In their previous work, the authors have developed a new kind of enterprise model, called fractal enterprise model, that connects enterprise processes via as-sets used for running these processes. One of the possible usages of this model is facilitating innovation, more exactly, changing or extending a business model used in the enterprise. This research-in-progress paper presents the idea of how such facilitation could be arranged, and lists the problems that need to be solved in order to convert the idea into a practical methodology. The discussion is based on a hypothetical example.

1. Using a Fractal Enterprise Model (FEM)
for Business Model Innovation
- a research-in-progress paper
Ilia Bider and Erik Perjons
Department of Computer and Systems Sciences
Stockholm University
[ilia|perjons]@dsv.su.se
BPMDS’17 Working Conference
Business process modeling,
development and support

2. The Fractal Enterprise Model (FEM)
• The fractal enterprise model (FEM) starts with a process and presents
assets (resources) needed for running this process ….

3. The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the asset

4. The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the asset

5. The Fractal Enterprise Model (FEM)
• … and for each asset, FEM presents processes for how to aquire,
maintain or retire the assets

6. Building a FEM - using patterns
• Process-to-asset patterns/archetypes

7. Building a FEM - using patterns
• Asset-to-process pattern/archetype

8. Building a FEM - using patterns
• Applying the patterns will create a FEM – and the final result will be
an hierarchy of processes and assets

9. The Fractal Enterprise Model (FEM)
FEM can be used for:
• finding “invisible” processes that exists or should exist in the enterprise
• understanding how certain assets and processes are used in different
parts of the enterprise
• identifying capabilities of an enterprise
• planning business model transformation
• …

10. The Fractal Enterprise Model (FEM)
FEM can be used for:
• finding “invisible” processes that exists or should exist in the enterprise
• understanding how certain resources and processes are used in
different parts of the enterprise
• identifying capabilities of an enterprise
• planning business model transformation
• …

11. An approach for business model transformation
The approach consist of two steps:
1) Generating hypotheses
2) Assessing promising hypotheses

12. Demonstration - book-sales-on-the-web business
transformation (inspired by Amazon case)

13. An approach for business model transformation
The approach consist
of two steps:
1) Generating
hypotheses
2) Assessing
promising
hypotheses

14. An approach for business model transformation

15. An approach for business model transformation

16. An approach for business model transformation

17. An approach for business model transformation

18. An approach for business model transformation
The approach consist of two steps:
1) Generating hypotheses
2) Assessing promising hypotheses

19. Decision makers are often book readers
An approach for business model transformation

20. One platform vs many
platforms for customers
An approach for business model transformation

21. More staff might be
required
An approach for business model transformation

22. Decision makers are often book readers
One platform vs many
platforms for custumers
More staff might be
required
An approach for business model transformation

23. The challenge addressed – how to extend or
change an existing business model

24. Next step
• Develop transformation pattern based on FEM
• Using an infrastructural assets for building a service for external customer
• From designer to manufacturer
• From manufacturer to designer
• From educator to consultat
• ….
• Develop qualitative and quantitative measures
• Supporting the analysis when comparing nodes

25. Earlier publications of FEM
• Bider, I., Perjons, E., Elias, M., & Johannesson, P. (2016). A fractal enterprise model
and its application for business development. Software & Systems Modeling, 1-27.
• Josefsson, M., Widman, K. &Bider, I. (2015). Using the Process-Assets Framework for
Creating a Holistic View over Process Documentation. In : Enterprise, Business-
Process and Information Systems Modeling, LNBIP, Vol. 214. Springer, Stockholm
(2015) 169-183,
• Henkel, M., Bider, I. & Perjons, E. (2014, June). Capability-based business model
transformation. In International Conference on Advanced Information Systems
Engineering (pp. 88-99). Springer International Publishing.
• Elias, M., Bider, I. & Johannesson, P. (2014). Using Fractal Process-Asset Model to
Design the Process Architecture of an Enterprise: Experience Report. In BPMDS 2014
and EMMSAD 2014. LNBIP 175, Thesalonniki, Greece. Springer, pp.287-301.
• Bider, I., Perjons, E. & Elias, M. (2012). Untangling the Dynamic Structure of an
Enterprise by Applying a Fractal Approach to Business Processes. In Proceedings of
PoEM 2012. LNBIP 134, Oslo, Norway. Springer, pp.61-76.