Improve Your Bottom Line - Increase Your Modeling Return ... · Increase Your Modeling Return On...

©2004 Axis Software Designs, Inc. All Rights Reserved

‘Improve Your Bottom Line -Increase Your Modeling Return On Investment’

©2004 Axis Software Designs, Inc. All Rights Reserved page 2

Welcome! Let Me Introduce Myself…

Marcie Barkin GoodwinPresident & CEO

Axis Software [email protected]


Increase Your ModelingReturn On Investment (ROI) v The Essential Problem

4Are You Reinventing the Wheel?v The Goal –Increasing Your Modeling ROI v The Advantagesv How Much Can You Save?

4Let’s Do The Numbers!v How Do We Get There?

4Review or Establish a Modeling Infrastructure4Standards & Procedures4Model Management Quality Assessment

4Guidelines


The Essential Problem

How can you save time & money in your modeling efforts if you keep reinventing

the wheel with every new project?

“It’s astonishing, in this world, how things don’t turn out at all the way you expect them to.”

Agatha Christie


The Essential Problem (cont.)

The real problem is that most organizations don’t have a model management infrastructure.

And without an infrastructure, you cannot gain any ‘modeling ground,’ increasing your ROI as you continue to build models.


What IsModel Management?

Model management is the method by which data and process models are developed,

maintained, used & reused within a model development life cycle.

And a Model Management infrastructure is theestablishment & formal documentation of the standards & procedures used to apply model

management.

MO

DE

L


Without Model Management…

Without a model management infrastructure in place, you will experience:

v Inconsistent model content & procedural confusionv Creation of redundant and/or different data structuresv Miscommunication between modelers, analysts, users

& managementv Lack of meaningful documentationv Model rework - and not because the process is iterative v Inability to share knowledge between projects


The Goal –IncreasingYour Modeling ROI

Creating a model management infrastructure, with reusability as the key goal, is the answer.

“Goals are dreams with deadlines.” Diana Scharf Hunt


The Goal –IncreasingYour Modeling ROI (cont.)

A long term strategy for increasing the modeling investment includes a commitment to time & money saving goals, including:v Models which are ‘jump started’ by previously used

& approved logical & physical model objectsv Reliable communication of consistent model

informationv Procedures which facilitate efficient model

development


The Advantages –

There are significant benefits to meeting ‘ROI’ goals, ALL of which will save time & money on every subsequent project:v Reusability of logical & physical model objectsv Establishment of an efficient model development life

cyclev Creation of accepted, shared data structures across

modeling projects v Reduction of redundant & conflicting data structuresv Increased communication of model definitions


How Much Can You Save?

Saving money is a direct result of your ability to reuse model components –from your first

model to your last…

Let’s do the ‘reusability’ math with a very conservative case study.


Let’s Do The Numbers

Even with small projects, the savings delivered by investing in a model management

infrastructure is significant.The Example:Let’s use a data model consisting of:v 15 fully attributed entities with 10 attributes per entityOther statistics:v Our small project team consists of 3 peoplev Project completion is assumed to be approximately

30 days


A Definition Of Terms

What is a fully attributed entity?A fully attributed entity is defined as one in which the:4 Entity has a definition4 Attributes have been created & defined4 Attribute length & format have been assigned4 Approval process is complete

The steps we took:To obtain a fully attributed entity, we conducted interviews to determine candidate entities & attributes. During the ‘candidate process’, we:4 Reconciled entity/attribute property differences4 Resolved issues4 Reviewed & approved entities/attributes for signoff

Terms


Here Are The Numbers

Hours Required to Obtain Fully Attributed Entities in a Logical Model:4 Total number of entities: 154 Total number of attributes per entity: 104 Total number of attributes: 1504 Hours to define each entity: 14 Hours to define each attribute: 3 hours

Total Number of Hours: 46515 entities x an average of 1 hour = 15

+ 150 attributes x an average of 3 hours = 450

Note: Naturally, different entities & attributes take more or lesstime to define. We’re using 1 & 3 hours as averages.


Here Are The Numbers(cont.)

