Non-Durable Goods Manufacturing Industry Reference Architecture
Business capability maps, value streams, and strategy maps for the non-durable goods manufacturing industry.
- Your operation should customize this model to fit your business.
- Taking a capability-driven approach will drive the risk probability down.
- Don’t be caught off-guard by the domino effect of unplanned capability impacts.
Our Advice
Critical Insight
Gain real insight into business capabilities and how they are impacted by changes in the ecosystem. Understand your capabilities at a glance.
Impact and Result
- Identify the kinds of applications and processes that would be impacted by changes.
- Prioritize mapping the capabilities.
- Align your staff with the capabilities map.
Non-Durable Goods Manufacturing Industry Reference Architecture
Business Capability Maps, Value Streams, and Strategy Maps for the Non-Durable Goods Manufacturing Industry
Analyst Perspective
In the age of disruption, IT must end misalignment and enable value realization.
An industry reference architecture helps accelerate your strategic design process and enhances IT’s ability to align people, process, and technology with key business priorities. Non-durable goods manufacturing firms require a unified and validated view of their business capabilities that aligns initiatives, investments, and strategy to provide value to their clients and stakeholders.
Kevin Tucker
Principal Research Director
Manufacturing, Supply Chain and Logistics
Info-Tech Research Group
Executive Summary
| Your Challenge | Common Obstacles | Info-Tech’s Approach |
|
Building support across the organization. The CIO and CDO/head of IT must drive the organization’s understanding of traditional business capabilities as well as enable new digital capabilities. Building alignment across the organization. Sharpen the alignment and focus on organizational outcomes that deliver value through enhanced automation and cost-effective technology evolution to provide both reliable and high-quality outcomes. Finding the right tools to deliver. Before executing any strategic initiatives, use this blueprint to align IT and organization goals to generate value. |
Engagement. The need to identify a clear path for capturing the right information, engaging the right people, linking with the needs of the business, and aligning priorities with OT. Business alignment. The business and IT often speak their own languages without a holistic and integrated view of the mission, vision, strategy, goals, objectives, business processes, projects, and measures of success. IT and OT alignment. Organizations often focus their attention within silos and miss the big-picture need for a synergistic approach that will deliver successful outcomes. |
Build your organization’s capability map by defining the organization’s value stream and validating the industry reference architecture. Use business capabilities to define strategic focus by defining the organizations key capabilities and developing a prioritized strategy map Assess key capabilities for planning priorities through a review of business processes, information, and application and technology support of key capabilities. Adopt capability-based strategy planning by ongoing identification and roadmapping of capability gaps. |
Info-Tech Insight
Using an industry-specific reference architecture is central, and has many benefits, to organizational priorities. It’s critical to understanding, modeling, and communicating the operating environment and the direction of the organization but, more significantly, to enabling measurable top-line organizational outcomes and the unlocking of direct value.
Industry Overview: Non-Durable Goods Manufacturing
The non-durable goods manufacturing industry comprises traditional manual processes where goods are produced with tools, fixtures, hand-operated tools, manual sorting, manual mixing, paper-based recording, and a whole host of other manual processes.
Many of these traditional organizations have needed to resort to very costly inspection and quality management processes such as GP12 in order to ensure that they are delivering high-quality products across all of the business sectors they serve.
In recent years, the onset of new technologies has created opportunities for new market entrants to disrupt a wide range of manufacturing industries. At the same time, the quality management tools have become much more sophisticated, simple to operate, and offer much higher levels of accuracy.
New technologies for producing products, including robotics, have enabled businesses to significantly reduce costs while providing a higher quality product and flexibility for changing requirements and still meeting timely delivery that customers have grown to expect.
Figure above: Value chain for the non-durable goods industry
Business value realization
Business value defines the success criteria of an organization as manifested through organizational goals and outcomes, and it is interpreted from four perspectives:
- Profit generation: the revenue generated from a business capability with a product that is enabled with modern technologies.
- Cost reduction: the cost reduction when performing business capabilities with a product that is enabled with modern technologies.
- Service enablement: the productivity and efficiency gains of internal business operations from products and capabilities enhanced with modern technologies.
