UTA/ARRI
Enterprise Engineering
for
The Agile Enterprise
Don Liles
The 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
UTA/ARRI
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
An Enterprise is a complex system of cultural, process,
and technology components
that interact to accomplish organizational goals.
Enterprise
... a system engineered to accomplish organizational goals ...
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Definition: Enterprise Engineering
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.
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The Enterprise Engineering View
An Enterprise is a complex system of cultural, process,
and technology components
that interact to accomplish organizational goals.
A System that CAN be engineered!
Engineered to be agile …
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The Enterprise Engineering View
“What Do Engineers Do?”
•
•
•
•
Build Models of Systems
Analyze and Manipulate Models
“Discover” and Develop New Designs
Implement Designs
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Enterprise Engineering
The Enterprise is a system that can be
engineered ...
Methods of Representation
and Modeling
Methods for Analysis
and Design
Methods for Implementation
Enterprise Theory
... using a set of Enterprise Engineering
Principles and Practices.
UTA/ARRI
Enterprise Engineering
The Enterprise is a system that can be
engineered ...
Methods of Representation
and Modeling
Methods for Analysis
and Design
Methods for Implementation
Enterprise Theory
... using a set of Enterprise Engineering
Principles and Practices.
UTA/ARRI
Enterprise Theory
An Enterprise is a complex system of cultural, process,
and technology components
that interact to accomplish organizational goals.
Enterprise
... a system engineered to accomplish organizational goals ...
UTA/ARRI
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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Enterprise Theory
Fundamental Processes
The Enterprise is a system that has certain
basic processes.
Enterprise
• Set direction
• Acquire resources
• Manage financial
assets
• Acquire customers
• Develop product
and process
• Fulfill orders
• Support customer
and product
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Enterprise Theory
Agile/Virtual Enterprise
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
Enterprise A
Enterprise B
Enterprise C
... rapidly assembling core capabilities
so as to optimize the system
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Enterprise Theory
Agile/Virtual Enterprise
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
Enterprise A
Enterprise B
Enterprise C
Enterprise Y
Enterprise W
Enterprise X
Enterprise Z
Integration of Internal and External Processes
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Enterprise Theory
Multiple Enterprises Adds Complexity
Overlapping requirements
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Enterprise Engineering
The Enterprise is a system that can be
engineered ...
Methods of Representation
and Modeling
Methods for Analysis
and Design
Methods for Implementation
Enterprise Theory
... using a set of Enterprise Engineering
Principles and Practices.
UTA/ARRI
Modeling
Organizational
View
Activity
View
Process
View
Resource
View
Business Rule
View
Activity:
Process :
Organizational:
Business Rule:
Resource:
Functions performed by enterprise (what is done)
Time sequenced set of processes (how it is done)
How the enterprise organizes itself
Defines the entities managed by the enterprise and the
rules governing their relationships
Details the resources managed by the enterprise
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Activity View
“Organic View”
Resources C2
Corp. Policies & Directives C3
Environment C1
I3
I4
Plans
and Policies
Direct
Enterprise
Customer Data
Industry Data
Performance
Reports
O3
A1
I1
Capital
Informal
Feedback
I2 Revenue
Manage
Assets
A2
I5 Orders/Customer Build Packages
Asset
Info
Stockholder
Returns
O1
Prepared
Assets
Acquire
Customers/
Orders
Market/
Customer
Info
Proposals/
Offerings
O2
Product
Development
Information
A3
Requests for
Assets
Product/
Process
Needs
Design
Products/
Processes
Build
Packages
O4
Part & Product
Information
A4
Operation
Status
Fill Orders
I6
Acquired Items
Product
O5
A5
M1 Assets/Partner Capabilities
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Building an Activity Model
Work
Order
Blueprint
Schedule
"CONSTRAINT"
"INPUT"
"OUTPUT"
"Activity"
Fabricated
Part
Raw
Materials
Make Part
Scrap
“RESOURCE"
Tools
Machines
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Building an Activity Model
•
•
•
•
•
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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Building an Activity Model
Kits with Reactions from Author
Step 3
Author
Kits
Step 1
Readers
Kits with Comments from Readers
Step 2
The Author Reader Cycle
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Process View
Start
Request
Advising
Packet
Make
Appointment
with Advisor
Meet with
Advisor
Enroll
Student
Review Status
and Prepare
List of Proposed
Courses
Undergraduate
Advisor
Admin
Prepare
and Deliver
Advising
Packet
Advise Student
and Complete
Advising Packet
Electronic
Record of
Enrollment
Release for
Enrollment and
Copy Packet for
Student and Files
File Packet
and Update
Student
Record
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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.
Constraints
Inputs
A time sequenced
set of actions
Outputs
Resources
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Business Rule View
Constraints
Inputs
If “X” then “Y”
Outputs
Resources
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Resource View
Activities
Resources
What are the people and technology resources
needed to accomplish enterprise objectives?
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Information, Results
Direction, Resources
Organizational View
The Organization is how we
deploy “constraints”.
Who owns what resource?
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Enterprise Engineering
The Enterprise is a system that can be
engineered ...
Methods of Representation
and Modeling
Methods for Analysis
and Design
Methods for Implementation
Enterprise Theory
... using a set of Enterprise Engineering
Principles and Practices.
