Use of neo technology for new enterprises – I
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Ecosystem:•Biotope - environment that surrounds, influences and is utilized by a community•Biocoenosis - the interacting organisms living together in a biotope, in a state of dynamic equilibrium, and forming a closely integrated community
Entrepreneur
Tools
Enterprises & Entrepreneurs inside of an Ecosystem
Initiative
ConsumeProcessOwn
ConsumeProcessOwn
Business Architecture
Technical Architecture
Outcome resources
Income resources
Technology pool Enterprise
Ecosystem
EnterpriseEnterprise
Enterprise
Fig. 1: Enterprises & Entrepreneurs inside of an Ecosystem
Enterprises & Entrepreneurs inside of an Ecosystem
Generic architectural / design concepts can be mapped on various technologies
Fig. 2: Defining Business Architecture – timeforapause.com
Humans in the Ecosystem•Humans are a subjective resource in the ecosystem, and have the capability of
ConsumingProcessingOwning
other living / non-living resources
•Humans can only exist in groups (social determinism)
•Enterprise = a group of humans processing ecosystem resources
Enterprises & Entrepreneurs inside of an Ecosystem
Humans Resources
Consume
Process
Own
Considering the Theory of Value, Resources have two important properties (Object - Oriented approach):•Renewability (resources are replaced by natural processes and replenished with the passage of time)•Homogeneity (resources are alike, interchangeable, or uniform)
Subclasses of Resources :•Quasi-unlimited (homogeneous & renewable)•Scarce (non-homogeneous & non-renewable)
Resource ownership can be defined by possession, use and transmission of resources
Enterprises & Entrepreneurs inside of an Ecosystem Ecosystem: a morphism of resources in a
continuous transformation process
Methods / Operations applicable to resources
•Generic method: “Convert / Process resource” -> can be instantiated by “Consume resource” •Living resources are capable of consuming both living and nonliving resources, but certain conversion processes can be started without a Living resource initiator•Consumption = a way of converting resources into other resources•Resources consumption generates competition for limited resources and generates value for those particular resources
Types of resources that may be transformed:•materials •information •energy
Enterprises & Entrepreneurs inside of an Ecosystem
•Enterprise : an entity subjectively created, with the purpose of producing and delivering goods or services to its customers•Prerequisites for the creation of an Enterprise:
Demand of resourcesHuman initiative (Entrepreneur)
Inputs Outputs
Transformation process
Feedback
Inputs:•transformed resources – those that are transformed in some way by the operation to produce the goods or services that are its outputs•transforming resources – those that are used to perform the transformation process:
staff – the people involved directly in the transformation process or supporting itfacilities – land, buildings, machines and equipment
Enterprises & Entrepreneurs inside of an Ecosystem
Fig. 3: Resource transformation process
•Outputs:•Goods & services•Waste (undesirable outputs)
•Feedback loop - is used to control the operations by adjusting the inputs and transformation processes that are used to achieve desired outputs
Feedback from internal sources: testing, evaluation and continuously improving goods and services;
Feedback from external sources: intermediaries, final consumers
•Types of transformation:•manufacture – the physical creation of products •transport – the movement of materials or customers•supply – change in ownership of goods•service – the treatment of customers or the storage of materials
Enterprises & Entrepreneurs inside of an Ecosystem
Transformation processes include: changes in the physical characteristics of materials or customers changes in the location of materials, information or customers changes in the ownership of materials or information storage or accommodation of materials, information or customers changes in the purpose or form of information changes in the physiological or psychological state of customers
• Operations management : the systematic direction and control of the business processes that transform resources (inputs) into finished goods or services for customers or clients (outputs).
• Enterprises operate with Universal Business Process Models, but use different Tools & Technologies
Enterprises & Entrepreneurs inside of an Ecosystem
• In order to survive in an constantly changing Ecosystem, the Enterprise must adopt a holistic management approach, promoting business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology
• The Enterprise must develop its ability to manage transformation processes / business processes in order to respond swiftly and effectively to the environment challenges
• Business Process Management allows the Entrepreneurs to: Vision - strategize functions and processes Define - baseline the process or the process improvement Model - simulate the change to the process. Analyze - compare the various simulations to determine an optimal improvement Improve - select and implement the improvement Control - deploy this implementation and by use of User defined dashboards monitor
the improvement in real time and feed the performance information back into the simulation model in preparation for the next improvement iteration.
