Capability Management in Digital Enterprises (eBook)

Kurt Sandkuhl is Full Professor of Business Information Systems at the University of Rostock, Germany, and Affiliated Professor of Information Engineering at Jönköping University, Sweden. His current research interests include the fields of enterprise modeling, digital enterprise architectures, knowledge engineering and knowledge management. He has published four books and more than 200 peer-reviewed papers and he is one of the initiators of the PoEM - (Practice of Enterprise Modeling) conference series.Janis Stirna is Full Professor of Computer and Systems Sciences at Stockholm University, Sweden. His research interests are enterprise modeling, modeling tools, reuse, patterns, and knowledge management. Stirna is an author or co-author of more than hundred research reports and publications and he is one of the initiators of the PoEM - (Practice of Enterprise Modeling) conference series. He also has been involved in various key roles in fourteen European and six national research projects.

Preface 5
Contents 8
Abbreviations 10
Chapter 1: Capability Thinking 12
1 Introduction 12
2 Business Environment of Digital Enterprises 15
2.1 Need for Agility and Flexibility in Enterprises 15
2.2 Digital Enterprises 16
3 Challenges in Digital Enterprises 17
3.1 Stakeholder Groups with Different Priorities 17
3.2 Integration of Business and IT Development 18
3.3 Context Dependency and Variation of Services 19
3.4 Connection of Design and Runtime 20
4 Capability Thinking and Capability Management 21
4.1 Capability Thinking as Organizational Mindset 21
4.2 Key Aspects of Capability Thinking 22
4.3 Capability Management 24
4.4 Capability-Driven Development (CDD) 26
4.5 Principles of CDD Method Development 29
5 Structure of the Book 31
References 33
Part I: Background to Capability Management 36
Chapter 2: The Notion of Capability in Literature 37
1 Introduction 37
2 General Characteristics of Capabilities 39
3 Capability Types and Dynamic Capabilities 41
4 Capabilities in Business and IT Alignment 43
5 Outlook: Selected Open Issues 45
References 46
Chapter 3: Capability Consideration in Business and Enterprise Architecture Frameworks 50
1 Introduction 50
2 Background to Approaches Using Capability 51
3 Business Architecture, OMG 52
3.1 Overview 52
3.2 Consideration of Capability 53
4 Enterprise Architecture, The Open Group 55
4.1 Overview 55
4.2 Consideration of Capability 55
5 Military Enterprise Architecture Frameworks: NAF, MODAF, and DoDAF 58
5.1 Overview 58
5.2 Consideration of Capability in the NATO Architecture Framework 58
6 Service-Oriented Architecture, OASIS 61
6.1 Overview 61
6.2 Consideration of Capability 62
7 Conclusions 63
References 64
Part II: Capability-Driven Development Methodology 66
Chapter 4: Overview of Capability-Driven Development Methodology 67
1 Introduction 67
2 Conceptual Foundations of the CDD Methodology 68
2.1 Capability Modeling Concepts 68
2.2 Modeling Language for CDD 69
2.3 Development Layers 70
3 Methodology Overview 72
3.1 Main Principles 72
3.2 Capability Life Cycle 73
3.3 Capability Design Process 74
3.4 Capability Delivery at Runtime 76
3.5 Component-Based Approach 77
3.6 CDD Environment 78
4 Illustrative Example 80
4.1 Design Cycle 80
4.2 Capability Delivery 84
4.2.1 Single Trip Support 86
4.2.2 Organizational Support 88
4.3 Feedback Cycle 88
5 Concluding Remarks 90
Appendix: Travel Management Capability Design 91
References 92
Chapter 5: Enterprise Modelling: Establishing the Fundament for Capability Management 93
1 Enterprise Modelling as Basis for Capability Management 93
2 Enterprise Modelling and Its Perspectives 94
3 Enterprise Modelling Process 97
4 Overview of Enterprise Modelling Methods 102
5 For Enterprise Modelling: 4EM 102
