1) The document discusses using a "Value Chain Canvas Model" (VCCM) approach to desynchronize business strategy and IT investment cycles. It aims to identify areas where heavy IT investments are not needed and how to deploy infrastructure quickly even if provisional. 2) It describes a layered model of technical architecture with layers including target situations, value contributions (which add value), and processes. Value contributions depend on understanding different target situations and customizing products/services. 3) Longer, more branched value chains are enhancing value contributions by bringing in more services, intelligence, and cooperation between stakeholders throughout the chains. This network allows each operator to provide their best value.

1. VCCM for EA
René Mandel
May 2013
1
Value Chain Canvas Model for Enterprise Architecture
Introduction
The world economy is going through a process of radical transformation as a result of rapid
technological change that involves all professions.
IT is at the center of this transformation. Indeed, Information Technologies associated with Human
Resources have over the years become the main productive resource in finance, insurance, public and
social services, health, transport and telecommunications, etc.
For several decades, these infrastructures have been vital to all company support functions and they
are now playing a decisive role in strategic orientation thanks to "Business Intelligence".
This technological invasion has extended beyond the limits of the closed world of companies,
outwards to company relations with their environment, thus calling into question traditional operating
modes. Information Technology is triggering the "Re-engineering" of economy, a process whereby
economic stakeholders redistribute roles and reorganize their products and services in order to satisfy
the end customer.
On the other hand, large companies and organizations cannot suddenly abandon old applications that
still enable them to do business and guarantee ongoing service.
At the same time, they cannot remain static and must act if they are to succeed in the short-term where
challenges cannot wait. They need to ‘renovate’ their IT organization for the medium term, in those
areas where the reorganization of main IT functions and systems is unavoidable.
With IT resources acquiring such preeminence and an increasingly strategic position, companies must
search for their vocation and clearly position themselves on market, and make the wisest IT
investments.
"Strategic Alignment" is one approach often used to guide this investment process: IT investments
are defined based on company strategic orientations and moves. Indeed, technology does not exist for
technology’s sake and must be regarded as one production factor among others.
This approach has practical limits though. Strategic cycles are not always controllable and certain
cycles are short, whereas basic trends extend over longer time periods. Company’s market position,
disturbances that occur, and desire to change business model parameters often require strategic moves
and reactivity.
IT also has its own cycles. Some of these cycles are short, for example, the generation of Internet sites,
while others are necessarily longer, particularly when modifying processes with a large number of
users, or when setting up a single information system in place of an intensely complex and
semantically incoherent initial system.
Can one reasonably hope to synchronize these two types of cycles? At a Paris round table organized
by the " IT system urbanists’ club" in Paris, the CIO of a multinational company made a very true
statement: " Strategic Alignment is an illusion! ".
Another approach can also be used: proposing the best of Technology, and flexible new offers
strongly driven by the perspectives of B2B, CRM, SCM and process automation technologies, EAI,
etc. The potential is huge, but on what focus in priority? Company management teams cannot only be
guided by what is on offer. Some "light" projects may lead nowhere, while others, seemingly based on
the most serious technological foundations, have dug tunnels...and not always seen light of day at the
end!
The purpose of this article is to explore a third direction based on a method we have named the
"Value Chain Canvas Model" : VCCM.
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2. VCCM for EA
René Mandel
May 2013
2
Desynchronizing Business Strategy and IT Investment
This third approach aims at desynchronizing strategic and IT investment cycles.
Indeed, strategic moves can only succeed if the right strategic IT investments have been made
previously, with a few possible inconsistencies to be corrected in the short term.
The "obvious" question about where to invest is not enough. One has also to ask where not to invest
heavily and how to deploy the IT infrastructure quickly even if it is provisional.
In order to better understand the issue, let us for a moment set aside strategic considerations for a
specific company and raise the question of flexibilities available for daily strategic actions.
What flexibilities do stakeholders currently use?
Towards "Situation-driven" Value Contributions
Although we do not intend to develop this analysis, let us just say that companies are evolving towards
Technical Architecture according to a " Model arranged in layers ". The principle of such a model is
identical to that of the famous ISO standard model for telecommunications. We will discuss only the
upper layers of the model, i.e. those closest to business issues.
