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      <title-group>
        <article-title>Designing for Innovation: Using Enterprise Ontology Theory to Improve Business-IT Alignment</article-title>
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      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Philip Huysmans</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Kris Ven</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Jan Verelst</string-name>
          <email>jan.verelstg@ua.ac.be</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>University of Antwerp</institution>
          ,
          <country country="BE">Belgium</country>
        </aff>
      </contrib-group>
      <fpage>76</fpage>
      <lpage>77</lpage>
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      <p>In today's economy, innovation plays an increasingly important role in the
strategy of organizations. Managers therefore need to understand and be able
to manage the innovation process. It has been noted that \[a]t a time when so
much attention is given to innovation and entrepreneurship, it is rather pathetic
that a deep understanding of the process is lacking. It is no wonder that rms
and governments have di culty trying to stimulate (and manage) innovation
when its fundamental processes are so poorly understood." [2, p. 3].</p>
      <p>In our research, we aim to contribute to a more e ective innovation process
by focusing on the structure of organizational artefacts which allows the
realization of innovations. This research direction is framed in the emerging scienti c
area called Enterprise Engineering. Enterprise Engineering builds on existing
approaches including organizational theory and information systems sciences in
order to purposefully design organizations. The ability to adopt innovations
depends largely on the ability to realize changes to the organizational artefacts.
There is consensus in literature that information technology (IT) is an
important enabler for the implementation of innovations. Most enterprise architecture
frameworks acknowledge the importance of aligning the information
technology (IT) infrastructure with the enterprise architecture. Therefore, the recent
research e orts in the enterprise architecture domain are very relevant for
innovation research in enterprise engineering.</p>
      <p>
        This paper, which was originally presented at the ICITIE conference [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ],
contributes to insights regarding three important issues in the enterprise
architecture domain. First, organizations are competing in increasingly volatile
environments. In such environments, no long-term competitive advantages can
be obtained, and organizations need to strive towards realizing a succession of
short-term competitive advantages. Therefore, the enterprise and its supporting
IT architecture should be well-aligned, in order to be able to quickly adapt to
changing environments.
      </p>
      <p>Second, many enterprise architecture frameworks have a descriptive, rather
than prescriptive nature. Although such frameworks are able to describe the
original and the revised structure of the organization, it remains unclear why
the applied changes resulted in a desirable outcome for the organization. This
insight is essential to be able to repeat the architectural process in the future.
Consequently, using these frameworks does not contribute to the understanding
of the innovation process.</p>
      <p>Third, it has been observed that enterprise architecture frameworks
constitute a heterogeneous collection without clear integration, and that their
theoretical foundations are currently still limited. A common theoretical foundation at
the organizational and information systems level could improve alignment, and
could provide prescriptive rules for the architecture. In our research, we propose
modularity as a theoretical foundation. Modularity has already been used at
both the organizational and information systems level.</p>
      <p>As argumented by Enterprise Engineering, a systematic and scienti c
approach for constructing enterprise architectures should contribute to a solution
for these three issues. Therefore, we analyze in this paper a case study of a
successful enterprise architecture project with these issues in mind. In the case
study, we focus on a European organization that is able to realize substantial
improvements in implementing innovations by aligning its IT and enterprise
architecture. In both architectures, the same modular structure is used to create
loosely coupled entities. At the IT level, the application portfolio consists of
loosely coupled applications which are based on high-level, stable business
activities from the enterprise architecture. This approach allows business and IT
sta to implement changes more quickly, whereas IT used to be considered as
a bottleneck in innovation projects. More speci cally, we identify advantages
in the areas of alignment, change assessment, reuse, and improvements to the
development process. Notwithstanding the successful outcome of this enterprise
architecture project, the approach taken by the organization strongly relies on
the heuristic knowledge of employees: no guidelines or principles are used to
identify the appropriate granularity of the modules. As a result, the
repeatability and reproducibility of their approach is limited, and no explicit knowledge
about the alignment is gained. In order to develop a better understanding of
the process elements which can lead to the identi ed results, a more systematic
method is proposed.</p>
      <p>Based on the insights from practice, we therefore attempt to contribute to a
more systematic method to construct enterprise architectures. We take a design
science approach by repeating the enterprise architecture project using the
Enterprise Ontology theory. Our results show that the model created by following
the Enterprise Ontology theory was very similar to the model created by the
organization, which is a desirable result. The main advantage of Enterprise
Ontology is that it provides a more repeatable and reproducible result and that the
resulting models are more evolvable. This result shows that scienti c research in
Enterprise Engineering can be relevant and applicable.</p>
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