Strategies for capability modelling: analysis based on initial experiences

1. Strategies for capability modelling: analysis based on initial experiences Sergio España, Janis Grabis, Martin Henkel, Hasan Koç, Kurt Sandkuhl, Janis Stirna, Jelena Zdravkovic Authors are ordered alphabetically to reflect equal contributions to this work

2. Agenda 1. Introduction 2. The three strategies 3. Comparative analysis 4. Conclusion Strategies for capability modelling: analysis based on initial experiences

3. Capability management tackles business adaptation Strategies for capability modelling  Introduction  Businesses need a way to efficiently adapt not only their services but also the IT infrastructure for delivering them.  One of the key features is to explicitly capture the delivery context of customer services and to provide mechanisms for configuring or generating its delivery.  Capability-driven design and delivery (CDD) is an approach developed in the EU-FP7 project CaaS. FP 7 ICT Programme Collaborative Project no: 611351, http://caas-project.eu 3

4. Background on Capability-driven design and delivery (CDD) 4 Strategies for capability modelling  Introduction  A vision of the CDD methodology. Berzisa, Bravos, González, Czubayko, España et al. Capability Driven Development: An approach to designing digital enterprises. Business & Information Systems Engineering A capability is the ability and capacity that enable an enterprise to achieve a business goal in a certain context. Method components:  Capability design  Enterprise modelling  Context modelling  Reuse of capability design  Run-time delivery adjustment

5. The research problem 5 Strategies for capability modelling  Introduction  Recently, work on CDD has focused on strategies for capability management that so far have been designed and applied independently of each other.

6. The research problem 6 Strategies for capability modelling  Introduction  Recently, work on CDD has focused on strategies for capability management that so far have been designed and applied independently of each other.  There is not enough knowledge about the differences among the strategies and their suitability for different enterprise contexts.  What strategies for capability modelling have emerged during the industrial use cases?  What are the differences between these strategies?  What are the preconditions of each strategy and the organisational situation under which they are most convenient?

7. Agenda Introduction The three strategies Comparative analysis Conclusion Strategies for capability modelling: analysis based on initial experiences

8. Overview of the strategies 8 Strategies for capability modelling  The three strategies  The strategies are mainly related to the Design phase.  Three strategies have emerged.

9. Overview of the strategies 9 Strategies for capability modelling  The three strategies  The strategies are mainly related to the Design phase.  Three strategies have emerged.  Each strategy consists of three steps (only step 1 is different):  Step 1. Capability design  Step 2. Capability evaluation  Step 3. Development of capability delivery application

10. Overview of the strategies 10 Strategies for capability modelling  The three strategies Berzisa, Bravos, González, Czubayko, España et al. Capability Driven Development: An approach to designing digital enterprises. Business & Information Systems Engineering  The three strategies are based on the CaaS metamodel (i.e. they share the same conceptual basis).class Capability metamodel Capability Goal Indicator Context Indicator KPI Context Set ProcessProcess VariantCapability Delivery Pattern Context Element Range Measurable Property Context Element Context Type ResourceContext Situation Context Element Value 0..* ↑ supports 1..* 0..* ↑ measured by 0..1 1..* ← measured by 0..1 1 1..* 1..* ↓ influences 0..* * → fulfills 1 0..* ↑ supports 1 1..* ↓ used for 1..* 1 * 1 ↓ has 0..* 1..* ↓ motivates 1..* 1..* ↑ consists of 1 1 ← designed for 0..* 1 ↑ used for 0..1 11..* 1 ↑ consists of 1..* 11..* 1 ↓ has 1..* 1..* → measures 0..1

11. Goals-first capability design 13 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns

12. Goals-first capability design 14 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Goal model Experience: The starting point can either be goals / visions or existing issues.

13. Goals-first capability design 15 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Goal model KPI definition Goal KPI How it is measured Expected value G-RS-1 To optimize SOA platform Aggregation of all goals that support Adding the value of all the goals 4 out of 5 sub goals achieved G-RS-2 To improve users satisfaction Percentage of customers who rate their experience with SOA platform as “Very good” or “Good” Percentage of customers who rates their experience with SOA platform as “Very good” or “Good”/ Number of customers who rates. Percentage of customers who rates their experience with SOA platform as “Very good” or “Good”/ Number of customers who rates > 75% G-RS-9 To be able to provide the service registration Registration service availability To be able to provide the service(Yes/No) , available time service and received requests Yes and time service available > 99% of time and to be able to handle > 95% of received requests G-RS-13 To provide a fair treatment with waiting lists People in waiting list Measuring the time people join the waiting list compared to the order of it. The early the citizen registers, the higher in the waiting list Number of people in waiting list < 20

