Transaction System Level 2 - Dependencies with APQC Framework

​The purpose of this model intends to highlight a universal expense transaction capability or financing for sustainable development proposal.  If you are not familiar with insight maker please start here.  The template shown in this model uses a stock and flow diagram with relationships to three degrees of maturity and risk in a proposed offer.  An offer represents the tools which local communities can use as part of the Means of Implementation (MoI).  The variables or vectors in the model can be set as a forecast using the features within each variable or vector and stock or flow between links allows either discreet or indiscreet monitoring of a budget with this model showing cost or expenses.   Three degrees of risk are shown in the three vectors from the design strategy and vision vector.  The management decisions are defined and applied to the implementation with this tool offered as a means to monitor either discreetly or indiscreetly.   A wicked problem in any organization would be highly complex business models and lack of agility when strategy changes or new innovation models need to be introduced.

​The purpose of this model intends to highlight a universal expense transaction capability or financing for sustainable development proposal. 

If you are not familiar with insight maker please start here

The template shown in this model uses a stock and flow diagram with relationships to three degrees of maturity and risk in a proposed offer. 

An offer represents the tools which local communities can use as part of the Means of Implementation (MoI). 

The variables or vectors in the model can be set as a forecast using the features within each variable or vector and stock or flow between links allows either discreet or indiscreet monitoring of a budget with this model showing cost or expenses.  

Three degrees of risk are shown in the three vectors from the design strategy and vision vector. 

The management decisions are defined and applied to the implementation with this tool offered as a means to monitor either discreetly or indiscreetly.  


A wicked problem in any organization would be highly complex business models and lack of agility when strategy changes or new innovation models need to be introduced.
Hard Dependencies
Design Strategy and Vision must be planned and identity of the new offers selected and financed. 
Developing the offers must be derived from the planning of the strategy and vision during design. 
Market and sell must have a developed offer to market and sell. 
Delivery must follow the sell of the offer and managing the offers follows the delivery of the offer.  

Each of these dependencies has  different role set yet every company or enterprise uses the sequence to design and implement.  If they don't they could and they could scale for efficient operations.  

Universality - Generic and Global Application of the process framework at the levels 2 we have five process groups.
Top down to level 3 mapping to the current lowest level to meet the bottom up. 

The APQC business process framework enables a benchmark for comparing industry competitors and common way of communicating the same roles in role nets and role sets. 

Unfortunately, we have such a strong desire to create when our skills are not tuned to understand the interdependency.  How many executives are unable to realize the strategy and vision? How many cost overruns and simply missed outcomes altogether.  

Why?  If we add more processes to level 2 which are part of Level 2 process 1, we redesign the strategy when we should be implementing the strategy.  

We empower run the business workers who have already committed to the corporate strategy during design.  The implementation phase is hardly the time to redefine commitments made during the planning phase. 

We lose accountability and fail to deliver in these scenarios.  APQC list process 6-12 which are general administration or executive cost best managed and served to the process 2-5 business users as a shared service. 
Executive and Leadership Business Managers
The proportional increase in the number of this type of Goods based on the Business Group whoch is a sub-set of functional unit who develops goods, example systems dynamics measures how many per year.



Typically 70% of the investments are managed without change and without innovation in category `10 Run/Operate the Business
Improving an existing offer is ideally a change which moves the planned change from category 10 to 20 for the application of changes in an agile manner then tested and returned to 10 enabling the least disruption to the running of the business.
Design Strategy and Vision
All resource requirements are known or planning to on board the resource gaps or upskill current resources are decided working with the line managers effected. 

If a new offer or new business intends to run or operate the assumptions must be known and increased volume would require a new resource. 

A new resource is a change and a period of time to have the resource fully functional is typically expected.

A change to an offer to improve would need a different type of resource and typically higher skills are necessary to implement changes.  Most workers are adverse to change, those who are challenged by change or appreciate the need for change have different skills. 

