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Extract from:. e-Volution II – Road map for e-business implementation in Extended Enterprises. Project Review Meeting 24 May 2004, Brussels. Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002). Agenda. Management summary report

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  1. Extract from: e-Volution II – Road map for e-business implementation in Extended Enterprises Project Review Meeting 24 May 2004, Brussels Project funded by the European Community under the ‘Competitive and Sustainable Growth’ Programme (1998-2002)

  2. Agenda • Management summary report • Presentation of the e-volution methodology concept • Requirements: WP 1 • Solutions: WP 2, WP 3 • Forecast of next activities • WP 4 • WP 5 • WP 6 • Final discussion

  3. WP 3 introduction Objectives and expected results • Conception of a decision support system on the basis of information interaction and of updating the content of the information analysis • functional and non-functional specification of the system • Specification of solutions for rules-mechanisms and update routines Solution constraints • Need for accommodation of different software modules, which • incorporate different logic • serve different functionality • Heterogeneous systems and IT landscape • Collaborative application platform Solution environment • System use scenarios: • Communication of integrated modules and integration platform remotely (if not on same system) • Communication with 3rd party applications remotely

  4. Software concept (Task 3.1) Content • Assessment of state-of-the-art technologies/solutions and selection of most suitable to employ • Specification of software architecture • functional and non-functional system based on WP 1 requirements • information exchange logic between the toolkit components Technical realisation • component based structure (session management, module loading/ execution, transaction management) • Multi-tier architecture because of platform’s distributed nature (different logic applications): • 1st: loosely coupled software modules (market and organisation, any other 3rd party application employed) • 2nd: software module integration platform which encapsulates the application logic • 3rd: portal to the Web • Web-based architecture to enable the Extended Enterprise philosophy (web-based management)

  5. System architecture concept (Task 3.1) Web-services Web • Component based task execution • Ontology for communication means between different domain knowledge (3rd party applications) • Interconnecting database management system (DBMS) Extended Enterprise SME 1 Web-services enabler Organisation Module SME 2 DB Integration platform SME 3 Market Module DB DB SME n • Market module concept (Task 3.2) • Organisation module concept (Task 3.3) • Integration platform concept (Task 3.4) • Rules, mechanisms and update routines (Task 2.4)

  6. How to apply the methodology and software? State-of-the-art EE environment Generic Process model Generic e-business road mapping model (tasks, activities, methods, instruments) Training concept Software tools Business software Other software WWW etc. EE e-business strategy and road map Content service provider Data Information

  7. Phase I: IDENTIFICATION Definition The Identification phase covers the set of activities that identify the contents of the EE under consideration in terms of its boundaries and its relation to its internal and external environments. Content • EE business idea management (business mission definition, business idea formulation, business goal definition) • Development of qualitative EE business model (business model formalisation, business value model definition, business process model definition) Phase results • Specification of EE purpose and business

  8. Phase I: IDENTIFICATIONHierarchy of e-business road mapping model phase Level 1: Phase Level 2: Phase steps Level 3: Tasks Level 4: Activities

  9. Phase I: IDENTIFICATION – Test case exampleEE business idea management: business mission definition The “Mission Statement" describes concisely the Extended Enterprise and its uniqueness for outsider and its partners. All arrangements within a EE aim to fulfil the mission. The mission statement should be general but anyhow be motivated and included the following points: 1. Customer and target market 2. Product and service offer 3. Geographic market 4. Technologies 5. Economic concerns 6. Philosophy (values, etc.) 7. Image 8. Employees 9. Competition facets WINI and Veyhl are realising a pilot implementation of an intelligent B2B-network along the supply chain to better serve changing customer requirements, i.e. higher product flexibility with regard to products (higher product variety combines with short delivery times) and accompanying services (application advise, customer specific solutions), and to guarantee in the long-term competitiveness with global players in global markets. Innovative e-business solutions paired with motivated and qualified employees are the basement for sustainable economic success.

