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Enterprise Engineering

textbook



























Uni versi t y of St el l enbos ch | I ndust ri al Engi neeri ng | Ent er pri se Engi neeri ng Gr oup

Page |
i



I

About this
book


This book was developed to convey the intricate subject, Enterprise Engineering, in the easiest of
methods. Therefore, various colouring and styling features was developed to ease the process of
grasping the content of the subject.





Chapter colouri
ng

Each chapter is assigned a definite colour, and this colour is used throughout the text, and
accompanying slideshows
, to simplify the relation of the specific chapter to the bigger context of the
subject.




Critical

information

Case

studies,
definitions
and I mportant (additional
)

information is each assigned a colour

and
specific structure to stress the importance thereof.






Navigational Structure

Each page

contains a navigational header which shows how the current section fits into the current
chapter
and the logical flow of the
entire
textbook.


Introduction

>
The Enterprise & its Life Cycles
>
Innovation & the need for change

>
Executing Enterprise Engineering

> Supporting Disciplines



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ii



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Verantwoordelikheids toedeling

#

Titel

Author

Responsible

1

I ntroduction

Stephan

(
stephanmarais@sun.ac.za
)

Stephan

2

The Enterprise and its Life Cycles

Corné (
corne@sun.ac.za
)

Stephan

3

I nnovation and the Need for Change

Heinz (
Heinz@indutech.co.za
)

Jaco

(
jlr@sun.ac.za
)

4

Applying Enterprise Engineering

Louis (
louis@indutech.co.za
)

Jaco

Page |
iii



5

Supporting disciplines, method & tools


Jaco


Additionele verantwoordelikhede

Case Studies

Jaco

Layout

Stephan









Page |
iv



II

Contents

I

About this book
................................
................................
................................
.......................

i

I I

Contents

................................
................................
................................
................................

iv

I II

List of Figures

................................
................................
................................
..........................

vi

I V

List
of Tables

................................
................................
................................
..........................

vii

1

Introduction

................................
................................
................................
............................

1

2

The Enterprise and its Life Cycles

................................
................................
.........................

3

2.1

Defining the Enterprise

................................
................................
................................
..

3

2.1.1

Definitions of an Enterprise

................................
................................
....................

3

2.1.2

Enterprise Types and their Goals
................................
................................
...........

3

2.1.3

The Architecture of an Enterprise

................................
................................
.........

3

2.2

Life Cycles

................................
................................
................................
.......................

3

2.2.1

Life Cycle Concepts

................................
................................
...............................

5

2.2.2

The Product Life Cycle

................................
................................
...........................

5

2.2.3

The Technology Life Cycle

................................
................................
....................

8

2.2.4

The Design Life Cycle

................................
................................
...........................

10

2.2.5

The Project Life cycle

................................
................................
...........................

11

2.2.6

The Enterprise Life Cycle

................................
................................
......................

13

3

Innovation and the Need for Change

................................
................................
.............

15

3.1

Innovation theory

................................
................................
................................
.........

15

3.2

Defining Innovation
................................
................................
................................
......

16

3.2.1

Competitiveness and the need for Innovation

................................
...............

17

3.2.2

Types of I nn
ovation
................................
................................
...............................

22

3.2.3

Innovation Role Players

................................
................................
........................

22

3.3

The I nnovation process

................................
................................
...............................

23

3.3.1

The I nnovation Life Cycle

................................
................................
....................

23

3.3.2

Innovation Models

................................
................................
................................

23

3.3.3

Fugle I nnovation Model

................................
................................
.......................

24

3.3.4

The I nnovation Reference Space
................................
................................
.......

24

3.4

Configuring your enterprise for innovation
................................
...............................

29

3.5

Measuring Innovation

................................
................................
................................
..

35

Page |
v



3.6

Summary
................................
................................
................................
........................

35

4

Applying Enterprise Engineerin
g
................................
................................
.......................

38

4.1

Objectives

................................
................................
................................
.....................

38

4.2

Requiremen
ts

................................
................................
................................
................

38

4.3

The enterprise engineering process

................................
................................
..........

39

4.4

How reference architectures assist enterprise engineering
................................
...

40

4.4.1

Definition and

use of Reference Architectures

................................
................

40

4.4.2

PERA and the Master Plan

................................
................................
...................

42

4.5

Planning, executing and managing enterprise engineering

................................

45

4.5.1

Master Plan

................................
................................
................................
............

46

4.5.2

Relating the Master Plan to PERA

................................
................................
.......

63

4.6

Summary
................................
................................
................................
........................

66

5

Supporting Disciplines, Methods and Tools

................................
................................
......

68

5.1

Supporting Disciplines

................................
................................
................................
..

68

5.
1.1

Industrial Engineering

................................
................................
...........................

69

5.1.2

Organisational Design/Human Systems
................................
.............................

69

5.1.3

Information Technology

................................
................................
.......................

69

5.1.4

Business Process Re
-
engineering

................................
................................
........

70

5.1.5

Systems Engineering

................................
................................
.............................

84

5.1.6

Knowledge Management
................................
................................
...................

92

5.1.7

Project Management
................................
................................
...........................

97

5.2

Supporting Methods & Tools

................................
................................
.......................

98

5.2.1

Tools Used in the different disciplines and techniques underlying Enterprise Engineering

98

5.2.2

Tools for knowledge management

................................
................................
....

98

5.2.3

Tools for Systems
Engineering

................................
................................
............

100

5.3

Summary
................................
................................
................................
......................

101

V

References
................................
................................
................................
..........................

103





Page |
vi



III

List of Figures


No table of figures entries found.






Page |
vii



IV

List of Tables



No table of figures entries found.
I nt
roduction

Page |
1



1

Introduction


(1.1 I ntro)

(1.2 What is Enterprise Engineering?)

(1.2.1
-
3 Defining Enterprise, Engineering & EE)

(1.3 the EE Paradigm)


From Wikipedia (
http://
en.wikipedia.org/wiki/Enterprise_Engineering
)


Enterprise engineering, related to systems engineering and software engineering, is the discipline
concerning the design and the engineering of enterprises, regarding both the
ir business and
organization.


I n the field of engineering a more general enterprise

engineering emerged, defined

as the
application of engineering principles to the management of enterprises. I t encompasses the
application of knowledge, principles, and disciplines related to the analys
is, design, implementation
and operation of all elements associated with an enterprise. In essence this is an interdisciplinary field
which combines systems engineering and strategic management as it seeks to engineer the entire
enterprise in terms of the
products, processes and business operations. The view is one of continuous
improvement and continued adaptation as firms, processes and markets develop along their life
cycles. This total systems approach encompasses the traditional areas of research and
d
evelopment, product design, operations and manufacturing as well as information syst
ems and
strategic management.

This fields is related to engineering management, operations management,
service management and systems engineering.







