Archive for the ‘Documentation’ Category

High Level View of the EBMM

Wednesday, April 8th, 2009

When first approaching the Enterprise Business Motivation Model, it helps to start with the highest level objects and to see the model as a fairly simple construction.

The EBMM is, first and foremost, a way to describe a complex business that allows interesting insight to be gained.  It is a tool, a competitive weapon, to be wielded by any business leader that is interested in moving his or her business from simply being “good” to being truly great.

Understanding about a business does not emerge from a single method or approach.  It emerges because the basic information about the business is so well organized that a hundred different methods can be applied, each to refine or improve the business in some key way. 

That can only happen if the information is well assembled, in a structure that is complete and scientifically created.  The EBMM provides the structure for information about your business that allows a wide array of analysis and improvement methodologies, from process management to enterprise architecture, to provide rapid and valuable returns in your business.

In most large enterprises, the information about a business takes many forms.  Some context can be found in well reasoned strategy memos, while other details may be barely described at all, existing only in the traditions and memories of key employees.

The information structure for describing a business must, therefore, cope with information that may exist in many forms, and different levels of detail.  The EBMM provides this flexibility, because the various elements of a business can be described and refined independently, producing interesting observations and ideas for enhancement, without the need for every detail to be captured first.

The EBMM itself is not complex.  Yet it is more complex than many of the models in use by business consultants.  In developing this model, we took the advice of Einstein: Make everything as simple as possible, but not simpler.  That is precisely what the Enterprise Business Motivation Model is, and does.  It is a simple model, but not too simple.  Interesting and useful illustrations can be created specifically because of this rich balance between simplicity and completeness.

The high level model is illustrated twice below: once in a graphic layout suitable for PowerPoint presentations, and the other in a technical layout suitable for business and enterprise architects.  (Note that the technical illustration differentiates core elements by both color (pale green) and the thickness of the borders around each term). (click images to view them full size).

Business Illustration

HighLevelView

Technical illustration

Core Elements Only View

The core elements of the EBMM are listed below, along with an informal description of each one.  (For more formal descriptions, see the detailed section dedicated to each of the areas).

Influencer – something outside the enterprise that has the potential for impacting, for better or worse, its business fortunes.  These are not people.  They are situations, like competitive pressures and regulations.  Note: analysts are not influencers, but a business trend (potentially started by an influential person, like an analyst) can be.

Assessment – A collection of judgments about the fundamental business model(s) of the enterprise.  Strategic planning units (and Business Management consultants) frequently provide these assessments in order to help executives make informed and well-reasoned decisions.  A business model assessment evaluates a business model, describes the impact of an influencer, and may provide the impetus for the creation of a driver.

Driver – something inside the business that motivates people to make a change.  This can include a person who shares a consistent opinion, but more frequently this would be things like strategies, objectives, and roadmaps.  A driver responds to an influencer and either makes changes to the business model itself, or encourages a change in the business that supports the optimum performance of the existing business model.

Business Model – a description of  the way that an enterprise hopes to make money.  Synonymous with a “business plan,” a business model represents and describes each of the elements needed for a business to provide a valuable product or service to a customer, through the application of resources, the engagement of partners, and the expenditure of capital.

Business Unit Capability – A description of a responsibility of a business unit, as required by the business model.  For example, if the accounting group is responsible for paying creditors, then we’d describe a single business unit capability as such: “the accounting business unit requires the capability to pay creditors.”  A business unit capability is implemented through one or more business processes and is described only in the context of a business unit.

Business Unit – A group of people that employ tools, processes, and information to perform their responsibilities.  Usually organized in a hierarchy (which means that one business unit can include a number of sub-units, and so on).  Business units perform business processes.

Business Process – Informally, a business process is a description of the things that people (and sometimes machines) do in order to run the business.  A process may include subprocesses, to many levels of depth, and the activities of a process are “governed” by directives.

Directive – The rules that people follow when performing business processes.  This includes business policies (at a higher level) and business rules (at a more detailed level). 