  10. Phase I: IDENTIFICATION – Test case exampleEE business idea management: business idea formulation Customer view: • More flexible customer (b2c) driven made to order procurement (higher product variants, shorter delivery times, smaller lot sizes) • b2b information sharing (planned and actual demands) • Stock incoming inspection and automated payment Supplier view: • Production made to demand • Production made to customer (b2b) order • Information about customer’s work progress Formulation and summarization of the EE-business idea through the management in a even to a management and information technical laymen understandable form Extended Enterprise view along the value chain: • Inter-enterprise optimisation of procurement process along the supply chain for harmonisation/synchronisation of the business processes • Implementing of a software platform for inter-enterprise information sharing/exchange about current demands (delivery dates, variants, amount) • Increased productivity and higher flexibility

  11. Phase I: IDENTIFICATIONOrganisational approach (Task 2.3) Basic idea • identification of all organisational aspects which have affects on the development of an e-business strategy • support of the decision making process with respect to the cooperation specialties within Extended Enterprises • Building up the basis to define strength and weaknesses • Support of distributed strategic decision making processes Revision measures • Stronger addressing of EE issues in the e-business road mapping process • In depth status analysis of EE entities • Interactions of methodological and system concept • Presentation of the added concept value

  12. given by individual strategy given by individual strategy given by individual strategy goal definition of the EE given by individual strategy given by individual strategy given by individual strategy goal prioritisation individual analysis individual analysis individual analysis alignment if value adding fits given by individual organ. given by individual organ. given by individual organ. definition on EE level individual analysis individual analysis individual analysis elimination of big differences Horizontal Extended Enterprises – different levels of information gathering 2nd tier supplier (operative partner) 1st tier supplier (operative partner) final producer (operative partner) EE level (co-ordinator) goal definition goal prioritisation process prioritisation core competence analysis eOrganisation definition eBiz abilities process prioritisation

  13. given by individual strategy goal definition of the EE given by individual strategy goal prioritisation individual analysis adjustment on each other (in SWOT) given by individual organ. definition on EE level individual analysis elimination of big differences Vertical Extended Enterprises – different levels of information gathering final producer (operative partner) EE level (co-ordinator) final producer end user • Result: • information gathering to identify strength and weaknesses on EE level are almost the same on vertical and horizontal EE organisations • There is a small difference in having a view on the single competencies of the partners within the EE: • in vertical EEsWhat kind of new products / services are possible with the competencies of each partner? • in horizontal EEsDo the core competencies of each partner in the single stage of the value chain fit to the needed task/added value for the EE? goal definition goal prioritisation process prioritisation core competence analysis eOrganisation definition eBiz abilities process prioritisation • Ergo: • individual competence analysis could be important for the SWOT – no direct impact on OM on EE level • core competence alignment in horizontal EEs is important for OM

  14. Phase I: IDENTIFICATIONOrganisational approach (Task 3.3) Scientific approach • Case study and literature research related to e-business • e-business related EE organisation analysis research • Knowledge management within strategic processes Technical approach • Web-based application based on JSP, JDL, etc. • Open architecture by providing and supporting all common interfaces (XML, text, CSV, etc.) • Use of common DB which are free of use for SMEs • Common interfaces between the modules of e-volution tool kit Results • Methodology and software for strategic decision making processes in distributed organisations (EE) • Entity positioning and adjustment in EE architecture • e-business related EE strengths and weaknesses

  15. Phase I: IDENTIFICATIONOrganisation module (Task 3.3) Main application functionalities • Collaborative business goal definition, prioritisation, e-business process prioritisation • Collaborative core competence definition • Entity based e-organisation analysis and EE based comparison • Entity based e-ability analysis and EE based comparison • Reporting Other technical features and Unique Selling Propositions (USP) • Adaptability • Web based • Knowledge management • User friendliness Application implementation requirements • Stand-alone or server-based solution • PC (user), Server (administrator) • Internet/intranet access, HTML-Browser

  16. Phase I: IDENTIFICATIONOrganisation Module – snapshots of entire functionality Step 7: strengths/weakness-definition Step 5: e-organisation Step 1: goal definition Step 3: process prioritisation Step 6: e-abilities Step 2: goal prioritization Step 4: core competence definition

  17. Reising Reising Phase I: IDENTIFICATIONEE business idea management: business goal definition and specification • each partner will be interviewed, which goals they aim to achieve by participating the EE • WINI and Veyhl goals are primarily • flexibility goals • cost goals • time goals • aggregation of all answers by the coordinator and development of closed questions to quantify the goals • WINI and Veyhl quantified the goals • they where final defined in a meeting

