How business architecture helps you navigate a tough economic backdrop

By Michael Downie – Senior Consultant

Although we aren’t in a recession yet – indicators are still pointing to an economic downturn – the macro economic environment, with the highest inflation in 15 years and climbing interest rates is a tough one for businesses to navigate. When times are difficult, organisations should be looking to tighten their business operations to stem unnecessary spend and ensure resources are maximised. Business architecture is a good place to start.

Having solid business architecture foundations in place helps organisations deal with these challenges and emerge with minimal impact. Business architecture involves taking a good look at an organisation’s business processes, business capabilities, organisational structures, value propositions, data and systems to identify areas to improve operations.

Clearly understanding your business architecture can bring organisations a lot of benefits. For a start, it provides a structured and repeatable approach for identifying areas for cost optimisation and aligns technology investments with business strategy. It also improves decision-making through a common language and methodology for architects and stakeholders to improve governance and increase organisational agility – it builds alignment between business strategy and IT transformation efforts.

Business architecture also develops a shared understanding between business executives on the organisational value streams which are not driving the right business outcomes and shines a light on areas for improvement. Business architecture also helps identify opportunities to streamline processes and implement the latest technology to optimise business processes and increase productivity.

To bring this life, a ‘business motivation model’ is an example of business architecture technique that helps organisations model ‘why’ they are in business using a series of questions to help the organisation stay relevant. The model can be used to support strategic decisions and form a basis for discussion during an ever-changing environment, such as one brought about through macroeconomic volatility. The model serves two purposes:

  • It can capture decisions about reaction to changes and the rationale for making them, increasing the clarity of decisions made
  • It helps make connections between the strategic decisions made by business stakeholders and the impact this has on the operational business, such as changes to business processes and organisational roles/structure.

In a nutshell, business architecture provides a set of tools, techniques and methods to help organisations make better decisions during economically challenging times. A solid set of business architecture foundations means organisations can be more efficient, more effective and can save money. Businesses will need every tool at their disposal to help them weather the economic storm and come out the other side with minimal impact.

Want to learn more? If you would like to learn more about business architecture and how Valcon can help you review yours to identify areas for efficiency improvement and cost savings, please email [email protected] and we’ll be in touch right away.

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