14. Goals-first capability design 16 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Goal model KPI definition Goal KPI How it is measured Expected value G-RS-1 To optimize SOA platform Aggregation of all goals that support Adding the value of all the goals 4 out of 5 sub goals achieved G-RS-2 To improve users satisfaction Percentage of customers who rate their experience with SOA platform as “Very good” or “Good” Percentage of customers who rates their experience with SOA platform as “Very good” or “Good”/ Number of customers who rates. Percentage of customers who rates their experience with SOA platform as “Very good” or “Good”/ Number of customers who rates > 75% G-RS-9 To be able to provide the service registration Registration service availability To be able to provide the service(Yes/No) , available time service and received requests Yes and time service available > 99% of time and to be able to handle > 95% of received requests G-RS-13 To provide a fair treatment with waiting lists People in waiting list Measuring the time people join the waiting list compared to the order of it. The early the citizen registers, the higher in the waiting list Number of people in waiting list < 20 Experience: Guidance needed! E.g. “What would be a lead indicator to show when there is a high risk that my capabilities will not fulfill the goals?”

15. Goals-first capability design 17 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Capability identification Capability id Capability name Goal id CP1 Dynamic Service Registration G-RS-9 CP1.1 Dynamic Marriage Registration G-RS-10 CP1.2 Dynamic Swimming Pool Registration G-RS-11 CP2 Safe Payment Provision G-RS-16 Simple view of the capability model

18. Goals-first capability design 20 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Context model (graphical)

19. Goals-first capability design 21 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Context model (graphical) Context model (tabular) Context Element C.E. Ranges Meas. property Value determination Capability Online payment availability [Available; Not available] Online payment availability Nagios report CP1 – Dynamic Service Registration CP2 – Safe Payment Provision Type of the day [Working day; Weekend; National holiday] Type of the day isWorkingDayDBQue ry(Day, Municipality) CP1 – Dynamic Service Registration Temperature [Cold; warm] Degree Centigrade If DegreeCentigrade (date, location) > 20º Then value = warm Else value = cold C1.2 – Dynamic Swimming Pool Registration Municipality size (Citizens) [Numeric] Number of citizens numberOfCitizens(M unicipality) CP1 – Dynamic Service Registration Geo location [Numeric] Geo location SOA report CP1 – Dynamic Service Registration

21. Goals-first capability design 23 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Context model

22. Goals-first capability design 24 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Context model Context-aware business process model

25. Goals-first capability design 27 Strategies for capability modelling  The three strategies G1. Analyse the overall business vision and goals G2. Identify specific capabilities required by goals G3. Analyse the existing business processes G4. Identify and model the context affecting the identified capabilities G5. Analyse and define process variants G6. Model delivery adjustments G7. Review and/or incorporate relevant patterns Pattern specification Name Payment process Problem If there is few payment options available, the risk is that the payment cannot be done, and the service will not be used. Context Online payment availability Solution Usage guidelines The process offers two options to provide a payment method, if the online method is not available, then a bill is printed. Keywords Payment methods.

26. Process-first capability design 29 Strategies for capability modelling  The three strategies P1. Define scope P2. Define level of granularity P3. Identify processes/ activities/ tasks P4. Analyse exiting BPM and refine if necessary P5. Identify/ name capability to be delivered (P6) Update or (P7) develop goal models and KPI P8. Relate goals, capabilities, processes P9. Identify and model context P10. Model delivery adjustments P11. Link components

27. Process-first capability design 30 Strategies for capability modelling  The three strategies P1. Define scope P2. Define level of granularity P3. Identify processes/ activities/ tasks P4. Analyse exiting BPM and refine if necessary P5. Identify/ name capability to be delivered (P6) Update or (P7) develop goal models and KPI P8. Relate goals, capabilities, processes P9. Identify and model context P10. Model delivery adjustments P11. Link components Experience: Select the business service with a high quality of process description

31. Process-first capability design 34 Strategies for capability modelling  The three strategies P1. Define scope P2. Define level of granularity P3. Identify processes/ activities/ tasks P4. Analyse exiting BPM and refine if necessary P5. Identify/ name capability to be delivered (P6) Update or (P7) develop goal models and KPI P8. Relate goals, capabilities, processes P9. Identify and model context P10. Model delivery adjustments P11. Link components Goals Model

32. Process-first capability design 35 Strategies for capability modelling  The three strategies P1. Define scope P2. Define level of granularity P3. Identify processes/ activities/ tasks P4. Analyse exiting BPM and refine if necessary P5. Identify/ name capability to be delivered (P6) Update or (P7) develop goal models and KPI P8. Relate goals, capabilities, processes P9. Identify and model context P10. Model delivery adjustments P11. Link components Simplified view of capability-goal- process relation

33. Process-first capability design 36 Strategies for capability modelling  The three strategies P1. Define scope P2. Define level of granularity P4. Analyse exiting BPM and refine if necessary P5. Identify/ name capability to be delivered (P6) Update or (P7) develop goal models and KPI P8. Relate goals, capabilities, processes P9. Identify and model context P10. Model delivery adjustments P11. Link components P3. Identify processes/ activities/ tasks Experience: Guidance needed! Distinguish variability from standard decisions Experience: Guidance needed! Differentiate between process variables and context elements: Both originate during process execution Context Model (Tabular) Context Model (Graphical)

