Intelligent Attributes

The models used to plan and monitor strategy are typically made by combining business structures.  For example the Value Chain Model (VCM) can be viewed by the activities that create business value.  These can be grouped into Core and Support activities, where: 

Core activities are those that directly relate to the delivery of products/services to the intended customer.  This includes how products or services are sourced, developed, manufactured, marketed, sold, delivered and supported.  It is these activities where typically most of the value is generated.

Support activities are those that enable the organization to operate legally and in an effective manner.  This includes how suppliers and employees are paid, monies collected from customers, the way the organization is financed, and how it meets its legal and statutory responsibilities. 

Below is an example of a high-level VCM for a manufacturer:

This VCM represents ‘business as usual’.  In other words, how the organization generates value today.   Activities are typically implemented (or managed when outsourced) by operational department(s) that have specific responsibility for carrying them out. 

The way an activity is performed or combined with other activities is the basis of competitive advantage and the amount of value added to a product or service.  Therefore to manage any activity a number of facts will need to be planned and monitored.  These can be grouped into the following measurement types:

Implementation:  This measures the amount of work being performed within the activity. Examples include measuring the number of adverts placed; the number of sales calls made; and the number of items manufactured.

Success:  This records the level of success being achieved by performing the activity.  Examples include the number of contracts won; the reduction in the number of products being returned; and the market position compared to competitors.

Resource: This measure details the resources required that enable the activity to be carried out. Examples include staff numbers; access to equipment; and money for paying suppliers.

To manage performance these measures and activities need to be intelligently combined so that resources allocated can be assessed in relation to the activity performed by the relevant departments and the success achieved.  Below is an example of how these measures can be related:

Fig 14.  Sample measures used to plan and monitor activities in the value chain

Notice that the measures vary between department and activity.  This presents a major challenge when producing a data entry screen or a report as this ‘structure’ is not the same as set up in the business model.  Which is why we built CorPeuM with an intelligent attribute capability that allows measures (and any dimension member) to be associated with any other business member.  These are then used to automatically select and display measures that are appropriate to any business information being presented.

CorPeuM Benefit

CorPeuM is able to build models that intelligently combines activities with resources as well as measures of implementation and success.  This enables organizational value chains to be modelled, the assignment of activity-based budgets, and presenting them in an effective format that focuses on execution.