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Enterprise Architecture Matters

Adrian Grigoriu

Business Models versus business modelling

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A business model is neither a business architecture nor the result of "business modeling", even though they sound related. The result of business modeling is not a business model but a business architecture. 

A business model describes the elements to consider in order to deliver a profitable product. For example, Osterwalder's view, summarised in a canvas template, consists of nine elements: from key processes, resources, channels and partners  to cost and value proposition.

A business model does not depict the components of the Enterprise and their relationships as an architecture does. 

The business model though would benefit from a business architecture (or better enterprise architecture) that illustrates the enterprise functions, flows, channels and human and technology resources. 

As such, a business model cannot be used instead of a business architecture; a BA though would enable the business model evaluation and implementation. 
When you fill in the business model canvas you need to work out processes, resources, channels and costs, at least. That is easily and consistently done with a BA/EA.

An automated BA blueprint can enact, automate a business model, make it easy to play with various versions of business models since the BA can quickly exhibit the key processes, resources, channels, costs and partners.  

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Adrian Grigoriu blogs about everything relating to enterprise and business architecture, SOA, frameworks, design, planning, execution, organization and related issues.

Adrian Grigoriu

Adrian is an executive consultant in enterprise architecture, former head of enterprise architecture at Ofcom, the spectrum and broadcasting U.K. regulatory agency and chief architect at TM Forum, an organization providing a reference integrated business architecture framework, best practices and standards for the telecommunications and digital media industries. He also was a high technology, enterprise architecture and strategy senior manager at Accenture and Vodafone, and a principal consultant and lead architect at Qantas, Logica, Lucent Bell Labs and Nokia. He is the author of two books on enterprise architecture development available on Kindle and published articles with BPTrends, the Microsoft Architecture Journal and the EI magazine. Shortlisted by Computer Weekly for the IT Industry blogger of the year 2011.

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