**12. Management transactions of Knowledge-Based Enterprise**

The semantics of structural components of the Knowledge-Based Enterprise management framework are further described in detail (Gudas, Brundzaite, 2007), (Gudas, 2008), (Gudas, 2009), (Gudas, 2009a), (Gudas, 2010).

Business process management cycle (*EMCz4*). The component *BP Knowledge Management (K4)* is aimed to complement knowledge of the component *Business process* (BP) required by the *Management functions* (F) for management and control of the *Process* (P) on the level 6. "*Manufacturing Process management*"(see Fig. 22). This knowledge management transaction in the KBE framework is named *EMCz4* – Business Process Management Cycle. Business process management cycle (*EMCz4*) is presented in Fig. 23.

The work flow and semantics of Business Process Management Cycle *EMCz4* is as follows*.*  The purpose of Business process management cycle (EMCz4) is the development (generation) of a particular knowledge to control an enterprise component *Business process*  (BP). The component BP is comprised of a set of *Management functions* (F) and *Process* (P). The component BP is at *Business domain* (B), it is outside of the *Knowledge management domain* (K).

The semantics of steps of the *Business process management cycle* (EMCz4) (Fig. 27) are as follows: IN4 – interpretation of some facts (characteristics) related with the controlled object – an activity BP; IP4 – processing of interpreted information (data, knowledge) and decision making (it is aimed to control an activity BP); RE4 – realization of decision (management control making, including transferring of manipulated variables (a particular decision) and influencing a controlled object – the component "Business process (BP)".

The constraints on the Business process management cycle (EMCz4) are output of the component K3 (Enterprise knowledge management) and input of the interface S4 from Knowledge base (KB).

The activity IN4 performs an interpretation of the actual knowledge about the features (state) of the Business process (BP). Characteristics (data and knowledge about a state) of Management Functions (F) and Process (P) are captured, transferred and conceptualized, using some criterions from the Enterprise Knowledge Base (EKB). This captured actual semantics of the Business process (BP) is an input of the component BP knowledge management functions (K4). The activity IN4 comprises of a set of rules and procedures for transformation of the actual data and knowledge about a state of Business process (BP).

The step IP4 is knowledge processing activity, aimed to define a set of manipulated variables – decision to control Business process (BP). The activity IP4 is a system of data and knowledge manipulation procedures focused for alignment of the content of component Business process (BP) (i.e. IP4 modify a list and logic of management functions F) in accordance with requirements of the higher level component K3 (these requirements are the

Summing up, four management transactions (formally described as *EMC*), which have

The semantics of structural components of these Enterprise Management Cycles further are

The semantics of structural components of the Knowledge-Based Enterprise management framework are further described in detail (Gudas, Brundzaite, 2007), (Gudas, 2008), (Gudas,

Business process management cycle (*EMCz4*). The component *BP Knowledge Management (K4)* is aimed to complement knowledge of the component *Business process* (BP) required by the *Management functions* (F) for management and control of the *Process* (P) on the level 6. "*Manufacturing Process management*"(see Fig. 22). This knowledge management transaction in the KBE framework is named *EMCz4* – Business Process Management Cycle. Business

The work flow and semantics of Business Process Management Cycle *EMCz4* is as follows*.*  The purpose of Business process management cycle (EMCz4) is the development (generation) of a particular knowledge to control an enterprise component *Business process*  (BP). The component BP is comprised of a set of *Management functions* (F) and *Process* (P). The component BP is at *Business domain* (B), it is outside of the *Knowledge management* 

The semantics of steps of the *Business process management cycle* (EMCz4) (Fig. 27) are as follows: IN4 – interpretation of some facts (characteristics) related with the controlled object – an activity BP; IP4 – processing of interpreted information (data, knowledge) and decision making (it is aimed to control an activity BP); RE4 – realization of decision (management control making, including transferring of manipulated variables (a particular decision) and

The constraints on the Business process management cycle (EMCz4) are output of the component K3 (Enterprise knowledge management) and input of the interface S4 from

The activity IN4 performs an interpretation of the actual knowledge about the features (state) of the Business process (BP). Characteristics (data and knowledge about a state) of Management Functions (F) and Process (P) are captured, transferred and conceptualized, using some criterions from the Enterprise Knowledge Base (EKB). This captured actual semantics of the Business process (BP) is an input of the component BP knowledge management functions (K4). The activity IN4 comprises of a set of rules and procedures for transformation of the actual data and knowledge about a state of Business process (BP). The step IP4 is knowledge processing activity, aimed to define a set of manipulated variables – decision to control Business process (BP). The activity IP4 is a system of data and knowledge manipulation procedures focused for alignment of the content of component Business process (BP) (i.e. IP4 modify a list and logic of management functions F) in accordance with requirements of the higher level component K3 (these requirements are the

influencing a controlled object – the component "Business process (BP)".

different semantics, are identified (Fig. 26):

2009), (Gudas, 2009a), (Gudas, 2010).

described in detail.

