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Integrating business value in enterprise architecture modeling and analysis

Singh, Prince Mayurank (2013) Integrating business value in enterprise architecture modeling and analysis.

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Abstract:The aim of this research is to better understand the primary activity of a firm and the source of its survival – value creation, how a firm creates value for the consumer. The approach adopted in this research is to analyze value creation from a process level viewpoint. There is big difference between specifying a value offering to the customer in a board room and implementing it in practice. A common problem which managers face is translating the value creation logic of a firm from strategy to implementation. Process and IT managers in a firm use different modeling techniques to model and understand value creation in the firm. The enterprise architecture (EA) of a firm is an enterprise wide model showing the Business and IT architecture of the firm. EA’s are a unique way of modeling the processes and infrastructure of a firm because they lie at the interface of strategy and process level of abstraction. This research is an attempt to show value creation using EA models. The EA modeling language which has been used for this research is ArchiMate. ArchiMate language consists of different elements which model the business and IT processes of a firm and also the supporting infrastructure. The main research question of the thesis is how value creation can be shown in terms of ArchiMate. This main question has been further divided into three research sub questions. An extensive literature survey is done for building a sound background for answering the research questions. This literature survey is used to formulate a value creation framework at the process level. Then, a mapping is attempted between the framework developed and ArchiMate. The output of this research is a 6 step methodology which will aid managers to model value creation using ArchiMate elements. As a part of the methodology an algorithm is developed which relates a value proposition offered by the firm (to its customers) to processes and infrastructure of the firm which realize it. This algorithm when applied to a given ArchiMate model results in a smaller model which is called the value model for the particular value proposition. This algorithm is implemented in the EA modeling tool, BiZZdesign Architect ®. The deliverables of the methodology are a value creation model and value table. The value creation model can be used for cost benefit, analysis, sensitivity analysis and traceability analysis. These possible uses of the value creation model are discussed in detail. Value tables formed as a part of the methodology, show how the resources and the services acquired from the network can be incorporated in the value model. To explain and demonstrate the methodology a case study is presented. Another example case is used to demonstrate the uses of the value creation model. The merit and applicability of the methodology is evaluated by combination of a survey and personal interview with experienced researchers and practitioners in the field EA modeling.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Information Technology MSc (60025)
Link to this item:http://purl.utwente.nl/essays/63695
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