A reference model for extended extended enterprise
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In today's highly competitive, volatile and increasingly global manufacturing
environment, manufacturing companies are increasingly aware of the need for agility
and effectiveness at the supply-chain level, rather than simply at company level.
Business Process Re-engineering and the resulting emphasis on core competence has
influenced a move towards de-centralisation, flatter organisation structures and
increased use of "outsourcing". It has been said that it is now supply-chain versus
supply-chain and that this poses both opportunity and threat for SMEs.
While some work has been done in relation to developing the concept of integrated
supply-chains, relatively little has been published with respect to the concept of
"Extended Enterprise (EE)", the "highest' 'level of inter-enterprise integration.
This thesis provides a thorough review of literature with respect to supply-chain
integration and Extended Enterprise. Current practice is evaluated on the basis of the
literature review and an analysis of a questionnaire and some Case Study companies.
A detailed description of Extended Enterprise is provided and a conceptual reference
model is developed, with the aim of providing a strategic planning tool, which will
help organisations to identify the extent to which they operate as part of an EE. The
model is intended also to help organisations in their evolution towards more effective
operation within EE.
One of the key characteristics/enablers of EE is stated as the existence of an
organisational structure, which supports the effective identification, rationalisation
and deployment of core competence within an EE. An approach based upon the
concept of a "Process Breakdown Structure" is introduced and is evaluated in the
context of a Case Study Company.
The major contribution to knowledge lies in the bringing together of concepts from
Supply-Chain Management, Strategic Planning and Management, Concurrent Engineering, Project/Programme Management, CIM and Human Resource Management, into a reference model for EE. Contribution at a more detailed level is
provided by the development and illustration of an organisational structure based on
a Project/Programme Management approach that has the potential to support the
effective identification, rationalisation and deployment of core competence across EE.
Recommendationsfo r further work include long-term adoption and evaluation of the
approach by one of the Case Companies as part of its planned international expansion.