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![INNOVATION GOVERNANCE
The purchasing department staff instinctively
applied traditional supplier contracts, based on
monetary transactions, to regulate supplier
implementation of Volvo Cars’ requirements.
To effectively manage the relationships with
these new partners [like Spotify], Volvo Cars
learned to balance the need to control the
relationships with enough flexibility to stimulate
value cocreation. In doing so, the automaker
crafted a new contract that emphasized mutual
liability and cost neutrality.](https://image.slidesharecdn.com/conceptualmodelscriticalperspective-241209131842-a8ca34f1/75/critical-perspective-on-conceptual-models-in-enterprise-architecture-46-2048.jpg)
critical perspective on conceptual models in enterprise architecture
- 1. CONCEPTUAL MODELS: A CRITICALPERSPECTIVE Michal Hron
- 2. BOUNDARY CROSSING INDIGITAL TRANSFORMATION ̶ We talked a lot about the business-it interface… ̶ Crossing boundary between business and IT ̶ Digital transformation as cross-functional effort ̶ Business process as cross-functional effort 2 But how do you do that?
- 3. Enterprise architecture ~IT management HOW TO CROSS BOUNDARIES? ArchiMate BPMN UML Enterprise architecture (2 MSc Bus Eng) Business process management (2 MSc Bus Eng) Database management (3BSc Bus Eng) 3 Answer so far: Boundary crossing enabled with conceptual models
- 4. EA ARTEFACTS FACILITATECROSS-BOUNDARY INTERFACES 4
- 5. Lets take astep back… 5 What are conceptual models? How do models help in organizing? When do we want to cross boundaries and when not? How has the practice of modelling changed?
- 6. Lets take astep back… 6 What are conceptual models? How do models help in organizing? When do we want to cross boundaries and when not? How has the practice of modelling changed?
- 7. CONCEPTUAL MODELS ASBOUNDARY OBJECTS ̶ Boundary objects are a sort of arrangement that allow different groups to work together without consensus. ̶ Developed by Susan Leigh Star and James Griesemer in 1989. As a part of a study of collaboration between amateur naturalists, professional biologists, and museum administrators at the Museum of Vertebrate Zoology, Berkeley. ̶ Definition: Boundary objects are shared tools, concepts, or models that maintain interpretive flexibility, meet diverse informational and organizational needs, and dynamically balance between ill-structured and well-structured forms to support collaboration across groups. 7 Leigh Star, Susan. "This is not a boundary object: Reflections on the origin of a concept." Science, technology, & human values 35.5 (2010): 601-617.
- 8. CONCEPTUAL MODELS AREBOUNDARY OBJECTS 8 Leigh Star, Susan. "This is not a boundary object: Reflections on the origin of a concept." Science, technology, & human values 35.5 (2010): 601-617. Key Characteristic Definition Application in Enterprise Architecture Interpretive Flexibility The ability of an object to be used differently by various groups while retaining shared meaning. ArchiMate models can represent the same structure differently based on stakeholders' perspectives, e.g., IT managers see processes, while business leaders focus on outcomes. Material and Organizational Structure A structured form that addresses diverse work and information needs, enabling collaboration. EA frameworks like ArchiMate provide standardized notations (e.g., layers for business, application, and technology) that support diverse collaboration needs. Dynamic Usage A dual nature that allows shifting between generalized and tailored versions depending on context. Models evolve from high-level strategy diagrams to detailed implementation plans, tailored to specific phases of an enterprise transformation project.
- 9. When making amodel, different approaches can be taken… 9
- 10. TWO VIEWS OFMODELLING ̶ Information modeling helps design systems that reflect both organizational needs and technical requirements. ̶ The paper compares two approaches: Reality Mapping (RM) focuses on accurate representations of the real world, while Formal Language Development (FLD) emphasizes adaptability to organizational communication. ̶ This remains important today because AI and digital transformation require systems that are both technically precise and able to evolve with changing organizational goals 10 Lyytinen, Kalle. "Two views of information modeling." Information & Management 12.1 (1987): 9-19.
