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The Business life model, an example of business engineering, is a tool created to help entrepreneurs, business people and academics build stronger business models.
Business Engineering is the development and implementation of business solutions, from business models, process and organizational structure to information systems and technology.
Key elements comprising business engineering require a deep understanding of several disciplines and areas:
A Business Model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.
In theory and practice, the term Business Model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture.
Step 1: Clarify What is to be Evaluated
Step 2: Engage Stakeholders
Step 3: Assess Resources and Evaluability
Step 4: Determine Your Evaluation Questions
Step 5: Determine Appropriate Methods of Measurement and Procedures
Step 6: Develop Evaluation Plan
Step 7: Collect Data
Step 8: Process Data and Analyze Results
Step 9: Interpret and Disseminate Results
Step 10: Apply Evaluation Findings
We discuss the “Internet of Things” (IoT) or the Digitization of Business Processes. Both include technical solutions as well as the business view.
IT has to be “business aware” the same way as business has to be “technology aware”. Business and IT together need to evaluate the use of technologies for better business solutions solving business problems.
System descriptions, system requirements, connection between systems and business capabilities are in the scope of Model-Based Business Engineering. Special requirements for Business-IT-Systems are part of the approach. The development and description of the systems is not in focus. Different model-based approaches exist for this as the Model-Based System Engineering (MBSE). We understand Model-Based Business Engineering as complementary to such approaches.
We Understand Model Development For Business as an Engineering Discipline. This means:
• We can plan it
• The quality of our models can be measured
• Model development is comprehensible and repeatable
• Models can be maintained and used long term
• Design decisions are made with a reason
This should be obvious but isn’t so in daily practice. The request to produce models in a comprehensive and repeatable way causes discussions. We expect that the resulting models are comparable if they are based on the same information independently which team member created them. Modeling is a creative activity. The models will not be identical. We maybe do different design decisions resulting in different models. That’s why capturing this information is essential.
Business Engineering is not a one-time effort. Processes and capabilities need to be improved continuously to stay competitive. We monitor processes and measure key performance indicators based on our models. We change processes and capabilities based on this results.
Continuous Improvement of Business Processes And The Organizational Context bring the danger that models and reality are no longer in sync after some time. We have to make sure both stay in sync or we risk to lose our investment in the models. Hence, we define Governance Rules and processes for the maintenance of our models. Governance may be the most advantageous aspect of any type of business model.
Business Process Re-Engineering (BPR) is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and business processes within an organization.
BPR is aimed to help organizations fundamentally rethink how they do their work in order to improve customer service, cut operational costs, and become world-class competitors. BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes.
According to early BPR proponent Thomas H. Davenport (1990), a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of sub-processes.
Business process reengineering is also known as business process redesign, business transformation, or business process change management.
In information technology (IT) project management, there are different project management methodologies, Waterfall and the Agile Frameworks.
The traditional methodology, Waterfall has a much more structured format and could be less adept for new and upcoming industries which tend to be more flexible. This is where the Agile framework take the lead and are more nimble. Change Management is handled differently in an Agile environment versus a Waterfall environment.
In a Waterfall environment, the phases involved would be Initiate, Plan, Execute, Monitor and Control, and Close. In this case, not much can be done once an issue presents itself during the project, and if something needs to be done to the project to fix any issues, the timeline of the entire project could be pushed back which could have other effects on the budget.
A Change Request can be submitted to address the change. When the change request form is submitted, it is then reviewed, impacts to the budget, scope and schedule analyzed before it is approved and then implemented.
In an Agile environment, the approach is very different, and makes use of the iterative process to manage changes more efficiently. If a change is discovered during a Sprint, it is recorded as a Product Backlog item and placed in the Product Backlog. From there, it is prioritized and estimated for a future Sprint.
Change Assessment and Monitoring in an Agile Environment
When managing the change logs in an Agile environment, it is a continuous process, and is assessed for each sprint. The issues are being assessed in the beginning of the meeting, brainstorming of some mitigation processes, and all of that information is recorded and accounted for and can be used in the next sprint.
