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

• Infrastructure: Any administrative, finance, management, planning, or legal operations needed to support primary activities
• Technology development: Any technological improvements made to existing machinery, hardware, or software in the name of supporting primary activities
• Human resource management: The process of hiring and managing workers
• Procurement: Purchases related to buying raw materials or any fixed assets (for example, vendor fees and selection)
  

see VCE model 

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

VCE Concepts & Mapping

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

Each organization ( or business ) has 1 or more roles in the community and has:

operates a business model

has business opportunities and threats

has business strategies

has business plans

has business operations

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

P - EAIRG - Project 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

O - EAIRG - Operations 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

It is an architected VCE focused on a sustainable VCE model with all stakeholder groups part of the solution

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

Conceptually this is similar to ReFi - Reimagining Finance as a combination of Defi, Classic Finance ( CeFi ) and Web3 adding some new models for VCE ( Value Chain Economies ) on DAN ( Digital Asset Networks ) and expanded trusts beyond just DLT and security.

Beyond the Finance / DLT world, similar work happens in other domains. MOBI is implementing ITN ( Integrated Trust Network ) building on some earlier standards work in MOBI ( Vehicle Identity, Connected Mobility Data Market etc ). Beyond technology, all solutions begin with standards, regulations, governance ( STEAR ), identity, credentials, consent management.

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

VCE expands over other DLT models:

• extends concepts of DAO ( Decentralized Autonomous Organizations )
• extends concepts of RLN ( Regulated Liability Network )

VCE solutions can operate on VSLN - Virtual Smart Ledger Networks

STS - Smart Trust Services: deliver trusted outcomes#,VSLN%20%2D%20Virtual%20Smart%20Ledger%20Networks,-VSLN%20concepts

Standard Interfaces for Service Implementations ( SI2 ) for each Service Layer

Services define standard interfaces for consumption by service clients

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

Given a business use case with

• 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,

the solution strategies define the requirements, opportunities and manage the challenges

A capability assessment includes:

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 assessment defines how the solution supports required features, capabilities

A solution assessment includes:

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

Use Value Streams, Strategies, & Capabilities

To create Solutions and realize Value by clients

Capability & Product Assessments help clients & providers: 

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

Value Chain engineering = sustainable solutions process

Use Value Streams, Strategies, & Capabilities

To create Solutions that can realize Value for clients

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

Financial market infrastructures (FMIs) play a critical role in the U.S. and global financial system. FMIs are multilateral systems among participating financial institutions, including the system operator, used for the purposes of clearing, settling, or recording payments, securities, derivatives, or other financial transactions. These systems include payment systems, securities settlement systems, central securities depositories, central counterparties, and trade repositories. Such FMIs often give rise to risks and interdependencies among financial institutions both within and across national borders, creating the potential for widespread financial disruptions if an FMI fails to perform as expected. Central banks, with their mandates for macro-economic stability, are particularly interested in the smooth functioning of these FMIs and their strong and robust oversight.

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

The Principles for financial market infrastructures are the international standards for financial market infrastructures, ie payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories. Issued by the CPMI and the International Organization of Securities Commissions (IOSCO), the PFMI are part of a set of 12 key standards that the international community considers essential to strengthening and preserving financial stability.

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

Key Features for the Open DAN - Open Digital Asset Network:

• 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?

Who finds the solutions and platform? How ? Why ?
Who uses the solutions and platform? How ? Why ?
Who owns the solutions and platform? How ? Why ?
Who controls the solutions and platform? How ? Why ?
Who governs the solutions and platform? How ? Why ?
Who operates the solutions and platform? How ? Why ?
Who manages the solutions and platform? How ? Why ?
Who pays the solutions and platform? How ? Why ?

For each of these questions and stakeholder groups, identify the VCRS
- Value, Cost, Risks and Success Keys - for that group and role in the solutions and the platform

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

utility ( u tokens ) for rewards and fees on the solutions and platform 

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?

the data model is derivative from the use cases, economic model and services

the trust model defines the trusts required for all features and capabilities in the system based on the parties roles

( 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

borrow from enterprise open source projects

buy if the product is priced reasonably for the value, it's based on open standards and can be isolated from the client services using wrappers or adapters to minimize future migration costs and risks

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

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 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:

Consortium Services 

Governance Services

Regulatory Services

Gateway Services

Protocol Services

Network Services and Connections

Micro Profile Services

Communication Services and Protocols

Container Services

Directory Services

Registry Services

Metadata Services

Master data Services

Data Services

Data Analytics Services

Identity Access Management Services

Discovery Services

Event Management Services

Workflow Orchestration Services

Asset Services

Token Services

Entity Services

Transaction Services with Signatures

Messaging Services

Smart Contract Services

Governance Services

Monitoring Services

Management Services

Proxy Services and Aliases

Documentation Services

Policy Management Services

ODP Technology Capabilities

RDD for use case requirements

CDD for object services capabilities

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

Design Factors for VCE to model

Members, Roles, Identity, Authorizations, Access

Domains

Use Cases

Objects

Process

Technologies

Services

Trusts

Decisions

Events

SDP Life Cycle

Circular process to manage a Community Solution Space

Operations Plans

Operations Metrics

Operations Results 

Opportunities for Improvements

Opportunity Value Assessments

Opportunity Designs

Opportunity Plans

Opportunity Investments

Opportunity Delivery

Solution Implementation

Solution Operation

Solution Support

Potential Challenges

Dependencies for virtual ODP and DLT solutions

For a given virtual environment:

virtual cloud operations management

global event management

global metadata management services

global remote process management ( via API, DLT, GRPC, P2P, Sockets etc )

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

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