Body of Knowledge (BOK) of Business Engineering (BE)

Togar M. Simatupang, Akbar Adhi Utama, Nur Budi Mulyono

Bandung Institute of Technology

Indonesia

Presented at 1ST INTERNATIONAL BUSINESS ENGINEERING CONFERENCE, 26-27 September 2016 in Kuala Lumpur, Malaysia

Overview

1. Introduction

2. Literature Review: What is Business Engineering?

3. Engineering Approach to Business Enterprise

4. A guide to the BE Body of Knowledge

5. Concluding Remarks

2

Introduction

3

Introduction

• Managers must satisfy design and safety requirements, manage human resources to boost innovation and productivity, use natural resources efficiently, stay on top of other environmental concerns and emphasize total quality in operations.

• The scope and complexity of business engineering responsibilities has changed dramatically during the past 10 years.

• However, there is no common body of knowledge about Business Engineering as well as the position of Business Engineering compared to existing engineering approaches to business.

• This paper aims at providing a stylist framework of differentiating engineering approach to business and offering the BE body of knowledge (BEBOK).

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Literature Review: What is Business Engineering?

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The concept of Business Engineering

• The business engineering concept enables the transformation of enterprises from the industrial age into the information age by means of procedure models, methods, and tools.– Osterle, H. (1995), Business in the Information Age:

Heading for New Processes, Springer, Berlin.

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Wirtschaftsingenieur

Source: http://www.der-wirtschaftsingenieur.de/index.php/wirtschaftsingenieure-ideale-unternehmensgrunder/

The concept of business engineering

• van Meel and Sol (1996) have used the term "business engineering" to refer to a single umbrella and facilitate the integral design of both organizational structures and information systems. – System science, mathematical statistics, and socio-technical design are

merged into a design approach, a design theory, and a set of automated tools.

• The business engineering approach was developed by Österle(1995, p. 13) to describe the corporate reality, it separates the three layers strategy, processes and information systems. – The strategy layer determines the business model and proposes the

goals that need to be achieved for the success of the company. – The process layer creates the output needed to fulfill the goals of the

strategy. – The information systems support the processes in creating the

outputs, sometimes actually enabling the processes to fulfill the requirements of customers.

Source: • Österle, H. (1995), Business in the Information Age: Heading for new Processes, Springer, Berlin. • van Meel, J.W. and Sol, H.G. (1996), "Business engineering: dynamic modelling instruments for a dynamic world", Simulation and Gaming, Vol. 27 No. 4, pp. 440-61.

Scope of Business Engineering

Source: http://www.business-engineer.eu/9

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Business Engineering Framework

Source: https://www.ikm.tu-berlin.de/menue/forschung/telekommunikations-_management/11

ARIS House of Business Engineering

Source: http://www.orms-today.org/orms-4-04/frbusiness.html12

Engineering Education

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What is an Engineer?

• Ingenium: Talent, natural capacity, or clever invention.– Early applications of Clever Inventions based on

Military

– Builders of Ingenious military machines?

• The first issue (1866) of the English Journal Engineering– The art of directing the great sources of power in

nature, for the use and convenience of man.

– Is it an art or profession?

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A new definition of Engineering

• Modern Definition of Engineering By ABET (Accrediting Board for Engineering and Technology)– The profession in which a knowledge of the

mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize, economically, the materials and forces of the nature for the benefit of mankind.

• Engineer: – A person applying his mathematical and science

knowledge properly for mankind

• It is a discipline not an art.

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Conceiving--Designing--Implementing--Operating (CDIO)

Source: http://www.cdio.org/

Engineering Approach to Business Enterprise

Engineering Approaches to Business Enterprise

Enterprise Engineering

(techno-structural intervention)

Business Engineering

(socio-structural intervention)

Industrial Engineering

(techno-processualintervention)

Engineering Management

(socio-processualintervention)

Pro

cessu

alState

s

Structu

ral State

s

Technically Oriented Methods

Socially Oriented Methods

Orientation of methods

States o

f chan

ge

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(1) Enterprise Engineering

• Enterprise engineering is an engineering field that focuses on techno-structural intervention that attempt to engage the complex architectural determinants of enterprise as a way of influencing better effectiveness.

