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TOWARD A MULTI-
DISCIPLINARY BUSINESS
ARCHITECTURE REFERENCE
MODEL FOR SMES
Seyran Gh. Dehbokry
University Technology, Sydney (UTS)
ECIS 2015
Introduction
)
• SMEs as key drivers of a nation’s economic growth competing in open,
global, complex and growing ecosystem
• Their inherent constraints drive the need for a simple strategic
management tool to
• orchestrate and integrate resource/capabilities
• adopt/shape their chosen ecosystem
• meet the emergent market needs
• B/EA being applied to different organizational domains,
• product (Ulrich, 1995)
• human resource (Lepak and Snell, 1999)
• enterprise/IT (TheOpenGroup, 2009, Kosanke et al., 1999, AMICE,
1993, Williams, 1998, Iacob et al., 2012, Wisnosky and Vogel, 2004)
• cooperation and collaboration (Fjeldstad et al., 2012, Gulati and
Singh, 1998)
• enterprise integration (Beeckman, 1989, Force, 1999, Williams,
1998)
• Current frameworks tends to orientate to large organizations and are
over complex, require substantial investments
Research Aim
To develop a comprehensive and simple capability-based
Business Architecture Reference Model (BARM) that allows
SMEs to:
• create value for customer/partner and themselves,
e.g. through integrating, orchestrating and
managing outside-in and inside-out
capabilities/resources.
• shape or evolve with their chosen ecosystem
Conceptual Foundation of BARM
TheOpenGroup, 2009
Zachman, 2007
Guild, 2014
OMG, 2004
Schilling,
2000
Pil and Cohen, 2006
Grant, 1991
Teece, 2007
Maglio, 2008
Volberda and Lewin, 2003
Donaldson, 2001
Osterwalder, 2004Magretta, 2002
Toward a Business Architecture Reference Model
• Easy to understand with aim to involve SME’s
owner/executives
• A capability-based strategic tool to
o orchestrate firm’s capabilities
o initiate incremental changes
o outline fundamental relationships between business’s socio-technical
components, internally as well as within ecosystem
Toward a Business Architecture Reference Model
• Five main components and 12 interrelated sub-
components to reflect SME’s requirements in each
architecture view
• Mapped with firm’s Business Model:
o ensure strategic alignment of BM design to business strategy and its
internal and external fitness
• Mapped with ecosystem (guided by architecture
principles, co-evolutionary, contingency, DC
theories and service science):
o Exert the environmental dynamisms and competitive pressure on business
components
o To sense, leverage and integrate external opportunities.
Business Architecture Reference
Model (BARM)
Toward a Business Architecture Reference Model
Research Method and Evaluation
• Design science research method (R Hevner et al.,
2004)
• Preliminary validated by interview of its field
application (March and Smith, 1995) (Interviews
with industry experts and SME executives)
• 60 to 90 minutes long interviews between E/BA
experts and SME’s executives as well as online
interview through social media
• aimed at investigating SME’s specific architectural requirements and
examining how the interviewees and their companies plan to execute
strategies
• presenting the reference model as well as questions on evaluating
effectiveness, completeness, simplicity and understandability for SMEs
Research Evaluation (Results)
Question Domain
Evaluation Questions
Interview Out Come
SME’s Manager and E/BA Experts Statements On First Part
Questions on SME’s requirements for BA-RM as
a strategic tool
How do you/SMEs plan to align business
strategies to operational level?
“… I don't know how many start-ups I've seen where they have no clue what
capabilities they need.”
“…Our (a SME’s) systems and business structures are defined by experiences and
based on new projects as well as the government policies.”
What are the BA-RM’s attributes that which
make it applicable to SMEs?
“As you describe, SMEs often don't have the resources/time to be as formal as some
larger organisations. But at the same time specific industry & associated expectations
& regulations/compliance requirements should affect/influence the model all
practice”
“The level of BA practice can vary quite significantly. So the model needs to be
comprehensive and adjustable for e.g. a business with less than ten people making 2
million a year and a local data centre turning over 10 million a year with 20 or so”
“… Next comes the problem of how BA can help us (SME) deal with "changing
environments". That one is tricky.”
How does an architecture model help
you/SMEs to create/sustain competitive
advantages within dynamic environments?
“…Having a set of tools with some guidance can benefit even the smallest of
businesses as it helps define what needs to get done.”
