Let’s learn about the meaning and concept of the value delivery system.
Understanding the meaning and concept of the value delivery system
The System for Value Delivery is a system for delivering value that is aligned with the strategy of a company or organization. The System for Value Delivery is a system for achieving “value” that is aligned with the strategy of a company or organization through projects. The means of developing value are projects, programs, and portfolios, and the means of providing value to customers are the company’s business operations. All companies and organizations provide value to their organizations or customers. Providing useful products and services to customers, contributing to the local community, and improving the efficiency, productivity, and effectiveness of work performed by various stakeholders can be the next step. Preparing a company for the future, such as digital transformation, also becomes value. The Value Delivery System consists of value creation, organizational governance system, project-related functions, project environment, and product (system) management considerations. In addition, the Value Delivery System consists of two or more portfolios and individual programs and projects. The components of the Value Delivery System must follow the strategy of the company or organization and respond well to changes in the environment. In the case of strategy, it should be communicated from top to bottom, and the execution performance of the strategy should be well communicated from bottom to top. The strategy should be handed down from the management to the portfolio, and the value should be delivered from the portfolio to the programs and projects, and the deliverables and operational information of the programs and projects should be well communicated to the operation. Conversely, the operational performance should be updated as the programs and projects are implemented, and the performance information and progress of the programs and projects should be well communicated to the portfolio. The performance information of the portfolio should be well reported to the management. The information of the value delivery system should be well communicated from the portfolio to the operation, and the information of the value delivery system should be well communicated from the operation to the portfolio.
Explanation of the meaning and concept of value delivery system
The System for Value Delivery describes the system for delivering value that is aligned with the strategy of the business and the organization. The System for Value Delivery describes the important system for delivering value that is aligned with the strategy of the business and the organization. The System for Value Delivery consists of five components. The five components of the System for Value Delivery are value creation, organizational governance system, project-related functions, project environment, and product (system) management considerations.[가치 인도 시스템의 구성 요소]
The value delivery system explains how value creation progresses in stages. The value delivery system places importance on the organizational governance system that must be followed when carrying out a project. Governance refers to the management control system that a specific company or organization has. In order to carry out a project, collaboration with multiple people and multiple departments is required. Project management functions refer to people, departments, or roles that must discuss and collaborate when carrying out a project. The project environment is the environment in which the project is carried out, and it is affected by the internal environment of the organization and the external environment of the organization. The external environment of the organization includes the market and regulations.
1. Value creation activities
The ultimate reason for doing a project is “value creation.” Companies and organizations create value for stakeholders through projects. The goal of a project is to create value for stakeholders. In order to create value for a project, project team members and stakeholders must take on various roles and carry out the project. In the case of operational work, it is a repetitive task, so the process is set, but since a project is a one-time task, a project must be carried out according to the situation each time a project is done. There are various examples of value creation in a project. The most important value is developing products and services that meet the needs of customers or end users. Creating results that meet the needs of customers and end users is value creation. In fact, products and services are the most important values for companies and organizations. Another example of value creation is that developing a system and implementing a service may also have the purpose of increasing the efficiency, productivity, and responsiveness of work. This is also value creation. Supporting the changes necessary to transition to the future state that the organization is pursuing is also important value creation. Continuing to maintain the benefits (effects) made possible by previous projects, programs, and operations can also be value creation. In order to make a positive contribution in terms of the social environment, carrying out a project is also creating value. Examples of value creation are diverse, and the value action system is important. The value delivery system has components that can individually or comprehensively create value, such as portfolios, programs, projects, and operations. If there are multiple projects, managing related projects is called a program, and a collection of these programs and projects is called a portfolio. They work together to create value that matches the strategy of the company and organization, forming a value delivery system. Projects can be executed within a program or portfolio, or they can be executed independently. In order to create the value that companies and organizations ultimately want to achieve and obtain, projects within the company and organization are carried out, and management of the program aspect, which is a collection of multiple projects, is necessary, and the value delivery system exists for portfolio management from a company perspective. Then, the system created through these programs and portfolios must be maintained while continuing to operate. Projects are managed by project managers, and program management is managed at the management level or executive level. The first component of the value delivery system is to create deliverables necessary to create performance. Most of the project team members are involved in developing project deliverables. To develop the system, service planners, UX/UI Roles such as planner, designer, publisher, developer, quality assurance (QA), and architect (AA, TA, DA, DBA, etc.) develop