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Product Mapping presentation for Thematix CBA Exam Prep
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Product mapping
- 1. + Business Architecture - Product Mapping Certified Business Architect Examination
- 2. 2 + Product Concepts Products are the way the business creates value for the customer-stakeholder. A Product is "the overall experience provided by the combination of goods and services to satisfy the customer’s needs” Products are constructed by work described by capabilities Products often support capabilities in the customer organization Products have a defined lifecycle Products can be decomposed into individual products Copyright © 2017 Thematix Partners LLC
- 3. 3 + Product Mapping Concepts Product Mapping an extended business architecture domain Products can be mapped to one another. Products belong to Product Lines, which are “a series of different products that form a group, all made by the same company” (BIZBOK Guide) A Product Family is a dimensional view of a Product or Product Line. Product mapping is not concerned with product management capabilities; instead, Product mapping concerns the relationship of Product to other domains Copyright © 2017 Thematix Partners LLC Product Product Line Product Family belongs to belongs to organized by is similar to
- 4. 4 + Product Mapping Principles A Product represents the combination of goods and services to satisfy the customer’s needs Products may be created and managed internally or by a business partner Product mapping relies on a clearly defined product(s). Product mapping may include product groups. Product is a volatile entity within business architecture Products are unique and non-redundant concepts Product mapping is constrained by a customer focus Product may be in varying states. Products map to other views of the business Products enable the packaging and delivery of capabilities Copyright © 2017 Thematix Partners LLC
- 5. 5 + Product Mapping Guidelines Determine the scope up front. Leverage existing sources of product information. Use established product names that are readily recognized by the business. Expand the map to include third-party product offerings. Define and leverage product grouping or family concepts Add additional relationships to other products where appropriate Eliminate redundancies Limit attributes of product within the business architecture. Validate the product mappings. Maintain the integrity of product mappings. Copyright © 2017 Thematix Partners LLC
- 6. 6 + Product Mapping Benefits Provides visibility into the overall product ecosystem Enables executives to target specific products or product lines in response to a given set of business strategies Provides a focal point to make product investment decisions Offers a point of focus for determining how to improve product performance Provides a basis for streamlining product design, creation, and packaging Provides an additional viewpoint for aligning value-specific context to certain views of the business architecture Offers visibility into effects of initiatives Copyright © 2017 Thematix Partners LLC
- 7. 7 + Basic Product Mapping Procedure 1. Establish a clear, business-wide definition of what a product (or related concept) will be within business architecture. a. Obtain various inventory lists or product sources b. Determine if there is a product line concept c. Establish a mapping for product line to product line (may be hierarchical or network), and a mapping of product to product lines d. If a second level product line category is involved, it would need to be called product family, domain, or some other name to distinguish it from the first level product line. e. Create similarity relationships between products as this allows for product substitution to satisfy a customer need 2. Define the aspects and qualities of customer satisfaction (the customer value proposition) and provide measures for them where possible 3. Define the product features that match the aspects and qualitied of the customer value proposition and capture them in one or more value items 4. Review the product mapping with subject matter experts, sponsoring executives and other stakeholders 5. Cross map product to other parts of the business architecture a) Business strategies drive the product lifecycle and cause the creation of new products b) Value streams define the creation of various aspects of customer satisfaction (utility, aesthetics, warranty, durability, …). Associate the value items with their value streams. c) Business units may "own" or be responsible for the management of a product d) Initiatives may improve the customer satisfaction resulting from a product or improve the efficiency with which the product is produced e) Capabilities represent the company's ability to produce outcomes that directly or indirectly result in a product Copyright © 2017 Thematix Partners LLC
- 8. 8 + Product Meta-model Copyright © 2017 Thematix Partners LLC Product Strategy Initiative Capability Value Stream Business Unit Business Partner impacts Objective has realizes owns impacts enables guides the direction for sources Strategy impacts Product / Product Line Product relies on Value Stream Product is owned by Business Unit Product is impacted by Initiative Capability enables Product Product is sourced from Partner
