International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
The Disciplinary Nature of Business Engineering
Togar M. Simatupang
School of Business and Management, Bandung Institute of Technology, Bandung 40132, Indonesia.
Orcid: 0000-0002-6578-0998
Akbar Adhi Utama
School of Business and Management, Bandung Institute of Technology, Bandung 40132, Indonesia.
Orcid: 0000-0002-8625-038X
Nur Budi Mulyono
School of Business and Management, Bandung Institute of Technology, Bandung 40132, Indonesia.
Orcid: 0000-0001-6135-9357
Abstract
Business Engineering has evolved in importance within the
firm and education. Although business engineering is now an
established field, the distinction between business engineering
and other engineering fields is relatively immature and requires
further investigation. The body of knowledge of business
engineering is also yet unclear. The purpose of this paper,
therefore, is to clarify the distinction between business
engineering and other engineering applications to business
enterprises and to propose a preliminary body of knowledge of
business engineering based on previous research. The idea of
the framework is to employ engineering principles to design
and improve a business entity by translating strategy into the
integration of process, organization, and technology for
creating sustainable competitive advantage.
Keywords: business engineering, body of knowledge,
academic discipline
INTRODUCTION
Business engineering which is a multi-layered approach to
business is of interest to both academics and practitioners [1].
The basic view of business engineering is to treat a business as
an integrated system that can be developed to attain better
performance [2]. Multi-dimensional frames, theories, and
methodologies have been used in describing, modifying, and
explaining a business system [3]. As a consequence, diverse
views of business engineering make it difficult to conceptually
promote this discipline in practice. The main motivation in
exposing business engineering is then to eliminate confusion of
its core constituents and to elaborate its distinct disciplinary
identity.
Business engineering has been known as an academic field
thought at higher education primarily in European countries.
This field is relatively new and accepted as the interaction
between business domains and engineering applications. The
core includes the design of a business with analytics and
supporting information tools in a systematic way [2]. There has
been an increase in dialogue about the disciplinary nature of
business engineering. The discussion has been sorrounding a
distinctive feature of business engineering compared to other
fields such as the general operations management (OM) field,
supply chain management, and the latest developments in
engineering management even with industrial engineering.
This raises the issue of the more appropriate position to frame
business engineering conceptually as a separate body of
knowledge.
The field of business engineering has undergone significant
development. The term was first coined to embrace the
advantages of information technology for transforming a
business system [3]. The conventional methods in the industrial
era are no longer adequate to address a new level of spatial and
participatory complexities [4]. The digitalization of enterprises
becomes a common phenomenon in the information era.
Business engineering is often regarded as a subfield of business
informatics for the heavily use of information technology [4].
Business engineering is also viewed as a form of organization
development to transform a business system to be more
competitive [2]. The latest development extends business
engineering to incorporate value chain engineering that spans a
network of companies [5, 6, 7]. The development of business
engineering indicates little agreement on the primary functions
of business engineering.
This research asserts that the unclear disciplinary identity of
business engineering is due to the parallel development and
contributions from different broad fields based on their own
methods and approaches. The previous contributions tend to
improve the functional areas of business and not to develop a
substantial body of knowledge [2 and 8]. Informatics becomes
13365
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
a predominant approach to represent business engineering [4].
For example, informatics enables a business entity to be
transparent and responsive in dealing with complexities and
risks. This makes the current approach to business engineering
overlooked a holistic view to the body of knowledge of
business engineering.
This research, therefore, attempts to address the problematic
issues surrounding the disciplinary identity of business
engineering which is conducted in two stages. First, the search
for the disciplinary identity of business engineering relative to
other engineering applications to business enterprises is often
the focus of ongoing debate. The proposed tool to resolve the
debate is based on a binary aspect to developing the
engineering applications according to two main dimensions: a
strong emphasis in prescribing levels of business organizations
ought to change, and a concentration on exploring predominant
focus on engineering methods. This stage used a synthesis
approach to differentiate positions of previous disciplinary
fields of engineering approaches. Based on this
conceptualization, the four engineering fields of business
enterprise are able to be identified and the position of business
engineering as a distinct disciplinary identity was clearly
shown.
The second part of this research attempts to clarify regarding
the meaning and scope of business engineering. A body of
knowledge (BOK) framework needs to develop that builds on
what has been carried out in the previous research. The
objective is to extract commonality of the identity of business
engineering across functions. Relevant literature in the field of
business engineering was examined to critically appraise aims
and existing knowledge and cast light to how to develop
business engineering body of knowledge framework.
