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  1. Using Business Scenarios in The Open GroupQuarterly ConferenceJanuary 22, 2002Terry Blevinst.blevins@opengroup.org

  2. The Open Group Customers Of “It” Partners In “It” Vendors Of “It” Staff First, a Level Set… • The Open Group is • Membership • Customer members • Vendor members • Partners • Staff

  3. Application And/Or Problem The Open Group Governing Process Concept Validate Interest Initiate Group Generate Seed Message * Formalize Group Gen market interest Understand Requirements * Develop Specs Commit to interoperability * Commit to conform Develop Conform plan Involve others Improve Specs Dev Conf. Test Sell certified product Certified Products Maintenance Certify for conformance * Infrastructure Processes External organizations Operators Buyers Manufacturers Appl.Providers Procure certified product The Open Group Process Goal: Market Uptake * - Promotion

  4. The Open Group Mission • Offer all organizations concerned with open information infrastructures a forum to • share knowledge, • integrate open initiatives, and • certify approved products and processes • in a manner in which they continue to trust our impartiality. To gain trust we must constantly demonstrate value.

  5. So… • The Open Group • Is comprised of many organizations • Uses cooperative processes to improve products based on standards • The process does take people, time and money • We must ensure the result offers value to maintain trust • We must work hard to work the right problem areas for the right reasons!

  6. We All Must Recognize Changes INFLUENCING • The environment changes • New business imperatives • New technologies • New solutions • Endless cycle of “improvement!” Business Objectives Business Objectives Industry Solutions Business Principles Critical Business Processes Business Strategies Business Strategies Solution Environments Critical Success Factors Industry Solutions Critical Success Factors Systems & Products IT Principles Solution Environments IT Principles Architecture Impacts IT Impacts Systems & Products DRIVING ENABLING IT Impacts Architecture Impacts

  7. Top 10 Management Issues for 2002 Optimizing Enterprise-wide IS Services 1 Optimizing Organizational Effectiveness 2 Organizing and Utilizing Data 3 Connecting to Customers, Suppliers, and/or Partners Electronically 4 Protecting and Securing Information Systems 5 Instituting Cross-Functional Information Systems 6 Updating Obsolete Systems 6 Aligning IS and Corporate Goals 8 Improving the Systems Application Process 9 Implementing Business Transformation Initiatives 10 Source: CSC 2001 - 14th Annual Survey of IS Management Issues

  8. WHAT WHO HOW WHY Everyone is Building Value Propositions • Value Proposition - an offer that profitably delivers a set of benefits to a customer better than the competition Needs Offer Target Differentiation

  9. Therefore We Must “Get It” • The conditions in the business have changed • Jon Surmacz, a CSC writer, says • “The latest and greatest technologies don’t dazzle IT buyers anymore.” • Again, the CSC study points out the need for • Optimizing Organizational Effectiveness • Organizing and Utilizing Data and • Aligning IS and Corporate Goals

  10. Therefore We Must “Get It” • Carl D. Howe, Forrester analyst, says • “The days of free spending on technology are over,… we’re looking at a different business environment.” • Michael Hammer, expert and author, calls • “It” the “customer economy” • Stephen R. Covey, author of “The Seven Habits of Highly Effective People,” guides us to • “Seek first to understand, then to be understood” • Phil McGraw, human behaviorist and author, says • If you don’t “Get It” you will fail

  11. The Open Group “Gets It” • New areas, new challenges • Active Loss Prevention is not about technologies • “It” is about risk management • In3 is not about technologies • “It” is about optimizing operational efficiency • New views • “It” is people, process, and technology working together to solve real business problems

  12. Business Scenarios “Get It” • To generate a clear understanding of business needs • Complete requirements • Clarify the value • Marketable solution • To have a language to define • Problems, standards and technical solutions • What is needed and why • Business Scenarios are a product of The Open Group’s process • Produced in The Open Group’s Architecture Framework Vendor Customer

  13. What is a Business Scenario? • A Business Scenario describes: • Business process, application or set of applications • The business and technology environment • The relevant people and computing components • The desired outcome of proper execution • A good Business Scenario • Exposes the value of solving a real problem • Is “S.M.A.R.T.”

  14. Building a Business Scenario Includes… 1 - problem 2 - environment 3 - objectives 4 - human actors 5 - computer actors 6 - roles & responsibilities 7 - refinement

  15. Business Scenarios Set the Yardstick… • Customers • Procurement plans • Acceptance criteria • Vendors • Implementation plans • Certification tests

  16. Some Reminders • Business Scenarios are not “It” • They are a tool to understand “It” • They enable the whole process of The Open Group Business Scenario(s) Provide Coherence and Consistency Interview Sessions Document Business Scenario Requirements Validation Identify needed standards

  17. Business Scenarios We’ve Done • POS Upgrade • Directory Enabled Enterprise • Key Management Infrastructure • Quality of Service • Mobile and Directory • Interoperable Enterprise * www.opengroup.org/cio/iop • Identity Management • The Open Group • The Interoperable Lottery * In3 (Integrated Information Infrastructure) theme inspired by the Interoperable Enterprise Business Scenario

  18. A Real Business Scenario - NASPL • Use the Business Scenario model to help build a business case for future investment in standards initiatives by: • Identifying and prioritizing areas in the lottery operation that will benefit from standardization • Describing those benefits in ways that represent a tangible value • Use that tangible benefit as “justification” for moving to the next level of investigation into specific standards and associated paths forward

