**8. Enterprise knowledge component**

Enterprise domains and aspects of the enterprise knowledge identified in the various Enterprise Modeling (EM) and Enterprise Architecture (EA) methodologies and frameworks (Table 1) reflect the semantics of the concept "enterprise knowledge component" (Gudas, Brundzaite, 2006).

Summarizing the above given overview of enterprise modelling domains and aspects (Table 1), we make a premise, that there are three integrated aspects of the Enterprise management activities modeling (Henderson, Venkatraman, 1990):


Performance of all these Enterprise management activities require adequate diverse knowledge, namely, first type of knowledge is knowledge about business processes (*B*), second type - knowledge about information technologies (*T*) and, finally, knowledge about enterprise management (*K*) (Gudas, Brundzaite, 2006).

So, the key enterprise management activities are supported by the differing types of interrelated knowledge, depicted as *enterprise knowledge component* in Fig. 17. Enterprise management activities required to be supplied as well by actual data stored in the enterprise data repositories (data base). Hence, the enterprise knowledge component e(b, t, k) is associated with *data* items as well (see Fig. 18).

Fig. 16. The Elementary Management Cycle (EMC) – specification of *Function-Process* 

Enterprise domains and aspects of the enterprise knowledge identified in the various Enterprise Modeling (EM) and Enterprise Architecture (EA) methodologies and frameworks (Table 1) reflect the semantics of the concept "enterprise knowledge component" (Gudas,

Summarizing the above given overview of enterprise modelling domains and aspects (Table 1), we make a premise, that there are three integrated aspects of the Enterprise management

Modeling of Enterprise Business and IT integration (Business and IT alignment

Performance of all these Enterprise management activities require adequate diverse knowledge, namely, first type of knowledge is knowledge about business processes (*B*), second type - knowledge about information technologies (*T*) and, finally, knowledge about

So, the key enterprise management activities are supported by the differing types of interrelated knowledge, depicted as *enterprise knowledge component* in Fig. 17. Enterprise management activities required to be supplied as well by actual data stored in the enterprise data repositories (data base). Hence, the enterprise knowledge component e(b, t, k) is

interaction

Brundzaite, 2006).

activities).

**8. Enterprise knowledge component** 

activities modeling (Henderson, Venkatraman, 1990):

enterprise management (*K*) (Gudas, Brundzaite, 2006).

associated with *data* items as well (see Fig. 18).

 Modeling of business strategy, infrastructure and processes; Modeling of IT strategy, infrastructure and processes;

Fig. 17. Knowledge component e (b, t, k) for enterprise management activities

The internal structure of the enterprise knowledge component (b, t, k) (see Fig. 17) represents a new viewpoint to enterprise knowledge modelling: the enterprise management facilities (decision making units of organizational structure) should be supplied and operate with *complex integrated knowledge* about different Enterprise domains as follows: business knowledge (B), IT knowledge (T) and knowledge about enterprise management modeling (K) (Gudas, Brundzaite, 2006).

Fig. 18. Enterprise knowledge component e (b, t, k) is integrated with enterprise data items

The depicted enterprise knowledge component (Fig. 18) represents a structural viewpoint to enterprise knowledge modeling: the Knowledge Base should include *integrated enterprise knowledge* (validated models, theories, arguments, descriptions, problem statements) about business strategy and infrastructure (*B*), IT strategy and infrastructure (*T*), enterprise management modelling knowledge and knowledge management methods (*K*).

On the basis of the internal structure of enterprise knowledge component (b, t, k) the abstract space (the Universe of Discourse) for Enterprise knowledge modeling is defined as follows (Fig. 19): Enterprise Knowledge Space (B, T, K), in which B – axis of business process knowledge hierarchy; T – axis for IT management knowledge hierarchy, K – axis of enterprise management knowledge hierarchy (Gudas, Brundzaite, 2006).

The Enterprise Knowledge Space axes (B, T, K) reflect the different management knowledge types, each axis having its own hierarchical structure. Semantics of the enterprise knowledge hierarchy levels (partition of the axes B, T, and K) is discussed in the following chapter.

