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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.
E. Asnina "Essentiality of Changes
in Business Models"

November 5, 2013

2
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
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








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






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
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




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


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

  • 1. Institute of Applied Computer Systems Riga Technical University, Latvia November 5, 2013 BSC’ 2013 Riga, Latvia
  • 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. 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. 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.       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.    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. 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.   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.  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