Note that the technical illustration above shows a couple of concepts that are not core concepts, but which relate directly to more than one core concept.  This allows us to describe additional ways in which these core concepts are related. 

The concept of a business service is described in the detailed section on business units.  The concept of a capability roadmap is described in the section on drivers.

How to use the EBMM

Tuesday, March 17th, 2009

A business motivation model is a structured method used to understand and ‘model’ a complex business.  To understand how someone would use the EBMM, it is helpful to understand the overall context.  What are we trying to accomplish with the model, and what does the model do for you?

Consider some of the following problems:

  • You are a business executive with a great deal of responsibility.  You are responsible for a large portion of the revenue of a major corporation, and you want to make sure that you have organized the business for success.  Have you created the right departments, and assigned responsibilities correctly, or is there a hidden flaw in your structure?  How would you find out what the optimum structure should be for your specific situation?
  • You are a business analyst, working to insure that your business takes advantage of all of the new opportunities presented by the latest Stimulus bill to come out of Washington D.C.  You see that the bill has relaxed a particularly onerous regulation, but has added three more that affect your business.  What impact will these changes have on the business?  What business processes need to change?  How would you know?
  • You are the CIO of your corporation, and your business stakeholders are looking at the IT department’s budget very carefully.  After all, the IT department has traditionally been a place where a great deal of money goes in, but projects come out late (or not at all) without a stellar track record for reliability or quality.  How do you justify the money spent on IT?  Can you show that every dollar is being spent to support the strategic needs of the business?  Can you prove that you are not wasting money on frivolous projects while deserving projects are starving for cash? 
  • You are in charge of the sales division for the Southwestern region of the United States for the Fabrikam corporation.  The executives have just come out of their annual retreat and delivered their new business strategies for the year, and you can see that some of the product focus has shifted.  Instead of pushing more retail stores to carry your the electronics line, your now need to focus on getting more subscribers to the company’s online store.  What parts of your business need to change?  What business processes are missing?  What training do you need to deliver?  Do you need new software?  How would you know?

The field of Business Architecture is focused on collecting the necessary information, in the necessary way, so that questions like these can be answered without guessing. 

These are important questions.  In each of the situations described above, the information needed to make decisions can be very difficult to collect in hindsight.  In other words, if you are not already collecting information, and preparing for the day when you will need to use it, then you will not be ready to answer these questions when the time arises.

That’s OK, the business leaders will figure it out, right?  Isn’t that what they have always done?  Perhaps, but in a globally competitive environment, the company that makes the best decisions is the one most likely to win in the marketplace, and the company with the best data is best prepared to make those difficult and critical decisions.

The enterprise business motivation model is a conceptual structure for collecting the right information, in the right relationships, so that difficult questions like those above can be answered in a rational manner.

Note that the EBMM is not a definition of a database.  While a technologist certainly could create a data model from the EBMM, and use it to build a software system for business architecture, the necessary details needed to build that system are not described in this location. 

That level of detailed analysis and design is not new.  It has been done many times, by the companies that create and distribute Enterprise Architecture and Planning software.  Those vendors closely guard their database schemas, for good reason.  However, very few models have existed in the public domain that are rich enough to build software upon, while being designed to solve business problems instead of technology problems.

Until now, that is. 

At a high level, the Enterprise Business Motivation Model can be used in each of these key business capabilities in order to improve the understanding of the business, and thereby improve the decisions made by the business:

  • Development of business strategies and insuring that the work of the business aligns with those strategies.
  • Evaluation of business positioning in the marketplace and examining opportunities to improve the value of the business through innovations to the business model.
  • Implementation of government or industry-specific regulations, along with impact analysis and the development of business policies that drive the implementation or remove obstacles along the way.
  • Creating a long-term roadmap for a series of improvements designed to make the business more competitive, efficient, effective, or responsive.
  • As one of the many inputs needed to develop a funding and governance structure for the IT department.  This governance structure insures that IT system development efforts are correctly timed, properly prioritized, in the appropriate technology, with the appropriate information available. 

