**5. Knowledge-based enterprise structure**

The scope and structure of the organizational knowledge in the knowledge management literature is investigated. This structure has the name of *organizational memory* or *corporate* 

Knowledge-Based Enterprise Framework: A Management Control View 191

The peculiarity of the abstraction, presented in Fig. 11 is that it clearly separates the Knowledge domain and Data domain, in contrast to other conceptual enterprise models

Knowledge-Based Enterprise uses knowledge as a key strategic resource, as it was said before (see also Fig. 11). It became evident that the *organizational knowledge (non-digital knowledge)* is human knowledge used (and hidden in the Fig. 11) in the *business* and *IT* 

Meanwhile, *enterprise knowledge* (virtual, digital knowledge stored in the Enterprise KB) is an obligatory component of Knowledge-Based Enterprise, integrated with all enterprise domains. Accordingly, three tiers Knowledge-Based Enterprise Architecture (in the Fig.12), it includes Enterprise KB as key component, integrated with knowledge management

The Knowledge-Based Enterprise Architecture co-relates with the A Multi-Layer Architecture for Knowledge Management Systems (*Strategy; Organization; Information* 

(e.g. presented in (Iyer, Gottlieb, 2004)).

Fig. 11. Knowledge-Based Enterprise structure

*domains* as integral components of any enterprise.

Fig. 12. Knowledge-based Enterprise Architecture

*System)* presented by Ulrich Frank (Ulrich, 2002).

systems **(**Gudas, Brundzaite, 2007a).

*memory.* The organizational memory is concerned with the organizational learning processes. Organizational memory comprises all the possible forms of organizational knowledge: tacit, explicit, computerized, not-computerized, etc (Zack, 2003).

There are a lot of possible facets for characterising knowledge (Zack, 2003), although it is important in this situation to analyse knowledge in the sense of its "objective" and "subjective" characteristics. According to J.M. Firestone (Firestone, 1999), there are two kinds of knowledge:


Business-IT alignment is a continuous decision making process and it should be supported with reliable information and knowledge. As it was noted in the beginning of the article, enterprise knowledge basd is intended to be used as the source of knowledge about the problem domain (i.e.) also for IS engineering tasks in the IS requirements' development stage. Resuming it should be stated that enterprise knowledge base is shared and it stores the enterprise knowledge (*digital knowledge*) in the form of validated Enterprise Knowledge Models. According to the Knowledge-Based Modeling (internal modeling) paradigm enterprise knowledge models have to be validated according to the formal model of enterprise management&control thus ensuring reliability of the acquired knowledge about problem domain.

Besides, it is suggested, that Knowledge-Based Enterprise uses Enterprise Knowledge Base (KB) together with explicitly modelled knowledge management activity as obligatory enterprise management component.

The concept of the Knowledge-Based Enterprise is illustrated further by using **Strategic Alignment Model (SAM)** (Henderson, Venkatraman, 1990)**.** Therefore, Strategic Alignment Model is complemented by one more additional structural element – Enterprise *Knowledge Base* (see Fig. 11), which supports enterprise knowledge management activities and allows continuous cross-domain alignment process and also helps to eliminate knowledge flow bottleneck across enterprise.

Consequently, *Knowledge-Based Enterprise* here is defined by enhancing the Knowledge-Centric Enterprise (as defined above) with Enterprise knowledge repository. The *Knowledge-Based Enterprise* uses *Enterprise Knowledge Base* as obligatory enterprise management, as well as information system development component.

In Fig. 11 the structural element *Enterprise Goal's Base* is abstracted, which could be as the part of the Enterprise knowledge base too.

Contemporary enterprise modelling methods are conceptual methods in the sense how the models are created and what knowledge they represent; they allow to acquire empirical knowledge about the problem domain (i.e. enterprise), which can be hardly validated. *Enterprise Knowledge Base* (EKB) here is considered as the computerised Enterprise Knowledge Model, which consist of integrated set of enterprise knowledge sub-models and is validated against the formalized enterprise knowledge model. Thus, EKB is the reliable knowledge source for a support of business management decision making, business and IT alignment, as well as for support of knowledge management and information systems development processes.

*memory.* The organizational memory is concerned with the organizational learning processes. Organizational memory comprises all the possible forms of organizational

There are a lot of possible facets for characterising knowledge (Zack, 2003), although it is important in this situation to analyse knowledge in the sense of its "objective" and "subjective" characteristics. According to J.M. Firestone (Firestone, 1999), there are two

1. "Knowledge viewed as belief… Such knowledge is "subjective" in the sense that it is agent-specific, whether the agent is an individual, group, team, or organization". 2. "Knowledge viewed as validated models, theories, arguments, descriptions, problem statements etc. This kind of knowledge, further, is "objective." It is objective in the sense that it is not agent specific and is shared among agents. Finally, it is objective because, since it is sharable, we can sensibly talk about community validation of this kind of

