5.1 Phase B: Business Architecture

5.1 Phase B: Business Architecture

Phases B, C, and D are where detailed architecture is defined. The Foundation syllabus asks you to briefly explain the purpose of Phases B, C, and D and to describe the objectives of Phase B.

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The Purpose of Phases B, C, and D

The TOGAF Standard describes these phases as developing the domain architectures to support the agreed Architecture Vision from Phase A:

All three phases share the same step pattern, which is worth memorizing once:

1. Select Reference Models, Viewpoints, and Tools
2. Develop Baseline Architecture Description
3. Develop Target Architecture Description
4. Perform Gap Analysis
5. Define Candidate Roadmap Components
6. Resolve Impacts Across the Architecture Landscape
7. Conduct Formal Stakeholder Review
8. Finalize the Architecture
9. Create/Update the Architecture Definition Document

Each phase produces draft Architecture Definition Document and Architecture Requirements Specification content for its domain and candidate Architecture Roadmap components, which Phase E consolidates.

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Objectives of Phase B

1. Develop the Target Business Architecture that describes how the enterprise needs to operate to achieve the business goals, and respond to the strategic drivers set out in the Architecture Vision, in a way that addresses the Statement of Architecture Work and stakeholder concerns
2. Identify candidate Architecture Roadmap components based upon gaps between the Baseline and Target Business Architectures

Business Architecture is often a prerequisite for architecture work in the other domains, because it demonstrates the business value of subsequent technology work to stakeholders and gives the context from which data, application, and technology requirements are derived.

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Business Architecture Techniques Used in Phase B

The Phase B approach in the 10th Edition covers developing the baseline description and applying business capabilities, value streams, the organization map, information maps, and modeling techniques, supported by TOGAF Series Guides on each topic. The glossary definitions to remember are:

• Business Capability — "a particular ability that a business may possess or exchange to achieve a specific purpose"
• Value Stream — "a representation of an end-to-end collection of activities that create an overall result for a customer, stakeholder, or end user"
• Business Model — "a model describing the rationale for how an enterprise creates, delivers, and captures value"

1. Business Capabilities & Capability Mapping

A Business Capability represents an enduring, cohesive ability that describes what an enterprise does or can do to achieve its objectives, independent of how (processes), where (locations), or who (organizational units or IT systems) executes it.

Key characteristics of Business Capabilities include:

• Stability: Capabilities endure over long periods. While a company may frequently change software vendors, reorganize departmental hierarchies, or re-engineer operational workflows, its underlying capabilities (e.g., "Customer Billing", "Inventory Management", "Credit Risk Assessment") remain structurally constant.
• Hierarchical Decomposition: Capabilities are decomposed into logical tiers:
  • Level 1 (Strategic Domain): High-level capability groupings (e.g., Supply Chain Management).
  • Level 2 (Core Functional Area): Cohesive functional capabilities (e.g., Warehouse Logistics).
  • Level 3 (Operational Activity): Granular operational capabilities (e.g., Automated Pallet Picking).
• Capability Heat-Mapping: Architects evaluate capabilities across multiple diagnostic dimensions to highlight investment priorities. Common heat-mapping lenses include:
  • Strategic Importance: Core (differentiating competitive advantage), Enabling (critical operational necessity), or Supporting (generic commodity).
  • Maturity / Performance: Low, Medium, or High operational effectiveness.
  • Investment Priority: Directing capital expenditure to capabilities that exhibit high strategic value combined with low current maturity.

2. Value Streams & Value Stream Mapping

A Value Stream is an end-to-end collection of value-adding activities that create an overall result for an external customer, internal stakeholder, or end-user. While capabilities represent what the business can do, value streams represent the dynamic journey through which value is progressively realized.

Essential elements of a Value Stream include:

• Trigger: The initial event or demand that stimulates the value stream (e.g., Customer submits a loan application).
• Stages: Sequential, distinct steps that each produce an intermediate, measurable increment of value.
• Entry and Exit Criteria: Defined preconditions required to enter a stage and explicit verification checks required to exit it.
• Value Proposition: The final tangible benefit delivered to the stakeholder upon completion (e.g., Approved and funded home mortgage).

