)
Components may be in any order, but all must be present
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All services have same structure
• Service exists at intersection of value and supply-chain• Service creates value towards the vision of the enterprise• Interactions / flows before, during, after main transaction
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Including guidance and investors
(yes, I know it looks like Robbie-the-Robot, but that’s just how it came out...)
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 39
Identify internal content of servicesUse extended-Zachman to support whole-EA
At Operations level, we should be able to describe every service as:
What How Where Who When Why
Asset
What
ObjectInformationRelationship
Value
(examplesegment)
<asset>
(revised)
(original)
with
Function
How
MechanicalIT-basedManualAbstract
<function>do
Location
Where
PhysicalVirtual
RelationalTemporal
<location>at
Capability
Who
RulesAnalysisHeuristicPrinciple
<capability>using
Event
When
PhysicalVirtual
RelationalTemporal
<event>on
Reason
Why
RulesAnalysisHeuristicPrinciple
<reason>because
-- this is an ‘architecturally complete’ pattern or composite
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Cross-links to market value-cycle
Many interactions with extended-enterprise relate to Value-Proposition only – Purpose, Values, People, Policies
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Layers – row-0 (vision)
ZapaMex is a fictitious shoe-retailer (Las Zapaterias de Mexico) – we developed this model-set as a ‘demonstrator’ for the bank
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Layers – row-1 (scope)
Row-1 consists only of lists of ‘relevant entities’ – for example, the ‘Who’ section lists key actors in the overall enterprise
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Layers – row-2 (business-services)
Row-2 describes the relationship between the selected ‘relevant entities’ – for the enterprise to be effective, every entity must be accounted for somewhere in the overall system
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Layers – row-3 (service content) [1]
Manufacturing’s view of the overall service, ignoring everything and everyone outside its scope (much like IT often does... or many would-be business-models)
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Layers – row-3 (service content) [2]
a more realistic view of the business-architecture, including activities and flows that are needed before and after the main transactions
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Layers – row-3 (service content) [3]
a more complete scope for the business-architecture
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Services - guidance
Keep the service on-track to the enterprise vision
• Direction – provide strategy, futures-services, planning, performance-tracking
• Coordination – connect this service to others to coordinate run-time processes, change-projects and longer-term development
• Validation – develop awareness and capability for each value and quality associated with the vision, and audit performance against that value
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Layers – rows 3-5 and row-6
• Rows 3-5 are very similar to each other, and will be modelled as services in much the same way on the Enterprise Canvas– only essential difference is the level of detail:
• row-3 (‘logical model’): implementation-independent• row-4 (‘physical model’): implementation-dependent• row-5 (‘action plan’): complete deployment detail
• Row-6 is records of action etc – always relates to the past, not the future– includes all metrics, history, performance-records
etc– use in reviews to link action etc back to vision
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How do we do all this in TOGAF?• Option 1: retain existing Phase B/C/D, but
move everything up a couple of notches– Phase B: the overall enterprise (‘Big-picture’)– Phase C: market + supply-chain (‘Common/Connection’)– Phase D: business-architecture (‘Design/Detail’)
• Option 2: rethink ADM to support any scope– Phase A: identifies purpose for iteration (‘Aim’)– Phase B: assess main time-horizon (‘Base’)– Phase C: assess comparison time-horizon(s) (‘Compare’)– Phase D: do gap-analysis (‘Difference’)
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 50
Option 1: extend the scope...
Change the labels / focus for Phases B, C, D
RequirementsManagement
G.Governance
and Compliance
E.Opportunities
andSolutions
C.Develop
Data / Apps Architecture
A.ArchitectureScope and Purpose
Preliminary:Framework,
Principles and Core Content
H.Architecture
Change Management
B.Develop
Business Architecture
D.Develop
TechnologyArchitecture
F.Migration Planning
BusinessArchitecture
Data Architecture
ApplicationsArchitecture
TechnologyArchitecture
Phase B Big-picture / Business
Phase CCommon / Connection
Phase DDesign / Detail
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 51
Option 2: rethink the structure...
Requires more radical change, but also more versatile
C.Develop
Comparison Architecture(e.g. ‘As-Is”)
B.DevelopPrimary
Architecture(e.g. ‘To-Be’)
D.Conduct
Gap-Analysisfor change
Repositories for Architectures / Issues / Risks /
Requirements etc
G.Governance
and Compliance
E.Opportunities
andSolutions
A.Architecture
Iteration Scope and Purpose
Preliminary:Framework,
Principles and Core Content
H.Architecture
Assessment / Improvement
F.Plan
Implementation
• Iterative – ADM cycles can include other cycles, and can be any duration from a couple of hours to a couple of years
• Unrestricted scope – can address any scope – not constrained to predefined scope such as the ‘four architectures’ of standard ADM
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Some alternate approaches• Business Model Generation (Osterwalder et al)
(www.businessmodelgeneration.com)– probably the business-modelling technique - describes systematic
TOGAF-compatible process to model business drivers etc
• recrEAtion (Chris Potts) (see www.dominicbarrow.com)– uses fiction to describe a whole-of-enterprise architecture, with an
emphasis on business-specific ‘guiding ratios’
• Lost in Translation (Nigel Green et al) (www.LIThandbook.com)– introduces VPEC-T (values, policies, events, content, trust) – a path to
improved communication between business and IT
• Enterprise Architecture as Strategy (Ross, Weill et al)– use of IT-oriented architecture to underpin business-strategy – popular
introduction to enterprise-scale architecture for IT-architects
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Summary• Enterprise-architecture is architecture of the
whole enterprise – not solely the enterprise-IT
• TOGAF at present is focussed on IT-architecture, but with some amendments also works well at whole-enterprise scale and scope
• Viewing everything as services provides consistency across all enterprise scope– ‘Enterprise Canvas’ model provides a means to link
different models in different layers
• Enterprise culture is the real key to enterprise-architecture
the futures of business 10 Apr 2023 (c) Tom Graves / Tetradian 2010 54
Unpacking business architecture
Any questions?
(or answers, perhaps?)
Thank you!
the futures of business
Further detail: books by Tom Graves• Doing Enterprise Architecture: process and practice in the
real enterprise
• Everyday Enterprise Architecture: sensemaking, strategy, structures and solutions
• Mapping the Enterprise: modelling the enterprise as services with the Enterprise Canvas
• Bridging the Silos: enterprise architecture for IT-architects
• The Service Oriented Enterprise: enterprise architecture and viable systems
• Real Enterprise Architecture: beyond IT to the whole enterprise
• SEMPER and SCORE: enhancing enterprise effectiveness
• Power and Response-ability: the human side of systems
(see tetradianbooks.com for details)
10 Apr 2023 (c) Tom Graves / Tetradian 2010 55