business innovation & transformation enablement (bite) method

67
Business Innovation & Transformation Enablement (BITE) Method Henrik von Scheel LEAD Developer, responsible for BITE Method LEAD the Way

Upload: henrik-von-scheel

Post on 13-Jan-2015

979 views

Category:

Business


2 download

DESCRIPTION

IMPORTANT NOTE: By downloading any content you agree to our Intellectual Property terms and conditions. You agree that you are solely responsible for any unauthorized usage thereof. You may download and store your own copy. You are not allowed to re-produce, modify, copy, print or distribute any of the content either in whole are in part. Discover how to apply the new Business Innovation & Transformation Enablement (BITE) Method that relates the right objects and artifacts to ensure that the defined innovation and transformation needs and wants within an organization can be executed. The BITE method structures the LEAD objects to enable the practitioners way of working with innovation and transformation aspects across all layers with supporting artifacts e.g. templates & tools that have the integrated transformation and innovation principles, rules, procedures and practices embedded.

TRANSCRIPT

Page 1: Business Innovation & Transformation Enablement (BITE) method

Business Innovation & Transformation Enablement (BITE) Method

Henrik von Scheel LEAD Developer, responsible for BITE Method

LEAD the Way

Page 2: Business Innovation & Transformation Enablement (BITE) method

© Copyright note on Intellectual Capital: ALL RIGHTS RESERVED

LEADing Practice ApS respects the intellectual property of others, and we ask others to do the same. All information and materials contained in the LEAD frameworks, methods and approaches with associated tools and templates, such as maps, matrices and models is Intellectual Capital (IC) and Intellectual Property (IP) of LEADing Practice ApS and limitations apply to the reuse of this IC/IP. The intellectual Property Rights (IPR) consists of information, knowledge, objects, artifacts, experience, insight and/or ideas, that are structured to enable reuse to deliver value creation and realization.

The LEADing Practice ApS intellectual capital is protected by law, including, but not limited to, internationally recognized United States and European Union IPR copyright law. Except as specifically indicated otherwise in writing, LEADing Practice ApS is the owner of the copyright in the entire LEAD Frameworks content (including images, text and look and feel attributes) and LEADing Practice ApS reserves all rights in that regard. Use or misuse of the IPR, the trademarks, service mark or logos is expressly prohibited and may violate country, federal and state law.

LEADing Practice ApS is an open architecture and open standard community and therefore provides open access to all deliverables for certified LEAD practitioners, thereby ensuring that modelling principles are applied correctly. A open architecture and open standard community has been set in place to encourage sharing, learning and reuse of information and thereby increase knowledge among LEAD community practitioners, and with this ultimately improvement of one’s project, engagement and the LEAD development.

Use of the LEAD frameworks, methods and approaches is restricted to certified LEAD community members, in good practitioner standing, who are able to use these items solely for their non-commercial internal use. Legal access to the detail of LEAD will be provided to you with your membership. Members are prohibited from sharing the LEAD material in its entirety with other parties who are not members of LEAD community since the concepts and models are protected by intellectual property rights.

Guidelines for LEAD community members using the IPR material

As a LEAD member comes greater personal responsibility and the following intellectual property conditions apply:

  Can be used free of charge for LEAD certified practitioners.

  Cannot be share, copied or made available for non-community member, which are not LEAD certified practitioners.

When using any materials, it must include a source notice – either in an adjacent area or as a footnote – to indicate the source. The source should be specified the following way : “Source: A part of the LEAD Frameworks” and possibly indicate the LEAD work product family, such as “Part of LEAD Process Framework”.

  Cannot be systematically “given away” – do not download all our content and simply hand it over to other colleagues or clients that are not trained and certified.

To ensure correct usage, any company usage of the LEAD material e.g. templates and tools has to be tailored and agreed upon by LEADing Practice ApS . LEADing Practice ApS may, in appropriate circumstances and at its discretion, terminate the access/accounts of users who infringe the intellectual property rights and pursue legal action.

Guidelines for non-LEAD community members using the IPR material

  The following conditions apply to use of the LEAD Intellectual Property for non-community members:

  Can be used free of charge for lecturing and research at any University and Business School

Material available at www.LEADingpractice.com can be used in a non-commercial way for knowledge sharing . When using any materials, it must include a source should be specified the following way : “Source: A part of the LEAD Frameworks” and possibly indicate the LEAD work product family, such as “Part of LEAD Process Framework”.

General guidelines that apply for all LEAD IPR material

  Any use of original texts, graphics, images, screen shots, and other materials from LEAD sources must be approved by LEADing Practice ApS .