I nt
roduction

Page |
2



Chapter 1 Notes

Introduction >
The Enterprise and its Life Cycles

Page |
3



2

The Enterprise and its Life Cycles


2.1

Defining the Enterprise

2.1.1

Definitions of an Enterprise


Firstly, let us define Enterprise: The definition of an enterprise varies slightly. Here are
some examples:

“An enterprise is a complex system of cultural, process, and technological components that interact
to accomplish strategic goals” [
Witman

1999]
1

“A purposeful or industrious undertaking, especially one that requires effort or boldness” [Wor
dnet,
2005]
2


A general term for a body corporate, partnership, or unincorporated associated carrying on a trade
or business with or without a view to profit. Synonymous with undertaking [indiainfoline 2005]
3
.


“An enterprise (or "company") is comprised of

all the establishments that operate under the
ownership or control of a single organisation. An enterprise may be a business, service, or
membership organisation; consist of one or several establishments; and operate at one or several
locations” [
econ.cen
sus 2005
]

4

These definitions are all related, yet each contains one or more unique viewpoints. Our definition
for this book is:

“A complex system of cultural, process, and technological components that interact to accomplish
strategic goals; under the ownership or control of an organisation; which ultimately strives to create
wealth for its stakeholders; and operates at one or seve
ral locations.”

Note that this is contradictory with the third definition, as non
-
profit organisations do not strive to
create wealth.



2.1.2

Enterprise Types and their Goals


2.1.3

The Architecture of an Enterprise


2.2

Life Cycles




1

Witman, L.,
Slides: Enterprise Engineering,
Wachita State University
,
February 1999.

2

www.wordnet.princeton.edu/perl/webwn,
[23/11/2005].

3

www.indiainfoline.com/bisc/acce.html, [23/11/2005].

4

www.help.econ.census.gov/econhelp/glossary/
, [23/11/2005].


Introduction >
The Enterprise and its Life Cycles

Page |
4



All systems within an ent
erprise can be modelled using
app
ropriate
life cycle
s
. This includes (but is
not limited to) products, technologies, processes, strategies and the enterprise as a whole [Williams
et al. 1998]
5
. Life cycles can thus provide the basis for the preparation of
a methodology (as
provided by roadmaps and architectures) for carrying out the development of a "new enterprise",
including all enterprise matters mentioned previously in Chapter 1.

Enterprise Engineering

is new, dynamic and are receiving continued resear
ch and development.

The purpose of this chapter is to
orientate the reader for more

detailed reading and research into
Enterprise Engineering
.

This chapter expands on the concepts of
Enterprise Engineering

by focussing
on:



The
Enterprise Engineering

Life C
ycle and its objectives and how it is supported, guided and
controlled by
:



Design and Control Objectives



Attributes
necessary to ensure
comprehensive
control



How can design reviews
are used

to test at key (review) points whether the requirements defined in
the Design Objectives and Control Objectives are being fulfilled.



Reference ar
chitectures and frameworks



The concepts on which architectures are build to ensure they supporting function to
wards enterprise
integration



Roadmaps



Life cycles



The virtual aspect of life cycles



Their interconnectivity



The different phases as viewed from a marketing and development perspectives; focusing on their
interconnectivity.



Modelling
:
How an enterprise can
be broken down into smaller Enterprise Business Entities
(according to the different desired views of an enterprise) to simplify the modelling process and then
again integrated the form the whole.



The resolution necessary for each view


Objectives



To intro
duce life cycle concepts, virtual and actual life cycles and how it pertains to Enterprise
Engineering



To develop the Enterprise Engineering Life Cycle and its components that supports the project
evolving an “as
-
is” to a “to
-
be’ state



Introduce the concep
ts of Design and Control Objectives and how it is used to guide the Enterprise
Engineering activities with deployment of Design Reviews




5

Theodore J. Williams, Gary A. Rathwell , Hong Li

A HANDBOOK ON MASTER PLANNING AND IMPLEMENTATION
FOR ENTERPRISE
INTEGRATION PROGRAMS


, Based On The Purdue Enterprise Reference Architecture and the Purdue
Methodology, REPORT NUMBER 160, Purdue Laboratory for Applied Industrial Control, (Edited by), June 1996, (Printed on July
17, 1998)

Introduction >
The Enterprise and its Life Cycles

Page |
5





Expand on the components of an Enterprise Wide Innovation management system and how it is used



Introduction of Reference

Architectures, Frameworks and Roadmaps



The use of modelling in Enterprise Engineering


Everything in the world we live in has a beginning, a middle and an ending.
In kindergarten
, we are taught
that when writing or telling a story, whether it is fact or fiction, we must start with an introduction, then the
body, and then finally finish with a conclusion. This is independent of both content and detail.

The following definition
of
Life Cycle
was found to be comprehensive [
Wordnet
2
005
]
6
:

“a series of stages through which an organism passes between recurrences of a primary stage.”

The concept of an organism
is seen
as
almost
anything conceivable in our existence. This basic concept
i
s
applied to all systems and
Enterprise Engineering

activities and is universally accepted by most to encompass
the discipline of
Enterprise Engineering
. Not only can the life cycle of an enterprise be represented with this
concept, but so too can many oth
er enterprise applicable
life cycles
such as technology, products, innovation
etc. Life cycles

thus provide the basis for the development of a methodology for
developing a
"new
enterprise", including all the enterprise matters mentioned previously [
William
s et al
9]
7
. A discussion of the
types of life cycles, Enterprise
-
, Technology
-

and Product Life Cycles, their inter
-
related properties and
application to
Enterprise Engineering

follow
s below
.

It is important to realise that the life cycles representation
s as discussed hereon are from a specific viewpoint
and that many other viewpoints exist. It is thus possible that the life cycle phases differ somewhat from that
which you are familiar with. Take note of these representations, whilst continuing to make us
e of that which is
most meaningful to you.


2.2.1

Life Cycle Concepts

There are two basic types to life cycles i.e.:



The actual design and deployment life cycle



The virtual design life cycle

Actual Design Life Cycle

The actual design life cycle
constitutes th
e
series of steps that occurs relative to time throughout the life of an
enterprise entity. This
includes
the actual deployment of the enterprise entity and is a
n ongoing process
.

Virtual Life Design Cycle

The virtual design life cycle
related

to the desig
n process, but is not related to time.
It is possible to revisit
different phases of the design process as is required by newly gained
insights
, experimentation and
prototyping as well as changes in the environment.
An entity may move backwards to an earl
ier stage in such
a life cycle, as a result of a re
-
engineering procedure. Phases are not necessarily executed sequentially.



2.2.2

The Product Life Cycle




6

www.wordnet.princeton.edu/perl/webwn
, [23/11/2005].

7

[9] Williams, T.J.
, Li, H., Bernus, P., Uppington, G., Nemes, L., The Life Cycle of an Enterprise.

