STATE OF THE TECH UNION USING THE CAPABILITY BUSINESS MODELPresented at the Twin City Business Architecture ForumDecember 2019

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Audience: Business Architects

Technology Leaders and Strategy Setters who want

more than a ‘gut feel’ as the basis for improvement focus

Topic

State of the UnionWhy you should listen to meCapability Business Model – level setCreating the Capability Business ModelMapping Orgsà what we learned

Mapping Technologiesà what we learned

AssessmentsIncreasing Value

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STATE OF THE UNIONHow does the technology meet the business needs currently?• What technology do we have• What capabilities do we do• Who owns the work, who participates in the work, who contributes to the work

From the State of the Union• Where should the focus be? What is important? What has the most impact?

Some facts:• Supply Chain is a complicated space that is more than order, receive, store, ship• Amalgamated over years, multiple clients, multiple devices, multiple services• It’s never as easy as you think!

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WHY LISTEN TO ME• Principal Business Architect• Providing Value through Models

and Analysis• Growing the Practice of EBA• Practical Experience• Multiple Environments

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CAPABILITY BUSINESS MODEL

• Definition of everything that the company does to perform and execute the business, the whole business• “A place for every thing and every thing in its place” Benjamin Franklin

• Provides context for what we each do in the grand picture of the company

• Classification of the abilities that can be used to align and analyze all different aspects of the company

• CBM holds ‘What’ we are capable of doing

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Why CapabilitiesDecomposition of the desired end result

to show the value of modeling (sample data only)

Capability Business ModelInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

FoundationGather a representation of organizational capabilitiesValue is in creating a common language and establishing a common context to frame more impactful conversations

Tech State of The UnionInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

Aligned Partially Misaligned

AssessmentUse a combination of common context, attribution, criteria, and resultsto assess the organization on one to many dimensionsValue is in being able to visualize the state of a focus areaat a particular time

Built On

AttributionUse common context to gather specific attributes of the capabilitiesValue is in being able to compare and visualize organization

Tech MappingInventory Planning

ExcelK-System

ProcurementD-App

Excel, GSPN

RemanP-SysExcel

Inventory Mgmt.D-AppSBSys

ShippingC-Ship

D-App, Access

Resource Mgmt.K-System

Excel

Reverse LogisticsD-AppExcel

AccountingD-AppExcel

…

Built On

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CREATING OUR CAPABILITY MODEL

• Started with a sketch from the Enterprise CBM• Conversations with teams about what they did

• Distilled into capabilities• Combined capabilities• Reworded capabilities• Created whole map for the Domain• Stated that there would be multiple passes to refine capabilities and definitions

(ownership map, tech map)

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MAPPING ORGANIZATIONS

• Did a quick scoping for the orgs footprint; via Visio then backed up by Excel• In/Out

• If In is it Owned, Participative, or Contributed

Capability Business ModelInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

Contributing Participate

Out of ScopeOwn

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OWNERSHIP LEARNINGS• Everyone wanted to own; No one wanted to own

• Horizontal organizations; Vertical organizations

• Managers indicated ‘IN’; subordinates indicated ‘OUT’ (or need training/staffing)

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MAPPING TECHNOLOGIES• IT-Supported Applications• Non-IT-Supported Apps• Excels (hidden tech)

• Other data systems (MSAccess, etc)

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TECHNOLOGY LEARNINGS

• Multiple tech for single capability• Tech stretched across more capabilities than previously known

• More non-IT-supported than we knew• IT-supported used for different capabilities

• Different IT-supported users• Much More excel runs the business than expected

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ASSESSMENTS

• Involved parties rate the technology fit to their capabilities• Ranking 1, 3, 7 (Aligned, Partially Aligned, Misaligned)• Overlap all org’s ratings for complete capability picture

Tech State of The UnionInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

Aligned Partially Misaligned

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Capability Business ModelInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

Increasing Value With Additional InformationNew project scope and mapping to other attributes

Organization MappingPlanning

PlanningProcurement

AE OpsReman OpsRepair Ops

AE OpsReman OpsRepair Ops

AE OpsReman OpsRepair Ops

AE OpsReman OpsRepair Ops

AE Ops

Inventory Accounting

…

Tech MappingExcel

K-System

D-AppExcel, GSPN

P-SysExcel

D-AppSBSys

C-ShipD-App, Access

K-SystemExcel

D-AppExcel

D-AppExcel

…

StrategyInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

Table Stakes Strategic Differentiator

Tech State of The UnionInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

Aligned Partially Misaligned

Scope / ImpactInventory Planning

Direct Procurement

Reman

Inventory Management

Shipping

Resource Utilization

Reverse Logistics

Accounting

…

Use Maybe OutChange

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Increasing Value With Alignment to Business ProcessesAlignment to Understand Impact at Tactical Level

High Level Value ChainsPlan Procure Transport Store

Receive Repair Reclaim Return

Schedule Obtain Reclaim Assemble

… … …

Inventory Value Chain

REPAIR Value Chain

Service Value Chain

…Value Chain

Capability Business ModelInventory Planning

Direct Procurement

Repair

Inventory Management

Shipping

Reverse Logistics

Accounting

…Receiving

Receiving FunctionsDetermine Delivery

Condition Receive Box Handle Damaged Box

Record Part Receipt Details Triage Device Identify Inadvertent

MaterialRecord Device Receipt Details Triage Part …

Functional DefinitionCapability is comprised of the activities that execute the capability

High Level DefinitionValue Chain executes the business capabilities in a particular order

Business Processes

Process DefinitionProcesses define the detailed activities in a particular order to accomplish the Value Chain step from the activities aligned to a particular capability

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Capability Business ModelInventory Planning

Direct Procurement

Repair

Inventory Management

Shipping

Receiving

Reverse Logistics

Accounting

…

Increasing Value With Tactical FocusNew project scope focus on the appropriate step to be changed: role taking manual steps or technology

Scope / ImpactInventory Planning

Direct Procurement

Repair

Inventory Management

Shipping

Receiving

Reverse Logistics

Accounting

…

Use Maybe OutChange

Receiving FunctionsDetermine Delivery

Condition Receive Box Handle Damaged Box

Record Part Receipt Details Triage Device Identify Inadvertent

MaterialRecord Device Receipt Details Triage Part …

Use Maybe OutChangeBusiness Processes

Tech MappingExcel

Kinaxis

DAXExcelEmail

PervacioAspireExcel

DAXService Bench

Connect ShipDAX

Access

DAXExcel

DAXAccessExcel

DAXExcel

…

Organization MappingPlanning

PlanningProcurement

Repair Ops

AE OpsReman OpsRepair Ops

AE OpsReman OpsRepair Ops

Receiving

AE Ops

Inventory Accounting

…

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KEEPING THE CONVERSATION GOING

• What did you see or hear that you’d like to remember?• What are you going to use?

LinkedIn: https://www.linkedin.com/pub/mary-sue-moore/0/416/618Email: msuemoore@gmail.com

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