ENGINEERING APPROACHES TO BUSINESS
ENTERPRISES
The basic question in business is how one can dramatically
improve overall business performance. An engineering
approach follows the creativity-based engineering design
process which is known as the application of scientific
knowledge to solving problems in the real world. Engineering
based business development means the applications of
engineering principles to the design, development,
implementation, testing, and maintenance of business
enterprise in a systematic way. Engineering approaches are the
activities of research, design, testing, and operations of
systems-level business and general computing methods. The
engineering approach is directed to be able to identify all
aspects of business mechanisms and explain how the
establishment and use of basic engineering principles in order
to economically ensure that a business system is reliable and
works efficiently in a real situation.
The presence of engineering applications has moved the
attention to both technical and social aspects of business
enterprise and the concerns of an organization to focus on a
particular state of change. The quest of engineering is about
what objects (i.e., knowing what) to change and what methods
(i.e., knowing how) to build. An object of change is an entity
which has a unique identifier and a state consisting of a
collection of attributes. The state of an object can only be
modified, redesigned, and improved with a set of methods
assigned on the object [9]. The matching between object and
method determines typical engineering interventions that
suggest improvements for structuring work design and
organizational systems, implementing operational systems
such as production and marketing processes, and creating
required information, rewards, and control systems to ensure
organizational efficiency and effectiveness. The nature of
engineering approaches to business enterprises can thus
roughly be divided in two dimensions: focusing on
understanding what organizations undertake in different states
of change and focusing on understanding typical orientations
of engineering methods.
The first dimension is the states of change by which
organizations move from their present state to some desired
future state to increase an organization’s ability to create value
[10]. The change process is to try to answer the question of how
one gets from here to there. The narration is often required to
explain the underlying logic of the change that divides time into
serial stages. The first step in managing change is to identify
the type of changes. There are many issues to consider in
identifying business change whether the changes are focused
on processes or structures for creating value. The attention of
change can therefore be divided into processual and structural
states. Processual states are business procedures and processes
of adding value to input factors by turning them into goods and
services [11]. The changes include process reengineering, new
product design, service development, and new technology
adoption. Structural states are the concerns for an arrangement,
pattern, architecture, and organization of interrelated elements
in a business system which gives forms and stability.
Structural state usually involves recognizing the needs to
redesign fundamental architectures of the way of doing
business in a response to unexpected market changes that often
results in a shift in work culture. There are two types of
structure: (1) technical structure is technologically-related
operations, infrastructure and functions such as information
technology networks and systems that have an architecture, and
(2) social structure is the organized set of social institutions and
patterns of institutionalized relationships that together compose
business. Examples of structural change include implementing
major strategic and cultural changes, reshaping business
strategy, adopting radically different technologies, making
significant operating changes to meet new supply and demand,
and reforming product and service offerings to meet
unexpected competition and dramatic reductions in revenue.
13366
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
The second dimension is the orientation of methods focusing
on the design, construction and evaluation of methods,
techniques, and support tools for business development.
Engineering methods in business enterprise are related not only
to the applications of engineering principles but also to the way
of constructing new methods from the existing ones [12]. The
orientation of methods offers technically oriented methods and
socially oriented methods to include instruments, tools, and
rules of improvements. Technically oriented methods have
been proposed to follow hard engineering tools such as
procedures, heuristics, algorithm, analytics, computation, and
experimentation. For example, there are several methods for
quality improvement with a technical orientation such as
statistical process control, process mapping and flow charts,
and failure mode and effect analysis. Socially oriented methods
have focused on rules and social to attain successful change,
not only individual actors but also concerted action to foster
company performance. Improving business system is a social
process so that theories and methods of social science can be
used to engineer business practices.
Matching objects and methods results in a stylized way to
expose the four disciplinary identities of engineering
approaches to business enterprises is shown in Figure 1. In case
of business development, there are four fields of engineering
approaches characterized by interventions available for specific
fits of states of change and orientation of methods: Industrial
Engineering (techno-processual intervention), Engineering
Management (socio-processual intervention), Enterprise
Engineering (techno-structural intervention), and Business
Engineering (socio-structural intervention). An intervention is
a set of planned actions based on engineering methods to
improve states of change intended to increase the effectiveness
of organization. Each field serves as specific improvement
interventions whereby methods are created to match specific
organizational situations.
Matching objects to change
and methods to build as
engineering approaches to
business enterprises
States of
change
Structural
States
Processual
States
Orientation of methods
Technically
Oriented
Methods
Socially
Oriented
Methods
Enterprise
Engineering
(technostructural
intervention)
Business
Engineering
(sociostructural
intervention)
Industrial
Engineering
Engineering Management
(techno(socioprocessual
processual
intervention) intervention)
Figure 1: The four disciplinary identities of engineering
applications to business enterprises
Industrial engineering is an engineering field that focuses on
techno-processual intervention. According to the Institute of
Industrial Engineers in USA, industrial engineering is
“concerned with the design, improvement, and installation of
integrated systems of people, material, equipment, information,
and energy to make a product or provide a service.” It can range
from technically setting work standards, setting up production
lines, introducing new techniques or approaches, developing
processes, designing work, costing products, plant layout, and
quality control. Although it primarily develops technical
methods to build, industrial enginnering is not a thing-centric
engineering such as civil and mechanical, but a peopleoriented engineering which considers the mechanistic
integration of men and machines, including human factors and
ergonomics in workplace design. The emphasis is on designing,
controlling, and optimizing processes in industrial systems and
services using mathematical modeling, computer simulations,
engineering economics analysis, work design, and quality
engineering with a view to improving productivity, raising
product and labor quality, and quantifying risks from a
technological perspective. For example, industrial engineering
suggests intervention to commerce logistics by developing
technologies and systems that support physical logistics
process related to electronic commerce and the Internet.