Knowledge-Based Enterprise Framework: A Management Control View 199

Each of 125 items within the Enterprise Knowledge Space possesses its own semantics and identifies the definite component of enterprise knowledge, which integrates 3 aspects of the enterprise: business (*B*), information technology (*T*) and knowledge (*K*) at the same level of elaboration. E. g., item *e*111 represents the integration of knowledge concerning 3 aspects of Enterprise management: the strategic business management activities, strategic knowledge management methods and particular IT types that are used at the strategic management level. There are 3 two-dimensional subspaces of the Enterprise Knowledge Space, namely,

The subspace E1 "Business – IT" (*B*, *T*) defines information technologies that are used to support business activities at a definite management level (strategic, knowledge, tactical knowledge etc.). The subspace E2 "Business – Knowledge" (*B*, *K*) describes business

The subspace E3 "IT – Knowledge" (*T*, *K*) characterizes the IT in the way it is used at each level of knowledge management. These subspaces of the Enterprise Knowledge Space support the analysis and integration of knowledge concerning different domains and

For instance, the levels of decomposition of the aspect of Enterprise "information technology (*T*)" could be as follows: (T1 – Ontology modelling IT (methodologies and tools), T2 – metameta-modelling IT (methodologies and tools), T3 – meta-modelling IT (methodologies and tools), T4 – enterprise conceptual modelling IT (methods and tools), T5 – partial enterprise

These two-dimensional models logically interrelate with such well-known models as Enterprise Information Architecture (ISA Framework) (Zachman, Sowa, 1992) and Multi-

Maes *et al.* (Maes et al., 2000) presents a three-dimensional Integrated Architecture Framework (IAF) for business-IT alignment. The IAF model is based on the ISA Framework (J. Zachman) and a well-known business-IT alignment model developed by Henderson and

The analysis of contemporary Enterprise knowledge modelling methods presented in (Gudas, Brundzaite, 2006, 2006a, 2006b) shows, that there are no methods which could directly suit for the integrated modelling the defined knowledge aspects at the defined levels of detail. Further we are going to discuss a business modelling method, which is intended to model 3 interrelated aspects (business, IT and knowledge) of an enterprise in the

*The identifiers of enterprise knowledge item.* The formal description of the Modified Value Chain Model *M* with the knowledge management function *K* can be expressed as the

For instance, the subspace "Business – Knowledge" (*B*, *K*) could be specified as follows: E2= (*B* ={B1 – Strategic management level (this level embraces strategic management methods), B2 – Knowledge management level (this level embraces knowledge management methods), B3 – Tactical management level (this level includes tactical management methods), B4 – Operation management level (this level concerns operational management methods), B5 – Technological process control level (this level embraces process control and management methods));*K* = {K1 – Ontological modelling level; K2 – Meta-meta-modelling level, K3 – Meta-modelling level, K4 – Conceptual modelling level, K5 – Particular (instant)

management methods and their interaction with the organizational knowledge.

E1 = (*B*, *T*), E2 = (*B*, *K*), and E3 = (*T*, *K*).

aspects of Enterprise management activities.

modelling IT (packages, patterns, plug-in, etc.)).

Venkatraman ((Henderson, Venkatraman, 1990).

Cartesian product in the following way:

perspective Enterprise Modelling (MEMO) (Ulrich, 2002a).

modelling level}).

integrated way.

*ktbEktbe* }.5,...,1{,,,);;( (1)

Fig. 19. Enterprise Knowledge Space (B, T, K) axes

#### **9. The enterprise knowledge space**

In this chapter we explore the granularity of the enterprise knowledge with the purpose to develop enterprise knowledge base which will be applicable for transformation of enterprise into the knowledge-based enterprise, for the enterprise IT management and alignment with business goals and the range of other business management functions.

The contemporary organizational theories distinguish between four hierarchical levels in organizations: strategic level, tactical level, knowledge level and operational level (Laudon, Laudon, 2004). On the basis of such hierarchical system, it is possible to define four adequate levels in organizational information management processes. We have modified a slightly ordinary hierarchical structure by placing knowledge management in the second level of the business management hierarchy (axes B), because of the overall nature of the knowledge management processes. The Enterprise Knowledge Space (Fig. 20) was derived by fitting integrated knowledge model component (see Fig. 18) with the hierarchical information structure of the organizational systems (Gudas, Brundzaite, 2006).

