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BUSINESS BEHAVIOR MODEL Denis Lemaire – Birger Andersson 2009-2010

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BUSINESS BEHAVIOR MODEL

Denis Lemaire – Birger Andersson 2009-2010

Organization

Background

Operationallevel

Tacticallevel

Strategiclevel

Environment :changing

FromFrom «« ee--business model business model ontologyontology for for improvingimproving business/IT business/IT alignmentalignment, HEC , HEC LausanneLausanne »»

Adaptation

Position

Strategic level

Tactical level

Definition

The Business Behavior Model is a model which captures the impact of the participation of agents in

a business through an analysis of economic resources. The participation is driven by decisions based on agent motivation

In other words, a BBM models motives, decisions, and resouces and how they are related

Strategic level (i*)

CookieProducer CustomerIncrease

solvability Maximumenjoyment

Eat sweet foodstuff

Buy cookies

D

Legend

D

Actor (business role)

Actor’s boundary

Goal

Task(Means)

Dependencylink

Sub-goal link

Means-ends link

Producecookies

Receivepayment

Tactical level (e3value)

Tactical level (REA)

<<Agent>>Cookie producer

<<Event>>Cookie purchase

<<Resource>>Cookie

<<Agent>>Consumer

<<Event>>Payment

<<Resource>>Money

<<Stockflow>>

<<Stockflow>>

<<Duality>>

BBM. Syntax and semantic

BBM Name Representation (syntax) Semantic

Economic resource Exchangeable resources that carries a set of properties.

Non-economic resource (Motivation)

Resources that are not exchangeable to another actor.

Economic resource property

Resource property

Decision Decision nodes represent identification of (alternative chains of) goals and means in order to reach an objective

BBM. Syntax and semantic

BBM Name Representation (syntax) Semantic

Informational link Decision A is needed in order to take decision B.

Causal link Property A has an impact on the value assigned to property B. What impact is visualized through a valuation symbol on the relationship (++,+,-,--).

Definitional link A is a sub-decision of B.

Creation linkDecision A brings about an economic resource B. I.e., A creates a resource that is considered in the model.

B

A

A B

A B

A B

Example of BBM

Produce cookies

quality quantity

price

Sellability

amount

Good solvencycookies

Money+

+

+

+ ++

Decision

Property

Resource Motivation

Causal relation

Creation Link

-

-

Foundations

Rational Agent Theory Anand S.R., Michael P.G. BDI Agents: From theory to practice (1995)

Resource Based View (of the firm) Wernerfelt, B., The Resource-Based View of the Firm (1984) Barney J., Firm Resources and Sustained Competitive Advantage (1991)

The Business Model Ontology (BMO) Osterwalder A., Pigneur Y., An e-Business Model Ontology for Modeling

e-Business (2002)

Causal Graphs as a syntactic base Gammelgård M. et al., Business Value Evaluation of IT Systems:

Developing a Functional Reference Model (2006)

Usage scenarios

Providing complementary information, thereby enriching the picture.

Can be used as a ”stepping-stone” when deriving a Value model from a Goal model, or ...

... the other way around, deriving a Goal model from a Value Model

Example

Create a Business Behavior Model from a Value model

A Massively Multiplayer On-line Game (MMOG)

The example is from the Game provider’s point of view

Game provider’s value network

Provide MMOG

Create Game Transport CD Buy hosting

Distribute content

Decisions

Provide MMOG

Create Game Transport CD Buy hosting

Distribute content

MMOG

Hosting

Money

Amount

+-

Resources and Motivation Good

cash-flow

+

Provide MMOG

Create Game Transport CD Buy hosting

Distribute content

MMOG

Hosting

Money

Amount

Value Proposition

-

Capacity

Price

+

Customer Infrastructure Financial aspect

Sales

GamePrice

AccessCost

+

HighQuality Game

No. of players

Attractive-ness

++-

+

+

++

Goodcash-flow

+

Resource dependencies and impact

In Summary

The Business Behavior Model is positioned in between (or rather, in both) the strategic level and the tactical level of an organisation.

Enables analysis of resources where properties of resources ultimately contributes positively or negatively to the motives of agents.

...

From a Business/IT-alignment point of view

Alignment by mapping of levels by introducing models that belong on serveral levels

Is Motivation (a non-economic resource) the same as a Goal? any Motivation seems to be possible to formulat as a

Goal. ”My market share next year should be 20%”