Business Process Engineering is one of the typical techniques
of industrial engineering as a radical redesign of business
processes to achieve dramatic process improvements in cost,
quality, service, and speed [13].
Engineering management is an engineering field that focuses
on socio-processual intervention concerned with capitalizing
on the applications of engineering principles to support
management responsibilities. It is different from ordinary
management because this field is characterized by both the
applications of engineering principles and the organization of
people, technology, and projects [14]. IEEE Transactions on
Engineering Management endorses that engineering
management [14] is “the discipline addressed to making and
implementing decisions for strategic and operational leadership
in current and emerging technologies and their impacts on
inter-related systems." This field relates to making strategic
decisions with financial analysis tools, making management
recommendations with operations research methods, learning
more about costing and cost analysis, managing engineering
design, planning production activity, and managing quality
programs. The emphasis is on the functioning and the
management of innovative organizations and projects.
Engineering management is also a set of procedures required to
develop and implement various management systems such as
ISO 9000 Quality Management System, ISO 14000
Environment Management System, and ISO 28000 Supply
Chain Security.
Enterprise engineering is an engineering field that focuses on
techno-structural intervention that attempt to engage the
complex architectural determinants of enterprise as a way of
influencing better effectiveness [15 and 16]. An enterprise is a
13367
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
socio-technical system consisting of interdependent resources
of human, information, and technology that often interact with
each other and their environment. According to the Society for
Enterprise Engineering (SEE), enterprise engineering is
defined as "a body of knowledge, principles, and practices
having to do with the analysis, design, implementation, and
operation of the enterprise". Enterprise engineering geared
toward the rapid design and development of complex
organizations to eliminate disconnects between and among
departments and develop the cross-departmental activities that
made up end-to-end business processes that deliver value to
customers. It combines two important methods of
organizational science and information engineering to develop
theories and formal methodologies for the analysis, design, and
implementation of enterprises. Formal methodologis and
techniques such as Computer Integrated Manufacturing Open
Systems Architecture (CIMOSA), Unified Enterprise
Modeling Language (UEML), Enterprise Function Diagrams
(EFD), and Petri Nets have been developed to analyse, design,
and test business solutions [16, 17, 18]. Other approaches to
enterprise engineering include Enterprise Architecture (EA)
employed to analyse, design, plan, and implement information,
process, and technology changes in order to translate business
vision and strategy into effective enterprise [9, 19, 20]. The
various aspects of an enterprise are used to identify, modify,
and visualize required changes based on enterprise architecture
frameworks such as Enterprise Architect, ARIS (Architecture
of Integrated Information Systems), TOGAF (the Open Group
Architecture Framework), Zachman Framework, and Serviceoriented modeling framework (SOMF).
BUSINESS ENGINEERING FOUNDATIONS
Business engineering is an engineering field that focuses on
socio-structural intervention through conceptualization,
modeling, analysis, organization, calculation, and the design of
complex organizations. van Meel and Sol (1996) define
business engineering [21] as “an integral design of
organizational architectures and information systems.”
Business engineering is concerned with the design and
implementation of business solutions that incorporate business
model, business processes, organizational structure,
information systems, and information technology. It assumes
organizations as a structure of socio and cyber actors that
undertake business activities. The importance of social
structure is explored by comparing existing archetypes of
business systems through a methodological application. Sociostructural intervensions include decision right allocation,
policy, administrative structure, rule, and hierarchical
organization. Approaches to business engineering relate to the
usage of business architecture as specific methods to describe,
depict, and improve business performance. The examples of
business architecture frameworks are ARIS (Architecture of
Integrated Information Systems), Business Engineering St.
Gallen, and the Open Group Architecture Framework
(TOGAF).
Business engineering provides methodological supports when
it comes to business transformation induced by information
technology [4 and 23]. Luczak et al. (2003) describe a
methodology that delivers a first approach for the integrated
planning of services and ICTs with systematic development of
electronic business and e-business engineering [24]. These
methodologies use the basic idea of engineering science in
systematic way and called e-business engineering. Janssen et
al. (2003) define e-business engineering should consider the
differences specific to e-business in order to reduce the risk of
project failure and not to forget the lessons learned from
business process engineering [25]. Otto et al. (2015) proposed
digital business engineering as a comprehensive method for
digital business model design [26].