  Any material cannot be generally distributed to colleagues, clients and or an undefined audience without written permission from LEADing Practice ApS .

  Cannot be altered or changed (the using company) in any way without explicit written permission from LEADing Practice ApS .

In most cases, the LEADing Practice ApS acts as a distribution channel for the Publisher(s) and Authors) of the material provided. LEADing Practice ApS may, in appropriate circumstances of infringement of the intellectual property rights pursue legal action. For questions, please get in touch with us at [email protected].

Page 3: Business Innovation & Transformation Enablement (BITE) method

72% of all IT projects fail*

The ratio of cost and value is broken Everybody talks about strategy, very few are able to relate the operation to it

  Economic and productivity losses of $3 Billion

(4.7 % of global GDP)

  45% run over budget

  7% behind schedule

  56% deliver less functionality than predicted

  Achieving at least $15 million in benefits, requires

spending of $59 million

*  McKinsey Oxford study 2012, Delivering IT projects on time, on budget, and on value  

Page 4: Business Innovation & Transformation Enablement (BITE) method

The BITE Method relates the right objects and artifacts to ensure that the defined

innovation & transformation needs and wants within an organization, can be

executed.

From Strategy to Execution Business Innovation & Transformation Enablement Method

  Lifecycle Method   Layered Architecture Method   Decomposition & Composition Method   Maturity Reference Method   Requirement Reference Method

The BITE method fully interlinks and leverages all the LEADing Practice framework,

methods and approaches

  Business Model/ Competency Reference Framework   Process Reference Framework   Value Reference Framework   Service Reference Framework   Cloud Reference Framework   Information Reference Framework   Application Reference Framework   Data Reference Framework   Platform Reference Framework   Infrastructure Reference Framework

Page 5: Business Innovation & Transformation Enablement (BITE) method

Structures the practitioner’s way of working Across all layers, with supporting artifacts e.g. templates & tools

The BITE method structures the LEAD objects to enable the practitioner’s way of working

with innovation and transformation aspects across all layers, with supporting artifacts e.g.

templates & tools, that have the integrated transformation and innovation principles, rules,

procedures and practices embedded.

Mthod

Strategy

CSFs

KPIs

PPIs

Process Events

Resources Functions/Tasks

Services SPIs SLA Application Components

Appl. Feature Appl. Functions

Data Service

Data Components

Platform Components

Infrastructure Components

Data Entities Data Objects

Platform Service Platform device

Infrastructure Devices Infrastructure Services

External drivers Competencies

Appl. Service

Page 6: Business Innovation & Transformation Enablement (BITE) method

Structures the LEAD objects to enable the practitioner’s way of working across all layers. Example Business Model

Page 7: Business Innovation & Transformation Enablement (BITE) method

Mthod

Structures the LEAD objects to enable the practitioner’s way of working across all layers. Example Business Model

Strategy

CSFs KPIs

PPIs Process

Events

Resources Functions/Tasks

Services SPIs SLA Application Components

Appl. Feature Appl. Functions

Data Service Data Components

Platform Components

Infrastructure Components

Data Entities Data Objects

Platform Service Platform device

Infrastructure Devices Infrastructure Services

External drivers Competencies

Page 8: Business Innovation & Transformation Enablement (BITE) method

Structures the LEAD objects to enable the practitioner’s way of working across all layers. Example Strategy Map

Page 9: Business Innovation & Transformation Enablement (BITE) method

Mthod

Strategy

CSFs KPIs

PPIs Process

Events

Resources Functions/Tasks

Services SPIs SLA Application Components

Appl. Feature Appl. Functions

Appl. Service

Data Service Data Components

Platform Components

Infrastructure Components

Data Entities Data Objects

Platform Service Platform device

Infrastructure Devices Infrastructure Services

Structures the LEAD objects to enable the practitioner’s way of working across all layers. Example Strategy Map

External drivers Competencies

Page 10: Business Innovation & Transformation Enablement (BITE) method

Structures the LEAD objects to enable the practitioner’s way of working across all layers. Example Balance Scorecard

Page 11: Business Innovation & Transformation Enablement (BITE) method

Mthod

Strategy

CSFs KPIs

PPIs Process

Events

Resources Functions/Tasks

Services SPIs SLA Application Components

Appl. Feature Appl. Functions

Appl. Service

Data Service Data Components

Platform Components

Infrastructure Components

Data Entities Data Objects

Platform Service Platform device

Infrastructure Devices Infrastructure Services

External drivers Competencies

Structures the LEAD objects to enable the practitioner’s way of working across all layers. Example Balance Scorecard

