Business Value Networks And Information Technology V5
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Transcript of Business Value Networks And Information Technology V5
Business Value NetworksEnterprise Architecture
Leveraging TOGAF Architecture Development Methodology
Challenge
• Problem Description• Examination & Analysis• Solution
TOGAF
• The Open Group Architecture Framework (TOGAF) is a framework - a detailed method and a set of supporting tools - for developing an enterprise architecture. It may be used freely by any organization wishing to develop an enterprise architecture for use within that organization
• TOGAF was developed by members of The Open Group, working within the Architecture Forum (www.opengroup.org/architecture).
Focus on Value
Focus on ShareholderValue
Shareholder Value
• The use of well-managed value networks, in summary, allows enterprises to tremendously leverage all the resources at their and their collaborative partners’ disposal: capital, human resource and information technology resources. Further, it does so at a lower effective cost of transactions, with the potential for higher quality, and the ability to get a far greater economic return on the resources used than was previously possible.
Don’t Boil The Ocean – Prioritize on High Shareholder Value Areas & Iterate
Business Area or Division Priority 1
Business Area or Division Priority 2
Business Area or Division Priority 3
Understand Network Vision
Understand Business Network Vision
Vision Overview
• Strategically need to transform the business from a traditional enterprise to a value network which extends the ability of the enterprise to conduct transactions beyond the company to include suppliers, business partners, customers and other parties of interest.
Evolution toward Business Networks
E-BusinessesGoogle,Amazon,
Ebay,Etc..
Traditional Fortune 500Exxon MobilMcKesson
GEEtc..
BusinessNetwork
Bu
sin
ess
Pro
cess
In
teg
rati
on
Information Processing Centric
IncreasedBusinessModularity& Agility
Develop Business Value Network Architecture
Understand the BVNBusiness Architecture
Diagnosis Before Treatment
• It is essential to understand the nature of the business value networks problem before identifying any technology solutions.
• Successful solutions are predicated on correct examination and analysis of the problem.
• Successful solutions are also predicated on realistic assessments of constraints and opportunities.
Understanding The Value Network Business Architecture
• The strategic business map of how value is to be delivered between the enterprise and its partners to intermediary and end-customers through a business network (public/private wireless) and how the enterprise measures the effectiveness of this delivery system and its end results.
• The network roles and relationships, defining the central role of the business value network manager, the cascading relationships with market managers, customer managers, customers, the service provider manager and the network and content service providers.
• Parties and roles, outlining who is responsible for what and the protocols of how transactions will be conducted.
• Roles and product relationships, outlining principally the roles and duties of the network service provider and the content service provider.
• Product and service management, the business value network platform, outlining how the various components of the network will interact and deliver the product content and the financial value (billing/payment).
• Execution process overview, outlining how the whole business value network will operate end-to-end.
• Measuring performance, outlining how from the point of order through cash collection the system will operate in terms of cycle-days, revenue generated and cost incurred (yielding an operating margin contribution for the entire process).
The Business Value Network Model
Customer
ProvidesNeeds
Customer ManagerBrokers Solution
Solution
Solution consists of a packageof products & services
Uses tradingto fulfill the
needs
Service providers fulfill customer solution
Service Provider
Service Provider
Service Provider
ElectronicMarketplace
Market Manager Organizes& Manages The Market
SolutionDelivery
Coordination
Key Roles In The Business Value Network
Customer Manager
SolutionBroker
SolutionBroker
ServiceProvider
SolutionBroker
SolutionBroker
ServiceProvider
MarketManager
BVN Manager Manages Multiple Market Managers
The Business Value Network
MarketManagerManagesThe Market
CustomerManagement
SolutionConfiguration
Trading
SolutionDelivery
SolutionAssembly
SolutionSettlement
CUSTOMER CUSTOMER SolutionSettlement
Business Value Network BVN Solution Management
BVN SettlementBVN Quality andService Management
Product / ServiceCommodity Trading
Product / ServiceCommodity Trading
Product / ServiceCommodity Trading
Marketing Network Customer Management
BVN Execution Pr ocess Overview
Model:Dynamic Networks
Business Dynamics ModelBVN Execution Process Overview
For Process Process Flows
Last Updated: 6/24/99 15:15
CustomerReferral ProviderProcessing
Customer CreditManagement
CustomerMarketingManagement
Customer SolutionConfiguration
MajorCustomerEventOccurs
PeriodicCustomerGroupMarketing
ExistingCustomer HasNew Needs
CustomerOngoingNeed Trigger
PostingRedefine Posting
Searching
Negotiation
Posting
Searching
Negotiation
Posting
Searching
Negotiation
SolutionAssembly
"Total Solution" (bypass Trading)
Solution NotSatisfied -Redefine Needs
SolutionDelivery
Defaulted Delivery-Retrade Product/Role
Retrade ondefaultedproductcomplete
Define Solution within a Solution
I ssue andDisputeManagement
Quality DataAcquisition
SolutionSatisfactionReported
SettlementStatementProcessing
SolutionSettled
Super Marketing NetworkCustomer Management
MajorCustomerEventOccurs
PeriodicCustomerGroupMarketing
ExistingCustomerHas InfoChange
Cust EntersBVN viaCustReferralProv
Customer CreditManagement
CustomerEnters BVNvia SuperMktg Ntwk
CustomerMarketingManagement
CustomerGeneralI nformationManagement
CustomerMarketingCompleted
Cust EntersBVN viaCustReferralProv
CustomerGeneralI nformationManagement
CustomerMarketingCompleted
Customer/ ServiceProvider I ssueResolved
Dynamic Networ ks
Best Practices: more “knowledge-workers” requires better collaboration
Recently, from The McKinsey Quarterly: “For many employees today, [25 to 50 percent of
any workforce], collaborative, complex problem solving is the essence of their work.”