As you work through the model, please consider contributing to the body of knowledge needed to use it well, by contributing your ideas and feedback to this site.

Introduction and Overview

Thursday, March 12th, 2009

The Enterprise Business Motivation Model (EBMM) is a conceptual information model, described using UML, that captures the relationships between the business drivers, business models, business processes, and business units that make up a typical commercial organization.

Use this page to find more information about the EBMM on this site.

(Note: While this site is under construction, these links will  be incomplete.  Over time, all of the articles will appear.)

Section

What you may learn

Sources of Influence

Where the ideas for the EBMM come from and why the EBMM was created to merge them.

High Level Model

The high level diagram that illustrates the core elements and describes how they relate to one another.

Detailed Elements

The following table provides links to articles that describe the detailed elements with respect to each core element. 
Business Model Enterprise, Required Competency, Value Configuration, Finance and Revenue Models, Customer Expectations, Products and Services, Distribution Channels, Geographies and Locations,  Business Alliances and Partnerships
Business Model Assessment Judgments, Strengths, Weaknesses, Competitive Opportunities, Risks
Influencer Business Trends, Regulations, Competitive Pressures
Driver Strategies, Goals, Principles, Mission, Vision, Business Capability Roadmap
Business Unit and Business Unit Capability Business Service, Maturity Assessment, Capability Roadmap, Company
Directive and Business Process Business Process, Success Measure, Key Performance Indicator, Directive, Business Policy, Business Policy Type, Business Rules and Facts
How to use this model Understand some of the business scenarios where the existence of the EBMM, implemented within an enterprise, can drive good decision making and effective use of resources.
Glossary of concepts Full definitions of the concepts in the Enterprise Business Motivation Model, along with external concepts linked in to the model.

Contribution and Discussion

 

License to Use the Model

Find out the conditions you agree to when you decide to use the EBMM in your strategic planning and IT alignment efforts.

EBMM License

Tuesday, March 3rd, 2009

Enterprise Business Motivation Model License

This license governs use of the accompanying model. If you use the model, you accept this license. If you do not accept the license, do not use the model.

1. Definitions

The terms “reproduce,” “reproduction,” “derivative works,” and “distribution” have the same meaning here as under U.S. copyright law.

A “contribution” is the original model, or any additions or changes to the model.

A “contributor” is any person that distributes its contribution under this license.

“Licensed patents” are a contributor’s patent claims that read directly on its contribution.

A “model” is a structured set of information elements, described in diagrams, documentation, and/or definitions, useful for creating or managing information. 

2. Grant of Rights

(A) Copyright Grant - Subject to the terms of this license, including the license conditions and limitations in section 3, each contributor grants you a non-exclusive, worldwide, royalty-free copyright license to reproduce its contribution, prepare derivative works of its contribution, and distribute its contribution or any derivative works that you create.

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(A) No Trademark License - This license does not grant you rights to use any contributors’ name, logo, or trademarks.

(B) If you bring a patent claim against any contributor over patents that you claim are infringed by the model, your patent license from such contributor to the model ends automatically.

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(F) Microsoft Corporation (“Microsoft”) is the contributor of the original model. If you give Microsoft any feedback about the model, you give to Microsoft, without charge, the right to use, share and commercialize your feedback in any way and for any purpose. You also give to third parties, without charge, any patent rights needed for their products or services to use or interface with any specific parts of Microsoft’s software or services that include the feedback. You will not give feedback that is subject to a license that requires Microsoft to license its software or documentation to third parties because Microsoft includes your feedback in them. If Microsoft provides you any support or other services related to the model, it may collect and use technical information gathered as part of those support or services to improve its products or services or provide customized services or technologies to you. Microsoft may disclose this information to others, but not in a form that personally identifies you. The rights in this section 3(F) survive this agreement.

Revised March 2009