Kpmg European Congress On Asset Management Brussel March 2012

Embed Size (px)

DESCRIPTION

Description of the first congress in common with KPMG, IAM, IET and BEMAS

Citation preview

  • 1. A Complete Model of the Supermarket Business

2. Supermarket ModelIntroductionWhy this presentation?Development of the Supermarkt Model by Dave Ackley enFrank Steeneken.Publication of the model at www.bptrends.com January 3th2012, in the article A Complete Model of the SupermarketBusiness.29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 2 3. Supermarket ModelIntroductionWhat is the Supermarkt Model?A complete picture of the underlying skeletal system structurethat holds every supermarket business together while achievingits goals.A comprehensive framework for managing the complexity of asupermarket structure, and a reusable blueprint for visualizinghow a supermarket company actually does business.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 3 4. Supermarket ModelIntroductionDave Ackley:Founder of Ackley Associates, an Oregon (USA) consulting firmspecializing in advanced modeling methods.He has almost 40 years experience in business and systemsanalysis, method development and process improvement.During that time he consulted with over 50 major corporationson enterprise modeling, information systems planning andprocess reengineering.29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 4 5. Supermarket ModelIntroductionFrank Steeneken:Business Process Architect working in the Netherlands.Frank has 27 years of experience in the field of business processarchitecture, business process management, requirementsengineering and system analysis. He has worked for consultingorganizations across different industry verticals and hasextensive experience with supermarket process modeling.29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 5 6. Supermarket ModelIntroductionDeveloped with the Integrated Modeling Methodwww.ackley.com:29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 6 7. Supermarket ModelIntroductionIntegrated Modeling Method:This method makes it easy to model the complex structure of a businessenterprise, based on the discovery that: every Business Enterprise has thesame Inherent System Structure.Instead of asking what are the essential characteristics of one business, thismethod begins with the basic system architecture that is common to everybusiness.Structural details are then tailored to represent the unique characteristics ofthe particular business enterprise that is being modeled.This approach is many times faster than traditional modeling methods, yetproduces a more complete, accurate, and useful model of the entire businessenterprise.29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 7 8. Supermarket ModelIntroductionAgenda:Some theory.Scope and focus.Overall structure.Detailed structure.Useability.Summary.Feedback.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 8 9. Supermarket ModelSome theorySystems thinking approach:The process of understanding how things influence one anotherwithin a whole.Based on the belief that the component parts of a system canbest be understood in the context of relationships with eachother and with other systems, rather than in isolation.Source: Wikipedia29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 9 10. Supermarket ModelSome theoryMost systems share common characteristics, including:Systems have structure, defined by components/elements andtheir composition.Systems have behavior, which involves inputs, processing andoutputs of material, energy, information, or data.Systems have interconnectivity: the various parts of a systemhave functional as well as structural relationships to each other.Systems may have some functions or groups of functions.Source: Wikipedia29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 10 11. Supermarket ModelSome theoryBusiness Function:A contribution (black box), to the purpose of a process.Relatively stable, independent of a specific technology. BusinessCustomers Suppliers29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 11 12. Supermarket ModelSome theory (Core)process: Processes are chains of activities. These activities are logically organized and aimed at achieving results for a customer. BusinessCustomers Suppliers29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 12 13. Supermarket ModelSome theoryDecomposition:The overall sequential flow of work performed by each coreprocess determines the flow of work as it encounters itssequence of business functions.In that context, the work performed by a given businessfunction is viewed as a sub-process of the overall core process,and details of the work within the business function appear aslower-level activities within that sub-process.The core process dimension breaks down into a set of sub-processes that defines the sequence of work steps.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 13 14. Supermarket ModelScope and focusWhat is a business?29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 14 15. Supermarket ModelOverall structureWhat is a supermarket business?Function:A supermarket exists in a competitive environment, where it acts as avalue-added intermediary between geographically dispersed suppliercompanies and the scattered individual customers who eventually buytheir products.Product/service:A supermarket is a business enterprise that provides a service. It doesnot produce a physical product of its own in the usual sense. Instead, itadds value by acquiring existing products from remotely-locatedsuppliers, assembling them in regional warehouses, distributing them tolocal stores, and finally selling the suppliers products to local customers.29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 15 16. Supermarket ModelScope and focusWhat is a supermarket business (continued)?A supermarket business enterprise is a large, very complexstructure, involving many component entities: An array of repeat customers grouped in various local areas. A chain of retail stores. Various transportation systems. A set of warehouse distribution centers. An array of product suppliers under contract.