VisibleForum.com

RAZOR 2012: PRE-RELEASE INFORMATION

mcesino1 — Mon Jan 30, 2012 12:34 pm

Author: mcesino1

Posted: Mon Jan 30, 2012 12:34 pm

BENEFIT: NO LONGER NEED TO ASSIGN STATIC PORTS

IMPROVEMENT: Currently, the Razor server implementation is single-threaded. As such a given client request is handled in its entirety before handling the next client request. One key feature of Razor 2012 is that the Razor servers (License Manager and Database) are multi-threaded.

STATUS: Identified the message protocol currently used by the existing Razor client-server. Rewrote the server end of the message protocols using Java.

http://www.visible.com/Products/Razor/index.htm

How To Access The Strategy Briefings

Russell Abisla — Thu Jan 15, 2009 11:11 am

Author: Russell Abisla

Posted: Thu Jan 15, 2009 11:11 am

How you manage your IT applications is a direct result of setting a strategy appropriate to your enterprise. An appropriate strategy can have a direct and positive impact on business outcomes.

This forum contains a series of Strategy Briefings covering a wide range of topics. It describes several approaches and highlights the key opportunities to reduce the risks, costs, and time required to develop and deliver IT applications.

In order to download the briefings, you must first register as a user of the forum. To register, simply click on the Register link at the top of the page. Once your account has been activated, you will then be able to download the briefings.

A great way for you to network and make new industry contacts!

As a registered member of the forum, we value your contributions. Your contribution which you may choose to post to the forum may be a methodology, approach or success story about a specific strategy briefing that you would like to share with other members. Each month we will select and highlight one contribution made by one of the members. If selected, we will run your contribution along with your contact information on our site's (visible.com) landing page for at least 10 business days.

There in no cost to you if your contribution is selected ... a great way for others in the industry to see your contribution and recognize your skills.

Passing a child list object

schang — Thu Sep 18, 2008 11:06 pm

Author: schang

Posted: Thu Sep 18, 2008 11:06 pm

I have a question re: passing a list object from one form to another. I know how to pass as in the following code (from the form that is doing the passing). This works when you are passing from the parent grid. How do you get this to work if you need to pass a single record from a child grid? Thanks.

Public Sub ReturnEntity()

Dim objReturnModalParms As New AOCCommonObjects.TempModalParms

objReturnModalParms.ClearParms(TempModalParms.FormParmType.Output)

Dim objSelEntityList As New EntitySearch.EntitySearchList

objSelEntityList.EditStart()
objSelEntityList.Read(myEntitySearch)
objSelEntityList.EditEnd()

objReturnModalParms.SetParm("SelectedEntityList", objSelEntityList, TempModalParms.FormParmType.Output)

End Sub

Error message in v.4.2

Kim.Rainey — Fri Aug 01, 2008 2:05 pm

Author: Kim.Rainey

Posted: Fri Aug 01, 2008 2:05 pm

I upgraded to 4.2, created a new project and new generated a new business object. When I go into the new object or try to build the project I get this error message: The value entered for Conversion from System.String to System.DateTime is not supported or is not valid. Can anyone help me with this?

The Universal Model Framework License Agreement

MCesino — Mon May 19, 2008 8:39 am

Author: MCesino

Posted: Mon May 19, 2008 8:39 am

Visible Systems Corporation
The Universal Model Framework
Copyright (C) 2012 Visible Systems Corporation

END-USER LICENSE AGREEMENT FOR Visible Universal Framework.

IMPORTANT - READ CAREFULLY: This Visible Systems Corporation End-User License Agreement ("EULA") is a legal agreement between you, a developer of software ("End User") and Visible Systems Corporation (Vendor) for The Universal Model Framework, its relevant controls, source code, demos, intermediate files, media, printed materials, and "online" or electronic documentation ("MODELS").

By installing, copying, or otherwise using the MODELS, the End User agrees to be bound by the terms of this EULA. The MODELS is in "use" on a computer when it is loaded into temporary memory (i.e. RAM) or installed into permanent memory (e.g. hard disk, CD-ROM, or other storage device) of that computer. If the End User does not agree to any part of the terms of this EULA, THE END USER CAN NOT INSTALL, USE, DISTRIBUTE, OR REPLICATE IN ANY MANNER, ANY PART, FILE OR PORTION OF THE MODELS, OR USE THIS MODELS FOR ANY OTHER PURPOSES.

The MODELS are hereby licensed, not sold.

LICENSE GRANT

Upon acceptance of this EULA the Vendor grants the End User a personal, nonexclusive license to install and use the MODELS on compatible devices for the sole purposes of designing, developing, testing, and deploying application programs the End User creates. If the End User is an entity, it must designate one individual within its organization to license the right to use the MODELS in the manner provided herein.

The End User may install and use the MODELS as permitted by the license type purchased. The license type purchased is specified in the MODELS receipt.

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The design-time components of the MODELS are licensed for each computer on which they are installed and used. If the End User has to install design-time components of the MODELS on more than one computer, additional Licenses are required. This licensing is valid within a single company. If the End User has to order contractors to develop an application with the use of the MODELS the mentioned licensing scheme shall be applied for each such company. These contractors shall be contractually bound to the terms of this EULA and may only perform development tasks permitted for the End User according to this EULA.

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Not for Resale Software.

Unless specifically noted at the time of purchasing, the MODELS are labeled and provided as "Not for Resale" or "NFR". The End User may not resell, distribute, or otherwise transfer for value or benefit in any manner, the MODELS or any derivative work using the MODELS. The End User may not transfer, rent, lease, lend, copy, modify, translate, sub-license, time-share or electronically transmit the MODELS, media or documentation. This also applies to any and all intermediate files, source code, and compiled executable.

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The MODELS may include certain files intended for distribution by the End User to the users of the programs created by him/her re-distributable. re-distributable include, for example, those files identified in printed or on-line documentation as re-distributable files, those files pre-selected for deployment by an install utility provided with the MODELS (if any). In any event, the re-distributable for the MODELS are only those files specifically designated as such by the Vendor. Subject to all of the terms and conditions in this EULA, the End User may reproduce and distribute exact copies of the re-distributable, provided that such copies are made from the original copy of the MODELS. Copies of re-distributable may only be distributed with and for the sole purpose of executing application programs permitted under this EULA that the End User has created using the MODELS. Under no circumstances may any copies of re-distributable be distributed separately.

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THE END USER MAY NOT USE THE MODELS TO CREATE ANY TOOL OR MODELS THAT DIRECTLY OR INDIRECTLY COMPETES WITH THE MODELS.

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THE END USER CAN RECOVER FROM THE VENDOR ONLY DIRECT DAMAGES UP TO THE AMOUNT THE END USER PAID FOR THE SOFTWARE. THE END USER CANNOT RECOVER ANY OTHER DAMAGES, INCLUDING CONSEQUENTIAL, LOST PROFITS, SPECIAL, INDIRECT, INCIDENTAL OR ANY OTHER DAMAGES.
This limitation applies to claims for breach of contract, breach of warranty, guarantee or condition, strict liability, negligence, or other tort to the extent permitted by applicable law. It also applies even if repair, replacement or a refund for the software does not fully compensate the End User for any losses; or the Vendor knew or should have known about the possibility of the damages.

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Without prejudice to any other rights or remedies, the Vendor will terminate this EULA upon the failure of the End User to comply with all the terms and conditions of this EULA. In such events, the End User must destroy all copies of the MODELS and all of its component parts including any related documentation, and must immediately remove ANY and ALL use of the technology contained in the MODELS from any applications developed by the End User, whether in native, altered or compiled state.

GENERAL PROVISIONS.
This EULA may only be modified in writing signed by you and an authorized officer of the Vendor. If any provision of this EULA is found void or unenforceable, the remainder will remain valid and enforceable according to its terms. If any remedy provided is determined to have failed for its essential purpose, all limitations of liability and exclusions of damages set forth in the Limited Warranty shall remain in effect.

The Vendor reserves all rights not specifically granted in this EULA.

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The Universal Model Framework Tutorial

MCesino — Mon May 19, 2008 7:43 am

Author: MCesino

Posted: Mon May 19, 2008 7:43 am

Visible Universal Framework Tutorial will be available soon. Check back in 1 month.

The Universal Risk Model Framework

MCesino — Mon May 19, 2008 7:34 am

Author: MCesino

Posted: Mon May 19, 2008 7:34 am

9 Risk Analysis (Mission)
Provide for the monitoring, planning, directing and reviewing of the enterprises credit, settlement and market
risk positions. The fundamental objective is to manage returns on the investment of assets (all types)
without exceeding acceptable levels of risk. Identify the risk structure of the enterprises assets and earnings
that reflect the risk level identified as
acceptable and the risk factors required when accepting that risk.
9.1 Risk (Goal)
Identify the risk level of products and services, review their level of exposure and to create guidelines for
overall risk. Evaluation of total risk exposure and target risk levels is identified by reviewing the risk level of
individual products and
services and totaling those risk factors to
identify the enterprises position and outstandings across all it's assets. Risk reserves and/or associated
write-offs are calculated and returns are adjusted for accepting the risk contained in a grouping of assets.
9.1.1 Product And Service Risk (Objective)
Determine the level of risk associated with current or new products and services caused by the selling of
forecasted volumes of specific products and/or services to a specific market segment.

Products and/or services must be identified relative to their individual credit and settlement components which
then may be used in conjunction to their level of risk relative to current similar products and/or services to
identify risk history,
potential positions and projected customers and markets segments. The risk components are then combined to
identify the level of risk associated with each product and/or service.
9.1.1.1 Product And Service Activity (Strategy)
Identify the risk associated with each activity related to a specific product and service as related to market,
credit and settlement risk. This is accomplished by way of grouping each activity by type of risk to develop
the product or service risk components, which are then compared to like components related to like products
and services.
9.1.1.2 Product or Service Credit Risk (Strategy)
Identify the credit risk for a specific product or service by reviewing any potential positions and exposures to
the market segments credit worthiness and the Legal Entity(s) (offering entity) existing credit exposure.

This is accomplished by way of identifying the product/service credit risk, identifying potential losses as a
result from changes in the market segment credit worthiness and comparing those potential losses to the Legal
Entity(s) (offering entity)
current credit exposure.
_________________________________________________________________________________________________
9.1.1.3 Product or Service Market Risk (Strategy)
Review each product and service to identify the risk related to each activity that supports those products and
services which are related to market, credit or settlement risk.
9.1.1.4 Product or Service Settlement Risk (Strategy)
Identify the settlement risk of products and services by way of reviewing product/service outstandings,
identifying exposures caused by closing or clearing systems or procedures and comparing that to the Legal
Entity(s) (offering entity)
current settlement exposure.

