Index

A

Abstract activity, 141

Action, 275, 287, 312

Active activity, 141

Activity, 249

Actor, 250, 275

Actors and Resources Model (ARM),250

Ad hoc development, 100

Ad hoc processing, 105

Adverse selection, 186

Agency costs, 187

Agent, 181

Alfa-beta-gamma (a.~'Y) model, 97

Alfa-beta-gamma-tau (a.~yt) multidimensional scheme, 103

Application development, 104

Application domain, 198

Architecture, 269, 284

Archive-statistical system, 94, 113

Areas of model work, 137

Aspect, 8

Asymmetric information, 182

B

Base Operator System (BOS), 102

Behaviour, 186

Behaviour models, 8

Behaviour-oriented contracts, 183

Bounded rationality, 188

Business, 93, 152

Business developer, 199

Business developer's toolbox, 220

Business development, 199,219

Business economy, 274

Business focus, 203

Business information, 163

Business language, 249

Business logic, 113

Business message handling, 152

Business model, 8, 133, 151

Business modeller's checklist, 305

Business modelling, I, 151, 218

Business modelling facilitator, 319

Business Modelling research consortium, 333

Business object, 166

Business problem, 245

Business process, 55, 165

Business process development, 123

Business Process Model (BPM), 249

Business process models, 165

326

Business Process Reengineering (BPR),4, 13, 159, 195

Business reengineering fallacy, 271

Business Rule Model (BRM), 248

Business rule modelling, 248

Business style, 155

c CASE tool, 104

Category models, 8

Changing model use, 146

Changing organisations, 2

Classifications, 95

Client/server systems, 113

Clients, 195

Cognition, 322

Communication, 31, 190

Communication costs, 189

Communication economy, 274

Communication gap, 3

Communication model, 296

Company costs, 194

Competence, 185,323

Competition, 163

Computerised functions, 119

Concept formation, 322

Concepts, 154, 222

Concepts and definitions, 53

Conceptual models, 95

Concrete activity, 141

Conditions for business modelling, 155

Confidentiality, 97

Perspectives on Business Modelling

Conflict assumption, 144

Consensus, 159

Consensus assumption, 144

Constraint, 248

Constraint rule, 248

Content artefact, 139

Content models, 9

Contract, 182

Contracting costs, 188

Coordination, 189

Co-ordination breakdowns, 198

Coordination costs, 189

Corporate development, 4

Cost structure, 190

Costs, 187

Costs of incentives, 187

Critical Success Factors (CSF), 158

Cultural environment, 156

Cultural grammar, 299

Culture economy, 274

Customer Supply Flow, 15

Customer utility, 69

D

Data model, 297

Data structures, 10 1

Data warehouses, 96

Data/program independence, 113

Database, 96

Database management, 100

Database management system, 95

Index

Database-oriented systems architecture, 101

Data-flow diagram, 249

Datalogical model, 99, 103

Datalogical tasks, 99, 102

Decentralisation, 106

Decomposition, 249

Dependency, 250

Dependency chains, 207

Derivation rule, 249

Development level, 220

Development work, 4,86,133,219

Differences, facilitating, 137

Differences, hindering, 137

Dissemination system, 112

Documentation, 104, 107, III

Documentation template, 108

Domain knowledge, 198

Drawing aids, 162

E

ELEKTRA, 246

Elementary statement, 313

ELKD,246

Enterprise, 245

Enterprise Knowledge Development (EKD),246

Enterprise Model (EM), 245

Enterprise modelling, 245

Entity-Attribute-Relationship, 96

Entity-Relationship, 96, 249

Ericsson Radio, 13

Event-activion rule, 249

Events, 154

External competence, 122

External costs, 190

External process, 249

F

F3 (From Fuzzy to Formal), 246

Facilitator, 253

Factor models, 8

Flat file model, 104

Flat files, 101, 104

Flows, 154

Formal specifications, 200

Formalisation, 163

Fractal, 284

Frame of reference, 152

G

General changes, 27

General map, 223

General model, 136

General systems theory, 310

Generalised software, 97

Goal, 222, 247, 311

Goal fallacy, 272

Goal models, 295

Going concern, 133