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 16 17. Supermarket ModelOverall structure Business Concept: A balanced composition of the marketing mix such that it creates a distinctive image for the customer of a store.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 17 18. Supermarket ModelOverall structureHow is Supermarket Model structured?29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 18 19. Supermarket ModelOverall structureHow is Supermarket Model structured (continued)?Four core processes, which represent the life-cycle* of asupermarket business:1. Defining.2. Designing.3. Constructing.4. Provisioning.*a change in the business concept reincarnates the life cycle.29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 19 20. Supermarket Model Overall structureHow is Supermarket Model structured (continued)? To fulfill the original business concept, the four core processes are implemented over time. This four-stage development sequence comprises the life-cycle of the supermarkets business enterprise product.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved20 21. Supermarket Model Detailed structure A more detailed subsystem structure is required as a basis for defining the core process structures. The first task is to translate the Functional Activities to be Performed into the sequence of Basic Functional Steps that bring product stock from remote suppliers to local customers.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 21 22. Supermarket ModelDetailed structure Interpret the Basic Functional Steps as business subsystems, which portray the supply chain in terms of business structural requirements.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved22 23. Supermarket ModelDetailed structure When the detailed subsystems and core processes are combined, they produce a grid-like framework. Within this framework, each subsystem/core process intersection is interpreted as a Business Function to be managed and performed. The core process dimension breaks down into a set of sub-processes that defines the sequence of work steps to be conducted in this portion of the supply chain. The subsystem dimension defines how resources and schedules are applied to accomplish that work.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved23 24. Supermarket ModelDetailed structure 24 25. Supermarket ModelDetailed structure 25 26. Supermarket ModelDetailed structure 26 27. Supermarket ModelDetailed structure 27 28. Supermarket ModelDetailed structure 28 29. Supermarket ModelUseabilityThe purpose of this supermarket model is to clearly portray howthe work performed in a supermarket business is structured,apart from the way it is managed and controlled. To provide thisclarity, feedback loops and control systems are not shown onthese diagrams 30. Supermarket ModelUseabilityEfficient tool for more accurate business processidentification, improvement and design.Blue print Process structure Chain 0 Core process 1 Process 2 Workflow ActivittyC a t e g o r y : W o rk f lo w D ia g r a mU p d a t e D a t e:18- 8- 2010 1 3: 2 8 : 4 9 Return goods from store [As-Is]U pdat ed by : Fr a n k S t e e n e ke n 3 C a llc en t e r A lb e r t H e ijn R e ca l l of goods ( c ode 9 9 9) a nno R e d a ch t ie W in k e lw e b M es s a ge re c a l l goods s e nt S u p e rm a r k t m a n a g e r M e s s a g e r ec a ll o f goods H a n d o v e r r e c a ll of goods 4Task Te a m le id e r V e r k o o p k la a rR et ur n agr eem ent M a k e r et u r n s R e g is t e r a m o u n t r e a d y f or s e n d o f r e t ur n it e m s in bac ks t o c k k e e p in g a R e t ur n a g r e e m e n t [ f ille d u p b y s t o r e l] M e d ew e r k e r V e r k o o pk la a r M a n if e s t R e g is t e r s h ip m e n t D e t e r m in e a m o u n tR e g is t e r re t u r n R e g is t e r f in a l C h a n g e a m o u ntW a y b ill A r c h iv e c o p yd if f e r e n c e in q ua n t it ie s AND ( la b e l) in s t o c klo a d c a r r ie rs t o( la b e ls ) loa d s h ip m e n t o f r e t u r nlo a d c a r r ie r s on[ c or r ec ted]s ig n e d w a y b ill k eeplo a d in t r u ckc a r r ie r s i g o o d s in st o c k k w a y b illw a y b io llc or r ec t edW a y b illC h a uf f e u r V r a c h t w a ge nD e t e r m in e am o u n t Truc k dri v e rlo a d c a r r ie r s t o W a y b ill c he ck s i nlo a d in t r u c kw a y b ill n o t n o d if f e r e n c e in S ig n w a y b ill Goods WorkflowL o a d lo a d c a r r ie r s C om par e am ount q u a n t it ie sc or r ec t edr e t u r ns in t r u c k lo a d c a r r ie r sXORretu rn ed fro mXORr e t ur n s w it h w sto re W a y b ill [ s ig n e d ]29-06-12 Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved30 31. Supermarket ModelUseabiltyA basis for (re)designing organizational structure.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 31 32. Supermarket ModelSummaryThe Supermarkt Model:An application of the Integrated Modeling Method.The supermarket model defines the inherent system structure that iscommon to every supermarket business.Provides an architectural framework of function and workflow that can beapplied to better understand and improve a supermarkets businessperformance.By identifying the supermarkets complete core process and functionstructure, this model provides a highly efficient tool for more accuratebusiness process identification, improvement and design.29-06-12Copyright 2012 Frank Steeneken and Dave Ackley All Rights Reserved 32 33. Supermarket ModelFeedback? [email protected] 2012 Frank Steeneken and Dave Ackley All Rights Reserved 33