There is clearly a "Process" layer. This can be materialized in the form of an industrial process, a
workflow, processes between applications, all such processes being resources located at a lower level.
However, a process is only a way of doing things. If it uses "heavy" resources allocated only for major
industrial projects (such as a roll train, high-speed train or a nuclear power station), its implementation
will inevitably include significant "productive detours". On the other hand, if resources include a mix
of IT and HR resources, all kinds of processes become possible, since the handling of documents,
sound, and images are today free from physical constraints. Any lack of flexibility is due to inherited
applications, existing information systems and to the natural resistance to change that is latent in
people and social structures. After this natural delay, new powerful processes will eventually emerge.
From this point of view, above the process layer, "Value Contribution" layer contributes or adds
value. Processes are only means to a valuable end: selling a product, making a delivery to a customer,
collecting receivables, purchasing materials, launching a new product on the market, etc.
Our era is clearly marked not only by changes in processes, but also most importantly, by changes in
value contribution. Information Technology indeed makes it possible to improve this contribution
through better "adjustment to the situation" and customization of a product or service based on the
context of the target. This concept applies equally well to CRM, B2B, administrative relations, Egovernment, etc. Internet is a true laboratory to explore all kinds of situation-driven projects. Various
"Territories" of businesses in the natural physical space become "Typical problems" in the new space,
where development of natural monopolies is under way. But these value contributions are effective
only due to existing “situations” which encompass the targets, and existing issues related to these
situations. Businesses exist only to help customers satisfy their needs. And customer’s situation is
itself linked to change; change due to a new event, or to an ongoing phenomenon with no clear
rupture. For example, there would be no claims insurance if there were no damages.
The value contribution layer is therefore dependent on the upper layer that characterizes the target
situations. Customer focus is the first phase towards discovering this function. It seems logical to
move beyond this notion to determine the end purpose, which must be served by the value
contribution. For example, a rail operator transports travelers, he in fact responds to three very
different client situations: home to work transportation, business travel and leisure travel. In these
cases, the basic "transport segment" is the same, but different services are provided to each user. It is
most important then for each business to identify these situations, since the value contribution can be
customized and include all the associated services.
R. MANDEL
24/02/2014

3. VCCM for EA
René Mandel
May 2013
3
Target situations
Value contributions
Processes
Figure 1: 3 layers close to business issues
The objective bases of this level are "perpetual" situations. For instance, in insurance, there will
always be damages to deal with and, in transport, there will always be passengers to transport…and
these damages and passengers are part of a standard context. If we search for such causal chains, we
can identify the perpetual situation, or the architecture of situations, which is completely objective and
unchanging. In certain professions, for example tourism, this architecture has been exploited since the
development of booking networks. Marketing helps target the products and services on offer in an
increasingly more precise way, including all the relevant components of service.
Thus it appears clearly that some stable ‘invariants’ are inherent to each business. But conversely,
value contributions must be highly flexible if they are to support competitive and situation-driven
moves on the market. This is a major challenge.
Enhanced "Value Contributions" Thanks to Longer Value Chains With Many Branches
Value contribution will continue to evolve. Not only does it adapt more and more to perpetual
situations, thanks to the flexibility of IT resources, but its contents also change. More services and
more intelligence due to the knowledge brought by the information system. This is made possible
thanks to stakeholder co-operation throughout the value chains. These chains are longer and new links
appear. For instance, a specialized Internet portal with a search engine suited to the target situation
creates a new intermediation link. In telephony, calls from mobile phones are now part of complex
value chains, for instance in the case of car breakdown. These chains also have more branches, since
new diversified services supplied to the target require operations that are no longer linear, but arranged
in networks with multiple operators.
This network system is a definite asset since it allows each operator to supply the best part of its value
contribution, and makes it possible to resort to new contributions by connecting a new specialized
operator to the network. For example, a site dedicated to house hunting will provide all the services
directly related to this type of search (features and types of housing), but also all those relating to the
physical environment (public facilities available) in the area, financial engineering, insurance, legal
aid, domestic appliances, etc. Internet is used here as an example, but the same can be applied to an
Intranet that provides services to a range of professional people.
