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BUSINESS BEHAVIOR MODEL




   Denis Lemaire – Birger Andersson 2009-2010
Background

                             Organization

                                                                 Strategic
                                                                   level


                                                                  Tactical
Environment :                                                      level
   changing     Adaptation
                                                               Operational
                                                                 level

                                      From « e-business model ontology for improving business/IT alignment, HEC
                                                                                                 alignment,
                                                                     Lausanne »
Position
           Strategic level




           Tactical level
Definition

   The Business Behavior Model is a model which
      captures the impact of the participation of agents in
       a business through an analysis of economic resources.
       The participation is driven by decisions based on
       agent motivation


   In other words, a BBM models
         motives,
                 decisions, and resouces
         and how they are related
Strategic level (i*)

                                                                         Legend

                                                                              Actor
    Cookie                                                                (business role)
   Producer                                               Customer
               Increase
               solvability                  Maximum
                                            enjoyment
                                                                             Actor’s
                                                                            boundary

     Produce                 Receive                     Eat sweet            Goal
     cookies                 payment                     foodstuff

                                       D                                   Task(Means)

                                           Buy cookies                     Dependency
                                                                     D
                                                                              link
                                                                             Sub-goal
                                                                               link
                                                                           Means-ends
                                                                              link
Tactical level (e3value)
Tactical level (REA)


   <<Agent>>         <<Event>>       <<Stockflow>>   <<Resource>>
 Cookie producer   Cookie purchase                      Cookie




                           <<Duality>>




   <<Agent>>         <<Event>>       <<Stockflow>>   <<Resource>>
   Consumer           Payment                           Money
BBM. Syntax and semantic
     BBM Name            Representation (syntax)                           Semantic



    Economic resource                              Exchangeable resources that carries a set of properties.




Non-economic resource                              Resources that are not exchangeable to another actor.
          (Motivation)




    Economic resource                              Resource property
             property




                                                   Decision nodes represent identification of (alternative
             Decision
                                                   chains of) goals and means in order to reach an
                                                   objective
BBM. Syntax and semantic
  BBM Name                 Representation (syntax)                        Semantic


  Informational link                                 Decision A is needed in order to take decision B.
                           A                 B


        Causal link                                  Property A has an impact on the value assigned
                           A                 B       to property B. What impact is visualized through
                                                     a valuation symbol on the relationship (++,+,-,--).



   Definitional link        A                B       A is a sub-decision of B.




                                        B
                                                     Decision A brings about an economic resource
      Creation link    A                             B. I.e., A creates a resource that is considered in
                                                     the model.
Example of BBM
                                                        Motivation
                           Resource
                                                                          Good
            cookies
                                                                         solvency
  Causal                 Sellability
 relation                                           +                    ++
                                 -       +                                          Money
                  +
Property
                             price                                        amount

                         +           -
               quality                   quantity


                                                              Creation
                                                                Link
                          Produce
                          cookies                   Decision
Foundations
   Rational Agent Theory
       Anand S.R., Michael P.G. BDI Agents: From theory to practice (1995)

   Resource Based View (of the firm)
       Wernerfelt, B., The Resource-Based View of the Firm (1984)
       Barney J., Firm Resources and Sustained Competitive Advantage (1991)
   The Business Model Ontology (BMO)
       Osterwalder A., Pigneur Y., An e-Business Model Ontology for Modeling
        e-Business (2002)
   Causal Graphs
      as a syntactic base
       Gammelgård M. et al., Business Value Evaluation of IT Systems:
        Developing a Functional Reference Model (2006)
Usage scenarios
   Providing complementary information, thereby
    enriching the picture.

   Can be used as a ”stepping-stone” when deriving a
    Value model from a Goal model, or ...
   ... the other way around, deriving a Goal model
    from a Value Model
Example

Create a Business Behavior Model from a Value
model

A Massively Multiplayer On-line Game (MMOG)

The example is from the Game provider’s point of
view
Game provider’s value network
Decisions




                      Distribute
                      content


        Create Game                Transport CD   Buy hosting




                                   Provide MMOG
Resources and Motivation
                                                        Good
                                                      cash-flow

                                                            +
                                                                      Money

                                                                  Amount




                                                  +
                                                                      -
                  MMOG



                                                          Hosting



                      Distribute
                      content


        Create Game                Transport CD             Buy hosting




                                   Provide MMOG
Resource dependencies and impact
                                                                                       Good
                                                                                     cash-flow
   MMOG
Value Proposition   Customer          Infrastructure       Financial aspect                      +       Money
                                                                Sales            +
                                             +                                                       Amount
                    Attractive-
                    ness                                                +
                                                            +                                             -
                                  +                             AccessCost       Hosting

                                        No. of                               +    +
                                        players
   High                                                                                              Capacity
   Quality                  -
                                                       GamePrice
   Game                                                                                                   +

