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Slide 1Copyright 2011James N Martin
Transforming the Transforming the Enterprise Using a Enterprise Using a Systems ApproachSystems Approach
James N MartinSystems Engineering Conference
SEDC 2012 at GMU
Washington, DC
16 May 2012
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Slide 2Copyright 2011James N Martin
Topics
• What is an Enterprise?
• What does an Enterprise do?
• How does the Enterprise do this?
• How can SE help the Enterprise improve?
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Slide 3Copyright 2011James N Martin
What is an Enterprise?What is an Enterprise?
• A bold, new business venture
• Everything required to accomplish a large, complex undertaking
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Slide 4Copyright 2011James N Martin
Organizations Participating in an
EnterpriseEnterprise
OrganizationOrganization OrganizationOrganization
Participate in
Resources
Manages
Businesses
Projects
Teams
Consists of
People
Employs
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Slide 5Copyright 2011James N Martin
Example Enterprise – System Developer
Enterprise
Sub-contractors
Prime Contractor
DistributorsSuppliers
Participate in
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Slide 6Copyright 2011James N Martin
Example Enterprise – Air Transportation
Enterprise
Airline Operator
Airplane Builder
Flight Safety Authority
Airport Operators
Participate in
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Slide 7Copyright 2011James N Martin
Organizational Complexity
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
EnterpriseEnterprise
Enterprise
Organization
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Slide 8Copyright 2011James N Martin
Managing Resources
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
PeopleKnowledge Other Assets
Manages
Resources
Businesses
Projects
Teams
Consists of
Explicit Knowledge Books & Papers Training Material, etc…
Implicit Knowledge Lessons Learned Mental Models, etc…
Explicit Knowledge Books & Papers Training Material, etc…
Implicit Knowledge Lessons Learned Mental Models, etc…
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Slide 9Copyright 2011James N Martin
People & Other Assets
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
PeopleKnowledge Other Assets
Manages
Resources
Businesses
Projects
Teams
Consists of
Managers & Executives Engineers & Technicians Business & Support Staff Facilities & Infrastructure Operations & Maintenance
Managers & Executives Engineers & Technicians Business & Support Staff Facilities & Infrastructure Operations & Maintenance
Financial Capital & Credits Equipment, Raw Materials
& Finished Goods Facilities, Land & Leases Intellectual Property,
Patents & Trade Secrets Reputation & Goodwill
Financial Capital & Credits Equipment, Raw Materials
& Finished Goods Facilities, Land & Leases Intellectual Property,
Patents & Trade Secrets Reputation & Goodwill Reputation & Goodwill !!
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Slide 10Copyright 2011James N Martin
Consumption & Production
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
PeopleKnowledge Other Assets
Manages
Resources
Money Time Energy Material
Stuff
Consumes & Produces
Businesses
Projects
Teams
Consists of
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Slide 11Copyright 2011James N Martin
Enterprise Management Planning, Organization, Assessment & Control
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
PeopleKnowledge Other Assets
Manages
Resources
Money Time Energy Material
Stuff
Consumes & Produces
Businesses
Projects
Teams
Consists of
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Slide 12Copyright 2011James N Martin
Creating Value
OrganizationOrganization OrganizationOrganization
Participate in
PeopleKnowledge Other Assets
Manages
Resources
Money Time Energy Material
Stuff
Consumes & Produces
Businesses
Projects
Teams
Consists of
Enterprise CreatesValueValue
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Slide 13Copyright 2011James N Martin
What Does an Enterprise Do?What Does an Enterprise Do?