Page 12: Business Innovation & Transformation Enablement (BITE) method

LEAD Measurements Template

Page 13: Business Innovation & Transformation Enablement (BITE) method

Mthod

Strategy (SBO)

CSFs KPIs

PPIs Process

Events

Resources Functions/Tasks

Services SPIs SLA Application Components

Appl. Feature Appl. Functions

Appl. Service

Data Service Data Components

Platform Components

Infrastructure Components

Data Entities Data Objects

Platform Service Platform device

Infrastructure Devices Infrastructure Services

Structures the LEAD objects to enable the practitioner’s way of working across all layers. Example LEAD Measurements Template

External drivers Competencies

Page 14: Business Innovation & Transformation Enablement (BITE) method

Structures the practitioner’s way of working Across all layers, with supporting artifacts e.g. templates & tools

The BITE method structures the LEAD objects to enable the practitioner’s way of working

with innovation and transformation aspects across all layers, with supporting artifacts e.g.

templates & tools, that have the integrated transformation and innovation principles, rules,

procedures and practices embedded.

Mthod

Strategy

CSFs

KPIs

PPIs

Process Events

Resources Functions/Tasks

Services SPIs SLA Application Components

Appl. Feature Appl. Functions

Data Service

Data Components

Platform Components

Infrastructure Components

Data Entities Data Objects

Platform Service Platform device

Infrastructure Devices Infrastructure Services

External drivers Competencies

Appl. Service

Page 15: Business Innovation & Transformation Enablement (BITE) method

Definitions of Innovation and Transformation

*  Oxford  Dic,onaries  2012  

Page 16: Business Innovation & Transformation Enablement (BITE) method

The BITE sequence of though process Interrogative relates the LEAD objects, same context – but different way of thinking and modelling

Page 17: Business Innovation & Transformation Enablement (BITE) method

Innovation example Business Innovation & Transformation Enablement

Page 18: Business Innovation & Transformation Enablement (BITE) method

Analyze Existing Strategy Business Innovation & Transformation Enablement

g

G

Page 19: Business Innovation & Transformation Enablement (BITE) method

19

Analyze / Identify Existing Strategies Business Innovation & Transformation Enablement

Page 20: Business Innovation & Transformation Enablement (BITE) method

Identify Internal & External Drivers (Competitive Forces) Business Innovation & Transformation Enablement

g

G

Page 21: Business Innovation & Transformation Enablement (BITE) method

External Influencing Factor   Government Regulations

  Macro Economics

  Technology changes

  Competitors & Rivals

  Joint Venture & Partners

  Supplier

Internal Influencing Factor   Strategic Business Objectives

  Critical Success Factors

  Key Performance Indicators

  Value & Performance Drivers

  Enterprise Structures

  People

  Process

  Organization

  Technology

Identify Internal & External Drivers Business Innovation & Transformation Enablement

Page 22: Business Innovation & Transformation Enablement (BITE) method

22

Identify Internal & External Drivers Business Innovation & Transformation Enablement

Page 23: Business Innovation & Transformation Enablement (BITE) method

Understand Business Model Drivers Business Innovation & Transformation Enablement

g

G

Page 24: Business Innovation & Transformation Enablement (BITE) method

Innovation and Transformation Research Lesson Learned from the past 40 years

Leading and Best Practice Research, 2011/2012 Scope: 1765 CEO’s and 2936 business leaders representing all major countries and industries

Page 25: Business Innovation & Transformation Enablement (BITE) method

Lessons Learned around Business Model Innovation and Transformation Research

Page 26: Business Innovation & Transformation Enablement (BITE) method

Value Model The Value Model describes the different value perspectives and in an organization. A Value Model considers the aspects of external & internal value drivers, business strategy (SBO), business objectives (CSF, plan, forecast, budget), value expectation, value proposition and value management. It is the strategic tool to redefine what is core competitive competencies and what is no-core competencies and thereby what can and can’t create value. Characteristic of organizations that applied Value Model, where focus in the following areas:

  Value Management Strategy   Core competitive competencies and what is no-core competencies and thereby what can and can't

create value.   Process and activity optimization or innovation to support service concept and development.   Value owners responsibilities for value creation   Roles involved in the value identification, value concept and developments.   Business flow that needs to be changed optimized or developed to support new value model.   Media that will be involved in the value development and delivery.   Channels that are needed in the wished value model.   Value realization through Technology adoption and thereby the level of automation though

applications, data, platform and infrastructure.   Value measurements, in terms of critical success factors and key performance indicators to value

planning, identification, creation, realization and governance.

