e-Business Reference Modelling Framework for SMEs: An Enterprise
Architecture based Approach
Magido Mascate
a
and André Vasconcelos
b
INESC-ID, Instituto Superior Técnico, Universidade de Lisboa, Avenida Rovisco Pais, 1, 1049-001 Lisboa, Portugal
Keywords: Enterprise Architecture, e-Business Reference Model, Digital Strategy, SME, e-Business Architecture.
Abstract: Through the digital industry and economy, we find countless researches providing conceptual models aiming
to depict digital technology adoption by different businesses. However, according to existing studies, we
found that SMEs lack an e-business reference modelling framework that supports the design and adoption of
digital-enabled business models. Therefore, we exploit an adaptive and technology-independent approach to
propose an EA-based e-business reference modelling framework for SMEs in diverse business contexts. Our
framework comprises mainly of three interrelated building blocks, starting with the 1) situational analysis to
determine the motivating factors for change and barriers of the business environment; followed by SMEs
profiling. The SMEs profiling embodies the 2) SMEs’ readiness depiction based on the existence of digital
strategy, digital-value drivers’ catalogue, and business models proposals; and culminates with the 3)
description of the implementation based on e-business architecture. In addition, a fourth building block is
incorporated into the framework for e-Business solutions architecture, selection, and deployment into the
current SMEs' business context. In this study, we assume a practical approach, proposing and demonstrating
the application of tools that support the conception of an SMEs´ e-business in the business context in all the
different facets of our framework.
1 INTRODUCTION
The digital ecosystem and economy offer plenty of
opportunities for businesses to thrive. Although many
corporations and large firms easily engage and thrive
in the digital landscape, this is not the case of
countless SMEs from multiple business contexts. For
most of the countries around the globe, SMEs are the
cornerstone for the economic development of many
industries, specifically in developing countries.
Unfortunately, researches and literature pinpoint the
limited adoption of digital business or digital
supported business models by SMEs. For instance, as
discussed in summary by (Putra & Hasibuan, 2015),
many critical factors are appointed as drivers or
hinders. Hence, as many of the indicated factors are
intrinsic to a specific industry or country, notably two
problems are unfolded:
SMEs’ lacking e-business reference models to
guide the adoption of e-business. Also,
a
https://orcid.org/0000-0001-5725-8932
b
https://orcid.org/0000-0003-0038-7199
Literature lacking e-business reference modelling
frameworks.
Although SMEs’ e-business adoption behaviour
analysis falls beyond the scope of this work, we agree
that every business (enterprise) is a social system
(Hoogervorst, 2011, 2017) and behaves differently to
others, which is challenging to model its behaviour
for change. Herein, acknowledging the fact that
digital technologies are used for business purposes,
these businesses are assumed as having – managed or
unmanaged – enterprise architecture (EA) (Armour,
Kaisler, & Liu, 1999). Thus, we are induced to answer
the following research question:
Which conceptual model should support the
development of technology-adaptive e-business
reference models based on enterprise architecture
of SMEs, in diverse industries or business
contexts?
Mascate, M. and Vasconcelos, A.
e-Business Reference Modelling Framework for SMEs: An Enterprise Architecture based Approach.
DOI: 10.5220/0008931906930700
In Proceedings of the 22nd International Conference on Enterprise Information Systems (ICEIS 2020) - Volume 2, pages 693-700
ISBN: 978-989-758-423-7
Copyright
c
2020 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
693
2 RELATED WORK
Our discussion over the main referenced works,
researches, literature, techniques related to e-business
frameworks that support our proposal follow two
streams of studies: one from the practitioners’
perspective related to the design of digital-enacted
business, and another from the academia perspective
related to the framing of e-business adoption’s
patterns of SMEs. Herein, we identified former
conceptual models serving as the basis for our
proposal.
2.1 e-Business Adoption Pattern
Framework
In our days, it is unimaginable a business that doesn’t
use ICT resources regardless of its size. Although the
concepts of e-business stand for the use of electronic
technologies in support of business activities,
researchers argue that its adoption approach by SMEs
and businesses, in general, must be adaptive and
technology-independent (Putra & Hasibuan,
2015)(Mišic & Zhao, 2009)(Fettke & Loos, 2006). In
fact, there are many e-business technologies and
technology-based frameworks. However, as
discussed in former studies, they lack guidance – to
support SMEs' decision-makers – on the e-business
adoption process, in diverse SMEs’ industry or
country’s context. Thus, e-business models are not
designed independently of the technologies (Mišic &
Zhao, 2009).