Re-engineer - revamp the processes from scratch for better results
Enterprises & Entrepreneurs inside of an Ecosystem
Enterprises & Entrepreneurs inside of an Ecosystem Business Process Management core elements
Fig. 4: BPM core elements
• Strategic Alignment: the tight linkage of organizational priorities and enterprise processes, enabling continuous and effective action to improve business performance
• Governance: appropriate and transparent accountability in terms of roles and responsibilities for different levels of BPM (portfolio, program, project, and operations)
• Methods: the tools and techniques that support and enable consistent activities on all levels of BPM; methods dimension focuses on the specific needs of each process lifecycle
Enterprises & Entrepreneurs inside of an Ecosystem
• Information Technology: the software, hardware, and information systems that enable and support process activities
• People: the individuals and groups who continually enhance and apply their process and process management skills and knowledge to improve business performance
• Culture: the collective values and beliefs that shape process-related attitudes and behavior to improve business performance
Enterprises & Entrepreneurs inside of an Ecosystem
Technologies used in the Business Value Chain
• The boundaries of an Enterprise in the Ecosystem include: Suppliers – providing inputs (raw materials, components, finished products or
services); Customers - the users of the outputs of the transformation process; Environment - the legal, political, social and economic conditions within which
it is operating.Fig. 5 : Enterprise vs. Ecosystem
• Value Chain: the chain of activities in the transformation process;• Products pass through all activities of the chain in order, and at each activity the
product gains some value. • Eg.: SCOR Reference Model, based on five distinct management processes: Plan,
Source, Make, Deliver, and Return
• Primary activities: inbound logistics operations (production) outbound logistics marketing and sales (demand) services (maintenance)
• Support activities: administrative infrastructure management human resource management technology (R&D) procurement
Technologies used in the Business Value Chain
SCORReferenceModel
Technologies used in the Business Value ChainFig. 6: Process Modeling on SCOR methodology
• Suppliers <-> Enterprise <-> Customers : E-commerce B2B• Tools:
External Web B2B Portal
B2B Portal Types: Company Web sites, since the target audience for many company Web sites is
other companies and their employees. Company sites can be thought of as round-the-clock mini-trade exhibits. Sometimes a company Web site serves as the entrance to an exclusive extranet available only to customers or registered site users. Some company Web sites sell directly from the site, effectively e-tailing to other businesses.
Product supply and procurement exchanges: a company purchasing agent can shop for supplies from vendors, request proposals, and, in some cases, bid to make a purchase at a desired price (e-procurement)
Specialized / vertical industry portals: provide a "subWeb" of information, product listings, discussion groups, and other features.
Brokering sites: act as an intermediary between someone wanting a product or service and potential providers.
Information sites: provide information about a particular industry for its companies and their employees. These include specialized search sites and trade and industry standards organization sites.
Technologies used in the Business Value Chain
B2B Portal can accommodate several steps of the Order Fulfilment Process:•Product Inquiry •Sales Quote•Order Configuration•Order Booking •Order Acknowledgment / Confirmation •Invoicing / Billing •Order Sourcing / Planning •Order Changes•Delivery Confirmation•Returns
Technologies used in the Business Value Chain
Fig. 7: RUSBIZ B2B Portal solutions – rusbiz.com
• Suppliers <-> Enterprise <-> Customers : E-banking • Online banking - Enterprises may conduct financial
transactions on a secure website operated by their retail or virtual bank, credit union
• Online platforms allow importing data into personal accounting softwareaccount aggregation across different financial institutions
• Mobile banking • Tools:
Internet ATM’s Smartphones PDAs
Technologies used in the Business Value Chain
Technologies used in the Business Value Chain
• Enterprise -> Purchasing• Quality assurance: prequalification of products and manufacturers,
purchasing, storage and distribution• Tools:
Elemental analyzers Physical Properties analyzers Lab automation software
• Inventory management: replenishment lead time, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory etc.
