Holistic Business Model Transformation: Systematic Process Digitization with the Support of the MITO Method Tool

309 Pages·2022·13.215 MB·English

by  Hartmut F. Binner

Hartmut F. Binner
Holistic
Business Model
Transformation
Systematic Process Digitization with the
Support of the MITO Method Tool
Holistic Business Model Transformation
Hartmut F. Binner
Holistic Business Model
Transformation
Systematic Process Digitization
with the Support of the MITO Method Tool
Hartmut F. Binner
Prof. Binner Akademie
Hannover, Germany
ISBN 978-3-658-37366-5 ISBN 978-3-658-37367-2 (eBook)
https://doi.org/10.1007/978-3-658-37367-2
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Preface
The question of whether another MITO Organization 4.0 book on holistic business model
development and design should be published in addition to the 5 MITO books already
mentioned in the bibliography is relatively easy to answer. The increasingly comprehen-
sive and sophisticated cloud services from various providers with integration into the
company-specific digital business platform enable unprecedented networking of custom-
ers, suppliers, employees, products, services, fellow competitors and all other stakeholders
in real time. According to these cloud service providers, their cloud solutions always relate
to improvements in customer value in the horizontal value chain without, however, ques-
tioning the function-oriented organizational barriers in the companies to which they offer
their cloud services.
There is still no consistent process orientation in companies despite this digitization-
driven development. Although the need for change is invoked in ever new leadership con-
cepts and change management strategies, as is currently the case with the topic of “agility”,
the existing function-oriented organizational structures are not even mentioned in the pro-
cess. How can a cross-company horizontal value chain be designed optimally, i.e., with flat
hierarchies and few interfaces as the basis for process digitization, if there are hierarchical
and vertical organizational structures based on the division of labor and deep hierarchies
that prevent employee-oriented participative involvement based on the principle of com-
mand and obedience? Even if the currently intensively discussed democratic leadership
concepts and agility methods focus precisely on self-determined team organization, sus-
tainability is missing because of the lack of organizational structure changes due to the
non-existent or non-possible transfer of responsibility within a process-oriented value cul-
ture. Likewise, the methodological competence for the practical implementation of these
change management activities, which is the focus here, is lacking.
Furthermore, the knowledge gained from the application of the MITO Organization 4.0
configuration approach and the questions of the users repeatedly result in suggestions for
detailed descriptions and extensions of the MITO model to a holistic business model in
German “Geschäftsmodell”. This includes the following explanations of the MITO model
scalability and integrability of many well-known design concepts to complete the holistic
Organization 4.0 business model development and purpose design approach.
v
vi Preface
In addition, there are more and more new use cases of the MITO method-tool approach
with the end-to-end analysis, diagnosis, therapy and evaluation, which are mapped in the
form of standard reference solutions, for example for the implementation of the CSR
prequalification, the occupational health and safety regulation or currently the new risk
governance, compliance and anti-corruption standards.
The MITO tool-supported holistic business model transformation, which is the focus
here, with its organizational, cultural, and product- or customer-specific design topics, tak-
ing into account the digitization trends described at the outset, also supplements the exist-
ing MITO model and method knowledge and bundles it into a holistic Organization 4.0
design approach as the basis for a successful change management process. In the MITO
model, Deming’s PDCA improvement cycle, Kaplan/Norton’s Balance Score Card con-
cept or the EFQM Excellence Model can also be mapped together with the DGQ’s TQM
approach. In this book, the basic statements already available are largely dispensed with.
I would like to thank my office manager, Mrs. Carola Groth, for coordinating the prepa-
ration of this book, Mrs. Anna Scheckter for creating the pictures, Mr. Roland Meiswinkel
for the corrections, and especially Hernn Philipp Schmidt for the critical revision of
the texts.
Hannover, Germany Hartmut F. Binner
Contents
1 Introduction 1
1.1 Management Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 MITO Model Links Process Management Top-Five Structure and
Top-Ten Design Core Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.3 MITO Model Scaling and Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.4 Cloud-Based Business Model Platform Development . . . . . . . . . . . . . . . 12
2 Systematic Business Model Development and Design 13
2.1 Holistic Business Model Change Management . . . . . . . . . . . . . . . . . . . . 13
2.2 MITO Business Model Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.3 Business Model-7 W Basic Question Description . . . . . . . . . . . . . . . . . . 19
2.4 7 W Basic Question Answering with the MITO Method Tool . . . . . . . . . 21
2.4.1 Answers to the Basic Question 1 “Why? (Meaningfulness/
Purpose) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.4.2 Answers to Basic Question 2 “Who?” (Customer Value
Proposition) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.4.3 Answers to Basic Question 3 “What?” (What Products and
Services) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.4.4 Answers to Basic Question 4 “How?” (Which Processes with
Which Roles?) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.4.5 Answers to Basic Question 5 “With What?” (What Resources,
