Microsoft

Motion

Business Capability Mapping

PublishedNovember 2005:

C.H. Robinson adopts Microsoft Motion to map their business capabilities into a Service Oriented Architecture.

When C.H. Robinson needed to create a common language and data model for their multi-mode logistics business, they turned to Microsoft Motion. Motion provided the methodology required to accurately map their complex and unique business model into a common view understood by the business and information technology groups.

Company Overview

C.H. Robinson Worldwide keeps merchandise moving. Asone of the largest third-party logistics providers in the world, C.H. Robinson arranges freight transportation services using trucks, trains, ships, and airplanes belonging to other companies. It contracts with some 35,000 carriers. C.H. Robinson handles over 4 million shipments per year for its 18,000 customers, which include companies in the food and beverage, manufacturing, and retail industries. C.H. Robinson also offers supply chain management services. In addition, the company buys, sells, and transports fresh produce throughout the US, and its T-Chek unit provides fuel purchasing management and other services for motor carriers.

Business Challenge

C.H. Robinson delivers its services through multiple business units each focusing on unique markets with distinct challenges. C.H Robinson operates a complex, information intensive electronic marketplacethat must be highly flexible.

Achallenge for C.H. Robinsonwas the increasing costs of information services. The IT group supported separate systems for each business unit resulting in duplication of systems and efforts. Additionally, they needed an effective approach to conduct the business/IT conversations which are essential to understanding how best to deploy development resources on core IT projects.

The CIO was committed to developing an Enterprise Architecture program that provided a framework for organizational decision making roadmap for organizational improvements in the following areas: Speed to market, Customer Experience, Reliability, and Total Cost of Ownership. He also recognized that by leveraging a service orientated architecture approach and the creation of aconnected eco-system of the company’s core IT assets, the IT team could provide the flexibility and adaptability that was required to support the rapidly changing and growing business environment. First, they needed a clear view of business across all operating modes in order to effectively develop a plan to deploy the service orientated architecture approach.

Solution

Microsoft Consulting Services and Accelare worked closely with C.H. Robinson to initiate a Microsoft Motion “Business Architecture” point-of-entry project. Motion is a methodology to organize, measure, and evaluate business capabilities. The Business Architecture is a view of the business operating model that is comprised of a network of the Business Capabilities. Business Architecture is “what” the business does as opposed to “how” the business implements people, technology and processes.

Accelare conducted the Motion project in multiple phases over a 2-month period. In Phase 1, the team worked to Establish Project Contextwhich provided the scope and objectives of the project. They documented the business goals and established a Foundation Capability Model detailing top level capabilities. Next they correlated the goals in the context of the capability map. From this work, they were able to articulate the purpose, context and success metrics for the project. They analyzed the stakeholders and determined the makeup of the Project Delivery Team. Finally, theyagreed toa Phase-Gate approach to make “Go/No-go” decisions at the conclusion of each phase.

In Phase 2, the Project Delivery Team worked to Capture the Current Business View by adding the next level of capabilities to the Foundation Capability Model. The Project Delivery Team gathered and documented information and held key interviews with each business unit executive. Next, the Project Delivery Team interviewed other stakeholders, including business managers, to understand the necessary support capabilities. Using this input, the Project Delivery Team developed a consensus Level 2 capability map.

The Phase 3 objective was to Capture Business Architecture Detail. Through a series of workshops facilitated by the Accelare lead consultant, the Project Delivery Team and subject matter experts followed a technique called “Go In, Go Up, Go Out, Go Down” to explore the entire business ecosystem related to the identified project. These facilitated sessions delivered a complete list of internal, external and related capabilities and performance assessment for each. Furthermore, a common semantic map evolved that provided common operational definitions of terms and allowed the technology group and the different businesses to communicate clearly. An analysis of this information produced a targeted list of capabilities that required attention.

The Phase 4 objective was to Complete the “As-Is” Business Architecture by compiling information gathered in the previous phases. The Delivery Team selected a key business scenario from Phase 2 and identified the relevant value added, supporting, and controlling capabilities from Phase 3. These capabilities, their relationships to each other and service level expectations were documented visually to articulate the value stream. The result was a clear picture of the business capabilities and relationships including performance assessment and the costs and benefits delivered by each.

With the clear view of the Business Architecture culminating in Phase 4, the objective of Phase 5 was to Recommend Next Steps. The Project Delivery Team developed organizational and process recommendations. These included a roadmap for mapping from the capability view to web services. Recommendations also included implementing training on the common semantic map and the capability model, and establishing appropriate interactions between the Business and IT to keep the capability and semantic views current.

Benefits

As a direct result of the Motion Business Capability Mapping project, C.H. Robinson leaders validated long-time assumptions regarding the similarities between their various business lines in a structured and documented way. A plan was then formulated to consolidate on to a commonworld-ready enterprise IT system that will service their customers across all modes of business and eliminate duplication of IT assets. According to business executives within C.H. Robinson, the estimated savings has far exceeded their initial expectations going into the project.

Clearer Business /IT Conversations

C.H. Robinson executives point out that Microsoft Motion Business Capability Mapping provided the multi-modal bridge they have been workingto developfor many years withmajor and immediate benefit. The different business units were using different words for similar activities. By defining a common vocabulary across all business units and the IT group, business/IT conversations were much clearer. Additionally, the IT group is using the vocabulary internally to ensure consistent semantics at the technical and enterprise integration levels.

Clear Services Roadmap for Connected Systems Implementation

C.H. Robinson’s IT group now has a services orientated architecture view of the entire business created by the business itself. They can take advantage of this map as well as the capabilities of the Microsoft .NET platform to begin creating new common IT services that map directly into relevant business capabilities. The result is a viable enterprise-wide shared services architecture that fully supports business needs and technology decisions.

Better Focus Business Initiatives Selection

Another executive expressed passion and anticipation as he envisioned how he could use the capability map to effective plan and focus on the things that were truly of most importance to his specific business.

Opportunity for Improved Acquisition Integration and Global Expansion

An unexpected benefit was articulated by another executive who envisions using the capability map and common semantic model to streamline business acquisition integration and expand their businesses into new geographies around the world.

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