use of neo technology for new enterprises – i

Ecosystem:•Biotope - environment that surrounds, influences and is utilized by a community•Biocoenosis - the interacting organisms living together in a biotope, in a state of dynamic equilibrium, and forming a closely integrated community

Entrepreneur

Tools

Enterprises & Entrepreneurs inside of an Ecosystem

Initiative

ConsumeProcessOwn

ConsumeProcessOwn

Business Architecture

Technical Architecture

Outcome resources

Income resources

Technology pool Enterprise

Ecosystem

EnterpriseEnterprise

Enterprise

Fig. 1: Enterprises & Entrepreneurs inside of an Ecosystem


Generic architectural / design concepts can be mapped on various technologies

Fig. 2: Defining Business Architecture – timeforapause.com

Humans in the Ecosystem•Humans are a subjective resource in the ecosystem, and have the capability of

ConsumingProcessingOwning

other living / non-living resources

•Humans can only exist in groups (social determinism)

•Enterprise = a group of humans processing ecosystem resources


Humans Resources

Consume

Process

Own

Considering the Theory of Value, Resources have two important properties (Object - Oriented approach):•Renewability (resources are replaced by natural processes and replenished with the passage of time)•Homogeneity (resources are alike, interchangeable, or uniform)

Subclasses of Resources :•Quasi-unlimited (homogeneous & renewable)•Scarce (non-homogeneous & non-renewable)

Resource ownership can be defined by possession, use and transmission of resources

Enterprises & Entrepreneurs inside of an Ecosystem Ecosystem: a morphism of resources in a

continuous transformation process

Methods / Operations applicable to resources

•Generic method: “Convert / Process resource” -> can be instantiated by “Consume resource” •Living resources are capable of consuming both living and nonliving resources, but certain conversion processes can be started without a Living resource initiator•Consumption = a way of converting resources into other resources•Resources consumption generates competition for limited resources and generates value for those particular resources

Types of resources that may be transformed:•materials •information •energy


•Enterprise : an entity subjectively created, with the purpose of producing and delivering goods or services to its customers•Prerequisites for the creation of an Enterprise:

Demand of resourcesHuman initiative (Entrepreneur)

Inputs Outputs

Transformation process

Feedback

Inputs:•transformed resources – those that are transformed in some way by the operation to produce the goods or services that are its outputs•transforming resources – those that are used to perform the transformation process:

staff – the people involved directly in the transformation process or supporting itfacilities – land, buildings, machines and equipment


Fig. 3: Resource transformation process

•Outputs:•Goods & services•Waste (undesirable outputs)

•Feedback loop - is used to control the operations by adjusting the inputs and transformation processes that are used to achieve desired outputs

Feedback from internal sources: testing, evaluation and continuously improving goods and services;

Feedback from external sources: intermediaries, final consumers

•Types of transformation:•manufacture – the physical creation of products •transport – the movement of materials or customers•supply – change in ownership of goods•service – the treatment of customers or the storage of materials


Transformation processes include: changes in the physical characteristics of materials or customers changes in the location of materials, information or customers changes in the ownership of materials or information storage or accommodation of materials, information or customers changes in the purpose or form of information changes in the physiological or psychological state of customers

• Operations management : the systematic direction and control of the business processes that transform resources (inputs) into finished goods or services for customers or clients (outputs).

• Enterprises operate with Universal Business Process Models, but use different Tools & Technologies


• In order to survive in an constantly changing Ecosystem, the Enterprise must adopt a holistic management approach, promoting business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology

• The Enterprise must develop its ability to manage transformation processes / business processes in order to respond swiftly and effectively to the environment challenges

• Business Process Management allows the Entrepreneurs to: Vision - strategize functions and processes Define - baseline the process or the process improvement Model - simulate the change to the process. Analyze - compare the various simulations to determine an optimal improvement Improve - select and implement the improvement Control - deploy this implementation and by use of User defined dashboards monitor

the improvement in real time and feed the performance information back into the simulation model in preparation for the next improvement iteration.