This is accomplished by way of reviewing settlement credit history, the closing/ clearing systems utilized and
related procedures, and any anticipated outstandings created by the product and service.
9.1.1.5 Risk Factor (Strategy)
Determine the product and/or service risk factor relative to the product and/or service being offered for sale
and any additional product and/or service price increase required to offset the cost of any associated risk.

This is accomplished by way of using the forecasted outstandings and overall exposure to assets and earnings
divided by forecasted revenues and earnings.
9.1.1.6 Project Market Environment (Strategy)
Identify the market indicators such as interest rates, forward rates, gross national product, trade balance,
inflation, unemployment etc.,
and forecasts the relevant indicators. Additionally the creation of a view of market and economic conditions
for varying geographic areas and
market segments is performed here.
9.1.1.6.1 Project Economic Environment (Activity)
Forecast information that pertains to economic conditions that affect a market such as changes in interest rates,
gross national product and inflation.
9.1.1.7 Market Risk Guidelines (Strategy)
Develop guidelines relative to market risk for products and services offered by the enterprise.
This includes the review of historical market risk guidelines and limit exceptions in order to identify needed
modifications to promote improved market risk control.
9.1.1.7.1 Market Guideline Compliance (Activity)
Determine market limit exception information and to evaluate compliance to the guidelines.
This includes items such as exception frequency, duration, cost of exception (if any), cause, the amount of
exception and percentage.
9.1.2 Unacceptable Risk (Objective)
Determine the level of risk to assets deemed unacceptable by senior management by reviewing the current
positions and exposures of products and services.

This is accomplished by acquiring inputs from market, settlement and credit risk Business Function
Sub-Groups to determine the exposure. This effort should extend to products and services, lines of business,
market segments and individual customers and compares this information to the risk guidelines identified by
management.
9.1.3 Risk Reserves (Objective)
Calculate the risk reserves/write-offs and to adjust the associated returns for specific levels of risk for
groupings of products and/or services inorder to adjust the financial return and revaluation of assets and
earnings.

Associated outstandings, exposures, loss rates and forecasted operating profit along with capital objectives
and return on sales are utilized to develop these requirements. Output is expressed in terms of percentages and
directly relates to the risk/
reward objectives identified by management.
9.1.4 Risk Level Threshold (Objective)
Identify the means for the distribution of risk across Products and services or specific lines of business by
determining the risk level threshold for assets and earnings. This Business Function identifies the level of
individual market and settlement
risk a product and/or service or line of business finds acceptable by way of assessing the return or sales return
of capital and risk adjusted return.

_________________________________________________________________________________________________
9.2 Credit Risk (Goal)
Identify the risk of credit or assets nonpayment of the obligated Legal Entity(s) inability to fulfill it's
obligations. This is accomplished by way of reviewing the current financial history of the customer (credit
history)
and identifying the risk by reviewing historical information relative to
similar products and services when assigning credit ratings and projecting future payment. Review settlement
lines, any counterparty credit risk and sets the credit limits. Projecting risk in the future is identified by
reviewing items such as raising or
lowering product and/or service price and the offering Legal Entity(s) financial condition. The identification
of nonpayment risk by products and services, lines of business,
market segments or specific customers assists in the establishment of credit risk guidelines as well as
forecasting potential credit risk relative to new market segments and variance in product and/or service credit
limits.
9.2.1 Credit Ratings And Limits (Objective)
Determine the ratings and limits for Legal Entities. This is accomplished by way of financial profiles and
historic credit performance. The limits are determined by the credit ratings, risk profiles, risk guidelines and
any outstandings that are related.
9.2.1.1 Geographic Area Credit Rating (Strategy)
Determine the credit rating for specific geographic areas such as villages, towns, counties, states, country's,
principalities, territories etc.. This credit rating is typically based upon credit history, inflation, gross national
product, cash flow,
unemployment and bankruptcy rates, balance of payments etc..
9.2.1.2 Legal Entity Credit Rating (Strategy)
Determine the credit rating of a specific Legal Entity. This is typically determined by the Legal Entities
financial performance, credit history, products and services, payment history, annual reports and analysts
findings.
9.2.2 Legal Entity Risk Limits (Objective)
Determine the credit limit groupings of Legal Entities such as organizations, customers, sovereignties and
counterparties. The limits are driven by credit ratings,
credit limit exception information and credit limit guidelines. Risk limits may be applied to geographic
regions,
organizations and organization units, products, market segments, customer's, employee's, agreements,
accounts and industry's.
9.2.2.1 Settlement Limits (Strategy)
Determine the settlement limit for varying groupings of customers (customers, market segments, geographic
areas, employee, accounts etc..) The limits are established by way of historic settlement history and settlement
limit guidelines,
9.2.2.2 Trading Limit (Strategy)
Determine the trading limits for varying groupings of customers. the limits are established by way of historic
credit ratings, trading performance, trading limit guidelines and objectives.
9.2.2.3 Credit Limit (Strategy)
Determine the credit limit for products and services relative to various groupings of customers (market
segments). The limits are set by way of credit guidelines which are based upon performance and customer
credit ratings.
9.2.2.4 Composite Credit Limit (Strategy)
Determine the overall credit, trading and settlement limits for varying groupings of customers. The limit is
established by way of analysis of ratings, limits, limit exception information and limit guidelines.
9.2.3 Customer Credit Exposure (Objective)
Identify customer outstandings, exceptions to credit limits and review the exposure and risk caused by a
specific customer. Identify the effectiveness of the enterprises credit limit guidelines and it'
s vulnerability to excessive customer credit in addition to identifying needed changes to specific customer
credit limits or adjustment of risk/reward objectives as identified by management.
9.2.3.1 Customer Credit Outstandings (Strategy)
Determine the outstandings for a specific customer. This is accomplished by way of determining the balances
and past-due statements.
9.2.3.2 Customer Credit Exposure Identification (Strategy)
Determine the degree of credit exposure of a specific customer in terms of the outstanding balances of that
customer. This is accomplished by way of reviewing the customer's credit record relative to that customer'
s credit limit and outstandings to identify credit that is above set limits for that specific customer.
9.2.3.3 Customer Credit Limit Exceptions (Strategy)
Identify exceptions to set credit guidelines for level of credit exposure. Limit exceptions are often provided to
specific customers who have an excellent credit history and little or no outstandings pending.
9.3 Settlement Risk (Goal)
Determine the amount of money that may not be received from customers for products and/or services
rendered. Forecast are typically determined to indicate how outstandings may vary depending on changes in
overall or specific operating procedures or with
changes (newly created or modified) relative to products and services, or the conducting of business in
specific market segments.
_________________________________________________________________________________________________
9.3.1 Settlement Outstandings (Objective)
Identify and review all settlement activity for all customers and to report on probable settlement limit
exceptions.

Assist in the monitoring of unsettled accounts and their associated costs as well as determining any potential
adjustment in customer settlement ratings.
9.3.1.1 Settlement Outstandings Review (Strategy)
Analyze the settlement outstandings by specific customer or varying groupings of customers.

Assist management in the identification of those customers that are historically late in clearing settlements due
and in adjusting limit exception guidelines.
9.3.1.2 Settlement Limit Exceptions (Strategy)
Determine the exceptions of limits relative to settlements and to assist in the containment of non-settlement
risk.

This is accomplished by way of comparing outstandings to limits and identifying the potential exceptions for
management action.
9.3.2 Settltment Risk Guidelines (Objective)
Develop guidelines for settlement limits and operating procedures.

The limit and limit exception information is utilized to assist in the development of the settlement risk
guidelines by analyzing the past compliance to previous guidelines and predicting the performance and
associated cost of new or modified guidelines.
9.3.2.1 Settlement Guideline Compliance (Strategy)
Identify settlement outstandings as compared to settlement limits and determines the instances of exceeding
guidelines relative to size, frequency and duration.
9.4 Market Risk (Goal)
Determine the potential losses due to changes in market prices. This is accomplished by reviewing the
revaluation risk caused by changes in market conditions.
9.4.1 Market Limit Exceptions (Objective)
Determine market limit exceptions to established market limits.
The limit exceptions may be specific trading limits, risk/reward trade-offs or the dollar value that is
determined to exceed the set guidelines and are identified as exceptions.

The Universal Relationship Model Framework

MCesino — Mon May 19, 2008 7:33 am

Author: MCesino

Posted: Mon May 19, 2008 7:33 am

8 Relationship Management (Mission)
Identify and report on information pertaining to customer relationships with the enterprise, relationship
profitability and customer development.
8.1 Review Customer or market Segment Relationships (Goal)
Identify customer relationship and market segment information such as financial history, relationships with
other Legal Entities, forecasted product and service use and combinations and service performance measured
against plan.
8.1.1 Review Market Segment (Objective)
Identify information about market segments such as it's description, composition, product and service use and
relationships with other market segments.
8.1.2 Review Customer Service (Objective)
Monitor performance of service plans and service level agreements as compared to plan.
8.1.2.1 Identify Planned Service Level (Strategy)
Identify a specific customers service level details. Service level details are items such as twenty four hours
express delivery, one hour phone response time, thirty transactions processed per day etc..
_________________________________________________________________________________________________
8.1.2.2 Identify Service Performance (Strategy)
Identify the actual service performance provided to a customer. This information would be provided from an
external source to the Universal Model.
8.1.2.3 Service Performance Comparison (Strategy)
Compare the actual service performance for a customer with that of the planned performance.
8.1.2.4 Review Relationship (Strategy)
Identify a specific relationship. This information includes a Legal Entity(s) role in the relationship, forecasted
product and service utilization.
8.1.2.4.1 Identify Relationship Makeup (Activity)
Determine the information about a relationship the enterprise has with a specific customer.
This information will typically be composed of type of industry, market segment and anticipated rate of
growth.
8.1.2.4.2 Identify Relationship Commonalities (Activity)
The purpose of the Identify Relationship Commonalities Business Sub-Function is to determine the
information relative to relationships a specific customer has with other Legal Entities. An example of
additional relationships could be a customer that has
a wife, a customer that is a participant in a syndicate etc..
8.1.2.4.3 Identify Product or service Utilization (Activity)
Determine all the products and/or services utilized by a specific customer or market segment.
8.1.2.4.4 Target Product Service Combinations (Activity)
Identify the appropriate degree of combined products or services (or both) to a specific customer or market
segment in order to meet the needs of either. Typically this will include those products and services that the
enterprise is most interested in
marketing or which have the highest level of potential revenue generation, market share and profitability.
8.1.2.4.5 Identify Product or Service Utilization or Combination (Activity)
Determine the customer product or service use and product or service volume as compared to that of plan.
8.1.2.4.6 Forecast Product or service Utilization (Activity)
Identify the products and services that a customer is likely to use at some time in the future.
This information is composed of product and service utilization and volume.
8.2 Market Segmentation (Goal)
Configure market into meaningful segments. Reconfigure current market segments to increase product use
and profitability. Develop the existing customer base by cross selling products and services.
8.2.1 Configure Market Segments (Objective)
Configure market segments to maximize revenue and profits, and to take advantage of market size and growth
potential.