Staff and Infrastructure?) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
2.4.6 Answers to Basic Question 6 “With Whom?”
(Which Partners and Suppliers?) . . . . . . . . . . . . . . . . . . . . . . . . 55
2.4.7 Answers to Basic Question 7 “How Much?” (Revenue Model) 59
2.5 MITO Business Model-Related Corporate Goal, Strategy and Action
Requirement Analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
2.6 Systematic Business Model Change Analysis . . . . . . . . . . . . . . . . . . . . . 71
2.7 MITO Tool-Supported Requirements Analyses . . . . . . . . . . . . . . . . . . . . 73
2.8 MITO-Supported Mission Statement Development as a Basis . . . . . . . . . 78
2.9 Business Model Segment-Related Target Derivation . . . . . . . . . . . . . . . . 80
vii
viii Contents
2.10 Goal and Strategy Implementation Via the BSC Model . . . . . . . . . . . . . . 84
2.11 M ITO-Supported Company Structure Analyses . . . . . . . . . . . . . . . . . . . . 87
2.12 B usiness Model Strategy Derivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
2.13 I mplementation of Competitive Strategies by GMS . . . . . . . . . . . . . . . . . 90
2.14 S trategic Business Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
2.15 N etworked Initiatives for MITO Business Model Target and Strategy
Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
3 Systematic Process Organization Development and Design 99
3.1 M ITO Model-Related Process Anchoring Control Loop . . . . . . . . . . . . . 99
3.2 C haracteristics of Function- and Process-Oriented Organisational
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
3.3 R ole-Based Process Organisation Structure and Design . . . . . . . . . . . . . 105
3.4 I mplementation of an Integrated Process Organization . . . . . . . . . . . . . . 108
3.5 H ierarchical Process and Task Distribution Within the MITO
Control Loop Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
3.6 S tarting Points for the Implementation of Process Orientation in the
Organisation 4.0 Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
3.7 P rocess-Related Organizational Structure: Quantity Structure Analysis . . . .115
3.8 P rocess Map Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
3.9 P rocess Connector and Interface Description . . . . . . . . . . . . . . . . . . . . . . 118
3.10 S ystematic Interface Reduction with the MITO Method Tool . . . . . . . . . 120
3.11 P rocess Design Priorities for Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
3.12 M ito Tool-Based Standardisation Analysis . . . . . . . . . . . . . . . . . . . . . . . . 124
3.13 M ITO Tool-Supported Value Stream Target Evaluation . . . . . . . . . . . . . . 126
3.14 S ystematic Process Potential Analyses . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
3.15 P rocess Design Tasks in Shop Floor Management . . . . . . . . . . . . . . . . . . 137
3.16 M ITO Method Tool Supported Process Failure Mode and Effect
Analysis (PFMEA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
3.17 M ITO Tool-Supported Design of Work Systems According to
DIN EN ISO 6358-2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
4 Method-Based Integrated Process-Related Leadership and Management
System Development 149
4.1 B alanced End-to-End Business Model-Target System Implementation . . . 149
4.2 C ybernetic Management and Control System Structure . . . . . . . . . . . . . . 151
4.3 I nteraction of the MITO Organisational Subsystems . . . . . . . . . . . . . . . . 156
4.4 O verall Conception of the Process-Oriented Management and
Leadership System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
4.5 E nd-to-End Target Agreement Process . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
4.6 M ITO-BSC Targets in the Management System . . . . . . . . . . . . . . . . . . . 165
4.7 C onsistent BSC-Target-Key Figure Linkage in the Horizontal Value
Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Contents ix
4.8 Contemporary Target Indicators for Employee Appraisal . . . . . . . . . . . . 170
4.9 Role-Based Employee Qualification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
4.10 Implementation of Integrated Management Systems (IMS) as Further
Management Instruments of the Management and Leadership System . . 175
4.11 Integrated Management System Activity Matrix . . . . . . . . . . . . . . . . . . . 177
4.12 Role-Based Process Description Is the Basis for the Introduction of
Integrated Management Systems (IMS) . . . . . . . . . . . . . . . . . . . . . . . . . . 178
4.13 Systematic Process-Oriented QM System Implementation According
to DIN EN ISO 9001:2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
4.14 Process Organisation Facilitates the Application of Agile Principles . . . . 181
4.15 MITO Method-Tool-Supported Design Thinking . . . . . . . . . . . . . . . . . . . 183
5 Systematic Digitisation Master Plan Development and Implementation 187
5.1 Connectivity and Interoperability Requirements for the Digital
Business Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
5.2 Digitisation Master Plan Implementation Steps . . . . . . . . . . . . . . . . . . . . 190
5.3 MITO Model-Related Digital Target System . . . . . . . . . . . . . . . . . . . . . . 191
