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Business Value Tree A Value Framework to identify, plan, create and realize value Improve Competitiveness Increase Shareholder Value Lower Risk Increase Operational Efficiency Increase Revenue Through Volume Optimization Increase Revenue Through Price Optimization Reduce Sales & Administration Costs Optimize Regulation Compliance Improve Business Recovery Improve Capital Management Improve Human Capital Management Improve Development & Production Improve Corporate Services Improve Logistics, Material & Services Optimize Intelligence Improve Risk Planning Improve Risk Management Improve Data Management Improve Customer Interaction Improve Customer Satisfaction & Loyalty Improve Partner & Relationship Collaboration Faster Time-to-Market Improve Responsiveness Improve Brand Awareness Strengthen Innovation Reduce Income Taxes Reduce Cost of Goods Sold Capital Optimization Critical Success Factors Key Performance Indicators Strategical Key Performance Indicators Tactical Key Performance Indicators Operational Strategic Business Objectives CMO RO O BD CCO FL S MS CMO FO/RE S BD CMO FO S MS CMO RE S MS CMO FO O MS CMO RE O MS CMO RE O MS CMO FO O MS CMO FO T MS CMO FO T MS CMO RO O IT CMO RE O MS CMO RE T MS CMO RE T MS CMO FL O MS CMO FO T MS CHRO RE T MS CMO RE S MS CMO FL O MS CMO FO/RE T GA CMO FO T GA CSO RE O BD CDO RE O BD CMO RE S MS CSO FL S MS CMO FO S MS CSO RE O MS CMO RE T IT CMO RO O IT CBDO RE T MS CSO FL/RE T MS CMO RE/FO O MS CMO FO T BD CMO RE T MS CSO FL/RE S MS CMO FO T OS CMO FL/RE O MS CPO FL S OS CPO FO S OS COO/CRDO FL S OS COO/CRDO FL S OS COO/CIO FL O OS COO FL O GA CHRO FL O GA CHRO FL O GA CHRO FL S GA CFO/COO FO S GA CFO/COO FO S GA CFO/CHRO FL O GA CFO FL S GA CFO FO S OS CFO FL S OS CMO FL/RE O OS CMO FO T MS CMO RE T BD CMO RO/FL O OS CMO RE O BD CMO FO O MS COO FL T GA COO RE T BD COO RO O OS CMO FO O BD CMO FL O MS CIO RO O OS CFO/COO RO/FO S GA CFO/COO RO O MS CFO RO/FO T OS CFO RO T GA CFO FO O OS CFO FL T OS CFO FO/RO O GA CFO FL O MS CFO RO O OS CRDO RE S BD CRDO FO O OS CPO FO S BD COO FL O BD COO FO O BD CMO FO T BD CMO RE O MS CMO RE T MS CFO FL S MS CPO RO T OS CPO FO T GA CIO RO/FO O GA CIO RO/RE S GA CIO FO O GA CHRO FO/RO O GA CHRO RO O GA CRDO FL O BD CPO FO S OS COO RE S OS COO RE S BD COO FL O OS COO FL O OS COO FL O MS CMO FO T MS COO/CRDO RE O OS COO/CRDO FO O GA COO/CRDO RE/FL S BD COO/CFO FL O OS COO FO T OS COO FL/FO S HR CRDO/CIO RE S MS CRDO FL O BD COO RE S BD COO FO O BD COO RO O MS COO FO O MS COO FO S BD CPO FO S OS CPO FO T GA COO FO O OS COO FL O OS CRDO FO S BD CMO RE T BD CMO RE O BD CMO RE O BD CRDO FO O BD CRDO RE O BD CRDO RE O BD CRDO FO O MS CMO/CRDO RE O BD CRDO FO S BD CRDO RE O BD CRDO RE O BD CRDO RE S BD CRDO FO O BD COO RE O BD CMO RE O BD CRDO RE O BD CMO/CIO RE T BD CMO FO T BD CRDO FO/RE S BD CRDO FO O OP CRDO FO/RE T BD CRDO RE O BD CRDO RE T BD CRDO RE T BD CRDO FO O BD CRDO FO T BD CRDO FO/RE S BD COO FO O GA COO RE/RO O GA CMO RE O MS CRSO RO O GA COO/CIO RE O GA COO RE/FL O GA COO RE O MS CIO FL S GA CFO/COO FL O GA COO RE O GA CIO FL O GA CIO RE/RO O GA CFO/CIO RE S GA CMO FO S MS CMO FO O MS CMO RO O MS CMO RO O MS CMO RO O MS CMO RO O BD CMO RE O MS CMO RO O MS CMO RO O MS CMO RO O BD CMO RO O MS CMO RO T MS CMO RO T MS CMO RO O MS COO/CIO RO O MS COO RE S MS COO RE O MS COO RE S MS COO RE O MS COO RE O MS COO RE O MS COO RE O MS COO RE S MS CMO/CIO RE S MS CMO/CIO RE O MS CMO RO S MS CMO RE T BD CHRO/COO FO O MS CHRO/COO FO O MS CFO RE O MS CFO RE O MS CFO RE O GA COO RE O MS COO RE T MS COO RE O MS COO RO O OS CMO RO O MS CMO RO O BD CMO RE T MS CHRO/CMO FO O MS CMO/COO RE/RO O MS CMO RE O MS CMO RE O OS CMO RE/RO/FO O MS CMO RE O MS CMO RE O MS CMO RE T MS CMO RE T MS CMO RE O MS CMO RE O MS CMO RE O MS CMO/COO RE/RO O OS CMO FO S MS CMO RE O BD CMO FO O MS CMO FO O MS CMO RE O MS CMO FO O MS CMO FO S BD CMO FL/RE S BD CMO FO O MS CMO FO O MS CMO FO O MS CHRO/CMO FO O MS COO RO S GA COO RE S GA CFO RE S BD COO RO O GA COO/CIO RE O BD COO/CIO RO O GA COO/CCO RO T BD COO RO O GA COO RE S BD COO RO O BD COO RE O GA COO RE O GA COO FO T GA COO RO O GA COO RE S BD CIO RE O GA COO RE/RO O GA CFO/COO FO S GA CFO/COO FO S GA CFO FO S OS CFO RE O OS CFO FO O OS CFO RO O OS CFO RE T OS CFO FO O OS CFO FO O BD CFO FO O OS CFO FO T GA CFO FL/RE O GA CFO FO T GA CFO FO O OS CFO/CPO FO S GA CFO/COO FO O BD CFO FO S GA CFO RO S GA CFO/COO FO S GA COO/CIO FL O GA COO/CIO FO O GA COO/CFO RO S GA COO FO O GA COO FO O GA COO FO T GA CRDO RE O BD COO RO O GA COO FL O GA COO FO O GA COO FL T GA CSO FO S GA COO FL O GA CIO RE O IT CIO RO O IT CIO FL O GA CFO/COO FL O GA CFO/CIO FO O GA CFO/CIO FO S GA CFO/CIO FO/RE S GA CFO FL O GA CFO RE O GA CFO FL S GA CIO FO T IT CFO/CIO FO O IT CFO RO O GA CIO RO S OP CIO FO T IT CIO FO O IT CIO FO O IT CIO FO/RE O IT CFO FO S GA CMO FL/RE O MS CMO RE/RO T BD CFO FO T MS COO/CMO RE T BD COO/CIO FO T BD COO RE/RO S BD CMO FO T GA CMO RO O BD CFO/CRSO FO/RO T BD CFO/COO FO/RE T OP CFO/COO RE O BD CFO/COO RE T BD CFO/COO RE T GA CFO/COO RE O GA CFO/COO RE T BD CFO/COO RO T OP CFO/COO RE O GA CFO/COO RE T BD CFO/COO RO T GA CFO FL T GA CFO RE T OP CFO FO T GA CPO RO O GA CPO FO T OP CIO FO T GA CRSO RO T BD CFO RO S BD CRSO RO T OP CRSO RO O GA COO/CIO RO S BD CIO/COO RO S BD CHRO/CIO RO S BD CFO/CIO RO S BD CFO/CIO RO S GA CFO RO T BD CFO RO T BD CFO RO T BD CFO RO O BD COO FO O BD CPO/CRSO RO S BD CFO/COO RO T BD CFO/COO RO O GA CFO/COO RO O BD CFO/COO RO T BD CFO/COO RE S BD CFO/COO FO T GA CFO RO O GA CFO RO T OP CRSO/CFO RO S BD CIO RO O GA COO RE O HR CHRO RE O HR CFO/CMO FO S BD CFO FO S GA CRSO/COO RO O BD CRSO/CIO RO O BD CRSO RO T BD CRSO RO O BD CRSO RE T BD COO/CFO RE O GA COO FO O GA COO FO T GA COO RO O GA CFO/COO FO O GA CFO/COO FO O GA CFO/COO FO T GA CFO/COO RE O GA CFO/COO FO T GA CFO/COO FO O BD CFO/COO FO T BD CFO/COO RO T GA CFO/COO RE O GA CFO/COO RO T GA CFO/COO FO S GA CFO/COO RO T BD CFO/COO FO S GA CFO RO T BD CFO FO O BD CFO RO T GA CFO RO T GA CFO FL O GA CFO RO O BD CEO RO O BD CCO RO O BD COO RO T BD COO RO O BD CFO/COO/CPO FO O OS CRSO RO O GA CFO/COO RE O HR CFO/COO RE O HR COO RE O HR CRSO RO S BD CRSO RO S BD COO/CIO RO S BD COO RO O BD CFO/COO FO S BD CIO RO O BD CIO RO O BD CIO RO O BD CIO RO O GA COO RE T BD COO FO T GA COO RE T GA COO FO O BD COO RO T BD COO RE T BD COO RE T BD COO RO O BD COO RE T GA COO RE O OS COO RE O BD COO RE O BD CHRO/CPO FO O GA COO RE O BD COO RE T BD COO RE O BD COO RE O BD COO RE T GA CHRO/CRDO FO O GA CPO FO O BD CPO FL O BD CPO FL O BD CPO FL O BD CPO RE O BD CTO RO O GA COO FO S BD CMO FO O BD CRDO RE O BD CPO RE O OS CPO FO O BD COO/CRDO RE O BD COO RE O OS COO FO T OS COO FL O OS COO RE S OS COO FO O OS COO FO O OS COO FO O OS COO RE O OS COO RE O OS COO RE T OS COO RE O OS COO RE T GA COO RE O GA COO FO O MS COO RE O MS COO RE T GA COO RE O OS COO RE O HR COO RE S HR COO RE T BD COO FO O OS COO RE T GA CMO FO O OS CRDO FO O OS COO RE T OS COO FO O OS CPO RE O OS CPO FO O OS CPO FL O OS CPO RE O OS CPO RE O OS COO FO O OS COO FL O GA COO FL O GA COO FO S OS CFO/COO FO S GA COO RO O GA COO RE O OS CRSO RO O GA CRDO RE O OP CPO/CIO RE O OS COO FO O GA CIO RE O MS CIO RE O MS CHRO/CIO RE T GA CHRO/CIO RE O BD CHRO RE O GA CHRO FL O GA CIO/COO RE O GA CFO/CIO RE O GA CFO RO T GA CFO RE/FL O GA CFO RO O GA CFO RE/FL O GA CFO RE O OS CFO RO O BD CFO RO T GA CFO RE O GA CFO RO O OS CFO RE O OS CFO RE/FL O OS CFO RE O OS CFO RE S GA CFO RE O OS CFO RE O GA CFO RE O GA CFO RE O GA CFO RE O GA CFO RE O GA CFO RE O OS CFO FO O GA CFO FO O GA CFO RE O GA CFO FL O OS COO RE O GA COO RE T GA CPO FO O OS CPO RE O GA CPO RE O OS CPO RE O MS CPO FL O GA CPO FO T OS CPO FL O GA COO FL O OS CIO FL O OS CHRO/CPO RE O GA CFO/CIO FL O OS CIO/CTO RO O GA CIO RO O BD CIO FO O GA CIO RE O GA CIO RE O GA CHRO/CIO FO O GA CHRO RE O HR CHRO/CIO RE S HR CHRO/CMO RE O HR CHRO/CMO RE O MS CHRO/CMO FO T MS CHRO/CMO RE T MS COO/CHRO FO O BD CHRO/CPO RE O HR CHRO FO O HR CHRO FO T HR CHRO FO O IT CHRO RE O HR CHRO FO O HR CHRO RE O HR CHRO/CRDO FO T BD CHRO/CRDO RE O HR CHRO/CMO FO T MS CHRO/CPO RE O OS CHRO/CRDO RE O HR CHRO/COO RE O HR CHRO/COO RE O HR CHRO/CMO RE/RO O HR CHRO/CIO RE T HR CHRO/CIO RE O HR CHRO FO S HR CHRO FO T HR CHRO FO O HR CHRO FO O HR CHRO FO O HR CHRO FO T HR CHRO RO O HR CHRO RE O HR CHRO RE O HR CHRO RE O HR CHRO RE O HR CHRO RE O HR CHRO RE O HR CHRO FO T HR CHRO RE O HR CHRO RE O HR CHRO FL O HR CHRO FO O HR CEO/CHRO RO O HR COO FO O BD CFO FO S GA CFO/CMO FO T MS CFO/CMO FO T MS CFO RO T MS CFO FL O MS CFO FL O MS CFO FL O MS CFO RO O MS CFO RE T OS CFO FL O OS CFO RO O OS CFO FL O OS CFO FO/FL O BD CFO FO S GA CFO/CPO FL O MS CFO RE T GA CFO FL T GA CFO FL O OS CFO FL O OS CMO/CIO RE O IT CFO/COO RO T IT CFO/COO RO T IT CFO/CIO RO T IT CFO/COO FO O IT CIO RO O IT CIO RO S IT CIO RO O IT CFO/COO/CIO RO O IT CFO/COO FO O IT CFO/COO RE T IT CFO/COO RO S IT CFO/CIO RO T IT Responsible C-level Executive C-level executives perceive the challenges their company faces differently, yet one thing they have in common: a general need for knowing exactly which IT invest- ments to prioritize in order to realize most possible value. Gain market share while others recover from external shocks Penetrate new markets better and faster through channel partners Enter new segments and markets Improve account management strategies Refocus and/or refine priorities and strategies Improve cross-sell and up-sell campaigns Tailor sales approaches to customer segments Target new segments within current geographies Increase focus on high value/high potential customers Strengthen customer base Increase focus on most effective sales and advertising channels Increase sales by guaranteeing 24/7/365 100% availability Improve identification of cross-sell/up-sell opportunities Improve understanding of sales and production defection drivers Tailor account manage- ment approaches to customer segments Increase sales to existing customers Improve identification of valuable customer relationships Improve understanding of weakest performances Target new geographies Expand sales and advertising channels Improve quality and assignment of sales leads Improve methods and tools to manage sales performance Faster go-to-market with new products and services Tailor products and services to new customer segments CFO RO S GA Increase stock value by adopting sustainability strategy Align advertising with pricing strategies Convert free services to fee-based services Charge higher prices dynamically Improve focus on price-insensitive customer segments Improve tailoring of offerings to customer needs Improve data on customer price sensitivity Receive premium for 24/7/365 100% availability Align product and service prices with value to customers Coordinate pricing of complementary products and services Improve execution of market- and supply driven promotions Improve structuring and pricing of promotions Improve understanding of product/service value to customers Increase emphasis on differentiated products and services Increase focus on pricing effectiveness/price optimization Increase use of differential pricing mechanisms COO RB O OS Reduce cost of correlated energy/water management Consolidate or outsource procurement functions Refine vendor strategies Consolidate or outsource IT design and develop- ment functions Consolidate or outsource IT design, development and deployment services Consolidate or outsource end-user-support Consolidate or outsource operations and maintenance services Consolidate or outsource benefits administration functions Consolidate or outsource learning and development functions Consolidate or outsource recruitment functions Improve alignment of business unit and enterprise strategies Improve alignment of organization structures with business strategies Consolidate or outsource payroll functions Consolidate or outsource property management functions Improve alignment of financial and corporate strategies Outsource property tax administration activities Bypass current channels/ sell directly to customers Improve focus on segments with lower average cost-to-serve CFO FO T GA Reduce travel expenses CSO FO S GA Increase focus on business insight and and forward- looking information COO FO T GA Increase transparency of energy management of buildings, manufacturing, datacenter and logistics CFO RO O GA Reduce cost on energy management of buildings, manufacturing, datacenter and logistics Rationalize targeted markets and customer segments Rationalize customer portfolio Rationalize targeted customer segments Select and enter profitable and exit non-profitable markets Consolidate order fulfillment functions Increase focus on business insight and forward-looking information Minimize recovery costs through “self-healing” capabilities Improve focus on higher-value advertising channels/media Increase use of lower-cost sales channels Minimize recovery costs Better alignment of business planning, management and reporting functions Minimize costs related to external shocks Consolidate company real estate/facilities Improve alignment of capital budgets and program plans with business priorities Increase use of lower-cost billing channels Increase use of lower- cost real estate and facilities/Relocate business operations Reduce fixed cost by paying for usage, not for availability Strengthen enterprise- wide financial reporting standards Design product for ease-of-use/self-service Improve emphasis on design for packing/ shipping efficiency Standardize product catalogs Consolidate service and support operations Consolidate or outsource product development functions Refine vendor/supplier strategies Refine/align logistics and distribution strategies Refine and/or align material strategies Consolidate/outsource logistics and distribution functions Consolidate or outsource production functions Consolidate or outsource service and support operations Improve focus on higher-value customer segments Increase emphasis on designing and packaging for distribution Increase emphasis on designing for material efficiency Increase emphasis on modular, extensible, scalable designs Reduce peaks in operating costs Increase focus on materials-efficient production mechanisms Reduce operational costs through efficient resource allocation Increase emphasis on designing for service efficiency and self-service Rationalize