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Create and Secure Value
Value Delivery Modelling bee
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What are your Values?
• Can you mention your 5 important non-financial Values?
• Shared with your stakeholders, management, peer group and staff?
• Would you like to know their 5 important non-financial Values?
• Better Businesses Innovate and Transform continuously to Create and Secure Value
• What’s blocking you to be a Better Business? >> Misalignment!
• Do you know? 70 % of all IT projects failed to deliver?
80 % of purchased licenses are not used?
Management give instructions but Operations is doing their own thing?
Business satisfaction with IT offerings is still < 30 %
Implementing documented Business dreams has a very low success rate
Packaged Functions and Features are no guarantee for fit for purpose
• We prevent this and increase your success rate by 70 %
• What need to happen now? Manage your Value Delivery with VDMbee
Incrementally build Better Business first time right to reduce cost
Challenge 2
Set your Strategy right and align disciplines to become a better Business
>> organize your Value Delivery
Who are you today? And tomorrow? 3
5
44
4
29
11
12
39
7
17
5
24
3
Customer Value Model Customer Service Model
Revenue Model Cost Model
Performance Model Operating Model
Source: www.LEADingPractice.com
Business & EA Research: 1765 CEOs and 2936 business leaders representing all major countries
Where did the participating CEOs and leaders put their emphasis on? (Percentages are rounded)
3
7
4
6
8
19
12
18
18
25
35
43
31
32
44
38
35
25
37
30
27
24
19
11
18
13
8
8
4
2
Infrastructure Architecture
Security Architecture
Application Architecture
Integration Architecture
Information Architecture
Business Architecture
Not addressed
Implemented only a small part of what we really need
Implemented a moderate amount
Implemented a very large percentage
Implemented nearly all of what we will need
Action is needed 4
1
2
3
4
5
6
Business Priority
1. Link to Strategy (Strategic Business Objectives ) 2. Improve Competitiveness (growth & cost
potential) 3. Link to Business Model 4. Service Model Innovation & Transformation
5. Link to the Critical Success Factors (CSFs) of the organization
6. Operational Excellence 7. Decision Making 8. Agile
Underpinnings for priority 1 for Business Architecture:
What is the current state of the Enterprise Architecture program? (Percentages are rounded)
Source: www.LEADingPractice.com
Business & EA Research: 1765 CEOs and 2936 business leaders representing all major countries
>
Business agility by shared Values and ‘my’ contribution 5
Change Cycle:
1-2 years(s)
3-6 months
6-10 years
6-10 years
Business
Strategy
Change Cycle:
Business Needs
Supporting Technologies
Business
Tactics
1-3 months Business
Operations
Application
landscape
IT
landscape
Sales Manufacturing Operations
• Why VDMbee Value Delivery Manager?
Running a large Software Factory
BPM and ERP experience
Aligning Business, Operations and IT
We make software (30 years)
We see demand from Academies (>300) for software support (early birds)
Peter Lindgren, Mark von Rosing, Henrik von Scheel
Industry associations document their practices
Introduction 6
• Rewarded with an European Commission (EC) funded project (Neffics)
Vlastuin engineering, SINTEF (Norway), University of Aalborg (Denmark), Hospital Sant Joan de Déu
Proven in 5 cases a.o. Vlastuin Engineering
• Delivered Value Delivery Modelling Language as OMG standard
• How?
Support strategy development
Understand impact when changing or introducing capabilities
Identification and elimination of redundant efforts
Registration and promotion of:
Capabilities and Enterprise Services
Grow business architecture gradually
Provide project vision and direction
Introduction to Value Management 7
• Create and secure Value:
Alignment of Strategic Objectives, Tactical demands and Operations
Smart re-use or creation of Capabilities for Innovation
Reduction of Time to Market
Cost reduction
Answers to difficult questions
• By who?
