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Procedia Computer Science 22 (2013) 820 827

17th International Conference in Knowledge Based and Intelligent Information and Engineering Systems KES2013

E-Business Process Modeling Issues: From the Viewpoint of

Inter-organizational Process Efficiency and Information Sharing
Kayo Iizukaa*, Yasuki Iizukab, Chihiro Suematsuc
a

School of Network and Information, Senshu University, Kwasaki, Kanagawa, Japan

b
Department of Science, Tokai University, Hiratsuka, Kanagawa, Japan
c
Graduate School of Management, Kyoto University, Kyoto, Japan

Abstract
E-business process modeling is an important factor in developing schemes of e-business. In order to develop schemes of ebusiness in or among firms, they have to reform their business process and information systems, considering changes that
enable the companies to achieve new value. In this paper, the authors overview related works on developing e-business
schemes, consider issues concerning e-business process modeling issues especially for Japanese companies bearing in mind
their management style, and propose the idea of a modeling tool for supporting inter-organizational process flow adjustment.
2013
2013 The
The Authors.
Authors. Published
Published by
by Elsevier

Elsevier B.V.
B.V.
Selection and
and peer-review
peer-review under
under responsibility
responsibility of
Selection
of KES
KES International.
International
Keywords: e-business process; business process modeling; process knowledge repository

1. Introduction
For more than a decade, the word e-business has been an important topic both in business and IT. There
are various definitions of the word e-business. The term e-business was popularized as a slogan for a
conscious strategy launched by IBM. The day before IBMs e-business ad campaign appeared on Oct. 7, 1997,
the Wall Street Journal said that Louis Gerstner, IBMs CEO, wanted to position IBM as a cutting-edge
company and shake off for good its image as a stodgy, if reliable, supplier of computers to giant corporations
[1]. E-business enables organizations to reduce costs, increase demand, and create new business models [2].
In order to develop schemes of e-business in or among firms, they have to restructure their business process
and information systems, considering changes that enable the companies to attain new value. In this paper, the
authors overview related works on developing e-business schemes, deliberate issues in e-business process
modeling especially for Japanese companies considering their management style, and propose the idea of a
modeling tool for supporting inter-organizational process flow adjustment.

1877-0509 2013 The Authors. Published by Elsevier B.V.

Selection and peer-review under responsibility of KES International
doi:10.1016/j.procs.2013.09.164

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2. Literature Review
Related works on developing e-business schemes can be classified as into certain categories as follows:
implementation management
To realize the successful development of e-business schemes, implementation management is an important
issue. Jansen et al. pointed out the difference between business process modeling and e-business process
modeling [3], and mentioned that it is important not to forget the lessons learned from business process
engineering, and in addition mentioning project management risks. Chauang and Shaw proposed a roadmap for
e-business implementation [4]. Bendoly and Schoenherr analyzed the implementation process of ERP systems
from the viewpoint of implications for B2B systems [5].
z E-business investment
Like other implementations of new technologies, investment performance is an important concern in
management. Koholi et al. studied the payoff of IT investment in e-business environments [6], and Amit and
Zott considered value creation of e-business [7]. Certain metrics will help in analyzing the success of their ebusiness investments. Riggins and Mitra proposed a framework providing a methodology for mapping ebusiness applications within the proposed frameworks, which then can be used to generate three different types
of metrics that should be considered in evaluating e-business strategic initiatives [8].
z E-business process modeling (modeling methods, ontology for modeling, and modeling knowledge
management)
E-business process modeling is important in the sense that process modeling is the process of developing
schemes of e-business. Dufresne and Martin investigated how well various process models support e-business
[9]. Kim and Ramkaran analyzed best practices in e-business process management extending a re-engineering
framework [10]. Basu and Kumar pointed out workflow management issues in e-business [11].
Osterwalder and Pigneur constructed and outlined an ontology (rigorous framework) for e-business models
based on an extensive literature review, and insist that the understanding and use of e-business models is
essential in an increasingly dynamic and uncertain business environment [12].
Modeling knowledge management for modeling e-business is important in the sense that it would help
ensure the feasibility of new processes. Xirogiannisa and Glykasb proposed a method of intelligent modeling
of e-business maturity [13].
z E-business technology acceptance
A basic technology acceptance model (TAM) was proposed by Davis, which is a model of how users come to
accept and use a technology [14]. The model suggests that a number of factors influence their decision about
how and when they will use it when users are presented with a new technology. Bhattacherjee applied this
model to e-commerce [15]. Zhe et al. focused on an empirical study on e-business adoption [16, 17, 18].
z E-business strategy framework
As for e-business strategy, Li and Chang proposed a holistic framework of e-business strategy [19].
z E-business execution knowledge management system
The knowledge management system for e-business can be classified into knowledge management for ebusiness process modeling and knowledge management system for e-business execution. As for the ebusiness execution system, Malhotra considered knowledge management for e-business performance [20].
z E-business