- 11. TWO VIEWS OFCONCEPTUAL MODELLING Reality Mapping (RM) View ̶ Models systems as exact mappings of the real world into a conceptual schema. ̶ Focuses on objectivity, consistency, and completeness in representing entities and relationships. ̶ Suited for stable environments with clear, unchanging structures. 11 Lyytinen, Kalle. "Two views of information modeling." Information & Management 12.1 (1987): 9-19. Formal Language Development (FLD) View ̶ Treats systems as communication tools facilitating structured interactions between stakeholders. ̶ Emphasizes adaptability, context- awareness, and evolving organizational needs. ̶ Aligns with dynamic, socially constructed environments where change is constant.
- 12. 12 "In our orderprocessing system, the focus is on creating a clear and structured model of how orders move through the business. We break down the process into speci fi c steps, like receiving the order, checking payment, verifying inventory, and shipping. Each step is represented in the system to match the real- world process as closely as possible. This approach ensures everything is consistent and accurate, so when we pull reports or make decisions, we know we’re working with reliable data." This practitioner is adopting a view of information models as representation of reality
- 13. 13 "For our orderprocessing system, we see it as a tool to help people work together more effectively. It’s designed to support communication between teams—sales enters the order, the warehouse con fi rms stock, and fi nance generates the invoice. Each action in the system represents a message between teams, following clear rules everyone understands. The system isn’t just about tracking orders; it’s about making sure all the moving parts in the process stay connected and run smoothly” This practitioner is adopting a view of information models as communication tool
- 14. SIMILAR VIEW FROMWIERINGA (1989) ̶ Descriptive Role: The model describes the universe of discourse (UoD) and aligns everyone's understanding. ̶ Normative Role: The model prescribes how entities should behave and enforces those rules. ̶ Institutional Role: The model facilitates institutional operations, enabling the system to perform speech acts within a shared framework of conventions. ̶ 14 Wieringa, Roel J. "Three Roles of Conceptual Models in Information System Design and Use." ISCO. 1989.
- 15. Lets take astep back… 15 What are conceptual models? How do models help in organizing? When do we want to cross boundaries and when not? How has the practice of modelling changed?
- 16. FROM REPRESENTATION TOMEDIATION Conceptual modeling must evolve because digital technologies now shape reality, blur structural boundaries, and involve both human and digital agents across diverse contexts, making traditional assumptions inadequate for today's dynamic IS landscape 16 Recker, Jan Christof, et al. "From representation to mediation: a new agenda for conceptual modeling research in a digital world." MIS Quarterly: Management Information Systems 45.1 (2021): 269-300.
- 17. FROM REPRESENTATION TOMEDIATION Conceptual models are scripts (products of the CM process) developed by using grammars (sets of constructs and the rules by which to combine them) and guided by a method (procedures by which a grammar can be used) within an organiza- tional context (the setting in which scripts are developed and used) (Wand and Weber 2002). 17 Recker, Jan Christof, et al. "From representation to mediation: a new agenda for conceptual modeling research in a digital world." MIS Quarterly: Management Information Systems 45.1 (2021): 269-300.
- 18. FOUR ASSUMPTIONS OFCM NEED REVISING 18 Recker, Jan Christof, et al. "From representation to mediation: a new agenda for conceptual modeling research in a digital world." MIS Quarterly: Management Information Systems 45.1 (2021): 269-300.
- 19. 1. REPRESENTATION ASSUMPTION 19 •Traditional scripts represent physical reality. • Digital technologies now actively shape and govern reality. • Updated scripts mediate transitions between physical and digital realities, representing both. • Example: ArchiMate model showed how customer service processes transition from physical call centers to digital chatbots, integrating workflows across both realms.
- 20. 2. STRUCTURE ASSUMPTION 20 •Traditional scripts focus solely on the deep structure of IS. • Digital objects blur distinctions between deep, surface, and physical structures. • Updated scripts capture deep structure and its connections with surface and physical layers. • Example: A project mapped the integration of a legacy CRM system (deep structure) with a new mobile app interface (surface structure) and cloud infrastructure (physical layer), demonstrating how these layers interact.
- 21. 3. AGENCY ASSUMPTION 21 •Traditionally, scripts are created and used only by humans. • Digital agents like AI and autonomous systems now act independently. • Updated scripts are produced and consumed by both human and digital agents. • Example: A project diagrammed how an ERP system automatically triggers supplier notifications (digital agent) based on inventory levels, showing interaction with human purchasing managers.
