Defining the Extended
Enterprise
1st Doctoral Seminar
Frank Goethals
F.E.T.E.W. - K.U.Leuven
SAP-Research Chair on
‘Extended Enterprise Infrastructures’
Agenda
Fuzzy B2Bi
First set of research questions
Two basic types of B2Bi
Settingofthe
stageup an EE
The complexity
setting
Second set of research questions
Conclusions
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
2/15
Towards the first set of research questions
How to do B2Bi?
• Web services standards
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
3/15
UDDI: Universal Description Discovery
and Integration
WS Provider
WS Requestor
4. WS binding
3. Look up
technical details
2. Get service and
company information
1. Register service and
company
WS Broker –
UDDI business Registry
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
4/15
Towards the first set of research questions
How to do B2Bi?
• Web services standards
• Semantic web
System Integration
1st level: EAI
B2Bi
2nd level: Extended Enterprise
Integration
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
3th level: Dynamic
B2Bi
5/15
First research questions
1.What is Extended Enterprise integration?
2.In what does Extended Enterprise
integration differ from other forms of
integration?
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
6/15
What is the Extended Enterprise?
Firm
Network form of organization
Market
Transaction cost theory
High
High
High
Low
Low
Low
Coordinational aspects
Principal-agent theory
Motivational aspects
Property-rights theory
The IT-enabled Extended Enterprise is a collection of legal entities (N ≥ 2) that
pursue repeated, enduring exchange relations with one another, and of
which parties are willing to make relationship-specific IT investments.
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
7/15
What is Extended Enterprise integration?
Systems integration
Firm: EAI
B2Bi
G
G
D
K
…
Production
Development
Finance
Market B2Bi
EEi
A
K
F
B
J
A
C
L
H
E
2 types
Complexity
H
I
I
Long term relationship;
coordination needed
Fuzzy
A
J
L
Short term relation;
unilateral development
2nd R.Q.
Concl.
8/15
EEi vs. Market B2Bi WSes
Characteristic
EEi
Market B2Bi
User of the
Web service
Usually one user-organization.
User needs to be identified before
the development begins.
Partner-specific investments.
Counterparty is fixed.
Usually many using organizations.
User need not be identified before the
development begins.
No counterparty-specific inv.
Counterparty is variable.
Development
coordination
Creativity is possible.
Coordination is needed.
Standardized processes.
No coordination needed.
Measure of success
Satisfaction and acceptance.
Usage statistics.
Life Constituting Companies
Life
Life Market B2Bi Web Service
Life Extended Enterprise
Duration Market
B2B Transaction
Life EE Web Service
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
9/15
The enterprise life cycle
Individual Enterprise
Id
Identification
Co
Re
Concept
De
Requirements
Im
Design
Implementation
Operational
De
time
Id
Operation
Extended
Enterprise
Decommission
Co
Re
De
Im
Operat.
Decom.
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
10/15
Setting up an Extended Enterprise is complicated
Extended Enterprise: EEi
Individual Enterprise: EAI
Strategic
Level
Tactical
Level
Operational
Level
Business side
Fuzzy
2 types
Complexity
ICT side
2nd R.Q.
Concl.
11/15
Towards the second set of research questions
How to do B2Bi?
Coordination
= The management of dependencies.
RQ: How can classes of coordination mechanisms
be operationalized to deal with specific types of
dependencies in a specific integration context
(the Extended Enterprise), given the fact that
COTS software (providers) is (are) used.
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
12/15
Hypotheses
H1: Existing vendors of business software
can play an important role in Extended
Enterprise integration as an intermediary
person in the process of enabling the
Extended Enterprise with ICT.
H2: Business software providers can make
their software more powerful by
implementing standard Web services.
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
13/15
Conclusions
There are two basic forms of B2Bi: EEi and
Market B2Bi.
The coordination of dependencies is an
important issue in B2Bi.
We will investigate the dependencies that
show up and coordination mechanisms
that can be used.
Fuzzy
2 types
Complexity
2nd R.Q.
Concl.
14/15
Questions
or
comments?
15/15