UTA/ARRI
The Enterprise Engineering View
Enterprise
Vision and
Strategies
Enterprise
Processes
... a system of people,
processes, and
technology engineered
to accomplish
organizational goals
People
Technology
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The Enterprise Engineering View
Internal and External
Environment
Transforming the
Enterprise
Constrains
and Enables
Enterprise Vision
Category 1
Templates
Category 1
Templates Category 3
Category
EP31
EP1
Templates
Templates Category 3
EP31
Category
Templates BP4
EP2
Templates Category 3
EP3
Templates BP4
Category 3
Templates EP5BP4
Category 2
BP6
BP6
Process
Improvement
Strategy
Technology
Strategy
Cultural
Change
Strategy
BP6
EP1
BP6
EP1
EP2
BP3
BP1
EP2
Templates
Category 2
Templates
Category 2
Templates
Category 2
Templates
EP5
BP4
BP2
EP5
BP5
Transformation
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Enterprise Transformation
Develop Vision
& Strategy
A Plan for
Transformation
Create Desired
Culture
Integrate &
Improve Enterprise
A Design Guide
Develop
Technology Solutions
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Enterprise Transformation
The
Enterprise
The Enterprise
Excellence
Methodology
Corporate
Culture
A Comprehensive
Enterprise
Engineering
Methodology
Strategic
Goals
The
Enterprise
Enterprise
Processes
Technology
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Develop Vision & Strategy
Strategic
Goals
A coherent vision with supporting
strategies provide the guiding
principles for engineering and
operating the enterprise.
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Develop Vision & Strategy
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
Assess
Environment
Develop & Deploy
Integrated
Transformation
Plan
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Create Desired Culture
Corporate
Culture
“The way we do it around here”
must be aligned with the vision of
the company.
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Create Desired Culture
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
Improve &
Involve People
Align Administrative
Systems
Align Social
Interaction
Build & Align
Leadership
Improve
Communication &
Trust
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Integrate & Improve Enterprise
Enterprise
Processes
The Enterprise and its processes
must be made fundamentally better
to compete in today’s world.
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Integrate & Improve Enterprise
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
Design &
Implement
Effective
Controls
Understand &
Improve the
Product
Understand
& Improve
the Process
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Integrate & Improve Enterprise
Enterprise
Processes
Understand the
Customer
Design &
Implement
Effective
Controls
Understand &
Improve the
Product
Understand
& Improve
the Process
• Bound processes and
identify relationships
• Document and
analyze process
• Design improved
process
• Implement improved
process
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Develop Technology Solutions
Technology
Enabling technology must be
consistent with the vision and must
only be used to solve real problems.
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Develop Technology Solutions
Technology solutions are developed to accomplish defined needs
in support of higher level business plans and strategies.
Understand
Needs
Develop & Deploy
Solution
Evaluate Alternatives
& Select Solutions
Develop Decision
Criteria
Develop Alternative
Solutions
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Enterprise Transformation
Putting it
Together
Strategic
Goals
Corporate
Culture
The
Enterprise
Technology
Enterprise
Processes
A system of people, processes and
technology designed to accomplish
organizational goals
UTA/ARRI
Enterprise Engineering
The Enterprise is a system that can be
engineered ...
Methods of Representation
and Modeling
Methods for Analysis
and Design
Methods for Implementation
Enterprise Theory
... using a set of Enterprise Engineering
Principles and Practices.
UTA/ARRI
Justification Methodology
Identify System
Impact
A Comprehensive
Approach
Identify Transition
Impact
Estimate Costs and
Benefits
Perform Decision
Analysis
Integrates
Financial and Strategic
Considerations
Audit Decision
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Justification Methodology
Design Alternative 3
Model Impact on
Enterprise
Define Design
Alternatives
Decision A
Design
Alternative
2
Decision
B
Decision A
Design
Alternative
1
Decision
B
Decision A
Decision B
Enterprise A
Enterprise B
Enterprise C
Cost
Quality
Delivery
Alternative 3
Alternative 2
Evaluate
Impact
Alternative 1
Analyze Impact
X
X
X
X
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Justification Methodology
Define Design
Alternatives
Model Impact
Next Generation
Technology
Activity Modeling
Process Modeling
Flow Charts
Layouts
Analyze Impact
Simulation
Activity Based Costing
Statistics
QFD
Multi-Attribute Evaluation
(UTA developed)
Evaluate
Impact
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Conclusion
An Enterprise is a complex system of cultural, process,
and technology components
that interact to accomplish organizational goals.
Enterprise
... a system engineered to accomplish organizational goals ...
UTA/ARRI
Conclusion
The Enterprise is a system that can be
engineered ...
Methods of Representation
and Modeling
Methods for Analysis
and Design
Methods for Implementation
Enterprise Theory
... using a set of Enterprise Engineering
Principles and Practices.
UTA/ARRI
Conclusion
Internal and External
Environment
Transforming the
Enterprise
Constrains
and Enables
Enterprise Vision
Category 1
Templates
Category 1
Templates Category 3
Category
EP31
EP1
Templates
Templates Category 3
EP31
Category
Templates BP4
EP2
Templates Category 3
EP3
Templates BP4
Category 3
Templates EP5BP4
Category 2
BP6
BP6
Process
Improvement
Strategy
Technology
Strategy
Cultural
Change
Strategy
BP6
EP1
BP6
EP1
EP2
BP3
BP1
EP2
Templates
Category 2
Templates
Category 2
Templates
Category 2
Templates
EP5
BP4
BP2
EP5
BP5
Transformation
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