Enterprise Architecture and Governance Report for Blue Parcel

This report offers a comprehensive analysis of Blue Parcel, an international B2C logistics provider, focusing on its enterprise architecture and governance. The report begins with a background of the company, detailing its operations in receiving and distributing parcels globally. It then delves into the governance structure, explaining its role in setting policies, strategic direction, and risk assessment. The analysis includes an examination of Blue Parcel's organizational design, exploring the adoption of simple, functional, multidivisional, and matrix structures. The report further discusses the reasons for potential changes in the organizational structure, addressing issues like complexity and performance. The report also examines a capability map, business support matrix, and optimal application landscape. The report provides a detailed overview of the company's operations, governance, and architectural considerations, highlighting the importance of aligning organizational structure with strategic goals and adapting to evolving business needs.

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Enterprise Architecture and Governance
Student’s name
Course
Institutional affiliation
Instructor’s name
City and state
Date

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Background of the company
The company under evaluation in this case is Blue Parcel. The company is the provider of
B2C logistics working on international basis. The company involves in sending and receiving the
parcels or packages on the global basis. The organization receives shipments from the customers
more especially the retailers and service providers. This can be done through big bundles as well
as sending parcels for individuals to the end users in the world. Blueparcel maintains the points
of distribution of parcels in different countries and ‘metropolitan areas’. The various points of
distribution of parcels are used to receive shipments in containers, handling the parcels over the
partners and parcel sorting to the logistic customers around the globe (Lofti et al, 2018).
However, the company does not possess networks of delivery bust instead have distribution
centers of parcels that are near to the consumers and logistic providers with long term contracts.
Besides, shipments are distributed through airlines up to their destination points and later given
to the postal organization in their locality. The parcels such as the Last-mile delivery are
distributed by the postal organization on the National perspective.
1. Governance Structure
Governance is termed as a process where the organization’s board follows up all the rules and
legal constitutions, compiles strategic direction and priorities, amends favorable policies and
makes management forecasts for better performance (Buckow & Rey, 2010). The estimates of
the risks that may be faced by the organization and finally monitors and evaluates the
performance of the organization with the major reason of practicing the account stability of the
company (Askenas et al, 2010). However, there is no globally agreed definition of governance
but the definition above includes all the relevant terms used in governance. Governance structure
is composed of all the members under several departments represented by the ‘board of

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directors’. It is the responsibilities of the board to set policies, procedures, the aims and values
for the existence of the organization to meet its targeted mission (Askenas et al, 2010). The board
of BlueParcel organization does this preparations by help of a governance structure. For any
company to perform well in all its operations, there is need to communicate the needs of
customers and so an organization design is a requirement. An organization design is referred to
as a ‘process’ of making an alignment in the structure of an organization under its mission (Ali &
Green, 2009). In BlueParcel company, the executives based on both vertical and horizontal
linkages to develop a structure that is likely to resolve the needs for the strategy of the firm
(Butler & Butler, 2010). The executives of BlueParcel therefore employed four types of structure
and these included; simple organization structure, functional organizational structure,
multidivisional organizational structure and the matrix organizational structure (Arraj, 2010).
However, in the all these organizational structure are totally different. While amending the
BlueParcel organization structure, the executives had to come up with one out of these four
structure types and implement it to meet the firm’s expectations. In the process of choosing the
most effective structure, the executive of the organization were warned that the chosen structure
will further influence the performance and strategic plans of the organization (Badenhorst, 2009).
The moment the structure is developed, then it shows the firm where it stands and also provides
support to other strategies. If a firm’s organization structure is designed to maximize efficiency,
for example, the firm may lack the flexibility needed to react quickly to exploit new
opportunities then it is relevant to take on that structure (Bart & Turel, 2010).
Although its very important for any company to develop a structure, it is very difficult to
determine the most suitable structure and thus the type and number of members, their hierarchy
in the organization and also time it has spent in the field (Braxton, 2011). Minus considering the

