Extract from:

Page 1

Road map for e-business implementation in Extended Enterprise

Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)

Extract from:


e-Volution II – Road map for e-business implementation in Extended Enterprises

Project Review Meeting

24 May 2004, Brussels

Page 2



Agenda

I. Management summary report

II. Presentation of the e-volution methodology concept

a) Requirements: WP 1

b) Solutions: WP 2, WP 3

III. Forecast of next activities

c) WP 4

d) WP 5

e) WP 6

IV. Final discussion

Page 3



WP 3 introduction

Objectives and expected results

Solution constraints

Solution environment

– Conception of a decision support system on the basis of information interaction and of updating the content of the information analysis

– functional and non-functional specification of the system

– Specification of solutions for rules-mechanisms and update routines

– Need for accommodation of different software modules, which• incorporate different logic• serve different functionality

– Heterogeneous systems and IT landscape– Collaborative application platform

– System use scenarios:• Communication of integrated modules and integration platform

remotely (if not on same system)• Communication with 3rd party applications remotely

Page 4



Software concept (Task 3.1)

Content – Assessment of state-of-the-art technologies/solutions and selection of most suitable to employ

– Specification of software architecture

• functional and non-functional system based on WP 1 requirements

• information exchange logic between the toolkit components

Technical realisation

– component based structure (session management, module loading/ execution, transaction management)

– Multi-tier architecture because of platform’s distributed nature (different logic applications):

• 1st: loosely coupled software modules (market and organisation, any other 3rd party application employed)

• 2nd: software module integration platform which encapsulates the application logic

• 3rd: portal to the Web

– Web-based architecture to enable the Extended Enterprise philosophy (web-based management)

Page 5



System architecture concept (Task 3.1)

Integration platform

OrganisationModule

MarketModule

Web

DB

SME 1

SME 2

SME 3

SME n

Extended Enterprise

DB

DB

Web-services

Web-services enabler

• Component based task execution

• Ontology for communication means between different domain knowledge (3rd party applications)

• Interconnecting database management system (DBMS)

Market module concept (Task 3.2) Organisation module concept (Task 3.3) Integration platform concept (Task 3.4) Rules, mechanisms and update routines (Task 2.4)

Page 6



How to apply the methodology and software?

GenericProcessmodel

GenericProcessmodel

Generic e-business road mapping model(tasks, activities, methods, instruments)

State-of-the-art

State-of-the-art

FirmenanschriftPLZ, OrtLandTelefonnummerFaxnummer

Firmenname

MitarbeiternameTitelAbteilungBrieffach

Firmenname

Software tools

Software tools

Business softwareOther softwareWWWetc.

DataInformation

EE environment

EE environment

Trainingconcept

Content service provider

EE e-business strategy and

road map

Page 7



Phase I: IDENTIFICATION

The Identification phase covers the set of activities that identify the contents of the EE under consideration in terms of its boundaries and its relation to its internal and external environments.

– EE business idea management (business mission definition, business idea formulation, business goal definition)

– Development of qualitative EE business model (business model formalisation, business value model definition, business process model definition)

– Specification of EE purpose and business

Definition

Content

Phase results

Page 8



Value flowdrafting

EE visiondefinition

Companies' corecompetence

analysis

Business processmapping

Revenue flowdrafting

EE competencedefinition

EE strategicgoal definition

Businessidea

formulation

EE businessidea

management

Logistical flowdrafting

Value chainprocess drafting

EE missiondefinition

Informationflow drafting

Businessvalue model

definition

BusinessGoal

Definition(Profit and Market)

EE businessopportunitydefinition

Benefitdefinition

Company strategicgoal definition

Businessprocessmodel

definition

Actor androle definition

Businessmodel

formalisation

Developmentof qualitativeEE business

model

Businessmission

definition

1.Identification

Phase I: IDENTIFICATIONHierarchy of e-business road mapping model phase

Level 2: Phase steps

Level 1: Phase

Level 3: Tasks

Level 4: Activities

Page 9



Phase I: IDENTIFICATION – Test case exampleEE business idea management: business mission definition

WINI and Veyhl are realising a pilot implementation of an intelligent B2B-network along the supply chain to better serve changing customer requirements, i.e. higher product flexibility with regard to products (higher product variety combines with short delivery times) and accompanying services (application advise, customer specific solutions), and to guarantee in the long-term competitiveness with global players in global markets.