Identify the common customer properties that the target market will address. The common properties are
called segmentation variables, or segmentation criteria. These criteria may be combined to progressively
narrow the definition of a segment.

For example, a market segment may be defined as people with incomes over $50,000 between the age of 30
and 39. Adding one more segmentation criteria, a narrower segment could be defined as people with incomes
over $50,000
who are between the age of 30 and
39, and own a sports car.

8.2.1.1 Review Market Research (Strategy)
Review financial data of potential customers and their buying trends, economic analysis data, consumer
analysis data and industry information (geography, size, gross revenues etc.).
8.2.1.2 Identify Market Segment Customer Properties (Strategy)
Identify the common customer properties that the target market will address.. The properties typically contain
references to age, gender. income, etc.
8.2.2 Prospective Customer Groups Identification (Objective)
Identify the prospective customer groups for the purchase of products and services.

Identify the common customer properties of the customer group. The common properties are called
segmentation variables, or segmentation criteria.
8.2.2.1 Identify Common Customer Properties (Strategy)
Identify the common customer properties e.g., relative to industry, size, growth potential and profitability, etc.,
of the proposed prospective customer group.
8.2.2.2 Identify External Candidates (Strategy)
Determine those candidate customers who should be included in the customer group but have not previously
purchased products or services from the enterprise by analyzing their properties against the common
properties of the group..
8.2.2.3 Identify Candidates (Strategy)
Identify current customers who should be included in the prospective customer group, by analyzing their
properties against the common properties of the group.
8.2.3 Product or services For Market Segment Identification (Objective)
Identify the products/services to be offered to the target market.
8.2.3.1 Select Products To Be Offered To Market Segment (Strategy)
Products to be offered to the market segment will be based on the buying habits of customers. They will be
selected from product lists compiled by comparing properties of customers buying similar products against the
customer properties of the market
segment.
8.2.4 Realign Market Segments (Objective)
A market segment is realigned by identifying the common customer properties of the customers actually
buying products and/or services the market segment targets.
8.2.5 Customer Group Matched To Market Segments (Objective)
Match the properties of the market segments against the properties of the customer group so that volume,
revenue and profit will be maximized.
8.2.5.1 Estimate Profitability (Strategy)
Forecast the potential profitability of the target market by projecting maket size, growth rate and costs.
This projection is typically derived from forecasted profit margin, net interest margin, return on Assets
(ROA), return on equity (ROE), return on capital (ROC), segment reconfiguration cost, customer account
duration, risk factor and activity cost.
8.2.5.2 Forecast Conversion Rates (Strategy)
Forecast the rate of converting potential customers to customers in the target market and project the costs.
Review historical information for similar target markets.
8.2.5.3 Forecast Market Segment Volume And Growth Rate (Strategy)
Forecast the potential total product and/or service volume, revenue and growth rate for the market segment.
8.3 Relationship Profitability Management (Goal)
Identify the profitability of products and services relative to a customer or market segment.
8.3.1 Determine Relationship Profitability (Objective)
Identify the actual profitability of customer relationships at different levels of aggregation, from a specific
customer to a market segment. This business function utilizes the projected product and/or service use,
pricing and costs to calculate a projected profitability total.
Comparisons are typically conducted to determine the difference between projected and actual profits.
Additionally, information such as the need to adjust resource allocation may be indicated by unanticipated
variances in the difference between projected
and actual relationship profitability.
8.3.1.1 Identify Actual Relationship Profitability (Strategy)
Determine the actual profitability of customer relationships. Profitability is measured in terms of a single
product or service relationship (an account) with a customer or, all the product and service relationships
(multiple accounts)
with a customer. Profitability is a measure of revenues minus cost, and the offset from the risk factor.
8.3.1.1.1 Identify Revenues (Activity)
Determine the total revenues at the product and/or service customer relationship (account(s)) level. The
revenues are identified as actual income received from customers and revenues generated as a result of items
such as associated fee'
s or in the case of financial accounts,
interest.
8.3.1.1.2 Identify Other Revenues (Activity)
Determine the revenues not specifically associated to a specific customer. These revenues may be items such
as revenues generated as a result of referrals or revenues allocated to this function by a different function
which chooses not to maintain those
revenues for it's own
purposes.
8.3.1.1.3 Identify Activity Costs (Activity)
Determine the activity costs of supporting each customer product and/or service relationship (account). The
associated activity costs are aggregated to the same level as revenues in order to determine the profitability.
8.3.1.1.4 Identify Other Costs (Activity)
Determine all other costs, with the exception of product and/or service activity costs and the risk factor. The
other costs typically include management or staff time to service the customer account(s), research support,
help desk, advertising, travel,
general and administrative and
any other costs the enterprise deems as appropriate. Additionally, the enterprise will determine at what level of
detail are the other costs appropriate to record or allocate to specific customer account(s).
To determine other costs relative to a specific market segment is conducted in the same manner while
aggregating those costs to the market segment level.
8.3.1.1.5 Determine Actual Profitability (Activity)
Identify the profitability ratios and measures monthly for the level of aggregation of customer relationship
required. The profitability is identified by calculating the product and/or service costs, other direct costs and
allocated costs.
8.3.1.1.6 Acquire Risk Factor (Activity)
Obtain the risk factor for the product and/or service, customer or market segment for which profitability is
being determined. This risk factor is to be utilized as an offset to profitability.
8.3.1.2 Identify Projected Relationship Profitability (Strategy)
Determine profitability for a specific product or service (account) customer relationship or, for multiple
products or services (accounts) for a specific customer or a market segment.
8.3.1.2.1 Project Revenues (Activity)
Forecast the customer relationship product and service revenues based on product and service use and volume
forecasts combined with the product and service pricing forecasts.
Additionally, this task takes into account the variance between the standard product and/or service standard
pricing as compared to any actual negotiated prices provided to a specific customer.
8.3.1.2.2 Project Other Revenues (Activity)
Forecast the revenues that are not usually associated with a specific customer. These are typically identified as
revenues realized by way of referrals or recurring fees.
8.3.1.2.3 Project Activity Costs (Activity)
Forecast the total activity cost for each product or service in the customer relationship. The total activity cost
is identified by multiplying the forecasted number of occurrences of a specific activity (which supports the
product or service)
by the forecasted price. This will be completed
for each type of activity utilized to support the product or service at the completion of which will be summed
for a total amount. Similarly, this will be completed for all products and services (accounts)
that a specific customer has. Market segment activity costs will be performed in the same manner but with a
higher level of aggregation.
8.3.1.2.4 Project Other Costs (Activity)
Forecast the total costs (other than activities and risk factors) that are related to a relationship.
Examples of these costs are advertising/promotional costs or additional resources required to support the
servicing of products or services to a specific customer.
8.3.1.2.5 Acquire Projected Risk Factor (Activity)
Obtain the forecasted risk factor to be used as an offset to profitability.
8.3.1.2.6 Determine Forecasted Profitability (Activity)
Identify the forecasted profitability relative to the level aggregation of relationship being determined (ie.
specific customer, customer set, market segment). Typically this determination is performed utilizing Return
on Assets (ROA), Return on Equity (
ROE), Return on Capital (ROC), Return on Sales (ROS) and risk factor adjusted profits, risk factor adjusted
sales,selling costs divided by revenue, total costs divided by revenue, general and administrative costs divided
by revenue and risk factor adjusted ROA, ROC, ROE and ROS.
8.3.1.3 Identify Actual To Projected Relationship Profitability (Strategy)
The purpose of the Identify Actual to Projected Relationship Profitability Business Sub Function is to
compare the actual to forecasted profitability ratios and measures.

The Universal Project Model Framework

MCesino — Mon May 19, 2008 7:32 am

Author: MCesino

Posted: Mon May 19, 2008 7:32 am

5 Operations (Projects) Plan (Mission)
The purpose of the Operations Plan is to:
- Define how the Strategic Plan will be implemented.
An annual update will be prepared to each Operating Plan. Ongoing amendments to the Operating Plan
projects will also be made during each fiscal year.
5.1 Consolidate And Prioritize Projects (Goal)
All projects proposed by business units are consolidated and prioritised. Prioritization optimises the use of any
constrained resources (eg. financial or human resources, skills, technical resources etc.)
to ensure that the Strategic Plan is implemented as efficiently as possible.

Prioritization of proposed projects is confirmed by a senior management review.
5.1.1 Define Prioritization Criteria (Objective)
Projects need to be prioritized upon a consistent basis. The criteria and processes used will be clearly defined
and documented as a formal procedure.

These criteria may change between different business periods to reflect the changing businessl environment.
5.1.1.1 Prioritization Criteria Change (Strategy)
Changes to the criteria and techniques used to prioritise projects are triggered by:
- Revisions to the Strategic Plan.
- External political requirements.
- Significant changes in the availability of critical resources.

It is likely that such changes will be relatively infrequent (typically once for each publication of the Operating
Plan).
_________________________________________________________________________________________________
5.1.2 Prioritize Each Project (Objective)
Each proposed project will be analysed and quantitatively prioritized at a level of detail appropriate to its total
project cost (ie. Baseline, Growth and Expansion, or Project over Threshold).

A range of prioritization techniques may be available to identify those projects which most effectively meet:
- The requirements of the Strategic Plan
- Current resource constraints, including:
- Financial.
- Human resource availability (including skills).
- Technology availability and compliance with standards.

Examples of techniques which may be used include:
- Cost/benefit analysis.
- Risk Analysis
5.1.2.1 Proposed Projects Submitted (Strategy)
Business units will submit proposed or amended projects for prioritization. A priority will be assigned for
each project based upon the current prioritization criteria.
5.1.3 Review Consolidated Projects (Objective)
The consolidated project program will be reviewed to ensure that it represents the most efficient, achievable
and appropriate way to meet the business requirements.
5.1.3.1 Proposed Projects Consolidated (Strategy)
Once the prioritization of all proposed or amended projects is complete, the consolidated project program will
be reviewed to ensure:
- Human resources are available to support all projects.
- Financial resources are available to support all projects.
- Synergies between projects are maximised.
- Conflicts between projects are minimised.
- Optimal achievement of the Strategic Plan.
5.2 Define Proposed Projects (Goal)
The Operating Plan is developed by its end users - the business units which use IS to achieve their own
business goals.

The Operating Plan comprises a set of projects which, other than day-to-day operations (classified as
'Baseline'), are grouped according to their total life-cycle cost:
- Baseline (day-to-day operations, or projects less than $25,000).
- Growth and Expansion (less than $1m and greater than $25,000).

- Projects over Threshold (over $1m).

Each project will have a clear set of benefits and costs. The level of such supporting detail required will be
dependent upon the overall life-cycle cost of the project.

To enable analysis of the operating plan and comparisons to actual expenditures, projects are allocated to one
or more strategies, business units, accounts, budget objects and budget categories (capital or operating
expenditure).

