Key Points

Modern Platform for VCE is:  

1. VCE - a flexible business architecture model to run Value Chain Economies as virtual communities
2. WEB9 = SSM, SGS, AI, SLT, STS, ODP
3. SSM = Smart Services Management
4. SGS = Smart Governance Services
5. AI = AI and Machine Learning services
6. SLT = Smart Ledger Technology replacing DLT, Blockchain
7. STS = Smart Trust Services covers more than security and privacy
8. SDM = Smart Data Mgt
9. SOM = Smart Object Mgt with information, behaviors, responsibilities
10. SEM = Smart Economic Mgt - metrics, tokens, custody, payments
11. ODP = Open Digital Platform
12. open-source based
13. multi network
14. multi cloud
15. multi layer
16. multi tier
17. async
18. event driven message workflows
19. software defined
20. dynamically configurable: resources, assets, workflows, solutions, services, scoped, logic, privacy, permissions, roles, parties, party types, meta models
21. supports ASCRUM capabilities
22. Modern Platform provides a virtual service platform to support many VSN - Value Services Networks
23. VSNs in turn support multiple VCE - Value Chain Economies with multiple stakeholder roles & VCP - Value Chain Providers
24. the ODP maps to cloud and other resources through virtual service layer using Kubernetes, Containers, VM services and other control solutions
25. ODP is dependent on the base environments it's landscape covers
26. ODP provides independence from any specific cloud or on-premise implementation
27. Lower level cloud environments are accessed via the secure virtual service layer adapters

References

Value Chain Concepts & Mapping

Zendesk on value chain

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s Blockchain Opportunity Assessment - BOA#BOA-KeyQuestionsforVCE%3AValueChainEconomies

VCC - Value-Chain Communities - a group of VCO ( Value-Chain Organizations )

VCCs define a logical VCE ( Value-Chain Economy ) 

The VCE has a sustained value focus on stakeholder capitalism for all parties in the VCE micro economy model

A Good example of a VCC partner is GAPP - Genuine Alaska Pollock Producers Association

While that group has formal membership for the commercial fishing companies, the association has a stakeholder view of the VCE that includes: 

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The American Fisheries Act was signed into law in October 1998. The purpose of the AFA was to tighten U.S. ownership standards that had been exploited under the Anti-reflagging Act, and to provide the Bering Sea and Aleutian Islands (BSAI) pollock fleet the opportunity to conduct their fishery in a more rational manner while protecting non-AFA participants in the other fisheries.

VCO - Value Chain Organization - a sustained value focus on stakeholder capitalism

A VCO is an organization with a sustained focus built on a "stakeholder" view for a value chain that includes customers, employees, partners, communiites, economies and the environment. Look at the VCE concepts and stakeholder value mapping to see how a VCO can successfully participate in and contribute to a VCE micro economy

VCO Examples include: 

GAPP - Genuine Alaska Pollock Producers Association

https://www.futurefoodcast.io/podcast/superior-quality-sustainability-and-traceability/

Youtube interview > Craig Morris, CEO of Genuine Alaska Pollock Producers

Paramount Software Solutions

Congratulations to the sustained focus the Paramount team has had over the years to build a VCO ( value chain organization ) with a "stakeholder" view that includes customers, employees, partners, communiites, economies and the environment.

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https://www.linkedin.com/posts/paramount-software-solutions_companiesthatcare-peoplemagazine-greatplacetowork-activity-7232012758479777792--TN9?utm_source=share&utm_medium=member_desktop

People article on VCOs 

VCO-2024-Peoples 100 Companies that Care in 2024.pdf  link

VCO-2024-Peoples 100 Companies that Care in 2024.pdf. file

VCE Concepts & Mapping

A VCE is a logical community of independent parties forming an economic model with goals, roles, relationships between the parties

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has business performance against goals

VSDP - Value-drive Solution Delivery Process

Key Concepts

VCE Foundations

BWI BEP - Business Excellence Process Management

BWI: Barry Wright BEP - Business Excellence Process

SDP >> Areas to Manage on SDP - Solution Delivery Process

B - EAIRG - Business Events, Activities, Investment, Returns, Governance

...

T - EAIRG - Technical Events, Activities, Investment, Returns, Governance

SOM >> Areas to Manage on SOM - Solution Operations Management

B - EAIRG - Business Events, Activities, Investment, Returns, Governance

...