3. Organization Mapping

Organization Mapping depicts the organizational structure of the enterprise, delineating business units, divisions, legal entities, operating subsidiaries, shared services, and external partner ecosystems. It articulates lines of reporting, governance authorities, and geographic distribution.

Organization mapping is essential because it reveals organizational silos, identifies misaligned ownership, and ensures that cross-functional business capabilities are governed by clear executive sponsorship.

4. Information Mapping

Information Mapping defines the core conceptual information concepts and business objects that the enterprise requires to operate (e.g., Customer, Policy, Account, Claim, Product Catalog).

It is critical to recognize that Information Mapping in Phase B is not technical data modeling. It represents the shared, semantic vocabulary of the business leaders, establishing conceptual definitions before logical data entities and physical database schemas are engineered in Phase C.

5. Business Models and Business Motivation

Business models translate executive strategy into a cohesive operational structure. Using tools such as the Business Model Canvas, architects examine value propositions, customer segments, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structures.

Furthermore, the Business Motivation Model (BMM) captures the why: identifying business drivers (e.g., market competition, regulatory shifts), overarching goals, quantifiable objectives, strategies, and tactics.

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Cross-Domain Mapping: Connecting the Facets

The true power of TOGAF Business Architecture lies not in isolated models, but in cross-domain mapping. Architects connect these different dimensions into an integrated architectural matrix:

Cross-mapping enables impact analysis: if the executive team decides to introduce "Instant 1-Hour Urban Delivery", architects can immediately identify which value stream stages change, which capabilities must be enhanced, which business units are impacted, and what information must be captured in real time.

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Baseline, Target, and Gap Analysis in Phase B

Phase B develops both a Baseline and a Target Business Architecture description. Where a baseline already exists in the Architecture Repository it can be re-used and verified; the level of detail should be just enough to support the gap analysis and the decisions the Statement of Architecture Work requires.

Viewpoints are selected so that each view addresses the concerns of particular stakeholders — for example, a capability heat map for executives or a value stream stage view for operations leaders.

Gap analysis (Section 8.3) then compares baseline and target business building blocks. For each one the architect asks: is it included in both states, new in the target, or eliminated from the target — and, if eliminated, was that deliberate or an accidental omission? Business-domain gaps can concern people, processes, tools, information, measurement, finances, and facilities. The gaps become candidate roadmap components.

Realistic Enterprise Scenario: Meridian Retail Group

Meridian Retail Group, a legacy national retail conglomerate operating 250 physical department stores, experienced a 35% decline in in-store foot traffic while digital sales grew by 80%. However, their operations were severely fractured: online customers could not return digital purchases to physical stores, physical store associates had zero visibility into online warehouse inventory, and customer loyalty points were tracked in two incompatible regional databases.

During Phase B, the lead enterprise architect led the following activities:

1. Modeled the "Omnichannel Customer Journey" Value Stream: Defined stages from Brand Engagement through Cross-Channel Fulfillment and Unified Customer Care.
2. Conducted Capability Mapping: Built a Level 2 Capability Map and executed heat-mapping. While "Store Facilities Maintenance" showed high maturity but low strategic importance (supporting), "Unified Inventory Management" and "Cross-Channel Order Orchestration" were classified as core strategic capabilities with critical performance deficits (red heat-map status).
3. Identified Business Gaps: Highlighted the absence of a cross-functional fulfillment governance body and identified conflicting sales commission structures between online and store retail divisions.
4. Produced Candidate Work Packages: Formulated three business work packages—"Unified Omnichannel Policy Harmonization", "Enterprise Inventory Visibility Capability Program", and "Customer Care Organizational Realignment"—which were documented in the Architecture Definition Document and routed directly to Phase E for transition planning.

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Inputs and Outputs of Phase B

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Common Exam Pitfalls

• Confusing the two Phase B objectives with Phase A's. Phase B develops the Target Business Architecture and identifies candidate roadmap components; Phase A develops the vision and gets the Statement of Architecture Work approved.
• Mistaking a capability for a process or an organization unit. A capability is what the business can do; processes and organization units describe how and who.
• Forgetting that B, C, and D share a step pattern. Baseline, target, gap analysis, candidate roadmap components, resolve impacts, stakeholder review, finalize, update the ADD.
• Thinking Phase B produces approved final deliverables. Phase B produces draft ADD and ARS content that later phases refine.