- 22. 4. CONTEXT ASSUMPTION 22 •Traditional CM occurs only in organizational work settings. • IS now extends into everyday life and nonwork settings. • Updated CM spans organizational and personal contexts, involving diverse user groups. • Example: A student project modeled a smart city initiative where citizens use a mobile app to report issues (nonwork context), and municipal IT systems coordinate responses, illustrating how EA spans multiple contexts.
- 23. FROM REPRESENTATION TOMEDIATION ̶ Management frameworks or conceptual models facilitate work across specialisations ̶ Not only are they representations of existing or envisioned reality, they mediate collaboration ̶ CM also have the capacity to change reality (not just map it) and they show and facilitate transitions between physical and digital reality 23 Recker, Jan Christof, et al. "From representation to mediation: a new agenda for conceptual modeling research in a digital world." MIS Quarterly: Management Information Systems 45.1 (2021): 269-300.
- 24. Lets take astep back… 24 What are conceptual models? How do models help in organizing? When do we want to cross boundaries and when not? How has the practice of modelling changed?
- 25. BOUNDARY CROSSING INDIGITAL TRANSFORMATION ̶ We talked a lot about the business-it interface… ̶ Digital transformation as cross-functional effort ̶ Business process as cross-functional effort 25 But how do you cross boundaries or align?
- 26. CONCEPTUAL MODELS ASBOUNDARY OBJECTS ̶ Boundary objects are a sort of arrangement that allow different groups to work together without consensus. ̶ Developed by Susan Leigh Star and James Griesemer in 1989. As a part of a study of collaboration between amateur naturalists, professional biologists, and museum administrators at the Museum of Vertebrate Zoology, Berkeley. ̶ Definition: Boundary objects are shared tools, concepts, or models that maintain interpretive flexibility, meet diverse informational and organizational needs, and dynamically balance between ill-structured and well-structured forms to support collaboration across groups. 26 Leigh Star, Susan. "This is not a boundary object: Reflections on the origin of a concept." Science, technology, & human values 35.5 (2010): 601-617. Reminder
- 27. 27 Levina, Natalia, andEmmanuelle Vaast. "The emergence of boundary spanning competence in practice: Implications for implementation and use of information systems." MIS quarterly (2005): 335-363. BOUNDARY SPANNING COMPETENCE REQUIRES OBJETS IN USE ̶ Boundary Spanning Emergence: Effective collaboration across organizational boundaries requires developing joint fields of practice, enabled by boundary spanners-in-practice and boundary objects-in-use. ̶ Success depends on aligning diverse fields' practices, leveraging symbolic and social capital, and fostering mutual recognition to create meaningful collaboration tools.
- 28. Boundary crossing… isnot just through objects but sometimes through type of activities. 28
- 29. 29 "Data is power."At a major insurance company, Acme Assurance, the IT department declared, “No one but us touches the data!” They locked down access to the data lake, citing a need for compliance and expertise. Marketing protested, calling the IT team “digital gatekeepers,” arguing for real-time data to optimize campaigns. Amid heated debates, the CIO quipped, “When was the last time compliance made you go viral?” IT defended their control with compliance models and data governance diagrams, but Marketing rallied with flashy mock-ups showing the power of targeted ads, claiming, “Without us, your data is just numbers!” Example
- 30. COMPETITIVE BOUNDARY WORK– THEORY 30 • Competitive boundary work focuses on creating, maintaining, or challenging boundaries to establish an advantage. • Activities include: • Defending boundaries to protect established domains. • Contesting boundaries to claim new resources or roles. • Creating boundaries to establish distinct domains of expertise. • This approach is often adversarial, aiming to secure power, resources, or influence. • Conceptual modeling plays a key role in visualizing boundaries and justifying claims, using tools like domain models and stakeholder maps.
- 31. 31 “Whose job isit anyway?” At TechStyle, an e-commerce fashion giant, Marketing and IT clashed over building a customer-facing mobile app. Marketing wanted “shiny and cool,” while IT argued for security and stability. Meetings devolved into finger-pointing. One developer joked, “Maybe we’ll build a sparkly fortress?” Eventually, an ArchiMate customer journey map saved the day by showing gaps in the process. IT realized they needed Marketing’s creativity, and Marketing saw the value of IT’s rigor. The app launched with rave reviews—and a secret Easter egg: typing “Teamwork” into the app’s search bar triggered a virtual high-five animation. Example
- 32. COLLABORATIVE BOUNDARY WORK– THEORY 32 • Collaborative boundary work involves aligning or blurring boundaries to enable shared goals. • Core activities: • Negotiating roles and responsibilities. • Using shared artifacts, like models or diagrams, to mediate understanding. • Downplaying boundaries to foster integration. • The goal is effective collaboration and knowledge sharing. • Conceptual models, like process maps, customer journey, or value chains, serve as boundary objects that align diverse perspectives and highlight interdependencies.