“…A business architect with BA tools can go a long way to helping structure the
company, set up the organization and get everyone on the same page in terms of
process, roles and services.”
Question Domain Pre-Evaluate Questions
Interview Outcome
Expert1 Expert2 Expert3 Expert4 SME1 SME2 SME3
Questions on framework completeness and
fidelity with real world and applicability in
SMEs
In your opinion is the proposed model,
components, relationships and related terms
simple and understandable for SMEs?
N P N P N P P
How could such a model help a SME
define/execute strategy related to business,
market and collaborative network?
P N P P P P P
How could such a model help SME’s manager
to structure, manage ICTs and associated
capabilities?
P P P N P N P
How could this model enables SMEs to react in
dynamic environment (Changes in ICT, market
and collaborative network )
E N P P P N P
How such a model could serves you/SMEs as
the architectural guide for integrating
business/model components?
P P P P P P P
In your opinion what elements are missing? P N Q P N Q P P P
In your opinion what elements should not
belong to the model?
P P P P P P P
Indicators; P: Positive answers N: Negative answers E: Neutral answers Q: Quote
Research Evaluation (Results)
• Impression on BARM simplicity and understandability for
SMEs:
• An EA Expert: “the fact the you have chosen the business scenario in an
iterative architecture process development is more effective in order to build
required knowledge”
• Impression on BARM completeness:
• An E/BA Expert: “all required elements clearly mapped out and to me it is
complete representation of a business architecture. The fact that the
components are broken down to meet their purposes is quite new”
• Impression on BARM’s applicability for SMEs
• A SME’s Executive: “positioned technology elements and
institutional/macro environmental policies and their mutual impact on their
decisions toward the disrupting technologies”
Conclusion and Future Work
)
Future Works
o More case applications from diverse industries are needed to
confirm BARM’s general applicability
o Apply formal mapping method such as (Babar et al., 2010) to trace
the interrelationship between BARM components and Business
Model
Conclusion
o BARM presents broad reference model that covers and addresses
business architectural requirements for SMEs.
o BARM Embeds the concept of architecture within broader disciplines
which provides theoretical grounding for the proposed architecture
framework in order to address different business’s concerns and
requirements
Seyran Gh. Dehbokry
Seyranghahramanydehbokry@student.uts.edu.au
Faculty of Engineering and Information Technology
University of Technology, Sydney, Australia

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BARM for SMEs-ECIS Presentation

  • 1. TOWARD A MULTI- DISCIPLINARY BUSINESS ARCHITECTURE REFERENCE MODEL FOR SMES Seyran Gh. Dehbokry University Technology, Sydney (UTS) ECIS 2015
  • 2. Introduction ) • SMEs as key drivers of a nation’s economic growth competing in open, global, complex and growing ecosystem • Their inherent constraints drive the need for a simple strategic management tool to • orchestrate and integrate resource/capabilities • adopt/shape their chosen ecosystem • meet the emergent market needs • B/EA being applied to different organizational domains, • product (Ulrich, 1995) • human resource (Lepak and Snell, 1999) • enterprise/IT (TheOpenGroup, 2009, Kosanke et al., 1999, AMICE, 1993, Williams, 1998, Iacob et al., 2012, Wisnosky and Vogel, 2004) • cooperation and collaboration (Fjeldstad et al., 2012, Gulati and Singh, 1998) • enterprise integration (Beeckman, 1989, Force, 1999, Williams, 1998) • Current frameworks tends to orientate to large organizations and are over complex, require substantial investments
  • 3. Research Aim To develop a comprehensive and simple capability-based Business Architecture Reference Model (BARM) that allows SMEs to: • create value for customer/partner and themselves, e.g. through integrating, orchestrating and managing outside-in and inside-out capabilities/resources. • shape or evolve with their chosen ecosystem
  • 4. Conceptual Foundation of BARM TheOpenGroup, 2009 Zachman, 2007 Guild, 2014 OMG, 2004 Schilling, 2000 Pil and Cohen, 2006 Grant, 1991 Teece, 2007 Maglio, 2008 Volberda and Lewin, 2003 Donaldson, 2001 Osterwalder, 2004Magretta, 2002
  • 5. Toward a Business Architecture Reference Model • Easy to understand with aim to involve SME’s owner/executives • A capability-based strategic tool to o orchestrate firm’s capabilities o initiate incremental changes o outline fundamental relationships between business’s socio-technical components, internally as well as within ecosystem
  • 6. Toward a Business Architecture Reference Model • Five main components and 12 interrelated sub- components to reflect SME’s requirements in each architecture view • Mapped with firm’s Business Model: o ensure strategic alignment of BM design to business strategy and its internal and external fitness • Mapped with ecosystem (guided by architecture principles, co-evolutionary, contingency, DC theories and service science): o Exert the environmental dynamisms and competitive pressure on business components o To sense, leverage and integrate external opportunities. Business Architecture Reference Model (BARM)
