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2018 | Book

Introduction: What Is Business Architecture and Why Do We Need It Now? Read chapter Read first chapter

Business Architecture Strategy and Platform-Based Ecosystems

Author: Prof. Young Won Park

Publisher: Springer Singapore

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

This book provides a framework and real case analyses concerning business architecture strategy and platform-based ecosystems. Firstly, the book introduces a framework of business architecture strategy and suggests an engineering process that employs a business architecture analysis system in which the various business best-practices information technology (IT) tools are integrated into an interface. More specifically, this architecture analysis provides the means to realize two essential features: a strategy that allows global firms to sense changing market needs, and a tool that combines mechanical engineering with electronics and software IT tools.

Secondly, the book discusses platform-based ecosystems. Crucial issues for today’s firms are associated with value creation through their platform and ecosystem framework. With a major emphasis on modular product architecture, US firms have focused heavily on platform development in modular industries. Their base is operation system (OS) software, so that IT firms in general focus on software capabilities—and digital control in particular. In contrast, the advantage for Japanese firms is not digital but analog control. Without any drastic changes in their industry practices, Japanese firms are likely to sustain their analog platform advantage.

The book subsequently puts forward a holistic view through the connection of business architecture strategy and platform-based ecosystems. The theoretical framework and case illustrations are especially useful to firms involved in a variety of industries that must respond to the turbulent environmental changes of the digital era. Most of the cases target not only Japanese firms but also many other global firms. Readers are systematically shown how to balance technological competence and customer competence by using the framework of business architecture strategy and platform-based ecosystems.