- Customer and market reach: the improved reach and insights of the business in existing or new markets.
Value, goals, and outcomes cannot be achieved without business capabilities
Break down your business goals into strategic and achievable initiatives focused on specific value streams and business capabilities.
Non-Durable Goods Manufacturing business capability map
Business capability map defined…
In business architecture, the primary view of an organization is known as a business capability map.
A business capability defines what a business does to enable value creation, rather than how. Business capabilities:
- Represent stable business functions.
- Are unique and independent of each other.
- Typically will have a defined business outcome.
A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further assessment.
Glossary of Key Concepts
A business reference architecture consists of a set of models to provide clarity and actionable insight and value. Typical techniques and terms used in developing these models are:
| Term/Concept | Definition |
| Industry Value Chain | A high-level analysis of how the industry creates value for the consumer as an overall end-to-end process. |
| Business Capability Map | The primary visual representation of the organization’s key capabilities. This model forms the basis of strategic planning discussions. |
| Industry Value Streams | The specific set of activities an industry player undertakes to create and capture value for and from the end consumer. |
| Strategic Objectives | A set of standard strategic objectives that most industry players will feature in their corporate plans. |
| Industry Strategy Map | A visualization of the alignment between the organization’s strategic direction and its key capabilities. |
| Capability Assessments | Based on people, process, information, and technology, a heat mapping effort that analyzes the strength of each key capability. |
| Capability | An ability that an organization, person, or system possesses. Capabilities are typically expressed in general and high-level terms and typically require a combination of organization, people, processes, and technology to achieve. |
Source: The Open Group
Tools and templates to compile and communicate your reference architecture work
The Non-Durable Goods Manufacturing Industry Reference Architecture Template is a place for you to collect all the activity outputs and outcomes you’ve completed for future use.
Download the Non-Durable Goods Manufacturing Industry Reference Architecture Template
Info-Tech’s methodology for reference architecture
| 1. Build Your Organization’s Capability Map | 2. Use Business Capabilities to Define Strategic Focus | 3. Assess Key Capabilities for Planning Priorities | 4. Adopt Capability Based Strategy Planning | |
|---|---|---|---|---|
| Phase Steps | 1.1 Define the Organization’s Value Stream 1.2 Develop a Business Capability Map |
2.1 Define the Organization’s Key Capabilities 2.2 Develop a Strategy Map |
3.1 Business Process Review 3.2 Information Assessment 3.3 Technology Opportunity Identification |
4.1 Consolidate and Prioritize Capability Gaps |
| Phase Outcomes |
|
|
|
|
Info-Tech offers various levels of support to best suit your needs
| DIY Toolkit | Guided Implementation | Workshop | Consulting |
|---|---|---|---|
| “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” | “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” | “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” | “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” |
Diagnostics and consistent frameworks are used throughout all four options.
Guided Implementation
What does a typical GI on this topic look like?
| Phase 1 | Phase 2 | Phase 3 | Phase 4 | |
|---|---|---|---|---|
| Call #1: Introduce Info-Tech’s industry reference architecture methodology. | Call #2: Define and create value streams. | Call #4: Map value streams to business capabilities. | Call #6: Create a strategy map. | Call #8: Review capability assessment map(s). |
| Call #3: Model level 1 business capability maps. | Call #5: Model level 2 business capability maps. | Call #7: Introduce Info-Tech's capability assessment framework. | Call #9: Discuss and review prioritization of key capability gaps and plan next steps. | |
A guided implementation (GI) is a series of calls with an Info-Tech analyst to help implement our best practices in your organization.
A typical GI is six to nine calls over the course of one to four months.
Phase 1
Build Your Organization’s Capability Map
| Phase 1 | Phase 2 | Phase 3 | Phase 4 |
|---|---|---|---|
| 1.1 Define the Organization’s Value Stream 1.2 Develop a Business Capability Map |
2.1 Define the Organization’s Key Capabilities 2.2 Develop a Strategy Map |
3.1 Business Process Review 3.2 Information Assessment 3.3 Technology Opportunity Identification |
4.1 Consolidate and Prioritize Capability Gaps |
This phase will walk you through the following activities:
- Identify and assemble key stakeholders.