36. Concept-first capability design 40 Strategies for capability modelling  The three strategies C1. Analyse the existing concepts C2. Elicit candidate capabilities C3. Analyse dependencies between identified capabilities and existing business processes & goals C4. Identify the context affecting the identified capabilities C5. Analyse and define process variants C6. Model delivery adjustments C7. Review and/or incorporate relevant patterns

38. Concept-first capability design 42 Strategies for capability modelling  The three strategies C1. Analyse the existing concepts C2. Elicit candidate capabilities C3. Analyse dependencies between identified capabilities and existing business processes & goals C4. Identify the context affecting the identified capabilities C5. Analyse and define process variants C6. Model delivery adjustments C7. Review and/or incorporate relevant patterns Experience: Capability definition slightly more complex, since both process and goal models have an inherent level of hierarchy

39. Concept-first capability design 43 Strategies for capability modelling  The three strategies C1. Analyse the existing concepts C2. Elicit candidate capabilities C3. Analyse dependencies between identified capabilities and existing business processes & goals C4. Identify the context affecting the identified capabilities C5. Analyse and define process variants C6. Model delivery adjustments C7. Review and/or incorporate relevant patterns Experience: Complexity of mapping capabilities to goals and processes: One identified capability was mapped to several goals.

40. Concept-first capability design 44 Strategies for capability modelling  The three strategies C1. Analyse the existing concepts C2. Elicit candidate capabilities C3. Analyse dependencies between identified capabilities and existing business processes & goals C4. Identify the context affecting the identified capabilities C5. Analyse and define process variants C6. Model delivery adjustments C7. Review and/or incorporate relevant patterns Context Model (Graphical)

45. Strategies for capability modelling  Comparative analysis Aspect of comparison Strategy Goal-first Process-first Concept-first Primary view on capabilities A capability fulfils key organisational goals A capability are operationalised as set of processes A capability encompass the management of key concepts Preconditions with respect to models Ideally, top-level organisational goals should be defined. Pre-existing business process specifications or process-oriented culture. Pre-defined management structures, product structures or other conceptual models. Stakeholders required Different levels of management personnel Domain experts, product owners, strategic management. Product managers/owners Effects on the succeeding steps Provides a comprehensive base for capability monitoring by the use of KPIs. Provides a detailed specification for context-aware variability management. Provides a base for having the concept of capabilities as the main subject for organisational analysis and change management. 49

46. Strategies for capability modelling  Comparative analysis Aspect of comparison Strategy Goal-first Process-first Concept-first Characteristics of enterprise Organisations with a high degree of adaptable/non-routine work. Mature organisations with well-established processes. Organisations with a well- defined and stable organisational or product structure. Degree of flexibility of the strategy Can also start with visions or existing issues. Highly iterative and incremental modelling process. The strategy can cope with ill specified goal or concept models. Process reengineering requires thorough revision of capability designs. Can cope with different levels of concept granularity. The drivers for capability definition are slightly more complex. Is flexible with regard to the degree of specification of business processes. Impact on the organisational culture Reinforces strategic vision and clarifies the IT-business alignment. Improves the perspective of the enterprise (or service) context. It brings perspective over the organisational concepts by identifying (highly- cohesive and lowly-coupled) groups of concepts. 50

48. Conclusion 52 Strategies for capability modelling  Conclusion  Capability Management tackles business adaptation  Capability-driven design and delivery (CDD) is an approach for capability management developed in the EU-FP7 project CaaS  CDD approach is supported by a set of method components  Recently, work on CDD has focused on strategies for capability management  Each strategy consists of three steps, capability design, capability evaluation and development of capability delivery application.  They share the same conceptual basis, namely the CaaS-meta model  There is not enough knowledge about the differences among the strategies and their suitability for different enterprise contexts

49. Conclusion 53 Strategies for capability modelling  Conclusion  Proposal and comparison of three different strategies for capability modelling.  Goals-first strategy: Capabilities exist as a way to fulfil long-term business objectives. Suits organisations with a high degree of adaptable/non-routine work.  Process-first strategy: Capabilities delivered through enacting business processes. Suits organisations with well-conceived and stable business processes  Concept-first strategy: Capability identification via a group of concepts and their relation to other groups. Suits organisations with well-defined products or organisational structures  Future work  Goals-first strategy: Guidelines for the identification of KPIs that can be used for the monitoring of capability delivery  Process-first strategy: Guidelines to identify context elements, to distinguish variation points from decision logic and to model process variability efficiently  Concept-first strategy: Guidelines to identify capabilities and relate them with goals/ processes

Strategies for capability modelling: analysis based on initial experiences

CaaS EU FP7 Project

Strategies for capability modelling: analysis based on initial experiences