Enterprise Engineering for The Agile Enterprise Don Liles The University of Texas at Arlington

UTA/ARRI

UTA/ARRI

Enterprise Engineeringfor

The Agile Enterprise

Don LilesThe University of Texas at Arlington

UTA/ARRI

Purpose

To discuss part of the work that we have been doing here at ARRI

over several years in the area of enterprise engineering

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Agenda

• Definitions

• The Enterprise Engineering View

• Modeling

• Design and Transformation Implementation

• Strategic and Economic Justification

• Conclusion

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Definitions: Agility

• The ability of an enterprise to respond to unanticipated changes in the environment

• The ability of an enterprise to respond to a wide array of anticipated changes in the environment

• The ability of an enterprise to change … to rapidly reconfigure itself

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Definitions: Enterprise

... a system engineered to accomplish organizational goals ...

An Enterprise is a complex system of cultural, process,and technology components

that interact to accomplish organizational goals.Enterprise

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How do we design and transform the complex system that we call the Enterprise?

... leads to the development of a body of knowledge, principles, and practices having to do with the analysis,

design, implementation, and operation of the Enterprise ... Enterprise Engineering

Assumptions

• Complexity is fundamental to the nature of the Enterprise.

• The Enterprise is a system that can be engineered.

• Engineering rigor is required.

Definition: Enterprise Engineering

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The Enterprise Engineering View


that interact to accomplish organizational goals.

A System that CAN be engineered!

Engineered to be agile …

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“What Do Engineers Do?”

• Build Models of Systems

• Analyze and Manipulate Models

• “Discover” and Develop New Designs

• Implement Designs


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Methods of Representation and Modeling


The Enterprise is a system that can be engineered ...

... using a set of Enterprise Engineering Principles and Practices.

Methods for Analysis and Design


Methods for ImplementationMethods for Implementation

Enterprise TheoryEnterprise Theory

Enterprise Engineering

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Enterprise Theory




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Enterprise Theory Fundamental Processes

Research has suggested that enterprise processes naturally fall into three categories.

• Category 1 processes transform external constraints into an internal constraint structure that might be expressed as a system of objectives, policies, and procedures.

• Category 2 processes acquire and make ready the resources used by the enterprise.

• Category 3 processes (design, marketing, manufacturing, distribution) transform the family of inputs into desired enterprise results or outputs.

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The Enterprise is a system that has certainbasic processes.

Enterprise

• Set direction• Set direction

• Acquire customers• Develop product

and process• Fulfill orders• Support customer

and product

• Acquire customers• Develop product

and process• Fulfill orders• Support customer

and product• Acquire resources• Manage financial

assets

• Acquire resources• Manage financial

assets

Enterprise Theory Fundamental Processes

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Enterprise Theory Agile/Virtual Enterprise

Enterprise A

Enterprise B

Enterprise C

Category 1 business processes collectively owned to Develop Enterprise Objectives, Strategies,

Tactics & Plans

Category 2 & 3 business processes individually owned and managed to market, design, produce, and distribute product

... rapidly assembling core capabilities so as to optimize the system

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Integration of Internal and External Processes

Enterprise Theory Agile/Virtual Enterprise

Enterprise A

Enterprise B

Enterprise C

Category 1 business processes collectively owned to Develop Enterprise Objectives, Strategies, Tactics & Plans

business processes

and managed to market, design, produce, and distribute product

Enterprise Y

Enterprise X

Enterprise Z

Enterprise W

individually owned

Category 2 & 3

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Enterprise Theory Multiple Enterprises Adds Complexity

Overlapping requirements

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Modeling

Organizational View

Activity View

Resource View

Business Rule View

Process View

Activity: Functions performed by enterprise (what is done)

Process : Time sequenced set of processes (how it is done)

Organizational: How the enterprise organizes itself

Business Rule: Defines the entities managed by the enterprise and the rules governing their relationships

Resource: Details the resources managed by the enterprise

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Activity View“Organic View”

Direct Enterprise

A1

Manage Assets

A2

Acquire Customers/

OrdersA3

Design Products/Processes

A4

Fill Orders

A5

C1Environment

C2ResourcesC3Corp. Policies & Directives

I1Capital

I2 Revenue

I3 Customer Data

I4Industry Data

I5 Orders/Customer Build Packages

M1 Assets/Partner Capabilities

O2

Proposals/Offerings

O1

StockholderReturns

O4

BuildPackages

O5Product

AssetInfo

Market/CustomerInfo

Product DevelopmentInformation

OperationStatus

Requests forAssets

PreparedAssets

Plans and Policies

Product/ProcessNeeds

I6Acquired Items

O3

PerformanceReports

InformalFeedback

Part & ProductInformation

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"Activity""INPUT"

"CONSTRAINT"

“RESOURCE"

"OUTPUT"

Make Part

Raw Materials

Tools

Fabricated Part

Work Order Blueprint Schedule

Scrap

Machines

Building an Activity Model

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• Determine Purpose, Viewpoint and Scope

• Generate Data List

• Generate Activity List

• Draw Top Level Diagram

• Decompose the Top Level Diagram using the Author Reader Cycle

• Continue Decomposition Until Desired Level of Detail is Reached

• Finish and Publish the Model


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KitsStep 1

Kits with Reactions from AuthorStep 3

Kits with Comments from ReadersStep 2

Author Readers

The Author Reader Cycle


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Process View

Student

UndergraduateAdvisor

Admin

StartRequestAdvisingPacket

Review Statusand Prepare

List of ProposedCourses

MakeAppointmentwith Advisor

Meet withAdvisor

Enroll

Advise Studentand Complete

Advising Packet

Prepareand DeliverAdvisingPacket

Release forEnrollment andCopy Packet for

Student and Files

File Packetand Update

StudentRecord

ElectronicRecord ofEnrollment

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A time sequenced set of actions

A time sequenced set of actions

Constraints

Resources

Inputs Outputs

Building a Process Model

A process transforms input into output,uses resources, operates within constraints, and

is measured in terms of fitness for use, time, and cost.