The operating plan includes the IS capital and operating budgets, for all business units, required to achieve the
Strategic Plan. Current legislation requires financial details to be documented for the previous fiscal year's
actuals,
the current biennium (one or two years) and the following two biennia (implying a total of 6 or 7 fiscal years).
5.2.1 Refine Existing Projects (Objective)
Data relating to existing projects will be refined on an ongoing basis, to ensure that accurate prioritization of
new and existing projects can be performed at any stage of the operating plan preparation process.

The primary focus of this process will be to maintain the accuracy of projects' resource requirements (eg.
financial, physical or human resources or skills).
5.2.1.1 Project Resource Requirements Change (Strategy)
Any change in the resource requirements of an existing project must be quantified and documented as soon as
possible. Changes to be documented include requirements for:
- Financial resources (defined in the supporting budget elements).
- Human resources (including skills).
- Technical resources.
5.2.1.2 Project Benefits Change (Strategy)
Any change to the proposed benefits of a project must be documented (and quantified if necessary) as soon as
possible. Changes to be documented include:
- Efficiency improvements (financial and human resources).
- Service improvements.
- Support of the Strategic Plan.
- Support for legislative mandates.
5.2.2 Identify Requirements For New Projects (Objective)
Requirements for new projects will be documented as soon as possible by the responsible business unit. New
projects will be prioritised against each other and existing projects to enable the most effective utilisation of
available resources to meet the
requirements of the Strategic Plan.

_________________________________________________________________________________________________

5.2.2.1 Business Need For New Project Is Identified (Strategy)
A business need for a project is either:
- A business opportunity.
- A business problem.

Meeting either of these business needs must support the successful implementation of the Strategic Plan. A
single business need is addressed by one or more projects, or by the combination of multiple project
components.
5.2.2.1.1 Proposed Solutions To Business Need (Activity)
Multiple solutions to business needs are often possible. They must be defined and documented to ensure that
the most effective solution is identified and can be justified.
5.2.2.1.2 Select Project Which Best Meets Business Needs (Activity)
To select the most appropriate solution to a business need, the prioritization of proposed solutions is based
upon a range of factors, such as:
- Cost-benefit analyses.
- Resource requirements (including financial and human resources availability).
- Potential synergies between multiple projects.

The depth of analysis required to support the prioritization of proposed solutions will be appropriate to the
total life-cycle cost of the project. The specific criteria by which proposed solutions are evaluated also varies
on a case-by-case basis.
These criteria will be documented.
5.2.2.1.3 Quantify Resource Requirement Of Selected Project (Activity)
Each project is supported by a quantification of all resources required for implementation, and for ongoing
support following implementation. This forms the basis for financial and human resource budgets.
5.2.2.1.3.1 Quantify Project Financial Resources Required. (Activity)
Each project is supported by one or more budget elements which quantify the project's financial resource
requirements during the time period.

To facilitate internal budget analysis and control, each budget element is allocated to one or more:
- Business units.
- Strategies.
- Accounts.
- Budget objects.
- Budget categories (capital or operating expenditure).
5.2.2.1.3.2 Quantify Human Resources Required By Project (Activity)
The human resource requirements for each project are quantified for both implementation and ongoing
maintenance, throughout the planning period, in terms of:
- Full Time Equivalent (FTE) required to implement project.
- FTE required to maintain project following implementation.
- Consultant and contractor support required to implement project.
- Specific skill sets required to implement project.
- Specific skill sets required to maintain project.
5.2.2.1.4 Define Benefits Of Selected Projects (Activity)
All proposed projects require a definition of how they support the implementation of the Strategic Plan. The
level of required supporting detail and/or quantification varies depending upon the total life-cycle cost of the
project.
5.2.2.1.4.1 Quantify Expected Project Benefits (Activity)
The benefits of each project are required to be documented to enable projects to be prioritized against each
other. The level of required supporting detail and/or quantification varies depending upon the total life-cycle
cost of the project (
ie. Baseline, Growth and Expansion, or Project over Threshold).

All benefits are defined in a way which can be cross-referenced to the Strategic Plan.
5.2.3 Delete Projects No Longer Required (Objective)
Projects which no longer meet the needs of the business units or the Strategic Plan will be removed from the
Operating Plan as soon as possible, to ensure that any allocated resources are available for prioritization
against other projects.

Projects which have already incurred actual expenditure must not be removed from the plan until they no
longer fall into the historical reporting requirements.
5.2.3.1 Project No Longer Meets Business Needs (Strategy)
A project will be removed from the operating plan if it no longer meets business needs.
Examples of events which may require removal of a project include:
- Changes to the project's deliverables or benefits.
- Changes to the business needs.

- Changes to the project's resource requirements which impact the CBA.
- Changes to standards
5.2.4 Validate Support For Proposed Project (Objective)
An iterative review of all projects proposed by business units will be performed to validate that they are
supported by:
- The Strategic Plan .
- Standards
- The relevant business unit (ie. commitment of financial resources to project).
5.3 Publish The Operating Plan (Goal)
The OP is prepared for publication in timescales and formats which meet:
business requirements.

Amendments to the OP may also be published from time-to-time for internal purposes.
5.3.1 Prepare Overviews And Summaries Scheduled (Objective)
The operating plan contains text and summary schedules to support individual project details:

a) The Executive Summary will address any key political issues and will confirm how the operating plan
supports the implementation of the Strategic Plan.

b) Budget summary schedules will consolidate resource requirements (for both financial and human
resources). These may be calculated by strategy, budget object,
account or business unit. The requirements for such summary schedules may vary between plan versions.
5.3.2 Publish Final Version Of Operating Plan (Objective)
Following endorsement by management, the final version of the plan document is publsihed.
This will include:
- Project summaries and supporting details.
- Budget summaries (for both financial and human resources).
- Supporting commentaries (text and schedules).

5.3.2.1 Approve Plan For Publication (Strategy)
Approval of the final draft plan by management allows the final version to be published.
5.3.2.2 Circulate Final Version Of Operating Plan (Strategy)
Following publication of the final version of the plan, it must be circulated to all necessary recipients.
Possible circulation methods and formats include:
- Traditional printed hard copy.
- E-mail.
- Notification of availability of plan on a secure intranet FTP server.
5.3.2.3 Approve Plan For Publication (Strategy)
Approval of the final draft plan by management allows the final version to be published.
5.3.2.4 Circulate Final Version Of Operating Plan (Strategy)
Following publication of the final version of the plan, it must be circulated to all necessary recipients.
Possible circulation methods and formats include:
- Traditional printed hard copy.
- E-mail.
- Notification of availability of plan on a secure intranet FTP server.
5.3.3 Review Draft Op By Management Until Approved (Objective)
The draft Operating Plan is reviewed by management until their endorsement confirms that the it meets:
- The business needs of the Strategic Plan.
- Current resource constraints.
5.3.3.1 Publish Draft Plan For Management Review (Strategy)
A draft copy of the plan document is prepared and published for management review. This will include:
- Project summaries and supporting details.
- Budget summaries (for both financial and human resources).
- Supporting commentaries (text and schedules).
5.3.3.2 Implement Feedback From Management Review (Strategy)
Feedback obtained from the management review of the draft operating plan is implemented by the custodian
business unit of each component (projects, their supporting details, or the text summaries).

An iterative process may ensue until the management team endorses the draft plan.
5.3.3.3 Collect Management Feedback (Strategy)
The management review of the draft operating plan may result in requests for amendments to one or more of
its components. Such requests will be collected and the custodian business units for each requested
amendment will be identified.
5.3.3.4 Publish Draft Plan For Management Review (Strategy)
A draft copy of the plan document is prepared and published for management review. This will include:
- Project summaries and supporting details.
- Budget summaries (for both financial and human resources).
- Supporting commentaries (text and schedules).
5.3.3.5 Implement Feedback From Management Review (Strategy)
Feedback obtained from the management review of the draft operating plan is implemented by the custodian
business unit of each component (projects, their supporting details, or the text summaries).

An iterative process may ensue until the management team endorses the draft plan.
5.3.3.6 Collect Management Feedback (Strategy)
The management review of the draft operating plan may result in requests for amendments to one or more of
its components. Such requests will be collected and the custodian business units for each requested
amendment will be identified.
5.3.4 Prepare Overviews And Summaries Scheduled (Objective)
The operating plan contains text and summary schedules to support individual project details:

a) The Executive Summary will address any key political issues and will confirm how the operating plan
supports the implementation of the Strategic Plan.

b) Budget summary schedules will consolidate resource requirements (for both financial and human
resources). These may be calculated by strategy, budget object,
account or business unit. The requirements for such summary schedules may vary between plan versions.
5.3.5 Publish Final Version Of Operating Plan (Objective)
Following endorsement by management, the final version of the plan document is publsihed.
This will include:
- Project summaries and supporting details.
- Budget summaries (for both financial and human resources).
- Supporting commentaries (text and schedules).

5.3.5.1 Approve Plan For Publication (Strategy)
Approval of the final draft plan by management allows the final version to be published.
5.3.5.2 Circulate Final Version Of Operating Plan (Strategy)
Following publication of the final version of the plan, it must be circulated to all necessary recipients.
Possible circulation methods and formats include:
- Traditional printed hard copy.
- E-mail.
- Notification of availability of plan on a secure intranet FTP server.
5.3.6 Review Draft Op By Management Until Approved (Objective)
The draft Operating Plan is reviewed by management until their endorsement confirms that the it meets:
- The business needs of the Strategic Plan.
- Current resource constraints.
5.3.6.1 Publish Draft Plan For Management Review (Strategy)
A draft copy of the plan document is prepared and published for management review. This will include:
- Project summaries and supporting details.
- Budget summaries (for both financial and human resources).
- Supporting commentaries (text and schedules).
5.3.6.2 Implement Feedback From Management Review (Strategy)
Feedback obtained from the management review of the draft operating plan is implemented by the custodian
business unit of each component (projects, their supporting details, or the text summaries).

An iterative process may ensue until the management team endorses the draft plan.
5.3.6.3 Collect Management Feedback (Strategy)
The management review of the draft operating plan may result in requests for amendments to one or more of
its components. Such requests will be collected and the custodian business units for each requested
amendment will be identified.
5.4 Strategic Plan Implementation (Goal)
The financial line items contained within the operating plan to support each project will be used to monitor
and control achievement of the Strategic Plan.
5.4.1 Generate Control Budget (Objective)
The Operating Plan will form the basis of the budget used to control resource utilisation (ie. actual
expenditures and human resource). The budgets defined in the plan must therefore be transferred to the
budgetary control systems.
5.4.2 Analyze Expenditures And Resource Utilization (Objective)
Actual expenditures and resource utilization will be reviewed upon a monthly basis. Budget variances will be
identified and, if necessary, corrective action will be initiated to ensure achievement of the Strategic Plan.
5.4.3 Validate Delivery Of Project Benefits (Objective)
In parallel to a review of project resource utilization, any actual or proposed adjustments to the delivery of the
planned project benefits must be identified and analysed.

