Value Mapping – Critical Business Architecture Viewpoint

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AEA Webinar Series “Enterprise Business Intelligence”

Armstrong Process Group, Inc. www.aprocessgroup.com

Copyright © 1998-2017, Armstrong Process Group, Inc., All rights reserved 2 About APG APG’s mission is to “Align information technology and systems engineering capabilities with business strategy using proven, practical processes delivering world-class results.” Industry thought leader in enterprise architecture, business modeling, process improvement, systems and software engineering, requirements management, and agile methods Member and contributor to UML ®, SysML ®, SPEM, UPDM ™ at the Object Management Group ® (OMG ®) TOGAF ®, ArchiMate ®, and IT4IT ™ at The Open Group BIZBOK ® Guide and UML Profile at the Business Architecture Guild Business partners with Sparx, HPE, and IBM Guild Accredited Training Partner ™ (GATP ™) and IIBA ® Endorsed Education Provider (EEP ™)

Business Architecture Knowledgebase

Blueprints provide views into knowledgebase, based on stakeholder concerns Scenarios contextualize expected outcomes of business architecture work Also inform initial selections of key stakeholders and likely concerns

AEA Webinar Series – “Enterprise Business Intelligence” – Value Mapping BIZBOK Guide Copyright © 1998-2017, Armstrong Process Group, Inc., All rights reserved 4 Value Map – Definition “A visual depiction of how an organization achieves value for stakeholders within the context of a given set of business activities” Provides “outside-in” view of value delivery Describes value items exchanged between an organization and key external stakeholders (customers, partners, constituents) Value defined as “the benefit that is derived by an organization’s stakeholders while interacting with that organization” Also can be used to understand value from internal stakeholder perspective Several variations: value chain, value stream, value network Often mapped to other content such as capabilities, product, business units

Competitive Advantage: Creating and Sustaining Superior Performance , Michael Porter, 1985

“A stakeholder triggered, end-to-end depiction of how a business delivers value to that stakeholder” One clear goal – “to satisfy and delight the customer” Ability to define organization- and industry-specific core processes As opposed to generic 5 stage process of Porter value chain

AEA Webinar Series – “Enterprise Business Intelligence” – Value Mapping The Great Transition, James Martin, 1995 Copyright © 1998-2017, Armstrong Process Group, Inc., All rights reserved 7 Value Network – Concept

Focus is on exchange of value amongst stakeholders; process-agnostic Enhanced with Value Network Analysis

AEA Webinar Series – “Enterprise Business Intelligence” – Value Mapping BIZBOK Guide Copyright © 1998-2017, Armstrong Process Group, Inc., All rights reserved 8 Value Map – Benefits Provide common baseline for envisioning how to deliver high visibility value Help avoid get bogged down overlapping/redundant processes, enabling technologies, and organization complexities Provide clear focal points for prioritizing how to achieve stakeholder value Enable focus on areas to reduce complaints, elevate access, and increase value Enable delivery of near -term, mid -term, and long -term value to stakeholders Can segregate and improve specific portions of value streams and prioritize appropriately Provide new and unique ways to envision stakeholder engagement Teams can clearly and consistently state how to change stakeholder engagement Enable prioritization and managed deployment of business capabilities Provides context for capability improvement efforts

informs Strategy Initiative

Policy Value Proposition aligns impacts with governs delivers Value Stream desires relies on Product triggers

Stakeholder composed of enables

{ordered} enables supports Value Stream Stage Capability

«desires»

Uplifted Customer Workforce Capabilities

«triggers» «delivers»

Train Workforce

Understand Training Arrange Training RegisterTrain Workforce for Training Deliver Training Close Training Requirements Logistics Session Session Session

Value Streams : Train Workforce - Value Items

Value Streams :Train Workforce - Value Stream Stages

Value Streams :Train Workforce - Capabilities

triggers desires Value Stream Stakeholder Value Proposition

impacts Initiative

composed of composed of supports Outcome receives {ordered} impacts contributes to Value Stream Stage requires produces contributes Name: Text to enables Process Description: Text Capability implements /Is Start Stage: Yes/No /Is End Stage: Yes/No Value Item participates in delivers uses responsible for Organization Product represents

has entrance has exit criteria criteria represents represents

applies to Value Stream Criteria Information Concept

applies to

instance of Information represents Concept Instance

:Customer :Training Facility :Student :Customer

Understand Arrange Register for Deliver Close Training Training Training Training Training Session Requirements Logistics Session Session