Grammar, 281, 299

Group concept, 158

Group work, 253

Groups of people, 254

Groupware, 161

327

328

H

Heterogeneous, 159

Hierarchical organisations, 155

Human action, 286

I

Implementation, 126

Implementational aspect, 203, 204

Improvement work, 14,32

Incentives, 185

Infological approach, 95, 99

Infological model, 95, 102

Infological tasks, 99, 102

Infological theory, 96

Information, 152

Information contents, 95

Information costs, 189, 190

Information economy, 274

Information Engineering (IE), 243

Information Model (1M), 249

Information modelling, 249

Information support, 31

Information system, 250

Information system focus, 204

Information systems development, 4,135

Information technology, 117

Integrated business development, 203

Integrated data and metadata management, 111

Integration of methodologies, 105

Intentional components, 246

Perspectives on Business Modelling

Intentionality aspect, 204

Intentions, 222, 311

Inter relationships, 246

Interface model, 292

Inter-model relationships, 251

Internal costs, 190

Internal quality, 244, 255

Interpretation filters, 152

Inter-quadrant dependencies, 205

Intra relationships, 246

Intranet, 162

Is models, 3

IT-support, 14,32

K

Knowledge, 137

Knowledge acquisition, 261

Knowledge representation, 253

L

Language, 281

Learning, 137

Levels of development work, 4, 219

Life cycle, 219

Linguistics, 299

Local networks, 162

Long contract, 185

M

Macrodata, 104

Macrodatabase, 96, 100

MALOIV,154

Management principles, 284, 288

Index

Manifestation artefact, 138

Market Supply Flow, 15

Meaning, 280

Measuring processes, 83

Mega-process, 55

Mental model, 153, 276

Metadata, 97, 102, 104, III

Metadatabase, 96, 100

Meta-model, 54, 222

Meta-modelling, 222

Method, 3, 217

Method alliance, 220

Method chain, 220

Method component, 221

Method engineering, 221

Method fragment, 221

Method integration, 221

Method-evaluation, 223

Method-modelling, 222

Methodology, 3

Microdata, 94, 104, 112

Microdatabase, 96, 100, 104

MIPS, 37

Model, 3,135,151

Model activities, 140

Model architecture, 285, 308

Model artefacts, 137

Model assumptions, 142

Model based development, 269

Model types, 8, 153,246

Model work, 135

Modelling hints, 254

Modelling process, 254

Monitoring costs, 188

Moral hazard, 184

Motivation, 286

Multidimensional, 96, 97, 103

N

Non-procedural, 98

Notation, 307

o Object Management Group

(OMG),161

329

Object Orientation (00), 159

Object Oriented Analysis (OOA), 211

Objective assumption, 143

Objectives, 154

Objectives modelling, 247

Objects, 313

Observability, 184

On-Line Analytical Processing (OLAP),97

00 concept, 160

Operationalisation, 248

Opportunism, 188

Opportunity, 248

Opportunity costs, 187

OPR(t) framework, 95

OPR(t) model, 103, 104, 107

Optimisation, 105

Organisational development, 4, 134

Organisational prerequisites, 44

Output-oriented contracts, 183

330

Outsourcing, 106

Overview model, 60

p

Participativeness, 158

Participatory work, 253

Pedagogical effects of modelling, 160

Personal competence, 30

Perspectives on business modelling, 10

Philosophical foundation, 270

Philosophy, 299

Physical metaphor, 165

Physical process, 169

Physical world, 167, 168

Points of view, 6

Principal, 181

Principal-agent theory, 181

Privacy, 96

Problems, 248

Process, 159, 165,249

Process "flow", 44, 53, 62

Process artefact, 139

Process descriptions, 29

Process development, 219

Process goals, 28

Process improvement, 29

Process Management, 4, 13,67, 159,210

Process map, 73

Process migration, 170, 171

Process mirroring, 168, 170

Perspectives on Business Modelling

Process models, 9, 296

Process orientation, 13, 28

Process owner, 13,72,75,81,83

Process reengineering fallacy, 271

Process re-use, 57

Process simulation, 172

Process teams, 71, 72

Process-oriented projects, 39

Product development, 14,32

Public Administration, 67

Public service environment, 157

Q