*domain* (K).

Knowledge base (KB).

*EMCz4* – Business Process Management Cycle.

process management cycle (*EMCz4*) is presented in Fig. 23.

 *EMCz1* – Enterprise Meta-Knowledge Management Cycle; *EMCz2* – Enterprise Knowledge Management Cycle; *EMCz3* – Business Process Knowledge Management Cycle;

**12. Management transactions of Knowledge-Based Enterprise** 

output of the step RE3 of the higher level management EMCz3) and actual knowledge accessed by interface S4 from the Enterprise knowledge base.

Fig. 23. Business process management cycle (EMCz4)

The step RE4 is the co-ordination activity, the feedback from higher level knowledge management component K4 to business process management level 5. The RE4 is aimed to transfer manipulated variables (decision) and to influence the component Business process (BP), namely to modify Management functions (F).

Business Process Knowledge Management Cycle (*EMCz3)*. The Business Process Knowledge Management Cycle (the management control EMCz3 in Fig. 22) is *knowledge adaptation cycle* (Fig. 28) aimed to integrate the component "BP knowledge management" (K4) with the actual content of the component "Enterprise Knowledge Base" (KB).

The Enterprise knowledge management cycle EMCz3 is aimed to development (generation) of particular new knowledge for business process management functions, which are depicted as the component K4 ("Business process management") in Fig. 26.

The semantics of steps of the Business process knowledge management cycle (EMCz3) are as follows (Fig. 24): IN3 – interpretation of facts (characteristics) related with the controlled object – an activity of the component K4, IP3 – processing of interpreted information (data, knowledge) and decision making (aimed to control the component K4), RE3 – realization of decision (making management control, including transferring of manipulated variables (a particular decision) and influencing a controlled object – the component K4. The constraints on the Business process knowledge management cycle (EMCz3) are output of the component K2 (Knowledge base management) and input of the interface S3 from Knowledge base (KB).

The activity IN3 performs an interpretation of the actual knowledge about the features (state) of BP knowledge management functions (F4). The step IN3 comprises of a set of interpretation rules and procedures for transformation of the actual data and knowledge about a state BP knowledge management functions (F4) for the integration with the step IP3. These transformations are aimed to fit the requirements of the IP3 – the next step of the enterprise knowledge management cycle EMCz3.

The step IP3 – knowledge processing activity, aimed to form a set of manipulated variables – decision to implement new features of the BP knowledge management functions. The IP3 is a system of data and knowledge manipulation procedures focused for modification of the content of component K4 with the requirements of the higher level component K2 (these

Knowledge-Based Enterprise Framework: A Management Control View 209

knowledge required to adapt a set of Enterprise knowledge Management functions to the

The semantics of steps of the Enterprise knowledge management cycle (EMCz2) are as follows (see Fig. 25): IN2 – interpretation of facts (characteristics) related with the controlled object – an activity of the component K3; IP2 – processing of interpreted information (data, knowledge) and decision making (aimed to control an activity of the component K3); RE2 – the step of realization (implementation) of decision aimed to influence a controlled object

The constraints on the Enterprise knowledge management cycle (EMCz2) are output of the component K1 ("Business and IT strategic alignment") and input of the interface S2 of

The activity IN2 performs an interpretation of the actual knowledge about the features (state) of Enterprise knowledge management functions (F3). The step IN2 comprises of a set of interpretation rules and procedures for transformation the actual data and knowledge about a state of Enterprise knowledge management functions (F3) for the integration with the step IP2. These transformations are aimed to fit the requirements of the IP2 – the next

The step IP2 – knowledge processing activity, aimed to form a set of manipulated variables – decision to modify the component Enterprise knowledge management (K3). The IP2 is a system of knowledge manipulation procedures focused for alignment of the content of component K3 with the requirements of the higher level component K1 (these requirements are the output the step RE1 of the higher level management EMCz1) and actual knowledge

The step RE2 is the co-ordination activity, the feedback from higher level component Knowledge base management (K2) to the component Enterprise knowledge management (K3). The step RE2 is aimed to transfer manipulated variables (decision) and to influence the component K3, namely to modify Enterprise knowledge management functions (F3)

new requirements of the Knowledge Base meta-model.

step of the enterprise knowledge management cycle EMCz2.

