Monday, September 3, 2018

VDML for Business Architects: Part 6 of 11, Measurements

Please see the post for VDML for Business Architects: Part 1 of 11, for the introduction to this series of posts.  This part is focused on the implementation of measurements supported by integration of the Structured Metrics Metamodel specification (OMG).
1.    Statistical measurements

VDML measurements are statistical rather than measurements of individual transactions or operations.  This eliminates much of the complexity of flow control in business process models and is better suited to executive mental models and decision-making.  A measurement may be an average or parameters of a statistical distribution as appropriate to support a desired level of analysis.
2.    Context-based measurements

Measurements are in the context of a selected scenario, as noted in Part 2.  However, a collaboration (capability method) may be applied in different contexts—different activity networks and/or different delivery organizations.  These measurements are determined by the particular context in which the capability method is applied.
3.    Rapid evaluation of measurement adjustments

Changes to business design or performance measurements can be immediately evaluated in value stream effects and value propositions, for multiple value streams and lines of business.
4.    Market-based value contributions

In addition to differences in scenario and capability method applications, different value propositions may have different customer satisfaction computations and weights associated with customer preferences such as for different market segments or products.
5.    Product mix impact analysis

Using scenarios, different product mixes can be evaluated and their impact on performance and market value propositions can be compared, analyzed and affected.

VDML for Business Architects: Part 7 of 11, Accountability

Please see the post for VDML for Business Architects: Part 1 of 11, for the introduction to this series of posts.  This part describes how VDML represents the accountability of people and organizations for the management and operation of the business.
1.    Collaboration accountability

Collaborations are the context for all work of the enterprise and interactions with customers and business partners.  Participants in collaborations are accountable for their roles in collaboration activities and organization units in which they are assigned to positions.  Collaborations generally will have a leader/manager role that carries primary responsibility for the overall performance of the collaboration.
2.    Value contribution accountability

Value contributions including cost, timeliness, quality/defects are attributed to capability methods and their activities that are associated with organization units that apply and/or are responsible for the implementation, staffing and improvement of those capability methods.
3.    Accountability to multiple value streams

VDML value streams trace the values of value propositions back to their sources of value.  Conversely, the values of a single activity or capability method can have an impact on multiple value streams.  Both dimensions are important for understanding the impact of changes, particularly for shared capability methods.
4.    Personnel and resource accountability

Organization units are the focus of operational management of the application of capabilities (capability methods).  As such, they have primary responsibility for staffing those capability methods and ensuring availability of the resources required to perform those methods.  Value stream analysis and comparison to actual performance or benchmarks provide a basis for holding specific organization units responsible for their performance.
5.    Policy compliance accountability (proposed VDML extension)

A directory of regulations, policies and requirements must identify the capabilities and activities where compliance must be enforced by the associated organization units.  In some cases this is a matter of monitoring measurements, and in other cases, it involves reporting of oversight/monitoring activities.
6.    Accountability for objectives (proposed VDML extension)

Objectives are elements for monitoring measurements toward a target.  An objective may monitor a single measurement or a complex of measurements, including dependence on completion of other objective(s).  An objective is linked to the responsible organization unit or organizational role.  And the overseeing organization unit or role.  Reporting methods must provide displays of selected sets of objectives of interest to the organization units or roles involved.
7.    Accountability for transformation contribution(s) (proposed VDML extension)

Each phase of a transformation plan identifies the capability methods and/or activities that must be changed, added or deleted.  These are linked to the organization units responsible for the development/acquisition of method/activity design, personnel and acquisition of resources. and implementation.  These provide the basis for setting objectives for the currently pending transformation phase.
8.    Capability performance accountability

Performance of a value chain stage (ref. Michael Porter) is the responsibility of the organization unit responsible for the collaboration or capability method(s) that compose that stage—generally responsibility for the specific stage of a line of business.  The value streams of that stage identify the contributions and thus the performance of capability methods recursively engaged to support that value chain stage.
Many of these capability methods are shared with other lines of business and value streams, and they may not be in the same management chain.  Thus, each capability method is responsible to the users of its services and the operations that consume its deliverables in addition to the organization that manages the capability method operation, resources and the people that perform its roles.  The VDML model represents all these relationships and supports measurement of the dependencies and the impact of changes.