Quality, 71,112,255

Quality assurance, 256

Quality criteria, 258

Quality Function Deployment (QFD),262

Quality issues, 258

Quality of a model, 255

Quality of a requirements specification, 256

Quality of a tool, 255

Quality of applying the methodology, 256

Quality of the methodology, 256

Quality of the user, 256

R

Rapid Application Development (RAD),105

Reflective activity, 141

Relational data model, 104

Relational database, 104, 112

Index

Relational database management system, 100

Relational tables, 101

Reorganization, 192

Representation artefact, 138

Requirement, 250

Requirements acquisition, 245

Requirements engineer, 203

Requirements Engineering (RE), 206,243

Requirements Specification (RS), 244

Resource, 250, 275,313

Risk avert, 183

Risk neutral, 183

Risk sharing, 183

Role of the process owner, 30

Rule model, 296

s Searching costs, 188

Self-planning groups, 76

Semiotic ladder, 282

Semiotics, 137, 273

Short contracts, 185

Short-term memory, 315

Should models, 3

Signalling, 187

Signs, 137

Simple contracts, 185

SISU, 245

Small and medium-sized companies, 117

Social contract, 269

Social Insurance Board, 68

Social Insurance Office, 67

Social system, 276

331

Software components, 112, 113

Software development process, 178

Specific model, 136

Speech act, 278

Stakeholders, 244, 248

Standard application packages, 201

Standard concepts, 95

Standard interfaces, 112

Standardised software, 99, \05

Statistical database, 104

Statistical file systems, 94

Statistical output database, 96

Statistics production, 93, 104

Statistics Sweden, 93

Stored procedures, 113

Strategic development, 134, 219

Subjective assumption, 143

Sub-process, 55

Survey, 117

Sweden Post, 35

Sweden Post Business Plan, 38

Systems development, 197, 219

Systems development model, 99

T

Target System Model, 251

Teamwork,315

332

Technical Components and Requirements Model (TCRM), 250

Telecom industry, 200

The "Berlin wall" dilemma, 199

The value chain, 209

Threat, 248

Time, 97

Tools, 161,318

Top-down, 310

Total Quality Management (TQM), 4,13,68

Transaction cost, 188

Transcendental perspective, 257

Transformation models, 8

Truth,280

Two-agent perception, 152

Perspectives on Business Modelling

u Understanding model use, 145

Understanding organisations, 2

Unified Modeling Language (UML),161

User-customer perspective, 257

Users, 153

v Value, 275

Value addition, 273

Value of information, 270

Value system, 276

Ways of working, 222

Weakness, 248

VEPRO project, 37

Virtual process, 170

Virtual world, 167

Business Modelling

Research Consortium

Research on business modelling requires existing knowledge from a num­ber of disciplines such as Business Administration and Information Sys­tems. Relevant knowledge areas include corporate strategies, business control, material/production control, marketing management, ISIIT sup­port, and development methodologies. As a single research group cannot have a critical mass in all these areas, multidisciplinary research is needed.

In the Business Modelling research consortium, we have accomplished this through a highly co-operative network of participants from three Swedish universities: Stockholm School of Economics (HHS/SSE), The Royal Institute of Technology in Stockholm (KTHlRIT) and Linkoping University (LiU). Established in 1994, the research consortium is man­aged by professor Anders G. Nilsson together with the researchers Jorgen Andersson, Christer Nellborn and Christofer Tolis.

In order to strengthen the practical experiences in business modelling, we have invited different companies to participate in the consortium. We have accomplished joint research projects with Ericsson, Sweden Post, Social Insurance Office and Statistics Sweden. In addition, we have carried out fruitful research hearings with ABB and Scania. These companies repre­sent different environments for business modelling from private industry to public services.

