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Foundations in Systems Integration
functionality, performances, and quality. The project is a socioeconomic entity
that devises a way to achieve an objective over a specified period within a
budget (e.g., in the case of product development and product integration).
Enterprise, business, and projects can be modeled, those models representing
the key measures of performance and the metrics for success.
Risk and Loss
Determining value can be thought of in terms of a certain amount of performance for a given lifecycle cost. To a first order, this is sufficient for integration. The subtleties of a second-order analysis include a definitive
characterization of risk and loss. Risk and loss are sometimes addressed
without an ontological framework to structure relations and to derive meaning. Hence, sometimes simple tables or diagrams are used to reflect the views
of key personnel as to what is a risk or what the consequences may be if a
problem is realized. Simple by their means and interpretation, the risk management guidelines followed by many people in government and industry
often incompletely characterize the insidious nature of what conspires to
harm people, products, and services (United States Defense Acquisition
University 2003).*
Generally, risk is a structural property of the interactions between objects,
whereas specifically, risk is inherent in the interactions involving the enterprise, business, and project. As stated by Kuwabara (2011) in discussing
social exchanges, referencing Molm et al. (2000), “risk is a structural property
of exchange . . . .” The business model must be true and faithful to all types
and significances of interactions, capturing all interactions to expose the
structural inherences and opportunities for risk.
Along with risk, enterprises face loss. We often think of opportunity or
peril in terms of risk and sometimes associate risk with a loss. That loss
could be monetary or social or some form of harm or loss of life. This book
characterizes loss in terms of a generalized loss function that attributes
EMMI losses to deviations from a target performance value (see Appendix
2). Further, not all losses are attributable to variance about a performance
target; some losses result from not having a target value (meaning that the
function was not provided and therefore had no performance value). By
determining the type and value of losses the business model can be evaluated in terms of its overall effectiveness in providing a reliable flow of products or services, support, and maintenance.
* A more comprehensive analysis of risk is taught and practiced in various universities
(Kujawski and Miller 2007).
Foundations in Systems Integration
functionality, performances, and quality. The project is a socioeconomic entity
that devises a way to achieve an objective over a specified period within a
budget (e.g., in the case of product development and product integration).
Enterprise, business, and projects can be modeled, those models representing
the key measures of performance and the metrics for success.
Risk and Loss
Determining value can be thought of in terms of a certain amount of performance for a given lifecycle cost. To a first order, this is sufficient for integration. The subtleties of a second-order analysis include a definitive
characterization of risk and loss. Risk and loss are sometimes addressed
without an ontological framework to structure relations and to derive meaning. Hence, sometimes simple tables or diagrams are used to reflect the views
of key personnel as to what is a risk or what the consequences may be if a
problem is realized. Simple by their means and interpretation, the risk management guidelines followed by many people in government and industry
often incompletely characterize the insidious nature of what conspires to
harm people, products, and services (United States Defense Acquisition
University 2003).*
Generally, risk is a structural property of the interactions between objects,
whereas specifically, risk is inherent in the interactions involving the enterprise, business, and project. As stated by Kuwabara (2011) in discussing
social exchanges, referencing Molm et al. (2000), “risk is a structural property
of exchange . . . .” The business model must be true and faithful to all types
and significances of interactions, capturing all interactions to expose the
structural inherences and opportunities for risk.
Along with risk, enterprises face loss. We often think of opportunity or
peril in terms of risk and sometimes associate risk with a loss. That loss
could be monetary or social or some form of harm or loss of life. This book
characterizes loss in terms of a generalized loss function that attributes
EMMI losses to deviations from a target performance value (see Appendix
2). Further, not all losses are attributable to variance about a performance
target; some losses result from not having a target value (meaning that the
function was not provided and therefore had no performance value). By
determining the type and value of losses the business model can be evaluated in terms of its overall effectiveness in providing a reliable flow of products or services, support, and maintenance.
* A more comprehensive analysis of risk is taught and practiced in various universities
(Kujawski and Miller 2007).