                                                                                                      Price

                           Distribute
                           content


             Create Game                    Transport CD                          Buy hosting




                                            Provide MMOG
In Summary
   The Business Behavior Model is positioned in
    between (or rather, in both) the strategic level and
    the tactical level of an organisation.
   Enables analysis of resources where properties of
    resources ultimately contributes positively or
    negatively to the motives of agents.
   ...
From a Business/IT-alignment point of
view
   Alignment by
     mapping of levels
     by introducing models that belong on serveral levels

   Is Motivation (a non-economic resource) the same as
    a Goal?
       any Motivation seems to be possible to formulat as a
        Goal. ”My market share next year should be 20%”
Businessbehaviormodeljuinpub

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Businessbehaviormodeljuinpub

  • 1. BUSINESS BEHAVIOR MODEL Denis Lemaire – Birger Andersson 2009-2010
  • 2. Background Organization Strategic level Tactical Environment : level changing Adaptation Operational level From « e-business model ontology for improving business/IT alignment, HEC alignment, Lausanne »
  • 3. Position Strategic level Tactical level
  • 4. Definition  The Business Behavior Model is a model which  captures the impact of the participation of agents in a business through an analysis of economic resources. The participation is driven by decisions based on agent motivation  In other words, a BBM models  motives, decisions, and resouces  and how they are related
  • 5. Strategic level (i*) Legend Actor Cookie (business role) Producer Customer Increase solvability Maximum enjoyment Actor’s boundary Produce Receive Eat sweet Goal cookies payment foodstuff D Task(Means) Buy cookies Dependency D link Sub-goal link Means-ends link
  • 7. Tactical level (REA) <<Agent>> <<Event>> <<Stockflow>> <<Resource>> Cookie producer Cookie purchase Cookie <<Duality>> <<Agent>> <<Event>> <<Stockflow>> <<Resource>> Consumer Payment Money
  • 8. BBM. Syntax and semantic BBM Name Representation (syntax) Semantic Economic resource Exchangeable resources that carries a set of properties. Non-economic resource Resources that are not exchangeable to another actor. (Motivation) Economic resource Resource property property Decision nodes represent identification of (alternative Decision chains of) goals and means in order to reach an objective
  • 9. BBM. Syntax and semantic BBM Name Representation (syntax) Semantic Informational link Decision A is needed in order to take decision B. A B Causal link Property A has an impact on the value assigned A B to property B. What impact is visualized through a valuation symbol on the relationship (++,+,-,--). Definitional link A B A is a sub-decision of B. B Decision A brings about an economic resource Creation link A B. I.e., A creates a resource that is considered in the model.
  • 10. Example of BBM Motivation Resource Good cookies solvency Causal Sellability relation + ++ - + Money + Property price amount + - quality quantity Creation Link Produce cookies Decision
  • 11. Foundations  Rational Agent Theory  Anand S.R., Michael P.G. BDI Agents: From theory to practice (1995)  Resource Based View (of the firm)  Wernerfelt, B., The Resource-Based View of the Firm (1984)  Barney J., Firm Resources and Sustained Competitive Advantage (1991)  The Business Model Ontology (BMO)  Osterwalder A., Pigneur Y., An e-Business Model Ontology for Modeling e-Business (2002)  Causal Graphs  as a syntactic base  Gammelgård M. et al., Business Value Evaluation of IT Systems: Developing a Functional Reference Model (2006)
  • 12. Usage scenarios  Providing complementary information, thereby enriching the picture.  Can be used as a ”stepping-stone” when deriving a Value model from a Goal model, or ...  ... the other way around, deriving a Goal model from a Value Model
  • 13. Example Create a Business Behavior Model from a Value model A Massively Multiplayer On-line Game (MMOG) The example is from the Game provider’s point of view
  • 15. Decisions Distribute content Create Game Transport CD Buy hosting Provide MMOG
  • 16. Resources and Motivation Good cash-flow + Money Amount + - MMOG Hosting Distribute content Create Game Transport CD Buy hosting Provide MMOG
  • 17. Resource dependencies and impact Good cash-flow MMOG Value Proposition Customer Infrastructure Financial aspect + Money Sales + + Amount Attractive- ness + + - + AccessCost Hosting No. of + + players High Capacity Quality - GamePrice Game + Price Distribute content Create Game Transport CD Buy hosting Provide MMOG
  • 18. In Summary  The Business Behavior Model is positioned in between (or rather, in both) the strategic level and the tactical level of an organisation.  Enables analysis of resources where properties of resources ultimately contributes positively or negatively to the motives of agents.  ...
  • 19. From a Business/IT-alignment point of view  Alignment by  mapping of levels  by introducing models that belong on serveral levels  Is Motivation (a non-economic resource) the same as a Goal?  any Motivation seems to be possible to formulat as a Goal. ”My market share next year should be 20%”