VDML for Business Architects: Part 8 of 11, Value Contribution Analysis

Please see the post for VDML for Business Architects: Part 1 of 11, for the introduction to this series of posts.  This part describes the nature of value streams and their impact on value propositions.  A value stream is the sequences of activities and value contributions that feed a value propositions for particular customers.  A value stream may have many tributaries that converge on a value proposition.  A capability method may participate in multiple value streams.
1.    Value chain stages that aggregate value measurements

Value chain stages (based on Porter’s value chain) are collaborations (capability methods) that delegate to more operationally specific capability methods.  Each value chain stage contributes the aggregated values of the activities and capability methods it engages.  The aggregations extend to delegated capability methods to the extent the model is completed or until contributions of further delegations are estimated or derived from actual operational measurements. This provides meaningful value measurement contributions that are estimated without added cost and time required to develop a more robust model.
2.    Value proposition reflects a customer perspective

A value proposition does not only capture the value measurements associated with the delivery of a product or service, but the measurements are translated to levels of customer satisfaction and weighted according to customer priorities for overall expected satisfaction.  Consequently, it expresses the values that the enterprise expects to deliver to the customer from the customer’s perspective.
3.    Satisfaction level computations

A value proposition component (a line item in a value proposition) provides for the translation of a value measurement to a customer satisfaction level.  This computation will depend on the value type and the target market.
4.    Weighted satisfaction levels

Each value proposition provides for a weight on each value type reflecting the level of interest of customer(s) in the target market.  These provide for computation of a weighted average for an overall value proposition level of customer satisfaction.
5.    Activity-level value contributions

VDML captures value contributions of individual activities to be aggregated up value streams in support of value proposition computations.  The need to assess value contributions at the activity level of activities was recognized by Michael Porter as a limitation of the generally accepted approach to value chain modeling.  Activities can be aligned to actual business operations for capture of actual measurements or development of estimated measurements.
6.    Unit of production value impact

Measurements are based on a unit of production within each capability method.  This enables computation of averages where activity flows converge or diverge.  It also enables the contributions of a capability method engaged by delegations to be appropriately adjusted according to the fraction of units of production contributed by the engaged capability method.  VDML supports these adjustments to the value measurements returned from a delegation.
7.    Value proposition impact analysis

When changes to a capability method affect value measurements, these changes will propagate through all of the value streams in which it participates to update all of the associated value propositions.  A display can trace these value streams to identify the affected value propositions and show the impact.
8.    Multiple market segment value propositions

A value stream may feed different value propositions for different customers or target markets.  Each value proposition then has satisfaction computations and importance weights appropriate to the particular customer or market segment.
9.    Value streams with shared capability methods

Capability methods can be shared across value streams and lines of business for economy of scale and enhanced agility.  Value and performance measurements depend on each context and the scenario.
10. Enterprise-level performance optimization

Capability methods may be engaged by multiple lines of business with different performance measurements, costs and defect rates. Changes to capability methods can be immediately evaluated across all affected value streams and lines of business to measure, balance and optimize adjustments from an enterprise perspective from individual activities to value propositions.

 

VDML for Business Architects: Part 9 of 11, Executive Dashboard Support

Please see the post for VDML for Business Architects: Part 1 of 11, for the introduction to this series of posts.  This part highlights potential application of VDML to define the structure and content of an executive dashboard.  An executive dashboard provides current information about the state and operation of the business. 
1.    Executive dashboard abstraction

VDML provides an abstraction of multiple perspectives on the business suitable for the structure of an executive dashboard.  Operational measurements can be periodically imported for executive monitoring.  This provides operating measurements based on actual operations in the context of a VDML model that is easily understood and explored by executives.
2.    Executive queries

An executive can browse the dashboard based on the VDML model of the business.  For example, an executive might examine the sources of particular value contributions in a value proposition, identify the organizations responsible for those value contributions and examine the effects of these values on other values streams and value propositions.
3.    Ad hoc operating objectives in an executive dashboard

Objectives can be attached to VDML measurements to assess progress as measurements track actual operations in an executive dashboard.
4.    Dashboard exception alerts

Variance measurements in an executive dashboard can be tracked to provide alerts for variations that exceed acceptable tolerances.