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type of structure an organization would wish to form, it should be having three basic elements
and their absence does not make a structure complete. These elements include the following;
Governance: This should be the very first particular of the structure. Decisions have to be made
by either an individual or a group of individuals in the organization.
Rules and regulations that govern members of the organization: Setting rules and procedures on
which the organization operates is a very important element top consider. Some rules may not be
stated and implicit well as others may be read and explicit although these rules should be
powerful (Broadbent, et al, 2009).
Work distribution among employees: Distribution of work in an organization is an essential
issue. It can be formal or informal, temporary or permanent depending on organizational
management. However, there should be at least a form of labour division in every organization.
Below are the different types of organizational structures that were adapted by BlueParcel
organization from the time of developing the company to the current structure
Simple structure
The ‘simple structure’ is the commonest ns simplest structure for up-coming organizations. Here,
there is no need for drawing an ‘organization chart’ since simple structure do not base on labour
division as a formal system. There is no need for different people to perform all the activities at
the firm that need to be completed more so if the business is a sole proprietorship, therefore, one
person may be able to work on each task. Most of the businesses that require this kind of
structure is professional such as doctors, architects, teachers and many more. Also, small scale
business individual owners say those on TV series for example ‘The Simpsons, both bar owner
Moe Szyslak and Comic Book Guy’ are seen handling all aspects of their respective businesses.

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If a small organization has more than one worker, activities then have to be distributed in an
informal way limiting specialization of individuals in each activity. For instance in a restaurant
operated by a family, each person will have to perform his/her own responsibilities say preparing
food, cleaning the restaurant, welcoming visitors, servicing guests and many more though these
activities can be done by anyone (Boshoff, W. 2010). The business owner alone usually
centralizes making strategic decisions in a simple structure where he/she decides for the
business. This is because hierarchy is not considered while making decisions.
Functional structure
When an organization develops, the business owner then finds it better to adapt the functional
structure since the simple structure can no longer satisfy the needs of the organization. Many
organizations become hard to manage as they develop and this calls for a better and formal
labour division (Bolognese, 2012). More emphasis has to be made on the hierarchy and links that
are vertical. The firms therefore resort to functional structure from simple structure. In the
functional structure, several employees are distributed and divided into different departments
whereby every department is attached responsibilities related to a single business functional area
for example Information technology, health, human resource, production, social or customer
service, marketing, planning and many more (Bovey & Hede, 2011). All the departments
mentioned above would be allocated to managers who take all the responsibilities under that
functional area. For example whoever has information on the marketing department is free to
report to the ‘manager ’marketing department. Also, people in the organization having
information would report it to managers of responsible departments say planning, production,
customer service, Information technology among others. The responsible managers can then
transfer the information to the ‘chief executive officer’.

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Figure 1: Example of a Functional structure of an organization
Multidivisional structure
Just as BlueParcel, several organizations provide a wide range of services and products. Some
organizations do sell of their products across boundaries that is to say globally (Branch, 2012).
However, for a firm to successfully operate in such a manner there is need to respond rapidly to
the needs of their customers (Brandt, 2011). Under functional structure, it is observed that there
is a slow rate of change and so as firms continue expanding and growing they will have to
abandon functional structure type and resort to multidivisional structure (Cisco Systems
Inc, 2014). This is due to the reason that these organizations become too large for the functional
structure. In the multidivisional structure, employees are distributed in different departments
according to products produced, services provided and the geographical area. Under the
multidivisional structure, the firm is broken down into small divisions known as ‘semi-
autonomous divisions’ having their own corporate and are grouped in several divisions where
each division has a separate production function and maximizing its own profits (Elliott, 2011).

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However, there is a central office within the organization that is meant to overtake all the
departments and divisions (Ketchen & Short, 2011). This central office is responsible for
creating strategies to be followed by the entire business though it is never responsible for
operations of every division. One of the strongest advantages that multidivisional structure has is
stimulating the functioning of the business. For example, BlueParcel Company receives
shipments from various customers say providers of services and retailers in large quantities and
distributing individual parcels to various consumers all over the globe. The company established
several centers in different countries to keep the parcel distribution constant (Weltevreden,
2009). The aim of establishing these centers is to receive ‘shipments’ in vessels, sort parcels for
delivery and later give them to the partners in logistics to deliver them all over the world.
Shipments of BlueParcel are transported by use of air transport to the final destination where
they are given to respective ‘local postal’ organization (Nichol. 2018). To wrap it all, an
organization that is organized under the functional structure then the change in development will
be slower since all the several divisions will be involved (Ford & Saren, 2016). Another genuine
function of the multidivisional structure is that it helps an organization to serve efficiently its
customers with required goods. Nevertheless, there are some weaknesses observed in the
multidivisional structure and one of this is that it is more expensive and hard to maintain than the
functional structure. The functional structure gives chance for the organization to have
‘efficiency’ by using a single department to be in charge of all tasks in an area say planning ,
marketing or IT, the organization employing a multidivisional structure requires a planning
department or marketing within all its divisions (Verspaandonk et al, 2010).
Matrix structure