Re-engineer - revamp the processes from scratch for better results


Enterprises & Entrepreneurs inside of an Ecosystem Business Process Management core elements

Fig. 4: BPM core elements

• Strategic Alignment: the tight linkage of organizational priorities and enterprise processes, enabling continuous and effective action to improve business performance

• Governance: appropriate and transparent accountability in terms of roles and responsibilities for different levels of BPM (portfolio, program, project, and operations)

• Methods: the tools and techniques that support and enable consistent activities on all levels of BPM; methods dimension focuses on the specific needs of each process lifecycle


• Information Technology: the software, hardware, and information systems that enable and support process activities

• People: the individuals and groups who continually enhance and apply their process and process management skills and knowledge to improve business performance

• Culture: the collective values and beliefs that shape process-related attitudes and behavior to improve business performance


Technologies used in the Business Value Chain

• The boundaries of an Enterprise in the Ecosystem include: Suppliers – providing inputs (raw materials, components, finished products or

services); Customers - the users of the outputs of the transformation process; Environment - the legal, political, social and economic conditions within which

it is operating.Fig. 5 : Enterprise vs. Ecosystem

• Value Chain: the chain of activities in the transformation process;• Products pass through all activities of the chain in order, and at each activity the

product gains some value. • Eg.: SCOR Reference Model, based on five distinct management processes: Plan,

Source, Make, Deliver, and Return

• Primary activities: inbound logistics operations (production) outbound logistics marketing and sales (demand) services (maintenance)

• Support activities: administrative infrastructure management human resource management technology (R&D) procurement


SCORReferenceModel

Technologies used in the Business Value ChainFig. 6: Process Modeling on SCOR methodology

• Suppliers <-> Enterprise <-> Customers : E-commerce B2B• Tools:

External Web B2B Portal

B2B Portal Types: Company Web sites, since the target audience for many company Web sites is

other companies and their employees. Company sites can be thought of as round-the-clock mini-trade exhibits. Sometimes a company Web site serves as the entrance to an exclusive extranet available only to customers or registered site users. Some company Web sites sell directly from the site, effectively e-tailing to other businesses.

Product supply and procurement exchanges: a company purchasing agent can shop for supplies from vendors, request proposals, and, in some cases, bid to make a purchase at a desired price (e-procurement)

Specialized / vertical industry portals: provide a "subWeb" of information, product listings, discussion groups, and other features.

Brokering sites: act as an intermediary between someone wanting a product or service and potential providers.

Information sites: provide information about a particular industry for its companies and their employees. These include specialized search sites and trade and industry standards organization sites.


B2B Portal can accommodate several steps of the Order Fulfilment Process:•Product Inquiry •Sales Quote•Order Configuration•Order Booking •Order Acknowledgment / Confirmation •Invoicing / Billing •Order Sourcing / Planning •Order Changes•Delivery Confirmation•Returns


Fig. 7: RUSBIZ B2B Portal solutions – rusbiz.com

• Suppliers <-> Enterprise <-> Customers : E-banking • Online banking - Enterprises may conduct financial

transactions on a secure website operated by their retail or virtual bank, credit union

• Online platforms allow importing data into personal accounting softwareaccount aggregation across different financial institutions

• Mobile banking • Tools:

Internet ATM’s Smartphones PDAs



• Enterprise -> Purchasing• Quality assurance: prequalification of products and manufacturers,

purchasing, storage and distribution• Tools:

Elemental analyzers Physical Properties analyzers Lab automation software

• Inventory management: replenishment lead time, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory etc.

