Business Architecture Modeling refers to a process for defining the company according to the capabilities that are needed in each business area to “keep the lights on” and to execute the strategic plan. Each business area has a unique set of capabilities that it must have in order to act on its strategic goals and objectives (the business area’s piece of the strategic plan) at a high level of effectiveness for the company. Business Architecture modeling precisely defines these capabilities, the capabilities needed for the current strategy, identifies capability gaps (what’s missing or underdeveloped) and identifies projects to address these capability gaps.
This method is sometimes used as in support of organizational development, strategic planning and corporate projects prioritization. It is a “capabilities driven” approach to improving organizational performance. It is also extremely helpful in prioritizing and tracking improvement activities throughout the company.
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