Introduction >
The Enterprise and its Life Cycles

Page |
6




(1.8.2 Product Design Life Cycle)

A product design reference architecture or product life cycle (PLC) complements the ELC in the
solution space. The Product design life cycle as used in this course consists of two regions and a
number of design reviews as depicted in
Figure
I V
-
1

below:


Figure
IV
-
1

-

Product Design Life Cycle



The Product Life Cycle is by no means a rigid concept in its interpretation. Each enterprise has a different
perspective, which results in a different interpretation and ultimately different life cycle phases. This is good.
What works for the one will not
necessarily work for the other and sometimes completely different functions
are required from different enterprises.

Two specific viewpoints in terms of products are those of product development and product marketing. For
simplicity they
are

separately, h
owever, they are complexly integrated with various phases that overlap.
Development phases may include the following phases as presented by
Figure
IV
-
2

[Noyan 2004
]
8
:




8

Noyan, M., Thesis Presentation: Design Reviews and their Impacts on the Enterprise Life Cycle, University of Stellenbosch,
2004.

Introduction >
The Enterprise and its Life Cycles

Page |
7




Figure
IV
-
2

-

Product Lifecycle

This is a virtual life cycle because of the fact that the product spends overlapping periods in the various stages.
A re
-
engineering initiative of a particular aspect of a pr
oduct will even result in the product jumping back a
few phases. The circular arrow representation is representive of the iterativ
e nature of this life cycle. T
he
iteration does not necessarily need to occur through the entire cycle and that iteration is p
ossible between
certain key steps e.g. design and industrialisation, as a need
is identified for it.

From a marketing viewpoint, the phases may look as follows [
marketingteacher
]
9
:



Introduction



Growth



Maturity



Decline



Withdrawal




Figure
IV
-
3

-

Product Maturity Lifecycle




9

www.marketingteacher.com/Lessons/lesson_pl
c.htm, [13/09/2005].

Introduction >
The Enterprise and its Life Cycles

Page |
8



This representation is similar to that shown for the Technology Life Cycle. Phases are sequential and
represent a level of maturity of the product in which the marketing approach will most

probably
differ from other phases. The area under the curve (the integral of the curve function over the
product life span) is the total product market. This may be interpreted on a relative scale to the
total market for a given product or on an absolute
scale for a certain product and a specific
enterprise.


2.2.3

The
Technology

Life Cycle


The third life cycle in the solution space is the technology development life cycle as depicted in
Figure
IV
-
4
.


Figure
IV
-
4

-

Technology Life Cycle



The concept of the Technology Life Cycle is used in many disciplines including product design, marketing
and advertising, and distribution in order to advance the success of a product by understanding the status of
the technology implemented in a specific
product. This concept is comprehensively discussed by Norman
[Norman 2001].
10




10

Norman 2001,
The life cycle of a technology: Why it is so difficult for large companies to innovate

Introduction >
The Enterprise and its Life Cycles

Page |
9



Technological products have an intriguing life cycle (from a market perspective) as they progress through the
various Technology Life Cycle phases from birth through to maturity.
A product that was once a highly
sought after piece of equipment can become almost redundant, extremely quickly, with the introduction of a
new technology. It is important to understand the phases of development of a new technology and the related
acceptan
ce thereof in the market.

A new product will initially go through a highly unstable period, when expectations are unmet and often also
unclear. Later customers begin to view products differently; expectations become clear and are eventually met
and even ex
ceeded. The matter is further complicated because the dimensions upon which the product is
judged changes. As a result, the way the product is conceived, developed, and marketed must also change.
Therefore, the characteristics of the enterprise that lead t
o its initial success with the immature technology can
become their downfall in the later phases of the life cycle [Norman 2001].

In a technology's adolescent days, a limited number of users will buy the product because of the functions it
provides. These

buyers

are called early adopters, those who buy for the love of technology, or those whose
need for technology is great enough that they are willing to sacrifice aspects such as aesthetics, user
friendliness and some functionality. Products are thus adver
tised and sold based on their feature lists and
technological claims and marketing becomes the act of beating the competition's claims. S
eldom

the
customer's real needs are addressed in this phase of the technological life cycle.

Similarly increasing matu
rity of a technology will change the user expectations and experience thus requiring
adjustments to be made to product design, marketing and other enterprise functions such as advertising, and
distribution. Understanding the Technology Life Cycle in a simi
lar manner is essential for correctly
positioning an enterprise and its products. A different approach is required for all these aspects in each of the
life cycle phase in order to ensure the success of a product. Norman describes five different
constituen
ts in the
acceptance of
a technology. They are:



Innovators (technology enthusiasts)



Early adopters (visionaries)



Early majority pragmatists



Late majority conservatives



The laggards (sceptics)

T
he Technology Life Cycle
can be

described in terms of the type
of person that buys into that technology.
Figure
IV
-
5

illustrates the Technology Life Cycle relative to the percentage of customers that purchase the
technology [Norma
n 2001]
11
. The bell
-
shaped curve indicates the relative amount of customers buying into
the technology at any given time. The area under the curve (the integral thereof) up to any given time is the
percentage of the total market already utilised. There are
many more interpretations of this diagram and many
more diagrams. For a more detailed discussion on the topic, see Norman's book,
The life cycle of a
technology: Why it is so difficult for large companies to innovate
[Norman 2001]
86
.




11

Norman 2001,
The life cycle of a technology: Why it is so difficult for large companies to innovate

Introduction >
The Enterprise and its Life Cycles

Page |
10




Figure
IV
-
5

-

Technology Adoption Lifecycle

Technology may also be viewed from a development perspective. The life cycle phases are thus viewed
differently from those mentioned above. They may include:



Identificati
on (needs assessment)



Solution architecture (selection)



Development or acquisition



Implementation



Exploitation



Decommissioning

This is a virtual life cycle, as the phases are not necessarily executed sequentially. For example, technology
may have to return to the development stage due to a newly identified need, or a certain phase may occur
concurrently to shorten lead times. This

Technology life cycle shows strong similarities with the Product Life
Cycle.



2.2.4

The Design Life Cycle


Many different views exist for depicting and explaining the product design life cycle. The most basic of that is
a linear model that consists of diff
erent phases. An example of such a linear model [Hale et al]
12

is presented
in
Figure
IV
-
6

below. This example includes four basic phases i.e.:



Conceptual Design



Prel
iminary design




12

Source: Mark A. Hale, James I. Craig, Farrokh Mistree, Daniel P. Schrage, “
REAMS and IMAGE: A Model and Comput er
Implementation for Concurrent” Life
-
Cycle Design of Complex Syst ems p 22

Introduction >
The Enterprise and its Life Cycles

Page |
11





Detailed design



Manufacture and support


Figure
IV
-
6

-

Traditional Design Timeline

The same design will be executed in phases and will have critical events associate with it as well as
relevant
information being generated as indicated in the diagram [Hale et al]
13

below:


Figure
IV
-
7

-

Partitioned Timeline


2.2.5

The Project Life cycle


A Project consists of a group of stages. Collectively, th
ese project stages are known as the
Project Life Cycle
.