• Tools: Barcoding RFID readers Mobile asset management software Vertical lift module, storage and retrieval systems

• Enterprise -> Production• Production lines - Process welding, heat treatment, drying and curing

processes; Hydro pneumatic crimping, swaging, piercing and staking• Assembly systems - Component handling & transportation, washing and

cleaning processes; Integrated gauging, weighing, testing and measurement stations

• Packing & bottling lines - Automatic component setting and adjustment; Component packing, stacking, palletising and storage facilities

• Tools: Robot automation Vision systems using cameras and image processing software. Rotary indexing assembly machines Platens Hopper cars Bowl feeders Conveyors Forklifts


• Enterprise -> Distribution• Warehouse Management Systems - Automate

picking, packing and shipping and minimize the number of moves per order; consolidate orders to reduce transportation and shipping costs ; workforce planning and scheduling; slotting optimization

• Tools: RFID (Radio-frequency identification) readers Barcode scanners Magnetic stripes OCR (Optical character recognition) Wireless LANs Vertical lift module, storage and retrieval systems


Fig. 8: WMS Benefits – dqlogistics.com

• Enterprise <-> Customers• E-shopping• Networking• E-services• Digital marketing• Tools:

CRM systems Internet – company website, online advertising E-commerce Social media – Facebook, Twitter, Youtube, Linkedin, blogs, forums Barcoding on print ads Online reservation systems E-mail & mobile (SMS/MMS) marketing


• Enterprise <-> Business Processes• Semantics in business – need for a graphic

representation of the reality

• Business process modeling - business users are able to model their business processes, implement and execute those models, and refine the models based on as-executed data.

• Modelling techniques: Unified Modeling Language (UML) Business Process Modeling Notation (BPMN) Cognition enhanced Natural language Information

Analysis Method (CogNIAM) Extended Business Modeling Language (xBML) Event-driven process chain (EPC) ICAM DEFinition (IDEF0)


Fig. 9: Benefits of Business Process Modeling - thakursahib.com

• SCOR methodology - used to identify, measure, reorganize and improve supply chain processes

• Management processes - govern the operation of an enterprise (Corporate Governance, Strategic Management)

• Operational processes - constitute the core business and create the primary value stream (Purchasing, Manufacturing, Marketing, Sales)

• Supporting processes - support the core processes (Accounting, Recruitment, Technical support)


Fig. 10: SCOR Model Scope and Structure - supply-chain.org

• BPM Tools: Process mapping / modeling tools Modelers for software development Modeling tools embedded in BPM systems

• Capturing of process details (implementation of business rules, end-to-end process view, comprehensible to all process stakeholders)

• Simulation capabilities• Support for the Enterprise Architecture development• Report generation and document management• Repository options, version control capabilities, support for

collaborative work


Hype Cycle for Business Process Management(Gartner 2010)


• Enterprise Architecture - defines the structure and operation of an organization in order to determine how it can most effectively achieve its current and future objectives business perspective - defines the processes and standards by which the

business operates on a day-to-day basis application perspective - defines the interactions among the processes

and standards used by the organization information perspective - defines and classifies the raw data (such as

document files, databases, images, presentations, and spreadsheets) that the organization requires in order to efficiently operate

technology perspective - defines the hardware, operating systems, programming, and networking solutions used by the organization



EA Tools:Store, integrate & structure enterprise architecture informationSupport the creation, collection, analysis and presentation of EA information to meet stakeholders’ needs

Fig. 11: Enterprise Architecture Domains – simplicable.com

• Business Performance Monitoring - an essential process that helps your understand how well your business is progressing toward its goals and objectives Measure Critical Few Performance Criteria Analyze Results and Recommend Actions Implement Focused Improvement Activities

• Tools: OLAP — online analytical processing, sometimes simply called "analytics"

(based on dimensional analysis and the so-called "hypercube" or "cube") scorecarding, dashboarding and data visualization data warehouses document warehouses text mining data mining business performance optimization enterprise performance management KPI monitoring decision support systems management information systems strategic enterprise management software

Business Performance Model

• Capability Maturity Model Integration (CMMI): a process improvement approach that provides organizations with the

essential elements of effective processes, which will improve their performance.

includes identifying your organization’s process strengths and weaknesses and making process changes to turn weaknesses into

strengths.