Fig. 20. Enterprise knowledge space *E(B,T,K)*

The enterprise knowledge space *E (B, T, K)* is developed for the systematization of the enterprise knowledge modelling area; it is aimed to be employed for the development of practical enterprise knowledge modelling and management methods.

Each item *e* in the Enterprise Knowledge Space *E (B, T, K)* is identified along 3 axes:

In this chapter we explore the granularity of the enterprise knowledge with the purpose to develop enterprise knowledge base which will be applicable for transformation of enterprise into the knowledge-based enterprise, for the enterprise IT management and alignment with

The contemporary organizational theories distinguish between four hierarchical levels in organizations: strategic level, tactical level, knowledge level and operational level (Laudon, Laudon, 2004). On the basis of such hierarchical system, it is possible to define four adequate levels in organizational information management processes. We have modified a slightly ordinary hierarchical structure by placing knowledge management in the second level of the business management hierarchy (axes B), because of the overall nature of the knowledge management processes. The Enterprise Knowledge Space (Fig. 20) was derived by fitting integrated knowledge model component (see Fig. 18) with the hierarchical

The enterprise knowledge space *E (B, T, K)* is developed for the systematization of the enterprise knowledge modelling area; it is aimed to be employed for the development of

Each item *e* in the Enterprise Knowledge Space *E (B, T, K)* is identified along 3 axes:

practical enterprise knowledge modelling and management methods.

business goals and the range of other business management functions.

information structure of the organizational systems (Gudas, Brundzaite, 2006).

Fig. 19. Enterprise Knowledge Space (B, T, K) axes

**9. The enterprise knowledge space** 

Fig. 20. Enterprise knowledge space *E(B,T,K)*

$$e(b; t; k) \in E, \quad \forall b, t, k \in \{1, \ldots, 5\}. \tag{1}$$

Each of 125 items within the Enterprise Knowledge Space possesses its own semantics and identifies the definite component of enterprise knowledge, which integrates 3 aspects of the enterprise: business (*B*), information technology (*T*) and knowledge (*K*) at the same level of elaboration. E. g., item *e*111 represents the integration of knowledge concerning 3 aspects of Enterprise management: the strategic business management activities, strategic knowledge management methods and particular IT types that are used at the strategic management level. There are 3 two-dimensional subspaces of the Enterprise Knowledge Space, namely, E1 = (*B*, *T*), E2 = (*B*, *K*), and E3 = (*T*, *K*).

The subspace E1 "Business – IT" (*B*, *T*) defines information technologies that are used to support business activities at a definite management level (strategic, knowledge, tactical knowledge etc.). The subspace E2 "Business – Knowledge" (*B*, *K*) describes business management methods and their interaction with the organizational knowledge.

The subspace E3 "IT – Knowledge" (*T*, *K*) characterizes the IT in the way it is used at each level of knowledge management. These subspaces of the Enterprise Knowledge Space support the analysis and integration of knowledge concerning different domains and aspects of Enterprise management activities.

For instance, the subspace "Business – Knowledge" (*B*, *K*) could be specified as follows:

E2= (*B* ={B1 – Strategic management level (this level embraces strategic management methods), B2 – Knowledge management level (this level embraces knowledge management methods), B3 – Tactical management level (this level includes tactical management methods), B4 – Operation management level (this level concerns operational management methods), B5 – Technological process control level (this level embraces process control and management methods));*K* = {K1 – Ontological modelling level; K2 – Meta-meta-modelling level, K3 – Meta-modelling level, K4 – Conceptual modelling level, K5 – Particular (instant) modelling level}).

For instance, the levels of decomposition of the aspect of Enterprise "information technology (*T*)" could be as follows: (T1 – Ontology modelling IT (methodologies and tools), T2 – metameta-modelling IT (methodologies and tools), T3 – meta-modelling IT (methodologies and tools), T4 – enterprise conceptual modelling IT (methods and tools), T5 – partial enterprise modelling IT (packages, patterns, plug-in, etc.)).

These two-dimensional models logically interrelate with such well-known models as Enterprise Information Architecture (ISA Framework) (Zachman, Sowa, 1992) and Multiperspective Enterprise Modelling (MEMO) (Ulrich, 2002a).

