22. A Systems Engineering Approach to Modelling Enterprises

Organizational and management theories generally focus on obtaining a conceptual and operational understanding of a particular facet of enterprises. In contrast, systems engineers focus on obtaining a logical integrated understanding of the structure and functioning of the systems they design and work with. This chapter presents such an approach to capturing the nature of enterprises and their evolution over time, suitable for creating software models and analysis tools, based on systems science and systems engineering concepts and principles. Specifically, we present an understanding of enterprises in terms of a morphogenetic structure: a series of models with derivation-based consistency relationships among them. We also discuss how the epigenesis of enterprises, i.e., their change and evolution over time, can be understood relative to this structure. These models are influenced by the fact that they were developed within an information technology organization, concerned with the information, processes, and knowledge that enable the functioning of business systems.

This enables all the information about the enterprise, relating to different facets and hierarchical levels, to be captured in a unified modelling structure, so that various views can be derived from it for analysis purposes. As we go through the approach, we indicate how the representation can enable the application of various management theories – the models provide the basic structure for representing the information, from which views can be constructed for applying particular theories. Moreover, if the application of theories suggests particular courses of action, the unified structure enables analysis of potential consequences on other outcomes of interest, based on other pertinent theories. The ultimate goal is to provide information systems tooling that enables managers to go beyond silo decision-making, to managing enterprises as unified systems.