Fig. 12: CMMI’s Five Levels of Maturity - computerworld.com

• Niche markets: groups of consumers (market segments) within the larger marketplace who have similar demographic, buying behavior, and/or lifestyle characteristics

• Niche business: Create a simple product / service Identify a niche market (address a need for a product or service that is

not being addressed by mainstream providers) Become niche’s marketplace leader Be specific, distinctive, relevant (brand recognition is a key factor) Use viral marketing, online communities and new technologies Turn into a “trendy business”

Long Tail strategy: selling small volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items


• Performance criteria: Effectiveness - the extent to which goals are accomplished Efficiency - getting the job done using the minimum resources to

produce maximum output (the value of the resources delivered to the ecosystem is greater than the value of consumed resources)

Ethics - the extent to which the business rules are followed Aesthetics – the extent to which the business processes fit into time

and space constraint (harmonious behavior in terms of rhythm and proportions)

An enterprise that processes resources meeting all the 4 criteria above can be called an EcoEnterprise


• Digital Ecosystem:• a self-organising digital infrastructure aimed at creating a digital

environment for networked organisations that supports the cooperation, the knowledge sharing, the development of open and adaptive technologies and evolutionary business models.

• the ICT-enabling technology for business ecosystems based on the dynamic and amorphous interaction among a multiplicity of organisations


Fig. 13: Digital Business Ecosystems Layers - digital-ecosystems.org

Business Performance Management = =a business management approach which looks at the business as a whole instead of on a division level, reviewing the overall business performance and determining how the business can better reach its goals

Business process = a series of logically related activities or tasks (such as planning, production, or sales) performed together to produce a defined set of results

Business Process Management = activity undertaken by businesses to identify, evaluate, and improve business processes

Business process model = a sequential representation of all functions associated with a specific business activity

Consumption = the process in which the substance of a thing is completely destroyed, used up, or incorporated or transformed into something else

Customer = a party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers

Distribution = The movement of goods and services from the source through a distribution channel, right up to the final customer, consumer, or user

Glossary

Ecosystem = a self-sustaining community comprised of interdependent organisms and their natural environment.

Entrepreneur = a person who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced

Feedback = a process in which the effect or output of an action is 'returned' (fed-back) to modify the next action

Feedback loop = a channel or pathway formed by an 'effect' returning to its 'cause,' and generating either more or less of the same effect

Inbound logistics = the activities of receiving, storing, and disseminating incoming goods or material for use

Inventory Management = activities employed in maintaining the optimum number or amount of each inventory item

Key Performance Indicators (KPIs) = Key business statistics which measure a firm's performance in critical areas

Glossary

Production = the processes and methods employed to transform tangible inputs (raw materials, semi-finished goods, or subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services

Purchasing = the activity of acquiring goods or services to accomplish the goals of an organization

Resource = an economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome

Supplier = a party that supplies goods or services to the enterpriseSupply Chain = a system of organizations, people, technology, activities,

information and resources involved in moving a product or service from supplier to customer

Warehouse Management System (WMS) = a software application which supports the daily operations of a warehouse, including inventory control, tracking, and the location of stock items

Glossary

• Anderson, Chris (2008): The Long Tail: Why the Future of Business is Selling Less of More, Hyperion

• Beimborn, D. , Joachim, N. (2010): The joint impact of service-oriented architectures and business process management on business process quality: an empirical evaluation and comparison, Springer-Verlag

• Galloway, L. (1998): Principles of Operations Management, ITP• Hammer M, Champy J (1993): Reengineering the corporation: a manifesto for

business revolution, Harper Business Press, New York• Kidd , P. T. (1994): Agile Manufacturing: Forging New Frontiers, Addison-Wesley• Laguna, M., Marklund, J. (2004): Business Process Modeling, Simulation, and Design

Pearson/Prentice Hall• McCoy, David W. (2010): Gartner, Hype Cycle for Business Process Management• Porter, Michael. E (1998): Competitive Advantage: Creating and Sustaining Superior

Performance, Free Press• Weber B, Mutschler B, Reichert M (2010): Investigating the effect of using BPM

technology: results from a controlled experiment. Sci Comput Program 75:292–310No. 2 (2004)

Further Reading