Maes *et al.* (Maes et al., 2000) presents a three-dimensional Integrated Architecture Framework (IAF) for business-IT alignment. The IAF model is based on the ISA Framework (J. Zachman) and a well-known business-IT alignment model developed by Henderson and Venkatraman ((Henderson, Venkatraman, 1990).

The analysis of contemporary Enterprise knowledge modelling methods presented in (Gudas, Brundzaite, 2006, 2006a, 2006b) shows, that there are no methods which could directly suit for the integrated modelling the defined knowledge aspects at the defined levels of detail. Further we are going to discuss a business modelling method, which is intended to model 3 interrelated aspects (business, IT and knowledge) of an enterprise in the integrated way.

*The identifiers of enterprise knowledge item.* The formal description of the Modified Value Chain Model *M* with the knowledge management function *K* can be expressed as the Cartesian product in the following way:

Knowledge-Based Enterprise Framework: A Management Control View 201

According to J.M.Firestone (Firestone, 1999), organizational knowledge management activity "is aimed at integrating the various organizational agents, components, and activities of the organizational knowledge management system into a planned, directed

The enterprise knowledge base along with its organizational and technological components constitutes enterprise knowledge management system (KMS). A key aspect in defining the KMS is that both its components and interactions must be fully designed. Knowledge management activity, as any other enterprise activity is arranged in a hierarchy, which can

The first task is to identify finite number of design levels. According to MDA architecture, four modeling levels are recommended in Meta-Object Facility (MOF) (**Christian, 2005),**

On the basis of these recommendations four hierarchically interrelated knowledge

model;

System:

knowledge.

Information

**Abstraction levels or views**

Generic; Partial;Particular

Abstract meta-model; Application specific

Domain-specific models; Hypermedia

Wisdom; Knowledge; Information; Data

Views of a Knowledge Management

Strategy view; Organizational view; Information System view. Abstraction levels:Generic knowledge; Specific

Meta-meta model; Meta-model; Model;

Enterprise meta-knowledge management ; Enterprise knowledge management ; Enterprise management Business process management ;Manufacturing process

Enterprise strategic management ;

management and control

information space; Real world

Knowledge; Information; Data

management levels (see Fig. 26) were identified. (Gudas, Brundzaite, 2006a).

**Modeling purpose,** 

architecture model development

**intention** 

Enterprise

Knowledge management

Knowledge management

Data, Information, Knowledge

Architecture for Knowledge Management Systems

Object-oriented language description

Architecture for Knowledge-Based

Table 2. The overview of Enterprise management levels and knowledge

Enterprise Management Systems

A. Liew (Liew, 2007) Understanding

process producing, maintaining and enhancing an organization's knowledge base".

have infinite number of levels.

(MOF, 2011).

1999)

2000)

1999)

2002)

**Meta-modeling approach** 

Meta-modeling approach to

The Knowledge Factory (Müller,

A Multi-Layer Architecture for Knowledge Management Systems (Ulrich,

Meta-Object Facility (MOF, 2011)

Knowledge-Based

framework [5, 6, 8]

Enterprise

GERAM (GERAM,

adaptive knowledge management (Süß,

$$M = (K) \times (F\_1, \dots, F\_n) \times (P) \times (R) \times (R),\tag{2}$$

Where *K* - knowledge management function, *F1, ...., Fn* - business management functions, *P*business processes, *R* - business resources.

This means, that each enterprise knowledge model item *Mm* in the modified value chain model is related to the appropriate knowledge management function *g* ( *Kk* , business management function *f* ( *Ff* ), business process *p* ( *Pp* ), and resources *r* (*r R* ). To put it in other terms, the enterprise knowledge model item is identified by a set of identifiers:

$$m(\mathbf{g}; f; p; r) \in M \,. \tag{3}$$

The Enterprise Knowledge Model item *m* is located in the Enterprise Knowledge Space *E*  (see Formula 1, Chapter 1.2), and is identified by additional identifiers. Enterprise knowledge model item *m* in the Enterprise Knowledge Space *E* (*B*, *T*, *K*) is defined as:

$$m\_e \text{ (}b; t; k; \text{ g}; f; \text{ }p; r; l\text{) }\in M\_e; \tag{4}$$

Where *l* ( *Ll* ) is the time period index, *Mm ee* . *Me* is the enterprise knowledge model in consideration of the enterprise knowledge space.

