Business Architecture in 2008
January 4th, 2008 by Matthew Newbould2007 could have been better…
For me, last year started full of hope and promise that companies where finally beginning to “get it”. Sadly as the year progressed that hope and expectation started to flag and by the end, it was fair thee well gone.
And yet as we move into 2008 I feel more positive than ever. For the last couple of years business architecture has been a choice to make or not make. More often than not the choice was not to bother for a whole host of reasons; too busy with existing programmes, no more bau capacity, cynicism due to earlier attempts and simple lack of budget. I think the most frustrating reason that I heard in 2007 was “we are not ready for that sort of thing yet”.
Not ready for that sort of thing? What sort of thing do people perceive business architecture to be? At its most basic level business architecture is about understanding your business from a customer perspective. Its not about understanding how all your systems hang together and which routes data is flowing through, nor is it about understanding how a plethora of metrics relate to something or other. It’s about discovering how you truly interact with the most important people in the world – your customers. Why would anybody not be ready for that sort of thing?
In almost every vision statement that exists you will see there will be something in there along the lines of “the number one provider of…” or “the best in class”. How many vision statements exist that do not rely on both your staff and your customers to help deliver it? Not that many – and if they do – then it’s a company you do not want to own any stock in.
So customers are important – in fact they are one of the most important parts of your business. How many companies view the customer as part of their business? Possibly quite a lot – for those that do, have you asked your middle managers if the customer is part of their business? Chances are they are not. They will mention costs, products, IT systems, targets, staff, outputs, MI and a whole host of other detritus but not many will mention the customer – try it, it’s an enlightening and sometimes frightening experience.
All of these elements are important but they are only important when viewed in relation to the customer. Costs could be kept to a minimum but if they result in driving all your customers away where’s the benefit? Products could have phenomenal margins but if no one wants them why bother? Your IT systems could all be clearly linked in a pristine service orientated architecture but if it’s an alien experience for your staff and customers is it really adding value? Yet some people still hold these things higher than the customer.
So what does 2008 hold?
When you take all of the above into consideration why would I feel more positive than the start of 2008? I suppose it comes down to the belief that it’s no longer a choice for a business – it has become a necessity. Prior to the end of 2007 customers had an almost insatiable desire to spend money and with massive rises in house prices combined with free and easy lending their desire was fed. That world has gone. House prices are stagnating at best and on the edge of collapsing at worst. Credit is going to be harder to acquire and more expensive. So those businesses that do not truly understood how they serve their customers are going to be in trouble. They will need to become world class in its truest sense; they will need to be capable of not only attracting customers but keeping them. That is only going to be achievable through understanding your customers and truly managing their expectations while they are with you.
To gain that knowledge and understanding you are going to need your own business architecture.