Investments in digital capability must deliver Agility, Flexibility, and Resiliency.
While these terms have unique meanings and direct different technology capabilities, they are often applied interchangeably, losing their distinctiveness and complicating resiliency roadmaps.
Here's how we use the three terms, and what they mean to us:
Before implementing and delivering Agility- or Flexibility- or Resiliency-level capabilities, organizations must establish, align and/or refine their involved data architectures and data models.
We emphasize this because too often, initiatives to improve operating capabilities or introduce new ones focus on the functional IT solutions or applications. They fail to confirm first the suitability (also, consistency and readiness) of the data architecture(s) and model(s) to the IT-enabled capabilities being implemented.
Data architecture(s) are the overarching data environment(s), including structures, relationships, standards, policies, master data management and quality controls.
Data models are the representations of business processes, concepts and rules using data. They're described in modeling and database format languages.
Properly architected and modeled data are essential to the efficient implementation and operation of business capabilities, regardless of where they reside along the Agility - Flexibility - Resiliency continuum.
Agility connects data and process capabilities. (Note this is not the 'Agile' of the software development taxonomy).
Principal components of Agility include:
Agility is the application of human talent and capability on "over the horizon" business issues and opportunities.
Manifestations or Representations of Agility include:
Agility provides the digital tools (data models, process landscapes, and connectivity) to modify core, routine business operations.
Flexibility delivers higher-value business application that use Agility-based capabilities.
Flexibility leverages and extends digitally-enables core operations into larger, structural responses to changing business conditions. It enhances the business' ability to anticipate, prevent and respond rapidly to non-routine events.
Examples of Flexibility include:
Flexibility increases the operating tempo of the enterprise by reducing data and information queues.
Resiliency is the result of combining capabilities built for Agility and Flexibility.
Like most technology-enabled business capabilities, Resiliency is the sum of constituent functions, integrated to deliver a valuable business result.
It combines the connectivity, data access, decision processing and automation developed for Agility with the higher value, outcome-driven business functions of Flexibility described above.
Resiliency is the measurable ability to meet Business Continuity (BC), Integrated Risk Management (IRM) and Governance, Risk & Compliance plans and objectives.
Resiliency has three main components related to supply chains: Capability, Speed and Cost. These link to the value optimization characteristics of the classic Operations Management Triangle components of Inventory, Capacity/Capability and Information.
Examples of Resiliency include:
The New Resiliency is focused on using digitally-enabled capabilities, data and decision-making to strengthen the supply chain, assure business continuity and reduce monetizable risk.
BTV Advisors offers a program to assess and analyze your current digital supply chain capabilities and recommend specific actions to enhance business continuity.
We also assess the value and relationship of such actions and investments to the digital supply chain area of your BC, IRM and/or GRC systems.
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