- Leadership requires a unified and validated view of retail business capabilities that help CIOs and wholesale leadership accelerate the strategy design process and align initiatives, investments, and strategies.
- The business and IT often focus on a project, ignoring the holistic impact and value of an overarching value stream and business capability view.
Our Advice
Critical Insight
- Using an industry-specific reference architecture is central to organizational priorities and has many benefits. It’s critical to understanding, modeling, and communicating the operating environment and the organization’s direction, but more significantly, to enabling measurable top-line organizational outcomes, recent trends in distribution, and unlocking direct value.
Impact and Result
- Demonstrate the value of IT’s role in supporting your wholesale distribution capabilities while highlighting the importance of proper alignment between organizational and IT strategies.
- Apply Level 2 business reference architecture techniques such as strategy maps, value streams, and capability maps to design usable and accurate blueprints of your wholesale and distribution operations.
- Assess your initiatives and priorities to determine if you are investing in the right capabilities. Conduct capability assessments to identify opportunities and prioritize projects.
The Wholesale Industry Guide Business Reference Architecture
Business Capability Maps, Value Streams, and Strategy Maps for the Wholesale Distribution Industry
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IT Strategy & Alignment, Reference Architectures & Value Systems
Understand the capabilities and focus areas required to meet your industry’s needs and enable value creation. |
Top Trends Affecting Your Industry
Identify resource, process, and environmental trends impacting your industry. Implement strategies to mitigate specific risks and take advantage of all relevant opportunities. |
Industry Benchmarking
Reveal the true state of your IT services, processes, spend, and staffing levels to align your priorities and resources. Benefit from peer data to get a reference point for how well you stack up. |
Software Selection to Meet Industry Needs
Arm yourself with everything you need to provide the right solutions to meet the needs of your business stakeholders. |
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Contact Eric Cabral at ecabral@infotech.com for more information. |
Analyst Perspective
In the age of disruption, IT must end misalignment & enable value realization.
An industry reference architecture helps accelerate your strategy design process and enhances IT’s ability to align people, processes, and technology with key business priorities.
- A wholesale capability business map is a generic value chain independent of any system.
- It covers all core level 1 and level 2 wholesale business capability components, from strategy planning to purchasing, distributing, and selling products.
- The capability map leverages best practices cumulated by working with leading wholesalers.
- It can be used, for example, in process design, operational analysis, due diligence, channel alignment, and wholesale process performance management; it serves as an IT architectural lens to enable retail entry transformation.
Wholesale strategy requires a unified and validated view of business capabilities that aligns initiatives, investments, and strategies to provide value to clients and stakeholders.
Rahul Jaiswal |
Executive Summary
Your Challenge
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Common Obstacles
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Info-Tech’s Approach
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Establishing an industry-specific reference architecture is vital and promotes organizational priorities. It’s essential to understanding, modeling, and connecting the operating environment and the organization’s direction, but more significantly, to empowering measurable top-line organizational outcomes and unlocking direct value.
Reference Architecture Framework
Overarching InsightUsing 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 enterprise, and more significantly, to enabling measurable top-line business outcomes and the unlocking of direct value. Determine your organizational priority.Many organizational priorities are dependent on an understanding of how the organization creates value and the organization's capabilities and processes. Examine organizational opportunities through the lens of business, information/data, applications & technology.Your understanding of your organization's business capabilities, processes (rules & logic), information/data, and architecture will identify organizational opportunities to create value through reduced costs or increased revenues and services. Follow Info-Tech's methodology to enable organizational outcomes and unlock direct value.Your approach indicates the scope of your modernization initiatives. 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 organization's key capabilities and developing a prioritized strategy map. Assess key capabilities for planning priorities through a review of business processes, information, applications, and technology support of key capabilities. Sustain capability-based strategy planning through ongoing identification and roadmapping of capability gaps. |
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Industry Overview: WholesaleThe wholesale industry sells products of various types directly to business customers and retailers. Some wholesalers provide or ship the purchased goods. In addition, they sometimes deal with partners, creating a complex supply and delivery chain. Wholesalers range from small shops to large global companies across all verticals, such as AmerisourceBergen (pharmaceuticals) and Associated Grocers (supermarkets). Consumers can quickly and easily shift what they purchase and where they purchase from. Therefore, enterprises must understand shifting consumer patterns to manage inventory and store location. Wholesalers purchase products from manufacturers or suppliers. They then sell products to a variety of retailers. Their value is in providing inventory for retailers at higher fulfilment speed and lower overhead than if the retailer bought directly from a supplier and warehoused the product before sale. In August 2022, total wholesaler sales in the United States amounted to an estimated value of almost 700 billion US dollars. This represents an increase of about 100 billion US dollars year-over-year. (Source: Statista 2022) |
Figure above: Value Chain for the Wholesale 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:
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Business Value Matrix |
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.
Wholesale 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. |