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Nowaday, there are so many strategy model and enterprise model, however I see a gap between those things, for my point of view, there is no real method or solution to connect those things. Currently, I am doing a research and hope you friends can give me some idea to do that. I started with business model canvas and try to put it into enterprise model (MOOGO). The idea is if I change something on Strategy level, how it can react to the process level and if I change something on the process, how it impact on strategy level, which is the general way to find it down and solve it ?
Thanks and hope you guys can take a look and give me some ideas
The challenge here is you seem to assume a linear relationship between the strategic level, business model, and the operational level, processes. It isn't that clear cut.
The business model represents the blueprint for how the business strategy is to be implemented. It elaborates what the business is supposed to do and for whom value is created. It also looks at the sustainability of the business as well as the partnerships necessary to create and deliver that value. The business model also touches on elements such as the strategies to be followed in acquiring and retaining customers. There are many elements of the business model that have no equivalent in process descriptions.
Simplistically the business model describes what is to be done, and processes describe how things are to be done. One can change processes without affecting the business model, i.e. the what is still being delivered only differently. Likewise it is possible making changes to, or leveraging new information and communication technologies to open new or change current things that are being done.
You can draw relationships between the strategic level and the operational level but that requires combining different approaches and linking them. The business model canvas Key Activities can be paired with Capability Modelling to link the strategic and operational levels. The capabilities identified in the canvas can be modelled out for capability's three main components - organization structure, processes and assets (ICT and Business). Through Capability modelling you can link the strategic level of Key Activities with the operational level of processes
Thank you so much Mike and I am sorry for late reply because I need to think about your advice. I am still in the process and I get your point but somehow I still do not know how to do it.
To connect the strategic level and operational level, my idea is building KPI for each elements of Key capabilites. If it reaches a certain level that means something change from operational or strategic level will impact on the rest.
However, I think it is not enough and the way to build KPI is also problem for me because in the process, I can calculate KPI if the business change something but what happens if they delete or add an action. Moreover, economy of scale and economy of scope are quite difficult to calculate in short term.
And also, to calculte KPI, I need something like companion frameworks as you mentioned before, but I still have no idea how to develop it, what the key/ elements or method I need to use to develop a framework?
I am really looking for your next advices!
There still seems to be a lot of confusion between the levels of abstraction. At a strategic level one sets goals (targets). Key performance indicators are the things you are going to measure, at an operational level, to determine whether or not you have achieved the goals - or at least to measure your progress towards the goal.
Since capabilities are strategic, there are no KPIs for capabilities. KPIs are set at the operational level looking at delivery, quality, improvement etc.
Here is an example of how one might go about this. Using the business model canvas set the target business model (specifying innovations or business transformations). If the organization is using something a balanced scorecard approach, set the strategies necessary to achieve the new state in a Strategy Map. From the strategy map identify the required projects to implement the strategies. The projects are put into a project portfolio management using Balanced Scorecard, wherein you identify he KPIs for each of the projects.
Thank you for being so patient with me! Following your advices for finding the relationship between key capability from the strategic level and key activites from BM Cavas, I still dont know how to link those things together. I know through key activities, it can describe the organization, processes and assets of key capability but then what happen? I understand you said the last time that something change in operational level, does not mean the strategic level have to changed subsequently. However, I still think even if the changes in operational level do not impact on strategic level, it should impact something eles.
Besides, my task is to find the relationship between operational level and strategic level but if I could not find it or it is not necessary to find, I should give some reasons and some explanations for that thing. I would like to know your point for that thing. Moreover, If possible, could you recommend me some refferences or book that maybe concern with my task.