1. 1 Sobah Abbas Petersen Adjunct Associate Professor sap@idi.ntnu.no TDT4252 Modelling of Information Systems Advanced Course TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

2. 2 Overview of lecture today Introduction to Enterprise Modelling Based on the following articles: A09: Enterprise Project: The Enterprise Ontology, http://www.aiai.ed.ac.uk/project/enterprise/enterprise/ontology.html A10: Fox, M. S. and Gruninger, M. 1998. Enterprise Modelling. AI Magazine, Fall.109-121. Additional Reading: Vernadat, F. B. (1996), Chapter 3: Enterprise Modelling. Chapman and Hall, pp. 69-117. ISBN: 0 412 60550 3. Lillehagen and Krogstie (2008), Chapter 4: State of the Art of Enterprise Modelling. Springer-Verlag, Berlin, Heidelberg. pp. 91-118. Lecture 8: Introduction to Enterprise Modelling TDT4252, Spring 2012

3. 3 Points of View Enterprise Modelling has been of interest to several research areas, and they all bring in different perspectives to the subject. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Enterprise Modelling Artificial Intelligence Computer Integrated Manufacturing Business Modelling Deductive models Functional aspects Business Strategy

4. 4 Enterprise Models: Definition An enterprise model is a consistent set of special- purpose and complementary models describing various facets of an enterprise to satisfy some purpose of some business users. (Vernadat) In this case, the purpose of business users mostly deals with describing, designing, analysing, deciding or controlling operations and components of this enterprise. The contents of the enterprise model is whatever the business user considers important to describe. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Functional perspective

5. 5 Enterprise Modelling: Definitions A computational representation of the structure, activities, processes, information, resources, people, behaviour, goals and constraints of a business, government, or other enterprise. (Fox & Gruninger) TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Enterprise modelling is the set of activities or processes used to develop the various parts of an enterprise model to address some desired modelling finality. (Vernadat) A collective name for the use of models in Enterprise Engineering and Enterprise Integration. (Bernus)

6. 6 Enterprise Modelling: Purpose To represent and understand how the enterprise works. To capitalise acquired knowledge and know-how for later use. To rationalise and secure information. To (re)design and specify a part of an enterprise (functional, behavioural, information, organisational or structural aspects). To analyse some aspects of the enterprise (economic analysis, oranisational, qualitative, etc.) To simulate the behaviour of some parts of the enterprise. To make better decisions about enterprise operations and organisation To control, coordinate or monitor some parts of the enterprise. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat Remember we said that modelling is not always for IT systems design…… It’s all about the ENTERPRISE, not just an IT system!

7. 7 Scope of Enterprise Modelling Enterprise Modelling is concerned with the what, how, when and who aspects of an enterprise. –What – operations performed. –How – defines the enterprise behaviour, the way things are done. –When – enforces the notion of time as being an essential component of the model. –Who – the resources or agents performing operations of the business process. –How much – economic aspects. –Where – logistics. Four basic aspects to be considered: –Functional, behavioural, information and organisational. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat

8. 8 Terminology Enterprise Engineering: apply the knowledge and methods of systems engineering to the design of enterprises. Enterprise Integration: concerned with providing seamless communication, cooperation and coordination between enterprises as well as among different functionalities within a single enterprise. Enterprise Ontology: a collection of terms and definitions relevant to business enterprises. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

9. 9 Enterprise Modelling Based on the article: A10: : Fox, M. S. and Gruninger, M. 1998. Enterprise Modelling. AI Magazine, Fall.109-121. This provides the operational perspectives of an Enterprise and takes a AI approach. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

10. 10 Background Enterprises must become agile and integrated across their functions to remain competitive. Being agile implies that enterprises must be able to change or adapt easily. If there are changes, we need to be able to determine the impact of changes on all parts of the enterprise. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

11. 11 Role of an Enterprise Model Towards supporting model-driven enterprise design, analysis and operation. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling PerspectivesExamples Design An Enterprise Model should provide the language used to define an enterprise. It should support the possibility to explore alternative designs or models. Need to reason about alternative designs, e.g. can a process be performed in different ways? Can a goal be achieved in a different way? Analysis Need to be able to detect the impact of changes. E.g. how will the purchase of a machine affect the activities? How will changing the processes affect the resource consumption? Operation The Enterprise Model must be able to represent what is planned, what might happen and what has happened. It must supply the information necessary to support the operations of an enterprise.

