Defining the Extended Enterprise

1st Doctoral Seminar

Frank Goethals

F.E.T.E.W. - K.U.Leuven SAP-Research Chair on

‘Extended Enterprise Infrastructures’

2/15

Agenda

2nd R.Q. Concl.Fuzzy 2 types Complexity

First set of research questions

Setting the stage

Second set of research questionsConclusions

Fuzzy B2Bi

Two basic types of B2Bi

The complexity of setting up an EE

3/15

Towards the first set of research questions

How to do B2Bi?• Web services standards

2nd R.Q. Concl.Fuzzy 2 types Complexity

4/15

UDDI: Universal Description Discovery and Integration

WS ProviderWS ProviderWS Requestor

WS Broker –UDDI business Registry

WS Requestor

WS Broker –UDDI business Registry

1. Register service and company1. Register service and company

2. Get service and company information2. Get service and company information

3. Look up technical details3. Look up technical details

4. WS binding4. WS binding

Concl.Fuzzy 2 types Complexity 2nd R.Q.

5/15

Towards the first set of research questions

How to do B2Bi?• Web services standards• Semantic web

1st level: EAI2nd level: Extended Enterprise

Integration 3th level: Dynamic

B2Bi

System Integration

B2Bi

Concl.Fuzzy 2 types Complexity 2nd R.Q.

6/15

First research questions

1.What is Extended Enterprise integration?

2.In what does Extended Enterprise integration differ from other forms of integration?

Concl.Fuzzy 2 types Complexity 2nd R.Q.

7/15

What is the Extended Enterprise?Firm Marke

tNetwork form of

organization

Principal-agent theoryProperty-rights theory

Transaction cost theory

High Low

Motivational aspects

Coordinational aspects

The IT-enabled Extended Enterprise is a collection of legal entities (N ≥ 2) that pursue repeated, enduring exchange relations with one another, and of which parties are willing to make relationship-specific IT investments.

Concl.Fuzzy 2 types Complexity 2nd R.Q.

High LowHigh Low

8/15

Systems integration

B2Bi

EEi Market B2Bi

Firm: EAI

A

Pro

duct

ion

Fin

ance

Dev

elop

men

t

…

B

C

A

E

FDK

J

L

G

I

H

Long term relationship; coordination needed

Short term relation; unilateral

development

G

A

I

HJ

K

L

What is Extended Enterprise integration?

Concl.Fuzzy 2 types Complexity 2nd R.Q.

9/15

EEi vs. Market B2Bi WSes

Standardized processes.No coordination needed.

Creativity is possible.Coordination is needed.

Usage statistics.Satisfaction and acceptance.

Usually many using organizations.User need not be identified before

the development begins.No counterparty-specific inv.

Counterparty is variable.

Usually one user-organization.User needs to be identified

before the development begins.Partner-specific investments.

Counterparty is fixed.

Market B2BiEEi

Development coordination

Life

Measure of success

User of the Web service

Characteristic

Life EE Web Service

Life Extended Enterprise

Life Constituting Companies Life Market B2Bi Web Service

Duration Market B2B Transaction

Concl.Fuzzy 2 types Complexity 2nd R.Q.

10/15

The enterprise life cycle

Id

Co

Re

De

Im

Operational

De

Id

Co

Re

De

Im

Operat.

Extended Enterprise

Individual Enterprise

time

Decom.

Decommission

Operation

Implementation

Design

Requirements

Concept

Identification

Concl.Fuzzy 2 types Complexity 2nd R.Q.

11/15

Setting up an Extended Enterprise is complicated

Extended Enterprise: EEi

Individual Enterprise: EAI

Business side ICT side

Strategic Level

Tactical Level

Operational Level

Concl.Fuzzy 2 types Complexity 2nd R.Q.

12/15

Towards the second set of research questions

How to do B2Bi?

Coordination = The management of dependencies.

RQ: How can classes of coordination mechanisms be operationalized to deal with specific types of dependencies in a specific integration context (the Extended Enterprise), given the fact that COTS software (providers) is (are) used.

2nd R.Q. Concl.Fuzzy 2 types Complexity

13/15

Hypotheses

H1: Existing vendors of business software can play an important role in Extended Enterprise integration as an intermediary person in the process of enabling the Extended Enterprise with ICT.

H2: Business software providers can make their software more powerful by implementing standard Web services.

2nd R.Q. Concl.Fuzzy 2 types Complexity

14/15

Conclusions

There are two basic forms of B2Bi: EEi and Market B2Bi.

The coordination of dependencies is an important issue in B2Bi.

We will investigate the dependencies that show up and coordination mechanisms that can be used.

Concl.Fuzzy 2 types Complexity 2nd R.Q.

15/15

Questions or

comments?