Cloud Models - Execution for the Digital Age

Cloud Solutions De-Composed

Physical Types

We know there are public, private and hybrid.

We know the National Institute for Standards Technology defines the cloud with three components

• Platform as a Service - PaaS
• Infrastructure as a Service - IaaS
• Software as a Service - SaaS

Getting the eRate program into action

A show enabling reality TV as the world takes a people centered design strategy into action revitalizing cities through those with the greatest need, putting people to work in the newest technologies. 

Voice, Video and Data

We need to outfit our communities for the 21st century

• When video conferencing first hit the market we were running on fax speed communication lines
• It took nearly 3 years to build out the infrastructure
• We have yet to adapt for video at 400 lines of resolution 
• HDTV is pushing 1100 lines of resolution
• We are also sharing lines with data and voice
• Before the new millenium we noticed quality and intermittent failures that we traced to data and video sharing the same lines 
• We have yet to adopt a dedicated data, dedicated voice and dedicated video delivery.
• Let's not be concerned with the fact that we CANNOT encrypt data on a shared video line
• Let's not be concerned that video does a burst behavior that requires us to lower the detection on the behavior to operate normally, exposing ourselves to evil insiders and outside threats. 
• Let's not be concerned that turning on video then turning off allows a back door through the same feed when you use ACL's or API's, then of course we don't want to lose sleep of machine to machine tunneling.  

We need to upgrade our schools

• Some of the nations most violent attacks have been children against children 
• We need better visibility into these threats before they escalate-prevention is the best remedy to combat violence.
• We must do things differently and the time is now. 

Adopting a single record for every consumer - extending our view to customers and suppliers.   

We know there are different size companies with different risk appetites.

• We need the ability to adapt and recover in various models based on size and liability
• Enterprise size companies - Hybrid and Private cloud
• Global Footprint
• Unique and Complex
• Federal -Hybrid, Private and Public Cloud Publisher
• National - Footprint
• Sponsors - Service Providers
• Unique and highly sensitive
• Small and Medium-Public Cloud
•  Common Approach makes the solution viable and sustainable
• Retail -Public Cloud
• Consumer business model

Person Centered Design 

We know we must do technology differently

• People centered services enable scale, resilience, and sustainability 
• Consumers have chosen - simply look at the UN-reachable audience and the direct connections to those same people for years we had no way to reach these consumers.

Public Sentiment "a Public Officials Liabilities"

Measure the current process and duplication of customers or contacts in your databases.  Every duplicate record represents a threat to the person who's being duplicated. 

• Go from pull to push using lean six sigma in government and industry.

• We can measure the number of times we collect information from a variety of sources. 

Using GIS systems to segment our audience for a single record and an ability to manage a people centered design. 
 

1. Design products and services for Education

Business Process 

1 Design Products and Services 

Strategy target customers from the education sector ie citizens by geography ideally we have one model for international views, a national view merely changes the geography range to more granular, then down to county, then down to district and then to a school.  One model with copies for re-use based on needs of the subscriber.  The key, no actual private data is released rather the metrics associated with the users demographic and social variables.

Corporate Strategy-Social Responsibility

1. To increase participation of students to curb the drop out ratio.

• We can insert information from census and education systems to monitor before and after simulations
• We can change variables to understand a complex problem 

The diagram supplies the following;

• As an example the top graphic supplies the stock and flow diagram for an audience by milestone or group of students in a school district with associated variables that may cause a change in the student outcomes measured. 

The second part of the graph a party management capability defined in detail.

Outcome: Measure and analyze your target audience

The two are parts of the story which helps us to understand we DO NOT need to have citizens lose their economic, public and private life and have a way to protect their physical and social life in the process. 

Business Case ABM Process

ABM - Gap Analysis

 

Ahsan covered the subjects well with his identification of various capabilities at level 3 

My contributions to the same thread would be Level 2 in a model where we are using generic concepts to benchmark and baseline every company in any part of the world.  

