Dynamic enterprise modeling
Dynamic enterprise modeling is an enterprise modeling approach developed by the Baan company, and used for the Baan enterprise resource planning system which aims "to align and implement it in the organizational architecture of the end-using company".
According to Koning, Baan introduced dynamic enterprise modelling in 1996 as a "means for implementing the Baan ERP product. The modelling focused on a Petri net–based technique for business process modelling to which the Baan application units were to be linked. DEM also contains a supply-chain diagram tool for the logistic network of the company and of an enterprise function modelling diagram".
Overview
To align a specific company with dynamic enterprise modeling, the organizational structure is blueprinted top-down from high-level business processes to low-level processes. This blueprint is used as a roadmap of the organization, that is compatible with the structural roadmap of the software package. Having both roadmaps, the software package and the organizational structure are alienable. The blueprint of an organizational structure in dynamic enterprise modeling is called a reference model. A reference model is the total view of visions, functions, organizational structures and processes, which together can be defined as a representative way of doing business in a certain organizational typology.The DEM reference model consists of a set of underlying models that depict the organizational architecture in a top-down direction. The underlying models are:
- Enterprise structure diagrams: The company site structure is visualized with the dispersed geographic locations, the headquarters, manufacturing plants, warehouses, and supplier and customer locations. Physical as well as logical multi-site organizations for internal logistic or financial flow optimization can be diagrammed.
- Business control model : The business control model represents the primary processes of the organization and their control, grouped in business functions. The DEM reference model exists of one main Business Control Model, resulting in several other Business Control Models per function area of the organization.
- Business function model : The business function model is a function model that focuses on the targets of the several functions within the company.
- Business process model : The business process model focuses on the execution of the functions and processes that originate from the business control model and the business function model. Processes flows are depicted and processes are detailed out.
- Business organization model : The business organization model focuses less on the processes and more on the organizational aspects such as roles and responsibilities.
Dynamic enterprise modeling topics
Business control model
The business control model exists of the business functions of the organization and their internal and external links. Basic features in the model are:- Request-feedback-loop: A link from, to, or between business functions is called a request-feedback-loop, which consists of 4 states that complete the process and information flows between both business functions. The states are labeled: requested, committed, completed and accepted.
- Workflow case. A workflow case is the description of the execution and the target of the process that occurs between two business functions. The most important critical factors of the workflow case are quantity, quality and time. The 4 states of Request-feedback-loop the together represent the workflow case.
- Triggers: Business functions are aggregates of business processes and focus mainly on the triggers between processes, thus not on the information flows.
- Business functions : In an optimal situation for the modeling process, a company has only one business function. Business functions are however subdivided when:
- * The nature and characteristics of workflow cases fluctuate
- * The frequency in underlying processes fluctuate
- * Detail-level fluctuates
- * More than 1 type of request triggers a function
- External business function : this is a group of processes that are part of the organization, but that is outside of the scope of the reference model.
- Processes within or between business functions are executed by triggers, which can be event-driven or time-driven.
- Exceptions in a system are handled, according to the set handling level in the business process configuration, when the success path of the model is not met in practice.
In addition to business functions that consist of the main processes of the organization, management functions exist.
- Management business functions: These are functions that manage the business process itself and that thus support the execution and triggering of the main business functions.
Constructing the business control model
A business control model is constructed according to a set path.- First, the scope of the business is defined. The scope includes scoping what to model and includes the definition of the agents and external business functions that relate to the business.
- Next, the scope is depicted to a model of the black box with al the agents and external business functions surrounding the black box.
- The next step is to define the process and information flows between the agents and external business functions to and from the black box of the business control model. Defining the request-feedback flows enables the modeler to define what processes are inside the black box.
- In case of a production business it is vital to define the customer order decoupling point, referring to the split in the physical process where processes are based on the customer order instead of forecasts.
- Service based businesses on the other hand do not have a physical goods flow and thus do not require a physical process model. It is however imaginable that the same type of process flow can be utilized to construct a business control model for a service based business, as a service can be interpreted as a product as well. In this way, a business control model can be constructed similarly for a service based business as for a physical goods production business, having intangible goods instead of tangible.
- Next to the low-level physical production process, the high-level business functions need to be defined as well. In most cases the higher level business functions relate to planning functions and other tactical and strategical business functions, followed by functions as sales and purchase.
Business process model
The modeling of processes in DEM, modeling the business process model is done using Petri net building blocks. DEM uses 4 construction elements:- State : A state element represents the state of a job token and is followed by the activity that executes the job token of the state.
- Processing activity : A processing activity is the activity that processes the job token of a state, transforming the state of the job token to another state.
- Control activity: A control activity navigates the process activity but does not execute it.
- Subprocess : A subprocess is a collection of different other processes, aggregated in a single element by means of complexity management.
- OR-split / XOR-split : This structure creates 2 new states out of 1 state, signaling the creation of 2 job tokens out of 1 job token. If the new state can be both of the output tokens, the split is OR, if not, the split is an exclusive OR split.
- AND-join construction : 2 job tokens are both needed to enable the control activity, creating 1 new job token.
- OR-join / XOR-join : 2 job tokens are needed to enable the control activity, creating 1 new job token.
An example
The example below demonstrates the modeling of the concept of marriage and divorce using Petri net building blocks.- The Petri net built model expresses the transformation from a single man and woman to a married couple through marriage and back to single individuals through divorce.
- The model starts with the two states called man and woman.
- Through an AND-join construction the two states are joined within the control activity called coupling to the new state called couple.
- The couple state then is transformed through the processing activity called marriage, resulting in the transformed state of married couple.
- The state married couple is then transformed to the state divorced couple using the process activity called divorce, resulting in the state called divorced couple.
- The control activity called decoupling finally splits the divorced couple state into the states of man and woman.
Assessments
The negative aspect of an embedded method obviously is that it can only be used for specific product software. Engineers and consultants, operating with several software products, could have more use of a general method, to have just one way of working.