A transformation or innovation is unlike the run or operate and even different than the change to improve model.  Far too often we fail to recognize the differences and push these objectives into a run the business model.  Which is where every highly complex situation originates in my experience. 
Executive and Leadership Business Managers
Typically 70% of the investments are managed without change and without innovation in category `10 Run/Operate the Business
Improving an existing offer is ideally a change which moves the planned change from category 10 to 20 for the application of changes in an agile manner then tested and returned to 10 enabling the least disruption to the running of the business.
The link between "1.Design Strategy and Vision" to the Stock "Goods & Services" would represent the expected volume and quality of the offers which will be implemented in the process 2-5. 



Executive and Leadership Business Managers
Typically 70% of the investments are managed without change and without innovation in category `10 Run/Operate the Business
Improving an existing offer is ideally a change which moves the planned change from category 10 to 20 for the application of changes in an agile manner then tested and returned to 10 enabling the least disruption to the running of the business.
In order to execute the strategy we must assume the outcomes from the Design process includes the administration and executive cost typically associated with finance, legal, WPR, Strategy, Security and Audit, human resources and education with communications and executives which includes the Board of Directors and Shareholders (risk management). 

Five Capabilities are proposed as a way to implement a viable system model within the regulatory or environment across the globe. 

General Accounting Acceptable Practices are factored and pricing for fair market rules identified for each of the three maturity types would be used to ensure fewer touches on many (70%) of the business runs without the tighter controls we might have in the remaining 30% across the improvement and innovation offers. 

In keeping the transactions of expense or cost as a sub-system shown above we enable a single transaction which matures over time as the build of an offer must be deducted from the sell price.  We also enable a just in time build process using the approach with fewer opportunities to miss a key design control required by Sarbanes Oxley monitoring and audit traceability with record retention appends the records rather than create new without provenance and curation. 
Communicating Universality

"Expense" in Private Sector
"Cost" in Public
Sector


People often use different terms to describe the same things. 

Imagine working on a project for a month before realizing the client was using cost and benefits in ways that private sector stakeholders use expense and revenue. 

What if the entire month you didn't find anything of value on the cost and benefits, yet you authored an expense transaction capability for an open forum. 

Then to make matters worse, the client was expecting a very specific response one almost staged for the expected outcome. 

These are the common barriers in new projects.  Everyone uses a different set of terms and has a very unique expected outcome. 

The five capability model understands the limitations of resources, the resources in innovation are rare and trusted adviser types of knowledge derived from wisdom might describe it best. 

Even the most respected experts are unlikely to agree or come to a common understanding on the subject of the back office audit requirements which are associated with command and control.  Few of us are equipped with the experience across both people, in any industry or in private and public sectors and then into the primary technologies, 
Data - Big or Small

It really isn't about the size of the data and complexity is in the eye of the beholder.  If we adopt the five capability model we quickly contain the complexity factor and normalize the business models across all three layers;
People
Process
Technology

Let's address the topic of data understanding data is a technical form of information and anything digital or analog can be data. 
Information is derived from data
Knowledge is derived by structuring information derived from data.
Wisdom is derived from knowledge in applied action, derived from structured information and un-structured data. 

Content management systems are going to have a data representation in a storage container often referred to as a database with physical tables common to any source technology or application. 

Content at rest is stored as data in a database which is known as part of the storage device technology and a sub-type in the Cloud technology family. 

Content is presented to users with information structured as knowledge, each of these three technologies are often associated with unique domain architects in the IT delivery space and each has different data representations with few connections to each other. 

Content is a form of technology often associated with Software as a Service, another part of the Cloud Technology, which again has another data representation at the very same time as the others mentioned earlier. 
The laws are clear about interfering with data at rest, which must be better understood as the IaaS and SaaS connections are often treated as unique and each has its own family of technology experts. 

The final part of the equation introduces the PaaS or platform used to transport and manage the mass communications networks across the world.   The source may be analog or digital, sensor or metadata logs and we must recognize the fact each is data in raw form we can drill down further as data transport further reduces to just bits and bytes 10101010 or any combination at the lowest form a human can recognize the 1 or 0 in structured format we have a bit and byte over the telecommunication transport layer. 