Innovative e-business solutions paired with motivated and qualified employees are the basement for sustainable economic success.

The “Mission Statement" describes concisely the Extended Enterprise and its uniqueness for outsider and its partners.

All arrangements within a EE aim to fulfil the mission.

The mission statement should be general but anyhow be motivated and included the following points:

1. Customer and target market

2. Product and service offer

3. Geographic market

4. Technologies

5. Economic concerns

6. Philosophy (values, etc.)

7. Image

8. Employees

9. Competition facets

Page 10



Formulation and summarization of the EE-business idea through the management in a even to a management and information technical laymen understandable form

Phase I: IDENTIFICATION – Test case exampleEE business idea management: business idea formulation

Supplier view:– Production made to demand– Production made to customer (b2b)

order– Information about customer’s work

progress

Customer view:– More flexible customer (b2c) driven

made to order procurement (higher product variants, shorter delivery times, smaller lot sizes)

– b2b information sharing (planned and actual demands)

– Stock incoming inspection and automated payment

Extended Enterprise view along the value chain:– Inter-enterprise optimisation of procurement process along the supply chain

for harmonisation/synchronisation of the business processes– Implementing of a software platform for inter-enterprise information

sharing/exchange about current demands (delivery dates, variants, amount)– Increased productivity and higher flexibility

Page 11



Phase I: IDENTIFICATIONOrganisational approach (Task 2.3)

Basic idea

Revision measures

– identification of all organisational aspects which have affects on the development of an e-business strategy

– support of the decision making process with respect to the cooperation specialties within Extended Enterprises

– Building up the basis to define strength and weaknesses

– Support of distributed strategic decision making processes

– Stronger addressing of EE issues in the e-business road mapping process

• In depth status analysis of EE entities

• Interactions of methodological and system concept

− Presentation of the added concept value

Page 12



Horizontal Extended Enterprises – different levels of information gathering

2nd tier supplier(operative partner)

1st tier supplier(operative partner)

final producer(operative partner)

EE level(co-ordinator)

given by individual strategy

goal definitionof the EE



goal prioritisationgiven by

individual strategygiven by

individual strategygiven by

individual strategy

processprioritisation

individual analysis

individual analysis

individual analysis

alignment if value adding fits

individual analysis

individual analysis

individual analysis

elimination of big differences

definition on EE level

given by individual organ.



goal definition

goal prioritisation

process prioritisation

core competence analysis

eOrganisation definition

eBiz abilities

Page 13



Vertical Extended Enterprises – different levels of information gathering

final producer end userfinal producer

(operative partner)EE level

(co-ordinator)


goal definitionof the EE

goal prioritisationgiven by

individual strategy

processprioritisation

individual analysis

adjustment on each other (in

SWOT)

individual analysis

elimination of big differences

definition on EE level


goal definition

goal prioritisation

process prioritisation

core competence analysis

eOrganisation definition

eBiz abilities

Result:• information gathering to identify strength and weaknesses

on EE level are almost the same on vertical and horizontal EE organisations

• There is a small difference in having a view on the single competencies of the partners within the EE:

• in vertical EEsWhat kind of new products / services are possible with the competencies of each partner?

• in horizontal EEsDo the core competencies of each partner in the single stage of the value chain fit to the needed task/added value for the EE?

Ergo:• individual competence analysis could be

important for the SWOT – no direct impact on OM on EE level

• core competence alignment in horizontal EEs is important for OM

Page 14



Phase I: IDENTIFICATIONOrganisational approach (Task 3.3)

Technical approach – Web-based application based on JSP, JDL, etc.– Open architecture by providing and supporting all common

interfaces (XML, text, CSV, etc.)– Use of common DB which are free of use for SMEs– Common interfaces between the modules of e-volution tool kit

– Methodology and software for strategic decision making processes in distributed organisations (EE)

• Entity positioning and adjustment in EE architecture• e-business related EE strengths and weaknesses