However, experience shows existence of invariants that are specific to the value chains that develop in
the networks. Connections between the various links of the chains are located to some extent in very
specific positions. For instance, deregulation conducted by the European Community in the rail
transport sector has led to a differentiation between the operator of railway infrastructures and the
actual track operators. For as long as there are railways, this dividing line in the value chain for this
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4. VCCM for EA
René Mandel
May 2013
4
particular field will remain clear and stable. The same reasoning applies to phone companies, to
utilities, etc. In all sectors, such a division exists with various configurations possible: integrated
configuration, co-specialized configuration, etc.
The productive axis, which provides customer service, is organized based on a canvas that is specific
to the trades involved and which happens to last for a long time.
The Chessboard of Economic Configurations
Analyzing the current dynamic of economy we can consider that the game played by stakeholders
within this multi-faceted value chain network is configured according to a stable, specific to each
business, base.
We have outlined one of the dimensions of such a canvas, that of the value chain.
There is clearly another dimension of this canvas, i.e., the situation axis. The business situation
targeted do not remain stable. It always evolves according to immutable laws. For example, the
approach of a plane landing on an airport runaway is entirely fixed and phased. Services supplied by
the airport authority are also directly related to plane evolution in this situation. The same applies to
the course of events experienced by passengers. This example shows a situation with a series of
events organized in a chronological sequence. In other cases, events might not be organized in a
chronological sequence, but according to other time scales. Nevertheless, this sequencing follows
almost unchanging laws or models, some alternatives of which are tested on the Net. For example, a
local authority has to provide public services to its local inhabitants: Marriages, births, deaths are civil
status events that have to be registered by the registry office, day-nurseries have to be organized and
records of electoral rolls maintained. Regulations may differ according to countries, but the same basic
canvas is common to those events.
Dist ribut ion
Preparat ion of
t ravel
Rout ing
of/t owards
airport
Parking
Informat ion,
displacement ,
airport services
Check in
Boarding
Trade, hotels,
rest aurant s...
Cont rols
Flight
luggage
Platform
Platform
operators
operators
E
E
X
X
E
E
C
C
U
U
T
T
II
V
V
E
E
Travel
Travel
agency
agency
//
Com pany
Com pany
Rail
Rail
service
service
Parking
Parking
Services t oo
Services t
passengers
passengers
( ( lounge...)
lounge...)
Trade
Trade
Controls,
Controls,
safety
safety
(police
(police
force …)
force …)
AssistanAssistance
ce
Ser vv iceint eg rat or f f or t t het t r av elch ain op erat or ss
Ser ice int eg rat or or he r av el chain op erat or
//
S
S
U
U
P
P
P
P
O
O
R
R
T
T
Ow ner and I Int egr at or of t t heinst allat ions of plat f f or m
Ow ner and nt egr at or of he inst allat ions of plat or m
Suppl i er ss
Suppli er
and
and
indust r i al
indust r i al
sy st em
sy st em
oper at or
oper at or
Suppli er ss
Suppli er
and
and
i ndust r r ial
i ndust ial
syst em
syst em
oper at or
oper at or
C
C
O
O
M
M
M
M
U
U
N
N
II
C
C
A
A
T
T
II
O
O
N
N
Integrators
Integrators
//
E
E
X
X
C
C
H
H
A
A
N
N
G
G
E
E
Industrial
Industrial
Operators
Operators
Figure 2 : passenger canvas on an airport platform
This second dimension corresponds to the objective world "life". This world is not fixed, rather its
situation evolves constantly, whether the customer is an individual, a firm, an association, or any other
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5. VCCM for EA
René Mandel
May 2013
5
social structure.
These two dimensions of the canvas make up the chessboard of economic configurations. Economic
actors play jointly on it and collaborate along value chains. Some very large companies sometimes
cover a full row of squares, due to their situation of natural monopoly in a given productive sector.
Players within this canvas configuration will then play the various moves required for competition,
purchase, concentration, specialization and niche markets.
Of course, IT architecture will be used as an instrument for these maneuvers. It can be used to
facilitate collaboration, bring more value than the competitor, develop customer loyalty or better
anticipate on possible strategic developments. Older IT structures may also become an obstacle to
such moves. What will be the cost of making our Company’s present IT system consistent with that of
the firm we buy out? What projects shall we start first to meet short-term needs, while at the same
increasing our strategic flexibility? The canvas model provides a reference framework for this type of
thinking.