13

Source: Mark A. Hale, James I. Craig, Farrokh Mistree, Daniel P. S
chrage, DREAMS and IMAGE: A Model and Comput er Implementation for Concurrent, Life
-
Cycle Design of Complex Syst ems p 23


Introduction >
The Enterprise and its Life Cycles

Page |
12




Figure
IV
-
8
: Project Life Cycle (Source PMBOK 3)

Each stage comprises of a set of processes. A process is simply a series of actions or activities
performed to
bring about a result. According to the PMI, project processes can be organized into five distinct process
groups:



Initiation process:
The steps required to recognize the start of a project stage, such as confirming
budget, identifying project
sponsor, determining the business need, etc.



Planning process:

The steps to define project scope (i.e. what needs to be accomplished) within the
current project stage.



Executing process:

The steps required to coordinate people and resources to carry out th
e tasks
defined in the Planning process.



Controlling process:

The monitoring and measuring of progress to ensure project objectives are
being met.



Closing process:

The steps required to formally accept a project, phase, or stage to signify
completion.


Fi
gure
IV
-
9
: Level of activity for each process group


Introduction >
The Enterprise and its Life Cycles

Page |
13



2.2.6

The Enterprise Life Cycle


The enterprise is a far more complex entity than the products or services it delivers may lead one to believe. It
comprises th
e complex systems necessary to manage the organisational, manufacturing, information and
decision architectures. The human component of the organisational architecture adds severe complexity and
unpredictability to enterprise design and subsequent deployme
nt and operation. The shear magnitude of an
enterprise
-
wide project can smother designers and analysts with information overload. The complexity

of
Enterprise Engineering

focusing on manufacturing, information and decision architectures further increases
t
he format, structure and shear volume of design information. It is important that all relevant information
regarding the enterprise and its life cycle is captured. This information is stored in an Enterprise

wide
innovation management system. This system
will facilitate current as well as future projects.

Innovation related information is capture relative to the design phases within the life cycle. The Enterprise
Life Cycle thus forms the basis for most Enterprise Reference Architectures and represents the

life span of an
enterprise from conceptualisation, through to de
-
commissioning and all phases in between. The life cycle not
only represents the phases of an enterprise, but also serves as a model for the application of various
methodologies, which accomp
any the specific reference architectures to form a complete set of aides for the
engineer contemplating an
Enterprise Engineering

or related project.

Typical steps in the Enterprise Life Cycle include identification, concept, requirements, preliminary des
ign,
detailed design, implementation, operation and finally decommission (see
Figure
IV
-
10

below).



Figure
IV
-
10

-

Generic Enterprise Lifecycle

The ability to produce
effective
products efficiently requires more than just a
thorough

u
nderstanding of the
Product Life Cycle. Understanding

all
related

processes along the entire value chain is
also
required.
T
he
Enterprise Life Cycle has properties similar to those
of

the Product Life Cycle. It is not sufficient that the two
life cycles
sh
are

similar properties.
During design t
hey
should

be co
nsidered concurrently
. The Product Life
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The Enterprise and its Life Cycles

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14



Cycle
thus

exist within the Enterprise Life Cycle, not as a stand
-
alone entity, but rather as an integral part (see
Figure
IV
-
11

below [
Noyan
]
14
). The Technology Life Cycle

are similarly interrelated to both enterprise and
product design life cycles.


Figure
IV
-
11

-

Product Lifecycle executed within Enterprise Lifecycle

The
design processes of a specific
enterprise do not
always occur sequentially through the life
cycle
.

Sometimes during the design, a specific phase of the life cycle is visited more than once to
refine different aspects of the enterprise.

This iterative nature of the design process accommodates
refinement and experimentation that leads to an improved fina
l product. Thus the Enterprise Design
Life Cycle is also referred to as a virtual life cycle









Chapter
2

Notes




14

Noyan, M., Thesis Presentation: Design Reviews and t heir Impacts on the Enterprise Life Cycle, University of St ellenbosch, 20
04.

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Innovation and the need for Change

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3

Innovation and the Need for Chan
ge


Brief introduction of why innovation is important for enterprise engineering


3.1

Innovation theory



Innovation is one of the main contributors to the future competitiveness of enterprises. Successful and
sustainable innovation in a

enterprise demands continuous and structured innovation efforts. According to Tidd
15
, innovation is a generic enterprise activity that focused on the long
-
term survival of the enterprise and its
growth. Dogson
16

diagnosed the increasing intensification of
innovation by modern technologies.

This chapter provides an overview of some interesting aspects of innovation management focusing on:



The term
innovation

and how innovation is distinguished from invention.



The different dimensions of innovation



Product

innovation



Service innovation



Organisational innovation



Process innovation



The innovation life cycle:



Contextualising different domains within the innovation landscape



Describing building blocks of a hierarchical innovation deployment system, consisting o
f a Plan,
Allocate, and Deploy sub
-
cycle supported by a Measure, Learn, and Capture sub
-
cycle.



The hierarchy of innovation activities from a global resolution through to a specific industry on pre
-
competitive basis.



The different layers of aggregation for
planning with different associated innovation outputs.



Innovation as it applies to enterprises; analysing goal orientation and the strategic positioning.



Diverse innovation models and their different views on innovation management, involving methods
and t
ools.



The use of knowledge management to achieve an enterprise wide innovation management system.



Project management and how it fits within innovation.


Objectives

The objectives of this chapter are:



To discuss innovation and its drivers



To stress the imp
ortance of the market and strategy to address customer requirements in exploiting
market opportunities




15

[T
idd 2005] Tidd /
Bessant / Pavitt (2005): Managing Innovation: Integrating technological, market and organizational change. Chichester

16

[Dogson 2005] Dogson

/ Gann / Salt er (2005): Think, Play, Do. Technology, Innovation and Organization. Oxford

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Definition

INNOVATION

I nnovation is not just one simple act. I t is not just a new understanding or the
discovery of a new phenomenon, not just a flash of creative invention, not just the
development of a new product or manufacturing
process; nor is it simply the
creation of new capital and markets. Rather, innovation involves related creative
activity in all these areas. I t is a connected process in which many and sufficient
creative acts, from research through service, are coupled to
gether in an
integrated way for a common goal.”

pa汶endy



Present a hierrachical planning delpoying and measuring cycle which assists in linking strategy and
tactics



Present a hieracrhy of planning activities th
at integrates regional, industry, enterprise and innovation
projects within the enterprise



Present the innovation life cycle, the innovation landscape and some innovation frameworks or
models



Introduce the roles of Knowledge Management and Project manageme
nt in innovation


3.2

Defining Innovation

In every day life, the term
innovation

is very blurred and used as a catchword for vari
ou
s concepts. It is
important to establish an academically useful understanding of innovation. The term
innovation

has different
meanings in academic fields as well and is afflicted with definition problems. König
17

puts out that the term
innovation

is diffuse and imprecise. This can be explained by the fact that
innovation

in its etymological origin

describes just so
mething new. This is the reason why the term innovation

is often equated with the term
invention. Nevertheless, according to Schumpeter
18

these two terms must be strictly separated. Only after the
successful market launch of something new an invention will
be an innovation.