Fig. 25. The Enterprise knowledge management cycle (EMCz2)

accessed by interface S2 from the Enterprise Knowledge Base.

Enterprise Meta-Knowledge Management Cycle (*EMCz1)* 

(Gudas, 2009).

Enterprise management – the component K3.

Enterprise Knowledge base (KB).

requirements are the output the step RE2 of the higher level management EMCz2) and actual knowledge accessed by interface S3 from the Enterprise knowledge base.

Fig. 24. The Business process knowledge management cycle (EMCz3)

The step RE3 – the co-ordination activity, the feedback from higher level Knowledge management component K3 to Business process knowledge management functions (K4). The step RE3 is aimed to transfer manipulated variables (decision) and to influence the component K4, namely to modify Business process knowledge management functions (F4). Enterprise Knowledge Management Cycle (EMCz2.)

The component *K3 "Enterprise Knowledge Management" (*KM level 3 *- Enterprise Knowledge Management Level*) is aimed to complement knowledge of the component *K4 "BP Knowledge Management" by* required knowledge, stored in Enterprise Knowledge base (KB) using interface *S3*. The component *K3* is related with the next knowledge management level 4 by feedback loop *EMCz3* (related with component K4).

The component *Enterprise Knowledge Management (*K3) is interrelated with other knowledge management system components as follows:


The Enterprise Knowledge Management Cycle (the management control EMCz2 in Fig. 22) is a *higher level knowledge adaptation cycle* aimed to modify the component "Enterprise knowledge management" (K3) of Knowledge management (K) domain. The Enterprise knowledge management cycle EMCz2 is aimed to development (generation) of definite

requirements are the output the step RE2 of the higher level management EMCz2) and

The step RE3 – the co-ordination activity, the feedback from higher level Knowledge management component K3 to Business process knowledge management functions (K4). The step RE3 is aimed to transfer manipulated variables (decision) and to influence the component K4, namely to modify Business process knowledge management functions (F4).

The component *K3 "Enterprise Knowledge Management" (*KM level 3 *- Enterprise Knowledge Management Level*) is aimed to complement knowledge of the component *K4 "BP Knowledge Management" by* required knowledge, stored in Enterprise Knowledge base (KB) using interface *S3*. The component *K3* is related with the next knowledge management level 4 by

The component *Enterprise Knowledge Management (*K3) is interrelated with other knowledge





The Enterprise Knowledge Management Cycle (the management control EMCz2 in Fig. 22) is a *higher level knowledge adaptation cycle* aimed to modify the component "Enterprise knowledge management" (K3) of Knowledge management (K) domain. The Enterprise knowledge management cycle EMCz2 is aimed to development (generation) of definite

actual knowledge accessed by interface S3 from the Enterprise knowledge base.

Fig. 24. The Business process knowledge management cycle (EMCz3)

Enterprise Knowledge Management Cycle (EMCz2.)

feedback loop *EMCz3* (related with component K4).

management system components as follows:

Enterprise Knowledge base (KB);

Enterprise Knowledge Base (EKB).

S2);

interface S3);

knowledge required to adapt a set of Enterprise knowledge Management functions to the new requirements of the Knowledge Base meta-model.

The semantics of steps of the Enterprise knowledge management cycle (EMCz2) are as follows (see Fig. 25): IN2 – interpretation of facts (characteristics) related with the controlled object – an activity of the component K3; IP2 – processing of interpreted information (data, knowledge) and decision making (aimed to control an activity of the component K3); RE2 – the step of realization (implementation) of decision aimed to influence a controlled object Enterprise management – the component K3.

The constraints on the Enterprise knowledge management cycle (EMCz2) are output of the component K1 ("Business and IT strategic alignment") and input of the interface S2 of Enterprise Knowledge base (KB).

The activity IN2 performs an interpretation of the actual knowledge about the features (state) of Enterprise knowledge management functions (F3). The step IN2 comprises of a set of interpretation rules and procedures for transformation the actual data and knowledge about a state of Enterprise knowledge management functions (F3) for the integration with the step IP2. These transformations are aimed to fit the requirements of the IP2 – the next step of the enterprise knowledge management cycle EMCz2.