The Agile team does a group brainstorming session to discover what might occur in the project and is followed by an analysis of why each event may occur. After the changes have been identified, they are recorded in the Product Backlog and be accessible to the members of the team. If something is omitted, missed, or skipped, it is easier to spot it, account for it, or it is brought up again in an upcoming sprint. If an issue is not accounted for during one sprint, it can be caught and brought up during the next sprint.
The change prioritization makes it a lot manageable as a risk or an issue that is prevalent in this sprint can be taken care of in a short time, and much more efficiently while checking to see that it has been mitigated several steps before the final product. The change can be handled quickly and efficiently such that the over timeline of the project stays the same.
Winter, Robert. (2002)
Digital Transformation (DT or DX) is the adoption of digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. Digital solutions may enable – in addition to efficiency via automation – new types of innovation and creativity, rather than simply enhancing and supporting traditional methods.
One aspect of digital transformation is the concept of 'going paperless' or reaching a 'digital business maturity' affecting both individual businesses and whole segments of society, such as government, mass communications, art, health care, and science.
One example of digital transformation is the use of cloud computing. This reduces reliance on user-owned hardware and increases reliance on subscription-based cloud services. Some of these digital solutions enhance capabilities of traditional software products (e.g. Microsoft Office compared to Office 365) while others are entirely cloud based (e.g. Google Docs).
As the companies providing the services are guaranteed of regular (usually monthly) recurring revenue from subscriptions, they are able to finance ongoing development with reduced risk (historically most software companies derived the majority of their revenue from users upgrading, and had to invest upfront in developing sufficient new features and benefits to encourage users to upgrade), and delivering more frequent updates often using forms of agile software development internally. This subscription model also reduces software piracy, which is a major benefit to the vendor.
OPPORTUNITIES & CHALLENGES
Digital transformation presents organizations with both major challenge and opportunity. When planning for digital transformation, organizations must factor the cultural changes they'll confront as workers and organizational leaders adjust to adopting and relying on unfamiliar technologies.
Digital transformation has created unique marketplace challenges and opportunities, as organizations must contend with nimble competitors who take advantage of the low barrier to entry that technology provides.
Additionally, due to the high importance given today to technology and the widespread use of it, the implications of digitization for revenues, profits and opportunities have a dramatic upside potential.
In November 2011, a three-year study conducted by the MIT Center for Digital Business and Capgemini Consulting concluded that only one-third of companies globally have an effective digital transformation program in place.
A report published in 2013 by Booz & Company warns that the impact of digitization "is not uniform". This points out that some sectors and countries have taken to digitization more readily than others. It concludes that "policymakers need to develop digitization plans across sectors that take into consideration the varying impact by level of economic development and sector."
In 2015, the World Economic Forum and Accenture launched the Digital Transformation Initiative (DTI) to study and research the impact of digitalization. The initiative offers unique insights into the impact of digital technologies on business and wider society over the next decade. DTI research supports collaboration between the public and private sectors focused on ensuring that digitalization unlocks new levels of prosperity for both industry and society. A 2017 interim report claims that digital transformation "could deliver $ 100 trillion in value to business and society over the next decade."
A 2015 report by MIT Center for Digital Business and Deloitte found that "maturing digital businesses are focused on integrating digital technologies, such as social, mobile, analytics and cloud, in the service of transforming how their businesses work. Less-mature digital businesses are focused on solving discrete business problems with individual digital technologies."
In February 2017, a study by McKinsey & Company argued that "On average, industries are less than 40% digitized, despite the relatively deep penetration of these technologies in media, retail, and high tech". This study also points out the inequality in the penetration of digital change across industries, arguing that while in some industries there were core changes due to digitization, in others the impact of this phenomenon was limited to minor or secondary changes.
In July 2017, a survey of 1239 global IT and business professionals was released by the digital performance management company Dynatrace. While this study shows, that 48% of its participants "stated digital performance challenges were directly hindering the success of digital transformation strategies in their companies", the survey also refers to 75% of respondents, "who had low levels of confidence in their ability to resolve digital performance problems."
In October 2017 a survey of 890 CIOs and IT Directors across 23 countries by Logicalis Group established that 44% of respondents felt complex legacy technology is the chief barrier to digital transformation, with 51% saying they planned to adapt or replace existing infrastructure as a means of accelerating digital transformation.
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