G1RD-CT-2002-00698 e-Volution II – Road map for e-business implementation in Extended Enterprises

1. G1RD-CT-2002-00698e-Volution II – Road map for e-business implementation in Extended Enterprises Final Project Review VOL.3 15 April 2005

2. Annex: Details of technical results • Methodology • Software tool-kit • OrganisationAnalyser • MarketAnalyser • StrategyBuilder

3. Annex: Methodology

4. e-business roadmapping methodology concept Purpose and objectives Concept Structure Technical realisation Innovations

5. Methodology purpose • Reducing risks, uncertainties, incompatibilities within the scope of strategic e-business planning in horizontal/vertical value chains • Know-how transfer of business planning processes and methods to SMEs • Making e-business accessible to enterprises as basis for realisation of Extended Enterprise concept • Enhancement of e-business implementation along inter-enterprise value chain

6. Methodology objectives Specific objectives addressed • consideration of e-business life cycle in Extended Enterprises • Value/supply chain focus • simple and efficient to use and traceable results • easy to learn to enable user to repeat and replicate the process for use case specific constellations • industry independent, flexible in its application and applicable in different environments • accommodation of existing resources and varying constraints inside the Extended Enterprise • Use of roadmapping approach

7. Roadmapping – process to develop the roadmap • creative analysis method: forecasting, finding, analysing, assessing and visualising future development paths of products, services, technologies, and business at all • systematic registration and grouping of expertise knowledge, coordination of different opinions • logical and consistent method for organisations to decide where to focus and invest resources • structured mechanism for organisations to forecast developments and how they need to react to them • ideal for collaborative planning and strategy coordination in an EE • Methodology: integration framework for activities, methods, tools, know-how e-business roadmap is time-based plan that defines where an entity is, where it wants to go, and how it can get there (e-business strategy)

8. Methodology concept Key principles and design guidelines • Business objectives satisfaction: contribution of e-business to the realisation of business objectives • Value chain focussing: analysis of the whole supply and value chain • E-business opportunity identification: enterprise and E2 potentials, e-business bottlenecks (b2b, b2c, b2a) • Adaptability and flexible use: framework, open for case specific adaptation und use • Interactive, participative and thorough: collaboration of value chain partners to complete the process of e-business strategy formulation • Modular: guideline for realisation of e-business (ICT and organisation), tool support • Integrative: proofed and innovative methods and instruments from academia and business world

9. Methodology structure • Roadmapping approach • (Reference) process model • Thematic modules • Integrated in common business life cycle models • Supporting components

10. Technical approach for methodology structure design Process (reference) model • structural design follows general process description models (series of tasks and activities, using methods) • Design of hierarchical, open model that formalises and systemises this process -> process reference model • formal, standardised description of management processes • framework of relationships among • standard processes and metrics to measure process performance, management practices • (re-)configurability • Professional model design with ARIS tool-set from IDS Scheer company

11. Module 1: Definition of strategic enterprise business objectives Purpose • Methodological approach and supporting software tool for definition of enterprise’ system and hierarchy of business objectives, from vision down to quantified strategic objectives, as basis for any entrepreneurial acting and collaborative business in an EE constellation Fields of application • strategic enterprise positioning • strategic enterprise planning • development of corporate enterprise identity • business model specification • enterprise presentation and business purpose communication

12. Module 2: Organisation analysis Purpose • Methodological approach for resource based EE analysis • Identification of e-business use, practices and potentials based on organisational ‘hard’ und ‘soft’ facts • Identification of organisation related strengths and weaknesses as basis for e-business strategy development within the scope of EE concept realisation Fields of application • Business goal system definition • analysis of organisational, technological and human e-competences • core competence analysis as basis for realisation of competitive products and services • strategic forecasting and early warning analysis • collaborative and transparent EE benefit definition

13. Purpose • Methodological approach for market based strategic situation analysis • Identification of market related opportunities and threats as basis for e-business strategy development within the scope of horizontal EE concept realisation as well as on enterprise level (vertical EE) Fields of application • product, market, customer analysis for markets segmentation as basis for collaborative e-business model • competitor analysis • market attractiveness analysis for products / strategic business units • analysis of enterprise’s relative competitiveness with special focus on e-business related issues • target market search for extended products/services resulting from the EE business model (e.g. vertical EE) Module 3: Market analysis

