Implementation of Enterprise Architecture Planning for Business

Modelling of Franchise Companies

Ina Sholihah Widiati

, Widiyanto Hadi

and Handoko

STMIK Cipta Darma Surakarta, Veteran street, Notosuman, Singopuran, Kartasura, Sukoharjo, Central Java, Indonesia

Keywords:

EAP, information technology planning, franchise companies

Abstract: In the era of the ASEAN Economic Community (AEC) all business people are required to be able to maintain

the existence of their business. Various strategies are carried out by business actors to maintain their business

and still gain confidence in the public eye. The strategies are one of them is the field of Information

Technology. The development of the world of information and communication technology demands business

actors to take an active role in utilizing information technology to support their business. This applies also to

the franchise business model. XYZ Company is a culinary business unit that uses franchise concept to develop

its business. The use of information technology is the company's priority to win the competition. So that

information technology planning is very important to be done in order to get the right application for the

company. In this research using Enterprise Architecture Planning (EAP) to make planning of information

technology development in XYZ company. By using EAP obtained business modeling, data architecture,

application architecture and technology architecture that are right for franchise companies. There are nine

applications that can be developed in XYZ companies that in the future can support XYZ company to survive

and win the competition within the scope of the food franchise business.

1 INTRODUCTION

The development of franchise business in Indonesia

is currently very rapid. Almost in all areas of business

have used this franchise system to grow their

business. Even not only in the sector of consumer or

culinary needs that use the franchise system, but

business services, retail and education has also

penetrated the franchise system. Business franchise in

Indonesia has attracted the attention of consumers and

businessmen. With the concept of franchise, a person

who wants to own a business does not need to start

from scratch, because there are already good concepts

and systems in the franchise business so that business

actors do not need to pioneer the business from

scratch. Business franchise is usually a business that

has been tested quality and trademark so that the level

of public confidence or consumer high. This is what

causes the franchise business is growing rapidly,

especially in Indonesia.

In the era of the ASEAN Economic Community

(AEC) all business people are required to be able to

maintain the existence of their business. Various

strategies are carried out by business actors to

maintain their business and still gain confidence in

the public eye. The strategies are one of them is the

field of Information Technology. The development of

the world of information and communication

technology demands business actors to take an active

role in utilizing information technology to support

their business.

Strategy in the field of information technology

one of them in the form of strategic information

system. Strategic information system is the

information systems used to implement corporate

strategy. If the information system is strategic in an

organization, then the strategic management process

should not only be understood and followed by

business managers only, but also by managers of

information technology systems (Jogiyanto, 2005).

XYZ Company is one of culinary business

especially beverage. XYZ Company has utilized

information technology for operational and product

marketing. XYZ Company is aware of the importance

of information technology to be able to improve the

business position so that various information

technology strategy is done so that information

technology becomes one of the strategic weapon of

the company. Information technology architecture

planning is very important in a company's strategic

3066

Sholihah Widiyanti, I., Hadi, W. and Handoko, .

Implementation of Enterprise Architecture Planning for Business Modelling of Franchise Companies.

DOI: 10.5220/0009946730663073

In Proceedings of the 1st International Conference on Recent Innovations (ICRI 2018), pages 3066-3073

ISBN: 978-989-758-458-9

plan, especially in the field of information

technology. The information technology architecture

will help developers of information systems and

information technology in designing and

implementing the system. With good planning, there

will be no overlap of information systems and

information technology.

The research that has been done by Vienna

Witanti et al (2016) resulted in information

architecture based on Enterprise Architecture

Planning (EAP) which includes data architecture,

application architecture, technology architecture in

fulfilling requirement of system and information

technology most right now and in the future. The

result of information technology architecture based

on Enterprise Architecture Planning (EAP) is to

describe the relationship between organizational

goals with information system and support the

information system architecture and information

technology organization plan to achieve the vision

and mission of Geophysics Climatology

Meteorology Agency.

Research conducted by Emmanuel Nowakowski

et al (2017), states that this paper presented the results

from a series of expert interviews and a structured

literature review on the topic of Enterprise

Architecture planning. One of the results of the expert

interviews was that the interviewees had a different

understanding of EA planning. Another result was

that the comparison and analysis of scenarios

happened mostly visually in a non-structured way.

Additionally, requirements for EA planning were

derived and presented. Moreover, it could be seen that

practitioners are struggling with challenges in the

field of EA planning .