• An enterprise is a socio-technical system consisting of interdependent resources of people, information, and technology that often interact with each other and their environment.

• According to SEE, enterprise engineering is defined as "a body of knowledge, principles, and practices having to do with the analysis, design, implementation, and operation of the enterprise".

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(2) Industrial Engineering

• Industrial engineering is concerned with the design, improvement and installation of integrated systems of men, material and equipment. It draws upon specialized knowledge and skills in the mathematical, physical sciences together with the principles and methods of engineering analysis and design to specify, predict and evaluate the results to be obtained from such systems. (The American Institute of Industrial Engineers)

• The prime objective of industrial engineering is to increase the productivity by eliminating waste and non-value adding (unproductive) operations and improving the effective utilization of resources.

• Industrial engineers must see how performance improvement in the target subsystem (warehouse layout, work cell configuration, display /human-equipment interface, queue design, simulation, supply chain, etc.) serves the higher good or works to optimize the performance of the larger system.

The domain of industrial engineering

(3) Business Engineering

• Business engineering is an engineering field that focuses on socio-structural intervention through conceptualization, modeling, analysis, organization, calculation, and the design of complex organizations.

• van Meel and Sol (1996) define business engineering as “an integral design of organizational architectures and information systems.”

• Business engineering is concerned with the design and implementation of business solutions that incorporate business model, business processes, organizational structure, information systems, and information technology.

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(4) Engineering Management

• Engineering Management aims to uncover and solve organizational issues by attempting to establish a desirable allocation of management resources through the use of technologies.

• In an area where reactions to continuous changes are needed, the field of Engineering Management utilizes "technology on technology", including a variety of management technologies and history and philosophy of science and technology.

Source: Dept. of Industrial Engineering and Management, Tokyo Institute of Technology.

Engineering Management

• Engineering Management (EM) examines the engineering relationships between the management tasks of staffing, organizing, planning, and financing, and the human element involved in production, research, and service.

• EM teaches the concepts and principles of engineering to manage the fundamentals of organizational leadership, personnel management, fiscal management, and systems understanding.

• EM is a highly relevant program which builds on the traditional roles of systems analysis and basic and applied sciences by emphasizing management functions in a technical setting.

• The Engineering Management program is accredited by the Engineering Accreditation Commission of ABET.

Domain of Engineering Management

Source: Source: "Industrial Engineering and Engineering Management Post Graduate Study Guide 2014", the University of Stellenbosch. 25

Proposed BE Body of Knowledge

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Requirements Analysis

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The proposed Business Engineering Body of Knowledge

Project Management

Capability

Business System

• Planning

• Execution

• Control

• Capability Maturity Model

• Change Management

• Strategy

• People and Organization

• Process

• Technology

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System

Capability

Project

BE-BOK

• BEBOK Domains1. Strategy2. Organization3. People4. Product, Service and Process Development5. Technology6. Capability Maturity Model7. Project Management8. Professional Responsibility, Ethics and Legal Issues

• Engineering Principlesa. Optimizationb. Analyticsc. Systems Thinkingd. Engineering Design

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Concluding Remarks

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Concluding Remarks

• Engineering approaches to business enterprise is a unique improvement intervention to solve complex problems and implement solutions in practical and cost effective ways.

• The ambiguity of different engineering approaches in the ongoing debate can be resolved as proposed in this research by synthesizing two dimensions of objects and methods in which the construction of methods are tuned to specific situations of engineering objects. There are four field of engineering to have distinct identities, namely:

1. Industrial Engineering

2. Engineering Management,

3. Enterprise Engineering, and

4. Business Engineering.

• The proposed configuration can be used to eliminate confusion in the academic world such as the difference between enterprise engineering and business engineering that looks similar.

• Business engineering emphasizes the adoption of systems approaches, problem solving techniques to design and implement effective and productive processes that combine people, organization structure, and technology.

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Thank You

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