Results

– Case study and literature research related to e-business– e-business related EE organisation analysis research– Knowledge management within strategic processes

Scientific approach

Page 15



Phase I: IDENTIFICATIONOrganisation module (Task 3.3)

– Collaborative business goal definition, prioritisation, e-business process prioritisation

– Collaborative core competence definition

– Entity based e-organisation analysis and EE based comparison

– Entity based e-ability analysis and EE based comparison

– Reporting

Main application functionalities

– Stand-alone or server-based solution

– PC (user), Server (administrator)

– Internet/intranet access, HTML-Browser

Application implementation requirements

– Adaptability

– Web based

– Knowledge management

– User friendliness

Other technical features and Unique Selling Propositions (USP)

Page 16



Phase I: IDENTIFICATIONOrganisation Module – snapshots of entire functionality

Step 2: goal prioritization

Step 3: process prioritisation

Step 6: e-abilities

Step 1: goal definition

Step 4: core competence definition

Step 5: e-organisation

Step 7: strengths/weakness-

definition

Page 17



Phase I: IDENTIFICATIONEE business idea management: business goal definition and specification

• each partner will be interviewed, which goals they aim to achieve by participating the EE

• WINI and Veyhl goals are primarily

• flexibility goals • cost goals• time goals

• aggregation of all answers by the coordinator and development of closed questions to quantify the goals

• WINI and Veyhl quantified the goals• they where final defined in a meeting

Reising

Reising

Page 18



Phase I: IDENTIFICATIONEE business idea management: business goal and process prioritization • goal prioritization bases on the goal definition made in the previous step• goal prioritization is only made on EE level by the votes of each individual partner• it does not replace the final discussion and has to be seen as decision preparation

• WINI and Veyhl specified the goals flexibility, costs and Quality

• Each partner gives his own vote • the aggregation shows that flexibility has the highest

priority heading time, cost and quality goals

• based on the goals prioritization the processes will be defined which have the strongest benefits on these goals

• Each partner gives his own vote • the aggregation shows:

• highest priority for human resources (18) most important factor for successful realisation• manufacturing (18) highest impact• procurement (13) and logistics (10) also strongly concerned

18

3

13

10

18

3

Page 19



Phase II: CONCEPTION

Conception is the set of activities that are needed to develop the e-business concept (qualitative EE business model). The Conception phase covers the set of activities that are needed to develop the e-business concept for the EE and analyses its effects on organisation, processes and resources.

– EE external analysis: market analysis, trend analysis -> opportunity and threat (OT) definition

– EE internal analysis: human capability analysis, competence analysis, e-organisation analysis, IT-architecture analysis -> strength and weakness (SW) definition

– EE e-business strategy definition: e-business goal definition (functional) -> e-business strategy and roadmap implementation concept development

– E-business strategy, implementation concept and roadmap

Definition

Content

Phase results

Page 20



Phase II: CONCEPTIONDetailed e-business road mapping model phase

2.Conception

EE externalanalysis

EE internalanalysis

EE e-businessdefinition

Level 2: Phase steps

Level 1: Phase

Level 3: Tasks

Level 4: Activities

Opportunity andthreat (OT)definition

Trendsfinding

Trendsanalysis

Environment andsociety analysis

Law andpolitics analysis

Trendsfiltering

MarketSegmentation

Analysis

Market andeconomyanalysisCustomer

focussing

Attractivenessassessment of thedifferent P/M areas

EE externalanalysis

Specification ofexternal threats

and opportunities

Comparisonwith the

competitor

Marketanalysis

Trendsformatting

Trendsfocussing

Customerformatting

Competitorfocussing

Analysepurchasing

criteria/Customers

Customerfiltering

Customerfinding

Competitorfiltering

Competitorformatting

Science, researchand technology

analysis

Competitoranalysis

Assesproducts

and markets

E-business impactanalysis on the

Market andthe EE

Competitorfinding

Page 21



Phase II: CONCEPTIONMarket approach (Task 2.2)

Basic idea – Identification of the main market and environmental (laws, regulations, etc.) aspects which influence the e-business strategy

– Market Module 1:

• specification of a procedure that drives the manager (user) towards strategic opportunity-threat analysis for preliminary identification of a set of consistent (with the general business process) e-solutions