Examples: Over the past years Apple has develop a sophisticated value model from R&D, development partners, to retail storages to put the customers experience of value in the center by combining product, software and service. Its revenue, profit and stock price increases reflects the success of those transformation and innovation initiatives.

Page 27: Business Innovation & Transformation Enablement (BITE) method

Value Model Describes the different value perspectives and in an organization

A Value Model considers the aspects of external & internal value drivers, business strategy (SBO), business objectives (CSF, plan, forecast, budget), value expectation, value proposition and value management.

Page 28: Business Innovation & Transformation Enablement (BITE) method

Revenue Model

A Revenue Model defines how an organization makes money by changing the value proposition (product/ service/ value mix) - and what needs to be done to optimize the pricing model.

Characteristic of organizations that applied Revenue Model, where focus in the following areas:

•  Revenue strategy. •  Development of core competitive and core differentiating •  Pricing models and value trade off. •  Owner responsibilities for optimization and development of pricing model, value proposition and cost

cutting. •  Process integration and standardization to support the wanted revenue model developments. •  Roles involved in the concept and developments •  Business flow that needs to be changed or optimized to support new revenue model concept •  Media that will be involved in the revenue model development and delivery •  Channels that are needed in the wished revenue model •  Technology adoption, for the level of automation development though applications, data, platform

and infrastructure to cut cost •  Revenue model measurements, in terms of critical success factors & KPI.. •  Revenue model compliance to regulations and laws •  Objects in terms of products and offerings that need to be developed for a new value trade off •  Rules in terms of standards, guidelines and policies around the pricing model.

Examples: Gillette innovated the pricing model by giving away razors and making money on the blades. Netflix shifted the revenue model from product / rental based to a subscription based annuity model.

Page 29: Business Innovation & Transformation Enablement (BITE) method

Revenue Model Defines how an organization makes money by changing the value proposition (product/ service/ value mix)

Page 30: Business Innovation & Transformation Enablement (BITE) method

Service Model

A Service Model defines an organization’s core differentiating, main and supporting services delivered.

Characteristic of organizations that applied Service Model, where focus in the following areas:

  Services strategy   Service Objects (e.g. service product)   Service Construct (main, supporting and management services)   Development of core competitive and core differentiating services.   Service owners responsibilities for service developments.   Roles involved in the service concept and developments.   Business flow that needs to be changed or optimized to support new service model (service

provider and service consumer).   Media that will be involved in the service development and delivery.   Service channels that are needed in the wished service model.   Service technology adoption, the level of service automation though applications, data, platform

and infrastructure.   Service Level Agreements with partners   Service measurements, in terms of critical success factors and key performance indicators.

Examples: Apple Inc transformed the music industry through a new way of connecting hardware with software, to download music by using a combination of iPods/iTunes products and services.

Virgin transformed from one value chain to another, leveraging its brand across industries including airline, media and telecom.

Page 31: Business Innovation & Transformation Enablement (BITE) method

Service Model Defines an organization’s core differentiating, main and supporting services delivered

Page 32: Business Innovation & Transformation Enablement (BITE) method

Performance Model

A Performance Model is what defines an organizations ability to perform effectively and efficiency to determine success or alignment with value objectives and goals.

As a part of any Performance Model are definition of performance goal, indicators and measures e.g. Business Process Improvement (BPI), Key Performance Indicators (KPI) and Process Performance Indicators (PPIs). This includes personalized key performance metrics (KPIs) and benchmarks that drive the financial and operational success of the company as well. Characteristic of organizations that applied Performance, where focus in the following areas:

  Performance strategy.   Business competencies that need to perform in order to create the right results   Process and activity optimization or innovation to create the needed performance.   Performance owners responsibilities for performance developments.   Roles involved in the performance concept and developments.   Business flow that needs to be changed or optimized to support new performance model.   Media that will be involved in the performance development and delivery.   Channels that are needed in the wished performance model.   Performance increased by technology adoption and thereby the level of performance

automation though applications, data, platform and infrastructure.   Performance measurements, in terms of business performance indicator, key performance

indicators and process performance indicator.

Examples: Toyota developed the Kaizen performance model. Kaizen strategy calls for a never-ending effort of improvement involving everyone in the organization – managers and workers alike.

Page 33: Business Innovation & Transformation Enablement (BITE) method

Performance Model Defines an organizations ability to perform effectively and efficiency to determine success or alignment with value objectives and goals.

Page 34: Business Innovation & Transformation Enablement (BITE) method

Cost Model

The cost model describes all costs incurred to operate in an organization supporting the service model and revenue model.