• The Enterprise uses available Resources to accomplish its Goals & Objectives
• These Resources consist of:– People, Policies, Practices & Platforms– Money, Energy, Time & Material– Equipment, Facilities, Infrastructure & Systems
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Slide 14Copyright 2011James N Martin
Individual Competence & Organizational Capability
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
People
Employs
Businesses
Projects
Teams
Consists of
Organizational Capability
Individual Competence
Resources
Manages
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Slide 15Copyright 2011James N Martin
System & Operational Capabilities
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
People
Employs
System CapabilitySystem
Capability
Resources
Manages
SystemsSystems
Develops
Operational Capability
Operational Capability
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Slide 16Copyright 2011James N Martin
CreatesValueValue
3 Types of Capability
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
People
Employs
Operational Capability
Operational Capability
System CapabilitySystem
Capability
Resources
Manages
SystemsSystems
Develops
Organizational Capability
Organizational Capability
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Slide 17Copyright 2011James N Martin
Systems vs. EnterprisesSystems vs. Enterprises
EnterpriseDRIVERS OUTCOMES
SystemINPUTS OUTPUTS
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Slide 18Copyright 2011James N Martin
System Architecture is Like Blueprints for a Building
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Slide 19Copyright 2011James N Martin
Enterprise Architecture is Like Enterprise Architecture is Like Urban PlanningUrban Planning
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Slide 20Copyright 2011James N Martin
An Enterprise Performs Missions, Each with their Own Objectives
EnterpriseEnterprise
MissionMission
SystemSystem
Systems are Used to Perform these Missions
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Slide 21Copyright 2011James N Martin
Users
Missions
Capabilities
Tasks
System Functions
Systems
System Elements
ValueValue
Cost = Cost = Time + MoneyTime + Money
Operational Capabilities System Functions
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Slide 22Copyright 2011James N Martin
Users
Missions
Capabilities
Tasks
System Functions
Systems
Capabilities
Tasks
System Functions
Systems
Missions
System Functions
Capabilities
Tasks
Systems
Missions
Capabilities
Tasks
System Functions
Systems
Users
Task Outcomes
Benefits
The “Value Chain”
Each System By Itself Has No Value ! !
Each System By Itself Has No Value ! !
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Slide 23Copyright 2011James N Martin
DomainsDomains
Users
Missions
Capabilities
Tasks
System Functions
Systems
System Elements
System Requirements
Acquisition Elements
Acquisition Office
Architectural Effectivities
Programs
Projects
MOP’s
Task Outcomes
Benefits
MOE’s
User Operator System Acquisition
Operational Activities
Operators
Operational Requirements
Operations Office
Sites
…and All that Other “Messy” Stuff
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Slide 24Copyright 2011James N Martin
Architecture Modeling & Analysis
Enterprise ArchitectureEnterprise Architecture
Mission ArchitectureMission Architecture
System ArchitectureSystem Architecture
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Slide 25Copyright 2011James N Martin
Overlapping Architecture Models
EnterpriseEnterprise
MissionMissionMissionMission
MissionMission
SystemSystem SystemSystemSystemSystem SystemSystemSystemSystem
SystemSystemSystemSystem
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Slide 26Copyright 2011James N Martin
“System” Architecture Deals with Requirements & Design
ARequirements & Opportunities
System Design
Concepts (System)
AHigh Level Design
Design Requirements
Lower Level Design
DRIVERS OUTCOMES
The most common use of architecture (for developers). A means for transforming requirements into design, and
high-level design into lower-level design.
The most common use of architecture (for developers). A means for transforming requirements into design, and
high-level design into lower-level design.
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Slide 27Copyright 2011James N Martin
Where do Requirements Come From ??Where do Requirements Come From ??
ARequirements & Opportunities
System Design
Concepts (System)
AHigh Level Design
Design Requirements
Lower Level Design
DRIVERS OUTCOMES
The most common use of architecture (for developers). A means for transforming requirements into design, and
high-level design into lower-level design.
The most common use of architecture (for developers). A means for transforming requirements into design, and
high-level design into lower-level design.
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Slide 28Copyright 2011James N Martin
Mission Level
Enterprise ArchitectureEnterprise Architecture
Mission ArchitectureMission Architecture
System ArchitectureSystem Architecture
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Slide 29Copyright 2011James N Martin
“Mission” Architecture Deals with Capabilities & Operating Concepts
AMission Effects & Scenarios
Capabilities
Concepts (Operational)
ACapabilities & Operational Concepts
Functional & Performance Reqts
Concepts (Enabling)
DRIVERS OUTCOMES
A very common use of architecture (for operators). A means for transforming operational concepts into
functional requirements and system concepts.
