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Using a Fractal Enterprise Model for Business Model Innovation

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Using a Fractal Enterprise Model (FEM)
for Business Model Innovation
- a research-in-progress paper
Ilia Bider and Erik Pe...

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The Fractal Enterprise Model (FEM)
• The fractal enterprise model (FEM) starts with a process and presents
assets (resourc...
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1 of 26

Using a Fractal Enterprise Model for Business Model Innovation

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In their previous work, the authors have developed a new kind of enterprise model, called fractal enterprise model, that connects enterprise processes via as-sets used for running these processes. One of the possible usages of this model is facilitating innovation, more exactly, changing or extending a business model used in the enterprise. This research-in-progress paper presents the idea of how such facilitation could be arranged, and lists the problems that need to be solved in order to convert the idea into a practical methodology. The discussion is based on a hypothetical example.

In their previous work, the authors have developed a new kind of enterprise model, called fractal enterprise model, that connects enterprise processes via as-sets used for running these processes. One of the possible usages of this model is facilitating innovation, more exactly, changing or extending a business model used in the enterprise. This research-in-progress paper presents the idea of how such facilitation could be arranged, and lists the problems that need to be solved in order to convert the idea into a practical methodology. The discussion is based on a hypothetical example.

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Using a Fractal Enterprise Model for Business Model Innovation

  1. 1. Using a Fractal Enterprise Model (FEM) for Business Model Innovation - a research-in-progress paper Ilia Bider and Erik Perjons Department of Computer and Systems Sciences Stockholm University [ilia|perjons]@dsv.su.se BPMDS’17 Working Conference Business process modeling, development and support
  2. 2. The Fractal Enterprise Model (FEM) • The fractal enterprise model (FEM) starts with a process and presents assets (resources) needed for running this process ….
  3. 3. The Fractal Enterprise Model (FEM) • … and for each asset, FEM presents processes for how to aquire, maintain or retire the asset
  4. 4. The Fractal Enterprise Model (FEM) • … and for each asset, FEM presents processes for how to aquire, maintain or retire the asset
  5. 5. The Fractal Enterprise Model (FEM) • … and for each asset, FEM presents processes for how to aquire, maintain or retire the assets
  6. 6. Building a FEM - using patterns • Process-to-asset patterns/archetypes
  7. 7. Building a FEM - using patterns • Asset-to-process pattern/archetype
  8. 8. Building a FEM - using patterns • Applying the patterns will create a FEM – and the final result will be an hierarchy of processes and assets
  9. 9. The Fractal Enterprise Model (FEM) FEM can be used for: • finding “invisible” processes that exists or should exist in the enterprise • understanding how certain assets and processes are used in different parts of the enterprise • identifying capabilities of an enterprise • planning business model transformation • …
  10. 10. The Fractal Enterprise Model (FEM) FEM can be used for: • finding “invisible” processes that exists or should exist in the enterprise • understanding how certain resources and processes are used in different parts of the enterprise • identifying capabilities of an enterprise • planning business model transformation • …
  11. 11. An approach for business model transformation The approach consist of two steps: 1) Generating hypotheses 2) Assessing promising hypotheses
  12. 12. Demonstration - book-sales-on-the-web business transformation (inspired by Amazon case)
  13. 13. An approach for business model transformation The approach consist of two steps: 1) Generating hypotheses 2) Assessing promising hypotheses
  14. 14. An approach for business model transformation
  15. 15. An approach for business model transformation
  16. 16. An approach for business model transformation
  17. 17. An approach for business model transformation
  18. 18. An approach for business model transformation The approach consist of two steps: 1) Generating hypotheses 2) Assessing promising hypotheses
  19. 19. Decision makers are often book readers An approach for business model transformation
  20. 20. One platform vs many platforms for customers An approach for business model transformation
  21. 21. More staff might be required An approach for business model transformation
  22. 22. Decision makers are often book readers One platform vs many platforms for custumers More staff might be required An approach for business model transformation
  23. 23. The challenge addressed – how to extend or change an existing business model
  24. 24. Next step • Develop transformation pattern based on FEM • Using an infrastructural assets for building a service for external customer • From designer to manufacturer • From manufacturer to designer • From educator to consultat • …. • Develop qualitative and quantitative measures • Supporting the analysis when comparing nodes
  25. 25. Earlier publications of FEM • Bider, I., Perjons, E., Elias, M., & Johannesson, P. (2016). A fractal enterprise model and its application for business development. Software & Systems Modeling, 1-27. • Josefsson, M., Widman, K. &Bider, I. (2015). Using the Process-Assets Framework for Creating a Holistic View over Process Documentation. In : Enterprise, Business- Process and Information Systems Modeling, LNBIP, Vol. 214. Springer, Stockholm (2015) 169-183, • Henkel, M., Bider, I. & Perjons, E. (2014, June). Capability-based business model transformation. In International Conference on Advanced Information Systems Engineering (pp. 88-99). Springer International Publishing. • Elias, M., Bider, I. & Johannesson, P. (2014). Using Fractal Process-Asset Model to Design the Process Architecture of an Enterprise: Experience Report. In BPMDS 2014 and EMMSAD 2014. LNBIP 175, Thesalonniki, Greece. Springer, pp.287-301. • Bider, I., Perjons, E. & Elias, M. (2012). Untangling the Dynamic Structure of an Enterprise by Applying a Fractal Approach to Business Processes. In Proceedings of PoEM 2012. LNBIP 134, Oslo, Norway. Springer, pp.61-76.

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