The Enterprise Knowledge Model *Me* enables to shape the model of knowledge-based business, since it considers knowledge management function (the identifier *g*) as well as other process management functions (the identifier *f*), processes (the identifier *p*) and their interactions comprising all 3 aspects of Enterprise knowledge component (the identifiers *b*, *t*, *k*). Each aspect of Enterprise knowledge (*b*, *t*, *k*) is decomposed into 5 levels of details in the Enterprise Knowledge Space (Fig. 20).

#### **10. Enterprise management layers and knowledge**

An Enterprise Management System is a multilevel hierarchical structure. Enterprise management levels, knowledge hierarchy, semantics of the enterprise knowledge layers are investigated in (GERAM), (MOF, 2011), (Roboam et al., 1990) (Gudas, 2008)**,** (Gudas, Brundzaite, 2006b)**, (**Ulrich, 2002),(Laudon, Laudon, 2004), (Muller, Schappert, 1999). Semantics of Enterprise knowledge and management levels depends on the purpose of modeling, enterprise modeling point of view (Table 2).

Management layers of traditional Enterprise are as follows: strategic management, managerial, operational management. In case of Knowledge-Based Enterprise (KBE) semantics of Enterprise knowledge and management levels depends on the purpose of modeling and modeling point of view (see Table 1). Semantics of the enterprise Knowledge management layers in the different frameworks and models depends on the definite purpose (intention) of modeling as well as on the requirements of business control process and IT related requirements for enterprise management systems (Gudas, 2009).

For instance, the Enterprise model aimed for business and IT strategic alignment includes only two layer: strategy layer (business strategy and IT strategy) and infrastructure layer (business infrastructure and IT infrastructure) (Henderson, Venkatraman, 1990).

The management system of the IT-based enterprise includes layers as follows: strategic management, knowledge management, managerial, operational management layer (Laudon, Laudon, 2002).

Where *K* - knowledge management function, *F1, ...., Fn* - business management functions, *P*-

This means, that each enterprise knowledge model item *Mm* in the modified value chain model is related to the appropriate knowledge management function *g* ( *Kk* , business management function *f* ( *Ff* ), business process *p* ( *Pp* ), and resources *r* (*r R* ). To put it in other terms, the enterprise knowledge model item is identified by a set

The Enterprise Knowledge Model item *m* is located in the Enterprise Knowledge Space *E*  (see Formula 1, Chapter 1.2), and is identified by additional identifiers. Enterprise knowledge model item *m* in the Enterprise Knowledge Space *E* (*B*, *T*, *K*) is defined as:

Where *l* ( *Ll* ) is the time period index, *Mm ee* . *Me* is the enterprise knowledge

The Enterprise Knowledge Model *Me* enables to shape the model of knowledge-based business, since it considers knowledge management function (the identifier *g*) as well as other process management functions (the identifier *f*), processes (the identifier *p*) and their interactions comprising all 3 aspects of Enterprise knowledge component (the identifiers *b*, *t*, *k*). Each aspect of Enterprise knowledge (*b*, *t*, *k*) is decomposed into 5 levels of details in the

An Enterprise Management System is a multilevel hierarchical structure. Enterprise management levels, knowledge hierarchy, semantics of the enterprise knowledge layers are investigated in (GERAM), (MOF, 2011), (Roboam et al., 1990) (Gudas, 2008)**,** (Gudas, Brundzaite, 2006b)**, (**Ulrich, 2002),(Laudon, Laudon, 2004), (Muller, Schappert, 1999). Semantics of Enterprise knowledge and management levels depends on the purpose of

Management layers of traditional Enterprise are as follows: strategic management, managerial, operational management. In case of Knowledge-Based Enterprise (KBE) semantics of Enterprise knowledge and management levels depends on the purpose of modeling and modeling point of view (see Table 1). Semantics of the enterprise Knowledge management layers in the different frameworks and models depends on the definite purpose (intention) of modeling as well as on the requirements of business control process

For instance, the Enterprise model aimed for business and IT strategic alignment includes only two layer: strategy layer (business strategy and IT strategy) and infrastructure layer

The management system of the IT-based enterprise includes layers as follows: strategic management, knowledge management, managerial, operational management layer

and IT related requirements for enterprise management systems (Gudas, 2009).

