1. Field of the Invention
A method, system and device define a common enterprise framework that aligns many major architecture and process reference models in the prior art. The method utilizes loosely coupled arrangements of common building blocks for defining process stream flows, process stream flow interdependencies and process knowledge benchmarks for both structure and process maturity. The framework system and method facilitate assessment of process flow stream value and value tradeoffs that management may use for optimizing competitiveness value within enterprises and federations of enterprises.
2. Background Information
Enterprises may be defined in terms of an ecosystem framework comprised of architecture and processes. Architecture describes a structure within which processes operate. Processes are sequences of activities that use resource inputs to produce valued outputs. Value streams are highly structured processes and partners that together create or produce flows of outputs satisfying customer or market needs.
Various arrangements of common building blocks may define types of process value streams and value stream flows. Numerous interdependencies among processes require that tradeoffs be made among process resources and flows for optimizing overall enterprise output value. To do this effectively a common architecture and process framework is required to define a standard set of enterprise processes that may provide for ‘interoperability’ among enterprise management applications. These include enterprise resource planning (ERP), supply chain management (SCM), product lifecycle management (PLM), customer relations management (CRM) and other enterprise management systems.
In prior art there are examples of ‘operations reference models’ and methods aimed at standardizing definitions and descriptions of enterprise architectures and business processes. However, as yet there is no single generally accepted common standard. This invention provides a common method that facilitates standardization and that may align the major operational reference models in the prior art.
There are also efforts in the prior art to define best practice benchmark key performance indicators (KPIs) and methods for optimizing ‘maturity’ via re-engineering of architecture and processes. There are also methods aimed at optimizing workforce productivity, innovative capacity, value chain leverage and overall enterprise competitiveness. None of these has as yet become an accepted standard.
‘Benchmarking’ practices in the prior art focus mainly on comparative assessments of aggregate ‘workflow’ and ‘cash flow’ performance indicators. They usually compare aggregate results of many processes for similar types of enterprises (mainly concentrating on the supply chain measures). They rarely focus on ‘process knowledge’ benchmarks that define ‘building block’ process flow maturity or process flow interdependency relationships which must be understood in order to implement corrective action.
This invention provides a method, system and apparatus for common definition of architecture, processes, process knowledge benchmarks, value streams, value stream flows, process value stream flow interdependencies and the types of tradeoffs that may enhance value outcomes. It provides a common framework within which all of these may be integrated for development of interoperable management applications.
3. Prior Art
The prior art describes (a) enterprise architecture reference models and structures, (b) business processes reference models and classifications, (c) maturity methods, (d) value assessment methods and (e) building block and component models.
The prior art describes several enterprise architecture reference models. These include the Zachman framework The Open Group Architecture Framework (TOGAF) the Department of Defense Architecture Framework (DoDAF) FEAF; MDA; ARTS and the Service-oriented architecture reference model (SOA/RM).
The prior art also provides a number of general descriptions of enterprise structure. For example U.S. Pat. No. 7,020,697 1 dated Mar. 28, 2006 by Goodman et al describes an enterprise architecture for net centric computing systems; and US Patent Application Publication US 2006/0136275 A1 dated Jun. 22, 2006 by Cotora describes a method and device for optimizing company structure.
The prior art describes several business process architecture operations reference models. These include the Supply Chain Council operations reference model (SCOR), the Value Chain Group value reference model (VRM), the Federated Enterprise Reference Architecture (FERA), the Intel Integrated Process and Technology Framework (IPTF) and the American Productivity and Quality Committee Process Classification Framework (APQC/PCF).
The prior art also contains several additional process frameworks including US patent Application Publication US 2007/0038490 A1 dated Feb. 15, 2007 by Joodi which describes a method and system for analyzing business architecture; and US Patent Application US 2007/0022404 A1 dated Jan. 25, 2007 by Zhang et al which describes a process profiling framework.
The prior art describes several maturity methods. Examples include US Patent Application Publication US 2007/0021967 A1 by Jaligama related to the concept of measuring and mapping process maturity levels; US Patent Application Publication US 2005/0159965 A1 of Mann et al describes measurement groups; US Patent Application 2006/0136275 A1 of Cotora describes internal and external value production; U.S. Pat. No. 7,136,792 B2 of Baltz et al describes subjective scoring systems; and US Patent Application US 2007/0027734 dated Feb. 1, 2007 of Hughes describes an enterprise design solution methodology for increasing the maturity level of value chains. There are also maturity methods applied by PRTM Inc., AMR Research Inc., the US Productivity Council and GPT Management Ltd. for innovative capacity as described in U.S. Provisional Patent Applications 60/774,597 Feb. 21, 2006 and 11/676,305 Feb. 18, 2007 by Cornford.
