Applying Quality Function Deployment method for business architecture alignment

Applying Quality Function Deployment method

for Business Architecture Alignment

Dmitry Kudryavtsev

Lev Grigoriev

Ivan Koryshev

1, 2, 3

1

1

1 2 3

ECIME 2014

8th European Conference on

IS Management and Evaluation

University of Ghent

Citation: Kudryavtsev D., Grigoriev L., Koryshev I. Applying Quality Function Deployment method for business architecture alignment. Proceedings of the

8th European Conference on IS Management and Evaluation (ECIME 2014), Ghent, Belgium, 11-12 September 2014, 118-127.

Applying Quality Function Deployment method for Business Architecture Strategic Alignment, ECIME 2014

Outline

1. Introduction: the problem of Strategic Alignment

2. QFD and its role in strategic management

3. Business architecture alignment method (Way of

thinking and working)

4. Meta-model and viewpoints (Way of modeling)

5. IT support - ORG-Master (Way of supporting)

6. Application of the approach

7. Related work

8. Conclusions

2


Strategic alignment and basic works

Everyday operations, transformation efforts, performance measures and

personnel behaviour at all levels must be aligned with strategy.

The need for alignment arises when distinct disciplines influence each other

and their coordination is required to achieve certain goals.

Labovitz, G., & Rosansky, V. (1997). The power of alignment: How great companies stay

centered and accomplish extraordinary things. John Wiley & Sons, Inc.

Henderson, J. C. and Venkatraman, N. (1993) Strategic Alignment: Leveraging

information technology for transforming organisations. IBM Systems Journal, 32(1), pp 4-

16.

Kaplan, R. S., and Norton, D. P. (2004). Strategy Maps. Harvard Business School

Publishing, Boston, Massachusetts

Kaplan, R., & Norton, D. P. (2006). Alignment: Using the balanced scorecard to create

corporate synergies. Harvard Business Press.

Joshi, M. P., Kathuria, R., & Porth, S. J. (2003). Alignment of strategic priorities and

performance: an integration of operations and strategic management

perspectives. Journal of Operations Management, 21(3), pp 353-369.

3


A Guide to the Business Architecture Body of Knowledge™

(BIZBOK™ Guide)

4


The focus of the current paper

• How to make enterprise activities strategy-focused

• How to build strategy-oriented transformation and

improvement plans

• How to align a performance measurement system

• How to translate business model concepts into everyday

business operations

inspired by the paper of de Bruin and Rosemann (2006) on strategic alignment

of business process management

+ architectural work is model-based

the method requires quite a high degree of formality

5


The aim of the current paper

To suggest a model-oriented method for business

architecture alignment, which solves the following tasks:

• Align strategic objectives with stakeholder’s

concerns and customer value proposition,

• Prioritize firm’s activities (behavior) based on

strategic objectives,

• Align performance measurement system,

• Identify and prioritize development projects

(transformation program) and improvement plans.

6


Quality Function Deployment method

“method to transform qualitative user demands into

quantitative parameters,

to deploy the functions forming quality, and

to deploy methods for achieving the design quality into

subsystems and component parts, and ultimately

to specific elements of the manufacturing process”

Akao, Yoji (1994). "Development History of Quality Function Deployment". The

Customer Driven Approach to Quality Planning and Deployment. Minato, Tokyo

107 Japan: Asian Productivity Organization. p. 339.

QFD helps transform customer needs (the voice of the customer) into

engineering characteristics (and appropriate test methods) for a

product or service.

7


Basic QFD structure or “The House of Quality”

Source: Govers, 1996

8


“The House of Quality” example

Hauser, J. and Clausing D. (1988). “The House of Quality,” Harvard Business Review,

66 (May–June), pp 63–73.

9


Cascade of QFD charts

Source: Govers, 1996

10


Strategic QFD approaches

Table 1. Single matrix strategic QFD applications

Table 2. Multiple QFD matrix approaches to strategic

decision making

Reference Whats Hows

Sullivan (1988) Means Objectives

Uber, Gigler, 1994 Organization goals Corporate programs

Reference 1st level Whats 1st level Hows /

2nd level Whats

2st level Hows/

3nd level Whats

3st level Hows/

4nd level Whats

4st level Hows

Day (1991) Company vision Business

objectives

Strategies Action plans Responsibilities

Crowe and

Cheng (1995)

Business

strategies

Functional

strategies

Manufacturing

strategies

Action plans Detailed tasks

11

Hunt, R. A., & Xavier, F. B. (2003). The leading edge in strategic QFD. International

Journal of Quality & Reliability Management, 20 (1), pp 56-73.


Strategic QFD role at different levels of business model change

Level Main models Alignment methods Main development

means

1. Business model

innovation

through the

resource

development

Basic methods:

Heat maps,

Strategy maps +

Balanced Scorecard etc.

Supporting analytical

decision making

methods, which help to

prioritize and choose

elements for basic

methods:

Strategic Quality

Function Deployment

etc.