T - EAIRG - Technical Events, Activities, Investment, Returns, Governance

Consensus VCRS = Value > Cost > Right > Support Keys

The #BWC version > Nat Caruso

• Values = what's the net value for all stakeholder groups for the solution scope?
• Costs = what are the actual, expected, intangible costs for all stakeholders for the scope?
• Right = What does it take to do this Right?  This is a lot larger challenge then simple risk management
• Support = What support do you need from me ( your manager ) to succeed? What are the success keys for the deliverables in scope?

GAPP - Genuine Alaska Pollock Producers - 

GAPP - Genuine Alaska Pollock Producers - food cast - Craig Morris 

Craig Morris leads the GAPP organization

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GAPP provides not only a context, goals but also clear metrics to support continuous improvement of the community and consumer value

Modern Solutions

• Use Modern Technologies
• are delivered by Modern Teams, Processes and Tools
• deployed by Modern Deployment
• to run on Modern Platforms 
• managed by Modern Operations

common access model for transactions

networks > topologies > protocols > directories > services > metadata > interfaces > profiles > routes > connections > authentication & authorizations > sessions > planes ( control, request, data ) > domains > governance > namespaces > requests > workflows > policies > trusts > data > decisions > events > transactions > object updates > formats > results > history
all requests are: async, batch processed

Value Streams and Value Stream Mapping

https://www.investopedia.com/terms/v/valuechain.asp

A company conducts a value chain analysis by evaluating the detailed procedures involved in each step of its business. The purpose of a value chain analysis is to increase production efficiency so that a company can deliver maximum value for the least possible cost.

#BVM - Business Value Model - reusable model that lowers time to market

a BVM COULD be derived from a VCE model

Infotech on a Business Value Model Process

VSDP-infotech-it_Map_Your_Business_Architecture_to_Define_Your_Strategy_Phases_1_3.pdf.  link

VSDP-infotech-it_Map_Your_Business_Architecture_to_Define_Your_Strategy_Phases_1_3.pdf file

Potential Value Opportunities

ReImagine Financial Services - Value Chain Economy running on a Open Digital Platform

A Value Chain Economy of organizations and stakeholders operating solutions that are:

1. Understood
2. Valuable
3. Distributed
4. Trusted
5. Governed
6. Efficient
7. Effective
8. Regulated
9. RAS - Reliable, Available, Serviceable

DeFi disrupted by ReFi ( Reimagine Finance ) with VCE, ODP, AI, SLT, STS

1. DeFi only fits a small part of the financial world ( P2P Bitcoin )
2. ReFi ( Re-imagine Finance ) fits over 90% of the financial world of tomorrow
3. Re-imagine DLT differently as a flexible proof system to build better trust for counter party networks ( not your father's Bitcoin blockchain )
4. ODP is an Open Digital Platform ( an FMI - Financial Market Infrastructure ) with modern services
5. AI and Machine Learning can improve decision making, optimization with faster learning for specific use cases
6. SLT - Smart Ledger Technology replaces DLT overcoming limitations on performance, scope, integration
7. STS - Smart Trust Services go beyond simple security, cryptography to embrace ALL opportunities to improve trust in a VCE for all stakeholders, use cases
8. Using DAN and a ReFi process new Value Chain Economies evolve from existing financial solutions that have comprehensive capabilities and better results

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It's time to rethink some core limiting assumptions built into DLT which is why RLN and my focus on SLT ( Smart Ledger Technology ) both open some new doors.

VCE - Value Chain Economies are Communities in both the Digital and Real Worlds

VCE solutions run on:

• Financial Solutions
• Financial Network Services
• Open Common Platform Services
• Virtual Cloud resource layer
• VSLN - Virtual Smart Ledger Networks

...

Services define adapters for custom service implementations

Value Chain Engineering Solution Process

STS - Smart Trust Services: deliver trusted outcomes#SmartTrustServices%3Adeliverbettertrustforbetteroutcomes-VCESolutionProcessforVSLN(VirtualSmartLedgerNet)

Value Chain Engineering is a sustainable governance model to deliver solutions aligned to Cutomer value

1. Customer-centric or Business-centric model to deliver solutions that align to customer and community value ( vs product oriented )
   
   
2. Align Client value to Business strategies & capabilities,  Align Business capabilities to IT strategies & capabilities
   
3. Continuous cycle of
   Clients using solutions  > assessing value > defining new opportunities, strategies, capabilities > map to solutions > delivering new solutions
   
