Enterprise Engineering for The Agile Enterprise Don Liles The University of Texas at Arlington
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Transcript of Enterprise Engineering for The Agile Enterprise Don Liles The University of Texas at Arlington
UTA/ARRI
Enterprise Engineeringfor
The Agile Enterprise
Don LilesThe University of Texas at Arlington
UTA/ARRI
Purpose
To discuss part of the work that we have been doing here at ARRI
over several years in the area of enterprise engineering
UTA/ARRI
Agenda
• Definitions
• The Enterprise Engineering View
• Modeling
• Design and Transformation Implementation
• Strategic and Economic Justification
• Conclusion
UTA/ARRI
Definitions: Agility
• The ability of an enterprise to respond to unanticipated changes in the environment
• The ability of an enterprise to respond to a wide array of anticipated changes in the environment
• The ability of an enterprise to change … to rapidly reconfigure itself
UTA/ARRI
Definitions: Enterprise
... a system engineered to accomplish organizational goals ...
An Enterprise is a complex system of cultural, process,and technology components
that interact to accomplish organizational goals.Enterprise
UTA/ARRI
How do we design and transform the complex system that we call the Enterprise?
... leads to the development of a body of knowledge, principles, and practices having to do with the analysis,
design, implementation, and operation of the Enterprise ... Enterprise Engineering
Assumptions
• Complexity is fundamental to the nature of the Enterprise.
• The Enterprise is a system that can be engineered.
• Engineering rigor is required.
Definition: Enterprise Engineering
UTA/ARRI
The Enterprise Engineering View
An Enterprise is a complex system of cultural, process,and technology components
that interact to accomplish organizational goals.
A System that CAN be engineered!
Engineered to be agile …
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“What Do Engineers Do?”
• Build Models of Systems
• Analyze and Manipulate Models
• “Discover” and Develop New Designs
• Implement Designs
The Enterprise Engineering View
UTA/ARRI
Methods of Representation and Modeling
Methods of Representation and Modeling
The Enterprise is a system that can be engineered ...
... using a set of Enterprise Engineering Principles and Practices.
Methods for Analysis and Design
Methods for Analysis and Design
Methods for ImplementationMethods for Implementation
Enterprise TheoryEnterprise Theory
Enterprise Engineering
UTA/ARRI
Methods of Representation and Modeling
Methods of Representation and Modeling
The Enterprise is a system that can be engineered ...
... using a set of Enterprise Engineering Principles and Practices.
Methods for Analysis and Design
Methods for Analysis and Design
Methods for ImplementationMethods for Implementation
Enterprise TheoryEnterprise Theory
Enterprise Engineering
UTA/ARRI
Enterprise Theory
... a system engineered to accomplish organizational goals ...
An Enterprise is a complex system of cultural, process,and technology components
that interact to accomplish organizational goals.Enterprise
UTA/ARRI
Enterprise Theory Fundamental Processes
Research has suggested that enterprise processes naturally fall into three categories.
• Category 1 processes transform external constraints into an internal constraint structure that might be expressed as a system of objectives, policies, and procedures.
• Category 2 processes acquire and make ready the resources used by the enterprise.
• Category 3 processes (design, marketing, manufacturing, distribution) transform the family of inputs into desired enterprise results or outputs.
UTA/ARRI
The Enterprise is a system that has certainbasic processes.
Enterprise
• Set direction• Set direction
• Acquire customers• Develop product
and process• Fulfill orders• Support customer
and product
• Acquire customers• Develop product
and process• Fulfill orders• Support customer
and product• Acquire resources• Manage financial
assets
• Acquire resources• Manage financial
assets
Enterprise Theory Fundamental Processes
UTA/ARRI
Enterprise Theory Agile/Virtual Enterprise
Enterprise A
Enterprise B
Enterprise C
Category 1 business processes collectively owned to Develop Enterprise Objectives, Strategies,
Tactics & Plans
Category 2 & 3 business processes individually owned and managed to market, design, produce, and distribute product
... rapidly assembling core capabilities so as to optimize the system
UTA/ARRI
Integration of Internal and External Processes
Enterprise Theory Agile/Virtual Enterprise
Enterprise A
Enterprise B
Enterprise C
Category 1 business processes collectively owned to Develop Enterprise Objectives, Strategies, Tactics & Plans
business processes
and managed to market, design, produce, and distribute product
Enterprise Y
Enterprise X
Enterprise Z
Enterprise W
individually owned
Category 2 & 3
UTA/ARRI
Methods of Representation and Modeling
Methods of Representation and Modeling
The Enterprise is a system that can be engineered ...
... using a set of Enterprise Engineering Principles and Practices.