In this paper, the authors focus on e-business process modeling issues and knowledge management for
modeling, especially for Japanese firms or companies, or global companies that have subsidiaries in Japan. Ebusiness process modeling is based on business process modeling methods. Related works on business process
modeling can be classified into hierarchical business process modeling methods (e.g., IDEF [21] and the SCOR
model [22]) and non-hierarchical business process modeling methods (e.g., the Sanno-dai Shiki flowchart [23]
and the Japan Management Association (JMA) flowchart [24]) [25]. Non-hierarchical modeling methods such

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as the Sanno-dai Shiki flowchart, the JMA flowchart, and the NOMA flowchart are major business process
modeling methods because they enable people to trace flows from the starting point to the end point with a
finger, and it is easy to share information when discussing it face to face, and they are thus suitable for a
bottom-up-style organization. By this feature, Japanese companies can realize effective bottom-up-based
business process improvement.
However, it is sometimes difficult to maintain business processes effectively because they are not usually
managed as structured components, and this causes difficulty in standardization of the business process. Some
Japanese companies have used widely spread business flowcharts (not containing hierarchical layers) on sheets
of A0 size, for drawing up their business processes. For some Japanese companies, it is difficult to think about
top-down layered business processes, and this situation sometimes makes it difficult to develop e-business
process modeling schemes. Corresponding to this issue, the authors propose a modeling tool to support interorganizational the interorganizational process flow adjustment described in the following chapters.
3. Business Process Modeling Issues for Japanese Companies Considering Globalization
3.1. Characteristics of Traditional Business Process Improvement in Japan
When discussing the history of business process improvement in Japan, it is necessary to consider what has
been referred to as Japanese-style management. The lifetime employment system and labor participation
in management are two of the major characteristics of Japanese-style management. Quality circle (QC)
activities have been conducted on these conditions, and they contribute to improving the quality of Japanese
products. Not only to improve the quality of products, each employee observes the business process, and keeps
making improvements where possible.
Business process improvement used to be undertaken in a bottom-up rather than a top-down style. SouiKufuu (a Japanese word) is one of the main keywords when discussing business process improvement in Japan.
It means creative originality and ingenuity. Each motivated and skilled employee in a production line or backoffice keeps improving the business process in their own way to make it more efficient. The accumulation of
Soui-Kufuu results have become a kind of intellectual property. These are the reasons that the non-hierarchical
business process modeling method has been preferred. By using this kind of chart, employees can share
process flow information with each other. Also, recognition of ingenuity can be considered as one of the
reasons that they tend to prefer custom-made software.
3.2. Impact of Environmental Change
As mentioned in the previous section, traditional (but after the 1950s) Japanese-style management and
Japanese-style business process modeling methods worked well and proved their effectiveness. However, the
environment that Japanese companies are facing has changed drastically. For example, a decrease in sales due
to shrinking of the domestic market requires companies to make efforts to reduce costs in order to maintain
profits. Some companies have had to transfer production overseas in order to reduce labor costs. Because of
this change in the environment, companies have had to adapt in ways such as the following:
y change business processes to realize enhancement in cost efficiency
y change business processes to realize integrated business processes corresponding to corporate marriage or
enterprise integration within domestic or global
y improve information system operation efficiency (using packaged software is one option)
y improve system maintenance efficiency
y enhance information systems to enable analysis of business data to support management decision-making
y show agility in responding to environmental changes