Table of Contents

Frontmatter
Chapter 1. Introduction: What Is Business Architecture and Why Do We Need It Now?
Abstract
In this chapter, we begin with the motivating question of the entire book: Why do certain businesses face increasing isolation in an interconnected world? By raising a common problem in firms, namely the imbalance between agility in relation to customer needs and cultivating one’s technological capabilities, we set the stage for the unfolding of our analysis. We conclude this chapter by claiming that business architecture strategy can help firms struggling with the above problem to capture the value that they have created until now.
Young Won Park
Chapter 2. Global Business Model Building Based on the Three Core Competences and Business Architecture
Abstract
This chapter addresses the challenges faced by industries that regard their companies’ technological skills as tacit knowledge that cannot be leaked. We briefly describe the increasingly competitive global market, where customer interests are elusive; hence, traditional business models should be reviewed holistically using an objective framework. We also provide a literature review guided by two questions: (1) based on the principles of core competences and business architecture, what is the ideal type of global business model? (2) how can these success factors be put into action? To answer these questions, we introduce the linkage competence model. This framework will help us clarify why certain Japanese firms have failed in their business strategies and how this can be remedied.
Young Won Park
Chapter 3. Architecture Analysis for Sustainable Innovations
Abstract
This chapter aims to present an Integrated Manufacturing Information System (IMIS) that fulfills multiple objectives simultaneously, in the form of timely responses to specific customer requests, design capabilities for products with high customer value, and translation of embedded tacit knowledge into usable system knowledge. We explain the underlying mechanism that allows IMIS to evaluate an entire business strategy based on the internal product development information database. We further illustrate an architecture analysis method (AAM), as a specific IMIS implementation tool, and conclude with two relevant case studies for illustration purposes.
Young Won Park
Chapter 4. Architecture Analysis and Core Competence Strategy for Emerging Markets
Abstract
In the context of slackening advanced economies and accelerating emerging economies, it is crucial for firms to deploy product development capabilities that fit with the reality of the global market. In particular, the increasing complexity of product development results in greater reliance on IT systems to support the overall product development process. This chapter explores the architecture analysis framework and IT system method in relation to a firm’s core competence strategy. Using this framework, we examine the concept and implementation details of the so-called linkage competence, which integrates customer competence with technology competence. In our view, the architecture and portfolio analysis methods may prove useful to develop products that meet the needs of the emerging markets.
Young Won Park
Chapter 5. Integration of Mechanical, Electrical, and Software Development Utilizing Architecture Analysis
Abstract
This chapter aims to improve our understanding of how to manage the multiple challenges of synergistic products that require mechanical-electrical-software integration. As globalization grows and the nature of work becomes ever more information intensive, firms wrestle with diverse and complex customer requirements and find it increasingly difficult to design and develop products in a shortening product cycle time. We offer some meaningful lessons on how to manage products that are controlled by integrative sets of numerous mechanical component parts, diverse electric circuits, and sophisticated software interfaces. We also provide an IT system-enabled collaborative design solution for the mechanical-electrical-software chain, utilizing an architecture analysis that we then apply to Japanese firms.
Young Won Park
Chapter 6. Product Architecture and IT Strategy
Abstract
Firms increasingly recognize the strategic implications of front-end product design to improve total cost-effectiveness. Beyond its traditional function as a product design tool, computer-aided design (CAD) is becoming a competitive weapon for firms. Yet, it is unclear how the full potential of IT systems, particularly the usage of 3D CAD systems, may be reached through organizational capabilities. This chapter introduces a model for IT system configurations and CAD usage patterns. Next, a typology of IT system configurations is presented based on: (1) the degree of CAD integration between assembly makers and suppliers and (2) the structure of product design information, or product architecture. The product architecture of four electronics firms indicates that the organizational capability to fully realize the potential of IT systems is a more decisive factor than investing in IT development itself.
Young Won Park
Chapter 7. Integration of Platform Strategy and Product Architecture
Abstract
With increasing global competition, product development strategies require a great deal of responsiveness to maintain competitive advantage. This chapter examines the relationship between product architecture and platform strategy in the case of Japanese firms and aims to answer two guiding questions: (1) How have Japanese firms changed their product architecture during platform strategy implementation in emerging markets? (2) How do these changes reflect the complex requirements of customers in emerging markets? Based on a review of relevant literature, we present a research model that integrates product architecture with platform strategy.
Young Won Park
Chapter 8. Japanese Monozukuri and Platform-Based Ecosystem Strategy
Abstract
Japan’s Integrated Manufacturing System has proven its usefulness in numerous integral types of product architecture groups, including manufacturing and export-driven product development projects, since the post-World War II period, and it still does in the current global competition contexts. In practice, various high-performance automotive products, industrial machinery equipment, and electrical machinery component parts have maintained their relative competitive advantage in the global markets. Behind said sustainable performance edge, there have been effective teamwork by cross-discipline engineers and serious efforts to build information technology capabilities ensuring effective flows of design information across diverse organizational units.
Young Won Park
Chapter 9. Dynamic Influence Management System and Organizational Change
Abstract
This chapter presents a case study to illustrate Flow Oriented Architecture (FOA) and Dynamic Influence Management (DIM). The key question is: “How quickly does a firm detect changing requirements at the global level and translate them into swift organizational actions?” In other words, how quickly does an organization respond to information from the field? We compare traditional management with DIM, as change-oriented management. Drawing on the literature on change management, we explore an effective approach to change within the Japanese context.
Young Won Park
Chapter 10. Moving Forward: Global Integrated Manufacturing Information System (GIMIS)
Abstract
In this final chapter, we summarize the book’s key argument that a global business architecture strategy is necessary for firms to remain competitive in the globalizing world. After exploring issues that prevent firms from making the most of global standardized IT systems, we present the success stories of two Korean firms and describe a Global Integrated Manufacturing Information System (GIMIS) strategy. This allows organizations to retain their strengths in integrated manufacturing IT and use global standardized IT to keep up with global information systems, ultimately providing a viable path for Japanese firms to move forward.
Young Won Park
Backmatter
Metadata
Title
Business Architecture Strategy and Platform-Based Ecosystems
Author
Prof. Young Won Park
Copyright Year
2018
Publisher
Springer Singapore
Electronic ISBN
978-981-10-5535-5
Print ISBN
978-981-10-5534-8
DOI
https://doi.org/10.1007/978-981-10-5535-5