An
invention is connected to research systems, whereas innovation is connected to economy
systems. A central aspect of innovation is the economic realisation of the underlying knowledge,
[
Vahs 2002]

19
. The main goal of innovation is described by Schumpeter as the enforcement of new
combinations of resources [Schumpeter 1961]
20
. A more general definition of innovation is stressed by
Morton:





17


König
(2003): Konzept

zur Sensibilisierung und Qualifizierung von ArbeitnehmerInnen für die Anwendung/Nutzung neuer Techniken in KMU.
Innovationsmanagement.
http://www.fhludwigshafen
. de/kim/index.php?menuid
=28 (accessed on 28.03.2006)

18


Schumpet er (1931): Theorie der wirt schaftlichen Entwicklung. Eine Untersuchung über Unt ernehmensgewinn, Kapital, Kredit, Zins

und dem Konjunturzyklus.
Leipzig
.

19

Vahs / Burmest er (2002): Innovationsmanagement. Von der Prod
uktidee zur erfolgreichen Vermarktung. St ut tgart

20

Schumpet er (1961): Konjunkturzyklen. Göttingen

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It follows that innovations are not only relevant
to the industrial and commercial domains. Creative
improvements in the government or in social services are also innovations. Innovation has different meanings to
different enterprises, governments, etc. An enterprise must define and develop its own unders
tanding of
innovation. This is facilitated by formal innovation frameworks as is discussed in more detail in this chapter



3.2.1

Competitiveness and the need for

Innovation


Differentiating innovation according to its triggers means that one has to question

what the cause of innovation
really is. There are two classical triggers of innovation, the demand of customers (market
-
pull) and the
implementation of new technologies (technology
-
push). Technology
-
push implies that the idea for a new
product or service
originates from the company, while the market
-
pull strategy implies that customers stimulate
the technological development.

Enterprises using the technology
-
push strategy endeavour to find adequate solutions for their elaborated
technological challenges.
Radical innovations and technologically based innovations are mostly technology
-
push innovations. The reason for this is that the market does not know what potential technologies exist


and
what you do not know, you cannot demand. The fundamental idea of
this strategy is based on the assumption
that the market originates the determining impulse for new products or services. For this purpose, the customer
requirements of the must be analysed and evaluated.



What drives the
Enterprise Engineering

(design or re
-
design) process? Why is
Enterprise Engineering

necessary in today's enterprise?

"I do not know if it will become better or when it will change; but for sure, it must be changed, when it
should become better."

{ Georg Christoph Lichtenberg,
1742
-

1799, Philosopher and Historian}

The drivers that initiate the design or re
-
design of an enterprise are
categorised

External Drivers and
I nternal Drivers

External Drivers:

The following are the main external factors driving enterprise design or re
-
de
sign and subsequent
innovation:

1.

Customers or the Market

The expectations of customers are becoming evermore stringent. They know what they want, when they want it
and exactly how they want it. The enterprise must be able to fulfil these expectations. It is very important that
the mission of the enterprise is al
igned with the needs of the customers or market.
Figure
IV
-
12

illustrates the
relationships of Mission, Vision and Values of an enterprise with customer expectations.

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18




Figure
IV
-
12

-
Mission, vision and values

The Mission

describes what the enterprise should be doing. It is the purpose for existence and highlights the
broadest strategic planning choices of that enterprise. The Mission should address aspects such as:



products and/or services



markets



customers



competitors

Th
e Mission Statement is then a short, concise document capturing the abovementioned. Effective Mission
Statements are inspiring, long
-
term, and easily understood and communicated. The Vision describes what the
enterprise aspires to become. It should be:



app
ropriate



inspiring



directing



focusing



guiding



unique

A Vision Statement captures the above mentioned in a concise, easily understood paragraph that focuses on the
future, is inspirational, provides clear decision making criteria, and is completely timeless
. The Values are the
guiding behavioural traits of an enterprise. They should:



communicate what is and what is not right from an ethical perspective



provide context for enterprise decision making activities



be enduring and timeless



be shared amongst all w
ithin the enterprise

It is important that these values align with what is considered ethical outside of the enterprise, i.e. the external
environment.

It is clear that the values that describe the behavioural traits of an enterprise are independent of cust
omer
expectations. This is in the general case. In severe circumstances, it may however be necessary to realign values
with what is and what is not accepted at the time.

The expectations of a customer however have an effect on both the mission and the visi
on of an enterprise. The
vision describes what the enterprise aspires to become and the mission is how the enterprise plans to get there.
An enterprise has to understand the change mechanism of customer expectations so that the vision can align
itself ther
ewith. Note that it is not necessary to know the customer expectations of the future to determine the
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vision. This is virtually impossible. By understanding the mechanism of change however, the vision can be
developed to be independent of change.

The missi
on is however more directly affected by the expectations of customers. The mission is thus something
that may require regular changes to realign with customer expectations, based on the values, so that the
enterprise may attain its vision. Thus, the enterp
rise may require engineering or re
-
engineering. It is imperative
to realise that the engineering of an enterprise cannot be performed if the mission, vision and values are not
absolutely clear, fully understood, mutually followed and conducive to the engin
eering exercise.

One of the prime requirements for appropriate innovation and
Enterprise Engineering

activities is obviously to
understand the market. The relationship between the understanding of the product and the number of available
suppliers is descri
bed as follow by Jusait
21
:


“Product differentiation provide competitive advantage for a company because it is based on the
coordinated use of various knowledge, skills and technological capabilities within the company.
Product differentiation in a company

starts with an understanding of customers' evolving needs.”

Figure
IV
-
13

illustrates the relationship between customers’ needs and company “Metos” behaviour.

(“Metos”
is an alias for the case study company)


Figure
IV
-
13

-

Customer Needs and Company "Metos" Behaviour Relationship

2.

