Building capability maps and business function architectures
The goal of this step, on a strategic level, is to check the suitability between the business capabilities of the enterprise, the business functions delivering this capabilities as well as the required functionalities or business skills.
This consists of the following tasks:
Describing the Existing Architecture of Business Capabilities
Building the business capability map
A business capability map describes what the enterprise is capable of producing for its internal needs or for meeting the needs of its clients.
A business capability map is a set of business capabilities with their dependencies that, together, define a framework for an enterprise stage..A business capability is a set of features that can be made available by a system (an enterprise or an automated system).The capability map thus presents the business capabilities of the highest level for one of the stages of the enterprise.
In this example, the business capability to deliver pizzas is based on the business capability to cook them.
For more details on business capability map diagrams, see "Creating a business capability map diagram", page 41.Defining the performance indicators for business capabilities
The main business capabilities are assessed with respect to different criteria represented or dimensions (KPI dimension).
For example, the competitiveness of a delivery capability is measured according to a 'delivery time at target cost'.
These dimensions give rise, for a given enterprise stage, to key performance indicators or KPIs.
For example, a delivery capability can have a target of 'delivery time in less than 25 minutes for a cost price less than 10% of the sales price' within the framework of a given enterprise stage.
A composite KPI defines the grouping of elementary KPIs that should be examined together in order to appreciate the performance of an item with KPI. E.g.: a delivery must take place in less than 20 minutes and cost less than 5 euros.For more details on KPIs, see "Using KPIs", page 68.Describing the business capability breakdown
Business capabilities are then described more precisely to identify:
• a more detailed granularity capability breakdown;
• the expected effects of the capability;
• the business skills or functionalities required for each of them;
• the dependencies between capabilities (expected effect of one dependent from the result of the other).
For example, the business capability that consists of preparing pizzas is broken down into a number of business capabilities: "cook the pizzas", "Use the oven".
HOPEX Business Architecture provides a report available detailing the breakdown of capabilities.
For more details on breakdown maps, see "Breakdown Report of Business Capabilities", page 104.Defining the business skills and functionalities associated with business capabilities
To be able to then check that each business capability is correctly implemented by suitable solution building block, you must define the required business skills and functionalities.
For example, the "Cook the pizzas" business capability requires skills to "Make pizza dough".
A functionality is a service required by an org-unit in order to perform its work. This functionality is generally necessary within an activity in order to execute a specific operation. If it is a software functionality, it can be provided by an application.For more details on skills and the business capability functionalities, see "Defining the business skills and functionalities associated with business capabilities", page 45.Describing business functional area elements
Describing a business architecture environment
A business architecture environment represents the relationships of a business functional area with its partners.In this example, the business function architecture environment of the pizza-making company is made up of the historical business function architecture and its interactions with external partners: clients and suppliers. You can see in the diagram that delivery is outsourced to a third party deliver partner.
An application technical architecture describes one of the configurations possible for application deployment. It describes how the different technical areas of the application are connected to each other and the technologies and the communication protocols that they use. An application can have a number of possible technical architectures (E.g.: autonomous installation, horizontal or vertical deployment, etc.)A business partner designates a third-party who is in relation with the enterprise within the framework of a given business architecture environment. Examples: private sector client, regulatory organization, supplier.
Communications between the objects are represented by interactions.
An interaction represents a contract established in a specific context between autonomous entities that are internal or external to an enterprise. These entities can be enterprise org-units, applications, activities or processes, as well as external org-units. The content of this contract is described by an exchange contract.Describing a business functional area
An application technical architecture describes one of the configurations possible for application deployment. It describes how the different technical areas of the application are connected to each other and the technologies and the communication protocols that they use. An application can have a number of possible technical architectures (E.g.: autonomous installation, horizontal or vertical deployment, etc.)In this example, the "Pizza making" history functional area is based on the business functional areas for selling, delivering and preparing pizzas.
Defining the business skills and functionalities associated with business functions
To be able to subsequently check that each business capability is implemented by a suitable business function, you must define the required business skills and functionalities, for each business function.
A functionality is a service required by an org-unit in order to perform its work. This functionality is generally necessary within an activity in order to execute a specific operation. If it is a software functionality, it can be provided by an application.For more details on skills and the business capability functionalities, see "Defining the business skills and functionalities associated with business capabilities", page 45.Describing value streams
A given business functional area runs one or more processes to provide the services expected within the framework of their interactions with other business functions or business partners.
A value stream is represented by a sequencing of value creation steps managed by the business functions of the architecture.
A value stream is an end-to-end collection of Value Stages that creates an outcome for a customer, who may be the ultimate customer or an internal end-user of the value stream.A value stage is a distinct, identifiable phase or step within a value stream that has a unique entrance criteria, exit criteria, and identifiable participating business function or business functional area.
For more details on value streams, see "Describing value streams", page 63.Describing business capability implementation by the business functions
This involves connecting the business capability, which corresponds to what we know how to do or what we want to do and which represents the goal to be achieved, to a way of achieving what is represented by a business function or a business functional area at a conceptual level, that is, upstream of organizational and technical choices.
An application technical architecture describes one of the configurations possible for application deployment. It describes how the different technical areas of the application are connected to each other and the technologies and the communication protocols that they use. An application can have a number of possible technical architectures (E.g.: autonomous installation, horizontal or vertical deployment, etc.)This business functional area will itself carry the value processes whose steps will require its business function components.
Construction of the business capability map on the one hand and the business architecture environment on the other hand is used to check that the business capabilities are implemented by the business functions.
For more details on the businesses associated with business capabilities, see "Describing component fulfillment", page 66.HOPEX Business Architecture provides a report that presents the result of the implementation of business capabilities by business functions.
Example of business architecture breakdown report
For more details on the breakdown of business capabilities, see "Breakdown Report of Business Capabilities", page 104.