The Enterprise Architecture Concept

The Enterprise Architecture Concept

Copyright: © 2015 |Pages: 19
DOI: 10.4018/978-1-4666-6469-2.ch005
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The main intention of the Architecture-Governance-Growth (AGG) model introduced by this book is to be a representation of the evolving steps of the modern digital (or digitalized) enterprise. In this section of the book, the first dimension of the AGG model (the architecture realm), how it has emerged as an entrepreneurial concept (embedded in the concept of enterprise architecture), why it is an important and indispensable concept to describe the main components of the digital (or digitalized) enterprise, and how they interact and function are presented. In this chapter, it is argued that the most valuable tool to perform this task is the concept of enterprise architecture, a concept derived from the field of architecture or from the building sector of the economy. The chapter examines how this concept evolved from the concept of information systems and how it is important to the understanding of the concept of market architecture.
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2. Background

Across chapters 1 to 3 one can see that the enterprise can be analyzed through the lens of several theories and methodologies. For example, through the lens of the standard neoclassical economics, economists see that individuals have rational preferences, and that individuals maximize utility and enterprises maximize profits. Through the lens of the transaction costs theory, economists see that the standard economy theory deals by and large with a world of zero transaction costs, then try to describe a non-zero transaction costs world. Through the lens of the ownership rights theory when the enterprise intends to acquire the assets of another enterprise, it tries to achieve two goals: contracts and decision-rights (involving de assets). Through the lens of the principal-agent theory one sees a relationship where in a contract one or more persons engage another person to perform service on their behalf which involves delegating some decision making authority to the agent.

In sum, through the lens of the economists one can see that there are a number of economic theories that describe, explain and predict the nature of the enterprise addressing its existence, structure, behavior, and relationship to the market. The same can be said when one looks at the enterprise through the lens of the managers and businessmen: there are also a number of views about the way the enterprise should be managed and how its resources could be allocated as a source of competitive advantage. And finally, through the lens of the information systems professionals it is possible to see that there are a number of views that try to find solutions for optimal use of information within organizations, for instance to support decision-making processes or day-to-day operations, covering the whole information cycle: from its content, through its systems and up to its technologies.

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