12. 12 Motivation Agility – the key to remain competitive! Four strategic principles of agility: –An entrepreneurial organistion strategy. –Invest to increase the strategic impact of people and information on the bottom line. –Use the virtual organisation strategy as a dynamic structure both inside and outside the enterprise. –Adopt a value-based strategy to configure your products and services into solutions for your customer. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling A greater degree of communication, coordination and cooperation within and among enterprises – Enterprise Integration.

13. 13 Enterprise Integration (1) It is concerned with providing seamless communication, cooperation and coordination between enterprises as well as among different functionalities within a single enterprise. It is aimed towards improved interoperability. It is concerned with facilitating information, control and material flows across organisational boundaries by connecting all the necessary functions and heterogeneous functional entities in order to improve communication, cooperation and coordination within the enterprise, such that the enterprise behaves as a whole. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

14. 14 Enterprise Integration (2) 5 Principles of Behavioural and Information Integration: 1.When people understand the vision, they will do the right thing. 2.Empowered people. 3.Comprehensive and effective communications network. 4.Democratisation and dissemination of information throughout the network. 5.Information freely shared with empowered people, distributing the decision process throughout the organisation. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Structural Integration Behavioural Integration Information Integration

15. 15 Enterprise Integration (3) Achieving integration requires an Information Infrastructure that supports the communication of information and knowledge, the making of decisions and the coordination of actions. At the heart of this infrastructure lies a model of the enterprise. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Enterprise Model Information Infrastructure Integration (Information etc.) Agility Competitive

16. 16 Enterprise Modelling: Challenges All enterprise functions do not share the same Enterprise Models – correspondence problem. –Each enterprise model may have the same concepts (e.g. activity), but they may use different names for them (operation vs. task). –Some translation of concepts is required for communication. –The concepts and representation lack adequate specifications of what the concepts (terminology) mean (semantics). Legacy systems – enterprises have their data in independent systems. Cost of designing, building and maintaining an enterprise model is huge. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

17. 17 GEM: Generic Enterprise Model An object library that defines the classes of objects that are generic across a type of enterprise, such as manufacturing or banking, and can be used (that is instantiated) in defining a specific enterprise. A GEM is composed of: –A set of object classes structured as a taxonomy, with subclass and super-class relationships. –For each object class, a set of relations linking it to other object classes, plus a definition of the intended meaning of the relation. –For each object class, a set of attributes plus a definition of the intended meaning of each attribute. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

18. 18 Benefits of GEM Predefined object library – allows the modeller to quickly move on to model instantiation. Path for growth – Benefit from the experience of others. Shared conceptualisation – by adopting a GEM the other parts of the organisation stand a greater chance of understanding what is represented in the Enterprise Model. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

19. 19 Commonsense Enterprise Models (1) The usefulness of an instantiated GEM is determined by the functions it can support, e.g. scheduling, forecasting, etc. We should be able to query the model and obtain answers to support the organisation. Where does the GEM end and inference begin? Three types of queries: –Factual (direct retrieval of information, surface-level processing, e.g. relational database). –Expert (requires that the information system has extensive knowledge, deep-level processing, supports some reasoning). –Common Sense – requires that the information system be able to deduce answers to questions that one would normally assume can be answered if one has common sense understanding of the enterprise. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

20. 20 Commonsense Enterprise Models (2) Commonsense queries: –Ability to answer queries as though the model has a common sense understanding of the enterprise. –Such an understanding often represents knowledge about the enterprise acquired over a relative short time and does not require expert knowledge. –Examples of such knowledge: organisational structure, roles, goals and resources would enable the deduction of what resources a person might allocate based on his/her role in the organisation. –We refer to it as shallow-level processing: retrieval that requires a small number of deductions to answer the query. Requires a set of rules of deduction, axioms. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

21. 21 From GEM to DEM GEMs can be of two types: –GEMs without axioms where deductions are specified by a query. –GEMs with axioms that support deduction: DEM DEMs would be able to answer queries such as –“who does Joe work for?” A DEM possesses common sense if the axioms define the meaning of the relations and attributes in the object library. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

