The
Proact Methodology - 3. Opportunity Assessment
Opportunity
Assessment flows hand-in-hand with Baseline Assessment. The Proact
approach is to leverage the Reference Models to focus on highly
productive areas for transformation. This involves assessing Basic
Service Function capabilities against two criteria:
Strategic Driver Relevance.
Opportunity to Improve.
Strategic
driver relevance involves analyzing each Basic Service Function
in terms of its ability to support the Strategic Drivers of the
enterprise, which may change rather suddenly in dynamic business
environments. Basic Service Functions will contribute differently
depending on whether the driver is improving customer service or
reducing operating costs. Companies can place a higher focus on
business growth or on margin improvements. Sometimes protecting
the customer base from erosion to new competition becomes more important
than the bottom line. Whatever the changing conditions, a small
number of strategic drivers will emerge to provide guidance in prioritizing
functions for opportunity assessment.
Opportunity
to improve comes from the Baseline Assessment of those same
Basic Service Functions. The degree to which performance is deemed
sub par (either to expected targets or to outside competitive benchmarks)
will create a further ranking of Basic Service Functions.
These two criteria can be charted using the convention 2X2 grid as shown below. Those Basic Functions that score the highest in combined Strategic Driver Relevance and Opportunity Improvement scores are the ones on which to focus all energies.
Plot of Basic Service Functions for Opportunity Prioritization
Opportunities for impacting a given Basic Service Function are explored for all four views of the Proact Framework using the appropriate Reference Models. These opportunities may include:
Mergers and acquisitions
Developing e-business channels;
Reorganizations;
Process re-engineering;
Enhancing systems and IT infrastructure capabilities;
Etc.
Once these opportunities are defined, development of the highest impact business cases as well as target architectures can proceed in parallel.
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