   
4. VCE stakeholder metrics cover:  VCRS - Value, Costs, Risks, Success Keys planned & realized

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• A regulated community of stakeholders operating in various roles
• A permissioned business virtual smart ledger network with consumer and provider roles 
• Goals, scope, constraints, policies, governance, economics and regulations
• Events, processes, trusts, contracts, transactions, data, ledgers, services, decisions, ABC parts
  
  
• Clients 
• Set use cases, roles, outcomes, value streams, needs, requirements > search- find- use solutions
  
  
• Providers
• Use use cases, user value streams > solution strategies > capabilities > offer products & services
  

VCE continuous process

1. analyze & measure the client value streams
2. define solution strategies
3. enable solution capabilities that support the strategies
4. deliver solutions ( products & services ) that fulfill the capabilities required
5. so clients can use them to realize value

Assessments integrate Clients and Providers on Solution Engineering

CMP - Capability Maturity Program

Capability Assessments

Based on defined client user cases and related value chains and streams defined,

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a capability profile, supported use cases, enterprise features & NFRs, client feedback, implementing solutions

Solution Assessments

Based on defined client strategies and capabilities defined, 

...

a solution profile, supported use cases,  supported capabilities, enterprise features & NFRs, client feedback, client usage data, support experience

Use Assessments in Value Chain Engineering ( VCE )

Use Solutions >> Clients Realize Value

...

1. ID if capabilities, solutions are ready for client use cases
2. ID the best solution for a client use case & capability
3. ID where to invest in capabilities & solutions
4. Where solutions overlap for a capability
5. Where reuse opportunities exist for solutions and a capability
6. ID the maturity level of the capability and solutions
7. ID candidate remediations for capability, solution gaps

Define Assessments in Value Chain Engineering ( VCE ) 

Define Solutions = Continuous Process

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1. Assess current strategies, capabilities, solutions results
2. Assess value gaps for strategies, capabilities, solutions 
3. Automation adds usage, issues on assessments
4. Set new strategies, capabilities, solutions with target results
5. Clients test new capabilities, solutions
6. Clients give assessment feedback on capabilities, solutions
7. Providers update strategies, capabilities, solutions
8. Providers release new strategies, capabilities, solutions

Align Value Stream Maps to Customer Requirements

https://www.linkedin.com/advice/0/how-do-you-align-your-value-stream-map-customer-requirements

Map Requirements to IT Capabilties

Oversight of Financial Market Infrastructures by the Federal Reserve

https://www.federalreserve.gov/paymentsystems/over_about.htm

...

The Federal Reserve supervises and oversees certain FMIs under several authorities and in several contexts.

Principles for Financial Market Infrastructures (PFMI)

https://www.bis.org/cpmi/info_pfmi.htm

...

In addition to these standards, the CPMI and IOSCO have published a number of related documents and further guidance on how to implement the standards

VCE runs in the business layer as a Value Chain Economy, maps to the operations layer nodes

1. A Digital Asset Network based on DLT is managed by a Consortium organization providing governance, operations, compliance and economic value
2. the Network layer can be implemented as nodes ( physical or virtual ) for layers 1 & 2. 
3. Layer 3 can be implemented logically vs physical nodes if that implementation fits the use case better

DAN - Digital Asset Network is a conceptual Financial Market Infrastructure ( FMI )

The diagram below shows Business Digital Communities running on a conceptual Financial Services Network

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• Features are segregated into service layers:  
  • VCN - Virtual Cloud Network provides a common infrastructure interface instead of consuming directly from individual cloud platforms
  • ODS - Open Digital Services provides a suite of technical services consumable across the VCN layer many of which are Enterprise Open Source services
  • FSF - Financial Services Features are a common set of financial services that can be reused by multiple solutions or directly consumed by businesses
  • FAS - Financial Application Solutions can be consumed by businesses enrolled in a community
• The Capabilities listed are defined differently by layer
  • The economic incentives and costs to operate the ODP layer are different than the incentives and costs to operate the FAS layer for example
  • The regulations and governance that apply to the VCN layer are different than the regulations and governance for the FSF layer
• The simple Business Operations view for Bank A
  • The top section is a simple view of multiple business communities with a focus on the Payment community
  • From a client focus ( Bank A ) uses the FSN by joining the FSN, enrolling in the payment community and then sending payments locally or cross border

Key question for FSN - who finds, uses, owns, controls, governs, operates, manages, pays for EACH layer in the FSN?

Some Key Concepts on DAN

Key - Define the stakeholder groups, their roles and the VCRS model for each group in the target communities

q>> what is the value proposition for each group, role in the solutions and platform?

