Business Innovation & Transformation Enablement (BITE) Method

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

2 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 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

3 The ratio of cost and value is broken Everybody talks about strategy, very few are able to relate the operation to it 72% of all IT projects fail* 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

4 From Strategy to Execution Business Innovation & Transformation Enablement 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. 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 Lifecycle Method Layered Architecture Method Decomposition & Composition Method Maturity Reference Method Requirement Reference Method

5 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 Resources Strategy Functions/Tasks Process Events Services SLA Application Components Appl. Functions Data Components Data Entities Data Objects PPIs Platform Components Platform device Competencies External drivers KPIs Appl. Feature Infrastructure Components SPIs CSFs Appl. Service Data Service Platform Service Infrastructure Devices Infrastructure Services

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

7 Structures the LEAD objects to enable the practitioner s way of working across all layers. Example Business Model Mthod Strategy External drivers Resources Competencies CSFs Functions/Tasks Process KPIs Events PPIs Services SLA SPIs Application Components Appl. Feature Appl. Functions Data Components Data Entities Data Service Data Objects Platform Components Platform device Platform Service Infrastructure Components Infrastructure Devices Infrastructure Services

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

9 Structures the LEAD objects to enable the practitioner s way of working across all layers. Example Strategy Map Mthod Strategy External drivers Resources Competencies CSFs Functions/Tasks Process KPIs Events PPIs Services SLA SPIs Application Components Appl. Feature Appl. Functions Appl. Service Data Components Data Entities Data Service Data Objects Platform Components Platform device Platform Service Infrastructure Components Infrastructure Devices Infrastructure Services

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

11 Structures the LEAD objects to enable the practitioner s way of working across all layers. Example Balance Scorecard Mthod Strategy External drivers Resources Competencies CSFs Functions/Tasks Process KPIs Events PPIs Services SLA SPIs Application Components Appl. Feature Appl. Functions Appl. Service Data Components Data Entities Data Service Data Objects Platform Components Platform device Platform Service Infrastructure Components Infrastructure Devices Infrastructure Services

12 LEAD Measurements Template

13 Structures the LEAD objects to enable the practitioner s way of working across all layers. Example LEAD Measurements Template Mthod Strategy (SBO) External drivers Resources Competencies CSFs Functions/Tasks Process KPIs Events PPIs Services SLA SPIs Application Components Appl. Feature Appl. Functions Appl. Service Data Components Data Entities Data Service Data Objects Platform Components Platform device Platform Service Infrastructure Components Infrastructure Devices Infrastructure Services

14 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 Resources Strategy Functions/Tasks Process Events Services SLA Application Components Appl. Functions Data Components Data Entities Data Objects PPIs Platform Components Platform device Competencies External drivers KPIs Appl. Feature Infrastructure Components SPIs CSFs Appl. Service Data Service Platform Service Infrastructure Devices Infrastructure Services

15 Definitions of Innovation and Transformation * Oxford Dic,onaries 2012

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

17 Innovation example Business Innovation & Transformation Enablement

18 Analyze Existing Strategy Business Innovation & Transformation Enablement G g

19 Analyze / Identify Existing Strategies Business Innovation & Transformation Enablement 19

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

21 Identify Internal & External Drivers Business Innovation & Transformation Enablement External Influencing Factor Internal Influencing Factor Government Regulations Macro Economics Technology changes Competitors & Rivals Joint Venture & Partners Strategic Business Objectives Critical Success Factors Key Performance Indicators Value & Performance Drivers Enterprise Structures Supplier People Process Organization Technology

22 Identify Internal & External Drivers Business Innovation & Transformation Enablement 22

23 Understand Business Model Drivers Business Innovation & Transformation Enablement G g

24 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

25 Lessons Learned around Business Model Innovation and Transformation Research

26 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.

27 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.

28 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.

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

30 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.

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

32 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 neverending effort of improvement involving everyone in the organization managers and workers alike.

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

34 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.

35 Cost Model Describes all costs incurred to operate in an organization

36 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.

37 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.

38 Business Model Domain Innovation and Transformation

39 Relating External Drivers to Business Model Domains

40 Outline Strategic Business Objectives Business Innovation & Transformation Enablement G g

41 Outline Strategic Business Objectives Business Innovation & Transformation Enablement Industry exposure to external forces e.g. macroeconomics Organizations geographic exposure to recession/crisis e.g. demographics, environment Organizations market position e.g. rivals, complementors Low High Low High Low High 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 Improve Competitiveness Lower Risk Reduce Income Tax Strengthen organizational developments Faster Time-to-Market Advance Customer Interaction Improve Customer Satisfaction & Loyalty Boost Brand Awareness Increase Partner & Relationship Collaboration Improve Responsiveness Secure long term funding Ensure Compliance Improve Risk Planning Enhance Risk Management Advance Business Recovery Divest Increase Risk Insight & Intelligence 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 areas Opera,onal Develop Resource Management , 6

42 Identify Performance & Value Opportunities Business Innovation & Transformation Enablement G g

43 Identify Performance & Value Opportunities Business Innovation & Transformation Enablement Industry exposure to external forces e.g. macroeconomics Organizations geographic exposure to recession/crisis e.g. demographics, environment Organizations market position e.g. rivals, complementors Low High Low High Low High 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 Strengthen organizational developments Competitiveness 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 High Lower Importants Risk Secure long term funding Ensure Compliance Medium Importants Improve Risk Planning Low Importants Enhance Risk Management Advance Business Recovery Divest Increase Risk Insight & Intelligence 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 areas Opera,onal Develop Resource Management , 6

