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Modeling Competition- Driven Business Strategy for Business IT Alignment Busital 2011 Constantinos Giannoulis Michael Petit Jelena Zdravkovic

Modeling Competition-driven Business Strategy for Business IT Alignment

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Business strategy aims at supporting the vision of an enterprise,by paving the way to achieve it through goals that direct thestrategy’s execution. Aligning business strategy to system requirementsrequires explicit models from both business strategy and requirementsengineering. However, existing business strategy definition approachesare informal and their syntax is based on natural language, therefore,they cannot be used in model-driven alignment. An objective of ourresearch is to define a well-structured business strategy modeling language.In this paper, we propose a business strategy meta-model basedon Porter’s work on competition driven strategy and its extension byStabell and Fjeldstad. Our UML meta-model is formalized in Telos andOWL. An initial validation is performed by instantiating the meta-modelusing a case scenario.

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Page 1: Modeling Competition-driven Business Strategy for Business IT Alignment

Modeling Competition-Driven Business Strategy for Business IT Alignment

Busital 2011

Constantinos GiannoulisMichael Petit

Jelena Zdravkovic

Page 2: Modeling Competition-driven Business Strategy for Business IT Alignment

Overview

Business-IT alignment; links to RE

Problem?

Our Goal & Purpose; towards a Unified Business Strategy Meta-Model (UBSMM)

Where we are today: Value Configuration

Future work

Page 3: Modeling Competition-driven Business Strategy for Business IT Alignment

Business-IT Alignment

Business-IT Alignment Business strategy & IT

strategy

Fit between business needs and IS priorities

Long time commitment & planning with impact on IT planning

focused use of IT: improved performance

Strategy links to RE Context

Rationale for decisions

Resources

Decision making

Page 4: Modeling Competition-driven Business Strategy for Business IT Alignment

Problem

System Development

RE (Early/Late)

Enterprise ModelsBusiness Strategy

Goal Models

Business-IT Alignment

INSTAL

B-SCP

GQM

Alignment methods are rooted in IT and not Strategic Management

o Critisized of being unrealistic and mechanistic

o Dynamic business vs static IT

No use of distinct business strategy methods but only liberal use

In RE a few informal mappings exist

Business strategy is unknown or unclear/ambiguous (understanding gap)

Page 5: Modeling Competition-driven Business Strategy for Business IT Alignment

Our Goal

Build a unified meta-model for business strategy models (UBSMM) to support existing business strategy approaches towards Business-IT alignment;

Analyze the capabilities for linking UBSMM with languages for modeling system requirements to support alignment

Page 6: Modeling Competition-driven Business Strategy for Business IT Alignment

Our Goal

System Development

RE (Early/Late)

Enterprise ModelsBusiness Strategy

Goal Models

Business-IT Alignment

INSTAL

SMBSC

B-SCP

GQM

Value Configuration

Blue Ocean

UBSMM

UBSMM: A meta-model with a pivot function that allows business strategy to be linked to enterprise models

Formalized with defined Semantics

Mapping between Business Strategy approaches & Goal Modeling techniques

Page 7: Modeling Competition-driven Business Strategy for Business IT Alignment

Towards UBSMM

Business Strategy Meta-Models (Strategy Maps & Balance Scorecards, Value Configurations, Blue Ocean, etc.)

Formalization (OWL & Telos)

Concept Unification: UBSMM

Support alignment methods

Mappings to goal modeling notations (i*, KAOS, Tropos, etc.)

Validation via test cases

o How does UBSM support/improve alignments methods?)

o Mapping between strategy and development

Page 8: Modeling Competition-driven Business Strategy for Business IT Alignment

Where we are today

Business Strategy formalization

Strategy Maps and Balanced Scorecards

o To UML meta-model

o To OWL & Telos

Value Configuration

o To UML meta-model

o To OWL & Telos

provides: consistency

correct instantiation

the process of formalizing raises unseen questions

properties & constraints are discovered

clear & unambiguous abstract syntax of our meta-model(s)

additional operations (model integration)

difusion and reusability

Page 9: Modeling Competition-driven Business Strategy for Business IT Alignment

Value Configuration

The Value Chain

The Value Shop The Value Network

Page 10: Modeling Competition-driven Business Strategy for Business IT Alignment

Value Activ ity Ty pe

PrimarySupportProductionInbound logistics...