Competition

Some competitor will meet these customer expectations unless an enterprise can excel in satisfying the
customer first. The enterprise should therefore strive to be a leader in his

selected niche or market sector. It is
however not sufficient to attain leadership, but also to maintain it. The highest trees catch the most wind,
making it extremely difficult to remain at the top in a competitive environment. The competition will alway
s try
to outperform you. It is thus necessary to engineer the enterprise for sustained competitive advantage, and then
re
-
engineer it once the competitive advantage is reduced by competitors. This is an iterative process. The
enterprise should practice a c
ombination of continuous improvement and disruptive innovation

policies.




21

Raimonda Jusait,

Technology Management And Product Marketing Mix

, Masters Thesis
,

VILNIUS GEDIMINAS TECHNICAL UNIVERSITY
,

MECHANICS
FACULTY
, 2005,

p4
9

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3.

Regulations

Regulations, e.g. government regulations, environmental regulations, etc. can force an enterprise to change
some of its processes or products.

4.

Technology

Changes or advanc
es in technology (either product or process related) can also compel an enterprise to adopt
the technology in order to remain competitive or become more cost efficient. This will require a re
-
design of
the enterprise.


I nternal Drivers:

The following are s
ome of the main internal factors driving enterprise design or re
-
design and once again
innovation:

1.

Complexity

The necessity to create an enterprise that can generate and sustain competitive advantage in this rapidly
changing world has resulted in
complexity that can only be managed with methodologies, tools and techniques,
management practices and overlaying frameworks that are comprehensive enough to focus on the smallest
detail, but still integrative enough to understand the whole. Many other fac
tors also result in the highly complex
enterprises of today including: the complexity of products or services, mass customisation, large customer
-

supplier networks, ever
-
reducing lead times, shortened product life cycles, globalisation, etc. Rising comple
xity
can therefore compel an enterprise to change or transform in order to either reduce the complexity, or to better
manage it.

2.

Financial

Financial pressures to decrease costs, increase efficiency, do more with less.

3.

Product changes

This is actually driv
en by external factors such as new technologies, shorter product life cycles, competition,
changing customer needs, etc. These external factors drive required product changes, which in turn drives
enterprise changes.



Competitiveness and innovation

Industry is under pressure to innovate more rapidly.
Error! Reference source not found.
22

below depicts the
situation.




22

Technology Planning for Business Competitiveness, A Guide to Developing Technology Roadmaps,
Copyright in ABS Data
resides with the Commonwealth of Australia, August 2001, p2


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Figure
IV
-
14

-

Change, Complexity & Competition

I t is important to realise competitor activities as well as market, technology and government and
legislative domains are critically important to position and enterprise strategically. This

will also
determine the timing and magnitude of R&D spending.


Pre
-
competitive knowledge networks, fostering pre
-
competitive research activities and the promotion of
competitive R&D funded by Industry, significantly contribute to the competitiveness of en
terprises.

To better understand the dynamics of innovation, it is important to distinguish between competitive and pre
-
competitive activities and the relevant contribution of the primary role
-
players.


Pre
-
competitive and Competitive Research and Developm
ent (R&D)

Research is generally classified into two types or modes.



Mode One or basic research
. This type of research will create the foundation of new technologies
and new inventions, but still require some adaptation or refinement to really impact the
co
mpetitiveness in the marketplace.



Mode Two or applied research
. This type of research leads to successful transfer of new technology
to Industry and thus forms the foundation of successful business enterprises.

Fundamental or Mode One research is the feede
r stock of technological innovation. It is realised in the pre
-
competitive domain and normally is delivered by universities and research laboratories, funded primarily by
governments and large pre
-
competitive research institutions and research networks (ex
ternal to the enterprise).
It facilitates the subsequent development of competitive products and services that drive the economy and
resulting competitiveness of companies and ultimately nations. The diagram below depicts a typical holistic
technology deve
lopment life cycle (Source
23
).




23

Jan Cornelis
, Fostering Research, Innovation & Networking,


2005 VUB
Brussels Universit y Press, www.vubpress.be, ISBN 90
-
5487
-
378
-
7

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Figure
IV
-
15



Technology Development Lifecycle

Collaborative research including the scanning of technology and market trends, as well as evaluating the
interrelationship between

different industries and sectors are normally done in this domain. This type of
research normally requires not only a huge amount of resources, but also multi
-
dimensional expertise. Thus, a
lot of pre
-
competitive work is being done and even more being com
missioned in an endeavour to better
understand the direction and rate at which innovation opportunities are developing.

The current rapid deployment rate of innovation and technological developments makes it nearly impossible for
single enterprises to succ
eed without collaboration with others. Invariably such innovation entails a competitive
part, supported by the results of a lot of pre
-
competitive research results.



3.2.2

Types of

Innovation

Product I nnovation

Process I nnovation

Position I nnovation

Paradigm
I nnovation


3.2.3

Innovation Role Players

The different role
-
players in the innovation life cycle is categorised as follows:



G
overnment



Industry
,

and



Academia

Each role
-
player contributes uniquely to the innovation life cycle.




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3.3

The Innovation process


3.3.1

The
Innovation Life Cycle

The innovation life cycle has

the following phases:



Invention
:
During this phase opportunities are identified, ideas generated, and general creative takes
place. The ideas that are generated may be those of processes and/or strate
gy (business concept).



Feasibility
:
The
feasibility

of these ideas then needs to be determined with the rigorous testing and
screening. Furthermore, the specification, functional analysis and initial design are executed.



Implementation
:
The
implementation
phase then addresses detailed design and the manifestation
thereof. A realisation that must be made at this point is that this lifecycle is not a replacement for the
more traditional design methodologies and processes. Rather, it seeks to bring them into c
ontext with
the innovation process. Comprehensive design methodologies will always be required, although the
necessity to shorten the time
-
to
-
market [Mori 1999] may bring about the compacting of previously
tedious, and often unnecessarily iterative, design

processes.



Operation
:
Once the process has delivered a commercially viable output, the phase of
operation

is
undertaken. Activities such as production and quality control of products, monitoring and
optimisation of processes, and deployment of strategy a
re performed.



Disposal
:
After desired (maximum feasible) utilisation has been attained, the innovation process
enters into its final phase,
disposal
. This marks the conclusion of the innovation, and focuses on
reflecting and learning from the process and f
ulfilling final (legal, environmental, etc.) obligations.
Note that
disposal

does not refer to the conclusion of the innovation process, but rather to the closure
of the particular initiative.

The innovation life cycle is such nature that different phases

may be revisited; to re
-
fine certain phases and
improve upon the original initiative. This is part of the learning process. Consider, for example, an initiative
that has reached
operation.

In an effort to sustain competitive advantage, it is necessary to
make incremental
improvements to those operational components. The organisation may then revisit the
concept

phase to initiate
improvements and/or additions, in an effort to continue to differentiate the initial offering.

Note that continual learning forms an integral part of the activities in all phases of the innovation life cycle.
With the conclusion of each phase, there is an opportunity to learn from the success and failures of that phase.
Also, keep in mind that vario
us innovation initiatives take place concurrently within an enterprise. It is thus not
sufficient for an organisation to be addressing innovation only on a single level or with a single initiative.