The technical and economical aspects of business
transformations are far more complex to be created intituitively
by individuals. To exploit business potential of IT innovation,
it needs to collaboratively assess and implement technologies,
strategies, processes, and information systems [3]. Business
engineering is a composite discipline that combines
components from general management, technology
management, information systems, and organizational
psychology into a method or model based on engineering
approach to corporate transformation. Business engineering is
the results of applying basic principles of engineering
disciplines into business transformation based on apporiate
methods and models or new company creation that exploits
business potential of IT innovation. Business engineering is the
design discipline for companies of the information age. Its
primary theoretical foundation is method engineering [12].
The introduction of information technology into business has
changed the way company operate their business from manual
into automated process. This change impacts to business
engineering which focuses on combination between business
management and information technology. According to Chao
(2016), e-business engineering has evolved from the
aforementioned areas of business engineering and e-business,
which also involve the study of computer science and
management science [22]. The main goal of business
engineering is to satisfy the demand of client and to make
enterprise profitable using the advantage of new information
and communication technology.
Thomas et al. (2006) describe business engineering as a field
emerged to enrich existing the development of information
system with focus on strategy and process design [27]. In
today’s prespective, this can be understood as the method and
model-based design for business. By using method in business
engineering, businesses were to be redisigned and take
advantage of potentials in information technology from the
bottom up with the help of engineering principles. Thomas et
al. (2006) state that a business process has established as the
organizational object of the design [27]. The business process
design and the analysis with the IT support are important for
13368
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
business engineering. A business process design must follow a
comprehensive approach which encompasses the planning and
control, as well as the management of operational workflows.
Scheer and Nüttgens (2002) states that business processes have
emerged as the focal point of business reengineering [28]. The
Architecture of Information Systems (ARIS) can be used as a
keystone for Business Process Reengineering and Business
Process Management. ARIS-House of business engineering
(HOBE) enhances the ARIS process architecture by addressing
comprehensive business process management, not only from an
organizational, but also from an IT perspective.
The transition to the networked company signifies a massive
innovative leap at the levels of business strategy, process, and
information system. Business engineering [2 and 4] is a method
based approach to transformation. Business engineering has the
goal of incorporating the transition to the networked enterprise
within the business strategy, as well as implementing this
strategy within processes and providing it with information
system supports. den Hengst and de Verde (2004) use
collaborative business engineering approach and simulation
modelling suport to understand the insight of Business Process
Reengineering [8]. The collaborative business engineering
approach aims to understand the key reasons for the failure rate
of Business Process Engineering. Simulation techniques are
used to gain dynamic insight in existing and future business
processes and their quantitative metrics.
BUSINESS ENGINEERING APPROACH
As one of the pioneers in the business engineering approach,
the ARIS concept distinguishes between views and levels of
description. The views of description consists of
organizational, data, functional and control of processes while
the level of description is an interdependent structural part of
views that comprises of process engineering, process planning
and control, workflow control, and application systems [28].
The four levels are interdependently connected to achieve
greatest efficiency possible in terms of business organizational
solutions. ARIS represents business process in diagrammatic
fashion so as to provide unambiguous starting points for the
development of information systems.
Business engineering is viewed as a system and therefore has
structural and behavioral aspects. Semantic Object Model
(SOM), for instance, differentiates three layers of systems: the
strategic business plan, the operational business process models,
as well as the specifications for implementing application [29].
The strategic business plan defines the business system from an
outside perspective in terms of its goals, objectives, and
strategies embedded in a broader socio-cultural context. From
an inside perspective, the business process model implements
the enterprise plan with the resources (organization,
information system, facilities) from specification layers.
Business engineering approach of St. Gallen distinguishes
design level strategies, organization, and information systems
to reduce complexity of the transformation process. With the
goal of transformation, scientific innovation, and business
success, St. Gallen approach to business engineering has been
applied in many consultancy projects and received support
from renowned software tools such as the ARIS. Business
engineering approach in St. Gallen distinguishes three design
levels of enterprise: strategy, process, and system. The strategy
consists of business model comprising the mid-term to longterm development and the positioning on the marketplace,
while the process level and the system levels comprise of
organizational model and information system architecture,
respectively. Two design level areas were defined to
complement the approach. They are cultural and human aspect,
and transformation and control for structuring transformation
of enterprises and coordination among network participants.