<<enum>>

Constraints on activ ity ty pes: e.g. if the used ty pe is Production, then the ty pe "Primary " should also be used.

Constraints should apply on the ty pes of the v alue conf iguration activ ity used depending on the v alue conf iguration ty pes. For example, if the ty pe is Chain, then all activ ity used should be activ ities of ty pe corresponding to these of primary activ ities of a v alue chain.

LinkagesDriv er

Description : String...

Value Activ ity

Cost : LongValue : StringDescription : Stringf it-to-strategy : Boolean

0..n

1

+is_origin_of0..n

+has_origin1

1

0..n

+has_destination1

+is_destination_of0..nValue Conf iguration Ty pe

ChainShopNetwork

<<enum>>

Costumer ty pe

description : String

Price Range

description : String

Need ty pe

description : String

Theme

Actor

name : Stringmain : Boolean

1..*

1

+perf orms1..*

+perf ormed-by1

Value Conf iguration

Margin : StringDescription : Stringf it : {Order1, Order2, Order3}ty pe : {Chain, Shop, Network}

1..*

1

+includes1..*

+inf luences1

7..*1..*

+uses

7..*

+used-in

1..*

0..*

0..*

+is-ty pe-of 0..*

+is-of -ty pe0..*

Strategy

description : Stringty pe : GenericStrategy Ty pegoal : String1..* 1

+ref ined-into

1..*

+details

1 0..*

1+def ines

0..* +is-def ined-by

1

1

1

+bases-on

1

+implements1

Value Proposition

description : String...

1

1..*

1

1..*

1

1..*

1

1..*

11..*

11..*

1

1

+corresponds-to

1

+concerns

1

The Value Configuration Meta-model

Page 11: Modeling Competition-driven Business Strategy for Business IT Alignment

The Value Configuration Meta-model Includes all main elements of the Value Chain, the

Value Shop, the Value Network

o Introduces explicitely fuzzy concepts such as fit, linkages, etc.

o Limitation: other fuzzy elements are yet to be included such as trade-offs

Separates classes and instances (application)

Constraints expressed in a structured manner

Page 12: Modeling Competition-driven Business Strategy for Business IT Alignment

Formalization

Telos Expressiveness of

advanced constraints

Model checking supported by tools (conceptbase)

BUT cannot reason about the model and integrate others

OWL Supports integration

Establish rules for mappings (OMG)

Advanced reasoning

Widely accepted and used

BUT derivation is not supported

Page 13: Modeling Competition-driven Business Strategy for Business IT Alignment

The Value Configuration meta-model in Telos

Page 14: Modeling Competition-driven Business Strategy for Business IT Alignment

The Value Configuration meta-model in OWL

Page 15: Modeling Competition-driven Business Strategy for Business IT Alignment

Value Configuration(Norwegian Police)

Captures the Strategic intent of the Police Investigation Unit

How does it create value

Aims at evaluating the intent

Page 16: Modeling Competition-driven Business Strategy for Business IT Alignment

Value Configuration in OWL (Norwegian Police)

Page 17: Modeling Competition-driven Business Strategy for Business IT Alignment

Value Configuration in Telos (Norwegian Police)

Page 18: Modeling Competition-driven Business Strategy for Business IT Alignment

Future Work

Conceptualize & Formalize more business strategy approaches

Unify the existing models for UBSMM

Integrate more business strategy methods

Validate UBSMM with cases

Map and evaluate how UBSMM can support/complement alignement methods

Map and evaluate how goal modeling languages (i*, KAOS, BMM, etc.) can express business strategy using UBSMM

Page 19: Modeling Competition-driven Business Strategy for Business IT Alignment

Questions?

Constantinos Giannoulis

o [email protected]

o http://constantinos.blogs.dsv.su.se/

Jelena Zdravkovic

o [email protected]

o http://jelena.blogs.dsv.su.se/

Michaël Petit

o [email protected]

o http://www.fundp.ac.be/universite/personnes/page_view/01002983/