Systemic Approach Towards Enterprise Functional Decomposition

Functional decomposition is the primary component of enterprise activities description and is often associated with business process architecture. It guides any business improvement initiative, enables to design the enterprise construction - organizational structure, IT- and HR-architectures, etc, as well as to deploy goals and strategies. The paper suggests the framework for enterprise functional decomposition, which includes the ontology for enterprise activities description, foundations and the process of functional decomposition. The suggested framework integrates the following features: alignment with goals decomposition, support for reference models and other reusable activities descriptions, recursive decomposition using a single activities pattern, value-based management and ISO 9004:2009 harmonization. The paper also describes framework implementation at Russian enterprises and IT tool to support the approach.