This document proposes a method called "potentials modeling" for evaluating the economic impacts of information systems designs. Potentials modeling involves: (1) creating an "as-is" business process model, (2) identifying how IS design alternatives could transform the as-is model to create a "potentials model", and (3) developing a "value model" using financial equations to assess the economic effects captured in the potentials model. The method was developed through design science research and evaluated using software prototypes.

1. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
VALUE-ORIENTED
INFORMATION SYSTEMS
DESIGN. THE CONCEPT OF
POTENTIALS MODELING
AND ITS APPLICATION TO
SERVICE-ORIENTED
ARCHITCTURES

2. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
About this work
Main publication of these slides
▪ vom Brocke, J., Sonnenberg, C., & Simons, A. (2009). Value-oriented Information
Systems Design: The Concept of Potentials Modeling and its Application to
Service-oriented Architectures. Business & Information Systems Engineering
(BISE), 1(3), 223-233 (Download).
Further publications on the topic
▪ vom Brocke, J., Recker, J., & Mendling, J. (2010). Value-oriented Process
Modeling: Integrating Financial Perspectives into Business Process Re-Design,
Business Process Management Journal (BPMJ), 16(2), 333-356 (Download).
▪ vom Brocke, J., & Sonnenberg, C. (2014). Value Orientation in Business Process
Management. In J. vom Brocke, & M. Rosemann (Eds.): Handbook on Business
Process Management, 2nd ed..

3. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Management Summary
▪ This work shows how to evaluate the economic consequences of
information systems at design time by means of potentials models
▪ Procedure for IS design-time evaluations based on potentials models:
◦ Create an as-is business process model
◦ Locate the potential transformational impacts of one or more IS design
alternatives within the as-is business process model, thereby creating a
potentials model from the as-is model
◦ Create a value model that accounts for the potential economic effects of an
IS design alternative based on the impacts documented in the potentials
model
◦ Re-configure IS alternatives or specify a to-be business process model
Keywords: Potentials Modeling, Information Modeling, Service-oriented
Architecture (SOA)

4. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Main Result (1/4)
Fig. 1 Procedure for evaluating economic impacts of IS design alternatives and for
identifying a satisfycing to-be model of implementation (adapted from vom Brocke
et al., 2009, p. 227)
As-Is-Model Factual Value-oriented To-Be-Model
41
2
3
Structural Alternatives Value Models
Potentials Models

5. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Main Result (2/4)
Fig. 2 Factual potentials model example (vom Brocke et al., 2009, p. 230)
time limit for
existing orders
ends
delivery order
arrived
determine free
capacities of
transport
create detailled
plan
create ad-hoc
plan
ad-hoc plan
is created
addresses for
delivery are
determined
addresses for
delivery are
determined
detailled plan
is created
release
orders
S1
S2
S3
GlobalRoute
Planning
GeoData
ForLogistics
Intelligent
Routing
interface implementation
proprietory development
ESB procurement and maintenance
error rate
price
...
default risk
0,01%
1,05 EUR/Trans.
...
0,01%
error rate
price
...
default risk
5,00%
0,10 EUR/Trans.
...
5,00%
error rate
price
...
default risk
3,00%
0,25 EUR/Trans.
...
3,00%
higher probability for running the right-hand
process branch in order to create a higher number of
detailled route plans
implicit potentials model for the process „route planning“
period instances
process execution
1
2
3
4
5
18.250
19.163
20.121
12.127
22.183
capacity available?capacity not available?
[…]
potential
legend
event
activity
service
Infrastructure
XOR operator
control flow

6. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Main Result (3/4)
Fig. 3 Data structure for value-oriented potentials models (vom Brocke et al., 2009, p. 229)
infrastructure item
service
(0,n)
(0,n)
(1,1)
(0,n)
(0,n)
object system
(0,n)
(0,n)
account
period
activity
process-
activity-rel.
(0,n)
process
{value}
goal system(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
(0,n)
activity-
service-rel.
infrastructure-
service-rel.
payment.
original.
infrastructure
payment.
original.
service
payment.
original.activity.
single
{value}
(0,n)
payment.
original.activities.
total
{value}
payment.
original.
process
{value}
{value}

7. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Main Result (4/4)
Fig. 4 Value-oriented potentials model example (vom Brocke et al., 2009, p. 231)
activity level
activity level 22.356 € 24.569 €
1.825
18.250
10
5
0,2
0,03
0,03
10.950
21.243
8.670
17.703
8.943
2,50
22.356
1.825
19.163
10
5
0,2
0,03
0,03
10.950
21.243
8.670
18.588
9.828
2,50
24.569
IntelligentRouting –25.000 € 11.431 € 12.422 €
savings 22.356 € 24.569 €
infrastructure level –25.000 € –7.500 €
4.000 €
2.500 €
5.000 €
4.000 €
3.500 €
5.000 €
template [payments for ESB] –25.000 € –6.500 € –7.500 €
service level 0 € –4.426 € –4.647 €
0,25 €
18.588
–4.647 €
service payments 0 € –4.426 € –4.647 €
GeoDataForLogistics –32.500 € 11.770 € 13.229 €
23.720 € 26.001 €
GlobalRoutePlanning
infrastructure level –1.000 € –1.500 € –700 €
service level –19.161 € –20.119 €
0 1 2
–1.000 € 3.060 € 5.183 €
0,25 €
17.702
–4.426 €
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
29.614 €
1.825
22.183
10
5
0,2
0,03
0,03
10.950
21.243
8.670
20.606
11.846
2,50
29.614
16.463 €
29.614 €
–8.000 €
4.000 €
4.000 €
5.000 €
–8.000 €
–5.151 €
0,25 €
20.606
–5.151 €
–5.151 €
16.814 €
32.839 €
–500 €
–22.990 €
5
9.349 €
original payments
period
(1) CA
(2) PE
(3) PTas-is
(4) PTto-be
(5) ERas-is
(6) ERto-be
(7) DRto-be
(8) pDPas-is = (1) / (3)
(9) pDPto-be = [(1) / (4)] · [1 – (7)]
(10) rDPas-is = MIN [(2) ; (8)] · [1 – (5)]
(11) rDPto-be = MIN [(2) ; (9)] · [1 – (6)]
(12) ΔrDP = (10) – (11)
· savings per detailled plan (€)
= overall savings (€)
capital expenditure
– maintenance
– adaptations
depreciation
(not directly affecting payment)
–6.500 €
–25.000 €
service cost rate
(price per transaction)
· rDPto-be
= service payments

8. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Important Concepts (1/2)
▪ Factual potentials model
◦ Contains
 Structural relationships between IS components
 Dependencies between IS components and business process activities
◦ Determines what could be achieved with an IS design alternative
◦ Can be specified by means of process-oriented IS modelling languages (e.g.
with the Event-driven process chain, BPMN, IDEF, UML Activity diagrams)

9. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Important Concepts (2/2)
▪ Value-oriented potentials model
◦ Contains
 Value expressions that relate to the structures and dependencies
specified in factual potentials models
◦ Accounts for what should be achieved with an IS design alternative
◦ Can be specified by means of formal value statements and formal value
expressions, through e.g.
 Goal-oriented process modelling
 Financial equations
 Balanced scorecards

10. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Research Method
▪ Design science research (DSR) project with one complete iterations of the
following DSR process*
◦ Problem Identification and Motivation – lack of methods for ex-ante IS
evaluations
◦ Define Objectives of a Solution – propose solution for evaluating service-
oriented IS designs
◦ Design and Development – conceptual modelling
◦ Demonstration – web-based as well as spreadsheet-based software
prototypes
◦ Evaluation – demonstration examples and practical applications
◦ Communication – research publications
* Peffers K., Tuunanen T., Rothenberger M.A., & Chatterjee S (2007). A Design Science Research
Methodology for Information Systems Research, Journal of Management Information
Systems, 24(3), 45–77.

11. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Related Publications
Main publication of these slides
▪ vom Brocke, J., Sonnenberg, C., & Simons, A. (2009). Value-oriented Information
Systems Design: The Concept of Potentials Modeling and its Application to
Service-oriented Architectures. Business & Information Systems Engineering
(BISE), 1(3), 223-233 (Download).
Further publications on the topic
▪ vom Brocke, J., Recker, J., & Mendling, J. (2010). Value-oriented Process
Modeling: Integrating Financial Perspectives into Business Process Re-Design,
Business Process Management Journal (BPMJ), 16(2), 333-356 (Download).
▪ vom Brocke, J., & Sonnenberg, C. (2014). Value Orientation in Business Process
Management. In J. vom Brocke, & M. Rosemann (Eds.): Handbook on Business
Process Management, 2nd ed..

12. © Jan vom Brocke, Christian Sonnenberg, Alexander Simons
Contact
Feel free to contact the authors in case of any related matter
▪ Prof. Dr. Jan vom Brocke, University of Liechtenstein, Institute of Information
Systems, jan.vom.brocke@uni.li, www.uni.li/jan.vom.brocke,
Twitter: @janvombrocke, Mail: jan.vom.brocke@uni.li
▪ Dr. Christian Sonnenberg, University of Liechtenstein, Institute of Information
Systems, christian.sonnenberg@uni.li, www.uni.li/christian.sonnenberg
▪ Dr. Alexander Simons, University of Liechtenstein, Institute of Information
Systems, alexander.simons@uni.li, www.uni.li/alexander.simons