6 Summary 106
References 107
Chapter 6: Capability Design with CDD 109
1 Introduction 109
2 Background to Capability Design 110
3 Overview of Modeling Strategies 111
3.1 General Phases 111
3.2 Key Concepts 113
3.3 Introduction to Modeling Strategies 113
4 Goal-First Capability Design Strategy 114
5 Process-First Capability Design Strategy 117
6 Concept-First Capability Design 119
7 Effects of Choosing Modeling Strategies 122
8 Conclusions 123
References 123
Chapter 7: Context Modelling in Capability Management 125
1 Introduction: Role of the Context Modelling Method Component in CDD Methodology 125
2 State of the Art in Context Modelling Methods 126
3 Overview of the Procedures of the Context Modelling Method Component 127
4 Roles Involved in Context Modelling 128
5 Concepts, Notation, and Tools for Context Modelling 129
5.1 Important Concepts 129
5.2 Notation 132
5.3 Tools 132
6 Method Component: Capture Context Element 133
7 Method Component: Design Context Set 140
8 Method Component: Prepare for Operational Use 142
9 Summary 145
References 145
Chapter 8: Adjustment of Capabilities: How to Add Dynamics 147
1 Introduction 147
2 Foundations 148
2.1 Execution View 149
2.2 Types of Adjustments 150
3 Elaboration of Adjustments 151
3.1 Design-Time Specification 152
3.2 Run-Time Processing 154
4 Case 155
4.1 Case Description 155
4.2 Capability Model 156
4.3 Route Optimization Adjustment 158
4.4 KPI Adjustment 160
4.5 Adjustment Results 160
5 Related Work 161
6 Conclusions 164
References 164
Chapter 9: The CDD Environment Architecture 167
1 Introduction 167
2 Architecture Overview 168
3 CDT: Capability Design Tool 170
3.1 Main Features 170
3.1.1 Example Feature: Adjustment Modelling 171
3.2 Core Technologies and Deployment 172
3.3 Integration with Other CDD Tools 173
4 CNA: Capability Navigation Application 173
4.1 Main Features 173
4.1.1 Example Feature: Indicator Dashboard 174
4.2 Core Technologies and Deployment 175
4.3 Integration with Other CDD Tools 176
5 CCP: Capability Context Platform 176
5.1 Main Features 176
5.1.1 Example Feature: Configuring a Provider 177
5.2 Core Technologies and Deployment 178
5.3 Integration with Other CDD Tools 178
6 CPR: Capability Pattern Repository 178
6.1 Main Features 179
6.1.1 Example Feature: Structured Patterns 180
6.2 Core Technologies and Deployment 180
6.3 Integration with Other CDD Tools 180
7 Conclusions 181
References 181
Chapter 10: Capability Management in the Cloud 182
1 Introduction 182
2 Management Model 184
3 Cloud-Based Deployment 186
4 Pattern Repository 188
5 Scalability Capability 190
6 Conclusion 194
References 195
Chapter 11: Context Processing for Adaptive Capability Delivery 196
1 Introduction 196
2 Context Life-Cycle Management 197
2.1 Types of Context 197
2.2 Life-Cycle Management Activities 199
2.3 General Context Management Architecture 199
3 Capability Context Platform 200
3.1 Context Processing Pipeline 200
3.2 Technical Solution 201
4 Context Processing Execution 203
4.1 Context Acquisition 203
4.2 Adaptive Context Reasoning 206
4.2.1 Sample Application 206
4.2.2 Context Calculation 208
4.2.3 Run-Time Adjustment 209
4.2.4 Execution 210
5 Conclusion 213
References 213
Chapter 12: Organizational Adoption of Capability Management 215
1 Introduction 215
2 The Process of Decision-Making About Capability Management 216
2.1 Check Suitability of Capability Management 217
2.2 Scoping of a Pilot Project 218
2.3 Establish a Pilot Project Organization 219
2.4 Train Capability Thinking 220
2.5 Plan the Capability Management Process in the Pilot Project 221
2.6 Install Tool Support for Capability Management 221
3 Project-Based Method Adoption 221
3.1 Overview of CDD Roles and Method Components 222
3.2 Project Organization 223
4 Establishment of CDD in the Regular Organization Structure 224
