Business architecture focuses on the opportunity and capabilities of the organization. They are the driving forces behind a business’ strategy to do a merger, an acquisition, a divestiture, drive IT alignment, improve business processes or engage in an outsourcing activity. Certainly, various architectures are contextually implicit within the business and that of an anticipated strategy. Thus, the families of architectures (Enterprise IT Architecture, Business Architecture, and Strategic Business Architecture) that we discussed in our last article are part of the anticipated strategy and should be made “explicit”.
In Price Waterhouse Cooper’s (PwC) 16th Annual CEO Global Survey, the CEO’s who participated in the survey cited the following areas of concern: seek growth in U.S. markets, see consolidation and acquisition key activities, anticipate wide fluctuations in economic conditions due to governmental actions, build more resilient businesses to mitigate various risk scenarios, navigate the uncertain tax and regulatory actions, continue to reduce costs at an operational level, address the talent shortage that is anticipated for future, understand the customer’s needs better for growth, invest in more secure natural and energy resources, utilizing social media ethically to build better customer relationships, and mitigating cyber-security attacks on networks.
Certainly, the goal is to understand the business change, the impact on the strategic transformation effort. With that intent, each alternative will entail the development of initiatives, requirements, and projects that eventually result in the desired business results. Implicit in each alternative strategy declarations are assumptions and risks that should be “explicitly” assessed as a part of the analysis. So, understanding how risk is a part of any discussion of strategy in terms of the organization’s capabilities, its business continuity, and the yield are very relevant to delivering results.