Fig. 25. The Enterprise knowledge management cycle (EMCz2)

The step IP2 – knowledge processing activity, aimed to form a set of manipulated variables – decision to modify the component Enterprise knowledge management (K3). The IP2 is a system of knowledge manipulation procedures focused for alignment of the content of component K3 with the requirements of the higher level component K1 (these requirements are the output the step RE1 of the higher level management EMCz1) and actual knowledge accessed by interface S2 from the Enterprise Knowledge Base.

The step RE2 is the co-ordination activity, the feedback from higher level component Knowledge base management (K2) to the component Enterprise knowledge management (K3). The step RE2 is aimed to transfer manipulated variables (decision) and to influence the component K3, namely to modify Enterprise knowledge management functions (F3) (Gudas, 2009).

Enterprise Meta-Knowledge Management Cycle (*EMCz1)* 

Knowledge-Based Enterprise Framework: A Management Control View 211

The step IN1 comprises of a set of interpretation rules and procedures for transformation of the actual data and knowledge about a state enterprise knowledge base management functions (F2) for the integration with the step IP1. These transformations are aimed to fit the requirements of the IP1 – the next step of the enterprise knowledge management cycle

The step IP1 – a meta-knowledge processing activity, aimed to form a set of manipulated variables – decision to control the component Knowledge base management (K2). The IP1 is a system of knowledge manipulation procedures focused for alignment of the content of component K2 with the requirements of the actual knowledge accessed by interface S1 from

The step RE1 – the co-ordination activity, it is the feedback from higher level component Business and IT alignment (K1) to the component Enterprise knowledge base management (K3). The step RE1 is aimed to transfer manipulated variables (a strategic decision) and to influence the component K2, namely to modify Enterprise knowledge base meta-model and

Knowledge management *Use Cases* and interfaces. The major knowledge management *Use Cases* and interfaces at the Enterprise knowledge management (K) domain are depicted at the *Use Case diagram* (UML) in Fig. 31. There are four types of *Actors* associated with particular level of the enterprise Knowledge management (K) domain: a top manager (a chief executive), a Knowledge base administrator, an enterprise management expert, and a

The enterprise knowledge self-organization activity is a responsibility of a chief executive. It includes interfaces with use cases Strategic knowledge management functions (F1) and

Responsibilities of a knowledge base administrator includes interfaces for administration of use cases Strategic knowledge management functions (F1), Knowledge base management functions (F2), "enterprise knowledge management functions (F3), and BP knowledge

The responsibilities of an enterprise management expert are focused on the development of a definite new knowledge and requirements for improvement of BP management functions (using interfaces with use cases Enterprise knowledge management functions (F3), BP knowledge management functions (F4), and Knowledge base management

The BP managers access definite knowledge aimed to perform BP management and BP management control (using interfaces with the use case BP management functions (F)), and use interface with BP knowledge management functions (F4) to access definite knowledge

The major Classes of Enterprise Knowledge base. Enterprise knowledge modelling method could be used for construction of the integrated enterprise knowledge base, which is considered as the basic component of the knowledge-based enterprise. Enterprise knowledge base will enable transformation of the enterprise into knowledge-based business as well as to solve business and IT alignment and enterprise IT management problems. The major classes of the enterprise knowledge base are derived from formal description of

Enterprise Knowledge Space and are defined as Enterprise Knowledge Model *M*.

EMCz1.

the Enterprise Strategic Goals' Base.

knowledge base management functions (F2).

**13. Components of knowledge management system** 

business process manager (Gudas, Brundzaite, 2007).

Knowledge base management functions (F2).

for modification of BP management functions.

management functions (F4).

functions (F2)).

Enterprise management as well as knowledge management is driven by organizational goals and objectives. At the highest level of knowledge management of the KBE framework *(Enterprise Strategic Management Level)* the component *Business/IT Strategic Alignment* (*K1*) defines strategic requirements for the Enterprise Knowledge Base management component (K2) and controls it by the feedback loop *EMCz1*.

The EMCz1 is *Enterprise meta-knowledge management cycle*, focused on the alignment of the enterprise knowledge base content (i.e. enterprise meta-knowledge model) and business/ IT strategic goals (Gudas, Brundzaite, 2007).