and/or realign product development efforts Design products to use cost-effective materials Improve focus on higher-value products COO FL T GA COO FL S GA COO RO T GA COO FL S GA Consolidate or outsource property management functions Improve alignment of financial strategies with corporate strategies Improve balance between buy and lease Reduce asset ownership Increase emphasis on service prevention and reduced need for service Increase use of cheaper service channels Rationalize and/or refocus product and service portfolios Improve purchasing on a national/global basis Rationalize/consolidate vendor portfolio Acquire companies in target geographies Acquire companies with relationships in targeted customer segments Accelerate or defer income/expenses Consider tax implications in the location/selection of facilities Develop and utilize unique tax expertise Ensure adequate documentation of significant tax positions Ensure full utilization of tax carry forwards Improve accuracy and timeliness of tax provision and cash outflow forecasts Improve management of transfer pricing Optimize accounting methods and selection of accounting periods Optimize depreciation methods/lives for pro- perty, plant and equipment Optimize expense vs. capitalization of costs Optimize valuation and costing methods for inventories Exploit investment management make and buy options Improve ability to develop and spin-off new businesses Decrease ownership of non-differentiating assets Defer/change timing of capital investments Leverage existing invest- ments better Optimized asset related costs Reduce number of data centers, branch offices, dealerships, retail outlets, etc. Minimize unprofitable investments Divest low-utilization equipment License or sell intellectual capital to other enterprises Improve effectiveness of plant maintenance Improve design for manufacturability and service Improve preventive equipment maintenance Increase use of leased production equipment Increase utilization of production equipment Rationalize production facilities Streamline business model with focus on core business components Minimize unprofitable, fixed contracts Better integration of legacy and new solutions Optimize harmonization and consolidation Optimize infrastructure costs Optimize utilization of facilities Divest low-utilization infrastructure Increase use of leased infrastructure Reduce total cost of travel management Better exploitation of variable cost reduction opportunities Improve balance and cash flow management between buy and lease Reduce asset ownership Improve terms on IT systems Improve terms on infrastructure Improve terms on property and facilities Consolidate IT systems, production lines and service mechanisms Divest low-utilization IT systems Improve maintenance of IT systems Increase utilization of IT systems Utilize more efficient IT systems Establish development of strategic assets as a key competency Better alignment of financial accounting and analysis functions Withdraw non-profitable products Improve emphasis on product quality and ease of service Rationalize and/or refocus service portfolios Retarget products and services and manage pricing Consolidate billing operations Manage procurement for MRO on a national/ global basis Rationalize/consolidate MRO vendor portfolio Consolidate IT, telephone and network equipment and facilities Implement integrated applications across organizational boundaries Rationalize IT application portfolio Improve HR practices Improve focus on employee retention COO FO O GA Improve cost savings by reducing waste, energy and water usage CFO FO O GA Improve sustainability management reporting and balance sheet Increase use of lower-cost logistics and distribution channels CIO FO S IT CFO FO S GA CFO RE S GA CFO FO O GA COO FO O OS Leverage IT investments better Improve management of credit/loan portfolio Improve cash flow Improve management of credit risk and payments across business units CIO FL O IT Optimize IT infrastructure cost CIO FO O IT CFO FO/RE S GA CFO FO/RE T GA CFO RO S GA Divest low-utilization of IT infrastructure Reduce total cost of facility management COO RE T GA CSO FL S BD Improve project performance Adressing global issues ie. climate change with sustainability management CSO FL S BD Improve eco-efficiency initiatives to increase cost savings CSO FO S BD CFO FO S BD Improve sustainability stra- tegy based on economic profitability, environment and social responsibilities Adopt social and ethical responsibilities in corporate strategy Reduce total cost of project management Maximize shareholder and corporate value by sound economic sustainability activities Reduce cost adoptions sustainability management in day-to-day business operations CFO FL T GA Strengthen enterprise- wide financial reporting standards Increase use of lower-cost production channels Improve tax benefits of compensation and benefit programs Improve platform and portfolio strategies for products and services Improve competitive research Improve quality of consumer analysis Better patent processes Improve design and development approaches Improve methods and tools for managing innovation performance Pursue joint-venture, partnership and OEM arrangements Improve integration of research & development Better settings for innovation to flourish Improve management of product lifecycles Increase emphasis on design for configurability/ customization Increase focus on R&D, product innovation, and product leadership Increase utilization of modular, reusable designs Broadened product and service offerings More attractive products and services Reduce research & development time through collaboration Improved market intelligence Optimal collaboration across the value chain Improve design and development processes Improve ordering and receipt processes Improve product develop- ment performance mana- gement, methods & tools Improve profitability of R&D efforts through utilization of economic development incentives Improve product prototyping, piloting and testing processes Improve project management Improve utilization of product development channels Increase number and quality of product and service launches License or acquire products and intellectual property Improve balance between core and none core activities Improve flexibility across the value chain to match new demands Improve responsiveness to customer requests and inquiries Improve risk protection and management Build flexible business architecture and infrastructure Increase use of flexible production facilities Improve responsiveness across the value chain Build flexible and scalable business infrastructures Optimize working capital by applying flexibility in internal activities Better balance between standard and customized applications Utilize more flexible/ expandable IT systems Flexible IT architecture and infrastructure Increase use of flexible and expandable infra- structure Consolidate/realign sales territories Route low-value trans- actions to lower-cost sales channels Improve account manage- ment methods and tools Improve channel manage- ment, processes and tools Improve cross-sell and up-sell approaches/ models Improve effectiveness of cross-sell and up-sell approaches/models Improve field sales and telesales processes Improve processes for rating, qualifying and assigning leads Improve relationship/ account development processes Improve terms with advertising channels Improve terms with sales channels Improve transparency of customer, product and channel profitability Provide staff with better customer information Provide staff with better market information Improve order manage- ment methods and tools Improve capacity/demand planning processes, skills and tools Improve due-date reliability Improve forecasting, planning and prioritization skill and tools Improve pick, pack and ship processes Improve policies and pro- cesses around material returns Improve provisioning/ installation processes Improve routing of service requests to appropriate staff Improve workforce planning and dispatch processes and tools Improve sales perfor- mance management methods and tools Provide staff with better customer and order information Improve campaign design and management pro- cesses and tools Improve sales forecasting and campaign execution processes and tools Improve incentives around order management efficiency Improve incentives around service efficiency and effectiveness Improve credit analysis processes Improve invoicing/billing processes Improve services and delivery Develop stronger customer relationships Establish customer communities Improve customer service Improve responsiveness to customer complaints/ feedback Improve tracking of customer interactions Improve understanding of current customer satisfaction Improve understanding of customer needs Increase emphasis on account/relationship development Solicit and respond to customer feedback Improve effectiveness of sales processes Improve quality of products and services Improve marketing strategy Tailor marketing ap- proaches to customer segments Develop and cultivate good will Develop and leverage strong brand Improve effectiveness of marketing and advertising processes Improve brand aware- ness/elevate brand image Improve marketing and advertising performance management methods and tools Rationalize and/or refocus channel/media usage Improve brand strength and good will Optimize marketing channels Apply brand to new and unbranded products Improve staff incentives around marketing efficiency Improve relationship management strategies for key stakeholder groups Increase proactive pursuit of partnerships, mergers and acquisitions Increase focus on partnership, merger and acquisition opportunities Partner with best-in-class partners on non-differen- tiating elements Improve quality and speed of communication with partners Improve communication with stakeholder groups Improve quality of infor- mation provided to stakeholders Develop and leverage strong/unique partner relationships Improve ability to identify and assess partnering opportunities Improve ability to turn strong relationships into competitive advantage Improve identification of stakeholder groups and establishment of priorities Improve integration of business processes across partner networks Improve understanding of partner strengths, weaknesses and interests Improve value delivered to employees, partners, and other stakeholders Increase emphasis on operational integration with partners Improve ability to integrate merged and acquired organizations Improve integration of IT systems across partner networks Better match of trends and buying patterns Improve tracking and recovery of indirect taxes Improve customer service and support processes Improve service and support performance management methods and tools Improve utilization of customer service staff Shorten order-to-delivery cycle time/Improve product and service availability Improve definition of product and service specifications Improve product and service withdrawal and retirement processes Provide staff with better product, service and competitive information Improve staff incentives around sales efficiency Reduce business risk by aligning with changing market needs Reliable customer intelligence Improve identification and prediction of industry and market trends Secure use of information that is accurate and real-time Provide greater predict- ability in performance Improve access to infor- mation and analytical tools Improve analytical processes and tools Improve identification of opportunities and threats Improve cost transparency Improve access to and distribution of perfor- mance information Improve analysis of managerial information Improve assessment and benchmarking of business process performance Improve breadth, depth, quality and timeliness of business information Improve determination of key performance metrics and targets Improve measurement and reporting of opera- tional and financial performance Improve tracking and communication of program/project progress Increase emphasis on continuous, proactive performance management Increase focus on key performance metrics Drive greater financial predictability CRSO RO O BD CRSO RO O BD COO RE T BD COO RE S GA COO RE T OP Improve alignment of projects with program and business objectives Continuously track and manage the realization of project benefits Improve coordination and communication across programs and projects Structure programs and projects to deliver benefits progressively Cost reduction with waste management Improve benchmarking of global effective tax rate against industry peer group Improve identification assessment and execu- tion of M&A/divesture opportunities Improve quality and con- sistency of performance assessment methods Improve use of balanced scorecard Optimize investment in accurate analytics and decision support tools CSO RE T GA Provide greater predict- ability with accurate envir- onment health and safety business process flows Identify organization's limits and weaknesses Improve anticipation and understanding of current and potential regulation/ legislation Improve monitoring and management of risk and compliance Improve physical security of people Optimize compliance with environmental standards Optimize compliance with industry standards Optimize compliance with health standards Improve data and privacy protection compliance Optimize compliance with accounting standards Ensure tax planning activities and tax filings comply with regulatory environment Improve focus on internal controls and regulatory compliance Improve monitoring and management of regulatory compliance Improve understanding of regulatory requirements Minimize risk by increasing expertise in selected activities and markets Increase emphasis on risk-informed, scenario- based planning Improve/implement internal control frame- works and policies Improve accountability/ authority of program and project resources Improve effectiveness of governance models Improve effectiveness of program/project governance models Improve integration of short- and long-term business planning Improve structuring and launch of cohesive program portfolios Clarify governance roles and responsibilities Improve assignment of accountability and authority Improve incorporation of risk analysis in business planning Increase use