A very common use of architecture (for operators). A means for transforming operational concepts into
functional requirements and system concepts.
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Slide 30Copyright 2011James N Martin
Enterprise Level
Enterprise ArchitectureEnterprise Architecture
Mission ArchitectureMission Architecture
System ArchitectureSystem Architecture
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Slide 31Copyright 2011James N Martin
AEnterprise Vision & Objectives
Business Plans / Strategies
Concepts (Business & Mission)
ABusiness Plans & Mission Needs
Missions & Scenarios
Effects & Capabilities
Enterprise Architecture Deals with “Getting to the Future” & the “Big Picture”
DRIVERS OUTCOMES
A growing use of architecture (for enterprises). A means for transforming enterprise objectives into
business plans and mission needs.
A growing use of architecture (for enterprises). A means for transforming enterprise objectives into
business plans and mission needs.
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Slide 32Copyright 2011James N Martin
Various Architecting Situations
AEnterprise Vision & Objectives
Business Plans / Strategies
Concepts (Business & Mission)
ABusiness Plans & Mission Needs
Missions & Scenarios
Effects & Capabilities
AMission Effects & Scenarios
Capabilities
Concepts (Operational)
ACapabilities & Operational Concepts
Functional & Performance Reqts
Concepts (Enabling)
ARequirements & Opportunities
System Design
Concepts (System)
AHigh Level Design
Design Requirements
Lower Level Design
DRIVERS OUTCOMES
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Slide 33Copyright 2011James N Martin
Outcomes Become Drivers for Next Level Down
AEnterprise Vision & Objectives
Business Plans / Strategies
Concepts (Business & Mission)
ABusiness Plans & Mission Needs
Missions & Scenarios
Effects & Capabilities
AMission Effects & Scenarios
Capabilities
Concepts (Operational)
ACapabilities & Operational Concepts
Functional & Performance Reqts
Concepts (Enabling)
ARequirements & Opportunities
System Design
Concepts (System)
AHigh Level Design
Design Requirements
Lower Level Design
DRIVERS OUTCOMES
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Slide 34Copyright 2011James N Martin
Driving the Enterprise to Achieve Driving the Enterprise to Achieve Maximum Value for StakeholdersMaximum Value for Stakeholders
EnterpriseEnterpriseDRIVERS OUTCOMES
SystemINPUTS OUTPUTS
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Slide 35Copyright 2011James N Martin
Enterprise State Changes are Achieved Through Work Process Activities
Drivers•Demand•Competition•Laws•Regulations•People•Technology•Investment•Revenues
Outcomes•Products•Services•Revenues•Earnings•Share Price•Market Share•Jobs•Innovation
Enterprise State
Work Processes
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Slide 36Copyright 2011James N Martin
Two Types of Architecture
Enterprise Architectures
• Strategic Goals• Capabilities• Segments• Mission Threads
Solution Architectures
• System Solutions– Hardware– Software– People
• Non-System Solutions– Process– Policy– Education & Training– Organizations– Facilities
utilize these
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Slide 37Copyright 2011James N Martin
Enterprise Systems Engineering & Management
Mission Planning
Mission, Goals & Priorities
Strategic Planning
Objectives & Strategies
Portfolio Management
Systems of Systems
Business Process & Info Mgmt
Resource Allocation & Budgeting
People, Policies, Practices, Money, Platforms, Energy, Facilities & Infra-structure
Program Mgmt
Project Mgmt
Performance Management
Metrics & Figures of Merit
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Slide 38Copyright 2011James N Martin
Enterprise Portfolio Management
Mission Planning
Mission, Goals & Priorities
Strategic Planning
Objectives & Strategies
Portfolio Management
Systems of Systems
Individual Systems
Parts of Systems
Business Process & Info Mgmt
Resource Allocation & Budgeting
Money, People, Facilities, & “Bandwidth”
Program Mgmt
Project Mgmt
Performance Management
Metrics & Figures of Merit
Platforms & Facilities
Land & Rights of Way
Intellectual Property
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Slide 39Copyright 2011James N Martin
Enterprise SE vs Product SE
Mission Planning
Mission, Goals & Priorities