– Market Module 2:

• subsequent detailed market analysis focused on main envisaged e-solutions

Page 22




Innovative aspects – Concurrent and collaborative external analysis enabled by software distributed architecture

– Clustering technique for automated entity profiling

– Information Selector (IS) for efficient semiautomatic data retrieval

– Neural Network based trend assessment

Scientific approach – Resource competence based approach to devise the EE

– Market analysis concepts and methods (segmentation, matrix portfolio, questionnaire assessment, trend analysis, etc.) adapted to EE peculiarities

– advanced usage of Neural Networks

– Market data knowledge management

Company 1 Company 4Company 3Company 2

Competence X Competence Y

Page 23




Technical approach – UML, use case diagram, class and activity diagrams specification

– Standardised modular components based on J2EE specification

– Web based platform with free RDBMS

– Internet/intranet access via browser

– Analysis and assessment of the influence of ’e’ on the business, market and value chain

– Collaborative identification of the EE most important product/market areas with the greatest potential for e-business employment

– Competitor and purchasing criteria analysis with subsequent preliminary comparison

– Reporting, advanced chart displays

– Central user administration (authentication, access control, etc.)


Page 24



Phase II: CONCEPTIONExternal analysis: Trend analysisE-sales trend filtering analysis

E-sales trend formatting analysis

Page 25



Phase II: CONCEPTIONExternal analysis: Product and market assessment / opportunity-threat-definition

Opportunity-Threat analysis table

Product/Market areas identification based on attractiveness and EE competitive position

submission to the integration module

Page 26



Phase II: CONCEPTIONInternal analysis: EE IT-architecture analysis (e-business organisation positioning)

Recommendations:

Degree of integration: Yes 0-2 times: it is possible to organise the e-activities independently from the core business, there is a low integration degree needed!

Degree of coordination: Yes 3-5 times: The e-business activities should base on the same technical and organisational basis, because the coordination between them is high!

Central Coordination: The leading partner (or the partner with the highest given competence) should combine all e-activities. This centralisation increases special know-how and the common platform, which all partner are using.

• definition on EE level• each Partner gives his vote from his point of view on the EE,

votes will be aggregated• recommendations will be given with regard to how to organise the

e-business activities• result WINI-Veyhl: central coordination of their planned e-

business activities

Page 27



Phase II: CONCEPTIONInternal analysis: EE IT-architecture analysis (e-business abilities comparison on individual and EE level)

comparison of the profiles by the coordinator of the EE

individual profile of Veyhl individual profile of WINI

• WINI and Veyhl do have almost the same profile

• deviation 1: ICT penetration levelVeyhI uses additionally to informix also oracle db: when defining single projects/activities, coordinator has to consider possible constraints – right now it has no direct impact

• deviation 2: Web Site Languageshas no impact, because the identified e-business relevant processes will not be affected by them

Page 28



Phase II: CONCEPTIONInternal analysis: Strengths/weakness-definition

submission to the integration module(csv-format)

• based on the gathered information on individual and EE level in the OM, the coordinator defines potential strengths and weaknesses on EE level

• these are potential facts because of the restricted view only on internal facts

• these facts become real strengths or weaknesses in the direct comparison between internal and external facts

• the defined potential strengths and weaknesses are submitted to the integration module for SWOT-Analysis

Page 29



Phase II: CONCEPTIONMethodological integration approach (Task 2.5)

Basic idea – Realisation of backbone concept; synthesis of opportunities-threats-strengths-weaknesses and EE e-business strategy and roadmap development

– Design of e-business road mapping model

– Conceptual integration of the detailed thematic approaches into the e-business road mapping model

• Formalisation of e-business strategy development process (elaboration, assessment, formulation)

Scientific approach

Page 30



Phase II: CONCEPTIONMethodological integration approach (Task 2.5)

Technical realisation – Methodology modelling

• Model framework definition: syntax, semantic, conventions

• Work flow modelling

• ARIS toolset

– Sustainability

• Standardised model formats for optional transfer into other systems, e.g. Lotus Notes or SAP