From the existing research, we identified the
baseline conceptual model for our study – “Initial
descriptive model of integrated e-business for SMEs
frameworkas by (Putra & Hasibuan, 2015). This
work suggests three facets:
1) for the critical adoption factors influencing the
SME e-business readiness,
2) for the readiness encompassing SME’s profiles in
a specific industry or country and,
3) for the implementation facet where SME’s
decision-makers decide to adopt an e-business.
The authors argue that the existing frameworks
“insufficiently provide a practical tool for SMEs to
implement e-business.” In addition, they claim the
need for an established set of CAFs of e-business for
SMEs as a source of indicators in signalling the
readiness of SMEs to adopt e-business. Considering
the SMEs’ idiosyncrasy and the business
environments, establishing a set of generic CAFs
could be misleading. Instead, we suggest establishing
purposeful tools and methodology to guide SMEs to
evaluate its context CAFs based on cross-industries
digital key elements of a moment in time of an SME
lifecycle. Although, we agree on the authors
summarized former research contextualizing SMEs'
readiness as based on strategic vision, enterprise
financial resources, management and employee’s IT
skills, attitude (motivation).
Also, they posit that SMEs’ readiness need to
“relate the CAFs into SMEs readiness profiles” and
suggest a readiness evaluation as
SMEs’ profiling.
From this standpoint, we agree on SMEs’ profiles as
relevant reference components for e-business
adoption patterns evaluation. However, an SME’s
Profile must span the readiness and implementation
facets, comprising all necessary e-business adoption
references. Also, an SME’s profile must be of digital
context addressing a digital strategy and digital
business model at readiness facet. By following our
approaches, SMEs' e-business will be well structured
for future evaluation of the e-business adoption
maturity.
Moreover, the author proposes an implementation
perspective based on SME’s value chain. We agree
that this perspective is appropriate for the overall e-
business adoption maturity evaluation; however,
SME's value chain encompass too many processes
(Porter, 2001), which could limit a concurrent e-
business adoption approach, becoming a barrier for
SME, specifically for those in developing countries.
Instead, we suggest a more granular adoption
perspective through value-streams, specific activities
in the value chain (The Open Group, 2017). To adopt
this approach, we propose a strict modification of this
baseline framework by adding necessary building
blocks to complement its functionality. In addition,
this approach is suitable for design science paradigm
to develop artefacts as the outcome of the analysis in
the context of people, organizations, and technology.
2.2 e-Business Model Designing
Frameworks
Following the contextual analysis, the strategic
options are spotted, and this could lead to business
innovation process through business model design. A
business model is an intermediary element between
strategy and tactics (Casadesus-Masanell & Ricart,
2010)(DuPont et al., 2018). For e-business modelling
purposes, we identified the BMC – a well-known
framework in the context of management, among
others within the EA discipline. Scholars have
proposed some extension of BMC to facilitate the
design of digital-enacted business model. One
extension that we found fitting our purpose is the EV
Framework (Cigaina & Riss, 2017) – based on BMC.
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This is a powerful framework that supports the
development of e-business models through core
digital concepts as 1) digital connected people, 2)
digital-connected businesses (organizations), 3)
digitally connected business assets, 4) business
information (set of data) as a digital resource, and 5)
digital services’ infrastructures – directly or indirectly
owned IT infrastructures (e.g. cloud computing).
Herein, we understood that SMEs pursuing
different business goals, within an industry or
country, can share the same digital key elements.
Therefore, these SMEs need to articulate their
business models in one or more of the BMC
components to pursue a specific strategy or course of
action and realize business drivers and goals.
Moreover, with this approach, one or more digital-
value drivers are explicitly linked to each digital key
element and BMC component. The EV Framework
is supported by a questionnaire-based methodology,
and this is useful for the elicitation of current or future
digital value drivers out of the business environment.