Strategic Planning
Objectives & Strategies
Portfolio Management
Systems of Systems
Individual Systems
Parts of Systems
Business Process & Info Mgmt
Resource Allocation & Budgeting
Money, People, Facilities, & “Bandwidth”
Program Mgmt
Project Mgmt
Performance Management
Metrics & Figures of Merit
Platforms & Facilities
Land & Rights of Way
Intellectual Property
Enterprise SE
Product SE
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Slide 40Copyright 2011James N Martin
Achieving the Proper Balance Achieving the Proper Balance Using Enterprise SEUsing Enterprise SE
• Compromise & Trade-offs– Balance between Complexity & Order– Balance between Effectiveness & Efficiency– Balance between Enterprise Goals & Project
Objectives
• Balancing Stakeholder Concerns– Predictability & Robustness– Performance & Stability– Security & Ease of Use– Cost & Schedule
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Slide 41Copyright 2011James N Martin
Business & SE Process Areas
RestructureThe
Enterprise
VisionGoals
Conflict MgtRoles & Resp
DesignImplementTransition
Traditional Systems
Engineering Process
Areas
Quality AssuranceSystem SafetyInteg Logistics Spt
Reqts Dev & MgmtRisk MgmtConfig MgmtTech Project Plng
Integrated TestDiagnostics
Enterprise Assessment
Enterprise Management
Traditional Business Process
Areas
Program Management
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Slide 42Copyright 2011James N Martin
Adding Enterprise SE Process Areas
RestructureThe
Enterprise
ProcessImprovement
(CMMI)
VisionGoals
Conflict MgtRoles & Resp
Enterprise SE Strategic Technical Plan Enterprise Architecture Cap. Planning Analysis Technology Planning
DesignImplementTransition
Traditional Systems
Engineering Process
Areas
Quality AssuranceSystem SafetyInteg Logistics Spt
Reqts Dev & MgmtRisk MgmtConfig MgmtTech Project Plng
Integrated TestEvaluation & AssessmentDiagnostics
Enterprise Assessment
Enterprise Management
Traditional Business Process
Areas
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Slide 43Copyright 2011James N Martin
Enterprise-Level SE Processes
Strategic Technical Planning
Enterprise Architecture
Capabilities-Based Planning Analysis
Technology Planning
Enterprise Evaluation and Assessment
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Slide 44Copyright 2011James N Martin
Enterprise Systems Engineering
Mission Planning
Mission, Goals & Priorities
Strategic Planning
Objectives & Strategies
Portfolio Management
Systems of Systems
Individual Systems
Parts of Systems
Business Process & Info Mgmt
Resource Allocation & Budgeting
Money, People, Facilities, & “Bandwidth”
Program Mgmt
Project Mgmt
Performance Management
Metrics & Figures of Merit
Platforms & Facilities
Land & Rights of Way
Intellectual Property
Enterprise SE
Product SE
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Slide 45Copyright 2011James N Martin
Conclusions
• Enterprise SE is different from Product SE– Deals with less tangible “things”
– Different Knowledge & Skills
– Different Tools & Methods
– Traditional SE processes are not sufficient for Enterprise-level SE
• Enterprise SE Practices– An emerging discipline
– Needs expansion of Processes & Standards
– Needs training & development of People & Teams
– Needs understanding from Enterprise Managers that SE has something useful to contribute
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Slide 46Copyright 2011James N Martin
BACKUP
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Slide 47Copyright 2011James N Martin
Enterprise Z
Enterprise Y
Enterprise X
Child Enterprises
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Mission Planning
Strategic Planning
Portfolio Management
Business Process & Info Mgmt
Performance Management
Enterprise A
Parent Enterprise
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Slide 48Copyright 2011James N Martin
Mission Planning
Strategic Planning
Portfolio Management
Business Process & Info Mgmt
Performance Management
Mission Planning
Strategic Planning
Portfolio Management
Business Process & Info Mgmt
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Performance Management
Enterprise Z
Enterprise A
Mission Planning
Strategic Planning
Portfolio Management
Business Process & Info Mgmt
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Performance Management
Enterprise Y
Mission Planning
