Enterprise Transformation Research Papers

Raising Questions: How Long Does It Take, How Much Does It Cost, and What Will We Have When We Are Done? What We Do Not Know About Enterprise Transformation

by Dr Stan Rifkin

2011, Journal of Enterprise Transformation

Though we speak about transformation, we know little about even the most rudimentary aspects of organizational change. This is less a gap and more of an abyss: we have practically no quantitative information on transformation, except in... more

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Principles of Enterprise Systems

by Deborah Nightingale

2009

The Massachusetts Institute of Technology (MIT) through its Lean Advancement Initiative (LAI) research team has been conducting research and facilitating enterprise-level transformations in large complex sociotechnical enterprises for... more

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A theory of enterprise transformation

by William Rouse

2005, Systems Engineering

The information technology revolution has driven the pace of competition and rapid globalization. Consequently, enterprises increasingly need to consider and pursue fundamental changetransformation—to maintain or gain competitive... more

Figure 1. Context of enterprise transformation. Output is derived from the evolving state of the enterprise. For example, revenues can be determined from the numbers of units of products or services sold and the prices of these offerings. Determining profits ‘There 1s also an internal context of transtormation— the “intraprise” in Figure 1. Work assignments are pursued via work processes and yield work products, incurring costs. Values and culture [Davenport, 1999], reward and recognition systems [Flannery, Hofrichter, and Platten, 1996; Weiss and Hartle, 1997], individual and team competencies [Katzenbach and Smith, 1993], and leadership [Kouzes and Posner, 1987; George, 2003] are woven throughout the intraprise. These fac- tors usually have strong impacts on an enterprise’s inclinations and abilities to pursue transformation.

Figure 2. Elements of enterprise system.

Figure 4. Transformation framework. [Color figure can be viewed in the online issue, which is available at www.inter- science.wiley.com.] It is important to note that successful transforma- tions in the outer band of Figure 4 are likely to require significant investments in the inner bands also. In gen- eral, any level of transformation requires consideration of all subordinate levels. Thus, for example, success- fully changing the market’s perceptions of an enter- prise’s offerings is likely to also require enhanced operational excellence to underpin the new image being sought. As another illustration, significant changes of strategies often require new processes for decision mak- ing, e.g., for R&D investments. Illustrations of transformation of offerings include UPS moving from being a package delivery company to a global supply chain management provider, IBM’s

Table I. Example Domains, Processes, States, Work, and Value

Table II. Contemporary Illustrations of Transformation The telecommunications industry has recently pro- vided several compelling stories of transformation, par- ticularly failures to transform. Perhaps the biggest story is AT&T. The company underestimated the opportuni- ties in wireless and then overpaid for McCaw Cellular to catch up and later spun the cellular business off. They attempted to get into computers via NCR and then spun it off. They overpaid for TCI and MediaOne and then

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Automotive Enterprise Transformation: Build to Order as a sustainable and innovative strategy for the automotive industry?

by Jens K Roehrich and

2013

The global financial crisis has significantly impacted the automotive industry with reduced supply of credit to industry exposing their process inefficiencies and reduced credit to consumers reducing sales. Firms are restructuring, with... more

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Value-oriented Enterprise Transformation: Design and Engineering of Value Networks

by Joao Pombinho

Modern enterprises struggle to cope with their structural complexity as artificial systems and their role as participants in value networks. Particularly, it is non-trivial to represent and align two distinct dimensions: the (dynamic)... more

The expression is an interesting composite since it combines value, the bottom-line of 1.1.6.1. Modelling the Business

Figure 2. System development and operation — types of models and rationale

Figure 3. DSR reference model, adapted from (A. R. Hevner, 2007) Cycle, presented in Figure 3. As for the Knowledge Base, the following main areas are

Figure 5. System properties: Composition, Structure, Frontier and Environment

facts. All OEPs will start with some monitoring action that can have, as a result, some

