the ontology-based business architecture engineering framework

Ontology-based business architecture engineering framework

Dmitry Kudryavtsev, Lev Grigoriev

2011

Ontology-based business architecture engineering framework, SOMET 2011

Outline

1. Business architecture overview

2. Currently available frameworks

3. Ontology-based approach

4. ORG-Master architecture framework– Overview,– Ontology-based metamodel,– Business architecture development method,– Tool-support

5. Implementation

6. Dissemination of the ORG-Master framework

7. Conclusion

2


Background

Technologies, market situation and company’s external environment change rapidly;

Business transformations enable companies to be agile and responsive to cope with these changes;

Transformation process requires adequate methods and tools to be effective and manageable;

Existing solution - enterprise architecture (EA) management method and tools (Business architecture is a substantial part of EA).


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“Business Architecture (BA) is a formal blueprint of governance structures, business semantics and value streams across the extended enterprise.

Business Architecture articulates the structure of an enterprise in terms of its:

- capabilities, - business processes, - governance structure, and - business information. The business capability is “what” the organization does, The business processes, are “how” the organization executes its capabilities. In articulating the governance and information, the business architecture

considers all external actors to an enterprise (including its customers, suppliers, and regulators), to ensure that flow in and out of the enterprise are captured.

“Business Architecture (BA) is a formal blueprint of governance structures, business semantics and value streams across the extended enterprise.

Business Architecture articulates the structure of an enterprise in terms of its:

- capabilities, - business processes, - governance structure, and - business information. The business capability is “what” the organization does, The business processes, are “how” the organization executes its capabilities. In articulating the governance and information, the business architecture

considers all external actors to an enterprise (including its customers, suppliers, and regulators), to ensure that flow in and out of the enterprise are captured.

Business Architecture Working Group. Available at: http://www.omgwiki.org/bawg/doku.php,

Business Architecture (BA) definition

http://www.omgwiki.org/bawg/doku.php


Available BA frameworks

Component Business Model

ARIS

BMM DEMO


Evaluation criteria for the available BA frameworks


Comparison of the currently available Business Architecture frameworks* (1/2)

* Extended and adapted from Glissmann S., Sanz J., Business Architectures for the Design of Enterprise Service Systems, Handbook of Service Science, P.P. Maglio, C.A. Kieliszewski, and J.C. Spohrer, eds., Boston, MA: Springer US, 2010, pp. 251-282


Comparison of the currently available Business Architecture frameworks (2/2)


Problem

There is a lack for the framework, which:• Covers all the domains of BA (completeness of

metamodel) AND,• Provides methodology and procedure for BA

development AND• Provides tool support for metamodel and

methodology.

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Enterprise modeling languages (EML)

EMLEML 11 EMLEML 22

EMLEMLnn

EMLEML ii

Diagrammatic notation 1

Diagrammatic notation i

Diagrammatic notation 2

Diagrammatic notation n

Enterprise ontology

The transition towards the ontology-based BA modeling

Ontology is a formal, explicit specification of a shared conceptualization (Gruber, 1993)


Components of the ORG-Master architecture framework

Ontology-based enterprise model{specialized and

populated ontology}

Output views / documents and

diagrams

Pro

cess

ing

Input views /documents and

diagrams Impo

rt

Model level

Meta-model level

Creation and Acquisition

Formalization Distribution Use

Customization method

Specifications of views (documents and diagrams)

Methodology for enterprise model creation and use

Enterprise Ontology

Knowledge ProcessKnowledge Process

Metamodel


Main domains of the ORG-Master enterprise ontology


Fragment of the ORG-Master enterprise ontology

ActivitiesActivities

Result-oriented activities

Result-oriented activities

Homogeneous activities

Homogeneous activities

Elementary activities

Elementary activities

Regular activityRegular activity

Unique activityUnique activity

Value-added chainValue-added chain

System of activitiesSystem of activities

Functional (sub) systemFunctional (sub) system

ProcessProcess

Version of the processVersion of the process

Goal-oriented programGoal-oriented program

ProjectProject

Functional domainFunctional domain

FunctionFunction

ActionAction

TaskTask

By typeBy type

By areaBy area

Managerial activitiesManagerial activities

Value creating activitiesValue creating activities

Support activitiesSupport activities


Enterprise views and view specifications

Based on the IEEE Std 1471-2000: IEEE Recommended Practice for Architectural Description of Software-Intensive Systems, IEEE, New York.