of Service Oriented Architecture Improve effectiveness of organizational structures Build values and ethics into corporate culture Improve alignment of customer, product, sales, service, support, and fulfillment strategies Improve alignment of budgets and capital programs with strategic priorities Effective and efficient risk management procedures Improve protection of sensitive data and intellectual property Improve company-wide monitoring and manage- ment of risks Improve identification and assessment of risk Increase emphasis on risk identification and management Improve post-merger synergy and cost reduction programs Strengthen cross-business- unit and cross-company collaboration Increase emphasis on quality management and benchmarking Reduce operational risk Continuously track and manage the realization of project benefits Dynamically cancel or redirect ineffective/ obsolete programs and projects Improve alignment of projects with program and business objectives Improve coordination and communication across programs and projects Improve coordination of investment, financial and tax strategies across business units Improve development and analysis of business cases Improve focus of company resources on high-priority initiatives Improve identification and management of program/project risks COO RE T OS CRDO/COO RO O OS Anticipate future energy and water management cost Improve corporate social responsibilities and ethical value management Improve program/project management methods and tools Improve risk planning, mitigation and control approaches Increase emphasis on enterprise-wide program planning and delivery Strengthen corporate governance structures Structure programs/ projects to deliver benefits progressively Align internal audit practices with business and risk objectives Improve effectiveness of legislative/lobbying efforts Improve monitoring and protection of assets, people, infrastructure, etc. Increase accountability of business unit leader for tax impact of decisions Lower debt burden Strengthen and commu- nicate governance policies and procedures Strengthen and commu- nicate mission, vision, values and ethics Improve communication between the board, mana- gement, shareholders and the public COO RE O OP Reduce cost with predict- able greenhouse gas emissions to comply with regulation cap COO RO T GA Improve environmental disaster and recovery prevention plan Improve quality assurance programs Optimize risk management across products and services Improve management of vendors/service providers Improve security of applications, systems and data Improve communication around improvement priorities Improve management of organizational change in support of initiatives Improve communication of strategic directions and priorities Effective business continuity roadmaps More effective damage handling roadmaps Establish recovery and maintenance plan Redundancy in key parts of the operational model to ensure continuity Improve business continuity planning Effective and efficient back-up systems Efficient fall-back systems Efficient recovery solutions Improve performance and reliability of IT systems/platforms Improve capacity planning processes, skills and tools Improve coordination with business partners Improve demand fore- casting processes, skills and tools Improve incentives around production efficiency Improve manufacturing and quality control processes Improve production per- formance management methods and tools Improve production scheduling and staging processes Improve utilization of production channels/ reduce downtime Provide staff with better production information and tools Rationalize order quantities and timing Rationalize production quantities and timing Shorten production cycles Improve incentives around procurement efficiency Improve materials efficiency of production processes Improve materials per- formance management methods and tools Improve product and service introduction/ launch processes Improve product concep- tion initiation processes Provide staff with better product information and tools Improve incentives around product development efficiency Improve collaboration with vendors Improve terms on equipment purchases Improve terms on materials purchases Improve terms with pro- duction service providers Reduce procurement cycle times COO FL O GA Identify hidden cost on process level to reduce waste, production material and energy/water usage Better technology exploitation COO RO O BD COO/CRDO RO O BD CRDO/COO RO O OS CRDO/COO RO O BD End-to-end product trace- ability, impact analysis, response Decrease carbon footprint in product and service life cycle Improve product compliance analysis and reporting CRDO/COO FL T OS CSO FO S OS Improve environmental- friendly products and services Define business model for sustainability that incorpo- rates economics, environ- ment and social aspect CCO/COO FO S OS Improve sustainability partnership in product life cycle and services COO RO O BD Improve environmental footprint calculation ie. carbon and water footprint Improve product safety with sustainability management Develop low-inventory business models Differentiate treatment of customers/segments Increase emphasis on designing for efficient materials management Rationalize material order quantities and timing Rationalize raw materials Increase emphasis on designing for operation efficiency Align operation and ma- terial ordering schedules with distribution schedules Better inventory control Divest low-demand/ obsolete inventory Improve capacity/demand planning, processes, skills and tools Improve design/structure of distribution networks Improve incentives around inventory/distribution efficiency Improve incentives around material efficiency Improve inventory receipt and storage processes Improve logistics/ distribution efficiency Improve logistics per- formance management methods and tools Improve material ordering and receipt processes Improve material per- formance management methods and tools Improve retrieval processes Improve routing of service requests to appropriate service channels Improve service and support processes Improve service perfor- mance management methods and tools Improve transport and delivery processes/ algorithms Improve utilization of logistics service staff Improve workforce planning dispatch and assignment of processes and tools Increase emphasis on build-to-order Increase utilization of standardized components Provide staff with better product, service and contract information Route low-value trans- actions to lower-cost service channels Increase emphasis on use of common components Increase emphasis on high-turnaround products Rationalize and/or refocus material portfolio Improve coordination with vendors Improve focus on higher- value vendor relationships Improve terms on material Improve use of national/ global purchasing power Increase use of just-in- time procurement Improve collaboration with vendors/partners Improve terms on leased service assets Improve terms with logistics service providers Increase use of vendor- managed/vendor- warehoused inventory CHRO/CFO RE S HR CFO RO O GA CFO RE S GA Improve budgetting and forecasting capabilities Communicate HR strategies Improve breadth, depth and quality of financial information Improve strategic planning processes Improve selection, acqui- sition and contracting processes Improve faster and smarter decision making process Improve operational risk management processes Improve design, development and testing processes Improve procurement performance management methods and tools Maintain strict control of differentiated components Improve end-user application support Improve establishment of and adherence to service-level targets Improve HR performance management methods and tools Provide staff with better HR information and tools Improve performance assessment processes Utilize available govern- ment and local employ- ment/training incentives Improve program management processes Provide staff with better managerial information and tools Improve accounting and measurement processes Improve asset manage- ment processes Improve audit and com- pliance management processes Improve breadth, depth and quality of financial information Improve budgeting and forecasting capabilities Improve business case development and analysis processes Improve business performance reporting processes Improve capital budgeting processes Improve compliance management processes Improve debt and equity management processes Improve financial reporting efficiency Improve financial risk management processes Improve incentives around business planning efficiency Improve management of indirect taxes Improve payroll processes Improve real estate design and development processes Improve real estate im- provement and deploy- ment processes Improve real estate per- formance management, methods and tools Improve real estate selection, acquisition and contracting processes Improve tax management processes Improve utilization of telecom tax incentives Increase utilization of real estate Manage payroll tax impacts of business initiatives COO RO O OS CIO RO O OS Integrate management of economics, society and environment in daily operations CHRO RO T HR Improve employee owner- ship to harness ideas to improve cost savings through sustainability Improve green IT cost reduction initiative Optimize utilization of available sales/use tax exemptions Improve installation/ deployment processes Provide staff with better product and service information Improve collaboration with vendors CMO/COO FO T OS Improve workplace environment and corporate services with sustainability Improve contract mana- gement processes Improve product procure- ment processes Improve service procure- ment processes Improve terms on equip- ment and supplies Increase focus on higher-value vendor and partnerships Utilize national/global purchasing power Improve terms with third-party product and service providers Improve terms with cor- porate service providers Improve incentives around MRO procurement efficiency Improve terms on pur- chased and leased assets Improve technology and data risk management processes Avoid expensive recovery investments Consolidate device management information and tools Improve/consolidate IT performance management methods and tools Increase utilization of IT, telecom and network resources Improve incentives around IT/network efficiency Improve salary and benefits administration processes Improve alignment of HR and technology strategies with business strategies Improve account mana- gement skills of staff Improve cross-selling/ up-selling skills of staff Improve incentives for account/relationship development Improve staff incentives for cross-selling/up-selling Establish process impro- vement and innovation as key competencies Improve vendor manage- ment skills of staff Develop and maintain better competencies Improve incentives around asset development Improve knowledge sharing Improve mechanisms for collecting and implement- ing employee ideas Improve monetary and non-monetary recognition of staff contributions Improve training processes Improve incentives for product development and innovation Improve product- and service-innovation skills of staff Build product margins/ profitability into sales Improve contracting and negotiation skills of pro- curement/purchasing staff Improve skills of product development staff Improve skills of order management and billing staff Improve skills of produc- tion staff Improve skills of sales and marketing staff Implement/improve company-wide processes and tools for assessing staff performance CHRO FL S HR CHRO FL T HR CHRO FO T HR CHRO RO T HR CHRO RO S HR Identify strategic HR needs Engage employees in sustainability strategy and execution Manage employee performance Improve employee resourcing requirements per unit/organization Engage employees in sustainability strategy and execution CFO/CHRO FO/RO S HR CHRO FO/RO T HR Determine HR costs Improve employee benefits Improve technical and project management skills of staff Align compensation and incentive systems with strategies, values and ethics Align management and staff incentives with company performance Improve ability to attract talent Improve resource and skills performance management Build innovation and improvement into rewards and incentives Improve employee per- formance and satisfaction evaluation Improve executive deve- lopment, recruiting and succession planning Improve partnership and collaboration skills of staff Improve program/project management skills of staff Improve recruitment and orientation processes Improve skills of HR staff Improve skills of inventory and distribution staff Improve skills of service staff Improve staff incentives around service efficiency Improve talent manage- ment models and pro- grams Increase emphasis on people/talent development Increase use of distance/ on-line learning Manage employee churn Improve leadership and management skills of executives Develop, spin-off and sell new business Refine credit/days- receivable strategy Increase focus on costumer segments with loss credit/loan needs Increase focus on credit- worthy customer segments Differentiate credit treat- ment of customers/ segments Improve and standardize credit assessment processes Improve collections processes Improve management of credit/loan portfolio Tighten credit/loan terms Optimize management of A/R and A/P across business units Improve cash flow Improve management of credit risk across business units Leverage credit rating to lengthen payment cycles and reduce interests rates Reduce capital require- ments through partnering Reduce level of working capital Increase focus on vendors with favorable payment terms Improve assessment and benchmarking of A/P performances Improve coordination of payments across business units Improve management of debt portfolio Leverage breadth of vendor relationships to lengthen payment cycles Collaborate with customers on data synchronization Improve data control processes and tools Improve data harmoniza- tion processes and tools Better data and privacy protection compliance Collaborate with supplier on data synchronization Better master data harmonization Consolidate and/or re- architect data stores Optimize master data consolidation Build master data with fully controlled