Business System Design Research Articles

A Design Concept for a Tourism Recommender System for Regional Development

Despite of tourism infrastructure and software, the development of tourism is hampered due to the lack of information support, which encapsulates various aspects of travel implementation. This paper highlights a demand for integrating various approaches and methods to develop a universal tourism information recommender system when building individual tourist routes. The study objective is proposing a concept of a universal information recommender system for building a personalized tourist route. The developed design concept for such a system involves a procedure for data collection and preparation for tourism product synthesis; a methodology for tourism product formation according to user preferences; the main stages of this methodology implementation. To collect and store information from real travelers, this paper proposes to use elements of blockchain technology in order to ensure information security. A model that specifies the key elements of a tourist route planning process is presented. This article can serve as a reference and knowledge base for digital business system analysts, system designers, and digital tourism business implementers for better digital business system design and implementation in the tourism sector.

Concept of fractal organization of organic business systems

Purpose. The purpose of the article is determining the possibilities of fractal approach, as the one that enables not only flexibility and viability, but also, management efficiency improvement, new competencies of the company formation, self-renewal ability formation and conflicts of interest between structural subdivisions in complex vertically integrated structures elimination, to the organization of implementation of organic business entities.
 Methodology / approach. The methodological basis of the research is general scientific and specific methods of economic phenomena and processes cognition. Therefore, the following methods have been applied: logical generalization (in determining the properties and benefits of agricultural business systems of the fractal type); comparison (when the practice of functioning of properties of organic products is analyzed); abstract-logical (when features of the functioning of network structures in fractally organized business systems are designed); monographic (in the study of the recent concepts of the functioning of fractal organized business systems); graphic (for visual presentation of the cooperation network of vertically integrated structure members); heuristic (when formulating conclusions and generalizations, as well as when justifying the directions for future research of the business system). 
 Results. The essence of fractal business organization and the properties of fractal type business systems have been identified which include heterarchy, structure complexity, self-organization, self-optimization, openness, as well as autonomy and elements. The fractally organized business systems benefits in agribusiness compared with agrarian business systems with a traditional structure and management system have been determined. The existence of objective prerequisites for organic farms fractalization has been substantiated, which is already inherent in some of fractally organized business systems properties. The properties and features of fractally organized business systems of network structures functioning have been defined.
 Originality / scientific novelty. For the first time the substantiation of fractal type business systems formation in agriculture is proved, organic production in particular (previously expediency of fractal type business systems was studied only for industrial enterprises use). In particular, potential subjects of fractalization in organic production are identified, which include complex diversified agricultural business systems; the properties and advantages of fractally organized organic farms are identified and formalized, that are defined for a single fractal as well as a business system in general; the network structure of fractally organized organic farms is substantiated, particularly the relationship structure, network interaction rules, properties and values of fractally organized business structures in organic farming. In addition, the identification and formalization of the factors that affect Ukrainian organic production development got further development.
 Practical value / implications. To ensure the fulfillment of obligations by all parties as well as maintaining the basic principles of fractal organization in the field of goal-setting the function of the institutional environment is proposed. As PE “Gallex-Agro” is the vivid example of interconnections network that corresponds to the features of fractal business systems design, vertically integrated structure of member’s interaction network is designed at its case.

Managing IT Change-Training and Education

While the transition from functional business applications to applications supporting integrated business process has dramatic impacts on virtually every function within the enterprise, these changes also have large impact on other business needs. Along with the need to take an integrated view of all business components, it is also important to recognize that many of these concepts are not simply extensions of current ways of thinking about business. Rather, they require significant training and education that go well beyond what has traditionally been provided. Today, with the cross-functional breadth of enterprise resource planning applications, the need for new approaches becomes mandatory if the organization is to realize the full potential that these applications can provide. While the design and administration of “training” has traditionally been considered an HR responsibility, it is critical to the organization that business leaders insist on designing and funding more fundamental education. The normally accepted role for management accountants has been focused on the use of company data to produce analyses and reports on the internal working of the enterprise. However, understanding the importance of this broader and more extensive definition of training, becomes part of this analysis, particularly as return-on-investment cases are developed and tracked as part of the justification for funding the change programs. These are all opportunities for more analytical approaches to management afforded by the conversion to integrated business system design and the implementation of enterprise resource planning applications. © 2016 Wiley Periodicals, Inc.

Letter From the Editor

Letter From the Editor

Managing IT Change-Sales, Marketing, and Distribution

In the past, all of the budgeting and reporting required to manage information technology (IT) change for sales, marketing, and distribution was extremely tedious and often could not provide the needed level of accuracy to make the evaluation process work properly. It was considered too complex to accurately budget for and evaluate the success of each promotion. Today, with the cross-functional breadth of enterprise resource planning applications, this is simply no longer the case. It is also the case that many promotions will be essentially identical across the company or across different geographies. This allows for the reuse of much of the work required to design the collection, evaluation, and reporting process. It does, however, require significant work for management accountants to work with each of the other functions within the business to work through detailed algorithms such that changes in production and/or sales volumes can be analyzed and all of the true costs associated with each of these promotions can be identified. These are all opportunities for more analytical approaches to management afforded by the conversion to integrated business system design and the implementation of enterprise resource planning applications. © 2016 Wiley Periodicals, Inc.

