Strategic capability networks

• US 6,249,768 B1
• Filed: 10/29/1998
• Issued: 06/19/2001
• Est. Priority Date: 10/29/1998
• Status: Expired due to Term

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Tulskie, William A. Jr., Bagchi, Sugato
• Primary Examiner(s): Millin, V.
• Assistant Examiner(s): AKERS, GEOFFREY R
• Application Number:
  US09/181,660
• Time in Patent Office: 964 Days
• Field of Search: 705/7
• US Class Current: 705/7.36
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change

Abstract

An integrated framework is disclosed for analyzing a firm in terms of its resources, capabilities and strategic positions, providing a Strategic Capability Network composed of nodes signifying these resources, capabilities and strategic positions, together with relationships between these nodes. The framework provides for assessment of the costs of supporting resources and the value of strategic positions, and the propagation of costs to supported capabilities and strategic positions, and the propagation of value to supporting capabilities and resources. Provision is made for various types of synergetic relationships, with corresponding logical and or connections.

Claims

1. An integrated framework for analyzing a firm, comprising:

a strategic capability network for connecting present resources of said firm through present capabilities of said firm to present value propositions of said firm, said strategic capability network being further comprised of

nodes, each said node being a capability, a resource or a strategic position, each said resource having a cost and each said strategic position having a value; and

relationships between said nodes, each said relationship being directional and being characterized by a degree of support from a supporting one of said nodes to a supported one of said nodes, said degree of support being dependent upon said present resources, said present capabilities and said present value propositions;

one or more future scenarios used for modifying said strategic capability network, each said future scenario serving to modify said present resources, said present capabilities and said present value propositions.

2. The framework of claim 1, further comprising means for propagating said costs to said supported capabilities and said supported strategic positions.

3. The framework of claim 2, wherein said cost propagating means comprises:

drivers applied to said resource nodes and said capability nodes, each said driver allocating a fraction of said supporting resource or said supporting capability to said respective relationship, and each said driver providing that the sum of said fractions for a said resource or a said capability is equal to one;

a cost propagating algorithm which allocates said costs of said supporting resource or said supporting capability to said supported capability or said supported strategic position in proportion to said drivers.

4. The framework of claim 1, further comprising means for propagating said values to said supporting capabilities and said supporting resources.

5. The framework of claim 4, wherein said value propagating means comprises:

effectiveness weights applied to said strategic position nodes and said capability nodes, each said weight allocating a fraction of an effectiveness of said supported strategic position or said supported capability to said respective relationship, and each said weight providing that the sum of said fractions for a said strategic position or a said capability is equal to one;

a value propagating algorithm which allocates said values of said supported strategic positions or said supported capabilities to said supporting capabilities or said supporting resources in proportion to said weights.

6. A method for analyzing a firm, comprising the steps of:

generating a strategic capability network which connects present resources of said firm through present capabilities of said firm to present value propositions of said firm, said strategic capability network having nodes and relationships between said nodes, each said node being a capability, a resource or a strategic position, each said relationship being directional and being characterized by a degree of support from a supporting one of said nodes to a supported one of said nodes, said degree of support being dependent upon said present resources, said present capabilities and said present value propositions;

modifying said strategic capability network using one or more future scenarios, each said future scenario serving to modify some of said present resources, some of said present capabilities and some of said present value propositions, with consequent effects on said degrees of support;

evaluating how said present resources, said present capabilities and said present value propositions change in light of said future scenarios;

determining from said evaluation which of said present resources, said present capabilities and said present value propositions should be developed, maintained or divested.

7. The method of claim 6, wherein said degrees of support characterizing said respective relationships are related by drivers applied to said resource nodes and said capability nodes, each said driver allocating a fraction of said supporting resource or said supporting capability to said respective relationship, and each said driver providing that the sum of said fractions for a said resource or a said capability is equal to one.

8. The method of claim 7, wherein a cost is associated with each said resource, and said costs are propagated to said supported capabilities and said supported strategic positions in proportion to said drivers.

9. The method of claim 6, wherein said degrees of support characterizing said respective relationships are related by effectiveness weights applied to said capability nodes and said strategic position nodes, each said weight allocating a fraction of an effectiveness of said supported capability or of said supported strategic position to said respective relationship, each said weight providing that the sum of said fractions for said effectiveness of a said capability or a said strategic position is equal to one.

10. The method of claim 9, wherein a value is associated with each said strategic position, and said values are propagated to said supporting capabilities and said supporting resources in proportion to said effectiveness weights.