Enterprise Architecture

A Pragmatic Approach Using PEAF

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An Enterprise is split into various Business Units (BUs). Primary Business Units (PBUs) equate to those Business Units that perform the main role of the Enterprise such as Sales, Banking, Drilling oil wells, etc. Supporting Business Units (SBUs) are those which support the PBU’s, usually supporting multiple PBU’s

Each BU (be it Primary or Support) can be split into two fundamental notional parts.

¨      What they do - This relates to the business function they perform - be it selling things, drilling for oil, recruitment, training people, providing financial reports and auditing, etc.

¨      How they do it - This relates to how they perform their business function and with what.

Figure 1.

Here the Enterprise has one department - PBU1.

100% of the How is work is carried out, is carried out by PBU1.

Figure 2.

In a larger more complex Enterprise there may be another department - SBU1.

While PBU1 is still responsible for 100% of the What, it is now only performs 80% of the How - as the other 20% of the How is now carried out by SBU1.

Figure 3.

An even more complex Enterprise may be structured as follows:

¨      PBU1 is responsible for 60% of How the Enterprise achieves what they do.

¨      PBU2 is responsible for 40% of How the Enterprise achieves what they do.

Considering PBU1

¨      20% of How it does what it does, is done by SBU1

¨      70% of How it does what it does, it does itself.

¨      10% of How it does what it does, is done by SBU2

Considering PBU2

¨      30% of How it does what it does, is done by the SBU1

¨      50% of How it does what it does, it does itself.

¨      20% of How it does what it does, is done by SBU2

Considering SBU1

¨      5% of How it does what it does, is done by SBU2

¨      95% of How it does what it does, it does itself.

Considering SBU2

¨      10% of How it does what it does, is done by the SBU1

¨      90% of How it does what it does, it does itself.

On the face of it, PBU1 looks like the most important BU and PBU2 looks the second most important. However…

If we work out How each of the BUs contributes to doing the work necessary for the Enterprise, we can see that SBU2 is actually the second most important BU, not PBU2, in terms of How the Enterprise does what they do.

¨      PBU1 is responsible for 42% of the How.

¨      PBU2 is responsible for 20% of the How.

¨      SBU1 is responsible for 24.3% of the How.

¨      SBU2 is responsible for 13.7% of the How.

 

Questions to ponder...

Does your Enterprise consider what percentage each department contributes to what they do?

How many PBUs and SBUs does your Enterprise have?

What are their names and what are their relationships?

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