- Determine how the organization creates value.
- Define and validate value streams.
- Determine which business capabilities support value streams.
- Accelerate the process with an industry reference architecture.
- Validate the business capability map.
- Establish level 2 capability decomposition priorities.
- Decompose level 2 capabilities.
This phase involves the following participants:
Non-Durable Goods Manufacturing Industry Reference Architecture
Step 1.1
Define the Organization’s Value Stream
This step will walk you through the following activities:
1.1.1 Identify and assemble key stakeholders
1.1.2 Determine how the organization creates value
1.1.3 Define and validate value streams
This step involves the following participants:
- Enterprise/Business architect
- Business analysts
- Business unit leads
- CIO and CDO
- Departmental executive and senior managers
Outcomes of this step:
- Defined and validated value streams specific to your organization
Build Your Organization’s Capability Map
Step 1.1 > Step 1.2
1.1.1 Identify and assemble key stakeholders
1-3 hours
Build an accurate depiction of the business.
- It is important to make sure the right stakeholders participate in this exercise. The exercise of identifying capabilities for an organization is very introspective and requires deep analysis.
- Consider:
- Who are the decision-makers and key influencers?
- Who will impact the business capability work? Who has a vested interest in the success or failure of the outcome?
- Who has the skills and competencies necessary to help you be successful?
- Avoid:
- Don’t focus on the organizational structure and hierarchy. Often stakeholder groups don’t fit the traditional structure.
- Don’t ignore subject matter experts on either the business or IT side. You will need to consider both.
| Input | Output |
|---|---|
|
|
| Materials | Participants |
|
|
Download the Non-Durable Goods Manufacturing Industry Reference Architecture Template
Define the organization’s value streams
- Value streams connect business goals to the organization’s value realization activities. They enable an organization to create and capture value in the marketplace by engaging in a set of interconnected activities. Those activities are dependent on the specific industry segment an organization operates within. Value streams can extend beyond the organization into the supporting ecosystem, whereas business processes are contained within and the organization has complete control over them.
- There are two types of value streams: core value streams and support value streams. Core value streams are mostly externally facing – they deliver value to either an external or internal customer and they tie to the customer perspective of the strategy map. Support value streams are internally facing and provide the foundational support for an organization to operate.
- An effective method for ensuring all value streams have been considered is to understand that there can be different end-value receivers. Info-Tech recommends identifying and organizing the value streams with customers and partners as end-value receivers.
Value stream descriptions for non-durable goods
| Value Streams | Product Conception | Product Production | Product Inspection and Finishing | Product Selling and Support |
|---|---|---|---|---|
|
|
|
|
Determine how the organization creates value
Begin the process by identifying and locating the business mission and vision statements.
- Corporate Websites
- Business Strategy Documents
- Business Mission
- Business Executives
- Business Vision
What is business context?
“The business context encompasses an understanding of the factors impacting the business from various perspectives, including how decisions are made and what the business is ultimately trying to achieve. The business context is used by IT to identify key implications for the execution of its strategic initiatives.”
Source: Business Wire, 2018
About Info-Tech
Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.
We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
What Is a Blueprint?
A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
Need Extra Help?
Speak With An Analyst
Get the help you need in this 4-phase advisory process. You'll receive 9 touchpoints with our researchers, all included in your membership.
Guided Implementation 1: Build Your Organization's Capability Map
- Call 1: Introduce Info-Tech’s industry reference architecture methodology.
- Call 2: Define and create value streams.
- Call 3: Model level 1 business capability maps.
Guided Implementation 2: Use Business Capabilities to Define Strategic Focus
- Call 1: Map value streams to business capabilities.
- Call 2: Model level 2 business capability maps.
Guided Implementation 3: Assess Key Capabilities for Planning Priorities
- Call 1: Create a strategy map.
- Call 2: Introduce Info-Tech's capability assessment framework.
Guided Implementation 4: Adopt Capability-Based Strategy Planning
- Call 1: Review capability assessment map(s).
- Call 2: Discuss and review prioritization of key capability gaps and plan next steps.
Contributors
- Jay Stanley, VP IT, Heartland Food Products Group