deliverables. Deliverables are products and services created through a project. Outcomes are the final results or outcomes of a project or process. Outcomes are the benefits that companies and organizations want to realize. Through benefits, value is created, meaning the importance or usefulness of something. Outcomes are the final results of a project or process. Outcomes are a larger concept than deliverables. In order to create the benefits that companies and organizations want to realize, work is done in a project to create outcomes. The expected effect is the preliminary step to creating value, meaning some importance or effectiveness. The project team must first create deliverables. First, it must create the products and services required by the contract. And second, what is to be obtained through the deliverables is the outcome. When outcomes are achieved through delivery, customers and stakeholders experience “value creation” as the desired effects and benefits are realized and various benefits are realized.[기대 효과 달성 순서]
The value delivery system is greatly affected by the internal and external environments of the project. The internal environment refers to the policies, procedures, and governance structures that companies and organizations must adhere to. These are the policies and procedures that must be adhered to within the company in order to carry out the project. The value delivery system is part of the internal environment of the organization, such as policies, procedures, methodologies, frameworks, and governance structures. The value delivery system can be affected by the external environment. The external environment includes factors such as the market, competitive environment, economic conditions, and legal restrictions or regulations. The internal environment exists within the external environment. First, when carrying out a project in accordance with the value delivery system, the internal environment of the company and organization must be considered and the work must be done in accordance with the value delivery system, and second, the project must be carried out in accordance with the external environment, market conditions, regulatory conditions, and economic conditions. The management presents a mid- to long-term strategy that the company must achieve. When presenting a mid- to long-term strategy that must be achieved over several years, a portfolio is formed. Smaller business units within the portfolio are composed of programs and projects. When composing programs and projects, the performance, benefits, and values that are to be obtained through individual projects are all considered. This can be a feasibility analysis related to the business plan. When making a business plan, a feasibility analysis is usually conducted together. An annual business plan is established based on a mid- to long-term strategy. As the project progresses, deliverables are created and the deliverables go through an operation process. During the operation process of providing service to customers, opinions from the field and customers are heard. When customer requirements change and trends change, appropriate updates and modifications are required. Information on the progress and performance of all projects should be collected at the portfolio level so that management can see all the performance. When managing a company portfolio, a dashboard is usually created that allows management to see the performance of all projects being promoted in the company at a glance. Management can monitor how each project is progressing through the dashboard at a glance.
2. Organizational Governance System
The governance system works with the value delivery system to support the desired workflow, manage issues, and support decision making. The governance system provides a framework that includes functions and processes that guide activities. The governance framework includes oversight, control, integration between components, and decision-making capabilities. The governance system provides an integrated structure for assessing changes, issues, and risks. In order to manage value-creating activities, projects, programs, and portfolios, which are the means of creating value, must be managed. In order to govern the value delivery system, projects, programs, and portfolios must be managed in an integrated manner. Examples of such activities include budgeting, development approval, project stage quality assurance processes, project change control, portfolio performance review council operations, and project risk management. Project governance is the basic structure, functions, and processes that guide project management activities to achieve the goals of the business and organization. It includes the authority to make decisions related to projects, such as change approval. Not all businesses and organizations have an effective governance framework. Project governance should be tailored and optimized to the culture of the enterprise, the type of project, and the organizational needs within the enterprise. Project governance can be aligned with program or organizational governance. In some organizations, a Project Management Office (PMO) supports programs and projects within a portfolio. It is important that the governance of lower-level activities be aligned with the governance of the higher-level activities. Project management activities should not conflict with program or portfolio management activities and policies. Governance activities can even include the authority to make important decisions.
3. Project-related functions
Projects are executed through functions such as people, groups, or roles. Project functions are a way of looking at the roles of people or members related to the project. The most important thing for a successful project is “cooperation.” The most important thing for the success of all projects is collaboration and coordination. There is a type of coordination that is appropriate for each situation. There is also a way to achieve effects through centralized coordination through a designated project manager. The first is the collaborative coordination method in the traditional waterfall method of projects, where the project manager centrally controls and coordinates. The second is a way to achieve effects through collaboration and coordination among self-organized and self-managing team members. This method is Agile methodAgile project teams are called “self-organizing teams.” Self-organizing teams work differently from waterfall-style projects. In an agile project, team members plan and control each other’s performance. Therefore, the role of an agile project manager is to coach, support, and mentor. Regardless of the coordination method, two things are necessary for the success of a project: first, leadership, and second, continuous participation of stakeholders.