According to a predefined and coherently interconnected set of concept types (and relation types) given by | tualize reality in his or EA (e.g., a process is executed by an actor) one can concep- her mind. Such conceptualization consists in the model of reality and is of an abstract nature as it only exists in the minds of individuals. Then, using some symbolic language, also coherently maintained by EA, one can formulate representations, that is: diagrams, tables, informal descriptions, etc. which will be the EA’s boundary objects serving the purpose of perspective making — by formulation - and perspective taking — by interpretation which allows the awareness inside one’s mind, regarding a particular (part of) an organizational self. According to a predefined and coherently interconnected set of concept types (and

case, it is used for representing the relative positioning of approaches. The approaches that make up the state-of-the-art can be divided in two groups. The first group concerns the left side of the continuum, Teleology, and the second group concerns the right side, Ontology. Note that the positioning of the approaches accord- ing to this division is not entirely strict, but based on greater affinity with one of the

The value proposition of a business is the touching point with customers and defines the binding and the strength of that binding versus alternative solutions to meeting the customer’s demand. This aspect merits additional attention and specification and, in fact, a specific Value Proposition Canvas, shown in Figure 12, has recently been published by the same authors (A. Osterwalder, Pigneur, Bernarda, Smith, & Papa- dakos). The value proposition of a business is the touching point with customers and defines

unitary costs. As it will be further elaborated in section 3.6.1.1 — e3 Value Ontology, in

By focusing on chained value exchanges, an enterprise is modelled as an actor in a VN. The demand and offer market concepts are a natural consequence of the economic context of VOs. e3Value provides essential value mapping from a high-level perspective but, unlike DEMO, it lacks a holistic and formal framework for enterprise modelling, l.e., constructability. e3Value is an ontological approach for modelling networked value constellations. It is

Figure 14. Basic pattern of a DEMO transaction (J. L. G. Dietz, 2006) xood model for the coordination of dual-party interactions between social actors.

organization theorem (J. L. G. Dietz, 2006). The Distinction Axiom of | zation in 3 categories - onto the 3 human abilities: perfo computing, etc.) and form DEMO’s organization theo organization theorem (J. L HO’s Psi-theory, states we can divide all acts of an organi- logical, infological and datalogical, respectively related with rma (deciding, judging, etc.), informa (deducing, reasoning, a (storing, transmitting, etc.). This distinction is made in rem, represented in Figure 15. Representation of DEMO’s _ G. Dietz, 2006).

Figure 16. Generic System Development Process (J. L. G. Dietz, 2006) The GSDP begins with the need by a system, the Using System (US), of a supporting system, called the Object System (OS). From the white-box model of the US, one determines the functional® requirements for the OS (function design), formulated in terms of the construction and operation of the US. Next, specifications for the con- struction and operation of the OS are devised, in terms of a white-box model (con- struction design). Choices are then made with each transition from the top-level white- box model towards the implementation model. However, nothing is prescribed about the rationale behind these choices. System design decisions, either implicit or explicit, remain solely in the minds of the participants in the process. The complexity can quickly cross the limits of unsupported human handling. It may then become short of Jetermines the functional® requirements for the OS (function design), formulated in as it allows abstracting from information and data and to focus on business transac-

level regarding a certain construction. [his approach is ontological and, thus, does not include a specification of the process of system design and engineering. It does, however, introduce a very important aspect of modularity. This principle has deep implications into the structure of the service oroviding organization. In particular, the way an organization is internally structured - using fine grained services, to provide the external service, as presented in Figure 18.

This approach serves practical purposes regarding bottom-up service definition (recall this concept is used regarding teleological over ontological perspectives). As it can be seen regarding the SDC, the service is positioned at the frontier between these two worlds. In fact, the very naming of a service is often a hybrid between intention and construction, thereby reflecting the difficulty in separating these two notions during human interaction.

