Enterprise Systems Principles
International Engineering Systems Symposium
Prof. Debbie Nightingale
MIT
June 17, 2009
The Challenges of Complex Enterprises
Requires a Systems Approach
• New strategic systems perspective
• Viewing enterprises as holistic and highly networked
systems
• Integrating leadership processes, lifecycle processes and
enabling infrastructure systems
• Balancing needs of multiple stakeholders working across
boundaries
MOVING FROM THE PAST
(hierarchical) enterprise
http://lean.mit.edu
TOWARDS THE FUTURE
(networked) enterprise
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 2
Creating a Holistic Approach to
Enterprise Transformation
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 3
7 Principles of
Lean Enterprise Thinking
1.
2.
3.
Adopt a
holistic approach
to enterprise
transformation.
Identify relevant
stakeholders
and determine their
value propositions.
Focus
on enterprise
effectiveness before
efficiency.
4.
5.
6.
7.
Address
internal and external
enterprise
interdependencies.
Ensure
stability and flow
within and across the
enterprise.
Cultivate
leadership
to support and drive
enterprise behaviors.
Emphasize
organizational
learning.
http://lean.mit.edu
© 2009
D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 4
Source: D. Nightingale and J.K Srinivasan,
MIT 2008
Lean Enterprise Transformation Roadmap
STRATEGIC
CYCLE
Determine • Articulate Business Case for Lean
Strategic • Focus on Stakeholder Value
Imperative • Leverage Lean Gains
Pursue &
Sustain
Enterprise
Transformation
Transformation Council
Strategic Implications of Transformation
• Monitor & Measure the Outcomes
• Nurture, Process, & Imbed
Nurture,
Process & Imbed Lean Culture
• Capture & Diffuse Lessons
Lean Enterprise
Learned
Thinking
• Synchronize Strategic
Long-Term & Short-Term Cycles
• Convey Urgency
Engage
• Foster Executive Lean Learning
Leadership in • Obtain Executive Buy-In
Transformation • Establish Executive Lean
Long-Term
Corrective
Action
PLANNING CYCLE
A Committed Leadership Team
Understand
Current
State
• Perform Stakeholders Analysis
• Define As-Is Value Stream
• Perform Enterprise Assessment
Implementation Results
Implement &
Coordinate
Transformation
Plan
• Develop Detailed Project
Implementation Plans
• Synchronize Detailed Plans
• Implement Projects and
Track Progress
• Commit Resources
• Provide Education & Training
Capabilities & Deficiencies Identified
Envision &
Design
Future
Enterprise
Short-Term
Corrective
Action
• Create Vision of Future State
• Define “To-Be” Enterprise
Value Stream
• Perform Gap Analysis
EXECUTION CYCLE
Lean Enterprise Vision
Create Transformation Plan
•
•
•
•
Identify Key Enterprise Improvement Project Areas
Determine Impact Upon Enterprise Performance
Prioritize, Select and Sequence Project Areas
Publish Communication Plan
http://lean.mit.edu
Alignment
Requirements
Identified
Source: Nightingale, Srinivasan and Mize
Align
Enterprise
Infrastructure
•
•
•
•
•
Align Organization
Align Incentives
Empower Change Agents
Rationalize Systems & Policies
Align Metrics
© 2009 D. Nightingale - ESD Symposium - Massachusetts Institute of Technology - 5
Lean Enterprise Self Assessment Tool
(LESAT)
Tool for executive selfassessment of the
present state of
“leanness” of an
enterprise and its
readiness to change
World
Class
As
ses
sm
en
t M
atr
ix
Downloaded over 3400 times
http://lean.mit.edu
1
2
3
Capability maturity model
4
5
Supporting materials
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 6
Enterprise Strategic
Analysis for Transformation
(ESAT)
77Engagements
Engagements
with
withIndustry
Industry&&
Government
Government
EVSMA
ESAT
Knowledge Exchange Events
ESAT
65+
65+Student
Student
Research
ResearchProjects
Projects
Knowledge
Exchange
Event
Army
ESAT
Sept. 2008
Ongoing
ESAT
An integrated, analytical framework
for diagnosing and improving overall Enterprise performance.
