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Modeling Business Strategy: A meta-model of Strategy Maps and Balance Scorecards


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Paper presented at the 5th IEEE International Conference on Research Challenges in Information Science (RCIS2011)

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Modeling Business Strategy: A meta-model of Strategy Maps and Balance Scorecards

  1. 1. Modeling Business Strategy A meta-model of Strategy Maps and Balanced Scorecards Constantinos Giannoulis Michael Petit Jelena Zdravkovic
  2. 2. Overview <ul><li>Business-IT alignment; links to RE </li></ul><ul><li>Problem? </li></ul><ul><li>Our Goal & Purpose; towards a Unified Business Strategy Meta-Model (UBSMM) </li></ul><ul><li>Where we are today </li></ul><ul><li>Future work </li></ul>
  3. 3. Business-IT Alignment <ul><li>Business-IT Alignment </li></ul><ul><li>Business strategy & IT strategy </li></ul><ul><li>Fit between business needs and IS priorities </li></ul><ul><li>Long time commitment & planning with impact on IT planning </li></ul><ul><li>focused use of IT: improved performance </li></ul><ul><li>Business Strategy links to RE </li></ul><ul><li>Context </li></ul><ul><li>Rationale for decisions </li></ul><ul><li>Resources </li></ul><ul><li>Decision making </li></ul>
  4. 4. Problem? System Development RE (Early/Late) Enterprise Models Business Strategy Goal Models Business-IT Alignment INSTAL SMBSC Value Configuration Blue Ocean B-SCP GQM <ul><li>Alignment methods are rooted in IS and not Strategic Management </li></ul><ul><ul><li>Mechanistic & unrealistic </li></ul></ul><ul><ul><li>Dynamic business vs static IT </li></ul></ul><ul><li>Only some RE methods are partially aligned to BS via direct semi-formal mappings (e.g. i* and Strategy Maps) </li></ul><ul><li>No use of distinct BS methods but only liberal use </li></ul><ul><li>Business strategy is unknown or unclear/ambiguous </li></ul>
  5. 5. Our Goal <ul><li>Build a unified meta-model for business strategy models (UBSM M ) to support existing business strategy approaches towards Business IT alignment; leverag e from goal modeling concepts and constructs (GORE, BMM, etc.) </li></ul><ul><li>Analyz e the capabilities for linking UBSM M with languages for modeling system requirements to support alignment </li></ul>
  6. 6. Our Goal <ul><li>UBSMM: A meta-model with a pivot function that allows business strategy to be linked to enterprise models </li></ul><ul><li>Formalized with defined Semantics </li></ul><ul><li>Mapping between Business Strategy Definition methods & Goal Modeling techniques </li></ul>System Development RE (Early/Late) Enterprise Models Business Strategy Goal Models Business-IT Alignment INSTAL SMBSC B-SCP GQM Value Configuration Blue Ocean UBSMM
  7. 7. Towards UBSMM <ul><li>Business Strategy Meta-Models (Strategy Maps & Balance Scorecards, Value Configurations, Blue Ocean, etc.) </li></ul><ul><li>Formalization (OWL & Telos) </li></ul><ul><li>Concept Unification: UBSMM </li></ul><ul><li>Support alignment methods </li></ul><ul><li>Mappings to goal modeling notations (i*, KAOS, Tropos, etc.) </li></ul><ul><li>Validation via test cases </li></ul><ul><ul><li>How does UBSM support/improve alignments methods?) </li></ul></ul><ul><ul><li>Mapping between strategy and development </li></ul></ul>
  8. 8. Where we are today <ul><li>Business Strategy formalization </li></ul><ul><li>Strategy Maps and Balanced Scorecards </li></ul><ul><ul><li>To UML meta-model </li></ul></ul><ul><ul><li>To OWL & Telos </li></ul></ul><ul><li>provides: </li></ul><ul><li>consistency </li></ul><ul><li>correct instantiation </li></ul><ul><li>the process of formalizing raises unseen questions </li></ul><ul><li>properties & constraints are discovered </li></ul><ul><li>clear & unambiguous abstract syntax of our meta-model(s) </li></ul><ul><li>additional operations (model integration) </li></ul><ul><li>difusion and reusability </li></ul>
