Finance
- damian.hickey
Overview
What is the Finance Domain?
The Finance domain represents the economic resources, financial flows, structures, and instruments that support an organization's operations and strategic objectives. This domain provides a structured approach for modeling financial assets, budgets, investments, revenue streams, and cost structures, enabling finance-centric analysis that drives strategic planning, resource allocation, and performance optimization.
The domain extends the Orthogramic Metamodel by providing deeper insights into financial operations, capital structures, and investment decisions, enabling organizations to align their capabilities, value streams, and strategies with financial realities and objectives.
Purpose and Value
The Finance Domain enables organizations to:
Analyze financial structures and resource allocation that influence strategy formulation
Map investment decisions to strategic priorities and capability development
Monitor financial performance metrics that drive business decisions
Support data-driven decision making about capital allocation and funding priorities
Drive financial sustainability through improved visibility into cost and revenue structures
Measure and improve financial performance and efficiency
Provide a structured foundation for financial governance and compliance
Core Concepts
Financial Resource
A distinct financial asset, liability, or capital element that the organization manages, allocates, or optimizes. Financial resources provide a way to categorize different types of financial instruments and structures with unique characteristics and management approaches.
Budget
A financial planning and control mechanism that allocates resources to specific activities, initiatives, or organizational units. Budget analysis enables strategic prioritization and resource governance.
Investment
An allocation of financial resources expected to generate future value or returns. Investment mapping provides insight into strategic priorities, risk tolerance, and expected outcomes.
Revenue Stream
An identified source of income generation tied to products, services, or other value-creating activities. Revenue stream analysis provides context for understanding business model sustainability and growth.
Cost Structure
A structured evaluation of expense categories, drivers, and relationships. Cost structure analysis provides a foundation for understanding operational efficiency and financial optimization.
Conclusion
The Finance Domain extends the Orthogramic Metamodel with a robust framework for modeling and managing financial aspects of business architecture. By providing structured schemas for financial resources, budgets, investments, revenue streams, and cost structures, it enables organizations to systematically align their capabilities, value streams, and strategies with financial objectives and constraints.
The integration with the Strategic Response Model ensures that financial insights drive strategic decision-making and organizational change. This domain complements other domains by focusing on the financial dimensions that enable and constrain organizational activities, providing critical context for strategic planning and operational execution.
Organizations can use this domain to develop a more comprehensive understanding of their financial landscape, identify resource optimization opportunities, and ensure that strategic initiatives are financially viable and sustainable.
Example Implementation
Example: Corporate Investment Portfolio Analysis
{
"financeID": "FIN-INV-001",
"title": "Strategic Investment Portfolio",
"description": "The corporate strategic investment portfolio supporting long-term growth initiatives and capability development across the enterprise.",
"financeDefinition": "Strategic financial resources allocated to initiatives that drive future revenue growth, market expansion, and competitive differentiation.",
"orgUnitTitle": "Corporate Finance Division",
"orgUnitRoles": ["Chief Financial Officer", "Investment Director", "Financial Analyst"],
"totalValue": {
"currentValue": "$275 million",
"currency": "USD",
"fiscalYear": "2025",
"projectedValue": "$350 million",
"projectionYear": "2027",
"valuationMethod": "Discounted cash flow analysis with strategic value adjustment"
},
"accountingTreatment": "capital",
"fiscalPeriod": {
"startDate": "2025-01-01",
"endDate": "2025-12-31",
"periodType": "annual"
},
"governanceModel": "Investment Review Board with quarterly funding gate reviews and annual strategic portfolio realignment",
"complianceRequirements": [
"SOX Section 404 controls for investment authorization",
"Capital allocation policy compliance",
"Board reporting requirements for investments over $10M"