In addition to the direct research work with the companies, we have established a reference group with recognised professors and professional consultants. The participants in the reference group have various interest­ing experiences in change work in organisations and therefore give a broader perspective on business modelling as a subject area.

Seven people are currently engaged in the reference group: three profes­sors, Janis A. Bubenko jr., Birger Rapp and Bo Sundgren, together with four senior consultants, Claes-Goran Lindstrom, Dr. Bjorn E. Nilsson, Gosta Steneskog and Hans Willars. We have also co-operated with profes­sor Marite Kirikova from Riga Technical University in Latvia. This book has contributions from all people connected to the research consortium.

334 Perspectives on Business Modelling

The research consortium has been funded by NUTEK, the Swedish National Board for Industrial and Technical Development, during the period of 1995-1997

The consortium's Internet homepage is http://www.dsv.su.se/-chnlBM/

About the Authors

Jorgen Andersson, Econ. Lie.

Jorgen Andersson has a licentiate degree in Economic Information Sys­tems and is a researcher at the Department of Computer and Information Science at Linkoping University. His research interest concerns informa­tion technology, management control, and small and medium-sized enter­prises (SMEs). He is co-operating with researchers from the Royal Insti­tute of Technology and Stockholm School of Economics in the consortium "Business Modelling". Jorgen has participated in an EC-project about competitiveness of SME's through information technology. He has also co-operated with the Social Insurance Office of 6stergotIand in their work to introduce process management. He has also been a teacher and director of studies at Linkoping University and responsible for an undergraduate course in accounting and budgeting.

Contact address: Economic Information Systems, Department of Com­puter and Information Science, Linkoping University, SE-581 83 Lin­koping, Sweden. E-mail: joran@ida.liu.se

Janis A. Bubenko jr., Professor, Ph.D.

Janis A. Bubenko jr. has a Ph.D. in Information Systems from the Royal Institute of Technology (KTH). He has been professor in Computer and Systems Sciences at University of Gothenburg and Chalmers University of Technology 1977-81, and at the Royal Institute of Technology and Stockholm University (SU) since 1982. In 1984 he initiated the establish­ment of the Swedish Institute for Systems Development, SISU, and was its managing director during 1985-92. Janis is the author/co-author of eight textbooks and more than 140 research reports and published articles. Current research includes methods for requirements engineering and enterprise modelling. He has participated in a number of ESPRIT projects since 1987 and is currently working with enterprise modelling in the pro­ject ELEKTRA.

Contact address: Department of Computer and Systems Sciences, KTH/ SU, Electrum 230, SE-I64 40, Kista, Sweden. E-mail: janis@dsv.su.se

336 Perspectives on Business Modelling

Marite Kirikova, Associate Professor, Dr.sc.ing.

Marite Kirikova has a Dr.sc.ing. in Information and Information Systems at the Riga Technical University, Latvia. She has 26 scientific publica­tions and works as a scientific researcher and lecturer at Riga Technical University since 1982. She has done fieldwork at Stockholm University, Royal Institute of Technology, and Copenhagen University. Marite cur­rently lectures in system analysis, knowledge acquisition, requirements engineering and project engineering. She also participates in the research project "Intelligent Multi-Level Meta Model Processing System for Con­struction of Structural Modelling Methods and Tools."

Contact address: Department of Systems Theory and Design, Riga Tech­nical University, 1 Kalku, Riga LV-1658, Latvia. E-mail: marite@itl.rtu.lv

Claes-Goran Lindstrom, M.Sc. Majoring in Statistics, Claes-Goran stayed with the Institute of Statistics, Uppsala University, for a couple of years after his exam, teaching and doing applied research and consultancy. Information Need Analysis and methodology for Requirements Analysis were - and still are - main topics of interest. In the 1970s, Claes-Goran was head of the department of Higher Education Statistics at Statistics Sweden. During the 1980s, he was employed as consultant in major Swedish consultancy firms (Statskonsult and PlanData), occupied mostly with requirements analyses, pre-studies and, to some extent, database design. Since 1990, Claes-Goran is running his own business together with five partners in IT plan, a consultancy firm specialising in strategic aspects of IT development and application. Typi­cal clients are large Swedish organisations with global activities, e.g. Ericsson, IKEA and Wallenius Lines.