1. Design Strategy and Vision 

1.1. Define the business concept and long term vision-not evident

1.2. Develop business strategy

1.3.Manage Strategic Initiatives

• Converge the create, update, change and read of any of the (3) Management Capabilities
• Party
• Item
• Financial Account (chart of accounts and P&L)

 

 

 

 

 

 

 

 

 

 

APQC Business Process Framework Level 3 from L2 1 Design Strategy and Vision

Level 3 Below 1. Design Strategy and Vision

No evidence of ay of the above processes

Level 4 Below 1. Design Strategy ad Vision
No evidence of the above processes

Ideally, the client could be working on these process task in the prescribed order and map all current processes up to process 2-5 of the APQC business process framework in order to align with both Ahsan and my original suggestion. 

Theory of Constraints applied in a generic Enterprise and Business Architecture

The APQC Business Process Framework and promoting the adoption for sustainability.  

Materials adapted in support of the alignment between Enterprise and Business Architecture with the business process.  

1. Design Strategy and Vision 

Row 2  Business Process Inventory and Motivation

Ensure an organizational design with sustainable and resilient business models at the highest points allowing lower level flexibility.

Enable sustainable product and service development, to the customers ideal of quality.

Enable Innovation with all the various degrees of complexity, segregated from the core and advanced product release business models.  

Enable resources access to robust Research and Development tools and systems.  

Enable the highest confidentiality with a limited audience entitled to R&D work.

Enable Resource skills at macro level to allow agility as the market changes.  

Prezi - Open Source Presentation Tool 

Principle process approach 

Prezi template for a small business owner or coach to guide a small business owner.

Principle of systems for management decisions

Understanding management cybernetics rule number 5 

Principle of Fact Based Decisions

Enabling innovation, advanced and core as three distinct business models.
ie, applied Theory of Constraints
Each of the three types of offers have various revenue recognition limitations.

Innovation 

We apply the highest complexity factor against this type due to thenew offer.
Got to Market spans the longest period of time.
Requires far more checks and balances before maturing to First Customer Ship.
No invoices may be recognized until post FCS.  

During Development we are in the southbound direction working closely with our suppliers.
We are in the slow lane.
We work best with the highest skilled resources.
We can impede or insert more effort on low touch processes if we are not segregated.



Advanced

There are many use cases for the middle lane.   The primary purpose allows slower deals to merge away from the fast lane allowing  a consistent rate of speed.

The following must be considered for the customer experinence.

Management Cybernetics Principle 5 aligned to TQM Principles Process Approach and Management by System

Management Cybernetics

According to Stafford Beer cybernetics represents the science of an effective organization.

A one page reference on the business strategy outcomes

5. Hierarchy Principle: Complex natural phenomena are organized in hierarchies with each level made up of several integral systems.  

Management Cybernetics 

People centered design 

We begin the process with a core set of variables that a user must have supplied from different IT service providers, yet the dependencies when sequenced appropriately enables strong access management.  

Resilience test scenarios and issues caused by change will be far less disruptive with a uniform set of services bundled and sequenced to ensure the least opportunity for threats.  The recovery time objective test performed as a task in any SDLC release must follow the same sequence and test a super user and user from each function.  

In the above graphic we can note the two rows following the first which acquire the fact records from the ERP Master for party, financial account and offers.  The outcome of the two rows is part of the first process.  

1. Design strategy and vision 

Corporate Strategy, will be planned and the outcomes result in a business strategy

We implement the business strategy to enable execution of the operational strategy using two transaction sub-systems which intersect with the business process system.  

Organizational Hierarchy and Profit and Loss Hierarchy must begin with the CEO at Level 2
Each officer reporting into the CEO Level 3-each officer has an associated business process and functional users within the process who's performance defines the officers Profit and Loss and Management performance.

Levels 4 and 5 are shared and granted visibility across each business process and visibility and approvals typically on all financial transactions performed during execution of the operational strategy.    

The Human Resources and Corporate Finance users at Level 4
All supporting resources reporting directly into any Officer Level 5

To help in creating a mental model think of a highway, every highway goes in two directions.  Most have 3 lanes with  motor vehicle and trucks or motorcycles.