View specification (short / full)

Ontology-based business architecture engineering framework, SOMET 2011 16

Knowledge Process



Knowledge acquisition forms

Analytical reports

Structured Administrative documents Y

Query answering

Internal Representation

Structured Administrative documents Х

Local knowledge acquisition

organizational models

From knowledge acquisition forms to document-oriented views

Ontology-based enterprise model


Knowledge Process



Text X

Tables Y

Text Y

Graphics Y

Internal Representation

Tables X

Graphics X

Pseudo-Graphics

From knowledge acquisition forms to document-oriented views



GoalGoal

OperationsOperationsStructureStructure

Principles and rulesPrinciples and rules

Products and Services,

Value chain,Functional systems,

Processes,Activities

Products and Services,

Value chain,Functional systems,

Processes,Activities

Vision and mission, Concepts and Policies,Strategy and critical success factors (CSF),Key Performance Indicators (KPI)

Vision and mission, Concepts and Policies,Strategy and critical success factors (CSF),Key Performance Indicators (KPI)

Actors, Roles structure,

Organization structure,

Responsibilities,Authority

Actors, Roles structure,

Organization structure,

Responsibilities,Authority

The ORG-Master BA engineering method (overview)


Develop business concepts

Describe value added

chain

Develop strategy

Identify and classify functional systems

and business-processes

Define interaction of

business processes

Define KPI system Business process

redesign

Design organizational

structure

Strategy maps and critical

success factors

NeedsMarkets

Customers

Value added chain

Owners of FS, subsystems and

processes

Purposes of FS, subsystems and

processes

Functional systems (FS)

and subsystems, processes

Business-process network

Actors

KPI system

Redesigned business

processes

Organizational structure (with

attributes: goals, measures, FS,

processes)

Mission, Vision, Concepts and

policies

The ORG-Master BA engineering method (details)


More details

Identify and classify functional systems

and business-processes

Corporate system

Business system

Business-lines

Functional systems

Functional subsystem

Kudryavtsev, D., & Grigoriev, L. (2011). Systemic approach towards enterprise functional decomposition. The proceedings of the Workshop “Convergence of Business Architecture, Business Process Architecture, Enterprise Architecture and Service Oriented Architecture” within the 13-th IEEE Conference on Commerce and Enterprise Computing (CEC), September 5-7, 2011, Luxemborg. P. 310-317.


The BA engineering tool


editor

Ontology-based enterprise

model

Reporting and query module

Documents

Diagrams

ORG-MASTER ®

Modeling process wizard

Integration wizard

Diagram editor

Query results

Semi-structured

data

OWL


ORLAN (ORganizational LANguage)

This language allows to structure, represent and query enterprise model. ORLAN :: = <TYPES, CL, MX, InferPR, D, TASKS, SPEC >, where:

TYPES – types descriptions, which specify the classes, relationships and properties of enterprise ontology, together with their taxonomies,

CL – classifier, the representation format for entities, hierarhical relationships between them and values for the properties of entities (including ontological types). Hierarchy is the main feature of classifies and the main relationship types are “part-of ”, “class-subclass”, “be subordinated to” etc.

MX – matrix (or table), the representation format for relationships between entities from classifiers. Example relationship types are “perform”, “help achieve” etc.

InferMX – inference matrix, allows to infer implicit knowledge via transitive property of relationships in several matrixes,

D – modeling domains (activities, norms, information resources, etc),

TASKS – enterprise engineering method specification,

SPEC – views specifications.


