'Essentiality of Changes of Business Models by Erika Asnina, LV

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'Essentiality of Changes of Business Models by Erika Asnina, LV

  1. 1. Institute of Applied Computer Systems Riga Technical University, Latvia November 5, 2013 BSC’ 2013 Riga, Latvia
  2. 2.  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. E. Asnina "Essentiality of Changes in Business Models" November 5, 2013 2
  3. 3. A “real-world” business with multiple goals, visions, strategies, processes, objects, rules and events Business processes supported by information systems and ICT E. Asnina "Essentiality of Changes in Business Models" November 5, 2013 3
  4. 4. 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. E. Asnina "Essentiality of Changes in Business Models" November 5, 2013 4
  5. 5.       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. E. Asnina "Essentiality of Changes in Business Models" November 5, 2013 5
  6. 6.    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)] E. Asnina "Essentiality of Changes in Business Models" November 5, 2013 6
  7. 7. Competitive Forces 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. Business Strategy Business Process and Data Model Business process C us s Elements to be changed C D me r usto nd Big or Medium Importance Business process D Big or Medium Importance Small Importance Social Environment e ma es es u se Business process B us Business process A u se s Big or Medium Importance Lega l En v ironm ent Business Organization Information and Communication Technology E. Asnina "Essentiality of Changes in Business Models" Technological Changes November 5, 2013 7
  8. 8.   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. E. Asnina "Essentiality of Changes in Business Models" November 5, 2013 8
  9. 9.  The research has been conducted within the framework of project No. 1.10 “Competence Centre for Information and Communication Technologies”. E. Asnina "Essentiality of Changes in Business Models" November 5, 2013 9

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