Strategic Planning
Portfolio Management
Business Process & Info Mgmt
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Performance Management
Enterprise X
Parent Enterprise
Child Enterprises
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Slide 49Copyright 2011James N Martin
Enterprise Governance as an Enabler to Manage Progress & Control Changes
Typical System of Systems Typical System of Systems Enterprise Span of ControlEnterprise Span of Control
Portfolio Management
Mission Planning
Strategic Planning
Business Process & Info Mgmt
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Performance Management
Enterprise Governance
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Slide 50Copyright 2011James N Martin
Enterprise Architecture Can Facilitate Understanding of
Inter-Relationships & Consequences
Portfolio Management
Mission Planning
Strategic Planning
Business Process & Info Mgmt
Resource Allocation & Budgeting
Program Mgmt
Project Mgmt
Performance Management
Enterprise Architecture Repository
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Slide 51Copyright 2011James N Martin
Executive Concerns & SE Enablers
Executive Concerns SE Enablers
Identifying ends, means, and scope and candidate changes
System complexity analysis to compare “as is” and “to be” enterprises
Evaluating changes in terms of process behaviors and performance
Organizational simulation of process flows and relationships
Assessing economics in terms of investments, operating costs, and returns
Economic modeling in terms of cash flows, volatility, and options
Defining the new enterprise in terms of processes and their integration
Enterprise architecting in terms of workflow, processes, and levels of maturity
Designing a strategy to change the culture for selected changes
Organizational and cultural change via leadership, vision, strategy, and incentives
Developing transformation action plans in terms of what, when, and who
Implementation planning in terms of tasks, schedule, people, and information
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Slide 52Copyright 2011James N Martin
Enterprise Entities
Enterprise
OrganizationOrganization OrganizationOrganization
Participate in
PeopleKnowledge Other Assets
Manages
Resources
Money Time Energy Material
Stuff
Consumes & Produces
Businesses
Projects
Teams
Consists of
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Slide 53Copyright 2011James N Martin
Different Groupings and Patterns Revealed at Different Scales
Enterprise
Systems Engineering
System of SystemsEngineering
SystemEngineering
Functional DescriptionsDetailed Specifications Detailed Requirements
Enterprise &Sub-enterprise
Tens ofSystem of Systems(Mission Strings)
Hundreds of Independent
Systems
…
……
Broad Descriptions Net-centric Capabilities-basedEvolutionary DevelopmentEmergent Behavior
…Mission Descriptions Mission Capabilities-based
Composition of Systems
Constraints
ConstraintsCapabilities
Functionality
Scales Groupings DescriptionsPatterns
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Slide 54Copyright 2011James N Martin
Relationships between an Enterprise and SoS’s
Enterprise E1 Enterprise E2 Enterprise E3
SOS1
S1 S2 S3 S4 S5 S6 S7 S8 S9
SOS2
S10 S11 S12
SOS3
S20 S21 S22 S23 S24
S31 S32 S33 S41 S51 S52 S53
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Slide 55Copyright 2011James N Martin
Economy
Market
Enterprise
Intraprise
Economic Growth, Laws, Regulations, Taxes & Incentives
Demand, Competition &
Revenues
Work Assignments & Resources
Work Products & Costs
Supply of Products & Services, Earnings
Trade, Jobs & Tax
Revenues
Context for Enterprise Transformation
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Slide 56Copyright 2011James N Martin
Risk & Opportunity at the Enterprise Scale versus the Systems Scale
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Slide 57Copyright 2011James N Martin
Conclusions
• Enterprise SE is different from Product SE– Deals with less tangible “things”
– Different Knowledge & Skills
– Different Tools & Methods
– Traditional SE processes are not sufficient for Enterprise-level SE
• Enterprise SE Practices– Useful but still immature
– Needs expansion of Processes & Standards
– Needs training & development of People & Teams
– Needs understanding from Enterprise Managers that SE has something useful to contribute