- 33. 33 “We need anew playbook.” GlobalAuto, a leading car manufacturer, faced chaos as they transitioned to smart manufacturing. The IT team managed IoT integration, but Operations refused to relinquish control, claiming, “We’re not giving the keys to the robots!” Leadership intervened, commissioning a capability map to show overlapping domains. The diagram revealed inefficiencies from siloed decision-making. “Turns out, our robots work better together than we do,” joked the COO. IT and Operations were restructured into joint agile teams. IoT and ERP systems were integrated, and productivity soared—along with interdepartmental banter about “the great robot rebellion.” Example
- 34. CONFIGURATIONAL BOUNDARY WORK– THEORY 34 • Configurational boundary work reorganizes boundaries to strategically integrate or separate activities. • Key activities: • Differentiating distinct domains for specialized functions. • Integrating domains to promote coordinated action. • Rearranging boundaries to adapt to changing needs. • This approach optimizes organizational design, balancing focus and collaboration. • Conceptual models like enterprise architectures and capability maps help visualize and test boundary configurations
- 35. Competitive Boundary Work Collaborative BoundaryWork Configurational Boundary Work Definition Establishing, defending, or challenging boundaries to gain or maintain advantage. Aligning or blurring boundaries to enable cooperation and achieve shared goals. Reorganizing boundaries strategically to integrate or differentiate activities Key Activities Defending roles, contesting authority, and creating exclusive domains. Negotiating roles, using shared artifacts, and downplaying boundaries for integration. Differentiating specialized domains, integrating overlapping functions, and dynamically adapting boundaries. Stakeholder Dynamics Often adversarial, with conflict over ownership, authority Cooperative, involving iterative discussions and compromise. Strategic and top-down, involving broad organizational planning and restructuring. Outcome Focus Preserves authority, power, or access to resources for specific groups. Builds trust, alignment, and collaboration between groups for seamless workflows. Enhances agility, efficiency, and strategic alignment across organizational units. Role of Conceptual Models Used to formalize claims and justify authority (e.g., governance frameworks, stakeholder maps). Proprietary languages preferred. Serves as boundary objects that mediate understanding and align perspectives (e.g., process maps, customer journey maps). Helps visualize and test boundary configurations, enabling scenario planning (e.g., capability maps, enterprise architectures). Langley, Ann, et al. "Boundary work among groups, occupations, and organizations: From cartography to process." Academy of management annals 13.2 (2019): 704-736.
- 36. 36 Boundary work among groups,occupations, and organizations: From cartography to process • The three types of boundary work are taken from this reference
- 37. THE VOLVO CASE •Separate software from car architecture • Collaborations with external partners • Control vs. flexibility Volvo had traditionally invested substantially in innovation within product silos and multiyear time frames by relying on hierarchical structures and modular product architectures. Digital technologies, however, required a new way of thinking that cut across these specializations and moved forward more quickly than the company had ever done.
- 38. SOURCES Academic Svahn, Fredrik,Lars Mathiassen, and Rikard Lindgren. "Embracing Digital Innovation in Incumbent Firms: How Volvo Cars Managed Competing Concerns." Mis Quarterly 41.1 (2017). Practitioner Svahn, Fredrik, et al. "Mastering the digital innovation challenge." MIT Sloan Management Review 58.3 (2017): 14. Older academic text from a smaller journal Wikhamn, Björn Remneland, Jan Ljungberg, and Alexander Styhre. "Enacting hard and soft product offerings in mature industries: Moving towards servitisation in volvo." International Journal of Innovation Management 17.04 (2013): 1350014. Only the MISq paper is on the syllabus but in the slides I relied on three sources. Here they are for convenience
- 39. THE VOLVO CASE Wikhamn, BjörnRemneland, Jan Ljungberg, and Alexander Styhre. "Enacting hard and soft product offerings in mature industries: Moving towards servitisation in volvo." International Journal of Innovation Management 17.04 (2013): 1350014. • Journey from product to customer process orientation • From transactions to relationships
- 40. TYPICAL CHALLENGES Challenge Description Innovationcapabilities • How to develop new capabilities without jeopardizing existing ones? • Employees supporting change vs. employees resisting to it • How to foster a new way of thinking and of working Innovation Focus • New design and management processes are needed – how to combine physical a • How to navigate between different requirements and need for resources (eg. synch • Increased coordination and collaboration across functions is needed • Change of the IT role to a more central role • From freezing design upfront to open design spaces Innovation Collaboration • New skills and competences are needed Need for engaging external partners – learning how to collaborate with external pa Innovation governance • Controlling the behavior of external partners while allowing enough flexibility to co Svahn et al. 2017 Svahn, Fredrik, et al. "Mastering the digital innovation challenge." MIT Sloan Management Review 58.3 (2017): 14.