],
"approvalAuthority": [
"Investment Committee (<$5M)",
"Executive Committee ($5M-$25M)",
"Board of Directors (>$25M)"
],
"marketInfluences": [
"Rising interest rates affecting investment hurdle rates",
"Industry consolidation creating acquisition opportunities",
"Emerging technology disruption requiring defensive investments"
],
"regulatoryFactors": [
"Capital adequacy requirements",
"SEC reporting obligations for material investments",
"Environmental compliance considerations for infrastructure investments"
],
"economicConditions": [
"Moderate economic growth forecast (2.7%)",
"Increasing wage inflation pressures",
"Supply chain constraints affecting capital project timelines"
],
"strategicPriority": {
"priorityLevel": "high",
"description": "Investment portfolio directly enables our three strategic pillars of digital transformation, market expansion, and operational excellence"
},
"riskProfile": {
"riskLevel": "moderate",
"description": "Balanced portfolio with mix of high-risk/high-return initiatives and foundational lower-risk investments",
"mitigationStrategies": [
"Portfolio diversification across technology, market, and product investments",
"Stage-gated funding model with defined exit criteria",
"Quarterly risk reassessment with portfolio rebalancing"
]
},
"performanceIndicators": [
{
"metricName": "Portfolio Return on Investment",
"metricDescription": "Blended financial return across all active investments",
"currentValue": "16.8%",
"targetValue": "18.5%",
"unit": "Percentage"
},
{
"metricName": "Strategic Alignment Score",
"metricDescription": "Weighted measure of portfolio alignment with strategic objectives",
"currentValue": "4.2",
"targetValue": "4.5",
"unit": "Score (1-5)"
},
{
"metricName": "Investment Execution Index",
"metricDescription": "Composite metric of on-time, on-budget delivery of investment outcomes",
"currentValue": "78%",
"targetValue": "85%",
"unit": "Percentage"
}
],
"dependencies": [
{
"dependencyType": "Enabler",
"domainType": "Strategy",
"entityID": "STRAT-2025-01",
"description": "Corporate Growth Strategy 2025-2030"
},
{
"dependencyType": "Critical",
"domainType": "Capability",
"entityID": "CAP-FINPLAN-001",
"description": "Financial Planning and Analysis capability"
}
],
"relatedFinancialElements": [
{
"elementID": "FIN-BUD-002",
"relationshipType": "allocates to",
"relationshipStrength": 4
},
{
"elementID": "FIN-FUND-003",
"relationshipType": "funds",
"relationshipStrength": 5
}
],
"improvementOpportunities": [
"Enhanced predictive analytics for investment outcome forecasting",
"Integration of ESG metrics into investment evaluation criteria",
"Streamlined investment approval process for high-potential initiatives"
]
}
Finance Domain Schema
JSON Sschema
See: https://github.com/Orthogramic/Orthogramic_Metamodel/blob/main/schemas/finance.schema.json
Finance Domain Attributes
Property | Description | Example |
|---|---|---|
financeID | Unique identifier for the finance element | "FIN-INV-001" |
title | The name or title of the financial structure or element | "Strategic Investment Portfolio" |
description | A detailed explanation of the financial element | "The corporate strategic investment portfolio supporting long-term growth initiatives" |
financeDefinition | Definition of financial boundaries and characteristics | "Strategic financial resources allocated to initiatives that drive future growth" |
orgUnitTitle | The organization unit(s) responsible for financial management | "Corporate Finance Division" |
orgUnitRoles | Specific roles within the organization unit that manage financial elements | ["Chief Financial Officer", "Investment Director"] |
totalValue | Current and projected financial dimensions | {"currentValue": "$275 million", "projectedValue": "$350 million"} |
accountingTreatment | How the financial element is treated in accounting systems | "capital" |
fiscalPeriod | Time period for financial management | {"startDate": "2025-01-01", "endDate": "2025-12-31"} |
governanceModel | Approach to financial governance and oversight | "Investment Review Board with quarterly funding gate reviews" |
complianceRequirements | Regulatory and reporting requirements | ["SOX Section 404 controls", "Capital allocation policy compliance"] |
approvalAuthority | Roles or bodies with approval authority | ["Investment Committee (<$5M)", "Board of Directors (>$25M)"] |
marketInfluences | Market factors affecting the financial element | ["Rising interest rates", "Industry consolidation"] |
regulatoryFactors | Regulatory influences on financial management | ["Capital adequacy requirements", "SEC reporting obligations"] |
economicConditions | Economic factors affecting financial element | ["Moderate economic growth forecast (2.7%)", "Supply chain constraints"] |