The research done in this XYZ company uses

Enterprise Architecture Planning (EAP) framework.

According to Sutono (2015), Methodology Enterprise

Architektur Planning (EAP) is based on the enterprise

business model, thus alignment between information

systems and business can be achieved. Data driven

and dependent also underlie EAP so that information

systems integration can be managed for enterprise

level. The integration of information systems aims to

reduce barriers between organizational units, reduce

duplication of effort, reduce costs, improve employee

productivity and facilitate information sharing and

collaboration essential to improving customer service.

This research will produce an information

technology architecture plan that will be used as

guidance in information system and information

technology development. The planned information

system and information technology is expected to

become XYZ's strategic weapon in winning the

franchise beverage competition and expanding its

franchise region.

2 LITERATURE REVIEW

The business process model describes the functions

associated with business activities, which include

input, control, output, and mechanism / resources used

from the activity. This model is used to understand

how existing labor and resources are used to make

products or services for corporate customers. Also to

identify repairable parts, be made more efficient and

reengineered, and provide an understanding of

whether Systems / Applications can be automated or

streamline the process of human or machine

interaction, by identifying system requirements.

While the business model is a process for

defining business. The usefulness of a business model

is to provide knowledge about enterprise business in

a consistent, comprehensive and complete manner so

that it can be used to define architectures and

implementation plans. In enterprise architecture

planning, business modeling is carried out in two

separate parts, the initial business model, followed by

a complete business model. There are three steps of

activities to develop the initial business model,

namely:

1. Document the organizational structure.

2. Identify and define business functions.

3. Document the initial business model and then

distribute it and present it to the business community

to get input and comments (Surendro, 2009).

The business model can be used as an instrument

that can be used as an additional component that is

used as an analytical tool to provide value to the

community. With the analysis in the business model,

it can create a new value chain, which can be used as

one of the advantages in providing value in a dynamic

environment. The addition of components in the

value chain using business model components can

create a complex business climate and create value in

the community (Kristiani, 2015).

Value Chain Analysis, is a tool to understand the

value chain that forms a product. This value chain

comes from activities carried out, ranging from raw

materials to the hands of consumers, including after-

sales services (Shank, 1992). Value-chain analysis is

a strategic analysis tool used to better understand

competitive advantage, to identify where customer

value can be increased or reduced costs, and to better

understand the company's relationship with

suppliers/suppliers, customers, and other companies

in the industry . Value Chain identifies and connects

various strategic activities in the company (Porter,

1985). The purpose of the value chain analysis is to

Implementation of Enterprise Architecture Planning for Business Modelling of Franchise Companies

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identify the value chain stages where companies can

increase value for customers or reduce costs.

Decreasing costs or increasing value added can make

companies more competitive.

Value chain analysis can be an analytical tool to

see the role of IS / IT in the company's business

processes. In the value chain analysis is re-analyzed

key activities in business processes related to other

entities that are outside the company, such as

suppliers and customers (external value chain) and

relationships between entities within the company

itself (internal value chain).

The study by Paul P. Tallon gives a conceptual

model that describes that the Strategic intent for IS /

IT and Management practices have a direct influence

on the value chain that leads to the company's

performance.

3 METHOD

Data collection in this research using interview and

observation method. Interviews were conducted with

XYZ business owners and franchisors. The

observations were conducted at XYZ company

headquarters and several franchise outlets. From the

two methods of data retrieval obtained data to be used

in research. These data, among others, business

processes, corporate strategies, corporate objectives,

enterprise systems and information technology that

has been used.

For the preparation of information system and

information technology development plan in this

research used EAP (Enterprise Architecture

Planning) framework. This EAP framework makes it

possible to get a detailed overview of business

architecture, data architecture, application

architecture and technology architecture that is

essential in the guidance of information system and

information technology development.

Enterprise Architecture planning (EAP) is the

process of defining the architecture of the use of

information in support of business and the plan to

implement it. EAP is a methodology developed to

build enterprise architecture and part of the information

system planning process that can achieve long-term

information system mission (Spewak, 1992).

EAP adopts the first two rows and three columns

from the Zachman framework and generates blue-

print from data, applications and technologies. EAP

is a methodology based on business drives and data

drives because:

1. A stable business model (free of organizational

boundaries, systems and procedures) is the

foundation for enterprise architecture.

