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: [email protected]
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