redundancy Improve data quality Optimize use of real-time data Strengthen data harmo- nization and consolidation Improve data transparency COO FL T GA Outsource property tax administration activities CSO FO T GA CMO FL S MS CMO FL S MS Improve competitive differentiation with “green” and low-carbon products Increase environmental- friendly products & services that replace demand for non- green products & services Enhance eco-efficiency, social responsibility and well-balance sustainability growth plan CCO FL T BD Improve supplier transparency on product- related emission CCO FO S BD Improve competitiveness through sustainability win-win partnership CMO FO T BD COO RO O GA COO FL S GA Improve sales and service performance management methods and tools Adopt sustainability business model CMO RE T MS CMO/COO RE T MS CMO FL T MS CMO FL T MS Benchmark sustainability management Improve customer satisfaction with environmental-friendly products and services Raise internal/external consciousness of sustainability management Improve recycling and reclamation CMO/CHRO FO S MS CMO FO T MS CMO FO T MS CMO FO T MS Improve communication of sustainability vision, strategy, programs and activities Improve transparency on product-related emission Increase brand value with sustainability messaging Improve engagement in social community sustainability COO/CRSO RO O OS CSO/CFO RE T OP COO FO T OS COO FO T OS Comply with local green- house gas emission cap and trade systems Comply with environment industry norm and standards Adopt practical recommen- dations from the climate change convention Embed sustainability compliance controls throughout the value chain CFO/CHRO FO/RO T IT CBDO FO/RO S IT CIO FO/RO S IT CIO RE/RO S IT CIO RE/RO S IT CFO FL O GA CFO FL O IT Improve HR measures on systems Build strategic intelligence Improve standards, guidelines and principles Improve IT architecture and align with enterprise architecture Improve IT governance standards and processes and align with process governance and business Continuous improvement of sustainability manage- ment ie. measuring Improve diagnose and evaluation process of sustainability management Capture new customer segments with sustain- ability products & services CMO FO S MS © Value Team ApS www.valueteam.biz About the Authors Color Codes for Processes Express Value Creation Business Value Tree Abbreviations used in the Code Bar Business value – the driving force? Business value planning, identification, creation and realization, is probably one of the most common dilemmas and challenges confronted by companies today, regardless of factors such as size, revenue, indus- try, region or business model. The Business Value tree is a powerful tool designed to accelerate the connection not only between Business Model and ones Business Processes, but between the needed link of Service Orientation, Enterprise Architecture, Value Management and Performance Management. Working with Value drivers is not rocket science and it is not difficult, but rather some- thing that can jump starts the process of focusing on the things that matter most, and then choosing practical ways to get them done. The Express value creation approach we follow to plan, create and realize value is described below: CEO = Executive CFO = Financial COO = Operation CMO = Marketing/Sales CIO = Information CTO = Technology CSO = Strategy CCO = Channel CPO = Procurement CHRO = Human Resources CRSO = Risk & Security CRDO = Research & Development CBDO = Business Development Business Model Competencies Business Competencies, defined as business areas with characteristic resources and capabilities. GA = General Administration HR = Human Resource IT = Information Technology BD = Business Development OS = Operations Support OP = Operations DI = Distribution MS = Marketing, Sales & Service Business Model Level Operational level characterizes the scope of decision making. S = Strategic (about strategic decisions, overall direction and policy) T = Tactical (about monitoring, control, managing exceptions and tactical decisions) O = Operational (about doing the work) Business Model Imperatives A business accelerates value by connecting and service enabling business competencies with suppli- ers, partners and customers to focus and respond rapidly in a focused, flexible and robust manner to any opportunity or threat. FO = Focused RE = Responsive FL = Flexible RO = Robust Author: Prof. Dr. Mark von Rosing As the Managing Director for Value Team ApS, specialized in strategic management and market analysis, Prof. Mark von Rosing has been serving the top 5 consulting companies and many of the fortune 500 companies over the years. He is in every way an entrepreneur with a proven track record for delivering results. Worth mentioning is: He just received IBM’s prestigious “Growth Award 2009” for contributing as the strongest growth enabler across EMEA The Co-developer of SAPs global Business Process Management Framework and approach Designer and co-developer of the new SAP BPX certification program for associate and professional Main author of SAP Press New Business Performance Management book on Applying real-world BPM in an SAP environment Author of numerable publications in the area of Business Model Management, Business Process Management, Value Management & Sustainability Head and founder of the Global University Alliance BPM and Enterprise Architecture curriculum program (consist of 900 Universities) Member and co-developer of the Global TOGAF Business Architecture development Group Founder of the Global BPM Roundtable/User Group, which consists of over 200 companies Mark is a Professor in Business Model Management, Business Process Management and Value Management at the Copenhagen Business School and IT University, Denmark, lecturing on both Bachelor and Masters level. He has coached and helped numerable companies create and realize value. His developed approaches within Business Modelling, Process Management and Business Value Management, has helped hundreds of companies over the world. Contact information: E-mail: [email protected] or Phone: +45 28 88 89 01 Strategic Processes Customer Processes Internal Processes Product & Service Processes Supplier Processes Technology Processes Organizational Processes Sustainability Processes Express Value Creation is a consultant-led approach aimed to help prioritize and align IT investments – to realize values that matter the most in reaching strategic business objectives – both short and long term. This concept has proven to be an important differentiator when planning, identifying, creating and realizing the wanted value. With a holistic view – taking all major business and technology perspectives into consideration – Express Value Creation provides rapid execution and return on investment, enabled by a focused approach, a streamlined roadmap, and power- ful tools. This will not only build a powerful tool for value planning, identifica- tion, creation and realization in developing the ability to analyze, define, standardise, optimize or innovate ones competencies, but also the underlying processes and activities. Through this approach the company’s competencies become stronger and more difficult for competitors to understand and replicate. A successful value creation approach requires more than just a proven methodol- ogy. A number of elements needs to be considered, concentrating on the four pillars: 1. Strategic alignment - The approach should be adapted and streamlined for the company to ensure value creation in the strategic planning workshop sessions, where a business model is built with all the different competencies (resources and capabilities) which produce internal and external values are mapped with the company’s management models, Corporate Strategic Business Objectives (SBO’s), Critical Success Factors (CSF’s), and the different value opportunities. 2. Organizational alignment - Once core competencies (Differentiated and Competitive) are defined the service enablement that needs to support the differentiated and competitive competencies is identified, and Performance as well as Monitoring needs are outlined. 3. Technology alignment - The efficient execution of processes in todays corporate world is largely dependent on IT systems supporting an administration, production and operating model. Additionally, an effective and efficient approach should use an optimal mix of technology to support each phase. 4. Processes alignment - Define process activities with static and dynamic simulation and optimization (define KPI’s and PPI’s) and apply your IT’s composite application process characteristics (including service definition) as well as define monitoring and measurements. The mentioned alignment always relies on effective and efficient integration of organization, technology and processes, but many organizations do not have a clear link between the four key pillars. An organization’s strategy may be gaining a competitive advantage, innovation, growth, acquisitions, differentiation, increasing profitability, or gaining market share, meanwhile all of these strate- gies require suitable business competencies that are embedded in adequate orga- nizational structures and aligned with the processes and supported by people and technology. In this unique approach you will not have to start from scratch. We provide models and frameworks – you just have to adjust them to your needs. This is attractive for you - the participating executive – because it: rapidly leads to new Business Model insight and results is easy to work with stimulates innovation has the potential to expand your mindset of how business and IT strategy tasks can be performed Express Value Creation is designed to address key decision makers like CEO’s, CFO’s, COO’s, CIO’s, CMO’s and CHRO’s. For each role the angle varies and so does the view upon the challenges the company faces. However, there is a strong need by all C-level executives to better understand what IT investments to prioritize in order to realize the most value to their business. A major trend is to shift funding from non-strategic competencies to strategic competencies in order to drive value realization and growth. Contributor: Ann Rosenberg As a Global Business Process Management Lead at SAP, Ann Rosenberg is responsible for the Busi- ness Process Management, Business Architecture, Enterprise Architecture, SAP implementation and Value Management methodology/governance frameworks which are offered and used in the SAP community globally. She has designed the SAP BPX certification program for associates and professionals which is being taught globally to the SAP Community, and she is the head and founder of the SAP Global University Alliance BPM and Enterprise Architecture curriculum which are being rolled out to 900 universities globally. Ann Rosenberg is Vice Chairman of the Open Group Business Architect Group and external lecturer in Business Process Management at the IT University of Copenhagen, and lecturing assistant at Copenhagen Business School. Ann Rosenberg has published the book “Business Process Management – The SAP Roadmap” and will in July 2010 publish the book “Real World BPM in an SAP Environment”. Author: Henrik von Scheel With more than 15 years experience in leading the transformation of the businesses, strategies, processes and technologies of numerous Fortune 500 companies and recognised for his proven track record of profitable growth and ability to adopt to constant changing environment by devel- oping, implementing strategies and organizational changes needed to penetrate mature and emerg- ing markets. Henrik is co-author of SAP Press New Business Performance Management book: Applying real- world BPM in an SAP environment as well as the book: Strategies of the future. He is a guest lecturer at the Copenhagen Business School on Performance and Value Management. Henrik is currently the Vice President of IBM Software Group for NorthEast Europe and serves as Board of Director at Qosmos SA, Collax GmbH, SIRIUS advisor and WebiCoNet Holding GmbH. Contact information: E-mail: [email protected] or Phone: +45 28 80 92 81 Business Value Responsive Organization Robust Technology Focused Strategy Flexible Process Business Governance IT Governance Business Architecture Business Performance Value Realization Value Creation Value Planning Create Governance Model Create Transformation Roadmap Create Performance Metrics Identify & Prioritize Value Drivers Identify Business Issues / Pain Points Understand ‘To-Be’ Competencies Analyze ‘As-Is’ Competencies Create Operational Business Model Create Strategic Business Model Identify Value Opportunities Assess: 1. Core Competitive 2. Core Differentiated 3. Non Core Understand Business Model Analyze Strategy Business Model Performance GET Business Model Value DO Business Model SEE 13 12 11 10 9 8 7 6 5 4 3 2 1 Product Maintenance Content Product Deployment Intellectual Property Production Setup Research Product Design R&D Planning Packaging Refining Product Assembly Inbound Inventory Product Manufacture Operations Procurement Component Manufacture Operations Planning Costing Finished Goods Inventory Distribution Import & Export Transportation Order Fulfillment Scheduling Distribution Planning Servicing Customer Acquisition Customer Account Brand Management Channels Market Analysis Selling Segmentation Planning Travel Management Accounting Facility Management Finance Project Management Information Analysis Legal & Regulatory Affairs Strategic Planning Payroll Education Compensation Performance Evaluation Benefits Administration Recruitment Organizational Planning Support & Relationship Development Service Delivery Information Management Risk and Compliance IT Business Management Deployment IT Planning Data Management Equipment & Plant Safety & Security Sourcing & Procurement Environment & Health Quality Assets Operations Support Planning Operations Support Information Technology Human Resource Management General Administration Business Administration Marketing, Sales and Service Distribution Operations Business Development Business Operations SUPPORT ACTIVITIES PRIMARY ACTIVITIES New Processes Business Value Business Governance IT Governance Business Architecture Business Performance Focused Strategy Organisation Responsive Technology Robust Process Flexible

