Enterprise Governance and DEMO Towards a reference method to guide the enterprise dynamics by addressing DEMO’s competence, authority and responsibility notions

The lack of an organizational competence that embodies the capacity to continuously restrict, from a holistic point of view, the enterprise design and operational freedom, leads to incoherence and inconsistency among the enterprise elements. The research aims to exploit how this organizational competence labeled enterprise governance (EG) can deal with this issue by using the enterprise ontological models produced using DEMO. For this purpose, the research brings forward the current state-of-the-art in the enterprise ontological modeling (in particular the Ψ -theory underlying DEMO), the governance themes and the systemic theories regarding the enterprise dynamics. The findings of the research conducted are depicted in a set of conceptual models and consolidated in a reference method for guiding the EG in defining a set of restrictions (normative outputs) by means of DEMO models. The method outlines the importance of the EG in addressing DEMO’s responsibility, competence and authority notions at the design level and ensuring their correct execution at the operational level. In this manner the enterprise can deal with ongoing organizational changes and security issues, while ensuring that when it enters in a dysfunction state the appropriate mechanisms are activated for the enterprise to recover to a new equilibrium state. The purposed method is applied and validated by using the ’DIAP inquiries direction’ practical case.