1. Enterprise Systems and Modelling
IS1/IV2007
Autumn 2009
Course Compendium
http://vle.dsv.su.se/course/view.php?id=225
Department of Computer and Systems Sciences
Royal Institute of Technology and Stockholm University

2. COURSE GOALS
The overall course goal is to create an understanding of analysis, design and use of intra and
inter-organisational enterprise information systems through the use of enterprise modelling.
This understanding means that the student after completing the course shall be able to:
1. explain and evaluate central concepts in intra and inter organisational enterprise information
systems, especially regarding their functionality, architecture, development, use, and
consequences
2. analyse and design goal models describing the goals of an organisation and means used for
fulfilling the goals
3. analyse and design business and value models for individual organisations as well as
networks of organisations with a focus on production, transformation and exchange of
resources
4. analyse and design process models including actors, information, control flow, and resource
aspects
5. design and evaluate organisations and their business activities as well as information systems
using enterprise modelling
6. summarise, apply and evaluate results in recent scientific literature in the area of the course
Detailed grading criteria can be found at the course web site.
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3. SCHEDULED ACTIVITIES
LECTURE 1: Course overview and context. Goal models
LECTURE 2: Business models, REA (Resource – Event – Agent), an ontology for enterprise
systems
LECTURE 3: More on business models, e3-value
LECTURE 4: Linguistic models for communication. Speech acts. A formal language for business
communication (FLBC)
LECTURE 5: Process models, EPC-diagrams
LECTURE 6: Performance management for business processes
LESSON 1: Goal models
LESSON 2: Business models I
LESSON 3: Business models II
LESSON 4: Process models
INITIAL PRESENTATION: Project assignment
MODELLING SESSION: Project assignment
FINAL PROJECT REVIEW: Project assignment
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4. LITERATURE
Pavel Hruby: Model-Driven Design Using Business Patterns, Springer, 2006
Collection of selected papers
TEACHERS
Paul Johannesson (Course leader) pajo@dsv.su.se 16 16 71
Gudrun Jeppesen-Neve gudrun@dsv.su.se 16 16 53
Erik Perjons perjons@dsv.su.se 16 49 47
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5. EXAMINATION
The examination of the course consists of three parts:
• Written exam, see section written exam
• Project assignment, see section project assignment
• Paper evaluation, see section paper evaluation
WRITTEN EXAM
Examples of previous written exams can be found at the course web site and the First Class
conference “gamla tentor”, a sub-conference to the conference “Studentexpeditionen”. The
students are allowed to bring lecture notes, exercise notes and course literature to the written
exam.
PROJECT ASSIGNMENT
This assignment is to be carried out in groups of five students. Each such group is called a
project group. The assignment is about a start-up company in the home health care area. Your
task is to design the company as well as its IT support focusing on its goals and processes.
BACKGROUND
Advanced home health care means that patients get qualified health care in their own homes,
i.e. the kind of health care that is otherwise provided only at hospitals. One reason for the
increasing interest in home health care is that it is less expensive than health care offered at
hospitals. Furthermore, many patients prefer home health care to hospital care, as it enables
them to go on with their ordinary lives. However, a major problem in home health care is a lack
of feeling of safety. Patients are concerned that they will not be able to quickly get in contact
with doctors and nurses when needed. They are worried that the health care personnel does
not have access to correct and up-to-date information about their diseases and problems, and
that different care providers do not communicate appropriately. One way to address these
problems is by using information technology and information systems. The business idea of the
company you are going to design is to offer hi-tech products and solutions for home health
care. In particular, the company will offer advanced health care appliances appropriate for
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6. home health care. Exactly which products and solutions to be offered by the company is up to
the project group to decide. In order to get a better understanding of the business of the
company, the project group will have to do information search on the Internet. Some useful
links to get started are:
http://www.pueblo.gsa.gov/cic_text/health/med-device/mdt.html (a document on home
health care and medical equipment)
http://www.hommed.com/ (a company offering monitors for home health care)
The company is to work on a global market and sell to countries with different health care
systems. In some countries, the company expects to sell primarily to private persons that pay
directly for the company’s products. In other countries, the company will sell to hospitals or
other care providers that give or lend the equipment to patients. In some cases, these care
providers will be funded by insurance companies and in other cases by local or national
governmental bodies. The company expects to sell standard products as well as custom made
products. Standard products are taken directly from the shelf and are then delivered to
customers. Custom made products are tailor made to the needs of individual customers and
patients. This tailoring may require extensive communication with the customer followed by
the design of an appropriate solution and its subsequent production and delivery.