Characteristic of organizations that applied Cost Model, where focus in the following areas:

  Cost Cutting strategy.   Cost Construct (main, supporting and management cost)   Identification of Non-Core competencies for the potential of standardization, integration and or

outsourcing.   Process and activity optimization or standardization to cut cost.   Cost owners responsibilities for cost cutting.   Capture cost drivers, not just cost elements   Object cost reduction to impact total cost of ownership   Cost-Benefit Analyses Support Role   Roles involved in the service concept and developments.   Business flow that needs to be changed or optimized to reduce cost.   Media that will be involved in the cost reduction.   Channels that are impacted by the cost reduction potential.   Technology adoption, the level of standardization and integration within the automation though

applications, data, platform and infrastructure.   Cost measurements, in terms of critical success factors and key performance indicators.

Examples: Over the years the McDonald's Corporation has worked with suppliers to develop a sophisticated model to optimize operating costs. Nokia overcame high network infrastructure costs through innovative ‘village network’ solutions that allowed it to offer affordable phone service to rural consumers in India.

Page 35: Business Innovation & Transformation Enablement (BITE) method

Cost Model Describes all costs incurred to operate in an organization

Page 36: Business Innovation & Transformation Enablement (BITE) method

Operating Model

An organization’s operating model describes how an organization operates across business competencies, functions, process, organization and technology domains in order to deliver the performance and value defined by the organization. The purpose of an operating model is to make better-informed business decisions and to improve organization performance and profitability.

Characteristic of organizations that applied Operating Model, where focus in the following areas:   Operating model strategy   Development and transformation of operating model to ensure continuous consistency of core competitive

and core-differentiating competencies.   Process integration, standardization for a focused, responsive, flexible & robust operating model.   The Owner responsibilities for standardizing & integrating the operating model of one's organization   Roles involved in the operating model concept and developments   Business flow that needs to be standardized, changed or optimized to support new operating model concept   Media that will be involved in Operating Model development and delivery   Channels that are needed in the wished Operating Model   Technology adoption e.g. applications, data, platform and infrastructure, for the level of Enterprise Operating

Model integration, standardization, optimization and renewal   Operating Model measurements, in terms of critical success factors and key performance indicators that are

linked to the business strategy   Compliance to business regulations and laws   Services delivered internal as well as external to partners, suppliers and customers around the new or

transformed Operating Model initiative.   Objects in terms of products, application or data that need to be standardized & or integrated   Rules in terms of standards, guidelines & policies to ensure the right monitoring, control & optimization

initiatives.

Examples: Levi Strauss set up its first retail store in India in 1995 while partnering with multiple local manufacturers, and even today the bulk of the company’s denim products in India are manufactured by Arvind Mills, now the world’s third largest denim manufacturer and supplier to other marquee apparel brands.

Page 37: Business Innovation & Transformation Enablement (BITE) method

Operating Model Describes how an organization operates across business competencies, functions, process, organization and technology domains in order to deliver the performance and value defined by the organization.

Page 38: Business Innovation & Transformation Enablement (BITE) method

Business Model Domain Innovation and Transformation

Page 39: Business Innovation & Transformation Enablement (BITE) method

Relating External Drivers to Business Model Domains

Page 40: Business Innovation & Transformation Enablement (BITE) method

Outline Strategic Business Objectives Business Innovation & Transformation Enablement

g

G

Page 41: Business Innovation & Transformation Enablement (BITE) method

Industry exposure to external forces e.g. macroeconomics

Low High

Organizations geographic exposure to recession/crisis e.g. demographics, environment

Low High Low High

Organizations market position e.g. rivals, complementors

Strong Weak Strong Weak Strong Weak Strong Weak

Strengthen Growth Raise growth through penetrating new service markets and segments Amplify growth through partnering Boost revenue through Service & Price optimization Increase revenue through developing new Sales & Service channels Enlarge growth through expanding the Service/Product portfolio Increase revenue with existing customers Increase growth through mergers and acquisitions

Cost Eficiency Optimize Cost, Cash Flow and Capital Decrease Administration Costs Reduce Sales Costs Shrink Cost of Goods Sold Reduce Income Tax

Improve Competitiveness

Strengthen organizational developments Faster Time-to-Market Advance Customer Interaction Improve Customer Satisfaction & Loyalty Boost Brand Awareness Increase Partner & Relationship Collaboration Improve Responsiveness

 Lower  Risk   Secure  long  term  funding  Ensure  Compliance     6 6 6 6 6 6 6 6 Improve  Risk  Planning     6 6 6 6 6 6 6 6 Enhance  Risk  Management   6 6 6 6 6 6 6 6 Advance  Business  Recovery   6 6 6 6 6 6 6 6