  • 7. Toward a Business Architecture Reference Model
  • 8. Research Method and Evaluation • Design science research method (R Hevner et al., 2004) • Preliminary validated by interview of its field application (March and Smith, 1995) (Interviews with industry experts and SME executives) • 60 to 90 minutes long interviews between E/BA experts and SME’s executives as well as online interview through social media • aimed at investigating SME’s specific architectural requirements and examining how the interviewees and their companies plan to execute strategies • presenting the reference model as well as questions on evaluating effectiveness, completeness, simplicity and understandability for SMEs
  • 9. Research Evaluation (Results) Question Domain Evaluation Questions Interview Out Come SME’s Manager and E/BA Experts Statements On First Part Questions on SME’s requirements for BA-RM as a strategic tool How do you/SMEs plan to align business strategies to operational level? “… I don't know how many start-ups I've seen where they have no clue what capabilities they need.” “…Our (a SME’s) systems and business structures are defined by experiences and based on new projects as well as the government policies.” What are the BA-RM’s attributes that which make it applicable to SMEs? “As you describe, SMEs often don't have the resources/time to be as formal as some larger organisations. But at the same time specific industry & associated expectations & regulations/compliance requirements should affect/influence the model all practice” “The level of BA practice can vary quite significantly. So the model needs to be comprehensive and adjustable for e.g. a business with less than ten people making 2 million a year and a local data centre turning over 10 million a year with 20 or so” “… Next comes the problem of how BA can help us (SME) deal with "changing environments". That one is tricky.” How does an architecture model help you/SMEs to create/sustain competitive advantages within dynamic environments? “…Having a set of tools with some guidance can benefit even the smallest of businesses as it helps define what needs to get done.” “…A business architect with BA tools can go a long way to helping structure the company, set up the organization and get everyone on the same page in terms of process, roles and services.” Question Domain Pre-Evaluate Questions Interview Outcome Expert1 Expert2 Expert3 Expert4 SME1 SME2 SME3 Questions on framework completeness and fidelity with real world and applicability in SMEs In your opinion is the proposed model, components, relationships and related terms simple and understandable for SMEs? N P N P N P P How could such a model help a SME define/execute strategy related to business, market and collaborative network? P N P P P P P How could such a model help SME’s manager to structure, manage ICTs and associated capabilities? P P P N P N P How could this model enables SMEs to react in dynamic environment (Changes in ICT, market and collaborative network ) E N P P P N P How such a model could serves you/SMEs as the architectural guide for integrating business/model components? P P P P P P P In your opinion what elements are missing? P N Q P N Q P P P In your opinion what elements should not belong to the model? P P P P P P P Indicators; P: Positive answers N: Negative answers E: Neutral answers Q: Quote
  • 10. Research Evaluation (Results) • Impression on BARM simplicity and understandability for SMEs: • An EA Expert: “the fact the you have chosen the business scenario in an iterative architecture process development is more effective in order to build required knowledge” • Impression on BARM completeness: • An E/BA Expert: “all required elements clearly mapped out and to me it is complete representation of a business architecture. The fact that the components are broken down to meet their purposes is quite new” • Impression on BARM’s applicability for SMEs • A SME’s Executive: “positioned technology elements and institutional/macro environmental policies and their mutual impact on their decisions toward the disrupting technologies”
  • 11. Conclusion and Future Work ) Future Works o More case applications from diverse industries are needed to confirm BARM’s general applicability o Apply formal mapping method such as (Babar et al., 2010) to trace the interrelationship between BARM components and Business Model Conclusion o BARM presents broad reference model that covers and addresses business architectural requirements for SMEs. o BARM Embeds the concept of architecture within broader disciplines which provides theoretical grounding for the proposed architecture framework in order to address different business’s concerns and requirements
  • 12. Seyran Gh. Dehbokry Seyranghahramanydehbokry@student.uts.edu.au Faculty of Engineering and Information Technology University of Technology, Sydney, Australia