• Tools: Barcoding RFID readers Mobile asset management software Vertical lift module, storage and retrieval systems
• Enterprise -> Production• Production lines - Process welding, heat treatment, drying and curing
processes; Hydro pneumatic crimping, swaging, piercing and staking• Assembly systems - Component handling & transportation, washing and
cleaning processes; Integrated gauging, weighing, testing and measurement stations
• Packing & bottling lines - Automatic component setting and adjustment; Component packing, stacking, palletising and storage facilities
• Tools: Robot automation Vision systems using cameras and image processing software. Rotary indexing assembly machines Platens Hopper cars Bowl feeders Conveyors Forklifts
Technologies used in the Business Value Chain
• Enterprise -> Distribution• Warehouse Management Systems - Automate
picking, packing and shipping and minimize the number of moves per order; consolidate orders to reduce transportation and shipping costs ; workforce planning and scheduling; slotting optimization
• Tools: RFID (Radio-frequency identification) readers Barcode scanners Magnetic stripes OCR (Optical character recognition) Wireless LANs Vertical lift module, storage and retrieval systems
Technologies used in the Business Value Chain
Fig. 8: WMS Benefits – dqlogistics.com
• Enterprise <-> Customers• E-shopping• Networking• E-services• Digital marketing• Tools:
CRM systems Internet – company website, online advertising E-commerce Social media – Facebook, Twitter, Youtube, Linkedin, blogs, forums Barcoding on print ads Online reservation systems E-mail & mobile (SMS/MMS) marketing
Technologies used in the Business Value Chain
• Enterprise <-> Business Processes• Semantics in business – need for a graphic
representation of the reality
• Business process modeling - business users are able to model their business processes, implement and execute those models, and refine the models based on as-executed data.
• Modelling techniques: Unified Modeling Language (UML) Business Process Modeling Notation (BPMN) Cognition enhanced Natural language Information
Analysis Method (CogNIAM) Extended Business Modeling Language (xBML) Event-driven process chain (EPC) ICAM DEFinition (IDEF0)
Technologies used in the Business Value Chain
Fig. 9: Benefits of Business Process Modeling - thakursahib.com
• SCOR methodology - used to identify, measure, reorganize and improve supply chain processes
• Management processes - govern the operation of an enterprise (Corporate Governance, Strategic Management)
• Operational processes - constitute the core business and create the primary value stream (Purchasing, Manufacturing, Marketing, Sales)
• Supporting processes - support the core processes (Accounting, Recruitment, Technical support)
Technologies used in the Business Value Chain
Fig. 10: SCOR Model Scope and Structure - supply-chain.org
• BPM Tools: Process mapping / modeling tools Modelers for software development Modeling tools embedded in BPM systems
• Capturing of process details (implementation of business rules, end-to-end process view, comprehensible to all process stakeholders)
• Simulation capabilities• Support for the Enterprise Architecture development• Report generation and document management• Repository options, version control capabilities, support for
collaborative work
Technologies used in the Business Value Chain
Hype Cycle for Business Process Management(Gartner 2010)
Technologies used in the Business Value Chain
• Enterprise Architecture - defines the structure and operation of an organization in order to determine how it can most effectively achieve its current and future objectives business perspective - defines the processes and standards by which the
business operates on a day-to-day basis application perspective - defines the interactions among the processes
and standards used by the organization information perspective - defines and classifies the raw data (such as
document files, databases, images, presentations, and spreadsheets) that the organization requires in order to efficiently operate
technology perspective - defines the hardware, operating systems, programming, and networking solutions used by the organization
Technologies used in the Business Value Chain
Technologies used in the Business Value Chain
EA Tools:Store, integrate & structure enterprise architecture informationSupport the creation, collection, analysis and presentation of EA information to meet stakeholders’ needs
Fig. 11: Enterprise Architecture Domains – simplicable.com
• Business Performance Monitoring - an essential process that helps your understand how well your business is progressing toward its goals and objectives Measure Critical Few Performance Criteria Analyze Results and Recommend Actions Implement Focused Improvement Activities
• Tools: OLAP — online analytical processing, sometimes simply called "analytics"
(based on dimensional analysis and the so-called "hypercube" or "cube") scorecarding, dashboarding and data visualization data warehouses document warehouses text mining data mining business performance optimization enterprise performance management KPI monitoring decision support systems management information systems strategic enterprise management software
Business Performance Model
• Capability Maturity Model Integration (CMMI): a process improvement approach that provides organizations with the
essential elements of effective processes, which will improve their performance.
includes identifying your organization’s process strengths and weaknesses and making process changes to turn weaknesses into
strengths.