Enterprise Designers
Management
Business Consultants
Business Strategists
Solution Providers
Investment and execution of Value Management will pay significant dividends
VDMbee Value Delivery Manager 8
To Be As Is
As Is To Be
An organization wide, guided, structured and consistent process to innovate, develop and
transform your Business and related Business Models with the objective to align all
stakeholders for decision making and control, based on tangible and intangible values
Value Management Spiral, how does it work? 9
Strategic transformation plan
Business Model Portfolio
To Be As Is
Business Value
Business Innovation and Transformation
Proposition: manage your value delivery 10
Challenges CEO COO CFO
Chief Human Resource Officer
Chief Sales Officer
Chief Information Officer
Create and Secure Customer Value
Company/Industry/Government Compliancy matters
Tangible vision
Align strategies across business units
Streamline merger and acquisition activity
Deploy new business models and strategies
Plan and fund portfolio investments
Plan and fund IT investments
Align business and IT architectures
Align packaged IT offering with business
• Gain insight in different business scenarios for decision making and securing value:
What contribution is made by who
How things get measured
Insight in Cost, Waste, Bottlenecks
Insight in and optimization of Values
Financial and non-Financial Values
To manage business risk
• Support business transformation process with detailed knowledge about:
How things get done
Which stakeholders are involved
How things get organized
What do you get with VDMbee Value Delivery Manager 11
• Unique OMG/VDML contribute:
Common language
Openness
Knowledge sharing
Re-use and Standardization within your Value Network:
Capabilities
Roles
Value Proposition
Measurement
Layered Value Management, how does it work? 12
Define
Measure
Analyze
Improve
Control
Improvement/innovation focus
Value aspects to be considered
Project planning and scope
Data collection
Data cleansing
Create/Update AS-IS
Create/Update measurements
Zoom into problem area:
Detect issues
Root-cause value deficiencies
Problem protection
Transformation
Measure impact
Experiment, Proof-of-concept
Solution selection
Discover and Ideation
Monitor Business
Manage Compliance
Evaluate Objectives
Communication Challenges that impact AS-IS
How does it work?
• Projects can start with one of the layers
• Due to VDML based model, data is re-used in each layer
• Projects follow the DMAIC-cycle
Business Value
Layered Value Management, how does it work?
Business Value
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Layered Value Management, how does it work?
Answering the questions:
• Whom do we serve (customers, users)
• What value do we deliver (value propositions)
• How do we deliver value (activities)
• What do we need (capabilities)
• Whom do we involve (network partners)
• What do we gain (profit /value formula)
Business Value
14
Business Value
Layered Value Management, how does it work? 15
Activity Network (Activities)
Role Collaboration (Customers)
Value Proposition Exchange
Layered Value Management, how does it work? 16
Capability Management (Capabilities)
Capability Map/Library (Capabilities)
Business Value
Better Businesses Innovate and Transform continuously
to Create and Secure Value
VDMbee for Enterprises, Solution Providers & Software Vendor 17
Solution provider Differentiate your services with
value-add propositions
• Value Delivery focused strategy planning
• Detailed insight how things are done for better projects
• Industry knowledge for consistent results
• Early participation in improvement cycle
• Control investment risk
Enterprise More agile business
Effective transformation
• Increase success rate by 70 %
• Alignment of Strategic Objectives, Tactical demands and Operations
• Smart re-use or creation of Capabilities for Innovation
• Reduction of Time to Market
• Cost reduction
• Answers to difficult questions
Product provider (ISV, etc)
Enrich Solution portfolio with optimized
Business models
• Strategic advisory role to your customer by participation in improvement cycles
• Value oriented sales approach by focussing on improved Values delivered by Solution portfolio
• Effective transformation (AS-IS/TO-BE)
• Higher sales conversion
• Control implementation risk
• Improve Time-to-value
• Set Industry benchmarks
• Turning your business into a value network
Focuses on the flow of deliverables and contributions of value
Value-driven business design provides higher level of abstraction of the
business
• 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
Early adopter: Jenny Huang ICT Standards Strategist at AT&T
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• Identifying and modelling value aspects … is one of the most common challenges within all disciplines of value management
• Working with OMG to deliver a standard … lays the foundation for software enabled value modelling
• I’m very impressed by VDMBee, not only about their leadership in this field, but also the ability to develop a tool that brings the technology that bridge and connect: strategy, resources, capabilities, process and the various value offerings
• This … provide new opportunities for both Executives, Managers as well as practitioners in the value space e.g. Value Experts, Value Engineers and Value Architects in addition to Business Analysts and Business Architects around the world
Early adopter: Prof. Mark von Rosing Global University Alliance Board Chairman & Leading Practice Founder
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• Various approaches exist in the area of value modeling and business ontology
• VDML integrates the essences of these into a coherent meta-model, that also enables alignment with operations and IT
• Using VDML as structured modeling foundation will also bring new opportunities in service science
Early adopter: Prof. Geert Poels Full professor of Management Information Systems at Ghent University
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Action required
Manage your Value Delivery
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Contact:
