a complete model of the supermarket business - presentation

A Complete Model of the

Supermarket Business

Why this presentation?

• Development of the ‘Supermarket Model’ by Dave Ackley and

Frank Steeneken.

• Publication of the model at www.bptrends.com January 3th

2012, in the article ‘A Complete Model of the Supermarket

Business’.

Supermarket ModelIntroduction

9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 2

What is the Supermarket Model?

• A complete picture of the underlying skeletal system structure

that holds every supermarket business together while

achieving its goals.

• A comprehensive framework for managing the complexity of a

supermarket structure, and a reusable blueprint for visualizing

how a supermarket company actually does business.


9-12-2012 3Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved

Dave Ackley:

• Founder of Ackley Associates, an Oregon (USA) consulting firm

specializing in advanced modeling methods.

• He has almost 40 years' experience in business and systems

analysis, method development and process improvement.

• During that time he consulted with over 50 major

corporations on enterprise modeling, information systems

planning and process reengineering.




9-12-2012 5

Frank Steeneken:

• Business Process Architect working in the Netherlands.

• Frank has 27 years of experience in the field of business

process architecture, business process management,

requirements engineering and system analysis. He has worked

for consulting organizations across different industry verticals

and has extensive experience with supermarket process

modeling.

Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved

Developed with the Integrated Modeling Method

www.ackley.com:




9-12-2012 7

Integrated Modeling Method:• This method makes it easy to model the complex structure of a business

enterprise, based on the discovery that: every Business Enterprise has the

same Inherent System Structure.

• Instead of asking what are the essential characteristics of one business,

this method begins with the basic system architecture that is common to

every business.

• Structural details are then tailored to represent the unique characteristics

of the particular business enterprise that is being modeled.

• This approach is many times faster than traditional modeling methods, yet

produces a more complete, accurate, and useful model of the entire

business enterprise.


Agenda:

• Some theory.

• Scope and focus.

• Overall structure.

• Detailed structure.

• Useability.

• Summary.

• Feedback.



Supermarket ModelSome theory

Systems thinking approach:

• The process of understanding how things influence one

another within a whole.

• Based on the belief that the component parts of a system can

best be understood in the context of relationships with each

other and with other systems, rather than in isolation.

Source: Wikipedia



Most systems share common characteristics, including:

• Systems have structure, defined by components/elements

and their composition.

• Systems have behavior, which involves inputs, processing and

outputs of material, energy, information, or data.

• Systems have interconnectivity: the various parts of a system

have functional as well as structural relationships to each

other.

• Systems may have some functions or groups of functions.

Source: Wikipedia


(Core)process:

• Processes are chains of activities. These activities are logically organized and aimed at achieving results for a ‘customer’.



Suppliers

Customers

Business

Business Function:

• A contribution (black box), to the purpose of a process.

• Relatively stable, independent of a specific technology.


Suppliers

Customers

Business


Decomposition:

• The overall sequential flow of work performed by each core

process determines the flow of work as it encounters its

sequence of business functions.

• In that context, the work performed by a given business

function is viewed as a sub-process of the overall core

process, and details of the work within the business function

appear as lower-level activities within that sub-process.

• The core process dimension breaks down into a set of sub-

processes that defines the sequence of work steps.



What is a business?

Supermarket ModelScope and focus


What is a supermarket business?

• Function:

A supermarket exists in a competitive environment, where it acts as a

value-added intermediary between geographically dispersed supplier

companies and the scattered individual customers who eventually buy

their products.

• Product/service:

A supermarket is a business enterprise that provides a service. It does

not produce a physical product of its own in the usual sense. Instead, it

adds value by acquiring existing products from remotely-located

suppliers, assembling them in regional warehouses, distributing them to

local stores, and finally selling the supplier’s products to local customers.

Supermarket ModelOverall structure


What is a supermarket business (continued)?

• A supermarket business enterprise is a large, very complex

structure, involving many component entities:

– An array of repeat customers grouped in various local areas.

– A chain of retail stores.

– Various transportation systems.

– A set of warehouse distribution centers.

– An array of product suppliers under contract.

Supermarket ModelScope and focus


Business Concept:

• A balanced composition of the marketing mix such that it

creates a distinctive image for the customer of a store.



How is Supermarket Model structured?



How is Supermarket Model structured (continued)?

• Four core processes, which represent the life-cycle* of a

supermarket business:

1. Defining.

2. Designing.

3. Constructing.

4. Provisioning.

*a change in the business concept reincarnates the life cycle.



How is Supermarket Model structured (continued)?


9-12-2012 20

To fulfill the original business

concept, the four core

processes are implemented

over time. This four-stagedevelopment sequence

comprises the life-cycle of the

supermarket’s business

enterprise product.


Supermarket ModelDetailed structure

9-12-2012 21

A more detailed subsystem

structure is required as a basis

for defining the core process

structures. The first task is to

translate the Functional

Activities to be Performed into

the sequence of Basic

Functional Steps that bring

product stock from remote

suppliers to local customers.



9-12-2012 22

Interpret the Basic

Functional Steps as business

subsystems, which portray

the supply chain in terms of

business structural

requirements.



9-12-2012 23

When the detailed subsystems and core

processes are combined, they produce a

grid-like framework. Within this framework,

each subsystem/core process intersection is

interpreted as a Business Function to be

managed and performed.

The core process dimension breaks down

into a set of sub-processes that defines the

sequence of work steps to be conducted in

this portion of the supply chain. The

subsystem dimension defines how resources

and schedules are applied to accomplish

that work.



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The purpose of this supermarket model is to clearly portray how

the work performed in a supermarket business is structured,

apart from the way it is managed and controlled. To provide this

clarity, feedback loops and control systems are not shown on

these diagrams

Supermarket ModelUseability

Efficient tool for more accurate business process

identification, improvement and design.

Supermarket ModelUseability

Workflow

Process

Core process

Activitty

1

2

3

4 Task

0Chain


A basis for (re)designing organizational structure.

Supermarket ModelUseabilty


The Supermarket Model:

• An application of the Integrated Modeling Method.

• The supermarket model defines the inherent system structure that is

common to every supermarket business.

• Provides an architectural framework of function and workflow that can be

applied to better understand and improve a supermarket’s business

performance.

• By identifying the supermarket’s complete core process and function

structure, this model provides a highly efficient tool for more accurate

business process identification, improvement and design.

Supermarket ModelSummary


• [email protected]

Supermarket ModelFeedback?


a complete model of the supermarket business - presentation

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