  18. 18 3 13 10 18 3 Phase I: IDENTIFICATIONEE business idea management: business goal and process prioritization • goal prioritization bases on the goal definition made in the previous step • goal prioritization is only made on EE level by the votes of each individual partner • it does not replace the final discussion and has to be seen as decision preparation • WINI and Veyhl specified the goals flexibility, costs and Quality • Each partner gives his own vote • the aggregation shows that flexibility has the highest priority heading time, cost and quality goals • based on the goals prioritization the processes will be defined which have the strongest benefits on these goals • Each partner gives his own vote • the aggregation shows: • highest priority for human resources (18) most important factor for successful realisation • manufacturing (18)  highest impact • procurement (13) and logistics (10) also strongly concerned

  19. Phase II: CONCEPTION Definition Conception is the set of activities that are needed to develop the e-business concept (qualitative EE business model). The Conception phase covers the set of activities that are needed to develop the e-business concept for the EE and analyses its effects on organisation, processes and resources. Content • EE external analysis: market analysis, trend analysis -> opportunity and threat (OT) definition • EE internal analysis: human capability analysis, competence analysis, e-organisation analysis, IT-architecture analysis -> strength and weakness (SW) definition • EE e-business strategy definition: e-business goal definition (functional) -> e-business strategy and roadmap implementation concept development Phase results • E-business strategy, implementation concept and roadmap

  20. Phase II: CONCEPTIONDetailed e-business road mapping model phase Level 1: Phase Level 2: Phase steps Level 3: Tasks Level 4: Activities

  21. Phase II: CONCEPTIONMarket approach (Task 2.2) Basic idea • Identification of the main market and environmental (laws, regulations, etc.) aspects which influence the e-business strategy • Market Module 1: • specification of a procedure that drives the manager (user) towards strategic opportunity-threat analysis for preliminary identification of a set of consistent (with the general business process) e-solutions • Market Module 2: • subsequent detailed market analysis focused on main envisaged e-solutions

  22. Company 4 Company 2 Company 3 Company 1 Competence X Competence Y Phase II: CONCEPTIONMarket approach (Task 3.2) Scientific approach • Resource competence based approach to devise the EE • Market analysis concepts and methods (segmentation, matrix portfolio, questionnaire assessment, trend analysis, etc.) adapted to EE peculiarities • advanced usage of Neural Networks • Market data knowledge management Innovative aspects • Concurrent and collaborative external analysis enabled by software distributed architecture • Clustering technique for automated entity profiling • Information Selector (IS) for efficient semiautomatic data retrieval • Neural Network based trend assessment

  23. Phase II: CONCEPTIONMarket approach (Task 3.2) Technical approach • UML, use case diagram, class and activity diagrams specification • Standardised modular components based on J2EE specification • Web based platform with free RDBMS • Internet/intranet access via browser Main application functionalities • Analysis and assessment of the influence of ’e’ on the business, market and value chain • Collaborative identification of the EE most important product/market areas with the greatest potential for e-business employment • Competitor and purchasing criteria analysis with subsequent preliminary comparison • Reporting, advanced chart displays • Central user administration (authentication, access control, etc.)

  24. Phase II: CONCEPTIONExternal analysis: Trend analysis E-sales trend filtering analysis E-sales trend formatting analysis

  25. Phase II: CONCEPTIONExternal analysis: Product and market assessment / opportunity-threat-definition Opportunity-Threat analysis table Product/Market areas identification based on attractiveness and EE competitive position submission to the integration module

  26. Phase II: CONCEPTIONInternal analysis: EE IT-architecture analysis (e-business organisation positioning) Recommendations: Degree of integration: Yes 0-2 times: it is possible to organise the e-activities independently from the core business, there is a low integration degree needed! Degree of coordination: Yes 3-5 times: The e-business activities should base on the same technical and organisational basis, because the coordination between them is high! Central Coordination: The leading partner (or the partner with the highest given competence) should combine all e-activities. This centralisation increases special know-how and the common platform, which all partner are using. • definition on EE level • each Partner gives his vote from his point of view on the EE, votes will be aggregated • recommendations will be given with regard to how to organise the e-business activities • result WINI-Veyhl: central coordination of their planned e-business activities

