A Comprehensive Guide on Business Architecture
With the increased rate of technology innovations and digital trends, the organisations are under more pressure than ever before to keep up, while maximising the value and outcomes. Additionally, strong business architecture is imperative for effective strategy implementation, since business architecture represents holistic, multidimensional business views of capabilities, end‐to‐end value delivery, information, and organisational structure; and the relationships among these business views and strategies, products, policies, initiatives, and stakeholders.
In application, business architecture provides a bridge between an enterprise business model and enterprise strategy on one side, and the business functionality of the enterprise on the other side. It often enables the Strategy to Execution methodology.
Business Architecture is directly based on business strategy. It is the foundation for subsequent architectures, where it is detailed into various aspects and disciplines. The business strategy can consist of elements like strategy statements, organisational goals, and objectives, generic and/or applied business models, etc.
The strategic statements are analysed and arranged hierarchically, through techniques like qualitative hierarchical cluster analysis. Based on this hierarchy the initial business architecture is further developed, using general organisational structuring methods and business administration theory, like theories on assets and resources and theories on structuring economic activity.
Digital Transformation is the use of new, fast and frequently changing digital technology to solve problems. The key to improving operational efficiency is an optimal use of resources and an effective use of technology, while integrating strategic objectives with the operational processes.
Digital Transformation programmes often fail in absence of an overarching governance mechanism or holistic business blueprints clearly articulating what the future looks like. With clearly defined requirements, potentially in the form of formal Business Blueprints, organisations can harmonise the various change activities, roles and investments.
Innovation is not optional. It is a must. To not only survive, but thrive 10 years from now, companies will need to create businesses and cultures capable of driving the duality of optimal performance today and innovation for the future.
Generating ideas is only 5% of the challenge. At least 95% of innovation success is based in the ability to execute and bring amazing things to customers at full global scale. This is innovation realised.
VCG’s innovation approach is based on the premise of making hard things easy and imagining the art of the possible. As the future is many, not one, we jointly build and validate scenarios with you. We work with you to shape your future business model and deploy new offerings. We are constantly evolving to help you drive your business forward, turning threat into opportunity. Working together, VCG Design Thinking can help you design better outcomes and deliver long-lasting results.
Some of these digital solutions enable – in addition to efficiency via automation – new types of innovation and creativity, rather than simply enhance and support traditional methods.
One aspect of digital transformation is the concept of ‘going paperless’ or reaching a ‘digital business maturity’ affecting both individual businesses and whole segments of society, such as government, mass communications, art, medicine, and science.
Digital transformation is already underway but is not proceeding at the same pace everywhere. According to the McKinsey Global Institute’s 2016 Industry Digitisation Index, Europe is currently operating at 12% of its digital potential, while the United States is operating at 18%. Within Europe, Germany operates at 10% of its digital potential, while the United Kingdom is almost on par with the United States at 17%.
What we can do for you
We apply a proven methodology to help clients assess their operating models. Once VCG determines where opportunity exists, we work with clients to define a new operating model, test its feasibility and identify operational and tax benefits. Using client input, we then design a detailed future state operating model that addresses transfer pricing, value-added tax (VAT) and customs, finance and accounting treatments, and more. A revised operating model can help make your company a more agile and effective organisation that can leverage its scale and deliver future growth, enhancing shareholder value.