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Using a Fractal Enterprise Model (FEM)
for Business Model Innovation
- a research-in-progress paper
Ilia Bider and Erik Perjons
Department of Computer and Systems Sciences
Stockholm University
[ilia|perjons]@dsv.su.se
BPMDS’17 Working Conference
Business process modeling,
development and support
The Fractal Enterprise Model (FEM)
• The fractal enterprise model (FEM) starts with a process and presents
assets (resources) needed for running this process ….
The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the asset
The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the asset
The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the assets
Building a FEM - using patterns
• Process-to-asset patterns/archetypes
Building a FEM - using patterns
• Asset-to-process pattern/archetype
Building a FEM - using patterns
• Applying the patterns will create a FEM – and the final result will be
an hierarchy of processes and assets
The Fractal Enterprise Model (FEM)
FEM can be used for:
• finding “invisible” processes that exists or should exist in the enterprise
• understanding how certain assets and processes are used in different
parts of the enterprise
• identifying capabilities of an enterprise
• planning business model transformation
• …
The Fractal Enterprise Model (FEM)
FEM can be used for:
• finding “invisible” processes that exists or should exist in the enterprise
• understanding how certain resources and processes are used in
different parts of the enterprise
• identifying capabilities of an enterprise
• planning business model transformation
• …
An approach for business model transformation
The approach consist of two steps:
1) Generating hypotheses
2) Assessing promising hypotheses
Demonstration - book-sales-on-the-web business
transformation (inspired by Amazon case)
An approach for business model transformation
The approach consist
of two steps:
1) Generating
hypotheses
2) Assessing
promising
hypotheses
An approach for business model transformation
An approach for business model transformation
An approach for business model transformation
An approach for business model transformation
An approach for business model transformation
The approach consist of two steps:
1) Generating hypotheses
2) Assessing promising hypotheses
Decision makers are often book readers
An approach for business model transformation
One platform vs many
platforms for customers
An approach for business model transformation
More staff might be
required
An approach for business model transformation
Decision makers are often book readers
One platform vs many
platforms for custumers
More staff might be
required
An approach for business model transformation
The challenge addressed – how to extend or
change an existing business model
Next step
• Develop transformation pattern based on FEM
• Using an infrastructural assets for building a service for external customer
• From designer to manufacturer
• From manufacturer to designer
• From educator to consultat
• ….
• Develop qualitative and quantitative measures
• Supporting the analysis when comparing nodes
Earlier publications of FEM
• Bider, I., Perjons, E., Elias, M., & Johannesson, P. (2016). A fractal enterprise model
and its application for business development. Software & Systems Modeling, 1-27.
• Josefsson, M., Widman, K. &Bider, I. (2015). Using the Process-Assets Framework for
Creating a Holistic View over Process Documentation. In : Enterprise, Business-
Process and Information Systems Modeling, LNBIP, Vol. 214. Springer, Stockholm
(2015) 169-183,
• Henkel, M., Bider, I. & Perjons, E. (2014, June). Capability-based business model
transformation. In International Conference on Advanced Information Systems
Engineering (pp. 88-99). Springer International Publishing.
• Elias, M., Bider, I. & Johannesson, P. (2014). Using Fractal Process-Asset Model to
Design the Process Architecture of an Enterprise: Experience Report. In BPMDS 2014
and EMMSAD 2014. LNBIP 175, Thesalonniki, Greece. Springer, pp.287-301.
• Bider, I., Perjons, E. & Elias, M. (2012). Untangling the Dynamic Structure of an
Enterprise by Applying a Fractal Approach to Business Processes. In Proceedings of
PoEM 2012. LNBIP 134, Oslo, Norway. Springer, pp.61-76.

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Using a Fractal Enterprise Model for Business Model Innovation

  • 1. Using a Fractal Enterprise Model (FEM) for Business Model Innovation - a research-in-progress paper Ilia Bider and Erik Perjons Department of Computer and Systems Sciences Stockholm University [ilia|perjons]@dsv.su.se BPMDS’17 Working Conference Business process modeling, development and support
  • 2. The Fractal Enterprise Model (FEM) • The fractal enterprise model (FEM) starts with a process and presents assets (resources) needed for running this process ….