strategicPriority | Level of strategic importance | {"priorityLevel": "high", "description": "Directly enables our three strategic pillars"} |
riskProfile | Risk characteristics of the financial element | {"riskLevel": "moderate", "mitigationStrategies": ["Portfolio diversification"]} |
performanceIndicators | Metrics used to measure financial performance | [{"metricName": "Portfolio Return on Investment", "currentValue": "16.8%"}] |
dependencies | Other domains, processes, or systems supporting financial management | [{"domainType": "Strategy", "entityID": "STRAT-2025-01"}] |
relatedFinancialElements | Other financial elements with relationships to this one | [{"elementID": "FIN-BUD-002", "relationshipType": "allocates to"}] |
improvementOpportunities | Areas where financial management can be enhanced | ["Enhanced predictive analytics for investment outcome forecasting"] |
Financial Resource Element Schema
Property | Description | Example |
|---|---|---|
resourceID | Unique identifier for the financial resource | "FR-CASH-001" |
resourceName | Name of the specific financial resource | "Operating Cash Reserve" |
description | Detailed description of the financial resource | "Primary liquidity reserve for core operations" |
orgUnitTitle | Organization unit responsible for this resource | "Treasury Department" |
resourceType | Classification of financial resource | "cash" |
resourceValue | Current value and valuation details | {"amount": 125000000, "currency": "USD"} |
accountingClassification | How resource is classified in accounting | "current-asset" |
resourceLifecycle | Lifecycle information for the resource | {"lifecycleStage": "active", "refreshCycle": "Quarterly review"} |
riskProfile | Risk characteristics of the resource | {"riskLevel": "low", "riskFactors": ["Interest rate exposure"]} |
performanceBenchmarks | Key metrics for evaluating resource performance | [{"metricName": "Liquidity ratio", "currentValue": "2.7"} |
strategicPurpose | How resource supports strategic objectives | "Provides operational flexibility and acquisition readiness" |
governanceControls | Controls and governance applied to the resource | [{"controlName": "Minimum balance threshold", "controlDescription": "Maintain minimum 30-day operating expenses"}] |
linkedCapabilities | Business capabilities supported by this resource | [{"capabilityID": "CAP-FIN-002", "importanceLevel": 4}] |
monitoringFrequency | How often resource is formally assessed | "weekly" |
Budget Element Schema
Property | Description | Example |
|---|---|---|
budgetID | Unique identifier for the budget | "BUD-2025-001" |
budgetName | Name of the specific budget | "IT Development Budget" |
description | Detailed explanation of budget's purpose | "Annual funding for technology development initiatives" |
orgUnitTitle | Organization unit responsible for this budget | "IT Division" |
budgetType | Classification of budget | "capital" |
budgetPeriod | Time period covered by the budget | {"startDate": "2025-01-01", "endDate": "2025-12-31"} |
totalAmount | Total budget amount | {"amount": 12500000, "currency": "USD", "amountType": "approved"} |
budgetCategories | Major categories within the budget | [{"categoryName": "Cloud Infrastructure", "allocation": 3200000}] |
allocationMethodology | Approach used to allocate funds | "value-based" |
approvalStatus | Current approval status of the budget | "approved" |
performanceTracking | Metrics for tracking budget performance | [{"metricName": "Budget utilization", "currentValue": "68%"}] |
strategicAlignment | How budget aligns with strategic objectives | [{"objectiveID": "OBJ-2025-03", "alignmentDescription": "Enables digital transformation"}] |
assumptions | Key assumptions underlying budget | [{"assumption": "3% vendor price increase", "confidenceLevel": "high"}] |
revisionHistory | History of budget revisions | [{"revisionDate": "2025-03-15", "revisedAmount": 13100000}] |
linkedInitiatives | Initiatives funded by this budget | [{"initiativeID": "INIT-2025-07", "allocation": 2850000}] |
Investment Element Schema
Property | Description | Example |
|---|---|---|
investmentID | Unique identifier for the investment | "INV-2025-003" |
investmentName | Name of the specific investment | "Customer Data Platform" |
description | Detailed explanation of the investment | "Enterprise CDP implementation to unify customer data" |
orgUnitTitle | Organization unit responsible for this investment | "Digital Transformation Office" |
investmentType | Classification of investment | "digital" |
investmentAmount | Financial dimensions of the investment | {"amount": 8500000, "currency": "USD"} |
investmentTimeline | Temporal aspects of the investment | {"startDate": "2025-04-01", "endDate": "2026-03-31"} |