Business Performance Model
Fig. 12: CMMI’s Five Levels of Maturity - computerworld.com
• Niche markets: groups of consumers (market segments) within the larger marketplace who have similar demographic, buying behavior, and/or lifestyle characteristics
• Niche business: Create a simple product / service Identify a niche market (address a need for a product or service that is
not being addressed by mainstream providers) Become niche’s marketplace leader Be specific, distinctive, relevant (brand recognition is a key factor) Use viral marketing, online communities and new technologies Turn into a “trendy business”
Long Tail strategy: selling small volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items
Business Performance Model
• Performance criteria: Effectiveness - the extent to which goals are accomplished Efficiency - getting the job done using the minimum resources to
produce maximum output (the value of the resources delivered to the ecosystem is greater than the value of consumed resources)
Ethics - the extent to which the business rules are followed Aesthetics – the extent to which the business processes fit into time
and space constraint (harmonious behavior in terms of rhythm and proportions)
An enterprise that processes resources meeting all the 4 criteria above can be called an EcoEnterprise
Business Performance Model
• Digital Ecosystem:• a self-organising digital infrastructure aimed at creating a digital
environment for networked organisations that supports the cooperation, the knowledge sharing, the development of open and adaptive technologies and evolutionary business models.
• the ICT-enabling technology for business ecosystems based on the dynamic and amorphous interaction among a multiplicity of organisations
Business Performance Model
Fig. 13: Digital Business Ecosystems Layers - digital-ecosystems.org
Business Performance Management = =a business management approach which looks at the business as a whole instead of on a division level, reviewing the overall business performance and determining how the business can better reach its goals
Business process = a series of logically related activities or tasks (such as planning, production, or sales) performed together to produce a defined set of results
Business Process Management = activity undertaken by businesses to identify, evaluate, and improve business processes
Business process model = a sequential representation of all functions associated with a specific business activity
Consumption = the process in which the substance of a thing is completely destroyed, used up, or incorporated or transformed into something else
Customer = a party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers
Distribution = The movement of goods and services from the source through a distribution channel, right up to the final customer, consumer, or user
Glossary
Ecosystem = a self-sustaining community comprised of interdependent organisms and their natural environment.
Entrepreneur = a person who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced
Feedback = a process in which the effect or output of an action is 'returned' (fed-back) to modify the next action
Feedback loop = a channel or pathway formed by an 'effect' returning to its 'cause,' and generating either more or less of the same effect
Inbound logistics = the activities of receiving, storing, and disseminating incoming goods or material for use
Inventory Management = activities employed in maintaining the optimum number or amount of each inventory item
Key Performance Indicators (KPIs) = Key business statistics which measure a firm's performance in critical areas
Glossary
Production = the processes and methods employed to transform tangible inputs (raw materials, semi-finished goods, or subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services
Purchasing = the activity of acquiring goods or services to accomplish the goals of an organization
Resource = an economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome
Supplier = a party that supplies goods or services to the enterpriseSupply Chain = a system of organizations, people, technology, activities,
information and resources involved in moving a product or service from supplier to customer
Warehouse Management System (WMS) = a software application which supports the daily operations of a warehouse, including inventory control, tracking, and the location of stock items
Glossary
• Anderson, Chris (2008): The Long Tail: Why the Future of Business is Selling Less of More, Hyperion
• Beimborn, D. , Joachim, N. (2010): The joint impact of service-oriented architectures and business process management on business process quality: an empirical evaluation and comparison, Springer-Verlag
• Galloway, L. (1998): Principles of Operations Management, ITP• Hammer M, Champy J (1993): Reengineering the corporation: a manifesto for
business revolution, Harper Business Press, New York• Kidd , P. T. (1994): Agile Manufacturing: Forging New Frontiers, Addison-Wesley• Laguna, M., Marklund, J. (2004): Business Process Modeling, Simulation, and Design
Pearson/Prentice Hall• McCoy, David W. (2010): Gartner, Hype Cycle for Business Process Management• Porter, Michael. E (1998): Competitive Advantage: Creating and Sustaining Superior
Performance, Free Press• Weber B, Mutschler B, Reichert M (2010): Investigating the effect of using BPM
technology: results from a controlled experiment. Sci Comput Program 75:292–310No. 2 (2004)
Further Reading