  • 3. The Fractal Enterprise Model (FEM) • … and for each asset, FEM presents processes for how to aquire, maintain or retire the asset
  • 4. The Fractal Enterprise Model (FEM) • … and for each asset, FEM presents processes for how to aquire, maintain or retire the asset
  • 5. The Fractal Enterprise Model (FEM) • … and for each asset, FEM presents processes for how to aquire, maintain or retire the assets
  • 6. Building a FEM - using patterns • Process-to-asset patterns/archetypes
  • 7. Building a FEM - using patterns • Asset-to-process pattern/archetype
  • 8. Building a FEM - using patterns • Applying the patterns will create a FEM – and the final result will be an hierarchy of processes and assets
  • 9. The Fractal Enterprise Model (FEM) FEM can be used for: • finding “invisible” processes that exists or should exist in the enterprise • understanding how certain assets and processes are used in different parts of the enterprise • identifying capabilities of an enterprise • planning business model transformation • …
  • 10. The Fractal Enterprise Model (FEM) FEM can be used for: • finding “invisible” processes that exists or should exist in the enterprise • understanding how certain resources and processes are used in different parts of the enterprise • identifying capabilities of an enterprise • planning business model transformation • …
  • 11. An approach for business model transformation The approach consist of two steps: 1) Generating hypotheses 2) Assessing promising hypotheses
  • 12. Demonstration - book-sales-on-the-web business transformation (inspired by Amazon case)
  • 13. An approach for business model transformation The approach consist of two steps: 1) Generating hypotheses 2) Assessing promising hypotheses
  • 14. An approach for business model transformation
  • 15. An approach for business model transformation
  • 16. An approach for business model transformation
  • 17. An approach for business model transformation
  • 18. An approach for business model transformation The approach consist of two steps: 1) Generating hypotheses 2) Assessing promising hypotheses
  • 19. Decision makers are often book readers An approach for business model transformation
  • 20. One platform vs many platforms for customers An approach for business model transformation
  • 21. More staff might be required An approach for business model transformation
  • 22. Decision makers are often book readers One platform vs many platforms for custumers More staff might be required An approach for business model transformation
  • 23. The challenge addressed – how to extend or change an existing business model
  • 24. Next step • Develop transformation pattern based on FEM • Using an infrastructural assets for building a service for external customer • From designer to manufacturer • From manufacturer to designer • From educator to consultat • …. • Develop qualitative and quantitative measures • Supporting the analysis when comparing nodes
  • 25. Earlier publications of FEM • Bider, I., Perjons, E., Elias, M., & Johannesson, P. (2016). A fractal enterprise model and its application for business development. Software & Systems Modeling, 1-27. • Josefsson, M., Widman, K. &Bider, I. (2015). Using the Process-Assets Framework for Creating a Holistic View over Process Documentation. In : Enterprise, Business- Process and Information Systems Modeling, LNBIP, Vol. 214. Springer, Stockholm (2015) 169-183, • Henkel, M., Bider, I. & Perjons, E. (2014, June). Capability-based business model transformation. In International Conference on Advanced Information Systems Engineering (pp. 88-99). Springer International Publishing. • Elias, M., Bider, I. & Johannesson, P. (2014). Using Fractal Process-Asset Model to Design the Process Architecture of an Enterprise: Experience Report. In BPMDS 2014 and EMMSAD 2014. LNBIP 175, Thesalonniki, Greece. Springer, pp.287-301. • Bider, I., Perjons, E. & Elias, M. (2012). Untangling the Dynamic Structure of an Enterprise by Applying a Fractal Approach to Business Processes. In Proceedings of PoEM 2012. LNBIP 134, Oslo, Norway. Springer, pp.61-76.