VDML for Business Architects: Part 10 of 11, Agile Business Architecture

Please see the post for VDML for Business Architects: Part 1 of 11, for the introduction to this series of posts.  This part describes a recommended business architecture supported by VDML.

1.    Service oriented architecture

VDML is designed to support a service-oriented architecture with services defined by collaborations, particularly capability methods.  However, VDML can also model a silo-oriented architecture and facilitate transformation to a service-oriented architecture by carving out and consolidating capability methods.
2.    Business partner ecosystem

Business network models support analysis of relationships with business partners such as exchange of value propositions and deliverables.  In successful relationships, each participant must realize adequate benefit to sustain the relationships.
3.    Business function outsource modeling

Outsourcing moves business capabilities to services provided by an external business partner.  The VDML business model provides the basis for identification of operations to be transitioned and the points where interactions must occur to engage and oversee the outsourced capabilities.
4.    Meta-methods operate on mainstream operations
 
Certain capabilities operate on the elements of the mainstream business.  For example, maintenance and repair services operate on machines.  Personnel services manage personnel records and benefits.  Financial services manage billing, payments and inventory records and transactions.  Strategic planning activities analyze current circumstances and evaluate potential strategies, transformations or improvements.  Such operations can be modeled in VDML with elements of the mainstream operations represented as business items.

VDML for Business Architects: Part 11 of 11, Business Transformation Extension


Please see the post for VDML for Business Architects: Part 1 of 11, for the introduction to this series of posts.  This part describes the extension of VDML to support business transformation planning and management.
Failure to achieve and maintain a shared understanding of a business transformation is a major cause of failure to achieve expectations.  VDML supports development of a consistent business design that ensures a clear understanding of intent and requirements across affected organizational units.
2.    Incremental transformation phases (proposed VDML extension)
Incremental transformation phases are represented as VDML model scenarios with the expectation that each scenario represents a viable operating model as an interim step in the transformation.  Transformation work is identified based on the changes from one phase scenario to the next.
3.    Transformation details (proposed VDML extension)
Transformation requirements must be evaluated based on the input/output requirements of the changed capabilities. Changed capabilities must be analyzed to determine the requirements for other source or recipient capability methods.
Oversight of transformation progress is supported by key objectives. Of primary interest are objectives to achieve the next phase of the transformation plan.  Objectives identify the responsible manager and persons with an interest in progress on the objective.
Changes required to capability methods, resources and organizations will have impact on related capability methods and organizations linked through deliverable flows and delegations.  These consequential changes must also be identified in the transformation plan for each phase.
The transformation plan identifies changes by phase, and the associated scenarios determine dependencies and responsibilities affected by those changes.  Consequently, objectives for each phase can be generated for the required changes along with dependencies between objectives based on the requirements for completion of each phase of the transformation plan and dependencies based on deliverable flows within the phase.

 

Monday, August 27, 2018

Multiple Vocabulary Facility Progress Report

Since my post in April, 2016, there have been submissions to the OMG (Object Management Group) RFP (the RFP is available at https://www.omg.org/cgi-bin/doc?ad/16-03-04 ).  The goal is to define a standard facility that can be used to implement multiple vocabulary capabilities in implementations of OMG modeling languages.  The submitters have joined together to develop a single specification and submitted a joint draft on February 19, 2018.  There is agreement on a core structure that will enable a modeling language user to select a preferred vocabulary for terms that appear in that user's interactive interface.

However, there are some unresolved issues regarding the details of the specification.  For example, in a single vocabulary, the same term may be used to represent different elements in the same model.  In a business process model, an activity name may be used for different activities in different processes.  The meaning of the activity name depends on the process context.  Thus, a term may represent different concepts in different contexts.  This is fairly common in programming languages and models.  This is a characteristic of a modeling language that affects the representation of elements in the models it creates. Thus restricts the user's selection of terms new elements are added to a model, and it restricts another user who builds another vocabulary to represent the concepts of the model for a different community of users.

There are also issues regarding the integration of an MVF facility with a modeling language implementation.

A new draft specification is expected for the December, 2018, OMG meeting.  OMG makes draft specifications available to OMG members, but does not make specifications publicly available until a final submission is adopted.