Business Modelling and Processes_Guide
-
Upload
jaime-brown -
Category
Documents
-
view
220 -
download
0
Transcript of Business Modelling and Processes_Guide
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 1/21
Where you need Business Modelling within
ASAP
© ValueTeam 2011/Page 1
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 2/21
How it all connects
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 3/21
What is a Business Model
A firm’s profitability is determined by both industry factors and firm-specific
competencies (positions, activities/capabilities, and resources). Thus, because
business models are about making money, a business model must also depend on
the factors that determine a firm’s profitability. That is, a firm’s business model is a
function of its positions, core critical competencies (CCCs), and non core
competencies (NCCs) and the attached main and supporting processes and the
industry’s factors.
A business model is about competencies, which when combined together, build a
framework for making money. It is to use the competencies in a set of activities that a
firm performs, how it performs them, and when it performs them to offer its customers
benefits they want and to earn a profit.
© ValueTeam 2011/Page 3
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 4/21
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 5/21
What is a Business Model and how is it used
© ValueTeam 2011/Page 5
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 6/21
How to use the Business Model input in the Process
Modelling and Application Modelling perspective
Core Differentiated The core differentiating competencies (CDCs) must be differentiating to the industry average. They should be supported bySAP Own Practice and Performance and Value Drivers need to be identified in order to ensure wished results/benefits
Core Competitive The core competitive competencies (CCCs) must be at least industry average, but diminishing returns beyond that point. They
should be supported by SAP Own Practice and Performance and Value Drivers need to be identified in order to ensure wished
results/benefits
Base (Non-Core) The Non-Core Competencies (NCCs). Within this area there are the low value processes which should be operated effective at
the lowest cost possible. They need to supported by SAP Best Practice and Performance and Value Drivers need to be identified
in order to ensure wished results/benefits
Source: Prof. Dr. Mark von Rosing
© ValueTeam 2011/Page 6
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 7/21
Whereas the SAP system Best Practices are vital to cut costs, for example, fastimplementation, fewer mistakes, standardization, and less risk, because it is proven to
work, this automated process enablement can’t be applied in the area of Core
Competetive Competencies (CCCs) that enable core competitive and core
differentiated competencies. However, even if a firm offers the right customer value to
the right market segments and does so better than its rivals, it is still possible that the
firm might not be profitable. That is, superior relative customer value offered to the
right customer segments, although necessary, is not always a sufficient condition for
profitability. Therefore, the cost of making money is a vital ingredient for succeeding.
Offering the right value to the right customer segments and being positioned
advantageously vis-à-vis suppliers, customers, rivals, potential new entrants, and
substitute products may still not be enough for a firm to capture the revenues that its
positions suggest it should. To keep the cost low a company should standardize its
Non-Core Competencies NNCs and thereby all the attached processes in this are in
applying SAP system Best Practices to all NNCs and the attached management, main
and supporting processes.
How to use the Business Model input in the Process
Modelling and Application Modelling perspective
© ValueTeam 2011/Page 7
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 8/21
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 9/21
Blueprinting based on Business Modelling
© ValueTeam 2011/Page 9
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 10/21
Business Model levels and the connection
to Process Model Levels
Business Model Hierarchy
BPM Process Model Hierarchy
Business Model
Competency
Areas / Categories
Business Model
Competency Group
Business Model
Competency
Business ModelCompetency
Elements
Business Model Competencies and
Processes can, and should, be interlinked.
These are the main business areas and thereby
process categories which produce external and/or
internal value. Example: Sales – As this is neither a
scenario nor a transaction, this cannot be integrated
into SAP, but is needed to scope the business area.
Every Process Business Area's main process
consists of more than one level 2 process groups
which describes it in detail.
Example: Sales Processing – this can be used inSOLMAN as an SAP solution scenario.
Process groups will be described as a set of
level 3 processes (Business Process).
Example: Create Sales Order – this is the first
level SAP transactions.
Level 4 is at least needed to map To-Beprocesses to SAP solutions.
Example: Sales Order for known customer
- SAP transactions.
Level 5 is ideal to map To-Be process
activities and its different variances to
SAP Solutions.
Example: Sales Order Invoicing - SAPtransactions.
© ValueTeam 2011/Page 10
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 11/21
Process view and Business Model are not the same, but
are complementary and are needed in any engagement
• C ompetencies by
(re-) grouping activities
• Activities have input /
output -> consolidation
into Competencies
defines competencyinterfaces
• Organization = A set of
Competencies
networking together
Business process descriptions are alreadyavailable in many client organizations
• Business Model as a new dimension to align
business processes and process architecture
• Through Business Model and process
linkage, identification of business issues,
pain points and weakness clusters
•"Activities" as linking part between BusinessModel and process view
• Complementary views, e.g. prioritize "hot"
Core Critical Competencies (CCCs) with
Business Model transformation and
innovation potential
Matching the Business Model and the processes gives the company:
• The much needed "link" to Strategy in the processes and thereby the applications
• Identification and mapping of Core Competitive Competencies (CCC's) – either Core Competitive or Core
Differentiated
• Identification and mapping of Non-Core Competitive Competencies (NCC's)
• Identification and mapping of Value and Performance Drivers
© ValueTeam 2011/Page 11
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 12/21
Process Example:
Operations Support Planning
© ValueTeam 2011/Page 12
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 13/21
Process ExampleSales Service:
Understand markets and customers
Sales & Service: Understand markets & customers:
Management Processes
-Develop target segments strategy
-Decision Making Processes in quantifying market opportunities
-Determine target segmentsPrimary Processes
-Conduct customer and market research
-Identify market segments
-Analyze market and industry trends
-Analyze competing organizations, competitive/substitute products
Supporting Processes
-Perform customer and market intelligence analysis reporting
-Evaluate existing products/brands
-Assess internal and external business Environment
-Evaluate and prioritize market opportunities-Prioritize opportunities consistent with capabilities and overall strategy
-Validate market changes and opportunities
© ValueTeam 2011/Page 13
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 14/21
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 15/21
How to define High Value and Low Value
Processes based on 4 basic principles
Strategic Importance Legend:
High LowMedium
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 16/21
Example of Process Prioritization audit
Strategic Importance Legend:High Medium
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 17/21
Automotive Example: Sales & Promotion Planning –
Identified Value Clusters (Value Drivers and
Performance Drivers)
Strategic Importance Legend:
High Medium
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 18/21
Example of defined Measurement areas around the
defined Performance & Value Drivers
© ValueTeam 2011/Page 18
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 19/21
SAP Blueprinting: Business Architecture Template
applying the Business Model as well as Value identification input
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 20/21
If you have any questions or want more information (e.g
examples or industry versions), please feel free to contact the
IC owner: [email protected]
© ValueTeam 2011 / Page 20
Application Lifecycle
Process Lifecycle
Value Lifecycle
Service Lifecycle
Scorecards & Dashboards
www.LEADEnterpriseArchitect.com
Business Process Management
Business ModelBusiness Architecture
8/12/2019 Business Modelling and Processes_Guide
http://slidepdf.com/reader/full/business-modelling-and-processesguide 21/21