The design should make use of the most recent developments in the ICT area including systems
and services for B2B, B2C, CRM, etc.
DOCUMENTATION
The project group shall document its design in a report consisting of five parts: a value network
analysis, a goal design, a process design, an IT architecture design, and a process analysis. The
report shall be so detailed and well argued, textually as well as graphically, that it can be used
as an instrument for decision making.
Part I - Value Network Analysis
This part is to show the value network in which the company will work. Agents, resources, and
exchanges of resources are to be made explicit. Note that the group here has to clarify exactly
which products the company is to offer. Also note that the value network analysis has to take
into account that the company is to work in different markets with different actors. Part I shall
consist of two subparts:
• An e3-value business model
• A textual explanation of the e3-value business model
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7. Part II – Goal Design
This part is to show the goals of the company. The goals shall be clearly related to the value
network analysis in Part I. In order to identify relevant goals, the project group shall make use
of the five forces model and generic strategies of Michael Porter (see links under “Useful
resources” at the course web site). Part II shall consist of two subparts:
• A BMM goal model where each leaf goal is associated to at least one means and one
objective
• A textual explanation of the BMM model that shows how it is related to the components
of the five forces model
Part III – Process Design
This part is to show the processes of the company. The processes shall be clearly related to the
value network analysis in Part I and the goal design in Part II. Part III shall consist of four
subparts:
• A conceptual schema for the company (expressed as UML class diagrams) using the REA
ontology. All classes/entities including attributes must be named and the
cardinality/multiplicity between the classes/entities must be expressed. Stereotypes for
all classes shall be specified in accordance with REA.
• A value process graph for the most important processes showing the resources
produced and consumed.
• A number of detailed process models. For this purpose, the ARIS Business Architect is to
be used and organizational charts, function trees, and EPC diagrams are to be
constructed (see the website for more information). The processes should include sales
and procurement. The process models shall show actions of individual actors and handle
alternatives and exceptions. It is recommended to make each process diagram small by
using the decomposition mechanisms of EPC diagrams.
• A textual description of the models constructed above. The following questions are to
be answered: How does the design of the processes help in fulfilling the goals of the
company? Which Action-Workflow loops exist in the process models? Which are the
open loops and the closed loops in the process models? If there are open loops, should
they be closed? Which parts of the conceptual schema correspond to the REA ontology?
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8. Part IV – IT Architecture Design
This part is to show the IT architecture of the company. The IT systems to be used in the
company are to be specified, including DBMS, BPMS, CRM, ERP, DW, BI tools, dashboard, and
KM. The use of EAI and decision support systems (BI, DW and Dashboards) shall also be
discussed. Part IV shall be documented graphically in a diagram showing the systems and the
data flows between them, representing systems as nodes and data flows as labeled arrows. The
relationships between the systems and the business processes they support shall also be made
explicit.
Part V – Process Analysis and Measurement
This part is to show the key performance indicators (KPI) for measuring and analysing the
business processes of the company. The project group shall develop between 5 and 10 leading
and lagging indicators. These indicators shall be related to the goals of the company. It shall
also be specified in which part of the business processes, i.e. which activities, the indicators
need to be measured, and which IT systems that will provide data for the indicators. The
documentation of Part V shall consist of two subparts:
• A set of leading and lagging indicators (between 5 and 10) shall be developed. Each
indicator shall be described in an indicator template consisting of at least the following
parts: name of the indicator, definition of the indicator, which goal(s) in the company’s
goal model that the indicator is related to, target values, which part of a business
process (i.e. which activity) the indicator measures, which IT system that will be the data
source for the indicator, and which type of IT solution will feed the dashboard system
with data from the source system. (An example of a more extended template can be
found in the Eckerson article, page 207, in the Paper collection.)
• An evaluation of the chosen indicators according to relevant characteristics specified in
the Eckerson article, page 201, in the paper collection.
Ensure that the indicator templates are consistent with the IT architecture in Part IV.
PROJECT ASSIGNMENT PROCEDURE
In order to pass the project assignment, each project group has to
1. Participate in an initial presentation
2. Participate in an early project review and hand in the results of this review
3. Participate in a modelling session
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9. 4. Construct and hand in a final solution, documented in the same way as done in the seminar
groups
5. Participate in a final project review
Initial Presentation
Each project group meets with a teacher for about 30 minutes and presents and discusses its
solutions. The following models are to be presented:
• e3-value model (Part I)
• Goal model (Part II)
• Draft of the conceptual schema (Part III, first bullet)
Early Project Review
Two project groups must meet and discuss and review each other’s models. It is up to the
project groups to find another project group with which to perform the project review. The
results from the review must be documented by each project group (according to the early
project review template) and shall be handed in by FirstClass.
The review should focus on the model syntax (does the project group use the correct
notation?), the scope (are all parts of the company modelled?) and the detail level of the
models (are the models detailed enough?). The review should also check that all model types
(conceptual schema, goal model, and value process graph) are included. Each project group
must hand in a review protocol, and the early review protocol template on the home page of
the course shall be used for this purpose.
Modelling Session
During the modelling session, which is a one day event, two project groups should together
create the models required for the documentation based on the two project groups’ models.
The project groups will discuss and compromise to find common models. The modelling must
be carried out using plastic sheets and post-it notes, which will be supplied by the teachers
during the modelling session. The project groups will refine their models from the modelling
session and hand in the final documentation. The final documentation must contain a
description of which changes the project groups have made at and after the modelling seminar.
Note: the teachers will pair the groups of the modeling session.
Final Project Review
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10. Two project groups and a teacher meet for about 60 minutes. The project groups shall
exchange their documentation at least two days before the final project review. Each project
group shall read and criticise the work of the other project group. During a review, an opponent
group leads a discussion by first giving a short presentation of the other group’s work (at most
15 minutes) and then giving detailed comments and questions that the other group shall
answer (for about 15 minutes). The final review protocol template on the home page of the
course shall be used.
PAPER EVALUATION
This part of the examination can be carried out in two ways depending on the desired grade. In
order to get grade C, D or E, the following is to be carried out:
1. Select one of the research papers available at the web site of the course
2. Write a short report of the selected paper that includes the following
a. A summary of the paper containing 500 – 800 words
b. An evaluation of the paper based on the paper evaluation sheet found at the course web
site. For each criterion, you shall justify your judgment. The last criterion (on APA) is not to be
applied
c. A discussion on how you could apply the results of the paper to the project assignment of the
course
3. Hand in your report using FirstClass
In order to get grade A or B, the following is to be carried out:
1. Select one of the research papers available at the web site of the course
2. Search the Internet for one more paper on topics closely related to the paper selected.
3. Read the paper by Hevner et. al. on design science in information systems (available at the
course web site)
4. For each of the two papers, write a summary and evaluation report including the following
a. A summary of the paper containing 500 – 800 words
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11. b. An evaluation of the paper based on the paper evaluation sheet found at the course web
site. For each criterion, you shall justify your judgment. The last criterion (on APA) is not to be
applied
c. An evaluation of the paper based on the design science paper by Hevner et. al. The
evaluation shall be at least as detailed as the example evaluations in Section 4 of the Hevner
paper
d. A discussion on how you could apply the results of the paper to the project assignment of the
course
5. Write a short comparison report that explains how the papers are related to each other, max
1000 words
6. Hand in your reports using FirstClass
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12. LESSON 1
GOAL MODELS
EXERCISE 1
An eye care hospital has experienced a number of problems:
• Patients have to wait for a long time before they can get treatments by specialists
• A patient who is waiting for a treatment cannot get information about how long the
waiting time will be
• Information about patients who have been treated at the hospital has reached the
media and has even been published on the Internet
• Many surgical treatments do not give expected results and there are often problematic
complications and side effects
• Costs are increasing rapidly
The municipality in which the hospital is situated has recently issued a number of new
regulations:
• Every electronic access of patient information has to be logged
• Standardized authorization systems shall be used for access to patient information
• No one should have to wait more than three months for specialist treatments
The management of the hospital is concerned about these problems and the new regulations.
Therefore, they have decided to produce a goal model according to BMM in order to better
understand the goals of the hospital and how they could be achieved. The management
believes strongly in an approach to improved cooperation between the hospital and private
care providers. Today doctors refer patients to the hospital also for routine eye problems, and
the hospital then refers the patients to a private eye care specialist. It would be preferable if
the doctors could directly refer the patients to the private care provider, as this would shorten
waiting time and reduce the pressure on the hospital’s resources. Management believes this
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13. should be a feasible approach as new technology, especially IT, could support this way of
working. However, there may be some difficulties in introducing this approach:
• Many people do not want to change their way of working
• Some people fear they will get less work to do
This is just one approach for addressing the problems above. Many more ideas are needed.
Your task is to come up with a goal model that can help the hospital to channel its efforts
towards solving its problems.
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14. LESSON 2
BUSINESS MODELS I
EXERCISE 1
There exists a number of Internet music stations, where a listener can choose what music he or
she would like to listen to. The listener does not have to pay any fee, instead the Internet music
stations get revenue from advertisers. Furthermore, the music stations have to pay for the
music they are playing. This is done through two regulatory bodies, called RecitalRight and
SongRight (fictitious names). RecitalRight gives rights to play music performed by certain artists
and produced by producers and manages the reimbursement to these actors. SongRight does
the same but for composers and textwriters.
a) Create an e3-value model for the above business case including actors, value objects, and
value exchanges.
b) Complement the model from a) with a scenario path.
c) Suppose that there is a new actor, an advertisement broker, that helps advertisers to target
the right listeners. The advertisement broker gets information about the listeners from the
Internet music stations and uses this information to match listeners with advertisements. In this
way, listeners will be exposed to more relevant advertisements. Extend the model from a) to
include this actor.
EXERCISE 2
In the text below, the business of a company is described. Solve the following tasks based on
that description:
a) Construct a conceptual schema for the business using REA.
b) Assume that the company no more delivers the pictures with their own personnel and cars
but outsources this activity to a distributor. How does the schema from a) change?
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15. c) Construct a value process graph for the business that shows how the processes are
interrelated based on the resources they produce and consume. Show how the processes relate
to the conceptual schema from a).
A company manufactures and sells framed fossils. The company has a number of subunits that
autonomously manage procurement and sales. However, some activities are managed
centrally, see below. The subunits procure fossils and frames from their suppliers – note that no
single supplier can provide both fossils and frames. The fossils to be framed are typically very
expensive and are procured one at a time, often after a complex negotiation. The frames, on
the other hand, are fairly inexpensive and are ordered in large quantities in order to keep prices
down
The mounting of the frames is made by qualified personnel. When a picture is completed, it is
inspected by an inspector in order to guarantee that it holds the highest standards before it is
shipped to a customer. The customers usually buy only one fossil at a time, but sometimes one
customer orders several pictures simultaneously. In most cases, the customer specifies the kind
of fossil desired, e.g. “tooth of Tyrannosaurus Rex”, but sometimes a customer orders a specific
fossil. Most pictures are expensive and fragile and they are, therefore, shipped directly to the
customer by the company’s own personnel who for this purpose use the company cars. The
company employs central personnel for mounting and delivery of pictures. Furthermore, the
company centrally purchases the cars used at the deliveries. A number of information
requirements are the following:
1. Which customers have bought a picture costing more than 1000 euro?
2. Which customers have bought a picture but still not paid for it?
3. Which frame is the most popular for fossils costing more than 10,000 euro?
4. Which suppliers can deliver amber fossils?
5. Which employees have delivered a picture to the customer Anders Andersson?
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16. LESSON 3
BUSINESS MODELS II
EXERCISE 1
CONSTRUCT exchange and conversion processes for explaining language training by means of the
REA ontology. What resources are involved in language training and what actors? Which
economic events are changing the resources? Take the perspective of an employee who
acquires language training. Think about what resources the employee acquires and how she
uses them. Document your answer using exchange as well as conversion processes. Include
stereotypes for all classes introduced.
EXERCISE 2
CONSTRUCT exchange and conversion processes for explaining radio advertising by means of the
REA ontology. What resources are involved in radio advertising and what actors? Which
economic events are changing the resources? Take the perspective of a company that acquires
radio advertising. Think about what resources the company acquires and how it uses them.
Document your answer using exchange as well as conversion processes. Include stereotypes for
all classes introduced.
EXERCISE 3
CONSTRUCT exchange and conversion processes for explaining garbage management by means of
the REA ontology. The background is that a company that produces resources may also produce
garbage (including toxic material) that has to be disposed. In other words, the company has to
get rid of the garbage in an environmentally acceptable way. What resources are involved in
garbage management and what actors? Which economic events are changing the resources?
Take the perspective of a company that has to manage its garbage and does so by itself. Think
about what resources the company acquires and how it uses them. Document your answer
using exchange as well as conversion processes. Include stereotypes for all classes introduced.
Suppose that the company outsources the management of garbage to another company. How
will the processes changes.
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17. LESSON 4
PROCESS MODELS
EXERCISE 1
Consider the following recipe: Salmon with mashed potatoes is made in the following
way. The salmon is cut into small pieces and salt and pepper is added. Thereafter, the
salmon is put into a refrigerator for 20 minutes. In parallel, the potatoes can be
prepared. 5 kilos of potatoes are boiled on the furnace for 15 minutes. Thereafter,
butter and salt is added and everything is mixed in a mixing machine for 2 minutes.
Finally, the mashed potatoes is sprinkled around the salmon and put into an oven for 35
minutes. Use an EPC diagram to model this recipe. Make sure that all resources are
modelled, ingredients as well as kitchen machines.
EXERCISE 2
AN OFFICE CHAIR CONSISTS OF TWO PARTS, a bottom
part and a top part. The bottom part consists
of one bottom frame and four wheels. The top part consists of one top frame, one seat,
one back, and two arm rests. An office chair is assembled in the following way. The
bottom frame and the four wheels are assembled to produce the bottom part. Doing
this requires one machine of type A and takes 20 minutes. Independently of this, the top
part is assembled. The back is painted, which takes one hour and requires one machine
of type B. The top frame, the seat, and the two arm rests are also assembled. This
requires one machine of type B and takes 40 minutes. Finally, the back is added to the
top part, which takes 15 minutes and one machine of type B. When both the bottom
part and the top part are completed, they are assembled into a chair – 20 minutes and
one machine of type A. Model the assembly of the office chair by means of an EPC
diagram.
EXERCISE 3
SOME CONFERENCES INVITE AUTHORS TO SUBMIT PAPERS. The
following text specifies a possible
procedure for managing the invitation and the paper submission.
The conference chair sends a personal invitation to a possible author. If the author
answers in the affirmative within seven days, she will get an instruction message
describing the submission procedure in detail. If the answer is negative, the author will

18. get a polite acknowledgement message. The author should provide a full paper within
30 days of the instruction message. If the author has not submitted a paper before this
deadline, she will get a notification. This notification will be repeated four times with
two days between the notifications if there is no answer from the author. When the
paper has been submitted, it is sent for a scientific review to a reviewer. The reviewer
must answer within 10 days. If there is no answer from the reviewer, she will get exactly
one notification. If the reviewer does not send in a review report within three days of
the notification, the paper must be reviewed by another person. The conference chair
selects another person and the paper is sent to this person with a request to review the
paper within 3 days. If the new reviewer rejects the request or does not send a review
on time, the procedure is repeated. There may be many failed repetitions, and if it turns
out to be impossible to find a reviewer, the conference chair has to review the paper
herself. When the review has been completed, the conference chair will make a decision
whether to accept the paper. If it is accepted, an acceptance letter is sent to the author,
otherwise a rejection letter. Model this process by means of an EPC diagram. Note that
the description is incomplete and make appropriate assumptions.