The prior art provides examples of framework considerations for assessing process value chains, process interdependences and types of value grid relationships. These include U.S. Pat. No. 7,206,751 B2 dated April 2007 by Hack et al that describes a value chain optimization system; U.S. Pat. No. 7,231,400 dated Jun. 12, 2007 by Cameron et al which describes hierarchies of inter-object relationships based on object attribute values; US Patent Application Publication US 2005/0165822 dated Jul. 28 2005 by Yeung et al which describes systems and methods for business process automation, analysis and optimization; US Patent Application Publication US 2005/0159965 dated Jul. 21, 2005 by Mann et al which describes business analysis and management systems utilizing enterprise metrics; and US Patent Publication Application US 2002/0184067 dated Dec. 5, 2002 by McLean et al which describes a method for measuring and reporting on value creation performance that supports real-time benchmarking.
There are discussions in the prior art literature regarding methods of enterprise value assessment. These include work by A. Lemus (Johnson and Johnson ASP): Metrics for Monitoring New Product Development, 2003; A. Lemus (Ameriquest Mortgage Co.): Change Management in New Product Development (‘Making it Work’), 2004; D. Hofman (AMR Research Inc.): ‘The Hierarchy of Supply Chain Metrics, Supply Chain Management Review Sep. 1 2004; D. Hofman and J. Hagerty (AMR Research Inc.): Defining a Measurement Strategy Part I, BI Review Magazine, Mar. 1 2006; Part II, May 1, 2006; Part III, August 2006; K. Frits and M. Holweg: Evolving from the Value Chain to Value Grid, MIT Sloan Management Review, Summer 2006, Nol. 47, No. 4 pp. 72-79, Reprint 47414; A. Cornford, edited by R. Lipsey (Atlantic Canada Opportunities Agency): Benchmarking Innovative Capacity: Policy and Practice 2005 and Innovate America (US Council on Competitiveness): National Innovation Initiative and Summit Report 2004, ISBN 1-889866-20-2.
Prior art describes the use of ‘loosely coupled’ ‘building blocks’ and ‘component business models’ as a basis for defining modular architectures, processes and process service components for service-oriented architectures. These include G. Pohle, P. Korsten and S. Ramamurthy, 2005 (IBM Business Consulting Services): Component Business Models—Making Specialization Real; P. Salz (Accenture): A Modular Approach, 2006; D. Frenkel (SAP): A Convergence of Business and IT Thinking”: SOA and the Business-IT Divide, MDA (Model Drive Architecture) Journal January 2007; and B. Jaruzleski, K. Dehoff and R. Bordia (Booz, Allen, Hamilton): Smart Spenders: The Global Innovation 1000, S&B 06405, November 2006.
This invention aligns many of these major features in the prior art—architecture and process reference models, benchmarks, maturity methods, value streams flows and value grids, and building block component models in a single common framework representation, set of definitions and process ontology. This unification is unique to the prior art and provides a basis for standard interoperable design of management applications for federation of enterprise ecosystems.
The invention provides a method, system and device for defining and measuring enterprise ecosystem value. Major features of the overall system include: (a) common building block framework; (b) alignment of prior art operations reference models and management applications with a common maturity method and common process ontology; (c) common flow streams and flow types; (d) common building block flow stream arrangements and (e) process interdependencies and value stream tradeoffs.
This invention defines a common building block framework. The framework is ‘process centric’. It is based upon arrangements of loosely coupled building blocks for defining processes, process services, process stream flows and process interdependencies. While every ecosystem is different, all building blocks have a common set of structure, process and re-engineering method components.
There are many descriptions of enterprise architecture structure in the prior art. The structure in U.S. Pat. No. 7,020,697 B1 dated Mar. 28, 2006 by Goodman et al is shown in the left portion of
The framework in this invention provides both a common structure 12 and a common architecture maturity method 14 that aligns the major architecture reference models in the prior art including Zachman 21, TOGAF 22, DoDAF 23, LEAF 24, ARTS 25, MDA 26, and FERA 27 shown in
The six steps in the method include step 1 definition of the ‘as is’ state (both architecture and process) 610; step 2 definition of the desired ‘to be’ state and benchmarks for that state (so both architecture and process can be the best they can be) 620; step 3 definition of the variance between them 630; step 4 definition of a solution to address part or all of the variance 640; step 5 definition of a means to implement a solution 650; and step 6 definition of measure(s) of improved performance 660 as shown in
The architecture component 12 is further comprised of a process component 100 and a ‘maturity’ method component 500 for process re-engineering shown in
These common maturity method steps in
Each of the six steps in the common maturity method has a similar set of six sub-steps for optimizing maturity within each step. The six sub-steps 621-626 for benchmarks 620—step 2 that defines the targets for the most desired ‘to be’ state—are shown in
Processes convert inputs to valued outputs. They may be categorized into three process types 300—‘management’ processes 310 that set strategy; ‘core’ processes 330 that balance demand with supply; and ‘enabling’ processes 360 that provide the right mix and balance of resources. These are shown in
Each of these 3 enterprise process types has 4 macro processes shown in
Examples of software applications in the prior art that facilitate process management for each of these 12 processes are shown in
‘Core’ process applications include voice of customer (VOC) 333, customer relations management (CRM) 335, supply chain product/service management (SCM) 337, and product/service lifecycle management (PLM) 339.
