The New Business Model Designing Method to Implement the Strategy in the To-Be Business Model

Abstract

There are some methods for business modeling, but we can describe only the as-is model with these methods. These methods don’t show how to build up the to-be model aligned with the enterprise strategy. They suppose to use BSC, generally recognized as the strategy management tool, but there is no explanation how to connect BSC to the business model. In addition, the size of business process is generally incoherent, so it makes quite difficult to design the process cooperation between different companies, such as SCM. Beside this, the designed business process model is often not adapted to the system model.

In this report, we propose the new business modeling method, which can resolve these problems. This method shows how to determine the improving range of business processes, based on BSC, the strategy maps and scorecards, and how to design new right business processes with using the reference model, and how to verify the achievement of KPIs.

For the purpose, we developed the UML based business modeling method. The reason of using UML is to assure seamless connectivity between the business model and the system model. We also designed the new reference model by comparing SCOR and APQC PCF. Based on the these outcomes, we could define relations between business processes in the reference model and Kaplan and Norton’s new strategy map templates. By using the strategy map templates and related reference model, it will be easier to define the proper strategy, and to design the proper new business process.

In this report we show all the structure of its strategy oriented new business modeling method.