2. copyright Value Chain Group © all rights reserved Enterprise Wide Cross Industry Domain or Industry Specific Product / Project Lifecycle Improvement Projects System Blueprints System/Functions dictionaries are used to manage both business context and business content. Defines all interfaces with methods/functions required for the collaboration data manipulations and interactions between system and application functional capabilities.

3. Semantic Framework Elements Governance enables explicit definition of roles, metrics and rules governing process transformation specifies how processes are measured, modeled, analyzed, promoted to, replaced or removed from the execution environment Methodology ties all elements together specifies techniques, methods and tools used for each step of the business transformation specifies steps and deliverables of using semantic EA framework enables continuous improvement of the framework Process (modeling and analysis) enables representation of process flows including every detail required for successful mapping to technology reference architecture processes can be defined by practitioners, not just EA specialists processes can be analyzed to determine root causes of underperformance consensus can be developed between various process owners and stakeholders Reference Run-Time Architecture provides components and semantics for process execution monitors and life cycle manages various versions of processes in execution provides security, scalability, portability and reusability of the process execution environment

4. Facilitates creation of strategies or solutions in weeks, not months, without re-work. Quick start up and less frustration due to organized framework and management. Effective communication (common language) Pre-defined process definitions, metrics and best practices Application independent Redirects focus from systems to processes. Focus on resolving problems rather than symptoms. No systems internal functionality knowledge required to understand a process description No need for translation for software and process experts. Easy lookup of predefined definitions. Reusability of project documentation. Using same metric definitions and formulas = measurable Formulation of strategy in terms of measurable high-level business objectives. Metrics are tightly connected to performance attributes Change projects are identified based on chain (s) performance rather than point solutions. Competency which does not require involvement of external consultancy. Shorter project lifecycles (fast startup and execution) saves money. Prevention of re-work and abandonment of non-value- add IT solutions Metrics Driven Process Focus Speed of Execution Cost Saving copyright Value Chain Group © all rights reserved VRM Value Proposition

6. copyright Value Chain Group © all rights reserved Value Reference Model

7. VRM methodology was designed from an holistic perspective with the following objectives in mind: to see better. to understand better. to act better. Its underlying structure is integrated into the VRM model, enabling analysis of value chain strategies and interactions. Systems Based Approach

8. CustomerNetworks SupplierNetworks Model Coverage

9. General Framework Level 1 Level 2 Level 3 Metrics Configurations Input /Output Technology Practices

11. copyright Value Chain Group © all rights reserved Extensible Reference Model

12. When modeling value stream any element from any dictionary is useful for as long as: - Dictionaries follow same class structure, - Elements have normalized definitions - Dictionaries are adding different levels of specificity - Terminology is applicable to the context of the value stream XRM Example: ProductDevelopment

13. Water Resources Agriculture Public Works Oil Product Development Supply Chain Customer Relations ElectricityManufacturing XRM Dictionaries are created to provide company, industry and/or domain specific activity models. XRM models are loosely coupled to provide flexibility while maintaining context to an overarching VRM framework. copyright Value Chain Group © all rights reserved

14. Business Process Definition Dictionaries Typical Business Process Configurations Specific Business Process Designs Industry Neutral Reference Model Enterprise Dictionaries Enterprise ValueStreams Region – Product – Relationship Specific Process Flow Design Process Blueprints for Implementation Business Architecture Structure Structure ScopeExample VRM Base Map XRMs Order to Cash Procure to Pay North America OEM Customer Order Delivery e-Procurement Blueprint

16. Education Pilot Project Program Charter Program Execution Point of Commitment DiagnosticBPTF Framework Best Practice Assessment Detailed Process Designs Solution Deployment BPTF Roadmap 1.Instantiate VRM Database 2.Load - Work Units, Roles, Locations, Products …. 3.Indentify Key Business Processes 4.Collect & Translate Existing Process Documentation 5.Instantiate Extended Process Structure 6.Prune unrelated dictionary items 1.Identify Pilot Stakeholders & Scope 2.Develop Pilot Charter 3.Design Team Education 4.Executive Priorities Dimensions 5.Design Workshops 6.Metric Session 7.PACOM Session 8.End to End Design Session 9.Report Out Best Practice Templates

17.   Step 1 - Front End Education a.Champion Education b.Establish initial program vision c.Identify program stakeholders d.Educate key stakeholders e.Build stakeholder support Step 2 - Charter VRM program a.Recruit program sponsor b.Define program intent c.Document process and organizational scope d.Specify program approach e.Allocate program resources f.Define program measures of success and assumptions g.Establish program timeline Step 3 - Establish ValueStream Design Charter a.Create a high level description and purpose of the process b.Define strategic goal of the process c.Establish tactical objectives to accomplish the strategic goal

19.     Step 1 – Review Process Design a.Red line process diagrams b.Update process design as required c.Submit for review until full consensus is achieved Step 2 – Create Process Definition Templates a.Create process definition b.Describe the purpose of the sub process c.Establish the tactical objectives of the sub process d.Determine the functional areas required to perform the process (Supply Chain, Sales, Marketing etc...) Example – Master Schedule Scope Definition (Plan, Release and Daily Management) Step 3 – Define Process Elements Example – Existing Master Schedule Documentation Step 4 – Generate Scenario Summary Report a.Compile process design deliverables b.Run final process diagrams c.Run scenario summary reports

24. P2P Use Case

31. Scenario Design & Analysis

32. Changes belong to the following five categories: Consensus on root causes needs to lead to a consensus on changes P rocess Can we change the flow How can we change the flow to eliminate the root cause A utomation Can we speed up some steps How can we reduce information gathering and dissemination time C ulture Why are we sticking to old habits Do we have any motivational inertia in our resource base (retirement, stalled careers, …) O rganizational Are we managing resources in a balanced fashion Is organizational reporting aligned with process responsibilities M etrics Are we measuring right indicators What should we measure to get better proactive signs PACOMs

33. Change ideas are documented during process design sessions Functional (along key bottlenecks) Cross-functional (along key gaps or interfaces) Changes are classified by PACOM and assigned Rate of impact Rate of difficulty Changes are prioritized by two factors Determine PACOM spread at the top of the list More PA is better More COM requires governance considerations

36. e-Procurement Performance Analysis

37. e-Procurement Blueprint – Issue Order

39. Issue Order- XML Blueprint Export