- 9. 9 + Taxi Products – Basic Mappings Strategy Product Product Line Capability Value Stream Business Unit Improve Response Time Mobile phone-based booking Solo Traveler • Customer Initiation • Request Creation Transportation Service • Booking Systems • Driver Management Enable Passengers to share a booking Mobile phone-based booking Multi-traveler • Customer Initiation • Request Creation • Request Aggregation • Request Analysis Transportation Service • Booking Systems • Driver Management Copyright © 2017 Thematix Partners LLC
- 10. 10 + Product Mapping Governance The product mapping team is a business architecture team augmented by product managers, product owners, and other individuals who play a role in product definition, product creation, and product management. It is important to establish a mechanism for maintaining product related information and to ensure this information is referenced by the business architecture.. The best case scenario involves creating a governance structure that ensures that relevant product and product line additions or changes get reflected within the business architecture in a timely manner. To accomplish this, the business architecture information map may refer to a product management system with key information needed to find product data in that system. Copyright © 2017 Thematix Partners LLC
- 11. + Business Architecture - Product Mapping Certified Business Architect Examination
Notes de l'éditeur
- Hi. I'm Robert Kost, a partner at Thematix Partners and for about the next 30 minutes over the course of 10 segments, I'll be speaking with you concerning product mapping.
- Simply put, a product is the way the business creates value for its customer stakeholders. The product is the culmination of value items intended to fulfill the value proposition for the customer. Please see the lesson on Value that forms part of this course for a better understanding of the terms, value, value item and value proposition. The BIZBOK guide defines Product as “the overall experience provided by the combination of goods and services to satisfy the customer’s needs.” It is important to understand that business architecture does not distinguish between tangible, material goods and intangible services when speaking of Product. An auto manufacturer’s products are physical automobiles made of steel, plastic and other materials. But is is equally valid to speak of an accounting firm’s “Product” as its audit service, its bookkeeping service or its tax service. Furthermore, a product may be an amalgam of tangible and intangible offerings; for example, a Product may be defined as the combination of a good, like a generator, and a service agreement to maintain the generator. From the point of view of the customer value proposition, the Product is a generator together with its maintenance. Products are constructed by work described by capabilities. Some capabilities are directly involved in the creation of a product (or the performance of a service). For example, we might expect that a “Materials Fabrication” capability (and its sub-capabilities) are involved in making the material. Other capabilities enable the creation of the product (e.g. Materials Supply Management capability). Both relationships between product and capability are included in product mapping. Products often support capabilities in the customer organization. IT products are purchased for this reason. Services can be purchased to implement a capability that a customer lacks skills to implement or does not see a business advantage in implementing the capability. Mapping the association between a product and a customer capability is often an important aspect of the customer's value proposition. In particular, products that support customer capabilities are often high margin products leading to long term business relationships with the customers. Products have a defined lifecycle. Much effort is spent trying to determine if a proposed product will have enough customers and can be sold at a profitable price point over its product lifetime. Products are also made obsolete by improvements in their characteristics that address the value gap between what a customer wants and what is available. Businesses must always have product lifecycle management capabilities as well as product construction and enablement capabilities as part of their capability repertoire. . Finally, Products can be decomposed into individual products. Such decomposable products are often called bundles. Products are bundled for various reasons, including providing an incentive for the customer to purchase more than they might have intended, or because it makes sense to sell the products together (e.g. a product that is complex to install and operate is sold with installation and engineering services). _____ A Product is an identifiable class of good or service that the business produces on an ongoing basis; it does not mean any individual instance of a product.