4.1 Example Organization 225
4.2 ``All-Do-Some´´ Philosophy 226
4.3 ``Some-Do-All´´ Philosophy 231
5 Summary and Conclusions 235
References 236
Part III: Application Cases of Capability Management 237
Chapter 13: Capability-Driven Business Process Outsourcing in Utility Industries 238
1 Introduction 238
2 Industrial Case Description 239
2.1 Business Architecture 241
2.2 Data Structures 242
3 CDD-Based Solution Design 243
3.1 Business Architecture 243
3.2 Data Structures 244
3.2.1 Contract 244
3.2.2 Process Models 244
3.3 Modelling the ``Dynamic BSP Support´´ Capability 245
3.3.1 Defining the Business Context 245
3.4 Deploying the Capability 247
4 Evaluating the CDD Methodology and Environment 251
4.1 Goal-Based Validation 252
4.2 CDD Methodology Validation 254
4.3 CDD Environment Validation 255
5 Experiences with the CDD Methodology 256
6 Summary and Conclusion 258
References 259
Chapter 14: Context-Aware e-Government 260
1 Introduction 260
2 Use Case Description 261
2.1 SOA Use Case Architecture 262
2.2 Use Case Concepts, Goals, and KPIs 264
2.2.1 Concepts Model 264
2.2.2 Goal Model 264
2.2.3 Key Performance Indicators 266
2.3 Capabilities 267
2.3.1 Capability 1: Dynamic Service Registration Capability 267
2.3.2 Capability 2: Service Promotion Capability 268
2.3.3 Capability 3: Automatic Maintenance Mode Capability 268
3 CDD-Based Solution Design 269
3.1 Business Processes 269
3.1.1 Service Promotion Process Model 269
3.2 Context Model 270
3.2.1 Find Variations 270
VP1: Monitor Context Data and Predict Context Data 271
VP2: Service Highlighting Ability 271
VP3: Check the Number of Highlighting Spaces in the Municipality´s Home Page 272
VP4: Calculate Similar Municipalities 273
VP5: Need to Promote a Service 273
VP6: Check Availability of Services in the Municipality´s Home Page 273
VP7: To Decide Whether to Not Promote the Service or to Uncategorize a Service 273
VP8: To Decide Whether or Not to Inform Other Municipalities About a Service Promoted 274
VP9: Automatic Mailing Procedure 274
3.2.2 Design Context Elements 274
3.2.3 Define Context Set 275
3.3 Context Influence on Existing Processes 275
4 Evaluating the CDD Methodology and Environment 277
4.1 Use Case Lessons Learned 278
4.1.1 Dynamic Service Registration Capability 279
4.1.2 Service Promotion Capability 280
4.2 CDD Methodology Validation 280
4.3 CDD Environment Validation 281
4.3.1 Capability Design Tool Evaluation Results 282
Strong Points 282
Points of Improvement 283
4.3.2 Capability Navigation Application Evaluation Results 284
Strong Points 284
Points of Improvement 284
4.3.3 Context Platform Evaluation Results 285
Strong Points 285
Points of Improvement 285
5 Summary and Conclusions 286
References 286
Chapter 15: The Case of Industrial Symbiosis 287
1 Introduction 287
2 Overall Description of the Business Setting 288
3 Use Case Application Description 291
3.1 Introduction to Industrial Symbiosis 291
3.1.1 Key Phases of `Virtual´ Industrial Symbiosis 292
3.1.2 Stakeholders of Industrial Symbiosis 292
3.1.3 Primary Goals of Industrial Symbiosis 292
3.1.4 Types of Transactions 294
3.1.5 Types of Context Elements Affecting the Industrial Symbiosis 294
Location 294
Type of Resources 294
Legislation 294
3.2 Industrial Symbiosis Platform of CLMS 295
3.2.1 Description of i-Symbiosis Functionality 296
3.2.2 i-Symbiosis Business Capability 296
3.2.3 Goals for General Platform Improvements 297
3.2.4 Design Architecture 298
Architectural Patterns 298
Delivering the i-Symbiosis Platform Process 299
Description of Capability Delivery Workflow 299
3.3 Capturing Variation Points 300
4 Capability Model and Context 303
4.1 Capability Model 304
4.2 Automated Adjustments Regarding the Location Context 304
4.3 Capability: Determine Relevance Rating 306
