VCG August 2005 Newsletter 

Hello,

Welcome to the Value Chain Group newsletter.  This month we review the research programs underway validating the Value Chain Operations Reference (VCOR) model.   We highlight the Metrics Classification research program at Arizona State University, and update you on the Federated Enterprise Reference Architechecture (FERA) progress and the Integrated Process and Technology Framework (IPTF) formulation. 

We hope you find this newsletter informative and encourage you to join as a member.  Please forward this newsletter freely to whom you believe would be interested.  We welcome your comments. 
                                    Read July 2005 Newsletter

Metrics Structure

Arizona State University, under the guidance of Dr. Tom Callarman of the business school and Dr. Dan Shunk of the engineering school, teamed with the Value Chain Group to expand the metrics and benchmarking capability of VCOR.  The VCOR model consists of 7 Performance Attributes and over 600 Metrics suggestions. They span the activities performed by the extended enterprise with particular emphasis on the measuring the complex interaction between multiple process groupings, such as Develop and Support, or Market and Research.  Ultimately, the interaction across the entire Value Chain will be investigated.   See VCG's Guiding Principles of Performance Measurement of the Value Chain.

 
Initially, roughly one-third of the metrics had been validated in use with definitions, formulas and usage within VCOR.  Another third had some usable information associated with them and another third were pure suggestions by members. This project focused on the metrics’ consistency and further validation by reclassifying into more logical categories, assigning formulas as required, and aligning them with Performance Attribute Scorecards.

Performance Attributes of the Value Chain include:

Members can find the results of this research in VCOR through the ValueScape (demo download) environment and will be presented at Brainstorm BPM Conference, Washington, D.C., Sept 22-23, 2005

Federated Enterprise Reference Architecture (FERA)

Collaborative Product Development Associates (CPDA), Intel, Value Chain Associates and the Automotive Industry Action Group (AIAG), with sponsorship of VCG, has investigated FERA as an Information Technology classification schema for enabling collaboration across the Value Chain.  FERA is comprised of 7 inter-related entities:

Integrated Process and Technology Framework

Two independent but reconciled process representations that facilitate the mapping of business processes to core collaboration capabilities for accurate, fast and flexible implementations of the process models in a federation.  Business is represented by business processes defined in terms of value chain reference models.  Information Technology is depicted as an architectural representation to allow mapping of collaborative process models to required resources.  This research is to be reported at the Supply Chain Council's Users Seminar, Arlington, VA, Sept 21, 2005 and the Brainstorm BPM Conference, Washington, D.C., September 22-23, 2005.

These research efforts are examples of the collaboration underway to continuously improve VCOR to be the Value Chain Reference framework of preference globally, enabling next generation Business Process Management.