  19. Single-state Each state controls a jurisdiction Multi-state Multiple states must meet certain agreed upon standards to participate in multi-state games Lottery Jurisdictions • Lottery vendors deal in multiple states, multiple jurisdictions across all of US and around the world! Lottery Jurisdiction Lottery jurisdiction and Multi-state participant No Lottery

  20. For any lottery the following stack is relevant Business processes Business logic Business metadata Technology platform Middleware Operating Systems Computer Hardware Networks Common Computing Elements Among Lotteries Lottery 1 Business Processes Development business processes Operational business processes Management business processes Governance business processes Business Logic Development business logic Operational business logic Management business logic Governance business logic Business Metadata Development business metadata Operational business metadata Management business metadata Governance business metadata

  21. problem environment objectives human actors comp. actors roles&resp. refine Common Issues 1. Game quality and integrity User acceptance test coverage Operator error Business rules mapped into solutions Integrity of the “system” 2. Managing the game profit • New games for new players, but new installations slow to deploy • Difficult to manage inventory of instant tickets • Sweep accounting • Instant tickets are perishables; there are “cut off” situations that waste retailer $ • Flexible gaming operations, ie couponing, promos • Different rules for different games is hard for retailers • Sweep accounting retailer issues Managing growth • Systems don’t easily interoperate • High costs of integration and development • All or nothing situation on upgrades and migrations • High cost of procurement, RFP process is costly • Terminal upgrades • Change management • Custom reporting Managing costs Bolder are ones with greatest commonality between constituencies. Result of the affinity analysis. These issues are representative of significant issues that if resolved would benefit the entire lottery community.

  22. Financial Institution State Legislature And/or Executive Lobbyists Lottery Organization (Single or Multi-state) Communications Providers Lottery Vendors (On-line games, Instant Games, Communications, and Back Office Systems) problem environment objectives Retailer (chain and independents) human actors Players comp. actors roles&resp. refine Lottery Enterprise Environment - Constituencies

  23. - does in most situations - does sometimes D Development O Business operations M Management G Governance problem environment objectives human actors comp. actors roles&resp. refine On-line Games Process Mapping to Constituencies D Requirements/RFP D Research D Development D Deployment D Testing O Marketing O Sales O Accounting O Winners Management O Player Management O Drawing M Telco&NW Management M Customer Service M Field Service M Installation and Maintenance M IT Operations G Lottery review & control G Retailer Management G Vendor Management G Multi-state Management State Legislature or Executive Lottery Organization Retailer Financial Institution Lottery Vendors Communications Providers Players

  24. problem environment objectives human actors comp. actors roles&resp. refine Inside a Retailer/Agent(A Point of Sale/Play) Customer Area in 1 to 2 service lines 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 … ... ... Service Area - 1 to 2 Clerks using 1 or 2 POS devices (typical) and 1 (maybe 2) lottery terminals Back Office Management Area There are multiple retail environments, e.g. convenience store, supermarket, tavern, etc…

  25. 2. Improve profitability problem environment objectives human actors comp. actors roles&resp. refine Common Objectives 1. Maintain and improve integrity of lottery operations Better quality product Improve level of security Growth in sales and net revenue Reduce unnecessary costs • Improve the time to market with new games • Quicker software modifications • Maximize game portfolio • Reduce telemarketing costs • Improve retailer relations • Reduce time to sell tickets • Simplify accounting for retailers • Reduce new retailer installation process • Improve profit of lottery sale for retailer • Decrease costs of integration of new and upgraded systems, hardware, and software • Decrease migration costs • Reduce costs of sending data to central • Decrease operations costs • Lower cost of development and maintenance • Improve operational efficiency Bolder are ones with greatest commonality between constituencies. Italic items are considered very important, but not voted as such.

  26. problem environment objectives human actors comp. actors roles&resp. refine Another Example - ARTS • Upgrading Point Of Sale • Terminals, peripherals, and software

  27. Communi-cations Providers problem environment objectives human actors comp. actors roles&resp. refine The Upgrade Process Steps External Internal Partners - Hardware Vendors Partners - Software Vendors Headquarters 4.2 - Vendors ships software to corporate 1 - Choose product 2 - Lab assurance 3 - Plan deployment (including pilot) 5 - Download s/w to store 6 - Email installation instructions 4.1 - Vendor drop ships hardware to store Some typical numbers: 30 to 100 Stores 30 to 1500 POS 1200 $ /hr/POS 36 k$ to 900 k$ in lost revenue for 30 minute outage 7 , 8, 9, 10, 11 The Store ON AVERAGE 15 POS DEVICES Yet Another Store ON AVERAGE 15 POS DEVICES 7 , 8, 9, 10, 11 7 - Install first in a training room/register 8 - Local training 9 - Install incrementally or in off-hours 10 - Test 11 - Confirm upgrade Another Store ON AVERAGE 15 POS DEVICES

  28. The Value of Business Scenarios • There is a business imperative • Business Scenarios help us “Get It” • The real problems in real world business situations • The real business value • Map business to technology • Business Scenarios expose value for customers and vendors - a Win-Win • Business scenarios will continue to help us understand what In3 is all about and how to deliver “It”

  29. 1 - problem The Open Group 2 - environment Customers Of “It” Partners In “It” 3 - objectives 4 - human actors 5 - computer actors Vendors Of “It” 6 - roles & responsibilities Staff 7 - refinement Participation led to Business Scenario Method! Participation leads to creation of good Business Scenarios! Participation led to Business Scenario Method! We All Have Parts to Play

  30. Have a Great Conference

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