VDML - Business Architecture Special Interest Group

Value Delivery Modeling
Language
(VDML)
(BA-SIG, June 19th, 2012)
Fred Cummins, Agile Enterprise Design
Henk de Man, Cordys
Verna Alee, ValueNet Works
Arne J. Berre, SINTEF
BA-SIG Overview
Fred
VDML
A business modeling language that integrates
• Collaborations, organizations, roles and
activities
• Capabilities and methods (activity networks)
• Resources and stores
• Values and value propositions
• Measures specified with SMM
• Viewpoints for different concerns
6/20/2012
VDML
3
Collaborations
• Participants in roles working together for a
shared purpose
• Role may be filled by a person or a
collaboration
• Collaboration is specialized to organization
unit, community, business network and
capability method
6/20/2012
VDML
4
VDML Viewpoints
Value Chains,
Value Streams
Deliverable Risk
Analysis
Capabilities
e3Value Business
Networks
Value Networks
VDML
Stakeholder
Business Model
Organization
Services
Analysis
6/20/2012
REA-Resource
Event Agent
VDML
5
Nested Collaborations (SOA)
Collaboration X
X1
X3
X2
Collaboration Y
Y1
Y2
X4
Collaboration Z
Y3
Z1
Z2
Z3
Deliverable Flow
Role
Activity
Graphical notation for illustration only
6/20/2012
Capability Method
VDML
6
Example Activity
Business Item
Value
Add
Resource
Use
Activity
Store
Deliverable
Flow
Port
Performer Role—
Capability Provider
• Each of these is a Measurable Element
• Notation is for illustration only (non-normative)
6/20/2012
VDML
7
Value Stream
Value Proposition transforms value contributions to
weighted recipient levels of satisfaction.
X1
X2
X4
X3
Deliverable flow
Activity
Value contribution
Value Proposition
6/20/2012
VDML
8
Value
• Value is a deliverable characteristic that is
desired by a recipient
– Values include money, the utility of a product or
service, goodwill, product reliability, timeliness of
delivery,…
• Value Proposition
– Expresses the values offered to a recipient in
terms of the recipient’s level of satisfaction
– In a business exchange, each participant must
perceive that values received exceed values given
6/20/2012
VDML
9
BA-SIG Overview
Verna
About Value Networks
Value Networks are sets of roles, interactions, and relationships
that generate economic or social value.
Any purposeful organization or activity can be
understood as a value network.
Value Network Analysis:
• Defines roles and how they
interact as a network pattern
• Makes intangibles visible,
negotiable, and manageable.
• Can model complex value flows
and human collaborations
June 28, 2012
© Verna Allee 2011
11
Value Network Mapping
Nodes represent participants (usually real people)
and the Roles that they play.
Solid lines show tangible, formal or contractual, deliverables being
transacted.
Dashed lines show intangible or informal value being provided.
Intangible (informal)
Deliverable
ROLE
ROLE
Tangible (formal)
Deliverable
June 28, 2012
© Verna Allee 2011
12
BCAHC Website – All Transactions
Intellectual Capital Indicators
Human
Competence
9%
Financial Assets
2%
Internal Structure
49%
Brand and Social
Capital
40%
Vancouver Island Health Authority
Intellectual Capital Indicators
Human
Competence
11%
Financial Assets
6%
Internal Structure
54%
Brand and Social
Capital
29%
Interior Health
Intellectual Capital Indicators
Human
Competence
15%
Financial Assets
8%
Internal Structure
35%
Brand and Social
Capital
42%
Northern Health Website
Intellectual Capital Indicators
Human
Competence
21%
Brand and Social
Capital
25%
Financial Assets
8%
Internal Structure
46%
Provincial Health Services
Intellectual Capital Indicators
Human
Competence
16%
Financial Assets
3%
Internal Structure
56%
Brand and Social
Capital
25%
Ministry of Health Services
Intellectual Capital Indicators
Human
Competence
9%
Financial Assets
9%
Internal Structure
47%
Brand and Social
Capital
35%
Ministry of Children & Family
Development
Intellectual Capital Indicators
Human
Competence
17%
Brand and Social
Capital
21%
Financial Assets
4%
Internal Structure
58%
Ministry of Advanced Education
and Labour Market Development
Intellectual Capital Indicators
Human
Competence
17%
Financial Assets
24%
Brand and Social