Winter (2001) proposes transformation model of enterprise
enabled by IT innovation in which guidance is provided to recreate existing companies [3]. Some of IT Innovation make
significant transformation such as cheap communication
networks, connected smart appliances, growth of
microprocessor, digital convergence of traditional media, and
flexible networking between individuals, organizations, and
digital devices. The business engineering results from applying
basic principles of engineering disciplines to business
transformation based IT innovation. The main components of
transformation include business knowhow, strategic thinking,
business design and change management, and business
architecture. As a discipline, an additional task of business
engineering is to take part in the design of the business focusing
on the business strategy, business process, and information
systems. Business engineering approach is based on a vision of
networked business architectures of the information age, a
model based approach to redesign the organization, and a set of
methods developed in the context of research in information
systems, business administration, and organizational
psychology.
According to Hong Kong Institute of Business Engineers, there
is still lack of recognized professional designation in business
engineering. Unlike other professional disciplines, such as
accounting, finance, law, and engineering, business
engineering has not yet had its professional designations to
embrace its explicit professional frameworks, guidelines, welldefined requirements of capabilities, and effective means of
assessment. To solve the issues of “management
professionalism”, business engineering concept was
established with the offer of providing optimal solutions to risk
monitoring, analyzing, planning, implementing, and
communication. The approach comprises of incorporating
education, learning, and application of theories; learning
assistance; formulation of a set of objective management
standards in components, logics, and mechanism; abolishing
the inconsistency in management theories and practices; and
13369
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
discerning between management “fads” and management’s
core “principles”.
Designing a business architecture function in business
engineering is not an easy task. Most of the prominent business
architecture frameworks lacks of specificity, and is not tailored
to the specific management understanding of the specific
enterprise [30]. The Open Group Architecture Framework
(TOGAF) presents a structure of organizational architectures
that is considered by practitioners as an interesting framework
for architecture management. It offers a holistic approach in
designing, planning, implementing and maintaining
information architectures that cover an important requirement
of business engineering. The enterprise architecture in TOGAF
is modeled into domains of business architecture, information
systems architecture, and technology architecture. The
framework of TOGAF covers some important features such as
modular structures, content frameworks, extended guidance,
and architectural styles.
A complement of TOGAF that is specially designed for
relatively large enterprise, the 3rd gears' Business engineering
system, is designed to be effective and relatively easy to
implement for small to medium-sized businesses due to the
SME specific design of its improvement processes and
software applications. It involves the use of a specialized
software platform that integrates key business structures and
operational performance processes. The 3rd gear system
encapsulates the key areas of strategy, business process,
technology and people. Combined with its ease of use for
business owners and managers, the four principles of the 3rd
gear system (holistic, measurable, duplicable, and permanent)
have made the 3rd gear model popular within the SME market
place.
Business engineering concepts have been taught in many
higher worldwide educational institutions. Most of them open
a course of business engineering in post graduate level with the
unique concept and approach of business engineering. The
examples of the universities include Solvay Brussels School of
Economics and Management and the ICHEC Brussels
Management School (Belgium), the University of St. Gallen
(Switzerland), University of Oulu (Findland), Instituto
Tecnológico Autónomo de México (Mexico), Steinbeis
University (Germany), ESB Business School, Reutlingen
University (Germany), University of Chile, University of the
Pacific (Peru), Escuela Superior de Economia y Negocios
(ESEN) (El Salvador), Ateneo de Naga University
(Philippines), National University of Engineering (Nicaragua),
and Universiti Malaysia Pahang (Malaysia).
In case of handling enterprise challenge with business
engineering, there are four approaches characterized by both
focus of the enterprise and enabler of changes. Many
approaches that had been proposed by academicians and
practitioners can be summarized in Figure 2 to identify business
engineering approaches. All approaches have a similar
tendency in characterizing business engineering in structural
states.
Enabler
Focus
Information
Technology
Enterprise Management
Integration
ARIS
SOM, TOGAF, 3rd Gear BE
Transformation
St. Gallen
Hong Kong BE Institute
Figure 2: Business engineering approaches
BODY OF KNOWLEDGE FRAMEWORK
As a discipline, business engineering has a world view that
guides its development in practice and education. In the
business engineering paradigm, a business is viewed as a
complex system of structures and processes that can be
engineered to leverage business performance. Business
engineering applies engineering principles of problem solving,
analytics, and systematics in transforming a business system.
Most previous research contributing to the body of work
surrounding business engineering takes the position that ITC
(information and communications technology)
has
dramatically altered the role of information in the business.
Information technology has practically enabled the required
coordination among different actors in the business to analyze
and solve business problems from an analytical point of view
[31]. Business organizations often adopt the advancements of
information technology to benefit fully from efficient and
timely information sharing and new ways to produce and
market products and services [32]. Business engineering
development has been driven by the imperative to increase
value-added processes of the entire organization, not just that
of an individual division. The fundamental principles of
business engineering can be recognized from the requirement
of systems integration theory in order to integrate all elements
of the business. Information technology serves as the prime
driving force to create seamless integration of an organization’s
systems with suppliers’ and distributors’ systems with a focus
on serving the needs of end consumers [2, 31, 32].