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Taking account of these issues, in the next chapter the authors propose a modeling tool to support interorganizational process flow adjustment.
4. Modeling Tool for Supporting Inter-organizational Process Flow Adjustment
Considering the issues described above, the authors propose a business process modeling method that is
hierarchically layered but in which it is possible to trace flow from the starting point to the end point using a
finger, at a detailed level, as well as an inter-organizational (including group firms) adjustment activity. Our
proposed tool is not exclusive to us alone, but it makes the existing tool more effective, especially in the case of
inter-organizational process flow adjustment. It contains a business process knowledge management function
with three knowledge categories.
4.1. Requirements for the Tool
The requirement for the modeling tool to support inter-organizational process flow adjustment can be
described as follows;
y Each employee can recognize and accept the process flow of the main business processes: the process of
the part of the business for which they are responsible, and the process of other sections are connected by
a detailed process layer, and employees can discuss the process while tracing it with a finger. By these
functions employees (end users) and information system staff can communicate easily and help the
adjustment process effectively.
y Process components (hierarchical groups) can be easily seen: this function helps to maintain business
process efficiency and also helps in standardizing business processes.
y The effect and influence of business process change can be seen by sections (from the management view
and the employees view): by this function, relocation of human resources can be optimized from the
viewpoint of overall process optimization.
4.2. Overview of the Tool
The overview function and specification of the modeling tool for supporting inter-organizational process
flow adjustment can be described as follows:
y By opening up the higher layer process of the hierarchy, the lower layer process is revealed: by this
function, the business process can be seen from the management perspective, and system maintenance
efficiency will be improved.
y The lower layer process (production line and back-office level used by end users) is connected and
available to look through by scrolling and scaling the chart on the screen: by this function, end users can
discuss the process while tracing it with a finger.
y Detailed information, such as that used in traditional Japanese business process modeling methods, can be
retained: by this function, business process improvement/re-engineering project failure caused by
misunderstanding of To-be business process by end users will be solved.
The image of this tool is described in Figure 1 and 2.

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Section D Section C Section B Section A

Fig. 1. Image
I
of our modeling tool for supporting inter-organizational process flow adjustment (Layers)

Fig. 2. Our modeling tool for supporting inter-organizational process flow adjustment (Expanded process layer)

4.3. Business Process Knowledge Management Function

In order to maintain the business process effectively in an environment of rapid change, a continuous
improvement (Kaizen, originally a Japanese word) scheme would work well. Kaizen is a method that has been
used in the Japanese automobile industry for a long time, but is now used in many companies over the world.
It was developed in order to adjust to environmental change [27]. Jun et al. defined the concept of process
knowledge and classified it into three types: process template knowledge, process instance knowledge, and
process-related knowledge [28]:
x Process template knowledge: The process template plus analysis and simulation information derived from
the template design phase. It also includes the history of the evolution of the template.
x Process instance knowledge: A set of process instance information along with process performance
measurement according to the evaluation criteria of a given enterprise. It also contains information about
environmental, resource, results, and so on.
x Process-related knowledge: A knowledge set created and used within a business process. General explicit
knowledge of traditional knowledge management is summarized from the point of the process perspective.
The data items of process instance knowledge are usually stored in databases such as business process
repositories. However, other knowledge groups, especially process-related knowledge (Table 1), would be
effective for continuous improvement, because use of a template leads to standardization of business
processes, and data items of process-related knowledge such as experts know-how (post analysis report,
problems and solutions, knowledge about customers and competitors, reasons for decisions taken in business

Kayo Iizuka et al. / Procedia Computer Science 22 (2013) 820 827

cases, and discussion protocols) are important keys to improvement. Therefore, the authors will
incorporate these data items into the prototype system of business process modeling tools.
Table 1. Components of process-related knowledge [28]
Structural Elements

Detail Elements

Description

Basic Knowledge Elements

Experts Know-how

Post analysis report, problems and solutions, knowledge about customers

and competitors, reasons for decisions taken in business cases, protocols
about discussions, reports about business cases, etc.