Methods for Analysis and Design
Methods for Analysis and Design
Methods for ImplementationMethods for Implementation
Enterprise TheoryEnterprise Theory
Enterprise Engineering
UTA/ARRI
Modeling
Organizational View
Activity View
Resource View
Business Rule View
Process View
Activity: Functions performed by enterprise (what is done)
Process : Time sequenced set of processes (how it is done)
Organizational: How the enterprise organizes itself
Business Rule: Defines the entities managed by the enterprise and the rules governing their relationships
Resource: Details the resources managed by the enterprise
UTA/ARRI
Activity View“Organic View”
Direct Enterprise
A1
Manage Assets
A2
Acquire Customers/
OrdersA3
Design Products/Processes
A4
Fill Orders
A5
C1Environment
C2ResourcesC3Corp. Policies & Directives
I1Capital
I2 Revenue
I3 Customer Data
I4Industry Data
I5 Orders/Customer Build Packages
M1 Assets/Partner Capabilities
O2
Proposals/Offerings
O1
StockholderReturns
O4
BuildPackages
O5Product
AssetInfo
Market/CustomerInfo
Product DevelopmentInformation
OperationStatus
Requests forAssets
PreparedAssets
Plans and Policies
Product/ProcessNeeds
I6Acquired Items
O3
PerformanceReports
InformalFeedback
Part & ProductInformation
UTA/ARRI
"Activity""INPUT"
"CONSTRAINT"
“RESOURCE"
"OUTPUT"
Make Part
Raw Materials
Tools
Fabricated Part
Work Order Blueprint Schedule
Scrap
Machines
Building an Activity Model
UTA/ARRI
• Determine Purpose, Viewpoint and Scope
• Generate Data List
• Generate Activity List
• Draw Top Level Diagram
• Decompose the Top Level Diagram using the Author Reader Cycle
• Continue Decomposition Until Desired Level of Detail is Reached
• Finish and Publish the Model
Building an Activity Model
UTA/ARRI
KitsStep 1
Kits with Reactions from AuthorStep 3
Kits with Comments from ReadersStep 2
Author Readers
The Author Reader Cycle
Building an Activity Model
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Process View
Student
UndergraduateAdvisor
Admin
StartRequestAdvisingPacket
Review Statusand Prepare
List of ProposedCourses
MakeAppointmentwith Advisor
Meet withAdvisor
Enroll
Advise Studentand Complete
Advising Packet
Prepareand DeliverAdvisingPacket
Release forEnrollment andCopy Packet for
Student and Files
File Packetand Update
StudentRecord
ElectronicRecord ofEnrollment
UTA/ARRI
A time sequenced set of actions
A time sequenced set of actions
Constraints
Resources
Inputs Outputs
Building a Process Model
A process transforms input into output,uses resources, operates within constraints, and
is measured in terms of fitness for use, time, and cost.
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Resource View
What are the people and technology resources needed to accomplish enterprise objectives?
ActivitiesActivities
Resources
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Organizational View
Dir
ecti
on
, R
eso
urc
esIn
form
ation
, Resu
lts
The Organization is how we deploy “constraints”.
Who owns what resource?
UTA/ARRI
Methods of Representation and Modeling
Methods of Representation and Modeling
The Enterprise is a system that can be engineered ...
... using a set of Enterprise Engineering Principles and Practices.
Methods for Analysis and Design
Methods for Analysis and Design
Methods for ImplementationMethods for Implementation
Enterprise TheoryEnterprise Theory
Enterprise Engineering
UTA/ARRI
Enterprise Vision and Strategies
People
Technology
Enterprise Processes
... a system of people, processes, and
technology engineered to accomplish
organizational goals
The Enterprise Engineering View
UTA/ARRI
Transformation
BP6
EP1
EP2
EP5
BP4
EP3
Category 1 Templates
Category 3 Templates
Category 2 Templates
Category 3 Templates
BP6
EP1
EP2
EP5
BP4
EP3
Category 1 Templates
Category 2 Templates
Category 3 Templates
BP6
EP1
EP2
EP5
BP4
EP3
Category 1 Templates
Category 2 Templates
BP6
BP1
BP2
BP5
BP4
BP3
Category 1 Templates
Category 3 Templates
Category 2 Templates
Enterprise Vision
TechnologyStrategyProcess
ImprovementStrategy Cultural
ChangeStrategy
Internal and ExternalEnvironment
Constrains and Enables
Transforming the Enterprise
The Enterprise Engineering View
UTA/ARRI
DevelopTechnology Solutions
DevelopTechnology Solutions
Integrate &Improve Enterprise
Integrate &Improve Enterprise
Create DesiredCulture
Create DesiredCulture
Develop Vision& Strategy
Develop Vision& Strategy
A Plan forTransformation
A Design Guide
Enterprise Transformation
UTA/ARRI
CorporateCulture
StrategicGoals
EnterpriseProcesses Technology
TheEnterprise
Cor
pora
te
Cul
ture Stra
tegic
Goals
Enterprise
ProcessesTec
hnology
TheEnterprise
The EnterpriseExcellenceMethodology
A Comprehensive EnterpriseEngineeringMethodology
Enterprise Transformation
UTA/ARRI
StrategicGoals
A coherent vision with supporting
strategies provide the guiding
principles for engineering and
operating the enterprise.