Figure 20. Archimate Business, Application and Technology layers In analysing the relation with D] EMO, the business layer of Archimate and the onto- logical layer of DEMO are considered. The contents of Archimate’s application and technology layers are regarded as implementation and, thus, not directly modelled in DEMO. The business layer of Archimate relates to all three B-I-D layers of DEMO, without clear distinction (Ettema & Dietz, 2009).

Figure 22. Transformations in recursive system/sub-system modelling

Figure 23. Relation between OA and OSA emerging during operation “he agreement by actors of a group on their own partial models and on their peers’ artial models is a necessary, but not sufficient, condition for reaching ooking at Figure 23, the degree of achieving OSA will correspond nowledge and agreement that Actor A has of Partial Models 2 and 3. a state of OSA. to the degree of Of course, these nodels need more than collective agreement — they must be adequate y grounded and alid models and correctly conceptualize a coherent organizational sel , constituted by set of correctly “assembled” OAs. The kinds of models we focus in include: purpose of which value model is a particular kind), function (of which service model is a articular kind), construction and implementation models. Now our main problem ad- ressed in this chapter arises: how can we formally, coherently and justifiably specify he models and representations serving as boundary objects to be the nents enabling OSA. basis for agree-

Figure 24. Value-oriented System Development conceptual layers The Solution layer is specified by modelling relations between demand and offer com- The aim in creating the VOSD framework it to provide adequate and theory-groundec

Figure 25. Value-oriented System Development Framework

Figure 26. Library example — System properties ment (white nodes). Notice the black node (author) is not part of the system.

Figure 27. Library example — Construction perspective

Figure 28. Library example — Function perspective

Definition S.10: purpose perspective of a system comprises: positioning the analysis with casual reader as the system at hand.

Figure 30. Teleology, Ontology and Affordance Theory (J. Dietz, Aveiro, Pombinho, & Hoogervorst, 2014)

Figure 31. Value Activity and Value Object patterns the end of the section. These two dualities are related by the fact they address the context of the value acto1

subject <S,> desires value object <VO,> Figure 32. Motivation behind a Value Exchange

The e3Value ontology (Figure 33) consists of the classes described in Table 4.

Figure 34. Value Construction Ontology — WOSL specification

Figure 35. e3Value and DEMO simplified Library examples representing mutual interest (each actor has at least a particular chain). VOs define the motivation for establishing relations between actors, thereby assuming a primary role. It is then by acting upon the desire that a given actor has of a VO that VNs form. The successive bonding between actors forms a chain of VOs being ex- changed as parts of a solution from a given chain’s perspective. For instance, to satisfy the desire of reading a physical book, a chain of VOs forms to deliver the rights to a particular book copy. The network is a combination of these partial perspectives (i.e., from individual actors, such as publisher, writer, stockist) and a cumulative of chains representing mutual interest (each actor has at least a particular chain). Value Object

Figure 37. Value Network Ontology — ORM model

Figure 38. Intertwining Value Trees forming a Value Network essential concepts to model such a system are presented next. As it wil be presented in detail in the following sections, a certain VN will be catego- rized as viable if every value actor is viable in the context of that configuration. For this condition to occur, it is necessary to evaluate its viability by instantiating its VE with the specifica occurrences and valuations of exchanges it takes part in. Therefore, the correct tion of the stimulus, gates and connect elements is necessary in order to in- stantiate the equations and compute the viability of the network. As it will be presented in detail in the following sections, a certain VN will be catego-

Figure 39. Relativity in system roles in successive chain elements brary) is shown in Figure 39.

the (sub) organization that implements it were created. Figure 40. Representation of the Enterprise Transformation Cycle The cycle comprises 5 stages:

reasons why they were chosen over other specifications (Wieringa, 2006). Figure 42. SDO and SDL: SD facts creation, storage and usage

Figure 43. Library — simplified value model

Figure 44. Library — original Actor Transaction Diagram

Figure 46. Library — risk of non-return at the transactional model transaction is ever done.