Clear Appropriate Defined Improved Targeted Customer Facilities Target Professional Customer Expectations Audience Skills Feedback

Uplifted Workforce Capabilities

Statement of Event Event Registration Attendee Work

Customer Event Attendance Student

Proposal Course Evaluation Certificate of Completion

Training Session

Scheduled

Opened

Canceled

Closed

Setup Delivered Completed

:Proposal :Event :Event [Submitted] [Scheduled] [Delivered]

Understand Arrange Register for Deliver Close Training Training Training Training Training Session Requirements Logistics Session Session

:Statement of :Event :Course :Certificate of Work [Setup] Evaluation Completion [Approved] [Returned] [Provided]

APG

Finance Operations Research and Development

Accounting Communications Product Operations Intellectual Property Operations

Accounts Payable Accounts Receivable Communications Product Management Product Order Content Management Content Publishing Delivery Fulfillment

Event Operations Training Operations Sales and Marketing

Attendee Conference Courseware Ordering Training Delivery Marketing Management Management

Contact Management Contact Networking Event Delivery Event Management Training Preparation

Content Syndication Lead Identification Event Notification Event Preparation

Lead Management Product Notification Event Registration Facility Management

Service Notification Instructor Management

Sales Practitioner Operations

Client Management Product Order Certification Delivery Certification Processing Management

Product Sales Proposal Creation Practitioner Professional Management Development

Proposal Quote Creation Service Management Management

Quote Management Service Sales

Understand Training Arrange Training Register for Training Deliver Training Close Training Requirements Logistics Session Session Session

Client Event Management Event Management Event Delivery Accounts Payable Management

Proposal Facility Event Registration Event Management Accounts Management Management Receivable

Quote Instructor Event Preparation Attendee Management Management Management

Service Sales Event Management

«Value Proposition»

«desires» VP Product Sustainable Dev elopment New Product Ecosystem «triggers»

«produces»

Establish Distribution Network

Dev elop Distribution Select Distribution Plan DistributionEstablish DistributionDev Network elop Distribution Grow New Product Sustain New Product Strategy Partners Partner Engagement Partner Relationship Sales Sales

Value Streams: Establish Distribution Network - Value Items Value Streams: Establish Distribution Network - Info Object Mapping Value Streams: Establish Distribution Network - Info Object Matrix

«contributes» Dev elop Distribution Strategy Identify participating

Understood «receives» VP Product Distribution Dev elopment stakeholders Approach Who contributes to Select Distribution Partners creating value item?

Clarified Who receives the value Distribution Channels from the item?

Plan Distribution Distribution Partner Partner Engagement Manager Defined Engagement Model

Dev elop Distribution Partner Relationship

Engaged Channel Network Distribution Sales Manager Grow New Product Sales

Product Market Growth

Sustain New Product Sales

Profitable Distribution Partner Product Market

VP Product Distribution Partner Distribution Partner Distribution Sales Development Manager Manager

Develop Distribution Select Distribution Plan Distribution Develop Distribution Grow New Product Sustain New Product Strategy Partners Partner Engagement Partner Relationship Sales Sales

Understood Clarified Defined Engaged Product Profitable Distribution Distribution Engagement Channel Market Product Approach Channels Model Network Growth Market

«Value Proposition»

Also shows aggregation of Value Items Sustainable into Value Proposition New Product Ecosystem

Target Value Stream Stage offers Value Item

Target

Source DevelopDevelopDevelopDevelopDistributionDistributionDistributionDistribution PartnerPartnerPartnerPartnerRelationship Relationship Relationship Relationship DevelopDevelopDevelopDevelopDistributionDistributionDistributionDistribution Strategy Strategy Strategy Strategy GrowGrowGrowGrowNewNewNewNew ProductProductProductProductSales Sales Sales Sales LaunchLaunchLaunchLaunchNewNewNewNew FinancialFinancialFinancialFinancial Product Product Product Product PlanPlanPlanPlanDistributionDistributionDistributionDistribution PartnerPartnerPartnerPartner Engagement Engagement Engagement Engagement SelectSelectSelectSelectDistributionDistributionDistributionDistribution Partners Partners Partners Partners SustainSustainSustainSustainNewNewNewNew ProductProductProductProductSales Sales Sales Sales Distribution Partner