expectedReturns | Anticipated benefits from investment | {"roi": 28, "paybackPeriod": "24 months", "npv": 3200000} |
riskAssessment | Evaluation of investment risks | {"overallRisk": "moderate", "riskFactors": [{"factor": "Integration complexity", "probability": "high"}]} |
strategicAlignment | How investment supports strategy | {"alignmentLevel": "strong", "strategicObjectives": [{"objectiveID": "SO-CX-001"}]} |
governanceModel | How investment is governed | {"approvalAuthority": "Technology Investment Committee", "reviewProcess": "Quarterly stage gates"} |
performanceMetrics | Metrics for measuring investment success | [{"metricName": "Customer data unification", "targetValue": "95%"}] |
fundingSources | Sources of investment funding | [{"sourceName": "IT Capital Budget", "amount": 6800000, "percentage": 80}] |
alternativesConsidered | Alternative investment options evaluated | [{"alternativeName": "Third-party data service", "reason": "Insufficient data control"}] |
status | Current status of the investment | "active" |
Revenue Stream Element Schema
Property | Description | Example |
|---|---|---|
streamID | Unique identifier for the revenue stream | "REV-CLOUD-001" |
streamName | Name of the specific revenue stream | "Cloud Services Subscription" |
description | Detailed explanation of the revenue stream | "Recurring revenue from enterprise cloud platform subscriptions" |
orgUnitTitle | Organization unit responsible for this revenue stream | "Cloud Solutions Division" |
revenueType | Classification of revenue | "subscription" |
revenueModel | Business model for generating revenue | "recurring" |
sourceOfRevenue | Origin of the revenue stream | {"sourceType": "product-line", "sourceName": "Enterprise Cloud Platform"} |
financialPerformance | Financial metrics for the revenue stream | {"currentRevenue": 78500000, "revenueGrowth": 23.5} |
profitabilityMetrics | Metrics related to profitability | {"grossMargin": 72, "netMargin": 38} |
marketDynamics | Market context for revenue stream | {"marketSize": "$15.6B", "marketShare": 3.2} |
pricingStrategy | Approach to pricing and monetization | {"pricingModel": "tiered", "pricePoints": [{"name": "Basic", "amount": 10000}]} |
customerAnalysis | Customer aspects of revenue stream | {"customerLifetimeValue": 385000, "churnRate": 4.2} |
seasonality | Seasonal patterns in revenue | {"hasSeasonality": true, "peakPeriods": ["Q4"]} |
growthStrategies | Approaches to growing this revenue stream | [{"strategyName": "Enterprise upsell", "expectedImpact": "15% growth"}] |
strategicImportance | Strategic significance of this revenue stream | {"importanceLevel": "critical", "strategicRole": "growth-driver"} |
performanceIndicators | KPIs for measuring stream performance | [{"indicatorName": "Customer retention", "currentValue": "94%"}] |
Cost Structure Element Schema
Property | Description | Example |
|---|---|---|
costStructureID | Unique identifier for the cost structure | "COST-PROD-001" |
structureName | Name of the specific cost structure | "Product Development Cost Structure" |
description | Detailed explanation of the cost structure | "Complete cost model for software product development" |
orgUnitTitle | Organization unit associated with this cost structure | "Product Development Division" |
costClassification | Primary classification of the cost structure | "product" |
totalCost | Overall cost dimensions | {"amount": 43800000, "currency": "USD", "timeframe": "Annual"} |
fixedCosts | Costs that remain constant regardless of activity level | {"amount": 24500000, "percentage": 56} |
variableCosts | Costs that change with activity level | {"amount": 19300000, "percentage": 44} |
directCosts | Costs directly attributable to specific outputs | {"amount": 36700000, "percentage": 84} |
indirectCosts | Costs not directly attributable to specific outputs | {"amount": 7100000, "percentage": 16} |
costDrivers | Factors that influence cost levels | [{"driverName": "Engineering headcount", "impactLevel": "critical"}] |
costTrends | Cost movement patterns over time | {"overallTrend": "increasing", "annualGrowthRate": 5.8} |
costAllocationModel | How costs are distributed across the organization | {"allocationApproach": "activity-based"} |
costEfficiencyMetrics | Measures of cost performance | [{"metricName": "Cost per function point", "currentValue": "$1,250"}] |
costOptimizationStrategies | Approaches to improving cost efficiency | [{"strategyName": "Automated testing", "expectedSavings": 1200000}] |
costCompetitivePosition | Cost structure relative to competitors | {"overallPosition": "at-parity", "keyAdvantages": ["Development tooling"]} |
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