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This type of structure is the final organizational structure. In both functional and multidivisional
structures, there is ‘vertical linkages’ between responsible personnel and decision making,
accountability and communication among subordinates are centrally done (Wang et al, 2015). On
the other hand, matrix structures are horizontal relationships. For the case of matrix structure,
various teams of cross-section work on relatively different projects. This is characterized by
several advantages that include encouraging communication that is both vertical and horizontal
over functional lines, creating high levels of flexibility in an organization and also supporting
and encouraging teamwork and corporation (Windrum, 2009a). New managers can be trained
and developed through the matrix structure that is to say, an individual with less skills of
management experience can easily become a leader of a certain team of a smaller project in an
attempt of developing talents in becoming future leaders (Windrum, 2009b).

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Reasons for Changing an organization Structure for BlueParcel
Amending the structure of an organization is never a simple and one-time
task but rather it requires executives to go through the structure of the
organization and make some changes in it if there may arise problems in the
organization (Wischnevsky, 2014). For instance, in case an organization
reduces its rate of operation or the organization is poorly performing, then
decisions can be adjusted from one structure to a better one. There are
several reasons as to why changing the organizational structure some of
which include;
In addition, changes may be required in situations where the structure is very complex an there is
need for simplification. Many researchers have identified this to be applicable in organizations of
‘Cisco systems Inc.,’ that operates in production of networking equipment or apparatuses. For
example, the CEO of the company, John Chambers, changed Cisco from a hierarchical emphasis
toward a focus on horizontal linkages. As of late 2009, Cisco had four types of such linkages.
For any given project, a small team of people reported to one of forty-seven boards. The boards
averaged fourteen members each (Carter, 2009). Forty-three of these boards each reported to one
of twelve councils. ‘Each council also averaged fourteen members’. The councils reported to an
operating committee consisting of Chambers and fifteen other top executives. Four of the forty-
seven boards bypassed the councils and reported directly to the operating committee. These
arrangements are so complex and time consuming that some top executives spend 30 percent of
their work hours serving on more than ten of the boards, councils, and the operating committee.

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2. Capability Map
In most case, the business management basically focus on new products, customers and
new markets to boost the revenues of the company. However, the business unit involves
revenues as well as the challenges of operations arising from costs side (Andersson et al, 2013).
The company to project its success in future, there should be capital budgets for the large
companies Blueparcel company inclusive. The success uses the top-down model that defines the
vision of the program, business strategy, execution roadmap and IT strategy (Chen & Chen,
2010). Also, considering the initiative of multiyear, it is essential to revisit each year in order to
observe the costs and the rate at which the desired goals are achieved. It is evident that
information technology plays the vital role in initiating the strategy of the business (Choi et al,
2011). This is because various officers such as Chief Information officer or the Chief digital
information officer gain through managing very well their platforms and units of business. These
managers need to be informed about the forecasted strategies which yields the evaluation of IT
effects and planning effectively (Jiang et al, 2011). For the case of relationship (partnership
between information technology and the business), many projects do not achieve their targeted
schedules or budgets to deliver anticipated success. However, when the anticipated project fails,
it is caused by the inability to operate and manage uncertainties and thus determining proper
strategies in order to achieve value. Moreover, the goals and mission predicted by the company
cannot reach out information technology in the correct business framework bring strategies loose
while in operation (Kwon & Cheong, 2014). All these uncertainties and problems due to the lack
of common system or effective method of communication. To cut it short, this is the situation
whereby the business capacity mapping is useful.
Business Capabilities of BlueParcel Company