Increase  Risk  Insight  &  Intelligence     4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Divest areas

Opera,onal   Develop  Resource  Management     6 6 6 6 6 6 6 5, 6

Outline Strategic Business Objectives Business Innovation & Transformation Enablement

Page 42: Business Innovation & Transformation Enablement (BITE) method

Identify Performance & Value Opportunities Business Innovation & Transformation Enablement

g

G

Page 43: Business Innovation & Transformation Enablement (BITE) method

Industry exposure to external forces e.g. macroeconomics

Low High

Organizations geographic exposure to recession/crisis e.g. demographics, environment

Low High Low High

Organizations market position e.g. rivals, complementors

Strong Weak Strong Weak Strong Weak Strong Weak

Strengthen Growth Raise growth through penetrating new service markets and segments Amplify growth through partnering Boost revenue through Service & Price optimization Increase revenue through developing new Sales & Service channels Enlarge growth through expanding the Service/Product portfolio Increase revenue with existing customers Increase growth through mergers and acquisitions

Cost Eficiency Optimize Cost, Cash Flow and Capital Decrease Administration Costs Reduce Sales Costs Shrink Cost of Goods Sold Reduce Income Tax

Improve Competitiveness

Strengthen organizational developments Faster Time-to-Market Advance Customer Interaction Improve Customer Satisfaction & Loyalty Boost Brand Awareness Increase Partner & Relationship Collaboration Improve Responsiveness 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3

 Lower  Risk   Secure  long  term  funding  Ensure  Compliance     6 6 6 6 6 6 6 6 Improve  Risk  Planning     6 6 6 6 6 6 6 6 Enhance  Risk  Management   6 6 6 6 6 6 6 6 Advance  Business  Recovery   6 6 6 6 6 6 6 6

Increase  Risk  Insight  &  Intelligence     4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Divest areas

Opera,onal   Develop  Resource  Management     6 6 6 6 6 6 6 5, 6

Identify Performance & Value Opportunities Business Innovation & Transformation Enablement

High Importants Medium Importants Low Importants

Page 44: Business Innovation & Transformation Enablement (BITE) method

Analyze CAN, WANT and SHOULD DO scenario Business Innovation & Transformation Enablement

g

G

Page 45: Business Innovation & Transformation Enablement (BITE) method

Analyze CAN, WANT and SHOULD DO scenario Business Innovation & Transformation Enablement

Organization CAN DO   Capability   Employee   Core Competencies   Production Faculties   Service   Product   Process

Organization WANT DO   Business Idea   Leadership preference   Leadership vision   Goal   Declaration of Intent   Value

Organization SHOULD DO   Competitive Situation   Client Side   Supplier Side   Distribution Situation   Encourage Factors

Page 46: Business Innovation & Transformation Enablement (BITE) method

Analyze & Benchmark Strategies Business Innovation & Transformation Enablement

g

G

Page 47: Business Innovation & Transformation Enablement (BITE) method

Industry exposure to external forces e.g. macroeconomics

Low High

Organizations geographic exposure to recession/crisis e.g. demographics, environment

Low High Low High

Organizations market position e.g. rivals, complementors

Strong Weak Strong Weak Strong Weak Strong Weak

Strengthen Growth Raise growth through penetrating new service markets and segments 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2

Invest / divest

Amplify growth through partnering 1 1 1 1 1 1 1 1 Boost revenue through Service & Price optimization 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 Increase revenue through developing new Sales & Service channels 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2

Invest / divest

Enlarge growth through expanding the Service/Product portfolio 2 2 2 2 2 2 2 2 Increase revenue with existing customers 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 Increase growth through mergers and acquisitions 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6

Cost Eficiency Optimize Cost, Cash Flow and Capital 3, 6 3, 6 3, 6 3, 6 3, 6 3, 6 3, 6 3, 6 Decrease Administration Costs 3 3 3 3 3 3 3 3 Reduce Sales Costs 3 3 3 3 3 3 3 3 Shrink Cost of Goods Sold 3 3 3 3 3 3 3 3 Reduce Income Tax 3 3 3 3 3 3 3 3

Improve Competitiveness

Strengthen organizational developments 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 Faster Time-to-Market 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Advance Customer Interaction 5 5 5 5 5 5 5 5 Improve Customer Satisfaction & Loyalty 5 5 5 5 5 5 5 5, 6 Boost Brand Awareness 5 5 5 5 5 5 5 5 Increase Partner & Relationship Collaboration 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 Improve Responsiveness 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6