Collaboration “capabilities do not resemble IT systems or reengineered processes that can be copied easily – their power lies in the collective company-specific knowledge that emerges over time.”
According to a recent article entitled: “Meetings Around the World…”, by Frost & Sullivan, collaboration is a key driver of overall company performance. Its impact is: Twice as significant as a company’s aggressiveness
in pursuing new market opportunities (strategic orientation)
Five times as significant as the external market environment (market turbulence)
Nature of Business Networks = Change – Implies IT Flexibility
• Rapidly Evolving Marketplace resulting in:– A steady flux of new and departing business partners– A changing set of roles both internal and external– A steady change in products & services– Human Processes changing dynamically– Technology supported processes changing
dynamically– Increasingly complex information worker environment
Plug-in, Leverage & Add
Principles:• Plug-In to existing &
emerging “information & process pipes”
• Leverage existing Assets
• Identify new components to add
What is an Architecture
• Conceptually an IT Architecture– The fundamental organization of a system
• It’s components• Their relationships to each other and the
environment– The principles of governing it’s design and
evolution• Practically it is represented in architecture
descriptions from the viewpoint of the stakeholders
“As Is” - Realistic Appraisal of the Current IT Situation
• Complex Current IT Situation– No IT situation is ever ideal– Often no significant investment since “the dot com
era”, resulting in an aging IT infrastructure– Architecture lynch pinned on aging ERP– Little internal, let alone external integration– Limited internal IT capabilities– Recognition that large IT problems are hard to
implement successfully– Could spend 100 years fixing current situation
Constrain the “To Be”• Not possible to “rewire” the entire enterprise IT
infrastructure or industry– PRINCIPLE: Must find way to “plug in” to emerging IT and
Process Pipes• Rewire industry is not realistic (remember the B2B Dot Bombs?)• Must link in where possible to existing industry process &
information “pipes” and “standards” and determine how to use these to enable your business network
• Must leverage and add value to these pipes– PRINCIPLE: Leverage and extend existing assets while
supporting new direction• Rewire company is too costly and too risky• Must search for existing assets that can be extended• Must continue to support current business• Must identify realistic and practical IT investment options for
business to refactor current assets
Connecting to Industry Architectures is Becoming Critical –
Not Just Your Industry
TOGAF Enterprise Continuum
Understanding andconnecting into MultipleIndustry Architectures
Define Architecture
• Lynch Pin solution blueprint on core existing applications and plug ins to existing or emerging industry “pipes”
• Identify missing components and how they need to be integrated– Business Network Directory– Business Network Process Management– Business Network Collaboration and information sharing– New external SOA services– Flexible Integration framework– New SOA services required on top of existing core applications
Architecture
Business Network Services Communications
BusinessNetwork
CollaborationServices
BusinessNetworkProcess
CoordinationServices
BusinessNetworkCommonServices
Customer& PartnerServices
ERP Services
Business Network Solution
Lynch Pin solution blueprint on core existing applications, adding new components and plugging into existing or emerging industry “pipes”
Solution Example
Business Network Services Communications
BusinessNetwork
CollaborationServices
BusinessNetworkProcess
CoordinationServices
BusinessNetworkCommonServices
Customer& PartnerServices
ERP Services
SAP R/3
Industry standard Services Exposed to Business Network
Sharepoint2007
SAP CCBPM
Off The Shelf/Custom
Heterogeneous
Migration Planning
Principles:Plug-In to existing & emerging “information & process pipes”Leverage existing Assets
Plot Path to Strategic Business Value
Path to Strategic Business Value
PeopleSelf Service
PeopleEmpowerment
TeamCollaboration
& Services
Process Efficiency Process Flexibility Business Model Innovation
CollaborationFoundation
CollaborationNetwork
CollaborationNetwork
Advanced
Business ValueNetwork
Tactical Approach
Strategic Approach
Inte
grat
e
Com
pose
Mod
elEvolve IT
Infrastructure
EvolveBusinessPractices
Value
Effi
cien
t F
unct
ions
Ser
vice
Orie
nted
Dyn
amic
Net
wor
k
EvolveOrganization
StrategicExecution
Solve Real Problems
• Extend current “core” applications with additional business value network components focused on solving specific business network problems– Building technology solutions without concrete
requirements usually not a good idea– Architect based on solving tangible problems
while maintaining key architectural flexibility required in order to continue extending the solution
Draft Strategy Timeline.
BusinessNetwork
Model-DrivenNetwork
Yr1 Yr2 Yr3 Yr4
Collaboration Foundation
Collaboration Network
Yr4 -
Migration Planning
Governance & Architecture change mgt is a key collaboration process in the network