A critical infrastructure and connection between people and their technology. 

Data is the raw form of anything digital and many sensors for the analog formats. 

Data in raw form is just data and isn't information when provenance and source system integrity has curation outside the original context. 

Content may be video, data or audio and each may need to be isolated in transport between two users on different devices.  Using different transport connections improves quality while lowering the ability to acquire more than one type of the communication in streaming or batch processing.  
Finally, as the plans go into execution and we use technology to run the operations, change and improve or innovate and transform, we have data in raw format which only has value when in the context of its original use.  

Its only valuable to a business or agency when the planned strategy is executed or known when it changes. 

Therefore, any early detection or segmentation which can aid in the sensing of unplanned events offers the best outcome for any proposed strategy. 

In the case of the five capability model, the regulatory rules and scale of the minimum viable system are designed for the public and private sectors.  Removing the unknowns and separating concerns lowers the cost of resilience.

The outcomes are a crystal clear regulatory model for back office stakeholders, discreet management of the resources and investment in the least amount to meet the spirit of the laws without disrupting all.  Carve out the financial transactions to publish and report on a system view of the business operating in three stages of risk.

Now, if you could identify the customers associated with each of the three types of business models. 

Would you be surprised to learn you are least effective at serving the innovation and global accounts associated with innovative offers? 

B2B is a well known model which includes resale and small or medium business in the improve or run the offers models. 

Getting your global accounts which are fewer but the largest dollars and require the most qualified people in every stage of the presale, sale, post sale touches are high for anyone selling to these accounts, as they are also in most countries as well. 

While B2B aspires to larger demographics the ability to adhere to the laws in many regions and ability to be accountable in situations where a customer requires service on an offer for example.  

Tesla has aspired to be a major automotive player in the market, yet six states are objecting to the "cut out the distribution model" with an employee run executive paid low and benefits passed on to allow the direct engagement with every buyer, well the cost will prompt the automotive manufacturer into a different business model very soon. 

The objection is a valid one, but not one states should be in a position to make.  No service and no charge stations, neither will be permitted through any city without the power of major brands backing the requirement.  

Only the big names will upgrade their stores and partner to do hydrogen versus just changing the battery to another with more potential for harming the environment. 
Just in Time buying models

Unlike the plan, forecast and overproduction we do today, it would help to transform into the just in time model for 20 and 30 types business requirements. 

Reminder
20 = change and improve what we do
30 = innovation (invent) and transformation to do something totally new

Patterns we can derive from the two types
-a slower time to realize the benefits in 20 slower than running and operate but not as slow as 30 innovate. 

Revenue is not immediate but worth the wait as most deals are above 50k, 
The Accounting system is designed to recognize revenue immediately, in all 20 and 30 types we must exclude the revenue until all parts are delivered and working to the customers specification.  INVOICE HOLD - CAUSE IS NOT SALES rather an inability to normalize the complexity associated with the largest customers. 

It hardly helps that these same customers are strategic partners in many offers therefore we buy in large volumes just as often as we sell. 

Keeping the two transaction types clear is near impossible trying to manage the different requirements associated with change and transformation or invention with global accounts as suppliers and customers at the same time.  

What if you were putting your expenses through the revenue channel?  Its been done and even in an audit it was done and the stakeholders didn't understand the problem with the actions they were doing. 

Far fewer orders, makes less familiar workers nervous when the legal forms are unlike the immediate and volume they are dealing with daily. 

Everything looks wrong when you are facing millions and contracts rather than thousands and a purchase order.  

We really haven't invested in the global marketplace, nor the resources and skills to innovate and respond quickly to the innovation skills required. 

What if mobility is no different than video conferencing only on a smaller device?  We keep inventing when we are really just improving and we really can use the same methods and tools to deliver universality. 

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