Contact address: IT plan, Nybrogatan 15, SE-114 39 Stockholm, Sweden. Email: claes-goran.lindstrom@itplan.se

Christer Nellborn, B.Sc.

Christer Nellbom has studied Information Systems on a B.Sc. level at the Royal Institute of Technology (KTH) and Stockholm University (SU). He is since 1995 a management consultant at Astrakan Strategic Development and a part time researcher at the Department of Computer and Systems Sciences at the Stockholm University. Christer has previously been a

About the Authors 337

researcher at the Swedish Institute for Systems Development (SISU) 1988-1995 where his research topics included business modelling, infor­mation systems design, knowledge modelling and expert systems design. He was there one of the designers of the Enterprise Modelling technique in the ESPRIT-project F3. His current research topics include the inte­grated use of models in strategic planning and information systems design. This research is performed mainly in the "Business Modelling" consor­tium and in the ELEKTRA project. Christer has also been a lecturer at the Stockholm University for more than 12 years.

Contact address: Department of Computer and Systems Sciences, KTH/ SU, Electrum 230, SE-I64 40, Kista, Sweden. E-mail: chn@dsv.su.se

Anders G. Nilsson, Professor, Ph.D. Anders G. Nilsson has a Ph.D. in Business Administration with special focus on Information Management from the Stockholm School of Eco­nomics. He has been part-time professor in Economic Information Sys­tems at Linkoping University, and is now professor at Informatics, Karl­stad University, Sweden. Anders is research leader for the consortium "Business Modelling," investigating Swedish companies' interest in busi­ness process orientation. As a research partner at the Institute for Business Process Development (Institute V), he has developed a practical method for helping companies to purchase standard application packages. Anders has been working for 25 years as a process consultant with different information systems projects in industry. He is author/co-author of 12 books in business development, such as the ISAC-method published in "Information Systems Development - A Systematic Approach" (Prentice­Hall, 1981).

Contact address: The Institute for Business Process Development (Institute V), Stockholm School of Economics, Box 6501, SE-l13 83 Stockholm, Sweden. E-mail: Anders.Nilsson@hhs.se

Bjorn E. Nilsson, Ph.D.

Bjorn E. Nilsson has a Ph.D. in Administrative Information Processing from Stockholm University. He has been vice president of the research institute SISU, Swedish Institute for Systems Development, 1987-95. Since then, he is a partner of the Astrakan consultant company. During 25 years as a methods developer and process consultant to different informa-

338 Perspectives on Business Modelling

tion systems projects in government, defence organisations and industry, his main objective has been bridging the gap between information science and actual ongoing development work. A passion has also been the devel­opment of strategies, bridging the gap between business- and IT -develop­ment. Working in a variety of standardisation groups, Bjorn is a co-author of the ISO-report "Concepts and Terminology for the Conceptual Schema". He is also a member of the IFIP 8.1 and a co-author of the FRISCO report "A Framework of Information System Concepts".

Contact address: Astrakan Strategic Development, Gavlegatan 22, SE-l13 30, Stockholm, Sweden. E-mail: bjorn@astrakan.se

Birger Rapp, Professor, Ph.D. Birger Rapp has a chair in Economic Information Systems, Department of Computer and Information Science, Linkoping Institute of Technology and Linkoping University. He has been president of SORA (Swedish Operational Research Association) and EURO (The Association of Euro­pean Operational Research Societies), and is now vice president at large of IFORS (International Federation of Operational Research Societies). He is program director in Management and Economic Information Systems at IMIT (Institute of Management of Innovation and Technology). He belongs to the editorial (advisory) boards of EJOR, IJMSD, JORBEL and Omega. Birger has published books in investment theory, in production planning and in control and principal agent theory. He is a senior consult­ant to many Swedish companies and was the first president of the Pronova Research and Development Board in Sweden.