Figure 47. Library — value model representing the risk of non-return

Figure 48. Library — stock manager and book procurer To illustrate the concepts presented in the previous sections regarding more complete

Figure 49. Library — revised value model for differentiation It is also now interesting to note that, from the point of view of the Library’s customer. it 1S also now Interesting to note that, rom the point Of view or the Library's customer, the membership management sub-system turns out to be quite valuable in the sense that it is by becoming a member of the library that she gains the right to access the library space and enjoy a unique reading experience. If some manager would decide to eliminate the membership system part of the Library for some reason (no need to worry anymore with the risk of losing books) he could be losing essential business activity and income. By specifying all VO exchanges (in this case, membership fee is exchanged for the right to use library’s physical space) in all value chains crossing a certain organization construction we are better equipped to justify and specify organ- ization change rationale.

Figure 50. Unimedia — Remote Internet Support ATD

Figure 51. Unimedia — Value model Some clarifications resulting from aligning ontology models based on value were the explicitation of VAs. For instance, as part of getting free remote customer support, the customer must provide “eyes & hands” to get support eligibility, which is the VO. Actually this is company policy but was missing from the narrative and was identified due to the notion of economic reciprocity from e3value — the transactions must have at least an inbound value port and an outbound value port. Also, note that CS symp- tom and CS action are relevant VOs because they are intermediate results for their respective solution chains: diagnose problem and solve problem.

Figure 52. Unimedia — Generic value model of IT-enabled for-profit enterprise enterprise is presented in Figure 52. Revisiting our example, let us begin with the initial request. The fact that the investors model, the equation for an annual period is: I — Establish Problem

Returning to the example, the transactional costs of the problem solver are mostly due human operator time by each of the conditions mentioned above. The value model is original result. In our example, it is necessary to know the cost structure of the business actor from Figure 52. For simplicity, let us consider that Figure 51 is a complete model of the business actor. In this case, it turns out that the problem solver stands out by a large margin while analysing the transactional costs of the actors (part of the e3 Value model). The fact that the ontological model of the organization does not allow con- cluding this is no surprise, as it abstracts implementation. On the other hand, the value model also has an invariant perspective but it is complemented with selected implementation-level constructs. In this perspective, it is possible to include parame- ters that are implementation-level value estimates.

modem (CM), as depicted in Figure 54. In this particu with FON to ar scenario, NOS Comunicacoées (then ZON Multimédia) has partnered bundle the FON firmware into the wireless cable modems provided by NOS to its customers. NOS offered its customers free access to FON’s network in exchange for s incorporated t haring fixed internet connection bandwidth. Since the NOS cable model he firmware and was made available to the customer as part of the fixed

Figure 57. NOS Wi-Fi — As-Is - FON perspective (partial)

Figure 56. NOS Wi-Fi — As-Is - NOS perspective (partial) ucts and services.

Figure 58. NOS Wi-Fi — As-Is - Value Network perspective

A “naive” DEMO model was created from the to-be narrative, shown in Figure 59. [his transactional model, derived from the narrative, reflects high-level operational

Figure 60. NOS Wi-Fi — To-be Value Network

Figure 62. IT Demand Management outputs versus yearly inputs in the second and third years, respectively. Overall, the project backlog has faced a significant and increasing reduction, led by < major cut in project creation and implementation. We should point out that the de. crease in the number of implemented projects does not imply a strict proportional IT nvestment reduction. In this case, consolidation of initiatives played a relevant role ir his indicator. Furthermore, some decrease in IT Demand may be partially explainec by the overall economical context and the pressing need for more rigor and justificatior n its allocation — the approach we have presented serves as a means for doing just so

Figure 63. IT Demand Management process revised for Value-orientatior for justification of each component in the runtime environment and for change analysis. More importantly, the mentioned artefacts are aligned and represent a value proposal along the three perspectives — contribution, function and construction — and have sig- nificance during operation (7). This marks a significant difference from traditional business case approaches, which are used solely for decision making during early design stages. The value proposal can now effectively be used during operation of the solution for justification of each component in the runtime environment and for change analysis.