Poster No 1: Enterprise Business Value Tree

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A ground-breaking paradigm shift in Value Realization! With the Enterprise Business Value assessment you can show the “precise” value in €, £ or $ that IT has created over the past 12 months and “predict” exactly how much future value you could create for your business by improving the way you do certain things. Please fee free to contact either of the authors Mark von Rosing or Henrik von Scheel

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Page 1: Poster No 1: Enterprise Business Value Tree

Business Value TreeA Value Framework to identify, plan, create and realize value

ImproveCompetitiveness

IncreaseShareholder Value Lower Risk

Increase OperationalEf�ciency

Increase RevenueThrough Volume

Optimization

Increase RevenueThrough PriceOptimization

Reduce Sales& Administration

Costs

OptimizeRegulation

Compliance

ImproveBusinessRecovery

ImproveCapital

Management

ImproveHuman CapitalManagement

ImproveDevelopment& Production

ImproveCorporateServices

ImproveLogistics, Material

& Services

OptimizeIntelligence

ImproveRisk Planning

ImproveRisk Management Improve Data

Management

ImproveCustomerInteraction

Improve CustomerSatisfaction &

Loyalty

Improve Partner& RelationshipCollaboration

FasterTime-to-Market

ImproveResponsiveness

ImproveBrand Awareness

StrengthenInnovation

ReduceIncome Taxes

Reduce Costof Goods Sold

CapitalOptimization

CriticalSuccessFactors

KeyPerformanceIndicators

Strategical

KeyPerformanceIndicators

Tactical

KeyPerformanceIndicators

Operational

StrategicBusinessObjectives

CMO RO O BD

CCO FL S MS

CMO FO/RE S BD

CMO FO S MS

CMO RE S MS

CMO FO O MS

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CHRO RE T MS

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CSO RE O BD

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COO RE O OS

CRSO RO O GA

CRDO RE O OP

CPO/CIO RE O OS

COO FO O GA

CIO RE O MS

CIO RE O MS

CHRO/CIO RE T GA

CHRO/CIO RE O BD

CHRO RE O GA

CHRO FL O GA

CIO/COO RE O GA

CFO/CIO RE O GA

CFO RO T GA

CFO RE/FL O GA

CFO RO O GA

CFO RE/FL O GA

CFO RE O OS

CFO RO O BD

CFO RO T GA

CFO RE O GA

CFO RO O OS

CFO RE O OS

CFO RE/FL O OS

CFO RE O OS

CFO RE S GA

CFO RE O OS

CFO RE O GA

CFO RE O GA

CFO RE O GA

CFO RE O GA

CFO RE O GA

CFO RE O OS

CFO FO O GA

CFO FO O GA

CFO RE O GA

CFO FL O OS

COO RE O GA

COO RE T GA

CPO FO O OS

CPO RE O GA

CPO RE O OS

CPO RE O MS

CPO FL O GA

CPO FO T OS

CPO FL O GA

COO FL O OS

CIO FL O OS

CHRO/CPO RE O GA

CFO/CIO FL O OS

CIO/CTO RO O GA

CIO RO O BD

CIO FO O GA

CIO RE O GA

CIO RE O GA

CHRO/CIO FO O GA

CHRO RE O HR

CHRO/CIO RE S HR

CHRO/CMO RE O HR

CHRO/CMO RE O MS

CHRO/CMO FO T MS

CHRO/CMO RE T MS

COO/CHRO FO O BD

CHRO/CPO RE O HR

CHRO FO O HR

CHRO FO T HR

CHRO FO O IT

CHRO RE O HR

CHRO FO O HR

CHRO RE O HR

CHRO/CRDO FO T BD

CHRO/CRDO RE O HR

CHRO/CMO FO T MS

CHRO/CPO RE O OS

CHRO/CRDO RE O HR

CHRO/COO RE O HR

CHRO/COO RE O HR

CHRO/CMO RE/RO O HR

CHRO/CIO RE T HR

CHRO/CIO RE O HR

CHRO FO S HR

CHRO FO T HR

CHRO FO O HR

CHRO FO O HR

CHRO FO O HR

CHRO FO T HR

CHRO RO O HR

CHRO RE O HR

CHRO RE O HR

CHRO RE O HR

CHRO RE O HR

CHRO RE O HR

CHRO RE O HR

CHRO FO T HR

CHRO RE O HR

CHRO RE O HR

CHRO FL O HR

CHRO FO O HR

CEO/CHRO RO O HR COO FO O BD

CFO FO S GA

CFO/CMO FO T MS

CFO/CMO FO T MS

CFO RO T MS

CFO FL O MS

CFO FL O MS

CFO FL O MS

CFO RO O MS

CFO RE T OS

CFO FL O OS

CFO RO O OS

CFO FL O OS

CFO FO/FL O BD

CFO FO S GA

CFO/CPO FL O MS

CFO RE T GA

CFO FL T GA

CFO FL O OS

CFO FL O OS

CMO/CIO RE O IT

CFO/COO RO T IT

CFO/COO RO T IT

CFO/CIO RO T IT

CFO/COO FO O IT

CIO RO O IT

CIO RO S IT

CIO RO O IT

CFO/COO/CIO RO O IT

CFO/COO FO O IT

CFO/COO RE T IT

CFO/COO RO S IT

CFO/CIO RO T IT

Responsible C-level Executive

C-level executives perceive the challenges their company faces differently, yet one thing they have in common: a general need for knowing exactly which IT invest-ments to prioritize in order to realize most possible value.

Gain market share while others recover from external shocks

Penetrate new markets better and faster throughchannel partners

Enter new segments and markets

Improve account management strategies

Refocus and/or re�nepriorities and strategies

Improve cross-sell and up-sell campaigns

Tailor sales approaches to customer segments

Target new segments within current geographies

Increase focus on high value/high potentialcustomers

Strengthen customerbase

Increase focus on most effective sales and advertising channels

Increase sales byguaranteeing 24/7/365100% availability

Improve identi�cation of cross-sell/up-sell opportunities

Improve understanding ofsales and productiondefection drivers

Tailor account manage-ment approaches to customer segments

Increase sales to existing customers

Improve identi�cation of valuable customer relationships

Improve understandingof weakest performances

Target new geographies

Expand sales and advertising channels

Improve quality and assignment of sales leads

Improve methods andtools to manage salesperformance

Faster go-to-market with new products and services

Tailor products and services to new customer segments

CFO RO S GA

Increase stock value byadopting sustainabilitystrategy

Align advertising with pricing strategies

Convert free services to fee-based services

Charge higher prices dynamically

Improve focus on price-insensitive customer segments

Improve tailoring of offerings to customer needs

Improve data on customerprice sensitivity

Receive premium for 24/7/365 100% availability

Align product and service prices with value to customers

Coordinate pricing of complementary products and services

Improve execution of market- and supply driven promotions

Improve structuring and pricing of promotions

Improve understanding of product/service value to customers

Increase emphasis on differentiated products and services

Increase focus on pricing effectiveness/price optimization

Increase use of differential pricing mechanisms

COO RB O OS

Reduce cost of correlatedenergy/water management

Consolidate or outsource procurement functions

Re�ne vendor strategies

Consolidate or outsource IT design and develop-ment functions

Consolidate or outsource IT design, development and deployment services

Consolidate or outsource end-user-support

Consolidate or outsource operations and maintenance services

Consolidate or outsource bene�ts administration functions

Consolidate or outsource learning and development functions

Consolidate or outsource recruitment functions

Improve alignment of business unit andenterprise strategies

Improve alignment of organization structures with business strategies

Consolidate or outsource payroll functions

Consolidate or outsource property management functions

Improve alignment of �nancial and corporatestrategies

Outsource property tax administration activities

Bypass current channels/sell directly to customers

Improve focus on segments with lower average cost-to-serve

CFO FO T GA

Reduce travel expenses

CSO FO S GA

Increase focus on businessinsight and and forward-looking information

COO FO T GA

Increase transparency ofenergy management ofbuildings, manufacturing,datacenter and logistics

CFO RO O GA

Reduce cost on energymanagement of buildings,manufacturing, datacenterand logistics

Rationalize targeted markets and customer segments

Rationalize customer portfolio

Rationalize targeted customer segments

Select and enter pro�table and exit non-pro�table markets

Consolidate order ful�llment functions

Increase focus on businessinsight and forward-looking information

Minimize recovery costs through “self-healing” capabilities

Improve focus on higher-value advertising channels/media

Increase use of lower-cost sales channels

Minimize recovery costs

Better alignment ofbusiness planning, management and reportingfunctions

Minimize costs related to external shocks

Consolidate company real estate/facilities

Improve alignment of capital budgets and program plans with business priorities

Increase use of lower-cost billing channels

Increase use of lower-cost real estate and facilities/Relocate business operations