5.4 Digital Master Plan Implementation in 3 Steps . . . . . . . . . . . . . . . . . . . . 193
5.5 Answering the Digital Business Model 7 W Core Questions . . . . . . . . . . 195
5.6 MITO Model-Related Value Contributions of a Digital Business
Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
5.7 Business Model Innovation Mapping as a New Strategic Approach . . . . 199
5.8 Basic Description of the Digitisation Components Within the MITO
Business Model Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
5.8.1 Process Digitization Statements in the MITO Leadership
Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
5.8.1.1 Cloud Computing ......................................................201
5.8.1.2 On Premises ..............................................................203
5.8.1.3 Internet ......................................................................204
5.8.1.4 World Wide Web .......................................................204
5.8.1.5 Hypertext ...................................................................205
5.8.1.6 Electronic Mail ..........................................................205
5.8.1.7 Intranet ......................................................................206
5.8.1.8 Internet of Things (IoT) ............................................206
5.8.1.9 IT Data Networks ......................................................207
5.8.1.10 T ransaction and Data-Oriented Business Platform ......208
5.8.2 Process Digitisation Core Statements in the MITO Input
Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
5.8.2.1 Enterprise Mobility, Work Place ...............................209
5.8.2.2 Smart Devices ...........................................................210
5.8.2.3 eLearning Platform....................................................210
5.8.2.4 Gamification ..............................................................210
x Contents
5.8.2.5 Use Case Description ................................................211
5.8.2.6 VR/AR Technologies ................................................211
5.8.2.7 Wearables ..................................................................212
5.8.3 Process Digitisation Core Statements in the MITO
Transformation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
5.8.3.1 MES...........................................................................213
5.8.3.2 Digital Twin ...............................................................214
5.8.3.3 3D Models .................................................................215
5.8.3.4 RFID ..........................................................................215
5.8.3.5 Business Intelligence (BI) .........................................216
5.8.3.6 Smart Data .................................................................217
5.8.3.7 Process Mining ..........................................................217
5.8.3.8 Deep Learning ...........................................................218
5.8.3.9 Artificial Intelligence (AI).........................................218
5.8.3.10 Machine Learning (ML) ............................................220
5.8.3.11 Industrial Robots .......................................................221
5.8.4 Process Digitisation Core Statements in the MITO Output
Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
5.8.4.1 Smart Products and Services .....................................222
5.8.4.2 Social Business/Shop Function .................................222
5.8.4.3 Telematics Solutions (Logistics) ...............................223
5.8.5 Process Digitisation Core Statements in the MITO Line
Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
5.8.5.1 Dashboard .................................................................224
5.8.5.2 Blockchain Technology .............................................224
5.8.5.3 Content Management System (CMS) .......................225
5.8.5.4 CMS Repository Content ..........................................226
5.8.5.5 Document Management Systems (DMS)..................228
5.8.5.6 MITO Tool-Supported Digitisation Strategy
Component Selection ................................................228
5.9 S ystematic Digitisation Strategy Derivation . . . . . . . . . . . . . . . . . . . . . . . 229
5.10 D igitisation Guideline Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
5.11 D igital Business Platform Enables Horizontal and Vertical Process
Networking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
5.12 P rocess-Oriented Implementation of the Digitisation Strategy . . . . . . . . 235
5.13 M ITO Digitisation Components Risk Analysis . . . . . . . . . . . . . . . . . . . . 238
5.14 M ITO-Supported: IT Application Linkage Needs Analysis . . . . . . . . . . . 238
5.14.1 MITO-Supported IT Application Linkage Analysis Example . . 242
5.15 R ole-Based Use Case Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
5.16 M ITO Model-Related Digitisation Benefit Analysis . . . . . . . . . . . . . . . . 246
5.17 M ITO Tool-Based Implementation Assessment of the Process
Digitisation Master Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247