22. 22 A11: Evaluating Enterprise Models (1) Several efforts and Enterprise Models seek to create a sharable representation of the enterprise. Yet there is no well-defined set of criteria to help us determine which GEM is right for our purposes. Fox and Gruninger propose six characteristics to evaluate Enterprise Models (DEMs). TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

23. 23 A10: Evaluating Enterprise Models (2) TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling CharacteristicDescription Functional completenessCan the DEM represent the information necessary for a function to perform its task? GeneralityTo what extent is the DEM shared between the diverse activities in the enterprise, e.g. finance and manufacturing? EfficiencyDoes the DEM support efficient reasoning? PerspicuityIs the DEM easily understood by users so that it can be applied consistently and interpreted across the enterprise? Precision granularityIs there a core set? Does the representation support reasoning at various levels of abstraction and detail? MinimalityDoes the DEM contain the minimum number of objects necessary?

24. 24 TOVE DEM Toronto Virtual Enterprise Deductive Enterprise Model TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Define Competence Define Terminology Set of competency questions Objects, relations and attributes Define specifications and constraints on terminology First-order logic, Prolog Test competency Prove competency questions using Prolog axioms

25. 25 TOVE Ontology TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

26. 26 TOVE: Activity Cluster TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Enabling stateCaused state

27. 27 Enterprise Project: The Enterprise Ontology Based on the article: A09: Enterprise Project: The Enterprise Ontology, http://www.aiai.ed.ac.uk/project/enterprise/enterprise/ ontology.html http://www.aiai.ed.ac.uk/project/enterprise/enterprise/ ontology.html This brings in a business and AI perspective. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

28. 28 Enterprise Ontology Developed by a project called Enterprise Project (UK). Partners: AI Applications Institute, University of Edinburgh, IBM, Lloyds Register, Logica, Unilever. In this project, the aim of Enterprise Modelling is to obtain an enterprise-wide view of an organisation which can then be used as a basis for taking decisions. The project focused on management innovation and the strategic use of IT to help manage change. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

29. 29 Business Perspective Businesses have a need to increase their relative and absolute performance. e.g. –improve customer satisfaction; improve financial performance; decrease cycle times; and adapt to growth and recession cycles. To achieve successful management of change, businesses need to be able to monitor and improve their performance against strategic objectives. Businesses need support to analyse and improve various aspects of how a business works and how it is organised. The project aimed at providing a method and computer toolset which will help capture aspects of a business and analyse these. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

30. 30 Technical Perspective The framework for integrating methods and tools is solidly based on an ontology for enterprise modelling. It supports a generic core of practical knowledge based modelling tools and methods for business application. Toolset consisted of: –A Procedure Builder for capturing process models. –An Agent Toolkit for supporting the development of agents. –A Task Manager for integration, visualisation, and support for process enactment. –An Enterprise Ontology for communication. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

31. 31 Enterprise Ontology: Concepts (1) Activities and Processes –Intended to capture anything that involves “doing”, including “action”. –Linked with the idea of a “doer”. A person or an organisational-unit or machine. –Closely related to “resource”: something used or consumed in an Activity. Organisation –A legal entity, or an organisational unit. –E.g. person, machine, corporation. –Terms related to how an organisation is structured. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

32. 32 Enterprise Ontology: Concepts (2) Strategy –Central concept is “Purpose”: captures the idea of something a “plan” can “help achieve”. –Terms related to high-level planning of an enterprise. –Vision, mission, objectives, goals, strategy planning, strategic action. Marketing –Central concept is “sale”: an agreement between two legal entities for the exchange of a “product” for a “sale-price”. –Terms related to marketing and selling of goods and services. –Vendor, customer, competitor. –Analysis of market: features of products, needs of customers, etc. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

33. 33 Role of Enterprise Ontology The major role of the Enterprise Ontology is to act as a communication medium between: –Different people, including users and developers, across different enterprises. –People and implemented computer systems. –Different implemented computer systems, including modules of the enterprise toolset, DBMS, etc. It is intended to assist: –Acquisition, representation and manipulation of enterprise knowledge. –Structuring and organising libraries of knowledge. –The explanation of the rationale, inputs and outputs of the Enterprise toolset modules. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

34. 34 Enterprise Ontology: Terms (1) TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

35. 35 Enterprise Ontology: Terms (2) TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling The terms include entities and relationships, and rules to operate on them.

