Business Agility And Process Frameworks Summary Ei
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Transcript of Business Agility And Process Frameworks Summary Ei
Business Agility Business Agility using using
Process FrameworksProcess FrameworksHerbert HeinzelHerbert HeinzelVice Chairman Value Chain GroupVice Chairman Value Chain GroupHH22O GmbHO GmbH
Overview
• Review our Primary Reference Model, VRM• What are the Business Needs for use of a Value Chain
Reference Model?• What have we learned so far?• How can VCOR be used?• Vision for Business Frameworks
VRM Value Proposition• Our VCG strategic imperative is to create an industry open standard
reference model for the value chain that gains wide acceptance and adoption.
– Coverage of all business domains and inter-company Collaboration– Support the ongoing evolution of business– Value Chain versus technology focus when introducing a new product to
the market or building a new supply chain
What the Value Chain Operations Reference (VRM) model enables:
– Integration of the three critical domains under one framework:
• Global Product Development.• Global Supply Network Integration.• Global Customer Success.
– Collaboration with a “common language, process-based”syntax and semantics.
– Global process integration.– Global “real benchmarking”– A foundation for a successful Service Oriented Architecture
game plan.
SuppliersSRM
Supply Network
Dev.
Customers
Value Collaboration
Value Collaboration
CRM Supply
Network Dev.
Business Mission & Strategy
Corporate GovernanceCore Business Processes
Support Business Processes
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
Market Research Develop Acquire Build Fulfill Brand Sell Support
The Enterprise Characterized by VRM
Information ManagementTechnology Development
Human Resource ManagementFinance & Accounting
Quality & Business ExcellenceSafety, Health & Environment
Strategic Level - Macro Processes
PLANOn the Strategic Level Plan is a overarching process aligning strategic objectives with tactical and execution abilities in the value chain working in a close relationship with the Strategic Level Govern and Execution Processes in the model
GOVERNOn the Strategic Level Govern is a overarching process supporting Strategic objectives and enabling the value chain to operate through rules, policies and procedures in a close relationship with the Strategic Level Plan and Execute Processes in the model.
EXECUTEThe Strategic Level Execute Process overarches all the execution processes in the model in a strategic context to support the value-adding processes related to a product or service to customer requirements. The Execute Process operates within the limits of the Management criteria from Govern and to the parameters defined by the Plan Processes Process.
The Tactical Level can be described being instituted for “Horizontal Value Chain Process Re-Engineering” encompassing all critical Business Domains
The VRM Tactical Level Processes
Market Brand
VRM enables a Systems Based ApproachGovern processes support objectives and enable the value chain to operate through rules, policies and procedures in a close relationship with the Plan and Execute Processes in the model.
Plan processes balance requirements with available resources to align objectives with tactical and execution abilities in the value chain working in a close relationship with the Govern and Execution Processes in the model
Govern Goals & Objectives
Plan
Rules, Metrics& Information
ExecuteExecuteINPUT OUTPUT
The Execute processes support value-adding related to a product or service to customer requirements. The Execute processes operate within the limits of the management criteria from Govern and to the parameters defined by the Plan processes.
VRM aligns Strategy and ICT Enablers
BUSINESS BUSINESS
STRATEGYSTRATEGY
Goals, Products, Goals, Products, CustomersCustomers
Organization of Value Chains and Organization of Value Chains and Lines of Business given priorities Lines of Business given priorities through Priority Dimensionsthrough Priority Dimensions
FillingFillingthetheGapGap
Aligned Aligned Business Business ProcessesProcesses
Frameworks and methodology forFrameworks and methodology fordefining and improving processes,defining and improving processes,subsub--processes and activitiesprocesses and activities
Measures tied to each specific Measures tied to each specific layer of processes. layer of processes.
Best Practices Tied to Each Best Practices Tied to Each Specific SubSpecific Sub--process or activityprocess or activity
IT APPLICATIONS
&
INFRASTRUCTURE
IT APPLICATIONSIT APPLICATIONS
& &
INFRASTRUCTUREINFRASTRUCTURESpecific ApplicationsSpecific ApplicationsInfrastructure OptionsInfrastructure Options
VRM Methodology Coverage
Strategic MethodologyThe ValueCard and all processes in Govern, Plan, and Execute in VCOR can be applied for gaining competitive advantage.
Tactical MethodologyThe second level of the model contains processes supporting the implementation of strategic goals through tactical decisions and configurations.
Operational MethodologyThe third level of the model establishes links between enterprise-specific activities and the value chain.
