Wednesday , April 24 2024

Architecting Business and IS/IT Strategic Alignment for Extended Enterprises

Llanos CUENCA
Research Centre on Production Management and Engineering (CIGIP), Universidad Politecnica de Valencia Camino de Vera s/n,
8G-4 (Polytechnic City of Innovation) 46022 Valencia, Spain

Andres BOZA
Research Centre on Production Management and Engineering (CIGIP), Universidad Politecnica de Valencia Camino de Vera s/n,
8G-4 (Polytechnic City of Innovation) 46022 Valencia, Spain

Angel ORTIZ
Research Centre on Production Management and Engineering (CIGIP), Universidad Politecnica de Valencia Camino de Vera s/n,
8G-4 (Polytechnic City of Innovation) 46022 Valencia, Spain

Abstract: Incorporating information systems and information technology (IS/IT) is badly needed in extended enterprises. For this purpose, the enterprise engineering approach offers important benefits; however there is no complete framework to define and model IS/IT components and their strategic alignment with the business strategy. This paper presents an enterprise architecture framework for extended enterprises which improves not only the strategic alignment process inside each individual company, but also the strategic alignment process for the extended enterprise. The main aim of this paper is to provide a modelling framework from the enterprise engineering approach which includes the components to model the IS/IT strategy and allow the extended enterprise to improve strategic alignment process. A comparative analysis has been done of life- cycle phases, modelling views and the strategic alignment between different enterprise architectures. Next, the required building blocks have been proposed: IS/IT conceptualization, strategic dependencies, alignment heuristics, maturity model and application portfolio (as-is and to-be). This proposal has been applied in the collaborative order management process of a ceramic tile company with its suppliers and consumers.

Keywords: Decision Making, Multiple Attribute Decision Making, Assessment and Optimization, Acquisitions, Ruttier Transport.

>>Full text
CITE THIS PAPER AS:
Llanos CUENCA, Andres BOZA, Angel ORTIZ, Architecting Business and IS/IT Strategic Alignment for Extended Enterprises, Studies in Informatics and Control, ISSN 1220-1766, vol. 20 (1), pp. 7-18, 2011. https://doi.org/10.24846/v20i1y201101

1. Introduction

The current economic situation and the high level of market uncertainty force companies to continuously adapt to respond to constant changes.

The competitive advantages in the changing business environment have transferred organizational structures from single enterprises to extended or virtual enterprise networks.

Collaboration among enterprises requires an efficient interaction of all the enterprise elements, which is based upon a complete framework [1]. Information technology improves the value chain (improving the enterprise processes and defining new processes) by changing the way companies do business. In this sense, it is important to define a framework to model business and, information systems, information technology (IS/IT) components, and their alignment, in an extended enterprise.

In this paper we propose a modelling framework using an enterprise engineering approach to identify views, life cycle and building blocks to model strategic alignment for extended enterprises. Business and IS/IT strategic alignment engineering is a process used for architecting and designing strategic alignment. The proposed modelling framework incorporates the elements required to fulfil this objective in early life-cycle phases. The paper is a revised and extended version of a paper presented at BASYS’10 [2].

This paper is organized as follows: firstly, Section 2 introduces the extended enterprise and enterprise architecture concepts. Section 3 offers a review of strategic alignment. Section 4 reviews the enterprise architecture framework from the alignment perspective. Section 5 proposes the enterprise architecture framework for business and IS/IT strategic alignment in extended enterprises. Section 6 describes the proposed framework which has been applied in a ceramic tile company. Finally, Section 7 provides the concluding remarks.

