TJTSE54 Kehittämismenetelmät ja

arkkitehtuurit liiketoiminnassa

TJTSE54 Kehittämismenetelmät ja

arkkitehtuurit liiketoiminnassa

Prof. Jukka Heikkilä

Elektroninen liiketoimintaTietojenkäsittelytieteiden laitos

Informaatioteknologian tiedekuntaJyväskylän yliopisto

tel:+358 14 260 3240email: jups@cc.jyu.fi

2

3-tier architecture

3

n-tier architecture

• e.g. LAMP view (Linux-Apache-MySQL-PHP/Perl/Python)

– Web servers front end for static content (e.g. Apache, MS IIS)

– Application servers for dynamic content (e.g. Java EE)

– Database back-end, RDBMSs (e.g. MySQL)

– Also available in WAMP (Win), MAMP (Mac), and -most recently taking into account the for the fourth tier of interconnected networks/terminals - PAMP

• Hiding S60 complexities• Expanding developer base• Making porting and migrating easier

4

Service oriented architecture and web services is claimed to be the next

general ICT trend (Gartner)

19701970 19801980 1990 20001990 2000

Ado

ptio

n R

ate

Ado

ptio

n R

ate

Mai

nfra

me

Structured Programming

(1970s)

Clie

nt /

Serv

er

4GL (1986)

Object Oriented

Programming(1980s)

CORBA (1992)

ERP

Web

Netscape (1994)

J2EE (2000)

COM/DNA (1997)

SOA

/Web

Se

rvic

es

TimeTime

5

Why?

6

Adopted from Bowersox, 1996Key: S = supplier, FC = Focal Company,C = Customer

7

A way of managing business processes and building systems utilizing layered BPM/SOA

Concepts

11 22 33 Intra-/Inter-OrganizationalProcesses Flow

Service 1 Service 1 Service 1External

Business Process Management

Business Rules

Corporate Systems & ComponentsERP, CRM, PDMLegacy Systems

Other Corporate SW Components

Vendors & PartnersSystems & Components

Old WayTraditional Monolith Systems with implicit business process management, rules and services and bad connectivity.

Business Process Management

Service Oriented Architecture / Web Services

EAI, middleware

Systems /software level

8

And the suggested solution is:Business Models, Architectures

and Platoforms (or components?)• “The software architecture of a program or computing

system is the structure or structures of the system, which comprise software components, the externally visible properties of those components, and the relationships among them.” (Bass, Clements, and Kazman, 1997)

• But an architecture for eBusiness -system– is a combination of

• offerings• services• applications

• Business Model makes the relationship betweenconstituents of business visible (see e.g. Osterwalder & Pigneur, 2001) -> ITKE50

• Let us dig into this!

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Three stages of development(Ash & Burn, 2003)

= the convergence oftechnologies for informationflow within and between organisations, e.g. e-ERPimplementations;

= asset andcompetency sourcingfor providingcheaper, faster, andimproved quality ofproducts and services

= the architecture of the firm and its networkof partners for creating, marketing anddelivering value.

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Products = goods and services(Levitt, 1960)

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Relationship of the stages(Ash & Burn, 2003)

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1. Integration for efficiency: (esim. IBM extranet -konsepti)

Business Strategy + Process

Web + IT Integration

E-Commerce Services

Enablement Services

Knowledge Management

Business Intelligence

SCM ERP CRMSuppliers Customers

Technology Value

Business Value

E.g. data mining

I.e., tailoringOutsourced development,

operation, security, etc.

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2. Integrating for differentiation: Customer centric product life cycle (c.f.

Ives, 1999)

Needs e.g. AIDA- marketing

Abandonment?- reflecting- returning- reselling- recycling- disposing

Ownership/service provision-assembling, installing, setting up- training- using- following up- maintaining/serving- upgrading- supplying

Acquistion- selling- ordering - paying- delivering- reception

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3. Differentiating for value added

- documenation and exceptions handling

Retirement

Persuasion

AcquisitionOwnership

Learning from exceptions from/with customers/users

Designing and implementing business models for interorganizational network

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Key Design Issues:• How are customer needs and processes brought into design?

– How to gain right information and how to describe:• Customer pain/problem and behavioural cycles

– commitments• Flow of transactions

– Web stores, auctions, exchanges, joint purchases• How to integrate the supply network to match the process

desired• How to manage transactions?

– Technically– Can we change and implement the design rapidly

• What to do by ourselves, what to outsource?– Earning logic?– Risks of contracting (long lasting commitments)

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A proposition: Split the design in two (at least)

A. Design of the Business Model– Who is offering what to whom?

• Business domain, the view of benefits

B. Design of the Business Processes– In what order to execute?

• Process domain, the view of activities and efficiency

• A wholistic governance model

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Liiketoimintamalli

• A) Design of the Business Model

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What does a business modelcover?

(reflected upon Osterwalder & Pigneur’s Business Model Ontology, 2002)

• Between the strategy and implementation?