Capital
10%
Internal Structure
49%
Kwantlen University
Intellectual Capital Indicators
Human
Competence
17%
Financial Assets
28%
Brand and Social
Capital
22%
Internal Structure
33%
Vancouver Island University
Intellectual Capital Indicators
Human
Competence
14%
Brand and Social
Capital
23%
Financial Assets
18%
Internal Structure
45%
BC Institute of Technology
Intellectual Capital Indicators
Human Competence
20%
Brand and Social
Capital
20%
Financial Assets
16%
Internal Structure
44%
Detailed Value Network Workflow One
Actors
Simulators
Logistics
plan: 29
Registration:34
Invitation:32
Registration:35
Venue
requirements: 28
Logistics
coordinator
Invitation:30
Venue requirements: 19
Exercise
Previous
plan: 7 experience: 8
Design suggestions:14
Scenario recommendations:15
Issues and
constraints: 5
Timeline
planner
Registration:33
Meeting
planner
Meeting
design: 10
Meeting
requirements: 9
Target timeframes
and milestones: 4
Exercise
planner
Consideration of
scope and
complexity: 3
Exercise context:12
Design suggestions:13
Feedback on
design: 21
Scope of
Exercise: 1
Exercise documentation
materials: 24
Issues and
constraints: 6
Exercise
reviewer
Exercise
documentor
Approval:26
June 28, 2012
© ValueNet Works
2011
Exercise policies: 25
Scenario
Storyline: 18
Exercise
Plan: 17
Exercise documentation design: 20
Feedback: 27
Scope
determiner
Exercise
designer
SMART objectives:11
Advocacy:16
Consistency with
multi-year training
and exercise plan: 2
Players
Invitation:31
Exercise
policies: 22
Exercise
appropriateness: 23
24
Process as Sequence of Deliverables
From Role
To Role
Scope determiner
Timeline planner
Timeline planner
Scope determiner
Timeline planner
Timeline planner
Exercise planner
Timeline planner
Exercise planner
Exercise planner
Meeting planner
Meeting planner
Exercise planner
Exercise planner
Exercise planner
Exercise designer
Exercise planner
Exercise planner
Exercise designer
Exercise designer
Exercise designer
Exercise documentor
Exercise designer
Exercise documentor
Exercise documentor
Exercise documentor
Exercise documentor
Exercise reviewer
Exercise reviewer
Meeting planner
Logistics coordinator
Meeting planner
Meeting planner
Meeting planner
Meeting planner
Meeting planner
Meeting planner
Exercise planner
Exercise planner
Timeline planner
Scope determiner
Meeting planner
Meeting planner
Exercise planner
Exercise planner
Exercise designer
Exercise designer
Exercise designer
Exercise planner
Exercise designer
Exercise designer
Exercise documentor
Exercise documentor
Meeting planner
Exercise designer
Exercise documentor
Exercise designer
Exercise designer
Exercise reviewer
Exercise reviewer
Exercise documentor
Exercise documentor
Logistics coordinator
Meeting planner
Players
Actors
Simulators
Players
Actors
Simulators
June 28, 2012
© ValueNet Works
2011
Deliverable
Scope of Exercise
Consistency with multi-year training and exercise
plan
Consideration of exercise scope and complexity
Target timeframes and milestones
Issues and constraints
Issues and constraints
Exercise plan
Previous planning experience
Meeting requirements
Meeting design
SMART objectives
Exercise context
Design suggestions
Design suggestions
Scenario recommendations
Advocacy
Exercise Plan
Scenario Storyline
Venue requirements
Exercise documentation design
Feedback on design
Exercise policies
Exercise appropriateness
Exercise documentation materials
Exercise policies
Approval
Feedback
Venue requirements
Logistics plan
Invitation
Invitation
Invitation
Registration
Registration
Registration
Nature of
Deliverable
Tangible
Intangible
Intangible
Tangible
Intangible
Intangible
Tangible
Intangible
Tangible
Intangible
Tangible
Tangible
Intangible
Intangible
Tangible
Intangible
Tangible
Intangible
Tangible
Tangible
Intangible
Tangible
Intangible
Tangible
Tangible
Tangible
Intangible
Tangible
Tangible
Tangible
Tangible
Tangible
Tangible
Tangible
Tangible
Sequence
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
25
Value Network Mapped to Swim Lane
June 28, 2012
© ValueNet Works
2011
26
Revised Process with Roles and
Deliverables
How does scope
determiner get
feedback and input?