(business infrastructure and IT infrastructure) (Henderson, Venkatraman, 1990).

business processes, *R* - business resources.

model in consideration of the enterprise knowledge space.

**10. Enterprise management layers and knowledge** 

modeling, enterprise modeling point of view (Table 2).

Enterprise Knowledge Space (Fig. 20).

(Laudon, Laudon, 2002).

of identifiers:

),()()(),...,()( <sup>1</sup> *<sup>n</sup> RRPFFKM* (2)

*<sup>e</sup> Mlrpfgktbm <sup>e</sup>* );;;;;;;( ; (4)

(3)

According to J.M.Firestone (Firestone, 1999), organizational knowledge management activity "is aimed at integrating the various organizational agents, components, and activities of the organizational knowledge management system into a planned, directed process producing, maintaining and enhancing an organization's knowledge base".

The enterprise knowledge base along with its organizational and technological components constitutes enterprise knowledge management system (KMS). A key aspect in defining the KMS is that both its components and interactions must be fully designed. Knowledge management activity, as any other enterprise activity is arranged in a hierarchy, which can have infinite number of levels.

The first task is to identify finite number of design levels. According to MDA architecture, four modeling levels are recommended in Meta-Object Facility (MOF) (**Christian, 2005),** (MOF, 2011).

On the basis of these recommendations four hierarchically interrelated knowledge management levels (see Fig. 26) were identified. (Gudas, Brundzaite, 2006a).


Table 2. The overview of Enterprise management levels and knowledge

Knowledge-Based Enterprise Framework: A Management Control View 203

(Gudas, Brundzaite, 2007) as *EMC* (*Elementary Management Cycle*). There are two different management transactions (*Elementary Management Cycles)* identified in the KBEM (Fig. 21): *Knowledge management cycle ( EMCz*) and *Process management cycle( EMCp*) (Gudas, 2009). The peculiarity of the developed model comparing with the M.Porter's Value Chain Model is that the developed model distinguishes between qualitatively different business management activities (*F, P* and *K* constructs in the Fig. 21) and allows formally represent interactions between these activities by using two types of the control activities (*EMCz* and

The semantics of identified management transactions *EMCp* and *EMCz* are different, and are



By definition (Gudas, Brundzaite, 2006b), an Elementary Management Cycle (*EMC)* consists of the predefined sequence of mandatory steps of information transformation (*Interpretation, Information Processing, Realization*); these steps compose a management cycle (a feedback loop). The content of information and semantics of transformation of these mandatory steps of *EMC* depends on the subject area (domain of the enterprise). For instance, the subject area of the *Knowledge management cycle EMCz* is a definite set of *Processes management function*s. It is evident that this subject area of *EMCz* (i.e. information and semantics of transformation of *EMCz*) is totally different from that of *Process management cycle EMCp*. The *EMCz* deals with the information about the characteristics of management functions (quality, effectiveness, etc.), meanwhile the Process management cycle *EMCp* controls characteristics of products,

Therefore, the content (semantics) of information (data, knowledge, goals) processed in these two management cycles (*EMCz* and *EMCp*) is unlike different. The mandatory steps (*Interpretation, Information Processing, Realization*) of the *Elementary Knowledge Management* 

*EMCp* with different semantics) (Gudas, 2009).

Fig. 21. Knowledge-Based Enterprise model

*process* (*B*) with the Enterprise strategic goals.

services and state of a *Process* (i.e. technological process).

defined as follows:

schedule, etc));

As it could be concluded from the overview of Enterprise modeling approaches (see the column "Abstraction levels or views" in Table 2), the enterprise management hierarchy levels and knowledge abstraction hierarchy are co-related. For instance, abstraction levels of knowledge could be *Generic knowledge*; *Specific knowledge, Partial knowledge, Domainspecific, Application specific, Meta-, Meta-Meta- ,* and etc. (see Table 2).

Therefore the knowledge management modeling requires some complex hierarchical structures to be identified for adequate representation of the knowledge management activities and organizational units.