The Universe of Value Contribution
This is an objective approach of business and instrumentation development through "extended"
processes, networks of value chains and adequate IT architectures. After having tried out this concept
in various professional sectors, one realizes that a firm seldom acts within only one single value
universe.
Large companies often have multiple products with several markets and distribution channels. Their
various offerings operate in disjointed value universes. These worlds are disjointed because objective
worlds are also disjointed. Situations may be completely separate and value chain components may be
entirely specific to a given world. This does not mean that there are no links between these value
universes. Indeed some production processes and information systems are common. But as the lives of
objects of these worlds are different, making distinctions between them leads to simplification.
Conversely, we have seen projects in the past trying to fit all situations into the same model which
created over-complexity. Even with the best development methods, the best technologies and the best
intentions, projects often produce the tunnel effect.
Separation into different universes introduces the third dimension of our economic chessboard. For
example, on an airport platform, we have a plane universe and a passenger universe.
Dist ribut ion
Preparat ion of
t ravel
Rout ing
of/t owards
airport
Parking
Informat ion,
displacement ,
airport services
Check in
Boarding
Trade, hotels,
rest aurant s...
Cont rols
Flight
programmi
ng
Flight
luggage
Slots
allocation
Ressource
allocat oion
Unloading
Rotat ion
Loading
Cont rols
Other
services
around plane
Takeoff
Landing
Flight
Platform
Platform
operators
operators
Platform
Platform
operators
operators
E
E
X
X
E
E
C
C
U
U
T
T
II
V
V
E
E
Travel
Travel
agency
agency
//
Com panyy
Com pan
Rail
Rail
service
service
Parking
Parking
Services t oo
Services t
passengers
passeng ers
( ( lounge...)
lou nge...)
Trade
Trade
Controls,
Controls,
safety
safety
(police
(police
force …)
force …)
AssistanAssistance
ce
Ser vice int egrat or f f or t t het t r avelchain operat or s
Ser vice int egrat or or he r av el chain operat ors
//
S
S
U
U
P
P
P
P
O
O
R
R
T
T
Ow ner and I Int egr at or of t t heinst allat ions of plat f f or m
Ow ner and nt egr at or of he inst allat ions of plat or m
Suppl i er ss
Suppl i er
and
and
i ndust r iral
i ndust i al
sy st em
syst em
oper ator
oper at or
Suppl i er ss
Suppl i er
and
and
i ndust r i al
i ndustr i al
system
syst em
oper at or
oper at or
C
C
O
O
M
M
M
M
U
U
N
N
II
C
C
A
A
T
T
II
O
O
N
N
Integrators
Integrators
Trafic regulation
Trafic regulation
Controls,
Controls,
safety
safety
AssistanAssistance
ce
Plane
Plane
process
process
Air control
Air control
of platform
of platform
Ser vice in t eg rat or f f or t t het t r av elch ain op erat orss
Ser v ice int eg rat or or h e r avel ch ain op erat or
//
//
E
E
X
X
C
C
H
H
A
A
N
N
G
G
E
E
E
E
X
X
E
E
C
C
U
U
T
T
II
V
V
E
E
Industrial
Industrial
Operators
Operators
S
S
U
U
P
P
P
P
O
O
R
R
T
T
Integrators
Integrators
//
Ow ner and I Innt eg r at orof t t h einst allat ion s of pp latf or m
Ow n er and t egr at or of he inst allat ions of lat f or m
Suppl i er s
Suppl i ers
and
and
i ndust ri al
indust r i al
syst em
syst em
operat or
oper at or
Suppl ier ss
Suppl i er
and
and
indust r ial
i ndust ri al
syst em
system
oper at or
operat or
Figure 3: passenger universe and plane universe on an airport platform
This approach is very fruitful since it covers the entire spectrum of the value chain, depending on the
professional sectors. It covers the end parts of the chain of course, since mixing different universes
with disjointed markets that have their own specific logic and grow at a different pace, can lead to a
R. MANDEL
C
C
O
O
M
M
M
M
U
U
N
N
II
C
C
A
A
T
T
II
O
O
N
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24/02/2014
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E
X
X
C
C
H
H
A
A
N
N
G
G
E
E
Industrial
Industrial
Operators
Operators

6. VCCM for EA
René Mandel
May 2013
6
strategic IT error.