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When there is no any sixe that fits all the approaches, the firm therefore uses a ‘top-
down’ approach or the bottom to up approach or else both combinations. The approaches are
represented in a four step of the top-down approach for the betterment of the company.
Figure 2: Top-down approach
Source: Shiva Nadarajah, 2016
Figure 2 above clearly identifies the steps taken into consideration for the success of the
business. The approach starts with the objectives of the vision of the company, secondly,
creation of capability levels, thirdly review of capabilities and lastly decomposition of capability.
Values of the Organization
 The core value of Blueparcel company is to receive consolidated containers from
consumers in the centers of distribution especially by trucks.
 To register and take notes on the parcels through Ratio Frequency Identification (RFID)
and compliance checks about customers (Lofti et al, 2018).
 To consolidate and sort the parcels in relation to the country of destination.
 To give out the shipments to the airline to transport them to the country of destination
 To ensure the data on shipment are sent to the national postal organizations about last
mile deliveries.
Mission of Blueparcel Company

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 To establish its own last mile delivery in various nations by merging some companies
that acquire local mails. This will in turn help the company to achieve better services and
expansion of their own delivery chain.
 The company targets to support small consumers in relation to fulfillment of the order
since the ecommerce is drastically growing. In order to achieve all these, the company
rents some warehouses to create storage facilities to the customers’ products at any time
they get the orders. This is hoped to increase the efficiency since the orders can be
forwarded in shortest time through electronic means on the parcel’s logistic network.
Stakeholders in the value chain
There are different groups of stakeholders who can take the business in positive direction
that s to say expansion in its nature of operation. These stakeholders for the case of Blueparcel
company include the following;
Information Technology; this department initiates, manages and maintains assets that are
related to technology (such as software, systems and hardware), procedures, policies and systems
(Kysang & Taesu, 2014). This therefore involves and not limited to, the business intelligence,
administration of computer systems, enterprise resource planning, setups of the network, data
backup and storage of document. This department therefore gives updates on the day to day
technological changes in order to resolve technology related queries are resolved. In this case,
the top positions are the Chief Information Officer and the Chief Technology Officer.
Application Development; in the application development group involves architectural
application that develops systems to meet requirements. Stakeholders always adopt several
researches and ‘user testing’ in order to meet the specified objectives of the firm. In this case, the
common job posts are the Systems Analyst, Systems Engineer, Business Analyst and developers

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of the Applications. For the case of partnership between information technology and the
business, various projects do not achieve their targeted schedules or budgets to deliver
anticipated success (Liao et al, 2011). However, when the anticipated project fails, it is caused by
the inability to operate and manage uncertainties and thus determining proper strategies in order
to achieve value.
Application management; this refers to the existing systems in the company that are on-
going. These infrastructure or systems include CRM and ERP software. For the case of parcel
deliveries, application management team should carry out minimal enhancements and consider
refactoring of codes on parcels or shipments. Such posts which fit the department are the Quality
Assurance engineer and IT Application Analyst.
Business Intelligence; this field designs the organization’s designs and forms databases
and systems that extract the bigger amounts of data in order to provide performance insight of
the organization with respect to the customers and competitors (Lee et al, 2011). In this case, the
tools that are supposed to be used are the SAP, independent SQL and Oracle databases to hold
the company’s data to ease reporting. The job titles under this department are the Data
Warehouse Manager, Data Analyst and others.
IT Management and Administration; this field oversees the initiatives of IT in order to
put up Technogym related programs cooperate smoothly. These fields perform the planning and
give policy recommendations for the course of actions. As per Blue parcel company is
concerned, Enterprise Architect, IT project Manager, Systems Analyst are the sample and key
job titles in this field.