 Lower  Risk   Secure  long  term  funding   6 6 6 6 6 6 6 6 Ensure  Compliance     6 6 6 6 6 6 6 6 Improve  Risk  Planning     6 6 6 6 6 6 6 6 Enhance  Risk  Management   6 6 6 6 6 6 6 6 Advance  Business  Recovery   6 6 6 6 6 6 6 6

Increase  Risk  Insight  &  Intelligence     4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Divest areas

Opera,onal   Develop  Resource  Management     6 6 6 6 6 6 6 5, 6

High Importants 1 = Revenue Model 4 = Performance Model Medium Importants 2 = Service Model 5 = Value Model Low Importants 3 = Cost Model 6 = Operating Model

Analyze & Benchmark Strategies Business Innovation & Transformation Enablement

Page 48: Business Innovation & Transformation Enablement (BITE) method

Identify Pain & Goal Chain Business Innovation & Transformation Enablement

g

G

Page 49: Business Innovation & Transformation Enablement (BITE) method

Identify Pain & Goal Chain Business Innovation & Transformation Enablement

Page 50: Business Innovation & Transformation Enablement (BITE) method

Identify Critical Success Factors Business Innovation & Transformation Enablement

g

G

Page 51: Business Innovation & Transformation Enablement (BITE) method

Identify Critical Success Factors Business Innovation & Transformation Enablement

Strengthen Growth Raise growth through penetrating new service markets and segments Amplify growth through partnering Boost revenue through Service & Price optimization Increase revenue through developing new Sales & Service channels Enlarge growth through expanding the Service/Product portfolio Increase revenue with existing customers Increase growth through mergers and acquisitions

Cost Efficiency Optimize Cost, Cash Flow and Capital Decrease Administration Costs Reduce Sales Costs Shrink Cost of Goods Sold Reduce Income Tax

Improve Competitiveness Strengthen organizational developments Faster Time-to-Market Advance Customer Interaction Improve Customer Satisfaction & Loyalty Boost Brand Awareness Increase Partner & Relationship Collaboration Improve Responsiveness

Lower Risk Secure long term funding Ensure Compliance Improve Risk Planning Enhance Risk Management Advance Business Recovery Increase Risk Insight & Intelligence

Operational Excellence Develop Resource Management Strengthen Service/Product Development Improve Service/Product Delivery Enhance Corporate Services Improve Information Management

Page 52: Business Innovation & Transformation Enablement (BITE) method

Define Innovation and Transformation needs Business Innovation & Transformation Enablement

g

G

Page 53: Business Innovation & Transformation Enablement (BITE) method

Revenue Model

Service Model Cost Model Performance

Model Value Model

Operating Model

Business Competency Develop the organizational competencies

Organizational Construct/Design

Slimline and optimize the Organizational Construct Redesign the organizational business areas according to revenuestream Improve balance between buy and lease Reduce organizational complexity Integrate and standardize business functions and service

Business Capability Develop business capabilities Identify reduntant capabilities Leverage strong/unique partner capabilities Invest in core capabilities

Business Resource Better resource and skills performance Improve account management skills of staff Improve ability to attract talent Optimize operation resources

Core Differentiating Competency

Invest in core competitive competencies Develop core differentiating competencies Identify which competencies are non-core competencies for the potential of standardization, integration and or outsourcing. (X) X X Increase critical competencies through partnership, merger and acquisition X X

Process Cross Organizational process development and optimization (X) X X Select which process and activity

Define Innovation and Transformation needs Business Innovation & Transformation Enablement

High Importants Medium Importants Low Importants

Page 54: Business Innovation & Transformation Enablement (BITE) method

Create Strategy Map Business Innovation & Transformation Enablement

g

G

Page 55: Business Innovation & Transformation Enablement (BITE) method

Create specific Innovation Transformation Strategy Map

Page 56: Business Innovation & Transformation Enablement (BITE) method

Create Strategy Map Business Innovation & Transformation Enablement

Industry exposure to external forces e.g. macroeconomics

Low High

Organizations geographic exposure to recession/crisis e.g. demographics, environment

Low High Low High

Organizations market position e.g. rivals, complementors

Strong Weak Strong Weak Strong Weak Strong Weak

Business Strategy Define strategy in terms of how to win, adapt or even survive: Strengthen Growth Raise growth through penetrating new service markets

and segments 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 Invest / divest

Amplify growth through partnering 1 1 1 1 1 1 1 1 Boost revenue through Service & Price optimization 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 1, 2, 3 Increase revenue through developing new Sales & Service channels 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2

Invest / divest

Enlarge growth through expanding the Service/Product portfolio 2 2 2 2 2 2 2 2 Increase revenue with existing customers 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 Increase growth through mergers and acquisitions 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6