– Generic e-business road mapping model for EEResults

Page 31



Phase II: CONCEPTIONEE e-business strategy definition: e-business strategy development (elaboration, assessment, formulation)

StrengthsStrengths

List of strengths(1 .. n)

List of strengths(1 .. n)

WeaknessesWeaknesses

List of weaknesses(1 .. n)

List of weaknesses(1 .. n)

OpportunitiesOpportunities

List of opportunities(1 .. n)

List of opportunities(1 .. n)

ThreatsThreats

List of threats(1 .. n)

List of threats(1 .. n)

S/O strategies and goals

S/O strategies and goals

List (1 .. n):Consolidation of

strengths to realise opportunities

List (1 .. n):Consolidation of

strengths to realise opportunities

W/O strategies and goals

W/O strategies and goals

List (1 .. n):Overcoming of weak-

nesses by realisation of opportunities

List (1 .. n):Overcoming of weak-

nesses by realisation of opportunities

S/T strategies and goals

S/T strategies and goals

List (1 .. n):Consolidation of strengths to avoid

threats

List (1 .. n):Consolidation of strengths to avoid

threats

W/T strategies and goalsW/T strategies and goals

List (1 .. n):Overcoming of

weaknesses and avoidance of threats

List (1 .. n):Overcoming of

weaknesses and avoidance of threats

SWOT-based e-strategy definition

Reduce weaknessesor change into strengths

Use of chances

by strengths

Min

imis

e o

r a

void

th

rea

ts

Customer perspective

[Goals][Goal measures]

[Goal targets]

[Goal priority]

[Initiatives]Financial perspective


[Goal targets]

[Goal priority]

[Initiatives][…] process perspective


[Goal targets]

[Goal priority]

[Initiatives]Innovation, learning and growth perspective


[Goal targets]

[Goal priority]

[Initiatives]

Realisation BSC definition

Operationale-business excellence

Operationale-business excellence

e-business support

processes

e-business support

processes

Evolutionarye-business

experimentation

Evolutionarye-business

experimentation

Breakthrough e-business strategies

Breakthrough e-business strategies

low high

low

high

Mission critical

Tactical

Efficiency New value creation

Process innovation

Bus

ines

s cr

itica

lity

ICT-strategy definition

Inte

rna

l e-

bus

ine

ss

ICT

sop

hist

icat

ion

Ext

ern

al e

-bu

sin

ess

Time

e-process reengineering of internal business processes

e-process reengineering of external business processes

Convergence

New business processes organisation

Project/measureProject/measure

Implementation roadmap definition

Infrastructure

RTD and engineering

human resource management

Administration

Controlling

FinancesSupporting processes

e-commerce

e-supply chain management

e-procurementValue creating processes

employeesinformation and communication technologies

business and organisation

PerspectiveBusiness processes

Infrastructure

RTD and engineering

human resource management

Administration

Controlling

FinancesSupporting processes

e-commerce

e-supply chain management

e-procurementValue creating processes

employeesinformation and communication technologies

business and organisation

PerspectiveBusiness processes

e-business strategy conform, specific

measures

Implementation measurement definition

Don’t move approach

Don’t move approach

First mover, Fast Follower,Early adopter

approach

First mover, Fast Follower,Early adopter

approach

First moverapproach

First moverapproach

First mover approach (if verified cost-benefit-risk-

relation), elseFast follower

approach

First mover approach (if verified cost-benefit-risk-

relation), elseFast follower

approach

Operative Strategic

Cus

tom

ised

/N

ot a

vaila

ble

Sta

ndar

d/av

aila

ble

Benefits

Tec

hn

olo

gy

Implementation strategy definition

Page 32



Phase II: CONCEPTIONSystem integration approach (Task 3.4)

Basic idea – Central project and data management (integration) platform

Scientific approach – Quantification of identified strengths and weaknesses

• V = Importance x Competitiveness x Potential x Sustainability x Robustness

− Calculation of probabilities of exploitation of opportunities and threats (Bayesian Model)

− Exploitation of “Common external factors = Common opportunities and common threats” based on the “joint factors = joint strengths an joint weaknesses”

− most appreciated action is strategy to follow

− Definition of milestones (entity, time, activity)