Additionally, within the EA discipline, we found
scholars and practitioners proposing mechanisms that
support the translation of BMC into architecture
models, with ArchiMate language (Iacob et al., 2014;
Meertens et al., 2012). Cigaina & Riss (2017) provide
valuable insights over the cross-industries digital
elements, the depiction of digital strategies through
its related digital-value drivers. Even Though, they
scope their research in the digital business model
design context only. So, we posit that adopting some
aspect of EV framework is helpful for SMEs’ e-
business modelling with ArchiMate. Also, the
integration of business models in our proposal aligns
with some BA practitioners standpoints (DuPont et
al., 2018). It’s recommended that e-business
architectures are based on business models and, in
turn, business models are aligned with business
strategy.
3 PROPOSED FRAMEWORK
Following, we present our SME´s e-business
reference modelling framework (-framework)
proposal. This framework is made up of three facets
encompassing three different levels of e-business
from conceptualization to implementation. Also, it
incorporates an extra deployment block addressing
the e-business solution architecture to be managed
outside the SME’s boundaries by e-business solution
providers. We present a similar approach as the
research basis by Putra & Hasibuan (2015), to
emphasize the devising of SME's e-business adoption
model. In the following sections, we demonstrate how
this analysis is accomplished, and different
methodologies and techniques are combined to
support our proposed framework (-Framework) (cf.
Figure 1).
3.1 Description of the -Framework
We adopt the EA-based approach to propose an
integrated e-business reference modelling
framework. Essentially, this framework comprises
three facets (Putra & Hasibuan, 2015).
Figure 1: E-business reference modelling framework for
SMEs (-Framework).
First, for CAFs Analysis building block we
incorporate four components for the situational
analysis relying on extended STEP analysis over
cross-industries digital elements: people,
organization, information, and technology (cf. Table
1). In addition, the CAFs analysis are translated into
stakeholders’ motivation views with ArchiMate (cf.
Figure 2).
Second, for SMEs profiling, we span the SMEs’
profile covering both the Readiness evaluation facet
and Implementation description facet. Then, for
Readiness facet per se, we introduce components for
digital strategy, digital business model, and digital
value drivers catalogue as key elements for Readiness
assessment (cf. Table 2 – 3 and Figure 3 – 4).
e-Business Reference Modelling Framework for SMEs: An Enterprise Architecture based Approach
695
Moreover, to ensure that the SME’s readiness is
related to the CAFs, we rely on instances (people,
business, data, etc.) of environment’s digital elements
(people, organizations, information, and technology)
in the digital strategy building block – were the SWOT
analysis is performed (cf. Table 2).
Third, for Implementation design, we introduce the
E-Business Architecture building block, and we
substitute the SME value chain with e-business value
stream and e-business application by e-business
process. Additionally, we include the Information
map building component. E-business architecture
takes business model contents as reference inputs and
provides two reference artefacts: 1) e-business
information map, and 2) digital value (cf. Table 4 – 6
and Figure 5 – 7).
Fourth, within the SMEs business profile, we add two
key components: 1) business model content map (cf.
Figure 4), and 2) digital value map (a description of
the digital offer) (cf. Figure 5). Also, we integrate a
deployment facet into the SMEs’ environment; in this
new facet, SMEs’ e-business solutions are designed,
identified, or developed and deployed by (non-
technology) SMEs (cf. Figure 1). The deployment
includes the Information Systems Architecture (ISA)
building block and Applications repository
component and has as input the information map.
Further details are out of the scope of this study.
We adopt a technology-independent approach
(Putra & Hasibuan, 2015), and we ensure that
businesses systematically choose and adopt any
available e-business solution (Fettke & Loos, 2006)
in an evolutionary manner. To ensure the adaptability
and SME’s interoperability, the e-business
information maps are used as a reference in the ISA
of the specific industry – which provides application
selection references for SMEs’ e-businesses (cf. Table
7). While applications exist already in the SMEs
Context Applications Repositories, suitable e-
business applications can be instantiated into a
specific SME’s e-business profile.