4.3.1 Alternative 1: Using the Availability of Delivery Methods 308
4.3.2 Alternative 2: Using the Location and Automatic Adjustment 309
5 Summary 311
References 313
Chapter 16: Capability Support for Entrepreneurial Ventures 315
1 Introduction 315
2 Evolution of LightCDD 316
3 Specification of the LightCDD Method 317
3.1 Method Purpose 317
3.2 Overall Method Structure 318
4 Discussion and Further Work 325
References 328
Part IV: Business Impact of Capability Management 330
Chapter 17: The Capability Management Perspective on the Enterprise Architecture: A Consideration for Rapidly Changing Market ... 331
1 Origins of Enterprise Architecture 331
2 Zachman´s Framework 332
2.1 Strategy Included in the Framework 333
2.2 Limitations of the Framework 333
3 Resource-Based View 334
4 Enterprise Architecture Planning 335
5 Basics of Capabilities Management 335
6 Enterprise Architecture Schools of Thought 336
7 Military Frameworks for Enterprise Architecture 337
8 Open Group Architecture Framework 339
9 Two-Speed Frameworks for Fast-Changing Environments 340
10 Office Scenario 341
11 Recommendations 342
References 343
Chapter 18: Value of Context-Awareness in Business Services 344
1 Introduction 344
2 Value Perspectives 345
2.1 Established Value Perspectives 345
2.2 Value from a Service-Centric Perspective 346
3 Context-Aware Value 348
3.1 Characteristics of Business Services 348
3.2 Context Factors of Business Services 349
4 Approach for Value Determination 349
5 Exemplary Application 350
6 Summary and Outlook 352
References 353
Chapter 19: IT Value of Capabilities: Experiences from a Case in Business Process Outsourcing 355
1 Introduction 355
2 How to Determine the IT Business Value? 356
2.1 General Approaches 356
2.2 Business Value of IT from Organizational Transformation Perspective 357
2.3 How Business Value of IT Was Investigated in the Application Case 358
3 An Illustrative Application Case 359
3.1 Business Process Outsourcing Scenario 359
3.2 Business Process Without Support of CM 363
4 Introducing CM to the Application Case 364
4.1 Context Model and Clearing Center 364
4.2 Business Process with CDD Support 366
5 Business Value of CM 366
6 Summary 368
References 369
Chapter 20: CDD Exploitation Lines 370
1 Introduction 370
2 Selection of Exploitation Lines 371
2.1 Evaluation Phase 371
2.2 Definition of Exploitation Lines Phase 372
2.3 Business Planning Phase 373
3 Exploitation Lines 373
3.1 Line 1: Consultancy Services 374
3.2 Line 2: Promoting Capability-Oriented Thinking and Vision 375
3.3 Line 3: CDD Environment as a Service 376
3.4 Line 4: CDD Environment Distributors 378
3.5 Line 5: Support and Maintenance Services 378
4 Alignment with Existing Standards and Tools 379
4.1 Effects on Line 1 (Consultancy Services and Standards) 380
4.2 Effects on Line 2 (Promoting Capability-Oriented Thinking and Vision and Standards) 380
4.3 Effects on Line 3 (CDD Environment as a Service and Standards) 381
4.4 Effects on Line 4 (CDD Environment Distributors and Standards) 381
4.5 Effects on Line 5 (Support and Maintenance Services and Standards) 382
5 Summary 382
References 382
Chapter 21: Future of Capability Management 384
1 Introduction 384
2 Supporting Cyber Resilience for Digital Enterprises 385
2.1 The Emerging Need for Cyber Resilience 385
2.2 An Outlook on a Capability-Based Support for Cyber Resilience 386
3 Capability Support for Digital Transformation 388
3.1 The Emerging Need for Digital Transformation Management 388
3.2 An Outlook on Capability Management for Digital Transformation 390
4 Capability Support for Big Data Management 391
4.1 The Emerging Need for Big Data Management 391
4.2 An Outlook on Capability-Based Support for Big Data Management 392
5 Continuous Development with CDD 393
6 Conclusion 394
References 394