14. Module 4: e-business strategy and roadmap formulation Purpose • Methodological approach and supporting software tool for synthesis of results from market and resource based strategic business analyses for EE e-business strategy and roadmap development Fields of application • EE business objective definition • EE business model specification (EE entities, value chain structure, hierarchy of strategic business objectives) • e-business TOWS-analyses • e-business strategy formulation (goals, targets, measures, resources) • traceable e-business strategy assessment and selection • e-business implementation roadmap definition • e-business strategy implementation controlling with Balance Score Card (BSC)

15. Methodology innovations 1/2 • Roadmapping: new application field for e-business strategy design • Integration: macro and micro environmental analysis as basis for e-business strategy design • Collaboration: philosophy of collaboration between EE partners in the analysis and decision making process for EE e-business strategy • Measures: well-funded decision making and basis for realisation monitoring and controlling • Reference model: process model as first step towards a reference process model; a formal, standardised description of management processes

16. Methodology innovations 2/2 • Modularity: process model as framework for integration, revision, update and advancement of thematic components • Thoroughness: Completeness is not to reach, but the approach covers the whole process from idea to e-business strategy formulation • Use case adaptation: user is guided through e-business roadmapping process, can instantiate own process, finds help in terms of methods, guidelines, and tools • EE meta business model specification: modelling of any kind of EE business constellation with generic business object type (BOT) model for consolidation of business system and software system view

17. Modules 4+: Forecast • Modules 1-4 provide basic inputs for Requirements, Design, Implementation and Operation phases but without providing an integrated methodological approach • But by its nature, reference model approach and principle of modularity, extension of the current methodology and underlying model to these phases is possible

18. Requirements Support function From the extended work plan: new, innovative approach for e-business implementation by harmonisation of different business models and views Value chain Extended Enterprise Business system view + = Software system view Based on: David A. Taylor: Business engineering with object technology. 1995 • Business and organisation driven process design instead of software driven • Development of a concept for e-business holistic e-business implementation preparation – from idea to design

19. Tool-supported methodology for e-business requirement specification and design in the EE based on business object type (BOT) model specification Organisation types • Business, organisation, entities (attributes: e.g. role, responsibility) Target types • Targets, target clusters, BSC perspectives • ratios, key performance indicators Process types • Core processes, business processes, activities, actions Resource types • Employees, machinery, IT infrastructure • Products, product types, parts Utility types • All types that do not fit into the other categories, e.g. location • Software suite for use case specific model instantiation

20. Next step after business model instantiation – software design • Data Model Designer (prototype of IMS company) creates running software applications with database independent persistence and independently from the operative system based on BOT-model • little programming efforts • cost effective design of individual software solutions XML Config File (D)

21. Annex: Software tool-kit OrganisationAnalyser MarketAnalyser StrategyBuilder

22. Content Service Provider http://www.cybion.it/evo/home.htm Software tool-kit • Tool-kit access point • Content Service provider • OrganisationAnalyser • MarketAnalyser • StrategyBuilder • ProjectManager (2) (4) (5) (1) Online tool-kit http://hephaestus.infoproject.com.gr/evo/evotoolisapi.dll/ Login: evodemo Password: p455s (3) (6)

23. Annex: OrganisationAnalyser

24. Management Summary of Organisation Module Objectives and expected results • identification of all organisational aspects which have affects on the development of an e-business strategy • support of the decision making process with respect to the cooperation specialties within Extended Enterprises • Building up the basis to define strength and weaknesses as internal Revision measures • clear description how the OM supports EEs eBusiness Strategy finding process • clear description how each EE partner is involved and how with relations to the tool kit • clear presentation of the added value of the OM Results • more transparent description of the involvement of the EE partner • more clear description of the added value of the OM for the EE

25. Innovation Produktnutzen Prozeßqualität Zeit Flexibilität Ökologie (-betrachtung) Ökonomie Goal-oriented potential analysis as prerequisite for the development of e-business strategies Potential analysis gathering of symptom data analysis of causing data human technology plausibility of goals potential identification definition of design approaches organisation goal system EE core aspects

