Body of Knowledge (BOK) of
Business Engineering (BE)
Togar M. Simatupang, Akbar Adhi Utama, Nur Budi Mulyono
Bandung Institute of Technology
Presented at 1ST INTERNATIONAL BUSINESS ENGINEERING CONFERENCE,
26-27 September 2016 in Kuala Lumpur, Malaysia
2. Literature Review: What is Business
3. Engineering Approach to Business Enterprise
4. A guide to the BE Body of Knowledge
5. Concluding Remarks
• Managers must satisfy design and safety requirements, manage
human resources to boost innovation and productivity, use natural
resources efficiently, stay on top of other environmental concerns
and emphasize total quality in operations.
• The scope and complexity of business engineering responsibilities
has changed dramatically during the past 10 years.
• However, there is no common body of knowledge about Business
Engineering as well as the position of Business Engineering
compared to existing engineering approaches to business.
• This paper aims at providing a stylist framework of differentiating
engineering approach to business and offering the BE body of
Literature Review: What is Business
The concept of Business Engineering
• The business engineering concept enables the
transformation of enterprises from the
industrial age into the information age by
means of procedure models, methods, and
– Osterle, H. (1995), Business in the Information Age:
Heading for New Processes, Springer, Berlin.
The concept of business engineering
• van Meel and Sol (1996) have used the term "business engineering"
to refer to a single umbrella and facilitate the integral design of
both organizational structures and information systems.
– System science, mathematical statistics, and socio-technical design are
merged into a design approach, a design theory, and a set of
• The business engineering approach was developed by Österle
(1995, p. 13) to describe the corporate reality, it separates the three
layers strategy, processes and information systems.
– The strategy layer determines the business model and proposes the
goals that need to be achieved for the success of the company.
– The process layer creates the output needed to fulfill the goals of the
– The information systems support the processes in creating the
outputs, sometimes actually enabling the processes to fulfill the
requirements of customers.
• Österle, H. (1995), Business in the Information Age: Heading for new Processes, Springer, Berlin.
• van Meel, J.W. and Sol, H.G. (1996), "Business engineering: dynamic modelling instruments for a dynamic world", Simulation and
Gaming, Vol. 27 No. 4, pp. 440-61.
Scope of Business Engineering
What is an Engineer?
• Ingenium: Talent, natural capacity, or clever
– Early applications of Clever Inventions based on
– Builders of Ingenious military machines?
• The first issue (1866) of the English Journal
– The art of directing the great sources of power in
nature, for the use and convenience of man.
– Is it an art or profession?
A new definition of Engineering
• Modern Definition of Engineering By ABET
(Accrediting Board for Engineering and
– The profession in which a knowledge of the
mathematical and natural sciences gained by study,
experience, and practice is applied with judgment to
develop ways to utilize, economically, the materials
and forces of the nature for the benefit of mankind.
– A person applying his mathematical and science
knowledge properly for mankind
• It is a discipline not an art.
Engineering Approaches to Business
Orientation of methods
(1) Enterprise Engineering
• Enterprise engineering is an engineering field that
focuses on techno-structural intervention that attempt
to engage the complex architectural determinants of
enterprise as a way of influencing better effectiveness.
• An enterprise is a socio-technical system consisting of
interdependent resources of people, information, and
technology that often interact with each other and
• According to SEE, enterprise engineering is defined as
"a body of knowledge, principles, and practices having
to do with the analysis, design, implementation, and
operation of the enterprise".
(2) Industrial Engineering
• Industrial engineering is concerned with the design, improvement and
installation of integrated systems of men, material and equipment. It
draws upon specialized knowledge and skills in the mathematical, physical
sciences together with the principles and methods of engineering analysis
and design to specify, predict and evaluate the results to be obtained from
such systems. (The American Institute of Industrial Engineers)
• The prime objective of industrial engineering is to increase the
productivity by eliminating waste and non-value adding (unproductive)
operations and improving the effective utilization of resources.
• Industrial engineers must see how performance improvement in the
target subsystem (warehouse layout, work cell configuration, display
/human-equipment interface, queue design, simulation, supply chain,
etc.) serves the higher good or works to optimize the performance of the
(3) Business Engineering
• Business engineering is an engineering field that
focuses on socio-structural intervention through
conceptualization, modeling, analysis, organization,
calculation, and the design of complex organizations.
• van Meel and Sol (1996) define business engineering as
“an integral design of organizational architectures and
• Business engineering is concerned with the design and
implementation of business solutions that incorporate
business model, business processes, organizational
structure, information systems, and information
(4) Engineering Management
• Engineering Management aims to uncover and
solve organizational issues by attempting to
establish a desirable allocation of management
resources through the use of technologies.
• In an area where reactions to continuous changes
are needed, the field of Engineering Management
utilizes "technology on technology", including a
variety of management technologies and history
and philosophy of science and technology.
Source: Dept. of Industrial Engineering and Management, Tokyo Institute of Technology.
• Engineering Management (EM) examines the engineering
relationships between the management tasks of staffing,
organizing, planning, and financing, and the human element
involved in production, research, and service.
• EM teaches the concepts and principles of engineering to manage
the fundamentals of organizational leadership, personnel
management, fiscal management, and systems understanding.
• EM is a highly relevant program which builds on the traditional roles
of systems analysis and basic and applied sciences by emphasizing
management functions in a technical setting.
• The Engineering Management program is accredited by the
Engineering Accreditation Commission of ABET.
Domain of Engineering Management
Source: Source: "Industrial Engineering and Engineering Management Post Graduate
Study Guide 2014", the University of Stellenbosch. 25
The proposed Business Engineering
Body of Knowledge
• Capability Maturity
• Change Management
• People and Organization
• BEBOK Domains
4. Product, Service and Process Development
6. Capability Maturity Model
7. Project Management
8. Professional Responsibility, Ethics and Legal Issues
• Engineering Principles
c. Systems Thinking
d. Engineering Design
• Engineering approaches to business enterprise is a unique improvement intervention to solve
complex problems and implement solutions in practical and cost effective ways.
• The ambiguity of different engineering approaches in the ongoing debate can be resolved as
proposed in this research by synthesizing two dimensions of objects and methods in which
the construction of methods are tuned to specific situations of engineering objects. There are
four field of engineering to have distinct identities, namely:
1. Industrial Engineering
2. Engineering Management,
3. Enterprise Engineering, and
4. Business Engineering.
• The proposed configuration can be used to eliminate confusion in the academic world such
as the difference between enterprise engineering and business engineering that looks similar.
• Business engineering emphasizes the adoption of systems approaches, problem solving
techniques to design and implement effective and productive processes that combine
people, organization structure, and technology.