The great thing about this concept is we are not going to dictate the type of transportation nor define the make and model.  

Every company will have different suppliers who provide the make and model as an expense which you will sell to a customer based on the customer's preference.  

Bottom line; your expenses are the results of working in a mutually rewarding supplier relationship.  The work you do with the customer is based on a deduction made with the customers order offset by fully loaded cost.  

The profit and loss hierarchy has the same structure with different values associated rather than the people in an organization hierarchy.  Each officer has a group of department codes which will correspond with a company, an a location.  These are fixed values in the P&L hierarchy the changes may be to a persons relationship with a given set of codes.  

The transaction sub-systems will be pushed to the P&L hierarchy as either an income or an expense.
  
The planned resource or headcount budget enables the process or acquiring talent and managing resource expenses, while the records produce the performance measure allowing HR a higher position in the hierarchy systematically ensures visibility for all people request.

The same is true for corporate finance, who must ensure the planned expense and income are consistent with the forecast.  

Create, update, and archive of Master Records 

A user group accountable for the setup or create of a new employee, supplier and customer record in the master records must be monitored for both procedural and system events.  Quarterly Sox 404 assurance must coincide and validate the accuracy for the accountable executive providing their personal assurance for the companies reported performance.  

End Business Management System and Business Strategy implementation

Wicked Mess Type - Subjective Performance Reporting

People generally avoid using strong normal hierarchies in doing so most object to and have completely abandoned using such core practices in every way.  Summary views and consistency suggest a lack of governance on financial transactions fact based records.  Example; if you are not using canned reports from ERP it might imply you are not using the designed features and have introduced an opportunity for in-efficiencies and lower effectiveness.  

Looking at the graphic above we can look either horizontal or vertical and systems or sub-systems are represented in different chevron's or green or blue chevron's across the top and the bottom of the function cheveron's.  

If we conclude that the top row in the graphic above represents the business management system components which must be controlled by corporate policy and procedures followed without offline or backend batch processing, we have enabled strategy by well defined structures to aggregate users within the organization across various technology domains.  

The following graphic allows the infrastructure or IaaS view into the design.  Again keep the mental model of the chevron's in this case the storage containers are represented as spheres with corresponding triangles.  The primary or shown graphic transfers the before graphic by grouping of the process inputs with user relevance by process and functional accounting for cost and support becomes less of a mystery and more aligned to the natural order of the operational lifecycle and user information transitioning across the boundaries of the organization.  

The outcomes of the implemented business strategy must summarize into the five capabilities to ensure all regulatory and corporate liabilities are managed and contained with the highest confidentiality and zero data loss.  

The benefit and business value acquired by carving out the legal and financial threats allows an organization to quickly ensure sustainability has been met with governance by design.  Effective design of key controls.  

Enabling systems with the appropriate dependencies and integration points ensures a limited scope for core business management which aligns to the objective outside in or Real World requirement without disruption to the Fit for Purpose dynamic organizations each company has made part of their DNA or defines the culture within each company.   

The primary structure of the data at rest in ERP master records must be of the highest quality.  Nulls are not acceptable in most cases, the field must be de-activited rather than open to non-authorized process variances.  

Financial transactions are critical to the companies sustainability and the records capturing the point in time events must be retained for as few as 7 and beyond in some cases.  

Row 1 Executive Perspective with Revenue

Executives Row 1 in Zachman Framework

They want to run the organization in a way that enables the company to respond to market changes a sustainable product development lifecycle.

Myth 

Every company has a new or unique set of customers.
Every contact is a potential customer.
Every deal should be considered for additional discounts.

Fact

Every company in the world is one of many that many companies will consider a supplier when you sell to a customer.
You are expected to meet the standards the other suppliers they work have and you are measured for the ease of doing business.
A commitment made at the time the end user from the customer agreed to issue a purchase order, the information they exchanged with sales "CUSTOMER EXPECTATIONS" are the terms of the agreement.

