The target business architecture, which defines how the organization must function in the future to be able to execute its strategy in full. To do so, this “blueprint” identifies the business capabilities, business functions, business processes, organizational units, know-how assets, information assets and brands the organization will need for this purpose and defines their desired key features. The target business architecture also identifies the most important technology assets and, when applicable, natural resources that will be needed. To balance urgency and diligence, the design of the target business architecture must be progressive, with each increment focusing on one or more slices of the organization. The order in which the slices are architected must be based on their importance to the implementation of the strategy.
The transformation plan identifies and sequences the transformation projects that must be executed during the next three to five years in order to improve the organization’s ability to execute its strategy. The transformation plan must encompass all of the slices of the organization that have been architected so far. Its elaboration must account for the need to continuously improve the organization’s financial performance; the extended organization’s capacity and readiness to transform itself; the need to build and maintain momentum throughout the implementation of the strategy; and the strategic importance, dependencies, benefits, costs, elapsed time to completion, assumptions and risks associated with the transformation projects.
The internal business architecture practice, which is responsible for architecting the target business architecture and elaborating the transformation plan, and contributes to the other strategy formulation, implementation and execution activities the organization must master to create and maintain a competitive advantage.
ASATE Group has developed three complementary frameworks – the ASATE Group Strategic Plan Framework, the ASATE Group Capability Framework and the ASATE Group Strategy Management System – to help organizations leverage business architecture to successfully formulate, implement and execute their strategy. These frameworks are documented in our book Business Architecture – The Missing Link in Strategy Formulation, Implementation and Execution.