− e-business roadmap visualisation

Page 33




System logic – Date upload from Market and Organisation modules

– Data storage in local database

– Strategy Positioning (output: strategy positioning results)

– Strategy formulation

• Value organisation Information

• Calculation of exploitation probabilities of external information

• Combination of market and organisation Information

• Strategy evaluation and selection

• Roadmap formulation

Page 34




– Data import and integration from other software modules (e.g. Market and Organisation modules, ERP-systems) via Business Entities Editor (BEE)

– Documentation of mission statement

– Input data calculation and valuation of intangible qualitative information

– SWOT-analysis

– Strategy establishment, evaluation, selection

– Roadmap definition


– Microsoft Database Engine MSDE 2000

– Windows 2000, XP

– .Net Environment (in case of BEE employment)

Application implementation requirements

– Interoperability provided by ontologies (communication of information)

– Methodology of assessing qualitative information (Andriessen and group in KPMG (http://www.weightlesswealth.com)

– Methodology of calculating the exploitation probability factor of market information (Expected Utility Action-matrix : Bayesian method)

Other technical features and Unique Selling Propositions (USP)

Page 35



Phase II: CONCEPTIONTool kit – snapshots of functionalities

3. Combination of market and organisation information

4. Strategy development

5. Roadmap formulation

1. Value qualitative data

2. Calculate market exploitability

Page 36



Post road mapping phasesPhase III: REQUIREMENTS

The Requirement phase covers the activities needed to develop descriptions of operational requirements of the EE and the collection of all their functional, behavioural, informational and capability needs, no matter whether these will be satisfied by humans or IT.

– EE requirement analysis (organisation, processes, resources -> requirement specification)

– Company requirement analysis (organisation, processes, resources -> requirement specification)

– specification of IT architecture (systems and software)

Definition

Content

Phase results

Page 37



Post road mapping phasesPhase III: REQUIREMENTS - Development of business object instance model (test case example)

Resources: Business Model Designer (prototype) for business architecture specification

Page 38



Post road mapping phasesPhase III: REQUIREMENTS - Business process modelling (test case example)

Work flow inside WINI „Procurement fractal” entity

Work flow inside WINI „Assembly fractal“ entity

Page 39



Post road mapping phasesPhase IV: DESIGN

The Design phase includes activities that support the detailed specification of the selected e-business services. Design affects EE organisation entities, products and process with all of its components that satisfy the identified requirements.

– EE entity design (human and e-enabled tasks): organisation, processes, resources

– risk analysis

– (request for proposals: software specifications, system architecture, etc.)

– implementation plan

• system architecture, application software and interface specification

• test plans, quality factors, functional e-business goals

Definition

Content

Phase results

Page 40



Post road mapping phasesPhase IV: DESIGN – Tools for organisation, process and resource specification

XML Config File (D)

Resources: Data Model Designer (prototype) creates running software applications with database independent persistence and independently from the operative system little programming efforts cost effective design of individual

software solutions

Page 41



Post road mapping phasesPhase IV: DESIGN – Tools for forms and GIU design

XML Config File (F)

Resources: Forms designer (prototype) enables multi-lingual software realisation of application and HTML-Front/Ends at the same time cost effective design of individual

software solutions

Page 42



Summary of technical work progress and reached results

– Framework for formalisation of management processes

• Combines workshop (creative) and software tool (analytic) based approach

– SME targeting Decision Support Systems

• Distributed application environment

• Component-based system architecture

• Stand-alone plus integration

• Business Process Execution Language (BPEL) like specification for construction of execution routines

• Use of ontologies for system communication means execution (web-services)

• Application of quantification methods and mathematical models (Bayesian model) on qualitative SWOT analysis

Results and innovations

Page 43



Summary of technical work progress and reached results

– e-business road mapping model

• design: generalisation, abstraction

• maintenance and content management: update, tuning, advancement

– (Semi-)automated analysis processes may limit the traditional way of managers creative decision making

– Not only one BPEL version available, different versions of Web Services Description Language (WSDL)

– Further steps should be based on the maturity of the BPEL specification in order to be fully incorporated into the e-Volution software family

Challenges and risks

Documents

Extract from: