Biology as a model

for Enterprise
Systems

HEAD BIOTECH May 2010 Oslo, Norway. 1

 Abstract

The umbrella term for integrating information systems into any form of organization is
usually referred to as enterprise systems. To be defined as an enterprise system the packaged
software application must actively take part in the execution of business processes. The
discipline has become an important issue to large businesses success, or not – especially in the
last decade. Chief Information Officer is the person in an organization that should be
responsible for the implementation of enterprise systems.

The main idea behind enterprise systems is to assemble business processes within an
organization and add value to them. Such business-oriented software applications can be
automated billing systems, online payment and online shopping processes. The variety of
business-oriented tools is many, but they all try to target processes that gives value to the
organization. The technical term to such services in modern enterprise systems is Software
Oriented Architectures (SOA’s). The artificial intelligence that orchestrates the services
within a system is referred to as Event Driven Architectures (EDA).

The ultimate goal to enterprise systems is to create a self sustained system that can make
decisions superfluous to human resources. Enterprise systems create competitive advantage in
two ways. First, the system increases value to the firm by sharing information within the
organization faster than without the system. This increases the quality of decision making
processes. Second, by automate low level managerial levels it frees resources within the
organization to do strategic analysis and to add wisdom to the company’s activities. One
phrase that is well known to describe the enterprise systems role is The Digital Nervous
System.

Almost all active cutting edge research in the field tries to better mimic solutions in the
biologic neural system to overcome the challenges enterprise systems meet. This could be a
clue that the human organism can function as a representative model for how enterprise
systems should perform in the future.

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 1. Introduction

1.1 The information Systems Strategy Triangle

To implement an enterprise system one must consider the corporate organizational structure
and strategies. It is necessary to weave the system into an already established environment, or
to take a totally new look at the organization with the intention of modifying it from scratch.
This scenario illustrates how devoted the corporate management should be when applying an
enterprise system into their corporation. In addition, the enterprise system itself is very costly.
One measuring of success is how well the planned enterprise system balances the Information
System Strategy Triangle (Figure 1). The design of an enterprise system should be driven by
the organizations business objectives, strategies, and tactics and using the firm’s business
mission as a guiding star [1 Page 23].

Figure 1. The Information Systems Strategy Triangle [1 Page 23].

Organizations that choose to implement enterprise systems can be governments as well as free
enterprises. Actually, one of the truly big markets to software vendors lies in governments
that needs better control systems over towns and countries. Earlier this year, IBM’s chairman
summarized the huge potential to enterprise systems into one sentence; “A smarter planet”
[2].
The ultimate measuring of success to enterprise systems is the competitive advantage it
creates in the free market. Thus, to consider the competitive landscape to a business when
designing its enterprise system should be important in contrast to governmental systems.
The position in an organization that is responsible for the system implementation to become a
success is the Chief Information Officer (CIO).

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1.2 Porters competitive advantages and processes

To better understand the task to the enterprise system it is important to have a clear picture of
a business value chain and businesses goals in the market. Many of Michael Porters books
are used in the literature as definitions of important terms and modules that should be
important to a business [3].
The definition of competitive advantage according to Porter is when an organization picks up
a resource, or a combination of resources, which results in outperformance of competitors. It
can be a result of getting access to natural resources, or to highly trained and skilled personnel
(Human resources) [4]. Human resources can produce added value to the organization. These
include better organizational processes, information, knowledge, etc; which can enable the
firm to conceive and implement strategies that improve its efficiency in the market [1 Pages
62-63]. Differences between a good, and a less good CIO (Human resource) – can have
tremendous effect on a firm’s competitive strength. This since when implementing the
enterprise system the tolerance for gain, or loss, in the market is slim.

Much of the potential in the enterprise system lies in handling the company’s processes in
new ways that can improve the organizations value chain [1 Pages 147-152] (Figure 2). The
concept of the value chain, introduced by Porter, divides a corporation into the discrete
processes that makes the landscape for the enterprise system to function. That is, the value
chain model represents the elemental building blocks that can create potential competitive
advantage if cleverly optimized (Figure 2). It does not only mean a
business’s internal value chain but also includes the businesses suppliers and customers;
Supply Chain Management (SCM) and Customer Relationship Management (CRM)
respectively (Figure 3) [5].
The so called hypercompetitive environment a business faces in today’s market is unique in
our time. To sustain competitive advantage in today’s markets demands much more intense
strategic thinking compared to 20-30 years ago [1 Page 30]. Consequently, the new situation
increases the strain on management to constantly come up with new strategies. Hence, time
saved by automate processes in a business is one of the most valued benefits from
implementing enterprise systems. In this way strategic thinking to cope with the ever
intensive market situation receives more resources.
The second main competitive advantage enterprise systems give is fast processing of
information by itself. Fast exchange of information enables a corporation to make quicker

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and more meaningful responses to changes in the market [6].
The general satisfaction to customers and suppliers are also affected by enterprise systems.
Any business partner will always note the difference between two businesses in how well they
handle daily routines. Slow processes will most certainly annoy, because it will indirectly
affect business partners competitive advantage as well [7].

Figure 2. Porter’s value chain model. The bottom silos cultivate primary activities. The
supporting activities over the silos processes the actions needed to drive the chain
forward [Modified from 8].

To break down the enterprise system into more manageable pieces would be into Service
Building Blocks (SBB). Many Service Building Blocks that are loosely coupled are
orchestrated into a system that solves Porters business processes. This service driven approach
results in systems that are referred to as Service Oriented Architectures (SOA’s). SOA’s are
based on Event Driven Architectures (EDA’s), which represent the “intelligence” within
SOA’s. That is, EDA’s makes the decisions to who service(s) to invoke, or not to invoke, in
the system [9] (More on this in 2.2 and 2.3 see also figure 5).

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Figure 3. The potential to an Enterprise system is to consider not only internal
processes, but also to include suppliers and customers (SCM and CRM respectively)
[Modified from 8].

A successful result of implementing an enterprise system are due to the total time-cost benefit
often referred to as either zero latency enterprise or the digital nervous system (See next
paragraph).

2 The vision of a “digital nervous system”

2.1 One main difference between neural systems and enterprise systems

As mentioned over, saved resources and fast decision making in a business, was the two main
competitive advantages enterprise systems added to a business’s value chain. It gives the
corporate the chance to respond earlier to lucrative opportunities in the market, while also
saving human resources.
Enterprise systems are at the moment issues for large organizations. A recent survey of
satisfaction levels relative to corporate sizes reports better satisfaction - the bigger the

HEAD BIOTECH May 2010 Oslo, Norway. 6

organization. Smaller organizations seemed to have problems taking benefit of the increased
information mobility within the company [10]. This survey indicates that the more
information that needed handling, the more advantage would be gained from implementing an
enterprise system. Interestingly, this trend can also be seen in evolutionary biology. The more
complex the organism the more need for a sophisticated evolved nervous system [11].
It is necessary to highlight one feature in the human neural system that cannot be found in
enterprise systems. The usage of different types of channeling hardware (Wirings) that
regulates channeling speeds itself, is not important to an enterprise systems success, yet.
On the whole, computer systems do still base their channeling on metal components that
provides approximately the same relative transportation speeds. In comparison, to biology
real-time speed is important – since neural systems have evolved several sophisticated
designed channeling hardware’s (E.g. different neuron cell designs).
The human organism can regulate channel speeds by at least four different mechanisms that
directly, or indirectly, involve the nervous system. They are neuron thickness, transmission
mechanisms between neurons, gas signaling and molecular diffusion signaling. Hence, to
channel data from point A, to point B, the human body uses at least four different hardware
types [11].
In contrast, the IT system must juggle with two channeling hardware types, the electric wire
and wireless signals. However, wireless equipment is foremost implemented to increase
comfort and practical issues, and not real time speed on the “hardware” itself [12]. A
disadvantage is a decrease in security due to easier invasion of the network.
This issue illustrates the difference in sophistication between the two systems, and thereby
the huge potential for future enterprise systems.

2.2 EDA’s and SOA’s have their analogues in the human nervous system

The human neural system has many different sized “modules” in its system that really is
crossroads to incoming dataflow. One such example is interneuron’s that can project
responses from the sensory system (E.g. the skin) into movements of the limbs (Via nerves to
muscles) (See figure 4). These interneuron’s are clustered centrally located in the spine [13].
This location is not a coincidence; it is well designed during the course of evolution.
When we are talking about integration of information we are essentially talking about system
architecture. Since, different types of information must be channeled to their respective

HEAD BIOTECH May 2010 Oslo, Norway. 7

engines in which they belong. This to add meaningful value to the business processes in the
value chain (See figure 5).
To the enterprise system Service Oriented Architecture (SOA) is a way of knotting relevant
information’s together and put out a system of “services” as a response. A “service” in this
sense can be seen as a small application, or program code that provides a service to the
system. Same kind of system can actually be argued to exist in the human neural system, even
though their respective services differ. At the core of SOA we find Event Driven Architecture
(EDA) which is the “intelligence” that underlies the actions within a SOA’s. EDA decides the
fate (Or bring life) to the services that are available to the system. Likewise in the touch-limb
movement example described over, the touch to the skin produces a service – movement of
the limb. What brings this service to life is the intelligence in how nerve transmission is
coupled and how its data is interpreted.
It was probably this similarity of orchestration in biologic and computational systems that
came to Bill Gates mind, and his audience, during his declared vision of the “The digital
neural system” in the late 1990’s [14]. Both systems also culminate in the same advantages to
the biologic organism and corporate business.

