Abstract. Enterprises increasingly execute complex transformations, such as mergers and splits, chain redesign, sharing and sourcing, and the rationalization of products, processes and applications. Its consequences are seldom sufficiently timely and completely discerned, while this is essential for governing such a transformation. Already in a small example we can see why Enterprise Ontology, as defined in DEMO (Design & Engineering Methodology for Organizations) delivers a clear and valuable instrument for transformation governance. Especially DEMO's Construction Model, which is the most abstract ontological aspect model, combines high expressiveness with a high Return On Modeling Effort (ROME).Keywords: Enterprise Transformation, Governance, Enterprise Ontology, DEMO, Enterprise Engineering, ROME.
IntroductionHeraclitus' saying "The only constant is change" (500 BC) [13] certainly applies to enterprises 1 . We observe an increasing need to perform better in "profit -peopleplanet", especially in the recent economic crisis. Enterprise activities are shared, insourced, out-sourced, off-shored and back-sourced again. They split up and merge. After giving room for regional autonomy, application portfolio rationalization programs are executed. All these attempt to save costs, improve quality and increase agility, which should ultimately lead to unique advantages in customer intimacy, product leadership and operational excellence [31].The impact of such change-decisions is generally complex and large. Many stakeholders have to be reckoned with, the constraints and opportunities of laws and regulations have to be taken into account, and relevant parties in the chain need to be actively involved. The changes will not only affect products, processes and ICT 2 applications, but also the enterprises' economy and organization. Therefore, such changes call for a well-governed enterprise transformation. To this end, a fundamental 1 We use the term "enterprise" for any goal-oriented cooperative of people. 2 ICT stands for Information and Communication Technology.The original publication is available at www.springerlink.com Enterprise Ontology, as adopted in DEMO 3 [11], reveals the essential, deep structure of an organization. A series of case studies [e.g., 16, 22, 23] of real-life reorganizations, organizational splits, post-merger integration and application portfolio rationalization has been published, in which DEMO is the core modeling method to support decision-making. These studies also report a tremendous ROME (Return On Modeling Effort). We found particularly that DEMO's systematic and reproducible abstractions from the realization and implementation of organizations are beneficial. Taking OMG's EU-Rent Case [20, 18] as an example, we will illustrate the identified benefits and make plausible that applying DEMO provides the required understanding for intellectually manage enterprise transformations, and to do this in 10% of the time commonly used.The remainder of this paper is structured as follows. Section 2 categ...