VRM Value Cards
External Partnerships Developed with the Network Value Card
Business Strategy
Internal Tactical and Operational Priorities Developed with the Enterprise Value Card
•Domain Value Cards•Tactical Configurationsand Improvements•Operational Improvements
Balanced Scorecards for Specific Domains
The need for Business Agility
• The world has changed dramatically in recent years• Organizations in the public and private sector are confronted with an
environment not seen before • New strategies, structures, and operating practices are required to
manage change and create and sustain advantage• Companies need to make faster, more informed decisions—
communicating and collaborating immediately and effectively• Companies need to better understand and serve their customers
globally – They need to seamlessly interact with suppliers and distributors– They need to seize market opportunities faster than their competitors– They need to be more efficient than ever
• Business agility can be achieved if BPM can – Accelerate new process deployment – Facilitate changes to existing processes.
Distributors & Resellers
Partner NetworkGetting More
Complex
Accelerated Quoting
Multiple Sales & Support
Channels
Reducedtime-to-market
Shorter ProductLife Cycles
Outsourced manufacturing &
fragmented inventory
Customized Solutions & Consignment
Contractors
Component SuppliersOEMs
AcceleratedTechnology
Advancement
Focus Shiftingto End
Customers
Globalization
PoliticalIntegration/
Disintegration
Regulationand Activism
NaturalResource
Availability
WildcardsLow Probability/
High Impact
Flexibility and agility to respond to changing business needs and to harness resources across global value chain partners
Industry Challenges
Increased Competition
Support / Retention
DistributedProduct Design
Strategic Alignment Links Organizational Goals and Activities
OperationalSystems
“People” Systems
Purpose
ManagementSystems
Results/Feedback
Purpose and StrategiesDrive Operational,Management and PeopleSystem Activities
Every Action Taken Is Linked to OtherRelated Senior Goalsand Actions
Business Strategy
Business ProcessesQuality Mgmt.
Performance PlansPerformance Mgmt.
SERVICEORIENTATION
Composite Apps
Federation
SOAData as Services
Apps as ServicesSOI
Legacy Legacy ContinuesContinues
New Usage and New New Usage and New Solution Architectures Solution Architectures
FlourishFlourish
Migrating to SOA is an Opportunity
StrategicStrategicInflection PointInflection Point(2005(2005--2008)2008)
Globalization, Mobility and Outsourcing Require Globalization, Mobility and Outsourcing Require Adaptive, Agile Computing & Communications Adaptive, Agile Computing & Communications ArchitecturesArchitectures
Value Streams* modeled in VRMwill help define Services
• Prospect to Customer• Order to Cash• Manufacturing to
Distribution• Request to Service• Insight to Strategy• Awareness to Prevention• Concept to Development• Initiative to Results• Forecast to Plan
• Relationship to Partnership
• Requisition to Payables• Resource Availability to
Consumption• Acquisition to
Obsolescence• Financial Close to
Reporting• Recruitment to
Retirement* Taken from Enterprise Business Architecture by Whittle and Myrick, CRC Press, 2005
Lessons Learned using VRM
• The common taxonomy minimizes risk of confusion amongst participants, especially as globalization of business continues and outsourcing practices grow
• Used as the common definition library for depicting life cycle process activities to accomplish simultaneous product and process design
• Used to consistently develop and protect intellectual property across a diverse and geographically dispersed supply base
• Used to evaluate competing suppliers using standard metrics
• Used to identify representative practices and metrics
Identifying Value Opportunities using Value Streams modeled in VRM
• This approach establish the criteria for what should or should not be considered a Service
– By leveraging the Enterprise Business Architecture to define the enterprise value streams, their relationships to all external entities and other enterprise value streams, and the events that trigger instantiation.
• Value is determined both subjectively (non-quantifiable) and objectively (quantifiable)
• Define value in context of decisions based on costs/benefits i.e. time, price, quality, innovation; show decision matrix
• Convert subjective knowledge of value into objective knowledge via data and metrics
• Value chain operations are inherent in the Extended Enterprise
• Understand the relationship between value and process
Frameworks to Enable Business Agility
Process Reference Model
Framework to Couple BPM and SOA
Federated Enterprise Reference Architecture
SOA Information Model
Business Frameworks
Value Streams
Framework for Stage-gated Processes
VC Information Model
Business Architecture
Framework to Establish Value Opportunities
Thank youThank you
Herbert HeinzelHerbert Heinzel