Reduce �xed cost by paying for usage, not for availability

Strengthen enterprise-wide �nancial reporting standards

Design product for ease-of-use/self-service

Improve emphasis on design for packing/shipping ef�ciency

Standardize product catalogs

Consolidate service and support operations

Consolidate or outsource product development functions

Re�ne vendor/supplier strategies

Re�ne/align logistics and distribution strategies

Re�ne and/or align material strategies

Consolidate/outsource logistics and distribution functions

Consolidate or outsource production functions

Consolidate or outsource service and support operations

Improve focus on higher-value customer segments

Increase emphasis on designing and packaging for distribution

Increase emphasis on designing for material ef�ciency

Increase emphasis on modular, extensible, scalable designs

Reduce peaks in operating costs

Increase focus on materials-ef�cient production mechanisms

Reduce operational costs through ef�cient resource allocation

Increase emphasis on designing for service ef�ciency and self-service

Rationalize and/or realign product development efforts

Design products to use cost-effective materials

Improve focus on higher-value products

COO FL T GA

COO FL S GA

COO RO T GA

COO FL S GA

Consolidate or outsourceproperty managementfunctions

Improve alignment of�nancial strategies withcorporate strategies

Improve balance betweenbuy and lease

Reduce asset ownership

Increase emphasis on service prevention andreduced need for service

Increase use of cheaper service channels

Rationalize and/or refocusproduct and serviceportfolios

Improve purchasing on a national/global basis

Rationalize/consolidate vendor portfolio

Acquire companies in target geographies

Acquire companies with relationships in targeted customer segments

Accelerate or defer income/expenses

Consider tax implications in the location/selection of facilities

Develop and utilize unique tax expertise

Ensure adequate documentation of signi�cant tax positions

Ensure full utilization of tax carry forwards

Improve accuracy and timeliness of tax provision and cash out�ow forecasts

Improve management of transfer pricing

Optimize accounting methods and selection of accounting periods

Optimize depreciation methods/lives for pro-perty, plant and equipment

Optimize expense vs. capitalization of costs

Optimize valuation and costing methods for inventories

Exploit investmentmanagement make andbuy options

Improve ability to develop and spin-off new businesses

Decrease ownership of non-differentiating assets

Defer/change timing of capital investments

Leverage existing invest-ments better

Optimized asset related costs

Reduce number of data centers, branch of�ces, dealerships, retail outlets, etc.

Minimize unpro�table investments

Divest low-utilization equipment

License or sell intellectual capital to other enterprises

Improve effectiveness of plant maintenance

Improve design formanufacturability andservice

Improve preventiveequipment maintenance

Increase use of leased production equipment

Increase utilization of production equipment

Rationalize production facilities

Streamline business model with focus on core business components

Minimize unpro�table, �xed contracts

Better integration of legacy and new solutions

Optimize harmonization and consolidation

Optimize infrastructure costs

Optimize utilization of facilities

Divest low-utilization infrastructure

Increase use of leased infrastructure

Reduce total cost oftravel management

Better exploitation of variable cost reductionopportunities

Improve balance andcash �ow managementbetween buy and lease

Reduce asset ownership

Improve terms on IT systems

Improve terms on infrastructure

Improve terms on property and facilities

Consolidate IT systems, production lines and service mechanisms

Divest low-utilization IT systems

Improve maintenance of IT systems

Increase utilization of IT systems

Utilize more ef�cient IT systems

Establish development of strategic assets as a key competency

Better alignment of �nancial accounting andanalysis functions

Withdraw non-pro�table products

Improve emphasis on product quality and ease of service

Rationalize and/or refocus service portfolios

Retarget products and services and manage pricing

Consolidate billing operations

Manage procurement for MRO on a national/ global basis

Rationalize/consolidate MRO vendor portfolio

Consolidate IT, telephoneand network equipment and facilities

Implement integrated applications across organizational boundaries

Rationalize IT application portfolio

Improve HR practices

Improve focus on employee retention

COO FO O GA

Improve cost savings byreducing waste, energyand water usage

CFO FO O GA

Improve sustainabilitymanagement reportingand balance sheet

Increase use of lower-cost logistics and distribution channels

CIO FO S IT

CFO FO S GA

CFO RE S GA

CFO FO O GA

COO FO O OS

Leverage IT investmentsbetter

Improve management ofcredit/loan portfolio

Improve cash �ow

Improve management ofcredit risk and paymentsacross business units

CIO FL O IT

Optimize IT infrastructurecost

CIO FO O IT

CFO FO/RE S GA

CFO FO/RE T GA

CFO RO S GA

Divest low-utilization ofIT infrastructure

Reduce total cost offacility management

COO RE T GA

CSO FL S BD

Improve projectperformance

Adressing global issuesie. climate change withsustainability management

CSO FL S BD

Improve eco-ef�ciencyinitiatives to increase costsavings

CSO FO S BD

CFO FO S BD

Improve sustainability stra-tegy based on economicpro�tability, environmentand social responsibilities

Adopt social and ethicalresponsibilities in corporatestrategy

Reduce total cost ofproject management

Maximize shareholder andcorporate value by soundeconomic sustainabilityactivities

Reduce cost adoptionssustainability managementin day-to-day businessoperations

CFO FL T GA

Strengthen enterprise-wide �nancial reportingstandards

Increase use of lower-cost production channels

Improve tax bene�ts of compensation and bene�t programs

Improve platform and portfolio strategies for products and services

Improve competitive research

Improve quality of consumer analysis

Better patent processes

Improve design and development approaches

Improve methods and tools for managing innovation performance

Pursue joint-venture, partnership and OEM arrangements

Improve integration of research & development

Better settings for innovation to �ourish

Improve management of product lifecycles

Increase emphasis on design for con�gurability/customization

Increase focus on R&D, product innovation, and product leadership

Increase utilization of modular, reusable designs

Broadened product and service offerings

More attractive products and services

Reduce research & development time through collaboration

Improved market intelligence

Optimal collaboration across the value chain

Improve design and development processes

Improve ordering and receipt processes

Improve product develop-ment performance mana-gement, methods & tools

Improve pro�tability of R&D efforts through utilization of economic development incentives

Improve product prototyping, piloting and testing processes

Improve project management

Improve utilization of product developmentchannels

Increase number and quality of product and service launches

License or acquire products and intellectual property

Improve balance betweencore and none coreactivities

Improve �exibility acrossthe value chain to matchnew demands

Improve responsiveness to customer requests and inquiries

Improve risk protection and management

Build �exible business architecture and infrastructure

Increase use of �exibleproduction facilities

Improve responsiveness across the value chain

Build �exible and scalable business infrastructures

Optimize working capital by applying �exibility in internal activities

Better balance betweenstandard and customized applications

Utilize more �exible/expandable IT systems

Flexible IT architecture and infrastructure

Increase use of �exible and expandable infra-structure

Consolidate/realign sales territories

Route low-value trans-actions to lower-cost saleschannels

Improve account manage-ment methods and tools

Improve channel manage-ment, processes and tools

Improve cross-sell and up-sell approaches/models

Improve effectiveness of cross-sell and up-sell approaches/models

Improve �eld sales and telesales processes

Improve processes for rating, qualifying and assigning leads

Improve relationship/account development processes

Improve terms with advertising channels

Improve terms with sales channels

Improve transparency of customer, product and channel pro�tability

Provide staff with better customer information

Provide staff with better market information

Improve order manage-ment methods and tools

Improve capacity/demand planning processes, skills and tools

Improve due-date reliability

Improve forecasting, planning and prioritization skill and tools

Improve pick, pack and ship processes

Improve policies and pro-cesses around material returns

Improve provisioning/installation processes

Improve routing of service requests to appropriate staff

Improve workforce planning and dispatch processes and tools

Improve sales perfor-mance management methods and tools

Provide staff with better customer and order information

Improve campaign design and management pro-cesses and tools

Improve sales forecasting and campaign execution processes and tools

Improve incentives around order management ef�ciency

Improve incentives around service ef�ciency and effectiveness

Improve credit analysis processes

Improve invoicing/billing processes

Improve services and delivery

Develop stronger customer relationships

Establish customer communities

Improve customer service

Improve responsiveness to customer complaints/feedback

Improve tracking of customer interactions

Improve understanding of current customer satisfaction

Improve understanding of customer needs

Increase emphasis on account/relationship development

Solicit and respond to customer feedback

Improve effectiveness of sales processes

Improve quality of products and services

Improve marketing strategy

Tailor marketing ap-proaches to customer segments

Develop and cultivate good will

Develop and leverage strong brand

Improve effectiveness of marketing and advertising processes

Improve brand aware-ness/elevate brand image

Improve marketing and advertising performance management methods and tools

Rationalize and/or refocus channel/media usage

Improve brand strength and good will

Optimize marketing channels

Apply brand to new and unbranded products

Improve staff incentives around marketing ef�ciency

Improve relationship management strategies for key stakeholder groups

Increase proactive pursuit of partnerships, mergers and acquisitions

Increase focus on partnership, merger andacquisition opportunities

Partner with best-in-class partners on non-differen-tiating elements

Improve quality and speed of communication with partners

Improve communication with stakeholder groups

Improve quality of infor-mation provided to stakeholders

Develop and leverage strong/unique partner relationships

Improve ability to identifyand assess partneringopportunities

Improve ability to turn strong relationships intocompetitive advantage

Improve identi�cation of stakeholder groups and establishment of priorities

Improve integration of business processes across partner networks

Improve understanding of partner strengths, weaknesses and interests

Improve value delivered to employees, partners, and other stakeholders

Increase emphasis on operational integration with partners

Improve ability to integrate merged and acquired organizations

Improve integration of IT systems across partnernetworks

Better match of trends and buying patterns

Improve tracking and recovery of indirect taxes

Improve customer service and support processes

Improve service and support performance management methods and tools

Improve utilization of customer service staff

Shorten order-to-delivery cycle time/Improve product and service availability

Improve de�nition of product and service speci�cations

Improve product and service withdrawal and retirement processes

Provide staff with better product, service and competitive information

Improve staff incentives around sales ef�ciency

Reduce business risk by aligning with changing market needs

Reliable customer intelligence

Improve identi�cation and prediction of industry and market trends

Secure use of information that is accurate and real-time

Provide greater predict-ability in performance

Improve access to infor-mation and analytical tools

Improve analytical processes and tools

Improve identi�cation of opportunities and threats

Improve cost transparency

Improve access to and distribution of perfor-mance information

Improve analysis of managerial information

Improve assessment and benchmarking of business process performance

Improve breadth, depth, quality and timeliness of business information

Improve determination of key performance metrics and targets

Improve measurement and reporting of opera-tional and �nancial performance

Improve tracking and communication of program/project progress

Increase emphasis on continuous, proactive performance management

Increase focus on key performance metrics

Drive greater �nancial predictability

CRSO RO O BD

CRSO RO O BD

COO RE T BD

COO RE S GA

COO RE T OP

Improve alignment ofprojects with program andbusiness objectives

Continuously track andmanage the realization ofproject bene�ts

Improve coordination andcommunication acrossprograms and projects

Structure programs andprojects to deliver bene�tsprogressively

Cost reduction with wastemanagement

Improve benchmarking of global effective tax rate against industry peer group

Improve identi�cation assessment and execu-tion of M&A/divesture opportunities

Improve quality and con-sistency of performance assessment methods

Improve use of balancedscorecard

Optimize investment inaccurate analytics anddecision support tools

CSO RE T GA

Provide greater predict-ability with accurate envir-onment health and safetybusiness process �ows