There is a lot of aspect that are common between the inno
vation life cycle and the other life cycles. Especially
the first efforts of conceptualisation; followed by the necessity to evaluate the feasibility of one or many options
and then narrow them down, then onto a initial and/or detailed design. This is foll
owed by aspects such as the
implementation and operation of the systems; and then finally, once the useful life of the system has been
reached, disposal thereof. Therefore, the innovation life cycle can be, if not directly, mapped onto the
enterprise, tech
nology and product life cycles in such a manner that the activities within each phase of the
innovation life cycle can be related to those of the respective other life cycles.



3.3.2

Innovation
Models

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Many models have been developed to
describe

and manage innovation.
No single model or framework
sufficiently covers the entire
field of innovation.
Error! Reference source not found.

below summarises
a
selection of

frameworks and thei
r focus relative to the innovation life cycle as reported by [Van Zyl 2006]
24
.

By using such models in innovation
projects to align and integrate

team activities, the innovation process
is

accelerated and the effectiveness may be improved. Three of these m
odels with different viewpoints are
introduced. These
represent

different levels of detail on which innovation process models
are

based. Schmidt
-
Tiedemann’s Concomitance Model is focused on the operative level. The W
-
model focus on the strategic level
whil
st it also provides guidelines on how to proceed on the operational level. The Chiesa Framework is a more
theoretical model. It is on a very high level and helps to describe the complexity of innovation.



History of progression of models

Explain different

types of models

( Very short discussion)


3.3.3

Fugle

Innovation Model



3.3.4

The Innovation Reference Space

It is a significant challenge to capture the planning and deployment of innovation that takes place within a
company. It is not only the individual compon
ents of innovation that are challenging, but also the integration of
all innovation activities in a focussed and structured manner. To support the integration, three important life
cycles are associated with
Enterprise Engineering

(innovation) which formal
ises a solution space that consists
of:



The Product Life Cycle



The Enterprise Life Cycle



The Technology Life Cycle

Any innovation or design project will take place in this solution space and will impact and be impacted by vents
taking place in the three
life cycles. Each of these life cycles contributes to better structuring the innovation
process and provides a navigation grid to contextualise different projects. The solution space is depicted in
Figure
IV
-
16

below.




24

Hillet van Zyl, Innovation models and t he front
-
end of product innovation, unpublished masters thesis, University of St ellenbosch, June 2006, p 83


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Figure
IV
-
16

-

The Solution Space


An enterprise design or re
-
engineering is interrelated to the product design, the technologies needed for the
products (on

both a product and process level) and obviously the enterprise itself. Thus, an integrated Product
-
,
Technology
-

and Enterprise Life Cycle innovation space, conceptualised in the figure below, is useful
understanding the enterprise and engineering or re
-
e
ngineering thereof in order to ensure its competitiveness.
The Life Cycles referred to here are all of a virtual nature.

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Figure
IV
-
17

-

Innovation Solution Space

Any project that is newly undertaken or curre
ntly in process can be viewed from a life cycles perspective with
respect to all three the life cycles. One can thus attach a specific phase from each of the life cycles to the project
at any given time (although time is not depicted in the reference space

as virtual life cycles are independent
thereof). As the project proceeds, each of the life cycles is expected to be at a certain phase, although not
necessarily in a phase ahead of the previous, as they are virtual life cycles. Therefore, one may plot spe
cific
points in the three
-
dimensional space relative to the life cycles and so depict the progression of products,
technology and the enterprise, each relative to the other. This may be either a suggested plot of a proposed
project or an actual plot, which

may be compared with the suggested. A greater understanding may be achieved
with respect to the product, the technology and the enterprise on individual levels, but more importantly on an
integrated level. Understanding breeds improvement, which is requir
ed on a continuous basis if competitive
advantage is to be achieved and sustained.


(3.12 Summary)

The
Enterprise Engineering

life cycle involves a multi
-
phased approach that coordinates strategic, operational,
and organisational demands in taking the ente
rprise from an

As
-
Is


state to a “To
-
Be” state.. The following
represents a typical
Enterprise Engineering

life cycle:



Definition and Identification:

This phase focuses on defining the enterprise according to its mission
and purpose as well as
identifying

significant initiatives and opportunities.



Analysis:

In this phase, an “As
-
Is” analysis of the current existing enterprise architecture is done.



Conceptual Design:

In this phase, the “To
-
Be” enterprise architectures (conceptual design of future
enterprise architecture) are identified.

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Transition Planning:

This phases focuses on identifying, planning and evaluating projects to move
from

As
-
Is


to “To
-
Be” enterprise architecture



Design/re
-
design:

Sometimes this phase consists of first performing a

preliminary design followed by
a more detailed design, otherwise only a detailed design is performed during this phase.



Implementation
:
This phase involves producing the operational state of the design and integrating
cross
-
functional processes to meet go
als and objectives.



Monitor, measure and evaluate:

In order to effectively and efficiently plan and execute the
enterprise design or re
-
design it is important to have:



Objectives
: to define the end goals or design targets (design objectives), as well as th
e
controlling parameters or principles (control objectives) within which the engineering cycle
should be performed.



Guidance:
to provide a framework or enterprise reference architecture that guides the teams
throughout the engineering cycle in terms of the

different methodologies, models, and tools to
use.



Support:
to provide the different available methodologies, models, and tools that can be used
throughout the engineering cycle (the enablers), i.e. project management, knowledge
management and life cycles
.



Control:
to have control points (design reviews) during the project in order to determine if the
requirements defined in the design objectives and control objectives are being met.

An Enterprise Reference Architecture is a framework that aids in the fac
ilitation of enterprise integration by
providing methodologies and tools, which can be used to analyse an enterprise as smaller, more manageable
entities and then merge the redesigned entities to form a new, integrated whole. It models the whole life histo
ry
of an enterprise integration project through all the life cycle phases by mapping all the functions and activities
involved in the life cycle phases on the framework.

The following are fundamental principles on which enterprise architectures are deploye
d:



The basic principles apply to any enterprise



No enterprise can continue to exist without a business or mission



There are only two basic classes of functions



Data will undergo multiple transformations



Material and energy will undergo multiple
transformations



Data, material and energy networks involved can be combined



The two networks interface in those tasks that develop operating variable status



Analysis of functions can be carried out without knowledge of how they will be implemented



Humans

are involved in the implementation and execution of many business processes



All enterprises follow a Life Cycle



Enterprise products and services follow a Life Cycle



Once the integration has been planned, implementation may be conducted in sections



All tas
ks should be defined in a modular fashion



The interconnections between these modules can be considered interfaces



A diagram demonstrating the abovementioned can be called an Architecture



The applicability of the Architecture to include all types of enterpr
ises is possible

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There are two basic types to life cycles:



The actual design life cycle:

The actual design life cycle can be seen as the actual series of steps that
occurs relative to time throughout the life of an enterprise entity. This is the actual de
ployment of the
enterprise entity and is a non
-
stop process.



