Automated method of and system for identifying, measuring and enhancing categories of value for a valve chain

• US 20040088239A1
• Filed: 08/29/2001
• Published: 05/06/2004
• Est. Priority Date: 01/06/1997
• Status: Active Grant

• Current Assignee: Jeffrey Eder
• Original Assignee: Jeffrey Eder
• Inventors: Eder, Jeff S.
• Application Number:
  US09/940,450
• Publication Number:
  US 20040088239A1
• Time in Patent Office: Days
• US Class Current: 705/36
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An automated method and system (100) for identifying, measuring and enhancing categories of value for the different levels of a value chain on a continual basis. The categories of value are analyzed at each level in the value chain using predictive models and vector creation algorithms to define the enterprise and element vectors before valuing the organization, each enterprise in the organization and the elements of value in each enterprise. The relative strengths of the intangible elements of value are used in evaluating the real options of each enterprise and in determining the allocation of industry real options to the enterprise and the organization before summary reports are prepared, displayed and optionally printed. The system then generates potential value improvements which the user (20) optionally accepts, rejects or modifies before simulations are completed to analyze the value impact of the enhancements.

Claims

1. A data processing method for managing a virtual value chain, comprising:

organizing value chain data into three components of value, one or more real options and two or more categories of value;

determining a contribution of each of two or more categories of value to a value of the value chain;

determining a contribution of each of the one or more real options to a value of the value chain; and

displaying the value chain value and the contribution of the one or more real options and the two or more categories of value.

2. A computer readable medium having computer executable instructions thereon for causing a computer to perform the method of claim 1.

3. A data processing system for managing a virtual value chain, comprising:

means for organizing value chain data into three components of value, one or more real options and two or more categories of value;

means for determining a contribution of each of the categories of value to a value of the value chain;

means for determining a contribution of one or more real options to a value of the value chain; and

means for displaying the value chain value and the contribution of the one or more real options and the two or more categories of value.

4. A data classification scheme for organizing or classifying data relating to the value of a value chain, the classification scheme comprising:

three components of value, one or more real options and two or more categories of value.

5. A business analysis method, comprising:

capturing data concerning the operation of a value chain;

dividing at least a portion of the data into three components of value, one or more real options and two or more categories of value, and

modeling the value chain as a function of the different components, real options and categories of value to provide a value for the categories of value and the real options.

6. A computer readable medium having computer executable instructions thereon for causing a computer to perform the method of claim 5.

7. A business analysis system, comprising:

means for capturing data concerning the operation of a value chain;

means for dividing at least a portion of the data into three components of value, one or more real options and two or more categories of value; and

means for modeling the value chain as a function of the different components, real options and categories of value to provide a value for the categories of value and the real options.

8. The business analysis system of claim 7 wherein the means for modeling a value chain to provide a value includes:

means for deriving one or more category of value weighting factors from the information each of two or more categories of value;

means for calculating the present value of the components of value; and

means for weighting the information concerning the two or more categories of value according to the category of value weighting factors, with the value equaling the sum of the product of the category of value factors and the present value of each of the components of value.

9. A business analysis method, comprising:

capturing data concerning a value chain;

dividing at least a portion of the data into three components of value, one or more real options and two or more categories of value, and

calculating the value contribution percentage for each category of value, with each contribution percentage estimating a proportionate effect of each category of value on the value of the current operation of the value chain.

10. A computer readable medium having computer executable instructions thereon for causing a computer to perform the method of claim 9.

11. A business analysis system, comprising:

means for capturing data concerning a value chain;

means for dividing at least a portion of the data into three components of value, one or more real options and two or more categories of value, and

means for calculating the value contribution percentage for each category of value, with each contribution percentage estimating a proportionate effect of each category of value on the value of the current operation of the value chain.