ƒ
ƒ
ƒ
Focuses on Enterprise-wide processes
Provides a cohesive method for diagnosing
an Enterprise to expose sources of waste
and barriers to value delivery
Considers the needs and values of all
enterprise stakeholders
http://lean.mit.edu
ƒ
ƒ
ƒ
Identifies process interfaces, disconnects,
and delays
Establishes an Enterprise vision for the
future
Identifies improvement opportunities that will
lead the enterprise to its future state
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 7
Enterprise Architecture Framework
Policy / External Factors
Process
Process
Organization
Organization
Products /
A
Services
Strategy
Knowledge
Knowledge
Information
Technology
Source: D. Nightingale and D. Rhodes
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 8
Enterprise Transformation Framework
7 Enterprise Principles
LESAT and
EA Framework
Assessment of
Current State and
Design of
Future State
ESAT
Methodology for Developing
Transformation Plan
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 9
Enterprise Principles Deployed in Action
Research and in Graduate Courses
•
Graduate Courses (project based)
• “Integrating the Lean Enterprise”
• “Enterprise Architecting”
• 65 cases
•
Enterprise Transformation Cases with executive
teams
• Industry
• Gov’t
• 9 cases
•
Multiple Domains and Industries
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 10
Transformation Case Studies
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 11
Transformation Case Studies
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 12
Enabling Enterprise Excellence
Discovery - Deployment - Renewal
Research Shapes
Deployment
Enterprise
Research
Transformation Knowledge
Deployment
We study Enterprises to
identify best practices,
transformation strategies and
future Enterprise
architectures
We transform research-based
knowledge into education,
products, knowledge exchange
events, and transformation events
Deployment Shapes
Research
Stakeholder-Centric Value Creation
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 13
BACKUP
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 14
LAI: A Consortium Dedicated To
Enterprise Performance
• Enable Enterprises to effectively, efficiently and reliably
create value in a complex and rapidly changing
environment
• Enable focused and accelerated transformation of
complex enterprises
• Collaborative engagement of all stakeholders in
Industry, Government and Academia
• Understand, develop, and institutionalize principles,
processes, behaviors and tools
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 15
LAI - Expanding Enterprise Focus
Increasing Total
Enterprise
Effectiveness
AN
E
FL
SE
I
PR
R
TE
N
E
O
N
TIO
U
OL
V
Successes
E
Operations
Functional lean
successes
• Manufacturing
• Supplier Networks
through
interaction
between
functions
Lean applied
to enabling
processes
• HR
“Islands” of Success • IT, etc.
1993
http://lean.mit.edu
NG
I
K
IN
H
T
Success
through
enterprise
integration &
application to
Product Dev
Transition from
waste
minimization to
value creation
Success
through total
enterprise
integration of
all
stakeholders
• Industry
• Government
• Suppliers
• Employees
Success
through
networked
enterprises
Expanding the
lean boundaries
• Suppliers
• Customers
• Partners
NOW
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 16
LAI Research Groups Address
4 Grand Questions
1.
2.
3.
4.
How can I understand
the way my organization
currently operates
within its larger context?
How can I
define and evaluate the
future possibilities
for a more efficient and
effective enterprise?
What are the most
effective strategies
and tactics to achieve
these future possibilities
for my enterprise?
How can I best
manage the
enterprise
change process?
EA-ET
LEPD
ESE
ECM
Enterprise Architecting
- Enterprise
Transformation
Lean Enterprise
Product Development
Enterprise Systems
Engineering
Enterprise Change
Management
FOCUS of RESEARCH
FOCUS of RESEARCH
FOCUS of RESEARCH
FOCUS of RESEARCH
• Enterprise Value Analysis
• Lean Product Development
• ESE Approaches
• Change Management
• Enterprise Architecting
• Lean Systems Engineering
• SE Effectiveness Indicators
• Enterprise Change Philosophy
• IT as Enterprise Enabler
• Lean Software
• Studies of ESE Practices
(with MITRE)
• Studies of Successful Change
• Enterprise Cost and Metrics
• Distributed Leadership
• Enterprise Modeling
http://lean.mit.edu
© 2009 D. Nightingale – Engineering Systems Symposium - Massachusetts Institute of Technology - 17