using a fractal enterprise model for business model innovation

Using a Fractal Enterprise Model (FEM) for Business Model Innovation

- a research-in-progress paper

Ilia Bider and Erik Perjons

Department of Computer and Systems Sciences

Stockholm University

[ilia|perjons]@dsv.su.se

BPMDS’17 Working ConferenceBusiness process modeling, development and support

The Fractal Enterprise Model (FEM)• The fractal enterprise model (FEM) starts with a process and presents

assets (resources) needed for running this process ….

The Fractal Enterprise Model (FEM)

• … and for each asset, FEM presents processes for how to aquire, maintain or retire the asset


• … and for each asset, FEM presents processes for how to aquire, maintain or retire the assets

Building a FEM - using patterns

• Process-to-asset patterns/archetypes


• Asset-to-process pattern/archetype


• Applying the patterns will create a FEM – and the final result will be an hierarchy of processes and assets


FEM can be used for:

• finding “invisible” processes that exists or should exist in the enterprise

• understanding how certain assets and processes are used in different parts of the enterprise

• identifying capabilities of an enterprise

• planning business model transformation

• …


FEM can be used for:

• finding “invisible” processes that exists or should exist in the enterprise

• understanding how certain resources and processes are used in different parts of the enterprise

• identifying capabilities of an enterprise

• planning business model transformation

• …

An approach for business model transformation

The approach consist of two steps:

1) Generating hypotheses

2) Assessing promising hypotheses

Demonstration - book-sales-on-the-web business transformation (inspired by Amazon case)

Decision makers are often book readers


One platform vs many platforms for customers


More staff might be required


Decision makers are often book readers

One platform vs many platforms for custumers

More staff might be required


The challenge addressed – how to extend or change an existing business model

Next step

• Develop transformation pattern based on FEM• Using an infrastructural assets for building a service for external customer

• From designer to manufacturer

• From manufacturer to designer

• From educator to consultat

• ….

• Develop qualitative and quantitative measures • Supporting the analysis when comparing nodes

Earlier publications of FEM

• Bider, I., Perjons, E., Elias, M., & Johannesson, P. (2016). A fractal enterprise model and its application for business development. Software & Systems Modeling, 1-27.

• Josefsson, M., Widman, K. &Bider, I. (2015). Using the Process-Assets Framework for Creating a Holistic View over Process Documentation. In : Enterprise, Business-Process and Information Systems Modeling, LNBIP, Vol. 214. Springer, Stockholm (2015) 169-183,

• Henkel, M., Bider, I. & Perjons, E. (2014, June). Capability-based business model transformation. In International Conference on Advanced Information Systems Engineering (pp. 88-99). Springer International Publishing.

• Elias, M., Bider, I. & Johannesson, P. (2014). Using Fractal Process-Asset Model to Design the Process Architecture of an Enterprise: Experience Report. In BPMDS 2014 and EMMSAD 2014. LNBIP 175, Thesalonniki, Greece. Springer, pp.287-301.

• Bider, I., Perjons, E. & Elias, M. (2012). Untangling the Dynamic Structure of an Enterprise by Applying a Fractal Approach to Business Processes. In Proceedings of PoEM 2012. LNBIP 134, Oslo, Norway. Springer, pp.61-76.