- Now that we have an understanding of the meaning of the word “Product” as it’s used in business architecture, let’s describe some of the mapping concepts pertinent to Product. First, note that Product is a extended rather than core domain in business architecture. This is because it depends on core concepts like value, capability, information and stakeholder in order to have expression in a given business architecture. In addition, the product map is often more volatile than those for the core domains. We observe that Products can be mapped to one another, as indicated by the recursive “is similar to” relationship. This mapping is used to highlight specific relationships between one product and another product. These relationships have to do with Product characteristics, which are important because they align with customer value propositions. Products with similar characteristics are likely to appeal to customers with similar value propositions. Differentiating product characteristics allow a business to define products that might appeal to a different or larger target audience. The product-to-product mapping allows a business to not only compare its own products, but products of competitors as well. Mapping product to product involves ascribing attributes to a product. A bicycle company, for example, might produce racing bikes, touring bikes and trail bikes. In addition, it might produce parts for each of these bikes. Each of these products might relate to one another in complex ways having to do with each their construction, specifications, operation and component parts. Each will also address a slightly different customer value proposition and market segment. It is by means of attributes that these comparisons can be made. Next, a Product Line is ”a series of different products that form a group, all made by the same company”. How the product line grouping happens will be a function of the way that the business identifies market segments, market value propositions and the features of the products themselves, which allow them to be grouped in a logical way. Thus in the example above, the term racing bike might be used to identify a product line for bikes having similar physical characteristics and sold to meet similar types of customer value propositions. A Product Family is often used as a cross-cutting way of organizing either products or product lines. Again in the case of bicycles, a product family might be called economy bikes, which describe specific products within all of the racing bike, touring bike and trail bike product lines. It is important that, in doing product mapping, we not overextend product concepts related to business architecture into the domain of product management. Product management tools and methods exist to describe matériel, suppliers, fabrication, distribution, and new product development. These kinds of specification of product are outside of a concern of business architecture. Instead we are concerned with describing product in a sufficiently determinate way as to allow us to related to other domains in business architecture.
- Here are the principles that business architecture adheres to when doing product mapping. First, as we have observed, a product represents the combination of goods and services that satisfy customers needs. A product may in fact be a combination of both a tangible good and accompanying services. Together the goods and services satisfy the customers need and therefore, from the customer’s point of view, the product is the combination. Next Products may be created and managed internally or by a business partner. This means that when we get to more complex business architecture mappings, we will need to take into account the relationship the business has with third-party organizations for the supply of component parts or services that make up the value of the product. In the simple case of an automobile for example, the "new car” is comprised of both the vehicle and its warranty service. The vehicle is supplied by the manufacturer, but the warranty service is supplied by the dealership. From the customer point of view this is all one product – a new car and its accompanying warranty. Next, product mapping relies on a clearly delineated and well-defined concept of product. This means that, at a minimum, a product must have a name and a description. It is perhaps obvious, but worth saying that business architecture is not concerned with individual instances of a product – a product is a class of things having a common name and descriptioin. It is this concept of Product that is the attachment point to a variety of other business architecture elements. Next, as previously observed, product mapping may be expanded to the use of product grouping concepts. We used the term product line, but any grouping term that the business chooses to use is adequate so long as it is clearly nad consistently applied across the entire business architecture. Product is a volatile aspect of the business architecture. Specific products and even product lines may come and go, especially in large organizations with many products for sale. This means that is best not to overload the business architecture with information that is best managed in alternative sources such as a product management system. From the governance point of view, it is important to keep product information updated only where it affects the business architecture. Again, as previously observed, Products are unique, non-redundant concepts within the context of business architecture. There should be no duplication of a product or product line in the business architecture. Next, product mapping is constrained by a customer focus. A good or service that is not and will not be offered to an external party is not a product. Nor are intermediate byproducts products. So, the steam generated in the process of producing electricity is not a product; only the electricity is a product. Next Products may be in varying states. The product may exist only as a concept, a design, a development project or as a good that is retired from service. Regardless of its state, it remains a product that can be recognized within business architecture. Products map to other views of the business. Indeed, this is the whole point of product mapping; that the products relationship two elements like business unit, value stream, strategy, initiative and capability be made explicit and subject to examination. Finally, we observe that products often enable the packaged delivery of capabilities to consumers of those products. In essence the business delivers capabilities when it delivers a product and these should be reflected in product mapping insofar as they are appropriate to the businesses goals. A seller of carpentry tools is not only concerned with the quality and durability of the physical goods, but also with their suitability to the tasks the the customer is undertaking. The business will want to know what capabilities the customer requires in order to undertake these tasks. If a particular saw, for example, is unable to cut through certain materials but competitors products are, this will have a dramatic impact on the value proposition and the value item mapped in the business architecture.