  27. Phase II: CONCEPTIONInternal analysis: EE IT-architecture analysis (e-business abilities comparison on individual and EE level) individual profile of WINI individual profile of Veyhl comparison of the profiles by the coordinator of the EE • WINI and Veyhl do have almost the same profile • deviation 1: ICT penetration level • VeyhI uses additionally to informix also oracle db: when defining single projects/activities, coordinator has to consider possible constraints – right now it has no direct impact • deviation 2: Web Site Languages • has no impact, because the identified e-business relevant processes will not be affected by them

  28. Phase II: CONCEPTIONInternal analysis: Strengths/weakness-definition • based on the gathered information on individual and EE level in the OM, the coordinator defines potential strengths and weaknesses on EE level • these are potential facts because of the restricted view only on internal facts • these facts become real strengths or weaknesses in the direct comparison between internal and external facts • the defined potential strengths and weaknesses are submitted to the integration module for SWOT-Analysis submission to the integration module (csv-format)

  29. Phase II: CONCEPTIONMethodological integration approach (Task 2.5) Basic idea • Realisation of backbone concept; synthesis of opportunities-threats-strengths-weaknesses and EE e-business strategy and roadmap development Scientific approach • Design of e-business road mapping model • Conceptual integration of the detailed thematic approaches into the e-business road mapping model • Formalisation of e-business strategy development process (elaboration, assessment, formulation)

  30. Phase II: CONCEPTIONMethodological integration approach (Task 2.5) Technical realisation • Methodology modelling • Model framework definition: syntax, semantic, conventions • Work flow modelling • ARIS toolset • Sustainability • Standardised model formats for optional transfer into other systems, e.g. Lotus Notes or SAP Results • Generic e-business road mapping model for EE

  31. Strengths Weaknesses ICT-strategy definition Efficiency New value creation List of strengths (1 .. n) List of weaknesses (1 .. n) high Operational e-business excellence Breakthrough e-business strategies Don’t move approach First mover approach (if verified cost-benefit-risk-relation), else Fast follower approach Customised/ Not available Mission critical Opportunities S/O strategies and goals W/O strategies and goals Business criticality Technology List of opportunities (1 .. n) e-business support processes Evolutionary e-business experimentation First mover, Fast Follower, Early adopter approach First mover approach List (1 .. n): Consolidation of strengths to realise opportunities List (1 .. n): Overcoming of weak-nesses by realisation of opportunities Tactical Standard/ available Customer perspective […] process perspective Financial perspective Innovation, learning and growth perspective low [Goals] [Goals] [Goals] [Goals] [Goal measures] [Goal measures] [Goal measures] [Goal measures] [Goal targets] [Goal targets] [Goal targets] [Goal targets] [Goal priority] [Goal priority] [Goal priority] [Goal priority] [Initiatives] [Initiatives] [Initiatives] [Initiatives] S/T strategies and goals W/T strategies and goals Benefits Operative Strategic Threats Process innovation low high List (1 .. n): Consolidation of strengths to avoid threats List (1 .. n): Overcoming of weaknesses and avoidance of threats List of threats (1 .. n) Phase II: CONCEPTIONEE e-business strategy definition: e-business strategy development (elaboration, assessment, formulation) Implementation strategy definition SWOT-based e-strategy definition Use of chances by strengths Reduce weaknesses or change into strengths Minimise or avoid threats Implementation measurement definition Implementation roadmap definition Realisation BSC definition e-process reengineering of external business processes External e-business New business processes organisation ICT sophistication Convergence Internal e-business e-process reengineering of internal business processes Time Project/measure

  32. Phase II: CONCEPTIONSystem integration approach (Task 3.4) Basic idea • Central project and data management (integration) platform Scientific approach • Quantification of identified strengths and weaknesses • V = Importance x Competitiveness x Potential x Sustainability x Robustness • Calculation of probabilities of exploitation of opportunities and threats (Bayesian Model) • Exploitation of “Common external factors = Common opportunities and common threats” based on the “joint factors = joint strengths an joint weaknesses” • most appreciated action is strategy to follow • Definition of milestones (entity, time, activity) • e-business roadmap visualisation

