Creating a DTO to Better Manage the Cost of Quality - Mike Haley

Creating a DTO to Better Manage the Cost of Quality - Mike Haley

What is a Digital Twin of an Organization (DTO)?

A DTO is a dynamic software model of any organization that relies on operational and contextual data to understand how an organization operationalizes its business model, connects with its current state, responds to changes, deploys resources and delivers customer value.
Source: Gartner®, Technologies Supporting a DTO (2021)
 
A DTO provides a virtual model of complete businesses which enables business leaders to analyze, and tweak business processes as needed. DTOs are built to analyze an organization’s processes or services in a virtual environment to run simulations and address issues which may confronted the business in real-life situations.
Source: AI Multiple, Digital Twin of an Organization (2021)

 

How BPAC & CBP support a Digital Twin of an Organization (DTO)

 

Gartner’s Definitions for DTO Technologies

Business operating model capabilities:

• Support for modeling and analysis of business operations indicating how capabilities and other resources are deployed to deliver value to the organization’s stakeholders

• Models of offerings (products, services and information) delivered to customer segments

• Models of resources (such as machines, IT systems and people) that perform the operations and thus are connected to the entire business operating model

Business performance management capabilities:

• Support for multiple measurement schemes (such as operational performance indicators, financial models, and service-level agreements) and how they interact within the business operating model

• Scenario testing, predictive and prescriptive analytics based on the business operating model

• Cost/value analysis (balancing cost savings with operational effectiveness and business value)

Creating a Digital Twin of an Organization (DTO) to Better Manage the Cost of Quality

Source: Gartner® “Market Guide for Technologies Supporting a DTO” (2021)

 

What is Business Process Analysis & Costing (BPAC)?

CloseReach Quality & Compliance SIG –March 23, 2022Creating a Digital Twin of an Organization (DTO) to Better Manage the Cost of QualityA Collaborative Approach to Continuous Improvement, Operations Management, and Better Costing & Profitability Analysis  CloseReach Quality & Compliance SIG –March 23, 2022Today’s Agenda1.Introductions2.What is a Digital Twin of an Organization (DTO)?3.What is Business Process Analysis & Costing (BPAC)?4.How can DTO and BPAC monitor and optimize the Total Cost of Quality (TCQ)5.Collaborative Business Planning (CBP) demonstration6.The CBP Cloud and Common Configurations/Users7.Q&ASlide 1 CloseReach Quality & Compliance SIG –March 23, 2022Landmark Decisions Inc.Mike Haley, President•30 years of BPAC training/implementation expertise•Focus on Client/Partner training and coaching•World-wide BPAC experience and implementations Derek Sandison, Performance Architect•Former software company founder & executive•Focus on product management for business modeling and organizational performance applications•World-wide BPAC experience and implementations •Canadian niche consulting firm founded in 1993. Offices in Halifax and Toronto•Core competencies are working with managers and C-level executives on operational modeling, workload analysis, costing & profitability analytics, service delivery, performance management,  scorecarding/dashboards, and technology enablement to support decision-making•SMEs with the Consortium for Advanced Management –International (CAM-I)•Partner with CPA Canada/Provinces and Financial Management Institute (FMI) –workshops, webinars, presentations on operational planning and costing and Strategic Management Accounting Review Committees (SMARC)•Strategic alliances with a wide variety of consulting and training partners to support their BPAC/CBP practices•Partnered with CBP-Software, CloseReach, and QualiWare to help organizations implement a DTO solution for resource management, planning, and operational costingSlide 2 CloseReach Quality & Compliance SIG –March 23, 2022What is a Digital Twin of an Organization (DTO)?Slide 3A DTO is a dynamic software model of any organization that relies on operational and contextual data to understand how an organization operationalizes its business model, connects with its current state, responds to changes, deploys resources and delivers customer value. Source: Gartner®, Technologies Supporting a DTO (2021)A DTO provides a virtual model of complete businesses which enables business leaders to analyze, and tweak business processesas needed. DTOs are built to analyze an organization’s processes or services in a virtual environment to run simulationsand address issues which may confronted the business in real-life situations.Source: AI Multiple, Digital Twin of an Organization (2021) CloseReach Quality & Compliance SIG –March 23, 2022Source: Gartner® “Market Guide for Technologies Supporting a DTO” (2021)How BPAC & CBP support a Digital Twin of an Organization (DTO)BPACCBPBusiness performance management capabilities:•Support for multiple measurement schemes (such as operational performance indicators, financial models, and service-level agreements) and how they interact within the business operating model•Scenario testing, predictive and prescriptive analytics based on the business operating model•Cost/value analysis (balancing cost savings with operational effectiveness and business value)Slide 4Business operating modelcapabilities:•Support for modeling and analysis of business operationsindicating how capabilities and other resources are deployed to deliver value to the organization’s stakeholders•Models of offerings (products, services and information) delivered to customer segments•Models of resources (such as machines, IT systems and people) that perform the operations and thus are connected to the entire business operatingmodelGartner’s Definitions for DTO Technologies: CloseReach Quality & Compliance SIG –March 23, 2022What is Business Process Analysis & Costing (BPAC)?

Current Tools for BPAC

• LEAN Value Stream Mapping (VSM)

• Activity-Based Planning (ABP)•Operational/Financial modeling

• Implementation workshops 

• BPAC/CBP coaching & support

 

LEAN –What is it?

A way of doing business that drives a culture of continuous improvement and service excellence by driving a focus on the customer LEAN business management system provides frameworks, methodologies (e.g., PDCA),principles, tools, and techniques:

➢ To improve value for clients

➢ To improve the way we work

➢ To identify and eliminate unnecessary steps (waste) and streamline processes

➢ Enable end-to-end process and performance excellence

 

Benefits of a DTO Model

     

DTO/BPAC/CBP On-Line Training

FREE On-demand YouTube workshop (3 Parts - 3 hours) – presented by Landmark Decisions

 

Four x 3.5 Hour afternoon sessions

April 11-14, 2022 (Noon - 3:30pm Eastern) – delivered by Landmark Decisions

 

White Belt Certification in LEAN – Three x 3.5 Hour afternoon sessions

April 26-28, 2022 (1-4:30pm ADT) – delivered by Landmark and Barrington OPS

 

Hands-on with Collaborative Business Planning (CBP)  – Six x 2 Hour afternoon sessions
May 31 – June 2, 2022 (Noon – 2pm Eastern) – delivered by CBP-Software and Landmark

 

Interested in learning more? Find the live presentation of "Creating a Digital Twin of an Organization (DTO) to Better Manage the Cost of Quality" presented by Mike Haley on our YouTube Channel

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