Phase B: Business Architecture

For describing the organization structure, the ArchiMate language defines the Organization viewpoint:

The organization structure is often represented as a tree, as shown in Figure 9, although the organizational decomposition approach used by both the ArchiMate and TOGAF Standards has far more options than a simple tree-style organizational chart. This view shows the high-level organization structure of ArchiSurance, with its main locations and departments. Alternatively, a nested diagram can depict the subdivision of the organization’s departments (Figure 10).

Figure 9: Organization View

Figure 10: Organization Decomposition (Nested)

To express at a strategic level how ArchiSurance creates value for its customers, it uses value streams. The main, high-level value stream for acquiring insurance products is depicted in Figure 11 (using the icon notation for value stream). This shows the stages in the value production, the value contribution of each stage, and the resulting outcome for the customer.

Figure 11: Value Stream

ArchiSurance needs to improve or change several of its capabilities to implement the strategic and operational changes it envisages. To that end, it has created a capability map to get a clear view of its current capabilities, inspired by the Panorama360 reference model for the insurance industry.^[1] This is shown in Figure 12.

Figure 12: Capability Map View (Baseline)

The stages of the value stream shown in Figure 11 are supported by various capabilities. This is shown in the cross-mapping in Figure 13. The capabilities are realized by the behavior of the organization; for example, by the business functions shown in Figure 14. These capabilities also need to be supported by the right resources.

Figure 13: Value Stream – Capability Cross-Mapping

An ArchiMate business function groups behavior based on a chosen set of criteria, typically required business resources, and/or competencies.

The main business functions distinguished by ArchiSurance are:

Some of these business functions are replicated in the three divisional back-offices of ArchiSurance.

To model business functions and their relationships, we can define a Business Function viewpoint and specify its contents using the viewpoint mechanism defined in the ArchiMate language:

The TOGAF counterpart of this viewpoint is the Functional Decomposition diagram.

Figure 14 shows the main business functions of ArchiSurance, as well as the most important information flows between the functions and external parties.

Figure 14: Business Function View (Baseline)

Note that business functions are distinct from capabilities. Capabilities represent the current or desired abilities of an organization, realized by its people, processes, information, and technology. They are focused on specific business outcomes, and are used for strategic planning purposes, as described in Phase A: Architecture Vision (on page 10). In contrast, business functions describe what the organization actually does; they are explicitly managed, and are more closely aligned to the organization structure. Multiple business functions may (together with other elements) contribute to the realization of a capability.

An example is the new capability Digital Customer Management that ArchiSurance wants to establish as part of their Digital Customer Engagement strategy (see Figure 13). This capability will in part be realized by the customer relations business function, but also by a (yet-to-be realized) business function Business Intelligence, and by various resources such as data analysts, risk managers, data acquisition and analysis applications, and customer behavior data.

Of course, when drawing a map of the current capabilities of the organization, its current business functions will often figure prominently, since what an organization does must be something it is able to do. In describing the Baseline Business Architecture, the value of a capability map therefore mostly lies in the analysis of the current versus desired levels of capability on the one hand, and in uncovering capabilities that the organization already possesses but does not recognize or manage as business functions on the other. Figure 15 shows some of these relationships between the main capabilities of ArchiSurance as listed in Figure 12 and some of the business functions mentioned in this section. Note that not all capabilities are listed, since the business functions in this section are focused on the primary operations of ArchiSurance and not on, for example, its management. Figure 15 also shows the letter notation that signifies the layer of a concept (‘S’ for strategy and ‘B’ for business layer).

Figure 15: Capability Realization (Baseline, Partial)

An ArchiMate business process groups behavior based on an ordering of activities. It produces a defined set of products or services. A process architecture shows the most important business processes and their relationships, and possibly the main steps within each of the processes. It usually does not show all the details of a process flow, which is the purpose of business process design languages. We can define a Business Process viewpoint and specify its contents using the viewpoint mechanism defined in the ArchiMate language:

The TOGAF counterpart of this viewpoint is the Process Flow diagram.

Figure 16 shows the two central business processes of ArchiSurance, with their high-level sub-processes: “issue new policy”, which is performed when selling a new insurance product, and “handle claim”, which is performed when a damage claim has been received. While the details of these processes may differ for the different types of insurance product, the main steps are the same.

Figure 16: Business Process View (Baseline)

The business processes of ArchiSurance realize the stages of its value stream (Figure 11), an example of which is shown in Figure 17.

Figure 17: Value Streams are Realized by Business Processes

In the Business Architecture, we also show how the Target Architecture realizes the key business requirements. For this purpose, the TOGAF Standard specifies a Business Footprint diagram. In the ArchiMate language, this can be expressed using the Requirements Realization viewpoint, defined as follows:

The example in Figure 18 shows how business requirements established in the Architecture Vision phase are realized by elements in the architecture.

Figure 18: (Partial) Requirements Realization View

The Digital Customer Intimacy strategy of ArchiSurance also requires changes to the Business Architecture. First of all, new capabilities are needed, as previously identified. Figure 19 shows these new capabilities in the context of the pre-existing “customer management” and “policy and claim management” capabilities.

Figure 19: Capabilities Gap Analysis

These capabilities require personnel with the right knowledge and skills for the digital age, smart devices for data acquisition, and the customer data itself.

On the left-hand side in Figure 20, you see the capabilities and resources related to the Rationalization strategy, and on the right are those linked to the Digital Customer Intimacy strategy.

Figure 20: Resource Map View (Target)

These resources themselves are realized by the rest of the Business, Information Systems, and Technology Architectures that are the subject of Phases B, C, and D of the TOGAF ADM. A small part of what this may result in is shown in Figure 21. Note that this does not depict all elements needed to realize these resources, but only a representative sample, again showing the implementation of the Rationalization strategy on the left and the Digital Customer Intimacy strategy on the right. In practice, separate views will often be created to show how individual capabilities and resources are realized.

Figure 21: Resource Realization View (Target)