- Here are some guidelines for engaging in the process of product mapping. Determine the scope up front. The scope of the product map should not be constrained artificially based on a given product market, product model, business unit or division. Product is a global concept for the business as a whole and the value of the product map to architecture decreases in value when scope is artificially constrained. Leverage existing sources of product information. Organizations have a wide range of product information, often in several different sources. Ideally, these sources should be centralized to ensure that there is one source of product knowledge. However, the business architecture product map should not perform this centralizing role. Business architecture merely seeks to capitalize on this information and provide a broader view on strategic impacts, value delivery, and other business factors. Use established product names that are readily recognized by the business. Product management, brand management, product marketing, or similar input is required to ensure that the products being represented by the business architecture reflect the current product inventory for the business. Expand the map to include third-party product offerings. In situations where one or more products, or critical product components, are actually provided by third-parties, these third-party products should be represented accordingly within the product mapping. Third-party managed products are sold as intact products to the business’s customers, but the product design and creation, at a minimum, is done by another company. Define and leverage product grouping or family concepts. Where appropriate, establish a product line or similar concept that allows for the grouping of related products into a single line or family. Ensure that a product line is defined consistently and create additional grouping concepts as warranted. Add additional relationships to other products where appropriate to expand the information being viewed. As previously discussed, additional relationships include mappings to business unit, value stream, initiative, strategy, or capability. Eliminate redundancies. There will be a tendency to load up redundant views of products and product lines so it takes an extra effort to continuously streamline the inventory and eliminate those redundant product views. This exercise may actually surface a weakness in the business; some businesses may not have good control over their product management capabilities. This is an opportunity to formalize that practice. Limit attributes of product within the business architecture. Certain information is best kept in a comprehensive product plan, product databases, and similar repositories. We recommend relying on more traditional sources to manage product information and leverage those sources to refresh the business architecture product list accordingly. Validate the product mappings. Management must validate the mapping, and it should reflect the organization as it is today. If executives request a view of the future state, the mapping team can embark on this effort with explicit guidance from executives empowered to make these decisions. Finally, maintain the integrity of product mappings. Products are one of the more volatile aspects of business architecture. These volatile aspects of products can be maintained in IT systems. Important products and product families should be captured in the business architecture as information concepts and related to volatile product data items through the product data information concepts.
- Product mapping provides visibility into the overall product ecosystem. Large businesses, in particular, may not have a clear picture of product relationships as seen by the customer, of customer demand for products, or the competitive positioning of products and will therefore benefit by a systematic effort to map its product universe. Product mapping enables executives to target specific products or product lines in response to a given set of business strategies. Strategy objectives will often focus on a value gap between what a customer wants and what is being delivered. Strategic initiatives will aim to address this gap and improve those product characteristics thought to be deficient. Product mapping provides a focal point to make product investment decisions and funding allocation in conjunction with a given business strategy. For example, cross-mapping of product to capability enables strategic planners to identify capabilities that would be targeted by a product improvement or a new product strategy. Product mapping offers a point of focus for determining how to improve product performance and dissemination. Weak product performance can be pinpointed at a given stage or sub-stage of the product management lifecycle and its value stream, and can then be tied back to issues with the product or products that the value stream supports. Targeted efforts to resolve weak product performance through capability and value stream improvements can then be pursued from a focused perspective. These efforts may ultimately provide additional value to other products relying on those value streams and capabilities. So, for example, if a “Metal Finishing” capability were causing quality control problems in one product line, one might expect it will in any product that relies on Metal Finishing. Product mapping provides a basis for streamlining product design, creation, and packaging by enabling a view of the capabilities and value streams that manage the lifecycle of the selected product. If, for example, product quality were a problem for the business, we might examine the “assemble product” value stream to determine which capabilities were involved in quality control and which of them might be deficient. Product mapping provides an additional viewpoint for aligning value-specific context to certain views of the business architecture. For example, a heat map may reveal that a capability is performing well for one type of product but poorly for another. An executive can investigate the root cause (e.g. insufficient training) and prepare a remedy. Finally, product mapping offers visibility into both the positive and negative effects of initiatives. For example, an initiative to improve the quality of metal used in the fabrication of one product might be used for products that have been mapped as similar to it. Conversely, certain initiatives may have negative effects on products. The proper product mapping might show that an initiative to reduce the price of product A may well cannibalize the market for product B. Product mapping can provide visibility's onto these unintended effects of initiatives.
