Decentralized Business Architecture: Key Insights and Challenges PPT


This PPT slide, part of the 8-slide Business Architecture Framework PowerPoint presentation, presents a detailed overview of the Business Architecture Framework, specifically focusing on Quadrant 1. It emphasizes key elements that define the operational and strategic landscape of an organization. The framework is segmented into 4 primary areas: Organization, Culture and Competency; Strategy; Process; and Performance Measurement.

In the Organization, Culture and Competency section, the slide highlights a decentralized structure where all functions are present in every geography. This local market focus is accompanied by local agendas, which may foster a strong sense of ownership, but can also lead to challenges in establishing a cohesive corporate culture. The mention of a complex legal entity structure and clear staff allegiance to local entities suggests potential hurdles in aligning broader organizational goals with local operations.

The Strategy component indicates a strong desire to regionalize operations, though this is met with mixed results. The organization aims to reduce costs by standardizing processes across Europe, which may enhance efficiency, but could also complicate local implementation.

The Process section points out duplicated processes on integrated platforms, indicating inefficiencies. It notes a high level of standardized processes and data, which is essential for effective performance measurement. However, the complexity of intercompany transactions due to a Buy-Sell structure could hinder operational fluidity.

Lastly, the Performance Measurement area reveals a local focus in assessing performance, with no significant desire to compare metrics across regions. While there is a capability for top-down performance evaluation, the implementation of a scorecard system is likely to reflect local market conditions rather than a unified approach. This could limit the organization’s ability to leverage insights across its various markets.




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