  9. 9. <ul><li>Strategy Maps </li></ul><ul><li>Four organizational perspectives of Balanced Scorecards (BSC): financial, customer, internal, learning and growth </li></ul><ul><li>Both external & internal (all business activities) </li></ul><ul><li>Structure: Cause-effect links/assumptions </li></ul><ul><li>Build top-down (causality is bottom-up) </li></ul><ul><li>Communicate direction and priorities </li></ul><ul><li>Balanced Scorecards </li></ul><ul><li>Objectives </li></ul><ul><li>Measures, </li></ul><ul><li>Targets, </li></ul><ul><li>Actions </li></ul>SMBSC
  10. 10. SMBSC
  11. 11. SMBSC <ul><li>Modeling Strategy Maps </li></ul><ul><ul><li>the Strategy Map template provides the main concepts </li></ul></ul><ul><ul><li>Applications from literature provide conceptual variations emboddied through constrains </li></ul></ul><ul><ul><li>Cardinality restrictions between classes both from the template and literature </li></ul></ul>
  12. 12. The SMBSC Meta-model
  13. 13. The SMBSC Meta-model <ul><li>Includes all elements of Strategy Maps and BSC </li></ul><ul><li>Generalizes some elements for applicability (Groups) </li></ul><ul><li>Introduces explicitely user defined groups and perspetives </li></ul><ul><li>Separates classes and instances (application) </li></ul><ul><li>Constraints expressed in a structured manner </li></ul>
  14. 14. SMBSC Meta-model (e.g. constraints) The Goal class <ul><li>Every goal included in a theme is also included in the strategy map for which the theme is defined. </li></ul><ul><li>For goals in the financial perspective no initiatives are launched because targets capture the results of initiatives from the other perspectives. </li></ul><ul><li>Every goal must influence another goal, except in the financial perspective where a top-goal may exist. </li></ul><ul><li>A goal belonging to a theme must belong to the same strategy map in which this theme belongs to . </li></ul><ul><li>A goal belonging to either the Customer Perspective or the Internal perspective may influence another goal, which belongs either on the same perspective or the one above (Top-down: financial, customer, internal, learning & growth). Whereas a goal belonging to the Learning & Growth perspective can only be influenced by another goal belonging into the same perspective (there exists no perspective below) and similarly, a goal belonging to the financial perspective can only influence a goal belonging in the same perspective (there exists no perspective above). </li></ul><ul><li>… </li></ul>
  15. 15. Formalization <ul><li>Telos </li></ul><ul><li>Expressiveness of advanced constraints </li></ul><ul><li>Model checking supported by tools (conceptbase) </li></ul><ul><li>BUT cannot reason about the model and integrate others </li></ul><ul><li>OWL </li></ul><ul><li>Supports integration </li></ul><ul><li>Establish rules for mappings (OMG) </li></ul><ul><li>Advanced reasoning </li></ul><ul><li>Widely accepted and used </li></ul><ul><li>BUT derivation is not supported </li></ul>
  16. 16. SMBSC in OWL
  17. 17. SMSBC in OWL (ABB case)
  18. 18. SMBSC in Telos
  19. 19. SMBSC in Telos (ABB case)
  20. 20. Future Work <ul><li>Formalize more business strategy methods </li></ul><ul><li>Unify the formal models for UBSMM </li></ul><ul><li>Integrate more business strategy methods </li></ul><ul><li>Validate UBSMM with cases </li></ul><ul><li>Map and evaluate how UBSMM can support/complement alignemnt methods </li></ul><ul><li>Map and evaluate how goal modeling languages (i*, KAOS, BMM, etc.) can express business strategy using UBSMM </li></ul>
  21. 21. Questions? <ul><li>Constantinos Giannoulis </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li> / </li></ul></ul><ul><li>Jelena Zdravkovic </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>Micha ë l Petit </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li> </li></ul></ul>