VRM Domains - The Systems Based Approach

Business process understanding is complex, especially when companies are increasingly reliant on a partner network that may stretch around the world.  These are processes for which your company may ultimately be held responsible by a customer or market, yet they are being operated by assets managed, rather than assets owned.

Yet looking at business processes is not new.  Many businesses have their internal processes defined and somewhat operational.  To succeed today, interactivity, connectivity and ongoing relationships across the value chain are needed.  The result is enhanced collaboration, which increases visibility of the flow of information.

Your firm or client can better coordinate their decisions regarding the product life cycle, from market and product development plans, to partnering strategy, to outsourcing options and support strategy.  You get better informed decisions. 

Why is a holistic process model important? It helps you know what knob to turn for the most impact. Companies have found they may excel at excellence around individual projects but still not meet the financial goals of the business or the requirements of their customers. In the final analysis the best view is a holistic view of the value chain at the Extended Enterprise level. 

The Value Chain Group has been formed by forward-thinking companies, domain-specific associations, and consultancy organizations to advance the Value Reference Model. You are invited to learn more about the VRM and how your company might participate in the development and use of this holistic approach.

In “The Discipline of Market Leaders”, Michael Treacy and Fred Wiersema pointed out that at an enterprise level a business may be grouped into three key domains: Operational Excellence, Product Innovation, and Customer Intimacy. Each of these domains function with interrelated processes. A key insight is that there are associations that have developed models, frameworks, and bodies of knowledge to focus on improvement in individual domains, but a process model built on a holistic framework has never been developed until today.
 
That framework and model is the Value Reference Model.