Enabling process applications for human, information, finance and asset resources are aspects of enterprise resource planning (ERP) 363, 365, 367 and 369. Business process management (BPM) 396, business activity monitoring (BAM) 391 and business intelligence (BI) 393 help facilitate process knowledge integration across all applications.
While all macro processes contribute to enterprise competitiveness, innovation, leverage and workforce productivity processes drive strategic competitiveness value flow as shown in
Process building blocks convert inputs 20 to desired outputs via process flow streams 30 shown in
Most enterprise software applications facilitate process ‘workflow’ conversions and related transactions. Some also facilitate ‘tacit knowledge’ flow. Few track value flow which is produced by many different combinations of flows within and across inter-dependent processes.
There are several major types of building block process stream flow arrangements. Orientations of building block flows may be stage-to-stage 32, 34, and 36, level-to-level 44, 45, and 46, and process-to-process 47, 48, and 49 as shown in
‘Value flows’ include ‘stage-to-stage’ flows block-to-block, for example 112 to 113 to 114 and end-to-end within individual processes as shown in
There are also ‘process-to-process’ flows, for example from 114 (process 1) to 214 (process 2) and/or to 314 (process 3) among processes. These types of flows may occur simultaneously at all organizational levels as shown in
The number of combinations and permutations and hence the complexity of flow stream pathways and process interdependency flow pathways is quite large in all ecosystems. For example, in the human body ecosystem, there are 12 building block systems akin to the 12 macro processes 130 in the enterprise shown in
In all ecosystems (including the enterprise), each process has sub-processes, sub-sub processes and so on. Each of these in turn has macro process building blocks 130, process conformation building blocks 120, process element building blocks 110 and process activity building blocks 100 in process re-composition levels as shown in
Enterprise ‘agility’ is the ability to combine/re-combine ‘loosely coupled building blocks’. This may include service-oriented architecture (SOA) building block ‘process service’ components shown in
These fundamental process interdependencies 420 are shown in
Overall ‘strategic competitiveness’ value flow shown in
However each of these types of value flow involves many operational, tactical and strategic tradeoffs within and among all 12 processes. For example the innovative capacity 1006 value stream—the ability to create a continuous stream of commercially relevant innovations—includes human resources 362, finance 366, assets 368, market 332, design/make 336 and innovation 318 as shown in
Understanding process interdependencies and making tradeoffs are key to optimizing value flow. Tradeoffs may occur at federation, strategic, tactical, operation and activity levels within processes.
For example, innovation research and development (R&D) ‘ideation’ for new product development and introduction (NPDI) 319 in public/private federations of enterprises—involves balancing investment 440 among public R&D and private R&D processes and human resource processes (highly qualified people—HQP) shown in
Another example of a tradeoff for the manufacturing enterprise relates to customer satisfaction. This may mean trading off high inventories for good order quality, or on the other hand, sacrificing customer responsiveness for low costs. A balance must be struck.
In the prior art, Supply Chain Council SCORcards and Value Chain Group Valuecards define types of key performance metrics. Few align directly with flow stream knowledge benchmarks, ‘types of value flow’ or value flow tradeoffs in the absence of common process definitions and a common benchmarking method.
As shown in
This invention defines several device protocols based on a common building block framework 1. The first is a common process ontology 2. The second is a common process flow ontology 5. Both are shown in
This invention provides a set of nine elements in an apparatus that may transition between the prior art and a common standard interoperable framework. These include a process ontology 2 that aligns with common process building block arrangements 3 and common types of process interdependency tradeoffs 4. A process flow ontology aligns with process stream flows (stage-to-stage and level-to-level) 6, and process-to-process and service-to-service trade-off flows 7. A common maturity method (for architecture, processes, flows and competitiveness value) aligns with a process benchmark knowledgebase 9 and a process tradeoff benchmark knowledgebase 10 and decision dashboards shown in
These ontologies define sets of key performance indicators for processes, flows and flow stream thread values. For each macro process these include stage-to-stage and level-to-level flow KPIs. Process interdependency tradeoff KPIs include category-to-category, process-to-process, level-to-level and stage-to-stage tradeoff flow KPIs as shown in
Number | Date | Country | |
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61016701 | Dec 2007 | US |