Figure 64. Towards a Generic System Innovation Process — Reverse Discovery candid questions that would otherwise be overlooked. The second involves using the rationale specification to guide scenario generation by

the solution will be presented in the next chapter.

Table 3. Mapping ISPAR and DEMO 's Transactional Pattern

Figure 45. Library — constructional model mapping to value model using VCO

tion. The resulting value model after alignment is shown in Figure 51.

The values presented are a percentage of the total of projects that were input to the

Table 10. IT Demand Management Maturity Matrix regarding Value-orientation

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Elegant Space Systems: How Do We Get There?

by Alejandro Salado

2013, IEEE Aerospace Conference 2013

Can the space industry produce elegant systems? If so, how? Space systems development has become process-centric, e.g., process creation or modification is the default response to most development and/or operations challenges when... more

Figure 2. How Elegance Emergences resulting design would be most elegant solution a team could find.

Figure 4. Domains where obstacles appear We propose evaluating non-technical obstacles and barriers to elegance based on the behavioral definition illustrated in Figure 2. Figure 4 shows where obstacles to the emergence of elegance tend to appear.

Figure 5. Layered obstacles to adopt elegance framework

Table 1. Definition of elegance according to Madni [9] Another unique aspect of Madni’s work is his definition of two complementary sub-types that provide complementary perspectives for evaluation [9]: In response to Griffin’s exhortation, Madni offers a systems engineering definition of elegance, including a) a list of attributes that elegant systems should strive for, and b) a distinctive concept missing from previous definitions - emotional connection [9]. Some authors had explored the issue of elegance in engineering systems before Griffin made his statement on elegance [6] [7] [8]. In their evaluations, simplicity is the most cited quality, followed by as-expected operation. This is in line with Madni’s assessment of previous research on defining elegance, which identifies simplicity, power, and grace as basic constructs [9].

Table 2. Summary examples on mapping dimensions

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WHEN TRANSFORMATION FAILS: TWELVE CASE STUDIES IN THE AMERICAN AUTOMOBILE INDUSTRY

by Chen liu and

The demise of 12 American automobile brands over the past century is discussed. Companies can respond to various difficulties by making decisions on their automobile offerings. These decisions are central to relationships between... more

FIGURE 2 (a) Production volumes for 12 brands plus overall production. (b) Production volumes for four cars withdrawn in the 1930s. (c) Production volumes for four cars withdrawn in the 1960s. (d) Production volumes for four cars withdrawn in the 2000s.

FIGURE 3 Four levels of explanation of failure.

TABLE 1 Factors Appearing to Have the Greatest Impact on Each Transformation Failure

TABLE 2 Intentions, Approaches, and Failures

TABLE 2 Intentions, Approaches, and Failures (Continued)

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Enterprise Transformation Roadmap

by Deborah Nightingale

2010

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Principles of enterprise systems

by Deborah Nightingale

2009, … International Symposium on Engineering Systems. MIT …

The Massachusetts Institute of Technology (MIT) through its Lean Advancement Initiative (LAI) research team has been conducting research and facilitating enterprise-level transformations in large complex sociotechnical enterprises for... more

Figure 1. Framework for Enterprise Transformation Figure | depicts some of the key issues and questions in enterprise transformation along with the methodologies and tools that aid in conceptualizing and executing transformation in an integrated holistic fashion.