Figure 4. The service of moving a limb in response to a painful experience is “understood”

in the engine (Or in the interneurons) [Modified from 15].

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EDA’s analogue in the human system brings us to the binary nature of neuron cells.
Dependent on the incoming data to a neuron cell (E.g. an interneuron) it will respond by
propagating the incoming signal further into the nervous system, or not. The cell “fires” to
send the signal further, or do not fire. If a cell fires it is usually denoted as a “1”. If it does not
fire, it is denoted as a “0” [16]. This binary nature of the neural system is probably the
motivation behind Judith Dayhoff’s phrase “the digital neural system”, phrased in her book
Neural Network Architecture published in 1990 [14]. Thus, the fundamental logic between
neuron systems and EDA is illustrative. This is also widely accepted within the industry,
especially when it comes to cutting edge research within the field (See 2.4 Complex Event
Processing). As already mentioned, e.g. interneuron’s in biologic systems play key roles in
making decisions in response to incoming data [13]. Such functional places in the neural
system have their counterparts in the EDA’s called event processors or engines (See also
figures 4 and 5). For the neural system to be able to make predictable decisions there must be
a set of rules that controls a neuron cells response to incoming data. To the neural system
these rules are set during evolution. The same can actually be said about EDA, since they also
evolve essentially in a free competitive environment, as biology has.

2.3 Event-driven architectures

As already mentioned, at the core of Service Oriented Architectures (SOA’s) lies Event
Driven Architectures (EDA’s).
For any intelligent system to respond it needs an event, and something that is constructed to
process the event into a service. The initial event, produced outside the system, must be an
expected event to the system. It must be a notable thing that is in the systems interest. The
filtering of notable and not-notable events is a key issue to enterprise systems. In addition to
the incoming information flow to the enterprise system a downstream flow of events adds to
the initial events (Figure 6). For the enterprise to make intelligent decisions it need not only to
process the initial events, but also to analyze the result from relating the events to each other
and its downstream consequences (Complex event processing – See 2.4). Due to its many
challenges, EDA is divided into three phases (Or logical layers); Event generator, Event
channeling, and Event processing (See below) [17].

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EVENT GENERATOR
First, an initial event needs to be generated. For the event to enter the system it needs two
requirements. First, the event must be detected by the system. Second, the event needs to be
absorbed properly. That is, the initial event-format needs to be transformed into the systems
format standard for faster information processing between services. The detection and
absorption of an event is achieved via so called agents. Its biologic counterpart would be the
receptor. Whether the initial events format is variations in temperature, touch, sounds or light
they are transformed via receptors into the systems standard format, which are electric
propagations down neuron cells.

EVENT CHANNEL
After the initial event is generated, received and transformed into the standard-format, some
type of hardware is needed to distribute the incoming data within the system. As mentioned in
2.1 over, the biologic system uses at least four different methods to regulate channeling speed
itself. Enterprise system does not seem to have found the need to exploit such real-time-speed
regulation in its wiring system. Wireless channeling is an option. E.g. Bluetooth is one but
such channeling is not important to increase the performance to the system itself when it
comes to real-time-speed, but rather to make its usage more practical due to great distances
etc [12].

EVENT PROCESSING
This is where “the magic” takes place within both types of systems. Event processing belongs
in the field of control theory, which ultimately finds ways to produce the “intelligence” in
systems. It is an interdisciplinary field that combines mathematics and engineering to handle
dynamical systems in both biology and electronic computational systems [18].
The integration of independent information types, to create non-independent responses gives
a higher meaning to the system. Actually, this feature of producing something new and
meaningful from different parts, is essentially what qualifies to call something “a system” in
general [19].
Event processing is itself divided into three phase’s simple event, stream event and complex
event processing. Further, the service that results from event-processing takes us to the next
topic, Service Oriented Architectures, or SOA’s.

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Figure 5. The basic principal of “intelligence” is similar in ES and humans. The number of
inputs to the engine can range from 1 and up.