- 41. INNOVATION CAPABILITIES To achievedigital innovation, company executives realized they had to crossfertilize the company’s existing innovation environments and break away from its conventional product development practices Connectivity Hub, a cross-functional team tasked with developing new innovation capabilities for connected cars. “The main job was to establish a new network that didn’t reflect the existing organization. The Connectivity Hub was an opportunity to bring different parts of the firm to the same table.” Manager
- 42. INNOVATION CAPABILITIES To achievedigital innovation, company executives realized they had to crossfertilize the company’s existing innovation environments and break away from its conventional product development practices Connectivity Hub, a cross-functional team tasked with developing new innovation capabilities for connected cars. “The main job was to establish a new network that didn’t reflect the existing organization. The Connectivity Hub was an opportunity to bring different parts of the firm to the same table.” Manager Boundary spanning or boundary configuration?
- 43. INNOVATION FOCUS At VolvoCars, process innovation was traditionally associated with production efficiency and incremental product improvements. But now the company faced a very different challenge in that its digital features were not necessarily defined up front To manage these competing concerns, Volvo Cars explored how to develop generic digital resources, rather than simply focus on addressing specific end-user problems
- 44. INNOVATION FOCUS At VolvoCars, process innovation was traditionally associated with production efficiency and incremental product improvements. But now the company faced a very different challenge in that its digital features were not necessarily defined up front To manage these competing concerns, Volvo Cars explored how to develop generic digital resources, rather than simply focus on addressing specific end-user problems View of IS as flexible resources
- 45. INNOVATION COLLABORATION The availabilityof digital platforms made the automaker realize the importance of also engaging external stakeholders as cocreators of value for the connected car aftermarket. Volvo Cars therefore launched a new software environment, called Volvo Cloud, to host in-car services based on software in back-end servers. This successful initiative opened up possibilities for external collaboration with third-party app developers, such as Pandora internet radio and Spotify’s digital music services, to secure a steady flow of new digital services to Volvo Cars’ customers. Inter-organizational boundary spanning
- 46. INNOVATION GOVERNANCE The purchasingdepartment staff instinctively applied traditional supplier contracts, based on monetary transactions, to regulate supplier implementation of Volvo Cars’ requirements. To effectively manage the relationships with these new partners [like Spotify], Volvo Cars learned to balance the need to control the relationships with enough flexibility to stimulate value cocreation. In doing so, the automaker crafted a new contract that emphasized mutual liability and cost neutrality.
- 47. SUMMARY OF THEVOLVO CASE Challenge Dilemma Solution Innovation capabilities Old vs. New capabilities Connectivity Hub, a cross-functional team Innovation Focus Product vs. Process how to develop generic digital resources, rather than simply focus on addressing specific end-user problems Innovation Collaboration External vs. Internal Volvo cloud as an internal initiative for involving external partners Innovation governance Flexibility vs. Control New open contracts for management of complementary solution providers like Spotify
- 48. Lets take astep back… 48 What are these models? How do they help with boundary crossing? When do we want to cross boundaries and when not? How has the practice of modelling changed?
- 49. 49 1. Two viewsof information modelling 2. Four challenged assumptions of conceptual modelling 3. Three types of boundary work WHAT TO REMEMBER
- 50. 1. Introduction: CourseOverview 2. It governance 3. Digital Business Transformation 4. EA Operating Model and Core Diagram 5. EA Engagement Model and Business Alignment 6. EA Principles 7. Business Processes 8. Digital platforms 9. Critical perspective on conceptual models 10.IM Project Presentations 50 THATS IT FOR THE LECTURES