COMPUTER-BASED INTEGRATED BUSINESS PLANNING ON THE BASIS OF BUSINESS MODEL DEFINITION

The article is devoted to the integrated business planning for the cases of business establishment, expansion or transformation under different scenarios. The practical basis for the presented generalizations consists of lessons learned through implementing 14 projects for 10 Ukrainian enterprises and organizations. The theoretical basis covers business economics, strategic and financial management, business systems design, project management, business informatics. The process of coherent and affordable business plan development is considered. The authors operate with the term “business model”, as a set of roles and relationships, which are carried by the entity to get profit and positive cash flow within a certain structure of interests. The authors’ approach to the integrated business planning is described and grounded. It is necessary to distinguish modelling of the company activities and modelling for a business model. If the company operates several business models (like manufacturing and trade) then each business model requires a separate computer model.DOI: http://dx.doi.org/10.5755/j01.em.17.1.2298

A decomposition and hierarchical approach for business performance measurement and management

PurposePerformance measurement and management (PMM) is a key practice to drive modern businesses. The literature available in this field highlights a certain maturity regarding performance measurement systems, while few frameworks have been proposed for PMM, which is today's target. Hence this paper aims to focus on the development of a new framework for providing direction and guidance to an organization in measuring and managing its performance.Design/methodology/approachThe proposed framework is developed based on the strengths of the axiomatic design (AD) and the analytical hierarchy process (AHP) techniques.FindingsThe framework proposed, namely “Business System Design Decomposition” (BSDD), offers a holistic approach to PMM, identifies cause‐effect relationships in business processes, measures performance versus stakeholders, and offers interlinking between performance indicators. The result is a deep understanding of the business environment and a real step forward for PMM.Research limitations/implicationsThe proposed framework for PMM needs to be validated through an empirical approach or by a clinical approach utilizing a case study.Practical implicationsThe paper offers to academics, managers and practitioners a framework to understand, measure and manage business performance. Moreover, the application of the framework represents a learning process for the people involved in the project.Originality/valueLittle research is available regarding holistic performance measurement and management systems and the understanding of quantitative relations between performance indicators. By combining two existing methodologies, the framework proposed adds value to the existing body of knowledge and offers good insights for addressing future research.

On the Usefulness of the Ackoff–Gharajedaghi Model of System Types for the Design of Business Systems

The Ackoff–Gharajedaghi Model of System Types distinguishes 3 fundamental empirical systems: deterministic, animate, and social, with regard to their purpose. It has been formulated as a meta-model to support understanding, selection, and formulation of management models and theories. It is argued here that this model is also valuable for the interpretation and design of actual, empirical business systems. A study of a malfunctioning business is presented and interpreted with the Ackoff–Gharajedaghi Model, which supports this argument. Additionally, the study shows a pragmatic value of the proposed “Imperative of Goals Alignment” for the design of business systems, which is an operationalization of the Ackoff–Gharajedaghi Model. Furthermore, the investigation illustrates the importance of clear goals and incentives in business design; and it supports the thesis of the Ackoff–Gharajedaghi Model that management models and theories, founded upon empirical observations of deterministic and animate systems, impose limitations on the design of business systems.

A component based methodology for Web application development

Today’s enterprises increasingly rely on the Web to support their operations, global business alliances, and integration of their business processes with those of their suppliers, partners, and customers. In order to stay competitive, businesses must also respond to changing business and competitive environments in near real-time. This requires that the architecture and design of business systems and applications should allow quick reconfiguration as well as collaboration among distributed software components. Existing software design methodologies often lack the Web focus and explicit support for componentization. This paper presents a methodology for requirements analysis and high-level design, specifically for component-based Web applications. Using the Web page as the fundamental building block of Web applications, the proposed methodology introduces page and component classifications, and a set of tags to implement link semantics. Based on these constructs, the methodology then specifies procedures for requirements analysis and design. A running business example is used to illustrate various stages of the analysis and design process.

Tom M. van Engers, Knowledge Management: The Role of Mental Models in Business Systems Design. Ph.D. thesis, Vrije Universiteit Amsterdam. Belastingdienst (Dutch Tax and Customs Administration).

Tom M. van Engers, Knowledge Management: The Role of Mental Models in Business Systems Design. Ph.D. thesis, Vrije Universiteit Amsterdam. Belastingdienst (Dutch Tax and Customs Administration).

Knowledge management and intellectual capital as a paradigm of value creation

Any enterprise can potentially grow profitably through its management of knowledge for intellectual capital. For this purpose, it however, needs to craft an innovative and viable design of its business system. A business system design (BSD) comprises a dynamic architecture which is isomorphic across firms in space and time. A dense dynamic nexus of social capital, human capital and knowledge management – the knowledge management nexus (KMN) – forms the core of BSD. KMN continually rationalises and revitalises the BSD. An inclusive concept of knowledge spectrum as the quintessential resource for value creation is elaborated briefly in terms of its dynamic configuration. A firm's intellectual capital (IC) is seen as the resultant of its KMN. IC represents a firm's meta-capability toward overcoming challenges and exploiting opportunities in its continual pursuit of value creation. A synoptic overview of the KM-IC paradigm is outlined. It provides mental firepower to radically rethink businesses as experiments and exercises in value creation.