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Alignment of Business Strategy and Information Technology in Special Economic Zone using Enterprise Architecture

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Abstract and Figures

In recent years, companies engaged in co-working space have provided services to entrepreneurs, startups, freelancers, developers, businesses, and their teams through information technology, increasing their massification and access. These are generally provided based on the government's objective to meet industry 4.0 requirements. Still, the differences in digitization and the lack of standard e-service complicate the balance in their business. On the other hand, enterprise architecture can be used for standardization, convergence, and interoperability in e-business. Moreover, it allows a holistic perspective to view the information technology resources of co-working space businesses and align them with their business strategy. This research aims to list some gaps between existing business architecture with enterprise architecture in co-working businesses in Batam, Indonesia Special Economic Zone.
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In this way, local businesses can relate the motivational aspect to the processes,
services and technologies that support it. Moreover, within the framework of e-
administration initiatives, it can be a path to follow to achieve standardization,
convergence, and interoperability in local businesses.
Although the development of EA in the co-working space business is a topic that is
rarely discussed, work that is oriented towards achieving standardization, convergence, and
interoperability has been found.
Making an EA reference composed of a set of models and general construction
principles for creating architecture will enable local businesses to address ICT integration
issues. Moreover, these EA references are reusable with possible advantages for work
efficiency, reducing errors, and speeding up solution development.
This method is generally defined and then initiated to present an EA reference which
in this case includes additional services that the co-working business must provide in
Batam, Indonesia Special Economic Zone for stakeholders in accordance with up-to-date
Information Technology and can also be applied throughout the co-working business in
Indonesia.This article is organized as follows. Section 2 defines the need for enterprise
architecture. The method for the definition of a reference EA in section 3. In Section 4, the
development of Reference and Result. Finally, Section 5 presents the conclusions and
future research.
II. Review of Literature
2.1 Coworking Business
The key characteristics of co-working spaces are stated as following. The purpose is
to introduce and implement creative and boundaryless work, learning through collaborative
environment. The types of space are different for every space environment; office
equipment's such as rentable desks with open space, large meeting rooms, private offices,
and coffee corners. The model of this space can be rented daily, weekly, or monthly and
also provide the membership for the usage of meeting rooms (Sanny et al., 2019).
Spurred by technological, social, and economic forces, today's co-working spaces are
born out of several generations of private and public sector-sponsored business stimulation
efforts. As the latest evolution of more than 50 years of innovative workplace
development, co-working spaces are the most influential type among all alternative
workplaces, including incubators, accelerators, and innovation centers (Zhai, 2017).
Table 1. Types of Innovation Workspace
(Rus & Orel, 2015) The active community in the co-working space is formed
through the growth of strong bonds, based on trust built among members. This strong bond
and mutual trust encouraged the process of information, ideas, and knowledge sharing.
This bond was built because of continuous facilitated interaction and shared interest
between members.
(Bouncken et al., 2016) The co-working space is one of the emerging business
models that have gained much exposure in Asian countries, and the business itself has
gained a lot of profits and advantages. The main focus of this business model is to build
bonds with one another. Another factor that would predict whether the business model will
prevail or not is the literal location of the co-working space. If it is close to the center of
the city and supported by the right marketing tactics, there is a high possibility that the co-
working space will be successful.
2.2 The Need for Enterprise Architecture
Enterprise Architecture (EA) refers to the definition and representation of a high-
level view of an enterprise's business processes and IT systems, their relationships, and the
level of standardization and integration, concerning these elements, throughout the
enterprise. EA underpins decisions relating to data, applications, IT infrastructure
(technical and human), and management responsibilities. It also informs and enhances
strategies (business, operations, and IT) that enable organizations to accomplish their
objectives. Yet, despite the allure that has often accompanied EA initiatives (especially
from those in the IT sector), operations managers still struggle to capitalize on the
promised benefits touted by IT executives and enterprise architects (Hazen et al., 2017).
EA can be comprised as a complete description of an enterprise. It describes the
essential business artifacts and their relationship. Therefore, EA contains a set of
principles, methods, and models that help enterprises design and realize its organizational
structure and the fitting business processes, information systems, and infrastructure
(Goerzig & Bauernhansl, 2018).
Besides this very general characterization of EA and its tasks, there are many
different definitions and EA frameworks with different scopes and focuses. Important
distinguishing features are the supported enterprise layers. There are five possible layers.
In the strategic layer, EA defines products and interaction with suppliers and customers. In
the organizational layer, the architect elaborates business processes, information flows and
roles. The integration layer considers applications, services and interfaces. Whereas the
software layer defines data structures and software components, the IT infrastructure layer
works out hardware and network components as well as software platforms. Most EA
approaches focus on organizational, integration, and software layer. The first well-known
approaches were the Zachman framework and ARIS. Today, TOGAF is the most common
framework (Goerzig & Bauernhansl, 2018).
III. Research Method
Five stages are defined for the development of a reference EA (Gallegos-Baeza et al.,
2021):
Definition of the Organization:This stage aims to explore the vision and mission of
Co-Working Space Business in Batam, Indonesia Special Economic Zone for developing
the reference EA. To review the law for the possibility of obtaining the vision and mission
that it establishes for these organizations. to review the vision and mission of every
involved organization that possesses them. motivational aspects of the organization The
vision and mission allow the extraction of the objectives and priority tasks of the kind of
organization to consider. For example, organizations belonging to a specific region of the
country.
Selection of the Minimum Services of the Organization: The minimum services that
need to be covered by the target organizations are selected in this stage. All the potential
services must be identified from sources such as laws, government documents, and
organizational documents to achieve this. Once the potential minimum services have been
established, criteria for selecting the set of services to be modeled must be defined. These
criteria can be, for example, the impact of the service in the organization itself or its
relevance for the target population. The reference EA should cover the services that can be
considered as essential for the organization.
Selection of the Framework for the development of the EA: The objective of this
stage is to select a framework for the development of the reference EA. To do this, several
aspects should be considered, such as experiences of using the framework in the target
context from literature, available documentation of the framework, requirements for its
application, and experiences of those who will implement the EA. If those who will
implement the EA do not have much experience with any framework, the ease of use and
the available documentation become determinant aspects in the selection.
Adaptation of the EA Framework: This stage involves studying and adapting the
selected framework for constructing the reference EA. To achieve this, the applicability of
all of the steps or activities established by the framework must be analyzed, while also
selecting the deliverables of each of them. This can be simpler if those who will develop
the EA have experience using the framework. Otherwise, a considerable amount of time
will have to be dedicated to studying the framework for its adaptation. In addition to the
above, the notation used for modeling the deliverables and the reference EA must be
defined.
Development of the EA Reference: The reference EA is developed in this stage. This
is done based on realizing all the appropriate steps or activities of the selected framework.
Based on this, the established artifacts and deliverables and the final model of the reference
EA are generated.
This method requires to be systematic in its development. Moreover, it must be
considered that this will be a reference model for the organizations to develop their own
EAs based on it. Every organization can then incorporate new elements that reflect their
particular reality in the different layers in their own EA. For example, this can be to
achieve coherence regarding the elements that the organization already has implemented.
IV. Results and Discussion
Using the 5-stage method defined in the previous section, the municipal reference
EA for Chilean municipalities has been developed. The realization of each stage is
presented in the following subsections.
4.1 Stage 1. Definition of the Organization
This stage consisted of the generic definition of the co-working business through the
establishment of a generic vision and mission and the business objectives that derivate
from them. This process is shown in Figure 1 and 2.
The vision is a general image of what an organization is or wants to be. On the other
hand, the mission indicates the essential activity of the organization and con- tinues its
course tied to its vision (Walters & Plais, 2017).
In the co-working business context of Batam, Special Economic Zone, there is no
generic vision or mission, so these have been constructed based on the information
contained in their webpages.
Based on this generic vision and mission, the following business objectives are
derived:
a. To satisfy the necessities of the local community through the provision of e-services.
Particularly, the minimum e-services established by the country.
b. To possess a modern management, applying continuous improvement in e-services
through technology for the benefit of the community.
c. To promote the interaction of the co-working community using e-services.
Figure 1. Reference EA Development Method
Figure 2. Definition of the Organization
4.2 Stage-2. Determination of the Minimum e-Services of Coworking Business
The e-services that can be define and describe in co-working business are shown in
Table 2. (Al-Hashem, 2020).
E-Service innovation refers to the service process or service product that is depend
on advanced information and telecommunication technology or systematic techniques to
provide benefit to both the customers and service producers, and can be new solution in the
customer interface, new channels of distribution, new models of business operations with
business partners, new organizational architecture, managing and organizing customer
services in novel ways, adopting new technology in the business processes and improving
the overall performance through human resource management (Al-Hashem, 2020).
Table 2. E-Service Innovation Definition and Description ContructDefinition and
Description
Contruct Definition and Descri
p
tion
E-Service Innovation
(ESI)
The process of creating and adding value to services
electronically.
The process of creating new business models of services
that lead to customer satisfaction in order to differentiate
the organization from others in the market space.
Service innovation is considered a transformation process
of how the service is desi
g
ned, develo
p
ed and mana
g
ed.
Based on multiple sources, the e-services that can be implemented through
coworking business were identified, as shown in Figure 3.
4.3 Stage 3. Selection of a Framework for the Development of the Reference EA
For the selection of the framework for developing the EA, aspects such as the ease of
use, provided documentation and experience of the stakeholders in relation to the
framework, must be considered. Moreover, taking into consideration that, as mentioned in
Section 2, TOGAF has been the most utilized development framework in the municipal
context in recent years (Gallegos-Baeza et al., 2021) it has been selected as the framework
for the development of the reference municipal EA. Once the framework has been selected,
it is important to study it to apply it correctly. The tasks of this stage are shown in Figure 4.
4.4 Stage 4. Adaptation of the Framework for the Development of the EA
In this stage, the selected framework must be adapted by determining the phases,
activities and artifacts that are of use for the development of the reference EA. In this case,
the TOGAF framework provides the Architecture Development Method (ADM) for the
development of an EA (The Open Group (2018b) TOGAF, n.d.). However, before using
this method, it was necessary to analyze the applicability of its phases and establish the
deliverables, artifacts, and modeling notations appropriate to the use context.
TOGAF covers the development of four related kinds of architecture, which are
commonly accepted as subsets of an EA: (i) the Business Architecture, which is occupied
of the business strategy, governance, organization, and key processes of the organization;
(ii) the Data Architecture, which establishes the logical and physical data structure that an
organization possesses; (iii) the Application Architecture, which identifies individual
applications to implement, as well as their interactions and relations with the business
processes of the organization; and (iv) the Technology Architecture, which analyses the
software and hardware capabilities that are required to support the implementation of
business, data and application services. The TOGAF-ADM considers nine phases for its
application (The Open Group (2018b) TOGAF, n.d.). Out of these, the following were
considered applicable for the current process, as shown in Figure 7: Prelimi- nary,
Architecture View (A), Business Architecture (B), Information Systems Architecture (C),
and Technology Architecture (D).
4.5 Stage 5. Development of a Reference co-working business EA
(Gallegos-Baeza et al., 2021). Once the minimum e-services and the framework for
the development of the EA and its adaptation were selected, the reference municipal EA
was developed. Figure 5 presents the phases of TOGAF- ADM that were performed, as
well as the input and output of each of them. The following subsections present the views
that will be the base for developing the reference EA, for each of the phases of TOGAF
and the main layers of ArchiMate presented in Figure 4.
Figure 3. Stage-1. Determination of The Minimum E-services of Coworking Business.
Figure 4. Selected TOGAF-ADM Phases
Figure 5. Stage-1. Development of the Reference Coworking Business EA
V. Conclusion
The realization of this work has provided two main contributions. Firstly, the
development of a reference business EA for coworking business, that considers a set of
minimum e-services that every co-working should provide. This reference business EA for
coworking business in special economic zone could be of use for business to evaluate the
breaches that their EAs possess compared to the reference EA, as well as to address the
problem of incorporating ICT while considering a holistic view. Moreover, this reference
EA could be reutilized with the advantage of allowing to reduce the required work, the
errors and to accelerate the development of solutions. Also, this would allow obtaining a
more homogeneous situation among the various municipalities of the country regarding the
perceptions of community on service provision.
Secondly, the definition of a generic 5-stage method for developing reference co-
working business EAs based in a set of minimum e-services that any set of this kind of
organization must provide. The proposed method was defined and specified using the
TOGAF framework and the ArchiMate modeling notation.
Regarding future work, three lines are highlighted: (i) the realization of a guide that
allows analyzing the breaches between the developed reference EA and the EAs that model
the current situation of the distinct co-working business; (ii) increasing the number of
performed case studies, covering co-working business of different types (size, geographic
location, income, etc.); and (iii) studying the applicability of the proposed met.
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Preferences In Choosing A Co-Working Space
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  • Shintia Putri
Lim Sanny, Sabrina Melita, & Shintia Putri. (2019). Preferences In Choosing A Co-Working Space. 54(4).
Using the ArchiMate ® Modeling Language with BMM TM
  • E Walters
  • A Plais
Walters, E., & Plais, A. (2017). Using the ArchiMate ® Modeling Language with BMM TM. August, 41.