36. 36 Enterprise Ontology: Observations Business focus. Strong on capturing the business strategy and business activities (e.g. strategy, vision, mission, goal). Activity modelling rather than Process Modelling – focus on activity planning and not much on the flow of data or material between the activities. Little focus on Product modelling: this appears only in the Marketing aspect as a feature of a product or the sale price or about branding a product. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

37. 37 TOVE and Enterprise Ontology Both the Enterprise Models proposed were defined and developed in a formal language: logic. Good for unambiguous definition of concepts. This is good for implementing and proving axioms, or rules defined in a formal language. ÷Difficult for business managers to understand. ÷Difficult to visualise. A simple graphical representation with a rule engine is preferred. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

38. 38 Points of View Enterprise Modelling seen from the manufacturing perspective TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Enterprise Modelling Artificial Intelligence Computer Integrated Manufacturing Business Modelling Functional aspects

39. 39 Enterprise Modelling in Manufacturing Environments (1) To correctly model information in the manufacturing environment, one must first model the functionality and behaviour. To model functionality and behaviour, we need to model the resources and temporal events. Finally processes and information flow and then allocated to an organisational boundary. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat

40. 40 Enterprise Modelling in Manufacturing Environments (2) An enterprise model usually consists of (but not limited to): –Product models –Resource models –Activity models –Information models –Organisation models –Economic models – cost-oriented analysis of the enterprise. –Optimisation and decision-making models – from operations research and control theory. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat

41. 41 Enterprise Modelling Process TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Enterprise Modelling Process Modelling finality Methodology Metrics Language Ontology Knowledge &model representation Enterprise Engineer An enterprise (knowledge) Domain ontologies Library of reusable models Process models Data models Other model types Domain ontologies Ref: Vernadat

42. 42 Enterprise Modelling Principles (1) Principle of separation of concerns: –It would be unrealistic to consider an enterprise as a whole. It must be analysed piece by piece. Principle of functional decomposition: –Major functions structured as sub-functions. Principle of Modularity: –To facilitate management of change. Principle of Genericity: –Important to define standard building blocks as generic classes to factor common descriptive attributes and behaviours. Principle of reusability: –To reduce modelling efforts and increase modularity. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat

43. 43 Enterprise Modelling Principles (2) Principle of separation of functionality and behaviour: –Functionality: things to be done; behaviour: the way things are done. Principle of process and resource decoupling: –Consider separately the things being done (processes) and the agents performing them (resources). Principle of conformity: –Deals with syntax and semantics of the model to really accurately represent what it’s supposed to model. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat

44. 44 Enterprise Modelling Principles (3) Principle of model visualisation: –To easily communicate models, e,g. simple graphical formalisms. Principal of simplicity vs. adequacy: –The modelling language to be rich enough to express what needs to be expressed, yet simple enough so that users can easily learn to use it. Principle of management of complexity: –Must permit the representation of systems of great complexity. Principle of rigor of representation: – The model must neither be ambiguous nor redundant. Principle of separation of data and control: –To support real-time systems. The process is operated not by the availability of data, but by events. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat

45. 45 Benefits of Enterprise Modelling To build a common enterprise culture and shared vision to be communicated through the enterprise via the model, used as a common language. To capitalise enterprise knowledge and know-how to build an enterprise memory, which becomes a part of the enterprise assets. To support decision making concerning enterprise improvement or control. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Ref: Vernadat

46. 46 Summary An introduction to Enterprise Models and Enterprise Modelling –Different perspectives to Enterprise Modelling. –Roles and purposes of Enterprise Modelling. –Two Enterprise Modelling ontologies. –Ways to evaluate Enterprise Models. –Principles of Enterprise Models. TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling

47. 47 Discussion Let us review what we have been doing in the previous lectures and the assignment work w.r.t. the contents of today’s lecture: Have we been doing Enterprise Modelling? TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling Why do you think what we have been doing is Enterprise Modelling?

48. 48 Next week Next lecture: 16 February 2012, 0815-1115hrs. MA21 –Enterprise Modelling continued TDT4252, Spring 2012 Lecture 8: Introduction to Enterprise Modelling