26. Thesis 1: What has to be part of the Organisation Module The ORGANISATION MODULE APPROACH concludes the following core topics: ORGANISATION: GOALS ORGANISATION: BUSINESS PROCESSES ORGANISATION: CORE COMPETENCES ORGANISATION: CORPORATE AND eBUSINESS STRATEGY ORGANISATION: PRODUCTS AND SERVICES HUMAN: COMPETENCES AND ABILITIES TECHNOLOGY: eBUSINESS ABILITIES Human internal analysis Organisation Technology

27. Thesis 2: Special quality of defining organisational strengths and weaknesses in extended enterprise structures demands special quality of information gathering and processing potential strengths and weaknesses potential chances and risks Organisation Analysis Market Analysis GOAL definition CORE COMPETENCES analysis and definition CORPORATE AND eBUSINESS STRATEGY analysis COMPETENCES (ABILITY and CAPABILITY analysis) eBUSINESS ABILITIES definition … market size analysis product range analysis turnover and profit analysis market growth analysis … mostly qualitative facts and creative work mostly quantitative figures and calculations

28. vertical Extended Enterprises horizontal Extended Enterprises final producer end user 2nd tier supplier 1st tier supplier final producer end user market market • value chain • supplier – customer dependencies • each stage adds value to the material till the final product • information flow follows the material flow • one OEM as interface to the end-user market • example: German Test Case • combination of competencies, services and products to a new service / product for the final customer • each partner has potentially direct contact the end-user market • partner serve same market • example: Italian test case Thesis 3: Differences in EE architecture have to be considered

29. Thesis 4: The organisation analysis has to be as adaptable as the different EE architectures and characteristics require Characteristic Starting point The initialising company knows his competencies exactly and has an idea e.g. for a new product. Who could be a good strategic partner to realise this idea and how has the eBusiness organised? Strategic Network Companies know each other competencies and develop together (based on the competencies) a new idea, e.g. a new product. How looks the optimal eBusiness strategy? Regional Network A company knows their own products. This company has an idea, how their own products could be better sold with, e.g. an extension of services, individualised parts. Which partner can give order-related added value and how has the eBusiness be organised? Virtual Enterprise A broker brings supplier and OEM together to one EE. How should be the optimal eBusiness strategy designed to support such organisation? Holonic Network

30. Thesis 5: Different participant roles have to be considered independently from the architecture Kinds of co-operations as basis to have a view on EE constallations Virtual Enterprise Strategic Network Designer • Co-operations are the first status of EE • There are a lot of different theoretical kinds of cooperation networks • In practice (at least from our experience), all of them have in general two kinds of partner: DistributorProducerLogisticSupplier Supplier Manufacturer Broker Distributor Supplier • operative partner: • is involved in the EE • supports the EE activities • acts reactively! • coordinating partner: • driving force of the EE • mostly one partner, the strongest and / or the partner with direct end customer contact • acts proactively • is managing / navigating the EE Regional Network Holonic Network Supplier Logistic manufacturer manufacturer Distributor Source: following Wiendahl, H.-P., et. al (1997) Coordinator

31. Thesis 6: Special Quality of project work in Extended Enterprise Structures requests special technical support for efficient work project work in a company project work in distributed organisations • same enterprise culture • same project culture • same overall goals • same understanding of processes • people know each other • short distances • … • different enterprise cultures • different project cultures • different overall goals • different understanding of processes • people don’t know each other • long distances • … physical meetings most effective even if they are not in depth prepared or if only some points have to be discussed physical meetings are only effective if they are well prepared and if decisions can be made short physical meetings in short, regular intervals punctual physical meetings only if results available, extensive use of ICT network structure

32. given by individual strategy given by individual strategy given by individual strategy goal definition of the EE given by individual strategy given by individual strategy given by individual strategy goal prioritisation individual analysis individual analysis individual analysis alignment if value adding fits given by individual organ. given by individual organ. given by individual organ. definition on EE level individual analysis individual analysis individual analysis elimination of big differences Vertical Extended Enterprises – different levels of information gathering 2nd tier supplier (operative partner) 1st tier supplier (operative partner) OEM (operative partner) EE level (co-ordinator) goal definition goal prioritisation process prioritisation core competence analysis eOrganisation definition eBiz abilities process prioritisation