The increasing adoption of information technology is not only
to revolutionize organizations to create value, but also has
tended to heighten requirements for process improvements and
innovations. Business engineering becomes important to keep
improving business performance by optimizing the efficiency
of integrating value added activities in the provision of a
product or service. It uses tools such as computer simulations
and modeling complemented with social theories and methods
to gain a deep understanding of how a business system can be
changed to be more productive. The domain of business
engineering includes a profound understanding of how strategy
function, how business processes should be designed, how
business activities can be optimally organized, and how
13370
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
business and innovation processes work. Systems analysis can
use applications to find leverage points which are objects
within a business system where a small shift in one thing can
produce big changes in productivity.
Business engineering suggests a structured development
process that proceeds from requirement, conception,
architecture, prototype, and operation. The starting point often
begins with devising strategy, identifying business
requirements, designing operation and information systems to
meet predetermined requirements with the aid of quantitative
methods and models. Leverage points are primarily through the
design of strategy, processes, business organization, and
technology. In the implementation phase, business engineering
is concerned with the development of management control
systems to aid financial planning and cost analysis and the
design of planning and control systems to coordinate activities
and guarantee product or service quality. Furthermore, business
engineering also develops value chain aspects of a business
including procurement system, the physical distribution of
goods and services, and plant locations.
The framework of body of knowledge attempts to be
comprehensive and as inclusive as possible in elaborating both
engineering tasks and leverage points that represent processes,
people and organization, and the networks of organizations.
The St. Gallen approach to business engineering, for instance,
consists of comprises fundamentals and methods for different
kinds of transformation projects. The complexity of the
transformation can be reduced by cascading different design
levels of strategies, organization, and information systems
within the transformation process. The leverage points of
strategy can be identified as capabilities and resources, business
segments, customer access, competitive position, ecosystem,
and revenue and cost structures. Meanwhile, the leverage
points of organization might be in the forms of organization and
operational structures, business processes with accompanying
process performances, procedures, and tasks. Finally, the
leverage points of information system include applications and
technical services, software and data, and IT infrastructure.
This preliminary study proposes that the framework of body of
knowledge can be divided into broad categories to incorporate
engineering assignments and leverage points. Engineering
assignments is spanned from requirement, design, prototype,
testing, operation, and maintenance. The leverage points
include strategy, processes, information, organization and
people, and technology. In addition, engineering assignments
and leverage points are accompanied by activity systems,
monitoring, and controls to ensure quality of deliverables.
DISCUSSION
This paper proposes a stylized classification of engineering
approaches to business enterprise based on objects and
methods. Objects of interest becomes easy to be identified and
clarified in terms of substantial knowledge and requirements.
In the previous research, the engineering objects are often
observed and designed based on the static information which
tends to generate the human error because lack of feedback and
unclear requirements. The classification informs the possibility
of examining smart objects that can be verified and designed in
such a way to allow measurements for data collection, the use
of analytics and computation, and the provision of reporting
system. As a result, the smart object can be analyzed and built
for both structural and processual states which incorporate
analytics, computation, and intelligence.
The nature of business engineering exhibits the uniqueness of
socio-structural approach to business enterprise. Business
engineering suggests a structural analysis of the business and
does not focus on functional management. The structural level
of business engineering describes the architectural aspect on
which the company should analyze and address different design
layers within the company. Most of the current approaches
agree to put the strategic layer consisting of strategic direction
and values at the beginning of business design and analysis.
Strategic layer itself would not bring significant contribution to
the success of business unless excellent business process is
established and controlled by human actors based on accurate
and up to date information.
The necessity of information and its supporting technology is
undeniable in the era of high competition. The infrastructure of
Information technology becomes a foundation that supports all
aspects of business processes and strategic intent. As the
technological changes have influenced business environment in
recent years, information technology (IT) has brought the
greatest impact to business practices. This trend would continue
at least until the end of the first half of the century when other
major technological breakthroughs in the area of business
engineering may provide entirely new ways of doing business
as well as engineering function.
The way businesses manage a change and how successful they
are at it, depends largely on the strategy, business model and
process, technology infrastructure, nature of business, the
change and the people involved. It is also dependent on how
well the organization and people understand the need for the
change and the process involved. Applying change
management activities in business engineering can be
instrumental in realizing goals for planned and unplanned
changes, diagnose problems associated with the transition, and
manage integration of enterprise management layers of
strategic, business process, and technology infrastructure.
Business engineering is a ubiquitous concept in education
sector which used to enhance engineering approach to business.
The Conceive-Design-Implement-Operate (CDIO) approach
can be adopted as a reference for business engineering
education to create more interactive and collaborative learning
environment for students and lecturers [33]. It serves a basis for
the curriculum design process, and together with multimedia
technologies and games it would become future learning trends
in business engineering education. Further works would be
13371
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
beneficial to search for learning tools and learning systems for
different business contexts.
systems. In addition, the laddering technique can be applied to
test the proposed business engineering body of knowledge.