[프로젝트의 성공 조건 2가지]1. Leadership 2. Continuous participation of stakeholders
Project-related functions are organized into eight categories.[프로젝트 관련 기능 8가지]
Provide Oversight and Coordination is the traditional role of the project manager when carrying out a project. The project manager leads the planning, monitoring, and control activities. Some organizations include evaluation and analysis activities for the project as pre-project activities. Before starting the project, a feasibility analysis is conducted. The feasibility analysis of the project is the activity of developing a business plan. The traditional role of the project manager is the role from the initiation of the project to the end. The activities of evaluating the feasibility of the project and developing the business plan are also considered as the role of the project manager. In addition, the activities and roles of supporting the project for the customer after the project is completed are also included in the role of the project manager. It can also include monitoring activities to improve the health and safety of the project team members and the work environment. In the case of coordination, there is a business analysis activity related to the goal idea. It is an activity to identify and define requirements and ensure that the requirements are reflected in the project. The project manager also supports the development of a business case. The business case is the development of a business plan. Since the project manager must develop and review the business plan, there are many discussions with management or business unit leaders. In order to carry out a project, you must also draft a contract with the vendor and sign the contract. In addition to the coordination role of the project manager, there is also a supervisory role. Before the end of the project, you must ensure that the benefits of the system product that was agreed to be built in the contract are realized. The follow-up review activity is an activity that evaluates the value achieved after the end of the project. Present Objectives and Feedback are actually presented by the customer and the end user. Here, the customer refers to the individual or group that requested the project or provided the project funding. And the end user refers to the individual or group that will directly use the project deliverables. It is important to have clear instructions from the customer and the end user regarding the project requirements and the performance or expectations to be achieved. It is important to identify the requirements and expectations of the customer and the end user at the beginning, and to receive continuous review and feedback on the created product after the system is built. When carrying out a project, you need clear instructions from the customer and the end user regarding the requirements, performance, and expectations, and you need to carry out the project by receiving them. It is important to receive regular or continuous reviews and feedback on the project progress results and product elements. In agile or hybrid projects, continuous feedback on product increments is especially important. In some projects, customer representatives or customers directly participate in the project. In Agile, there is a two-week cycle called an iteration cycle. In Agile, some functions are analyzed, designed, implemented, tested, and reviewed during the iteration cycle. In addition, another additional function is analyzed, designed, implemented, tested, and reviewed during the next iteration. In Agile projects, the added functions are reviewed and receive continuous feedback during the iteration period. Facilitation and Support are the roles of project managers in Agile projects. Facilitation and Support are the roles of Agile project managers rather than traditional waterfall project managers. Facilitation and Support are closely related to the functions of providing supervision and coordination depending on the characteristics of the project. The functions of providing supervision and coordination are the roles of traditional waterfall project managers, but facilitation and support are the roles of project managers in Agile projects. It promotes participation and collaboration of project team members and fosters a sense of shared responsibility for project results (cultivation). You will be responsible for reaching consensus, resolving conflicts, facilitating meetings and making decisions. You will also be responsible for removing obstacles that may hinder the success of the project. Agile project managers perform and support change management for stakeholders.[애자일 프로젝트의 PM 역할]
The facilitation and support functions may include providing feedback for the learning, adaptation, and improvement of the project team and individual team members. In Agile, there is no part that leads planning and control, because planning and control are done within the development team. Performing work and contributing insights are the roles of “team members.” They provide the knowledge, skills, and experience needed to create products and services and realize project outcomes. The way team members work is to gather in one place and place them in the same location (co-location). Depending on environmental influences, work may be performed in a virtual environment. Within an organization, cross-functional teams may be formed from various departments and performed. Cross-functional teams are distinguished from functional organizational methods. In the functional organizational method, if there are several departments, a specific department is in charge of the project, a project manager is selected from the department, and team members are selected. In this case, all personnel with all roles must be organized in one department. Therefore, the organization cannot be taken lightly. To solve these problems, we form a cross-functional team. A cross-functional team is a method of forming a project team by extracting personnel from