2. Data is defined first before defining the application.

3. Data dependence determines the circuit in

implementing the application system. EAP focuses

on defining data architectures, application

architectures and technology architectures for the

entire enterprise rather than design for specific

purposes (Sutono, 2015).

Enterprise Architecture Planning has 7 (seven)

main components that show the stages to determine

and plan the implementation of information system

architecture. These seven main components are

grouped into 4 (four) layers (Spewak, 1992).

Figure 1. Enterprise Architecture Planning (Spewak, 1992)

Each layer reflects the sequence and way the

activity is carried out. Explanation of the EAP

component in Figure 1 is as follows:

1. Layer 1 (starting position)

Planning initiation: preparing for the implementation

of the EAP project (such as: creating a work plan,

ensuring management commitment and others).

2. Layer 2 (Current position)

a. Business modeling: gathering knowledge

about business and information used in

running a business.

b. Systems and technology today: determine the

current systems and technologies as a basis for

long-term migration plans.

3. Layer 3 (Position desired in the future)

a. Data architecture: determine the main types

of data needed to carry on business.

b. Application architecture: determines the

type of main application needed to manage

data and supports business functions.

c. Technology architecture: determines the

technology platform needed to provide an

application environment that manages data

and supports business functions.

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The arrow in this layer means that these three

architectures are determined sequentially starting

from the data architecture, then the application

architecture and finally the technology architecture.

4. Layer 4 (How to achieve it)

Implementation plan: determine the stages of

application implementation, implementation

schedule, and propose a clear path to migrate from the

current position to the desired position in the future.

Differences in enterprise architecture planning

with other traditional information systems planning

are:

1. Architecture can be found in a functional business

model. The enterprise architecture planning activity

begins with the question "What business does the

organization do" and not "What systems do enterprise

executives need?" Thus, it can be said that enterprise

architecture planning is business driven planning.

2. Enterprise architecture planning defines data

before application. So the first step to do in this

activity is to identify what data is needed to support

the business, and then define what applications are

needed to manage the data.

3. Enterprise architecture planning uses data

dependency to determine implementation plan. The

priority of application implementation in enterprise

architecture planning is based on data dependency,

which means that the application development plan

will prioritize application development that creates

data instead of using data. This application

development approach is called data-driven planning.

4. Enterprise architecture planning takes into account

short-term operational activities and also focuses on

the organization's long-term strategy of using data

and technology to support the business (Surendro,

2009).

4 RESULT

The results of the research have been done in the

business model, data architecture, application

architecture and technology architecture so that it can

be a reference in the implementation plan of

information system and information technology

development.

4.1 Business Modeling

This business modeling stage compiles and builds a

knowledge base on business and information that

businesses are currently using. Business modeling

also allows for a consistent, comprehensive and

complete model of business enterprise that can be

used to define architectures and implementation

plans.

The business model is depicted in a value chain

that refers to Michael E. Porter's theory. According to

Porter (1985) activities in the organization are

grouped into two major activities, namely the main

activity and supporting activities (Porter, 1985).

The business model of the XYZ company is

depicted in Figure 2 using the value chain model.

Figure 2. Value Chain

Value chain model in figure 2 obtained three main

activities and four supporting activities. Main

activities include production, distribution and

marketing. While supporting activities include

customer service, designer, ICT and human

resources.

Production activity at XYZ company is an

important activity in business process. The company

will continue to improve the quality and quantity of

production so that the business processes of the

company continue to run smoothly. Supervision and

quality control remain to be done so that the resulting

product meets the production standards and the same

in all franchise outlets. Production activity becomes

the main activity in the company because without the

production company will not run.

Distribution activity is the activity of distributing

products from the center to franchise outlets.

Distribution activities in the franchise business is a

distribution system to the consumer in the distribution

where the brand owner gives the right to individuals

or companies to carry out business with brands,

names, systems, procedures and ways that have been

defined previously within a certain time covering a

certain area.

Marketing activities in XYZ company is an

activity promoting products in this case beverages by

using various media to reach consumers and franchise

partners. This marketing activity in addition to

promoting the product, also a bridge for entrepreneurs

who want to become a franchise partner company

XYZ.

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Customer service activity is an activity as a forum

for consultation for partners in running the franchise

business. Question and answer facility about XYZ

franchise and various tips and tricks become part of

this activity. This activity is a support activity of

running business process in XYZ company.