- The basic procedure for mapping products proceeds from the simple product mapping that we've described to its relationships to the other elements of business architecture. We begin by establishing a clear business wide definition of what a particular product will be within the business architecture. An initial list might be drawn from product inventories product catalog or other sources of product information. These, of course, would need to be validated with product managers, marketing managers and others within the business having specific knowledge of the organizations products and product lines. With the clearly delineated list of products, their names and definitions, the business architect would determine if there's a product line concept. The architect will then proceed to map between product and product line and and amongst product lines. If there is a cross cutting grouping or categorization, it would need to be called product family, domain or some other name to distinguish it from the product line groupings we have already established. Finally, we would assess similarity relationships between products so that later we might be able to assess product competition or the satisfaction of customer value propositions. Next, as part of our value mapping exercise, we would want to posit what would constitute satisfaction of the customer value proposition and identify possible ways of measuring that satisfaction, whether by means of survey, independent rating, or some other method. We then map the product features that we believe fulfill elements of the customer value proposition and capture them as one or more distinct value items. That is to say, product features call out and map to value items in the value stream. All along, it will be essential to continue to review the product mapping with subject matter experts, relevant sponsoring executives and other stakeholders. A product map is of little value if it reflects only the business architect’s view of the company's product catalog. The "payoff” of product mapping comes when we cross-map products to other parts of the business architecture. In particular, we will map to strategy because it is strategies that drive the product lifecycle and that cause the creation of new products to fulfill customer demand. We then map to value streams because it is in value streams that we define the creation of components of customer satisfaction, including such perspectives as utility, aesthetics, warranty, durability and the like. We associate the value items with product attributes and with the value streams and value stream stages to which they belong. It is essential that product map to organization as well. Business units may own or be responsible for the management of a given product or product line. Product will also map to initiative, where the purpose of the initiative is to improve customer satisfaction resulting from a product or to improve the efficiency with which the product is produced. Finally we map product to capability because it is capability that represents the company's ability to produce outcomes that either directly or indirectly result in the product feature. As we earlier observed, a product quality control capability is likely to have a direct impact on both the real and stakeholder-perceived quality of the product that the business produces.
- Here is a representation of the product meta-model described in the BIZBOK guide. This meta-model is still evolving and you should consult future versions of BIZBOK for an up-to-date description. You can study this slide in the presentation available for download in this Moodle lesson on Product.
- Leveraging the meta-model, we can imagine how a product map might look for our taxi company. Here, we can see that the “mobile phone based booking” product is part of a product line for the “solo traveler” and is produced in the “transportation service” value stream using the “customer initiation” and “request creation” capabilities. The booking systems and driver management business units are the owners of this product and product line.
- Since product maps are a particularly volatile domain of business architecture, it is recommended that there be some form of product mapping governance instituted. The product mapping team, which might be thought of as a collaborative team, is comprised of the product manager product owners and other individuals who play a role in product definition, creation and management. It is this team with whom the business architect interfaces in creating and maintaining a product map. Of course, some mechanism should be created for maintaining product information and the way In which that product information is represented in the business architecture.
- This constitutes the essence of the biz box teaching concerning product. Obviously you should stay abreast of changes to the BIZBOK, as the product mapping chapter itself says.