33. given by individual strategy goal definition of the EE given by individual strategy goal prioritisation individual analysis adjustment on each other (in SWOT) given by individual organ. definition on EE level individual analysis elimination of big differences Horizontal Extended Enterprises – different levels of information gathering OEM (operative partner) EE level (co-ordinator) final producer end user goal definition goal prioritisation process prioritisation core competence analysis eOrganisation definition eBiz abilities process prioritisation

34. Similarities and differences of the kinds of EE organisations • information gathering to identify strength and weaknesses on EE level are almost the same on vertical and horizontal EE organisations • There is a small difference in having a view on the single competencies of the partners within the EE: • in horizontal EEsWhat kind of new products / services are possible with the competencies of each partner? • in vertical EEsDo the core competencies of each partner in the single stage of the value chain fit to the needed task/added value for the EE? • Ergo: • individual competence analysis could be important for the SWOT – no direct impact on OM on EE level • core competence alignment in horizontal EEs is important for OM

35. The definition of involved participants and their individual roles decide essentially about project success possible roles within Extended Enterprises projects project client project responsible project leader project participant project affected … tasks to fulfil coordination steering reporting information gathering and aggregation decision preparation given‘ expertise ... clear definition who does what at what time with what result Supported by the system through freely adaptable user accesses made with an extensively developed user manager

36. General approach to analyse the EE organisation tasks for organisation analysis self-similar basic steps to analyse organisation analysis results creative aggregation definition of pot. S/W GOAL definition CORE COMPETENCES analysis and definition CORPORATE AND eBUSINESS STRATEGY analysis COMPETENCES (ABILITY and CAPABILITY analysis) eBUSINESS ABILITIES definition …. EE goal definition EE goal prioritisation target process prioritisation individual and EE core competence analysis eOrganisation analysis eBiz abilities analysis … S Strategy Builder W

37. Methodology – as simple as possible to create room for creativity tasks for organisation analysis methodological structure to gather and process information 1 level 2 level 3 level GOAL definition CORE COMPETENCES analysis and definition CORPORATE AND eBUSINESS STRATEGY analysis COMPETENCES (ABILITY and CAPABILITY analysis) eBUSINESS ABILITIES definition task (questionnaire) project (interview) topic (question) task topic task topic topic … topic … aggregation visualisation aggregation visualisation

38. OrganisationAnalyser software Common features • data and information collection tool for decision preparation in decentralised structures instead of resource and time consuming business travels, meetings • Web-based for decentralised, timely independent processing; • Online (Internet und Intranet) and offline (local) use scenario; • Professional user and project (interview) management; • Scalability (number of users and interviews) • Freely customisable interview projects; • Extensive question type method library; • Analysis and reporting functionalities e-volution features • Support of creative strategy development processes EE networks • Analysis tool for • EE strategy level (hierarchy of business objectives) • EE socio-informal level (competences and abilities) • Information level (competences and IT-infrastructure)

39. Definition of the sequence of steps to analyse project individual data gathering and processing and the assignment of users / user groups to single project steps - German user interface tasks and topics sequence definition definition of users / user groups and email invitation

40. Methodology - How to proceed one task with the organisation analyser (basic steps)

41. Functionalities of the tool kit gives as much support as possible to support repetitive, standardised processes during the organisation analysis • extensive user administrator to support individual participant role definition • knowledge library to support knowledge transfer about previously used project contents, structures, and expertise • design of structured questionnaires • with all kind answer options (open and closed questions, multiple choice, single choice, multidimensional) • any possible substructures • involvement and exclude of single people or entire groups • option to actively inform the participants by integrated email-functionality • option to restrict of the data gathering on a defined time frame • active tracing of gathered information and remembering of pending persons • individual data processing • by provided standard visualisations • or export to MS Excel and its data processing options • reporting functions to the involved persons about the achieved results • definition of potential strengths and weaknesses and their transfer to the Strategy Definition Module overview running projects project creation user admin user admin • project leader interface • projects • tasks • evaluation options • editing options

