essentiality of changes of business models by erika asnina, lv

Institute of Applied Computer Systems Riga Technical University, Latvia

November 5, 2013 BSC’ 2013 Riga, Latvia

The business model of a large organization includes ◦ Complex business processes, different business goals,

visions, strategies, stakeholders, resources, artifacts and so on

Knowledge about the business is distributed among employers and employees ◦ Senior managers see the whole picture from their eminency ◦ Lower-level managers and workers may know more specific

details

In order to manage the complexity, supporting information systems are used ◦ Enterprise Resource Planning systems, Decision Support

Systems, analytical toolsets, etc.

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A “real-world” business with multiple goals, visions, strategies, processes, objects, rules and events

Business processes supported by information systems and ICT


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Strategic layer (planning)

vision, goals and objectives

Business model layer (architecture)

data structure and money earning logic

Process layer (implementation)

implementation of the business model in business

structure, business processes and infrastructure

(including information technology tools)

Viewpoints: business architecture, data architecture, application architecture, technology architecture; capability viewpoint, data and information viewpoint, operational viewpoint, project viewpoint, service viewpoint, standard viewpoint, and system viewpoint; business requirements, software requirements, business process logic, business and software objects, technology.

Technological forces Competitive forces Customer demands Legal environment forces Social environment forces

External forces are interrelated as forces

from the social environment that may affect customer demands and technological forces.


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Big importance means that an impact on the organization is crucial, and the changes have to be adapted quickly, in order to keep its sustainability in the market;

Medium importance means that an impact on the organization is less crucial than in the previous case, but the organization has to react adequately quickly in order to adapt the changes in the environment to its business model;

Small importance means that an impact on the organization is inessential; thus, the organization may delay the adaptation of changes. However, it is not recommended postponing those changes in order to keep organization’s sustainability in the market.

[Jakimavicius, T., Kataria, P., Juric, R.:Semantic support for dynamic changes in enterprise business models. Journal of Integrated Design & Process Science. Vol. 14, Issue 2, 1--11 (2010)]


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Elements to

be changed

Business

process A

Business

process B

Business

process C

Business

process D

uses

uses

uses

uses

Business Strategy

Business OrganizationInformation and Communication

Technology

Business Process and

Data Model

Social Environment

Legal Environment

Co

mp

etitive

Fo

rce

s

Customer Demand

Technological Changes

Small Importance

Big or Medium

Importance

Big or Medium

Importance

Big or

Medium Importance

Big or Medium

Importance

Scope depends on:

- a number of the elements to be changed;

- frequency of usage of the elements;

- a number of elements and business processes

indirectly affected by the change.

The assessment of the essentiality of a software change would take into account factors, which are important for developers of supporting information systems (the scope of changes), and factors, which are important for business sustainability in the market (the importance of changes).

The essentiality is evaluated as a sum of products of the multiplication of importance of a change (that is determined by its origin environment) and the scope of changes in a business model of implemented processes caused by them.


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The research has been conducted within the framework of project No. 1.10 “Competence Centre for Information and Communication Technologies”.

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