VDML by OMG - Building Business Capability

The Value Management Platform
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VDML by OMG
Providing a Clear View of Business Value Delivery
Case Study Presentation
Henk de Man
Wytse van der Meulen
VDMbee: What do we do
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•  …… Animation …
•  … explain Bee & Beehive metaphor … ?? (get some from Google, about
community aspect of bees, pollination, etc.; also what “bee” means as
acronym)
Value Delivery Management: Steering the Business
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PHASE 3
Plan
In Control
Value
Alignment
Alternative 2
+ 20 %
Steering on Values
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Better businesses innovate and transform continuously to
create and secure Value.
Values are the matters of interest or importance to the
stakeholders of the business.
Management of an innovation or transformation initiative
requires a Plan as the vehicle to define and execute strategies.
Plan Values are defined as basis for management and measurement of success
of plan outcomes. Plan Values are the basis of defining Plan objectives.
Value Objectives are achieved in a Phase-based manner
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Phases are the steps that are defined towards achieving the
goal.
Value objectives can be defined and managed per Phase.
Per Phase, one or more Alternatives can be defined.
Alternatives are possible scenarios that are explored with
respect to their achievement of Value objectives of a Phase.
Demonstrate based on VDMbee Value Management Platform
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Plans
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Plan
Phase
Alternatives supported by Business Models
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Analysis and
implementation of
Alternatives is supported
by the definition,
exploration and simulation
of Business Models.
A Business Model
defines how a Business,
in a particular productmarket combination,
creates and delivers
Value for the
stakeholders involved
A product-market combination is typically defined as the combination of a Value
Proposition provided to a Customer (or Market Segment).
Business Model Framework (Cube)
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Customers
6 dimensions
Cube as graphical 3D metaphor !
Value
Propositions
Values
Relations
Partners
Activities
Competencies
Based on Business Model Cube framework
Peter Lindgren (Univ. of Aarhus, DK)
As variation to Business Model Canvas (and other frameworks)
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•  Focus on “Multi Business Model” innovation
! 
! 
! 
Businesses have multiple Business Models (BMs)
Relationships, intra- and inter-BM →"BM#ecosystems
BM aren’t silos → re-use of elements across BMs
•  Uniform concept of Value
•  More primitive
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Business and its Business Models
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A Business (Enterprise) typically has multiple Business Models
Plan Models and Progress
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Alternative
Business Model
Value Progress
Plan Models and Progress (multiple BMs)
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Ecosystem of BMs
Plan Values
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Plan Values
Business Model Cube and Progress
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Business Model
BM Values
From BM Cube to structured Business Model
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Value Delivery Modeling
Language (VDML):
•  Give “hands and feet” to BM
Cube Concepts
•  Define relationships
between BM elements, to
express how businesses
operate and create and
deliver Value
New: VDML 1.0 (Flyer)
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VDML Concepts in a nutshell
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Abstraction from the actual Meta-model
SMM for measurement
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VDML integrated with another OMG spec:
Structured Metrics Metamodel (SMM) 1.1,
for Value measurement
Business Model of the Business
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“My Proposition”
Customers
Values
Relations
Value Propositions
Competencies
Partners
Activities
Business
Business Model Cube: Relations
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Customers
Values
Value
Propositions
Participant Networks
(Business Networks) →
foundation of BMs &
Relations.
Participant Networks
Activities
Partners
Competencies
Participants
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Participant Networks
Participants
(Enterprises,
Market
Segments,
Individuals)
Partners
Roles
Business
Customers
BM & Participant Networks
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A Business Model is based
on one or more Participant
Networks.
Participant Networks may be shared between BMs.
Use Case: Ryanair’s Cheap Flights Business Model
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BM definition
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To definition of BM
Defining the BM in each dimension
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BM data per each dimension
•  Business, Customers and Partners
combined
•  “My Propositions” separate from
Value Propositions
Structured models as foundation
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Strategic Plan
Context
transformation & linkage
BPM
Impact
monitoring
Enterprise Computing
“Storytelling”: Enter Value Propositions
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Guided approach, by answering questions →"basis"for"
genera-on"of"instances"of"rela-onships"in"the"Meta4model
“Storytelling”: Enter Activities
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Question frame for Activities implies Value Stream
“Storytelling”: Enter Competencies
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Resources
Capabilities
Back to “steering”: Value impact
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Values influence each
other. They can be
aggregated in various
directions:
•  within and across BMs
•  From BMs to Plan and
vice versa
This enables impact analysis and
what-if calculations of BMs, ecosystems
of BMs and the Plans that they support.
Explore Alternatives
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Alternatives
Value
Base
Low fares
Fares
€ 45
€ 25
Fuel usage
4.08 ltr / km
2.85 ltr / km
Fuel price
1.50 € / ltr
0.90 € / ltr
Pilot rate
650 € / flight
500 € / flight
Profit
€ 62.84 Mil
€ 63.67 Mil
Changing details →"instantaneous"impact
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Value details
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Evolution over time, from Phase to Phase
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Phases
Value
Introduction
(Year 1)
Growth
(Year 2)
Independence
(Year 3)
Fares
€ 45
€ 40
€ 35
Fuel usage
4.08 ltr / km
3.40 ltr / km
3.10 ltr / km
Fuel price
1.50 € / ltr
1.30 € / ltr
1.15 € / ltr
Add-On ratio
25 %
30 %
35 %
Add-On amount
€ 15
€ 30
€ 35
Buy-in-Flight ratio
30 %
35 %
40 %
In-Flight deal amount
€ 7.40
€ 15.00
€ 20.00
Market Share
3%
8%
13 %
Market Size
623 Mln tickets
650 Mln tickets
680 Mln tickets
Evolution over time, from Phase to Phase
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Phases
Value
Introduction
(Year 1)
Growth
(Year 2)
-52.09 Mln €
Independence
(Year 3)
Profit
63.34 Mln €
End Capital
163.44 Mln € 160.85 Mln € 228.15 Mln €
New Capital
100 Mln €
50 Mln €
67.3 Mln €
0 Mln €
Plan drives Model Life Cycle Management
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Different Alternatives set different
Scenarios *) in shared Package,
setting its specific context for
Measurements and Competency use
An Alternative autosets local version when
structural changes are
applied
Under the hood …
Model data
organized by
Packages *)
New version
*) VDML
Concepts
Package
So, what can you do with it ..
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•  Make Strategy concrete, based on
•  “Molding” business, to best support Strategy, whereby
•  Value Objectives are achieved in a Phase-based manner, whereby
•  Alternatives can be explored, and whereby
•  Impact per Phase and Alternative is calculated / simulated instantaneously, to
•  Support effective decision making, whereby such
•  Business “molding” is not a technical job, as
•  Business Users do this in a guided way, following a
•  “Story-telling” approach
And furthermore ..
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•  This is enabled by on-line generation of structured models (VDML & SMM)
from Business User-entered data (and vice versa)
•  This is a foundation on which more can be built, such as:
! 
Calculation / simulation based on as-monitored data: “Sensing BM”
! 
Teamwork with integration and coordination of distributed contributions
! 
Role-based training, facilitating alignment and compliance
! 
Analysis and presentation of differences between As-Is and To-Be in detail
! 
More detailed views for Architects and Engineers, based on the same model
! 
Transformation of model data into executable models
The Value Management Platform
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Questions / Discussion
Contact:
wvdmeulen@vdmbee.com
hdman@vdmbee.com
Demonstration @ VDMbee table in Exhibit Hall