Designer activity is a supporting activity of the

company to support the marketing part in promoting

the product. Designers create creative designs to

make products and brands more attractive to the

public. Not only design for advertising purposes, but

also product design, beverage packaging, booths,

catalogs, and so on.

ICT activity is an activity supporting the IT

department to support the company's information

technology. XYZ Company already uses information

technology in all its activities. The ICT part is

responsible for the development of information

systems and information technology to support

business process activities so that the company will

win the competition in the culinary business world

with the franchise system.

Human Resources Activities is an activity related

to human resource development. In the franchise

business, the franchisees will also get training that is

useful for themselves as well as business

development.

As for the do marketing strategy process, the main

data is marketing and to support the main data this

process uses data market and management. Market

data is data that contains the target market so that it

will be able to support the marketing process to carry

out its functions to the fullest. The marketing process

also involves data management because the

marketing process of one of its targets is to capture

franchise partners who certainly need data

management. Data management itself is generated

from the management process managed by the owner

and manager. The existence of processes and data

management itself is to support the franchise business

model so that it can grow its business by capturing

many franchise partners and consumers.

4.2 Data Architecture

The data architecture identifies and defines the main

types of data that support business functions that have

been defined in the business model. The data

architecture contains the data entities, each entity has

attributes and relationships with the data entity. The

data architecture stage is said to be successful when a

conceptual data model is generated that describes the

details of the data so that it is sufficient for planning

purposes.

Figure 3 below shows the data matrix before a

conceptual data model is formed.

Figure 3. Data Matrix

Figure 3 is a matrix of data and process relations.

This matrix is the basis for conceptual data modeling.

There is a description of "U" and "C" in the matrix. In

the matrix "U" states "Use / Update" which means

using data. "C" states "Create" ie can create data.

Judging from the data matrix there are thirteen

processes and thirteen related data. In the production

process can create product data and use packaging

data to perform its function. The product design

process can create packaging data and can use data

outlets for outlet design and marketing data for ad

design creation. Likewise with other processes and

data corresponding to "C" and "U" in the data matrix

depicted in Fig. 2.

As for the do marketing strategy process, the main

data is marketing and to support the main data this

process uses data market and management. Market

data is data that contains the target market so that it

will be able to support the marketing process to carry

out its functions to the fullest. The marketing process

also involves data management because the

marketing process of one of its targets is to capture

franchise partners who certainly need data

management. Data management itself is generated

from the management process managed by the owner

and manager. The existence of processes and data

management itself is to support the franchise business

model so that it can grow its business by capturing

many franchise partners and consumers.

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4.3 Application Architecture

The purpose of the application architecture is to

define the types of key applications needed to manage

data and support enterprise business functions. The

application architecture is not a system design or

system requirement analysis, but it is the definition of

what applications are needed to manage data and

provide information for users to do business.

Figure 4 below is a proposed chart of information

systems and information technology to be developed.

Figure 4. Aplication Architecture

Figure 4 shows the application chart to support the

advancement of business with the franchise business

model. There are nine applications that will be

developed in XYZ company.These applications

include production monitoring information system,

product information distribution system, financial

information system, partnership information system,

information system assets, website, games, market

analysis information system, and ad based augmented

reality.

The franchise business model desperately needs a

fast, precise and real time information and

communication service to support the smooth running

of business processes. So the application developed

must also support these needs, Applications that will

be developed on the company XYZ web-based and

mobile so that will facilitate users in accessing

information.

Production monitoring information system is a

web and mobile based application that functions to

monitor production activities from raw materials to be

ready for distribution.

Product distribution information system is an

application that is able to regulate and monitor the

distribution line from the production warehouse to the

franchise outlets. The distribution team will report

product and item data that has arrived at the outlet into

the information system. The existence of this

information system will facilitate the marketing and

management departments in overseeing the product

distribution lines.

Financial information systems are applications

that can facilitate the financial part of managing

financial statements. The increasing number of

franchise outlets, of course, the tasks of the finance

department are more and more, so it requires the help

of information systems to help ease their duties. The

profit sharing system still applies to these franchise

companies like other franchise companies. So that the

finance department still has to regulate the financial

system regularly. In addition, the collection of

financial statements of cash inflows and cash

outflows is also the responsibility of the finance

department. So that the existence of the financial

information system will be able to assist the finance

department in carrying out its duties properly.