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Business Rule View

If “X” then “Y”If “X” then “Y”

Constraints

Resources

Inputs Outputs

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Resource View

What are the people and technology resources needed to accomplish enterprise objectives?

ActivitiesActivities

Resources

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Organizational View

Dir

ecti

on

, R

eso

urc

esIn

form

ation

, Resu

lts

The Organization is how we deploy “constraints”.

Who owns what resource?

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Enterprise Vision and Strategies

People

Technology

Enterprise Processes

... a system of people, processes, and

technology engineered to accomplish

organizational goals


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Transformation

BP6

EP1

EP2

EP5

BP4

EP3

Category 1 Templates




BP6

EP1

EP2

EP5

BP4

EP3




BP6

EP1

EP2

EP5

BP4

EP3



BP6

BP1

BP2

BP5

BP4

BP3




Enterprise Vision

TechnologyStrategyProcess

ImprovementStrategy Cultural

ChangeStrategy

Internal and ExternalEnvironment

Constrains and Enables

Transforming the Enterprise


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DevelopTechnology Solutions

DevelopTechnology Solutions

Integrate &Improve Enterprise

Integrate &Improve Enterprise

Create DesiredCulture

Create DesiredCulture

Develop Vision& Strategy

Develop Vision& Strategy

A Plan forTransformation

A Design Guide

Enterprise Transformation

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CorporateCulture

StrategicGoals

EnterpriseProcesses Technology

TheEnterprise

Cor

pora

te

Cul

ture Stra

tegic

Goals

Enterprise

ProcessesTec

hnology

TheEnterprise

The EnterpriseExcellenceMethodology

A Comprehensive EnterpriseEngineeringMethodology


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StrategicGoals

A coherent vision with supporting

strategies provide the guiding

principles for engineering and

operating the enterprise.

Develop Vision & Strategy

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Vision is a concrete statement which defines a desired future condition of what the organization aspires to become.

Strategies are the resource consuming activities which define how the organization will move toward the vision.

Build Commitment Develop Strategic Purpose

Develop & DeployIntegrated

TransformationPlan

Assess Environment

Develop Vision & Strategy

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CorporateCulture

“The way we do it around here”

must be aligned with the vision of

the company.

Create Desired Culture

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A corporate culture can be described as "the way we think, talk, work and act.” It is supported by management practices, structure, symbols, and rituals of the organization. The goal of cultural change is to move the whole organization into alignment with strategy.

Sell Vision, Plan, and Expectations

Align AdministrativeSystems

Build & AlignLeadership

Align Social Interaction

Improve &Involve People

Improve Communication &

Trust

Create Desired Culture

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EnterpriseProcesses The Enterprise and its processes

must be made fundamentally better

to compete in today’s world.

Integrate & Improve Enterprise

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Enterprise improvement and integration continuously reduces the cost and increases the value of the enterprise processes and products to better meet the changing needs of the customer.

A passion for doing things better, faster, cheaper.

Understand the Customer

Understand &Improve the

Product

Understand & Improve

the Process

Design & Implement Effective Controls


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EnterpriseProcesses

Understand the Customer

Understand &Improve the

Product

Understand & Improve

the Process

Design & Implement Effective Controls

• Bound processes and identify relationships

• Document and analyze process

• Design improved process

• Implement improved process

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Technology

Enabling technology must be

consistent with the vision and must

only be used to solve real problems.

Develop Technology Solutions

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Technology solutions are developed to accomplish defined needs in support of higher level business plans and strategies.

Understand Needs

Develop Decision Criteria

Develop Alternative Solutions

Develop & DeploySolution

Evaluate Alternatives& Select Solutions

Develop Technology Solutions

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EnterpriseProcesses

CorporateCulture

StrategicGoals

Technology

TheEnterprise

Putting it Together

A system of people, processes and technology designed to accomplish

organizational goals


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Justification Methodology

Identify System Impact

Identify System Impact

Identify Transition Impact

Identify Transition Impact

Estimate Costs and Benefits

Estimate Costs and Benefits

Audit DecisionAudit Decision

Perform Decision Analysis

Perform Decision Analysis

A Comprehensive Approach

Integrates Financial and Strategic

Considerations

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Design Alternative 3Decision ADecision BDesign Alternative 2

Decision ADecision BDesign Alternative 1

Decision ADecision B

Enterprise A

Enterprise B

Enterprise C

Altern

ative 1

Altern

ative 2

Altern

ative 3

Cost XQuality X XDelivery X

Define Design Alternatives

Model Impact on Enterprise

Analyze Impact

EvaluateImpact

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Define Design Alternatives

Analyze Impact

EvaluateImpact

SimulationActivity Based CostingStatisticsQFD Multi-Attribute Evaluation

(UTA developed)

Model Impact

Activity ModelingProcess ModelingFlow ChartsLayouts

Next GenerationTechnology

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Conclusion




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Conclusion

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Transformation

BP6

EP1

EP2

EP5

BP4

EP3





BP6

EP1

EP2

EP5

BP4

EP3




BP6

EP1

EP2

EP5

BP4

EP3



BP6

BP1

BP2

BP5

BP4

BP3




Enterprise Vision

TechnologyStrategyProcess

ImprovementStrategy Cultural

ChangeStrategy

Internal and ExternalEnvironment

Constrains and Enables

Transforming the Enterprise

Conclusion

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Enterprise Engineering for The Agile Enterprise Don Liles The University of Texas at Arlington

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