But the concept can also possibly apply to other parts, for instance, to the purchasing chain, to the
world of "administrative" relations covering invoicing, statements of account, receipts, etc. This
applies also, for example in the automotive industry, to the offer creation world, where collaborative
action is developed.
A Tool to "Locate" IT Investments
Value Chain Canvas Model, as succinctly described above, provides latitudes and longitudes for
locating geographic positions of the business. It makes it possible to locate IT investments in direct
relation with the location of the value contributions. This helps set priorities for projects, place them
on stable perimeters and preserve flexibility, while anticipating new economic configurations, as well
as enhanced value for the services supplied, and implementation of wider reaching processes. This is a
neutral tool with no specific business strategy or IT bias.
1
Passenger
Course
Plane Course
Territorial
3
The 3 business
canvas
dimensions:
1 productive axis
Assi stance
2 situations axis
3 univers
Operators
Opérateurs
Operators
2
Service int egr at or f or t he t r avel chain oper at or s
Ow n er and I nt egr at or of t he
inst allat ions of plat f or m
Suppl i er s
and
i ndust r i al
sy st em
oper at or
Figure 4: 3 dimensions of Value Chain Canvas Model
In this search for IT investment flexibility, increased profitability and effectiveness, and in our attempt
to desynchronize IT investments and strategic moves, we have come to the conclusion that there are
objective and permanent invariants. Experience shows that a system cannot be flexible in all
directions, and that it in the long run may prove to be quite rigid in an unforeseen direction. This is
why IT experts have always sought to base their systems on invariants. It is the profession’s kind of
search for the "Grail". IT investments have for a long time been based on a "functional" division of
the company. This vision is no longer valid since companies can no longer be seen as isolated from
their partners and customers, and because IT systems can no longer be designed according to a single
axis, the dimension that once created the ‘vertical', 'stove-pipe' systems of traditional applications.
Value Chain Canvas Model provides a stable, neutral and multidimensional representation,
readable by Management as well as by CIOs and project managers.
R. MANDEL
24/02/2014

7. VCCM for EA
René Mandel
May 2013
6
strategic IT error.
But the concept can also possibly apply to other parts, for instance, to the purchasing chain, to the
world of "administrative" relations covering invoicing, statements of account, receipts, etc. This
applies also, for example in the automotive industry, to the offer creation world, where collaborative
action is developed.
A Tool to "Locate" IT Investments
Value Chain Canvas Model, as succinctly described above, provides latitudes and longitudes for
locating geographic positions of the business. It makes it possible to locate IT investments in direct
relation with the location of the value contributions. This helps set priorities for projects, place them
on stable perimeters and preserve flexibility, while anticipating new economic configurations, as well
as enhanced value for the services supplied, and implementation of wider reaching processes. This is a
neutral tool with no specific business strategy or IT bias.
1
Passenger
Course
Plane Course
Territorial
3
The 3 business
canvas
dimensions:
1 productive axis
Assi stance
2 situations axis
3 univers
Operators
Opérateurs
Operators
2
Service int egr at or f or t he t r avel chain oper at or s
Ow n er and I nt egr at or of t he
inst allat ions of plat f or m
Suppl i er s
and
i ndust r i al
sy st em
oper at or
Figure 4: 3 dimensions of Value Chain Canvas Model
In this search for IT investment flexibility, increased profitability and effectiveness, and in our attempt
to desynchronize IT investments and strategic moves, we have come to the conclusion that there are
objective and permanent invariants. Experience shows that a system cannot be flexible in all
directions, and that it in the long run may prove to be quite rigid in an unforeseen direction. This is
why IT experts have always sought to base their systems on invariants. It is the profession’s kind of
search for the "Grail". IT investments have for a long time been based on a "functional" division of
the company. This vision is no longer valid since companies can no longer be seen as isolated from
their partners and customers, and because IT systems can no longer be designed according to a single
axis, the dimension that once created the ‘vertical', 'stove-pipe' systems of traditional applications.
Value Chain Canvas Model provides a stable, neutral and multidimensional representation,
readable by Management as well as by CIOs and project managers.
R. MANDEL
24/02/2014