REFERENCES

  1. CHOI, Y., D. KANG, H. CHAE, K. KIM, An Enterprise Architecture Framework for Collaboration of Virtual Enterprise Chains, International Journal of Advanced Manufacturing Technology, vol. 35, 2008, pp. 1065-1078.
  2. CUENCA, L., A. BOZA, A. ORTIZ, Enterprise Architecture Framework with Early Business/ICT Alignment for Extended Enterprises. Balanced Automation Systems, vol. 322, Springe, 2010, pp. 11-18.
  3. VASILIU, L., J. BROWNE, >An Integrated Modelling Approach of the Extended Enterprise Using Fractals, Game Theory and Neural Networks Structure, Proceedings of 9th International Conference of Concurrent Enterprising, Espoo, Finland, June 16-18, 2003.
  4. ZHANG, J., J. BROWNE, Extended and Virtual Enterprises – Similarities and Differences. International Journal of Management Systems, 1999.
  5. FILOS, E., Virtuality and the Future of Organizations, Virtual Enterprise Integration: Technological and Organizational Perspectives, Chapter 2, pp. 32-46. Idea Group Publishing, Hershey, USA. 2005, (In Goel, A., Schmidt, H.; and Gilbert, D., Formal Models of Virtual Enterprise Architecture: Motivations and Approaches, PACIS 2010 Proceedings, Paper 117).
  6. PIRES, S., C. BREMER, L. DE SANTA, E. GOLART, Supply Chain and Virtual Enterprises: Comparisons, Migration and a Case Study. International Journal of Logistics, vol. 4(3), 2001, pp. 297-311.
  7. CAMARINHA-MATOS, L., H. AFSARMANESH, Collaboration Forms, Camarinha 2008 collaborative, Chapter 2.3, pp. 51-66, In Goel, A., Schmidt, H.; and Gilbert, D., Formal Models of Virtual Enterprise Architecture: Motivations and Approaches, PACIS 2010 Proceedings. Paper 117
  8. ECOLEAD D52.2 Rough Reference Model for Collaborative Networks, http://www.ve-forum.org/projects/284/ Deliverables/D52.2_Final.pdf, 2006
  9. BITTICI, U. S., K. MENDIBIL, V. MARTINEZ, P. ALBORES, Measuring and Managing Performance in Extended Enterprises, International Journal of Operations & Production Management. Bradford: Vol.25, Iss. 3/4; 2005, p. 333.
  10. CHENG, K., POPOV, Y.: Internet-Enabled Modelling of Extended Manufacturing Enterprises Using Process-Based Techniques. International Journal of Advanced Manufacturing Technology, vol. 23, 2004, pp. 148-153.
  11. CAMARINHA-MATOS, L. M., H. AFSARMANESH, Collaborative Networks: A New Scientific Discipline, Journal of Intelligent Manufacturing, vol. 16(4), 2005, pp. 439-452.
  1. CASH, J. I., B. R. KONSYNSKI, IS Redraws Competitive Boundaries, Harvard Business Review, March-April 1985, pp. 134-142.
  2. HONG, I. B., A New Framework for Inter-organizational Systems Based on the Linkage of Participants’ Roles Information & Management 39, 2002, pp. 261-270.
  3. BAKOS, J. Y., A Strategic Analysis of Electronic Marketplaces, MIS Quarterly, vol. 15, 1991, pp. 295-310.
  4. FARBEY, B., F. F. LAND, D. TARGETT, A Taxonomy of Information Systems Applications: The Benefits’ Evaluation Ladder, European Journal of Information Systems, vol.4(1), 1995, pp. 41-50.
  5. VERNADAT, F., Modelling and Integration, Principles and Applications. Chapman & Hall, Boca Raton, 1996.
  6. HOOGERVORST, J., Enterprise Governance and Enterprise Engineering, Springer, Heidelberg, 2009.
  7. CHEN, D., G. DOUMENINGTS, F. VERNADAT, Architectures for Enterprise Integration and Interoperability: Past, Present and Future, Computers in Industry 59, 2008, pp. 647-659.
  8. ISSA-SALWE, A., M. AHMED, K. ALOUFI, M. KABIR, Strategic Information Systems Alignment: Alignment of IS/IT with Business Strategy. Journal of Information Processing Systems, vol. 6(1), 2009.
  9. BHATNAGAR, A., Strategic Information Systems Planning: Alignment of IS/IT Planning and Business Planning, Unitec, New Zealand, 2007.
  10. Andreica, M. E., I. Dobre, M. I. Andreica, C. Resteanu, A New Portfolio Selection Method Based on Interval Data, Studies in Informatics and Control, vol. 19,(3), 2010, pp. 253-262.
  11. LEDERER, A. L., V. GARDINER, Strategic Information Systems Planning: The Method/1 Approach. Information Systems Management, vol. 9(3), 1992, pp. 13-20.
  12. LUFTMAN, J. N., P. R. LEWIS, S. H. OLDACH, Transforming the Enterprise: The Alignment of Business and Information Technology Strategies. IBM Systems Journal, vol. 32(1), 1993, p. 198.
  13. REICH, B., I. BENBASAT, Factors that Influence the Social Dimension of Alignment between Business and IT Objectives. MIS Quarterly vol. 24(1), 2000, pp. 81-113.