Resource

development

projects

Programs

2. Business model

evolution through

the capability

development

Capability

development

projects

3. Operations

excellence through

the process

development and

improvements

Process

development and

improvements

projects

BM canvas

Capability map

Process architecture

12


Example QFD matrix for business architecture alignment

13


Multiple QFD matrix contents for business architecture

alignment (‘meta QFD matrix’)

Level 1st level

Whats

1st level

Hows/

2nd level

Whats

2st level Hows/

3nd level Whats

3st level Hows/

4nd level Whats

4st level

Hows

1. Business model

innovation

through the

resource

development

Customer

values and

other

stakeholder

concerns

Products/

Services

Activities Resources Resource

development

projects

Programs

2. Business model

evolution through

the capability

development

Customer

value

proposition

objectives

Primary capability

objectives

Support capability

objectives

Capability

development

projects Primary capabilities Support capabilities

3. Operations

excellence through

the process

development and

improvement

Objectives

from

Customer

and

Financial

perspective

Primary process

objectives

(Internal perspective)

Support process

objectives

(Growth perspective)

Process

development

and

improvement

projects Primary processes Support processes

14


The business architecture alignment process for the 2-nd level

of business model change (circles = steps)

Level 1st level

Whats

1st level

Hows/

2nd level

Whats

2st level Hows/

3nd level Whats

3st level Hows/

4nd level Whats

4st level

Hows

1. Business model

innovation

through the

resource

development

Customer

values and

other

stakeholder

concerns

Products/

Services

Activities Resources Resource

development

projects

Programs

2. Business model

evolution through

the capability

development

Customer

value

proposition

objectives

Primary capability

objectives

Support capability

objectives

Capability

development

projects Primary capabilities Support capabilities

3. Operations

excellence through

the process

development and

improvement

Objectives

from

Customer

and

Financial

perspective

Primary process

objectives

(Internal perspective)

Support process

objectives

(Growth perspective)

Process

development

and

improvement

projects Primary processes Support processes

1

2

3

4

5

6

15


Meta-model (Way of modeling)

is based on the following reference meta-models and ontologies (Osterwalder, 2004; Azevedo et al, 2011;

Meertens et al, 2012; Giannoulis et al, 2012; Roelens et al, 2013)

16


Viewpoints: goal-cascading matrices (Way of modeling)

17


Way of supporting: ORG-Master software tool

Knowledge distribution

Knowledge acquisition

Knowledge structuring and

integration

Non-structured and semi-structured

information

Integrated model

Diagrams

Matrices

“Internal”

representation

Diagrams’

Text reports

Table reports Classifications &

Matrices

“External”

representations “External”

representations

Grigoriev L., Kudryavtsev D. Non-diagrammatic method and multi-representation tool for integrated

enterprise architecture and business process engineering // Proceedings of 15th IEEE Conference on

Business Informatics (CBI 2013), 15-18 July, 2013, Vienna, Austria. PP. 258-263.

18

http://bigc.ru/publications/bigspb/metodology/pic/2013_Non-diagrammatic_method_and_multi-representation_tool_Grigoriev_Kudryavtsev_CBI.pdf








Enterprise

model editor

(classifications

& matrices)

Enterprise

model

Reporting

and

query

module

Documents

Diagrams

2

Meta-editor

Diagram editors

Query

results

Diagrams 1

Metamodel (incl. ontology)

Web-portal

Non-structured and semi-structured

information

Grigoriev L., Kudryavtsev D. Non-diagrammatic method and multi-representation tool for integrated

enterprise architecture and business process engineering // Proceedings of 15th IEEE Conference on

Business Informatics (CBI 2013), 15-18 July, 2013, Vienna, Austria. PP. 258-263.

19








Business architecture alignment matrix in ORG-Master

20



Enterprise

model editor

(classifications

& matrices)

Enterprise

model

Reporting

and

query

module

Documents,

Query results,

Web-portal

Diagram

editor

21


Application of the approach

This methodology or its parts helped to develop and

deploy:

• corporate strategies for 5 companies,

• business strategies for 7 companies,

• functional strategies for 4 companies.

Business Engineering Group provides consultancy, tools,

research, best practice models and training in the following

service lines: enterprise architecture management, business

model management, strategic business process management,

capability management, organizational design, knowledge

management and IT strategy.

Business Engineering Group has more than 15 years experience

with projects in Russia (from Saint-Petersburg and Moscow to

Vladivostok) and CIS countries (Ukraine, Kazakhstan etc).

22


Related work

Alignment methods for business behaviour / activities

links between goals / objectives and business processes (Kavakli,

Loucopoulos, 1999; De Bruin, Rosemann, 2006; Burlton, 2010), goals /

objectives and capabilities (Hafeez et al, 2002), goals / objectives and

development projects (Meskendahl, 2010).

Diagram-based languages for strategic alignment

e.g. Archimate with its extensions (Meertens et al, 2012) and VDML

(OMG, 2012)

Integrating meta-models

(Meertens et al, 2012; Giannoulis et al, 2012; Roelens et al, 2013)

QFD in the architecture development process

(Gammoh et al, 2010), (Mike Clargo, 2002)

23


Conclusion: Specialties of the suggested methodology

• Supporting analytical decision making methodology for

diagram-based methods, which helps to prioritize and

choose BA elements,

• Model-based (high level of formalization),

• Ways of thinking, working, modeling and supporting,

• Consistent approach for prioritizing different BA elements

(goals, value proposition elements, business capabilities,

processes, resources, development projects),

• Primary-Support division of activities.

24


Conclusion: Current/Future work

• Extended demonstration of implementation (e.g.

case study)

• More explicit evaluation

• Calculation plugin for the tool (ORG-Master)

25

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Thanks

Questions?

Dmitry Kudryavtev

[email protected]

http://www.linkedin.com/profile/view?id=17582861

https://twitter.com/kudryavtsev_d

Lev Grigoriev

[email protected]

Ivan Koryshev

[email protected]