Identify organization's limits and weaknesses

Improve anticipation and understanding of current and potential regulation/legislation

Improve monitoring and management of risk and compliance

Improve physical security of people

Optimize compliance withenvironmental standards

Optimize compliance withindustry standards

Optimize compliance withhealth standards

Improve data and privacy protection compliance

Optimize compliance with accounting standards

Ensure tax planning activities and tax �lings comply with regulatory environment

Improve focus on internal controls and regulatory compliance

Improve monitoring and management of regulatory compliance

Improve understanding of regulatory requirements

Minimize risk by increasing expertise in selected activities and markets

Increase emphasis on risk-informed, scenario-based planning

Improve/implement internal control frame-works and policies

Improve accountability/authority of program and project resources

Improve effectiveness of governance models

Improve effectiveness of program/project governance models

Improve integration of short- and long-term business planning

Improve structuring and launch of cohesive program portfolios

Clarify governance roles and responsibilities

Improve assignment of accountability and authority

Improve incorporation of risk analysis in business planning

Increase use of ServiceOriented Architecture

Improve effectiveness of organizational structures

Build values and ethics into corporate culture

Improve alignment of customer, product, sales, service, support, and ful�llment strategies

Improve alignment of budgets and capital programs with strategic priorities

Effective and ef�cient risk management procedures

Improve protection of sensitive data and intellectual property

Improve company-wide monitoring and manage-ment of risks

Improve identi�cation and assessment of risk

Increase emphasis on risk identi�cation and management

Improve post-mergersynergy and cost reduction programs

Strengthen cross-business-unit and cross-company collaboration

Increase emphasis on quality management and benchmarking

Reduce operational risk

Continuously track and manage the realization of project bene�ts

Dynamically cancel or redirect ineffective/obsolete programs and projects

Improve alignment of projects with program and business objectives

Improve coordination and communication across programs and projects

Improve coordination of investment, �nancial and tax strategies across business units

Improve development and analysis of business cases

Improve focus of company resources on high-priority initiatives

Improve identi�cation and management of program/project risks

COO RE T OS

CRDO/COO RO O OS

Anticipate future energyand water managementcost

Improve corporate socialresponsibilities and ethicalvalue management

Improve program/project management methods and tools

Improve risk planning, mitigation and control approaches

Increase emphasis on enterprise-wide program planning and delivery

Strengthen corporate governance structures

Structure programs/projects to deliver bene�ts progressively

Align internal audit practices with business and risk objectives

Improve effectiveness of legislative/lobbying efforts

Improve monitoring and protection of assets, people, infrastructure, etc.

Increase accountability of business unit leader for tax impact of decisions

Lower debt burden

Strengthen and commu-nicate governance policies and procedures

Strengthen and commu-nicate mission, vision, values and ethics

Improve communication between the board, mana-gement, shareholders and the public

COO RE O OP

Reduce cost with predict-able greenhouse gasemissions to comply withregulation cap

COO RO T GA

Improve environmentaldisaster and recoveryprevention plan

Improve quality assurance programs

Optimize risk managementacross products andservices

Improve management of vendors/service providers

Improve security of applications, systems and data

Improve communication around improvement priorities

Improve management of organizational change in support of initiatives

Improve communication of strategic directions and priorities

Effective business continuity roadmaps

More effective damage handling roadmaps

Establish recovery andmaintenance plan

Redundancy in key parts of the operational model to ensure continuity

Improve businesscontinuity planning

Effective and ef�cient back-up systems

Ef�cient fall-back systems

Ef�cient recovery solutions

Improve performance and reliability of IT systems/platforms

Improve capacity planning processes, skills and tools

Improve coordination with business partners

Improve demand fore-casting processes, skills and tools

Improve incentives around production ef�ciency

Improve manufacturing and quality control processes

Improve production per-formance management methods and tools

Improve production scheduling and staging processes

Improve utilization of production channels/reduce downtime

Provide staff with better production information and tools

Rationalize order quantities and timing

Rationalize production quantities and timing

Shorten production cycles

Improve incentives around procurement ef�ciency

Improve materials ef�ciency of production processes

Improve materials per-formance management methods and tools

Improve product and service introduction/launch processes

Improve product concep-tion initiation processes

Provide staff with better product information and tools

Improve incentives around product development ef�ciency

Improve collaboration with vendors

Improve terms on equipment purchases

Improve terms on materials purchases

Improve terms with pro-duction service providers

Reduce procurement cycle times

COO FL O GA

Identify hidden cost onprocess level to reducewaste, production materialand energy/water usage

Better technology exploitation

COO RO O BD

COO/CRDO RO O BD

CRDO/COO RO O OS

CRDO/COO RO O BD

End-to-end product trace-ability, impact analysis,response

Decrease carbon footprintin product and service lifecycle

Improve productcompliance analysis andreporting

CRDO/COO FL T OS

CSO FO S OS

Improve environmental-friendly products andservices

De�ne business model forsustainability that incorpo-rates economics, environ-ment and social aspect

CCO/COO FO S OS

Improve sustainabilitypartnership in productlife cycle and services

COO RO O BD

Improve environmentalfootprint calculationie. carbon and waterfootprint

Improve product safetywith sustainabilitymanagement

Develop low-inventory business models

Differentiate treatment of customers/segments

Increase emphasis on designing for ef�cient materials management

Rationalize material order quantities and timing

Rationalize raw materials

Increase emphasis on designing for operationef�ciency

Align operation and ma-terial ordering schedules with distribution schedules

Better inventory control

Divest low-demand/obsolete inventory

Improve capacity/demand planning, processes, skills and tools

Improve design/structure of distribution networks

Improve incentives around inventory/distribution ef�ciency

Improve incentives around material ef�ciency

Improve inventory receipt and storage processes

Improve logistics/distribution ef�ciency

Improve logistics per-formance management methods and tools

Improve material ordering and receipt processes

Improve material per-formance management methods and tools

Improve retrieval processes

Improve routing of service requests to appropriate service channels

Improve service and support processes

Improve service perfor-mance management methods and tools

Improve transport and delivery processes/algorithms

Improve utilization of logistics service staff

Improve workforce planning dispatch and assignment of processes and tools

Increase emphasis on build-to-order

Increase utilization of standardized components

Provide staff with better product, service andcontract information

Route low-value trans-actions to lower-costservice channels

Increase emphasis on useof common components

Increase emphasis on high-turnaround products

Rationalize and/or refocus material portfolio

Improve coordination with vendors

Improve focus on higher-value vendor relationships

Improve terms on material

Improve use of national/global purchasing power

Increase use of just-in-time procurement

Improve collaboration with vendors/partners

Improve terms on leased service assets

Improve terms with logistics service providers

Increase use of vendor-managed/vendor-warehoused inventory

CHRO/CFO RE S HR

CFO RO O GA

CFO RE S GA

Improve budgetting andforecasting capabilities

Communicate HRstrategies

Improve breadth, depthand quality of �nancialinformation

Improve strategic planning processes

Improve selection, acqui-sition and contracting processes

Improve faster andsmarter decision makingprocess

Improve operational risk management processes

Improve design, development and testing processes

Improve procurement performance management methods and tools

Maintain strict control of differentiated components

Improve end-user application support

Improve establishment of and adherence to service-level targets

Improve HR performance management methods and tools

Provide staff with better HR information and tools

Improve performance assessment processes

Utilize available govern-ment and local employ-ment/training incentives

Improve program management processes

Provide staff with better managerial information and tools

Improve accounting and measurement processes

Improve asset manage-ment processes

Improve audit and com-pliance management processes

Improve breadth, depth and quality of �nancial information

Improve budgeting and forecasting capabilities

Improve business case development and analysis processes

Improve business performance reporting processes

Improve capital budgeting processes

Improve compliance management processes

Improve debt and equity management processes

Improve �nancial reporting ef�ciency

Improve �nancial risk management processes

Improve incentives around business planning ef�ciency

Improve management of indirect taxes

Improve payroll processes

Improve real estate design and development processes

Improve real estate im-provement and deploy-ment processes

Improve real estate per-formance management, methods and tools

Improve real estate selection, acquisition and contracting processes

Improve tax management processes

Improve utilization of telecom tax incentives

Increase utilization of real estate

Manage payroll tax impacts of business initiatives

COO RO O OS

CIO RO O OS

Integrate management ofeconomics, society andenvironment in dailyoperations

CHRO RO T HR

Improve employee owner-ship to harness ideas toimprove cost savingsthrough sustainability

Improve green IT costreduction initiative

Optimize utilization of available sales/use tax exemptions

Improve installation/deployment processes

Provide staff with better product and service information

Improve collaboration with vendors

CMO/COO FO T OS

Improve workplaceenvironment and corporateservices with sustainability

Improve contract mana-gement processes

Improve product procure-ment processes

Improve service procure-ment processes

Improve terms on equip-ment and supplies

Increase focus on higher-value vendor and partnerships

Utilize national/global purchasing power

Improve terms with third-party product and service providers

Improve terms with cor-porate service providers

Improve incentives around MRO procurement ef�ciency

Improve terms on pur-chased and leased assets

Improve technology and data risk management processes

Avoid expensive recovery investments

Consolidate device management information and tools

Improve/consolidate IT performance management methods and tools

Increase utilization of IT, telecom and network resources

Improve incentives around IT/network ef�ciency

Improve salary and bene�ts administration processes

Improve alignment of HR and technology strategies with business strategies

Improve account mana-gement skills of staff

Improve cross-selling/up-selling skills of staff

Improve incentives for account/relationship development

Improve staff incentives for cross-selling/up-selling

Establish process impro-vement and innovation as key competencies

Improve vendor manage-ment skills of staff

Develop and maintain better competencies

Improve incentives around asset development

Improve knowledge sharing

Improve mechanisms for collecting and implement-ing employee ideas

Improve monetary and non-monetary recognition of staff contributions

Improve training processes

Improve incentives for product development and innovation

Improve product- and service-innovation skills of staff

Build product margins/pro�tability into sales

Improve contracting and negotiation skills of pro-curement/purchasing staff

Improve skills of product development staff

Improve skills of order management and billing staff

Improve skills of produc-tion staff

Improve skills of salesand marketing staff

Implement/improve company-wide processes and tools for assessingstaff performance

CHRO FL S HR

CHRO FL T HR

CHRO FO T HR

CHRO RO T HR

CHRO RO S HR

Identify strategic HRneeds

Engage employees insustainability strategy andexecution

Manage employeeperformance

Improve employeeresourcing requirementsper unit/organization

Engage employees insustainability strategyand execution

CFO/CHRO FO/RO S HR

CHRO FO/RO T HR

Determine HR costs

Improve employeebene�ts

Improve technical and project management skills of staff

Align compensation and incentive systems with strategies, values and ethics

Align management and staff incentives with company performance

Improve ability to attract talent

Improve resource andskills performancemanagement

Build innovation and improvement into rewards and incentives

Improve employee per-formance and satisfaction evaluation

Improve executive deve-lopment, recruiting and succession planning

Improve partnership and collaboration skills of staff

Improve program/project management skills of staff

Improve recruitment and orientation processes

Improve skills of HR staff

Improve skills of inventory and distribution staff

Improve skills of service staff

Improve staff incentives around service ef�ciency

Improve talent manage-ment models and pro-grams

Increase emphasis on people/talent development

Increase use of distance/on-line learning

Manage employee churn

Improve leadership and management skills of executives

Develop, spin-off and sell new business

Re�ne credit/days-receivable strategy

Increase focus on costumer segments with loss credit/loan needs

Increase focus on credit-worthy customer segments

Differentiate credit treat-ment of customers/segments

Improve and standardize credit assessment processes

Improve collections processes

Improve management of credit/loan portfolio

Tighten credit/loan terms

Optimize management of A/R and A/P across business units

Improve cash �ow

Improve management of credit risk across business units

Leverage credit rating to lengthen payment cycles and reduce interests rates

Reduce capital require-ments through partnering

Reduce level of working capital

Increase focus on vendors with favorable payment terms

Improve assessment and benchmarking of A/P performances

Improve coordination of payments across business units

Improve management of debt portfolio

Leverage breadth of vendor relationships to lengthen payment cycles

Collaborate with customers on data synchronization

Improve data control processes and tools

Improve data harmoniza-tion processes and tools

Better data and privacy protection compliance

Collaborate with supplier on data synchronization

Better master data harmonization

Consolidate and/or re-architect data stores

Optimize master data consolidation

Build master data with fully controlledredundancy

Improve data quality

Optimize use of real-time data

Strengthen data harmo-nization and consolidation

Improve data transparency

COO FL T GA

Outsource property taxadministration activities

CSO FO T GA

CMO FL S MS

CMO FL S MS

Improve competitivedifferentiation with “green”and low-carbon products

Increase environmental-friendly products & servicesthat replace demand for non-green products & services