4 CASE STUDY
In the following section, we demonstrate the
application of our proposed framework in designing
e-business reference models. Merkatos is an SME
operating in the marketing industry in Mozambique,
to provide traditional mass media marketing services
for diverse business sectors, mainly brick-and-mortar
3
Source: https://www.imf.org/en/countries/moz, visited on
2019/03/05
retailers. Merkatos' core competencies are the
production and publishing of graphical, audio, and
video marketing content. Since 2015, Mozambique is
facing an economic deficit leading to a 19.1%
inflation rate in 2016
3
. Therefore, Merkatos managers
are looking to “reduce 3% of publishing costs,” and
enhance the market access for premium customers to
increase profit by 1% by third Quarter(Q3) in 2020.
Merkatos expenditures on multimedia channels are
25% off the quarterly budget. Despite the company’s
need to continue using the mass media to reach
audiences randomly, they see potential of the internet
as a substitute and how it facilitates new entrants.
Through this scenario, we will demonstrate how to
implement the proposed framework to devise an e-
business adoption reference models for SMEs in this
country. This scenario alludes to some of the
Merkatos critical factors for digital enacted
businesses adoption - summarized in Table 1.
Table 1: Merkatos’ CAFs Analysis over Cross-Industry
Digital Elements.
This situational analysis of Merkatos external
context is complemented by SWOT analysis in Table
2. By coupling the inside and outside state of affairs,
Merkatos envisioned the business motivations and
depicted the strategic options. Table 3 presents the
industry generic digital-value drivers’ reference
catalogue. The catalogue heat-map signalling the
readiness gaps, whereas, Green mean Merkatos owns
supporting capabilities, or competences, or resource
for a specific value driver. Yellow mean Merkatos
resources, capability, and competence to be enhanced
to realize a specific value driver. Red mean Merkatos
important digital-value drivers in which an SME is
required to acquire the supporting competences,
Merkatos Context
CAFs
CAFs Categories
Social Technological Economic Political
CAFs Digital Elements
Stakeholders
(people)
Low
technology
literacy.
Growing
internet access
Low income. Adoption ETA.
Social
networking.
Digital
consumers
Mobile banking
High inflation
rate
Organization
(business)
Growing
internet access
High inflation
rate.
Adoption of
ETA.
Connected
partners
Data and
content
p
roviders
Information
(set of data)
People network
effect
People share
information
o
p
enl
y
Data privacy
enforcement by
ETA
Adaptive pricing
Technology
(cloud, IoT,
etc.)
Business usage
of cloud
storage.
Lower Marginal
costs of digital
assets
Social network-
based solutions
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capabilities, and resources. Grey generic industry or
business context’s digital-value drivers.
Table 2: Matching of CAFs with its Related SWOTs to
Develop Digital Strategy.
Figure 2: Merkatos E-Business Motivation Model.
Figure 3: Merkatos' E-Business Digital Strategy Model.
Table 3: Merkatos' Industry Digital-Value Drivers’
Catalogue.
Figure 4: Merkatos' E-business Model Diagram.
Table 4: Merkatos' Value Stream Definition.
Table 5: Merkatos' Value Stream Decomposition.
MerkatosDigital Strategic Options to
Reduce Cost
CAFs Digital Elements
(People, Business, Data, Cloud)
Related Weaknesses
(W):
- Personnel (employees)
with limited digital
skills;
Related Strengths (S):
- Expertise in multimedia
production;
- Knowledgeable of digital
content management;
- Competent in social media
platforms
CAFs Digital Elements
(People, Business, Data, Cloud)
Related Opportunities
(O):
- Socially networked
people;
- Internet-connected
businesses;
- Low publishing costs
Digital OW Strategy:
- Collaborate with
Internet marketers to
publish digital ads.
Digital OS Strategy:
- Develop a digital content
marketing channel.
- Provide a market access
channel for 24/7
availability.
Related Threats (T):
- Low technology literacy;
- The high cost of data
services;
Digital TW Strategy:
- Partner with operators
for SMS marketing.
Digital TS Strategy:
- Develop a social media
channel targeting local
subscribers only.