This technique is used to identify means-end chains of sets of
knowledge and tools [34 and 35].
CONCLUSIONS
Engineering approaches to business enterprise is a unique
improvement intervention to solve complex problems and
implement solutions in practical and cost effective ways.
Engineering works from detecting problems, working through
various abstract ideas and concepts, and translating them into
reality to attain specific business objectives. The ambiguity of
different engineering approaches in the ongoing debate can be
resolved as proposed in this research by synthesizing two
dimensions of objects and methods in which the construction
of methods are tuned to specific situations of engineering
objects. It can be described as the creation of a new
configuration to bring together four field of engineering to have
distinct identities. The four engineering fields are industrial
engineering, engineering management, enterprise engineering,
and business engineering.
REFERENCES
[1]
Caron, J., Jarvenpaa, S. and Stoddard, D. (1994).
“Business reengineering at CIGNA Corporation:
Experiences and lessons learned from the first five
years.” MIS Quarterly, 18(3), 233-250.
[2]
Barros, O. (2013). Business Engineering and Service
Design with Applications for Health Care Institutions.
Business Expert Press, New York.
[3]
Winter, R. (2001). “Working for e-Business - The
Business Engineering approach.” International
Journal of Business Studies, 9(1), 101-117.
[4]
Österle, H. (1995). Business in the Information Age:
Heading for New Processes, Berlin, Springer.
[5]
Österle, H. (1996). “Business engineering: Transition
to the networked enterprise.” Electronic Markets,
6(2), 14-16.
[6]
Alt, R., Fleisch, E. and Österle, H. (2000). “Electronic
commerce and supply chain management at ETA
Fabriques d’Ebauches SA.” Journal of Electronic
Commerce Research, 1(2), 67-78.
Business engineering emphasizes the adoption of system
approaches, problem solving techniques to design and
implement effective and productive processes that combine
people, organization structure, and technology. The body of
knowledge framework aims to show engineering assignments
and leverage points in combination with problem solving,
technical skills, and knowledge related to business engineering
that can clearly expose how business engineering designs and
improves technologically oriented services or companies. The
framework of body of knowledge offers a distinct identity used
to maximize benefits of the applications of business
engineering.
[7]
Wæhrens, B.V. and Slepniov, D. (2015). “Value
Chain Engineering. Working Paper”. Aalborg
Universitet, Aalborg, Denmark.
[8]
den Hengst, M. and de Vreede, G. (2004).
“Collaborative business engineering: A decade of
lessons from the field.” Journal of Management
Information Systems, 20(4), 85-113.
[9]
Albani, A., Raber, D. and Winter, R. (2016). “A
conceptual framework for analysing enterprise
engineering methodologies.” Enterprise Modelling
and Information Systems Architectures, 11(1), 1-26.
The main contribution of this paper is the development of a
classification configuration of the four fields of engineering
approches to business enterprises. Two relevant dimensions of
states of change and orientation of methods are used to compare
and highlight distinctive features of the four disciplinary fields.
The paper also identifies preliminary framework of body of
knowledge for business engineering.
[10]
Anderson, D. and Anderson, L.A. (2010). Beyond
Change Management: How to Achieve Breakthrough
Results Through Conscious Change Leadership, 2nd
Edition, Pfeiffer, San Francisco.
[11]
Garvin, D.A. (1998). “The processes of organization
and management.” Sloan Management Review, 39(4),
33-50.
There is some further research around the kernel of business
engineering which needs to be conducted. The future research
includes the verification of the classification configuration to
show detailed features of the four fields, the inclusion of
business models, reference models, tool supports for modeling
and reporting, and consideration of business application
[12]
Brinkkemper, S. (1996). “Method engineering:
Engineering of information systems development
methods and tools.” Journal of Information &
Software Technology, 38(4), 275-280.
[13]
Davenport, T.H. and Short, J.E. (1990). “The new
industrial engineering: information technology and
The proposed configuration can be used to eliminate confusion
in the academic world such as the difference between enterprise
engineering and business engineering that looks similar. By
studying main characteristics of each field, it is able to produce
a general comparison of these four fields of engineering. In
addition, as a distinct disciplinary identity, business
engineering then can be examined to construct a framework of
body of knowledge.
13372
International Journal of Applied Engineering Research ISSN 0973-4562 Volume 12, Number 23 (2017) pp. 13365-13373
© Research India Publications. http://www.ripublication.com
business process redesign.” Sloan Management
Review, 31(4), 11-27.
[14]
Morse, L.C., Babcock, D.L. and Murthy, M. (2014).
Managing Engineering and Technology, 6th Edition,
Pearson, Boston, Massachusetts.