Business-IT alignment is a continuous decision making process and it should be supported with reliable information and knowledge. As it was noted in the beginning of the article, enterprise knowledge basd is intended to be used as the source of knowledge about the problem domain (i.e.) also for IS engineering tasks in the IS requirements' development stage. Resuming it should be stated that enterprise knowledge base is shared and it stores the enterprise knowledge (*digital knowledge*) in the form of validated Enterprise Knowledge Models. According to the Knowledge-Based Modeling (internal modeling) paradigm enterprise knowledge models have to be validated according to the formal model of enterprise management&control thus ensuring reliability of the acquired knowledge about

Besides, it is suggested, that Knowledge-Based Enterprise uses Enterprise Knowledge Base (KB) together with explicitly modelled knowledge management activity as obligatory

The concept of the Knowledge-Based Enterprise is illustrated further by using **Strategic Alignment Model (SAM)** (Henderson, Venkatraman, 1990)**.** Therefore, Strategic Alignment Model is complemented by one more additional structural element – Enterprise *Knowledge Base* (see Fig. 11), which supports enterprise knowledge management activities and allows continuous cross-domain alignment process and also helps to eliminate knowledge flow

Consequently, *Knowledge-Based Enterprise* here is defined by enhancing the Knowledge-Centric Enterprise (as defined above) with Enterprise knowledge repository. The *Knowledge-Based Enterprise* uses *Enterprise Knowledge Base* as obligatory enterprise management, as well

In Fig. 11 the structural element *Enterprise Goal's Base* is abstracted, which could be as the

Contemporary enterprise modelling methods are conceptual methods in the sense how the models are created and what knowledge they represent; they allow to acquire empirical knowledge about the problem domain (i.e. enterprise), which can be hardly validated. *Enterprise Knowledge Base* (EKB) here is considered as the computerised Enterprise Knowledge Model, which consist of integrated set of enterprise knowledge sub-models and is validated against the formalized enterprise knowledge model. Thus, EKB is the reliable knowledge source for a support of business management decision making, business and IT alignment, as well as for support of knowledge management and information systems

knowledge: tacit, explicit, computerized, not-computerized, etc (Zack, 2003).

kinds of knowledge:

knowledge."

problem domain.

enterprise management component.

as information system development component.

part of the Enterprise knowledge base too.

bottleneck across enterprise.

development processes.

The peculiarity of the abstraction, presented in Fig. 11 is that it clearly separates the Knowledge domain and Data domain, in contrast to other conceptual enterprise models (e.g. presented in (Iyer, Gottlieb, 2004)).

Fig. 11. Knowledge-Based Enterprise structure

Knowledge-Based Enterprise uses knowledge as a key strategic resource, as it was said before (see also Fig. 11). It became evident that the *organizational knowledge (non-digital knowledge)* is human knowledge used (and hidden in the Fig. 11) in the *business* and *IT domains* as integral components of any enterprise.

Meanwhile, *enterprise knowledge* (virtual, digital knowledge stored in the Enterprise KB) is an obligatory component of Knowledge-Based Enterprise, integrated with all enterprise domains. Accordingly, three tiers Knowledge-Based Enterprise Architecture (in the Fig.12), it includes Enterprise KB as key component, integrated with knowledge management systems **(**Gudas, Brundzaite, 2007a).

Fig. 12. Knowledge-based Enterprise Architecture

The Knowledge-Based Enterprise Architecture co-relates with the A Multi-Layer Architecture for Knowledge Management Systems (*Strategy; Organization; Information System)* presented by Ulrich Frank (Ulrich, 2002).

Knowledge-Based Enterprise Framework: A Management Control View 193

The investigations in knowledge management area are closely related with developments in the area of enterprise architecture (EA) frameworks (J.Schekkerman, 2003), enterprise modelling (EM) frameworks (Zachman, Sowa, 1992); (Maes et al., 2000); (Ulrich, 2002) and

B. Iyer, R. Gottlieb decomposition of enterprise architecture (Iyer, Gottlieb, 2004) identifies four domains: business process domain, information/knowledge domain, infrastructure

Enterprise modelling (EM) and Enterprise architecture (EA) frameworks underlies our theoretical findings. In the contemporary EM and EA methods the three basic aspects of the enterprise knowledge *business strategy; business; information systems and technologies)* are separated, and used to construct layered architecture. The analysis of the EM methods is

The Value Chain model comes from M. Porter's book (Porter, 1985). A Value Chain is a high level business model, a model that breaks down an organization into a series of valuegenerating activities. Two major interacting parts of VCM are *Support Activities* and *Primary* 

The analysis of the Enterprise modelling from *the management (control) point of view* gives




some new aspects for the Enterprise modelling itself (Gudas et al., 2005):

decision-making activities in the Organizational System (Enterprise).

languages (Vernadat, 2002).

domain and organization domain.

presented in (Gudas, Brundzaite, 2006).

**7. Structured value chain model** 

Fig. 13. The structured Value Chain Model (SVCM)

engineering methods;

interactions.

*Activities* (Porter, 1985).