Develop Vision & Strategy
UTA/ARRI
Vision is a concrete statement which defines a desired future condition of what the organization aspires to become.
Strategies are the resource consuming activities which define how the organization will move toward the vision.
Build Commitment Develop Strategic Purpose
Develop & DeployIntegrated
TransformationPlan
Assess Environment
Develop Vision & Strategy
UTA/ARRI
CorporateCulture
“The way we do it around here”
must be aligned with the vision of
the company.
Create Desired Culture
UTA/ARRI
A corporate culture can be described as "the way we think, talk, work and act.” It is supported by management practices, structure, symbols, and rituals of the organization. The goal of cultural change is to move the whole organization into alignment with strategy.
Sell Vision, Plan, and Expectations
Align AdministrativeSystems
Build & AlignLeadership
Align Social Interaction
Improve &Involve People
Improve Communication &
Trust
Create Desired Culture
UTA/ARRI
EnterpriseProcesses The Enterprise and its processes
must be made fundamentally better
to compete in today’s world.
Integrate & Improve Enterprise
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Enterprise improvement and integration continuously reduces the cost and increases the value of the enterprise processes and products to better meet the changing needs of the customer.
A passion for doing things better, faster, cheaper.
Understand the Customer
Understand &Improve the
Product
Understand & Improve
the Process
Design & Implement Effective Controls
Integrate & Improve Enterprise
UTA/ARRI
Integrate & Improve Enterprise
EnterpriseProcesses
Understand the Customer
Understand &Improve the
Product
Understand & Improve
the Process
Design & Implement Effective Controls
• Bound processes and identify relationships
• Document and analyze process
• Design improved process
• Implement improved process
UTA/ARRI
Technology
Enabling technology must be
consistent with the vision and must
only be used to solve real problems.
Develop Technology Solutions
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Technology solutions are developed to accomplish defined needs in support of higher level business plans and strategies.
Understand Needs
Develop Decision Criteria
Develop Alternative Solutions
Develop & DeploySolution
Evaluate Alternatives& Select Solutions
Develop Technology Solutions
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EnterpriseProcesses
CorporateCulture
StrategicGoals
Technology
TheEnterprise
Putting it Together
A system of people, processes and technology designed to accomplish
organizational goals
Enterprise Transformation
UTA/ARRI
Methods of Representation and Modeling
Methods of Representation and Modeling
The Enterprise is a system that can be engineered ...
... using a set of Enterprise Engineering Principles and Practices.
Methods for Analysis and Design
Methods for Analysis and Design
Methods for ImplementationMethods for Implementation
Enterprise TheoryEnterprise Theory
Enterprise Engineering
UTA/ARRI
Justification Methodology
Identify System Impact
Identify System Impact
Identify Transition Impact
Identify Transition Impact
Estimate Costs and Benefits
Estimate Costs and Benefits
Audit DecisionAudit Decision
Perform Decision Analysis
Perform Decision Analysis
A Comprehensive Approach
Integrates Financial and Strategic
Considerations
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Justification Methodology
Design Alternative 3Decision ADecision BDesign Alternative 2
Decision ADecision BDesign Alternative 1
Decision ADecision B
Enterprise A
Enterprise B
Enterprise C
Altern
ative 1
Altern
ative 2
Altern
ative 3
Cost XQuality X XDelivery X
Define Design Alternatives
Model Impact on Enterprise
Analyze Impact
EvaluateImpact
UTA/ARRI
Justification Methodology
Define Design Alternatives
Analyze Impact
EvaluateImpact
SimulationActivity Based CostingStatisticsQFD Multi-Attribute Evaluation
(UTA developed)
Model Impact
Activity ModelingProcess ModelingFlow ChartsLayouts
Next GenerationTechnology
UTA/ARRI
Conclusion
... a system engineered to accomplish organizational goals ...
An Enterprise is a complex system of cultural, process,and technology components
that interact to accomplish organizational goals.Enterprise
UTA/ARRI
Methods of Representation and Modeling
Methods of Representation and Modeling
The Enterprise is a system that can be engineered ...
... using a set of Enterprise Engineering Principles and Practices.
Methods for Analysis and Design
Methods for Analysis and Design
Methods for ImplementationMethods for Implementation
Enterprise TheoryEnterprise Theory
Conclusion
UTA/ARRI
Transformation
BP6
EP1
EP2
EP5
BP4
EP3
Category 1 Templates
Category 3 Templates
Category 2 Templates
Category 3 Templates
BP6
EP1
EP2
EP5
BP4
EP3
Category 1 Templates
Category 2 Templates
Category 3 Templates
BP6
EP1
EP2
EP5
BP4
EP3
Category 1 Templates
Category 2 Templates
BP6
BP1
BP2
BP5
BP4
BP3
Category 1 Templates
Category 3 Templates
Category 2 Templates
Enterprise Vision
TechnologyStrategyProcess
ImprovementStrategy Cultural
ChangeStrategy
Internal and ExternalEnvironment
Constrains and Enables
Transforming the Enterprise
Conclusion