Enhance eco-ef�ciency,social responsibility andwell-balance sustainabilitygrowth plan

CCO FL T BD

Improve suppliertransparency on product-related emission

CCO FO S BD

Improve competitivenessthrough sustainabilitywin-win partnership

CMO FO T BD

COO RO O GA

COO FL S GA

Improve sales and serviceperformance managementmethods and tools

Adopt sustainabilitybusiness model

CMO RE T MS

CMO/COO RE T MS

CMO FL T MS

CMO FL T MS

Benchmark sustainabilitymanagement

Improve customersatisfaction withenvironmental-friendlyproducts and services

Raise internal/externalconsciousness ofsustainability management

Improve recycling andreclamation

CMO/CHRO FO S MS

CMO FO T MS

CMO FO T MS

CMO FO T MS

Improve communicationof sustainability vision,strategy, programs andactivities

Improve transparency onproduct-related emission

Increase brand value withsustainability messaging

Improve engagement insocial communitysustainability

COO/CRSO RO O OS

CSO/CFO RE T OP

COO FO T OS

COO FO T OS

Comply with local green-house gas emission capand trade systems

Comply with environmentindustry norm andstandards

Adopt practical recommen-dations from the climatechange convention

Embed sustainabilitycompliance controlsthroughout the valuechain

CFO/CHRO FO/RO T IT

CBDO FO/RO S IT

CIO FO/RO S IT

CIO RE/RO S IT

CIO RE/RO S IT

CFO FL O GA

CFO FL O IT

Improve HR measures onsystems

Build strategic intelligence

Improve standards,guidelines and principles

Improve IT architectureand align with enterprisearchitecture

Improve IT governancestandards and processesand align with processgovernance and business

Continuous improvementof sustainability manage-ment ie. measuring

Improve diagnose andevaluation process ofsustainability management

Capture new customersegments with sustain-ability products & services

CMO FO S MS

© Value Team ApS www.valueteam.biz

About the AuthorsColor Codes for ProcessesExpress Value CreationBusiness Value Tree Abbreviations used in the Code BarBusiness value – the driving force? Business value planning, identification, creation and realization, is probably one of the most common dilemmas and challenges confronted by companies today, regardless of factors such as size, revenue, indus-try, region or business model.

The Business Value tree is a powerful tool designed to accelerate the connection not only between Business Model and ones Business Processes, but between the needed link of Service Orientation, Enterprise Architecture, Value Management and Performance Management. Working with Value drivers is not rocket science and it is not difficult, but rather some-thing that can jump starts the process of focusing on the things that matter most, and then choosing practical ways to get them done. The Express value creation approach we follow to plan, create and realize value is described below:

CEO = ExecutiveCFO = FinancialCOO = OperationCMO = Marketing/SalesCIO = InformationCTO = TechnologyCSO = StrategyCCO = ChannelCPO = ProcurementCHRO = Human ResourcesCRSO = Risk & SecurityCRDO = Research & DevelopmentCBDO = Business Development

Business Model Competencies

Business Competencies, defined asbusiness areas with characteristicresources and capabilities.

GA = General AdministrationHR = Human ResourceIT = Information TechnologyBD = Business DevelopmentOS = Operations SupportOP = OperationsDI = DistributionMS = Marketing, Sales & Service

Business Model Level

Operational level characterizes the scope of decision making.

S = Strategic(about strategic decisions, overall direction and policy)

T = Tactical(about monitoring, control, managing exceptions and tactical decisions)

O = Operational(about doing the work)

Business Model Imperatives

A business accelerates value by connecting and service enabling business competencies with suppli-ers, partners and customers to focus and respond rapidly in a focused, flexible and robust manner to any opportunity or threat.

FO = FocusedRE = ResponsiveFL = FlexibleRO = Robust

Author: Prof. Dr. Mark von RosingAs the Managing Director for Value Team ApS, specialized in strategic management and market analysis, Prof. Mark von Rosing has been serving the top 5 consulting companies and many of the fortune 500 companies over the years. He is in every way an entrepreneur with a proven track record for delivering results. Worth mentioning is:

• He just received IBM’s prestigious “Growth Award 2009” for contributing as the strongest growth enabler across EMEA• The Co-developer of SAPs global Business Process Management Framework and approach• Designer and co-developer of the new SAP BPX certification program for associate and

professional• Main author of SAP Press New Business Performance Management book on Applying

real-world BPM in an SAP environment• Author of numerable publications in the area of Business Model Management, Business

Process Management, Value Management & Sustainability• Head and founder of the Global University Alliance BPM and Enterprise Architecture

curriculum program (consist of 900 Universities)• Member and co-developer of the Global TOGAF Business Architecture development

Group• Founder of the Global BPM Roundtable/User Group, which consists of over 200

companies

Mark is a Professor in Business Model Management, Business Process Management and Value Management at the Copenhagen Business School and IT University, Denmark, lecturing on both Bachelor and Masters level.

He has coached and helped numerable companies create and realize value. His developed approaches within Business Modelling, Process Management and Business Value Management, has helped hundreds of companies over the world.

Contact information:E-mail: [email protected] or Phone: +45 28 88 89 01

Strategic Processes

Customer Processes

Internal Processes

Product & Service Processes

Supplier Processes

Technology Processes

Organizational Processes

Sustainability Processes

Express Value Creation is a consultant-led approach aimed to help prioritize and align IT investments – to realize values that matter the most in reaching strategic business objectives – both short and long term. This concept has proven to be an important differentiator when planning, identifying, creating and realizing the wanted value.

With a holistic view – taking all major business and technology perspectives into consideration – Express Value Creation provides rapid execution and return on investment, enabled by a focused approach, a streamlined roadmap, and power-ful tools. This will not only build a powerful tool for value planning, identifica-tion, creation and realization in developing the ability to analyze, define, standardise, optimize or innovate ones competencies, but also the underlying processes and activities. Through this approach the company’s competencies become stronger and more difficult for competitors to understand and replicate.

A successful value creation approach requires more than just a proven methodol-ogy. A number of elements needs to be considered, concentrating on the four pillars:

1. Strategic alignment - The approach should be adapted and streamlined for the company to ensure value creation in the strategic planning workshop sessions, where a business model is built with all the different competencies (resources and capabilities) which produce internal and external values are mapped with the company’s management models, Corporate Strategic Business Objectives (SBO’s), Critical Success Factors (CSF’s), and the different value opportunities.2. Organizational alignment - Once core competencies (Differentiated and Competitive) are defined the service enablement that needs to support the differentiated and competitive competencies is identified, and Performance as well as Monitoring needs are outlined.3. Technology alignment - The efficient execution of processes in todays corporate world is largely dependent on IT systems supporting an administration, production and operating model.

Additionally, an effective and efficient approach should use an optimal mix of technology to support each phase.4. Processes alignment - Define process activities with static and dynamic simulation and optimization (define KPI’s and PPI’s) and apply your IT’s composite application process characteristics (including service definition) as well as define monitoring and measurements.

The mentioned alignment always relies on effective and efficient integration of organization, technology and processes, but many organizations do not have a clear link between the four key pillars. An organization’s strategy may be gaining a competitive advantage, innovation, growth, acquisitions, differentiation, increasing profitability, or gaining market share, meanwhile all of these strate-gies require suitable business competencies that are embedded in adequate orga-nizational structures and aligned with the processes and supported by people and technology.

In this unique approach you will not have to start from scratch. We provide models and frameworks – you just have to adjust them to your needs. This is attractive for you - the participating executive – because it:

• rapidly leads to new Business Model insight and results• is easy to work with• stimulates innovation• has the potential to expand your mindset of how business and IT strategy tasks can be performed

Express Value Creation is designed to address key decision makers like CEO’s, CFO’s, COO’s, CIO’s, CMO’s and CHRO’s. For each role the angle varies and so does the view upon the challenges the company faces.

However, there is a strong need by all C-level executives to better understand what IT investments to prioritize in order to realize the most value to their business. A major trend is to shift funding from non-strategic competencies to strategic competencies in order to drive value realization and growth.

Contributor: Ann RosenbergAs a Global Business Process Management Lead at SAP, Ann Rosenberg is responsible for the Busi-ness Process Management, Business Architecture, Enterprise Architecture, SAP implementation and Value Management methodology/governance frameworks which are offered and used in the SAP community globally. She has designed the SAP BPX certification program for associates and professionals which is being taught globally to the SAP Community, and she is the head and founder of the SAP Global University Alliance BPM and Enterprise Architecture curriculum which are being rolled out to 900 universities globally.

Ann Rosenberg is Vice Chairman of the Open Group Business Architect Group and external lecturer in Business Process Management at the IT University of Copenhagen, and lecturing assistant at Copenhagen Business School.

Ann Rosenberg has published the book “Business Process Management – The SAP Roadmap” and will in July 2010 publish the book “Real World BPM in an SAP Environment”.

Author: Henrik von ScheelWith more than 15 years experience in leading the transformation of the businesses, strategies, processes and technologies of numerous Fortune 500 companies and recognised for his proven track record of profitable growth and ability to adopt to constant changing environment by devel-oping, implementing strategies and organizational changes needed to penetrate mature and emerg-ing markets.

Henrik is co-author of SAP Press New Business Performance Management book: Applying real-world BPM in an SAP environment as well as the book: Strategies of the future. He is a guest lecturer at the Copenhagen Business School on Performance and Value Management.

Henrik is currently the Vice President of IBM Software Group for NorthEast Europe and serves as Board of Director at Qosmos SA, Collax GmbH, SIRIUS advisor and WebiCoNet Holding GmbH.

Contact information:E-mail: [email protected] or Phone: +45 28 80 92 81

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InboundInventory

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OperationsProcurement

ComponentManufacture

OperationsPlanning

Costing

Finished GoodsInventory

Distribution

Import & Export

Transportation

OrderFulfillment

Scheduling

DistributionPlanning

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CustomerAcquisition

CustomerAccount

BrandManagement

Channels

Market Analysis

Selling

SegmentationPlanning

TravelManagement

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FacilityManagement

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ProjectManagement

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Legal &Regulatory

Affairs

StrategicPlanning

Payroll

Education

Compensation

PerformanceEvaluation

Benefits

Administration

Recruitment

OrganizationalPlanning

Support &Relationship

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ServiceDelivery

InformationManagement

Risk andCompliance

IT BusinessManagement

Deployment

IT Planning

DataManagement

Equipment &Plant

Safety &Security

Sourcing &Procurement

Environment &Health

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OperationsSupport Planning

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