1.1. Virtual EnterprisesMost Ley 2000]) translate directly into actions that are necessary to alter business processes: changing the flow of activities of a business process, changing the actors who are performing these activities, changing the tools that support these activities, and so on. These might result in moving the execution of (a subset of) the activities of the business processes to partners. The result could be multiple business partners having to cooperate to perform the business processes of a given company. The company in fact becomes a virtual company (or virtual enterprise). This term indicates that externally, the company looks like a real companyperforming all of its business processes itselfbut in practice, that is not what is actually happening. Others are partially running the company's business processes, making the company virtual in this sense. 1.1.1. Business Process OptimizationThe model of a business process prescribes the order in which a business must execute the activities that constitute it and under which conditions it must perform each of the activities. Collectively, this kind of prescription is called control flow. The control flow massively influences business-relevant properties of a business processsuch as its total cost and its overall durationand thus the competitiveness of a company:
There are other business-relevant Ley 2000]. Workflow systems allow monitoring of the business properties of individual business processes or aggregations of business processes at runtime. They also support the analysis of corresponding execution histories. Based on monitoring and analysis of results, you can change the model of a business process, if required, to further optimize it, especially when benchmarking shows that the execution of a business process is not competitive in terms of its key business parameters, such as cost or duration.Sometimes, modifying the control flow of a business process is insufficient to hit the target values for certain business properties. For example, the cost structure within a company or wages for certain required staff might be too high to meet business expense targets. In such situations, a company's business process cannot gain competitiveness without significant re-engineering. The company (or a certain branch or location within a company) should probably determine its core competencies, focus on executing only the activities that correspond to these core competencies, and outsource the noncore competencies. Of course, the constraint is that outsourcing must result in hitting the target objectives of the subject business properties. SOA and Web service technology facilitates this kind of outsourcing in a secure, reliable manner. 1.1.2. Collaborations, Mergers, and AcquisitionsFigure 1-1 demonstrates an original process (denoted by "P") that a company runs. The company determines that it is no longer competitive in performing activities A, B, and E. It finds two partners that can run these activities and meet the business goals. Partner 1 runs activities A and B, and Partner 2 runs activity E. The company re-engineered the original process into a new process (P'). In the new process, activity AB kicks off the execution at the first partner (Partner 1), and E' starts the execution at the second partner (Partner 2). The company now has a new process P', which results in increased competitiveness. Figure 1-1. Outsourcing activities to partners.![]() 1.1.3. Resource SharingIn addition Ley 2004], [Rappa 2004]). Within this utility computing model, computer resources and other IT related resources are offered in a similar manner to traditional utilities such as electricity or telephone. The usage of the utility IT resources to run parts of a business process is metered and charged on this basis. You will read more about this topic later. |