Issue #12 [May 8-May 12]
Enterprise Entity
In our Enterprise Architecture discussion series, we have recently introduced the concept of reference architecture framework that helps build the actual enterprise architecture frameworks eventually helping build an enterprise. We have presumably read tons of enterprise architecture articles which talk about different topics on the subject. Now let us frame a few questions about enterprise architecture. Who builds the enterprise? What do we build within the enterprise? What are the basic activities that happen within the enterprise? All these questions are very important in terms of understanding enterprise architecture. The enterprise is actually represented by “Enterprise Business Entity” or “Enterprise Entity” or simply “Entity”. Therefore, enterprise entity builds the enterprise. In other words, we can say that understanding the concept of Enterprise entity will help us 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 the 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. Many different definitions of the word ‘entity’ are available in the current market; however, I prefer to define ‘entity’ in the PERA way, as it is easy to understand and it reveals the nature of the entity 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
Following diagram explains the enterprise entity concept:
In enterprise architecture, the enterprise lifecycle actually represents the lifecycle of each of the enterprise entities. Enterprise Life History captures the inter-relationship between different entities’ lifecycle stages. Complex topics like mergers and acquisitions 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 silent about these concepts.
Enterprise business entity identification
The answers to the following few important questions are a useful exercise to identify the enterprise business entity as described in PERA Master Plan (PERA):
- What is the major business activity of the 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 the Enterprise Business Entity as strategic? Will capital be committed to maintain and enhance the 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 entities introduced by GERAM within its GERA (GERAM):
The above mentioned recursive enterprise entities could be easily derived once we successfully derive the main enterprise business entity. These recursive entities cannot exist without Enterprise Business Entity. The following figure represents the chain of enterprise entity developments:
Entity Type 1 initialises the creation of all other types of recursive entities. With the possible exception of Entity Type 1, all enterprise entities will have an associated entity life-cycle, which may have an impact on 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:
Conclusion
Enterprise entity identification is therefore an 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 tools to identify 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 derive Type 2 and Type 3 enterprise architecture frameworks (Refer MDA Radar Issue 8), business processes, enterprise activities, domain processes and service oriented architecture. Enterprise Entity identification also helps us 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 also be discussed in our forthcoming issues. In a nutshell, we have now understood the multifaceted benefits of enterprise entity identification step. Stay tuned for next week’s discussion.
References
- 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.
- [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
