Introduction
In our Enterprise Architecture discussion series we have recently introduced the concept of reference architecture framework that helps in building the actual enterprise architecture frameworks which in turn helps in building an enterprise.
We have presumably read tons of enterprise architecture series which talk about different topics of enterprise architecture. Now let us frame few questions about the enterprise architecture. Who builds the enterprise? What do we build within the enterprise? What are the basic activities happening within the enterprise? All these questions are very important in terms of understanding the enterprise architecture. Enterprise is actually represented by 'Enterprise Business Entity' or 'Enterprise Entity' or simply 'Entity'. Therefore, enterprise entity builds the enterprise. In other way we can say understanding the concept of enterprise entity will help us to understand the enterprise puzzle.
Enterprise Entity: Why Is It So important?
GERAM introduced the concept of “Entity Identification” within its process oriented concepts. PERA introduces the “Enterprise Business Entity” as the first step of enterprise master plan. The reason behind putting so much importance on this is very straightforward. We can say, without identifying the nature of the entity, we will not be able to build our enterprise landscape. Having said this, our next job should be defining the entity in a simplistic way. So many different definitions of entity are available in the current market; however, I prefer to define the entity in PERA way as it is very easy to understand and reveal the entity nature very efficiently. Therefore “Depending upon management's desires, on the existing economic and business climate, on the expected returns from the proposed project, and especially on the availability of economic and technical resources; the size of the system covered by the proposed enterprise integration program may range from a single production line, through major plant units, to whole manufacturing plants, or even to whole companies. In any case, the overall unit, division, plant or complete company involved in the chosen study will be called the Enterprise Integration Business Entity.
The Enterprise Integration Business Entity or more briefly, the Enterprise Business Entity (EBE) is therefore that agreed upon selection of products, functions and locations that are the basis for the Enterprise Integration Master Plan. An Enterprise Business Entity may consist of anything from a part of a Business Unit, to several Business Units, up to and including the whole Enterprise.” [PERA page 51].
Entity therefore, depends on three main concepts:
• Enterprise products
• Enterprise functionalities
• Location
The following diagram explains the enterprise entity concept:
Fig. 1: Enterprise Business Entity. Copyright Image Source [PERA].
In our enterprise architecture, enterprise life cycle actually represents the life cycle of each of the enterprise entity. Enterprise Life History captures the inter-relationship between different entity’s life cycle stages. Mergers and acquisitions kind of complex topics are easily explained in the context of enterprise entity and enterprise life history. Even off-source based strategic enterprise activities could be easily explained with the concept of enterprise entity identification and related life history traceability. Unfortunately most of the enterprise architectures are very silent about these concepts.
Enterprise Business Entity Identification
Answer to these following few important questions is very useful exercise to identify the enterprise business entity as described in PERA Master Plan [PERA]:
• What is the major business activity of this Enterprise Business Entity?
• Is it the only business activity of the company at this address? If not, explain the organisation and process relationships (or independence).
• What is the major company purpose accomplished by this unit?
• What is the management structure of this Enterprise Business Entity? Give organisational diagram, names of present incumbents, etc.
• Document the physical and functional boundaries of the Enterprise Business Entity.
• Does this Business Unit consider this Enterprise Business Entity as strategic? Will capital be committed to maintain and enhance this Enterprise Business Entity?
Entity Types and Their Relationship
GERAM introduced two types of enterprise entities: an operation oriented set and a generic and recursive set of enterprise entity types. The following table briefly highlights the different types of entity types introduced by GERAM within its GERA [GERAM]:
The Entity Type 1 initialises the creation of all other types of recursive entities. With the possible exception of the Entity Type 1 all enterprise entities will have an associated entity life-cycle, which may have an impact to all other enterprise entity activities. That is why enterprise life cycle itself is not sufficient to integrate the enterprise activities and enterprise life history is introduced (Refer to MDA Radar Issue 10). The following diagram depicts the relationship between these recursive entity types in the context of enterprise life cycle:
Fig. 2: Relationships Between GERA Entity Types. Image Source [GERAM]. Used with permission of P. Bernus.
The Entity Type 1 initialises the creation of all other types of recursive entities. With the possible exception of the Entity Type 1 all enterprise entities will have an associated entity life-cycle, which may have an impact to all other enterprise entity activities. That is why enterprise life cycle itself is not sufficient to integrate the enterprise activities and enterprise life history is introduced (Refer to MDA Radar Issue 10). The following diagram depicts the relationship between these recursive entity types in the context of enterprise life cycle:
Figure 3: Relationships Between Life-cycles of GERA Entity Types. Image Source [GERAM]. Used with Permission of P. Bernus
Conclusion
Enterprise entity identification is therefore extremely important concept for any Type 1 Enterprise Architecture framework. Enterprise classification frameworks like E=MC2 (Model driven enterprise translating/classification framework introduced by the author) and Zachman framework [Zachman] are useful tool to identify the enterprise business entity and the relevant recursive entity types which will be further discussed in this column in forthcoming weeks. Successful identification of enterprise entity types helps us deriving Type 2 and Type 3 types enterprise architecture framework (Refer MDA Radar Issue 8) business processes, enterprise activities, domain processes and service oriented architecture. Enterprise Entity identification also helps us to understand the SOA concept derivation techniques and possibly explains the current industry SOA hypes coined by thought provocative industry leaders to utilise the technology innovation opportunity which will again be discussed in our forthcoming issues. In a nutshell we have now understood the multifaceted benefits of enterprise entity identification step. Stay tuned for our next week’s discussion.
References
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GERAM: Generalised Enterprise Reference Architecture and Methodology. Version 1.6.3 Also in P.Bernus, L.Nemes and G. Schmidt (Eds) Handbook on Enterprise Architecture, Berlin : Springer (2003) pp 22-64.
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[GERAM] GERAM: Generalised Enterprise Reference Architecture and Methodology. Version 1.6.3 ( http://www.cit.gu.edu.au/~bernus/taskforce/geram ) also in P.Bernus, L.Nemes and G. Schmidt (Eds) Handbook on Enterprise Architecture, Berlin : Springer (2003) pp 22-64. -
[PERA] A HANDBOOK ON MASTER PLANNING AND IMPLEMENTATION FOR ENTERPRISE INTEGRATION PROGRAMS Based On The Purdue Enterprise Reference Architecture and the Purdue Methodology Purdue Laboratory for Applied Industrial Control Edited by Theodore J. Williams, Gary A. Rathwell, Hong Li. February 2001 (Revised from July 1999 PERA website version) [Zachman] Extending and Formalising the framework for information systems architecture by J.A.Zachman and J.F.Sowa Published in IBM Systems Journal, 31(3): p 590-616, 1992
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