The management control EMCz1 is the t*op level knowledge management activity* focused on the requirements for the scope and content of Enterprise knowledge base (meta-knowledge). The component Knowledge base management (K2) is responsible for the meta-knowledge management (at level 2 of Knowledge management domain.).

The purpose of Enterprise meta-knowledge management cycle EMCz1 is development (generation) of a definite knowledge to modify the enterprise component Knowledge base management (K2) which is comprised of a set of Enterprise knowledge base management functions (F2).

The semantics of steps of the Enterprise meta-knowledge management cycle (EMCz1) are as follows (Fig. 26):

IN1 – interpretation of facts (characteristics) related with the controlled object – an activity of the component K2;

IP1 – processing of interpreted information (data, knowledge) and decision making (aimed to change the knowledge base meta-structure);

RE1 – realization of decision (a strategic decision) aimed to influence a controlled object – the component K2.

The constraints on the Enterprise meta-knowledge management cycle (EMCz1) are input of the interface S1 from the knowledge base *Strategic Goals*.

The activity IN1 performs an interpretation of the actual knowledge about the features (state) of enterprise knowledge base management functions (F2).

Fig. 26. Enterprise meta-knowledge management cycle (EMCz1)

Enterprise management as well as knowledge management is driven by organizational goals and objectives. At the highest level of knowledge management of the KBE framework *(Enterprise Strategic Management Level)* the component *Business/IT Strategic Alignment* (*K1*) defines strategic requirements for the Enterprise Knowledge Base management component

The EMCz1 is *Enterprise meta-knowledge management cycle*, focused on the alignment of the enterprise knowledge base content (i.e. enterprise meta-knowledge model) and business/ IT

The management control EMCz1 is the t*op level knowledge management activity* focused on the requirements for the scope and content of Enterprise knowledge base (meta-knowledge). The component Knowledge base management (K2) is responsible for the meta-knowledge

The purpose of Enterprise meta-knowledge management cycle EMCz1 is development (generation) of a definite knowledge to modify the enterprise component Knowledge base management (K2) which is comprised of a set of Enterprise knowledge base management

The semantics of steps of the Enterprise meta-knowledge management cycle (EMCz1) are as

IN1 – interpretation of facts (characteristics) related with the controlled object – an activity

IP1 – processing of interpreted information (data, knowledge) and decision making (aimed

RE1 – realization of decision (a strategic decision) aimed to influence a controlled object –

The constraints on the Enterprise meta-knowledge management cycle (EMCz1) are input of

The activity IN1 performs an interpretation of the actual knowledge about the features

**Knowledge Base meta-model management functions (F1)** */Enterprise strategic management, level 1/*

> **Information (metaknowledge) processing (IP1)**

> > **S1**

**Knowledge S1 base of strategic goals**

**Enterprise knowledge base management functions (K2)** /*Enterprise metaknowledge management, level 2/*

**Interpretation of characteristics of enterprise knowledge base management functions (IN1)**

(K2) and controls it by the feedback loop *EMCz1*.

management (at level 2 of Knowledge management domain.).

strategic goals (Gudas, Brundzaite, 2007).

to change the knowledge base meta-structure);

the interface S1 from the knowledge base *Strategic Goals*.

**Realization of decisions to modify knowledge base management functions (RE1)**

(state) of enterprise knowledge base management functions (F2).

**S1**

Fig. 26. Enterprise meta-knowledge management cycle (EMCz1)

functions (F2).

follows (Fig. 26):

of the component K2;

the component K2.

The step IN1 comprises of a set of interpretation rules and procedures for transformation of the actual data and knowledge about a state enterprise knowledge base management functions (F2) for the integration with the step IP1. These transformations are aimed to fit the requirements of the IP1 – the next step of the enterprise knowledge management cycle EMCz1.

The step IP1 – a meta-knowledge processing activity, aimed to form a set of manipulated variables – decision to control the component Knowledge base management (K2). The IP1 is a system of knowledge manipulation procedures focused for alignment of the content of component K2 with the requirements of the actual knowledge accessed by interface S1 from the Enterprise Strategic Goals' Base.

The step RE1 – the co-ordination activity, it is the feedback from higher level component Business and IT alignment (K1) to the component Enterprise knowledge base management (K3). The step RE1 is aimed to transfer manipulated variables (a strategic decision) and to influence the component K2, namely to modify Enterprise knowledge base meta-model and knowledge base management functions (F2).