12. A business analysis method, comprising:

capturing data concerning a value chain;

dividing at least a portion of the data into three components of value, one or more real options and two or more categories of value and each category of value contains one or more elements of value, and

modeling the value chain as a function of the different components of value, real options and the elements of value within the categories of value to provide a value for the categories of value and the real options.

13. A computer readable medium having computer executable instructions thereon for causing a computer to perform the method of claim 12.

14. The business analysis method of claim 12 wherein the elements of value are alliances, brand names, channel partners, customers, employees, industry factors, infrastructure, intellectual property, information technology, processes and vendors.

15. A business analysis system, comprising:

means for capturing data concerning a value chain;

means for dividing at least a portion of the data into three components of value, one or more real options and two or more categories of value where each category of value contains one or more elements of value, and

means for modeling the value chain as a function of the different components of value, real options and the elements of value within the categories of value to provide a value for the categories of value and the real options.

16. The business analysis system of claim 15 wherein the elements of value are alliances, brand names, channel partners, customers, employees, industry factors, infrastructure, intellectual property, information technology, processes and vendors.

17. A financial measurement and reporting method, comprising:

collecting and classifying the value chain data by component of value, category of value and real option;

determining a contribution of each category of value and real option to a value of the value chain; and

displaying the value chain value and the contribution of each of the categories of value and real options.

18. A computer readable medium having computer executable instructions thereon for causing a computer to perform the method of claim 17.

19. A financial measurement and reporting system, comprising:

means for collecting and classifying the value chain data by component of value, category of value and real option;

means for determining a contribution of each category of value and real option to a value of the value chain; and

means displaying the value chain value and the contribution of each category of value and real option.

20. The system of claim 19 wherein the means for reporting comprises a paper document or an electronic display.

21. A method for estimating how one or more operational decisions of a value chain organization are likely to affect its value, comprising:

capturing quantified information for the value chain,

organizing at least a portion of the information into one or more real options and two or more categories of value at least one of which is intangible;

determining a contribution of the two or more categories of value and one or more real options to a value of the value chain;

representing an effect of one or more operational decisions on one or more of the value drivers for one or more categories of value;

determining a change in a value of the value chain based on the probabilistic effect of one or more operational decisions on one or more of the categories of value and the value chain; and

displaying the category of value composition of the projected value chain value.

22. A computer readable medium having computer executable instructions thereon for causing a computer to perform the method of claim 21.

23. The method of claim 21 further comprising the use of causal models for determining the contribution of one or more categories of value.

24. The method of claim 21 further comprising the use of value drivers for determining the contribution of one or more categories of value.

25. The method of claim 21 further comprising the use of vectors for determining the contribution of one or more categories of value.

26. The method of claim 21 further comprising the use of Monte Carlo models for determining the probabilistic effect of operational decisions on one or more categories of value and the value chain.

27. The method of claim 21 further comprising the use of predictive models for determining the contribution of one or more categories of value.

28. A system for estimating how one or more operational decisions of a value chain organization are likely to affect its value, the system, comprising:

means for capturing quantified information for the value chain,

means for organizing at least a portion of the information into one or more real options and two or more categories of value at least one of which is intangible;

means for determining a contribution of one or more categories of value and one or more real options to a value of the value chain;

means for representing an effect of one or more operational decisions on one or more of the value drivers for one or more categories of value;

means for determining a change in the value based on the probabilistic effect of one or more operational decisions on one or more of the categories of value and the value chain; and

means for displaying the category of value composition of the projected value chain value.

29. The system of claim 28 further comprising the use of causal models for determining the contribution of one or more categories of value.

30. The system of claim 28 further comprising the use of value drivers for determining the contribution of one or more categories of value.

31. The system of claim 28 further comprising the use of Monte Carlo models for determining the probabilistic effect of operational decisions on one or more categories of value and the value chain.

32. The system of claim 28 further comprising the use of vectors for determining the contribution of one or more categories of value.

33. The system of claim 28 further comprising the use a combination of predictive models for determining the contribution of one or more categories of value.