Major changes to the delivery of project benefits will trigger a re-prioritization of the entire project programs,
since the original optimization of projects may no longer be valid.
5.5 Operating Plan Refinement And Adjustment (Goal)
Major changes to the implementation the OP (ie. resource utilization or the achievement of benefits) are
reflected in amendments to the Operating Plan. Regular documentation of such amendments will ensure that
the Operating Plan remains an accurate,
dynamic model of the
organization's proposed route to the delivery of the Strategic Plan.

The Universal Performance Model Framework

MCesino — Mon May 19, 2008 7:31 am

Author: MCesino

Posted: Mon May 19, 2008 7:31 am

6 Product And Service Management (Mission)
The Product and Service Management provides the information that supports decisions relative to Product and
Service Development, Product and Service Marketing,
Product and Service Performance and Product and Service Maintenance. The Product and Service
Management assists in identifying linkages between products and services which in turn
supports the cross selling of related products and services to potential or current customers.
Additionally it identifies projected and actual profitability, resource allocation, quality analysis, product and
service development, pricing for new or modified current products and services, marketing plans and budgets,
capacity utilization,
and market segmentation.
6.1 Product And Service Performance (Goal)
Identify product and service profitability, sales volume, linkages, marketing performance and quality.
6.1.1 Identify Quality (Objective)
Determine and report the status of product or service quality. Quality is determined in terms of availability,
timeliness, error rate and customer satisfaction. Additionally, identify the costs of low quality for any or all categories of Quality.
6.1.1.1 Determine Customer Satisfaction (Strategy)
Identify and report the customer satisfaction relative to specific products and services provided. The reported
levels of customer satisfaction may be aggregated to further identify customer satisfaction within specific
markets segments relative to
specific products and services. Many measurements of customer satisfaction are derived from customer
surveys
provided by the offering enterprise, and by customer information provided by legal entities that provide like
information under contract privately or within the public domain.
6.1.1.2 Determine Service Timeliness (Strategy)
The purpose of the Determine Service Timeliness Sub-Function is to identify and report the timeliness of
completing activities relative to specific products and services provided.
Timeliness is identified as the number of activities performed too early or too late.
6.1.1.3 Determine Error Rate (Strategy)
Identify and report on the number of activities that were performed with at least one error relative to the
servicing of a specific product or service.
6.1.1.4 Determine Availability (Strategy)
Identify the availability of products and services. Availability is discussed in terms of the product and/or
service being available to be provided to the customer.
6.1.2 Identify Operational Performance (Objective)
Identify the effectiveness of operational activities processing. This is completed by analyzing the activities
processing costs, and the relative activities processing capacity performance.
6.1.2.1 Determine Activities Processed (Strategy)
The purpose of the Determine Activities Processed Sub-Function is to identify the capacity requirements for
activities processing. The volume of activities completed meets the number of activities needed to support a
specific product or service.
Additionally, this Sub-Function supports resource allocation (ie. work force and delivery channels) to further
refine overall operational performance.
6.1.2.2 Determine Activities Backog (Strategy)
Identify the adequacy of activities processing capacity utilizing activities backlog as a measure of
effectiveness. Backlog is measured in terms of cost and size.
6.1.2.3 Determine Capacity Performance (Strategy)
Iidentify the level the existing operational capacity meets product or service processing needs. This process is
measured in terms of the number of activities process and the number of activities backlogged.
6.1.2.4 Determine Activity Costs (Strategy)
Identify the associated costs of activities processing. The cost is identified by analyzing the historical activities
costs for like types of activities.
6.1.3 Identify Linkages (Objective)
Identify relationships to other products and services where specific activities that support them are common to
one another and to enhance the cross selling of products and services among customer and market segments.
6.1.4 Identify Marketing And Sales Performance (Objective)
Identify and report on the performance of marketing and sales for products and services within a specific
period of time.
6.1.4.1 Analyze Sales Performance (Strategy)
Identify product and service sales performance. This is measured in terms of sales volume, size distribution of
product and service sales and the number of customers.
6.1.4.1.1 Identify Sales Volume (Activity)
Identify the level of product or service sales and share of the market total.
6.1.4.1.2 Identify Sales Size Distribution (Activity)
Identify the size distribution of product or service sales in comparison to market size distribution of sales.
6.1.4.1.3 Identify Customer Volume (Activity)
Identify the number of customers purchasing products or services. Additionally, identify new, continuing or
lost customers indicating customer loss relative to market segments.
6.1.4.2 Analyze Marketing Performance (Strategy)
Identify the level and effectiveness of the enterprises marketing program(s). This is measured in terms of
marketing expense, expense per customer, return on marketing expense and sales revenue.
6.2 Determine Profitability (Goal)
Identify the actual profitability of the enterprises products, product lines and services. Additionally, utilize
projected and actual product use, pricing,
and costs to identify specific and overall profitability by way of performing an analysis to compare actual to
projected profitability.
6.2.1 Identify Projected Profitability (Objective)
Create a forecast of the profitability of future products and services or for existing products and services
during a specific time period.
6.2.1.1 Calculate Projected Revenues (Strategy)
Determine the product or service revenue based on projection of use and volume and by combining the use
and volume with standard prices. The standard price will be utilized to forecast the actual negotiated price for
each specific customer as required.
The prices are then summed by the specific product or service.
6.2.1.2 Forecast Activity Costs (Strategy)
Identify the forecasted cost of the activities that are performed relative to a specific product or service. The
cost is identified by combining the cost of all forecasted activities that will be performed relative to the
specific product or service.
6.2.1.3 Forecast Other Associated Costs (Strategy)
Determine all forecasted costs, with the exception of activity and risk factor projections, relative to a specific
product or service during a specific time period.
6.2.1.4 Acquire Forecasted Risk Factor (Strategy)
Obtain from the Product and Service Risk Business Function Group the projected risk factor for a specific
product or service to be applied as an offset to projected profitability.
6.2.1.5 Calculate Projected Profitability (Strategy)
Determine the projected profitability ratios, ie., Return on Assets (ROA), Return on Equity (ROE) and Return
on Interest (ROI)
for specific products and services. Forecasted net income is identified by subtracting projected activity and
allocated or overhead costs from projected revenues.
6.2.2 Identify Actual Profitability (Objective)
Determine the actual profitability of specific products and services. Actual profitability is measured in terms
of the revenues for a specific product or service minus the cost.
6.2.2.1 Calculate Actual Profitability (Strategy)
Identify the profitability ratios for a specific product or service for a specific period of time. For example,
Return on Interest (ROI), Return on Sales (ROS), Return on Capital (ROC) etc..
6.2.2.2 Acquire Actual Risk Factor (Strategy)
Obtain the risk factor for a specific product or service. The risk factor is to be used as an offset to the profits
for a specific product or service.
6.2.2.3 Calculate Other Associated Costs (Strategy)
Iidentify all costs that are related to a specific product or service with the exception of activity costs and the
related risk factor. Typical of these costs are general and administrative costs and promotional costs.
6.2.2.4 Calculate Activity Costs (Strategy)
Determine the activity costs relative to a specific product or service.
6.2.2.5 Calculate Revenue (Strategy)
Identify the revenues associated to a specific product or service. This is measured in terms of actual income
for a specific product or service and by the internally allocated value assigned to it. Internal allocations are
normally calculated and
allocated to specific products and services monthly.
6.2.3 Identify Actual To Projected Profitability (Objective)
Identify the actual product or service profitability to that of actual profitability over a specific period of time.
Variances may exist between either and may draw attention to the need to further review associated risk
factors,
prices or projection methods to further refine desired
profitability outcomes.
6.3 Product And Service Marketing (Goal)
Identify product and service sales volumes, preferred sales and delivery channels, set pricing and develop and
track the product and service marketing plan.
6.3.1 Calculate Price (Objective)
Identify the the best price structures for newly developed or modified products and services. Additionally,
acquire historical pricing information for use in identifying the best price structure for products and services.
6.3.1.1 Develop Products or Services Projections (Strategy)
Forecast sales and activities required for products and services relative to standard price structures.
6.3.1.2 Review Price Schemes (Strategy)
Review and identify the best price schemes for products and services based on forecasted performance results.
The price scheme contains chargeable activities (activities that are charged to the customer)
that identify how a customer is billed for the delivery and service of products and services in addition to the
basic price of those products and services.
6.3.2 Develop Marketing Plan (Objective)
Create the planning vehicle for the development and tracking of marketing plans for products and services.
6.4 Product And Service Development (Goal)
Support management in the development of new products and services and in the refinement of existing
products and services.
6.4.1 Proposal Review (Objective)
Identify and review the business goals and strategies, (eg. documented business direction), relative to product
and service development in terms of estimated product or service cost, profit opportunity and targeted
customers and market segments.
6.4.2 Identify Capacity Requirements (Objective)
Determine the capacity requirements for products and services and identify additional capacity requirements
not currently available to the enterprise in order to support a product or service. Capacity is measured in terms
of Financial,
Operational and Risk capacity.
6.4.2.1 Map Activities To Requirements (Strategy)
Identify those activities that meet the requirements of a product or service proposal.
6.4.2.2 Acquire Additional Requirements (Strategy)
Identify those additional activities needed to support a product or service proposal that are not already
available to the enterprise.
6.4.2.3 Acquire Financial Capacity (Strategy)
Identify the financial requirements and costs and feasibility of supporting a product or service. Input typically
consists of liquidity, capital and fixed-asset funding.
6.4.2.4 Acquire Operational Capacity (Strategy)
Obtain the operational capacity required to support a product or service and identify where additional
operational capacity is required by the enterprise where it is currently deficient. Operational capacity is
measured in terms of activities volume,
transaction volume, personnel, equipment etc..
6.4.2.5 Acquire Product or service Risk Factor (Strategy)
Obtain the associated risk factor for the product or service of interest. The risk factor is measured in numerous
ways by any given Legal Entity and only a few are identified here as an example. (eg. Credit, Settlement,
Market and overall risk).
6.4.3 Develop Product or Service Budget (Objective)
The purpose of the Develop Product /Service Budget Business Function is to assist in the creation of product
or service development plan. The development plan is to provide for resource management, identification of
milestones, cost planning,
organizational responsibility and targets/goals. The information to support this plan is provided by a system
external to the Universal Model.