Contact address: Economic Information Systems, Department of Com­puter and Information Science, Linkoping University, SE-581 83 Lin­koping, Sweden. E-mail: birra@ida.liu.se

Gosta Steneskog, M.Sc.

Gosta Steneskog is a management consultant and researcher at the Insti­tute for Business Process Development (Institute V), Stockholm School of Economics. His competence areas are process management, systems development, maintenance and operation, project management and change management. As a consultant, he has been working for a number of large Swedish companies with a focus in the financial sector. He is participating in an EC-project - CEBUSNET - which is a co-operation between six

About the Authors 339

business schools and universities in Europe. The project is about excellent business processes. Gosta is working as a researching practitioner as he is spending most of his time on management consulting. He has been a pio­neer of Process Management in Sweden and he is author of "Process Management" (Liber, 1990; in Swedish) - the first book in Sweden on this subject.

Contact address: The Institute for Business Process Development (Institute V), Stockholm School of Economics, Box 6501, SE-113 83 Stockholm, Sweden. E-mail: Gosta.Steneskog@hhs.se

Bo Sundgren, Professor, Ph.D. Bo Sundgren has a Ph.D. in Administrative Information Processing from Stockholm University. He is a researcher and part-time professor at the department of Information Management at the Stockholm School of Eco­nomics and the Economic Research Institute. Bo also works as head of Statistical Informatics at Statistics Sweden. His research concerns areas such as business modelling, data modelling, database-oriented systems development, meta information systems, statistical information systems, and the corporation's information system as infrastructure. Bo is interna­tionally active and heads a EC-project concerning meta information sys­tems. His latest published books are "Databasorienterad systemutveck­ling" (Studentlitteratur, 1992; in Swedish), concerning database-oriented systems development, and "Advancing Your Business" (EFI, 1996; also available on http://www.hhs.se/im/efi/ayb.htm). edited together with Mats Lundeberg.

Contact address: Statistics Sweden (SCB), Box 24300, SE-104 51 Stock­holm, Sweden. E-mail: Bo.Sundgren@scb.se

Christofer Tolis, M.Sc. Christofer Tolis has a M.Sc. in Information Management from Stockholm School of Economics. He has prior experience of information systems in organisations, working with technical support and problem solving towards retailers and end-users. Christofer is currently working as a researcher and lecturer at Stockholm School of Economics. His research focuses on the role of business models in organisational development, viewed from a perspective of learning and knowledge. Christofer is co­operating with researchers from the Royal Institute of Technology and

340 Perspectives on Business Modelling

Linkoping University in the research consortium "Business Modelling". Within the consortium, he has been participating in development projects at Ericsson Radio and Sweden Post. As a lecturer, Christofer teaches in the areas of business and systems analysis, and has been responsible for an undergraduate course in information and business processes.

Contact address: Department of Information Management, Stockholm School of Economics, Box 6501, SE-I13 83, Stockholm, Sweden. E-mail: Christofer. Tolis@hhs.se

Hans Willars, M.Sc. Hans Willars is a management consultant in business modelling and busi­ness modelling applications at Astrakan in Stockholm. Prior to joining Astrakan 1995, he was a consultant at PlanData 1978 - 1989, exploring conceptual modelling as a general tool for business, systems and staff development. 1989 - 1995 he was Technical manager of the Business Engineering research area at SISU (Swedish Institute for Systems Devel­opment). Within SISU, the general interest was technology transfer to membership companies and responsiveness to their research needs. Spe­cific responsibilities included further development of business modelling techniques as well as the introduction of high-level modelling applications in membership companies. His primary aim is to make modelling theories operational for the benefit of business. He is a regular lecturer on the sub­ject at the Royal Institute of Technology and Stockholm University.

Contact address: Astrakan Strategic Development, Gavlegatan 22, SE-113 30, Stockholm, Sweden. E-mail: hawil@astrakan.se