Anenterprise architectureis a description of an organization’s entire information technology systems and the processes, people, and strategy that accompany those systems. In recent years, many organizations have embarked on enterprise architecture efforts. Since 2001 (or according to some observers, since 1996) the US Federal government has been developing an enterprise architecture of the entire business of the Federal government. Considering the size of the Federal government, that enterprise architecture is an enormous endeavor.
Enterprise architecture—often abbreviated EA—is different from the business modeling we explain in this book, but there are some overlapping concerns and techniques. And many of the same vendors of business modeling tools also sell enterprise architecture tools, sometimes effectively targeting the same applica- tions at the two different markets.
Enterprise architecture has a much broader scope than business modeling. EA is concerned with the whole enterprise, capturing all the business processes, all the applications, all the data, and all the IT infrastructure in an enterprise. EA is
about creating an inventory that includes everything, something comparable to an asset inventory but focused on IT assets and the business processes they sup- port rather than physical assets such as furniture and buildings.
In contrast, the scope of business modeling is tightly focused on a particular business problem. For example, a business modeling effort might look at why it takes so long to purchase new equipment and how that procurement process could be shortened. To tackle that problem, business modelers would model only the procurement process, not the personnel recruiting process or the expense reporting process. A motivation model might be built, but only for the motiva- tions that are relevant to procuring new equipment.
Sometimes business models are created for deployment. For example, a busi- ness process model might be deployed in an execution engine. But not every business process in the enterprise is modeled and deployed, at least not all at once. Typically the processes whose execution will generate the most value are deployed first.
Because business models are focused on a particular problem, they are much smaller than enterprise architecture models. They are also much more detailed, with all the nitty-gritty that is important for solving the problem at hand. Because enterprise architecture models endeavor to span the enterprise, they have much less detail about any business process. They can’t afford much detail if they are to cover everything.
The broad inventory scope of enterprise architecture supports asking ques- tions about overlap and redundancy, Why do we need three different financial management applications? Can we migrate to a single application and lower our costs? Why do we have different processes for recruiting nurses, recruiting physicians, and recruiting staff? Can we combine the processes and simplify our work?
In addition to eliminating existing redundancy, enterprise architecture models can help to avoid creating the redundancy, or at least avoid adding to the prob- lem. For example, the US Federal budgeting process requires that agencies justify their IT spending. The justification needs to include how the spending helps the agency’s mission and how the spending fits in the existing enterprise architec- ture. Central budgeting authorities use these justifications to see where a pro- posed new system is redundant with another system in another agency. They turn down budget requests that would create redundant systems.
Sometimes enterprise architectures are used to provide a long-term picture of where an organization should be headed: to socialize a roadmap. An enterprise architecture can provide many stakeholders with a common picture about the business processes the enterprise will use and the technology that will be adopted to support those business processes.
Enterprise architecture always includes technology, inventories of the appli- cations and infrastructure owned and used by the enterprise. Often these appli- cations and infrastructure are traced to the business processes they support.
Business models by contrast are sometimes traced to technology models and
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sometimes they are not. Sometimes business models stand by themselves, with- out reference to any technology. It all depends on the focus problem: why the business model is being built.
Because enterprise architectures are cross-enterprise inventories, they are built to last. An EA model is intended to be updated every quarter or every year as things change. Business models are sometimes updated with the business, and sometimes they serve their purpose and are discarded. Again, it depends on the focus problem.
Business models are different from enterprise architecture models, but the two kinds of models play well together. In particular, existing business models can serve as components of a newly created enterprise architecture model. Most enterprise architecture modeling exercises include business process models. Instead of creat- ing new business process models for just this purpose, you can reuse existing busi- ness process models originally created for other purposes. A similar situation exists for motivation models. Some enterprise architecture efforts include modeling the goals and strategies. If an existing motivation model already exists, the existing goals and strategies can be reused for the enterprise architecture.
In organizations that have created an enterprise architecture, it is useful to tie new business models to the existing enterprise architecture. Model elements in a business model are traced to model elements in an EA model to show how the focused business model fits in the larger enterprise whole.
The business modeling techniques described in this book are largely applica- ble to enterprise architecture as well. For example, the techniques in Chapter 5 of creating detailed business process models for analysis also apply to the high- level business process models that are part of an EA. The techniques described in Chapter 7 of keeping models simple and understandable also apply to enter- prise architecture.
A business model is a map of a business, a simple representation of the com- plex reality. A business model can be valid or not, depending on whether it adheres to the rules of its modeling discipline. A business model can be of high or low fidelity, depending on how accurately it models the business.
To make business models more useful, we use specialized tools for creating them. These tools support us in building useful models—models that are valid, simple, attractive, and of high fidelity. We usually analyze the business models we have built. Often we simulate them. Sometimes we deploy them into an execution engine.
There are four business modeling disciplines: process modeling, motiva- tion modeling, rules modeling, and organization modeling. Each discipline has its own standards describing what valid models are and what they mean. Chapters 3–6 explain the four modeling disciplines in detail, starting with business motivation models in Chapter 3, models of what the business is trying to achieve and why.
CHAPTER
Business Motivation Models
3
Business motivation is the first of the four business modeling disciplines we describe in this book. A business motivation model describes what a business is trying to accomplish—the goals and objectives of the business. A motiva- tion model is also concerned with how the business intends to go about accomplishing the goals—the strategy of the business. A motivation model includes what is happening in the world that may represent an opportunity or a threat to the business and what is happening in the business itself that may be a strength or weakness. This chapter explains business motivation models.
After some consideration, your company, Mykonos Dining Corp., does acquire Cora Group, striking a cash and stock deal with the owner. Now the general man- ager of Cora’s flagship restaurant, Portia, has come to you with a problem. He is considering making a change to the menu. Portia’s entire menu is prepared fresh on the premises. Even the breads and desserts are prepared in-house, and the gen- eral manager thinks that this in-house practice has limited the variety of the breads and desserts that are offered. He would like to procure some breads and desserts from local bakeries.
The head chef is opposed. She argues that Portia is a different kind of restau- rant, that its mission is about cooking meals fresh, not serving food that others have prepared. Her argument is compelling, and the general manager has been puzzling it back and forth for several weeks as he attends to the daily demands of the restaurant. Now he seeks your advice.
This dilemma is not about the business processes of the restaurant. It is about something larger: why the restaurant exists, the goals it is trying to achieve, and the means it uses to achieve those ends. It is about thebusiness motivationof Portia.
The head chef’s opposition to the procurement of breads and desserts is not just a difference of opinion about the most profitable direction for Portia. She cares about the restaurant. She invests her time and energy in creating the best food she can because the restaurant has personal meaning for her. Some businesses
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spend a lot of time and attention figuring out what they should be doing and why. Some businesses prefer to focus instead on operational matters. But employees always care about motivation. Work is always as much about creat- ing meaning for the people performing it as about earning a living. Business motivation matters.
We build business motivation models—models of what a business is trying to do. Business motivation is the first of the four modeling disciplines we cover in this book. Business motivation models include goals—what the organization is trying to do. A motivation model for Portia might include a goal like Prepare Comfort Food for Urbane Customers.
Business motivation models includestrategies—how the organization is trying to achieve its goals. A motivation model for Portia might include the strategy Extend Dessert Menu with Cakes from Local Bakeries.
Business motivation models also include influencers—justifications of the goals and strategies in terms of what is happening in the organization or out in the larger world. For example, Portia’s business motivation model might include the influencer Restaurant Customers Demanding More Variety. This is a trend about the market Portia is serving, a trend that has an effect on whether Portia’s goals and strategies will be successful.