Team Members Involved in the Process:4 2 Business Users (domain experts)4 1 Modeler/Analyst

Total Number of Team Members: 3 (It’s a small team…)

Time Investment per Team Member Based on Total Hours Required (465 from above):4 Business User 1: 105 hours (13 days)4 Business User 2: 105 hours (13 days)4 Modeler/Analyst: 255 hours (32 days)

Note: Time does not reflect scheduling problems, days off, etc. and assumes that the team is working concurrently.


Here Are The Numbers(cont.)

Salary Assumptions:4 Business User 1: $65,000 per year4 Business User 2: $65,000 per year4 Modeler/Analyst: $75,000 per year

Project Cost per Team Member:4 Business User 1: $22.57/hour x 105 hours = $ 2,3704 Business User 2: $22.57/hour x 105 hours = $ 2,3704 Modeler/Analyst: $26.04/hour x 255 hours = $ 6,640

Total Initial Investment: $11,380Note: Hourly Calculation is based on Annual Salary/12 months/30 days/8 hours


Here Are The Numbers (cont.)

Let’s look at 3 scenarios, each having a different percentage of reuse.

All 3 scenarios are based on:

§ 4 modeling projects per year§ The same initial investment of $11,380 for the first project

(model)§ A potential post investment model cost of $34,140 ($11,380 x 3

models)


The Sample Case Studies

Based on the assumptions from above, we offer 3 examples, each having a different percentage of reuse:

0% model object reusability –NO infrastructure 25% model object reusability –Infrastructure in place50% model object reusability –Infrastructure in place

The models with 25% & 50% model object reusability represent environments that have implemented a model management infrastructure.

Remember, the first model built at a cost of $11,380 is an investment, and is not part of the loss calculation.


$5

$10

$15

$20

$25

$30

$35

0% Reuse 25% Reuse 50% Reuse

Initial Model Cost

Actual AdditionalModel Cost

Actual AdditionalModel Savings

$K

Dollars Saved$8,535$0 $17,070

Reuse ROI Chart


The Numbers Say It All -

Your modeling return on investment depends on the percentage of reusability of model components.

Most organizations continue to build models from scratch, instead of creating an infrastructure which facilitates using previously developed & defined model objects.

As we’ve seen, the ROI you achieve is directly affected by how much, and how well (consistent definitions, etc.), you reuse your ‘investment’ model objects in each subsequent model.


How Do We Get There…

Here are a few suggestions for building a model management infrastructure.

v Review or Establish Your Modeling Infrastructure 4 Reuse is the strategy4 Documentation is the means

v Standards & Procedures4 The critical lists

v Model Management Quality Assessment4 Guidelines


Review Or Establish Your Modeling Strategy

A strategy implies both short & long term goals.

v Ensure that the short term goals support the long term vision of reuse

v Ensure that your infrastructure supports your strategyv Require management’s understanding and support of the

‘big picture’ –the ROI of a modeling strategy

“Spare no expenseto make everything as economical as possible.”

- Sam Goldwyn


Let’s Talk Standards!…

Documentation of model standards is critical.

And standards don’t have to be unreasonable! They should be established for the purpose of:

v reusability of model objectsv effectiveness (non-redundancy) of model objects

across the organizationv ensuring reliability of data structures


Let’s Talk Standards!

At a minimum, standards should apply to the following:

v The selection of a standardized modeling toolv The selection of a model development method

4IDEF, IE, etc.v Naming & Format (where applicable) standards:

4Diagrams4Logical & Physical data model objects4Library or Encyclopedia objects (if appropriate)


Let’s Talk Standards!

As well as:

v Standard Abbreviationsv Corporate Acronymsv Documentation requirements

4Mandatory4Optional


And Procedures!…

Documentation of modeling procedures is critical.

Procedures communicate important information. Theyshould be established to help:

v resolve difficulties & confusionv protect work in progressv provide a structure to facilitate development

They should be effective and efficient, not overlylaborious...