Cost Eficiency Optimize Cost, Cash Flow and Capital 3, 6 3, 6 3, 6 3, 6 3, 6 3, 6 3, 6 3, 6 Decrease Administration Costs 3 3 3 3 3 3 3 3 Reduce Sales Costs 3 3 3 3 3 3 3 3 Shrink Cost of Goods Sold 3 3 3 3 3 3 3 3 Reduce Income Tax 3 3 3 3 3 3 3 3

Improve Competitiveness

Strengthen organizational developments 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 Faster Time-to-Market 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Advance Customer Interaction 5 5 5 5 5 5 5 5 Improve Customer Satisfaction & Loyalty 5 5 5 5 5 5 5 5, 6 Boost Brand Awareness 5 5 5 5 5 5 5 5 Increase Partner & Relationship Collaboration 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 Improve Responsiveness 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6

 Lower  Risk   Secure  long  term  funding   6 6 6 6 6 6 6 6 Ensure  Compliance     6 6 6 6 6 6 6 6 Improve  Risk  Planning     6 6 6 6 6 6 6 6 Enhance  Risk  Management   6 6 6 6 6 6 6 6 Advance  Business  Recovery   6 6 6 6 6 6 6 6

Increase  Risk  Insight  &  Intelligence     4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Divest areas

Opera,onal   Develop  Resource  Management     6 6 6 6 6 6 6 5, 6

High Important 1 = Revenue Model 4 = Performance Model Medium Important 2 = Service Model 5 = Value Model

Low Importants 3 = Cost Model 6 = Operating Model

Page 57: Business Innovation & Transformation Enablement (BITE) method

Understand / Create Scorecard Business Innovation & Transformation Enablement

g

G

Page 58: Business Innovation & Transformation Enablement (BITE) method

Understand / Create Scorecard Business Innovation & Transformation Enablement

Page 59: Business Innovation & Transformation Enablement (BITE) method

Create Value Map Business Innovation & Transformation Enablement

g

G

Page 60: Business Innovation & Transformation Enablement (BITE) method

Create Value Map Business Innovation & Transformation Enablement

Page 61: Business Innovation & Transformation Enablement (BITE) method

Create Performance Measurements Business Innovation & Transformation Enablement

g

G

Page 62: Business Innovation & Transformation Enablement (BITE) method

Create Performance Measurements Business Innovation & Transformation Enablement

Page 63: Business Innovation & Transformation Enablement (BITE) method

Priorities Innovation & Transformation Initiatives Business Innovation & Transformation Enablement

g

G

Page 64: Business Innovation & Transformation Enablement (BITE) method

Revenue Model

Service Model Cost Model Performance

Model Value Model

Operating Model

Business Competency Develop the organizational competencies X X

Organizational Construct/Design

Slimline and optimize the Organizational Construct X X Redesign the organizational business areas according to revenuestream X (X) X Improve balance between buy and lease (X) X Reduce organizational complexity (X) X X Integrate and standardize business functions and service X (X)

Business Capability Develop business capabilities (X) X Identify reduntant capabilities X X X Leverage strong/unique partner capabilities (X) X Invest in core capabilities X (X)

Business Resource Better resource and skills performance X X Improve account management skills of staff (X) X Improve ability to attract talent (X) X Optimize operation resources (X) X X

Core Differentiating Competency

Invest in core competitive competencies X X (X) X Develop core differentiating competencies X X Identify which competencies are non-core competencies for the potential of standardization, integration and or outsourcing. (X) X X Increase critical competencies through partnership, merger and acquisition X X

Process Cross Organizational process development and optimization (X) X X Select which process and activity

High Importants  X  =  Targeted  

Medium Importants (X)  =  Secondary  target  

Low Importants

Define Innovation and Transformation needs Business Innovation & Transformation Enablement

Page 65: Business Innovation & Transformation Enablement (BITE) method

Priorities Innovation & Transformation Initiatives Business Innovation & Transformation Enablement

Page 66: Business Innovation & Transformation Enablement (BITE) method

Main take away

  The only way to innovate or transform, is by changing what you do

  The BITE Method relates the right objects and artifacts to ensure that the defined innovation & transformation needs and wants within an organization, can be executed.

  The BITE method structures the LEAD objects to enable the practitioner’s way of working with innovation and transformation aspects across all layers, with supporting artifacts e.g. templates & tools, that have the integrated transformation and innovation principles, rules, procedures and practices embedded.

Page 67: Business Innovation & Transformation Enablement (BITE) method

67