AT / atomic / Business Process Management / Cloud / expense / financial / Financial Management relationships / Generic / generic objects / global / Item Transactional / management capability / management to transaction / master data / new business models / party / revenue / Risk / suppliers / transaction / universal objects

Design for New Business Models-IT and Business Strategy


An analogy

An analogy of a 3 lane highway anywhere in the world abe a nd a model which can be a foundation universally applied to any size organization.  The opportunity would ideally serve as the business friendly opening conversation with any internal function and as the annual planning process cycle begins the use of the analogy ensures a consistent discussion around risk to ensure your goals are aligned to the strategy and executed consistently across the organization.

  1. The analogy isn’t going to limit us to any geographical location
  2. Nor does the analogy limit us to a specific industry; instead the analogy allows us to have general discussions around risk and rewards as the foundation and boundaries most functional leaders have no visibility nor direct responsibility to manage.
  3. The suppliers, customers, workers and external stakeholders will be applied using the lanes in the highway and different directions of the highway.

Entry and Exit

We will explain the points of entry and exit, the speed in which we would expect in each lane and how the two directions on any highway tell us whether to reduce our expense or increase our revenue.

South

We can assume that our suppliers travel in one direction for the purpose of this analogy we will assume they are in our southbound direction on any of the three lanes.

North

We can assume travelers Northbound on the highway are customers with the revenue outcome measured in any entering traveler.  We can assume the revenue was recognized at the exit of the traveler when exiting the highway.

Three lanes

In either direction we can assume the traveler enters the highway in some motor vehicle.  We are not concerned about the make, model or color and even less concerned about the driver.

In this analogy we simply know these details exist, which may influence the rate of speed the traveler moves in either North or South directions.

As with any highway, we have a slow lane that all travelers enter the highway by merging into the slow lane.  As the traveler accelerates they may move into the middle lane and eventually the farthest lane to the left.

Performance Measures

The performance of an organization can be derived by the number of travelers entering in one direction and how quickly they begin to measure the make and models entering in the North direction after exiting from the South bound direction.  We are assuming that south bound relates our suppliers with the build of an offer, exiting implies a customer can pick up the vehicle and travel North as they purchase the vehicle.

Design Strategy

Risk According to the Security Exchange Commission

The Slow Lane-Competitive Advantage

New Business Models

Any entrance and exit isn’t restricted by the design, we are predicting the rate of speed the new business models will be traveling slower in the first lane before they are allowed to merge on to the middle or farthest left lane.  We suspect they will exit and enter frequently, therefore they will be best suited to travel in the first slow lane.

Often the Non-GAAP model.  Will require many of the following behaviors.

Assume this behavior or design pattern speaks to the way these offers ramp up and come back to get re-aligned several times before making it to the fast lane.

Middle Lane

The middle lane travelers who first enter, then accelerate and merge to the middle lane.  They may merge further left to the fast lane with the assumption that they will not impede the faster travelers.

The fast lane-Build Order Transfer models

In some cases the commuter lane, where the distribution model works with a partner to allow the fully sustained model.

Capabilities

Your 5 capability model summarizes and converges the financial, business and quality management systems into your ERP system as the primary and single version of truth.

Management Capabilities

A distinct set of activities which enable the create, update and determine the appropriate entitlement to read the master records created in the system of record “ERP”.

  1. Financial Management Capability
  2. Offer Management Capability
  3. Party Management Capability

Your management capabilities and transaction capabilities are designed for the best and known design patterns.  Your organization should be measuring the performance against these criteria for external stakeholders.

Your MDM systems enable ERP master records and collect the transaction relationships for your 360 degree view of each of the MDM or management capabilities that your transaction capabilities must use  or source as a reference or point in time available options for the transaction event. The point in time must be grandfathered against the current state of the master record.

Management capabilities are static and all process activities must be maintained in your records management container.

Transactional Capabilities

The run time processing or the transactional system used to run the operational activities in the life cycle of an offer through the two capability types.

  1. Expense Transaction Capabilities
  2. Revenue Transaction Capabilities

You are on your way to cloud services in this basic design and ready for new strategies every time.

No longer should you have to re-visit your own design for your strategy conversations the questions should be to which of the lanes are you going to scale or upgrade.

We know exactly which lanes are going to be the competitive advantage conversations-Your SLOW LANE.

Modeling Approaches

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