Opportunity Management 

The beginning of the revenue transaction capability.

A ship to location of the customers choice must enable accurate pricing and tax or shipping fees.  State and Zip Code should return the same customers branches associated with the customer and within the geography of the user making the request.

The tax and pricing for any orders must be factored even if they are not presented to the customer or even without presenting them to the sales person.

The parallel work to be done by transformation and change management teams would be the decommissioning of legacy applications.

• 1st priority enables a cloud customer solution
• Rx - Turn off the data fields in your countless number of applications and acquire from a trusted cloud source.  

Every company will expand their customer base from a list of customers that may be shared by hundreds and tagged for the revenue transaction capability in your instance of a hosted cloud or public cloud solution.

Every company can behave in predictable ways, small and medium are regional and aspire to go beyond the geographical area they may cover, however response and business regulations often are not a good return for the smaller and medium customer.

Consumer or commercial model

Every company or Enterprise type customer will have 1000 employees or more, orders are few but largest in revenue and often the most complex.  Every customer of this type has the luxury of being unique.



50% or more of these types of customers are headquartered in the US.

• Many of these customer types are located in Silicon Valley, Los Angeles, Portland and Seattle.
• All of these types of customers do business with US companies. 
• Therefore they are subject to Sarbanes Oxley regulations. 
• The same type customer has a unique set of negotiated terms.
• The same type customer may be a supplier for your organization with 1 or more purchase orders issued to your organization.

In the same day you may issue 1 or more purchase orders to the customers in a role of a supplier.

REVENUE TRANSACTION CAPABILITY

If true, then we would gain the most value if we re-use the opportunity 14 data points into each of the downstream record headers.  The stakeholders who must approve have the header and warning of the expected commitment and they are in a pro-active position to meet the demand.

Re-use Business Service

14 data points to all other records and process stakeholders.

If we have one or regional list of all legal entities with associated legal terms negotiated in advance.  We must honor those terms on every transaction.

Example; user login's to a cloud application based on the users role and location a new opportunity would return a callers content id and the contact name and phone they are calling from.  The number should be cross referenced against the company the caller is representing or prompt a buyer agent from the customer to join the call.

Observation with Stock and Flow Expense and Revenue with Feedback loops for continuous improvement

Observation

Discreet or Indiscreet observation

Design thinking begins with "Understanding" your clients "current state".

You must then "Observe", in my mind we begin with the end in mind, quality management systems are the first to come to mind.

How about framing the reason as such, ethical practices as a competitive advantage.


Total Quality or ISO Principles 1- 8



The measurement according to systems rather than individual parts enables a mature organization to respond to market changes. 

Measuring performance for top down purposes

Outside in and real world expectations are crafted in the Corporate Business Policies.  In large organizations and agencies including branches and central support agency, as an example the Treasury. 

Measuring performance from a bottom up perspective

Inside Out or Fit for Purpose view of the organization.  We have functional views into the way the business runs, this layer allows the functional flexibility. 

Involving employees in the decision making and continuous improvement requires a thorough and consistent way to measure employees competencies. 

Principle of Continuous Improvement

Continuous Improvement applies to most types and infers growth over time.

In many systems thinking scenarios the feedback loop allows for ongoing flexibility.

What you do not have in this scenario?

• Not Kaizen
• Not Zero defect (TQM)

Using a feedback loop in the case of an indirect defect makes sense and would not be in conflict with decisions management can influence.

See insight maker

How do we measure and monitor for Continuous Improvement?

I remain in the principles levels in order to allow greater flexibility. If you monitor discreetly, you can remain macro for the executives and fine grain by region or function.

Feedback Loop - A way to ensure measurements without bias, enable feedback loops at leverage points. In many system thinking circles a feedback loop should be used sparingly.

This prescription agrees with those experts.

A feedback loop at a leverage point would suggest an opportunity at a macro level versus fine grain monitoring. Another way to enable or elect to be more diligent with fine grain feedback loops in various pre-defined areas. le the executive layer with discreet monitoring while the business managers may this might be to consider discreet monitoring.