Distribution Partner Manager

Distribution Sales Manager

Source ClarifiedClarifiedClarifiedClarifiedDistributionDistributionDistributionDistribution Channels Channels Channels Channels DefinedDefinedDefinedDefinedEngagementEngagementEngagementEngagement Model Model Model Model EngagedEngagedEngagedEngagedChannelChannelChannelChannel Network Network Network Network ProductProductProductProductGrowth Growth Growth Growth MarketMarketMarketMarket ProfitableProfitableProfitableProfitableProductProductProductProductMarket Market Market Market UnderstoodUnderstoodUnderstoodUnderstoodDistributionDistributionDistributionDistribution Approach Approach Approach Approach VP Product Development Develop Distribution Partner Relationship Stakeholder Develop Distribution Strategy Grow New Product Sales participates in Launch New Financial Product

Value Stream Stage Plan Distribution Partner Engagement

Select Distribution Partners

Sustain New Product Sales

:Sales and Distribution :Product Competitor Program Intelligence [Approved] [Created]

:Product Sales Data :Product Sales [Gathered] Analysis [Created]

:Product Market Data :Product Market [Gathered] Analysis [Created]

:Sector Sales and :Distribution Partner Distribution Strategy [Selected] [Approved]

Dev elop Distribution Select Distribution Plan Distribution Dev elop Distribution Strategy Partners Partner Engagement Partner Relationship

:Product Distribution Mapping of entry/exit criteria for Strategy [Approved] first two stages :Product Market Intelligence [Created] Input/output shown as :Product Sales Intelligence [Created] instances of information objects

:Product Competitor Data in specific state [Gathered]

Entry Criteria :Product Sales Data :Product Competitor [Gathered] Data [Gathered]

:Sales and Distribution :Product Sales Program Intelligence [Approved] [Created]

:Product Market Data :Product Market [Gathered] Intelligence [Created]

:Sector Sales and :Product Distribution Distribution Strategy Strategy [Approved] [Approved]

Value Stream Stage Dev elop Distribution Select Distribution Plan Distribution Dev elop Distribution Grow New Product Sustain New Product Strategy Partners Partner Engagement Partner Relationship Sales Sales

Exit Criteria :Product Distribution :Distribution Partner Strategy [Selected] [Approved]

:Product Market :Product Market Intelligence Analysis [Created] [Created]

:Product Sales :Product Competitor Intelligence Intelligence [Created] [Created]

:Product Sales Analysis [Created]

Use columns and swimlanes

Team Members • APG • AIMCo • FedEx • Guild Metamodel • OMG BAMM RFP

AEA Webinar Series – “Enterprise Business Intelligence” – Value Mapping Copyright © 1998-2017, Armstrong Process Group, Inc., All rights reserved Conclusions Value mapping is critical business architecture viewpoint to help executives and planners Articulate why customers should do business with them Represent how they’re different than competitors Describe how partners interact across extended ecosystem Provides views into other business architecture perspectives critical to modern business transformation Which stakeholders are impacted? Which capabilities should we uplift? What information is required? Which organizations are involved? UML Profile for BIZBOK should increase level of adoption of formal modeling in Business Architecture

AEA Webinar Series – “Enterprise Business Intelligence” – Value Mapping Copyright © 1998-2017, Armstrong Process Group, Inc., All rights reserved 26 “Enterprise Business Intelligence” Future Topics Business architecture value proposition Value modeling Capability modeling Strategy modeling Organization and information modeling Initiative modeling Business architecture governance Application portfolio management Regulatory compliance Digital business transformation

AEA Webinar Series – “Enterprise Business Intelligence” – Value Mapping Copyright © 1998-2017, Armstrong Process Group, Inc., All rights reserved 27 Q&A [email protected] http://www.aprocessgroup.com http://www.linkedin.com/in/togaf/

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