Key - Define the key solutions and related business use cases in scope for the platform solutions and services

model as BDD

create executable BDDs using Expando DSL, JEPL, Karate,

create generator for Plantuml DSL files to show diagrams automatically from code

Key - Define Each stakeholder group role for the solution and the platform capabilities

Key question for FSN - who finds, uses, owns, controls, governs, operates, manages, pays for EACH layer in the FSN?

...

Why are these solutions, this platform the best alternative for the stakeholder groups to use?

Key - Segregation of Services & Responsibilities into Layers to improve reuse, lower platform costs & risks and adapt to change

Key - Separation of Business Logic from Platform Service Software

look at business rule and policy engines that allow business users to own business logic ( see JEPL DSL concepts )

Key - Integrate all processes with Global Event Management Services - GEMS

GEMS - Global Event Management Services integrates the majority of capabilities in each layer

Think IBM I CPF9898 that is distributed across message queues on all platforms for all layers - WOW ! > dynamic global event driven behavior

Key - Define a valid economic model to operate each layer based on stakeholder roles, value, costs, risks, success keys ( VCRS )

Look at token types for:

payment ( p tokens ) and their mapping to supported crypto types

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assets ( a tokens ) digitized assets represented by fungible tokens ( CBDC or stablecoins ) and non-fungible tokens ( art work etc )

Key - Given the business use cases, economic model and services, define the data and trust models

for each use case, who are the counter parties?  what data do they share? how? what trusts are needed?

...

( is the asset a valid digital asset?  is the transaction approved by the correct party? etc )

Key - Define Services in each layer as metadata and access via component registries for easy composition, smart runtimes

Key - Common Standards to Operate Platform Services at each layer

Key - Rethink Key Performance Bottlenecks as concurrent asynchronous services to improve throughput and capacity at each layer

Key - Transparent Governance to govern each layer

Key - use 3 B sourcing model to provide capabilities - Borrow, Buy, Build

borrow from existing internal assets that can be reused or repurposed productively

...

build if the other options don't work

Consider EOS ( Enterprise Open-Source ) solutions first - lower cost, better portability

Some EOS alternatives to AWS to provide lower costs, better portability and parity across platforms

https://github.com/guenter/aws-oss-alternatives

Key - Use of Enterprise Open Source software where feasible

The dual license or an open source foundation license are preferable.

Enterprise Open Source solutions are often have a Community-Edition open-source version and license that provides almost all core features and capabilities. The corresponding Enterprise version builds on the Community edition and adds key usability features, more integrations and better commercial support to fit enterprises needed quality production service capabilities.

Key - Follow the Software Architecture Themes to improve quality, flexibility, value delivered with lower risk

see m Enterprise Architecture

m.Enterprise Architecture and Services

m Data Architecture

Other Platform Concepts

Modern Solutions

Use Modern Technologies

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all requests are:  async, batch processed

Value Chain Engineering Concepts for VSLN - Virtual Smart Ledger Networks

VCE Operations Models 

Models

1. Parties with Identities
2. Operations Roles
3. Economic model
4. Community Sustainable Engagement
5. Governance model
6. Regulatory model
7. Network Platform model
8. Standards 
9. Services models by layer:   application > financial > technical > network > security
10. Operations process model
11. Trusts model
12. Decisions model
13. Events model 
14. Technical Architecture
    
    

VCE Service Capabilities support Consortium Models

VCN Service Registry covers:

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Policy Management Services

ODP Technology Capabilities

RDD for use case requirements

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FDD for feature driven design to enhance object services to meet RDD

Design Factors for VCE to model

Members, Roles, Identity, Authorizations, Access

...

Services

Trusts

Decisions

Events

SDP Life Cycle

Circular process to manage a Community Solution Space

...

Solution Operation

Solution Support

Potential Challenges

Dependencies for virtual ODP and DLT solutions

For a given virtual environment:

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accepted standards for event management, DLT interoperability, RPM, cloud operations, regulations

Candidate Solutions

DLT use cases that can add value, not risk

DLT as an accurate data ledger ( provenance, proof historical data not changed )

DLT as an automated enforcement of contract terms between parties

DLT as a multi-party data validation system

DLT as a data distribution system

DLT as a Reference Architecture

inter-organization use cases

intra-organization use cases

generally less likely to add value where the organization is seen as a central. trusted source of truth

Step-by-step guide for Example

sample code block

Recommended Next Steps

Related articles

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