Which of the following best describes the relationship between business models and business architecture?

Question

Options

• ABusiness Architecture provides a conceptual summary view, whereas business models support in-
• BBusiness Architecture breaks a business model down into the core functional elements that
• CBusiness models are useful for impact analysis, however Business Architecture is needed for
• DBusiness model development is a prerequisite for a Business Architecture development.

• A
  10% (5)
• B
  81% (39)
• C
  6% (3)
• D
  2% (1)

Explanation

A business model describes how an organization creates, delivers, and captures value for its stakeholders. A business architecture breaks a business model down into the core functional elements that describe how the business works, such as the value proposition, the customer segments, the channels, the revenue streams, the cost structure, the key resources, the key activities, and the key partnerships. The relationship between business models and business architecture is that while business models provide a high-level description of business elements such as customers, markets, and the economic rationale of the business, the business architecture takes this model and breaks it down into more detailed descriptions. It identifies the core functional components and their relationships, which describe how the business operates, the roles involved, the information flowing through the business, and the technology supporting business activities.

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