The Universal Allocation Model Framework

MCesino — Mon May 19, 2008 7:23 am

Author: MCesino

Posted: Mon May 19, 2008 7:23 am

3 Management Accounting (Mission)
Identity the relationships between organizations and accounts, monitor plans and budgets and report on
varying levels (by organization or collectively) of profitability. Additionally, assist in the cost and revenue
allocation across organizations,
transfer pricing for products,
services, funds and capital and the planning of capacity.
3.1 Organization or Account Relationships (Goal)
Determine the relationships between organizations (organizations are also considered booking units where
applicable) and accounts of the enterprise.
3.1.1 Identify Organization Structure (Objective)
Determine all organizations structure and the relationship between organizations of the enterprise. Further,
organizations are identified as a cost or profit center and profit center organizations are typically viewed as a
booking unit. The relationships
between these organizations are more often than not organization charts but also may be of a matrix nature.
Organization structure is determined solely at the discretion of senior management of the enterprise and may
be identified by lines of business, specific products and service, market segments, geographic areas,
operational functions,
specific customer etc..
3.1.2 Manage Organization Chart (Objective)
Routinely update the organization chart of the enterprise as changes (proposed or actual) occur.
3.1.3 Identify Account Structure (Objective)
Determine the structure of accounts that are required for cost and management accounting. The accounts are
created and defined in order that the relationship between management,
financial accounting and general ledger may be identified and is required to support lateral
reconciliation. Additionally, support the roll up of accounts into other accounts and identifies the ownership of
accounts. Accounts may also be for customer, cost, product, service and overhead etc. accounts.
_________________________________________________________________________________________________
3.1.4 Manage Account Structure (Objective)

Update changes (occurred or proposed) to the account structure and to provide impact statements based on
proposed changes.
3.2 Allocation Management (Goal)
Identify and monitor revenue, capital, unit and total costs across organizations, market segments, products,
services and activities for the purposes of planning and profitability reporting. Receive, analyze and report on
costs to be allocated for items
such as operating costs, revenues, overhead costs, nonoperating revenue, regulatory and management capital.
Additionally, activity orientated cost allocations that support the creation of unit cost per activity,
provide for a more detailed view of the cost of overhead services and the amount of overhead charged for
services. Thusly,
determining the allocation of costs associated relative to marketing could be performed by dividing the total
marketing expense into customer calls and advertising, creating a unit cost for customer calls and advertising,
determining each organizations unit's utilization of customer calls and advertising and charging marketing
overhead expense based on the number of customer calls and advertising units utilized, multiplied by the
appropriate unit cost.
3.2.1 Allocate Costs (Objective)
Provide for the allocation of indirect costs to market segments, customers, products, services and activities by
way of accessing and updating the algorithms utilized for directing indirect costs across organizations (cost
and profit centers).
Rates are identified relative to non-financial information such as headcount, person hours, transaction volume,
square footage etc. or through financial information such as account balance or monetary amounts (dollars,
yen, francs etc.).
3.2.1.1 Cost Allocation Method (Strategy)
Store and maintain the cost allocation methodologies such as cost allocation basis (transaction volume,
headcount, monetary etc.), and algorithms (proportional, weighted, linear and activity based).
Proportional cost allocations are algorithms that spread costs based on a percentage of total basis units
utilized, weighted algorithms consider type of weighting factor for type of basis units (eg. basis unit = square
footage, then excutive office space
has greater weighting than storage space), where Linear cost allocation would consider total depreciation
expense equally to all organizations. Activity based algorithms identify costs associated to the specific
activities that compose an activity. Algo
rithms that support both allocation overhead charges to cost centers and the directing of those allocated costs
to profit centers is accomplished here. This Business Sub-Function contains all the methodologies utilized by
the enterprise for cost
allocations purposes and is intended to provide flexibility for change and the ability to utilize multiple
methods.
3.2.1.2 Determine Cost Allocation Rates (Strategy)
Identify the percentage or amount of indirect source and overhead costs that will be allocated to each
organization, customer, market segment, product and service etc.. As an example, advertising/
promotional cost allocation method may direct that all advertising/promotional expenses be allocated to
management units based upon headcount. Thusly, identifying the percentages to be allocated.
3.2.1.3 Perform Cost Allocation (Strategy)
Allocate indirect costs from a source account relative to an organization, customer, market segment etc., to a
destination account. All costs should be identified at the source and destination as indirect cost in order to
support traceability and cost
analysis.
3.2.2 Allocate Revenue (Objective)
Provide for the allocation of revenues to cost centers and organizations not directly participating in revenue
producing activities, or,
to organizations when more than one organization is participating in producing revenues. Provide for the
maintaining of revenue
allocation methods for directing revenue across organizations and to products, services, market segments etc.,
associated to those organizations. The allocation of revenue is performed by way of allocating a portion of
revenue earned from the generating
organization to an organization that is indirectly involved in the generation of revenue, or, allocating revenue
between two or more organizations that are directly involved in the generation of revenue.
3.2.2.1 Revenue Allocation Method (Strategy)
Store and maintain the methods for the allocation of revenues. The allocation of revenue is typically
performed by the allocation of a portion of the earned revenues from the organization that generates it to an
organization that is indirectly involved
in the generation of that revenue,
or, the allocation of revenues between two or more organizations that are directly participating in the
generation of the revenue.
3.2.2.2 Determine Revenue Allocation Rates (Strategy)
Identify the percentage or amount of revenue that will be directed to each organization, customer, market
segment, product, service, etc.,.
3.2.2.3 Perform Revenue Allocation (Strategy)
Allocate revenue from a source account relative to a customer, market segment, product, service etc. to a
destination account. The revenues should be identified at the source and destination to provide for traceability
and profitability analysis.

_________________________________________________________________________________________________
3.2.3 Allocate Capital (Objective)
Provide for the allocation of capital to organizations, customer, market segments, products and services etc..
This Business Function supports the allocation and tracking of regulatory and management capital and
supports the allocation of capital along
geographic divisions
and lines of business. The strategic organization objectives relative to capital allocation is established. The
methodologies regarding capital allocation that define allocation relationships (sources and targets for varying
classes of capital)
are determined here.
3.2.3.1 Capital Allocation Methods (Strategy)
Store and maintain the methodologies for capital allocation at a tactical level. Organizaitonal strategic capital
allocation direction is established within the Financial Strategic Direction Business Function Group. The
capital allocation methodology
determines the source of capital and the target organizations, customers, market segments, products and
services
etc., and determines the allocation relationships for individual classes of capital if requried.
3.2.3.2 Determine Capital Allocation Rates (Strategy)
Identifying capital allocations at a tactical level. The capital allocation methodologies and the basis of the
allocation, the sources and targets of allocations in addition to the identification of allocation relationships (
source to target and varying types of classes of capital) are identified here.
3.2.3.3 Perform Capital Allocation (Strategy)
Perform actual capital allocations to organizations, customers, market segments, products and services, etc..
The allocated capital should be identified at the source and destination accounts to provide traceability and
support profitability analysis.
3.2.4 Manage Activity Costs (Objective)
Provide cost accounting relative to activities that comprise products and services and the transactions that
support them. Upon completion of the allocation of indirect costs to organizations and added to direct cost
accounts owned by organizations,
resulting loaded costs may be directed across activities. Additionally,support cost and profitability analysis of
products, services and customers.
3.2.4.1 Activity Cost Allocation Method (Strategy)
Store and maintain the cost allocation methodologies utilized by the enterprise. These methodologies are to
include cost allocation bases and algorithms as well as schedules for updating the methodologies. The activity
cost allocation methodologies are s
trictly for the use of allocating costs associated to activities rather than allocations to organizations, customers,
market segments etc.. The activity cost allocations will typically be of a proportional, weighted or linear
nature. Proportional allocat
ions will direct costs associated to activities on a percentage basis as where weighted costs utilize an algorithm
however, it considers the activities level of importance. Linear allocations direct costs equally to all activities.
Additionally,
relative to activity cost allocations, the algorithms identify relationships between the source of the allocated
costs and their destination accounts (organization accounts).
3.2.4.2 Determine Activity Cost Allocation Rates (Strategy)
Identify the percentage or amount of source activity costs that will be allocated to a destination account.
Typically, this would be accomplished, as an example,
by the activity cost methodology specifying that the allocation of all activities costs be derived
proportionately,
based upon the volume of transactions relative to the handling of customer technical inquires. Thusly,
providing for the identification of the percentages to be allocated.
3.2.4.3 Perform Activity Cost Allocation (Strategy)
Allocate costs form the source organization accounts to the destination organization accounts. All costs should
be identified at the source and destination to provide traceability and cost analysis.
3.2.4.4 Identify Activity Cost (Strategy)
Determine the standard costs for the organizations activities. The standard costs are those costs that are
anticipated to be incurred for the typical business activity. As an example,
the standard activity cost for providing technical support for a customer inquiry may be determined.

Additionally, the standard activity costs are frequently identified assuming full capacity use of the
organizations activity capacity resources.

Standard costs should be reviewed when the characteristics of an activity change (product or service
modifications, supplier prices, delivery channel changes, overhead changes etc.).

Standard costs are also utilized to establish cost targets and assist in the identification of variances in activity
costs.
_________________________________________________________________________________________________
3.3 Transfer Pricing (Goal)
Provide the management of the internal prices for funds, services and capital from one management unit to
another.

The rules for transfer prices are established and vary based upon the service or product provided and are
utilized to identify the actual transfer price. Transfer pricing is different from cost allocation in that the service
or funds provided internally
to other organization units are borrowed indirect costs or revenues. A profit center may have opportunity
costs in providing
services internally and may consider the sale as an arm's length transaction with another customer by charging
for it according to established transfer pricing rules. Unlike cost allocations that are allocated only after they
are incurred,
the transfer price is understood prior
to any transaction transpiring.

With transfer pricing, actual costs are incurred and revenues booked only when the service or product is
provided, as it is with external customers. Transfer pricing rules identify the methods and basis utilized for
transfer pricing. The rules and rates
identify the allowed transfer pricing relationships between organization units and identify the type and
amount of funds, service or capital to be transferred at a specific price.

Assists organization units to increase overall efficiency and profitability of the overall organization.
3.3.1 Funds Transfer Pricing (Objective)
Analyze and revise the transfer pricing of funds used internally by the organization units and determines the
transfer price based upon those rules. Typically,
rules apply to borrowing from a funds pool up to a specified amount for a specific period of time, at the pool
rate.

Additionally, the rules may stipulate that the pool rate is an average market rate for the pooled funds plus
some basis points to cover processing costs. Rates are generally in line with market rates,
making internal transfer pricing of funds sensitive to market conditions.
3.3.1.1 Funds Transfer Pricing Rules (Strategy)
Maintain the rules for transfer pricing of funds. The funding entity maintains rate schedules based upon
market rates by amount and type of funds.

The rules determine which rates are used internally. Typically, the rules may set different rates by amount,
tenor, type, or the user of the funds.
_________________________________________________________________________________________________
3.3.1.2 Determine Funds Transfer Price (Strategy)
Calculate the transfer price of funds based on the amount and type of funds and potentially the source and/or
user of the funds.
3.3.2 Services Transfer Pricing (Objective)
Review and revise the rules for charging transfer prices for services rendered internally, typically by profit
centers, and determines the transfer price based on those rules.

