Value Chain Management and reference Architectures
1. Business Agility using Process Frameworks Herbert Heinzel Vice Chairman Value Chain Group H2O GmbH
2. Overview Review our Primary Reference Model, VRM What are the Business Needs for use of a Value Chain Reference Model? What have we learned so far? How can VCOR be used? Vision for Business Frameworks
3. VRM Value Proposition Our VCG strategic imperative is to create an industry open standard reference model for the value chain that gains wide acceptance and adoption. Coverage of all business domains and inter-company Collaboration Support the ongoing evolution of business Value Chain versus technology focus when introducing a new product to the market or building a new supply chain
4. What the Value Chain Operations Reference (VRM) model enables: Integration of the three critical domains under one framework: Global Product Development. Global Supply Network Integration. Global Customer Success. Collaboration with a common language, process-based syntax and semantics. Global process integration. Global real benchmarking A foundation for a successful Service Oriented Architecture game plan.
5. The Enterprise Characterized by VRM Business Mission & Strategy Corporate Governance Core Business Processes Value Value Collaboration Process Process Process Process Process Process Process Process Process Collaboration Mang. Mang. Mang. Mang. Mang. Mang. Mang. Mang. Mang. Suppliers Customers Market Research Develop Acquire Build Fulfill Brand Sell Support SRM CRM Supply Supply Network Network Dev. Dev. Support Business Processes Information Management Technology Development Human Resource Management Finance & Accounting Quality & Business Excellence Safety, Health & Environment
6. Strategic Level - Macro Processes PLAN On the Strategic Level Plan is a overarching process aligning strategic objectives with tactical and execution abilities in the value chain working in a close relationship with the Strategic Level Govern and Execution Processes in the model GOVERN On the Strategic Level Govern is a overarching process supporting Strategic objectives and enabling the value chain to operate through rules, policies and procedures in a close relationship with the Strategic Level Plan and Execute Processes in the model. EXECUTE The Strategic Level Execute Process overarches all the execution processes in the model in a strategic context to support the value-adding processes related to a product or service to customer requirements. The Execute Process operates within the limits of the Management criteria from Govern and to the parameters defined by the Plan Processes Process.
7. The VRM Tactical Level Processes The Tactical Level can be described being instituted for Horizontal Value Chain Process Re-Engineering encompassing all critical Business Domains Market Brand
8. VRM enables a Systems Based Approach Govern processes support objectives Plan processes balance requirements with and enable the value chain to operate available resources to align objectives with through rules, policies and procedures tactical and execution abilities in the value chain in a close relationship with the Plan and working in a close relationship with the Govern Execute Processes in the model. and Execution Processes in the model Govern Goals & Plan Objectives Rules, Metrics & Information INPUT OUTPUT Execute Execute The Execute processes support value-adding related to a product or service to customer requirements. The Execute processes operate within the limits of the management criteria from Govern and to the parameters defined by the Plan processes.
9. VRM aligns Strategy and ICT Enablers Organization of Value Chains and Lines of Business given priorities BUSINESS Goals, Products, through Priority Dimensions Customers STRATEGY Frameworks and methodology for Filling Aligned Measures tied to each specific layer of processes. Business defining and improving processes, sub-processes and activities the Processes Best Practices Tied to Each Specific Sub-process or activity Gap IT APPLICATIONS IT APPLICATIONS Infrastructure Options & & Specific Applications INFRASTRUCTURE INFRASTRUCTURE
10. VRM Methodology Coverage Strategic Methodology The ValueCard and all processes in Govern, Plan, and Execute in VCOR can be applied for gaining competitive advantage. Tactical Methodology The second level of the model contains processes supporting the implementation of strategic goals through tactical decisions and configurations. Operational Methodology The third level of the model establishes links between enterprise- specific activities and the value chain.
11. VRM Value Cards External Partnerships Developed with the Network Value Card Business Strategy Internal Tactical and Operational Priorities Developed with the Enterprise Value Card Domain Value Cards Tactical Configurations and Improvements Operational Improvements
12. Balanced Scorecards for Specific Domains
13. The need for Business Agility The world has changed dramatically in recent years Organizations in the public and private sector are confronted with an environment not seen before New strategies, structures, and operating practices are required to manage change and create and sustain advantage Companies need to make faster, more informed decisions communicating and collaborating immediately and effectively Companies need to better understand and serve their customers globally They need to seamlessly interact with suppliers and distributors They need to seize market opportunities faster than their competitors They need to be more efficient than ever Business agility can be achieved if BPM can Accelerate new process deployment Facilitate changes to existing processes.