[15]
Barjis, J. (2011). “Enterprise modeling and simulation
within enterprise engineering.” Journal of Enterprise
Transformation, 1(3), 185-207.
[16]
Dietz, J.L.G., Hoogervorst, J.A.P., Albani, A., Aveiro,
D., Babkin, E., Barjis, J., Caetano, A., Huysmans, P.,
Iijima, J., van Kervel, S.J.H., Mulder, H., Op ‘t Land,
M., Proper, H.A., Sanz, J., Terlouw, L., Tribolet, J.,
Verelst, J. and Winter, R. (2013). “The discipline of
enterprise engineering.” International Journal of
Organisational Design and Engineering, 3(1), 86-114.
[17]
de Vries, M., Gerber, A. and van der Merwe, A.
(2014). “The nature of the enterprise engineering
discipline.” Aveiro. D., Tribolet, J. & Gouveia, D.
(Eds.). Advances in Enterprise Engineering VIII.
Springer, New York, 1-15.
[18]
Liu, Y. and Iijima, J. (2015). “Business process
simulation in the context of enterprise engineering.”
Journal of Simulation, 9(3), 206-222.
[19]
Winter, R. and Fischer, R. (2007). “Essential layers,
artifacts, and dependencies of enterprise architecture.”
Journal of Enterprise Architecture, 3(2), 7-18.
[20]
Lapalme, J. (2012). “Three schools of thought on
enterprise architecture.” IT Pro, 37-43.
[21]
van Meel, J. and Sol, H. (1996). “Business
Engineering: Dynamic modeling instruments for a
dynamic world.” Simulation & Gaming, 27(4), 440461.
[22]
[23]
[24]
[25]
Chao, K.-M. (2016). “E-services in e-business
engineering.” Electronic Commerce Research and
Applications, 16, 77-81.
Otto, B., Lee, Y.W. and Caballero, I. (2011).
“Information and data quality in business networking:
A key concept for enterprises in its early stages of
development.” Electron Markets, 21, 83-97.
Luczak, H., Bleck, S. and Quadt, A. (2003).
“Electronic business engineering – exploiting the
potentials of a wireless world.” International Journal
of Internet and Enterprise Management, 1(1), 31-52.
Janssen, W., Steen, M.W.A. and Franken, H. (2003).
“Business process engineering versus e-business
engineering: A summary of case experiences.”
Proceedings of the 36th Hawaii International
Conference on System Sciences, January 6-9, Hawaii,
USA.
13373
[26]
Otto, B., Bärenfänger, R. and Steinbuß, S. (2015).
“Digital business engineering: Methodological
foundations and first experiences from the field.”
Conference Proceeedings of 28th Bled eConference,
Bled, Slovenia, June 7-10, 58-76.
[27]
Thomas, O., Horiuchi, M. and Tanaka, M. (2006).
“Towards a reference model management system for
business engineering.” Proceedings of the 2006 ACM
Symposium on Applied Computing (SAC), Dijon,
France, April 23-27.
[28]
Scheer, A.-W. and Nüttgens, M. (2002). “ARIS
architecture and reference models for business process
management.” van der Aalst, W., Desel, J. &
Oberweis, A. (Eds.). Business Process Management,
376-389.
[29]
Flender, C. and Hettel, T. (2008). “Semi-automated
Model Synchronization in SOM.” Proceeding of the
20th International Conference on Advanced
Information System Engineering, June 16-20,
Montpellier, France.
[30]
Buckl, S., Dierl, T., Matthes, F., Ramacher, R. and
Schweda, C.M. (2008). “Current and future tool
support for enterprise architecture management.”
SOA and IT-Management (MSI 2008), U. Steffens, J.
Addicks, and N. Streekmann, Eds. GITO-Verlag,
Berlin.
[31]
Fitzgerald, M., Kruschwitz, N., Bonnet, D. and
Welch, M. (2014). “Embracing digital technology: A
new strategic imperative.” MIT Sloan Management
Review, 55(2), 1-12.
[32]
Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and
Venkatraman, N. (2013). “Digital business strategy:
Toward a next generation of insights.” MIS Quarterly,
37(2), 471-482.
[33]
Crawley, E.F., Malmqvist, J., Östlund, S., Brodeur,
D.R and Edström, K. (2014). Rethinking Engineering
Education: The CDIO Approach, 2nd Edition,
Springer, New York.
[34]
Reynolds, T.J. and Gutman, J. (1988). “Laddering
theory, method, analysis, and interpretation.” Journal
of Advertising Research, 28(1), 11-31.
[35]
Hsieh, M.–H., Huang, C.–Y., Luh, D.–B., Liu, S.–F.
and Ma, C.–H. (2013). “An application of
implementing a cognitive structure model to obtain
consensus from consumers.” International Journal of
Design, 7(2), 53-65.