Differs from the allocation of costs, as the total cost of a service provided by a cost center is determined at the
end of a fiscal cycle and the allocated amounts are derived from the total cost.

The transfer price is determined prior to the transaction and actual charges are incurred only when the service
is provided. Transfer pricing for services will be based on those criteria deemed appropriate which may
include as an example; cost,
cost-plus, or the fully allocated cost.

Costs often reflect market prices for services, thusly indicating their sensitivity to market fluctuations and
which provide insight to profit centers relative to their opportunity costs in providing services internally.
3.3.2.1 Services Transfer Pricing Rules (Strategy)
Maintain and update the rules for the transfer pricing of services which determine the rates to be used
internally. Rules may establish distinctly different rates based upon market price,
cost plus or any rates agreed to by the provider and user of the service.
3.3.2.2 Determine Services Transfer Price (Strategy)
Identify the transfer price of services based upon the type of service and potentially the user of the service.
3.3.3 Capital Transfer Pricing (Objective)
Establish and maintain the rules and rates for the transfer pricing of capital. The enterprise may assign a price
to capital to recognize at the organization unit level the cost of maintaining adequate capital to motivate
organization units to make wise
investment decisions.

Transfer pricing rules record the methodology and basis of the transfer price, and identifies the source of
capital and the organization units, products,
customers and market segments that receive them as well as allocation relationships and any specific sources
or recipients of differing
classes of capital.

Transfer pricing activity is typically booked as direct costs or revenues for organization units in an operational
system external to the Universal Model.
3.3.3.1 Capital Transfer Pricing Rules (Strategy)
Record and update the rules for the transfer pricing of capital for organization units. Identify the source and
recipient of the capital including sources and recipients for different classes of capital,
as well as the methodology and basis for the transfer price. The applicable schedules for allocating capital is
also included in the allocation rules.
_________________________________________________________________________________________________
3.3.3.2 Determine Capital Transfer Price (Strategy)
Determine the prices for the transfer of capital. Prices may vary based upon the amount of capital, class of
capital, and potentially the recipient organization unit, product or market segment.

The actual transfer pricing is posted as direct costs or revenues to the organization units involved.
3.4 Financial Planning And Performance (Goal)
Identify the financial plan structure, performance indicators for financial, operational and market performance.
Establish plans based on performance goals, combine and aggregate plans,
identify actual performance as compared to planned. Provide for the adjustment of
plans and the re-forecasting of performance, and provide overall visibility into organizational profitability.
3.4.1 Establish Financial Plan Structure (Objective)
Develop the structure for the plan and budget process by identifying performance indicators which reflect
management assumptions and performance goals for the organization units. Performance indicators are the
definitions of key business measures as were
goal indicators
are assigned a value based on planning assumptions. Inputs are required from cost and revenue allocation
functions for organization specific assumptions and from market analysis for the economic and competitor
information. The performance goals
identified are utilized by
organization units in the establishment of their detailed plans and budgets.
3.4.1.1 Determine Performance Indicators (Strategy)
Create and maintain an index of all performance indicators utilized by the organization to log plan
assumptions, establish performance indicators, create plans and track performance.

The indicators utilized are typically financial indicators such as Return on Equity (ROE), Return on Assets
(ROA), Return on Capital (ROC) etc., but may also be established to reflect operational performance such as
market share,
head count or transactions processed.
3.4.1.2 Identify Assumptions (Strategy)
Identify and record all assumptions relative to the plan and budget such as organization specific, competitor,
economic, product and service, line of business etc.. These assumptions are utilized to establish performance
goals within organization units.
3.4.1.2.1 Determine Economic Assumptions (Strategy)
Identify and record the economic assumptions that have an effect on the plan or budget or an organization
unit, market segment, product or service and are utilized to establish performance goals.

Economic assumptions may include items such as interest rate projections, inflation and market segment
growth.
3.4.1.2.2 Determine Organizational Assumptions (Strategy)
Identify and record the assumptions of the enterprise that have an effect on the plan or budget of an
organization unit, market segment, product or service and are utilized to establish performance goals.

Assumptions could be items such as salary guidelines, headcount, employee benefits and planned capital
expenditures.
3.4.1.2.3 Determine Competitor Analysis (Strategy)
Identify and incorporate any assumptions about competitors that may have an effect on the plan or budget of
an organization unit, product, service or market segment.

Competitor assumptions often are utilized in the development of the plan to assist in the establishment of
performance goals.
3.4.1.3 Establish Performance Goals (Objective)
Establish performance goals for organization units utilizing defined indicators based on the assumptions built
into the plan.

Goals are predominately financial measures of profitability, but may also include goals for operational and/or
marketing performance. Strategic overall performance goals are established within the Financial Strategic
Direction Business Function Group.
3.4.1.3.1 Identify Financial Goals (Strategy)
Establish the financial performance goals for profit centers and potentially some cost centers and operating
units.

Measure profitability in line with Return on Assets (ROA), Return on Equity (ROE) as well as net interest
revenue and income, noninterest income, net revenue growth and revenue to cost ratios etc., as well as asset
quality, liquidity and capital adequacy
3.4.1.3.2 Identify Operational Goals (Strategy)
Establish the performance goals (productivity and efficiency) for operational areas such as cost centers and
other areas not measured by financial performance goals.
Operational performance goals may also be utilized by profit centers that execute operational functions or
have operational costs allocated to it.
3.4.1.3.3 Identify Marketing Goals (Assumption)
Establish the performance goals for marketing.

This is utilized by profit center organization units and marketing organization units as an additional
performance measure in addition to financial performance goals.
3.4.2 Establish Business And Financial Plan (Objective)
Support the creation, monitoring, consolidation, review, and the adjustment of plans and subsequent
reforecasting of goals.

This is accomplished via the plan structure that provides organizational management assumptions on
organizational, economic, competitive factors and performance goals for all organization units. In the creation
of the plan,
organization units populate the structure with the level of detail (eg. expense budgets, profit and loss
statements, head count, operational
requirements etc.),necessary to accomplish the plan.
3.4.2.1 Determine Organizational Unit Plan (Strategy)
Provide for the creation of detailed organization unit business plans and budgets. Although the plan structure
provides the overall assumptions and performance goals, the organization units create plans that will meet
those performance goals.

Organization units may create plans to increase product and/or service volume or price, add products/services
and customers or control expenses etc.. All expenses, revenues, operational plans etc.,
should always be identified at the lowest level by customer, product, service, market segment or operating unit
in order to acquire testable measures.
3.4.2.2 Aggregate Plans (Strategy)
Consolidate all organization unit plans and budgets and group them at higher levels of aggregation as
required.

Plans and budgets may be consolidated across market segments, product and service groups or operational
units as required.
3.4.2.3 Analyze Plans (Strategy)
Analyze organization unit specific and aggregated plans and budgets by way of comparing plans to
performance goals and to previous performance.

Reconciliation relative to variances between plan and goals is accomplished by the creation of alternative
plans or through plan adjustments. Alternative plans or plan adjustments that significantly affect the
organization unit and the overall plan
structure are fed back. The
reforecasting of a plan may be required.
3.4.2.3.1 Identify Plan To Goal Variances (Strategy)
Compare organization unit plans to performance goals established by the Establish Financial Plan Structure
Business Function.

Significant variances are recorded, plans and/or budgets may be reforecasted.
3.4.2.3.2 Identify Plan To History Differences (Strategy)
Compare organization unit business plans to previous plans and assists management in establishing
performance plans based on past history.

Past performance is routinely incorporated into organizational assumptions and performance goals and
comparisons between plans and history provides indicators relative to any need for additional resources
necessary to achieve performance goals.
3.4.2.3.3 Identify Plan Alternatives (Strategy)
Develop alternative plans and perform simulations relative to those alternative plans thusly providing insight
into potential outcomes and, providing for the ability to reconcile differences between plans and goals.

Provide the ability to produce plans that meet the organization units performance and business plan goals.
3.4.2.4 Adjust Plans (Strategy)
Provide for the incorporation of any plan adjustments identified in the Analyze Plans Business Sub-Function
and as a result, a new or adjusted plan is developed.
3.4.3 Track Performance To Plan And Make Adjustments (Objective)
Monitor and review the actual and plan or budget performance for an organization unit. Provide reports
relating to actual results versus plan, actual versus reforecasted plan such as balance sheets, profit and loss and
cash flow statements.

_________________________________________________________________________________________________
3.4.3.1 Identify Organization Unit Performance To Plan (Strategy)
Report on organization unit performance by the comparison of actual financial results versus that of planed
and to reforecast for the organization units as required.

These reports are created in alignment with the plan structure and include financial statements and other
performance indicators. Details relevant to these reports include:
interest, fee and trading income;
interest, operating, overhead, variable and fixed expenses;
sensitive and non-sensitive interest rate assets;
sensitive and non-sensitive interest rate liabilities;
equity, dividends, loan loss provisions and reserves;
credit, market and settlement losses;
capital expenditures;
outsandings, charge offs, ROA, ROC, ROE RAROA, RAROC;
capital adequacy, overall liquidity, cash flow, capacity utilization and productivity and unit cost.
3.4.3.2 Report Plan As Compared To Reforecast (Strategy)
Report variances between plans and to reforecast plans as required. Plans may be reforecast throughout the
planning cycle as a result of updated economic assumptions or organizational assumptions.

The reforecasts are incorporated into an updated plan.
3.4.3.3 Determine And Track Variances (Strategy)
Identify and monitor variances in plans and reforecasted plans compared to actual financial results.
Additionally, all variances by the amount or percentage that the results of actual business operations differ
from projected results for the plan are
identified.
3.5 Capacity Management (Goal)
Provide support in the analysis of capacity requirements and use, and to identify constraints and required
investments to effectively manage and utilize capacity within the enterpirse. Maintain information on the type
and quantity of resources the
enterprise utilizes such as square footage, head count, number of facilities (computers, telephones,
automobiles,
automatic teller machines, cash registers etc.), CPU capacity etc.. Additionally, the effective utilization rate,
standard productivity rate in performing activities, product or service quality (error rate, timeliness, reliability),
average,
marginal and total resource costs and historical, actual and projected transaction volumes are identified.
3.5.1 Capacity Utilization (Objective)
Identify the capacity required to perform current activities and compares this with capacity utilization to
provide analysis on capacity problem areas and assists in resource investment decisions.

The current resources are identified and quantified by cost and what other measures are relevant to the
enterprise. Additionally,
quality standards for each resource is identified to ensure capacity utilization rates support established quality
standards.
3.5.1.1 Resource Activity Index (Strategy)
Acquire and maintain information relevant to the type and amount of resources required to perform each
activity of the enterprise.