  14. HENDERSON, J. C., N. VENKATRAMAN, Strategic Alignment: Leveraging Information Technology for Transforming Organizations, IBM Systems Journal, vol. 32(1), 1993, pp. 472-484.
  15. SMITS M., M. FAIRCHILD, P. RIBBERSS, K. MILIS, E. VAN GEEL, Assessing Strategic Alignment to Improve IT Effectiveness 22nd Bled eConference eEnablement: Facilitating an Open, Effective and Representative eSociety, 2009.
  16. LUFTMAN, J. N., R. KEMPAIAH, An Update on Business-ITt Alignment: A Line Has Been Drawn, MISQE, vol. 6(3), 2007, pp. 165-177.
  17. LANKHORST, M. M., Enterprise Architecture Modeling – The Issue of Integration. Advanced Engineering Informatics. Engineering Computing and Technology vol. 18(4), 2004, p. 205.
  18. INMON, W. H., J. A. ZACHMAN, G. J. GEIGER, Data Stores, Data Warehousing and the Zachman Framework. McGraw-Hill, New York, 1997.
  19. TANG, A., J. HAN, P. CHEN, A Comparative Analysis of Architecture Frameworks. Technical Report SUTIT-TR2004.01, Swinburne University of Technology, 2004.
  20. MARTIN, R., E. ROBERTSON, Architectural Principles for Enterprise Frameworks, 2004.
  21. CHEN, D., F. VERNADAT, Standard on Enterprise Integration and Engineering-State of the Art, International Journal of. Computer Integrated Manufacturing vol. 17(3), 2004, pp. 235-253.
  22. BERNUS, P., L. NEMES, G. SCHMIDT, Handbook on Enterprise Architecture. Springer, Berlin, 2003.
  23. CUENCA, L. L., A. ORTIZ, A. BOZA, Business and IS/IT Strategic Alignment Framework, Emerging Trends in Technological Innovation vol. 314, Springer, 2010, pp. 24-31.
  24. ISO. ISO/IEC 42010 Systems and Software Engineering – Architectural Description, July 2007.
  25. EMERY D., R. HILARD, Every Architecture Description Needs a Framework: Expressing Architecture Frameworks Using Iso/Iec 42010. WICSA/ECSA 2009.
  26. TOGAF The Open Group Architecture Framework, http://www.opengroup.org/togaf
  27. IFIP-IFAC Task Force, Generalized Enterprise Reference Architecture and Methodology, Version 1.6.2, Annex to ISO WD15704, IFIP-IFAC Task Force, 1999.
  28. ORTIZ, A., F. LARIO, L. ROS, IE-GIP. A Proposal for a Methodology to Develop Enterprise Integration Program. Computers in Industry vol. 40, 1999, pp. 155-171.
  29. SOWA, J., J. ZACHMAN, Extending and formalizing the framework for information-systems architecture. IBM Systems Journal 31(3), 1992, p. 590.
  30. SPEWAK, S., Architecture Planning: Developing a Blueprint for Data, Applications, and Technology, Wiley, Chichester, 1993.
  31. ZWEGERS A., M. TOLLE, J. VESTERAGER, VERAM, http://cic.vtt.fi/projects/globemen/book/01_zwegers2.pdf
  32. WEGMANN, A., P. BALABKO, L. LE, G. REVEG, I. RYCHKOVA, A Method and Tool for Business – IT Alignment, in Enterprise Architecture Proceedings of the CAISE. Porto University, Porto, Portugal, 2005.
  33. PEREIRA, C., P. SOUSA, Enterprise Architecture: Business and IT Alignment, in ACM Symposium on Applied COMPUTING, 2005.
  34. PLAZAOLA, L., J. FLORES, E. SILVA, N. VARGAS, M. EKSTEDT, An Approach to Associate Strategic Business-IT Alignment Assessment to Enterprise Architecture, in Conference on Systems Engineering Research, Stevens Institute of Technology Campus, USA, 2007.
  35. WANG, X., X. ZHOU, L. JIANG, A Method of Business and IT Alignment Based on Enterprise Architecture, 2008.
  36. CHEN, H. M., SOA, Enterprise Architecture and Business-IT Alignment: An Integrated Framework. In: Proceedings of the 6th International Workshop on System/Software Architectures, 2007.
  37. SILVA, E., L. PLAZAOLA, M. EKSTEDT, Strategic Business and IT Alignment, A Prioritized Theory Diagram, Proceedings of PICMET06, Istanbul, Turkey, 2006.
  38. COOPER, R. G., S. J. EDGETT, E. J. KLEINSCHMIDT, Portfolio Management for New Products. 1st ed. MA, Perseus Books, 1998.
  39. MORRIS, P., A. JAMIESON, Moving from Corporate Strategy to Project Strategy, Project Management Journal, vol. 36(4), 2005, pp. 5-18.
  40. LUFTMAN, J., Assessing Business-IT Alignment Maturity. Communications of the Association for Information Systems vol. 4(14), 2000.
  41. YU, E., Modeling Strategic Relationships for Process Reengineering, Ph.D. thesis, 1995.
  42. SANTANA, R. G., M. DANEVA, P. A. T. VAN ECK, R. J. WIERINGA, Towards a Business-IT Alignment Maturity Model for Collaborative Networked Organizations, in Proceedings of the International Workshop on Enterprise Interoperability Munich, Germany, 2008, pp. 70-81.
Designed by | ICI Bucharest
© Copyright 2024, All Rights Reserved