Strategy

BusinessModel

BusinessProcesses

Planninglevel

ICT pressure

e-Business opportunities& change

e-Business processadaptation

Implementationlevel

Architecturallevel

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How does a business modelwork?

(based on Osterwalder & Pigneur, 2002)

– From innovation to customer to infrastructure to financial performance (and back)

• few think it that way (Hedman & Kalling, 2002)

– shadowed are has been studied extensively

PRODUCTINNOVATION

INFRASTRUCTUREMANAGEMENT FINANCIALS

CUSTOMERRELATIONSHIP

market throughfeedback for

based on

costsresource for

basedon

resource for

fundedthrough

incomefor

resourcefor

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Business Logic Triangle(Osterwalder & Pigneur, 2002)

Strategies

Business Models

Business Processes

Describes e.g. product, infrastructure, financials

and customers, and their relationshipsConceptual

Tells how to implement a business strategy

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Business Logic Triangle in the context of business network

NetworkNetwork

Strategies

Business Models

Business Processes

A CB

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Building the Network: Adjustment processes (lateral)

Align at least some of the processes and ensure data compatibility

Strategies

Business Models

Business Processes

A CB

Inter-Organizationalprocess adjustment

2.

Inter-Organizationalstrategic adjustment

1.Adjust Network Business Model& Strategies of the companies

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Building the Network: Adjustment processes (vertical)

Strategies

Business Models

Business Processes

A CB

Inter-OrganizationalStrategic adjustment

Inter-OrganizationalProcess adjustment

Intra-OrganizationalStrategy–Processes adjustmentdue to co-operation

3.

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Strategies

Business Models

Business Processes

A CB

Inter-OrganizationalStrategic adjustment

Inter-OrganizationalProcess adjustment

The articulated needfor new

knowledge, partners, infrastructure etc.

Building the Network: Fourth Adjustment Process

Intra-OrganizationalStrategy–Processes adjustmentdue to co-operation

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Interface of BizModels and ICT

• Technology platform (and a business model): 1. strategic alignment 2. partner & customer interoperability3. support for processes4. fit with architecture 5. fit with generic services6. change management Strategy

BusinessModel

BusinessProcesses

ICT pressure

e-Business opportunities

& changee-Business

processadaptation

Planninglevel

Architecturallevel

Implementationlevel

1

2

3

5

4 6

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Designing in between Business Models and Processes

• Business model to generic a starting point? What about– Kambil & van Heck, 1998– Heikkilä et al., 1998

27

The Two Generic Processes of Handling Transactions (c.f. Kambil & Van

Heck, 1998)

SeeCCLC &

CRM

Legislation,lex

mercatoria

Integration,tailoring,

BPR

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Basic Trade Process

• Search• Valuation

- different mechanisms of finding value (e.g. auctions)

• Logistics• Payments & Settlements• Authentication, non-repudiation and fulfilment

– Identifying and authenticating parties– Accepting the product and payments

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30

Trade Context Processes

• Product representation– How the product must and can be described (cars vs. mobil

sbscription)• Legitimation

– The format of a valid business transaction, influence on other parties (e.g. real estates, digital material)

• Influence structures and processes– commitments, sanctions, limitations, (e.g. down payments,

letter of intents) to avoid opportunism• Dispute resolution

– arbitaration, courts– Consumer rights and protection

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32

Past and present: each link does everything

Commitments

Persuasion

Delivery

Financing

Raw

materials

Production Wholesale Retail

Consumption

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Specializing channels for transactions

• Persuasion - creating brands– product info, SP, PR, CRM, feedback

• Finance - to minimize advance payment risks– payment systems, credit, guarantees/securities, risk

management, chargeback• Commitments - trust is essential in VR

– Documenting transactions: identification, authorization and responsibilities

• creating, tracking and keeping records for non-repudiation, reclamations, disputes, warranties, etc.

• Delivery - eThing builds on logistics– in addition to delivery, value-added services, such as

storing, maintenance, recycling, disposing

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Why channels separate?

• Efficiency and core competence– e.g., marketing, finance, contracts, transportation

• Instances of customers are different– e.g., customer profile, account#, transaction record, delivery

address(es)...• Roles and responsibilities of the suppliers

– mediahouse, creditor/lessor/insurer, trusted third party, coordinator

• Legislation is channel specific– marketing, financing/granting credit, product liability,

shipping, etc.• Specialised ISs and organizations• Specialised education and research

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Changing and merging activities:Windows of opportunity for value network

operators

Persuasion

Delivery

Commitments

Finance

Tuotanto

Kulutus

Supplyactivities Demand

activities

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These apply to

• Who does what?• In what order?

– KvH in explicit, predetermined order– in Channel model it is the design parameter

• When is the responsibility transferred?– Channel model: How long upstream the

customer is allowed to enter?– Channel model: How long downstream the

supplier/partner is allowed to enter?• Both: what are the ancillary, generic services?

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Kauppapaikan komponentteja (c.f. Porra, 1999)