each department rather than having one department take charge of everything when carrying out a project. A cross-functional team is a matrix organization structure. There are various advantages to forming a cross-functional team, but there are also disadvantages. The advantage is that there is no duplication of personnel. However, collaboration is poor, and there are strong interests and egoism between departments, so when providing personnel to a project, they do not provide competent personnel but provide available personnel. However, most companies carry out projects by forming a cross-functional team. Applying Expertise is providing expertise, advice, and support for a specific area of the project. SME (Subject Matter Expert) means a “subject matter expert” in a specific field, and there are situations where you need to get advice from an expert. SMEs are people who provide knowledge, advice, and support for a specific area of the project. SMEs provide advice and support to the project team. SMEs can be internal personnel of the company or organization or external personnel. Providing business direction and insight is the role of the PO (Product Owner) in an agile project. The product owner is a role on the business side. If there are users or business and a development team, the users and the development team can communicate directly, but the users or business do not know IT and technology, and the development team does not know business and work well. Therefore, when the users and the development team communicate with each other, the users make requests in terms of business and cannot explain from an IT perspective, and conversely, the development team does not know the business and can only talk from an IT perspective. Therefore, the product owner is the person who coordinates the requirements of various stakeholders and users and then delivers them to the development team. The product owner is the role of reviewing the final implementation to see if it has been implemented as desired by the users and business. The product owner is a service planner who plays a role in an agile team, and the product manager is the person who plays the role of a service planner in a waterfall-style project. The Product Owner is also called the Product Owner. The Product Owner role is sometimes called the Business Analyst (BA) or Business Relationship Management (BRM). People in charge of the Product Owner function provide and clarify the direction of the project or product performance. The Product Owner defines the development direction of the product by interacting with customers, stakeholders, and project managers. And prioritizes requirements and backlog items based on business value, dependencies, and risks. Here, the backlog is a document of requirements and work to be done in an agile project. The backlog is the same concept as the requirements definition document in the field. The Project Owner provides continuous feedback to the project manager and sets the direction of development. The goal of the business direction and insight-providing function is to maximize the value of the project deliverables. It is said that half of the success in an agile project lies in the Product Owner. The role of the product owner is that important in an agile project. In a waterfall-style project, progress is reviewed and feedback is provided at each designated checkpoint, a milestone, while in agile and hybrid methods, business direction and insights are provided at every iteration cycle, such as every two weeks. Provide Resources and Direction is the role of the project sponsor. The function of providing resources and direction is to promote the project and communicate the organization’s vision, goals, and expectations to the project team and stakeholders. It supports the decision-making of the project and securing resources and authority in the project. The sponsor acts as a communication role between senior management, such as the CEO, and the project team in the company. The sponsor plays a support role to resolve decisions and issues beyond the decision-making scope of the project team and project manager. Maintain Governance is the role of the Steering Committee. The Steering Committee approves and supports the project team and monitors progress to achieve the desired results. Maintain alignment between strategic and business objectives, which may change over the course of the project.
4. Project Environment
Projects exist and operate with internal and external environments that affect value delivery. The internal and external environments of a project have positive, neutral, or negative effects on plans and other project activities. In a project, uncertainty is assessed by analyzing the internal and external environments. The internal environment of a project is the internal environmental factors that affect the project. Internal factors of the organization can come from the organization itself, the portfolio, and the program. The organization’s policies, processes, practices, tools, and knowledge affect the project as internal environmental factors.[프로젝트 내부 환경]
The external environment is an external factor that can enhance, constrain, or have a neutral effect on the performance of a project.[프로젝트 외부 환경]
5. Product Considerations
The product life cycle refers to a series of stages for the evolution of a product from introduction, growth, maturity, and disposal. The product life cycle can be a project at any point in time to add product components, improve functions, etc. Product management includes project management. And large-scale development is sometimes managed as a program for one development. And multiple developments are sometimes managed as one program. Sometimes the entire product life cycle is managed as one program. Product-related considerations include customer focus, increasing software value, expanding platform business, stable team operation, securing incremental or regular budgets, and program management.