Enterprise Modeling As a Competitive Advantage

University essay from Uppsala universitet/Företagsekonomiska institutionen; Uppsala universitet/Företagsekonomiska institutionen

Abstract: This paper investigates the contribution of enterprise modeling to the emergence and sustainability of the firm’s competitive advantage using the theoretical model developed by Chandra S. Mishra (2017). Agility, alertness, knowledge integration and business model mechanisms have been identified as the main sources of competitive advantage. Four semi-structured interviews were conducted with experts and senior enterprise modeling consultants with diverse national and international experiences, based on which a qualitative content analysis was done. The study shows that enterprise modeling has an enhancing effect on corporate agility stimulating collaboration and effective communication among organizational members as well as enabling the company to exploit turbulence in the business environment through systematizing and facilitating change management. Enterprise models were also found to be effective for strengthening the firm’s structural capital through stimulating constant problematization of the business model, streamlining the organizational processes and increasing alertness about the procedural inefficiencies and automation potential. However, the understandability of the business model is found to be increased through enterprise modeling at the expense of reducing tacitness. Therefore, more research is needed to confirm the influence of enterprise modeling on the firm’s isolating mechanisms to investigate to what extent enterprise models should be considered as company secrets.

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