Using a Fractal Enterprise Model for Business Model Innovation

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In their previous work, the authors have developed a new kind of enterprise model, called fractal enterprise model, that connects enterprise processes via as-sets used for running these processes. One of the possible usages of this model is facilitating innovation, more exactly, changing or extending a business model used in the enterprise. This research-in-progress paper presents the idea of how such facilitation could be arranged, and lists the problems that need to be solved in order to convert the idea into a practical methodology. The discussion is based on a hypothetical example.

Business

$The Fractal Enterprise Model (FEM) • The fractal enterprise model (FEM) starts with a process and presents assets (resources) needed for running this process ….$

The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the asset

The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the assets

Building a FEM - using patterns
• Process-to-asset patterns/archetypes

Building a FEM - using patterns
• Asset-to-process pattern/archetype

Building a FEM - using patterns
• Applying the patterns will create a FEM – and the final result will be
an hierarchy of processes and assets

The Fractal Enterprise Model (FEM)
FEM can be used for:
• finding “invisible” processes that exists or should exist in the enterprise
• understanding how certain assets and processes are used in different
parts of the enterprise
• identifying capabilities of an enterprise
• planning business model transformation
• …

An approach for business model transformation
The approach consist of two steps:
1) Generating hypotheses
2) Assessing promising hypotheses

Demonstration - book-sales-on-the-web business
transformation (inspired by Amazon case)

An approach for business model transformation

Decision makers are often book readers
An approach for business model transformation

One platform vs many
platforms for customers
An approach for business model transformation

More staff might be
required
An approach for business model transformation

Decision makers are often book readers
One platform vs many
platforms for custumers
More staff might be
required
An approach for business model transformation

The challenge addressed – how to extend or
change an existing business model

Next step
• Develop transformation pattern based on FEM
• Using an infrastructural assets for building a service for external customer
• From designer to manufacturer
• From manufacturer to designer
• From educator to consultat
• ….
• Develop qualitative and quantitative measures
• Supporting the analysis when comparing nodes

$Earlier publications of FEM • Bider, I., Perjons, E., Elias, M., & Johannesson, P. (2016). A fractal enterprise model and its application for business development. Software & Systems Modeling, 1-27. • Josefsson, M., Widman, K. &Bider, I. (2015). Using the Process-Assets Framework for Creating a Holistic View over Process Documentation. In : Enterprise, Business- Process and Information Systems Modeling, LNBIP, Vol. 214. Springer, Stockholm (2015) 169-183, • Henkel, M., Bider, I. & Perjons, E. (2014, June). Capability-based business model transformation. In International Conference on Advanced Information Systems Engineering (pp. 88-99). Springer International Publishing. • Elias, M., Bider, I. & Johannesson, P. (2014). Using Fractal Process-Asset Model to Design the Process Architecture of an Enterprise: Experience Report. In BPMDS 2014 and EMMSAD 2014. LNBIP 175, Thesalonniki, Greece. Springer, pp.287-301. • Bider, I., Perjons, E. & Elias, M. (2012). Untangling the Dynamic Structure of an Enterprise by Applying a Fractal Approach to Business Processes. In Proceedings of PoEM 2012. LNBIP 134, Oslo, Norway. Springer, pp.61-76.$

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