The partnership information system is an

application that facilitates interaction between

management and franchise partners. This application

provides chat features and business training classes

from management to partners. So that the partners

will easily get business assistance through this

application.

An asset information system is an application for

data collection of all assets owned by a company. The

application allows the management section to control

central assets and those that will be given to franchise

partners.

The website can be a trusted source of information

about companies that can be accessed by anyone and

anywhere. Prospective customers and potential

partners can search for information about products

and companies to the partnership system on this

website. Aside from being a source of information,

the website also serves as a branding of corporate

brands so that it will increase public confidence in the

products sold.

Some mobile-based games that can be played on

Android or iOS will also be developed. The growing

popularity of mobile phones will certainly be an

opportunity to introduce brand products and branding

through games of all ages.

Market analysis information system is a decision

support system that functions to analyze the target

market. This application makes it easy for the

marketing department to create strategies to expand

its market.

Ad based AR is an ad based on augmented reality

technology. This AR technology can insert certain

information into the virtual world and display it in the

real world with the help of equipment such as

webcams, computers, Android phones, and special

glasses. Users in the real world cannot see virtual

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objects with the naked eye, to identify objects needed

an intermediary in the form of computers and cameras

that will insert virtual objects into the real world.

Advertising using this technology is expected to be

branding the brand and making the brand increasingly

known to the public.

4.4 Technology Architecture

The purpose of the technology architecture is to

define the types of key technologies needed to

provide an enabling environment for applications, on

previously prepared application architectures, in

managing data and supporting business functions.

The technology architecture is not a detailed

requirement analysis or network design but is the

definition of the type of technology that will support

the business by providing a data sharing environment.

4.5 IS/IT Mapping

Mapping of information systems and information

technology serves to look at IS / IT in XYZ

companies. Table 1 shows mapping using McFarland

Strategic Grid.

Table 1. IS/IT Mapping

Strategic High Potential

1. Partnership

2. Market analysis

1. Ad based AR

1. Production

monitoring

2. Product

distribution

3. Financial

4. Aset

1. Website

2. Games

Key Operational Support

Based on Table 1, the proposed information

system and information technology will be mapped

by placing it in the McFarland Strategic Grid

quadrant. The following is a description of the

mapping.

a. Strategic, indicates that the application is in a

critical position to the success of the

organization's business. Applications build (or

change) the way organizations do business, by

providing competitive advantages.

b. Key operational, indicating that the application is

built to sustain business operations and help avoid

any deficiencies. Applications in this quadrant are

must-have applications for every organization to

survive in business competition.

c. Support, indicates that the application can

improve the efficiency and effectiveness of

management, but is not an application that must

be owned by a business or type of application that

creates competitive advantage.

d. High Potential, indicates that applications may

create new opportunities for the business for the

future, but have not been proven.

After mapping, an information system roadmap is

carried out which is a road map to be the direction or

reference used for the development of strategic

information systems. On the roadmap will be made a

direction to develop information systems and

information technology in the medium term for the

next three years from 2019 to 2021.

The next three years will be known which

information systems need to be built to gain

competitive advantage and help companies achieve

their goals. The reference for making the roadmap is

based on the priority table and McFarland Strategic

Grid mapping. Urgent or highly prioritized

information and technology systems will be mapped

in the initial year. In addition to the McFarland

Strategic Grid mapping, information systems in the

operational key quadrant receive prior

implementation priority.

In McFarland Strategic Grid mapping, the

information system in the operational key quadrant

becomes a priority. In the operational key quadrant, it

is expected that the information system can

strengthen internal conditions, especially daily

operational activities. The second priority is a

strategy quadrant that can provide information that

supports strategic decisions and provides long-term

benefits. The third priority is the support quadrant to

improve the efficiency and operational effectiveness

of the company. The final priority is the high potential

quadrant because in the near future the information

system does not provide added value.

5 CONCLUSIONS

Based on the analysis that has been made can be

concluded that in the development of information

systems and information technology on the franchise

business model is needed information based on user

data needs. Business modeling in a company is very

important for the identification of information needs

so that it will produce an appropriate architecture on

the needs of users.

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Based on the results of the conclusions made from

this study, the suggestions that are expected will later

be useful in the development of further research. The

suggestions include:

a. Use of other approaches to compare with existing

research.

b. Proposed information and technology systems are

more detailed by adding stakeholders and

proposed features.

c. Utilizing a questionnaire to determine the

information system needs from the user side.

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