Ratio of tangibles/intangibles
suggests a high level of
collaboration needed here.
June 28, 2012
© ValueNet Works
2011
27
Revised Process Continued
Exercise designer
and planner not
involved in approval?
June 28, 2012
© ValueNet Works
2011
28
Revised Process Completed
How are participants
selected/recruited
prior to invite?
June 28, 2012
© ValueNet Works
2011
29
BA-SIG Overview
Henk
VDML & Value Driven Transformation
Ideas
Objectives
To-be strategies
As-Is
Issues
1
…
Tactics
2
n
VDML model / scenario
Initiatives
31
VDML big picture
Value
articulates
Value Proposition
creates and/or
consumes
Activity
requires
provides and/or receives
performs
Role
Defines work
collaboration
of
supports
Method
defines formal
or structural
collaboration of
defines informal
or “weak”
collaboration of
Community
owns
Capability
defines business
collaboration of
Business Network
Org Unit
supports
Resource
owns
High-level abstraction of
detailed meta-model,
provides
that is being standardized
http://www.omg.org/members/cgi-bin/doc?bmi/12-05-02.pdf
in OMG
Bridge between “Business Model”
and “Process”
“Business
Model”
Value Delivery
Model
Model that supports business analysis
and design based on evaluation of
performance and stakeholder
satisfaction achieved through the
activities and interactions of people
and organizations using business
capabilities to apply resources and
deliver stakeholder values
Process
A business model describes
the rationale of how
an organization creates, delivers, and
captures value (Osterwalder)
Positioning VDML
VDML
SoaML
BPMN
Business Model (Osterwalder)
Business Model Constituents
OSTERWALDER ET AL.
Customer segments
Customer relationships
HBR (JOHNSON ET
AL.)
Customer value
proposition
NEFFICS
Target users (non-invoiced
stakeholders), customers and
market segments
Channels
Value propositions
Value propositions
Key activities
Key processes
Internal value chain, using the
functions that are applied to
create value
Key resources
Key resources
Competences, representing
resources and activities
Key partners
Revenue streams
Cost structure
Network and network partners
Profit formula
Profit formula, or more
generally, value formulas
VDML Requirements
“Motivated by Business
Values”
Value identification
Value flow, intra and interenterprise
Activities and activity
networks
Value measurement
VALUE DELIVERY MODEL
“Supports Business
“Discovers Process and
Model”
Service Models”
Value proposition
Customer, market
Collaboration to engage
segments and other
capabilities
stakeholders
Network partners
Resources and activities
Capabilities and interfaces of
capabilities
Organizational alignment of
capabilities, activities and
resources
Loose coupling of activity
networks through stores
Profit and value
calculations
Monitoring-based scenarios
and measurements
VDML and its “Blood Donors” (Existing
Approaches in Value-X-Arena)
e3Value
Business
Models
Lean
(VSM)
VDML
Value
Networks
(VNA)
REA
Capabilitybased
approaches
VDML Leveraging Existing Approaches
in the Value-X-Arena
“Motivated by
Business Values”
Value identification
Value flow, intra and
inter-enterprise
Activities and activity
networks
VALUE DELIVERY MODEL
“Supports
“Discovers Process and
Business Model”
Service Models”
Value proposition
Customer, market
Collaboration to engage
segments and other
capabilities
stakeholders
Network partners
Resources and
activities
Capabilities and interfaces
of capabilities
Organizational alignment
of capabilities, activities
and resources
Loose coupling of activity
networks through stores
Value measurement
Profit and value
calculations
Monitoring-based
scenarios and
measurements
“Leveraging existing
approaches”
Value flow through role
collaboration
Capability and value
stream / chain analysis
Explicit modeling of
resources, resource
stores, resource use and
deliverables
Measurement of
performance and value,
also applied in scenariobased analysis
Implementation (Cordys)
• Development of Research product (α)
• Driven by European Research (NEFFICS)
• Intended exploitation: Low-priced cloud-based
modeling & analysis environment
• Productization (α → β → GA) prioritized based on
sponsoring / early adopter customers (... we are early
in the market ...)
