Value Delivery Modeling Language (VDML)

Ghent University, November 18, 2013

Henk de Man

If You are in this Job ..

How would You do this ?!

Status Quo

VDML Vision

Business Model Innovation

How to represent these ? How to relate these ? How does the business operate, as a value-creating system, based on these ?

=> We need a modeling language !

New modeling language: VDML

VDML Purpose

• Supporting value-driven business design• Turning your business into a value network

– Focuses on the flow of deliverables and contributions of value» Contributions of value by activities

– Provides higher level of abstraction of the business» What it does, how it performs, who is responsible

• Addressing business challenges– Finding the most profitable model and efficient partnership

arrangement for your business at given point in time.– Complexity of many service capabilities provided, delivered and

managed across organization/company boundaries.» Computerized models to help better analyze and manage

these complexities for decision making.

VDML “Blood Donors”

Most are represented in “VDML team”

BPMNCMMN

VDML

BMM

SoaML UML

SMM

Business Motivation Model (BMM)

Value Delivery Modeling Language (VDML)Structured Metrics Metamodel (SMM)Case Mangement Model and Notation (CMMN)Business Process Model and Notation (BPMN)Service Oriented Architecture Modeling Language (SoaML)Unified Modeling Language (UML)

NEW

NEW

Revised, for VDML

VDML Positioning

BMM

SMM

Some VDML Definitions • Value: Measurable factor of benefit, of interest to a

recipient, in association with a deliverable

• Value Proposition: Expression of the values offered to a recipient evaluated in terms of the recipient’s level of satisfaction

• Capability: Ability to perform a particular kind of work and deliver desired value

• Collaboration: Collection of participants joined together for a shared purpose or interest

VDML Concepts

Business Model & VDML

Value formulas

Network partners

Value propositions

Customers

Activities

Capabilities

Similar to but simpler than Osterwalder (source: Peter Lindgren, NEFFICS)

Activitity Network (Activities)

Capability Management (Capabilities)

Role Collaboration (Network Partners)

Measurement Dependency (Value Formula)

Role Collaboration (Customers) Value Proposition Exchange

Business Model: Royal Bed

Business, with BMs

Business Model: Classic Bed

Design Methodology

Organization Capabilities

Lines of Business Networks

Capability Application

Value Analysis

Value Library

Role Library

Capability Library

Business Item Library

Measure Library

Practice Library

Library-based guidanceCap

abilit

ies

Capab., Bus. Items

Roles, Capabilities, Business Items

Role, Business Items

Characteristics, Measures

Step 1: Organization Capabilities

Capability Library (“Capab. Map”)

Capability versus Capability Offer

Capability Offers(or “Configurations”, “Incarnations”)

Capability Management

Capability Method

Capability loose coupling

Decoupling via Stores

Capability drill-down from BM

Complementary aspect diagrams

Search & navigate to build total picture

Step 2: Lines of Business Networks

Business Network: 3 Views

Drill-down from BM

Step 3: Capability Application

Capability Application

ActivityCapability

Method

Capability Offer design

Capability Offer“provided service”

“type of work”

“service consumer”

require

support

delegateprovide apply

Capability Method design

Activity designCapability Library design

“service implementation”

Delegation Context

Scenario / Context Tree

Context-based Measurements

Context-based Assignment of Roles

Context-based Business Item Inputs and Outputs

Scenario-based analysis

Step 4: Value Analysis

Value Components

Value Proposition as Objective

For Customers

May also be for Management

Value Proposition as ObjectiveValuationAppreciationWeight

From recipient’s perspective

Trace back source of Value

“Value Add”, conveyed by Output

Trace back source of Value

Value traced back further ( “Aggregated From”)

Value Aggregation

Value Aggregation

Value Formula => Value Margin

+

-

Coming: VDML Community

http://www.vdmbee.com/

http://www.vdmbees.com/

http://www.vdmbeehive.com/ VdmBees, or VBees

Community to foster VDML-related business & activity

Some References– VDML Specification:

http://www.omg.org/cgi-bin/doc?bmi/2013-11-03; non-members to contact henkdman@gmail.com

– VDML versus BPMN: http://www.omg.org/cgi-bin/doc?bmi/2013-11-01; non-members to contact henkdman@gmail.com

– VDML Blog: http://fredacummins.blogspot.nl/ – EU Project NEFFICS: http://neffics.eu/

– Capability Analysis with VDML: www.cutter.com/offers/valuechain.html

– Business Model Innovation, BM Cube: http://riverpublishers.com/journal.php?j=JMBMIT/1/3

Backup Slides

VDML versus ArchimateVDML Archimate 2.0

Business oriented, aligned with IT IT oriented, aligned with Business

Rich semantics Shallow semantics

Focus on understanding of system operation *)

Impact, Causality, Consistency, AccountabilityBasis for calculation, simulation, transformation

Focus on navigation and search only

Context-sensitiveObjects are analyzed in context

Context-unawareObjects are abstracted from context

*) Archimate addresses “Process”. Is Archimate sufficient as BPM spec? Similarly Archimate is not sufficient as VDM spec

For comparision and relation between VDML and BPMN, see http://www.omg.org/cgi-bin/doc?bmi/2013-11-01

Value Proposition Exchange

Role Collaboration

Capability Library