2.4 Service Oriented Architectures (SOA’s)

Event processing are places in the system architecture often referred to as engines.
These engines process either simple events, stream events or complex events to provide a
service to the system. All three levels of processing have their analogue in the human neural
system. It is best to divide both systems into two broad disciplines; none-conscious or
conscious services (Figure 6). That is, some services are meant to fulfill management
automatically (Autonomous) and other are meant to only enlighten the management for
further processing (Conscious). Of the three levels of processing the two first levels, simple
and stream event processing belongs to the none-conscious discipline and complex event
processing into the conscious discipline. However, in some cases both events can happen at
the same time. E.g. an incoming event in an enterprise system “tires low in stock” can trigger
two services; “Order product ID” and “Notify personnel”. Thus, two independent services
results, one to the non-conscious and one to the conscious part of the system. This can happen
in the biologic system as well. E.g. a person can respond in a non-conscious way to a strong
experience. At the same time, the total experience (Where, what and was) is processed in

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other parts of the system (Mainly in hypothalamus) for the episode to be recalled later to the
conscious mind if that person approaches the same type of situation again [11, 15]. Hence, the
stimuli (Or event generator) has been processed consciously and non-consciously.

3 Discussion

The functional framework that makes up an enterprise system is EDA and SOA’s. SOA’s
provides small services which can be reused, and are not that unique to the organization. In
contrast, EDA’s is the intelligence within the system and must be unique to make it suite an
organization well. Up to this point, this text has illustrated that it is in the EDA’s of the
enterprise that have its most similar counterpart in biologic neural systems. As mentioned in
2.4 EDA’s are based on three levels of event processing. These levels main responsibilities,
and their counterparts in the human neural system, are discussed below.

SIMPLE EVENT PROCESSING

It is most natural to think of simple event processing as a simple response(s) to a notable
event to the enterprise system. It’s most fundamental way of adding value to the system is due
to lag time avoidance in the real-time work flow. It is where a business is most likely to put its
“no-brainer” problems, and have a low risk of becoming a bad investment.
This levels analogue in the human system would be basic autonomous decision making such
as reflexes. Such as simple responses that keeps the organism from dying and at the same time
releases the conscious brain from workloads. In addition, the event can be saved, and/or be
channeled into complex event processing at a later stage.
In conclusion, to implement simple event processing is a safe way to add value, and hence
competitive advantage, to any business. Main security issues should be prioritized first
(Dangerous situation that can damage the business forever).

STREAM EVENT PROCESSING

In stream event processing the delegation of information to the most meaningful places in the
system is key. To make each engine in the system to respond with a meaningful service
without errors, it is important to not make the decision process more complex than is needed.
Thus, to correctly control meaningful flow of information to the right engines in the system,
will add value in two ways. First, it will gather meaningful information at the correct places

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within the system, enabling fast decision making at the semi managerial level. Second, it will
decrease the risk to make errors in each individual engine due to “intelligent” filtering of data.
Its analogue in the human system would be the well planned design behind the nervous
system which distributes information to the right places. This coupled to the rapid processing
of information optimizes the human body for multitask processing within the system. Hence,
it can also be seen as a prerequisite for accomplishing complex event processing (See the
following section).
In conclusion, to implement stream event processing is a semi-risk decision. However, it
depends on the size of the organization. It needs well planning for it to be optimized and to
add maximal gain to the value chain.

COMPLEX EVENT PROCESSING

Complex event processing is the most diffuse and hence challenging field to a system [20]. It
has probably the most to gain by using the human nervous system as a guide. I choose
to make two subdivisions of the word; complex event processing and too complex event
processing. However, it is hard to see an end to how complex a processing procedure can be.
Complex processing must consider spatial, temporal and causal relations between events
before it takes action in the form of a service. The basic point that should be considered is the
risk involved in making services. As a general rule, the more complex processing the more
uncertainty is the risk involved. Further, an action taken can also simply be to store reports of
complex events to be used in later analysis by the human management. To lower the risk in
the decision process they can add wisdom. Hence, too complex event processing should be
sent to the conscious part of the system before a final decision is made (Figure 6).
To push the limit to where to set probabilistic bounds in complex event processing (Where to
set the border between complex and too complex processing) new inventive methods are
constantly being developed. One area that is expected to give complex event processing a
push forward is within the field of machine learning and artificial intelligence. Many of these
systems are actually electronic simulations of biological neural networks [19]. E.g. IBM does
research with adaptive agents that can learn from experiences, to achieve so called enterprise
system optimization [21]. However, instead of optimizing each individual component they try
to optimize the interactions among systems components. IBM’s vision is to increase
system robustness (Lowering decision risk), self configuration, and to develop self-repairing
systems that can further expand the enterprises responsibilities.
2 years ago HP labs (Hewlett-Packard labs) presented a switching memristor [12]. It is

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develop to be used in nanoelectronic computing, logic memories, and neuromorphic. The
field of neuromorphic is perhaps the next step to take enterprise systems up to the next level.
At a nano scale, neuromorphic should become capable of mimicing actual neuro-biological
architectures, identical to how they work in the nervous system.
In conclusion, it seems that the industry agrees on using biologic systems as a model to
optimize enterprise systems [7].