Merkatos Digital-
Value Drivers
BMC Components
Value
proposition
Customer
segments
Revenue
streams
Channels Customer
relationships
Key
partners
Key
resources
Key
activities
Cost
structure
CAFs
Digital
Elements
(Instances)
people
Social
network-
based
solutions
Digital
consumers
Digital
access
points as a
channel
Social
network-
based
customer
relationships
People
network
effect
business
Business
network-
based
customer
relationships
Connected
partners
Cost
reduction
by digital
make-or-
buy
flexibility
cloud
Social
Media
Marketing
Lower
Marginal
costs of
digital
assets
data
Customers
with high
Information
demands
Adaptive
pricing
Customized
channels
Better
knowledge
of customers
Data and
content
providers
Data as a
resource
Data
Management
Name Advertising Online
Description Delivery of product/service promotional information on social media channels.
Stakeholders Retail store wishing to advertise and social media subscribers (End-consumers)
Value People can see product/services Ads online
Value stream
stages
Description Participating
stakeholders
Entrance
criteria
Exit criteria Value item
Plan marketing
campaigns
The act of defining
the strategy,
objectives, and
metrics of the
Marketing
campaigns.
Retailer,
Marketing
Manager,
Finance Clerk
Customer
looking for
Advertising
plan.
Customer
Engage with
Merkatos
Ads
campaign
plans
available to
the customer.
Build a social
media channel
The act of building a
social media
marketing channel
like Facebook pages
Retailer,
Marketing
Manager,
Content
designer
The customer
selects the
Ads plan.
Customer
Approves
channels
Social media
channel
available to
customer
Manage
marketplace
Ads
The act of producing
digital content,
uploading, and
posting the Ads.
Retailer,
Marketing
Manager,
Content
designer
Customer
Approves
channels.
Customer
approves Ads
contents
Online Ads
visibility
Engage with
end-consumers
online
The act of promoting
Ads and interacting
with social media
subscribers
(consumers)
Social media
subscriber,
Marketing
Manager,
Content
Promoter
Customer
approves the
publishing of
Ads’ contents
Consumer
engages with
Ads contents
Consumers'
brand
awareness
rate.
Measure and
feedback
The act of evaluating
the marketing
channel’s
performance and
Optimization.
Marketing
Manager,
Retailers,
Content
designers
Consumer
engages with
Ads contents
Customer
receive
Feedback
Customer
intimacy rate.
Advertising Online
e-Business Reference Modelling Framework for SMEs: An Enterprise Architecture based Approach
697
Figure 5: Merkatos E-Business Value Stream Map Coupled
with a bundled Reference Digital Value.
Table 6: Merkatos' Value Stream and Capabilities
Mapping.
Figure 6: Value stream and capability mapping.
The implementation description is core and begins
with the translation of the Merkatos Key activities of
the E-business model into value streams. The value
proposition for end-consumers is providing
customers with local products and service
information anywhere at any time namely –
Advertising Online. For instance, one of the
Merkatos’ Key activity is Managing social media
described in (APQC, 2019) – which requires upskills.
This new capability is coupled with Merkatos extant
capability – Development and management of media
campaigns, also described in (APQC, 2019). These
Figure 7: Merkatos' Reference Information Map.
Table 7: Merkatos E-Business Processes vs. E-Business
Systems Map.
core capabilities were translated into the following
value-adding activities:
1) Plan marketing program
2) Build a social media channel
3) Manage marketplace Ads
4) Engage with consumers online
5) Measure and feedback
As Merkatos E-Business Profile is concluded and
contain the artefacts from the e-readiness analysis to
the implementation descriptions, the senior managers
can engage on the next stage challenges – selecting
the e-business applications to adapt and deploy.
5 DISCUSSION
In this research we adopt an ex-post evaluation
strategy (Venable et al., 2012, 2014) to analyse how
our framework could support the design and
implementation of a manageable SME’s e-business in
line with the criteria proposed by Putra & Hasibuan
(2015), and in the context of design science paradigm.
We had limitations in applying our proposed
E-Business
Information
Entities
Plan
marketi
ng
campaig
ns
Build a
social
media
channel
Manage
marketplace
Ads
Engage
with end-
consumers
online
Measure
and
feedback
E-Business Systems
1…N
Planning
systems
Ads
campaig
n plan
Payment
systems
Payment
Social media
channels
Online Ads
visibility
trends
Customer
Relationshi
p System
Consumer
awareness
rate
Customer
intimacy
rate
Advertising Online
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framework in a real-business scenario; however, we
are analysing over the created reference models in the
previous section to depict the proposed framework
usability and suitability.