• Ultimate goal: business simulation (e.g. Monte Carlo,
Discrete Event, maybe System Dynamics)
• Exploring opportunity for extended European Research
of VDML-based simulation development
BA-SIG Overview
Arne
BMI VDML - Context
and Requirements
Arne
Zachman with OMG standards
Data
(What)
Function
(How)
Scope
(Contexts)
List of things important
to business
List of processes that
the business performs
SBVR
VDM
VDM
OSM
DTFV
BMM
Business
(Concepts)
Semantic Model
Business Process
Model
Business Logistics
System
Workflow Model
Master Schedule
BPMN, CMPM
BPMN, CMPM,
DTFV
Business
Plan
BPMN, CMPM
OSM, BPMN,
CMPM
System
(Logic)
Logical Data Model
Technology
(Physics)
Component
(Assemblies)
Operation
(Instances)
43
ODM,
IMM (CWM)
Network
(Where)
People
(Who)
Time
(When)
List of organizations
List of locations which
List of events/cycles
the business operates important to the business important to the business
ODM,
IMM (CWM), UML
Application
Architecture
Distributed
System Architecture
Human Interface
Architecture
SoaML, UML
SoaML, UML
BPMN, CMPM
Physical Data Model
System Design
IMM (CWM), UML
SoaML, UML
Technology
Architecture
Data Definition
Program
IMM (CWM), UML
UML
Data
Function
SoaML, UML
Network
Architecture
UML
Network
Presentation
Architecture
Security
Architecture
Organization
Process Structure
BPMN, CMPM,
DTFV
Control Structure
Motivation
(Why)
List of business
goals/strategies
SBVR
Business Rule
Model
SBVR
Rule
Design
BPMN, CMPM,
DTFV
SBVR
Timing
Definition
Rule
Definition
DTFV
SBVR
Schedule
Strategy
OMG standards coverage
Data
(What)
Function
(How)
SBVR
Network
(Where)
List of locations
VDMwhich
the business
Scope
(Contexts)
List of things
important
to business
List of processes
that the business
performs
operates
Business
(Concepts)
Semantic Model
Business
Process
Model
Business
Logistics
System
Distributed
System
Architecture
ODM
People
(Who)
Time
(When)
Motivation
(Why)
List of events/cycles
important to the
business
List of business
goals/strategies
Workflow
Model
Master
Schedule
Business
Plan
Human
Interface
Architecture
Process
Structure
Business Rule
Model
OSM
List of organizations
important to the
business
BPMN
BMM
CMPM
System
(Logic)
Logical Data Model
Application
Architecture
Technology
(Physics)
Physical Data Model
IMM
(CWM)
System Design
Technology
Architecture
Presentation
Architecture
Structure
DTFV
Control
Rule
Design
Component
(Assemblies)
Data Definition
Program
Network
Architecture
Security
Architecture
Timing
Definition
Rule
Definition
Operation
(Instances)
Data
Function
Network
Organization
Schedule
Strategy
44
SoaML
UML
SBVR
Businss Model Innovation
The Alexander Osterwalder canvas
Business Model Frameworks – with
Modeling support – from NEFFICS
Building block
Incremental innovation
‘Do what we do but better’
Radical innovation
‘Do something different’
Value proposition
Offering ’more of the same’
Offering something different (at least to the
company)
Target customer
Existing market
New market
Value chain
architecture
[Internal]
Exploitation (e.g. internal, lean,
continuous improvements)
Exploration (e.g. open, flexible, diversified)
Familiar competences (e.g.
improvement of existing technology,
HR, organizational system, culture)
Disruptively new, unfamiliar, competences (e.g.
new emerging technology, new HR skills,
organizational systems, culture)
Familiar (fixed) network
New (dynamic) networks (e.g. alliance, jointventure, community)
Continuous improvements of existing
relations (e.g. channels)
New relations, relationships (e.g. channels
physical, digital, virtual, personal)
Competences
Network Partners
Relations
Profit formula
46
Existing processes to generate
revenues followed-by/or incremental
processes of retrenchments and cost
cutting
New processes to generate revenues followedby /or disruptive processes of retrenchments and
cost cutting
Service Innovation