Business reference model

Government Business Reference Model

FEA BRM Hierachy

Business Reference Model (BRM) is a functional reference model that serves as a functional framework for the description of enterprise architecture within a given domain. BRMs are used to provide a comprehensive understanding and categorization of the business operations of an organization, regardless of the industry in which it operates. The model is a part of the broader discipline of enterprise architecture, which aims to align an organization's strategy with its operations.

Overview

A Business Reference Model provides a standardized way to describe the business operations and business processes of an organization in a way that is independent of the organization's structure, culture, or technology. It serves as a common reference point for improving communication across all levels of the organization and with external stakeholders. By categorizing the business operations into a universally applicable schema, the BRM helps in identifying opportunities for collaboration, standardization, and integration of processes.

Components

The BRM typically consists of several key components:

• Business Domains: These are high-level categorizations of an organization's operations, such as Human Resources, Finance, and Marketing.
• Business Functions: These are the specific activities that support the business domains. For example, within the Finance domain, business functions might include accounting, budgeting, and financial reporting.
• Business Processes: These are the sequences of activities that achieve a specific organizational goal. Business processes span across different business functions and domains.
• Business Services: These are the services that are provided to customers or other stakeholders. They are outcomes of business processes.

Purpose and Benefits

The primary purpose of a Business Reference Model is to facilitate enterprise architecture development, business process improvement, and information technology alignment. The benefits of implementing a BRM include:

• Improved communication and understanding across the organization.
• Enhanced alignment of IT with business operations.
• Identification of redundant processes and potential areas for improvement.
• Support for strategic planning and decision-making processes.
• Facilitation of compliance with regulations and standards.

Implementation

Implementing a Business Reference Model involves several steps:

1. Identification of Business Domains: This involves defining the high-level areas of the organization's operations. 2. Mapping of Business Functions: This step involves detailing the specific activities that occur within each domain. 3. Analysis of Business Processes: This involves identifying and documenting the sequences of activities that achieve business objectives. 4. Alignment with IT: This step ensures that the IT infrastructure supports the business processes as defined in the BRM.

Challenges

While the implementation of a Business Reference Model offers numerous benefits, organizations may face challenges such as:

• Resistance to change from within the organization.
• Difficulty in aligning existing processes with the standardized model.
• The complexity of mapping and documenting business processes.

Conclusion

A Business Reference Model is a critical tool for organizations seeking to align their operations with their strategic objectives. By providing a standardized framework for understanding business operations, BRMs facilitate communication, improve process efficiency, and support strategic planning and decision-making.

Business reference model Resources
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