This information is utilized to determine available capacity to accommodate increased volumes of customers
or transactions. The standard value will be identified in terms of a rate (
units of activity performed over a period of time by one resource unit). Input for this is the
standard productivity rate within identified quality standards for each resource participating in performing in
the enterprises activities.
3.5.1.2 Identify Capacity Utilization (Strategy)
Determine the volume of activities, transactions or customers that are processed with the currently available
resources.

Due to the nature that a large portion of the enterprises resources are shared by numerous activities, the
capacity determined must be expressed for the current mix of activities. The available resources will be
allocated to the individual activities in
proportion to the current utilization of resources.
3.5.1.3 Organizational Resources Information (Strategy)
Acquire and maintain all information relevant to the resources utilized by the enterprise for capacity planning
purposes and to be a resource for other business functions to utilize to determine available capacity.
3.5.2 Change Impact Projection (Objective)
Identify the impact of numerous changes effecting the operations of the enterprise.

These changes may include volume projections, productivity rates, increased or decreased resources or any
combination thereof. Provide the analysis of the impact that each potential change could potentially have on
capacity utilization or the need for
additional resources and
their associated costs.

_________________________________________________________________________________________________
3.5.2.1 Identify Capacity Utilization Projection (Strategy)
Determine the effect of potential changes on the capacity and utilization of the enterprise and to assist in the
identification of capacity utilization problem areas.

This may include various assumptions relative to the volume of transactions, resources available and
productivity rates.
3.5.2.2 Identify Resource And Cost Impact (Strategy)
Determine the impact of various changes on the resources of the enterprise, changes in the mixing of
resources to avoid utilization problem areas and identifies the cost of necessary changes.

Additionally, consideration should be given to the fact that various activities may be performed using
alternative resources with different costs (eg. manual vs. automated activities,
or activities that may be performed externally by a contractor as compared to internally), and, the
majority of activities are shared by other resources within the organization.
3.5.3 Capacity Change Impact Projection (Objective)
Determine capacity projections by changing assumptions about the resource availability, productivity rates and
volume of transactions.

These assumptions will typically contain assumptions such as volume of projections during future time
periods, volume changes caused by new business or shedding undesirable business, the impact of automation
efforts on resources,
acquisition of new resources and productivity projections.
3.5.3.1 Volume Change Projection (Strategy)
Identify the volume of transactions, activities or customers that result from alternative business decisions (eg.
entering into new market segments or the marketing of new products and/or services).

The projection may be determined based upon market analysis information, management estimates or
historical data.
3.5.3.2 Productivity Change Projection (Strategy)
Identify the productivity assumptions that have a potential impact on the operations of the enterprise.

Typically, productivity change assumptions are the type of resources required to perform a specific activity
and the amount of resources required to process the activity such as, changes in policy or operational
procedures,
changes in the technology employed, human resources, new equipment etc..
3.5.3.3 Resource Change Projection (Strategy)
Determine the impact of changes in resources capacity driven by business assumptions.
Changes in resource capacity typically are items such as head count increases or decreases, volume of
equipment, business locations, delivery channel volume etc..

The Universal Resource Model Framework

MCesino — Mon May 19, 2008 7:22 am

Author: MCesino

Posted: Mon May 19, 2008 7:22 am

1 Asset Management (Mission)
Ensure that all decisions about assets are based upon common, accurate information and flexible analysis
tools.
1.1 Maintain Accurate Asset Inventory (Goal)
An accurate and current inventory of all assets will be maintained by each business unit. The inventory will
used by all business units to:
- monitor compliance with standards.
- evaluate the implications of a change in standards.
- ensure the optimal allocation and utilization of all assets.
1.1.1 Track Change In Status Of Any Asset (Objective)
To maintain an accurate, current inventory, any change in the status of an asset will be immediately
documented in the asset inventory.
1.1.1.1 Status Of An Asset Changes (Strategy)
A change in the status of an asset will require an immediate update of the asset inventory.
Changes to be documented for each asset include:
- updates to the purchase history.
- reallocation to another business unit.
- change in the relationship between two or more assets.
- changes to specifications (eg. resulting from upgrades).
- disposal.

There is no need to delete any assets - they will be either transferred to another business unit or 'disposed'.
1.1.1.1.1 Amend Asset Inventory (Activity)
Data in the asset inventory is updated by the responsible business unit.
Inventory assets will be identified in the asset inventory for update by their number, manufacturer's serial
number (if any), or any other available reference number. Alternatively, assets may be identified by their
responsible business unit,
asset type or specifications.

Note that certain updates will require the approval of more than one business unit (eg. transfers of assets
between business units).
1.1.1.1.1.1 Obtain Approval Of Other Business Units (Activity)
The transfer of an asset between Districts,
_________________________________________________________________________________________________
Divisions or Special Offices will require the prior approval of both the originating and receiving business unit
prior to the transfer. Such approval will not be required for internal transfers within a District, Division or
Special Office.
1.1.2 Add All New Assets To Inventory (Objective)
All new assets will be added to the system as soon as they are received. The asset inventory will be updated
on a regular basis to allow detailed tracking of all new assets.

Use of the system is the only way in which new assets may be added to the asset inventory.
1.1.2.1 A New Asset Is Received (Strategy)
When a new asset is received by a business unit, a new asset number will be assigned to it. This number will
subsequently be used to track the asset in the asset inventory (and other systems).
1.1.2.1.1 Add New Asset To System (Activity)
Basic information about a new asset is entered into the system, and a new number is issued. A label is
attached to the physical asset, if possible. Other basic information about the asset will also be entered into the
system (eg. its name,
manufacturer, voucher cost, Purchase Order number and receipt date...).
1.1.3 Validate Accuracy Of Asset Inventory (Objective)
The accuracy of the asset inventory will be validated through the audit of inventory reports by each business
unit.
1.1.3.1 Initiate Asset Inventory Audit (Strategy)
On a regular basis (eg. monthly or quarterly) business units will audit the accuracy of the asset inventory by
the comparison of inventory reports with the assets located in their areas of responsibility.

Other triggers of the need for an asset inventory audit might include:
- implementation of a new core technology architecture.
- deployment of a major new software package state-wide.
1.1.3.1.1 Generate Asset Inventory Report (Activity)
Asset inventory reports will be generated to show all asset details which can be audited by the business units.
Content of such reports will be defined by the business unit, and will include the flexibility to:
- select business units.
- select asset types.
_________________________________________________________________________________________________
- filter by a range of asset specifications.
- show optional levels of asset detail.
- show a count of assets by business and asset type.
1.1.3.1.2 Perform Asset Inventory Audit (Activity)
Business units compare the asset inventory report with the assets to be located in their areas of responsibility.

Any discrepancies will trigger the Business Event "Status of an asset changes".
1.2 Enable Accurate Asset Inventory Analysis (Goal)
All decisions upon assets will be resolved by using the asset inventory.

Examples of decisions to be supported include:
- Asset selection and purchase.
- Asset deployment and re-allocation.
- Asset upgrade(s).
- Asset disposal.

1.2.1 Provide Tools To Analyze Asset Inventory (Objective)
Tools to analyse the asset inventory are required at all levels of the organization. Such tools need to meet the
specific analytical requirements of each organizational level.
1.2.1.1 Initiate Asset Analysis (Strategy)
The requirement to analyse the asset inventory may be triggered for many reasons, including:
- Identify assets which meet/do not meet a set of specifications.
- Identify assets which comply/do not comply with defined standards.
- Identify assets which comply/do not comply with core architectures.
- Identify assets which should be disposed of.
- Ad hoc analyses to support requests.
The requirement for an analysis may occur at any time. It must be valid to assume that the asset inventory is
always up-to-date. Standards are required to define the accuracy of the asset inventory (
eg. all changes to assets must be recorded within 5 days).

The requirement for an analysis may be triggered at any level of the organization.

The outputs from the analysis process cannot be predicted (though certain standard 'reports' will need to be
identified and pre-defined), implying the need for a flexible, user-customizable reporting tool.
1.2.1.1.1 Identify Assets That Meet Requirements (Activity)
_________________________________________________________________________________________________
Perform an analysis of the asset inventory to identify all assets which meet the required criteria.

Flexible reporting tools will be used to present the results of the analysis, which may include the upload of the
analysis to other PCs / spreadsheets for further analysis or inclusion in reports or presentations.

Zachman Framework for Enterprise Architecture Briefing

MCesino — Mon May 05, 2008 1:02 pm

Author: MCesino

Posted: Mon May 05, 2008 1:02 pm

Visible's relationship with John Zachman goes back to the early 70`s when John and Clive Finkelstein, our Chief Scientist, were with IBM. Clive's belief that data models should be "business event driven" and "model based" paralleled John's belief in the need for a business-driven Enterprise Information Architecture which would provide an organization with an organization-scale blueprint -- or architecture --for their information infrastructure. This strategy briefing describes how Visible tools, training and services help "populate" the cells of the framework.

This strategy briefing and its associated forum postings are designed to help you now in your endeavor to build a more effective Enterprise Architecture more efficiently. Please feel free to learn from other postings and share your experiences through your own postings via the Visible Forum.

Enterprise Portals Lifecycle Briefing

MCesino — Mon May 05, 2008 1:00 pm

Author: MCesino

Posted: Mon May 05, 2008 1:00 pm

The latest "silver bullet" for IT is the Enterprise Portal. It has many names: Enterprise Portal, Enterprise Information Portal, Corporate Portal, Web Portal, and just plain Portal. Whatever it's called, portals promise to provide necessary information from any source to anyone who needs it. This has the potential for significant productivity and competitive gains.

While Enterprise Portals may have this potential, it is not easy to deliver� even with new tools and technologies and single point access to heterogeneous information, in multiple formats, from multiple sources. In order to be truly effective, Enterprise Portals cannot just happen -- they must be "engineered." This strategy briefing provides a simple definition for Enterprise Portals, describes their benefits, and outlines a method and tools for easily and efficiently engineering them.

This strategy briefing and its associated forum postings are designed to help you now in your endeavor to build a more effective Enterprise Architecture more efficiently. Please feel free to learn from other postings and share your experiences through your own postings via the Visible Forum.

Enterprise Architecture Lifecycle Briefing

MCesino — Mon May 05, 2008 12:58 pm

Author: MCesino

Posted: Mon May 05, 2008 12:58 pm

This strategy briefing describes the Enterprise Architecture Lifecycle and the Visible Enterprise Lifecycle "tool set." The Enterprise Lifecycle involves all the activities that organizations ("enterprises") perform to improve productivity, gain and maintain competitive advantage, optimize resources, deliver quality products and services, and meet customer expectations and demand.

The impact of change on the Enterprise requires that systems supporting lifecycle processes must also be changed. This paper details how Visible's Enterprise Lifecycle methodology and tools, not only make effective change management throughout the lifecycle possible, they make it easy.

This strategy briefing and its associated forum postings are designed to help you now in your endeavor to build a more effective Enterprise Architecture more efficiently. Please feel free to learn from other postings and share your experiences through your own postings via the Visible Forum.