Following, we analyze our proposal over the
created artifacts also regarding former reported SME
limitation in the baseline research (Putra & Hasibuan,
2015). We recall these limitations in summary as –
“inadequate provision of practical tools for SMEs in
decision-making and implementations,” described as:
Lack of an established set of critical adoption
factors of e-business for SME serving as the
source of indicators in signalling the readiness of
SMEs to adopt e-business.
Trivial adoption of e-business applications
regardless of SMEs profile based on an
assessment of their capacity to adopt a specific e-
business application or readiness to adopt e-
business.
Need for a well-designed implementation model
that is adaptive to technology and receptive to the
nature of SME, serving as a roadmap towards the
transformation of SMEs.
What Become Possible for e-Business Profiling.
We recognize that having an established set of drivers
and hinders from SME, for instance, operating in the
US market, could be a misleading reference for an
SME’s e-business adoption initiative in Mozambique.
However, possessing practical tools and a common
methodology guiding the assessment of the diverse
industry and business context CAFs became the
pragmatic approach. So, SME in any industry and
business context, could identify the relevant e-
business adoption factors (drivers/hinders) over
common cross-industry digital key elements of any
moment in time of a SME’s lifecycle.
Also, the SMEs’ readiness profiling based on
strategic vision over relevant digital hotspot of its
industry and business context demonstrated the
feasibility of our proposal. Though, SMEs could be
prevented from trivially adopting any existing
technology/e-business applications before they had
the motivation and understood both technical and
financial capabilities, regardless their ICT maturity
level. Additionally, by approaching a well-structured
implementation paradigmE-Business Architecture,
SMEs can roadmap a technology-independent e-
business adoption process.
6 CONCLUSIONS
In this work, we exhaustively demonstrated how to
approach e-business adoption through EA reference
modeling. Also, we have evaluated the utility of the
proposed design solution against leading criteria, and
our conclusions regarding the baseline framework
proposed by Putra & Hasibuan (2015) is suitable to
couple managerial techniques and BA techniques to
support the design of e-business for SMEs. Moreover,
by integrating the two disciplines to build an e-
business framework could contribute to enhanced
decision-making for the e-business adoption process.
In short, we have achieved our objective of
providing a framework that supports the development
of SMEs e-business in diverse business contexts and
industries by integrating managerial and EA
practices. This achievement is fundamentally
sustained by 1) identification of knowledge base
conceptual models regarding e-business reference
modelling and adoption pattern from existing work;
2) analyzing the adaptability of baseline conceptual
models to suit the generic managerial frameworks and
EA practice components; and by 3) proposing a
framework and supporting tools. Henceforth, the
main contributions of this research are:
Scholars have a detailed, well-designed, and
technology-independent reference modeling
approach to support the SMEs’ e-business adoption
pattern description. Through extended common
managerial analysis tools for critical adoption factors,
facets become possible to identify an SME’s specific
drivers and hinders related to industry or context
transversal digital elements. For readiness
perspective, SMEs' readiness profiles are explicitly
related to context adoptions factors guiding the
depiction of SME change motivations and business
model innovations. And industry or context drivers
are cataloged for SMEs e-business adoption
referencing purpose. Moreover, a fine-grained e-
business architecture approach through SMEs value-
adding activities is demonstrated, independently of e-
business solutions being deployed at any stage of the
business lifecycle.
Practitioners engaging in e-business implementation
have an instrument to apply their competencies on
situational analysis to depict digital business value
drivers, and digital strategy and e-business models.
Also, to boost the understanding in how digital
service and technologies are deployed to realize
business goals. Moreover, they are benefited from a
new approach to handle SMEs’ e-business
architecture analysis and modeling, which is EA
architecture tools compatible.
e-Business Reference Modelling Framework for SMEs: An Enterprise Architecture based Approach
699
ACKNOWLEDGEMENTS
This work was supported by national funds through
Fundação para a Ciência e a Tecnologia (FCT) with
reference UIDB/50021/2020 and by the European
Commission program H2020 under the grant
agreement 822404 (project QualiChain).
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