Analogue to complex event processing in the human neural system

Due to the above we have also moved the analogue situation to the more complex, and
centralized part of the brain (See figure 6 to the right). The best analogue to complex
processing in the human system would most probably be to the hypothalamus.
However, this brain part needs to cooperate with other parts of the brain to achieve its role.
One of hypothalamuses unique roles is the processing of complex events and to later combine
and store them as one single episode, or as one experience [15]. Such complex fragmented
episodes are stored in a way that makes recall of the episode loosely coupled to the whole
episode (Now as an episode service). Only one, or a few events that are identical fragments in
the episode (or even only similar), can trigger the total episode to be recalled in the conscious
mind. E.g. to see an apple stalk, can recall a huge amount of related data. The reason the data
is functionally related is because the brain (Working in synchrony with Hypothalamus) has
made its own “business report” about everything that is important to know about an apple
stalk. First, it will recall the vision of an apple, which again could remain the person that he,
or she, is allergic to apples. The horror of getting ill after eating an apple could have amplified
that important bit of information before other issues knotted to the piece of information (The
apple). A second service, which is not as important to the individual, could be that apples are
not as expensive as oranges are.
Amygdale is a section in the brain that is important to the way hypothalamus handles
incoming information as a response to emotional responses. What actually happens is that
events which triggers emotion in the brain increases the chance of that episode to find its
place into the brains database (Emotional learning) [1].
The essential emotion center in a corporate would almost certainly be the stake holders of the
business. If earnings go down, without good reason, they will stress the management which
again will stress the remaining system to improve results. This concept is interesting because

HEAD BIOTECH May 2010 Oslo, Norway. 14

it reminds of how amygdale actually pushes the neural system to act in an intelligent manner.
In the future, the new development at IBM and Hewlett-Packard can be combined with a
continuous reward/punish system that can supervise their systems learning behavior directly
to corporate income. If the next generation of electronic systems can truly start to mimic a real
biologic neural system in function, to build modern SOA’s on top of such event driven
architectures could potentially truly make huge business to be driven by not many biologic
heads with wisdom.
In conclusion, complex event processing is one of enterprise systems most challenging
bottlenecks. However many new and exciting research studies should prepare the industry for
the next level of enterprise systems. It should not be a surprise that almost all active research
in the field tries to better mimic the biologic neural system in how to best process large
amounts of information. To use the human organism as a representative model for how
enterprise systems should perform, could very well become a standard in the future.

Figure 6. When the processing becomes too complex the risk increases for doing errors. In
such cases the overview picture is sent to management for further analysis.

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Conclusion

The umbrella term for integrating IS into any form of organization is usually referred to as
enterprise systems. To be defined as an enterprise system the packaged software application
must actively take part in the execution of business processes. The discipline has become an
important issue to large businesses success or not, especially the last decade. CIO should be
the person in an organization that should be responsible for the implementation of enterprise
systems.
The main idea behind enterprise systems is to assemble business processes to an organization
and add value to them. Such business-oriented software applications can be automated billing
systems, online payment and online shopping processes. The variety of business-oriented
tools is many, but they all try to target processes that gives values to the organization. The
technical term to such services are usually referred to as Software Oriented Architectures
(SOA’s). The artificial intelligence that activates the services within SOA’s is referred to as
Event Driven Architectures (EDA).
The ultimate goal to enterprise systems is to create a self sustained system that can make
decisions superfluous to human resources. Enterprise systems create competitive advantage in
two ways. First, the system increases value to the firm by sharing information within the
organization faster than before. This increases the quality of decision making. Second, by
automate low level managerial levels it frees resources within the organization to do strategic
analysis.
One phrase that is well known to describe the enterprise systems role is The Digital Nervous
System. Almost all active cutting edge research in the field tries to better mimic the biologic
neural system to overcome the challenges enterprise systems meet in Event Driven
Architectures. This could be a clue that the human body can function as a representative
model for how enterprise systems should perform in the future.

HEAD BIOTECH May 2010 Oslo, Norway. 16

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