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

45 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

46 Analyze & Benchmark Strategies Business Innovation & Transformation Enablement G g

47 Analyze & Benchmark Strategies Business Innovation & Transformation Enablement Industry exposure to external forces e.g. macroeconomics Organizations geographic exposure to recession/crisis e.g. demographics, environment Organizations market position e.g. rivals, complementors Low High Low High Low High 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 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 & Invest / Service channels 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 divest Enlarge growth through expanding the Service/Product portfolio Increase revenue with existing customers 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 Cost Eficiency Increase growth through mergers and acquisitions 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 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 Reduce Sales Costs Shrink Cost of Goods Sold Improve Reduce Income Tax Strengthen organizational developments 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 Competitiveness Faster Time-to-Market 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Advance Customer Interaction Improve Customer Satisfaction & Loyalty , 6 Boost Brand Awareness 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 High Importants Secure 1 = Revenue long term Model funding Ensure Compliance 4 = Performance Model Medium Importants Improve 2 = Service Risk Planning Model 5 = Value Model Low Importants Enhance 3 = Cost Risk Model Management 6 = Operating Model Advance Business Recovery Divest Opera,onal Increase Risk Insight & Intelligence 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 areas Develop Resource Management , 6

48 Identify Pain & Goal Chain Business Innovation & Transformation Enablement G g

49 Identify Pain & Goal Chain Business Innovation & Transformation Enablement

50 Identify Critical Success Factors Business Innovation & Transformation Enablement G g

51 Identify Critical Success Factors Business Innovation & Transformation Enablement Strengthen Growth Cost Efficiency Improve Competitiveness Lower Risk Operational Excellence 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 Optimize Cost, Cash Flow and Capital Decrease Administration Costs Reduce Sales Costs Shrink Cost of Goods Sold Reduce Income Tax Strengthen organizational developments Faster Time-to-Market Advance Customer Interaction Improve Customer Satisfaction & Loyalty Boost Brand Awareness Increase Partner & Relationship Collaboration Improve Responsiveness Secure long term funding Ensure Compliance Improve Risk Planning Enhance Risk Management Advance Business Recovery Increase Risk Insight & Intelligence Develop Resource Management Strengthen Service/Product Development Improve Service/Product Delivery Enhance Corporate Services Improve Information Management

52 Define Innovation and Transformation needs Business Innovation & Transformation Enablement G g

53 Define Innovation and Transformation needs Business Innovation & Transformation Enablement Business Competency Organizational Construct/ Design Business Capability Business Resource Core Differentiating Competency High Importants Medium Importants Low Importants Process Revenue Model Service Model Cost Model Performance Model Value Model Operating Model Develop the organizational competencies 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 Develop business capabilities Identify reduntant capabilities Leverage strong/unique partner capabilities Invest in core capabilities Better resource and skills performance Improve account management skills of staff Improve ability to attract talent Optimize operation resources 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 Cross Organizational process development and optimization (X) X X

54 Create Strategy Map Business Innovation & Transformation Enablement G g

55 Create specific Innovation Transformation Strategy Map

56 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, Strong Weak Strong Weak Strong Weak Strong Weak complementors 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 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 & Invest / Service channels 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 1, 2 divest Enlarge growth through expanding the Service/Product portfolio Increase revenue with existing customers 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 1, 5 Cost Eficiency Increase growth through mergers and acquisitions 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 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 Reduce Sales Costs Shrink Cost of Goods Sold Improve Reduce Income Tax Strengthen organizational developments 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 5, 6 Competitiveness Faster Time-to-Market 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Advance Customer Interaction Improve Customer Satisfaction & Loyalty , 6 Boost Brand Awareness 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 High Risk Important 1 Secure = Revenue long term Model funding 4 = Performance Model Medium Important 2 Ensure = Service Compliance Model 5 = Value Model Low Importants 3 Improve = Cost Risk Model Planning 6 = Operating Model Enhance Risk Management Advance Business Recovery Increase Risk Insight & Intelligence 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 4, 6 Divest areas

57 Understand / Create Scorecard Business Innovation & Transformation Enablement G g

58 Understand / Create Scorecard Business Innovation & Transformation Enablement

59 Create Value Map Business Innovation & Transformation Enablement G g

60 Create Value Map Business Innovation & Transformation Enablement

61 Create Performance Measurements Business Innovation & Transformation Enablement G g

62 Create Performance Measurements Business Innovation & Transformation Enablement

63 Priorities Innovation & Transformation Initiatives Business Innovation & Transformation Enablement G g

64 Define Innovation and Transformation needs Business Innovation & Transformation Enablement Revenue Model Service Model Cost Model Performance Model Value Model Operating Model Business Competency Develop the organizational competencies X X Organizational Construct/ Slimline and optimize the Design 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 Capability business functions and service X (X) Develop business capabilities (X) X Identify reduntant capabilities X X X Leverage strong/unique partner capabilities (X) X Business Resource Core Differentiating Competency Process Invest in core capabilities X (X) 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 Invest in core competitive competencies X X (X) X Develop core differentiating competencies X X Identify which competencies are High Importants non-core competencies X = Targeted for the Medium Importants potential of (X) standardization, = Secondary target Low Importants integration and or outsourcing. (X) X X Increase critical competencies through partnership, merger and acquisition X X Cross Organizational process development and optimization (X) X X

65 Priorities Innovation & Transformation Initiatives Business Innovation & Transformation Enablement

66 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.

67 67

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