Figure 2. Enterprise Architecting Framework (Nightingale and Rhodes, 2008) There is a relationship among the different views whereby architectures and the required attributes of other views as depicted in Figure 2. For example, the arrow connecting “process” and “organization” implies that the process architecture should drive or influence the organizational architecture. Additionally, “process”, “organization” and “knowledge” views should architecture. This is one of the key issues in contemporary enterprises; all too often the IT architectures are established without due consideration of t some views drive or determine the the framework suggests that the drive the information technology hese critical dimensions. Similarly, the “strategic” direction of the enterprise will determine the appropriate product architecture (e.g., modular vs integral) that best suits its needs. Converse will be instrumental in driving the capabilities needed for y, the selected product architecture growth or to achieve competitive advantage. The EA framework has been proven to be a useful structure in many different types of product and service enterprises for examining interrela ionships and synergies across the views in both understanding the current state and in architecting potential future states.

Figure 3. Enterprise Transformation Roadmap (Nightingale, Mize, Srinivasan, 2008)

Figure 4. Enterprise Strategic Analysis for Transformation

LESAT and the EA views are used in concert with ESAT to analyze and assess both the current and future states. The interrelationship of these five enterprise methodologies is depicted in Figure 5.

Numerous enterprises have utilized these enterprise systems frameworks and methodologies in analyzing, designing and transforming their enterprises. Table 3 reflects some representative case studies where the framework has been applied in various domains including aerospace, healthcare, defense acquisition, and service sector. In each case significant insights were gleaned from taking an enterprise perspective.

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Sustaining Lean Transformation Through Growth and Positive Organizational Change

by George Roth

2011, Journal of Enterprise Transformation

This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly... more

FIGURE 4 Ongoing Enhanced Performance and Change Influences the Organizational Context, Which, in turn, Reinforces Lean Methods, Growth Seeking, and Sustainment and Diffusion.

FIGURE 2 A Positive Spiral Supports Conventional Lean Change.

FIGURE 3 Growth Opportunities Preserve and Promote Lean Sustainment and Diffusion.

TABLE 3 Local improvements created by use of lean methods. relocating equipment and parsing tasks differently among group members in one work area results in better operations, those gains are often not used until changes take place in other areas. Sustaining lean activities is crucial because of the time required for improvement activities to diffuse and ul- timately produce bottom-line performance gains. Sustaining improvements creates the resources, not only time and materials savings, but also the knowl- edgeable and committed people needed to initiate and carry out additional changes.

TABLE 4 Illustrations of enhanced organizational performance.

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appel internet.docx

by Mokrane Refaa

Call for papers of conference : International colloquial/ التحول الرقمي للمؤسسات والنماذج التنبؤية على المعطيات الكبيرة The digital transformation of enterprises & the predictive models on big data La transformation numérique des... more

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Models of Complex Enterprise Networks

by Douglas Bodner

2011, Journal of Enterprise Transformation

This article describes the development of a modeling hierarchy for complex enterprise networks. Drawing on the extant modeling literature, these network models are elaborated in terms of 4 salient problem characteristics: conversions,... more

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Continuous Improvement Modeling to Support Enterprise Transformation

by Julie Stal-Le Cardinal

2012, Journal of Enterprise Transformation

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The Demographics of Change: Enterprise Characteristics and Behaviors that Influence Transformation

by Nicoleta Serban

2013, Journal of Enterprise Transformation

Tolstoy asserts that happy families are all alike, but that every unhappy family is unhappy in its own way. Successful companies achieve strong performance based on many attributes-total revenue, current profitability, stock market... more

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Engineering Enterprises for Emergent Change

by Steven Alter

This paper uses work system theory (WST) and two of its extensions to provide an integrated perspective on engineering enterprises for emergent change. This paper starts by explaining six basic assumptions and distinctions related to... more

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Company Self-Assessment of Lean Enterprise Maturity in the Aerospace Industry

by Jerome Keating

2014, Journal of Enterprise Transformation

ABSTRACT This study investigates the use of Lean Enterprise self-assessment in the aerospace industry. Senior enterprise leaders from 31 enterprises in the U.S. and U.K. aerospace industries utilized the MIT Lean Enterprise... more

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An Introduction to the Journal of Enterprise Transformation

by Deborah Nightingale

2011, Journal of Enterprise Transformation

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Enterprise Transformation

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