And Procedures!…

Here is a suggested ‘basic’ list for the procedures thatshould be developed & documented:

v Creation & Population of models v Submission at phased deliverablesv Model Reviewsv Non-Conformancev Change Control


And More Procedures!

v Model Migrationv Logical & Physical Model Synchronizationv Versioningv Back Upsv Issue Resolutionv Stewardship (Ownership)v New User Education (tools, standards, procedures)


Model ManagementQuality Assessment…

The quality of your model management infrastructure is largely reflected in the answer to a simple question –

Are your modelers engaged in the process?

v Are the standards & procedures well written, easy to follow, sensible & up to date?

v Does the infrastructure provide efficient, time-saving methods that help, rather than hinder the modeler’s work?

910 8


Model ManagementQuality Assessment… (cont.)

“People will support that which they help to create.”

If standards & procedures are cumbersome & overly complicated, they are generally ignored.

And so, the wheel gets reinvented (yet again).

Here are a few suggestions, or guidelines, for the way in which a model management infrastructure may be

assessed or built.


Guideline #1

“He who demands little gets it.” Ellen Glasgow

1) Determine your model management strategyv Make a commitment to a long term strategyv Base your strategy on reusev ‘Sell’ the strategy to management, modelers,

analysts & anyone who will listen


Guideline #2

“If you obey all the rules, you miss all the fun.” Katharine Hepburn

2) Make it real…v Ensure that all new standards & procedures support

the strategyv Review existing standards & procedures to validate

their compliance with the strategy goalsv Don’t add anything that isn’t critical or useful –no

one has the time to deal with it


Guideline #3

“All other things being equal, the simplest solution is usually the correct one.”

William of Occam, 14th Century

3) Keep it simple… v Write standards & procedures as simply as possible

to achieve the desired goalv When reviewing existing documentation, look for:v clarityv completenessv efficiency


Guideline #4

“Good judgment comes from experience, and experiencecomes from poor judgment.”

4) Ensure that all infrastructure documentation isaccessible & current

v Elicit opinions regarding the efficiency of the standards & procedures

v Modify the infrastructure if necessary so that it facilitates the modeling process, not hinders it

v Make adherence & enforcement a team goal


Guideline #5

“Man who stand on hill with mouth open will waitlong time for roast duck to drop in.”

Confucius

5) Assign a ‘Model Administrator’ who will facilitate:v Continuity & consistency of model informationv An ‘umbrella’ view of models without biasv A potential resource for updating standards &

proceduresWhich might include the following…


The Art Of Reusability

§Administrative Change Control§Backup§Model Merge§Versioning

Model Maintenance6.

§Logical Model Submission & Deliverables§Non-conformance§Logical Model Review Form§Logical Model Submission Checklist

Model Review & Approval5.

§Issue ResolutionResolve Issues4.

§Model Change Control§Notification & Update§Stewardship§Change Control Form – Logical Shared Objects

Reconcile Model Object Differences3.

§Logical Data Model Object Naming§Class Word List §Logical Domain List §Stewardship

Develop Entities/Attributes2.

§Modeling Strategy - Design Layer Architecture§Diagram Naming§Model Creation & Population

Create a model diagram and determine existence of required entities/attributes .

1.

Associated Infrastructure Best Practice (s)

ActivityStep #


In Conclusion –

The absence of a Model Management infrastructure increases costs by contributing to an inefficient modeling environment which perpetuates:

v Lack of reusability

v Insufficient analysis leading to implementation & production errors

v Procedural confusion leading to a slower project development life cycle & missed deadlines

v Lack of communication causing inconsistent & unacceptable model quality


It’s Been Grand...

We Can Do Better!

The ‘up front’ time investment thatyou make to create a model management infrastructure is a soundfinancial investment.

Let’s commit to building quality models which we can share and build upon –and improve the bottom line at the same time.


I’d Like To Thank All Those People...

Who Made This Presentation Possible…


Products & Services

Axis Training4Data Modeling Concepts4Data Modeling with AllFusion ERwin4Process Modeling with AllFusion Process Modeler4Process Modeling Overview for Business Users & Managers

Axis Products4Data Modeling SOS! - a critical Set of Standards

Axis Services4Model Management Consulting & Audits4Modeling Standards & Procedures Consulting

Call us at 303-415-1090 or visit our website at: www.axisboulder.com

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