Expert

Information about experts for certain activities

(e-mail, phone number, office, etc.)

Elements Required for Using

Knowledge in Processes

Information from Users

(Know-how)

Used Information,
Execution Report

Materials referred by performers during activity execution time and reports

about activity execution made by performers after activity execution

Evaluation Information

Criteria, Value

Evaluation criteria, evaluation result of the process-related knowledge

4.4. Feedback from Potential Users and Future Research

The authors asked the opinions on the concept of our recommended modeling tools of potential users
(employees in information system sections, and end users engaged in business process improvement projects,
with several companies). Most of them gave positive feedback, because the tool offers both a sense of ease of
connection of the process to end users and high level process viewpoint. However, some potential users were
anxious about user interfaces, because some of them are used to using flow charts of blanket size (sometimes
A0 size). For ease of use, ability to trace the line of the process with ones finger is required, so the authors
will consider this point when developing our prototype system. There were positive comments about sharing
experts know-how linked with business processes, especially from business planning people. However, a
detailed survey of many experts is required.
There are some tools offering a knowledge base for business process improvement from the viewpoint of the
bottom layer of employees [30] [31]. Behind these tools lies the concept of promoting improvement triggered
by Kizuki (findings) in employees daily work. The tools that the authors are proposing can be coupled with
these tools. By this coupling, it will be possible to adjust the policy of top management to the findings of
actual work.
E. Abo described partnership patterns between companies as a chain mechanism. He named certain
coupling patterns, defined by H. R. Maturana (Fig. 3).
y
Integrated Coupling: This is the type of coupling whereby the autopoiesis of element systems belongs
to high level system. In other words, the autopoiesis of an element system does not work by itself, but
by the autopoiesis of higher level systems.
y
Network Coupling: Element systems are integrated, but this coupling does not work as autopoiesis.
Element systems form a rough network.
y
Mezzanine Coupling: Element systems form higher-level systems. Higher systems are units of
autopoiesis, and element systems are also units of autopoiesis.
Inter-organizational adjustment type classification considering the chain mechanism of companies as well as
industries (considering culture) is the next challenge for the authors.

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(1)Integrated

(2)Network

(3)Mezzanine

H igh Level System

High Level System

Element
System

Element
System

Element
System

Element
System

Element
System

Element
System

Fig. 3. Chain mechanism of companies (Source: Abo [32])

5. Conclusion
The authors have discussed e-business process modeling, regarding traditional business process modeling
methods and Japanese-style management. It is a fact that traditional Japanese-style management used to be
successful; however, the environment that companies are facing is changing, and the requirements for ebusiness process improvement or re-engineering are also changing, so that the business process modeling
method in turn needs to be enhanced, while maintaining the favorable characteristics of traditional methods. In
this paper, the authors have proposed a modeling tool supporting inter-organizational process flow adjustment
with a business process knowledge management function. This tool would respond to the requirements of both
management and employees and help the inter-organization adjustment process of business process modeling.
This tool also supports continuous improvement (Kaizen) of business processes by knowledge management
functions. As a result, e-business implementation issues and other issues affecting some Japanese companies
or subsidiaries of global companies in Japan mentioned in this paper would move toward being resolved. The
tool can be a bridge to structural modeling for some Japanese, support the utilization of accumulated know-how,
and achieve new value of the hierarchical modeling method (e.g., IDEF, ARIS [26], and DEMO [29]) at the
same time. Though there are successful cases of drastic change with top down approach such as [32] [33],
there are still many cases that companies are struggling against gaps mentioned in this paper. Though, it might
be the tool for supporting a transitional condition for the some parts, the tool the authors propose in this paper
might support some Japanese firms in a deadlock condition. For future research, the authors are planning to
determine the detailed specifications of the tool and have it evaluated by various users such as management and
end users.
Acknowledgements
This work was supported in part by the research grant of Senshu University 2013 (research subject: Study
on inter-organizational adjustment factors about business process re-engineering). We really appreciate the
companies who cooperated in the interviews.
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