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IT Procurement; this field manages the purchase of technology assets and analyses and
agrees to replace the soft/hardware. However, this can be done basing on the total costs of
ownership and features. In summary, the information technology involves procurement of
hardware or software (Merzifonluoglu & Feng, 2013). It is therefore understood that, vendor
requirements and procurement contract are vital but sometimes forgotten in IT departments. The
Employees in this department are the Purchasing Agents, Procurement officers and the
Procurement Specialists.
IT Security; the IT security department is essential for communicating, enforcing and
defining technological policies, procedures and standards. The security department in the
organization is tasked to carry out mitigations of risks in relation to internal and external
breaches of data as well as ‘cyber attacks’ (Merzifonluoglu & Feng, 2013). The employees to be
employed in this department are the Cybersecurity, Security engineer and Information security.
Lastly, the IT Network Administration team helps in managing the backbone of
company’s technology (networks and data points). The Network administrators maintain and
implement configurations of the server, routers which help in facilitating the targets of the
organization (Pal et al, 205).
Key sources of Revenue of the company
The sources of revenue for Blueparcel could emanate from different routes and these are
from Government aid, out of pocket direct payments from the stakeholders, premiums among
others. The company gets some revenue from the government through subsidies and grants.

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Furthermore, the government gives out the revenue through health care programs to its
customers which in turn improves the health of customers (Pal et al, 205). This therefore
increases the introduces the ideology of both state and federal governments since taxes are
regulated through the government’s consent. In addition, the sources of revenue for the company
are hoped to emanate from clients and stakeholders through shares strategy. The clients put their
finances into the delivery services in that they pay out of pocket for shipments and other
services. The amount of the funds the company gets from the clients depend on the level of
operations being set. More so, Premiums act as source of revenue for the company. This is done
through insurance companies especially when customers’ orders are miss-placed or lost, the only
alternative for the company is to pay through the insurance companies. In addition, another
source of revenue for the company is from private donations (Perakis & Roels, 2009). It is
evident that most organizations receive donations from corporations or private individuals. This
can be done by such individuals or company in return to the performances of the organization.
Most significant is that, acquiring such funds does not come by chance but instead administrators
of the companies always lobby to run the projects stipulated (Shi et al, 2011).
SWOT Analysis of the Company
For the company to go through all the hardships and enjoy the returns of its services or
operations, it should always consider the SWOT analysis. SWOT analysis involves the strength
of the company, weaknesses of the company, opportunities of the company and the threats of the
company (Thompson, G. M. & Verma, 2013).
Table 1: SWOT analysis Matrix
Strength Weaknesses
 There is high critics over the loss of

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 ‘Unmatched research and
development capability’
 Reliable geographic presence, with
one of the best geographically
diversified revenue sources
 ‘Unrivaled product’ and brand
portfolio since the service are like
necessities
 Sustainable efforts of the environment
 ‘Ownership of some of the most
recognizable brands in the world’
parcels on rare case.
 Delayed delays due to un avoidable
circumstance such as weather and
accidents or plane crushes
 Poor addresses (locations) attached to
customers
Opportunities
 To establish its own last mile delivery
in various nations by merging some
companies that acquire local mails.
This will in turn help the company to
achieve better services and expansion
of their own delivery chain.
 The company targets to support small
consumers in relation to fulfillment of
the order since the ecommerce is
drastically growing. In order to
achieve all these, the company rents
some warehouses to create storage
facilities to the customers’ products at
any time they get the orders. This is
hoped to increase the efficiency since
the orders can be forwarded in
shortest time through electronic
means on the parcel’s logistic
network.
Threats
 Lack of the company’s own chain of
delivery limits the operation
 Increased competition from other
logistic providers’ companies
 Change of seasons also affect the
profitability of the company

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Source: Author, 2019
Levels of Capability
In first stage/level, the organization’s product manager and the teamwork of the corporate
strategy collaborates together to operate into the next level. The product manager makes sure that
the services need by the customers are defined with the initial vision of the program. In this case,
the project manager identifies the key drivers of the organization (Wachtel & Dexter, 2010).
These key drivers include the role of technology especially in finance, ‘fee transparency’ as well
as recognizing the strengths of delivery and economies of scale. More so, the stakeholders who
are essential in areas of risk, distribution and risk are clearly redefined.
The following level is to create level 1 that is Planning, customer engagement and
Advisor support) and level 2 which involves the Advisor distributed to level 2 capabilities such
as book management, alerts and ‘lead management’. This therefore helps the key stakeholders to
prioritize the business capabilities based on the value of the customer and the strengths of the
business.
However, when the other vital capabilities are identified, the product management team
develops another level (Level 3 or 4) capabilities. In this stage, the logical step of the
requirements of the business is taken into consideration (Xiaodan et al, 2013). This stage links
with the roaming business services especially the accounting data and the Tax rate calculations.
However, when the capability of the business is defined in the complete form, it is very clear for