ORLAN: Types


ORLAN: Classifier (CL) for instance-level editing


ORLAN: Matrix (MX) for instance-level editing


ORLAN-OWL mapping


ORG-Master role in CPM & BPM systems

Modeling

ORG-MASTER®

Execution

e.g. TIME-MASTER®

Monitoring

e.g. Е-MASTER®

BPA (Business Process

Analysis)

BAM (Business Activity

Monitoring)

Strategic goals & measures

Development projects

Operational goals and measures

Processes

Business Process Management (BPM)Business Process Management (BPM)

Process Engine

Strategy Monitoring

Project Management

(internal projects)

Strategy Modeling

Corporate performance management (CPM)Corporate performance management (CPM)


Implementation experience

BUSINESS ENGINEERING GROUP SPb (implements the framework)

Consulting

Organizational design, strategic management, business process improvement and re-engineering, enterprise architecture management, quality management

Products

ORG-MASTER® line of software products for organizational design and analysis

GOV-MASTER ® software for public organizations design and analysis

Seminars and Trainings

Business engineering School, School of business analysts, Business ideology school

Research

Models and methods of organizational design, enterprise engineering and modeling

History: management consulting, enterprise modeling software and trainings since 1997

Customers: large and medium-sized CIS business and public organizations


Implementation experience: business entities


Implementation example

Ilim Group, Koryazhma Branch

30

Problem:Equipment reliability dropBreakdowns happened often unplanned equipment downtime increased



Solution - maintenance system reengineering project:

• Develop maintenance system concept, strategy and measures;

• Redesign organizational structure,

• Identify maintenance processes and raise their maturity,

• Optimize the key maintenance processes;

• Information system improvement;

• Formalize and enhance key maintenance operations;

• Develop organizational documentation.

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All of the above was done using electronic ontology-based BA model.

Goals, measures, business process, organizational structure, roles, operations and other entities were entered into the model and related to each other.

The organizational documentation was then generated from the model.

The ontology included about 60 concepts and some 100 types of the relationships.

The instance base included more than 10000 elements.

Project deliverables (organizational documentation / views): • 36 process regulations, • 12 functional system standards, • more than 400 job descriptions, • more than 200 employee performance scorecards, • 35 operation instructions.



Overall effects of the maintenance system reengineering project:

• 40 percent decrease in the unplanned equipment downtime;

• Increased manageability and performance; • Repair times reduced; • Increased equipment reliability.

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Implementation in government agencies

The GOV-Master is a version of the ORG-Master, which complies with the federal, regional and local authorities modeling methodology developed by the authors of this research.

The three aspects of GOV-Master framework (a version of ORG-Master) implementation include administrative regulations, structure and function optimization, performance management.

More than 10 administrative regulations have been developed for the Federal Migration Agency, Federal Registration Agency, Federal Agency for Physical Culture and Sport, etc.

Examples of regulatory documents (views) generated from the ontology-based model include:

• Government Agency Activity Regulation; • Administrative Regulations; • List of administrative processes supported by a government agency and their

delegation to its subdivisions; • Graphic descriptions of administrative processes in two formats (one is similar to

EPC, another is extended IDEF0); • Regulation of subdivision functions.


Dissemination of the ORG-Master framework

Business Engineering School is our flagship training instrument (Since 2003). The 16th Business Engineering School took place in May, 2011.

ORG-Master framework is also included in the curricula of several institutes and universities in Saint-Petersburg and Moscow.

More than 200 corporate seminars and tutorials on the management methods based on business engineering have taken place since 1998.

Grigoriev L. (eds), Gorelik S., Kudryavtsev D., Koryshev I., Kislova V., Makarevich M., Kamenskaya M., Yakubovskaya T., Zablotskiy A., Panfilov M.. Musical score of management: the technology for engineering of effective companies. - М: Alpina Publishers (2010) 692 p. (in Russian)

Industry-oriented publications… e.g. the series of articles (about 10) in the Methods of Quality Management journal, one of the leading TQM journals in Russia.


Conclusions

Business architecture (BA) became a popular tool for business transformations.

There is a lack for the business architecture framework which provides an integrated metamodel, methodology and tool support for BA development.

The ORG-Master architecture framework provides:• the metamodel components (enterprise ontology, view

specifications), • the methodology (BA development method, typical project tasks

specifications, reference models and classifications) and • ORG-Master tool.

The END

Questions?

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