  33. Phase II: CONCEPTIONSystem integration approach (Task 3.4) System logic • Date upload from Market and Organisation modules • Data storage in local database • Strategy Positioning (output: strategy positioning results) • Strategy formulation • Value organisation Information • Calculation of exploitation probabilities of external information • Combination of market and organisation Information • Strategy evaluation and selection • Roadmap formulation

  34. Phase II: CONCEPTIONSystem integration approach (Task 3.4) • Data import and integration from other software modules (e.g. Market and Organisation modules, ERP-systems) via Business Entities Editor (BEE) • Documentation of mission statement • Input data calculation and valuation of intangible qualitative information • SWOT-analysis • Strategy establishment, evaluation, selection • Roadmap definition Main application functionalities Other technical features and Unique Selling Propositions (USP) • Interoperability provided by ontologies (communication of information) • Methodology of assessing qualitative information (Andriessen and group in KPMG (http://www.weightlesswealth.com) • Methodology of calculating the exploitation probability factor of market information (Expected Utility Action-matrix : Bayesian method) Application implementation requirements • Microsoft Database Engine MSDE 2000 • Windows 2000, XP • .Net Environment (in case of BEE employment)

  35. Phase II: CONCEPTIONTool kit – snapshots of functionalities 4. Strategy development 1. Value qualitative data 3. Combination of market and organisation information 2. Calculate market exploitability 5. Roadmap formulation

  36. Post road mapping phasesPhase III: REQUIREMENTS Definition The Requirement phase covers the activities needed to develop descriptions of operational requirements of the EE and the collection of all their functional, behavioural, informational and capability needs, no matter whether these will be satisfied by humans or IT. Content • EE requirement analysis (organisation, processes, resources -> requirement specification) • Company requirement analysis (organisation, processes, resources -> requirement specification) Phase results • specification of IT architecture (systems and software)

  37. Post road mapping phasesPhase III: REQUIREMENTS - Development of business object instance model (test case example) Resources:Business Model Designer (prototype) for business architecture specification

  38. Post road mapping phasesPhase III: REQUIREMENTS - Business process modelling (test case example) Work flow inside WINI „Procurement fractal” entity Work flow inside WINI „Assembly fractal“ entity

  39. Post road mapping phasesPhase IV: DESIGN Definition The Design phase includes activities that support the detailed specification of the selected e-business services. Design affects EE organisation entities, products and process with all of its components that satisfy the identified requirements. Content • EE entity design (human and e-enabled tasks): organisation, processes, resources • risk analysis • (request for proposals: software specifications, system architecture, etc.) Phase results • implementation plan • system architecture, application software and interface specification • test plans, quality factors, functional e-business goals

  40. Post road mapping phasesPhase IV: DESIGN – Tools for organisation, process and resource specification • Resources: Data Model Designer (prototype) creates running software applications with database independent persistence and independently from the operative system • little programming efforts • cost effective design of individual software solutions XML Config File (D)

  41. Post road mapping phasesPhase IV: DESIGN – Tools for forms and GIU design • Resources: Forms designer (prototype) enables multi-lingual software realisation of application and HTML-Front/Ends at the same time • cost effective design of individual software solutions XML Config File (F)

  42. Summary of technical work progress and reached results Results and innovations • Framework for formalisation of management processes • Combines workshop (creative) and software tool (analytic) based approach • SME targeting Decision Support Systems • Distributed application environment • Component-based system architecture • Stand-alone plus integration • Business Process Execution Language (BPEL) like specification for construction of execution routines • Use of ontologies for system communication means execution (web-services) • Application of quantification methods and mathematical models (Bayesian model) on qualitative SWOT analysis

  43. Summary of technical work progress and reached results Challenges and risks • e-business road mapping model • design: generalisation, abstraction • maintenance and content management: update, tuning, advancement • (Semi-)automated analysis processes may limit the traditional way of managers creative decision making • Not only one BPEL version available, different versions of Web Services Description Language (WSDL) • Further steps should be based on the maturity of the BPEL specification in order to be fully incorporated into the e-Volution software family

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