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the project capability map. This therefore plays a great role to readjust the gap between the
implementation and strategies laid. In general, the business manager is likely to use the
‘capability map’ to pass through the information and the financial standing of the business to the
senior executives, stakeholders, these communications to stakeholders and other managers are
done in quarter basis or updates on semi-annual executive basis (Xu et al, 2017).
3. Organization’s Landscape
The Land scape in business involves the architecture drawing basing on the logical levels b
indicating the operations and the structure of information technology of a company. In a more
detailed way, the IT land scape model helps the supply chain of the products through
visualization of the nature of assets available in the company (Yu et al, 206). Such IT assets
include computer software or hardware.
Figure 3: Blue print of the Organizations Landscape structure

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Source: Author, 2019
Figure three above shows the landscape of the organization developed in relation to the
BlueParcel company architecture. The company’s objectives to be achieved can be modeled by
using both the swot matrix and the IT landscape. This is used in providing and creating
appropriate definitions on the way how the business is run (Zhu et al, 2013).
Furthermore, when the logical or the hierarchy is followed (organization design and
organization structure, oversight strategies, culture and talent, infrastructure), this give the clear
image to the analysts and the planners of the company to articulate the future.
In the organization, the IT landscape can be created in a given period of time to cover
various business technologies such as delivery services, trucking devices of new places among

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others (Zhu et al, 2013). It is important to evaluate the legacy of the old organization systems and
the new IT systems in the organization landscape. Such situation may hike the complexity of the
organization’s landscape in order to be managed well. More so, when the new and old systems
interconnect with each other, operations are likely to be complicated in order to avoid future
business risks.
There are several domains and essential requirements of organizational architecture. The
elements of architecture include; the component view that provides an explanation of
architecture including their relationships, the communication view that gives a detailed
description on how elements relate with each other and finally the distribution view that
represents the display of elements in form of organization structure or location (Chatha et al,
2009). Basing on these three relevant views on architecture, complexity can be reduced and
elementary construction principles of the architecture can be highlighted (Gartner. 2009). The
main importance of architecture design is to account for interdependencies among the building
blocks of architecture. Blueprints are used as a means of planning the deployment of architecture
on a large scale. Blueprints give a comprehensive view on the building blocks and how they
interact with other architectural activities (Gartner. 2010). They show the effects of architecture
design between business, application, and infrastructure architecture.
In addition, the landscape model helps in costs saving with the usage of information
landscape models or diagrams. These diagrams help to identify the end of life of the
organization’s assets (trucks, airplanes, post offices). These help in preventing disinvestments of
the company, therefore it is advised to repave the assets of information technology when they are
worn out completely before they expire in order to keep the organizations information up-to-date

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(Zhu et al, 2013). Also, when standardizing and normalizing the company’s assets that are
available, there is reduction of complexity in achieving the goals of the project.
The IT management has benefited a lot from having the organization landscape. The
benefits of the organization landscape are as below:
Improves the information management of the business. For the case of BlueParcel, this
helps to link up the company with the customers through identification of the local addresses.
Helps in observing the expiry time about the applications and organization resources.
This helps the company to evaluate its resources (Revenue, costs) in order to impart new
knowledge, workers, products among others. This helps to boost service delivery to the
customers or even expansion of new branches all over the world (Zhou, 2016). When the
organization needs to expand its services, it has to improve on its visualization of the landscape
and security measures and several other processes in the landscape. Most significant is that,
visualizing landscapes of the organizations helps the project managers and other stakeholders
depending on the hierarchy to monitor risks and implement policies or decisions (Zhou, 2016).
Currently, organizations need to react so fast about the prevailing issues raised by the customers.
With such reaction, there is a rise of online real time as far as organization landscape is
concerned.
In summary, the business capability maps are on the rise, however, the business
capabilities are likely to take some good time to be considered as mainstream tool of planning
and predicting. It is evident that, there is only one way of increasing adoption of executives from
information technology and business. More so, when the time to advertise the new products and

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services, the capabilities of business maps are important tools to forecast and articulate balances
on both long term and short term.

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