The pandemic accelerated the need for businesses to take part in a digital-first world. Many organizations were not equipped to be digital-first. As a result, many underwent a digital transformation over the last few years to achieve this.
To drive successful digital transformation, an organization should take a 10,000-foot view. It should apply a wide lens to its goals and vision. Is this considered an assessment of the business architecture vs. enterprise architecture?
Often used interchangeably, the two have distinct differences. Read on to learn more about how they differ, the advantages of both types of architecture, and which is right for you.
What Is Business Architecture?
Business architecture is a sub-component of enterprise architecture.
Business architecture does not just encompass processes that happen within a business. Business architecture is how an organization and its teams are structured. It also looks at how it uses information and internal processes to deliver the strategy and goals of the company. It is the practical and pragmatic execution of the strategy, to bring it to life.
Business architecture refers to how teams within an organization are structured and work together. It includes how internal processes are implemented to ensure that work can be done.
Every organization has many functions including Finance, IT, Sales, and Marketing. The value of business architecture is that it seeks to understand how people, processes, and information interact. It then seeks to remove silos between them to drive higher efficiency.
What Is Enterprise Architecture?
Enterprise architecture aims to provide a roadmap for change when an organization is undergoing a redesign. Enterprise architecture provides a practical process for a firm to transform and outlines how it will get there. There are some major components of enterprise architecture including the following:
- The business architecture
- The information architecture
- The technology architecture
As a result, enterprise architecture includes more than technology. Rather, it takes a macro view of the organization as a whole as well as the ecosystem it operates in. You can read more about the benefits of enterprise architecture.
What Are the Differences Between Business Architecture vs. Enterprise Architecture?
Business architecture is a component of enterprise architecture. Enterprise architecture aims to understand how the business leverages information and technology. And how it uses this to deliver its strategy.
Business architecture provides a foundation upon which information and technology can be layered to make an organization more by:
- Removing silos to share information between functions
- Improve the use of technology to gain efficiencies through automation and digitization
- Evolve as the external environment (customers, markets, etc.) evolve
Kickstart Your Transformation
The primary difference between business architecture vs. enterprise architecture is that business architecture is a component of enterprise architecture. But they each serve a unique function, and should thus not be used interchangeably.
Business architecture refers to the processes of an organization. Enterprise architecture is a holistic view of the company expanding beyond business to include technology and information.