42. Fast overview over the collected information by providing basic management information and different kinds of standard visualisation • Multidimensional answers: • x-axis • y-axis • size of point • colour of point sum of answers to pursue pending persons kind of standard visualisation (portfolio, chart, etc.) standardised data export for individual data processing aggregated data individual data

43. Critical factors in working with the OrganisationAnalyser • Missing experiences in project management leads often to double work, pending results or overloading of budgets and time resources • A not clear defined starting point (e.g. goals and partners are already defined) leads to double work and to frustration / demotivation of the participant • Unclear definition of the to be involved participants and their individual roles causes delays in the progress by unnecessary process loops or wrong output through missing/wrong data base • Unclear definition of milestones and decisions to be taken leads to unnecessary meetings or delays due to late decisions or wrong project development directions • Sticking too much on the software reduces the awareness of the need of essentially needed creative work

44. Management summary - OrganisationAnalyser results and innovation in methodology Development of the Organisation Analyser which • has standardised methodology which can be individually adopted independent from kind of EE, characteristic, size, branch, etc. • methodology is theoretically proofed that it is independent usable from characteristic, size, branch, etc. • can be adopted to the starting point of eBusiness strategy development depending from the characteristic • development of structured steps in the principle of self-similar layer which simplifies the project work • active integration of ALL task-relevant persons within the EE by defining their individual role • development of the critical factors to provide experiences and to avoid mistakes • methodology is open for any extension (in terms of amount of partners, regions, processes) in the tasks of data gathering, aggregation and analysis • providence of an integrated knowledge management • the simplicity of the methodology and its IT-support is the most important strength the simplicity of the methodology and its IT-support is the most important strength

45. Management summary - OrganisationAnalyser results and innovation in tool kit application Development of the Organisation Analyser which • IT-support as simple as possible to give room for creative work • supports standardised processes and can be combined with non-it-supported project steps • corresponds IT-support to the requirements of project work in EE organisation structures • approaches a web-based application with respect to the distributed organisation structure of EE • knowledge library for know-how transfer • adaptable for any kind of information gathering • structured approach for information aggregation (standard export to MS excel for individual data processing) • individualised aggregation and visualisation • possibility to clearly define roles within the project to support successful project management • place and time independent active integration of ALL task-relevant persons within the EE • standardised reporting options • Increase project efficiency by reduction of efforts (travel, time) to produce decisions and results between the EE partners • can be used as stand alone solution or integrated in the eVo tool kid or other due to standardised interfaces the simplicity of the methodology and its IT-support is the most important strength

46. Requirements on a multi-project management support in EE organisation structures • use of simple instrument • basic functionalities to steer and report projects • no installations or additional software • high usability (not a second SAP-PLM or MS project!) • enabling of operationalisation of defined strategies into projects • system which is close to business habits e.g. in reporting • possibility of specific adaptations • included basic functionalities (roles, kinds of projects, etc.)

47. Integrated criteria for an effective project management – not always basics, especially when companies with different cultures and attitudes are working together • project goals: What concrete and measurable goals shell the project meet? • sub goals / milestones: What are the interim steps to realise the overall goal? what are the milestones and their dates? • activities: What concrete activities have to be made to meet the defined interim steps / milestones? What is the schedule of these activities? Who is when and for what involved? • results / output: What are the results the project will cause? What is the sequence of the results and their schedule?

48. A good definition of roles support strongly a successful project management … for project manager / leader: simple and fast creation and editing projects online work and documentation during project meetings fast creation of reports overview over all stati of all projects on the different levels download of minutes and project relevant data to provide them to the participants … for project participants: source for latest project relevant data and information standardised frame for efficient work in several projects … for management / decision maker: overview over all stati of all projects on the different levels and history (place independent) standardised reporting

49. General entry into the OrganisationAnalyser starts always with the first view on open tasks to do The project manager is due to the time restrictions and its only use in German test cases is still in German language

50. ProjectManager as support tool to transfer e-business strategies into e-business projects in EE organisations (project responsible view) general project information overview over my projects new project archive kind of project types project print overview as basic information source for all involved participants sub project the overview – the basics and most important data are shown up!