The virtual life cycle:

The virtual life cycle is attached to the design process, but is not related to
time. An entity may move backwards to an earlier stage in such a life cycle, as a result of

a re
-
engineering procedure. Phases are thus not necessarily sequentially executed.

The Enterprise Life Cycle consists of the following phases:



Identification



Concept



Requirements



Preliminary design



Detailed design



Implementation



Operation



Decommission

Th
e ability to produce products efficiently and effectively requires that the Product Life Cycle must been see as
existing within the Enterprise Life Cycle, not as a stand
-
alone entity, but rather as an integral part. The same is
true for the Technology Life

Cycle.

The Technology Life Cycle can be viewed from two perspectives:



Market:

From the market perspective, the life cycle is depicted according to the type of users and
consists of the following constituents
:



Innovators (technology enthusiasts)



Early
adopters (visionaries)



Early majority pragmatists



Late majority conservatives



The laggards (sceptics)



Development
:
This perspective depicts the life cycle to comprise the phases as follows:



Identification (needs assessment)



Solution architecture (selection
)



Development or acquisition



Implementation



Exploitation



Decommissioning

An enterprise design or re
-
engineering is related to the product design, the technologies needed for the products
(on both a product and process level) and obviously the enterprise it
self. Thus, an integrated Product
-
,
Technology
-

and Enterprise Life Cycle matrix
facilitates

understanding the enterprise and engineering or re
-
engineering thereof in order to ensure its competitiveness. The Life Cycles referred to here are all of a virtua
l
nature.

Introduction > The Enterprise & its Life Cycles

>
Innovation and the need for Change

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29



The essence of enterprise modelling is to develop a unified view of the enterprise, providing sufficient
information for effective decision
-
making during design and deployment of the enterprise.

When an enterprise design and integration project o
r initiative is undertaken, it is necessary to view the
enterprise on more than one level of detail. A comprehensive four
-
layered approach is proposed to accomplish
this. The four
-
layered approach depicts the levels of an enterprise as strategy, value chai
n, processes and
activities. All the levels represent a given resolution with which to analyse the enterprise with; the lowest would
be encounter on the strategy level while the highest would be encounter on the lowest level (activities) of the
enterprise
thus providing a top
-
down view of an enterprise.



3.4

Configuring
your enterprise for innovation


I nnovation Strategy


Describe the different organisational constructs (strategy, organisational structure, culture, people
and enabling technologies, etc) and

how they should be structured in order to make the enterprise
innovation capable.


In general terms, a roadmap is an aide to help one to reach point B when you know that you are at point A.
Figure
IV
-
18

below depicts a representation of roads in London with two points, A and B and a collection of
routes that may connect the two points. By putting the routes in context with the environment, t
his roadmap
assists users to make decisions about the way to reach the objective (B). Different individuals may choose
different options based on individual requirements, but most will eventually reach their required destination.


Figure
IV
-
18

-

Aerial route map
25




25

Dr Eric Lut t ers,

Application of Life Cycle Engineering in product design
A.k.a. Roadmaps for dummies

,
Slideshow used in the Industrieel Ontwerp course of the
University of Twente,
Enschedem,
Netherlands
,

2006
.

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Innovation and the need for Change

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Roadmaps in general:



Facilitate communication



Support common planning activities



Assist with deploying of resources to execute a journey



Make it possible to utilise common resources



Make it possible f
or team members to contribute their expertise and use their equipment to


reach a
common goal



Allow teams to capture previous experience and learn from that



Support the collection of good practices



Capture the unique local conditions



Show progress during t
he execution of a journey



Show how far ahead or behind a team is with the progress or execution of the journey.



And much more……

Roadmaps are also useful to represent the same object in different levels of resolution. The global
competitiveness drives and t
he rapid rate at which information and communication technology has shrunk the
size of the world, has made the use of roadmaps to support innovation a very logical and widely used choice.
When roadmaps are used in conjunction with innovation project planni
ng and execution, enterprises can benefit
from previous and current experience by capturing all innovation project information in context. This is
normally done to a larger or smaller extend within rather closed project environments. However, enterprise
-
wi
de innovation management systems that support multiple projects within a lerger and more opne environment
are becoming more common. Similarly common, are the use of roadmaps to coordinate and capture activities
around the innovation process. The roadmappin
g of the manufuture project is one example
26
.

Since the early 1980's roadmapping has become an extremely useful tool in integrating, coordinating and
communicating the innovation activities. A common success story cited in the literature is that of Motorola
. By
2002, a case study at Motorola reported 1170 roadmaps for strategic use inside the company.
27


However, in the
past 30 years, many other (different) uses for roadmaps that support the planning and deployment of innovation
have been developed. The Unive
rsity of Cambridge has a very active unit for
technology

roadmapping. Robert
Phaal
28

identified more than 500 public
-
domain roadmaps, covering many areas of science, technology and
industry. The
Technology Roadmapping report
29

compiled by Robert Phaal, links

the field of
Management of
Technology

and the use of roadmaps to establish future trends in technology development and deployment.
This is summarised in
Figure
IV
-
19

and
Figure
IV
-
20

below.




26

ht t p://www.manufut ure.org/national_platforms.html

27

Mary Gri
nnell, Jim Richey, Erica McQuee, Case St udy: Innovation Roadmapping Using Enterprise Automation Soft ware,

28

Source Robert Phaal, Public domain roadmaps, 25/1/06, Institute for Manufacturing, Cambridge University

29

Robert Phaal,

Technology Roadmappi ng

Centre for Technology Management, University of Cambridge, United Kingdom

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Innovation and the need for Change

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Figure
IV
-
19

-

Technology Road
mapping Framework

(Phaal
[
29
]
)

Linking the market, product, and technology (external factors) with R&D and Resources (internal factors)
allocated is one of the prime applications of Technology Roadmapping.


Figure
IV
-
20

-

A Technology Roadmap
(Phaal
[
29
]
)

The position and interrelationships of technology
-
push and mark
et
-
pull in mapping technologies, as well as
views on “know
-
when”, “know
-
why”, “know
-
what”, and “know
-
how”
are

illustrated in
Figure
IV
-
21

below:

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Innovation and the need for Change

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32




Figure
IV
-
21

-

Generalised Roadmap Architecture
(Phaal
[
29
]
)

The roadmap (
Figure
IV
-
22
) below indicates on a high
-
level some trends and drivers in the Vehicle Technology
that may become useful in the vehicle group project.

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Innovation and the need for Change

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